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    Russian Economy General News: #5

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    max steel
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    Re: Russian Economy General News: #5

    Post  max steel on Wed May 06, 2015 4:17 am


    RUSSIAN LIVING STANDARDS


    Very interesting article


    http://www.unz.com/akarlin/on-frosts-russia-article/

    Austin
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    Re: Russian Economy General News: #5

    Post  Austin on Wed May 06, 2015 6:08 am

    MOSCOW, May 6 - RIA Novosti / Prime. The Reserve Fund of the Russian Federation in April fell by almost 0.5 trillion rubles as of May 1 totaled 3.95 trillion rubles, which is equivalent to 76.41 billion US dollars; the total volume of the National Welfare Fund amounted to 3.946 trillion rubles, which is equivalent to 76.33 billion dollars, the Ministry of Finance said Wednesday.

    Reserve fund as of April 1 amounted to 4.426 trillion rubles ($ 75.7 billion); NWF - 4.347 trillion rubles (74.35 billion dollars).

    РИА Новости http://ria.ru/economy/20150506/1062855493.html#ixzz3ZM652Div

    kvs
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    Re: Russian Economy General News: #5

    Post  kvs on Wed May 06, 2015 6:54 am

    Austin wrote:
    MOSCOW, May 6 - RIA Novosti / Prime. The Reserve Fund of the Russian Federation in April fell by almost 0.5 trillion rubles as of May 1 totaled 3.95 trillion rubles, which is equivalent to 76.41 billion US dollars; the total volume of the National Welfare Fund amounted to 3.946 trillion rubles, which is equivalent to 76.33 billion dollars, the Ministry of Finance said Wednesday.

    Reserve fund as of April 1 amounted to 4.426 trillion rubles ($ 75.7 billion); NWF - 4.347 trillion rubles (74.35 billion dollars).

    РИА Новости http://ria.ru/economy/20150506/1062855493.html#ixzz3ZM652Div


    Since the ruble is fully floated they are spending the money on the national economy instead of feeding western speculator parasites.

    sepheronx
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    Re: Russian Economy General News: #5

    Post  sepheronx on Wed May 06, 2015 8:17 am

    Vann7 wrote:Buahahaha.. the RUble is now at 49.8 per dollar  Smile

    http://www.bloomberg.com/quote/USDRUB:CUR


    Just 2 days ago Anti Russian trolls were claiming Ruble will only get worse when it was a 52..
    But Oil prices keeps going up..and Russia Ruble performance increase// i think a sweet price
    could be 45 to 48 ?

    for comparisons before the ukraine conflict coup..by january 2014 before sanctions and oil decline ,Ruble was trading at ~35 per dollar. if the Oil prices climb to $70 , the Ruble without a doubt will be trading for 45 ,or bit less.

    Well, cant have ruble too high or it affects import substitution industry and their exports. So they need to lower interest rates again to decrease ruble value.

    Hannibal Barca
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    Re: Russian Economy General News: #5

    Post  Hannibal Barca on Wed May 06, 2015 8:25 am

    Best value for Ruble is above 60 to dollar. Worst can happen for Russian industry is oil price to go higher, 50$ is perfect. The fall of the price was an unintentional gift for Russian production.

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    Re: Russian Economy General News: #5

    Post  sepheronx on Wed May 06, 2015 8:29 am

    Hannibal Barca wrote:Best value for Ruble is above 60 to dollar. Worst can happen for Russian industry is oil price to go higher, 50$ is perfect. The fall of the price was an unintentional gift for Russian production.

    Most Russian on sdelanounas stated around the high 50's is the sweet spot, but I agree with you. Hopefully the Rus gov ignores the gains and continues to push the development. If their currency gets too strong, they can simply lower interest rates and possibly increase money supply.

    par far
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    Re: Russian Economy General News: #5

    Post  par far on Wed May 06, 2015 8:42 am

    I think Russia has a chance to make the price of oil go very high, with the war in Yemen, would Russia consider supporting the Houthis and their allies. I mean if the Houthis and their allies hit just one or two Saudi oil fields boom, the price of oil is going up. It's not like Saudis are friends of Russia, they are always try to hurt Russia.

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    Re: Russian Economy General News: #5

    Post  Vann7 on Wed May 06, 2015 5:25 pm

    Hannibal Barca wrote:Best value for Ruble is above 60 to dollar. Worst can happen for Russian industry is oil price to go higher, 50$ is perfect. The fall of the price was an unintentional gift for Russian production.

    There have to be a balance. if Ruble in 60 it will help Russia Energy industry ,but not the
    local industry.. because any business in Russia based from US and Europe will cost more its
    products , it will be too expensive fast food , and technology too..that Russia cannot substitute .. like the things people buy more in christmast.. technology or home system entertainment..
    like a playstation or Xbox or video games , musical instruments , Flat monitors ,PCs and fashion will be more expensive that comes from the west.. and it could provoke European and American store chains to close in Russia leaving people thousands of students unemployed.

    So i think ,a better prices of the Ruble should be in the flat 50 ,until Oil prices move beyond $75, then it should move to 45. So small business investment from the west based in fashion and technology can continue operating. Ideally of course should be nice if Oil prices $100 again until at least end of year and later permanently have oil at $80 to $90. And the RUble value in the 35 per dollar to attract investors.

    sepheronx
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    Re: Russian Economy General News: #5

    Post  sepheronx on Wed May 06, 2015 8:47 pm

    Vann7 wrote:
    Hannibal Barca wrote:Best value for Ruble is above 60 to dollar. Worst can happen for Russian industry is oil price to go higher, 50$ is perfect. The fall of the price was an unintentional gift for Russian production.

    There have to be a balance. if Ruble in 60 it will help Russia Energy industry ,but not the
    local industry.. because any business in Russia based from US and Europe will cost more its
    products , it will be too expensive fast food , and technology too..that Russia cannot substitute .. like the things people buy more in christmast.. technology or home system entertainment..
    like a playstation or Xbox or video games , musical instruments , Flat monitors ,PCs and fashion will be more expensive that comes from the west.. and it could provoke European and American store chains to close in Russia leaving people thousands of students unemployed.    

    So i think ,a better prices of the Ruble should be in the flat 50 ,until Oil prices move beyond $75, then it should move to 45. So small business investment from the west based in fashion and technology can continue operating.  Ideally of course should be nice if Oil prices $100 again until at least end of year and later permanently have oil at $80 to $90.  And the RUble value in the 35 per dollar to attract investors.

    It is the very import industry you are talking about that has caused a lot of problems for Russia, and it is that industry that has prevented Russia from progressing their own development. You might want to rethink your comments because you cannot complain about not doing enough for import substitution/diversification of economy, and at the same time promote the import industry.

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    Re: Russian Economy General News: #5

    Post  GarryB on Wed May 06, 2015 10:17 pm

    A weak rouble makes it more attractive to buy Russian.

    If something is too expensive to import.... make it yourself...

    If the rouble stays weak big western companies might shift their factories in China over the border into Russia....


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    Re: Russian Economy General News: #5

    Post  Austin on Thu May 07, 2015 1:29 am

    FORBES 2015 World Biggest Public Company ( Russia )

    http://www.forbes.com/global2000/list/#country:Russia

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    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Thu May 07, 2015 1:43 am

    sepheronx wrote:
    Vann7 wrote:
    Hannibal Barca wrote:Best value for Ruble is above 60 to dollar. Worst can happen for Russian industry is oil price to go higher, 50$ is perfect. The fall of the price was an unintentional gift for Russian production.

    There have to be a balance. if Ruble in 60 it will help Russia Energy industry ,but not the
    local industry.. because any business in Russia based from US and Europe will cost more its
    products , it will be too expensive fast food , and technology too..that Russia cannot substitute .. like the things people buy more in christmast.. technology or home system entertainment..
    like a playstation or Xbox or video games , musical instruments , Flat monitors ,PCs and fashion will be more expensive that comes from the west.. and it could provoke European and American store chains to close in Russia leaving people thousands of students unemployed.    

    So i think ,a better prices of the Ruble should be in the flat 50 ,until Oil prices move beyond $75, then it should move to 45. So small business investment from the west based in fashion and technology can continue operating.  Ideally of course should be nice if Oil prices $100 again until at least end of year and later permanently have oil at $80 to $90.  And the RUble value in the 35 per dollar to attract investors.

    It is the very import industry you are talking about that has caused a lot of problems for Russia, and it is that industry that has prevented Russia from progressing their own development.  You might want to rethink your comments because you cannot complain about not doing enough for import substitution/diversification of economy, and at the same time promote the import industry.

    While that is entirely true, the Russian economy became basically largely compradore from 2000 to 2007 and didn't shift much after, the byproduct of the new sets of rules regarding oil will also mean that the RUB will appreciate. Before the RUB had a great option with the Dollar being weak (up to 35/40% of what it is now) so higher oil prices would be compensated by a lower USD. But now, you have basically an USD at 1.05 EUR and thus the real cost of the bbl is around 80 USD FY2013. Which explains the recent RUB surge. However it isn't only an oil issue, the Russian FOREX is also off the charts. In less than 6 months it variated the RUB almost 70%. Seven. Zero. This is clearly the smoking gun about how a portion of the current rich elite of Russia is inherently anti-Russian on its core. It used a very difficult moment to milk both the Russian state and the middle class (which tried also to do the same out of panic).

    What kept Russia from progressing is also the fact that cheap cash was plentiful for most Russian Biz, since they have MORE liquidities than their Euro-peer, which is what banks are after. Therefore the recent move to try and obtain RUB for oil, will naturally appreciate the Ruble and make it more difficult to control the budget issue. Before you had this great idea of being paid in reserve currency (although a very unstable one) and then when the time was right you'd play with the exchange rate to earn more. Now you are paid in RUB and can't have that luxury anymore while having all the shifts directly affect your balance.

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    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Thu May 07, 2015 1:56 am

    Austin wrote:FORBES 2015 World Biggest Public Company ( Russia )

    http://www.forbes.com/global2000/list/#country:Russia

    saracasm-ON: Wow wtf those profit margins are out of the loop. Way to go for the big'uns. That my friends is the measure of corruption.

    6.5% profit margin on gas?

    Sarcasm Off.

    Very good picture of the deep practices in Russia. A former "Communist" bastion, it has evolved in such a sharks nest, totally in line with "democratic west".

    These are the kind of indicators people need to show to those who rehash the Rasha Corrrrruuuupshon playbook. It seems that Corruption isn't worse in nature than am Westen.

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"...

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    Re: Russian Economy General News: #5

    Post  higurashihougi on Thu May 07, 2015 2:18 am

    KoTeMoRe wrote:Sarcasm Off.

    Very good picture of the deep practices in Russia. A former "Communist" bastion, it has evolved in such a sharks nest, totally in line with "democratic west".

    These are the kind of indicators people need to show to those who rehash the Rasha Corrrrruuuupshon playbook. It seems that Corruption isn't worse in nature than am Westen.

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"..

    Dunno if I correctly understand your opinion. But sharks nest already developed in the old USSR when corrupted goverment officers and party memebers tried to expolited their authorities for money and wealth.

    After Stalin died, the battlefield commanders allied with Khruschyov and organized a coup to topple the Scientist-Industrial-Development faction of Stalin. Using the mask of destalinization, the battlefield commander solidified their position established the military dictactorship in Russia.

    As far as I hear, a number of industrial-scientist leaders who were Stalin's protegees are being persecuted by the military commanders. For example, Beria was executed and his crimes were carefully emphasized an excuse. Or Mikoyan was forced into a retirement after he finished the first prototype of MiG-29.

    Khruschyov was toppled by Stalinists in 1964. But shark nest of the military dictactorship still existed and it became worsen under Brezhnev regime, until the USSR collapsed in 1991.

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    Re: Russian Economy General News: #5

    Post  magnumcromagnon on Thu May 07, 2015 2:49 am

    KoTeMoRe wrote:

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"...

    Of course not, they would have to be leveraged in astronomical, bubblicious and unsustainable levels of derivatives and securities for them to be as valuable as US Shale companies...mind the same geniuses at Forbes, The Economist, etc. were predicting the Shale Revolution would de-throne Russian gas, but now that Shale pipe-dream is completely imploding with the US Shale market in a massive $200 billion hole of unsustainable debt.

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    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Thu May 07, 2015 2:49 am

    higurashihougi wrote:
    KoTeMoRe wrote:Sarcasm Off.

    Very good picture of the deep practices in Russia. A former "Communist" bastion, it has evolved in such a sharks nest, totally in line with "democratic west".

    These are the kind of indicators people need to show to those who rehash the Rasha Corrrrruuuupshon playbook. It seems that Corruption isn't worse in nature than am Westen.

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"..

    Dunno if I correctly understand your opinion. But sharks nest already developed in the old USSR when corrupted goverment officers and party memebers tried to expolited their authorities for money and wealth.

    After Stalin died, the battlefield commanders allied with Khruschyov and organized a coup to topple the Scientist-Industrial-Development faction of Stalin. Using the mask of destalinization, the battlefield commander solidified their position established the military dictactorship in Russia.

    As far as I hear, a number of industrial-scientist leaders who were Stalin's protegees are being persecuted by the military commanders. For example, Beria was executed and his crimes were carefully emphasized an excuse. Or Mikoyan was forced into a retirement after he finished the first prototype of MiG-29.

    Khruschyov was toppled by Stalinists in 1964. But shark nest of the military dictactorship still existed and it became worsen under Brezhnev regime, until the USSR collapsed in 1991.

    The problem is that Russia is a different sharks nest than back then. You don't need to come straight of Party School to make it big in Russia today. That's the idea. A "Free Russia" with all that Dictatorial Past, seems to have actually cleaned its act if we are to base ourself on this data. It has the same level of profitability than its western counterparts (usually more assets) and has many +10bln worth of sale businesses out there with PROFITS.

    Hardly a corrupt rundown place with state picked corporations...

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    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Thu May 07, 2015 2:50 am

    magnumcromagnon wrote:
    KoTeMoRe wrote:

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"...

    Of course not, they would have to be leveraged in astronomical, bubblicious and unsustainable levels of derivatives and securities for them to be as valuable as US Shale companies...mind the same geniuses at Forbes, The Economist, etc. were predicting the Shale Revolution would de-throne Russian gas, but now that Shale pipe-dream is completely imploding with the US Shale market in a massive $200 billion hole of unsustainable debt.

    Shale is life...etc clown

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    Re: Russian Economy General News: #5

    Post  higurashihougi on Thu May 07, 2015 3:00 am

    KoTeMoRe wrote:
    magnumcromagnon wrote:
    KoTeMoRe wrote:

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"...

    Of course not, they would have to be leveraged in astronomical, bubblicious and unsustainable levels of derivatives and securities for them to be as valuable as US Shale companies...mind the same geniuses at Forbes, The Economist, etc. were predicting the Shale Revolution would de-throne Russian gas, but now that Shale pipe-dream is completely imploding with the US Shale market in a massive $200 billion hole of unsustainable debt.

    Shale is life...etc clown

    Ah yeah, Divine Shale Oil of Obama: http://russia-insider.com/en/ukraine-slashes-gas-purchases-europe-doubles-imports-russia/ri6527

    To be honest I don't know why at the moment there are some people who still believe in that. I met some of them. Can't fathom that.

    Edit: I made a mistake in the previous post. Mikoyan was retired after he made the prototype of MiG-25, not MiG-29.

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    Re: Russian Economy General News: #5

    Post  kvs on Thu May 07, 2015 8:27 am

    KoTeMoRe wrote:
    Austin wrote:FORBES 2015 World Biggest Public Company ( Russia )

    http://www.forbes.com/global2000/list/#country:Russia

    saracasm-ON: Wow wtf those profit margins are out of the loop. Way to go for the big'uns. That my friends is the measure of corruption.

    6.5% profit margin on gas?

    Sarcasm Off.

    Very good picture of the deep practices in Russia. A former "Communist" bastion, it has evolved in such a sharks nest, totally in line with "democratic west".

    These are the kind of indicators people need to show to those who rehash the Rasha Corrrrruuuupshon playbook. It seems that Corruption isn't worse in nature than am Westen.

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"...

    The market valuation of Gazprom is transcendentally ludicrous. It makes its market valuation in less than three years in term of profits. Laughing

    Gazprom PE ratio: 15.25%

    Exxon PE ratio: 13.24%
    Exxon revenue $372.8 billion
    Exxon market cap: $369.9 billion

    So Exxon makes 2.36 times more income than Gazprom but has a market capitalization which is 5.92 times higher even though Gazprom has a
    higher PE ratio. This demonstrates that there is no such thing as a free market in the west. It is a politically conformant market steered by
    special interests.

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    Re: Russian Economy General News: #5

    Post  kvs on Thu May 07, 2015 8:36 am

    magnumcromagnon wrote:
    KoTeMoRe wrote:

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"...

    Of course not, they would have to be leveraged in astronomical, bubblicious and unsustainable levels of derivatives and securities for them to be as valuable as US Shale companies...mind the same geniuses at Forbes, The Economist, etc. were predicting the Shale Revolution would de-throne Russian gas, but now that Shale pipe-dream is completely imploding with the US Shale market in a massive $200 billion hole of unsustainable debt.

    BS rating agencies such as Standard and Poor's and Moody's impose a lot of influence on the choices of stock buyers. They
    systematically undervalue Russian assets and exaggerate the risks. They are two bit political hack operations but they
    have established reputations in the west. Most stock buyers are lemmings. I know a family where the wife is basically a day
    trader and it is clear that they are successful at the stock market game. According to the husband the pattern is that investors
    buy high and sell low. Seriously, they do the opposite of what they should be doing. They just respond to herding instinct
    like lemmings. In this environment the BS rating agencies wield enormous power.

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    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Thu May 07, 2015 9:01 am

    kvs wrote:
    magnumcromagnon wrote:
    KoTeMoRe wrote:

    Side note, it is very interesting to see how low the market value of Russian companies is when compared to others. Market "realities"...

    Of course not, they would have to be leveraged in astronomical, bubblicious and unsustainable levels of derivatives and securities for them to be as valuable as US Shale companies...mind the same geniuses at Forbes, The Economist, etc. were predicting the Shale Revolution would de-throne Russian gas, but now that Shale pipe-dream is completely imploding with the US Shale market in a massive $200 billion hole of unsustainable debt.

    BS rating agencies such as Standard and Poor's and Moody's impose a lot of influence on the choices of stock buyers.  They
    systematically undervalue Russian assets and exaggerate the risks.   They are two bit political hack operations but they
    have established reputations in the west.   Most stock buyers are lemmings.  I know a family where the wife is basically a day
    trader and it is clear that they are successful at the stock market game.  According to the husband the pattern is that investors
    buy high and sell low.  Seriously, they do the opposite of what they should be doing.   They just respond to herding instinct
    like lemmings.  In this environment the BS rating agencies wield enormous power.

    I'd say that it is a circle. My banker usually either puts the white gloves and washes me with "proven" Western stocks (Hello Nokia), or offers little incentive to check out from current western oriented portfolios. On the same time, many other people have invited me to check out other assets and as a fact, I know they are making a killing, notably in Africa. However unlike them I don't have the kind of money to recoup losses from adventures gone awry, so for now, I only cheer from the sidelines.

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    Re: Russian Economy General News: #5

    Post  Viktor on Thu May 07, 2015 1:52 pm

    Nice  thumbsup

    Russia's international reserves rose by $ 5 billion

    India to allow projects on the Russian shelf in the Arctic

    and ....

    Gazprom, Ankara agree to start Turkish Stream gas deliveries in Dec 2016

    and perhaps the most important

    New Iran Port Deal Paves Way for Russia-India Corridor


    Except for EU fags it seems that no one listens to the US anymore Very Happy

    India signed a memorandum of understanding with Iran on Wednesday which would allow it to build a port in Iran. The agreement took place despite US warnings against deals with Iran before the nuclear agreement is reached before the deadline on June 30.

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    Re: Russian Economy General News: #5

    Post  Neutrality on Thu May 07, 2015 3:47 pm

    Putin is lobbying like hell for Russian economic interests. It's sad that these radical oppositionists don't understand it.

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    Re: Russian Economy General News: #5

    Post  Cyberspec on Fri May 08, 2015 2:44 am

    This is pretty important news as well...

    Russia and China will create a credit Fund of two billion dollars

    Russia and China will create a credit Fund for the development of Russian business. With the help of such institution in the Russian economy in the next three years could receive approximately $ 20 billion.

    As a result of an agreement between China Construction Bank Corporation and the Russian direct investment Fund (RDIF) domestic business will have access to the Chinese lending market. Chinese can increase lending to the Russian economy several times. "We hope to attract to the Russian economy $ 20 billion over three years", - told RBC head of RDIF Kirill Dmitriev.

    Most of these funds will be used for the development of agriculture. Such an agreement expected to be signed during the visit of the President XI Jinping in our country.

    The Fund will give money in the form of so-called mezzanine lending on relatively small part, and the rest will be issued by Chinese banks. So, if any of the Russian business wants to attract a billion dollars, the Fund will Finance $ 100 million, and the rest will give the Chinese banks...

    full report: https://z5h64q92x9.net/proxy_u/ru-en.en/www.rg.ru/2015/05/08/china-site.html

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    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Fri May 08, 2015 2:49 am

    Oy Vey more Israeli-styled connections?

    I hope this time it is better controlled, because the mezzanine loans, which were a part of the Israeli smash and grab in Ukraine and Russia (albeit in a smaller scale) were typically screens for the mob back then.

    I hope this is the real deal.

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    Re: Russian Economy General News: #5

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