Investments in the Crimea: myth or reality?

The Russian-controlled Peninsula authorities and media have reported agreements with Russian investors for the construction of new enterprises in Crimea, development of tourism infrastructure and implementation of energy saving projects. At the same time, one of the most prominent businessmen of the Crimea Oleg Zubkov announces plans to move to Turkey, near Simferopol misleading about raider capture of the feed mill, and in Sevastopol, a well-known restaurant “the Island” have been blocked outfit “Berkut”. What happens to the business environment of the Crimea? Why successful Crimean projects are on the verge of closing? What is waiting for new Russian projects on the Peninsula? These questions will be answered by the managing partner of Management Development Group Inc Dmitry Potapenko, the owner of the Yalta zoo “Skazka” and the Park of lions “Taigan” Oleg Zubkov.

The Crimean mass media report about attracting investment: Theodosius entered into an agreement for 2.6 billion rubles. Among the projects, the rehabilitation of the complex “Koktebel”, the restoration of the local port, marine engineering plant and recreation facilities. In Kerch announce the construction of a glass plant. To invest in small and medium business of Russian bankers controlled by the Kremlin, the Minister of economy of Crimea Andrey Melnikov. While one business comes to the Crimea, the other leaves: largest on the Peninsula Bahchisaray construction enterprise “Stroyindustriya” has exposed on sale. And the owner of the Crimean “Taigan” Oleg Zubkov announced plans to open a zoo in Turkey. Next to the Istanbul plans to build the biggest zoo in the world, will work this year. After the annexation from the Peninsula left the representatives of foreign companies, Western countries imposed a series of economic sanctions and banned its companies to work in Crimea.

— We’ve got the Creator of the Yalta zoo “Skazka” and the Park of lions “Taigan” Oleg Zubkov. Oleg, you have decided to move their projects in Turkey. Why there?

Zubkov: Turkey is one of ten countries who asked me to organize such parks on their territory, provided support. There is nothing like this in many countries, and there are tourists and residents who are interested in such product. In Turkey, suitable climatic conditions — I want to see the same African lions all year round walking in the pens and not huddled in winter quarters. Furthermore, important stability, the investment climate and attitude towards investors. After all, what is now happening in the Crimea, to call favorable investment climate is impossible.

Latest Ukrainian government has approved construction of five of my new projects: oshadny Park “Suvorov”, amusement Park “White rock” zoo “Sun” in Evpatoria, Park of tigers in Sevastopol “Crimean Coliseum”. The Russian government just needed to continue work on these five projects. But in ten meetings did not appear even no intermediate document. I fought for three years and realized that any opportunity to implement their projects in the Crimea, I do not. The most precious is time. And I had one work trip in Istanbul to realize that not everything in the world is hopeless, there are managers who are sincerely interested in successful investment projects. And I suggested not to invest their money as I wanted and insisted that everything will be built by Istanbul municipality and handed over to me in the office.

— Controlled by the Kremlin head of Crimea Sergey Aksenov said that the business climate on the Peninsula is quite satisfactory, and the crisis is a window of opportunity for business. What can you say about this? Really, all is well, and you make a withdrawal from his private situation?

Zubkov Sergey Aksenov spoke beautifully and personally handing out my number to investors on the economic forums, but I don’t envy investors who decide to build something in the Crimea under his leadership. They get lost in bureaucracy. I know that many famous entrepreneurs today their business to other countries. But, no matter how uncomfortable or was Zubkov, he established himself in the Crimea. Such authorities as I do not need love is enough to achieve understanding and to give to implement their projects for the benefit of the Crimea. Me, in addition to the conditions for the normal operation of existing parks and development of new.

— Will you be able to evacuate the animals from the territory of Crimea?

Zubkov: There is the law of Russia providing for the procedure of moving including animals. All will be monitored by the media, supported by the public. After completing all requirements from the authorities simply have no choice. Animals will be removed. But if suddenly this happens, it will be a tragedy for Russia and the Crimea, but not for me. I find animals in Europe and will create a new collection. But to give something to the Crimean authorities I’m not going.

— In touch with us managing partner of Management Development Group Inc Dmitry Potapenko. Dmitry, is there a Crimea on the map of Russia as a territory of priority investment?

Potapenko: As a territory of priority investment no. All my friends are investors who invest something in the Crimea, have enough short-term plans. Investment — thing to return. Roughly speaking, people sell money then to buy the money. Need effective demand. And in Crimea, these processes are only as long as there are public investment projects like the Kerch bridge. This period of 2-3 years. Crimea will remain a subsidized region: in the money put back will not receive.

— What is the strategy of the business in the Crimea?

Potapenko: the planning Horizon is quite short, alas. And that’s bad, the horizon should be at least 36 months — I’m sorry, but even alcohol, prostitution and weapons are not pay off quickly. Further strangulation of small and medium business in Russia is inevitable, is a typical feudal scheme — but, sadly, is reasonable, because our fellow citizens do not want to actively build a civil society and in particular to develop the business. And feudal lords, vassals, devouring, only properly respond to the needs of the population.