Russian Economy General News: #4

Austin wrote:

sepheronx wrote:
And I wonder what they will do exactly?  Trade amongst Russia and US was piss poor, and there really isn't much more they can do now since they banned banks and banned long term interest rates.  So they will ban short term interest rates, and then what?  Ban Russian oil/gas and ban Russia from swift, whom is now on the board of directors?  If that is the case, US would be shooting itself in the foot.  If they are going to put more people on black list, oh well, that wont do shit.

The penalties could start with banning more Russian government officials and businessmen from traveling and doing business in the West, U.S. and European officials said. But they can climb dramatically to include new measures to crimp the country's all-important fuel exports, cut Russian banks off from international financial transactions and severely limit the capacity of Russian businesses to engage in lucrative business deals overseas.

The Americans and the Europeans are working off the same menu of contingency measures, the officials said, though there is no agreement yet on what level of response would be appropriate for each type of infraction.

Read more: http://www.businessinsider.com/europe-and-the-us-are-readying-a-new-round-of-crippling-sanctions-against-russia-2015-6#ixzz3gGsgT7aN

Western companies don't give two sh*ts about sanctions and routinely bypass them. This is just face-saving media noise for sheep consumption.

Just check the recent articles on this forum, one is Japanese posted today...

sepheronx wrote:

Austin wrote:Good Read and Must Read

Greece’s Lesson For Russia — Paul Craig Roberts

Definitely a good read.  Thank you Austin for finding this gem.  And it pretty much takes a stab at the Russian economists like the ones in economic ministry right now.  Just wish the bigger heads would listen to Paul Craig Roberts and actually fire those incompetent boobs (as said, Austerity causes more problems than solves them).

That indicates or could bring someone to the conclusion that austerities make anything better. I could not think of a single thing.

Could someone please tell what happened to the Chinese stock market(I have been researching online as well)? Can this happen to Russia? Was this a done deliberately by the west? What can be done to stop this from happening again?

par far wrote:Could someone please tell what happened to the Chinese stock market(I have been researching online as well)? Can this happen to Russia? Was this a done deliberately by the west? What can be done to stop this from happening again?  

Russian stock market is smaller and does not have as much impact on local economy overall.

Despite sanctions, Russia remains global energy player

http://timesofindia.indiatimes.com/india/India-Russia-to-jointly-build-200-military-choppers/articleshow/48134956.cms

He underlined that the decades-old defence cooperation with Russia remains vibrant despite India purchasing military equipment from other countries, like the recent decision to buy 36 Rafale fighter aircraft from France.

"This (India-Russia ties) is a huge, broad based relationship, getting broader every day," he said.

"Recently, we have agreed to joint manufacture of helicopters in India ... Joint manufacture of 200 helicopters in India is big bang. If two countries decide to manufacture 200 helicopters in India with transfer of technology, and licence production, this is big bang," he said.

Raghavan was responding when asked to comment on the perception that the defence relations between India and Russia are getting diluted as New Delhi has been looking at other countries for military purchases.

Maintaining that India-Russia defence ties remain vibrant, he said, "people notice few things we do which are non-Russian ... There are newer and newer products and newer and newer projects which don't get noticed and attention gets diverted to few things that we do outside Russia."

He said a number of projects are under active discussions and "sooner or later, they will come out in the open." He, however, refused to give details about these, saying there can be no disclosure till the decisions are firmed up.

While dismissing the perception that the vibrancy of India-Russia ties in defence sector are getting eroded, the ambassador said, "some impressions get formed on the basis of inaccurate or incomplete information."

Acknowledging that India is diversifying its defence purchases "as many countries do" to take advantage of opportunities, he said, "But our armed forces are 60-70 per cent dependent on Russian supplies. That is a reality that cannot change overnight."

Quoting Prime Minister Narendra Modi, Raghavan said Russia continues to remain India's primary defence supplier.

"In fact, he (PM) has said that Russia has been and will remain primary defence supplier (of India)," he added.

Sanctions Leading to a Russian Industrial Renaissance - Japanese Journalist

In a recent article for business journal Japan Business Press, Japanese journalist and Russia industrial goods trade specialist Sugahara Nobuo stated that Russia is presently on course for an industrial revival, adding that Western sanctions have helped to 'breathe new life' into the country's machine-building sector.

An expert with over 40 years' experience specializing in the trade of machine goods between Japan and Russia, Sugahara began his article by noting that the economic situation created inside Russia as a result of the sanctions war with the West has forced local companies to begin offering locally produced goods to replace imports. He noted that "these changes [in the consumer sector] are beneficial for the Russian economy, which previously depended very heavily on imports," adding his view that "President Putin has turned the crisis into an opportunity for development."
Moving on from consumer goods to the producer goods sector, Sugahara listed his observations and impressions following visits to various Russian factories and local industrial equipment exhibitions.

US Threatens to Expand Anti-Russia Sanctions to Enforce Minsk Accords

We have no new US actions to announce at this time, but we and our international partners are prepared to increase the costs for Russia should its actions so require,” the official stated on Monday in commenting the reports that Washington is preparing to “starve off” Russia’s access to Western credit.

“As G-7 [Group of Seven] leaders made clear at the Summit in Schloss Elmau in June, we and our G-7 allies remain committed to maintaining pressure on Russia to fulfill its Minsk obligations.”

Read more: http://sputniknews.com/politics/20150721/1024859486.html#ixzz3gVHEsVkX

Austin wrote:US Threatens to Expand Anti-Russia Sanctions to Enforce Minsk Accords

We have no new US actions to announce at this time, but we and our international partners are prepared to increase the costs for Russia should its actions so require,” the official stated on Monday in commenting the reports that Washington is preparing to “starve off” Russia’s access to Western credit.

“As G-7 [Group of Seven] leaders made clear at the Summit in Schloss Elmau in June, we and our G-7 allies remain committed to maintaining pressure on Russia to fulfill its Minsk obligations.”

Read more: http://sputniknews.com/politics/20150721/1024859486.html#ixzz3gVHEsVkX

They already starved off Russia from western credit.  These accusations and threats are getting out of hand and I think are getting to the point that they have proven they got nothing.  But will bluff anyway. It is becoming evident, and even mentioned in news, that G-7 is becoming irrelevant thanks to both BRICS and SCO, and it is this old boys club is getting real scared I think, hence they are trying to stay in the limelight and throwing stones from a glass house. If they want to point at the failure of not meeting Minsk accord, then point it at Ukraine.

That said, Russia should openly tell them that they will just ignore them for now on, and do what is really important - its own country and development. Russia's real problem right now will be dealing with villages and monograds that are a drain on its economy and social structure.

I suspect additional sanctions are on the card , they would just let Ukraine forces attack Donetsk and would sanction Russia for supporting the rebels.

US now got a firm grip on Europe even the wikileak incident of top official getting bugged etc proves it that EU is just a lame duck.

Ukraine crisis is a God Sent Opportunity for US and it will utilise it to the fullest possible till the last man in Ukraine is willing to fight

If not for Ukraine , US would sanction Russia for joining SCO and BRICS banks.

Russia should now working with the assumption that they would remain under sanction for a long time and should completely divert its economy towards Asia/BRICS.

No point in pretending Sky is Dark by keeping its eyes closes , Just start trading Oil/Gas in Yuan , Drop most of the USD Bills and opt for Chinese/BRICS bond and start purchasing Gold and keep it to 40 % of its reserves.

EU Energy needs are good to have thing for the Russians henceforth not a must have

Credit is key for Russia , so it should cut out a deal with China for cheap credit and fund it from its own kitty.

I wont be surpised with additonal round of sanction and even cut from global payment system Rouble will be around 70-80 but it would be good in medium and long run

Or Russia can simply demand CBR to lower interest rates to something more attainable like 5% and they fund themselves. Use their own physical entities like infrastructure as liquidity to the banks.

Meanwhile CHina the self inward looking china is retreating from Power of SIberia 2
deal with Russia..

https://www.rt.com/business/310451-gazprom-cnpc-gas-deal/


CHina is an power house that thinks only in their own interest and nothing else..
Apparently they prefer to continue buying from Australia in times where more than
Ever Russia needs a helping hand.  

Somewhere i read.. maybe is a very average comment ,from Russian business players
in energy sector ,that CHINA is a difficult player to make business ,because they want
things Very cheap ,even if is not profitable for the other side.  Not exactly the same words but the way he told it.. clearly mean.. that chinesse energy companies wanted to take advantage of Russia economic hardship and exploit the situation in their favor at the expense of robbing Russia and get deals at a loss for them.. instead of win /win for both sides.. which is the way fair friendly business operate. and this is why Russia have been unable to replace Western Companies with Chinese ones in the energy market.

This shows to me ,that Russia should become not only completely economic independent of
Europe but also CHINA.. but at the same time not isolating itself from the world.. and trading with anyone who wants. but discounts in price to no one. And if i could ask more ,Russia should not give away any of its best technology to anyone either..  Americans for example do not export their F-22.. or B2 bombers..

It was a huge mistake to have liberals like kudrin as economic minister ,and making Russia
so dependent in Europe..thinking it will be able to act independenly from americans if told to stop trading.

Nice

Russia to penalize foreign companies for bribing

FMS: in Russia is 11 million migrants

not sure if good move or bad move..

Kremlin to Seize Foreign Assets in Response to Frozen Russian Capital

The Russian government’s Commission on Legislative Affairs approved a bill that would allow Russia to seize foreign state assets without consulting them.
According to the new bill, Russia will be able to seize foreign state assets from countries that would infringe Russia's jurisdictional immunity.

The Ministry of Justice said the new law is to bring parity on the existing "jurisdictional imbalance" between Russia and other countries. In other words, Russia will now seize the state assets of other countries in proportion to the amount of Russian assets frozen in those countries.

Starting in December

Trofimov: Rating Agency will pay off in 3-5 years

Nice

The State Duma will give the Russians a chance to earn extra money

Thai CPF buy poultry farms in Russia for 680 million euros

Medvedev: "Nord Stream-2" does not replace "Turkish"

Medvedev invited Slovenia to "Turkish Stream"

Cards of Russia's Mir payment system will start working in Crimea in December — official

One big LOL .... let them now try to fool the Russian custom

Putin agrees to destroy banned foodstuffs at Russian border crossings

Viktor wrote:One big LOL .... let them now try to fool the Russian custom      

Putin agrees to destroy banned foodstuffs at Russian border crossings

I would say if such banned food are found instead of destroying it its better to give to Charity home , old age homed and similar institutions via government NGO.

Destroying food is wasting it when some hungry can eat

Austin wrote:

Viktor wrote:One big LOL .... let them now try to fool the Russian custom      

Putin agrees to destroy banned foodstuffs at Russian border crossings

I would say if such banned food are found instead of destroying it its better to give to Charity home , old age homed and similar institutions via government NGO.

Destroying food is wasting it when some hungry can eat

I tend to agree. So not only do the people in EU not get any money, but the food goes to those who are in definite need of it.

That is one thing I am not sure if Russia properly has, is donation centers and home/food or whatever for humanity program. I am sure they have something similar but I doubt it is at the extent of what it is out here in the west. What is going to be a given is that poverty in Russia will increase due to more concentration of money will be put into industries/companies in order to help expand and modernize, to help provide work to people as well. But less money in social programs is dangerous. So putting money into groups that will overlook distribution of food and shelter, skills training/education and connecting people to work, for people in need, should be a priority.

All these NGO's that portray to help Russian's, while instead are helping themselves and their political buddies, need to be forced to concentrate on actual help in Russia. Particularly that part of the society - the poor. It is them and the middle class that are big spenders (of course middle class being more) but the poor have less to work with and I think if they had some help, they would actually spend more of their money on average to improve themselves over time.

One good step, is as you say Austin, is to confiscate the food and donate it. But that will probably piss off local producers whom will say "why not buy from us (government) and then donate it!".

sepheronx wrote:

Austin wrote:

Viktor wrote:One big LOL .... let them now try to fool the Russian custom      

Putin agrees to destroy banned foodstuffs at Russian border crossings

I would say if such banned food are found instead of destroying it its better to give to Charity home , old age homed and similar institutions via government NGO.

Destroying food is wasting it when some hungry can eat

I tend to agree.  So not only do the people in EU not get any money, but the food goes to those who are in definite need of it.

That is one thing I am not sure if Russia properly has, is donation centers and home/food or whatever for humanity program.  I am sure they have something similar but I doubt it is at the extent of what it is out here in the west.  What is going to be a given is that poverty in Russia will increase due to more concentration of money will be put into industries/companies in order to help expand and modernize, to help provide work to people as well.  But less money in social programs is dangerous.  So putting money into groups that will overlook distribution of food and shelter, skills training/education and connecting people to work, for people in need, should be a priority.

All these NGO's that portray to help Russian's, while instead are helping themselves and their political buddies, need to be forced to concentrate on actual help in Russia.  Particularly that part of the society - the poor.  It is them and the middle class that are big spenders (of course middle class being more) but the poor have less to work with and I think if they had some help, they would actually spend more of their money on average to improve themselves over time.

One good step, is as you say Austin, is to confiscate the food and donate it.  But that will probably piss off local producers whom will say "why not buy from us (government) and then donate it!".

Do you think may be Russia's message here is "we have more than enough food to eat and we don't ***king need yours, and yours sanction is all bullshit." ?

higurashihougi wrote:

sepheronx wrote:

Austin wrote:

Viktor wrote:One big LOL .... let them now try to fool the Russian custom      

Putin agrees to destroy banned foodstuffs at Russian border crossings

I would say if such banned food are found instead of destroying it its better to give to Charity home , old age homed and similar institutions via government NGO.

Destroying food is wasting it when some hungry can eat

I tend to agree.  So not only do the people in EU not get any money, but the food goes to those who are in definite need of it.

That is one thing I am not sure if Russia properly has, is donation centers and home/food or whatever for humanity program.  I am sure they have something similar but I doubt it is at the extent of what it is out here in the west.  What is going to be a given is that poverty in Russia will increase due to more concentration of money will be put into industries/companies in order to help expand and modernize, to help provide work to people as well.  But less money in social programs is dangerous.  So putting money into groups that will overlook distribution of food and shelter, skills training/education and connecting people to work, for people in need, should be a priority.

All these NGO's that portray to help Russian's, while instead are helping themselves and their political buddies, need to be forced to concentrate on actual help in Russia.  Particularly that part of the society - the poor.  It is them and the middle class that are big spenders (of course middle class being more) but the poor have less to work with and I think if they had some help, they would actually spend more of their money on average to improve themselves over time.

One good step, is as you say Austin, is to confiscate the food and donate it.  But that will probably piss off local producers whom will say "why not buy from us (government) and then donate it!".

Do you think may be Russia's message here is "we have more than enough food to eat and we don't ***king need yours, and yours sanction is all bullshit." ?

Maybe, but still a waste and doesn't make a lick of a difference in terms of EU and US propaganda.  So it should be used to donate to the poor (people who meet the issue of being in poverty and needing food stamps or alike). Such things would probably save the Russian government more than plenty of money.

I would say its a good move having that kind of law on the books, available for use if needed, that could act as a deterrent. I suspect your comment applies to actually using it and I agree it could be problematical.

Yes I do hope they do not apply these new laws to private foreign owned companies and assets as it would stave off potential future investors

Russia announces creation of credit rating agency

Moscow (AFP) - Russia's central bank said Friday it would launch a new credit rating agency by the end of the year in an apparent bid to rival US firms that recently downgraded the country's sovereign debt.

Moscow slammed the decisions earlier this year by leading agencies Standard & Poor's and Moody's to cut Russia's debt rating to "junk" as politicised.

The moves came as Russia's economy plunged into recession on the back of Western sanctions over Ukraine and plunging oil prices, and prevented most large investors from holding the debt.

"The Russian market needs a strong credit rating agency with a high level of corporate governance and professionalism, the ability to meet the interests of the economy and be reputable among both Russian and foreign investors," the central bank said in a statement Friday.

"To this end, the idea of creating a new credit rating agency has been supported."

The central bank's announcement comes one week after President Vladimir Putin approved legislation regulating the activities of international credit rating agencies in the country.

The new credit rating agency, which will have capital of three billion rubles ($51.3 million), will be headed by Yekaterina Trofimova, the current vice president of Gazprombank.

The latest initiative represents one of many attempts by emerging economies to rein in the influence of credit rating agencies Standard & Poor's, Fitch and Moody's.

thats a good idea, maybe we can relay this message to Putin or some other highers ups in the RU government? I saw a news yesterday about a girl in Kyrgistan receiving a pet dog from Putin after messaging him a request via email. maybe we can do the same too? just saying