Russian Economy General News: #5

JohninMK wrote:

Project Canada wrote:

Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?

That plan would never get a go ahead in the West, it doesn't show results in 6 months. So, given the mess the West is in following its methods, I'd say its a pretty good plan that deserves to succeed. Its about time someone, apart from perhaps the Chinese, thought a few years ahead, not just until the next election or company result announcement.

Glazyev usually has pretty good ideas in terms of economics.  But let us see if the government takes it into consideration.  There are far too many politicians out for themselves in the Duma so they will definitely go against this.

He has some good ideas, but some bad ones too. I personally do not agree with Quantitative easing as it is essentially printing money. It is a false type of economic growth as well as it can cause further problems, but outside of that, some of his ideas are good. At least in what to aim the money at.

So they could always take into consideration his ideas (as Psekov said, food for thought) and could ask him to re-do the document and maybe make changes to some other ideas like "work around the idea of no QE and also possibly on the revoking of VAT on exports".

Media: Yandex shares surge after FAS decision on Google case

Darn. Shoulda purchased Yandex stock.

Project Canada wrote:

Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?

I think it's unrealistic, it promises 6-7% industrial output growth per year but apart from some fluff terms and budget readjustments it doesn't offer anything new.
Besides which investment into education and health care as a means of promoting economic growth will take decades to have an effect, not 5 years.

Putin also promised 6% annual GDP growth when campaigning for re-election. I voted for him on that promise. He didn't hold it - we didn't get near that amount of growth. Of course now we have the Ukraine crisis and anything, but even in the 2-3 years before that, we were underperforming and not achieving much higher than 2% growth.

In general I approve of government economic policy as it has the priorities in all the right places. Promoting industrialization and localization with a free-floating rouble, auto-manufacturing, revival of North Sea sealane, reforms and support for SMEs, focus on big infastructure projects, new railroads and motorways and logistics hubs, new spaceport in Vostochny, high-tech investment funds, consolidation of small state enterprises into larger corporations, promotion of Russian defence/nuclear/energy technology overseas, pipeline construction and new gas/oil field exploitation, support for the nascent wood-processing industry, banning of European agriculture and supporting domestic agriculture, pivot towards promising markets in Asia, Skolkovo and related ventures, free port initiative in Vladivostok, support for promoting tourism, anti-corruption drive, general lobbying for investment from Western and Asian multinationals, titanium valley and aerospace clusters, revival of shipbuilding, rainy day funds that accumulated oil wealth, Eurasian Union integration (even if it can be improved), World Trade Organization membership... and so on.
We're basically doing all the right things, but as events (and our own inefficiencies) would have it - we haven't achieved the targets we set for ourselves and we aren't growing at our full potential.

I think what's needed is to stay the course, shelve unsuccessful projects, expand the fruitful ones further, and keep looking for improvements to make. Like I said, so far a lot of the priority directions and initiatives sound promising; but they still need to be seen through.

So in this light, you can see what my objections to Glazyev's 'plan' might be - what does he propose that isn't already being done? How does he intend to so radically change the situation so as to guarantee 6-7% industrial growth for the next 5 years?
Sounds like a premature declaration built on the basis of immature and undeveloped vague ideas - reeks of populism IMO.

Russia first and foremost needs more workers if it's to achieve those sort of growth rates, since even during this current downturn, the unemplyment rate is pretty low

flamming_python wrote:

Project Canada wrote:

Why are Liberal Economists Outraged by Putin Advisor's Reform Proposals?

On Tuesday, economist Sergei Glazyev will submit a report to Russia's Security Council, offering his vision on how the country can overcome the effects of Western sanctions and return to economic growth. Last week, Glazyev's proposals leaked to the press, leading to a firestorm of criticism from Russia's liberal economists. Sputnik finds out why.

Sergei Glazyev, a Russian Ukrainian economist, politician, and specialist on the Eurasian Economic Union, will present his report to the Russian Security Council, a consultative body reporting to the Russian president charged with working out decisions on issues of national security, this Tuesday. His report, leaked to Russian business newspaper Kommersant last week, features a number of controversial, unconventional and decidedly anti-liberal proposals for dealing with the effects of Western sanctions, stabilizing the course of the ruble, and restoring economic growth.

The plan proposes a five-year 'road map' to Russia's economic sovereignty and long-term growth, and is ostensibly aimed at helping the country to avoid the 'stagflation trap' of economic stagnation and growing inflation. The plan is presented as being aimed toward building up the country's immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system.

The plan's ambitious goals include raising industrial output by 30-35 percent over a five year period, creating a socially-oriented 'knowledge economy' via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and a number of other initiatives, including a program aimed at transitioning to a sovereign monetary policy.

Read more: http://sputniknews.com/business/20150915/1026993814/russia-economics-reform.html#ixzz3lkdDq65E

What do you guys think about Glazyev's economic strategy? is it promising? or is it simply unrealistic?

I think it's unrealistic, it promises 6-7% industrial output growth per year but apart from some fluff terms and budget readjustments it doesn't offer anything new.
Besides which investment into education and health care as a means of promoting economic growth will take decades to have an effect, not 5 years.

Putin also promised 6% annual GDP growth when campaigning for re-election. I voted for him on that promise. He didn't hold it - we didn't get near that amount of growth. Of course now we have the Ukraine crisis and anything, but even in the 2-3 years before that, we were underperforming and not achieving much higher than 2% growth.

In general I approve of government economic policy as it has the priorities in all the right places. Promoting industrialization and localization with a free-floating rouble, auto-manufacturing, revival of North Sea sealane, reforms and support for SMEs, focus on big infastructure projects, new railroads and motorways and logistics hubs, new spaceport in Vostochny, high-tech investment funds, consolidation of small state enterprises into larger corporations, promotion of Russian defence/nuclear/energy technology overseas, pipeline construction and new gas/oil field exploitation, support for the nascent wood-processing industry, banning of European agriculture and supporting domestic agriculture, pivot towards promising markets in Asia, Skolkovo and related ventures, free port initiative in Vladivostok, support for promoting tourism, anti-corruption drive, general lobbying for investment from Western and Asian multinationals, titanium valley and aerospace clusters, revival of shipbuilding, rainy day funds that accumulated oil wealth, Eurasian Union integration (even if it can be improved), World Trade Organization membership... and so on.
We're basically doing all the right things, but as events (and our own inefficiencies) would have it - we haven't achieved the targets we set for ourselves and we aren't growing at our full potential.

I think what's needed is to stay the course, shelve unsuccessful projects, expand the fruitful ones further, and keep looking for improvements to make. Like I said, so far a lot of the priority directions and initiatives sound promising; but they still need to be seen through.

So in this light, you can see what my objections to Glazyev's 'plan' might be - what does he propose that isn't already being done? How does he intend to so radically change the situation so as to guarantee 6-7% industrial growth for the next 5 years?
Sounds like a premature declaration built on the basis of immature and undeveloped vague ideas - reeks of populism IMO.

Good post Python. +1

I figure that as most of the world is aiming at self reliance and concentration of domestic consumers, Russia will ultimately do that too through import substitution. Rest will be relied on sales of their energy end products, fuels, medical/construction materials, and heavy industrial goods for exports. These will become more important in the future as well since the aim is self development. I think that is what Russia is currently aiming for. Because, lets face it, domestic consumers account for more tha. 2/3 of Russias GDP, and they are the demand. Always will be. So concentrate on them, and you will be fine. As trade with outside will need to grow in order to grow money supply to increase spending for domestic users, it will have to be the status quo (due to issue of over production already).

I forsee that until the transition takes place, Russia will have a lower GDP for some time. At least till the industries moving to import substitution starts making profit from their development costs. That will take roughly 5 years (that is what most economists are saying).

magnumcromagnon wrote:Estonian farmers protest the food embargo counter-sanctions by Russia...your gonna be protesting more when your gas privilege is cut off in 2019...

And not a single f*ck was given that day. They all love to scream populistic slogans about "Russia bear will pay!" but when it comes down to things that matter we see the result in the video above. Forgive my inhumanity but I won't even care if Estonia, Lithuania and Latvia get flooded.

Glazyev plan doesn't have anything in common with current suicidal economic policy of Russia. How his ideas are received by the liberals, with what rage they talk about him and any of his ideas is a testimony of that. At the same time people like him are the only chance Russia's got if it's to win this war that it's waged against her. Current economic policy is terrible, people talk about import substitution but that substitution is not actually happening. It's not happening because the Central bank and the government with it's dogmatic economic policy is not letting it happen. So if this goes on slowly but surely Russia will die out just like Soviet Union did and for the same reasons: DOGMATICISM. Of course that Putin couldn't deliver the promise of 6% growth, how could he if this certain economic policy preached by liberals has reached dead end and it simply can't achieve any significant growth anywhere on earth. Now what we have is a silly situation were Russia is continuing with this policy in a situation of sanctions like nothing happened. This was the wrong policy even before sanctions but how can you continue with it when those who are controlling the system are blocking you from doing it effectively in any way. I understood Putin position at the start, he didn't want to do any changes because he hoped that there would be some kind of understanding between the parties and life could go on like it was. But now is crystal clear to everyone that we are in pre WWIII stage and nothing of sort wold happen. Sanctions are here to stay, they will be reinforced even more and the only chance for their removal is if Russia beats them, if it shows to the West that it's becoming even stronger because of them. As long as West sees that sanctions are weakening Russia, and they are currently doing that even if not on a great level they will continue with their policy. Good thing is that I think that Putin understands that major changes need to be made but probably is waiting for something to happen so that he can act. I'm looking at Glazyev plan as preparing the public opinion and also the big shots for changes because Glazyev has been getting a lot of publicity lately so this wouldn't have happened if Putin is not taking him seriously. Problem for Putin is how to make necessary changes and at the same time keep oligarchs and so called loyal liberals from rebelling. He would like to make changes but keep them in the fold, persuade them that this has to be done because otherwise there will have to be a purge. Remember when Stalin had his purge, on the eve of WWII and the purge was aimed at Trotskysts. I see very similar situation unfolding here. There are no doubt that many liberals currently in the government, in the Central bank are secret traitors who would if let's say Khodorkovsky came to power immediately change sides, start working with great delight for the new pro western government and talk of Putin as if he is the biggest criminal the world have ever known. So changes will sooner or later, better sooner have to be made if Russia wants to survive. Will a purge be needed to do it that's to be seen.

What makes you think the import substitution isnt working? I have various links from sdelanounas showing import substitution is indeed working. It could be moving much faster than before but current policy is concentrating on paying foreign debt off first.  I dont agree with CBR and its interest rates but they are trying not to increase it while not increasing inflation.

http://sdelanounas.ru/blogs/?search=импортозамещение

The problem will be, due to interest rates being high, the companies who can afford import substitution will clearly be the larger companies. Rostec is one of the top 10 (or so) largest ogranizations, even in profits, so it will be them who will field far more import substitution and creation of new technologies in Russia. Gazprom and Rosneft for various supplies of paets for the oil and gas industries, Rosatom for the various energy technologies, etc. The other thing is foreign companies opening up shop in Russia. US and European companies opening up shops for manufacturing of furniture, automobile engines, pharma, auto parts, heavy industrial equipment, toolings, etc.

I dont see how their economic policy is suicidle.

http://sdelanounas.ru/blogs/67060/

In 3 months around 66 (at least those mentioned under sdelanounas) of import substitution (not new facilities and productions) approved/developed.

So to say import substitution isnt happening is outright wrong. Just possibly slow.

Nikander wrote:Glazyev plan doesn't have anything in common with current suicidal economic policy of Russia. How his ideas are received by the liberals, with what rage they talk about him and any of his ideas is a testimony of that.

Because liberal scum are not 5th columnists they are genuine russians working for russians, right?

His Idea of QE is a bad one. Simple as that. Simply, debt will drastically increase. QE didnt help US or Europe. Just kicked the can.

magnumcromagnon wrote:Estonian farmers protest the food embargo counter-sanctions by Russia...your gonna be protesting more when your gas privilege is cut off in 2019...

Don't see what the heck those guys are even protesting about.

I mean - now they can sell to the Ukraine, tariff-free! Don't they know?

Nikander wrote:Glazyev plan doesn't have anything in common with current suicidal economic policy of Russia. How his ideas are received by the liberals, with what rage they talk about him and any of his ideas is a testimony of that. At the same time people like him are the only chance Russia's got if it's to win this war that it's waged against her. Current economic policy is terrible, people talk about import substitution but that substitution is not actually happening. It's not happening because the Central bank and the government with it's dogmatic economic policy is not letting it happen. So if this goes on slowly but surely Russia will die out just like Soviet Union did and for the same reasons: DOGMATICISM. Of course that Putin couldn't deliver the promise of 6% growth, how could he if this certain economic policy preached by liberals has reached dead end and it simply can't achieve any significant growth anywhere on earth. Now what we have is a silly situation were Russia is continuing with this policy in a situation of sanctions like nothing happened.  This was the wrong policy even before sanctions but how can you continue with it when those who are controlling the system are blocking you from doing it effectively in any way. I understood Putin position at the start, he didn't want to do any changes because he hoped that there would be some kind of understanding between the parties and life could go on like it was. But now is crystal clear to everyone that we are in pre WWIII stage and nothing of sort wold happen. Sanctions are here to stay, they will be reinforced even more and the only chance for their removal is if Russia beats them, if it shows to the West that it's becoming even stronger because of them. As long as West sees that sanctions are weakening Russia, and they are currently doing that even if not on a great level they will continue with their policy. Good thing is that I think that Putin understands that major changes need to be made but probably is waiting for something to happen so that he can act. I'm looking at Glazyev plan as preparing the public opinion and also the big shots for changes because Glazyev has been getting a lot of publicity lately so this wouldn't have happened if Putin is not taking him seriously. Problem for Putin is how to make necessary changes and at the same time keep oligarchs and so called loyal liberals from rebelling. He would like to make changes but keep them in the fold, persuade them that this has to be done because  otherwise there will have to be a purge. Remember when Stalin had his purge, on the eve of WWII and the purge was aimed at Trotskysts. I see very similar situation unfolding here. There are no doubt that many liberals currently in the government, in the Central bank are secret traitors who would if let's say Khodorkovsky came to power immediately change sides, start working with great delight for the new pro western government and talk of Putin as if he is the biggest criminal the world have ever known. So changes will sooner or later, better sooner have to be made if Russia wants to survive. Will a purge be needed to do it that's to be seen.

Less words, and more concrete content.

What does 'Glazyev's plan' entail? What is he proposing that Russia's 'current suicidal economic policy' hasn't tried?

All I hear in your post is a lot of slander, accusations, critisism but little in the way of fresh ideas and proposals; correct me if I'm wrong.

In the Yaroslavl region opened a major garment factory

In Pereslavl-Zalessky, opened the largest garment manufacturing — garment factory "Leia". Prior to this production was in Moscow, the company has worked since 2007.
Area — 2500 sq. m.
Population — 200 production staff.
Mode of operation — seven days a week.
Capacity — 30 000 pieces of garments per month.
Factory engaged in making women's and men's clothing to order, and sells its products wholesale. Our clients are major wholesale distributors, regional trading companies, brands men's and women's clothing.

"Prepreg-SKM" has launched a new product — carbon braided preforms

"ROSNANO" and "Prepreg-SKM" will help to build rockets, bridges, cars and ... career. Portfolio company RUSNANO "Prepreg-SKM", included in the structure of a "Holding company "Composite", has launched a new product — carbon braided preforms of different diameter and surface density.
This woven material made from carbon or glass fibre, is a semi-finished product in the form of a "sleeve" or multi-layer braid. It is used for braiding of long products (up to 15 meters) and complex shapes (e.g. car bumpers).
"Woven preforms is an innovative product for the Russian market. Now his experience in the Russian aircraft manufacturing enterprises in the framework of research. If the tests are successful, in the coming years, the aerospace industry will be the main consumer of braided preforms," said senior process engineer "Prepreg-SKM" Shumakov Anton.
Aerospace braided preforms used to manufacture the spars of the fuselage of the aircraft, elements of aviation engines, helicopter stands, landing gear, propellers, flaps, and power elements of spacecraft design.
Demanded this material also when creating arch bridges, tubes, sports equipment, components for cars and other products and structures.
In automobile manufacturing braided preforms are used for the production of carbon fiber windscreen frame, ultra-light composite disk, design elements, intended to repay shock loads during accidents. Such components in comparison with metal parts much lighter, stronger and have a high resistance.
For the construction of concrete-composite bridges with prefabricated arch structures are made directly at the construction site. Braided sleeve, which forms the backbone of the future product, mounted on the base and fill with concrete. Such facilities are more durable than reinforced concrete and steel structures. In addition, reduced construction time, costs, and operational costs. Currently, the "Prepreg-SKM" are made of braided preforms for future arched constructions of prefabricated bridge, which is planned to be built in Ulyanovsk region.
Among the sports goods manufactured using braided sleeves, Bicycle frame and a hockey stick. Such reinforced clubs are now playing regional teams hockey with the ball in the Ulyanovsk region and the Krasnoyarsk territory.
Carbon preforms are manufactured on specialized equipment, located at the production sites of "Prepreg-SKM" in Technopolis "Moscow". This unique and innovative machine radial weave, full which has no analogue in Russia.
"The machine is able to produce more than 300,000 meters of braided sleeves, braid over 8,000 long-tail snap-ins and 100,000 curved shapes car bumpers" — listed equipment Shumakov Anton.

So we all complain about western MSM? Take a gander at this:
http://m.lenta.ru/articles/2015/09/15/wages/

Now, they mention PPP but said China was in favor of it as well. They didnt use any sources to back it up or mention many numbers. But I decided to look it up and:
http://www.tradingeconomics.com/russia/gdp-per-capita-ppp

And

http://www.tradingeconomics.com/china/gdp-per-capita-ppp

Russia's GDP per Capita PPP terms is quite a bit higher than China's but is slightly lower than China nominal.

Trading economics get their data from official sources like IMF.

So what is this guy saying? Where is he getting his info from? I noticed much doom speech on Lenta so I am thinking it is liberal media of Russia. Because they cannot seem to get their facts straight. These indices takes inflation into example as well.

sepheronx wrote:So we all complain about western MSM? Take a gander at this:
http://m.lenta.ru/articles/2015/09/15/wages/

Now, they mention PPP but said China was in favor of it as well. They didnt use any sources to back it up or mention many numbers.  But I decided to look it up and:
http://www.tradingeconomics.com/russia/gdp-per-capita-ppp

And

http://www.tradingeconomics.com/china/gdp-per-capita-ppp

Russia's GDP per Capita PPP terms is quite a bit higher than China's but is slightly lower than China nominal.

Trading economics get their data from official sources like IMF.

So what is this guy saying? Where is he getting his info from?  I noticed much doom speech on Lenta so I am thinking it is liberal media of Russia. Because they cannot seem to get their facts straight.  These indices takes inflation into example as well.

I do not trust lenta since the interview of Khordokovsky, with that cunt of reporter asking him questions with prejudice like she asked:

"You were unrightfully imprisoned, what will be your future plans regarding this injustice?" Entire big load of horse shit which BitnikGr posted to me for a good laugh.

sepheronx wrote:Russia's GDP per Capita PPP terms is quite a bit higher than China's but is slightly lower than China nominal.

I think you're confused or something.  
All per Capita figures of Russia are higher than China, nominal or PPP.  
Total GDP figures of Russia are MUCH MUCH less than China, nominal or PPP, as China's population is so much larger.

Russia gdp per capita is higher than china due to less population but russia's gdp in terms of ppp is less than china. Its gpd in ppp terms is highest among Europe though , surpassed germany in 2013 .




Obamanomics in 1 Chart

You seem to be right. At least on trading economics data. IMF apparently give China $8800 per capital nominal and $8100 to Russia (after currency exchange drop of course) making China higher.  But trading economics shows a different picture.

The article from lenta is trying to state it is per capita that China are richer on average.

Edit:

MAX, take a look at the trading economic sites

Russia: 23292.91

China: 12608.87

PPP terms.

so called "greatest CBR" - http://ria.ru/economy/20150917/1256593045.html

Buys $10B more US T-Bonds in July.

sepheronx wrote: so called "greatest CBR" - http://ria.ru/economy/20150917/1256593045.html

Buys $10B more US T-Bonds in July.

Expecting an interest rate hike they might have bought it , a tactical move.

CBR has been buying gold for past 1 years and rarely invested in T Bonds

Russia to Spend $38Bln From Reserve Fund in 2015

Read more: http://sputniknews.com/business/20150916/1027090120.html#ixzz3lyllCP5I

MOSCOW (Sputnik) — As of August 31, Russia's Reserve Fund totaled 4.7 trillion rubles, while the National Wealth Fund accumulated 4.9 trillion rubles.

"We will spend 2.5 trillion [from the Reserve Fund] this year," Siluanov told reporters.

He added that the Finance Ministry was planning to keep at least 2 trillion rubles cumulatively in the Reserve Fund and the National Wealth Fund by the end of 2018.

Read more: http://sputniknews.com/business/20150916/1027090120.html#ixzz3lylsSZbf

So if they spend 2.5 Trillion on Reserve fund , from 4.7 only 2.2 Trillion would be left

This news is more stark

Media: The Finance Ministry proposes to increase the retirement age since 2016

http://tass.ru/ekonomika/2268984

For me the solution a way out and to get that 6%, is an industrial revolution in Russia.
and stop overspending on nuclear missiles and building so many warships ,that yes they are
cool and nice.. but Russia don't need them to defend their nation. For example decommisioning
half of their soviet warships will save a LOT of money in budget.. and invest ,invest and invest a lot more in their space program. their semiconductor industry ,their automobile industry , and
home entertainment industry.. of course also food..and creating modern cities. Russia also need to build their technology with aims not only to sell it to China but to the west too.. in case
sanction lifted. All this technology will find a market in ASIA and BRICS nations but also in the west. as Yotaphone2 for example. Russia invest $80 billions every year on its defense industry..
they could cut that number in half by just getting rid of their obsolete navy and keeping a small but modern navy.. like france have. at the moment Russia have 12 destroyers. and about 10,000 sailors in them that Russia needs to pay their salaries too. Just keep only the Kirov class
and decomission all others and reduce in half its corvette fleet.. from 71 to 35. and then you will see a LOT of money that RUssia will save and could re-use on its space industry or semiconductor or any other..

Austin wrote:Russia to Spend $38Bln From Reserve Fund in 2015

Read more: http://sputniknews.com/business/20150916/1027090120.html#ixzz3lyllCP5I

MOSCOW (Sputnik) — As of August 31, Russia's Reserve Fund totaled 4.7 trillion rubles, while the National Wealth Fund accumulated 4.9 trillion rubles.

"We will spend 2.5 trillion [from the Reserve Fund] this year," Siluanov told reporters.

He added that the Finance Ministry was planning to keep at least 2 trillion rubles cumulatively in the Reserve Fund and the National Wealth Fund by the end of 2018.

Read more: http://sputniknews.com/business/20150916/1027090120.html#ixzz3lylsSZbf

So if they spend 2.5 Trillion on Reserve fund , from 4.7 only  2.2 Trillion would be left

At least they are using it rather than sitting on it. But what gets me is that even with trade surplus, they wont put back money. So what are they gonna do? Maybe they should use it as a form of investments? But that makes just too much sense.