Russian Economy General News: #1

sepheronx wrote:HAHAHAHAHAHHA Russia cannot be even compared to that of 1998. In 1998, Russia had a GDP average of 280B. Now they are at 2T. Russia's economy is not dipping, but it is at a stand still. There is a difference.

BTW, for all you so-called journalists that know shit all about reality and history (who probably got their degree because they received it under a name rather then actual education itself), here is something for you to look over: Economy of Russia - Wiki

Take a look at the IMF: IMF of world - Current statistics

I say good sir, you are wrong. I can write better articles.

As everyone in the western world and believers in Russia like to think....Corruption isn't nearly as bad as it was in the 90's (and never will be), and at that; thinking that all other countries are safe of the same thing, you are wrong. US is highly corrupted in the industries. Why do you think things are becoming problematic? It isn't just a war.

KRON1 wrote:http://www.bloomberg.com/apps/news?pid=20601068&sid=aLm0d8eNVK_0

RIAN wrote:MOSCOW/LONDON, September 8 (RIA Novosti) - The global economic crisis has not hurt Moscow’s chances of becoming an international financial center, City of London Lord Mayor Ian Luder said.

During his visit to Moscow, Luder is due to meet with Finance Minister Alexei Kudrin, the deputy chairman of the Russian Central Bank, Gennady Melikyan, and Moscow Mayor Yury Luzhkov, who said in May 2008 that the Russian capital should become one of the top five world financial centers by 2025.

Luder said during a video-link with London that Moscow’s population meant the city would grow and attract more international firms.

He said the recession would postpone some projects but not fundamentally alter the demand for financial services, which will grow globally. Luder added that the world is shifting to the east.

He said that British businessmen saw opportunities for cooperation in education and high-technology areas, and there were good prospects for British businesses specializing in financial services, insurance, pension funds and financial education.

The Lord Mayor predicted that major Russian companies would launch initial public offerings (IPOs) in London very soon.

A total of 39 Russian companies are traded on the London stock market and another 20 on the Alternative Investment Market (AIM).

Luder said he had already met with representatives of Russian Railways (RZD), whose affiliate The Second Cargo Company has expressed its intention to attract investment through an IPO.

Why Russia don't follow, America's example?

Russia must become one of world's leading economies - Putin

Russia must become one of the world's top five economies in the next 10 years to avoid interference in its affairs, Prime Minister Vladimir Putin said on Wednesday.

"Let's be frank - in the modern world, there will always be someone who would want to come to advise where you must move, which policy to pursue and the way to choose for you own country if you are weak," Putin told the State Duma, the lower house of parliament in his last speech in his present post.

"These are quite friendly, nonintrusive pieces of advice, but rough dictatorship and interference into affairs of an independent country hide behind them. One must be independent and strong... Russia must become one of the top five developed economies of the world by gross domestic product volume."

GDP per capita must be $35,000, like it is now in France or Italy, he added.

"And I want to say that this is the current figure, which will be changing," Putin said.

In 2000, when he was first elected president, Putin said Russia must at least reach the level of economic development of Portugal, Europe's poorest state.

Russia faces parliamentary elections this December and a presidential poll next March. Putin and President Dmitry Medvedev look increasingly like campaign rivals at the polls as they promote themselves and make veiled criticisms of each other.

Putin said Russia will have to at least double labor productivity in the next decade, something that has lagged behind since the Soviet era.

The share of innovation products must be increased to 25-35 percent from the current 12 percent.

"I am sure that Russia must launch a new wave of industrial, technological development, to create conditions for the inflow of long-term, 'smart' investment. We simply have no other alternative if we want to provide competitiveness of and demand for our human resources," he said.

Putin said that Russia must raise $60-70 billion in foreign investment each year soon compared to some $40 billion now.

He said that Russia would overcome the consequences of the international financial crisis ahead of plan and would fully compensate for the losses from it by 2012.

"In 2010, Russia's GDP expanded 4 percent - the highest level in G8 states. This year's forecast is about 4.2 percent," he said.

Price growth will slow down to no more than 6.5 - 7.5 percent this year after 8.8 percent last year, he said.

Putin outlines blueprint for stronger Russia

Russia needs to be strong and avoid experiments with "unjustified liberalism" in order to safeguard its sovereignty and prevent outsiders from dictating the country's development, Prime Minister Vladimir Putin said on Wednesday.

In an annual address to parliament -- his last as prime minister before legislative elections later this year and presidential elections early next year - Putin painted a glowing picture of his government's performance in 2010, stressing achievements ranging from economic growth to new infrastructure and social development.

Ambitious goals

Putin set out an array of far-reaching goals that he said should see Russia emerge as one of the "top five global economies" within the next 10 years.

"In the modern world - if you are weak - there will always be someone who wants to come and advise you on what direction you must move in, what policies to pursue and the path you should choose for your own country," Putin said. "We must be independent and strong."

The powerful Russian prime minister, who some analysts believe will bid to return to the Kremlin in 2012 and succeed his hand-picked successor, President Dmitry Medvedev, outlined a bullish agenda for Russia's future political and economic development.

Putin did not directly criticize Medvedev, who is generally regarded as the more liberal figure in Russia's governing tandem. But in his wide-ranging address, the prime minister made clear he had a clear vision about how Russia's government should be run in the future and peppered his arguments with words often associated with his successor.

"The country needs a decade of stable, calm development, without going to extremes one way or the other, without ill-conceived experiments, confusion over sometimes unjustified liberalism or social demagogy," the 58-year-old prime minister said, his comments frequently applauded by the lawmakers.

Referring to a policy centerpiece of Medvedev's administration -- innovation -- Putin said that acquisition of modern technology and know-how from abroad was useful up to a point but stressed investment at home would be decisive in achieving Russia's development goals.

"That is the source of innovation," Putin said.

Russia will have to at least double labor productivity in the next decade, something that has lagged behind since the Soviet era.

The level of foreign direct investment in Russia should increase to $60-70 billion "in the foreseeable future," Putin said.

Success stories

Russia has emerged from the global financial crisis in far better shape than most countries and will completely offset economic crisis-related losses by the start of 2012, before moving on to new achievements, Putin said.

"In 2010, Russia's GDP grew 4% -- the highest rate in the G8. This year's forecast is around 4.2%," he said.

This year's inflation will stay within 6.5%-7.5%, compared to 8.8% percent last year, he said.

The capitalization of Russia's stock market has exceeded $1.1 trillion, which is "the best result among BRICS countries," Putin said.

Russia will double its Reserve Fund to 1.43 trillion rubles ($50 billion) this year while the National Wealth Fund has more than tripled in the past two and a half years to 2.6 trillion rubles ($90 billion), the premier said.

"It is the main source for covering the Pension Fund deficit," he said. "This policy will leave us room for maneuver, give us financial independence and ensure us against possible risks, which are plentiful," he said.

Social peace

It is essential to secure peace inside the country and prevent any attempts to split Russian society, Putin said in the wake of protests and coups that have swept the Middle East and North Africa in the past few months.

Putin promised increases in pensions and other social payments, as well as higher spending on education and science. He also pledged to stop Russia's population decline, provide greater support to young families and better healthcare.

GDP per capita must be $35,000, as it is now in France or Italy, he said.

Defense

Putin emphasized the need to strengthen Russia's defense capability, modernize and upgrade weapons, including in the Navy and the Air Force, saying missile production will double from 2013.

Upgrading the Air Force and air defense systems will be a priority in the development of the Russian Armed Forces in the near future, he said.

"Anti-aircraft missile brigades are already receiving new S-400 [SA-21 Growler] systems," Putin said. "In the future, the production of S-500 systems will be started. They are capable of meeting air defense and missile defense tasks and destroying targets in near space," he said.

Ukraine asks Russia to switch to rubles in gas payments

MOSCOW, April 20 (RIA Novosti) - Ukraine has asked Russia to switch to rubles for payments for energy products supplied to the ex-Soviet republic, Russian Prime Minister Vladimir Putin said on Wednesday.

"The ruble is getting increasingly stronger in former Soviet republics. Today our Ukrainian partners are requesting us to switch to settlements in rubles for energy products," Putin said in his annual address to parliament.

"I hope we'll be strengthening the national currency to make it a reserve currency for the region," Putin said.

Putin said that 80 percent of cashless payments with Belarus were made in Russian rubles.