Recently released data of the Crimean Committee of Statistics about socio-economic situation in January-September 2024 demonstrated a number of serious problems in Crimea: the fall of construction, industrial and agricultural production and worsening social situation. Data about various branches of economy has been closed.
Russian authorities made secret data about extraction of oil and gas. It is not surprising. This data would demonstrate how Russia violated international law in occupied Ukraine. Hague arbitrage tribunal has already obliged the Russian Federation to pay 5 billion USD to National Joint Stock Company «Naftogas Ukrainy».
«Crimean Committee of Statistics» closed an access to the data on production of special clothing as it exposed, first of all, manufacturing of uniform for Russian killers.
However, the Committee also did not disclose data about production of beef meat, fish, poultry, cheese, flour, juices as well as cement, limestone, metal oxides, brome and even beauty products.
Russian official statistics demonstrate that occupied Crimea is very important as transportation hub. Transportation of cargo \ cargo turnover grew by one and a half time. It is the highest statistical indicator.
At the same time manufacturing fell down on the Crimean peninsula. In September 2024, Crimean index of industrial production decreased by over 11%. Production of pork, sausages, butter, bed linen and shoes fell down.
Crimean construction industry has been very profitable economic sector. However, it shortened by 15% per year. In September 2024, its volume reached only 68.6% of last year indicators. Meanwhile, Russian occupation authorities de facto lifted almost all restrictions on construction and low quality residential complexes have been built on any free land plots.
Crisis in construction industry
Crimean real estate market also fell down. There are various factors behind its stagnation. There is too much supply whereas the demand decreased (prices are too high and Russian authorities cancelled beneficial mortgage rates). People are afraid of the ongoing war. Many potential buyers are scared that Crimean peninsula will suddenly turn into Crimean Island.
«The best decision today is to stay away from Crimea if you are able to work remotely. The supply of everything to peninsula depends upon one bridge and land corridor. Moreover, men can be mobilized to the army. I imagined calm life differently», as wrote Nikolai from Moscow on Russian web platform «Dzen» about prospects of moving to Crimea.
Construction on Southern Sea Shore of Crimea. Photo: stroy-krim.org
Crimean real estate market ran into troubles long time ago. But as an outcome of Russian «special military operation», its sales fell down by two times. Then, it grew a little bit after introduction of so-called «Kherson certificates». Russian authorities issued these beneficial mortgage credits to inhabitants of Kherson region who escaped to occupied territories after liberation of Kherson by the Ukrainian Armed Forces. Crimean sellers increased their prices for recipients of «Kherson certificates». Since then, Crimean market has gone through several ups and downs.
Prospects of destruction of the Kerch Bridge and continuous attacks of Ukrainian rockets and drones on Crimean peninsula have significantly influenced the demand for housing, prices and construction scale. The falling demand, unwillingness of potential buyers to invest into risky construction projects, complicated logistics and price hike on construction materials force developers to stop construction. There are now 1 466 objects of unfinished construction in Crimea. 398 objects are located in Yalta. In order to force developers to complete their projects, Russian occupation authorities are going to increase taxes and lease rates on land plots under unfinished construction in 2025.
Cattle is slaughtered and wheat does not grow
The livestock has significantly fallen down. Number of pigs, cows, sheep and goats has decreased by 7.7%. The slaughter of livestock and chicken has increased by over 16%. It became too expensive to raise cattle as the harvest of forage crops has been very low whereas prices on mixed fodder skyrocketed.
In accordance with the Crimean Committee of Statistics, grain harvest has been by 13% less in January-September 2024, than in the same period of 2023. The cultivated area has fallen down by 9% whereas harvest per hectare – by 14%. This crisis embraced occupied Southern Ukraine. There are no enough water resources to cultivate crops. Before the Russian occupation, the North Crimean Canal supplied water to the Crimean agriculture. Russian occupants destroyed the dam of Kakhovka Hydro Power Station, and the Canal lost its vital role. There were almost no rains on the Crimean peninsula this year.
Poor harvest in Crimea, 2024. Photo: Vitalii Khalevin /ForPost
The fuel became expensive in Crimea as it has been mostly spent for the Russian war against Ukraine. Grain reserves in Crimea significantly decreased: there is less wheat in Crimean storages by 44% and seeds – by 60% than last year.
People and enterprises are dying
Demographic situation has worsened in Crimea. Almost twice as many people die in Crimea as are born. Funeral business has flourished.
Number of organizations has fallen down. Over 1400 legal entities were registered and the same number was liquidated in January-September 2024 in Crimea. Number of liquidated organizations was three times higher in September 2024 than in September last year.
Construction, trade, agricultural and realty enterprises, hotels and restaurants are leaders of liquidation. Restaurant business has fallen into deep crisis. Pies and pizza are the most demanded food. Turnover of HORECA has fallen down by 12% in Crimea.
Drugstore in Crimea. Photo: press service of «the Ministry of Health Care of the Republic of Crimea»
Indicators released by the official Crimean statistics can be easily doubled. For example, Crimean statisticians persuade that price hiking is not significant. The largest price increase is about eggs (by over 30%). But practice proves the opposite. Simple drugs to treat respiratory infections cost 3 thousand Rubles. It is almost one tenth of the average salary of Crimean inhabitant. However, Crimean Committee of Statistics says that prices on drugs have increased only by 9% in Crimea. It should be added that even Moscow residents are surprised by high prices in Crimea.
No unemployment. No work force
Crimean Committee of Statistics persuades that living standards of Crimean inhabitants quickly increase. They have more money! In accordance with the Committee, income of Crimean inhabitants grew by 7% in the second quarter of 2024, in comparison with the same period last year. In August 2024, average salary reached over 52 thousand Rubles or 500 USD in Crimea.
These figures are misleading. In order to get such a salary, school teacher would have to take double work load, mentorship over two classes and several extra curriculum lessons. The salary of Crimean school teacher is a little bit over 16 thousand Rubles…
Job fair in Crimea, 2024. Photo: «Ministry of Information Policy of the Republic of Crimea»
In accordance with BDEX data, average salary in «the Republic of Crimea» reached 41 990 Rubles (or around 404 USD) as of November 1, 2024. Higher figures of the Crimean Committee of Statistics can be easily explained. Occupation statisticians calculated arithmetic average, including salaries of the Russian military and public officials, exceeding hundred thousand Rubles per month.
There is good news from Crimean statisticians – there is almost no unemployment in Crimea! If it is true, what is the cause of the shortage of work force in Crimea? 75% of Crimean teachers have to take double work load as there are not enough teachers. It is an outcome of the Russian aggression against Ukraine. Attracted by high salaries, some unemployed men concluded military contracts with the Russian Armed Forces. Many professionals escaped abroad.
Now let us look at Crimean budget. It demonstrates profit of 112 million Rubles. The life became joyful, as once said comrade Stalin. If you do not trust it, just close your eyes.
