Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

State Looks to Triple Caucasus Spending

The federal government intends to triple funding for a North Caucasus economic development plan to 3.9 trillion rubles ($141.2 billion) as it fights separatist violence.

The new figure was included in a draft of a decree published Monday by the Regional Development Ministry. The draft calls for developing the economic, investment and tourism potential of the North Caucasus to create jobs and housing.

The plan "must become the most important instrument for solving the socio-economic problems" and "supporting business" in the North Caucasus, Prime Minister Vladimir Putin said May 4 at a meeting in the region. At the time, Regional Development Minister Viktor Basargin said the government sought 1.3 trillion rubles for the project through 2025.

The Economic Development Ministry is pessimistic about the development plan because funding is "impossible," Kommersant reported Tuesday, citing an unidentified government official.

The federal government will allocate 2.6 trillion rubles to the project, while 1.1 trillion rubles will come from extra-budgetary funds, and the regional governments of the North Caucasus will contribute 195.2 billion rubles, according to the draft decree published Monday on the Regional Development Ministry's web site.

Dagestan will receive the largest allocation at 1.2 trillion rubles, followed by Kabardino-Balkaria's 711.4 billion rubles and Chechnya's 449 billion rubles.

Federal forces have fought two wars against rebels in Chechnya since the Soviet collapse 20 years ago, and Dagestan suffered 112 bombings last year, more than any other Russian region, followed by 41 in Kabardino-Balkaria, according to the nongovernmental research group Caucasian Knot.

Ultranationalists have protested federal government spending under the slogan "Stop feeding the Caucasus," and Vladimir Zhirinovsky, leader of the Liberal Democratic Party, has said the funds are wasted on the region.

The Kremlin's envoy to the North Caucasus Federal District, Alexander Khloponin, said last month that it was a mistake to say Russia was trying to pay off the Caucasus.

(Bloomberg, Reuters)

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more