Sunday, July 11, 2010

Crimea ready for Russian investment

Tomorrow, the mayor of Moscow Yuri Luzhkov will arrive with a two-day visit to Sevastopol. Expected to have two cities on Thursday officially be proclaimed sister, and representatives of municipalities will sign a long-term program of cooperation. By the end of the year in Moscow, scheduled to open House of Sevastopol. In Crimea, hoping that the new format of relations would revive the economy of the entire peninsula. However, much as before, depends on the official Kiev.

As Nezavisimaya Gazeta last week Sevastopol delegation visited Moscow City Hall. Taking guests, Luzhkov said of future plans: "We have today agreed to help Sevastopol in solving social problems. Will be prepared for a great program for our cooperation in the following years."

He did not disclose details, but officials explained Sebastopol edition, we are talking about large-scale project, which includes both business interaction and cooperation in the social sphere. "The entire urban infrastructure of Sevastopol, including sewers and water mains, in a dreadful state. Kiev, these issues are not funded. If the money will provide Moscow, it will not only political dividends, but also economic benefits: we are ready to offer the Russian side a number of extremely attractive business projects" , - said one official.

Among such projects, which may be approved before the end of this week, experts called the construction of a bridge across the Kerch Strait, which would in 2014 create a new transport corridor "Kerch - Caucasus." Now the issue is managed at the state leadership of Ukraine and Russia, however, the Sebastopol officials believe that Moscow could provide invaluable assistance in the preparation of a feasibility study on the project and in attracting investments. After Luzhkov in 1998 initiated the creation of the Foundation "Moscow - Crimea, which has now accumulated a vast experience of cooperation in trade, economic, scientific-technical and investment spheres.

The second point of preparing agreements may relate to a joint venture between the shipbuilders Ukraine and Russia. This issue is also discussed at the presidential level. According to the Russian side, they talked about the fact that Ukraine could make a joint venture interest in the Crimean shipyards, and Russia - the money needed to revive production. The pilot project of unification, according to the Crimean experts say could be the integration of Feodosia shipbuilding company "Sea" and the company of Nicholas Zarya-Mashproekt in the United Shipbuilding Corporation RF. "Ukrainian shipbuilding enterprises from the Soviet Union are closely linked with Russia:" The Sea "is still receiving parts from St. Petersburg, without the cooperation can not perform any significant contract," - said the publication of the Crimean political analyst Vladimir Harabuga. However, officials and experts in Kiev believe that the Ukrainian government sanction such a union only if Russia guarantees the boot factory orders. Perhaps this issue will be discussed tomorrow, too, the Russian delegation, for its membership included leadership of the Defense Ministry.

Defense Minister Anatoly Serdyukov will hold further talks with the Sevastopol authorities. In preparation for this meeting, the chairman of the Sevastopol City State Administration Valeriy Saratov said that in addition to the approved program will discuss the issue of land released in the course of optimization-based Black Sea Fleet. The official explained that these areas need neither Russian nor Ukrainian military, but to change their designated purpose is impossible without the good will of Moscow. "Russia, extending the agreement with Ukraine's Black Sea Fleet to stay in 2042, almost paid for the land, reducing the price of gas. Here we must find an algorithm that takes into account the interests and the military, and the City" - he said. Harabuga analyst believes that the best solution would be to develop tourism infrastructure in the liberated territories: "Russian investors do not even have to invite - they are ready to invest in the construction of modern hotels and facilities maintenance." On the Russian side an additional incentive should be The announced Luzhkov infrastructure - schools, kindergartens, roads.

Crimean government, for its part, is ready to create for investors the most favorable conditions. The Council of Ministers of autonomy developed and submitted for adoption by the Verkhovna Rada a bill on special order of investment activity in the Crimea. It is about a five-year tax holiday and the abolition of bureaucratic procedures for businesses, invest in the development of the peninsula. The new Crimean Prime Minister Vasily Dzharty clarified that a State may establish a bar for the minimum amount of investment, which take effect tax incentives. But while Kiev should give investors assurance investdeyatelnosti stability, protection of its economic and moral rights, provide compensation for costs and losses on the project in case of change of legislation. "This is a necessary set of conditions to ensure that the Crimea came systemic strategic investor", - considers the Crimean prime minister.

Dzharty noted that if the Ukrainian Parliament will support the bill, the new rules come into force from January 2011. Around that time, is expected to be finalized and approved all the projects of cooperation between Moscow and Sevastopol. "This will be a powerful impetus to the development of not just one city, but all over the Crimea as a whole", - said political analyst Harabuga. He noted that Mr. Luzhkov maintained contact with the Crimea, even in the most unfavorable periods of interstate relations. Luzhkov himself on the eve of his visit to the Crimea, said: "Everything that makes Moscow in support of the Black Sea Fleet and Sevastopol, was historically justified". He explained that this allows you to maintain a balance of forces and ensure stability in the region. In this context, symbolic looks current joint celebration of the Day Fleet of the Russian Black Sea Fleet and Naval Forces of  Ukraine.

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