Impacts Of The Entry Of Crimea Into The Russian Federation On The Russian Economy

March 16 th,2014 is the day when Crimea and Sevastopol held the referendum,and it will always have an epoch-making significance in the history.The referendum is over,there are nearly more than 97% of the electorate voted in favor of reunification with Russia.From the Russian historical point of view,Crimea has belonged to the Russian territory since the beginning of 18 th century,more than a half of the local population is the Russian,the mother tongue is Russian,so Crimea annexation gained support and widespread approval of the Russian,and even raised and built upon the country's national spirit.Currently,the important question is what influence the Crimea annexation will produce on the Russian national economy,so the thesis studies this issue.On the one hand,Crimea annexation will have the positive impact on the Russian economic development,the Crimean geographical position is exceptionally favourable,the infrastructure is developed;defense industry,tourism and agriculture,as the Crimean main economic sectors,will have the great benefits for the Russian economy.On the other hand,Crimea annexation will inevitably have the negative impact on the Russian economic development,due to the fact that Crimea is out of Ukraine and into Russia,the USA and European countries did not acknowledge its legitimacy,therefore the USA,European and other countries implemented the exceptionally severe economic sanctions against Russia,which led to the deterioration of the Russian economic situation,including the sharp devaluation of the ruble,high level of inflation and a huge loss of foreign investment funds.In addition,Crimea annexation forced Russia to invest a huge amount of money of the State budget into the Crimean development,the RussianGovernment requires to revise the state budget and reduce investments into other social programs.Based on the results of the analysis of the overall impact of the Crimea annexation on the Russian economy,the thesis originally puts forward the countermeasures: economic structure diversification,development of the investment potential and development of China-Russia comprehensive strategic cooperation,and proposes practically significant and effectual methods to promote the Russian economic development.