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    Russian Economy General News: #1

    sepheronx
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    Post  sepheronx Thu Jan 16, 2014 4:37 pm

    Austin wrote:High Speed Railway Postponed  cry 

    Medvedev: Russia’s government to postpone Moscow-Kazan high-speed railroad project

    Thats a shame. Instead of postponing it, they should stretch out the financing of it to longer term to make it easier to pay for. The high speed railway is very important and in some areas like California, it can generate an annual $1B. Not to mention the amount of money going to and from Moscow and Kazan. Hope they do go back to this project. It is well known that infrastructure development is important to long term growth but how can you get thag if they postpone such projects? Unless they are waiting for olympics to be over to then concentrate more money and resources to these other projects?
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    Post  medo Thu Jan 16, 2014 8:30 pm

    Austin wrote:US will simply impose economic sanction Russia and Iran or their respective banks. They have already warned on this.  So it would be naive to go with such deal.


    I doubt US will dare to impose sanctions against Russia. The process of deamericanization in the World is going well and with such moves US will do even more harm to itself. The biggest fear for US is, that the World will stop using Dollars. Russia is self sufficient and one of larger exporters. It will not last long, when US will more need Russia than Russia will need US.
    TR1
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    Post  TR1 Thu Jan 16, 2014 9:09 pm

    Austin wrote:
    sepheronx wrote:Reading your drivel is annoying Austin.

    Relax its just your young 20's that annoying you .....me in mid 30's find no harm in asking for a POV  Laughing 



    Now for some news sepheronx may not like  Wink 

    OECD: Corruption and traffic jams biggest problems for Russia’s business climate

    Hehe, too true.
    sepheronx
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    Post  sepheronx Thu Jan 16, 2014 9:44 pm

    TR1 wrote:
    Austin wrote:
    sepheronx wrote:Reading your drivel is annoying Austin.

    Relax its just your young 20's that annoying you .....me in mid 30's find no harm in asking for a POV  Laughing 



    Now for some news sepheronx may not like  Wink 

    OECD: Corruption and traffic jams biggest problems for Russia’s business climate

    Hehe, too true.

    Make yourself useful and contribute please.
    sepheronx
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    Post  sepheronx Fri Jan 17, 2014 7:36 am

    AvtoVAZ sales drop 12.1% YoY

    SAMARA, January 10. /ITAR-TASS/. Sales of Russia’s leading automobile manufacturer AvtoVAZ fell 12.1% year-on-year in 2013, the company’s press office told journalists Friday.
    In 2013, AvtoVAZ sold a total of 534,911 LADA cars.

    In Russia, LADA dealers sold 456,309 vehicles, recording a 15.1% year-on-year decline. Meanwhile, exports went up 11.4% in year-on-year comparison to 78,602 LADAs.
    In December 2013, AvtoVAZ sold almost 47,000 LADAs, 5% more than a month earlier. LADA dealers in Russia sold almost 39,000, showing a 6.7% month-on-month growth.

    LADA Granta led by sales in 2013 (over 166,000), thus retaining leadership for 16 months in a row.
    In December, LADA Kalina New broke through to second place with 8,460 cars sold, 51.6% more than a month earlier. In 2013, the company sold almost 27,000 new generation Kalinas in Russia.

    The press office said the overall economic situation in Russia and pessimistic macroeconomic outlook dragged on car sales growth in 2013, putting potential buyers off costly durable purchases. Launch of the new generation LADA Kalina and LADA Priora was accompanied by a temporary decline in production, while many buyers were reluctant to buy in anticipation of cheaper models Standard and Normal. Besides, the press office adds, AvtoVAZ still has difficulties with logistics and suppliers, the latter now only striving for the planned supplies of components for new LADAs.

    In Red

    I remember back in 2009/10, the biggest hit to the economy was the media. Media kept over playing (here) how fragile the economy was. In that instance, people starting hoarding money and ultimately, it lead to even more loss for businesses and more people out of work and business. Money circulating is what helps economy grow, especially when (and if) the government decides to fight inflation. People keeping it all in hopes they can help themselves if the system does not do as well, is an issue in itself and people need to get out of this by spending. But the trend that Autovaz is selling quite well on foreign market than what it was in the past, with Lada granta sales leading, shows that there is a demand for Russian automobiles. Now they just need to continue to improve the Granta line, and other popular vehicles and they will be set. I find the part regarding spare parts being an issue; as Canadian company Magna operates in Russia now and is major supplier for all things spare parts for automotive. Maybe facilities not opened yet.

    Oise in high demand outside Russia

    In total, the company has supplied abroad 10,421 car. Cars were set in 20 countries. The increasing popularity in foreign markets acquires SUV UAZ Patriot. By the results of 2013 the volume of exports UAZ Patriot grew by 25% compared with 2012. UAZ Pickup also in 2013 increased sales growth of 7%.

    There needs to be further pushes of Russian products like automobiles on the market.

    Investment in fixed assets grow by 0,2% in Russia in 2013
    MOSCOW, January 15. /ITAR-TASS/. Growth of investment in fixed assets has made 0.2% year-on-year in Russia in 2013, Russian Minister of Economic Development Alexei Ulyukayev said on the sidelines of the Gaidar economic forum in the Russian capital on Wednesday.
    “Despite the fact that we have nearly zero growth in investment in 2013 we have attained all the same in the last quarter that it is positive making 0.2% formally (year-on-year),” the minister said.

    Not much of a growth but better than nothing.
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    Post  Cyberspec Fri Jan 17, 2014 8:10 am

    Viktor wrote:In line with the economic philosophy of the new financial minister.

    Russia needs to boost small businesses in 2014, Medvedev tells Gaidar Forum

    Bound to fail if Medvedev is running it  Very Happy 
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    Post  GarryB Fri Jan 17, 2014 9:03 am

    If the US wants to impose sanctions against Russia over its oil deals with Iran then that is their choice.

    Of course if they want to be able to build 2,000 odd F-35s they might find they can't if Russia imposes sanctions right back at them... without titanium there wont be F-35s.

    Or Indeed they could stop selling the US rocket engines... there are quite a few things they can do to a very verbally hostile US.
    TR1
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    Post  TR1 Fri Jan 17, 2014 9:13 am

    What sanctions can they even do, in this context.

    How much effect can the US even have on Russian oil companies?

    Nobody is taking about overall, sweeping sanctions.
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    Post  sepheronx Fri Jan 17, 2014 2:17 pm

    TR1 wrote:What sanctions can they even do, in this context.

    How much effect can the US even have on Russian oil companies?

    Nobody is taking about overall, sweeping sanctions.

    My understanding is Us has little real investment in Russia (other than NGO's spreading their agenda and funding questionables) so whatever leaway they did have on Russia was in the 90's and gone (Victor had that good article from a few pages back) so an embargo from them is really meaningless. Russia as well cannot do much to them but not sell the needed Titanium (for both civil and military), LNG and its investments in USA which can be pulled and brought back to Russia (which is more needed now than ever). All that will really do is raise prices on certain goods but neither side can do that much damage.

    Hence why China is a far better partner to Russians than US. There has not been any fear mongering over Russia by China for at least 30 years and they dont threaten to place embargos. While US does.

    Cyberspec wrote:
    Viktor wrote:In line with the economic philosophy of the new financial minister.

    Russia needs to boost small businesses in 2014, Medvedev tells Gaidar Forum

    Bound to fail if Medvedev is running it  Very Happy 

    He wouldnt and it has been mentioned out of the 4 million business registers last year, 3.5 stuck around which is a pretty decent number compared to USA where most start ups have not done as well. If they can remove the red tape, and make things both financially and beaurocratically easier to start a business, then many more will open.
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    Post  magnumcromagnon Sat Jan 18, 2014 7:12 am

    sepheronx wrote:
    Austin wrote:High Speed Railway Postponed  cry 

    Medvedev: Russia’s government to postpone Moscow-Kazan high-speed railroad project

    Thats a shame. Instead of postponing it, they should stretch out the financing of it to longer term to make it easier to pay for. The high speed railway is very important and in some areas like California, it can generate an annual $1B. Not to mention the amount of money going to and from Moscow and Kazan. Hope they do go back to this project. It is well known that infrastructure development is important to long term growth but how can you get thag if they postpone such projects? Unless they are waiting for olympics to be over to then concentrate more money and resources to these other projects?

    This is why I don't like Medvedev, it should be noted in America it's been estimated for fast-rail that for every dollar of cost yields between $1.70 and $2.50 of benefits:

    http://elpc.org/benefits-of-high-speed-rail


    ...Let's not forget a lot of Russians won't have to stress over icy roads as much, Russia has so much vast untouched land that it's a country that needs fast-rail more than any other country in the world, if they have trouble financing it then they should call up Beijing for assistance, because the Chinese already have plans on investing in Russian infrastructure anyway for the purpose of obtaining minerals and raw materials, why not start here? Moscow to Kazan rail is too timid and meagar, make it a Moscow, St. Petersburg, Kazan, to Vladivostok rail system.
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    Post  GarryB Sat Jan 18, 2014 8:21 am

    High speed rail links from the Pacific to Europe should be a real money maker...
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    Post  sepheronx Sun Jan 19, 2014 1:31 am

    I had a good conversation with a guy at work (HR - Statistics) and he said something interesting regarding global economy.

    Pretty mich, he stated that it appeared to be controlled/Fabricated and it really has more to do with banking and strength/control than it is about an end product. He further explained that back in London, it was the manufacturing center for England, yet now, they produce nothing. Whats making it grow is its influx of foreigners and the stock exchange, while it still sells British culture to many other countries (former colonies).

    Russia is a large economy with many enterprises. Whats funny is the magical words that get thrown around like: Corruption, Diversify, Multiculteralism, and less regulations. But, if you look at the more prospering countries like India and China, they have massive corruption. About as much or more than Russia (no, the transperency index is not a good indicator as it relies on perception). So corruption can only be a factor, amd possibly a small one. Ok, then what about diversified economy? Well, what does that mean? If you look back from the late 90's and early 2000 to now, Russia had still quite a few industries building high tech products, heavy industrial goods and Energy development. It was pretty diversified. But now, you have significantly more, with Nanotech companies popping up, car manufacturing up, more personal wealth for domrstic consumption, more semiconductor facilities, ect. Yet, in all of that, people are saying they are not diversified. So what does that word mean then? In the end, it ends up as a perception more so than anything else.

    Ultimately, what was boiled down for me, was that because of Russia's politics, and lack of control, will make it never rich. They have products built in Russia en mass, but no one buys them outside of CIS countries cause they are competitors and so tarrifs destroys sales. Maybe, propping up its neighbours to be economically strong, will help Russia in long run in order to make sales of their other products. Or go the way they are now and not be successful. Because all Europe and China wants is your resources, not end goods. To sell end goods to China, there should be policies in place where both sides have to sell each other a # of end goods for each sector.

    There is no such thing as a conpetitive good, when the opponent will not import your product because it will compete with theirs.

    Edit: forgot to mention that since the market is already flooded with cheap end goods which will pretty much not end up doing any good for Russia if they competed against. Hence why you dont see Germany doing such manufacturing. USA does but a lot of the components are not made in USA, and the cost of the goods are expensive (Kirkland brand, Kitchenaid,etc).
    magnumcromagnon
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    Post  magnumcromagnon Sun Jan 19, 2014 5:26 am

    sepheronx wrote:I had a good conversation with a guy at work (HR - Statistics) and he said something interesting regarding global economy.

    Pretty mich, he stated that it appeared to be controlled/Fabricated and it really has more to do with banking and strength/control than it is about an end product. He further explained that back in London, it was the manufacturing center for England, yet now, they produce nothing. Whats making it grow is its influx of foreigners and the stock exchange, while it still sells British culture to many other countries (former colonies).

    Russia is a large economy with many enterprises. Whats funny is the magical words that get thrown around like: Corruption, Diversify, Multiculteralism, and less regulations. But, if you look at the more prospering countries like India and China, they have massive corruption. About as much or more than Russia (no, the transperency index is not a good indicator as it relies on perception). So corruption can only be a factor, amd possibly a small one. Ok, then what about diversified economy? Well, what does that mean? If you look back from the late 90's and early 2000 to now, Russia had still quite a few industries building high tech products, heavy industrial goods and Energy development. It was pretty diversified. But now, you have significantly more, with Nanotech companies popping up, car manufacturing up, more personal wealth for domrstic consumption, more semiconductor facilities, ect. Yet, in all of that, people are saying they are not diversified. So what does that word mean then? In the end, it ends up as a perception more so than anything else.

    Ultimately, what was boiled down for me, was that because of Russia's politics, and lack of control, will make it never rich. They have products built in Russia en mass, but no one buys them outside of CIS countries cause they are competitors and so tarrifs destroys sales. Maybe, propping up its neighbours to be economically strong, will help Russia in long run in order to make sales of their other products. Or go the way they are now and not be successful. Because all Europe and China wants is your resources, not end goods. To sell end goods to China, there should be policies in place where both sides have to sell each other a # of end goods for each sector.

    There is no such thing as a conpetitive good, when the opponent will not import your product because it will compete with theirs.

    Edit: forgot to mention that since the market is already flooded with cheap end goods which will pretty much not end up doing any good for Russia if they competed against. Hence why you dont see Germany doing such manufacturing. USA does but a lot of the components are not made in USA, and the cost of the goods are expensive (Kirkland brand, Kitchenaid,etc).

    Good post, as an American take my advice Russia's economy is more diverse than America's or Britain's. Almost all of America's and Britain's manufacturing industry's has left, which is quite ironic because the main basis of being a 1st world country is being industrialized; Russia is basically one of the handful of countries in the world that not only has vast amounts of natural resources but also has the technical industrial know how to make good use of the raw materials and mineral wealth, the ability to virtually produce most of it's own needs. Unlike America, Russia isn't dominated by massive derivative security fraud and hedge fund gaggles, Russia still has an indigenous manned space program, Russia produces the best rocket engines in the world, and most people recognize that space programs are the greatest science, industry, and economic drivers known to man.
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    Post  GarryB Sun Jan 19, 2014 7:37 am

    The secret to corruption is to give it another name.

    Don't say you are having to bribe government officials to get them to do their jobs... call it a tip...

    Don't call big business spending enormous money bribing law makers to change laws to allow them to make more money or shut out a rival or pay almost no tax... call the person doing the bribery a lobbiest...
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    Post  collegeboy16 Sun Jan 19, 2014 8:45 am

    sepheronx wrote:
    Ultimately, what was boiled down for me, was that because of Russia's politics, and lack of control, will make it never rich. They have products built in Russia en mass, but no one buys them outside of CIS countries cause they are competitors and so tarrifs destroys sales. Maybe, propping up its neighbours to be economically strong, will help Russia in long run in order to make sales of their other products. Or go the way they are now and not be successful. Because all Europe and China wants is your resources, not end goods. To sell end goods to China, there should be policies in place where both sides have to sell each other a # of end goods for each sector.
    IMO, Russia just needs to play it safe, no need to rush itself. If the other side just wants raw materials then dont sell, or better yet, jack up prices then use what you earn to prop up your industries so they can crush the competition. This way Russia may not become rich but they deny everyone else from being rich too.
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    Post  Austin Sun Jan 19, 2014 10:44 am

    Russian Finance Ministry to use Welfare Fund to support Rosatom projects


    We have agreed that Rosatom projects, too, may be implemented with the support of the National Welfare Fund,” he said on Sergei Brilev’s Vesti v Subbotu (News on Saturday) television programme on January 18.

    Siluanov did not specify the projects, but said that “these are very beneficial projects in terms of keeping our enterprises working and creating high-skilled jobs. But most importantly, we will get [enterprises] busy for decades ahead.”


    Deputy Minister of Economic Development Nikolai Podguzov said earlier this week that Russia might start one or two investment projects in 2014 using the money from the National Welfare Fund.

    “I think it would be good if we start implementing one or two projects in 2014,” he said.



    More than 40 percent of the National Welfare Fund’s assets will go into investment projects, First Deputy Prime Minister Igor Shuvalov said.

    “The decision has been made to leave the 40-percent limit unchanged. Some had proposed to raise it to 50-60 percent. However the president made the decision that the previously declared 40 percent was the limit for the government to observe,” he said.

    Shuvalov said that the 40 percent included 670 billion roubles from the Welfare Fund’s assets placed in Vnesheconombank and the funding to be earmarked for the modernisation of the Trans-Siberian and Baikal-Amur Railways and the construction of the Central Ring Road outside Moscow. This leaves 150 billion roubles that were earlier intended to be used for building the high-speed railway from Moscow to Kazan, Tatarstan, in the Volga region. “This project was discussed. It will not be dropped and instructions were issued to prepare a feasibility study for this project to see how much it will cost and how soon the investment can return. Only after that will we consider the possibility of financing the project,” Shuvalov said.

    “The Fund’s regulations allow it to invest up to 40 percent of its assets,” Putin said.


    He believes that the nine billion U.S. dollars attracted by the Russian Direct Investment Fund into joint investment projects could provide strong support for the National Welfare Fund’s financial commitments.

    President Vladimir Putin said that the government had made the decision to invest the Welfare Fund’s assets in transport projects such as the modernisation of the Trans-Siberian and Baikal-Amur Railways, and the construction of the Central Ring Road outside Moscow.

    “I know that the Russian Direct Investment Fund has prepared an impressive portfolio of infrastructure projects that have evoked interest among private companies, including foreign ones, which are prepared to act as co-investors,” the president said. “The Fund has already attracted about nine billion U.S. dollars’ worth of foreign capital into joint investment projects. I believe this money can provide strong support for the Welfare Fund’s financial commitments.”

    The president believes that long-term resources and the sharing of risks with private investors will ensure good returns on investment in Russian infrastructure.

    At the same time, Putin stressed the need to remember other projects such as the development of Moscow’s aviation hub, Siberia and the Russian Far East.

    The Russian government has also allowed the Finance Ministry to invest no more than 10 percent of assets from the National Welfare Fund in high-risk bonds.

    The government will make separate decisions in each instance. But its resolution “allows the Finance Ministry to invest a limited portion of National Welfare Fund’s assets (no more than 10 percent) in the debt obligations of foreign states with a higher rate of return (risk) than sovereign debt obligations that make up the biggest part of the Fund’s investment portfolio,” Siluanov said.

    Russia’s gold and currency reserves stand at about 520 billion U.S. dollars, and the National Welfare Fund amassed three trillion roubles (100 billion U.S. dollars) in 2013, growing by 7.8 percent.
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    Post  Austin Sun Jan 19, 2014 10:49 am

    http://en.itar-tass.com/economy/715146


    Russian Finance Minister Anton Siluanov said he expected inflation to be around 5 percent in 2014.

    Speaking of the rouble, the minister said he would not project any downward or upward trend in its exchange rate at the moment.
    As Ministry of Finance we must always make sure that the commitments we have made in the budget are fulfilled completely,” Siluanov said on Sergei Brilev’s Vesti v Subbotu (News on Saturday) television programme on January 18.

    “Even if the price of oil drops to 90 U.S. dollars per barrel now or even lower, we will be able to fulfill our obligations under a three-year budget,” he said.
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    Post  Austin Sun Jan 19, 2014 12:00 pm

    two questions who can answer

    1 ) What is the total FDI received by Russia in Year 2013 ?

    2 ) What is Brent Oil Price prediction for 2014 , 2015 and 2016 ?
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    Post  Austin Sun Jan 19, 2014 12:03 pm

    Found something for 2nd question 

    http://articles.economictimes.indiatimes.com/2014-01-14/news/46185545_1_price-forecast-gold-price-growth-forecast


    The bank cut its WTI price forecast for 2014 by 10.1 per cent to $88.75 per barrel, and for 2015 by 10.5 per cent to $85.00 per barrel.

    The bank trimmed its average 2014 Brent price forecast by 8.2 per cent to $97.50 per barrel, and 2015 by 4.5 per cent to $100.00 per barrel.

    http://en.ria.ru/business/20131202/185222691/Putin-Signs-Federal-Budget-for-2014-16.html

    The budget was based on an average oil price of $93 per barrel in 2014 and $95 per barrel in 2015-2016.
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    Post  Hannibal Barca Sun Jan 19, 2014 1:10 pm

    sepheronx wrote:I had a good conversation with a guy at work (HR - Statistics) and he said something interesting regarding global economy.

    Pretty mich, he stated that it appeared to be controlled/Fabricated and it really has more to do with banking and strength/control than it is about an end product. He further explained that back in London, it was the manufacturing center for England, yet now, they produce nothing. Whats making it grow is its influx of foreigners and the stock exchange, while it still sells British culture to many other countries (former colonies).

    Russia is a large economy with many enterprises. Whats funny is the magical words that get thrown around like: Corruption, Diversify, Multiculteralism, and less regulations. But, if you look at the more prospering countries like India and China, they have massive corruption. About as much or more than Russia (no, the transperency index is not a good indicator as it relies on perception). So corruption can only be a factor, amd possibly a small one. Ok, then what about diversified economy? Well, what does that mean? If you look back from the late 90's and early 2000 to now, Russia had still quite a few industries building high tech products, heavy industrial goods and Energy development. It was pretty diversified. But now, you have significantly more, with Nanotech companies popping up, car manufacturing up, more personal wealth for domrstic consumption, more semiconductor facilities, ect. Yet, in all of that, people are saying they are not diversified. So what does that word mean then? In the end, it ends up as a perception more so than anything else.

    Ultimately, what was boiled down for me, was that because of Russia's politics, and lack of control, will make it never rich. They have products built in Russia en mass, but no one buys them outside of CIS countries cause they are competitors and so tarrifs destroys sales. Maybe, propping up its neighbours to be economically strong, will help Russia in long run in order to make sales of their other products. Or go the way they are now and not be successful. Because all Europe and China wants is your resources, not end goods. To sell end goods to China, there should be policies in place where both sides have to sell each other a # of end goods for each sector.

    There is no such thing as a conpetitive good, when the opponent will not import your product because it will compete with theirs.

    Edit: forgot to mention that since the market is already flooded with cheap end goods which will pretty much not end up doing any good for Russia if they competed against. Hence why you dont see Germany doing such manufacturing. USA does but a lot of the components are not made in USA, and the cost of the goods are expensive (Kirkland brand, Kitchenaid,etc).


    There is no need to leave on denial. Tariffs, restrictions, and politics do play a role but if we speak about everyday family oriented industrial goods still Russia lacks BIG time.
    Lada doesn't sell in Germany not because Opel, Mercedes, BMW, VW are German, but because they can beat the crap out of the pure Lada.
    TV and refrigerators and air-conditions make no exports because Mitsubishi, LG, Philips, SONY, Panasonic are VASTLY superior than anything Russia can produce.
    There are no CPUs that can match Intel and AMD that's why we don't have any Russian laptops and not because we protect our-self's against Russia.
    ROSATOM sells like hotcakes cause they are BETTER than General Electric despite NPPs are much more STRATEGIC sector than f@@ing CD players and MP3s
    Sukhoi and Tupolev create flying machines better than Lockheed or Airbus that's why once they get full production their civil planes will expel Airbus from Europe despite the latter
    being French!
    So the key is to be good. And due to communism non individualistic consumption and the lost ground after the resolution of USSR Russia's small every day civilian industry is mostly laughable.
    You don't deny reality, you change it.
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    Post  Austin Sun Jan 19, 2014 3:37 pm

    ^^ Agreed except that Airbus and Boeing are vastly better than any Tupolev product till date , the saving grace would be MS-21 in narrow body market that can in future compete and excel their rivals.
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    Post  Austin Sun Jan 19, 2014 3:49 pm

    Vladimir Putin's interview on occasion of Sochi Games.

    I want Sochi Games to show the world a new Russia - Putin
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    Post  Austin Sun Jan 19, 2014 4:39 pm

    Russia Is Facing Stagflation, Central Banker Says


    Economists consider stagflation particularly tough to battle because, unlike recessions or periods of slowing growth with typically low inflation, cutting interest rates risks causing prices to spiral.

    While some officials and industrialists have called for a cut to interest rates to boost growth, the central bank has stood firm, saying that it needs to bring down inflation and that Russia's economic woes require structural remedies, not a monetary one.

    OECD said in a report released Wednesday that it sees Russia's economic slowdown as temporary and expects it to pick up to 2.3% in 2014 and 2.9% in 2015. It notes, however, that growth will lag behind average global expansion until 2030, unless structural reforms are made.
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    Post  Austin Sun Jan 19, 2014 4:41 pm

    Hannibal or any body can tell me if Structural Reforms is the key problem that impending growth as Russian Central Bank says it.

    What is the Structural Reforms needed ?

    Why are they not doing this Structural Reforms so far ?
    Hannibal Barca
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    Post  Hannibal Barca Sun Jan 19, 2014 5:41 pm

    Austin wrote:Hannibal or any body can tell me if Structural Reforms is the key problem that impending growth as Russian Central Bank says it.

    What is the Structural Reforms needed ?

    Why are they not doing this Structural Reforms so far ?

    Structural Reforms include all the legislative and bureaucratic changes that can make a market business and investment friendly.
    It also include fight against corruption, transparency, privatization fight against monopolies and environmental legislation.
    It can go even further including reforms in the banking sector, free movement of capital etc.
    In one word it means Westernization and decrease of the government control over economy, relaxation of  fiscal and trade balance policies etc.
    eg
    http://en.wikipedia.org/wiki/Index_of_Economic_Freedom
    http://en.wikipedia.org/wiki/Ease_of_doing_business_index
    http://www.doingbusiness.org/data
    http://www.doingbusiness.org/data/exploreeconomies/russia

    Especially in the last site you can find a ton of data.


    Yeah half of those reforms are much needed for Russia. Specially corruption and bureaucracy is a no-no for economic development. And banking sector need huge reforms.
    The other half is US lead rhetoric to degenerate emerging economies. Yet in the needed half, Putin said that Russia will be in the top 20 business friendly countries until the end of his presidency.

    If you ask me Russia needs this reforms to be more attractive for Western capital, but is not gonna see a lot of western investments anytime soon anyway  Laughing  and they will see a hefty rise of eastern investments anyway.
    What they need this reforms is mainly for the inner market. And yeah, inner market will gonna boost instantly if they resolve some long standing problems.

    Still, reforms or not, the Russian economy's fundamentals and real economy indexes raise fast enough that this is not what you call stagnation, but merely slowdown.
    Stagnation is when you have zero growth and a general dying out of the economy and a general notion that you have hit  a wall.
    Like Japan in the 90s, Europe today, USSR in the 70s. Today Russia certainly doesn't fall in this basket!


    Last edited by Hannibal Barca on Sun Jan 19, 2014 5:42 pm; edited 1 time in total

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