A mosque in Grozny. Photo by Magomed Magomedov for the "Caucasian Knot"

06 November 2016, 14:40

Kadyrov wants to break agreement with MoF that he is unable to perform

Ramzan Kadyrov's intention to suspend the agreement signed with the Russian Ministry of Finance (MoF), reducing subsidies to Chechnya is explained by the fact that he cannot enforce it. This is the conclusion of the experts interviewed by the "Caucasian Knot".

The transfer the republic of 100% of the stock of the "Chechenneftekhimprom" will not solve the problem of the deficit of the Chechnya's, said the economist Natalia Zubarevich and the journalist Nikolai Protsenko.

The "Caucasian Knot" has reported that on October 31, Kadyrov stated that Chechnya is not happy with the MoF's plans to reduce the republic's budget. Kadyrov noted that in this case Chechnya would not be able to develop. Then, President Vladimir Putin instructed the government to consider an increase in funding Northern Caucasus.

In June 2015, Kadyrov stated that soon Chechnya "would be self-financing," since its economy development model had "paid off."

According to Shamil Beno, a political analyst and business consultant, a member of the Russian-Qatari Business Council, the agreement of December 4, 2014, provides for annual reduction of subsidies to Chechnya. He noted that for the republic to pass over to self-financing, it is necessary to reduce the amount of federal taxes collected from the republic.

In his turn, Nikolai Protsenko, a deputy editor-in-chief of the "Expert YUG" magazine, believes that Chechnya "will survive the reduction of subsidies, but the republic will have to live within its budget."

Natalia Zubarevich, the director of the regional programme at the Independent Institute for Social Policy, is sure that "Chechnya will not survive the abolition of subsidies."

Full text of the article is available on the Russian page of 24/7 Internet agency ‘Caucasian Knot’.

Author: Rustam Dzhalilov Source: CK correspondent

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