By Sergey Mikheyev, deputy head of the Editorial Council of Vestnik Kavkaza, the director of the Caspian Cooperation Institute
Crimea thinks it had passed the transition period of integration into Russia with dignity. The financial, tax and budget systems had started functioning in the Russian legal field by January 1, 1915. Hundreds of thousands of people have acquired new passports, medical insurance, pension documents.
A separate package of Western sanctions was imposed on Crimea. Western sanctions in general were initiated to convince Russia to return Crimea. The goal has not been achieved and it seems it never will be. Even harsher economic sanctions would not make Russia give Crimea back. The pressure had a consolidating effect on the Russian society and ruling class. Even a shift of power would not return Crimea to Ukraine.
The goal of Western sanctions was to choke Crimea, choke the development of the region economically, prevent its development. Ukraine became the main instrument for the realization of such an approach. Ukraine’s blockade is failing. Yes, Ukraine creates problems for Crimea, but crushing the economy of Crimea, choking the region, has not been a success. The two main goals the sanctions regime set have not been achieved. Western and Ukrainian mass media often used to talk that mergence with Russia would be a catastrophe for Crimea, that Russia did not need Crimea, it would not develop it. The federal purpose program for development of Crimea was launched and it clearly shows the long-term interest of Russia in Crimea. It is not an instant bargaining chip in some political game, and the federal purpose program will develop Crimea seriously and systematically, give the Crimean economy a real chance for a qualitative leap in production. What does it consist of? The Crimean economy was in a fading model during the
Ukrainian period. In general, the Ukrainian authorities were squeezing everything they could out of Crimea, not investing a penny into it, exploiting Soviet infrastructure to the maximum. Even though it was developing in the chaotic way of a wild market.
Crimea and Crimeans were obviously mistreated for political reasons: Kiev has always suspected Crimea of disloyalty, always accusing Crimea and its elite of pro-Russian alignment, justifying the economic breakdown of Crimea. Crimea was offered a deadlock development model, where industry was fading, agriculture was fading and even the tourism business was developing absolutely unsystematically. Everyone who has visited Crimea has seen the remains of incomplete Soviet sanatoriums and hotels no one wanted to invest in, although it was a direct opportunity to gain income. Instead, everything still running was purchased and exploited. Such a model of the Crimean economy was taking the peninsula to a dead end, to total degradation. The roads, unreconstructed since the 1970s, were abandoned, industrial enterprises were gradually turning into piles of rusty scrap metal, and so on.
What the Russian authorities are doing in Crimea is showing a radically different approach to the problem. Russia, despite the expenses and no expectations of immediate profit, is ready to invest in the systemic modernization of the Crimean economy.
