Military Forum for Russian and Global Defence Issues


    Russian Economy General News: #5

    Share

    kvs
    Colonel
    Colonel

    Posts : 2545
    Points : 2678
    Join date : 2014-09-11
    Location : Canuckistan

    Re: Russian Economy General News: #5

    Post  kvs on Wed Aug 19, 2015 1:35 am

    sepheronx wrote:
    Austin wrote:More updated data from IMF on 2015 GDP PPP

    http://knoema.com/nwnfkne/world-gdp-ranking-2015-data-and-charts

    2020 Projection from IMF dont look great

    http://knoema.com/tbocwag/gdp-by-country-1980-2014#Russia

    GDP at current US$, int.$ and Real GDP growth

    Why not post PPP rates, since now with sanctions and what not, it forces import substitution and FOREX means nothing at that point.

    Edit:  User78 also has posted about car production (mostly train) compared to USSR time to now.
    http://sdelanounas.ru/discussions/view/?id=955#120435

    Seems Russia produces much more automotives and locomotives during Putin era than during USSR era.

    It's a liberast, NATO-approved trope that things were all around better under Yeltsin. Total, ludicrous lies designed
    to push their anti-Russian agenda.

    George1
    Colonel
    Colonel

    Posts : 9457
    Points : 9949
    Join date : 2011-12-22
    Location : Greece

    Re: Russian Economy General News: #5

    Post  George1 on Wed Aug 19, 2015 4:12 am

    Russia will soon suspend spending of funds from National Wealth Fund — Kremlin aide

    Key rate in Russia to go down to 4% soon — presidential aide


    _________________
    "There's no smoke without fire.", Georgy Zhukov


    Austin
    Colonel
    Colonel

    Posts : 5683
    Points : 6089
    Join date : 2010-05-08
    Age : 40
    Location : India

    Re: Russian Economy General News: #5

    Post  Austin on Wed Aug 19, 2015 6:17 am

    Good Read

    Russia's Second Quarter Contraction Is No Big Deal

    higurashihougi
    Colonel
    Colonel

    Posts : 2130
    Points : 2245
    Join date : 2014-08-13
    Location : A small and cutie S-shaped land.

    Re: Russian Economy General News: #5

    Post  higurashihougi on Wed Aug 19, 2015 7:30 am

    @serephonx, austin: My opinion is that Russian economy is really suffered a decline, about 5% decrease this year, but not because of sanction or other sh*t of Western propaganda. It is because EU/U.S. economy is exhausting and has no money buy Russian goods anymore, and because the current reform/change of Russian economic structure.

    Russia is the main supplier of high-tech goods and luxuries to EU and U.S., like titanium products, space rockets, oil drilling technologies, super high grade cereal grain, vodka, rod cheese... But at the moment, EU/US economic is in bad shape. Consumption is affected, and Russian business affairs in EU is also affected.

    Russia actually makes use of the sanction to give up foreign luxurious, and ram up domestic production to replace these products. Russia kicks the **s of EU dairy products. GM ran away from Russia. Russians stopped travelling to Western countries, boost up domestic tourism. Meanwhile, Russia also takes a look at rising BRICS allies like China, India, and started to increase the amount of business affairs with BRICS friends.

    All of that caused temporal disruption in Russian economy and lead to a temporal decline of GDP. But in long term it will boost the domestic production and capability of Russia.

    In other words, 5% decline this year is the offering for the deceased old friend EU, before Russia turn its eyes to the growing BRICS.

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Wed Aug 19, 2015 7:30 am

    Austin wrote:Good Read

    Russia's Second Quarter Contraction Is No Big Deal

    After reading that, I get the perception that the main aim of Russian government and CBR is to reduce overall interest rates and keep it low to help people have more disposable income.  If the oppositions and social services of Russia get their way, Russia may see an increase in minimum wage by 11% of what it currently is.  Quite a jump really, that would help people on the lower spectrum out greatly (as long as products don't instantly jump).

    One growing issue is the Russian railways.  While they are indeed still purchasing locomtives (had to look it up cause some news mentioned in that crappy article in the Army thread by our vietnamese friend (for joking purposes, so don't blame him) tried to use Uralvagonzavod in an attempt to look like it was losing money and wont make tanks, and it is losing out on the railcar sales, when I read this: http://uralvagonzavod.com/news/87/ and http://uralvagonzavod.com/news/86/, but that is export), RDZ had to make quite the cutbacks in purchasing railway carts.  So what was initially orders for close to upwards 400 or more locomotives, it may be in the upper 200's, back to the 2010 year.  So some locomotive and cart companies are cutting back development and manpower, also trying to seek further exports (hard when you got a dozen companies competing for the same thing in Russia).  So there needs to have something done.  Maybe create an alternative railway company as competition to RDZ and have new rail lines going to more places.  I know that there are various northern locations pretty much untapped by railway and rely entirely on airplane transport - Norlisk I believe is one of them.  So having a rail line going through up to those places, added in newer locomotives that can handle the weather, would create jobs and demand.  Also, apparently Crimea has placed with RDZ a contract for rental of locomotives.  The locomotive and construction equipment industries are huge employers and money makers, so that is also another field facing issues (not nearly the same issues as in the past, as I have provided information showing that they ordered in the 90's single digit orders of locomotives, compared to now where it is the 3 digit columns).

    higurashihougi wrote:@serephonx, austin: My opinion is that Russian economy is really suffered a decline, about 5% decrease this year, but not because of sanction or other sh*t of Western propaganda. It is because EU/U.S. economy is exhausting and has no money buy Russian goods anymore, and because the current reform/change of Russian economic structure.

    Russia is the main supplier of high-tech goods and luxuries to EU and U.S., like titanium products, space rockets, oil drilling technologies, super high grade cereal grain, vodka, rod cheese... But at the moment, EU/US economic is in bad shape. Consumption is affected, and Russian business affairs in EU is also affected.

    Russia actually makes use of the sanction to give up foreign luxurious, and ram up domestic production to replace these products. Russia kicks the **s of EU dairy products. GM ran away from Russia. Russians stopped travelling to Western countries, boost up domestic tourism. Meanwhile, Russia also takes a look at rising BRICS allies like China, India, and started to increase the amount of business affairs with BRICS friends.

    All of that caused temporal disruption in Russian economy and lead to a temporal decline of GDP. But in long term it will boost the domestic production and capability of Russia.

    In other words, 5% decline this year is the offering for the deceased old friend EU, before Russia turn its eyes to the growing BRICS.

    So far, the calculations is going to be around 3% decline.  I believe it is World Bank, IMF and Moddy's that predict this.  They may not be 100% straight up on nearly anything, but when it comes to giving bad news, they are pretty accurate.

    That said, re-orientating ones economy is always hard, always painful, and quite damaging.  But, it is needed.  Countries survived for hundreds, if not thousands of years through various economic structures and through good and bad times.  That wont change.  But Russia taking the hit now, just means that things will end up getting better in the end sooner than later.  Hopefully (as long as people keep moving forward and continue to believe in themselves and their country).  Russia would have to create domestic demand, and will have to expand itself.  One way is its piss poor soviet infrastructure.  While they have a good railway lines, they need to expand.  Many areas untouched.  Especially north (mining is growing in Russia, so they need more railways up in the northern mining districts).  But of course, the government makes cutbacks, thus such projects wont come to fruitation in years and they create their own stagnation.

    Russia relies too much on exports in terms of looking for growth.  At least right now.  I have a feeling that they are moving to more domestic oriented economy as now Asia is facing major issues too, so they have no one else to turn to, besides themselves and developing nations in Africa and certain parts of Asia.  We will be seeing in the coming decade(s) that what was Russia's traditional economic power, will be changed.  I think it will be more agriculture, heavy industry and services.  Things like oil, gas and mining will continue to be major exporters, and along with certain other goods.  But wont be dominant since majority of the other countries in the world are trying to domesticate production of their own, and that will lead to further issues in the future for exporters of heavy equipment (China included).  So it would be in Russia's best interest, and the major companies, to start opening up parts production in other, growing countries, to be able to secure a position in those other countries.  But, due to old soviet mindset, many of these businesses don't do that with some recent exceptions (rostselsmash and Avtovaz in Egypt).

    Austin
    Colonel
    Colonel

    Posts : 5683
    Points : 6089
    Join date : 2010-05-08
    Age : 40
    Location : India

    Re: Russian Economy General News: #5

    Post  Austin on Wed Aug 19, 2015 9:07 am


    Austin
    Colonel
    Colonel

    Posts : 5683
    Points : 6089
    Join date : 2010-05-08
    Age : 40
    Location : India

    Re: Russian Economy General News: #5

    Post  Austin on Wed Aug 19, 2015 11:48 am

    The Kremlin recognized the impossibility of supporting the ruble
    http://lenta.ru/news/2015/08/17/ruble/

    The current volume of foreign exchange reserves Russia does not allow to maintain the ruble exchange rate, the only lever of influence remains the key rate of the Central Bank. On this, as reported by RIA Novosti , he said on Monday, August 17, the Russian presidential aide Andrei Belousov.

    Currently, reminded Belousov, the ruble remains floating. "And now we do not have the foreign exchange reserves or foreign exchange reserves, which we can use to support the ruble in 2013," - he said.

    Assistant to the President explained that the volume of the Central Bank reserves, excluding gold now stands at a little over $ 300 billion. "But of the $ 300 billion more than 120 billion accounted for stocks of government - it is the Reserve Fund and National Welfare Fund, which is stored in the form of currency", - said Belousov.

    The rest of the reserves will last for nine months of merchandise imports, which, according to Belousov, is considered the minimum bar. "So when [the head of the Central Bank of Elvira] Nabiullina said that the Central Bank will replenish the reserves - it was justifiable claims related to their condition, which can evaluate any investor," - he added.

    Beloussov also expressed the view that the key rate of the Central Bank of the Russian Federation, which now amounts to 11 per cent in the medium term may be close to the inflation target of 4 per cent, but in the case of another fall in oil prices such a scenario is unlikely. At the same time he found it difficult to name another term reduction of the key rate: "As soon as that happens, with some variations - we can not say today."


    Last edited by Austin on Wed Aug 19, 2015 11:53 am; edited 1 time in total

    Austin
    Colonel
    Colonel

    Posts : 5683
    Points : 6089
    Join date : 2010-05-08
    Age : 40
    Location : India

    Re: Russian Economy General News: #5

    Post  Austin on Wed Aug 19, 2015 11:51 am

    It seems out of ~ $ 350 billion dollar reserves , $50 billion is in Gold

    $120 billion is National Welfare and Reserve Fund

    So essentially CBR has $230 billion in Reserves to defend the Rouble and Import

    I always thought NWF and RF fund were seperate from Forex figure that CBR puts up , now this makes it clear

    Project Canada
    Lieutenant
    Lieutenant

    Posts : 534
    Points : 543
    Join date : 2015-07-20
    Age : 28
    Location : Canada

    Re: Russian Economy General News: #5

    Post  Project Canada on Wed Aug 19, 2015 12:59 pm


    Russia to prioritize the development of its Far East

    Amid multi-billion dollar energy deals with China and worsening relations with Western countries, Russia is in the midst of attempting a massive reorientation of its foreign policy known as the “pivot to Asia.” Yet the domestic leg of this platform is posing Russian policymakers a tremendous challenge: the development of Russia’s vast Far East, a landmass that is almost as big as the continental United States, but has a population roughly equal to that of Denmark.
    Russian officials fret that if left undeveloped and unprotected, this enormous, region could be swallowed up by an influx of Chinese immigrants and capital. The Russian Far East, with only 6 million inhabitants, shares a long border with China’s Heilongjiang province, which has a population of 40 million.
    As a result, Russian officials have whipped up a plan to spur the region’s development by funneling a targeted 3.5 trillion rubles ($53 billion) to the Far East, with a goal to bring in 80 percent of that figure from private investors and companies through specially-targeted incentives.
    The policy, ultimately, must be a balancing act for Russia: to use the Far East’s proximity to rising Asian markets as a means of attracting investors, while not allowing the region to be overrun by the expanding power of Pacific-Rim nations.
    “Financial flows are gradually moving away from the EU and the United States and closer to the Asia-Pacific, since this region has all the required resources with next to no administrative barriers and is developing stronger trade ties with Russia, which is of immense importance for the domestic investors,” said Anton Soroko, an analyst with Moscow’s Finam investment company.
    Dmitry Bedenkov, chief analyst at Russ-Invest investment company, characterized the Russian development plan as both aggressive and achievable.
    “Such ambitious plans of attracting private investment seem justified, given the serious prospects the region shows,” Bedenkov said.
    The government aims to raise 64 billion rubles ($977 million) of investment in 2015, and 243 billion rubles ($3.71 billion) by 2016.


    - http://asia.rbth.com/business/2015/08/19/russia_to_prioritize_the_development_of_its_far_east_48583.html)

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Wed Aug 19, 2015 2:51 pm

    Austin wrote:It seems out of ~ $ 350 billion dollar reserves , $50 billion is in Gold

    $120 billion is National Welfare and Reserve Fund

    So essentially CBR has $230 billion in Reserves to defend the Rouble and Import

    I always thought NWF and RF fund were seperate from Forex figure that CBR puts up , now this makes it clear

    That is what I thought too.

    Anyway, I am kinda ho hum about it. Since rouble is free floating (supposed to be), they shouldnt be defending it. But as some people said on RIA,ru's comment section, they need to get off of USD as a reserve currency and that they should purchase roubles (as that once they sell USD to purchase tons of roubles, the roubles value would increase, thus they can purchase other currencies again to "earn" more. Becomes a gamble though).

    The purpose of the reserve fund should be for pure investment purposes. Use it to invest in key infrastructure and industries they know that there will be returns on. Agriculture as example. Plastics is another one, etc etc. Rather than sitting on it.

    While they did deplete a good $150B of the reserve funds at beginning of crisis before floating rouble, they still have one of the biggest reserve funds in the world. No point of having it if you cannot use it. But they may be seeing it as a method of last resort. While they will hold it, they may be looking to increase it again (which they done off and on) through more gold purchases. Recently I read that they purchased more US bonds, something like $75B worth. I think it was a stupid move since USD is predicted to crash in sept when US increase interest rates.

    Austin
    Colonel
    Colonel

    Posts : 5683
    Points : 6089
    Join date : 2010-05-08
    Age : 40
    Location : India

    Re: Russian Economy General News: #5

    Post  Austin on Wed Aug 19, 2015 5:01 pm

    So like the president aid said in future any rouble weakening would only be addressed with increase interest rates as they dont have USD to defend it

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Wed Aug 19, 2015 5:04 pm

    Austin wrote:So like the president aid said in future any rouble weakening would only be addressed with increase interest rates as they dont have USD to defend it

    He didnt say increase interest rates, but slowing down to stopping the interest rate drops they are applying.  They can provide tens of billions to finance the rouble but they wont, as they are holding onto this reserves for something else (dont know). But the interest rates will still drop as it has been evident to being one of the leading causes to the economic decline while currency valuation hasnt played as much as a key roll.

    If you can quote where he said they would raise it, please do so. Cause I have sources (one that George added here) that says otherwise.

    Essentially, they are going to let the rouble drop. At least till they replenish the reserves.

    Then there is this: http://tass.ru/en/economy/815026

    They could sell it off to pay for lots but they wont. Silly CBR.

    kvs
    Colonel
    Colonel

    Posts : 2545
    Points : 2678
    Join date : 2014-09-11
    Location : Canuckistan

    Re: Russian Economy General News: #5

    Post  kvs on Wed Aug 19, 2015 11:58 pm

    The exchange rate of the ruble is retarded and here is why:

    1) Suppose a country exports nothing but has a vibrant GDP. Does the exchange rate for its currency become zero?

    2) Of course (1) is ridiculous. Next comes the proxy metric of economic dependence: the assumption for Russia is that
    the 40% of federal tax revenues reflect a 40+% dependence of Russia's GDP on oil and gas exports.

    3) (2) is ludicrous since oil and gas account for 13% of Russia's GDP. How can the ruble forex rate be set by 13%
    of Russia's GDP. Seriously, this is demented. It is made purely insane by the fact that it is a choice of the
    Russian government to tax oil and gas exports and not personal incomes. Clearly, Russia could reduce the tax revenue
    footprint of oil and gas to 13% by shifting the tax burden onto the 87% of the rest of the economy. Would the
    forex speculators then value the ruble more because only 13% of federal tax revenues depended on oil and gas?


    At least this distorted market is acting in Russia's favour. It is artificially devaluing Russia's currency without a cent
    of CBR intervention and thereby establish a nice import barrier wall that does not require inefficient tariffs and
    enforcement to stop contraband.

    kvs
    Colonel
    Colonel

    Posts : 2545
    Points : 2678
    Join date : 2014-09-11
    Location : Canuckistan

    Re: Russian Economy General News: #5

    Post  kvs on Thu Aug 20, 2015 12:02 am

    http://russia-insider.com/en/business/russias-second-quarter-contraction-no-big-deal/ri9267

    A nice article summing up the dynamics of the current recession in Russia. It hits on the point I have been making, that
    the inflation spike was really short lived (it actually returned to normal by the end of March). This will be a very short
    lived recession and the 3rd quarter should see a rebound.

    KoTeMoRe
    Colonel
    Colonel

    Posts : 3599
    Points : 3634
    Join date : 2015-04-21
    Location : Krankhaus Central.

    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Thu Aug 20, 2015 12:27 am

    kvs wrote:The exchange rate of the ruble is retarded and here is why:

    1) Suppose a country exports nothing but has a vibrant GDP.   Does the exchange rate for its currency become zero?

    2) Of course (1) is ridiculous.  Next comes the proxy metric of economic dependence: the assumption for Russia is that
    the 40% of federal tax revenues reflect a 40+% dependence of Russia's GDP on oil and gas exports.

    3) (2) is ludicrous since oil and gas account for 13% of Russia's GDP.   How can the ruble forex rate be set by 13%
    of Russia's GDP.   Seriously, this is demented.   It is made purely insane by the fact that it is a choice of the
    Russian government to tax oil and gas exports and not personal incomes.   Clearly, Russia could reduce the tax revenue
    footprint of oil and gas to 13% by shifting the tax burden onto the 87% of the rest of the economy.   Would the
    forex speculators then value the ruble more because only 13% of federal tax revenues depended on oil and gas?


    At least this distorted market is acting in Russia's favour.  It is artificially devaluing Russia's currency without a cent
    of CBR intervention and thereby establish a nice import barrier wall that does not require inefficient tariffs and
    enforcement to stop contraband.


    A last catch. The low taxation of oil and gas comes as a form of social peace with the Russian Wealthy. Low corporate tax allows for a control of Natural ressources. So while the State has enough cash, the thiev...businessmen can have their own slice of salo.

    Russian taxation for Business is relatively low (20% on income/30% of actual SS taken at the source) so there is a point there. However, that would be burdening the economy without actually improving it. By 2019 there will be a hike, according to Russian sources.

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Thu Aug 20, 2015 12:50 am

    I didnt read about the business tax hike but potential hike in 2019 of the flat tax rate from 14% to higher (didnt specify).

    If anyone has the figures at hand, what is Russias business tax compared to other countries?

    KoTeMoRe
    Colonel
    Colonel

    Posts : 3599
    Points : 3634
    Join date : 2015-04-21
    Location : Krankhaus Central.

    Re: Russian Economy General News: #5

    Post  KoTeMoRe on Thu Aug 20, 2015 1:03 am

    sepheronx wrote:I didnt read about the business tax hike but potential hike in 2019 of the flat tax rate from 14% to higher (didnt specify).

    If anyone has the figures at hand, what is Russias business tax compared to other countries?

    Among the lowest in the OECD. Only Switzerland is lower at 18%.

    Edit: I wasn't far 17.92% for Switzerland. http://www.tradingeconomics.com/russia/corporate-tax-rate

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Thu Aug 20, 2015 2:01 am

    First of Engels locomotive was named "Prince Vladimir"

    I say this was a bad investment. Oh well, if Bombardier loses money (again like they always seem to do), I don't feel so bad. Problem is, there are already two major plants in Russia that produces similar locomotives and they are already having issues with reduced purchases so having this one on top of it isn't useful. Added, Yakunin stated that he refuses to buy these ones and will only buy the Russian ones.

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Thu Aug 20, 2015 2:35 am

    Russian retailer Magnit joins Forbes World’s Most Innovative Companies rating

    I am more of a fan of smaller companies and co-ops, but this is at least good news for a Russian company. Even though Forbes flip flops like other in their news (well, maybe add Bloomberg to that news too).

    Russia's import substitution process will take 3-4 years — deputy PM

    Whoever though otherwise is simply ignorant.

    Russian GDP down 3.4% in first half of 2015 — report

    As much as it sucks that this is happening, it was bound to happen. I must admit though, Sanctions mixed with low oil prices, it really is impressive that they are doing much better than they did in 2009 with simply low oil prices. But read this article:
    http://www.marketwatch.com/story/russias-economy-contracts-79-in-2009-2010-02-01

    Does anyone notice very similarities in this old article and now? Predictions were all the same, and yet, here we are. What makes it even more funny, is that at the time this happened, Russia's GDP was a lot less than it is now, even after this collapse. So it really has proven its resilliance.

    That said, most are still keeping the predictions of a total of about 2.8 - 3% drop. In this case, it makes sense as Q2 and Q1 so far only equated the 3.4%. So we will see what happens in Q3 and Q4, as now that interest rates are much lower than before (6% lower) and now domestic consumption is apparently higher than before (as well as industrial output in July was higher than Junes, which was larger than May). So we are seeing some slow growths, but it will take time till Russia "recovers" from this. But once it does, it will be far stronger, as it will be far less reliant on not only oil and gas, but also on foreign bankings. Might I add too, lot less debt ridden too.

    higurashihougi
    Colonel
    Colonel

    Posts : 2130
    Points : 2245
    Join date : 2014-08-13
    Location : A small and cutie S-shaped land.

    Re: Russian Economy General News: #5

    Post  higurashihougi on Thu Aug 20, 2015 3:30 pm

    Now THAT is what we should call as "sanction"

    http://sputniknews.com/business/20150820/1025965325.html

    Latvian GDP Could Contract by 1.7% Due to Russian Coal Transit Termination. In a worst case scenario, should the suspension continue indefinitely, some 75,000 Latvian workers could become unemployed, according to the study.

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Thu Aug 20, 2015 11:32 pm

    Production volume of Russian tractors increased by 85%
    The good thing with import substitution in terms of agriculture is that it also increase the demand for heavy machinery (and engineering) in the agricultural industry as well. It isn't just the farmers making money. Now tractor companies are making money.

    Innovative led lighting for greenhouses Russian production
    See. Another one.

    Lyudinovo the plant started serial production of the new diesel locomotives for the Far East
    Good to know they are still building and acquiring more locomotives. This one is for the far east. Which we all know is in very much need of infrastructure investments and development. So this is the right step, as railway is a much cheaper form of transportation.

    UAZ has announced the start of sales of the updated Patriot SUV
    Apparently UAZ has increased the number of sold vehicles in the Russian market. Increasing their market share. Wish I could purchase one here. I would purchase the diesel model.

    Import substitution: a unique Ural equipment supplied West-Siberian metallurgical plant
    Now it will be a domestic company making that money. Since Russian Railways spends billions a year on equipment, I would wager that such a move to buy local will definitely help big time over long run.

    In the Kaluga region opened a new sawmill and woodworking complex
    In Canada, the logging industry, specifically in just raw wood sales and planks, generate billions a year and is one of the largest economic developers next to oil/gas, and automotive sales for Canadian GDP (and largest for British Columbia). So such moves are always good. Especially since China is a huge consumer of wood. With having a processing plant too, they can make even more money with sale of planks and even furniture. Huge market. Russia also has a program of reforestation after cutting down a tree.

    In Ufa in test mode started woodworking plant "Kronospan"
    Hmm. Another!

    In the Rostov region have earned the new mini-factories for milk processing
    Seems mini factories for milk processing is a growing trend in Russia. Probably to be able to keep investments small, but still churning out a good product. Problem with larger companies is they tend to become over bloated, especially when they take over other companies.

    The Arabs gave "good" to Bryansk beef
    Now Russia is exporting beef!

    Vann7
    Colonel
    Colonel

    Posts : 3237
    Points : 3361
    Join date : 2012-05-16

    Re: Russian Economy General News: #5

    Post  Vann7 on Fri Aug 21, 2015 1:21 am

    higurashihougi wrote:Now THAT is what we should call as "sanction"

    http://sputniknews.com/business/20150820/1025965325.html

    Latvian GDP Could Contract by 1.7% Due to Russian Coal Transit Termination. In a worst case scenario, should the suspension continue indefinitely, some 75,000 Latvian workers could become unemployed, according to the study.

    Indeed.. this is what i call sanctions .. Laughing


    Holy shit 75,000 latvian workers is serious business... and the funny thing here is that
    Russia can easily implement them ,and will not affect its economy at all ,since this is a favor
    Russia give to Latvia..that will stop doing.. for them supporting Sanctions on Russia.

    Im sure if this happens Latvia which have a very small economy ,will collapse even before Ukraine.. and a major revolution in Latvia happen to overthrow any leader supporting Economic
    Sanctions in Russia.. But you never know how fanatic they could be.. that prefer to be jobless
    than oppose US policies against RUssia. This will also affect other baltic states.. because it will damage trade with Latvia if their economy collapse and affect their own economies..

    Interesting indeed. Cool

    If RUssia also block the air transit of Europe to Asia through Russia airspace this will be a major blow to their airlines ,since will force them to take much longer routes and increase much more the prices of plane tickets.. making European Airliners to Asia/JApan less competitive . Cool





    PapaDragon
    Colonel
    Colonel

    Posts : 3685
    Points : 3797
    Join date : 2015-04-26
    Location : Fort Evil, Serbia

    Re: Russian Economy General News: #5

    Post  PapaDragon on Fri Aug 21, 2015 1:30 am

    higurashihougi wrote:Now THAT is what we should call as "sanction"

    http://sputniknews.com/business/20150820/1025965325.html

    Latvian GDP Could Contract by 1.7% Due to Russian Coal Transit Termination. In a worst case scenario, should the suspension continue indefinitely, some 75,000 Latvian workers could become unemployed, according to the study.

    Holy cow!!!  pale

    75000 is a lot even for very large country. Latvia has less population than Belgrade. This will not be enjoyable...

    kvs
    Colonel
    Colonel

    Posts : 2545
    Points : 2678
    Join date : 2014-09-11
    Location : Canuckistan

    Re: Russian Economy General News: #5

    Post  kvs on Fri Aug 21, 2015 2:19 am

    PapaDragon wrote:
    higurashihougi wrote:Now THAT is what we should call as "sanction"

    http://sputniknews.com/business/20150820/1025965325.html

    Latvian GDP Could Contract by 1.7% Due to Russian Coal Transit Termination. In a worst case scenario, should the suspension continue indefinitely, some 75,000 Latvian workers could become unemployed, according to the study.

    Holy cow!!!   pale

    75000 is a lot even for very large country. Latvia has less population than Belgrade. This will not be enjoyable...

    What did these clowns expect. That Russia would eat their shit?

    "Serves them right!"

    sepheronx
    Colonel
    Colonel

    Posts : 7302
    Points : 7612
    Join date : 2009-08-06
    Age : 27
    Location : Canada

    Re: Russian Economy General News: #5

    Post  sepheronx on Fri Aug 21, 2015 3:28 am

    kvs wrote:
    PapaDragon wrote:
    higurashihougi wrote:Now THAT is what we should call as "sanction"

    http://sputniknews.com/business/20150820/1025965325.html

    Latvian GDP Could Contract by 1.7% Due to Russian Coal Transit Termination. In a worst case scenario, should the suspension continue indefinitely, some 75,000 Latvian workers could become unemployed, according to the study.

    Holy cow!!!   pale

    75000 is a lot even for very large country. Latvia has less population than Belgrade. This will not be enjoyable...

    What did these clowns expect.   That Russia would eat their shit?

    "Serves them right!"

    I will imagine that they will revolt unless they are outright paid to sit. Then again, they could transport it via cargo. So I imagine there would be someone that would purchase it just for the sake of keeping Latvians in place.

    Sponsored content

    Re: Russian Economy General News: #5

    Post  Sponsored content Today at 9:00 am


      Current date/time is Sun Dec 11, 2016 9:00 am