Russia Takes Crimea’s Pension Tab... and a Bridge?

Your next video will start in

Recommended Videos

  • Info

  • Comments


March 21 (Bloomberg) -- Scarlet Fu reports on the possible cost to Russia of Crimea’s annexation. She speaks on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

It will be a big one.

The annexation is official, and the bill is building up.

There is one russian newspaper that puts the bill at almost what he billion dollars over three years.

In terms of the big-ticket items, basic infrastructure.

Russia and crimea are not connected by land, so you need to build a bridge.

One bridge will cost an estimated $1.4 billion and take several years.

Also, utilities.

Crimea relies on ukraine for gas, water, electricity, so the alternative is to build a plant that could cost $1.7 billion.

Let's not forget pensions.

Russia has to adopt them into its system.

The russian pension is double the amount of crimea's pensions, so the cost there is $1.9 billion per year.

Crimea also receives subsidies.

40% of the ukraine budget is subsidies.

Russia has to match that amount.

Russia's gdp per capita is about 14,000. crimea, 5000. pretty big.

There are also logistical issues . it could be as easy as people being able to travel and move around.

Russian passports are being given to crimea's residents.

The russian ruble will also become legal tender in crimea.

The cost of integrating the

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change