Russian Economy General News: #4

Yes, perhaps the food can be donated to government run old peoples homes and orphanages.

I suspect privately run facilities might be tempted to sell the food to generate revenue.

Another option would be to donate the food to poorer countries around the world, of course it would be important to ensure no food is wasted because of bureaucracy... would be nothing worse than having confiscated food sitting in a warehouse for three years and then sending it to Somalia only to arrive and be opened and find the food probably need refrigeration and also to be eaten within a few months of it being confiscated...

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

I remember lots of cases in the 1990s and early 00s where certain Russian things could not be sent to certain places in the fear that they might be seized by local authorities because some foreign company claims it was owed money it invested in Russia years before.

If a country is going to freeze your assets then they are basically denying you access to your own property... why wouldn't you do the same to them? I am surprised this is not already a law on the books. This is not an advantage for Russia or Russian businesses... this just levels the playing field.

Media China: the Russian economy is recovering, despite the "double whammy"

Food should not go wasted because of petty politics , I am sure there are many hungry people in Russia who would be happy to get their one decent meal on the table , better these food go into hungry stomach then just burn it out.

I wonder who came up with such stupid idea of destroying the food.

"Destroyed" can mean many things including donating to poor people or ending up on the tables of customs officers.

Send it to donbass make extra PR while destroying the GMO crap.

The Russian exports of machinery increased sharply

Austin wrote:Food should not go wasted because of petty politics , I am sure there are many hungry people in Russia who would be happy to get their one decent meal  on the table , better these food go into hungry stomach then just burn it out.

I wonder who came up with such stupid idea of destroying the food.

It's not petty politics neither it's stupid is just the standard practice among customs services around the world when dealing with illegal food imports. For practical reasons, when individuals try to smuggle small amounts of food into another country those products generally end-up destroyed since the lack of suitable storage facilities and the process of analysing every samples is too expensive and impractical. But usually when commercial food shipments of banned imports are intercepted, as long as they comply with sanitary measures (that it's not always the case when dealing with fresh food), those are sent to be processed as humanitarian help or donated in bulk to international organisations, even in third world countries, because it's easier and cheaper than to destroy it.

America continues its economic assault against Russia

Russian currency dives below 65 against euro first since March 20

The euro has gained 90 kopeks to hit 65.07 against the ruble in the first hours of trading on the Moscow Exchange Monday. The last time the Russian currency dipped to below 65 was on March 20.
Against the greenback, the ruble was trading at 58.8 at 11:00 MSK.

The Russian currency continued to follow oil’s route on Monday as Brent crude fell to $54.60 a barrel and the WTI was down at $48 a barrel.

May I ask why new members cant post links to other websites like news for 7 days from account resgistration? thank you

Project Canada wrote:May I ask why new members cant post links to other websites like news for 7 days from account resgistration? thank you

To avoid spam.

Project Canada wrote:America continues its economic assault against Russia

Russian currency dives below 65 against euro first since March 20

The euro has gained 90 kopeks to hit 65.07 against the ruble in the first hours of trading on the Moscow Exchange Monday. The last time the Russian currency dipped to below 65 was on March 20.
Against the greenback, the ruble was trading at 58.8 at 11:00 MSK.

The Russian currency continued to follow oil’s route on Monday as Brent crude fell to $54.60 a barrel and the WTI was down at $48 a barrel.

May I ask why new members cant post links to other websites like news for 7 days from account resgistration? thank you

As much as the currency devaluation will hurt average consumer, this is what Russia gets of having a free floating currency. Speculators tied it to oil so Rouble will drop if oil drops. Has nothing to do with USA.

This will more likely help increase export so industries will do better, but the main economic activity is consumer demand, and a currency that fluctuates as much as the Rouble does when oil fluctuates will not help consumers at all. We are seeing this here in Canada and Australia as well.

Maybe it is time to look at a two currency system in Russia like how Cuba did it. A Rouble like what they have now (free floating) for import/export/investments and a rouble for domestic consumer use that is fixed. Because Russia wont gain both benefits with a free floating currency that speculators ties to oil. And lets face it. Russias worst of the economic performance which helped create the issue but solving it as well, is/was domestic consumers.

I think the current issues that surround Russia and will force both prosecutors and officials hands is fraud/corruption.

http://tass.ru/en/russia/810885

That is a lot of money due to fraud. As well, a business man in moscow has claimed that he lost 200M roubles due to a fraud in Rusnano, and so there could eventually end up being an investigation done (nothing said so far). It will take longer but if enough people whom done this, get the right punishments, then hopefully the rest will stay in line. But the case against former defence minister Serdyukov gives me the indication that people like Chubias would also get off as well if a case did go through.

Such frauds cost government and society billions a year and it really needs to be cured.

Project Canada wrote:America continues its economic assault against Russia

Russian currency dives below 65 against euro first since March 20

The euro has gained 90 kopeks to hit 65.07 against the ruble in the first hours of trading on the Moscow Exchange Monday. The last time the Russian currency dipped to below 65 was on March 20.
Against the greenback, the ruble was trading at 58.8 at 11:00 MSK.

The Russian currency continued to follow oil’s route on Monday as Brent crude fell to $54.60 a barrel and the WTI was down at $48 a barrel.

May I ask why new members cant post links to other websites like news for 7 days from account resgistration? thank you

It's more about oil really. Oil has been dropping lately and the value of ruble too because ruble is a petro currency.

Very nice

Russia bans import of flowers from the Netherlands

Viktor wrote:Very nice      

Russia bans import of flowers from the Netherlands

Not surprised. About a day ago or two, there was a post on sdelanounas of a large flower green houses in the Penza (whichever it is called) region. So that will bring in some money.

Didnt even think flowers generated much revenue.

Yet another great news and yet another great day  

Russian Federation banned the import of canned fish from Latvia, Estonia

Economic Development Ministry Forecasts Russia's GDP Growth at 2.3% in 2016

sepheronx wrote:
Maybe it is time to look at a two currency system in Russia like how Cuba did it. A Rouble like what they have now (free floating) for import/export/investments and a rouble for domestic consumer use that is fixed. Because Russia wont gain both benefits with a free floating currency that speculators ties to oil. And lets face it. Russias worst of the economic performance which helped create the issue but solving it as well, is/was domestic consumers.

It never works. Cuba's been eyeing ways to unify the currency for ages and it's such a fubar situation that they're barely managing baby-steps. If the Kremlin wants to ease the pain of a weaker rouble it should do something about the criminally high interest rates on loans. I've been in the motherland for a bit and even amongst the beach discussions the issue has crept up. People borrow 40k and have to pay 60-65 back. Extrapolate that to bigger loans for say apartments or cars and it becomes unsustainable.
That is especially the case with small businesses, we need easy access to cheap loans for people looking to start a company. Lots of people are eyeing opportunities with the sanctions and the weak rouble, but can't do anything because they don't have any seed capital. And we're not americans so we don't double-morgage our houses just to try and start a company.

Also, good to see you seph

Oil price has really been dropping and it looks like it will go under $50 per barrel soon. Maybe this is because of the Iran deal?

Do you think the Russian economy can return to growth even with the current oil price?

I wonder who came up with such stupid idea of destroying the food.

Actually if you saw how much food is thrown away by supermarkets and bakeries every day it would make you cry...

What is the negative effect of rising rouble due to lowering of prices , I saw today Rouble vs USD is at 60 , On the positive side the budget is taken care off.

Will Rouble getting more weaker vesus Euro/USD lead to inflation and what else ?

All depends. Russia was seeing deflation last month or so. So inflation could go up, or it could stagnate. But I cant imagine that all this fluctuation due to oil is good for domestic consumers. Hence why Russia needs to fight this issue by getting Rouble off this whole "being tied to oil" when it is supposed to be free floating.

I Suppose CBR is going to purchase a ton of Roubles with their FOREX like they did before, to get the Rouble to appreciate.

Edit: double post.