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    Russian Economy General News: #7

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    A Different Voice
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    Re: Russian Economy General News: #7

    Post  A Different Voice on Sat Feb 06, 2016 8:34 pm

    Saw this post on Sputnik News and was a bit confused about what Medvedev was saying in it.

    10% cut in gov. salaries for 2016

    Is he saying all federal employees got a 10% salary cut in 2015 and that they will get another 10%  cut in 2016?  I assume what is meant is that these cuts will only apply to relatively high level federal government employees and not all federal  employees.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Sat Feb 06, 2016 9:05 pm

    A Different Voice wrote:Saw this post on Sputnik News and was a bit confused about what Medvedev was saying in it.

    10% cut in gov. salaries for 2016

    Is he saying all federal employees got a 10% salary cut in 2015 and that they will get another 10%  cut in 2016?  I assume what is meant is that these cuts will only apply to relatively high level federal government employees and not all federal  employees.

    Thank god. Back in the day, federal/state employees were not supposed to make this ridiculous amount of money as they were the "people's people". But now they make so much money per year, that all other options for a job is not considered good or livable.

    Good news. Will salve a lot of money, as there are a lot of "politicians" in the country (especially after making it easier to start a political party).

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    Re: Russian Economy General News: #7

    Post  kvs on Sun Feb 07, 2016 8:42 pm

    http://www.euractiv.com/sections/europes-east/europes-other-russia-problem-321638

    Next time that Kudrin yaps about something reference the above spew. He is making up all sorts of stories
    about massive state pressure on companies without citing any real examples. His job is to act as a believable
    source for anti-Russian propaganda.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Sun Feb 07, 2016 8:53 pm

    So where did they get this 3% drop this year? Worst we heard was 1%.

    Regardless, the article brings very little to the table.  Statistically, I believe it was mentiomed on sdelanounas that out of 4mil new business in 2014, about half of them survived (due to competition and lack of funds from bad loans or no loans).  That would indicate a total of 2mil new small companies started in Russia in 2014.  I cant find data for last year but I assume it is same.  That would indicate real competition.

    And here is another point, many industries were illegally acquired back in the 90's.  So corporate raiding, a lot of it will have to do with government taking back what is theirs and not owned by a foreign agency.  Nof saying that there malpractice, as it exists everywhere, but due to using one anecdotal evidence with a bit of smearing a name (while providing no evidence) doesnt do the article justice and just comes off as poorly written.  Kudrin of course will try to make a name for himself through unscrupulous groups of course.

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    Re: Russian Economy General News: #7

    Post  kvs on Sun Feb 07, 2016 9:03 pm

    sepheronx wrote:So where did they get this 3% drop this year? Worst we heard was 1%.

    Regardless, the article brings very little to the table.  Statistically, I believe it was mentiomed on sdelanounas that out of 4mil new business in 2014, about half of them survived (due to competition and lack of funds from bad loans or no loans).  That would indicate a total of 2mil new small companies started in Russia in 2014.  I cant find data for last year but I assume it is same.  That would indicate real competition.

    And here is another point, many industries were illegally acquired back in the 90's.  So corporate raiding, a lot of it will have to do with government taking back what is theirs and not owned by a foreign agency.  Nof saying that there malpractice, as it exists everywhere, but due to using one anecdotal evidence with a bit of smearing a name (while providing no evidence) doesnt do the article justice and just comes off as poorly written.  Kudrin of course will try to make a name for himself through unscrupulous groups of course.

    Propaganda relies on ignorance. Most people have no idea about the dynamics of company birth and death. Zero. So
    professional liars pull out some numbers and insinuate that there is something horribly wrong with Russia's economy.
    Even some very simple analysis will tell you that millions of new companies cannot form every year and all of them
    surviving. In a rather short period of time there would be thousands of companies selling the same type of products.
    This is not a viable economic state. There is actually a rather small number of "spaces" for companies to occupy
    in any given market. This is due to factors such as the need to have enough profits and the fact that consumers
    settle down on a few choices (like they do in politics).

    In the last 26 years there has been no case of the Russian government extorting a business from some owner either
    on behalf of another interested party or for itself. That was the mode of operation during the roaring era of
    "true" democracy under Yeltsin and in Ukraine this is routine to this day. Kudrin is a blood libeler and really deserves
    a cap in the head. I wouldn't be surprised if his handlers didn't use him like Litvinenko in the near future.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Sun Feb 07, 2016 9:12 pm

    Agreed.  But the point is that this news piece isnt for Russians but english speakers as a way to try and divert their attention away from their own mess and towards Russia - keep the mass at bay kinda thing.  That is evident by the title used.  CBR predicts about 1% gdp decline at low oil prices at $30/bbl.

    On another token, I am generally against the privatization of the various state run companies.  I am not even 100% sure if they will give up all stocks or just resort having lower stocks than 50%+1 share?  I think if the company has value to it but greatly underperforming, sure, sell it to someone who may do better.  But Aeroflot? No... just no.  It will make things worst as new owner may simply not purchase any SSJ and wont support domestic cause he/she can easily be bought out.  As well, the short term gain will be easily gone by next year and that means far less money into budget.


    Last edited by sepheronx on Sun Feb 07, 2016 9:23 pm; edited 1 time in total

    kvs
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    Re: Russian Economy General News: #7

    Post  kvs on Sun Feb 07, 2016 9:23 pm

    sepheronx wrote:Agreed.

    On another token, I am generally against the privatization of the various state run companies.  I am not even 100% sure if they will give up all stocks or just resort having lower stocks than 50%+1 share?  I think if the company has value to it but greatly underperforming, sure, sell it to someone who may do better.  But Aeroflot? No... just no.  It will make things worst as new owner may simply not purchase any SSJ and wont support domestic cause he/she can easily be bought out.  As well, the short term gain will be easily gone by next year and that means far less money into budget.

    The only reason that the state should unload companies is if they are money sinks. Aeroflot is not bleeding red ink.

    We have the same BS here in Ontario. There are never ending calls to privatize the LLCBO, the provincial monopolist
    liquor retailer. But the LLCBO is one of the biggest sources of revenues for the provincial government. And the LLCBO
    does a good job. There is zero reason to privatize it.

    I meant 16 years in my last post not 26. Putin cleaned up the Russian government after he took office. All the barking
    about "his" corruption is grotesque.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Sun Feb 07, 2016 9:52 pm

    kvs wrote:
    sepheronx wrote:Agreed.

    On another token, I am generally against the privatization of the various state run companies.  I am not even 100% sure if they will give up all stocks or just resort having lower stocks than 50%+1 share?  I think if the company has value to it but greatly underperforming, sure, sell it to someone who may do better.  But Aeroflot? No... just no.  It will make things worst as new owner may simply not purchase any SSJ and wont support domestic cause he/she can easily be bought out.  As well, the short term gain will be easily gone by next year and that means far less money into budget.

    The only reason that the state should unload companies is if they are money sinks.  Aeroflot is not bleeding red ink.

    We have the same BS here in Ontario.   There are never ending calls to privatize the LLCBO, the provincial monopolist
    liquor retailer.   But the LLCBO is one of the biggest sources of revenues for the provincial government.   And the LLCBO
    does a good job.   There is zero reason to privatize it.

    I meant 16 years in my last post not 26.   Putin cleaned up the Russian government after he took office.   All the barking
    about "his" corruption is grotesque.  
    Well, its all unfounded of course.  Reason why privatization of aeroflot is dangerous is for lots of reasons.  But if the government does privatize it to concentrate on building up another airliner, then I am OK with that.  But that is the problem, they will lose a ton of revenue from it.  And sadly enough, even Kudrin said the same thing (broken clock can be right twice a day).

    Though it isnt final yet.  So we will see.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Sun Feb 07, 2016 10:04 pm

    http://m.ria.ru/economy/20160207/1371063470.html?rubric=economy

    Pretty much gives a better idea on he privatization plans.  So they will still hold major stakes but sell a few to gain investment interest as well as additional revenue.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Mon Feb 08, 2016 6:56 am

    Anyone and KVS: 

    Finance Ministry proposes to halve the deduction for severance tax on oil

    I am not sure about what is being mentioned? Halving it, wont it effect budget negatively due to less money from oil companies? Or what am I missing from this?

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    Re: Russian Economy General News: #7

    Post  Militarov on Tue Feb 09, 2016 12:50 am



    So apparently Russia and Serbia are 2nd and 3rd on Misery index Smile



    And then worlds most miserable economies put Serbia on spot 7, Russia spot 14.

    Sources:

    http://www.cato.org/publications/commentary/economic-headwinds-big-players-regime-uncertainty-misery-index
    http://www.bloomberg.com/news/articles/2016-02-04/these-are-the-world-s-most-miserable-economies

    ---- Reposted it from Serbian news thread, though you guys would like to see it

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    Re: Russian Economy General News: #7

    Post  kvs on Tue Feb 09, 2016 1:18 am

    sepheronx wrote:Anyone and KVS: 

    Finance Ministry proposes to halve the deduction for severance tax on oil

    I am not sure about what is being mentioned? Halving it, wont it effect budget negatively due to less money from oil companies? Or what am I missing from this?

    They are talking about a tax discount that was balanced for the old, high oil prices. This is a measure to get more tax income and a very good
    one since corporate welfare is a world wide phenomenon.

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    Re: Russian Economy General News: #7

    Post  kvs on Tue Feb 09, 2016 1:21 am

    Militarov wrote:

    So apparently Russia and Serbia are 2nd and 3rd on Misery index Smile

    Freaking joke.  Look at the position of Moldova in 2014.   These indices are shitballs scraped out of the asses of the people that produced them.

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    Re: Russian Economy General News: #7

    Post  A Different Voice on Tue Feb 09, 2016 3:16 am

    kvs wrote:
    sepheronx wrote:Anyone and KVS: 

    Finance Ministry proposes to halve the deduction for severance tax on oil

    I am not sure about what is being mentioned? Halving it, wont it effect budget negatively due to less money from oil companies? Or what am I missing from this?

    They are talking about a tax discount that was balanced for the old, high oil prices.   This is a measure to get more tax income and a very good
    one since corporate welfare is a world wide phenomenon.

    The corporate welfare to oil/gas companies in Russia is somewhat mitigated by the government's relatively large ownership stakes in the companies that produce and refine the bulk of its hydrocarbons. To some degree, the dividends paid to the government by these companies will decrease while taxes they pay will increase. However, the increased tax revenue  should significantly outweigh the decreased dividends. The tax change will however act as a disincentive to open new fields; especially for the independent companies.

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    Re: Russian Economy General News: #7

    Post  kvs on Tue Feb 09, 2016 5:45 am

    http://michael-hudson.com/2016/02/the-atlanticist-tactic-revisited/

    Two years ago, Russian officials discussed plans to privatize a group of national enterprises headed by the oil producer Rosneft, the VTB Bank, Aeroflot, and Russian Railways. The stated objective was to streamline management of these companies, and also to induce oligarchs to begin bringing their two decades of capital flight back to invest in the Russia economy. Foreign participation was sought in cases where Western technology transfer and management techniques would be likely to help the economy.

    However, the Russian economic outlook deteriorated as the United States pushed Western governments to impose economic sanctions against Russia and oil prices declined. This has made the Russian economy less attractive to foreign investors. So sale of these companies will bring much lower prices today than would have been likely in 2014.

    Meanwhile, the combination of a rising domestic budget deficit and balance-of-payments deficit has given Russian advocates of privatization an argument to press ahead with the sell-offs. The flaw in their logic is their neoliberal assumption that Russia cannot simply monetize its deficit, but needs to survive by selling off more major assets. We warn against Russia being so gullible as to accept this dangerous neoliberal argument. Privatization will not help re-industrialize Russia’s economy, but will aggravate its turn into a rentier economy from which profits are extracted for the benefit of foreign owners.

    Russia needs to stop emulating BS western theories and look at what the west actually does into terms of finances.

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    Re: Russian Economy General News: #7

    Post  Austin on Tue Feb 09, 2016 6:19 am

    Agree this is not the right time to privatise the asset when the market is on the low and sanctions still there , they will get a lower price for it.

    But when the market is on high no one thinks of privatising either.

    May be they can just sell some part to Russian Private Industrialist.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Tue Feb 09, 2016 7:04 am

    The plan is that the people to purchase it will be the current Russian billionairs that will use their offshore wealth to purchase it, on agreements to keep the money internal.

    The other thing I learned today, as example of the rosneft sale, is that the "privatization" part isnt actually selling all assets to one person but instead selling 19.5% of shares to anyone interested.  Currently, government hold 69.5% of shares.  So what Rus gov will be left with is 50% +1 share making them still dominant holder. And purpose of this is to prevent what happened in the 90's when major stake was sold to an individual and then assets stripped and sold abroad. 

    http://m.ria.ru/economy/20160209/1371619285.html?rubric=economy

    This is essentually to happen with all government assets being pushed.  General idea is that they will bring in investments and then as well bring in revenue for budget.  As I posted earlier, they stated they will still hold majority of shares to keep the business inside the country. And the idea to privatize to domestic oligarches is to keep the money inside the country as well.  Only two I am concerned about is aeroflot and railways as I am not sure how much Rus gov has in those two in ownership in stocks.

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    Re: Russian Economy General News: #7

    Post  Austin on Tue Feb 09, 2016 12:53 pm

    NYT Propagandist Says Russian Banks Not Falling Because Russians Are Dumb, What's the Real Reason?

    http://russia-insider.com/en/business/nyt-propagandist-says-russian-banks-not-falling-because-russians-are-dumb-whats-real-reason

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    Re: Russian Economy General News: #7

    Post  Austin on Tue Feb 09, 2016 12:58 pm

    How the Sanctions Are Preparing the Ground for the Next Russian Economic Boom

    http://russia-insider.com/en/business/how-sanctions-are-preparing-ground-russia-boom/ri12690

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    Re: Russian Economy General News: #7

    Post  Vann7 on Tue Feb 09, 2016 1:26 pm

    sepheronx wrote:
    A Different Voice wrote:Saw this post on Sputnik News and was a bit confused about what Medvedev was saying in it.

    10% cut in gov. salaries for 2016

    Is he saying all federal employees got a 10% salary cut in 2015 and that they will get another 10%  cut in 2016?  I assume what is meant is that these cuts will only apply to relatively high level federal government employees and not all federal  employees.

    Thank god.  Back in the day, federal/state employees were not supposed to make this ridiculous amount of money as they were the "people's people".  But now they make so much money per year, that all other options for a job is not considered good or livable.

    Good news.  Will salve a lot of money, as there are a lot of "politicians" in the country (especially after making it easier to start a political party).

    If it was by me.. i will have cut all Government exployees salaries by 50% to all duma parliament and Governors and President and cut the parties ans freebies completely unless
    it is really important activity. With saved from Government salaries invested back that money
    to Aid people who lost their jobs. in fact Putin should even donate 100% of his salary until the crisis end .. create like a contest to encourage Russians without a job ,to participate in free
    Community services programs ,where they work for free too.  to paint the city and clean the streets.. paint schools ,or work for free few hours a day in government agencies( to encourage love for the nation) and that every month the 100 best people will be selected to receive a paycheck for their work.. Just $1,000 check every month  ,will be enough to keep the poorest family going for 3 months easily.  Then another contest to reward with a lot more money,
    lets say $10,000 for the family who takes a land and develop it and can produce a 100% independent self efficient intelligent farm. Where the water and electricity comes from the nature.

    when you move back a little ,from distance and observe what makes people to need money
    and to work for others.. is because they do not have a piece of land where to build property ,
    and they don't know how to build a house. But if Russia provide a free land..that have a LOT to give..and teach people how to build their houses ,give away wood for free ,that also Russia have
    in unlimited quantities.  Then effectively Modern Families if they had the Knowledge how to build self sufficient farm ,and the food came from land too. and electricity from the wind or others forces of nature ,then Russians will be fully indepdent from the Government. Transportation
    can also be provided by Russia if the house are build near major Roads.

    There are already communities in Russia that do not operate with money. and have created
    a model of living that works without money and people live of the land.


    take a look seph.. ignore the religious part and only notice
    that fully Independent communities that live from the nature can
    be created in Russia.



    Even the leader of the organization told ,Russia have the ideal conditions and politics harmony,
    for communities to live from Nature. If in US you try to take water for free from any federal conservation park ,you will be fined or arrested. and people arrested or shot to death if dare to live in nature.

    Those are religious communities but it could work without religion too ,the point is ,that technically speaking ,it have been proven that young families can live without money in communites, Education is provided by parents or friendsand only need help with government to go to major studies at University. Internet could be provided by Russia for free ,and education can be done online saving a lot of money to people in CLothing and books and transportation . healtcare already is free in Russia. Land can be given for free ,Russia have an entire continent largely empty ,that could allow to give every Russian citizen a free land. what others things money is used? transportation , Russia can provide it too , i really think Russia is the perfect nation to create a real revolution on its economy , where money is not needed as much and mostly need to trade with other nations. which can also be done without currency use.  Such a system cannot be manipulated or controlled by western banking .
    In argentina a system of trade without money is also popular . this is because always there is people that don't need something they have..and another could use it.

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    Re: Russian Economy General News: #7

    Post  zg18 on Tue Feb 09, 2016 2:23 pm

    Russian CB reserves recovery since may 2015


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    Re: Russian Economy General News: #7

    Post  Viktor on Tue Feb 09, 2016 5:52 pm

    Nice thumbsup

    Gold production in Russia increased in 2015 to 294 tonnes

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    Re: Russian Economy General News: #7

    Post  kvs on Tue Feb 09, 2016 11:38 pm

    Austin wrote:NYT Propagandist Says Russian Banks Not Falling Because Russians Are Dumb, What's the Real Reason?

    http://russia-insider.com/en/business/nyt-propagandist-says-russian-banks-not-falling-because-russians-are-dumb-whats-real-reason

    Gessen is a psychotic liar and hater. But the author of this piece makes a big error when he talks about the ruble "devaluing" at the same
    time as the dollar exchange increased. This is BS. As far as the Russian GDP is concerned the ruble devalued by the 12.9% inflation
    rate and not its forex drop. The foreign exchange rate and the value of a currency (i.e. how many units it takes to buy a given good
    or service) are unrelated. It is only for banana republics which import nearly 100% of their goods and services that the forex means
    something substantial and that is due to the inflation associated with imports.

    So NYT peddles demented diarrhea these days. How far the western media has fallen.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Wed Feb 10, 2016 12:23 am

    New York times was always bad. Same with Washington post.  Believe it or not but LA times is far more unbiased than most.

    In the end, common sense and basic math trump most of these so called experts.  Remember how some experts predicted Russian GDP to drop 10% in 2015? That was 2014 articles.  In the end, these people make no difference to reality but simply try to pander to those ignorant enough to believe.

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    Re: Russian Economy General News: #7

    Post  sepheronx on Wed Feb 10, 2016 6:30 am

    Medvedev to discuss economic development action plan with gov

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    Re: Russian Economy General News: #7

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