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    Russian Economy General News: #9

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    kvs

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    Re: Russian Economy General News: #9

    Post  kvs on Mon Apr 16, 2018 12:14 am

    GunshipDemocracy wrote:

    Austin wrote:Russia's response to US sanctions affects the atom, aircraft construction and rocket engines

    April 13, 2018, AEX.RU - The draft law on sanctions measures provides for suspension of cooperation with the United States in the nuclear, aircraft and rocket-propulsion industries, said the first vice speaker of the State Duma Ivan Melnikov. This is written by RIA Novosti .

    "It's about stopping or suspending international cooperation of the Russian Federation, Russian legal entities with the United States and organizations that are under the jurisdiction of the United States, in the nuclear industry, in the aircraft building and rocket industry," Melnikov told reporters on Friday.

    That would be stupidity IMHO. Hurting Russian companies even more then US. Something like closing Russian airspace for US cargo, kicking out big 3 auditor companies, stopping US food import to Russia or stopping any US software -compulsory in state entities and taxed 3x in private ones.  This could work better.

    Your list is kind of a joke. Russia is cutting off in areas where its "partners" contribute nothing in return and cannot reciprocate with similar sanctions.
    Why would Russia cut off overflight access if it did not want to have this affect it as well. NATO occupies a lot of overflight territory so it is best not
    start this particular war. Russia is already controlling food imports from Yankistan and those auditing companies are not worth much.

    So far Russia's low key response to NATO provocations has been ideal and pure genius. NATO leaders were banking on Russia getting angry and
    crazy. Instead they get nothing. Nothing in terms of real impact of their sanctions and no response to their provocations. But Russia makes them
    look like total losers. Russia orchestrated the massive shootdown of NATO cruise missiles over Syria. American generals are left spewing retarded
    lies that they sent 73 missiles to destroy one facility. The world is laughing.

    Svyatoslavich

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    Re: Russian Economy General News: #9

    Post  Svyatoslavich on Mon Apr 16, 2018 2:30 am

    kvs wrote:Russia orchestrated the massive shootdown of NATO cruise missiles over Syria.    American generals are left spewing retarded
    lies that they sent 73 missiles to destroy one facility.    The world is laughing.
    Exactly, and all they managed to achieve with all those missiles against some empty buildings was save the Syrians the work of demolishing that facility:
    "On the subject of Syria’s chemical weapons production facilities (CWPFs), the Secretariat has verified the destruction of 25 of the 27 former CWPFs declared by the Syrian Arab Republic. In November 2017, the Secretariat conducted an initial inspection of the last two stationary above-ground facilities in accordance with paragraph 44 of Part V of the Verification Annex to the Chemical Weapons Convention. The Secretariat, together with the United Nations Office for Project Services, is to conclude a contract in the next couple of weeks with a company that will assist the Syrian Arab Republic in the destruction of the facilities located at these two sites. Destruction work could take another two to three months."
    https://www.opcw.org/fileadmin/OPCW/EC/87/en/ec87dg21_e_.pdf
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    GarryB

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    Re: Russian Economy General News: #9

    Post  GarryB on Mon Apr 16, 2018 3:39 am

    It's either they cooperate with others or shut down the plants because they can't sell to third parties cause third parties get sanctioned if they buy from Rusal. So what's better Garry? Keeping people employed and still able to sell externally but with partners who get a cut, or shutting it down and letting people go?

    Giving up ownership is not a good option for any reason... first of all stop selling any products to countries that impose sanctions of any kind on Russian companies... there are plenty of markets around the world they can sell their products in.... they could create their own shell companies or independent companies to sell their products to that can onsell to western companies to bypass the sanctions... and make a little extra profit.

    The 13% flat income tax in Russia is too low. If Russian citizens want more
    state benefits (e.g. healthcare, etc.) then they need to pay more.

    Start increasing taxes now and it will become an easy option in the future... much better to manage costs than to increase income that way.



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    kvs

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    Re: Russian Economy General News: #9

    Post  kvs on Mon Apr 16, 2018 4:23 am

    GarryB wrote:
    The 13% flat income tax in Russia is too low.   If Russian citizens want more
    state benefits (e.g. healthcare, etc.) then they need to pay more.

    Start increasing taxes now and it will become an easy option in the future... much better to manage costs than to increase income that way.


    If all you have is $1 in you pocket then no amount of belt tightening and balanced budgets will let you buy the $1000 car.
    You need revenue to buy goods and services. The Russian tax imposes a lid on the amount of money the government
    receives every year. If the citizens want more social services, then they have to pay for them. Either directly or through
    the government. Nothing obscure about this fact.

    As for the phobia about deficits. Who says that Russia is just like any NATO state in this regard? You can't use forecasting
    based on the past history of different countries to predict future government policy in Russia.
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Mon Apr 16, 2018 4:58 am

    Internal debt isn't bad. In this case, Russian bonds are rather popular not just outside of Russia, but inside too, thanks to it's low debt overall debt.

    As for Rusal, it appears Rusal stocks are at the lowest it's ever been since it got into the stock market, believe it or not, only 8 years ago (2010).

    Rusal has little options. Sad fact of life is, due to US rather control on world economy, most nations (especially those favorable to Russia) have their economies reliant, especially businesses, on US market, investments, loans, etc. Only nations who would be favorable would be: Iran, North Korea, Zimbabwe, Syria and Venezuela. Because these nations are already sanctioned up the ying yang by the US so they couldn't give a hoot. But only nations out of those that would be able to afford anything of the sort is Iran and Syria. Maybe Venezuela.  In this regard, Iran most probably cause they have money but Syria doesn't. In all, Rusal can set up a company in Syria that will help supply and maybe even refine aluminum in Syria, which their products will grow in massive demand due to rebuilding both military and infrastructure. Venezuela may be also an option in terms of investments and purchases, but Venezuelan economy and industry are in shambles as is right now due to really bad management.

    China won't purchase, neither will Europe or most of Asia because of them having far too much money and cooperation with United States. Already Chinese companies had refused business with Russia cause they didn't want to get sanctioned. So only way they worked around the sanctions was opening up shop in Russia. Same went with EU nations too.  So what can be done? I mean, Rusal can try in the other sanctioned markets. Try to corner their market and get a good share. But in the end, they will probably have to sell off the plants or shut down ones that are producing initially for export, completely.
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    GarryB

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    Re: Russian Economy General News: #9

    Post  GarryB on Mon Apr 16, 2018 5:59 am

    You seem to think the whole world revolves around the US... it does not.

    If the US wants to break the WTO rules by imposing sanctions that is fine... Russia can impose tarriffs on all US products in the Russian market including other products that include US components or companies and use the revenue generated to pay companies effected by US sanctions.

    If that is not enough they can seize US company assets... like Coca Cola bottling factories and nationalise them...

    Kick out all US diplomats and US NGOs from Russia... if they want to impose sanctions then there is nothing to talk about.



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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Mon Apr 16, 2018 7:26 am

    Unfortunately, they managed to gain full control of WTO and international trade. Like it or not. So Rusal and all Russian companies will need to take extra measures and develop plan out of this mess by moving away from US. But that is hard when the rest of the world relies on US. I wish it wasn't true but it is, and hence why so few nations back up Russia over this ordeals. They are afraid of being sanctioned too.

    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Mon Apr 16, 2018 3:25 pm

    Vladimir Gutenev
    FIRST DEPUTY CHAIRMAN OF THE STATE DUMA COMMITTEE ON ECONOMIC POLICY
    APRIL 13, 15:13 THE ECONOMY



    https://m.rns.online/opinions/Kto-bolshe-vseh-postradaet-ot-otvetnih-ekonomicheskih-sanktsii-Rossii-2018-04-13/
    41
    The draft law "On measures of influence (counteraction) against unfriendly actions of the United States of America and (or) other foreign states", which joined the American sanctions against Russia, was submitted to the State Duma . The document implies a ban on the importation of a wide range of goods to Russia and other restrictions.

    The main essence of the bill is that it is a demonstration of our readiness not to wait patiently, when our opponents finally wake up, who call sanctions what actually is actually an economic war in fact, and make Friday, 13, on a real black day for politicians, especially European ones.

    I believe that this bill, of course, will also cause some damage to the levers of influence on the Russian economy by the US, but the main economic blow will fall on those European countries that every time recklessly support the initiatives of Americans and violate all the principles of international law, the WTO. They introduce discriminatory measures, because they can not be called sanctions, since sanctions are taken by the UN decision.


    Against Russia, a full-fledged economic war was unleashed, and I am sure that the damage to European politicians will be huge, as European businesses are already tired of losing Russian markets.

    We understand that import substitution by Russian producers is not a momentary process, therefore, in the majority of deliveries of raw materials, food, agricultural products, alcohol-containing and tobacco products will be replaced by other countries.

    As a result, the US will largely lose its leverage over our economy, and of course, various consulting and other companies will suffer substantial losses due to the curtailment of the work. They earn very substantial money in the Russian market.

    On the other hand, counter-sentiments will become sensitive to the US and because of the termination of cooperation in the areas of space engine building and nuclear industry. We will make it clear that the principle of reciprocity is not only diplomatic, but also economic. I emphasize that the biggest economic losses will be incurred by the European Union, I am sure that not only business, but also European voters will express their position unequivocally at the next elections, which will be held in several European countries this year.

    The provisions of the bill will affect all countries that have joined the American anti-Russian sanctions. And since Ukraine joined a whole number of them with great enthusiasm, I am sure that there will be no exceptions for Ukraine. Moreover, going in the wake of Washington's policy, Ukraine puts itself on the priority place, as a country, against which measures of economic reaction will be undertaken.
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    JohninMK

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    Re: Russian Economy General News: #9

    Post  JohninMK on Mon Apr 16, 2018 9:13 pm

    Today's threatened sanctions go on the back burner, ready to be used if needed. Rouble and Moscow stock market up.

    https://www.zerohedge.com/news/2018-04-16/trump-holds-plan-more-russia-sanctions-russian-stocks-ruble-jump
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    GunshipDemocracy

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    Re: Russian Economy General News: #9

    Post  GunshipDemocracy on Mon Apr 16, 2018 11:29 pm

    kvs wrote:
    So far Russia's low key response to NATO provocations has been ideal and pure genius.   NATO leaders were banking on Russia getting angry and
    crazy.   Instead they get nothing.    Nothing in terms of real impact of their sanctions and no response to their provocations.   But Russia makes them
    look like total losers.    Russia orchestrated the massive shootdown of NATO cruise missiles over Syria.    American generals are left spewing retarded
    lies that they sent 73 missiles to destroy one facility.    The world is laughing.


    Not all world though, 10% of world population (US,Canada,Ausies+EU) are being fed with success stories Smile As for economy you're right answer must be smart. But sanctions will impact money flow from abroad. Especially if clients of Russia will be threatened by US. Thsi is the real challenge to me.


    Slowly but surely

    US Treasury: Russia in February reduced investments in US government bonds to $ 93.8 billion

    According to the department, in January this amount was $ 96.9 billion
    TASS, April 16. Russia in February this year, reduced the amount of investments in securities of the US government to $ 93.8 billion in January this amount was $ 96.9 billion, according to the data released by the US Treasury on Monday.

    According to the information of the department, for the whole of 2017, Russia made the most of all investments in May - $ 108.7 billion.

    At the moment, Russia is on the 16th place among the countries on investments in US government bonds. The first place is occupied by China, which invested $ 1.178 trillion in these assets. In second place is Japan - $ 1.060 trillion. On the third position is Ireland - $ 314 billion.

    Foreign states owned in February 2018 US securities for a total of $ 6.292 trillion, while in February 2017 the same figure was $ 6.013 trillion.
    Подробнее на ТАСС:
    http://tass.ru/ekonomika/5132382
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    GarryB

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    Re: Russian Economy General News: #9

    Post  GarryB on Tue Apr 17, 2018 4:07 am

    Unfortunately, they managed to gain full control of WTO and international trade. Like it or not. So Rusal and all Russian companies will need to take extra measures and develop plan out of this mess by moving away from US. But that is hard when the rest of the world relies on US. I wish it wasn't true but it is, and hence why so few nations back up Russia over this ordeals. They are afraid of being sanctioned too.

    The US only has control where the world lets it have control... and that wont change if Russia keeps being their bitch.

    Time for change.

    Russia should not react to sanctions, they should lead with sanctions against those countries that impose sanctions on Russia... Russia is better off ignoring such countries and looking elsewhere for trade partners... there are plenty. They are not the richest countries in the world but there is plenty of potential.

    Keeping sucking up to the US means they keep control and they stay rich... developing with other countries means Russia cannot be controlled by the west and the countries they trade with wont be held back the way the west is trying to hold back Russia... a win win... for everyone except the west.


    _________________
    “The West won the world not by the superiority of its ideas or values or religion […] but rather by its superiority in applying organized violence. Westerners often forget this fact; non-Westerners never do.”

    ― Samuel P. Huntington, The Clash of Civilizations and the Remaking of World Order

    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Tue Apr 17, 2018 8:39 am

    https://iz.ru/731911/tatiana-gladysheva/rossiiane-perevodiat-vklady-v-gosbanki

    The volume of citizens' funds in banks with state participation increased by more than 10% and reached 18.8 trillion rubles

    As of March 2018 on deposits is 25.4 trillion rubles of Russians. About 74% of all citizens' funds are placed in banks with state participation, calculated for "Izvestia" in "Expert RA". According to the calculations of the NRA, this share is slightly less - 72%.

    The trend of the transfer of deposits of individuals from private banks to state-owned banks persisted for the last two years: in 2016, they accounted for 62-64% of all deposits, in 2017 - 64-66%. A similar picture in the segment of legal entities - now about 76% of their deposits are in credit institutions with state participation, and in 2016 this share was 67%.
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Tue Apr 17, 2018 9:04 am

    GarryB wrote:
    Unfortunately, they managed to gain full control of WTO and international trade. Like it or not. So Rusal and all Russian companies will need to take extra measures and develop plan out of this mess by moving away from US. But that is hard when the rest of the world relies on US. I wish it wasn't true but it is, and hence why so few nations back up Russia over this ordeals. They are afraid of being sanctioned too.

    The US only has control where the world lets it have control... and that wont change if Russia keeps being their bitch.

    Time for change.

    Russia should not react to sanctions, they should lead with sanctions against those countries that impose sanctions on Russia... Russia is better off ignoring such countries and looking elsewhere for trade partners... there are plenty. They are not the richest countries in the world but there is plenty of potential.

    Keeping sucking up to the US means they keep control and they stay rich... developing with other countries means Russia cannot be controlled by the west and the countries they trade with wont be held back the way the west is trying to hold back Russia... a win win... for everyone except the west.

    I completely agree. I would wager on helping build Syrian, Iranian, Venezuelan, and North Korean economies (add in some African economies) to work with the MIR card system, their own Swift alternative, and some kind of customs union. Start investing in them and building them up for domestic consumption and trade among the customs union. The more nations that participate, the better. Like Belarus and various post sovist countries.

    At least that is what I would do.

    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Tue Apr 17, 2018 1:47 pm

    HSE: We will respond by counter-sentiments - we will get increased isolation

    https://topwar.ru/139990-vshe-otvetim-kontrsankciyami-poluchim-vozrosshuyu-izolyaciyu.html
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    Godric

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    Re: Russian Economy General News: #9

    Post  Godric on Tue Apr 17, 2018 2:01 pm

    i really hope Russia goes ahead with is ban on titanium exports to the 3 countries involved in the Syria strike it would be a massive impact on Boeing, Lockheed Martin and Airbus it would not only f*ck up their civil aeronautical industry but more importantly their military aeronautical industry ... the USA has basically declared economic war on Russia ... and Russia needs to hit back hard

    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Tue Apr 17, 2018 6:00 pm

    Donald J. Trump
    ‏Verified account @realDonaldTrump
    2h2 hours ago

    Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!



    Jim Rickards
    ‏ @JamesGRickards
    38m38 minutes ago

    Jim Rickards Retweeted Anirudh Garg

    Interesting. Technically it's not true; China has been propping up their currency, not devaluing. But, if Trump takes that view, we'll see currency wars and trade wars bleeding into each other as they historically do.

    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Tue Apr 17, 2018 6:01 pm

    China, along with Japan, South Korea, Germany, Switzerland and India, were placed on the Treasury's monitoring list, meaning they satisfied some but not all of the criteria that would have qualified them to be designated as currency manipulators.

    So even my country India is in the esteemed list of US Treasury

    Russia does not devaluate its currency , its currency is not tightly pegged against USD/Euro but is free floating and depending on Oil Price its either strengthens or weakens hope Donald knows that !
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    franco

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    Re: Russian Economy General News: #9

    Post  franco on Tue Apr 17, 2018 9:40 pm

    No more An-124 transportation for NATO.

    https://bmpd.livejournal.com/3161433.html
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    franco

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    Re: Russian Economy General News: #9

    Post  franco on Tue Apr 17, 2018 9:48 pm

    04/17/2018 (19:43)
    Over the past two years, the defense industry enterprises have transferred to the various budgets of the Russian Federation almost half a trillion rubles of the funds of the GOZ

    The budgetary funds allocated to finance the state defense order have a significant investment effect, which is confirmed by the data of the Unified Financial Monitoring System of the State Defense Order.

    For example, over the past two years, the defense industry enterprises, having received money from the Defense Ministry for manufactured products, paid 481 billion rubles of taxes to various budgets of the Russian Federation, 444 billion went to pay wages and 121 billion to the Pension Fund.

    Thus, the military department returns to the economy a significant part of the funds received, which contributes to the implementation of social programs, helps enterprises to develop.
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    AlfaT8

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    Re: Russian Economy General News: #9

    Post  AlfaT8 on Tue Apr 17, 2018 9:53 pm

    Austin wrote:China, along with Japan, South Korea, Germany, Switzerland and India, were placed on the Treasury's monitoring list, meaning they satisfied some but not all of the criteria that would have qualified them to be designated as currency manipulators.

    So even my country India is in the esteemed list of US Treasury

    Russia does not devaluate its currency , its currency is not tightly pegged against USD/Euro but is free floating and depending on Oil Price its either strengthens or weakens hope Donald knows that !

    Honest question, to what extent is the Ruble connected to Oil, because i don't remember much talk about a Petro-Ruble.

    Hole

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    Re: Russian Economy General News: #9

    Post  Hole on Tue Apr 17, 2018 10:08 pm

    It is connected in the minds of western "experts".
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    kvs

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    Re: Russian Economy General News: #9

    Post  kvs on Wed Apr 18, 2018 1:58 am

    Hole wrote:It is connected in the minds of western "experts".


    Indeed. The CBR stopped any sort of market interventions in late 2014 and left the ruble to freely float. This resulted
    in a 50% devaluation in a short period which triggered an inflation spike that lasted only until March of 2015. But it was
    enough to trigger a recession.

    The CBR would have had to blow hundreds of billions of dollars propping up the ruble since it was under a full bore
    attack organized by NATO. CBR interventions would allow the attackers to milk Russia for its reserve money. A positive
    side effect of letting the ruble drop (i.e. let the NATO dominated market players, all several thousand of them, link it
    to the price of oil) was that the 50% (+/-) dollar drop in oil was totally offset by the change in the exchange rate.
    That is Russia was getting the same amount of rubles for each barrel of oil it sold as before the devaluation. Since
    the Russian economy operates on rubles and not dollars and Russia is not an import-dependent economy, this cancellation
    was real.

    Trump-tard is going with the flow. There are no more facts. There are only lies of convenience.

    Austin

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    Re: Russian Economy General News: #9

    Post  Austin on Wed Apr 18, 2018 5:48 am

    Tests of the first large-capacity turbines in Russia are stopped

    Подробнее на ТАСС:
    http://tass.ru/ekonomika/5134074
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Wed Apr 18, 2018 6:21 am

    So during heavy tests some mechanisms broke. They state they are continuing work but deadline may be pushed.

    Well, since this is a massive development, they should have expected issues.

    Can't understand full article but it seems that this is a joint Rostec and Rusnano project, and that power machines will also participate? Am I getting that correct?
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    miketheterrible

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    Re: Russian Economy General News: #9

    Post  miketheterrible on Wed Apr 18, 2018 6:32 am

    For those who may find translator sucking


    MOSCOW, April 17. /TASS/. Tests of Russia’s first large-capacity gas turbine GTD-110M were halted due to a failure of some mechanism but project activities will continue after troubleshooting, a representative of the Russian state corporation Rostec told TASS on Tuesday. The statement was confirmed by a representative of Rusnano, another project stakeholder.

    "A range of mechanisms has indeed failed during long-term tests to verify lifetime indicators of GD-110M. Tests had to be suspended until closeout of the problems. This will indeed influence on the deadline but it is not fatal for the project. We remind this is the first experience of developing turbines of such class in Russia and complications in the course of tests were fairly expected," the Rostec representative said.

    Rusnano will continue its shareholding participation in "the highly sought project and expect that it will be implemented," the company told TASS.



    More:
    http://tass.com/economy/1000274

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