From an economic point of view it is important to look how the most similar 'independent' seperatist area, Abkhazia is doing. In this case Russian forces have enabled the creation of a new entity, practically completely politically isolated apart from Russian support. It was a tourism magnet before the collapse of the SU, with splendid beaches, but it has only 1/8 of Crimeas population and Russian tanks can just drive over the border. The economic and political situation was of course more desperate and especially more violent and in this case Russia supports another ethnic group which is barely larger then the second ethnicity.

In 2010 the following EU paper described the state of the economy:

B. ECONOMIC ASPECTS

1.Dependence on Russian financial aid and investment

Even though Abkhazia’s state budget has been steadily increasing over the past years, its dependence on Russia for budget support is as important as its reliance on Moscow’s military presence. In 2009, approximately 60 per cent (1.9 billion roubles, $65.5 million) of the state budget was direct support from Moscow. For 2010, the monetary figure will remain the same but fall in percentage terms, to 49 per cent (1.9 billion roubles, $63 million, out of a total budget of 3.875 billion roubles, $128.5 million). This includes both infrastructure projects and direct budget support. Russia also pays local pensions – many times larger than the Abkhazian gov-
ernment’s $17 monthly allocations – to Russian pass-
port holders, directly from its own budget.

Russia also accounts for 99 percent of Abkhazia’s “foreign investment” and is by far its largest trade partner. In 2008, (figures for 2009 are incomplete) Abkhazian exports totalled 890 million roubles, while imports were 6.2 billion, leaving a deficit of over 5 billion roubles ($165.8 million). Abkhazia mainly exports scrap metal, gravel, tea, tangerines, hazelnuts, wine and some flowers. In 2008 there was some trade with Turkey (metals, lumber exports and fuel imports) and Romania (fuel imports), but Abkhazian officials gave no amounts or monetary value. They estimated that 80 per cent of everything consumed in Abkhazia is imported from Russia.
The bit about the pensions to Russian passport owners out of the Russia budget is expecially interesting. Of course the Crimean pensions have been much higher and there should be a multiple of recipients. The balance of trade was even more amazing then I thought, roughly a relation of seven to one. On the other hand it is no surprise that Russia has to pay half of Abkhazias budget. If it was to do the same it could easily have to pay directly twenty times more.

I have to leave it there for now but there is some interesting stuff to add later.