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Significance

Russia's annexation of Crimea last March has seriously damaged local economic and business conditions. The situation has been made worse by the Crimean government's policy of forced nationalisation of assets.

Impacts

Continued reliance on Russia's aid will prevent Crimea from becoming self-sufficient economically.

Despite the heavy cost of subsidising Crimea, Russia will not relinquish control over peninsula.

Nationalisation of assets and loss of deposits will potentially lead to Crimean public backlash against Russia.

Russia will continue to strengthen military assets in Crimea.

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