The Annexation of Crimea: A Challenge for Russia to Balance the Books

The annexation of Crimea will require significant financial investment from Russia, which must implement changes in, for example, social security, education and health care systems on the peninsula. The expenditures will not be balanced by benefits such as savings connected with stationing the Black Sea Fleet (BSF) and navigation through the Strait of Kerch, or access to the Crimean marine shelf. Moreover, these costs will be a significant burden for the Russian budget during the coming economic crisis.