Russia annually spends about $5 billion on occupied Crimea and Donbas.

About $5 billion is allocated annually from the budget of the Russian Federation for the upkeep of the temporarily occupied territories of Donbas and Crimea.

"We know for sure that the Russian budget finances the salaries of civil servants in the temporarily occupied Donbas and Crimea. According to our data, $1.03 billion is allocated annually for civil purposes, and up to $3.7 billion a year is allocated for military issues. On average, $5 billion a year," Vice Prime Minister of Ukraine - Minister for Reintegration of the Temporarily Occupied Territories Oleksiy Reznikov said during a press conference "Synchronization of actions of the authorities on the de-occupation of Crimea and Sevastopol" at the Ukrinform news agency.

According to the Ukrainian Vice PM, the funds are transferred in various ways, including through the banks located not in the territory of the Russian Federation, in particular, through other annexed or occupied territories.

As reported, the forced alienation from Ukraine and the unilateral illegal accession of the Autonomous Republic of Crimea and the city of Sevastopol to the Russian Federation was declared by Russia on March 18, 2014, allegedly upon the results of the so-called "referendum on the status of Crimea" of March 16, 2014.

The annexation of Crimea, like the pseudo-referendum, is not recognized by Ukraine and most world countries, is not recognized by the UN General Assembly, PACE, OSCE PA, and contradicts the decision of the Venice Commission, while Russian authorities interpret it as "Crimea's return to Russia." According to the Law of Ukraine "On Ensuring the Rights and Freedoms of Citizens and on Legal Regime in the Temporarily Occupied Territory of Ukraine", the territory of the Crimean peninsula is considered to be a temporarily occupied territory.

The intrusion of Russian troops into the territory of Donetsk and Luhansk regions of Ukraine began in 2014. Illegal "Donetsk People’s Republic" and "Luhansk People’s Republic" were proclaimed. Despite numerous facts of involvement of the Russian Armed Forces and evidence of Russia's involvement in the war, Russia does not officially recognize the fact of its invasion of Ukraine, so the Ukrainian side considers the war undeclared. The areas occupied by the militants have the status of temporarily occupied territories.

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