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    Russian Economy General News: #9

    GunshipDemocracy
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    Post  GunshipDemocracy on Sun Dec 30, 2018 6:26 am

    miketheterrible wrote:Well, Russia is pretty much top 5 anyway. Unless Germany increased a lot too.

    both are true Wink
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    Post  higurashihougi on Mon Dec 31, 2018 2:49 pm

    GunshipDemocracy wrote:

    Earlier it was reported that in Russia, speed limit signs will be installed, which will automatically calculate the optimal speed mode for current weather conditions, the so-called dynamic signs . They will be placed on highways and along high-speed roads.


    Revolution 4.0, I believe Very Happy Very Happy

    Many of my work colleagues constantly mention about the so-called 4.0 technology revolution nowadays, and believed that the Western World is leading the 4.0. But on my opinion it is Russia and China who are doing the job.
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    Post  GunshipDemocracy on Tue Jan 01, 2019 12:41 am

    higurashihougi wrote:

    Revolution 4.0, I believe Very Happy Very Happy

    Many of my work colleagues constantly mention about the so-called 4.0 technology revolution nowadays, and believed that the Western World is leading the 4.0. But on my opinion it is Russia and China who are doing the job.


    Welcome back old commies respekt respekt respekt


    AFAIK now we are entering the 4th Kondratiev cycle. With beginning of cycle all sanctions stuff started . Looks like a fair competition western way lol1 lol1 lol1
    Russia and China have to catch up otherwise will become fully pledged western colonies. Russia is doing it pretty good way taking into account geopolitical situation.


    From January 1, foreign companies are obliged to pay "tax on Google" in the Russian Federation on b2b transactions
    Prior to this, the obligation to pay VAT in the provision of electronic services lay with foreign companies only in the b2c segment


    MOSCOW, January 1. / TASS /. Foreign organizations that provide electronic services in the b2b segment are now required to register for tax and independently pay VAT in Russia. The relevant changes to the Tax Code entered into force on January 1, 2019.

    Prior to this, the obligation to pay VAT in the framework of the provision of electronic services (known as “Google tax”) lay on foreign companies only in transactions with individuals (b2c). Now, the requirement for a foreign company to pay VAT when rendering electronic services also applies to transactions with Russian organizations and individual entrepreneurs.

    Innovation can complicate the lives of a large number of foreign companies in Russia, says Arseny Seyidov, a partner of Baker McKenzie. According to him, Russian legislation does not take into account the experience of foreign countries and the peculiarities of multinational corporations. "For example, in the field of e-commerce, it is a widespread practice when the services are provided by one company and the remuneration is received by a different (treasury) company of the group. Russian b2b buyers may not receive a tax deduction in such circumstances, since according to the current legislation, the supplier services and the recipient of funds must be one and the same person ", - he explains.

    Even if within a foreign corporation there is no such functional separation by company, there may be another obstacle. Seyidov notes that the policy of many foreign corporations does not imply a full-fledged tax registration of the supplier of electronic services on the b2b market in every country where business is conducted. "A number of companies may consider that the share of revenue attributable to Russia is not large enough to make a decision on tax registration in Russia. And in this regard, they may decide to leave the Russian market," he sa
    id.

    Partner Baker McKenzie also notes that the majority of foreign groups that allocate part of the global software costs (along with other headquarters expenses) to Russian subsidiaries are also subject to the new regime. “The business of such groups often has nothing to do with the provision of electronic services. However, without a Russian TIN of a foreign supplier, Russian people will not be able to accept VAT for the entire intra-group turnover, which will negatively affect their financial model,” Seyidov said.

    Positions of foreign companies
    \Large foreign corporations have already warned of future changes. "Due to changes in Russian tax regulation, which introduces VAT for digital services provided by foreign providers to commercial customers in Russia, from January 1, 2019, Microsoft Ireland Operations Limited (MIOL) will include VAT in bills," TASS reported in a press Microsoft service.

    At the same time, the social network Facebook previously announced an update on taxation in Russia. “Starting from January 2019, Facebook advertising in Russia is subject to 20% VAT. This update will affect all advertising accounts for which Russia is listed as the country of the company,” the social network informed its users. At the same time, Facebook noted that VAT on the purchase of advertising on the social network will be charged regardless of the purpose of the purchase (commercial or personal).

    The Google corporation, in whose honor the law was named, did not respond to the TASS request for plans of the company in the context of the changed legislation. The press service of Apple also did not provide the agency with any comment on this issue.

    https://tass.ru/ekonomika/5957981



    no worries Senya, if they go let them go. McKenzie can go too. If they dotn pay taxes bring no value for Russia, will come other who will. russia russia russia







    A law enters into force allowing the Central Bank to prevent the withdrawal of assets from insurance companies


    The regulator has the right to make such decision if the company repeatedly violated the requirements of financial stability and solvency during the year.


    MOSCOW, January 1. / TASS /. Amendments to the law on the organization of insurance business, which give the Bank of Russia the right to impose a ban or restriction on the execution of individual transactions by insurance companies, come into force on January 1.

    The regulator has the right to make such a decision if the company repeatedly violated the requirements of financial stability and solvency during the year, did not fulfill the instructions of the Central Bank, presented unreliable information to the Central Bank, or by its actions created a threat to the rights and legitimate interests of citizens or a threat to market stability. Also, such actions may be grounds for revocation or suspension of the license.

    The rule on the right of the Central Bank to prohibit and restrict the conduct of individual transactions is part of the package of changes in the legislation on the rehabilitation of insurance companies. The Central Bank said earlier that this provision would allow the regulator to prevent the withdrawal of assets from problem companies. The provisions of the law on the rehabilitation mechanism itself entered into force in the summer of 2018.

    The law also defines a list of transactions that the Central Bank can prohibit or restrict. These are transactions related to the transfer of real estate for rent, pledge or as a contribution to the authorized capital of other organizations, obtaining loans, assignment of rights of claims on debt, forgiveness of debt, compensation and transactions with securities and derivative financial instruments. Restrictions or a ban on transactions are established by issuing a Central Bank instruction to the company for a period of up to three months with the possibility of renewal.

    In addition, on January 1, a provision of law enters into force specifying the grounds for revoking a license from an insurance company. In particular, violation of the ratio of capital and liabilities by more than 20%, violation of requirements of the Central Bank for investment of insurance reserves, if non-compliant assets make up more than 20% of reserves, submission to the Central Bank of essentially inaccurate reporting, failure to comply with requirements for increase of the authorized capital, etc. The temporary administration of the insurer can also apply for the revocation of a license if it is impossible to restore its solvency.

    The law defines additional grounds for restricting or suspending an insurer's license, and also establishes grounds for renewing a license after it has been restricted or suspended.


    https://tass.ru/ekonomika/5969518
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    Post  Austin on Tue Jan 01, 2019 7:31 pm

    Interesting Read


    Professor Katasonov: What kind of breakthroughs and jerks is Putin talking about?


    http://svpressa.ru/economy/article/220524/?utm_source=finobzor.ru
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    Post  GunshipDemocracy on Tue Jan 01, 2019 7:53 pm

    Austin wrote:Interesting Read


    Professor Katasonov: What kind of breakthroughs and jerks is Putin talking about?


    http://svpressa.ru/economy/article/220524/?utm_source=finobzor.ru


    I love Google translators lol1 lol1 lol1



    in original text there is a word ryvok (рывок) which indeed in kinematics can mean jerk but can also mean dash (sport), powerful (temporary ) acceleration (, burst (of energy) AFAIK


    And Katasonov is a drama queen. IMHO his theories are cannot be applied in real life as he doesnt see economics/politics and military situation as continuum not independent entities.
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    Post  Kimppis on Tue Jan 01, 2019 8:15 pm

    To sum-up that opinion piece:

    - Russia is not sovereign

    - Russia has no "national idea"

    - Russia should NOT prioritize (non-commodity) exports, it's a continent in itself, not a small country

    - The Soviet Union was good. Stalin's industrialization was very good. The Soviet education system was the best in the world
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    Post  GunshipDemocracy on Wed Jan 02, 2019 12:11 am

    Kimppis wrote:To sum-up that opinion piece:

    - Russia is not sovereign


    True, not yet but is in impressive peace (in political sense) regaining it.


    K wrote:- Russia has no "national idea"

    of course depending on what is this national idea? Russia ia multi-ethnic and national idea is to focus on common good , understanding that unity makes us strong. If you favoritez one group or the other you start destruction. And people work for money, comfort, safety so if you let them earn it legally they wond be searching happiness elsewhere.


    K wrote:- Russia should NOT prioritize (non-commodity) exports, it's a continent in itself, not a small country

    That's what I dotn get, how how economist. Apparently with scintific degree talk such a crap?



    K wrote:The Soviet Union was good. Stalin's industrialization was very good. The Soviet education system was the best in the world

    USSR was neither good or bad was different then now. Staling did impressive work (thet's why Russia still exists now). But both challenges/peoples mindset/times/ geopolitical situation were much different. Now we have different times, different situation different tech.

    Soviet education system I dont know if it was the best but surely was on top.

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    Post  higurashihougi on Wed Jan 02, 2019 4:24 am

    GunshipDemocracy wrote:
    Kimppis wrote:Russia has no "national idea"

    of course depending on what is this national idea? Russia ia multi-ethnic and national idea is to focus on common good , understanding that unity makes us strong. If you favoritez one group or the other you start destruction.  And people work for money, comfort, safety so if you let them earn it legally they wond be searching happiness elsewhere.

    It is interesting to see that a man from Kavkaz Republics, named Iosif Stalin, rose up high enough to be the Supreme Leader of USSR. Other Kavkaz figures, Lavent Beria, two Mikoyan brothers, etc. are very prominent figures in Soviet goverments and society. And not forget abour Lev Mekhlis, a Jew who are close political ally of Stalin and were military commissar of a Soviet Front...

    And now we have Sergey Shoigu, Defense Minister from Tuvan people.
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    Post  Austin on Wed Jan 02, 2019 5:30 am

    "Sanctions can drive us into a situation more abruptly than in the 98th"

    https://www.gazeta.ru/business/2018/08/17/11899213.shtml

    i was reading the interview with deputy chairman of central bank , He says the following about Sancitons from Hell  

    If the sanctions are still taken in the form in which they are written, then the first thing that will suffer is the Russian foreign exchange market. Because the largest players will leave it and will not be able to work on it.

    How much after that the dollar will cost, I don’t know ... Maybe 70 rubles, 75 rubles, 85, 105 ... I don’t know. But I understand that after the adoption of this law, the dollar will fly up, and the ruble will roll down.

    Following this, inflation will fly up. Following this, payments for export and import contracts for Russian exporters and importers will stop. After that, citizens, those with cards in banks under sanctions, will have problems servicing their bank cards when they are abroad, because the correspondent accounts of these banks will be blocked. Is that enough?
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    Post  Nibiru on Wed Jan 02, 2019 5:47 am

    ^^^
    So in short., Russia is Doomed and the West wins? Suspect
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    Post  miketheterrible on Wed Jan 02, 2019 6:10 am

    Edit: see below


    Last edited by miketheterrible on Wed Jan 02, 2019 6:22 am; edited 1 time in total
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    Post  miketheterrible on Wed Jan 02, 2019 6:21 am

    Austin, learn to use translate.

    He is a former chairman. So he isn't in government now.

    And by sounds of it, he was a Yeltsin boy.

    He is using a lot of assumptions. He assumes no one will buy from Russia, which is flat out wrong. Iran still sells goods to others.

    In end, it will force Russians more domestic. Something that eludes this US fanboy and former US stooge.

    according to former Chairman of the Central Bank Sergey Aleksashenko

    More details on him: https://www.google.com/amp/s/www.brookings.edu/experts/sergey-aleksashenko/amp/

    Employee of Meryl Lynch of Russia... LOLLOLOLOLOL

    He was also (and probably still is) being investigated for smuggling.

    A funny piece that ended up a failure of his:
    https://imrussia.org/en/economy/2698-sergey-aleksashenko-%E2%80%9Cthe-worst-is-yet-to-come-for-russia%E2%80%99s-economy%E2%80%9D

    He is from Brookings institute as well.


    So all in all, do your research Austin before posting such drivel from a loser.

    Just read this too: https://ru.m.wikipedia.org/wiki/%D0%90%D0%BB%D0%B5%D0%BA%D1%81%D0%B0%D1%88%D0%B5%D0%BD%D0%BA%D0%BE,_%D0%A1%D0%B5%D1%80%D0%B3%D0%B5%D0%B9_%D0%92%D0%BB%D0%B0%D0%B4%D0%B8%D0%BC%D0%B8%D1%80%D0%BE%D0%B2%D0%B8%D1%87

    Guess when he left his job at Central Bank?

    1998.
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    Post  Austin on Wed Jan 02, 2019 11:37 am

    Former US ambassador to Ukraine said that Washington  introduce new sanctions against the Russian Federation within two months


    http://militarynews.ru/story.asp?rid=1&nid=499002



     Among the sanctions that may be imposed by the United States, D. Herbst called the restriction against the largest Russian bank or a ban on entry into American ports by Russian ships. 

           In addition, the former US ambassador to Ukraine stressed that support for Ukraine in the US Congress is currently very strong. "And it will remain at least as serious, and perhaps even intensify," says Herbst. 
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    Post  miketheterrible on Wed Jan 02, 2019 11:40 am

    Little do they realize that will mean if Russia does the same, ban American vessels entering Russian ports, they will entirely exclude themselves through Arctic zone and most ports on eastern coast.

    Gotta say, I love the Americans and their stupidity.

    May I ask a question Austin? I know your previous chicken little articles and what not ended up as hot air or not really making a dent at all, but why do you post such articles? I mean, it's not Russian economy related at all since it isn't even put into force. And Russia isn't the United States thus makes little difference anyway.

    So, answer my question please.

    The reason is, I'm rather sick of reading articles from you about all the chicken little nonsense.

    Let's be realistic here - sanctions so far done nothing. Russia was already growing at a slow rate and that had entirely all to do with social reasons more so than political. For every situation, creates an opportunity. Russia took advantage of that with the sanctions and started import substitution. US realized this so they went after banking. What has that done? Got banks to drop USD and bring back assets home or divested from US and moved it elsewhere. What about shipping vessels? US still relies on exporting goods and Russia surprisingly still imports from US. Way more than exports to US. So what if US bans Russia for using it's ports? Then it will be forced to use ports in South America, were their customers are. US and Canada are not Russian customers. Yet Russia is a customer of US goods. So then what will happen if Russia bars US vessels from using Russian ports? Think about it.

    I rather talk about REAL issues and real stories. Not "what ifs" and stupid threats. Liquidity, the banks have. They don't need US anymore. Sberbank being really only one because of it's FOREX. Which then means they would be forced to move that money back home and use that to invest in Russian assets or assets in other countries like India and China - real markets.
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    Post  miketheterrible on Wed Jan 02, 2019 12:14 pm

    So, let us talk REAL news

    http://tass.com/economy/1038383

    Federal Customs Service transfers over $86.3 bln to Russian budget in 2018
    -----------------------------------------------
    Value-added tax to rise from 18% to 20% in Russia

    More:
    http://tass.com/economy/1038487

    -----------------------------------------------

    Russia ushers in ‘Google tax’ on New Year’s Day

    More:
    http://tass.com/economy/1038746
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    Post  GunshipDemocracy on Wed Jan 02, 2019 1:00 pm

    c'mon guys. First of all this was one moron , not in us govt .  Bu ex-ambassador currently in  altantic council talking to fascists in  Ukropistan.
    Same things were spoken by different moron form "council of natural resoruces in alaska and hawaii" about blockade of Russian ports.

    Yet: nord stream 2 , Turkish streams are being build, Russia is selling S-400 to India, Turkey and there are no blockades. Instead Russian bombers are flying over Caribbean.


    Of course sanctions are meant slow down Russians development an probably Kudrin is right saying it is about 1% GDP  per year. Yes still Russia devlope 2% ad shall 3+%  frm 2021 year.  BTW if reforms will help  only Russian grey zone to legalize then we have jump of GDP by 30% in next 5 years alone



    miketheterrible wrote:
    Russia ushers in ‘Google tax’ on New Year’s Day

    More:
    http://tass.com/economy/1038746

    I love this one, explanation tha some companies might lose interest in Russian market. Like there are not enough of them in the world lol1 lol1 lol1
    Somehow nobody closed their shops in UK after google tax wes introduced.

    But a vision of bleeding US copos from illegally untaxed revenue in Russia must hurt...after so many years of "tax vacations" ught
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    Post  GunshipDemocracy on Wed Jan 02, 2019 1:07 pm

    Nibiru wrote:^^^ So in short., Russia is Doomed and the West wins? Suspect

    of curse! Since 2013 recently Russia is worse and worse each year. Millions of Russian emigrate just to survive, economy is folding down, army is obsolete , USD is 100 rubles and Euro 120.


    Unlike Ukraine which is better and better, has unconditional love form US and EU.

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    Post  GunshipDemocracy on Wed Jan 02, 2019 1:21 pm

    Austin wrote:"Sanctions can drive us into a situation more abruptly than in the 98th"


    Im not sure why now did you quote an interview form August ast year? As for $ for 80 or 90$ perhaps it can be pehaps not but what does it change internally? higher a bit inflation and what else?

    Guy was 20years ago liberal scum making then CBR run Russia into default. And he is giving now advises? to do as they did? BTW Gazeta isnt is a liberast redoubt, Iundesrstand you lik eot have opinions form both sides. But isnt is not better to cut all extreme views to keep withing realistic realm? Russian RIA is of course provides mostly good news about Russia but there is no reason to believe in all black scenarios form recent 5 years Russia was

    a) economy is in shreds
    b) Russia is a gas station that makes nothing
    c) Russians are starving and massive decrease of population (in reality ~250k + / pa)
    d) $ is 100 and € is 120 Rubles.

    And my only question is where are those "experts" now since none of their "expert opinions" materialized. In such case what value does have such opinion is guy never was correct ? In short. Austin there is a beautiful day and no need to worry in advance because some moron farted here or there





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    Post  GunshipDemocracy on Wed Jan 02, 2019 1:25 pm

    higurashihougi wrote:

    And now we have Sergey Shoigu, Defense Minister from Tuvan people.

    turns out that only ethnic Russians were underdogs in USSR lol1 lol1 lol1 but real tragedy started when Khrushchev started to dismantle stuff that Stalin did. Recent Stalin's economi capporach was close to current liberal China. Khrushchev sons/grandsons moved to US and are paid by US govet. Without a reason?
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    Post  higurashihougi on Wed Jan 02, 2019 2:40 pm

    GunshipDemocracy wrote:
    higurashihougi wrote:And now we have Sergey Shoigu, Defense Minister from Tuvan people.

    turns out that only ethnic Russians were underdogs in USSR  lol1 lol1 lol1 but real tragedy started when Khrushchev started to dismantle stuff that Stalin did. Recent Stalin's economi capporach was close to current liberal China. Khrushchev sons/grandsons moved to US and are paid by US govet. Without a reason?

    Khruschyov's "legacy" didn't stop inside USSR. He destroyed the unity of the Socialist Bloc and broke the back of European Communists. He sabotaged Marxist ideas and created chaos in governmental positions. Yet he claimed that under his regime the USSR advanced to communism already... what a joke.
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    Post  Regular on Wed Jan 02, 2019 7:09 pm

    higurashihougi wrote:
    GunshipDemocracy wrote:
    higurashihougi wrote:And now we have Sergey Shoigu, Defense Minister from Tuvan people.

    turns out that only ethnic Russians were underdogs in USSR  lol1 lol1 lol1 but real tragedy started when Khrushchev started to dismantle stuff that Stalin did. Recent Stalin's economi capporach was close to current liberal China. Khrushchev sons/grandsons moved to US and are paid by US govet. Without a reason?

    Khruschyov's "legacy" didn't stop inside USSR. He destroyed the unity of the Socialist Bloc and broke the back of European Communists. He sabotaged Marxist ideas and created chaos in governmental positions. Yet he claimed that under his regime the USSR advanced to communism already... what a joke.
    What a joke... Yet under his rule housing boomed and life was probably best according to my grandfather.
    Soviet union had problems of stagnation, but calling Khruchev a traitor is too much
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    Post  Hannibal Barca on Wed Jan 02, 2019 7:12 pm

    Stalin was raw but effective. After Stalin, maybe only Andropov was deserving more than a bullet to the head. My 2 cents.
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    Post  Hannibal Barca on Wed Jan 02, 2019 7:14 pm

    Austin wrote:Former US ambassador to Ukraine said that Washington  introduce new sanctions against the Russian Federation within two months


    http://militarynews.ru/story.asp?rid=1&nid=499002



     Among the sanctions that may be imposed by the United States, D. Herbst called the restriction against the largest Russian bank or a ban on entry into American ports by Russian ships. 

           In addition, the former US ambassador to Ukraine stressed that support for Ukraine in the US Congress is currently very strong. "And it will remain at least as serious, and perhaps even intensify," says Herbst. 


    If true, good becomes even better Laughing Laughing Razz
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    Post  GarryB on Wed Jan 02, 2019 10:26 pm

    The more the US pushes Russia away the more self reliant Russia will become from "international interference".

    For many years the Russians knew they had to spend more money on their military, and to diversify their economy away from energy and resources... it has taken an attack by Georgia in 2008 to initiate the first, and US sanctions and western hostility to the growth of Russia to push the second.

    The west is rich, but it is not nearly as powerful as it thinks... it can crush little countries like Haiti or Cuba, but a big country like Russia can pretty much survive on its own rather isolated and cornered.

    I am not suggesting it should isolate itself, there are plenty of other countries around the place that are keen to increase fair trade where they can grow and develop and so can Russia. Such countries are recognising that the west is interested in using them as resources and not allowing them to develop and grow because the west does not want competition... as it shows with Russia and China.

    BTW I wonder if that Russian ship ban applies to the LNG tankers Russia has recently sent to the US and UK...

    Russia should demand that Russian Rocket motors and the Titanium parts Boeing buys for its F-35 and other commercial aircraft be shipped to the US only in Russian vessels... lets see how long the ban lasts...
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    Post  miketheterrible on Thu Jan 03, 2019 1:44 am

    GarryB wrote:The more the US pushes Russia away the more self reliant Russia will become from "international interference".

    For many years the Russians knew they had to spend more money on their military, and to diversify their economy away from energy and resources... it has taken an attack by Georgia in 2008 to initiate the first, and US sanctions and western hostility to the growth of Russia to push the second.

    The west is rich, but it is not nearly as powerful as it thinks... it can crush little countries like Haiti or Cuba, but a big country like Russia can pretty much survive on its own rather isolated and cornered.

    I am not suggesting it should isolate itself, there are plenty of other countries around the place that are keen to increase fair trade where they can grow and develop and so can Russia. Such countries are recognising that the west is interested in using them as resources and not allowing them to develop and grow because the west does not want competition... as it shows with Russia and China.

    BTW I wonder if that Russian ship ban applies to the LNG tankers Russia has recently sent to the US and UK...

    Russia should demand that Russian Rocket motors and the Titanium parts Boeing buys for its F-35 and other commercial aircraft be shipped to the US only in Russian vessels... lets see how long the ban lasts...

    Exactly. Not many can recognize the shortcomings from such moves, and reason why US won't do it. But they think if US does, it's the end. Just means complete end of US/Russia trade, we're US benefits from such trade vs Russia we're their gains are lot less.

    Russia is already moving Eastward rather than west. So the debates are over. Essentially, Russia is moving to China. And while some love to push rumors and theories of China taking over Russia, it is because they don't know China at all first off, nor do they seem to realize they blame China for everything US does.

    US has a history of Invading neighbors and other nations. China not so much.

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