Can Russia Afford the Cost of Annexing Crimea?

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May 28 (Bloomberg) -- In today’s “Global Outlook,” Bloomberg’s Ryan Chilcote breaks down the potential cost for Russia to annex Crimea and Vladimir Putin’s economic plans for the region. He speaks on Bloomberg Television’s “In The Loop.”

Price worth paying.

Ryan joins us from kiev.

How much is the annexation going to cost russia?

They expect to spend $48 billion.

That is the same amount the russians spent on sochi.

It is a region of about 2 million people.

Come july 1, they will be getting at least double, and in some cases triple.

You have state workers and their salaries will be raised to the same level that people doing the same kind of work elsewhere in russia get great teachers, doctors, they will get saint -- paid the same in crimea as they are paid in the far east of russia.

Then, you have the banks.

One bank, when they pulled out, they to be deposited or's money with them.

The russian government is reimbursing those people through its deposit insurance scheme to the tune of up to $20,000 per depositor.

You have all of the infrastructure, the bridge that i mention, it will cost billions.

You have the economic cost of the isolation of russia.

Then, you have the threat of more sanctions with russia itself.

Annexation is not going to come cheap.

Water the plants that russia has to make crimea and economically viable place.

They're trying to make it a las vegas.

A place him like what rush is.

Is going to put the money into it.

I have some sad news to share.

My angelou has died.

She was 86. her longtime agent confirmed that she died in her home.

No immediate cause has been

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


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