The request comes as the economic crisis is making it increasingly hard for the Arkhangelsk administration to meet its budget obligations both in Arkhangelsk Oblast and in the Nenets AO. The agreement signed by the two regions in early 2008 transferred key powers over budget and government from the oil-rich Nenets AO to the less wealthy Arkhangelsk Oblast.
Mr. Fyodorov argues that the return of the powers will make it easier for the two regions to overcome the current economic hardships and keep life standards on former levels.
In a letter sent to Governor Mikhalchuk, Mr. Fyodorov proposes to sign an agreement which temporary returns the powers, Regnum reports.
However, it looks unlikely that Governor Mikhalchuk will respond positively to the request. As noted by regional analyst Andrey Churakov to Regnum, the return of the powers will be a major blow to the position of Mr. Mikhalchuk and will not look good neither in the eyes of the regional population, nor in Moscow.
As reported in the latest Barents Monitoring report, the Arkhangelsk regional administration has cut its budget to the bone as tax revenues have plummeted and regional industry is in crisis.
