Crimea as consolation prize: Russia faces some big costs over Ukrainian region

[Turbineguy]

http://www.washingtonpost.com/world/europe/crimea-as-consolation-prize-russia-faces-some-big-costs-over-ukrainian-region/2014/03/15/a807ea20-230e-4f08-8d39-a8f090eb3fba_story.html

This bit caught my eye:

"Ever since Ukraine became a sovereign nation in 1991, Crimea has received more subsidies from the central government than it pays in taxes, and that would likely continue on Moscow’s tab. Russian levels of social spending are higher than Ukraine’s, and economists predict that Moscow may have to pay about $3 billion a year to support the region. On Friday, Russia committed to at least $1 billion for the upcoming year, even without annexation."

It occurs to me that perhaps the red states over here would like to go with Putin!

[dipsydoodle]

1. I've read elsewhere

that Russia would pick up the tab on pensions. That may refer to a figure less than they currently get from Kiev but may also be more than what Kiev pensions reduce to in order to meet IMF requirements - believed to be a c. 50% reduction. Only time will tell if in fact applicable.

I'm not sure why Crimea received more subsidies from the central government than it pays in taxes given that Crimea is one of Ukraine's richest regions.........unless they've got a huge black economy.

The £1 billion a year referred to is easy to understand and doesn't increase Russian expenditure.

Be interesting to see the result of the referendum on Monday.