Russian Economy General News: #9

The Ministry of Defense of the Russian Federation told about the provision of work for about 4 thousand companies


Moscow. 25 May. INTERFAX.RU - More than 60% of the military budget goes to the technical modernization of the army and navy, which is one of the leading elements in the development of the Russian economy, orders of the Defense Ministry provide work for about 4 thousand Russian companies, said Deputy Defense Minister Tatyana Shevtsova to journalists on the sidelines of the SPIEF on Friday.

"More than 60% of the military budget - this is the cost of technical re-equipment of the Armed Forces, which are allocated for the purchase of high-tech products from enterprises of the military industrial complex," Shevtsova said.

According to her, these funds guarantee the military security of the state, as well as direct investments in the country's industry.

"Thanks to a solid state order, enterprises can attract investments and increase" neo-military "production.Once orders of the Defense Ministry are provided by about 4 thousand companies and enterprises whose total contribution to GDP is about 15%," the deputy minister said.

"We believe that the cost of national defense is the driver of economic development." The share of defense enterprises accounts for more than 70% of all applied scientific research and development, they produce about 70% of communication equipment, 60% of high-tech medical equipment and other sophisticated equipment, "said Shevtsova.

Hole wrote:This is strange. Siluanov, Nabiullina and Kudrin sounded quite reasonable.  Propably Putin standing behind the curtain, with a gun in his hand.

It wasn't Putin       Putin is now hi tech oriented      

Makron and Merkel were proposed creation "petro-euro". Cannot do without Moscow.

Plate for printing souvenir dollar bills with a portrait of US President Donald Trump. Archive photo

"Therefore, if the European partners do not support the US economic policy towards Russia, then, of course, we see a way out in using the European accounting unit, European infrastructure organizations for financial settlements, payments for goods, services that often fall today under various kinds of restrictions, "- said Siluanov, at the same time reminding that Russia is already trying to use calculations in national currencies with other countries. Apparently, the states of the CIS, Iran and, of course, China were meant.

РИА Новости https://ria.ru/analytics/20180525/1521324037.html

Kudrin spoke about the possibility of raising the national debt in the next six years...

Источник: https://newinform.com/120279-kudrin-rasskazal-o-vozmozhnosti-povysheniya-gosdolga-v-blizhaishie-shest-let

Russia has the opportunity to increase public debt in the next six years by 5-7% of GDP. This statement was made by the new head of the Russian Accounting Board Alexei Kudrin.

He said that today, in any case, it is expected to raise the national debt.

"It can still grow in the next six years by 5-7%," Alexei Kudrin said at the St. Petersburg International Economic Forum.

Earlier, the head of the Accounting Chamber made a proposal to raise the retirement age, and explained how this will have an impact on the Russian economy....

Austin wrote:Kudrin spoke about the possibility of raising the national debt in the next six years...

is is ok as long as money will be invested not supplied for transferign aborad

Fact that you people call this 5th column agenda reasonable only shows how little you understand about economy. Pretty much all that can be read there is designed explicitly to cut economic growth, reduce living standard, increase capital outflows and if possible trigger recession and mass unemployment.

- having Russia government go in debt so it has to pay interest to private bond holders is pure idiocy as there is already national reserve fond holding large amount of assets doing nothing. Liquidate the fond and us it's assets instead of enriching some bond speculator. Or even better just increase taxes on top oligarchs.

- creating pension fond for "investments" is complete fraud, it is essentially regressive tax on low and mid income people where proceeds of that tax are not even used by government but handed over to private market speculators to gamble with. Regressive taxation that is not spent but is instead forced in to speculative FIRE sector reduces of aggregate demand consequently causing slower economic growth and increasing unemployment, while FIRE sector does nothing other then trigger speculative bubbles

- both issuing bonds and forced pension "savings" in fire sector will increase capital outflow out of the country as much of the bonds will be acquired by foreign speculators or or pension savings will be invested in foreign speculative markets.

- Nabiullina's refusal to support domestic liquidity is deliberately designed to sabotage Russian economic growth, maximise unemployment ant force Russian enterprises in to hands of foreign creditors thus increasing capital outflow and maximise profit of foreign lenders in Russian markets.

- but Coup De Grâce that will destroy Russian economy and possibly cause Putin to end up like Gaddafi or Milošević is increasing of retirement age. First and obvious scam is that longer people work the longer they will have to pay forced pension savings to FIRE sector,and later they retire less will FIRE sector have to pay them back before they drop dead. In fact many will pay savings to FIRE sector without getting anything back because they will kick the bucket before the retirement age, so money will remain in pocket of FIRE sector speculators. But really devastating effect will be from massive unemployment it will trigger. Russian work force (total number of employed people) is abut 72 million, average work life is abut 40 years so each year abut 1,8 job vacancies are created due to retirement of elderly people, or abut 2,5 % of active labour force. Once Kudrin and his 5th column gang forces increase of retirement age by 5 years that will increase unemployment by 2,5% annually or by 1,8 million people per year for period of 5 year just in time for maximum unemployment crisis just before 2024 presidential election. At that time Russian streets will be filled by some 5 million + unemployed angry young people in addition of millions angry older working class people denied timely pensions, plus millions of regular workers angry their wages got cut as regularly happens when unemployment increases because employers have advantage in negotiating labour conditions and compensations under circumstances of massive surplus labour. Prime condition for US orchestrated colour revolution, just like Kudrin's 5th column wants it.

I have strong feeling Putin will pay with his life for his stupidity and cronyism. Idiocy of appointing known traitors or morons just because they were old friends from 90s St Petersburg will cost him direly.

At SPIEF-2018 550 agreements were signed for a total of 2.365 trillion rubles

This was stated to journalists by the adviser of the president of the Russian Federation, deputy chairman of the organizing committee of the forum Anton Kobyakov.

"Totally, as of 13:00, 550 agreements have been signed for a total of 2.365 trillion rubles," he said during a press conference. It is only about open agreements that are not of a trade secret nature, he added.

The number of agreements signed at the SPIEF is growing every year, Kobyakov noted.

Number of participants

The forum was attended by 17 thousand people from 143 countries, added the presidential adviser.

"We are already accustomed to the word" sanctions ", which sounded against our country, but SPIEF denied everything, 143 countries and more than 17 thousand participants confirm that Russia is a country of opportunities, Russia is connecting the world," he said.

The forum in 2017 gathered more than 14 thousand participants and, according to the results of the SPIEF-2017 Kobyakov, 386 agreements worth about 2 trillion rubles were signed on the margins of last year's forum.

The most representative delegation

The vice-chairman of the organizing committee of the forum noted that the most representative at the SPIEF was the US delegation - it numbered more than 500 people.

"The most representative delegation to the SPIEF these days was the US delegation - more than 500 people, followed by the Japanese and the French," he said.

Last year, the American delegation was also the most numerous - then 560 people, 140 companies, came from the USA to the SPIEF.

In addition, Kobyakov said that Vietnam can get the status of the country - guest SPIEF in 2019.

"A member of the Politburo of the Central Committee of the Communist Party of Vietnam, responsible for the economy, took part in the forum, he made a proposal on behalf of his leadership that Vietnam be a host country for the SPIEF in 2019," he said.

This proposal will be reported to the President of the Russian Federation Vladimir Putin, Kobyakov specified.

ZoA wrote:- having Russia government go in debt so it has to pay interest to private bond holders is pure idiocy as there is already national reserve fond holding large amount of assets doing nothing. Liquidate the fond and us it's assets instead of enriching some bond speculator. Or even better just increase taxes on top oligarchs.

how will you tax oligarchs? they push all pressure on people they employ . In Russia.

creating pension fond for "investments"

+

- both issuing bonds and forced pension "savings" in fire sector will increase capital outflow out of the country as much of the bonds will be acquired by foreign speculators or or pension savings will be invested in foreign speculative markets.

somehow in Germany this system works pretty well. Do you have real life example that there is well working system without investment funds? You kno whow startups and new technologies are finaced right?

- Nabiullina's refusal to support domestic liquidity is deliberately designed to sabotage Russian economic growth, maximise unemployment ant force Russian enterprises in to hands of foreign creditors thus increasing capital outflow and maximise profit of foreign lenders in Russian markets.

and how more money now would according to you make market booming?

- but Coup De Grâce that will destroy Russian economy and possibly cause Putin to end up like Gaddafi or Milošević is increasing of retirement  age.

Austin wrote:At SPIEF-2018 550 agreements were signed for a total of 2.365 trillion rubles

Nice - ~40blns $.

S.-PETERSBURG, May 26 - RIA Novosti. The Bank of Russia does not consider the crypto currency as a means of payment, but can return to this issue after some time, when the technology proves its applicability, said the first deputy chairman of the Central Bank, Olga Skorobogatova.

РИА Новости https://ria.ru/spief/20180526/1521438120.html

Cool, no US sanctions can touch it

Roughly $40B. A little less, about $38B. Now mind you, that is about $3B more than last years, and we are all calculating based upon FOREX. So it matters more in Rubles of course.

Good results.

Good Details on the details of Deal Signed and Statements during SPIEF

The main thing about SPIEF-2018

The main thing about SPIEF-2018

https://www.kommersant.ru/doc/3642039

GunshipDemocracy wrote:

how will you tax oligarchs? they push all pressure on people they employ . In Russia.

What are you, some kind oligarch shill? Taxes on rate of profit and accumulated profit can't be efficiently externalised from those that accumulate profit, especially if spending of such tax income increases aggregate demand . Learn some economy.

somehow in Germany this system works pretty well. Do you have real life example that there is well working system without investment funds? You kno whow startups and new technologies are finaced right?

Where do you get idea Germany is doing well? Their economy is largely stagnant for last quarterer of a century, what little boost they had is due to state intervention boosting domestic demand to compensate for otherwise stagnant growth of global aggregate demand. Also German economy is largely export orientated thus not all that dependant on stagnating domestic per capita consumption and that somewhat ameliorates such looting of German forced pension savings. Either way German economy would be significantly better of if substantial segment of aggregate demand was not looted by forced pension savings in to FIRE sector.

and how more money now would according to you make market booming?

You don't even know what liquidity crisis is, do you? Learn some economy.

whaaat

What happens to economy with stagnant labour demand that suddenly has a surge of 12,5% of labour supply? I can see you are completely ignorant of basic economic concepts but you ad least must understand relation between supply, demand and price?

"PAUL CRAIG ROBERTS: “AMERICA’S FIFTH COLUMN WILL DESTROY RUSSIA."

https://southfront.org/paul-craig-roberts-americas-fifth-column-will-destroy-russia/

ZoA wrote:Learn some economy.

First kindly tell me what exactly should  Putin do. Dont be shy so far you didn't tell me what is would be done not is shouldn't.


Second tell me is any country besides Venezuela or Zimbabwe which implement your precious economic knowledge?\

par far wrote:"PAUL CRAIG ROBERTS: “AMERICA’S FIFTH COLUMN WILL DESTROY RUSSIA."

after so many years Russia is going down unfortunately facts disagree with blogs.

Mr. Roberts is from Amiland, he should first fix his own country. Instead he wants Russia to do it.

Hole wrote:Mr. Roberts is from Amiland, he should first fix his own country. Instead he wants Russia to do it.

I think his intentions are noble, but his zeal i more like heart warming since he has no responsibility though.  Putin is THE top strategist practitioner unlike all bloggers "who know better", he knows his stuff.
The fact is: Russia is moving forward. Can it be faster better? perhaps yes perhaps no. Slow pace means less risks for population. No bloodshed on streets.



BTW I am wondering how those "who know better" economy see  increase retirement age as a threat for economy? it is other way around.  Billions instead to be spend can be invested. Especially that pension funds can stream money as internal pump of funding in hi tech.

Pension age form Bismarck items must change since people live more and unlikely all work as high building's contractors. Of course there is  another option - people start having 4-5 kids in family and after 40 years we can decrease retirement age again

Gazprom agreed to extend the Turkish Stream to the European Union

Gazprom signed an agreement with the Turkish government on the land plot of the second line of the Turkish Stream gas pipeline for gas supplies to the European Union countries. This was reported in the Russian company.

https://news.sputnik.ru/ekonomika/d5b16f6f3c42ddc9f48281a0b18307fccc962a9d

The retirement age in Russia is 50 or 55. 20 years ago, with a life expectancy of 55 to 60 years their was nothing to raise. Today a normal russian man reaches 75 to 80 years.

GunshipDemocracy wrote:

ZoA wrote:Learn some economy.

First kindly tell me what exactly should  Putin do. Dont be shy so far you didn't tell me what is would be done not is shouldn't.


Second tell me is any country besides Venezuela or Zimbabwe which implement your precious economic knowledge?

You are really aggressive to show your utter ignorance of even most  basic economic concepts. You should know ignorance is not something to be proud of.

As for what Putin should do how about not appointing known traitors and morons to high government potions? Fact that this is not first obvious correct step to you really comments on general quality of your judgement.

As for general economic polices first 3 urgent moves should be decommodification of all credit, strict capital control regime, abolition or VAT and introduction of progressive income tax applied both on income and capital gains equally. But I doubt you have any idea what any of that means.

ZoA wrote:
As for general economic polices first 3 urgent moves should be decommodification of all credit, strict capital control regime, abolition or VAT and introduction of progressive income tax applied both on income and capital gains equally. But I doubt you have any idea what any of that means.

My question however remains unanswered. Examples of countries that followed your recipe for economic growth with positive results? can you name only 3 of them? Thanks in advance.

Hole wrote:The retirement age in Russia is 50 or 55. 20 years ago, with a life expectancy of 55 to 60 years their was nothing to raise. Today a normal Russian man reaches 75 to 80 years.

Very true. Besides in Soviet times there was demographic situation much better. Current age structure is not best mildly speaking.

Personally I believe that retirement age is not mainly about "buuuu  I have to work longer" , I think like people are afraid to loos their job  (say 50s) and not get anything just starve...
Uou can tackle this with complex reform only. Age alone is not best option to advertise.

There are have to be at least re-training for fired 40+, legal and medial support for people after they were made redundant. And of course demography - both intrinsic fertility and smart migration - like creation of conditions for people to want to stay in Russia after say studying on Russian universities. Even if you get 50k people + families. You can get till say 250k qualified, young and knowing Russian people.

OK but this is only how I see it.




And here a quote form liberal press (Rambler - funded by Nosik dual Israeli-Russian citizenship, died in 2017 heart attack

At the end of 2015, Nossik was under a criminal investigation under part 1 of article 282 the Russian Criminal Code (incitement of hatred or enmity) for a blog post about Syria. According to the prosecution, on 1 October 2015 Nossik published the post titled 'Erase Syria from the face of the Earth',[20] in which, according to а linguistic expertise solicited by the prosecution, 'signs of inciting hatred against the Syrians, based on the national-territorial principle' were detected.[21] The post urged President Vladimir Putin to act as he perceived Syria as a military threat to Israel. Opposition figures in Russia pointed to the irony of Nossik being brought to trial as, at the time, Russia was being accused by the West of committing war crimes in Syria during their bombing raids against forces opposing President Bashar al-Assad.[22]

On 19 September 2016, the prosecution asked to sentence Nossik to two years imprisonment.[23] On 3 October 2016, the Presnya court of Moscow convicted Nossik and sentenced him to a fine of 500 thousand roubles.[24] On 15 December 2016, Moscow city court reduced the fine to 300 thousand roubles. In January 2017, an appeal to the conviction was accepted for hearing by the ECHR.[25]

and now news, look at impartial tittle.

The economy of Russia was predicted a new drop

{}Morgan Stanley has worsened expectations for GDP growth from 2.3 to 1.8 percent this year, becoming the third investment bank that made this decision in a week, explaining it with American sanctions, the agency said.
{}
arlier, Goldman Sachs lowered its estimate of Russia's GDP growth for this year from 3.3 to 2 percent, Citi's investment bank also worsened the forecast from 2.3 to 2 percent.

As you can see all US banks are impressed with Us sanctions but of course impartially. And now why I quoted this article:

In addition, the pre-election increase in public sector wages has not resulted in increased sales within the country, but in an increase in online purchases abroad.

Imagine- you get more money you buy tvset, video,  computer? iphone or other gadgets car? - how many of those things are produced in Russia with full localization?

Abromovich left Russia now an Israeli citizen cause he couldn't go to London.

Guess Russia should take his wealth seeing as he made it off of backbone of Russians.

Oligarches show their true self.

Imagine- you get more money you buy tvset, video,  computer? iphone or other gadgets car? - how many of those things are produced in Russia with full localization?

Or, just tax it heavily as it is brought into the country, forcing various producers to look at bringing production home.  Simple ways fix this issue. But then again, we don't even know what their figures are based on because growth has been seen on domestic consumption in the last couple of months so I call it out. Plus sales of Russian cars, considerably. Sales upwards to 30% higher per month.

GunshipDemocracy wrote:

ZoA wrote:
As for general economic polices first 3 urgent moves should be decommodification of all credit, strict capital control regime, abolition or VAT and introduction of progressive income tax applied both on income and capital gains equally. But I doubt you have any idea what any of that means.

Examples of countries that followed your recipe for economic growth with positive results?  can you name only 3 of them? Thanks in advance.

New deal era US, UK under Clement Atlee, Chile under Alliende, Cuba, CSSR, DDR, Burkina Faso, Nicaragua under Sandanistas. There.

Also no countries so far have adopted these reforms so far because they're against the interests of the neoliberal ruling oligarchs(almost all countries are ruled by them today).

KomissarBojanchev wrote:

GunshipDemocracy wrote:

ZoA wrote:
As for general economic polices first 3 urgent moves should be decommodification of all credit, strict capital control regime, abolition or VAT and introduction of progressive income tax applied both on income and capital gains equally. But I doubt you have any idea what any of that means.

Examples of countries that followed your recipe for economic growth with positive results?  can you name only 3 of them? Thanks in advance.

New deal era US, UK under Clement Atlee, Chile under Alliende, Cuba, CSSR, DDR, Burkina Faso, Nicaragua under Sandanistas. There.

Also no countries so far have adopted these reforms so far because they're against the interests of the neoliberal ruling oligarchs(almost all countries are ruled by them today).

OK 2 examples
Burkina Faso GDP PPP /capita $1,992
https://en.wikipedia.org/wiki/Burkina_Faso

Nicaragua GDP PPP /capita $5,755

it could hardly be called a success.None of them made market success nor made economies technological jump. Without a major war and huge deficit/depression (UK/US)

Cuba is not a market economy and not rich either, Chile was socialist enough to make CIA coup. SO reforms didnt succeed. US and UK still sucked wealth form colonies. Did US stopped do it from Latin America or Philippines? India - Partition with Pakistan, Burma , Africa -theoretically this was freed not economically though. None of US/UK were under grave economical/medial and military pressure.

As for Keynes politics I agree - invest in education,infrastructure, maximize employment and provide with health services. But isnt is what Putin wants but with market? In short if you want such reforms you need to switch to socialism/communism. The question is can Russia do it today? unlikely. Is situation like in 30s or 70 now? NOT it is not. Would like Russians Stalin methods? unlikely

I disagree with many things in Russian economy but I dont know what are other factors both intl national (zionists in west, oligarchs, liberals, other western regimes,real status of world economy based on real analysis not bloggers' input, behond scene data, ability do influence politics- and prices like Syria) .



So in short I wonder how would you like to introduce those reforms? like Stalin? Putin shall start shooting people? tell me please.

miketheterrible wrote:Abromovich left Russia now an Israeli citizen cause he couldn't go to London.

Guess Russia should take his wealth seeing as he made it off of backbone of Russians.

Abramovitch left Russia many many years ago. He is kind of Khodorkovsky type only smarter. Same nation as most of oligarchic scum. I mean banker nationality
Can you confiscate? and what then?

a) if you can do it with Abramovithc you can do to any other (also proper capitalists) - will they want to stay in Russia then?
b) external processes about returning "stolen properties"
c)  firing thousands of people. You can produce but you need also to sell... They got zio connections and have markets. You cnnot do it in day 1. canyou?



And below sample that any market need time , financing, competition and control to get to quality level.

Roskachestvo found violations in 35% of sampled vanilla filling

OSCOW, May 29. / TASS /. Roskachestvo revealed violations in 35% of the tested samples of vanilla filling. Among the shortcomings - vegetable fats, E. coli and antibiotics, the organization said on the basis of test results.

For the tests were purchased samples of the 34 most popular Russian brands of ice cream, all of them were produced in Russia. Infringements have been found out in 12 goods.

Verification results
Two samples revealed the use of vegetable fats. In two more samples the fat content of the products did not correspond to the norm and was less than 12%, in such cases the ice cream can be called simply creamy, but not plombir.

Manufacturers of the two brands used starch and did not indicate this on the packaging, which is also a violation. Starch can be used to substitute a dairy component or to create a thick consistency of ice cream. Legislation is not prohibited, but the starch should be listed in the composition, explained in Roskachev.

In the seal of the two brands bacteria of E. coli are found. At the same time, pesticides, heavy metals, radionuclides, GMOs and toxic elements, Staphylococcus aureus, listeria and pathogenic microorganisms have not been found in the tested products.

However, in one of the samples antibiotics of tetracycline group were detected, and in six - traces of their use.

A check for the freshness of dairy raw material revealed deficiencies in two products, in which the acidity index turned out to be above the norm. This may indicate that the production of ice cream used not the freshest raw materials, experts said.

Подробнее на ТАСС:
http://tass.ru/ekonomika/5243767

Imagine- you get more money you buy tvset, video,  computer? iphone or other gadgets car? - how many of those things are produced in Russia with full localization?

Or, just tax it heavily as it is brought into the country, forcing various producers to look at bringing production home.  Simple ways fix this issue.  But then again, we don't even know what their figures are based on because growth has been seen on domestic consumption in the last couple of months so I call it out.  Plus sales of Russian cars, considerably.  Sales upwards to 30% higher per month.[/quote]

and magically local produce swill start delivering TV sets on[ level of LG/Samsung? without years R&D and most modern factories? autio/video/smartphones too? or cars like BMW?

You need years for this and heavy investments. You can make a product but you need a brand, dealership network...

To me the only way to go out of impasse is
a) invest in targeted projects (like but not all development or robotics/AI/quantum computing, material science, aerospace, blockchain tech)
b) infrasctructure
c) education
d) health services
d) LEGAL framework and financial instruments to make scaling up products easier so Russia can make fair billionaires on her own

Or, as I said, bring in the same producers to build plant. In North caucuses, I think Chechnya, there is an LG plant producing LG TV's for Russian market. Then there are assembly companies that make TV's using mixture of imported and domestic parts. Same with fridges, etc.

So yeah, they can also go route of being screwdriver assembly along with some basics being produced locally to reduce overall costs.

I've mentioned this before and even provided samples, don't be ignorant.

Edit: and there is a Samsung TV plant in Kaluga as well.

Russian TV brand is Rubin.

BTW, mentioning BMW, BMW is setting up a Russian plant now due to demand. Russians can't be that poor eh?

You know what made LG, Samsung and other big brands competitive? Was that SKs protectionism laws and it's high tarrifs in the past gave these companies all contracts. Gave enough in terms of money to develop and expand. Not "free market and competition"

miketheterrible wrote:

You know what made LG, Samsung and other big brands competitive? Was that SKs protectionism laws and it's high tarrifs in the past gave these companies all contracts. Gave enough in terms of money to develop and expand. Not "free market and competition"

Outside /Korea there was competition. Tariffs were imposed to let companies accumulate capital and build also R&D teams and invest in relative "pace" couple of years. This of course good way for Russia to follow but it can also be achieved by taxation and support of local industries. both financially (preferred % rate and or grants to be remitted if product is made and in sales) and legally (you cannot buy for x year if you are form abroad) . What about that?