Meeting with the participation of the PMR President, the Head of the Administration of the PMR President, members of the presidiums of the PMR Government and the PMR Supreme Council was held at the House of Official Receptions. They discussed the republican budget. Its implementation in the current realities and emerging prospects within the parameters established by law does not seem possible. The Minister of Economic Development Sergei Obolonik and the head of the Ministry of Finance Alena Ruskevich made reports on the current state of affairs.
The year began with a serious energy crisis, which provoked an economic decline. The geopolitical situation around the perimeter of the republic and in the world has a negative impact. The forced downtime of industrial enterprises led to a reduction in production volumes in January-May of this year by 43% (3 billion rubles in absolute terms). The electric power industry has fallen by 51.5%, ferrous metallurgy by 66%, and the chemical industry by 68% compared to last year's figures. The food industry, which is focused on the domestic market, is managing to hold its position. Foreign economic activity is in big minus. Foreign trade turnover has decreased by 31.5% even without taking into account electricity, which is not currently being exported. Budget sources have essentially been cut off. Energy supplies are unstable. Fulfilment of social obligations is becoming increasingly problematic. The Deputy Chairman of the Government assessed the overall situation as critical.
Vadim Krasnoselsky called for consolidating efforts to develop response measures. The classic solutions that previously kept the economy afloat are not enough, according to him. Reserves have been exhausted. The meeting participants discussed specific proposals that will be finalised.
