Rising Russian nationalism forces Putin to reassess financing for North Caucasus

North Caucasus Financing Takes Back Seat to Putin’s Political Agenda
Publication: Eurasia Daily Monitor Volume: 8 Issue: 202November 2, 2011 01:17 PM Age: 2 days
By: Valery Dzutsev

Vladimir Putin and Dagestani President Magomedsalam Magomedov meeting in Moscow, October 31 (Source: kremlin.ru)
On October 31, Russian Prime Minister Vladimir Putin met with the head of Dagestan, Magomedsalam Magomedov, in Moscow. Discussed in the meeting was the grand Russian program to spend nearly $200 billion to modernize the North Caucasus over the period 2012-2025. “If adopting the North Caucasian program is delayed until 2015, we would still like to ask you to have a special program for our republic to overhaul the social sphere,” Magomedov told Putin in the meeting, The Russian prime minister did not reassure the Dagestani leader (http://premier.gov.ru, October 31).

Gazeta.ru followed up on the news and discovered that the North Caucasus development program requires Moscow to spend $12 billion from 2012-2014, but the projected national budget under consideration in the Russian State Duma allocates less than $4 billion for the same period. A source in the administration of the Russian envoy to the North Caucasus, Aleksandr Khloponin, confirmed that the North Caucasus program would not be approved in 2011. The source claimed there were several problems with the program, including its financing. Currently, there are only two regions in the North Caucasus that receive extra funds from Moscow for developmental purposes – Chechnya and Ingushetia. The program for Chechnya, worth $4 billion, is coming to an end this year (www.gazeta.ru, October 31). The program for Ingushetia envisaged spending $500 million on the republic’s development in 2012-2014, but only $100 million is currently allocated in the projected Russian budget for this program (http://fcp.economy.gov.ru/uploaded/301/redaction_02Nov10_12-24-59).

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