Monday, May 19, 2014

The cost of Crimea

Moscow has said they will spend billions on everything in Crimea such as bridge linking to Russia and a higher standard of living. Which this year they have spent 7 billion. 
   Crimea will be a huge cost but its not all losses there are some benefits to this. There will be an end to the Gas for Base Agreement. This means Russia's gas prices will be lower and that Ukraine will be paying $100 more for each 1000 cubic meters of gas which will raise the gas prices for the people in Ukraine. 
   Another benefit to Crimea is their natural resources. Russia has estimated Crimea's reserves and got that there is 165.3 billion cubic meters of gas and 44 million tonnes of oil. The profit of  these resources would be over 1 billion and could be far higher with the unexplored offshore fields which could have trillions of cubic meters in gas. A long with resources Russia also has military equipment that was left in  Crimea by Ukraine and only will return some of it which might cause future problems with the cost of Crimea.
  I think this will be a huge investment for Russia and will cost so much money and take a lot of time. It may be worth it for Russia with all of the resources Russia could use or sell in Crimea.

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