Moscow to spend $70-80 million more to cover Crimea’s budget deficit – deputy minister

YEREVAN, March 19. / ARKA /. Russia will invest $4-5 billion in the transport and resort infrastructure of Crimea, which joined Russia Tuesday following a referendum last Sunday, deputy economic development minister Alexei Likhachev said Wednesday, Prime reported.

President Vladimir Putin signed Crimea’s accession to Russia on Tuesday after the local authorities held a referendum on secession from Kiev.

Likhachyov said that Moscow will have to spend $70-80 million more to cover the Crimea’s budget deficit.

“As soon as Crimea acquires rights of Russia’s territory, it will be covered by Russian Federation’s obligations, primarily on budget deficit reduction. The ministry values it at $70-80 million so far. This is far from being a modest figure but it is justifiable until Crimea starts to earn money. I am more than sure that that in the mid-term prospective Crimea will be one of the Russian territories with a net income if there are infrastructural investments,” Likhachev said. -0-

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