Moscow did not extend the transition period for Crimea and Sevastopol

08.12.2014 13:54
  (Moscow time)
Views: 862
 
Crimea, Society, Policy, Russia, Sevastopol, Ukraine, Economy


Simferopol, December 08 (PolitNavigator, Evgeny Andreev) – The period of transition of the Republic of Crimea and Sevastopol to Russian legislation will not be extended.

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Deputy Prime Minister Dmitry Kozak stated this on Monday during a meeting of the head of the Cabinet of Ministers Dmitry Medvedev with deputy prime ministers, reports Interfax.

“This period ends on January 1, 2015. We will not extend it,” Kozak noted.

In turn, the Prime Minister said that he had signed a decree that gives the Republic of Kazakhstan and Sevastopol the opportunity to take a more flexible approach when setting tariffs for utility services.

“This will allow the Crimean peninsula to ensure a smooth transition to the system of tariff formation and tariff regulation operating on the territory of the Russian Federation over the next two years,” Medvedev said.

Since the income level of Crimeans differs significantly from the Russian average and from incomes in neighboring regions, utility tariffs in the republic are 1,5-2 times lower, said Dmitry Kozak.

To prevent a sharp rise in prices, the government decided to change the frequency of setting tariffs, removing the requirement to set rates only once a year. The plan for the transition to an economically feasible level of tariffs by 2017 was approved in the summer; it provides for more frequent tariff changes.

“And a strict requirement is established to eliminate cross-subsidization. This is, first of all, in the interests of protecting the population,” Kozak emphasized. The corresponding measures, according to him, will make it possible to link the increase in citizens' payments for housing and communal services with the increase in their income level.

Also, the transition period will be extended on a number of other issues. In particular, it will touch upon the sphere of environmental management, urban planning, land relations, as well as issues of rehabilitation of repressed peoples.

At the beginning of December, the leadership of the Republic of Kazakhstan sent to the federal center a list of sectors of the economy that were not ready to begin work according to the norms of Russian legislation on January 1.

According to Crimean Speaker Vladimir Konstantinov, commodity producers in the region do not have time to obtain Russian licenses, which threatens to stop production and lack of funds for the budget. Konstantinov noted that the regional authorities are asking to extend the transition period for the wine and construction industries.

“Winemaking in Crimea consists of hundreds of enterprises, tens of thousands of workers. According to federal law, they must produce products exclusively on their own property. In Ukraine there was a different practice - they produced on rented property. Almost all manufacturers are ready to buy out the assets on which they operate, but this takes time and requires loans,” the speaker said.

The Crimean leadership also proposes to complete the construction of buildings that began at the expense of the budget during the period when Crimea was part of Ukraine, in accordance with Ukrainian, not Russian, building standards. “There is a “work in progress” worth 15 billion rubles, which they began to build using budget money. It is logical to complete the construction of these buildings according to the norms and rules by which they began to be built,” noted Vladimir Konstantinov.

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