Publication

This commentary discusses the financial costs Russia will incur as a result of its annexation of Crimea. The author explains that the annexation necessitates increased social spending, military investments, as well as energy, water and transport development, which will constitute a significant financial undertaking for Russia. The author concludes that, while the annexation clearly also provides a number of benefits for Russia, whether it can carry these costs in light of its own economic situation remains to be seen.