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    Russian Economy General News: #1

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    KRON1
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    Russian Economy General News: #1

    Post  KRON1 on Wed Aug 12, 2009 4:15 am

    I already debunked this hysteria with my July 30th article in the oped of Moscow Times...

    Russian Economy Compared To 1998 Financial Crises

    30, July 2009

    By Joel Craun


    On July 29th, an oped titled in the Moscow Times "No Place in BRIC for Russia's Economic Mess" was published which raked the current leadership's handling of the economy under the coals. What the author failed to mention are the specifics of the economic recovery plan and the problems faced with the rouble that have been staved off. At the beginning of the global financial crises, the rouble faced major devaluation and Medvedev enacted billions in banque bailouts to shore up the banques and prevent another crises like 1998. In that year, there was major devaluation of the rouble caused by falling energy prices and the economy collapsed. FDI dried up and so did state loans. It was not until Putin came to power that economic recovery began.

    President Medvedev and Prime Minister Putin have in the 2008 crises been able to avoid this collapse by shoring up the banques and stabalising the value of the rouble. This was the first necessary step which is not much different than what was done in the US. Other facets of the economic recovery plan include one of the major industries, arms manufacture. Trillions of roubles are being allotted to the state defence order to keep this sector operational while we see falling orders in foreign exports. This sector of the economy is still posting record highs and is saved thanks to it. Major recapitalisation of production has occurred in this sector using French and South Korean technologies which are going to make arms exports competitive once again.

    The author complains about failed roads but fails to look at other methods of transport which are actually more important than roads to the Russian Federation. The rail stock in the Russian Federation has increased as well as the technological quality. Billions have been spent on modernising the infrastructure and domestic railcar production using European and US (GE) equipment. Russia actually has a head start in this regard to reduce CO2 emissions by not relying on tractor trailers for freight transport. This will serve the economy well in the long term.

    While there have been price freezes on goods, they are mainly on fruits and vegetables which the author fails to mention. The policy is attempting to stave off massive inflation as we saw when Yeltsin took off price controls and opened the markets; do we really want to see that again? The overall effect of the freeze has only a marginal effect on the rest of the economy. The real hindrance to economic growth that the author fails to mention is the poor policy regarding SDB, or small disadvantaged business.

    Russia falls far behind the West and even China in this regard due to poor financial support and a lack of enforcement for intellectual property rights. Small business is the life blood of any capitalistic economy and supporting that can save the Russian Federation. Conferences have been held addressing this very issue, but what remains to be seen is action.

    Using Gazprom's decrease in export by 35% as an example serves little purpose since they are dependent on demand. Ukraine has been stealing gas from the lines that are supposed to go to the EU making transport unreliable. The South Stream pipeline is being built to help bypass this bankrupt country that cannot afford its gas bill. Gazprom has been reducing supply to increase price which is no surprise.

    Corruption has always been Russia’s biggest obstacles and the Russian MOJ has been convicting far more cases of this. While the fact that 50% of business is owned by the state makes this a mixed centralised and capitalist economy, something had to be done to carry Russia through this financial crises. Obama has done the same by buying up major US companies and bailing out banques so why the cry of foul when Russia does it too?

    The Russian government knows what it must do but they face huge hurdles in this current crises and can be expected to get back on track when it has ended. Now is not the time to be playing with an economy that is teetering as it was under the Yeltsin administration. We know how that experiment with no price control and open markets turned out, utter failure.

    ===============================================

    Joel Craun is a Military and Foreign Policy Analyst, alumni of the Citadel Graduate College and senior contributor to the Russian Military Forum, RussiaDefence.Englishboard.net

    He has authored the working papers "Status of the Russian Navy's Cruisers" and "Russian relations with Syria-Israel".

    http://articleavenue.com/article23992-russian-economy-compared-to-1998-financial-crises.html

    sepheronx
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    Re: Russian Economy General News: #1

    Post  sepheronx on Wed Aug 12, 2009 2:38 pm

    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.

    When you look at things, the old still rule (when I say old, I am talking about Soviet era). Heck, I was born 3 years before the end of the Soviet Union. And to be honest with you, as long as these old timers who still live in the past are in power, people like you and various others will believe anything that is said about how evil Russia is. But the younger generations are realizing the Russian's are humans like the rest of the world.

    This is a good time for Russia to re-invent their economic stance (and they can come out far stronger then before), but saying they are at 1998 level, is FAR FAR FAR FAR wrong. I would love to see your points as to why they are. I mean, no one is starving, the poor class is decreasing rapidly, and business still exists, while the 90's, well, that was different.

    Edit/Offtopic: Sometimes I feel that most people are uneducated and just stupid. I just don't see logic or reasoning behind a lot of points made, they are just said and done with no backing. YAAAA retardation!!!!

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    Re: Russian Economy General News: #1

    Post  KRON1 on Wed Aug 12, 2009 3:07 pm

    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.

    That was after a 40% drop in real GDP and then you quote a PPP 2008 GDP which is irrelavent. If you are going to compare two numbers they have to be based on the same data ratio. Russian PPP GDP right before the 98' crises was a little less than a trillion dollars. High inflation has been driving down the PPP ratio closer to real GDP every year. Russia's economy is not at a stand still, but retracting by 8-10%.

    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.

    The article was written defending Putin's policies compared to the utter failure of the Yeltsin era. I suggest you read it again.

    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.

    Did I say it was? I said they were cracking down on it. You didn't even bother to read. Sleep

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    Re: Russian Economy General News: #1

    Post  sepheronx on Wed Aug 12, 2009 3:14 pm

    No, because when I saw the article, I had a feeling what it was referring to. As well, I was reading some parts of it.

    Also, to make mention, the GDP of Russia was and still is above 1.5T, and closing in. Russia during 98 was dirt poor, but still managed.

    Russia can and will become a power. Difference is, the ideal concept of using raw oars and crude oil was a stepping stone to gain the money needed for further development in both industry and agriculture (the two most important aspects).

    Sorry for not reading everything, as I was too harsh in the beginning. But most of everything you made mention was beaten to death by any combatant article with Russia sTrOnG!1!1!!! group versus the ever so unambiguous douchebag Americans.

    sepheronx
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    Re: Russian Economy General News: #1

    Post  sepheronx on Thu Aug 13, 2009 3:12 pm

    By the way, I would like Figures to your statements about it decreasing. As I have heard, it is lot less the 8-10% like you said. Which is blatantly wrong, as the crisis did not hit in a length that can be given strait estimates to what it is. Because at "your" figures, Russia is dropping economically faster then USA and England, which isn't the case, as both the UK and USA are facing harder "hardship" and "economic downfall" then Russia.

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    Re: Russian Economy General News: #1

    Post  KRON1 on Fri Aug 14, 2009 10:02 am

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

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    Re: Russian Economy General News: #1

    Post  sepheronx on Fri Aug 14, 2009 3:01 pm

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

    Yeah, and that is annually? No? Then lets wait till end of the year why wont we. Or are you going to state "but the website said so" and "this is what it is at the end of the year!".

    Yeah.

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    Lord Mayor of London positive on Moscow’s financial prospects

    Post  sepheronx on Tue Sep 08, 2009 3:24 pm

    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.

    Source

    Sweet! Russia StROnG!!11!1!

    But on a serious note....why would it take all the way up till 2025 to become top 5 major trading city? Would it be because Russia would have to be first considered into the WTO in order to be classified as one? If so, how is Russia's chances in the WTO?

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    Re: Russian Economy General News: #1

    Post  Vladimir79 on Tue Sep 08, 2009 5:13 pm

    I was living in Moskva just a couple years ago and it was booming economically. The stock exchange of Russia is mostly made up of energy companies which makes it lacking in a robust stock exchange due to having varied large companies. Telcom, IT, nanotech, and rail stocks are driving future growth.

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    Re: Russian Economy General News: #1

    Post  sepheronx on Tue Sep 08, 2009 6:13 pm

    So what is Russia's plans then? And don't they already have lots of money input into development of Nanotech, Rail, and telecommunications? At least from what I gathered, Russia has quite the diverse and advanced communication development. But is it the lack of "exporting" these goods? If Russia decided to invest more into a PR group that would be able to provide other people and countries support and other such goods in allowing these Russian companies like architects, Railroad development groups and other forms of infrastructure (telecom), then I can see Russia booming greatly.

    You would of course know more. If you do not mind explaining. But I would like to know the current outlook of these industries....companies. If this even makes sense.

    Thanks.

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    Russian Labour Market keeps Unemployment Lower than Expected

    Post  Vladimir79 on Fri Nov 06, 2009 11:25 am

    Unusual Features of Russian Labor Market Have Kept Unemployment There Lower than Expected

    November 05, 2009
    Paul Goble

    In the early 1990s and especially over the last year, many Russian commentators and politicians have competed among themselves in predicting extraordinary increases in unemployment, in both cases to figures comparable to those which the American and other Western economies suffered during the Great Depression.

    But certain specific features of what a Russian scholar describes as “the Russian model of the labor market” – including greater flexibility in hours, forced vacations, second jobs, backlogs in pay, production at home, and lax law enforcement – have kept unemployment from rising nearly as far as most have predicted.

    In the lead article in the current issue of the Russian Academy of Sciences journal “Demoscope Weekly,” Rostislav Kapelyushnikov describes this model, but at the same time, he points out that another aspect of this “Russian” model is that unemployment is unlikely to fall quickly with any recovery (demoscope.ru/weekly/2009/0395/tema01.php).

    According to the Moscow demographer, “the Russian model of the labor market” was not constructed “from above” on the basis of any plan, but rather it arose “spontaneously, under the impact of decisions taken independently of one another by the government, entrepreneurs and workers.”

    Among the chief characteristics of this model, Kapelyushnikov continues, are relatively stable levels of employment and hence relatively low unemployment, an arrangement that he suggests means that employment does not rise when the economy grows or decline during a recession by as much as elsewhere (demoscope.ru/weekly/2009/0395/tema02.php).

    The figures he offers show that “each percentage point of a fall in output is accompanied by a reduction in employment of only 0.3 – 0.35 percent,” significantly less than in other countries, including other former Soviet republics, and less than many Russians who make apocalyptic projections apparently believe.

    This relative stability in employment despite changes in the economy reflects a variety of other factors besides those listed above. Among them are relatively love mobility of workers among enterprises, a more flexible approach to work time so that hours are reduced before staff is cut, and remarkable tolerance among workers for getting paid only after significant delays.

    Kapelyushnikov says that this combination of factors represents “the ‘visiting card’ of the Russian model of the labor market.” And while this model is unusual, he continues, its distinctiveness does not mean that some or all of its features are not found in part in other countries (demoscope.ru/weekly/2009/0395/tema06.php).

    “However, nowhere else are their size and variety so significant, the concentration so full, and the rootedness so deep as in Russia,” the Moscow demographer continues. Some analysts say that this reflects the relative flexibility of Russian labor law, but Kapelyushnikov disputes that. Were the laws enforced strictly, the Russian model could not function.

    Indeed, he suggests, “from an institutional point of view, the uniqueness of the Russian labor market consists precisely in the way in which the system of enforcement works,” a system that research has shown is “extremely ineffective.” And it is that rather than the law that allows “the Russian market” to work as it does (demoscope.ru/weekly/2009/0395/tema07.php).

    Kapelyushkin’s data and conclusions are both intellectually interesting and politically important. They help to explain why unemployment in Russia has not been far higher than would otherwise be the case. And they suggest why the current economic system enjoys as much support as it does even among Russia’s hard-pressed working class.

    But perhaps most intriguingly in the current political environment, they are yet another indication that any rapid move to enforce existing legislation could have some negative consequences on the sensitive issue of unemployment even though such enforcement is the only way Russia could move toward the law-based state Dmitry Medvedev says he is for.

    Eurasia Focus:

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    Re: Russian Economy General News: #1

    Post  Vladimir79 on Fri Nov 20, 2009 6:55 am

    Severstal posts strong Q3, outlook improved
    MOSCOW, Nov 19 (Reuters) - Severstal, Russia's largest steelmaker, posted a surprise third-quarter net profit thanks to a strong performance at its domestic mills and said it was increasingly optimistic about the future.

    "Greater stability in our primary markets has made us more optimistic on the prospects for the remainder of 2009 and 2010," Chief Executive Alexei Mordashov said in a statement on Thursday.

    "While a Q4 seasonal correction cannot be ruled out, we believe further measured recovery in 2010 is now more likely."

    Severstal made a third-quarter net profit of $66 million, versus the $131 million net loss forecast in a Reuters poll and after a $1.31 billion profit a year ago.

    A construction-led upturn in Russia, where recession hit late last year, was offset by continued losses in the United States, where they narrowed sharply from the previous quarter, and in Italy.

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    Re: Russian Economy General News: #1

    Post  Vladimir79 on Fri Nov 20, 2009 7:51 am

    Fitch: Russian Corporate Bond Market Shows Signs of Recovery

    Fitch Ratings-London/Moscow-18 November 2009: Fitch Ratings says in a special report published today that the RUB1.5trn Russian domestic corporate bond market has shown some signs of recovery since June 2009. The agency believes this is due to the success of the Russian Central Bank's Lombard List (LL) mechanism and because of improved liquidity on domestic and international markets.
    "Once the global financial crisis took root in 2008, many Russian issuers experienced a significant liquidity squeeze which resulted in increased defaults in 2008 and during early 2009," said Raymond Hill, Senior Director in Fitch's Corporates team. "Investors became more risk-averse during the crisis which has resulted in increased demand for more liquid and higher credit quality bonds. This in turn has resulted in higher demand for Lombard List Bonds which can be used as collateral under the LL funding arrangements with the Russian Central Bank."
    The Russian Central Bank's Lombard List incorporates bonds with an Issuer Default Rating (IDR) of 'B-' or higher, as of the present date.
    Russian bond market issuances declined substantially during the first four months of 2009, when the trend was a negative 80-100% on a yoy basis. At that time, the major drivers in the market were large publicly-owned corporations such as JSC Russian Railways (RZD, 'BBB'/Negative), OAO Gazprom ('BBB'/Negative) and JSC Transneft.
    The market's dynamics were somewhat restored in June, when monthly yoy bond growth turned positive again with the return of liquidity to the markets. Liquidity was restored due to government help to domestic banks through both the LL and direct cash injections.
    The report also addresses, relative to international peers, the less mature regulatory environment of Russia's bond market which in particular translates into less bondholder protection and weaker disclosure requirements. Fitch understands that the Russian authorities are considering potential legal changes which could make the country's domestic bond market more efficient in this respect. In addition, the agency is of the opinion that embedding more bondholder protection into common bond structures would help improve market transparency and liquidity.
    The report, entitled 'Russian Corporate Bonds', is available on the agency's website, www.fitchratings.com.

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    Russia could begin export of drinking water

    Post  Vladimir79 on Fri Nov 27, 2009 10:27 am

    Russia could begin export of drinking water

    Moscow: Russia, which has the world's largest sweet water resources, could begin export of drinking water to needy countries within next five to 10 years.

    "Acute shortage puts water in the category of key resources like oil and natural gas, ferrous and non-ferrous alloys. I presume that after five years, maximum 10 years the export of water could become a reality for Russia.

    "Our country has enough potential for this and our many neighbours have need for water," said Boris Gryzlov, Speaker of State Duma (the Lower House of Russian Parliament).

    Addressing the International Forum "Pure Water 2009" here, Gryzlov said as part of the diversification of national economy Russia also could provide cutting edge technology for water conservation and purification to its needy neighbours, primarily Kazakhstan and other Central Asian republics.

    As Russia looks to move away dependency on the export of crude oil, he said many experts had proposed the export of sweet water as one of the major alternative sources of revenue.

    http://www.zeenews.com/news581833.html

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    Re: Russian Economy General News: #1

    Post  sepheronx on Sat Nov 28, 2009 7:27 am

    Its funny when you think of it, but guess what makes more money here in Canada, then oil? Bottled watter. It is the biggest profit orginization next to technological institutes and agriculture.

    If same buisness practices move its way to Russia, along with its large industrial complex systems, Russia can jump trillions in terms of revenue.

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    Re: Russian Economy General News: #1

    Post  milky_candy_sugar on Sat Nov 28, 2009 8:22 am

    Diversifying the market.....big money coming


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    Re: Russian Economy General News: #1

    Post  sepheronx on Sat Nov 28, 2009 2:48 pm

    If Russia wants to be rich and powerful, they need to look at how they can manage their country. A good country to look at is Finland. Even if Finland does not make a whole lot of money in comparrison to Russia as it is now, or China or USA for that matter, they still have a very stable economy that has been around for hundreds of years.

    Difference is for everyone else, is that countries like China and USA or Russia (as seen in the USSR era), is if there is an error in the system, it falls (and hard). We are seeing that already in USA. If they allow free trade, diversify their economy, yet still have worker protection programs and other social systems, then the country can last as a power for a very long time. And it is easier for Russia to make the big bucks, because of their resource rich land, technological know-how and educated people.

    Things like the water market and nanotechnology is just a start to something great.

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    World Bank: The Recession has made Russia harder

    Post  NationalRus on Sat Apr 24, 2010 6:29 pm

    World Bank: The Recession has made Russia harder

    Russia withdraws from the current global crisis intensified. The opinion expressed by answering the ITAR-Tass at a briefing on the eve of the spring session of the governing bodies of the WB and IMF in Washington, Vice President of the World Bank's Europe and Central Asia, Philip Le Wairua and chief economist of the regional offices Indermit Gill. Gill said that in terms of its results for the current crisis in Russia is different from the shocks 2000-2001, differs as "as day from night." "In the last crisis, Russia entered the economic turmoil weak and came out of it even weaker - he said. - At present Russia is now strong, and comes out of it even more economically certain."
    Le Wairua for its part said that Moscow has a "clear path" to overcome the effects of the crisis in the financial and budgetary terms. He recalled that Russia has just "extremely well" distributed its Eurobonds, which added an additional "vote of confidence by the markets."

    The specialist called as "absolutely correct" strategy of the Russian authorities, aimed at diversifying the economy and improving its efficiency. In both these areas the Bank is already "actively working" with Russia and is going to continue this work further. In addition to cooperation on a bilateral basis with the World Bank and Moscow to develop cooperation at the global and regional levels, continued Le Wairua. He explained that the refers, in particular, an important new role of Russia as a global donor. Vice-president of WB confirmed that "hopes" to increase the Russian contribution to the organization's budget, in particular through the International Development Association, which specializes in providing soft loans to the poorest and most needy countries.

    http://www.vesti.ru/doc.html?id=355149&cid=549

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    Re: Russian Economy

    Post  vishal_lionheart on Tue Nov 09, 2010 12:36 pm

    Why Russia don't follow, America's example?
    Mr.Obama has came with 300 CEO's in India. There is lot of business opportunities between both of COUNTRIES. Russia, UKRAINE and ALL Former Soviets partners have RICH in natural sources also they also have a sound educational and technical back ground. There should be win/win situation for both. After all Business is also important.
    Hope, Putin and Medvedev follow Obama's example.

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    Re: Russian Economy General News: #1

    Post  GarryB on Tue Nov 09, 2010 1:56 pm

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

    It was the US that started this whole economic collapse in the first place... and the problem that has always been there is that the US is the centre of the financial universe and when mistakes are made there like offering loans to people that clearly cannot pay them back then occasionally bad stuff will happen. The rest of the world hasn't got hundreds of trillions of dollars to bail out their banks and financial institutions and even if they did why would they?

    Free market economy should equal the rule that no bank or finance company should be so big and so important to your economy that it can't be allowed to fail. By bailing them all out you set yourself up for another fall in a decades time when all the lessons of today have been forgotten.

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    Re: Russian Economy General News: #1

    Post  Austin on Wed Apr 20, 2011 2:40 pm

    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.

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    Re: Russian Economy General News: #1

    Post  Austin on Wed Apr 20, 2011 2:52 pm

    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.

    Austin
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    Re: Russian Economy General News: #1

    Post  Austin on Wed Apr 20, 2011 2:54 pm

    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.

    GarryB
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    Re: Russian Economy General News: #1

    Post  GarryB on Wed Apr 20, 2011 3:43 pm

    Should point out also that now that South Africa has entered the BRICS group Russia is no longer the lowest performing economy... or the economy with the biggest problems.

    Hopefully collectively the members of BRICS can improve the economic and political situation of all its members and provide a viable alternative to the predominantly white western alternative.

    Austin
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    Re: Russian Economy General News: #1

    Post  Austin on Thu Apr 21, 2011 12:23 pm

    Russia and China has already decided to use their native currency Rouble/Yuan while trading and ditching dollar

    http://www.foreignexchangeservice.co.uk/foreign-exchange-asia/11/2010/china-and-russia-ditch-the-us-dollar-for-bilateral-trade.html

    While BRIC nations have similar plans , so this would help in their respective currency get stronger and not let them depend on American Dollar or Euro.

    BTW after Putins speech yesterday which in some way was a snide against Medvedev reforms , its not likely Medvedev will get a chance or contest for the next presidential election.

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