The Ministry of Economy assessed the economic potential of the annexed territories

According to Sergey Nazarov, Deputy Head of the Ministry of Economy of Russia, the economic potential of the territories annexed to Russia will require significant investments. According to him, Russia will preserve and increase the huge opportunities available to new subjects.

Sergey Nazarov noted the high degree of diversification of the economies of the annexed territories, including in the field of heavy industry, high-tech agriculture, transport infrastructure and energy. According to him, the railway network of these territories is one of the densest in the post-Soviet space.

“This potential was seriously underfunded by the Ukrainian authorities and requires significant investment,” he said, his words are quoted in press release on the website of the department.

At the same time, the deputy minister claims that the economy of the annexed territories will ensure the growth of economic indicators at the state level. In particular, in the sector of metallurgy (20%), the coal industry (6%), in the production of grain (10%) and sunflower (20%).

He also said that the Donetsk and Lugansk people’s republics, as well as the Kherson and Zaporozhye regions unite into a single free economic zone. As part of the creation of a free economic zone, all four regions can be exempt from paying income tax to the federal budget for ten years.

According to State Statistics Service of Ukraine, in 2012, the Donetsk region ranked fourth in terms of gross regional product per capita (after the city of Kyiv, Dnepropetrovsk and Kyiv regions). In sixth place, after Poltava, was the Zaporozhye region. Luhansk was in ninth place after Kharkov and Odessa regions.

Anastasia Larina