Caspian Sea: State of the Environment 2019

The Russian Federation’s Caspian regions dif- fer substantially in the sectoral structure of the GRP. The main contribution to GRP is oil and gas production in Astrakhan Oblast (25 per cent in 2015), agriculture in the Republic of Kalmy- kia (32 per cent in 2015) and wholesale and retail trade in the Republic of Dagestan (29 per cent in 2015). Fisheries and agriculture in the Republic of Kalmykia and the Republic of Dagestan com- prise only 0.1 per cent of GRP and 0.4 per cent in Astrakhan Oblast (Russian Federation, Federal State Statistics Service 2017a). In 2015, the GRP of the Russian Federation’s Cas- pian regions was equal to 927.7 billion roubles, to which the Republic of Dagestan contributed 60 per cent, Astrakhan Oblast 35 per cent and the Republic of Kalmykia 5 per cent. GRP capita for this year was highest in Astrakhan Oblast, where it was 314,000 roubles, followed by the Republic of Dagestan with 186,000 roubles and then the Republic of Kalmykia with 169,000 roubles. From 2012 to 2013, GRP growth rates were highest inAstrakhanOblast, then in the Republic of Dages- tan and lastly the Republic of Kalmykia. From 2014 to 2015, GRP (in comparable prices) decreased in all of the Russian Federation’s Caspian regions. In general, economic activity in the Russian Fed- eration’s Caspian regions is most diverse on the Dagestan coast, where agriculture is combined with industry and there is better transport infrastructure and a higher level of urbanization than other terri- tories. On the Astrakhan coast, agriculture is devel- oped and the number of people engaged in fishing activities is higher than in other coastal regions.The smallest economic burden falls on the coastal terri- tory of the Republic of Kalmykia (Russian Federa- tion, Federal State Statistics Service 2017). The Balkan Region in Turkmenistan is the larg- est oil-producing and oil-refining region in the country, with the fuel industry accounting for more than 81 per cent of industrial output (for which oil production was over 47 per cent and oil processing was around 28 per cent). In attempts to diversify the region’s economy, the tourism sector is being expanded and the volume of med- ical and therapeutic services is increasing (Turk- menstat 2018).

The Balkan Region is the most capital-inten- sive region in Turkmenistan. When developing its economy, 37.3 per cent of the country’s total investments was dedicated to the region, which was the most invested in a single region. These investments were made in oil and gas fields, in- dustry and construction facilities of the Avaza NTZ. Industrial production in the Balkan Re- gion accounted for 40.6 per cent of total industri- al production in Turkmenistan in 2011. In terms of the country’s GDP, contributions from the energy sector totalled 76.1 per cent, or 79,976.1 million manat, while industry contributed 49.3 per cent (39,417 million manat) and agriculture contributed 10 per cent (8,023.5 million manat) (Turkmenstat 2012) Despite pressure from the ongoing global eco- nomic crisis, GDP grew by 6.2 per cent in 2016 and 6.5 per cent in 2017 (Turkmenstat 2018). In response to the consequences of declining reve- nues from hydrocarbon exports, the Government of Turkmenistan defined its priorities for national economic diversification, stimulating exports of domestic products and import substitution. The national programme of the President of Turkmenistan for the reform of social and living conditions in villages, towns, cities and districts and etrap centres for the period until 2020 is be- ing implemented. The programme’s main objec- tive is to create high living standards for the rural population and to bring them as close as possible to urban conditions to ensure balanced social development of all settlements throughout the country. In 2017, 1,845.9 million manat (around US$528 million) was invested in the programme, including 210.6 million manat (around US$60 million) in the Balkan Region. Investments were directed to the construction of housing, hospi- tals, medical facilities, schools, water and sew- er networks, roads and improved power supply (Turkmenistan Today 2016). The coastal Balkan Region, like other Caspian coastal regions, is characterized by vast reserves of fuel and mineral resources (polymetals, coal, lignite, bentonite, building stone). The region also has unique climatic conditions and large agricultural areas, the vast majority of which are pastures (Shamuradov 2000).

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