Russian Economy General News: #3

No risk of ‘eating away’ Russia’s currency and gold reserves - Central Bank governor

Russia’s Central Bank sees no objective reasons for decline in the rouble exchange rate but sees prerequisites for the rouble strengthening instead, Elvira Nabiullina said

MOSCOW, February 1. /TASS/. Russia’s Central Bank sees no major risk in ‘eating away’ its international reserves, Central Bank governor Elvira Nabiullina said on Sunday.

"There is no such a risk, since we have switched to a floating rouble exchange rate. It was done not to spend too much of the currency and gold reserves to support the rouble, among other reasons," she told the Sunday Time programme on Russia’s television Channel One.
She said that the rouble would decline in any case, even if the regulators had not switched to the floating exchange rate but in this case attempts to keep it from falling would cost a larger share of reserves. "It is vitally important for the country to have a cushion of currency and gold reserves," Nabiullina said. "We have enough of that - slightly less than 400 billion U.S. dollars. There are various international standards of sufficiency of the currency and gold reserves to import volumes, to short-term debts. We are exceeding all such standards."
The Central Bank, in her words, sees no necessity to spend these reserves in 2015 and 2016, like it was done in 2014. "In this sense, the previous year was a special one. The dramatic drop in oil prices prompted us spend considerable sums," she said.
In 2014, Russia’s currency and gold reserves shrank by 124 billion U.S. dollars.

Central Bank sees no reason for decline in rouble exchange rate

Russia’s Central Bank sees no objective reasons for decline in the rouble exchange rate but sees prerequisites for the rouble strengthening instead, Central Bank governor Elvira Nabiullina said on Sunday.
"We observe no big factors that might send the rouble down. The recent fall in oil prices was the third biggest fall in the past 40 years. Of course, it had some impact on the rouble exchange rate," she said, adding that another factor impacting the rouble exchange rate was corporate sector debt disbursements.
"We believe that now there are more prerequisites for the rouble strengthening than for its weakening," she said, adding that the Central Bank had forecasted a slight decline in the rouble after the Bank’s decision of January 30 to lower the key interest rate by two percent to 15%
The real rouble exchange rate, according to the Central Bank’s preliminary estimated, dropped by 27.2% in 2014, including by 13,5% in December.

Interesting report.. it shows How  Elvira Nabiullina the head of the Russia central bank came to power
on her actual position..    ----> Nominated by Putin.  

cute isn't her? doesn't look like an evil women for me..  

March 12 (Bloomberg) -- Elvira Nabiullina, a Kremlin aide and former economy minister, was nominated by President Vladimir Putin to head the central bank, a pick that may tip the balance in favor of monetary policy to promote growth.
Speaking at his residence outside Moscow today, Putin told Nabiullina and Chairman Sergey Ignatiev that he’d submit her nomination to lawmakers. That would make Nabiullina the first woman to head a Group of Eight monetary authority.

Putin’s pick must win approval from a majority in the lower house of parliament. Nabiullina thanked Putin at the meeting and said she would like Ignatiev to join her as an adviser if lawmakers approve her nomination. Putin agreed to the proposal.
Ignatiev, 65, must retire June 23 when his third and final term ends, the Kremlin said in a statement after the announcement.

Putin’s Trust

“I want to thank you for the trust you’re placing in me with this nomination, understanding how responsible, difficult, and professional this work is,” Nabiullina said at the meeting.

http://www.bloomberg.com/news/articles/2013-03-12/putin-nominates-nabiullina-to-head-russian-central-bank

My guess is when Putin came to power in 2000, he did not had full power to get all the people he wanted at his side..
and had to negotiate with the Elite.. something.. And only when he came again for a third time ..he was able to choose anyone he wanted.. He got Elvira in the central bank.. and he got Sergey Shoygu as defense minister.. contrary to what most in the Russian government wanted.

SO people can now have peace of mind.. Russia Central bank is not controlled by the west.. as some conspirations
were saying.. and elvira personally was picked by Putin and she will do a good Job for Russia. Is also worth to notice that elvira had to work with Kudrin rat in the past.. who is now provoking divisions in Russia and throwing jabs at Putin.. and her comments weren't very positive about him. Called him a difficult person to work.. probably for not calling dirty bastard asshole , So they are not not in the same 5th column faction. As it was said before the Ruble
was allowed to crash at 80 per dollar by the central bank to allow Russia retake their shares back in the energy industry.. and essentially almost Fully Nationalize their energy companies..

Cute? Meh... Though I did see a cute Russian at an IKEA today! 

sepheronx wrote:So what are the standing predictions so far?
- Silunov: No growth or a little contraction
-ukulele (whatever his name is): -3% to -1000%
- some no name from US: -10% to infinity%
-IMF / World Bank: 0% to -5%

So many predictions. I think someone in rus gov said it best - we cant predict it.

All of these forecasts are rubbish. The import substitution effect has a noticeable time lag since it
requires time to grow production capacity and to start new production. We saw a surge right at the
end of last year. If this surge is what I think it is, then it will keep on growing in 2015. So there
can actually be a good GDP growth in Russia this year.

The main problem is parasite inflation where prices are jacked up on non-imported goods under
the confusion created by import price increases.

Nice

China Announces New 'Silk Road' Through Russia, India

excellent

Russia Bans Imports of Foreign-Made Machinery for State Needs

Despite all the spam on a lvl never before seen

Rosstat confirmed the estimate of GDP growth in 2014 to 0.6%

Source: Government will allocate 20 billion rubles. to subsidize mortgage rates

Great

Dvorkovich: vehicles came under a ban on imports, have analogues in Russia

Dvorkovich: a ban on imports of subject construction equipment

Russian Federation banned imports of mechanical engineering for municipal and state needs

Gold gold gold

Don: the Russian Federation in 2015 to increase gold production up to 300 tons

interesting

In Russia, the Gold Rush

http://ru-facts.com/news/view/43502.html

West declared war on Russia rating

ru-facts.com/news/view/43482.html

Just look at the facts, to understand - a decision really, purely political. But do not expect that the facts be interested in the American business press. Let’s do it ourselves. And not only so, but in comparison with the US debt situation.

The network has that is, data on debt around the world. So,

according to them, the Russian government debt is 11% of Russia’s GDP. US - 105% of the US GDP, which is about 10 times larger than the Russian.

The Russian State debt per capita - $ 1 645. The US national debt per capita - $ 56,952.

Size of the Russian national debt - $ 235 billion. US - $ 18 trillion in 76.6 times more than Russia’s debt.

US GDP - $ 17.3 trillion, while Russia’s GDP - $ 2.1 trillion. America in terms of GDP than Russia 8 times, and the size of the debt - in 76.6 times!

It is obvious that America’s credit rating should be downgraded to   But this will never happen. Any credit agency, which will begin to tell the truth, will be immediately closed and punished. There is an excuse - they can, for example, declare the accomplices of terrorism. Do not expect the truth from the offspring of Wall Street. They make a living lie.

Vann7 wrote:Interesting report.. it shows How  Elvira Nabiullina the head of the Russia central bank came to power
on her actual position..    ----> Nominated by Putin.  

cute isn't her?  doesn't look like an evil women for me..  

She's of tatar origin and has a deep knowledge of economics. Perfectly fit for the job, since she's cool, calm, collected

BTW what are the chances that in the guise of Economic Sanctions and weakening the economy in coming months the US and NATO is planning a bolt from blue nuclear first strike ?

Its possible that West must be using this to divert attention from such a plan.

And the only way for Russia to avoid would be to First Strike US and NATO targets and population else it would be impossible later on after a decapitating first strike from them  ?


Indications that the U.S. Is Planning a Nuclear Attack Against Russia

http://www.washingtonsblog.com/2014/06/indications-u-s-planning-nuclear-attack-russia.html

President Obama is now trying to persuade EU leaders to join with him to complete this plan to replace MAD with a first-strike nuclear capability that will eliminate Russia altogether from the world stage.

Austin wrote:West declared war on Russia rating

ru-facts.com/news/view/43482.html

Just look at the facts, to understand - a decision really, purely political. But do not expect that the facts be interested in the American business press. Let’s do it ourselves. And not only so, but in comparison with the US debt situation.

The network has that is, data on debt around the world. So,

according to them, the Russian government debt is 11% of Russia’s GDP. US - 105% of the US GDP, which is about 10 times larger than the Russian.

The Russian State debt per capita - $ 1 645. The US national debt per capita - $ 56,952.

Size of the Russian national debt - $ 235 billion. US - $ 18 trillion in 76.6 times more than Russia’s debt.

US GDP - $ 17.3 trillion, while Russia’s GDP - $ 2.1 trillion. America in terms of GDP than Russia 8 times, and the size of the debt - in 76.6 times!

It is obvious that America’s credit rating should be downgraded to   But this will never happen. Any credit agency, which will begin to tell the truth, will be immediately closed and punished. There is an excuse - they can, for example, declare the accomplices of terrorism. Do not expect the truth from the offspring of Wall Street. They make a living lie.

Russia's national debt is not $235 billion. It is vastly smaller, under $40 billion (http://www.cnbc.com/id/102267423).

If people are not going to use the same definition of national debt when talking about NATO member states or the rest
of the world aside from Russia, then they should shove a sock in their mouth.

For example, consider Ireland and Greece. Ireland has a "national" debt of $2.4 trillion while Greece has a national debt of
$400 billion. Both countries have a population of about 10 million people. Greece is not exactly dirt poor or something.
The difference is that the Irish national debt is just over $120 billion. Nobody runs around talking about the $2.4 trillion.

Austin wrote:

http://www.washingtonsblog.com/2014/06/indications-u-s-planning-nuclear-attack-russia.html

Not denying Obama's agressiveness towards everything that is Russian, this article is a perfect lure. Russia has deterrent means to face a US/EU first strike capability. Anyway, it's overdue time to end INF.

higurashihougi wrote:

Kyo wrote:

Austin wrote:http://www.washingtonsblog.com/2014/06/indications-u-s-planning-nuclear-attack-russia.html

Not denying Obama's agressiveness towards everything that is Russian, this article is a perfect lure. Russia has deterrent means to face a US/EU first strike capability. Anyway, it's overdue time to end INF.

White House tried to use B-2 to bomb Russia ?

F*cking ridiculous. No U.S. stealth aircraft can effectively bypass the elaborated AA defense of Rus'.

But the foreign police elite in the USA actually believe that "stealthy" B-2s can catch Russia off guard.
There was some article in an influential magazine catering to the establishment where they waxed
poetic about how the US can do what it wants with Russia.

That was a few years ago, however. Sauron ... sorry... Putin has cleaned house and the real assets
of the USA "to do as it pleases with Russia" have been removed. These were various agents of
sabotage that riddled key positions. Not all of them have been cleaned out yet, put they are no
longer able to guarantee their bosses results.

BTW, someone noted that the problems with the Bulava SLBM disappeared when the Americans camped
near the factory where it was being made were finally shown the door. They were there as part of the
various sell-out deals on arms reduction and "security" arrangements signed by traitor Yeltsin.

kvs wrote:
BTW, someone noted that the problems with the Bulava SLBM disappeared when the Americans camped
near the factory where it was being made were finally shown the door.   They were there as part of the
various sell-out deals on arms reduction and "security" arrangements signed by traitor Yeltsin.  

Nothing to do with Americans there just that they did not implement QC/QA among 600 odd suppliers now they have restored QA/QC to soviet level of 3 way checks and implementing strict QC at the suppliers end and inspection end

Russian ruble recovers as Brent crude rises above $55 per barrel

The US dollar and the euro fell against the ruble at the opening of trade on the Moscow Exchange

MOSCOW, February 3 /TASS/ The exchange rate of the US dollar fell versus the ruble at the opening of trade on the Moscow Exchange on Tuesday, shedding 80 kopecks to 67.62 rubles per dollar.
The euro dropped 77 kopecks to 76.68.
Meanwhile Brent crude oil at the ICE exchange in London grew 1.08% to 55.34 dollars per barrel.

Russian External Debt Is Falling at a Steady Rate

http://russia-insider.com/en/2015/02/03/3079

All in, end-2014 external debt of Russian Government, banks and corporates stood at USD548 billion, or just below 30% of GDP - a number that, under normal circumstances would make Russian economy one of the least indebted economies in the world. Accounting for cross-firm holdings of debt, actual Russian external debt is around USD420 billion, or closer to 23% of GDP.

So they finally let the cat out the bag:

http://itar-tass.com/ekonomika/1742398

Ulyukayev: decision to start the project financing of the FNB at 525 billion rubles

According to the Ministry of Finance, the amount of NWF as of February 1, 2015 - 5 trillion 101.83 billion rubles., In foreign currency equivalent - $ 74.02 billion. Income from accommodation NWF from 15 January 2014 to 15 January 2015 totaled 35.99 billion rubles. and in January, were transferred to the federal budget.

It seems that oil crisis is coming to an end. At least the first stage.
Stunningly enough, in the right moment happened that Saudi king died... well speaking about destiny and lady luck.

Now what is this

The Legacy of Debt: Interest Costs Poised to Surpass Defense and Nondefense Discretionary Spending

Russia: 'Reserve funds to be used to tackle externally induced crisis' - Putin

Austin wrote:

kvs wrote:
BTW, someone noted that the problems with the Bulava SLBM disappeared when the Americans camped
near the factory where it was being made were finally shown the door.   They were there as part of the
various sell-out deals on arms reduction and "security" arrangements signed by traitor Yeltsin.  

Nothing to do with Americans there just that they did not implement QC/QA among 600 odd suppliers now they have restored QA/QC to soviet level of 3 way checks and implementing strict QC at the suppliers end and inspection end

Do you have any references? If it was simply a QA issue then we would see every major piece of equipment in the Russian
armed forces experiencing Bulava-like glitches. But actually the Bulava failure rate was well outside of random QA
failure. It was systematic.