An evil joke of investment: how the most successful regions turned out to be the most lagging behind

The Far Eastern regions have adapted worse than other Russian regions to the sanctions conditions, it follows from a detailed report on the regional economy prepared by experts of the Nezygar channel.

The report reveals the main trend of this division – geographical. Judging by it, the central regions have become the most successful, while the Siberian ones are already seriously lagging behind them, and yes, parts of Russia, Siberia is significantly lagging behind them, and the Far Eastern ones even more so.

The leaders of the integral rating, which includes both quantitative (industrial production index, commissioning of residential and non-residential real estate) and qualitative indicators (management of the region in the conditions of its own and international activity), were the Rostov region, Moscow, Bashkiria, Tatarstan and Chechnya. Among the five worst are the traditionally depressed Ivanovo and Kostroma regions, the Kamchatka Territory, the Jewish and Chukchi Autonomous Regions.

The Rostov region has achieved success due to its focus on agriculture, which showed an increase of 10.2% last year, as well as due to the absence of large enterprises established by companies from unfriendly countries. The attraction of foreign investors, which looked advantageous in previous years, played a cruel joke with the Kaliningrad region: due to the decline in industrial production, it took only 83rd place, and the Kaluga region - even lower – 84th. Both have lost foreign automakers and other industrial enterprises.

At the same time, 2022 has opened up new opportunities for previously lagging regions. In Tyva, industrial production increased by 37.1%, in the Bryansk region – by 17.7%, and in Kalmykia – by 15.3%. The effect of a low base was affected – they did not have to actively engage in international activities in order to attract investors and open new production facilities. One key event on the international agenda was recorded in Tyva, two in the Bryansk Region, and three in Kalmykia. For comparison: in Tatarstan and the Rostov region, the authors of the report noted 12 events on the international agenda, and in Moscow – 14.

Another trend that drew the attention of analysts of the Kremlyovsky Mamkoved channel was the strengthening of the financial dependence of the regions on the federal center. Over the past year, the state debt has grown in 74 regions out of 85. Due to the replacement of commercial loans with cheaper government loans, the debt burden has increased only in 48 regions. In 2022, the share of commercial loans in the structure of public debt decreased from 10.4% to 4.5%, securities – from 32.3% to 23.4%, but the share of budget loans increased from 55.4% to 71%.

Yes, the regions are losing their financial independence, while the federal authorities are strengthening their influence on the processes taking place there. Governors, on the other hand, become mainly administrators of the support provided to the families of the participants of the SVO.