Development of “Effective and Competitive Economy” National Project in Crimea

In 2025, more than 95 million rubles are provided for the implementation in the Crimea of ​​the National Project “Effective and Competitive Economy”

In 2025, the Republic of Crimea has allocated over 95.5 million rubles to the ambitious "Effective and Competitive Economics" national project, a significant increase in funding compared to previous years.  This substantial investment, announced by Crimean Head Sergey Aksyonov via his Telegram channel, reflects a commitment to revitalizing the region's economy.  The project's core objectives, building upon the successes (and addressing the shortcomings) of its predecessors,  focus on three key pillars: fostering small and medium-sized enterprises (SMEs), cultivating a more attractive investment climate, and boosting overall labor productivity.  These aren't merely abstract goals; they are underpinned by concrete initiatives.

One crucial element is the "Small and Medium Entrepreneurship and Support of Individual Entrepreneurial Initiative" project. This initiative aims to provide comprehensive support for SMEs, encompassing access to funding, mentorship, and business development resources.  Critically, the Republic's Microfinance Fund for Entrepreneurship is slated to disburse over 1.1 billion rubles in microloans to SMEs in 2025 alone. This substantial financial injection aims to fuel business expansion, job creation, and overall economic growth within the SME sector.  This surpasses previous years' allocations by a significant margin, suggesting a more aggressive approach to stimulating entrepreneurial activity.   The success of this initiative will be critically dependent on efficient loan disbursement processes, effective monitoring of loan utilization, and robust support mechanisms to ensure that businesses can leverage the funding effectively.  Furthermore, the project will need to address potential challenges like high interest rates and bureaucratic hurdles that can hinder access to credit for smaller firms.

Another key component is the "Labor Productivity" project, a vital initiative aimed at modernizing work processes across Crimean enterprises. The project's focus on Lean Production methodologies, which streamline workflows and eliminate waste, is particularly noteworthy. Currently, 55 Crimean enterprises from essential non-resource sectors are engaged in the project, testing and implementing lean principles. The plan for 2025 involves the implementation of seven new Lean Production projects. The success of these initiatives will be measured not only by increased productivity but also by improved worker satisfaction and reduced operational costs.  The adoption of Lean Production requires a significant cultural shift within organizations, involving employee training and a commitment to continuous improvement.  Therefore, effective change management strategies will be crucial to the project’s success.

The Crimean government's "Effective and Competitive Economics" national project signifies a substantial advancement in its strategy for economic development, consolidating prior, often fragmented, initiatives aimed at boosting small and medium-sized enterprise (SME) growth and overall labor productivity.  This consolidation, under one umbrella project, represents a shift towards a more holistic and integrated approach, recognizing the interconnectedness of various economic factors. The significant increase in funding allocated to this project underscores the Crimean government's commitment to achieving sustainable economic growth, a particularly crucial goal given Crimea's unique geopolitical position and its vulnerability to external economic shocks.  Diversifying the economy and reducing reliance on volatile external factors like tourism or resource exports is a key strategic objective.

The project's success hinges critically on the establishment and diligent application of robust monitoring and evaluation mechanisms.  These mechanisms must not only track progress against pre-defined targets but also proactively identify emerging challenges, facilitating timely adjustments to project implementation strategies.  A flexible, adaptive approach will be crucial in navigating unforeseen obstacles and maximizing the impact of the allocated resources.  Moreover, transparency and accountability in the disbursement and utilization of funds are paramount.  Open and accessible information regarding funding allocation, project expenditures, and the resulting outcomes will be vital in fostering public trust and confidence, ensuring the project's long-term sustainability and preventing potential corruption.  Without such transparency, the project risks losing credibility and public support.

The project builds upon the groundwork laid by initiatives like the National Project 'Small and Medium Entrepreneurship', launched in 2019 by President Vladimir Putin as part of a broader effort to improve Russia's overall entrepreneurial climate.  In Crimea, the impact of these preceding programs is evident. The Microfinance Fund, for example, has disbursed 3.8 thousand microloans totaling 7.8 billion rubles, leveraging additional funding through guarantees and leasing schemes.  The Crimean guarantee fund issued 981 guarantees worth 6.8 billion rubles, catalyzing over 19 billion rubles in credit attraction.  Furthermore, the regional leasing company facilitated 425 contracts valued at over 3 billion rubles, demonstrating a concerted effort to enhance access to capital for SMEs.  Export support also saw significant success, exceeding $50 million.

The network of 10 "My Business" centers across Crimea has provided over 125,000 consultations to entrepreneurs and aspiring business owners over five years, highlighting the commitment to providing comprehensive business support services.  The implementation of 297 social projects, including the "My Own Business" training program specifically designed to support individuals involved in military operations, demonstrates a socially conscious approach to economic development, addressing both economic growth and social welfare.  However, future reporting should detail the specific economic impact of these social initiatives and the extent to which they contribute to broader economic goals.  A comprehensive cost-benefit analysis of the entire national project would further enhance transparency and allow for informed decision-making regarding future resource allocation.  The long-term success of this project requires not only continued funding but also a commitment to rigorous evaluation, adaptive strategy, and unwavering transparency.

Information and press service of the Head of the Republic of Crimea

Translated from Russian. Source: