Aljazeera.net correspondents
Moscow– The Ukrainian ground incursion into the province did not pass Kursk the west Russia Without leaving any economic repercussions on the province, and thus on Russia in general.
The province came into the media spotlight after it was subjected to a surprise ground incursion by Ukrainian forces on August 6, before a federal state of emergency was declared there three days later.
Kursk is located about 150 kilometers from the border with UkraineIt contains the city of Sudja, which contains a gas metering station and ensures the export of Russian gas to Europe.
Against the backdrop of field developments in the province, gas prices reached Europe To its highest annual levels. In contrast, the Russian stock market was not significantly affected, indicating that it is no longer as sensitive to geopolitical factors as it was at the beginning of Western sanctions that continue to this day, according to Russian experts.
Vital area
But the Ukrainian forces' control over scattered areas in the province, although it basically carried political, military and tactical dimensions, the economic damage that this control caused to Russia is no less important.
We are talking about a strategic economic boycott that has achieved growth in recent years. gross domestic product Investment by 1.8 times, industry by 1.6 times, agriculture by 1.8 times, construction by 2.6 times, and wages by 1.7 times.
Moreover, Kursk Oblast has unique natural resources and a developed infrastructure network, as well as the largest iron ore basin on the planet, the Kursk Magnetic Anomaly Zone, which provides raw materials for Russian and foreign metals.
It also houses one of the largest power plants in the country, which supplies more than 80% of the electricity produced there to other regions of Russia and the CIS countries.
Advanced industries
Kursk is also distinguished by the development of mechanical engineering, metalworking, chemical, food and processing industries, and high-tech products.
Over the past years, the province has seen a significant increase in the volume of construction work, amounting to about 2.5 million square meters, including the construction of a regional oncology center and a building for treating infectious diseases, as well as dozens of schools, kindergartens, health centers and sports fields.
Over the past five years, more than 1,750 km of roads have been repaired, and nearly 270 km of new roads with outdoor lighting have been built, which has made it possible to significantly increase the volume of goods transported by land.
The agricultural sector plays a major role in the local development of the region and Russia alike, and is one of the main sources of economic development of the region, which ranks second in the Central Federal District in the production of grain and oilseeds, and third in Russia in the production of all types of meat.
Surprise lessons
Economic writer Igor Belsky sees these data as additional factors that could accelerate the Russian forces’ move towards regaining control over the areas that fell into the hands of Ukrainian forces, including very vital areas that even the most pessimistic war scenarios did not indicate could one day fall under the control of Ukrainian forces.
In an interview with Al Jazeera Net, the spokesman expressed fears that are growing over time that armed clashes will cause additional damage to the province, especially to its vital facilities and infrastructure, in addition to the Ukrainian forces resorting to the option of deliberate “retaliatory” destruction to cause a new economic and structural crisis for Russia.
In this context, he points out that Ukraine has destroyed 3 bridges so far, which – in his opinion – is an economic disaster that will cost large sums of money and a long time to rebuild.
According to him, the most important task today for Russia is to prevent Ukraine from seizing the Kursk nuclear power plant in Kurchatov in any case, especially after it managed to seize the geographic information systems in Sudzha.
Resisting geopolitical shocks
For his part, macroeconomics writer Igor Blinkin believes that the slight fall in the ruble by about one point and the absence of economic or political consequences due to the “negative” developments in the Kursk region reflect the ability of the Russian economy in recent years to adapt to the two systems. Penalties And geopolitical tremors, including internal or related to the war with Kiev.
In his opinion, the Kursk events did not affect the exchange rate, but rather it was linked to the rise in interest rate in Central Bankand the rise in taxes, and the threat of falling oil prices, noting that 90 rubles per dollar (the current price) does not represent a problem at all, and it is an exchange rate that was predicted earlier and remains within safe limits, according to him.
