Russian Economy General News: #8

Today's threatened sanctions go on the back burner, ready to be used if needed. Rouble and Moscow stock market up.

https://www.zerohedge.com/news/2018-04-16/trump-holds-plan-more-russia-sanctions-russian-stocks-ruble-jump

Unfortunately, they managed to gain full control of WTO and international trade. Like it or not. So Rusal and all Russian companies will need to take extra measures and develop plan out of this mess by moving away from US. But that is hard when the rest of the world relies on US. I wish it wasn't true but it is, and hence why so few nations back up Russia over this ordeals. They are afraid of being sanctioned too.

The US only has control where the world lets it have control... and that wont change if Russia keeps being their bitch.

Time for change.

Russia should not react to sanctions, they should lead with sanctions against those countries that impose sanctions on Russia... Russia is better off ignoring such countries and looking elsewhere for trade partners... there are plenty. They are not the richest countries in the world but there is plenty of potential.

Keeping sucking up to the US means they keep control and they stay rich... developing with other countries means Russia cannot be controlled by the west and the countries they trade with wont be held back the way the west is trying to hold back Russia... a win win... for everyone except the west.

https://iz.ru/731911/tatiana-gladysheva/rossiiane-perevodiat-vklady-v-gosbanki

The volume of citizens' funds in banks with state participation increased by more than 10% and reached 18.8 trillion rubles

As of March 2018 on deposits is 25.4 trillion rubles of Russians. About 74% of all citizens' funds are placed in banks with state participation, calculated for "Izvestia" in "Expert RA". According to the calculations of the NRA, this share is slightly less - 72%.

The trend of the transfer of deposits of individuals from private banks to state-owned banks persisted for the last two years: in 2016, they accounted for 62-64% of all deposits, in 2017 - 64-66%. A similar picture in the segment of legal entities - now about 76% of their deposits are in credit institutions with state participation, and in 2016 this share was 67%.

GarryB wrote:

Unfortunately, they managed to gain full control of WTO and international trade. Like it or not. So Rusal and all Russian companies will need to take extra measures and develop plan out of this mess by moving away from US. But that is hard when the rest of the world relies on US. I wish it wasn't true but it is, and hence why so few nations back up Russia over this ordeals. They are afraid of being sanctioned too.

The US only has control where the world lets it have control... and that wont change if Russia keeps being their bitch.

Time for change.

Russia should not react to sanctions, they should lead with sanctions against those countries that impose sanctions on Russia... Russia is better off ignoring such countries and looking elsewhere for trade partners... there are plenty. They are not the richest countries in the world but there is plenty of potential.

Keeping sucking up to the US means they keep control and they stay rich... developing with other countries means Russia cannot be controlled by the west and the countries they trade with wont be held back the way the west is trying to hold back Russia... a win win... for everyone except the west.

I completely agree. I would wager on helping build Syrian, Iranian, Venezuelan, and North Korean economies (add in some African economies) to work with the MIR card system, their own Swift alternative, and some kind of customs union. Start investing in them and building them up for domestic consumption and trade among the customs union. The more nations that participate, the better. Like Belarus and various post sovist countries.

At least that is what I would do.

HSE: We will respond by counter-sentiments - we will get increased isolation

https://topwar.ru/139990-vshe-otvetim-kontrsankciyami-poluchim-vozrosshuyu-izolyaciyu.html

i really hope Russia goes ahead with is ban on titanium exports to the 3 countries involved in the Syria strike it would be a massive impact on Boeing, Lockheed Martin and Airbus it would not only f*ck up their civil aeronautical industry but more importantly their military aeronautical industry ... the USA has basically declared economic war on Russia ... and Russia needs to hit back hard

Donald J. Trump
‏Verified account @realDonaldTrump
2h2 hours ago

Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!


Jim Rickards
‏ @JamesGRickards
38m38 minutes ago

Jim Rickards Retweeted Anirudh Garg

Interesting. Technically it's not true; China has been propping up their currency, not devaluing. But, if Trump takes that view, we'll see currency wars and trade wars bleeding into each other as they historically do.

China, along with Japan, South Korea, Germany, Switzerland and India, were placed on the Treasury's monitoring list, meaning they satisfied some but not all of the criteria that would have qualified them to be designated as currency manipulators.

So even my country India is in the esteemed list of US Treasury

Russia does not devaluate its currency , its currency is not tightly pegged against USD/Euro but is free floating and depending on Oil Price its either strengthens or weakens hope Donald knows that !

No more An-124 transportation for NATO.

https://bmpd.livejournal.com/3161433.html

04/17/2018 (19:43)
Over the past two years, the defense industry enterprises have transferred to the various budgets of the Russian Federation almost half a trillion rubles of the funds of the GOZ

The budgetary funds allocated to finance the state defense order have a significant investment effect, which is confirmed by the data of the Unified Financial Monitoring System of the State Defense Order.

For example, over the past two years, the defense industry enterprises, having received money from the Defense Ministry for manufactured products, paid 481 billion rubles of taxes to various budgets of the Russian Federation, 444 billion went to pay wages and 121 billion to the Pension Fund.

Thus, the military department returns to the economy a significant part of the funds received, which contributes to the implementation of social programs, helps enterprises to develop.

Austin wrote:China, along with Japan, South Korea, Germany, Switzerland and India, were placed on the Treasury's monitoring list, meaning they satisfied some but not all of the criteria that would have qualified them to be designated as currency manipulators.

So even my country India is in the esteemed list of US Treasury

Russia does not devaluate its currency , its currency is not tightly pegged against USD/Euro but is free floating and depending on Oil Price its either strengthens or weakens hope Donald knows that !

Honest question, to what extent is the Ruble connected to Oil, because i don't remember much talk about a Petro-Ruble.

Hole wrote:It is connected in the minds of western "experts".

Indeed. The CBR stopped any sort of market interventions in late 2014 and left the ruble to freely float. This resulted
in a 50% devaluation in a short period which triggered an inflation spike that lasted only until March of 2015. But it was
enough to trigger a recession.

The CBR would have had to blow hundreds of billions of dollars propping up the ruble since it was under a full bore
attack organized by NATO. CBR interventions would allow the attackers to milk Russia for its reserve money. A positive
side effect of letting the ruble drop (i.e. let the NATO dominated market players, all several thousand of them, link it
to the price of oil) was that the 50% (+/-) dollar drop in oil was totally offset by the change in the exchange rate.
That is Russia was getting the same amount of rubles for each barrel of oil it sold as before the devaluation. Since
the Russian economy operates on rubles and not dollars and Russia is not an import-dependent economy, this cancellation
was real.

Trump-tard is going with the flow. There are no more facts. There are only lies of convenience.

Tests of the first large-capacity turbines in Russia are stopped

Подробнее на ТАСС:
http://tass.ru/ekonomika/5134074

So during heavy tests some mechanisms broke. They state they are continuing work but deadline may be pushed.

Well, since this is a massive development, they should have expected issues.

Can't understand full article but it seems that this is a joint Rostec and Rusnano project, and that power machines will also participate? Am I getting that correct?

For those who may find translator sucking


MOSCOW, April 17. /TASS/. Tests of Russia’s first large-capacity gas turbine GTD-110M were halted due to a failure of some mechanism but project activities will continue after troubleshooting, a representative of the Russian state corporation Rostec told TASS on Tuesday. The statement was confirmed by a representative of Rusnano, another project stakeholder.

"A range of mechanisms has indeed failed during long-term tests to verify lifetime indicators of GD-110M. Tests had to be suspended until closeout of the problems. This will indeed influence on the deadline but it is not fatal for the project. We remind this is the first experience of developing turbines of such class in Russia and complications in the course of tests were fairly expected," the Rostec representative said.

Rusnano will continue its shareholding participation in "the highly sought project and expect that it will be implemented," the company told TASS.



More:
http://tass.com/economy/1000274

Maybe someone more in the know can answer this for me but what is the big deal in difference between the GTD-110M compared to GTD-110 itself? Currently GTD-110 is made and in use in various thermal power plants in Russia and produce 110MW of energy each. Does the 110M produce significantly more?

Some one thinking right

Loan day. How Russia gets rid of US government bonds

https://ria.ru/economy/20180418/1518811153.html

Just read they have formed a committe on Counter Sanctions in State Duma and these folks will come with counter sanction by July.

It gives you an idea that Russian Legislator were not even seriously working on any counter sanctions till date since first major sanction came into effect in 2014 like 4 years back.

Now with RuAl and the latest sanction by Trump they suddenly woke up , What did the Russian Government did in last 4 years in preparing for counter sanctions.

US State Department has already list of sanctions prepared and all they need is presidential nod to put into effect.

In Rusal Japan said that they stopped supplying aluminum from Russia to Japan,According to the company, Russia accounted for about 15% of Japanese aluminum imports - about 230 thousand tons

Подробнее на ТАСС:
http://tass.ru/ekonomika/5140080

GunshipDemocracy wrote:

Austin wrote:Just read that 90 % of Russian market is still US and western software giant only 10 % is Russian and these are defence industry.

So this is a great opportinity to replace these Western back door driven Western Software and Hardware with Russian ones.

I wonder why they did this since 2014 and waited till 2018

With limited resources you need to set priorities. Development office or niche SW takes time, money and people.  PErhaps they could move perhaps not. I hope now small companies will receive grants to develop Linux based SW.



International Reserves of the Russian Federation

date                  amount (blns USD)
04/13/2018 462.4

http://www.cbr.ru/hd_base/mrrf/mrrf_7d/

All the hysteria here a couple of years ago how these reserves would now be zero. This sort of panic is systematic in the case of Russia. I recall
2003 when a slew of debt payments were due and all the forecasts for default. The year came and went without any event.

These reserves means nothing if they can be confiscated by US Government or EU one.

Rather then boasting about reserves CBR should work how to de-dollar and de-euro its reserves and invest in China T bills , INdia T Bills , Gold and SDR.

If CBR thinks these reserves would save their arse they are in for big surprise

Can anyone answer my question about the GTD-110 vsd GTD-110M? How come its considered a huge project if they already make GTD-110? so far, 110M produces 10MW more from what I read, so why is it that much of an issue and major investment if they already make GTD-110?