North Caucasus in 2012: Results and Risks

Russian Economy in 2012. Trends and Outlooks. Issue 34. Moscow 2013

20 Pages Posted: 30 Aug 2013

Date Written: August 30, 2013

Abstract

In December 2012, the Russian government adopted the "Programme for the Development of the North Caucasus Federal District (NCFD) up to 2025" (hereinafter referred to as the Programme). The total funding up to 2020 was approved at a level of 2.55 trillion RUR, and it was determined that the state budget would provide 10% of the funds, while 90% should be made up from investor funds. Note that this proportion is roughly consistent with the principle of distribution of budgetary and non-budgetary finance adopted earlier for some of the projects implemented under the Programme. Thus, of the total costs of holiday resort construction projects in the North Caucasus, 60 billion rubles out of 510 billion rubles will be financed from the budget (through the project operator: Resorts of the North Caucasus JSC (with a 98% stake owned by the Government of the Russian Federation). The State has systematically demonstrated its goal to ensure the economic development of the North Caucasus mostly through investors. They are granted tax benefits, if they register in the new special economic zones (SEZ) created in the North Caucasus, as well as government guarantees on loans grant-ed on an individual competitive basis.

Keywords: North Caucasus, investment, local communities, Dagestan Republic

JEL Classification: R10, R11, R12, R13, R14

Suggested Citation

Starodubrovskaya, Irina, North Caucasus in 2012: Results and Risks (August 30, 2013). Russian Economy in 2012. Trends and Outlooks. Issue 34. Moscow 2013, Available at SSRN: https://ssrn.com/abstract=2318360 or http://dx.doi.org/10.2139/ssrn.2318360

Irina Starodubrovskaya (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

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