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    Russian Economy General News: #1

    flamming_python
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    Post  flamming_python Mon Sep 30, 2013 9:57 am

    Russian Patriot wrote:
    flamming_python wrote:Honestly it doesn't matter whether the money stays in Russia or not; if its in the pocket of some corrupt oligarch anyway.

    Putin's money has gone into some palace on the Black Sea coast or wherever it is. Real investment into Russia that is...

    Anyway; I don't even care - most important thing is that he's doing his job. If Putin can't guarantee results anymore, and if he can't guarantee the 6% economic growth that he promised as part of his 2012 election campaign; than he should move aside for someone that can.
    question is who ? I hope you don't say Navalny who is as corrupt as they come.


    Ivanox- Deputy Prime Minster - maybe but doubtful

    Rogozin- has chances , but honestly doubt they will pick him.


    Come to think of it I think Zybukov - has  most chances.
    Just out of interest; not that I'm in any way a supporter of Navalny (he has a dangerously high probability of being a Western agent), but how can you attest as to his corruption?
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    Post  Regular Mon Sep 30, 2013 10:07 am

    Russia is a nation of multimillion people who gave world famous scientists, engineers, artists. I have hard time believing that there's one man who can lead them. Russians are not stupid sheep who need Kadyrov to tell them what to wear what to eat and etc.
    As was mentioned before Ivanov looks president like material and there are other candidates.

    The problem I see that Russian opposition is weak and useless- there is really no choice for their candidate. Navalny is Don Kihot, hardly anything I would let to represent people and do politics.
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    Post  macedonian Mon Sep 30, 2013 1:19 pm

    Russian Patriot wrote:
    flamming_python wrote:Honestly it doesn't matter whether the money stays in Russia or not; if its in the pocket of some corrupt oligarch anyway.

    Putin's money has gone into some palace on the Black Sea coast or wherever it is. Real investment into Russia that is...

    Anyway; I don't even care - most important thing is that he's doing his job. If Putin can't guarantee results anymore, and if he can't guarantee the 6% economic growth that he promised as part of his 2012 election campaign; than he should move aside for someone that can.
    question is who ? I hope you don't say Navalny who is as corrupt as they come.


    Ivanox- Deputy Prime Minster - maybe but doubtful

    Rogozin- has chances , but honestly doubt they will pick him.


    Come to think of it I think Zybukov - has  most chances.
    I'd go with Lavrov if it were up to me.
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    Post  TheArmenian Mon Sep 30, 2013 2:10 pm

    I'll go with Lavrov too. But I am biased (because he is half Armenian).
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    Post  Russian Patriot Mon Sep 30, 2013 2:27 pm

    flamming_python wrote:
    Russian Patriot wrote:
    flamming_python wrote:Honestly it doesn't matter whether the money stays in Russia or not; if its in the pocket of some corrupt oligarch anyway.

    Putin's money has gone into some palace on the Black Sea coast or wherever it is. Real investment into Russia that is...

    Anyway; I don't even care - most important thing is that he's doing his job. If Putin can't guarantee results anymore, and if he can't guarantee the 6% economic growth that he promised as part of his 2012 election campaign; than he should move aside for someone that can.
    question is who ? I hope you don't say Navalny who is as corrupt as they come.


    Ivanox- Deputy Prime Minster - maybe but doubtful

    Rogozin- has chances , but honestly doubt they will pick him.


    Come to think of it I think Zybukov - has  most chances.
    Just out of interest; not that I'm in any way a supporter of Navalny (he has a dangerously high probability of being a Western agent), but how can you attest as to his corruption?

    its proven that he has offshore accounts which he does not deny.
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    Post  flamming_python Mon Sep 30, 2013 4:05 pm

    I'm going for Shoigu

    But I'm biased; because I'm Russian in body, but Tuvan in heart Cool 
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    Post  macedonian Mon Sep 30, 2013 4:08 pm

    TheArmenian wrote:I'll go with Lavrov too. But I am biased (because he is half Armenian).
    I'm not.
    I just think he's a really smart guy and a great diplomat.
    He's exactly what Russia needs.
    I don't think the 'foreign press' will ever accuse him of ruling Russia like it's a private feud too.
    Haven't heard of any affairs about him either. No corruption accusations or anything of the sort.


    flamming_python wrote:I'm going for Shoigu

    But I'm biased; because I'm Russian in body, but Tuvan in heart Cool
    Meh, the last strong president you guys had was Macedonian (Malenkov came right after Stalin)...pirat


    Last edited by macedonian on Mon Sep 30, 2013 4:30 pm; edited 1 time in total (Reason for editing : Hubris and bias)
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    Post  flamming_python Mon Sep 30, 2013 5:59 pm

    Lavrov is an interesting character.

    I just have a hunch that he himself would not be interested in running the country.

    Besides, he is very much a specialist. For a president - you need an all-rounder, and an effective manager of people. Lavrov's success in the Ministry of Foreign Affairs may not neccesserily translate; he would no longer be representing his country's interests before other powerful people; but now running his country's interests himself.

    Presidents, Prime Ministers and such rulers tend to turn out best from the managerial roles; where they have experience with positions that give them direct control over huge amounts of people or resources. It's no surprise to see rulers or potential rulers come from the cadres of wealthy businessmen & CEOs (Ivanishvilli), industry/enterprise managers (Lukashenko), military generals/admirals (De Gaulle), intelligence service directors (George Bush Snr.) and career politicians with a history of managerial responsibilities (Yeltsin)

    Shoigu would be ideally placed with his experience at the helm of vast structures; i.e. EMERCOM, Moscow region governor and now the MoD.
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    Post  macedonian Mon Sep 30, 2013 7:49 pm

    I share your view of what best qualities for one to be a successful leader are, but that's exactly why I think Lavrov tops all others...

    Managing people isn't that hard when you're on the top. Everyone is supposed to listen to you. You're their boss.
    What's really hard though - is distinguishing between which people do indeed bring value to the team, and which are merely mediocre wimps sucking-up to you for position, money, power and privileges. You'll find the later in far more quantity than the former in any power circle.
    Anyone who can distinguish between these types, and keep his distance from the later, is bound to be a good leader. Putin, being an ex-KGB agent is good at this. He's paranoid enough not to trust anyone fully. In the current constellation I can't really blame him. What Putin lacks though is finesse and clarity. Lavrov lacks neither.
    Putin likes Rogozin a lot, you might even say he sees him as his own replacement (at least according to me) because of Rogozin's roughness, and his firing speeches. I think this is a big mistake. Rogozin was a great ambassador at NATO. Not sure if he'll bring the much needed change in the MIC. Time will tell... But he's certainly not presidential material. He strikes me as one who can be easily played by the said sucking-up wimps. Too much emotion for a good leader. Lavrov on the other hand is always analytically thinking. I've never seen the man confused, or not sure what to say. Speaks volumes about his character. I've seen him fire up an answer and shutting the mouths of the news reporters from international media, leaving them with nothing to say...I'm not sure how many times they had to cut/edit/modify the footage of their journos interviewing Lavrov over at CNN and BBC, but my guess is - a lot!
    So he's got class and character, and isn't afraid to lash the truth out...doesn't seem too much of a diplomat's CV - yet the man is one of the best diplomats ever. As much as I respect Putin, and what he has done for you guys, and indeed for the whole world, I think he's few classes below Lavrov. If Lavrov was ever to become a Russian president, you guys just might have the best ruler ever...

    (well second best, after the Macedonian guy you had, that is...Twisted Evil )
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    Post  flamming_python Mon Sep 30, 2013 10:39 pm

    Lavrov is an excellent diplomat.

    But I just don't see the sort of... ambition perhaps? Or vision maybe.. in him that a presidential candidate should have.

    Besides which, he is an excellent specialist in his field; one of the most experienced diplomats in the world if not the most.

    But that's his role and always has been; he's too good at diplomacy and hasn't shown a willingness to be versatile or to show his strengths in other roles.

    Nothing in the world can prepare you for being the president of Russia. Which means that the people you should consider for president are the sort of people who have proven themselves to be able to thrive when you just throw them into the fire, into a new position and expect them to give results. So Rogozin for example could be a possibility, although he would be a poor choice for many other reasons; but in terms of versatility he's good - he was put in charge as ambassador to NATO; did exactly the job expected of him - and now he was switched to a completely different role and has settled into his new responsibilities quite quickly too.
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    Post  TR1 Mon Sep 30, 2013 11:10 pm

    Lavrov just comes off as a badass.

    The word is still out on Shoigu the hobbit. I want to see if he actually cleans up corruption before stuffing his own pockets first.
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    Post  flamming_python Tue Oct 01, 2013 3:08 am

    My money's on Shoigu for sure

    He's charismatic, is positively perceived in public, is a 'new' face in the inner-circle, is universally liked by Liberals and Siloviki alike in the Russian government structures, seems to be competent and have a good track record, currently implementing a lot of new ideas in his role as Defense Minister.

    A bit like Kirov in his day; who also rapidly rose to prominence in Moscow after having come out of the deep and proving himself in difficult assignments in the Caucasus.
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    Post  Viktor Tue Oct 01, 2013 4:39 am

    4 months old but interesting points

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    Post  AlfaT8 Fri Oct 04, 2013 3:57 am

    US Set to Leapfrog Russia in Oil and Gas Output – Reports

    WASHINGTON, October 3 (RIA Novosti) - The United States is expected to leapfrog Russia as the world’s largest producer of oil and natural gas this year thanks to a surge in US fuel production driven by technology that allows energy companies to tap into oil and gas in underground shale rock formations, according to media reports and an independent energy agency.

    A report in the Wall Street Journal (WSJ) Wednesday said that the United States is “on track to pass Russia as the world’s largest producer of oil and gas combined this year – if it hasn’t already.”

    And the International Energy Agency (IEA) said in its Oil Market Report (OMR) for September that “the US is set to become the leading non-OPEC liquids producer” in the world as of the third quarter of this year, if biofuels are included in the calculations.

    Even if biofuels – which Russia produces in very small amounts while US production has risen sharply – are taken out of the equation, the United States is still nipping at Russia’s heels in terms of total production of oil and gas, the IEA said.

    The third quarter forecast for US oil and gas production was 10.3 million barrels per day or just 500,000 barrels a day less than Russia’s.

    According to the IEA’s Key Energy Statistics report, the United States was the world’s largest producer of natural gas last year, producing 681 billion cubic meters compared to 656 billion produced by Russia.

    Part of the reason why Russia is likely to be surpassed by the United States in total oil and gas production is because technologies like hydraulic fracturing, or fracking, which has allowed the United States to tap into shale rock to extract gas, have not been rolled out on a large scale in Russia.

    Fracking – which involves injecting water and chemicals into underground shale to release trapped gas – has also brought down the price of US natural gas by boosting supply.

    As US energy extraction and production have gone up, imports of natural gas and crude oil have fallen by 32 percent and 15 percent, respectively, in the last five years, the Wall Street Journal said.

    At the same time, however, the United States, which is a voracious consumer of energy, didn’t make it onto the top 10 of natural gas exporters in 2012, while Russia topped the list, selling 185 billion cubic meters of its natural gas production to other countries.

    “Since the US is such a big consumer of energy, the shift to producing more of its own oil and gas has left substantial fuel supplies available for other buyers,” the WSJ wrote.

    Lower US gas prices and increased availability give countries that import fuel another viable source for gas supplies.

    According to a report in the International Business Times (IBT), the US Department of Energy is reviewing “at least two dozen” applications to build export terminals for liquid natural gas (LNG), and Britain has already expressed strong interest in buying its gas from the United States, according to the IBT.

    The big loser in the story is expected to be Russia, which is currently the second biggest natural gas supplier to Europe after Norway.

    The Russian Academy of Sciences' Energy Research Institute has predicted that Russian exports of oil and gas could fall as much as 25 to 30 percent by 2015, which would reduce GDP by $100 billion and slash oil and gas-related duties and taxes, which currently make up more than 40 percent of Russian revenues, the WSJ report said.

    The United States is also narrowing the gap with Russia in crude oil production, lagging behind Russia by just 900,000 barrels a day in the first half of this year, compared to three million barrels a day a few years ago, according to the IEA.

    But not everyone in Russia is worried about being elbowed out of its dominant fuel market position by the United States, the WSJ said.

    The country is thought to have “one of the world's largest, untapped oil-bearing shale formations, creating the potential for a surge in production,” and the head of Russian energy giant Gazprom has said the US shale output boom is "a bubble that will soon burst," the newspaper said.
    http://en.rian.ru/russia/20131003/183929519/US-Set-to-Leapfrog-Russia-in-Oil-and-Gas-Output-Reports.html
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    Post  sepheronx Fri Oct 04, 2013 5:16 pm

    Good for US. If this lowers oil prices I am happy. This will push Russia to develop the other areas.

    US wont be major exporter since they only produce about 20% of what they need. Saudis will be hit more.
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    Post  Austin Fri Oct 04, 2013 9:07 pm

    The external debt of the Russian Federation for 9 months increased by 13%
    http://www.itar-tass.com/c16/900628.html

    Foreign debt as of October 1, 2013 amounted to 719.6 billion U.S. dollars, an increase of 9 months of 2013 to 83.2 billion dollars, or 13%. This is stated in the articles published today by the Bank of Russia.

    The growth of external debt from July 1, 2013 amounted to 13.4 billion dollars / 1.9% /.

    According to the statistics of the Central Bank, the current level of foreign debt of the Russian Federation is a record.

    Enterprises non-banking sector increased its debt for the first 9 months of 2013 by 61.2 billion / 17% / - to 426.7 billion dollars. For banks, this amount increased by 11.4 billion dollars / 5.6% / - to 213 billion dollars.

    The crisis of 2008, from extreme euphoria to an unexpected shock

    A positive current account balance has decreased by 52%

    The current account surplus in Russia in January-September 2013 amounted to 29.5 billion dollars, according to the materials of the Bank of Russia.

    For the same period in 2012 this figure was 61.5 billion dollars, so a positive current account balance has decreased by 52%.

    The size of the current account surplus declined consistently since the beginning of the year. If in the 1st quarter of 2013 it stood at 25 billion dollars, in the 2nd quarter it decreased to $ 3.4 billion in Q3 - up to $ 1.1 billion.

    According to preliminary data of the Central Bank, at the same time there was a decline and Russia's foreign trade surplus. In January-September, the figure decreased by 9% compared to the same period last year - up to 133.5 billion dollars. Exports for the first 9 months decreased by 1.3 percent - up to 382.7 billion dollars. The volume of imports, according to a mega-regulator, in contrast, grew by 3.4% - to 249.2 billion dollars.

    "Hopes for a quick economic recovery did not materialize"

    Russian President Vladimir Putin said on October 2 that the acute phase of the crisis is over , but hopes for a quick economic recovery did not materialize.

    "The general conclusion is as follows - the acute phase of the crisis overcome, the current risks are under control - said the president. - But hopes for a quick recovery of the global economy are not justified." The President stressed that "the crisis of the current economic model is structural, which means long-term." Therefore, in his opinion, a slowdown feel almost all countries, including Russia.
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    Post  Austin Sun Oct 06, 2013 8:32 pm

    MED expects that the amount of foreign direct investment in Russia up to 2013. will be about $ 70 billion (addition).

    09.27.2013, Sochi 17:34:33 The Ministry of Economic Development (Economic Development) Russia expects foreign direct investment in Russia up to 2013. will be about $ 70 billion, told journalists Deputy Minister Sergei Belyakov. He also expressed the hope that in 2014. this figure will be higher.

    According to the deputy head of the Ministry of Economic Development, to effectively address the challenges facing the Russian economy, you need a rate of inflow of direct foreign investments in the Russian Federation in the 70-80 billion dollars a year. S.Belyakov said that the influx of foreign direct investment in Russia in I half-year 2013. amounted to $ 54 billion

    According to Rosstat, the figure was 12.1 billion dollars difference in the data explained the deputy head of the Ministry of Economic orientation at the statistics department of the Bank of Russia. "They (CBR), a large number of sources are analyzed, they have a more objective picture," - said S.Belyakov.

    As reported, according to Rosstat, in the I half of 2013. Russian economy received 98.795 billion dollars of foreign investment, which is 32.1% more than in the same period last year. In the total volume of foreign investments in the I half of 2013. foreign direct investment accounted for 12.3% of the total, an increase of 2.1 percentage points (pp) higher than in I half-year 2012.

    The inflow of foreign direct investment in the Russian economy in 2012. According to Rosstat, increased compared to 2011. by 1.4% to 18.666 billion dollars

    Earlier, Prime Minister Dmitry Medvedev said that the increase in foreign direct investment of up to $ 70 billion per year is needed, in particular, in order to bring the country into one of the leading economies with high levels of well-being and enter into dvadtsadku states with the most favorable conditions for running business, and as a consequence, to solve the problem of outflow of human capital.
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    Post  Austin Sun Oct 06, 2013 8:48 pm

    Ulyukayev: Economic Development Ministry discusses providing over 1 trillion roubles to infrastructural projects
    http://www.itar-tass.com/en/c32/902915.html


    BALI, Indonesia, October 6 (Itar-Tass) - Russia’s Economic Development Ministry believes it possible to provide 1.2 trillion roubles from the National Prosperity Fund to implement infrastructural projects, Minister Alexei Ulyukayev said.

    “We’ll talk about 40 percent, but this is only our vision. This sum has not been recorded in any regulatory documents. It seems to be that 40 percent equals to 1.200 trillion roubles,” Ulyukayev said.

    A total of 450 billion roubles out of this sum are being invested in the well-known projects - to reconstruct the Trans-Siberian Railway and the Baikal-Amur Mainline, as well as the Moscow-Kazan high-speed railway. “We’d like other projects to be added to the priority ones,” the Russian minister said.

    It will be necessary to agree with the Finance Ministry how much funding may be provided from the National Prosperity Fund to investment projects, Ulyukayev said.

    “The Fund’s money can be allocated to implement the projects and not to be invested in financial instruments. We believe that investments in VEB deposits are another financial instrument,” Ulyukayev said.
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    Post  Austin Mon Oct 07, 2013 6:32 am

    $37Bln Could be Invested From Russian Rainy Day Fund - Minister

    MOSCOW, October 6 (RIA Novosti) – Russia’s Economic Development Minister said Sunday that up to 1.2 trillion rubles ($37 billion) could be taken from a rainy-day windfall oil revenue fund and invested in infrastructure projects as the Russian economy faces a growing risk of stagnation.

    The amount is 40 percent of the contents of Russia’s National Welfare Fund, a key fiscal buffer built up by the Kremlin during years of high energy prices.

    “At the moment we are talking about roughly 40 percent, but this is only an idea for the time being, it’s not fixed in the required documents,” Economic Development Minister Alexei Ulyukayev told reporters in Indonesia.

    President Vladimir Putin announced in a keynote June speech on economic policy that up to 450 billion rubles would be invested from the National Welfare Fund on an expansion of the Trans-Siberian Railroad, a new multilane highway encircling Moscow, and a new high speed railroad between the Russian capital and Kazan. Last week, Putin did not rule out that more money for other infrastructure ventures would also be required.

    “In line with reasonable criteria, we would like to add other projects,” Ulyukayev said Sunday.

    The National Welfare Fund, which currently contains the equivalent of about 4.3 percent of Russia's GDP, is forecast to contract to about 3.2 percent of Russian GDP by 2016, the World Bank said in a recent Economic Report. Another similar fund, the Reserve Fund, currently holds the equivalent of about 4 percent of the country’s GDP, according to World Bank figures.

    Former Finance Minister Alexei Kudrin, who was responsible for the creation and building up of Russia’s two rainy day funds during the 2000s, has warned that using the National Welfare Fund in this way could lead to a serious increase in the deficit of Russia’s Pension Fund.

    Officials expect economic growth in Russia to fall to 1.8 percent this year, its lowest level since the 2009 economic crisis. The slowdown has forced the government to implement budget cuts, and has stoked fears that Russia is entering a longer period of economic stagnation.
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    Post  sepheronx Mon Oct 07, 2013 7:22 am

    Stagnation is a hell of a lot better than falling economy. Stagnation just means that no further growth, and funds are more or less the same as before.

    Let me ask a question to many members here: Do you actually believe perminant growth is possible? Cause I know for a fact it isn't, and Russia's case is not secluded. Only problem is, many countries will look at even the smallest of developments as a form of growth, when their economy is either stagnant themselves or actually falling. China's economy is a perfect example of corruption and falsifying information. USA is another example. Their economy is strictly through banking and investment means. They don't even produce anything in their country anymore aside from a few things. Virtual growth. Russia has real growth showing, and I have been showing it on the other thread countless of times.

    Although, if they need more funding for infrastructure development, then dipping into the reserve fund is very good idea. Actually, 38B Is a lot in terms of investment, and very little in terms of the reserve fund.
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    Post  Austin Mon Oct 07, 2013 7:50 am

    Putin Promised 5 % Growth when he came to power and now its is ~ 2 % for 2013.

    One can argue that its better than EU growth rate but one can also argue its lower than China and India growth rate.

    But EU has Inflation at 1-2 % and Russia has inflation of 6 %

    All Said and Done they need to do more to improve growth invest a lot in Infra that directly increases GDP.

    May be in next 5 year like 2018 when the present President term ends they can invest around 300 - 400 billion USD in Infra Projects , Oil and Mininig industry etc that can boost growth,

    Borrow more as loans are cheaply available in US at 1 % interest and invest in Russian Economy that promotes growth.
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    Post  sepheronx Mon Oct 07, 2013 8:15 am

    China and Indias rise are because they have more undeveloped areas than Russia. By most, Russia is a developed country and developed countries have less to work around in to gain money other than penny pinch. India and China have cheap labour in the droves, Russia does not. Comparing these countries are pointless as they are not comparrible. Industrialization in Russia is second to Germany. What will Russia do?

    I read it a lot, but so far, no one brought forward a solution.

    Create more roads and buildings? They are already doing that. More factories? Yep, doing that. Increase wealth of individuals? Already happening.

    It is easy to say: infrastructure. But does people even understand what that means? That means temp jobs and buildings that may or may not be used. It is a virtual growth in various aspects, and not exactly true growth. Chinas ghost cities Austin. I mentioned that many times.

    Putin is a politician. I heard manmohan singh promise things too. I heard Harper promise things too. Problem is, actually following through and doing the job properly.

    Fight corruption? Losing battle since a large portion of population is corrupt, Regular himself admitting to using corruption as a way to get his way. Even if you fight it, will it increase the economy? Probably by a very small margin. Big companies dont like non corrupt ways because it is harder for them to get bigger if being legit.

    Build more roads and infrastructure? Ok, but what kind of infrastructure? I say newer electric grids and power plans is a good start. But outside of that, it is hard to say. Buildings for living is mostly dealt by private industries. Factories? Plenty are built and being built. Roads? Already happening. So what?

    Build enterprises to build goods like home stuff? Yeah...no. Russia isnt india or china. Their goods would cost way too much as wages are higher, and it is a very overtly inflated market already. They already deal with heavy machinery.

    The real problem is international. They need to push domestic development for sales domestically. They need to grab even more international players to build factories in Russia cause that is the only way that Russian made products will end up outside the country.

    It is better this way, because even if your economy isn't top 5, at least you will have strong nation and people will live better.
    flamming_python
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    Post  flamming_python Mon Oct 07, 2013 10:29 am

    Austin wrote:$37Bln Could be Invested From Russian Rainy Day Fund - Minister

    MOSCOW, October 6 (RIA Novosti) – Russia’s Economic Development Minister said Sunday that up to 1.2 trillion rubles ($37 billion) could be taken from a rainy-day windfall oil revenue fund and invested in infrastructure projects as the Russian economy faces a growing risk of stagnation.

    The amount is 40 percent of the contents of Russia’s National Welfare Fund, a key fiscal buffer built up by the Kremlin during years of high energy prices.

    “At the moment we are talking about roughly 40 percent, but this is only an idea for the time being, it’s not fixed in the required documents,” Economic Development Minister Alexei Ulyukayev told reporters in Indonesia.

    President Vladimir Putin announced in a keynote June speech on economic policy that up to 450 billion rubles would be invested from the National Welfare Fund on an expansion of the Trans-Siberian Railroad, a new multilane highway encircling Moscow, and a new high speed railroad between the Russian capital and Kazan. Last week, Putin did not rule out that more money for other infrastructure ventures would also be required.

    “In line with reasonable criteria, we would like to add other projects,” Ulyukayev said Sunday.

    The National Welfare Fund, which currently contains the equivalent of about 4.3 percent of Russia's GDP, is forecast to contract to about 3.2 percent of Russian GDP by 2016, the World Bank said in a recent Economic Report. Another similar fund, the Reserve Fund, currently holds the equivalent of about 4 percent of the country’s GDP, according to World Bank figures.

    Former Finance Minister Alexei Kudrin, who was responsible for the creation and building up of Russia’s two rainy day funds during the 2000s, has warned that using the National Welfare Fund in this way could lead to a serious increase in the deficit of Russia’s Pension Fund.

    Officials expect economic growth in Russia to fall to 1.8 percent this year, its lowest level since the 2009 economic crisis. The slowdown has forced the government to implement budget cuts, and has stoked fears that Russia is entering a longer period of economic stagnation.
    They have a big pile of money that they're sitting on, and now they want to go and introduce this money to the economy.

    I dunno. Sounds like a sure way to push up inflation. Better to attract some international investment into these projects and maybe back the investor's money partially with this money.
    But I'm no economist.
    sepheronx
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    Post  sepheronx Mon Oct 07, 2013 11:49 am

    If the will of foreign business will open in Russia, they will. It is about attracting these businesses. Best option is implementing new laws stating "if specific amount of x good is sold in country, then manufacturing needs to be opened for x good". Problem is securing the borders, as people will start smuggling goods over the border from China.

    Too much rage and fear in media over Russia, so many businesses are afraid to do business in Russia (mind you, ones who do, and do it legitly, end up wealthy in the end of it), and the more Russia increases, the less likely it will change as western media will forever call it the great satan.

    Relying on foreign investment is that same golden egg that was being pushed regarding oil and gas. Russia's troubles in 2008/9 was stemmed from a lot of foreign companies flying out of the.country, with the.money. no different if economic troubles hit again.

    Once again, heavy emphasis on domestic consumption. All the rest are simply short term. Foreign investments should only be really preached if it is opening up manufacturing goods that are much needed in domestic consumption that most people buy from outside.
    Viktor
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    Post  Viktor Tue Oct 08, 2013 5:37 am

    Putin seeks to boost trade with China to new record $100bn

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