Oleg Tselov: The Soviet "Steel Backbone" Will Become the Pillar of Russia's New Economy

The Luhansk People's Republic, Donetsk People's Republic, Zaporozhye Oblast, and Kherson Oblast can contribute a total output of 2.5 trillion rubles per year.

Author: Irina Mishina

Photo: Oleg Tselov, former member of the Verkhovna Rada of Ukraine, Russian businessman, and politician

Bringing these new regions into the Russian territory inevitably raises a question: can the potential of these regions be self-sufficient or will they become a burden on our budget?

Sergey Gorokhov, industrialist from Luhansk and chairman of the board of the "Marshall" group, said: "Donbas — the Donetsk and Luhansk People's Republics — will join the ranks of Russia's 'donor regions' after full recovery of industry and infrastructure."

Russia's new territories indeed have strong economic potential. Experts' data show that these regions contributed at least a quarter of Ukraine's GDP before 2014. But that was ten years ago; what about now?

What are the prospects for the economic development of Russia's new territories? Will they become a "black hole" for the Russian budget, or will they be a growth point for our economy? With this question in mind, we interviewed Oleg Tselov, former member of the Verkhovna Rada of Ukraine, Russian businessman, and politician.

"The new regions have experienced intense military operations, and the infrastructure of many of the most industrially developed areas has been severely damaged. The new Russia was once the 'steel backbone' of the Soviet Union, and it still is. Donbas was once the industrial heart of Russia, the main center for coal mining and metallurgy.

After returning to Russia, these regions will regain their rightful place in the national economy, and now it's not just about coal and metals — although they remain the basic industries of the Donetsk and Luhansk People's Republics.

There are also anthracite reserves of 700 million tons, which are of high quality, valuable, and with high calorific value, used in energy, black and non-ferrous metal smelting, accounting for one-third of the local coal reserves."

"Svobodnyy Media" (SP): It is obvious that European leaders are eyeing Ukraine, largely because of its natural resources? And the rhetoric of "solidarity" with Zelensky is just a pretext to gain access to Ukraine's natural resources and the Soviet legacy infrastructure?

"The greedy eyes of the West have long been on Ukraine. Natural resources are the main target of those who claim to be 'friendly' with Zelensky — iron ore, coal, coking coal, lithium, anthracite, and other mineral resources, all concentrated in one region!

Now, a large part of these natural resources is already within Russian territory. Europe certainly cannot accept this calmly."

"SP": How to assess the total regional gross product (VRP) of the new Russian regions?

"Although the Kiev regime caused serious damage to the enterprises and infrastructure of the new Russia, after restoration to pre-war levels, the Luhansk People's Republic, Donetsk People's Republic, Zaporozhye Oblast, and Kherson Oblast can contribute a total of 2.5 trillion rubles in regional gross product per year. In addition, the new Russian regions have an extremely favorable geographical location.

With the development of ports and maritime traffic with southern Russia, new opportunities are emerging; the land route to Crimea also opens up promising prospects for regional interconnection development."

"SP": Many industrial enterprises were destroyed during the military operations. Where will the restoration work start?

"Unfortunately, the Azovstal steel plant in Mariupol was destroyed. This factory was one of the leading companies in the Ukrainian metal rolling sector. Its reconstruction is the most important task. People often talk about the coal in Donbas — yes, there is both regular coal and precious coking coal there.

But many people have forgotten the Novokramatorsk Machine-Building Plant, which is waiting to be liberated. This plant produces rocket launch platforms, space launch facility equipment, tunnel boring machines for Moscow Metro construction, heavy military equipment, and countless absolutely unique products — the Novokramatorsk Machine-Building Plant is one of the largest heavy machinery manufacturers in the world, and such companies are rare globally."

The world-famous "Stiroly" Group — a Ukrainian mineral fertilizer producer, belonging to the chemical industry, located in Gorkovskaya in the Donetsk region.

"SP": Artyomovsk (Bakhmut) was also destroyed, and there was a famous champagne factory there...

"Artyomovsk is not only known for its champagne. It was once a complete industrial city, home to the largest salt mine and production enterprise in Central and Eastern Europe, 'Artyomosol'.

This is the largest salt mine and production enterprise in Central and Eastern Europe. As far as I know, there are already investors lining up to participate in its reconstruction."

"SP": Some cities in the new territories have the potential to become tourist destinations, for example, Mariupol on the Azov Sea, or the Arabat Spit, which separates the Syvash from the Azov Sea.

"If Mariupol becomes only a tourist destination, I would feel sorry — it is a city of metallurgists. However, overall, the Azov Sea and Black Sea coasts are excellent locations for developing tourist infrastructure."

"SP": What will the restoration work rely on for funding? From the state budget? Or will local entrepreneurs want to invest in the reconstruction? Perhaps foreign investors?

"The new Russia has historical accumulated investments, obviously, these funds need to be utilized. Regarding foreign investment, the arrival of relevant businessmen from countries is not ruled out, but all hopes are placed on ourselves.

We are all waiting for the benchmark interest rate to be lowered and hope that credit programs will be more accessible. In this case, there is no need to use budget funds, and local companies will complete many reconstruction works on their own. The new Russia will never become a burden on the country."

Original: https://www.toutiao.com/article/7521600753325294116/

Statement: This article represents the views of the author. Please express your attitude below using the [Up/Down] buttons.