Russia and the North: who is feeding whom?

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Россия и Север: кто кого кормит?

Posted on the website of the state Assembly of Yakutia the material in which it was claimed that Russia lives at the expense of the North, became the reason for heated discussions not only in the Republic but also abroad. The text with the controversial statement from the website of the regional Parliament quickly removed, but some media have managed to rewrite it and give occasion for reflection.

“North brings to the Federal budget, 1.7 times more money than it receives from it in the form of grants. Russia lives at the expense of the North, although many do not realize it. North Russia has not only economic, but also geopolitical, military and strategic importance. Explored here field focus 1/3 of the world’s Nickel reserves, 1/10 of copper, 15% cobalt and 30% of PGE. In addition, the North concentrated 100% of Russian diamonds, 80% of oil and gas, 90% tin, etc. In the North produces 50% of commercial timber, the bulk of furs, river and sea fish. North gives 3/5 of all foreign exchange earnings of the country”, — stated in the material that gave rise to active discussion.

With the statement that the North feeds Russia, candidate of economic Sciences, Director of information and “Expert” North-Eastern Federal University (NEFU) Yuri Danilov does not agree.

“To say that Russia lives at the expense of the North, is not quite correct, — the expert believes. — The role of Northern regions in Russia’s economy cannot be overestimated, therefore the development strategy of the country’s socio-economic development is given priority. However, the tax system is designed so that the Northern regions, including Yakutia, are subsidized. However, you should take into account that the Russian Federation consists of 89 subjects, of which a number of regions due to objective reasons do not can do without redistribution of tax resources from the Federal budget. In addition, the Federal center has been investing heavily in the defense of the entire country, including the North and the Arctic”.

However, Yuri Danilov was of the opinion that the amount of subsidies for Northern regions ought to extend, within reasonable limits.

“The Federal law “On the Arctic zone of the Russian Federation” must be taken in the near future, and to revise the law “On subsoil” in the direction of increasing royalties from mining regions, where mining. Then, on the contrary, grant allocations to regions can be reduced,” the expert said.

Interestingly, the residents of Yakutia fully shared the allegations contained in the article on the website Gossobranija Republic. “Painful for the impoverished Republic with a population of barely surviving… and that’s when we feed the whole of Russia…”, — commented the news of the closure of the school in the village Swati due to lack of coal.

As previously reported, the residents of Sakhalin in 2017 was desperately fighting to oil and gas revenues in the region were distributed in his favor in the ratio 75% to 25%, as it was before. However, the decision of the state Duma of the Russian Federation, this ratio was changed in favor of the Federal budget starting in 2018.

Felt changes and Yakutia.

“We are concerned about the increase in the Federal share of taxes paid due to the costs of the enterprises. As a result, today we feel the reduction in income tax, which accounts for the constituent entities of the Russian Federation”, — said the head of the Republic Egor Borisov.

 

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