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    Russian Economy General News: #8

    GunshipDemocracy
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    Russian Economy General News: #8 - Page 28 Empty Re: Russian Economy General News: #8

    Post  GunshipDemocracy Wed Mar 21, 2018 1:35 am

    Austin wrote:
    External debt has fallen by a quarter to $540 billion and Russia's foreign currency reserves have stabilized at $430 billion. Inflation has plunged to a record low of 2.2 percent from a peak of close to 17 percent three years ago.

    o now you can you see clear why Russia needs liquidity in USD?






    Austin wrote:Interview: Glazyev: cryptorough helps to circumvent sanctions

    Coincidentally Putin last year requested govt/CBR to prepare legal framework for usage of cryptocurriecies and there is Etherenum based test bed in association of Russian banks already.
    Laughing Laughing Laughing
    GunshipDemocracy
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    Post  GunshipDemocracy Wed Mar 21, 2018 2:17 am

    kvs wrote:
    Nabiullina is using the bitter post 1991 experience of Russians with the "wooden ruble" to grab them by the short and curlies.
    Putin is just another Russian citizen who has the memory of bad times but no understanding of its causes.   Such is the case
    for the whole planet and not just Russia.

    +++

    Putin's problem is that he is not a tyrant and is instead stretched n-ways with compromises to keep all the factions from starting
    strife.   Maybe this is why Washington and London are so cocky about starting a war.   They probably expect that at the last
    moment there will be a coup against Putin by all the money holders who do not want to die in a nuclear war.   Of course, these
    NATO idiots are dreaming in multi-dimensional technicolor.

    +1 it is actually how I see things.

    respekt respekt respekt

    and below Khazin, as always interesting. You should like especially the first part Smile


    Mikhail Khazin: The turning point
    https://izborsk-club.ru/14866

    I have already told many times that the dominant political ideology is beginning to change in the world. If in the West from the late 70's, and in the East (in the former socialist bloc) right-liberal ideology dominated in the late 80's, today it starts to shift radically.

    This is best seen in the United States of America, where it is immediately shifted in two directions - from the right-liberal to the left-liberal (Sanders) and from the right-liberal to the right-conservative (Trump). As the economic crisis in the world does not end, then the movement will continue. Where? To the opposite of the right-liberal, that is, the left-conservative direction.

    This direction is personified by ordinary people with a single state in which the left-conservative ideology has been successfully realized - with the Soviet Union. Therefore, while the world elite mainly tries to preserve the right-liberal models, today's image of Russia is associated in people in other countries precisely with the image of the USSR. In a sense, this is his phantom image.

    Accordingly, Russia's image, attitude towards it, has recently improved year by year. And even the bacchanalia, which the right-wing liberals arranged about the Crimea, did not work. Since everyone understands that the return of the Crimea on the basis of referendum results is FAIR, and justice, this is one of the foundations of the left-conservative approach.

    This feeling, a positive shift in attitude towards Russia, arises in any person who is not engaged, who comes to Western countries; it's just felt, especially by those who travel a lot.

    This is clearly seen even in Poland. While Poland is a country that has had many painful moments in its relations with Russia, the main of which, of course, is the 18th century - the partition of Poland. And yet.

    As a result, a rather specific phenomenon has turned out. In connection with the fact that in Russia the policy is implemented by the right-liberal elite, this policy does not support the increase of interest and positive for Russia. Moreover, it struggles with these tendencies. It should be taken into account that since the Western right-liberal elites do not like to digress from the right-liberal principles of their own society, they try very hard to suppress this sympathy. It is from here that sanctions and other anti-Russian actions are growing.

    Why did Putin become the target of sanctions?

    The fact is that personally Putin, as a person, is not a right-liberal, but a right-conservative politician. For this reason, all liberals in the West were very afraid that he might start to press the liberal line from a conservative standpoint. But Putin, who came to power in the early 2000s, as an arbitrator, was at first an arbitrator's view: he believed that he had no right to independently influence the positions of elite groups, and the strongest was just right-liberal.

    But as a result, as the situation develops in Russia and in the world, Putin has a serious internal conflict.

    On the one hand, he did not fully correspond to the increasingly obvious trend, which required him to match the phantom image of the Soviet leader. At the same time, we must understand that the phantom Soviet leader can and must be exclusively phantom Stalin, but Putin has long disowned this image.

    On the other hand, the right-wing liberal elites of the West saw that he was not a right-wing liberal, but a right conservative and feared that at some point in time, given that Russian society was swiftly leaning, he could begin to drift not from conservatism to liberalism , and from the right to the left, that is, it will start moving towards a left-liberal policy.

    This, if I may say so, is an intrigue, within the framework of which this Epistle was prepared.

    If we look at the inside of the Russian political situation, we will see that it too seems extremely curious, since the right-liberal privatization elites in Russia are in a very acute confrontation with an absolutely left-conservative society that is already about 80 percent implicitly, and about fifty percent clearly, supports Stalin.

    In this situation for Putin was a matter of principle. He either had to definitively disown Stalin and, thus, completely close the positive image of Russia, which the public in the West is now forming very harshly; say to them: "No, you were mistaken. I'm not that kind of "- and actually go on about the forces of those who want to remove it. Or he should, on the contrary, say: "If you associate me with Stalin, then I will become Stalin! And then excuse me, who did not hide - I'm not guilty. You yourself wanted it. "

    To this we need to add that the right-liberal elites (which traditionally define our financial and economic policies, primarily through the Central Bank and the government) are extremely active in the anti-Putin election campaign. The basic elements of this policy are aimed at the extermination of small and medium-sized businesses (the Ministry of Finance is actively engaged with the Tax Service and the Central Bank) and clamping down the rights of pensioners and the poor in general. Moreover, the drop in the standard of living and the increase in the number of poor people are recognized even as official and semi-official, that is, related to the government and statistical organizations. Five years of continuous economic recession, too, says a lot about.

    What do we see in this situation in the Address?

    Putin makes a speech in which a fundamentally important thing is determined. He says that we must fight poverty. That is, he directly criticizes the Central Bank and the government and says that the new government will have to do. Moreover, the agenda is not formulated right-liberal (within the framework of which "losers" do not have any sense to help), and the classical left-conservative one. Of course, this can be interpreted as demagoguery, but, given the content and, above all, the above considerations about the trends, maybe this is already not so.

    In the economic part, he always said things that directly contradict the current policy of the current government. This is a fundamental thing.

    Putin directly says that the USSR and Russia are one and the same. He says that in the West the USSR has always been called Soviet Russia. And this is a direct signal! He actually says that yes, guys, your association of Russia with the phantom image of the USSR, correct!

    But if this is so, then he had to demonstrate Stalin's rhetoric, Russia's readiness to uphold justice on a global scale. And this we see at the end of the Epistle - it's not even the 70's; this is the 30th, the end of the 40's - the beginning of the 50's in rhetoric. The West is very coldly broadcast: we can do it to you, we can do it, we can do it. At the same time Putin directly says: "We will not do this on our own initiative. But you yourself are bursting! "

    Any person who read a lot of such speeches (I'm not talking about what I wrote), draws attention to the following. This speech is not about blackmail and not about threats. I do not rule out the possibility that some of what Putin said does not correspond to reality at all. The specifics of these security issues were clearly oriented towards some people in the West who, either explicitly or implicitly, asked Putin some questions that prompted him to change his position. And in his words they found the answer to this request. But since we do not know these requests, we do not understand the answers. Fundamentally important is another. Rhetoric and style were absolutely Stalinist.

    Apparently, Putin got so bad that he made some internal decisions for himself.

    In particular, the decision that with this disgrace, which has lasted for so long and which has become simply indecent, it is simply impossible to have more. Because it does not fit people in the West to explain that they should not take measures to remove the leader of another state. We are a sovereign state. What kind of person is there before the head is identified? We elected him our internal procedures. Be kind to deal with it. You do not want to deal with him? So you do not want to deal with us, with the whole country.

    And what are the translations of the right-liberal financial elites of the West? They tell us: Russia is a good country; we are ready to deal with it, ready to take your resources into your management, but you have a wrong leader; we will now make efforts to remove it; we will now introduce individual sanctions and everything else.

    Guys, it's none of your business! We are a sovereign state. Therefore, you are walking in the forest! I will remind you that Stalin was extremely abhorrent to any attempt to humiliate the USSR as a power!

    The message perfectly fits into the logic, which can be described by basic, reference points, such as the Munich speech of 2007 and the Valdai speech of 2014. And in the first, and in the second, and in the third, yesterday's case, it was an appeal to the Western elites. In 2007, the Western elites were told: "Guys, you are violating the agreements of the early 90's." The Western elites replied: "You lost the war, so your opinion is of no interest to anyone." The result was an attempt to press this our opinion first in Georgia, and then in Ukraine. Both wars, Georgia 2008 and Ukraine 2014, began in countries that the West tried to drag into NATO.

    At the first expansion of NATO, we were still silent. With the second expansion of NATO, when the Baltic came in, we were already making noise, but we were ignored. The West failed to implement this combination for the third time.

    In 2014, speaking at the Valdai Club, Putin also turned to the West. Then there was the same interpretation of his speech - that these are threats. And these were not threats, they were the answers to those questions that Putin, obviously, got through unofficial channels.

    Today Putin gave the final answer: "Guys, so it is impossible; This is not done! If you push us into this field - well, we will. Moreover, not only does our society require a left-conservative policy, but Western society requires us to become a leader, the flagship of the left-conservative movement. " And all these videos about weapons are nothing more than a demonstration: by force you will not kill this political vector!

    Thus, in reality we see a very interesting picture, very similar to the one that was in the 30s, when practically all the more or less well-known countries of the world had fascist regimes. In the second half of the 1930s, only two states remained in Europe, in which there was democracy in the modern sense of the word - Switzerland and Czechoslovakia. Western and central Europe is now facing the same in stylistics events.

    Of course, all this is a form of interpretation. But in the next few months we will see whether it is right or not. One thing is already clearly understood - it is impossible to deal with the right-liberal elites (that is, the financial elites) in the West. This can be seen both in the sanctions and in the decision of the Stockholm arbitration on Gazprom, and on the WTO too: they are trying to bring us claims for violations of the rules, while they themselves insolently ignore these rules in the framework of sanctions.

    One can love or not love Putin, but he is quite an adequate person to understand that he should stand between the two ice floes, the right-liberal privatization elite (which, moreover, under the pressure of his Western curators, with the same Putin fights defiantly) and left-conservative people for a long time is impossible. And since it is absolutely impossible to influence the people, it remains to abandon the principle of non-interference, which he accepted in 1999, when he agreed to the presidency, and begin to clean out the right-liberal part of the modern Russian elite. Moreover, firstly, it gives for this purely formal, legal grounds (corruption, theft, etc.) and, secondly, there is support in the West, in the form of those elites that support Trump.

    And the winnings can be very large, as the right left-conservative policy will give us a colossal support all over the world.























    Briefly about the last elections


    Подробнее на https://khazin.ru/articles/11-analitika-i-prognozy/57706-korotko-o-proshedshikh-vyborakh
    As I have explained many times, the key issue of our days is the question of modernization. That is, WHO and HOW.

    We got the answer to the first one. And in all senses, and in turnout (since its colossal growth was visible, as they say, with the naked eye), and in voices for Putin.

    Moreover, Putin (as it turns out, very prudently) did not produce any economic program. Many called it a mistake and Putin was criticized, but today, with the result that we saw, it means that his hands are completely untied. Including, on the part of liberal elites. On what night, at Solovyov, said Nikita Mikhalkov . By the way, no one dared. 

    But with the second question, on the contrary, there are problems.

    I thought that Grudinin would get more and then the "left" roll could be clearly predicted. In reality, it did not happen. You can, of course, engage in conspiracy and start talking about the fact that he received significantly more, say, 20%, but, artful officials ... and so on. and so on, but ... it turns out, frankly, not convincingly.

    True, as compensation, we received not just a disastrous, but an enchantingly failed result of the liberals. And why in such a situation should there be at least one liberal in the government, a question to which there is no answer and will not be. 

    Well, the last.

    Putin clearly said what I wrote: that his program of action will be written just now, before the inauguration, but after the elections. Therefore, all the events of recent months and the results of the elections, of course, should be reflected on it.
    Подробнее на https://khazin.ru/articles/11-analitika-i-prognozy/57706-korotko-o-proshedshikh-vyborakh
    Kimppis
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    Post  Kimppis Wed Mar 21, 2018 2:37 pm

    ZoA wrote:
    Kimppis wrote:How is Germany an easy target?

    You sad it yourself, they are stagnant, Russian economy was already ahead of it not to long ago, before Nabiullina started to fuck with it really bad, and even at this time German economy is only about tenish % ahead of Russia in PPP terms.

    Also > 6% annual GDP growth for Russia is perfectly achievable, all that is required is that key Russian economic institutions not be controlled by pack of treasonous incompetent crooks. With > 6%/annum of growth Russia could easily achieve Japan level of PPP GDP in the next decade. Alas Putin either has no intelligence or balls to do what must be done to get to that goal.

    Yeah well, on the other hand that is true. I mean Russia will almost certainly achieve it, because it was already so close a few years ago. But in itself, it's still an achievement.

    I really don't think 6% is realistic, Russia is simply too developed for that kind of growth rate. Even China is not growing much faster than that, while it's still quite a bit less developed on average and China has been and is a huge positive outlier overall.

    You should compare Russia to something like Poland, countries that have roughly similar living standards etc. 3-4% on average annually would be great.
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    Post  miketheterrible Wed Mar 21, 2018 4:44 pm

    I understand most people's concern regarding the CBR. I guess time will tell what will happen now that Putin was re elected. But most of the plans are rather solid - infrastructure investments, education investments and industrial incentives.

    The only alternative though to the lending rates by the banks for investment money, is either government lending (which was posted earlier) or Venture Funds. I have zero idea where venture funds are right now in Russia, and government seems it will give great rate loans to various programs.

    I think the plans are solid. But I agree with others here in saying that if the lending rates were much lower, it would also help boost potential growth (I think business loan rates should be much lower, not interest rates all across the board.
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    Post  miketheterrible Wed Mar 21, 2018 6:54 pm

    Russians real income increased by 4.4%
    https://m.ren.tv/novosti/2018-03-21/realnyy-dohody-rossiyan-vyrosli-na-44
    Kimppis
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    Post  Kimppis Wed Mar 21, 2018 8:05 pm

    Thanks for that info, Mike.

    So it seems economic growth is now much faster than 12 months ago? GDP was up only 0.6% in Q1 2017, IIRC.

    January 2018 growth was 2%, but how was February? I mean fuck English-language TASS. They have an economic section, but it's mostly a mess. Often important figures are not mentioned at all, but they surely report about increases in palm oil imports. English Rosstat is even more useless. I'm going to start learning Russian very soon, but right now this sucks. I'd really like to see all those up-to-date macro figures, but without any Western BS etc.

    I know that Google and Yandex machine translators exist and they are quite useful, but translating whole sites is still pain in the ass.
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    Post  miketheterrible Thu Mar 22, 2018 6:15 am

    Wait till awara group releases data.
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    Post  GarryB Thu Mar 22, 2018 7:15 am

    Create a bookmark for this page:

    https://translate.yandex.ru/translate

    and put the link on your quick bookmarks toolbar.

    To open a whole webpage copy the webpage link you want to open into memory by highlighting it (in the address bar or its link) and then pressing control and c.

    Click on the quick bookmark button for the page above.

    When it opens there is an area across the top... from left to right it says Yandex and then there are two words that are links or buttons.. one says something like tekct (meaning text) and Cant (whole webpage)... if you have a piece of text to translate click on the tekct link and paste the Russian text in the left box and it should translate in the other box... you can click on the languages for each box so you can have it translate into any language you want or from any language listed.

    Click on Cant or leave Cant selected and in the text box next to it paste the webpage link and then click the button next to that text box.

    Below the top area are two tabs... the left one should say original (but in russian): Russian, and the other should say translation (but in russian) English.

    The webpage will appear in that second box in the original russian and then a percentage number will appear next to the tab as it translates.

    Obviously it can't translate pictures or text in pictures or adverts, but it will go through and translate the body text and menu links... if you scroll down it might appear at first in Russian but will be translated too.

    If you click on the tab you can change the languages... but they are all in Russian cyrillic.

    Hope you find this useful.
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    Post  Kimppis Thu Mar 22, 2018 2:35 pm

    Thanks Garry, I already knew most of that, but it reminded me that I really need to use Yandex more.
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    Post  miketheterrible Thu Mar 22, 2018 4:28 pm

    To support my fellow comrades, I use the Yandex services entirely besides the full search function. I use Yandex browser, Yandex mail, Ynadex drive, etc. All fantastic services. It has auto page translator built in as well.
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    Post  GunshipDemocracy Thu Mar 22, 2018 11:35 pm

    Lads, tomorrow 23rd CBR decision about key interest rate...
    Let me guess 0,25%? of Putin's effect took already place?


    Dvorkovich: the regulatory framework for blockchain in Russia can be ready in the coming months

    Подробнее на ТАСС:
    http://tass.ru/ekonomika/5055165

    MOSCOW, March 22. /TASS/. Regulatory framework to make full use of blockchain technology in Russia could be ready in the coming months. This was announced by Deputy Prime Minister Arkady Dvorkovich during a meeting with students of the Russian economic University. G. V. Plekhanov.


    Chain of bureaucracy: how the blockchain could make a revolution in document management
    "With regard to the blockchain. Be sure to create a regulatory framework. Not too detailed, not too detailed, so as not to limit too much the implementation of projects. To do it as quickly as possible... we're doing that right now. I hope in the coming months of the legislative problem in the blockchain decide", he said.

    The Ledger ("block chain") is a decentralized database, which storage device is not connected to a common server. The main advantage of the blockchain - secure, since nobody can falsify or spoof recorded in the blockchain information. Another advantage of this technology is the lack of need for mediators, as a third party to confirm information transmission is not required. On the blockchain, in particular, built, and operates the system of electronic money - bitcoin and its analogues.

    Today, however, the scope of application of the blockchain is much broader. In Russia they are seriously interested in both commercial and state structures and officials. First Deputy Prime Minister Igor Shuvalov considers the use of the blockchain for exit of the Russian economy to a new level. The Bank of Russia is considering the establishment-based national cryptocurrency blockchain in the framework of the development of the system of transmission of financial messages.Created CBA, the Association "FINTECH" developing and testing the Russian system "Masterchain", which will be able to use Russian banks for transactions between themselves.

    In the field of protection of intellectual property (IP) technology will ensure safe storage and timely update of any IPRs - patent in high-tech development to music. In addition, in February has been launched a joint project of the Federal registration service, Vnesheconombank and Agency for housing mortgage lending on the use of blockchain technology for registration of contracts of participatory construction.

    According to the head of Sberbank German Gref, on the introduction of blockchain technology in Russia will need eight to 10 years. Previously, he noted that Russia is the world's largest number embedded in the test mode of the projects on the blockchain.

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    Post  Kimppis Fri Mar 23, 2018 5:46 pm

    Yeah, and I "love" their "conservatism". This is literally nothing new, they state the same shit every time, but still:

    http://tass.com/economy/995777

    "In 2018-2020, GDP will grow by 1.5-2%, which corresponds to the potential growth rate of the economy."

    "The Bank of Russia forecasts annual inflation to be 3-4% in late 2018 and remain close to 4% in 2019."

    "Last week, the Central Bank did not rule out economic growth of 0.4% in January-March 2018 in quarterly terms, and 0.5% in April-June." (So 0.9% for H1 2018?)

    "Remaining structural constraints."


    They sound like the Western media. What is that 1.5% growth? That is not enough! Those inflation spikes never happen. The inflation was suppose to jump back to 4% early this year, it didn't happen. I know that their predictions have generally been too pessimistic and the Ministry for Economic Development or whatever is more optimistic, but man... They keep the rates so ridiculously high, because they underestimate the Russian economy, there was a massive slowdown during the second half of last year... so I really don't know anymore
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    Post  miketheterrible Fri Mar 23, 2018 5:56 pm

    Kimppis wrote:Yeah, and I "love" their "conservatism". This is literally nothing new, they state the same shit every time, but still:

    http://tass.com/economy/995777

    "In 2018-2020, GDP will grow by 1.5-2%, which corresponds to the potential growth rate of the economy."

    "The Bank of Russia forecasts annual inflation to be 3-4% in late 2018 and remain close to 4% in 2019."

    "Last week, the Central Bank did not rule out economic growth of 0.4% in January-March 2018 in quarterly terms, and 0.5% in April-June." (So 0.9% for H1 2018?)

    "Remaining structural constraints."


    They sound like the Western media. What is that 1.5% growth? That is not enough! Those inflation spikes never happen. The inflation was suppose to jump back to 4% early this year, it didn't happen. I know that their predictions have generally been too pessimistic and the Ministry for Economic Development or whatever is more optimistic, but man... They keep the rates so ridiculously high, because they underestimate the Russian economy, there was a massive slowdown during the second half of last year... so I really don't know anymore

    were did you get that part in this article?

    MOSCOW, March 23. /TASS/. The growth rate of Russia’s GDP, according to the Central Bank, will reach 1.5-2% in 2018-2020, the regulator said on Friday after the meeting of the Board of Directors.

    "The Bank of Russia’s general perceptions of the Russian economy’s growth have remained unchanged. The Bank of Russia has slightly raised the oil price in its baseline scenario. However, it has not entailed any significant review of the Russian economy’s growth rate in the medium term due to its decreased sensitivity to oil price changes and remaining structural constraints. In 2018-2020, GDP will grow by 1.5-2%, which corresponds to the potential growth rate of the economy," the regulator said.

    According to the Central Bank, "In January- February, the annual industrial production growth returned to the positive territory. The period also saw a continued growth in investment. The recovery in consumer demand is supported by rising real wages and expanding retail lending."

    It was reported earlier that the Russian Central Bank lowered the key rate to 7.25% per annum from 7.5% one and a half months after the previous cut.

    "Annual inflation remains sustainably low. Inflation expectations are diminishing progressively. The Bank of Russia forecasts annual inflation to be 3-4% in late 2018 and remain close to 4% in 2019. In this environment the Bank of Russia will continue to reduce the key rate and will complete the transition to neutral monetary policy in 2018," the regulator said in a statement.

    Edit: I see you posted it regarding this link:

    http://tass.com/economy/995767

    I think were they get their numbers from is they look at last year, and repeat it. So its the CB being somewhat conservative regarding this. If they lowered the key rate to 5% guarantee there would be quite a shot up of the GDP growth. Anyway, it appears that Russia is just bracing itself for potentials rather than be all chimy about things saying "all will be fine". So they see about 1.5 - 2% growth per year it seems.
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    Post  Kimppis Fri Mar 23, 2018 6:22 pm

    Yes it was from another article, didn't realize that. And you're correct, RCB's predictions are always very clearly the most conservative ones, they also seem to just copy-paste them from last year. They will keep lowering the rates, it just could happen faster, they'll get there eventually. It's just that those statements always sound so unnecessarily pessimistic...
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    Post  Austin Fri Mar 23, 2018 6:44 pm

    Eyewatering budget cost of Putin's spending pledges detailed by Rosbank report

    http://www.intellinews.com/eyewatering-budget-cost-of-putin-s-spending-pledges-detailed-by-rosbank-report-138722/?source=russia
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    Post  GunshipDemocracy Sat Mar 24, 2018 12:00 am

    Austin wrote:Eyewatering budget cost of Putin's spending pledges detailed by Rosbank report

    http://www.intellinews.com/eyewatering-budget-cost-of-putin-s-spending-pledges-detailed-by-rosbank-report-138722/?source=russia


    Austin - this is my opinion about article not about you of course Smile





    Who and why?

    Author Ben Aris
    Mr. Ben Aris serves as Editor-in-Chief at bne Ltd. Mr. Aris is the editor and an Eastern Europe specialist. The third longest serving foreign correspondent in Russia, He has lived and worked in Moscow between 1993-2003, where he was bureau chief for the Daily Telegraph as well as a contributing editor at The Banker, Euromoney and The Business. He is also a regular contributor to many of the best-known international business titles such as The Wall Street Journal, The .
    https://www.bloomberg.com/research/stocks/private/person.asp?personId=54421235&privcapId=54344356&previousCapId=54344356&previousTitle=bne%20IntelliNews


    Rosbank after wiki:
    Rosbank (Russian: Росбанк) is a Russian universal bank whose majority shareholder is the international financial group Société Générale.

    Ergo: So we got US propagandist speculating about Sogiete Generale report. Note both countries are in state of war with Russia. I seriously doubt that Goebbels would be positive about Stalin's decisions anyway.







    WRT article:

    1.

    The cost of the economic reforms announced by president Vladimir Putin during his controversial State of the Nation speech amounts to some RUB20.5 trillion ($355bn), a figure that is in excess of this year’s entire budget spending plan, according to a report released by Rosbank on March 22.

    Putin laid out a long shopping list of social spending initiatives that economists say will be hard to fulfill given the reduced budget revenues.

    The additional cost of the largely social spending and large infrastructure projects outlined in Putin’s speech would be RUB20.5bn in the period of 2018-2024, according to Rosbank's estimates.

    +

    2.
    Even if the sum is large and the funding sources are obscure, the actual plan, if even partially fulfilled, could be transformative. Of the RUB20.5 trillion of new spending, RUB8.4 trillion is to go on developing social and transport infrastructure, while there is RUB5.2 trillion earmarked for health care, RUB3.6 trillion for education and RUB3.4 trillion for improving the demographic situation, according to Rosbank's report entitled "Russia after the elections" and prepared by Rosbank economists Evgeny Koshelev and Anna Zaigrina.

    The Rosbank team estimate the funding will increase the total government spending to 34% of GDP and that one possible scenario for funding it out of existing revenues could come at the expense of reducing social spending by RUB7.8 trillion, defense spending by RUB6 trillion, an increase in tax revenues by RUB4 trillion and an increase in the non-raw-material tax base by 2.5-3% annually to produce another RUB4 trillion over six years.




    Manipulation no 1. comparing 6 year's budget investment plan with one years budget
    Manipulation no 2. economists what exactly economists? This was not mentioned. those economists that stated in 2014 that Russian economy doesn't exist?
    Manipulation no 3.  "given reduced budget revenues" - if economy grows revenues grow too,what reduction did they mean?
    Manipulation np 4  34% of budget is 5,6% of yearly budget for 6 years  NOT tsking into account revenues growth. With 4% annual GDP growth budget revenues grow by ~ 27 % in six years.
    Manipulation no 5. Actually large part of spending is for social programmes.  and "analysts" seek to save form what?! "expense of reducing social spending by RUB7.8 trillion"
    Manipulation no 6.   Unlikely crude oil goes down. Budget is calculated $40 barrel. So there are trillios Rubles yearly more to INVEST not "spend" as they call it.


    Well wording is not coincidentally as is - this is manipulation to tell Ruskies Putin will fuck you, West is your friend Smile
    GunshipDemocracy
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    Russian Economy General News: #8 - Page 28 Empty Re: Russian Economy General News: #8

    Post  GunshipDemocracy Sat Mar 24, 2018 12:04 am

    Kimppis wrote:Yes it was from another article, didn't realize that. And you're correct, RCB's predictions are always very clearly the most conservative ones, they also seem to just copy-paste them from last year. They will keep lowering the rates, it just could happen faster, they'll get there eventually. It's just that those statements always sound so unnecessarily pessimistic...  

    IMHO better be pessimistic and end up well the other way around:) Seriously Look at geopolitics: UK tensions, EU tensions, US Fed increased interest rate. In volatile market CBR takes this into consideration.





    miketheterrible wrote:

    I think were they get their numbers from is they look at last year, and repeat it.  So its the CB being somewhat conservative regarding this.  If they lowered the key rate to 5% guarantee there would be quite a shot up of the GDP growth.  Anyway, it appears that Russia is just bracing itself for potentials rather than be all chimy about things saying "all will be fine".  So they see about 1.5 - 2% growth per year it seems.

    True but if you want to breakthrough an improved contry's position in world economies' ranking you need to grow faster. Much faster. Investment policy and opening new markets is definitely good way the question is who will oversee this?
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    Post  kvs Sat Mar 24, 2018 5:07 am

    GunshipDemocracy wrote:
    Austin wrote:Eyewatering budget cost of Putin's spending pledges detailed by Rosbank report

    http://www.intellinews.com/eyewatering-budget-cost-of-putin-s-spending-pledges-detailed-by-rosbank-report-138722/?source=russia


    Austin - this is my opinion about article not about you of course Smile





    Who and why?

    Author Ben Aris
    Mr. Ben Aris serves as Editor-in-Chief at bne Ltd. Mr. Aris is the editor and an Eastern Europe specialist. The third longest serving foreign correspondent in Russia, He has lived and worked in Moscow between 1993-2003, where he was bureau chief for the Daily Telegraph as well as a contributing editor at The Banker, Euromoney and The Business. He is also a regular contributor to many of the best-known international business titles such as The Wall Street Journal, The .
    https://www.bloomberg.com/research/stocks/private/person.asp?personId=54421235&privcapId=54344356&previousCapId=54344356&previousTitle=bne%20IntelliNews


    Rosbank after wiki:
    Rosbank (Russian: Росбанк) is a Russian universal bank whose majority shareholder is the international financial group Société Générale.

    Ergo: So we got US propagandist  speculating about Sogiete Generale report. Note both countries are in state of war with Russia. I seriously doubt that Goebbels would be positive about Stalin's decisions anyway.







    WRT article:

    1.

    The cost of the economic reforms announced by president Vladimir Putin during his controversial State of the Nation speech amounts to some RUB20.5 trillion ($355bn), a figure that is in excess of this year’s entire budget spending plan, according to a report released by Rosbank on March 22.

    Putin laid out a long shopping list of social spending initiatives that economists say will be hard to fulfill given the reduced budget revenues.

    The additional cost of the largely social spending and large infrastructure projects outlined in Putin’s speech would be RUB20.5bn in the period of 2018-2024, according to Rosbank's estimates.

    +

    2.
    Even if the sum is large and the funding sources are obscure, the actual plan, if even partially fulfilled, could be transformative. Of the RUB20.5 trillion of new spending, RUB8.4 trillion is to go on developing social and transport infrastructure, while there is RUB5.2 trillion earmarked for health care, RUB3.6 trillion for education and RUB3.4 trillion for improving the demographic situation, according to Rosbank's report entitled "Russia after the elections" and prepared by Rosbank economists Evgeny Koshelev and Anna Zaigrina.

    The Rosbank team estimate the funding will increase the total government spending to 34% of GDP and that one possible scenario for funding it out of existing revenues could come at the expense of reducing social spending by RUB7.8 trillion, defense spending by RUB6 trillion, an increase in tax revenues by RUB4 trillion and an increase in the non-raw-material tax base by 2.5-3% annually to produce another RUB4 trillion over six years.




    Manipulation no 1. comparing 6 year's budget investment plan with one years budget
    Manipulation no 2. economists what exactly economists? This was not mentioned. those economists that stated in 2014 that Russian economy doesn't exist?
    Manipulation no 3.  "given reduced budget revenues" - if economy grows revenues grow too,what reduction did they mean?
    Manipulation np 4  34% of budget is 5,6% of yearly budget for 6 years  NOT tsking into account revenues growth. With 4% annual GDP growth budget revenues grow by ~ 27 % in six years.
    Manipulation no 5. Actually large part of spending is for social programmes.  and "analysts" seek to save form what?! "expense of reducing social spending by RUB7.8 trillion"
    Manipulation no 6.   Unlikely crude oil goes down. Budget is calculated $40 barrel. So there are trillios Rubles yearly more to INVEST not "spend" as they call it.


    Well wording is not coincidentally as is - this is manipulation to tell Ruskies Putin will fuck you, West is your friend Smile


    +1000000

    Pure BS. Under Obama and Trump the USA can run 1.5 trillion dollar deficits (with a budget of 3.7 trillion dollars) and everything is
    hunky dory. But Russia can't even up its spending over a 6 year period because "bad things will happen".

    These "bad things" are Russia's GDP growth will be higher and development levels will increase. Everything is about the wants
    and needs of NATO.
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    Post  Kimppis Mon Mar 26, 2018 3:26 pm

    LOL, that's a good list, GunshipDemocracy.

    It's obvious that a solid level of economic growth (3-4% per annum) is a requirement, Putin expects that to be the case. But of course those Western experts "calculate" that it's impossible, stagnation is inevitable, because no muh "structural reforms".

    I also just read an article that summarized how succesful Putin's previous term, i.e. how well his "May Decrees" or whatever, were fulfilled. The site was actually anti-Putin (although not pro-Western). But despite that and despite all the sanctions and and an actual collapse in oil prices, Russia did quite well. I think the biggest failure was the fall in real incomes.

    Now the situation is different. The economy has adjusted to the new reality. The first, the main stage, of military modernization is almost complete, they are ready for the low oil prices, the shock from 2014-15 is history, inflation is low and Russia knows that cheap Western credit won't be available. WW3 might of course start tomorrow, but Putin's last term could actually be quite stable for Russia. OK, maybe I'm too optimistic, but there's a real chance... That said, I realize that his previous term was stable as well internally, very stable actually, but it's possible that the international situation can't get much worse at this point and/or it will atleast matter less for Russia and its internal development.
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    Post  Austin Tue Mar 27, 2018 1:46 pm

    Golikova: implementation of strategic tasks will require additional expenses of 8 trillion rubles

    Подробнее на ТАСС:
    http://tass.ru/ekonomika/5070583

    MOSCOW, March 27. / TASS /. The implementation of the strategic tasks set by the president will require pre-payments in the amount of 8 trillion rubles.

    This was stated by the head of the Accounts Chamber of the Russian Federation Tatyana Golikova at an expanded meeting of the board of the Ministry of Finance.

    "To realize national goals and strategic tasks, we estimate the amount of additional budget expenditures, it is clear that there are different estimates for the next 6 years, about 8 trillion rubles," Golikova said.

    According to her, the amount of expenditures for these purposes in the consolidated budget will be even greater. "In order to effectively implement the priorities assigned by the president of the country, it is necessary to think over the mechanism for their implementation, since the existing state programs do not cover the resources of the regions," she added.

    According to Golikova, Russia needs economic growth rates above 4% per year. "And given that one-time in one year does not reach such rates of economic growth, therefore in subsequent years it will be necessary to catch up." Growth rates above 4% were in Russia for the last time in 2011, "Golikova said.

    As noted by the head of the Accounting Chamber, labor productivity as a whole in the economy should grow at a rate of 5-6% per year. She also believes that the necessary condition for achieving such growth rates of labor productivity is an increase in investment activity. "Analysis shows that Russian enterprises and organizations have financial resources.As of January 1, 2018, the volume of funds on the accounts of organizations was estimated at 9.5 trillion rubles," she said.
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    Post  Austin Tue Mar 27, 2018 1:47 pm

    8 trillion comes to $ 136 billion over next 6 years .....not a big amount if average growth rate of 4 % can be achieved for next 6 years
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    Russian Economy General News: #8 - Page 28 Empty What Russia Needs to learn From Gaddafi’s Mistakes

    Post  par far Wed Mar 28, 2018 1:21 am

    Good article explaining Libya, if Gaddafi was smart he should have put all the gold in Chinese or Russian banks.

    https://www.globalresearch.ca/what-russia-needs-to-learn-from-gaddafis-mistakes/5633755
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    Post  Big_Gazza Wed Mar 28, 2018 3:45 pm

    To a large degree I blame Medvedev. That stupid Atlantic-Integrationist clown allowed himself to be fooled by the insincere honeyed-worded from the NATOstani whores. He should have instructed Russia's UN representative to veto the resolution and declared his support of the Libyan state against foreign-backed Wahabbi insurgents. The blood of the Libyan Jamahirya and its people are on his hands..
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    Post  Austin Thu Mar 29, 2018 8:25 am

    May considers banning City of London from selling Russian debt

    PM to investigate clamping down on movement of Russian money through London markets

    https://www.theguardian.com/uk-news/2018/mar/28/may-considers-banning-city-of-london-from-selling-russian-debt

    Theresa May has agreed to look into imposing a ban on the City of London from helping Russia to sell its sovereign debt, which prop ups the Russian economy.

    Last month, City clearing houses, working alongside a major sanctioned Russian bank, helped issue $4bn (£2.83bn) of eurobonds to finance Russian sovereign debt, of which nearly half was sold in London markets. Nearly half the debt was bought by London-based investors, predominantly institutional investors.

    A loophole in EU and UK legislation has allowed sanctioned Russian banks, primarily VTB bank, to act as the main organisers – known as book runners – for the issuance of Russian debt.

    A public call for the loophole to be closed has been made three times in the past week by the foreign affairs select committee chairman, Tom Tugendhat.


    Guardian Today: the headlines, the analysis, the debate - sent direct to you
    Read more
    On each occasion ministers seemed to be unaware of the issue, but the foreign secretary, Boris Johnson, last week described the idea as interesting. Speaking to the liaison committee of MPs on Tuesday, the prime minister said she would report back on the policy options.

    The foreign affairs select committee is setting up an inquiry into how the UK financially props up Vladimir Putin’s allies, and the measures the UK has taken to clamp down on corrupt Russian money in London.

    Tugendhat has been briefed by a British research fellow at the Harvard Society of Fellows, Emile Simpson, who has argued Russia’s greatest weakness is its dependence on western investors. He contends a policy blindness leads the west to sanction individuals, and sometimes sectors, but not to look at sanctioning the Russian state as a whole.

    He said: “At present, Russia can borrow in EU and US capital markets despite western sanctions and then can support the sanctioned Kremlin-linked banks and energy companies that can no longer do so”.

    Tugendhat has proposed that Russian bond sales are no longer made available to key western clearing houses such as Euroclear and Clearstream, making them effectively untradeable on the secondary market and so deterring the majority of EU and US investors from buying them.

    Last month’s sale was specifically skewed to make it attractive for Russian citizens living overseas to repatriate their money to Russia, a long-term goal of Putin.

    Urging the foreign secretary to look at the issue, Tugendhat said: “One of the ways that people are getting their money out of this country is by allowing Russian sovereign debt to be sold in the UK, and that debt to be used to reimburse Russians, in a way, to bring back their money onshore, in Moscow terms. As that gold is moving towards Moscow, we are, quite extraordinarily, enabling those bond auctions, those debt auctions.”

    Russia has made a point of emphasising western financial support for Russian bonds.

    Citing interest from German investors, Russia said on Tuesday it may return to foreign debt markets later this year with bonds in different currencies and maturities.

    Russia has relatively low public debt levels ($122bn in domestic debt and $38bn in eurobonds as of the end of the third quarter of 2017), but it still needs to issue hard currency debt to service its external debt obligations.

    Simpson claims the loophole “all but confirms Putin’s assumption that western leaders are so nervous about upsetting financial markets that they will forfeit the only serious weapon they have to push back on illegal Russian activity short of military means”.

    Any sanctions are likely to have a swift impact. Clearstream has in the past been penalised by the US for breaking the Iranian sanctions regime, and had to pay a $152m fine to the US Treasury in 2014.

    Critics of the proposal will claim that sanctions are not realistic and Russia would anyway turn further to China to sell its bonds. A semi-classified US Treasury study in February, ordered by Congress, appeared to come down against sanctioning debt, saying it would disturb financial markets worldwide and damage asset managers.

    Foreign investors hold more than a third of Russian debt.
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    Post  ZoA Thu Mar 29, 2018 9:03 am

    Russian government is stupid to sell it's bonds in London thus allowing City of London kleptocrats to collect fees on those sales. UK government is stupid to attempt to prevent those sales that benefit them. I hope they ban them, that would be one more way  sanctions would actually benefit Russia and undermine Russian neoiberal faction..

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