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    Russian Economy General News: #1

    navyfield
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    Post  navyfield on Wed Jan 22, 2014 9:18 pm

    ofcourse intel is superior in sigle threaded performance and going with 14nm in latter half of this year ,and amd is still at 28/22nm,
    amd is going with APU= cpu+ integrated graphycs all in one,with low power consumption, and good tdp.
    the russians are at what- 90nm? Laughing Embarassed dunno tongue tongue clown geek pwnd pwnd 
    Viktor
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    Post  Viktor on Thu Jan 23, 2014 11:42 am

    When I saw this article yesterday

    Russian President Putin to have talks with Palestine's leader Abbas today

    I thought "something about Palestinians - nothing od interest, move along) ... but than ...

    Gazprom may develop gas deposits in Gaza Strip

     Very Happy Very Happy 
    flamming_python
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    Post  flamming_python on Thu Jan 23, 2014 12:13 pm

    Viktor wrote:When I saw this article yesterday

    Russian President Putin to have talks with Palestine's leader Abbas today

    I thought "something about Palestinians - nothing od interest, move along) ... but than ...

    Gazprom may develop gas deposits in Gaza Strip

     Very Happy Very Happy 

    Russia's gonna have a hell of a time negotiating an agreement with Hamas to let it drill in the Gaza Strip by using Fatah (Abbas) as an intermediary  Razz
    Viktor
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    Post  Viktor on Thu Jan 23, 2014 12:21 pm

    flamming_python wrote:Russia's gonna have a hell of a time negotiating an agreement with Hamas to let it drill in the Gaza Strip by using Fatah (Abbas) as an intermediary  Razz

    True but luckily HAMAS does not own a navy and sea is controlled by Israel  Very Happy 
    Viktor
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    Post  Viktor on Thu Jan 23, 2014 3:05 pm

     thumbsup 

    Energy ministry forecasts growing demand for Russian gas until 2035
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    Austin

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    Post  Austin on Thu Jan 23, 2014 4:20 pm

    came across this in an email from Stratfor

    Russia's Growing Regional Debts Threaten Stability
    Hannibal Barca
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    Post  Hannibal Barca on Thu Jan 23, 2014 5:32 pm

    I read it in the morning as well. Curious to listen to your comments Austin.
    sepheronx
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    Post  sepheronx on Fri Jan 24, 2014 6:23 am

    "
    Central Bank of Russia has begun closing some 800 smaller banks in a consolidation. Many of those banks were regionally based, and their closure is making investment in the regions less attractive.
    "

    This is where I stopped reading.  They have no idea as to why the banks are closing.  Maybe has something to do with the fact that there has been massive fraud, not seen since a long time among a huge portion of the banks.  Then there is the fact that it is more regulation, regulations that was long needed.  Not a bad article per se, but some factual errors.  But that is common in all articles.  Reason for so called unrest in the North Caucuses was not due to pure economics, but investments and pushes from outside forces like Saudi Arabia.  When sugar coating things, it really hurts credibility of the articles. Maybe I am looking too much into this.

    But the overall tone of saying "it is hard to manage such widespread regions" from the Kremlin is totally true. Issue is, how would you manage it? People are put into place and hope that they will do a decent job. Many times though, they do not due to incompetence or something else. Should all these regions turn into republics like Tatarstan, which has shown major progress? Because even if done, they will face the exact same issue, if they have the same problems. Ultimately, the Federal government would have to bail them out. It really is no different than here in Canada, when Alberta support two or more provinces.
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    Post  Austin on Fri Jan 24, 2014 7:18 am

    Hannibal Barca wrote:I read it in the morning as well. Curious to listen to your comments Austin.

    I will read it on the weekend and comment it.

    Meanwhile , A nice long interview after a long time from Finance Minister Anton Siluanov    Very Happy 

    http://www.echo.msk.ru/programs/exit/1243054-echo/
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    Post  Austin on Fri Jan 24, 2014 9:38 am

    Translation of Finance Minister Interview


    QUESTION - 20.05 in Moscow. Good evening, everyone . This program "Looking out" . At the microphone Venediktov . Today an hour with us , Finance Minister Anton Siluanov Hermanovitch . Good evening.

    A. Silwan - Good evening.

    QUESTION: - The first question this morning was generally come first question ruble ready skopytitsya - asks corcornilov. What happens to the ruble. First he crossed a border in April 2009 in 34 rubles per dollar. This is a policy or tripped ?

    A. Silwan - You just said first crossed from April 2009. That is such fluctuations of the ruble were already on our currency market were in our history. And here is really the situation develops in waves . Because in certain stages ruble appreciated . At certain stages of the ruble weakens . What is happening now . Indeed since the beginning of the year we see a weakening of the ruble , about 3.6 %. Lot or a little . In principle, it is of course a bit. Because if you look at the past year , as moving the currencies of countries with developing economies , there is for certain periods short enough currency changed , weakened by 20-30%. But it was the basis for this . Basis is the policy of major countries issuing reserve currencies such as the U.S. , the eurozone , Japan, primarily the United States last year said only the intention to reduce its program of so-called quantitative easing. Ie printing money . Reduce the number of printing dollars. This policy now officially declared that yes indeed this year the U.S. will gradually phase volume printing . This is absolutely correct, because the U.S. economy is showing enough sustained high rates of growth, unemployment is falling . It had two main key points to the U.S. Federal Reserve decided to minimized this policy. So when it is folding, what is happening. The following occurs. Interest rates in these countries and thus increase capital flows around the world are looking for more expensive where you can invest your money, capital flows , respectively flock to these countries . And of course , some investors think, yeah , the U.S. will collapse printing money , increase the value of money , so I'd better invest in some U.S. assets and the more reliable value of these assets will grow. So the money from emerging markets gradually bring better .

    QUESTION - including with Russia .

    A. Silwan - including with Russia . In the past year , by the way , we almost did not feel it . We though there is some weakening of the ruble , but it was not significant. This year , when you ask , and what happens to their pocketbooks. I would like to say the following , several factors . First - after the U.S. decision on termination of quantitative easing and the outflow of funds from the Emerging Markets . Part of this course and Russian concerns . But it once again, I do not see any global factors for action.

    QUESTION - You have not see a problem with that.

    Silwan A. - Yes . This is the first . And the second . Still, it's CB policy , the policy of the monetary authorities . The fact that more and more ...

    QUESTION - Our .

    Silwan A. - Yes, of course . More and more to make a free-floating ruble . Ie CB policy is absolutely right ...

    QUESTION - So you support.

    A. Silwan - Absolutely . Is to make the ruble exchange rate flexible, floating , so that there was no artificial restraint , as used to be. In 2008, we artificially constrained ruble, and then we had to let go rapidly . This leads to distortions ...

    QUESTION - Devaluation or not?

    A. Silwan - Now ?

    QUESTION - Yes .

    A. Silwan - I in no way did not say a word about this .

    QUESTION - This I ask .

    A. Silwan - I do not agree with this assessment. We are talking about changing the exchange rate policy . Now little podoslab course . But I always say that the economic base of any reason to say that this trend will continue further , no. Let's see , because what is the course. How did he even formed . It formed the basis of the balance of payments situation of the country. Any country , Russia and other countries and so on. And what is the balance of payments. It flows , outflows of currency into and out of the country. What kind of flows. This export revenues . From our first non-raw material resources. This inflow of foreign exchange . This influx of capital into our country , this inflow of foreign exchange through services arrive foreigners brought here to spend . What outflows . This payment has on our imports. This capital flight . And so on . Our citizens are also trafficked there currency. And so the course depends on how and what is the difference between inflows , outflows of currency into the country , and especially the so-called current account . This is mainly export-import operations . So now we have still a surplus between exports and imports



    QUESTION - Inflow more.

    A. Silwan - Inflow more from the sale of our goods abroad than from buying imported goods. Therefore , despite the fact that this balance has waned somewhat in the past year , however , we have a sustainable balance of payments and to say that we have any risks for the currency , no.

    QUESTION - I want to give you one figure . There was a recent poll: Which currency do you keep the savings. RUR keep 40%.

    A. Silwan - Well, they are right .

    QUESTION - In this 53 have no savings . Ie from 47- 40 , then I think that it is stored in 80 rubles . So it bothers people that starts to weaken the ruble.

    Silwan A. - Yes, you know, right. It is necessary to keep the money in the currency in which you spend . And most of our citizens spends course in rubles. Because every day we go to the store, buy some services . Anyway, the common man and I , including now I do not need currency . I need the currency , if I go abroad. And I'm going there might be something to buy or live in a hotel, pay for it. Therefore, most of our citizens , of course, spends Dollars .

    QUESTION - why worry .

    A. Silwan - So, the fundamental reason for the ruble weakened or strengthened now, no.

    QUESTION - I mean, he now sways objectively , dangles .

    A. Silwan - you know , yes. CB may be a little less attention to become the currency market is not in the sense that attention to , and became less involved in the market. It does everything right . Because we talked about that a couple of years we should all send the ruble to float freely.

    QUESTION: - That is to cancel the corridor ?

    Silwan A. - Yes , including . And now the Central Bank gradually as it goes . Border corridor extends . Also absolutely the right decision. Because in any case can not hold back pressure on the ruble , because ultimately it will still result in one or another side dynamics of the ruble. CB task to restrain him sharp fluctuations of the ruble. In order to avoid sudden attacks in one or another direction. This CB and does and will do . Will intervene in the currency market , if he sees ...



    QUESTION - Threats hesitation.

    A. Silwan - It's true. Therefore, I see what happened here since the beginning of the year. First , the situation with the countries emitting reserve currency. Who said that we will no longer print money so much . And there will be a rate increase. Some investors out of our market. But it has not affected significantly , should not affect the currency market . The second is just the CB began to pursue a more liberal policy more flexible . Coursework and may not intervene in cases , which last year paid attention to it and would sell the currency market . Therefore, two such moments serious . But , nevertheless , the fundamental reason for the change of the ruble , they simply do not .

    QUESTION - In this regard , of course, our next question is a story with the budget. Some of our students by sending your questions , say that , judging by the budget deficit , one of our listeners sent over the Internet question: urgent need to reduce government spending or devalue the ruble . Did I understand correctly - he takes us back to the issue - that chose the second path (devaluation ) - and it will be the end of the year, 20-25% of the desired ( budget deficit ) .

    A. Silwan - 20-25 and again ...

    QUESTION: - He believes that the budget deficit so that the devaluation percentage should coincide with the budget deficit .

    A. Silwan - Here we had no such connection are building . When you said that some student made ​​a proposal to cut spending , I immediately thought of this: it must be immediately to the Finance Ministry to hire .

    QUESTION: - Email , dear , papastepanych.

    A. Silwan - But when you said that you need to do more and to devalue the ruble .

    QUESTION: - He believes that this decision public because formal charges in absolute numbers will not be reduced. That decision thus reduce costs is a suspicion of a policy to weaken the budget deficit .

    A. Silwan - Now I can say that these tasks either in the government or in the CB does not . Nobody is going to balance the budget by weakening ruble. This is exactly what you can say and responsibly .

    QUESTION - Why , Anton Hermanovitch ?

    A. Silwan - you know ...

    QUESTION - The same path is used in other countries.

    A. Silwan - This way the crisis actually . We had a sharp devaluation or depreciation of the period of crisis , when we held this course , we have long held him , held and suddenly see that our foreign reserves are falling, there is no good there . You can keep the course , the logic was in the old format , if the pressure on the ruble will wear a certain period of time. But to constantly spend reserves in case of termination of this situation it is pointless. So we are talking about the need ruble flexibility so that reserves were ok and investors also know that we ruble fluctuates based on market principles.

    QUESTION - Provisions in the order once I told you that reserves were OK, I say , reserves right?

    A. Silwan - Provisions in order. Their order of 500 billion , a little less than 500 billion dollars.

    QUESTION: - That's a lot or a little country? I can not say anything.

    A. Silwan - That's a lot . And far exceeds those recommendations and the IMF and economic organizations in the world , who say that the reserves should be at the level of the two-month imports. We have several times higher than this parameter . However , returning to the subject. And you know, we really need to talk about balancing the budget, but due to two factors . First , this increase still more income , we are currently building a plan . Since we have reserves for this .

    QUESTION - especially if Iranian oil will reach the world market.

    A. Silwan - primarily in the informal sector of the economy. I'm not talking about oil and gas revenues . And the second is the big payoff , the high efficiency of our expenses . Both are going to do this year. Last year we had a deficit of half a percentage point of GDP , we will increasingly cut than planned . 0.8% planned 0.5 cut . This year we plan deficit of 0.6-0.7 % of GDP. And we think that it is quite able to provide without any changes of monetary policy .

    QUESTION - In this regard, Russia is a country very rough, I mean both geographically and economically . Our region 83 , in my opinion , very different .

    A. Silwan - It's true.

    QUESTION - In their budgets. You can tell by now , or at the end of 2013 , may already clear in January , as we have regions that are either self-sustaining or donors.

    A. Silwan - We have such a gradation . Donor or recipient .

    QUESTION: - Total double . All right.

    A. Silwan - But it is believed the donor and recipient to a simple formula. Did you receive assistance from the federal government on the so-called alignment of budgetary security . That is, if you have your security budget , ie the budget revenues per capita than the average or not. If you take all the regions , and calculate what the average amount of revenue budgets of the regions per capita, and from this view , and which regions have a higher income.

    QUESTION: - Left, right .

    A. Silwan - Those on the right, which is higher in such regions 11.

    QUESTION: - From 83.

    A. Silwan - But by then , that these regions or large commodity .

    QUESTION - Khanty-Mansiysk .

    A. Silwan - For example , Moscow, Khanty-Mansiysk, Tyumen, St. Petersburg, or are major financial centers of the capital to the economy. Or raw Tyumen , Yamal -Nenets and so on. So they knocked sharply from the average . That is , suppose Moscow has fiscal capacity is twice the average .

    QUESTION - A Moscow at the expense of what? Through taxes ?

    A. Silwan - Well, of course , first of all , here the main business centers . Financial center. Here large property complexes . Who pay taxes. So before , oddly enough , we paid extra for the Moscow metropolitan functions. And then they said , listen, Moscow, as the capital of the contrary you have an advantage in terms of residency and tax , so contrary to all the threads you stretch . And canceled this supplement .

    QUESTION - So was your suggestion that I would like you to explain. But , anyway , we obtuse journalists received her so ...

    A. Silwan - I do not agree with this definition ...

    QUESTION - We obtuse . This self-determination. We understood so that if for some time the region is not making progress in the area of ​​budget deficit reduction , the Governor should dismiss . Just take and dismiss . What do you mean ?

    A. Silwan - No, it's not about that. It is the following . The fact that the quality of budget planning , budget execution in a number of different regions. That there are many regions in the planning of its own budget approach irresponsible , I would even say irresponsible.

    QUESTION - You said the word "many" . I heard correctly ? Tens ?

    A. Silwan - I would say a number of regions . We can say that just a dozen . Of 83 .

    QUESTION: - Only once explain what you call irresponsibility .

    A. Silwan - now I want to clarify . Namely overstate income , lay there air sources of revenue , which obviously can not be. Over- funding of the budget deficit .

    QUESTION - What do deliberately , and not by mistake.

    A. Silwan - Do deliberately , hoping to chance . On Russian maybe . Well, during the execution of the budget look, the Finance Ministry will throw something , there may be additional revenue , the budget will give us credit .

    QUESTION - By Vladimir Vladimirovich 'll make it .

    A. Silwan - Yeah, yeah . Will the resolution instructed the Ministry of Finance and will give extra help . Unfortunately, this is not so . All this leads to the fact that already during the execution of these means have the budget and have cutting living by what is called . And the worst thing is when you count on something , there is a certain expectation from recipients of funds . There may even be a contract to sign . And they have to cut here and penalties, and business you know what the consequences .

    QUESTION: - That is irresponsibility in your understanding is not a lack of income , inability to find income, and self-deception at least in the planning .

    A. Silwan - Absolutely . And so we say that those regions that are engaged in self-deception and deception of its people in the region, its citizens who including voted for governor, and elected Legislative Assembly , which voted for the budget , so we just fooling them . And it is generally unacceptable in terms of the position of the government. Because if we included some budget allocations , they should be executed. Anyway, we at the federal level to this tough going. We did last year was a situation that we can be more optimistic predicted revenues from privatization , somewhat optimistically predicted no oil and gas revenues , but we , nevertheless , did not cut costs. We fully performed all of our obligations. Yes, we had some way to change their ideological approaches and we are not breaking the budget law, nevertheless, sent part of the oil revenues to perform those obligations . But we made them . We provided. And some regions they have to cut ...

    QUESTION: - And then ?

    A. Silwan - And then we believe that this is a non-governmental approach . We believe that such cases certainly must be the point when the activity is valued leadership of the regional administration . But now we do not offer any action in law . Say , oh, so badly planned , go into retirement. Of course not . It is not our task . Not minfinovskaya task. Not the task of the budget legislation . This task has been our leaders , who generally looked upon as a subject of the Russian Federation in the case , how effective is this or that leader.

    QUESTION: - But there are critical areas?

    A. Silwan - There are regions ...

    QUESTION - I'm not saying the recipients , it is clear there is a North Caucasian republics . But here's a critical situation with the budget.

    A. Silwan - You know , oddly enough , there are regions that are in fairly good position , the middle peasants . But where such irresponsible fiscal policy led to huge debts that accumulated regions that exceed ...

    QUESTION: - Before the federal budget ?

    A. Silwan - No . To commercial banks , the federal budget. Generally yes. That is, take as much as possible in the hope that maybe you see, then write off the Federation budget credits , maybe help financial aid. It is not the same cast . Indeed , we do not throw the subjects of the Russian Federation . And remember, it was a long time already , thank God, with the Moscow region was the situation on foreign liabilities , in any case we have helped and will help actors defaults regions will not.

    QUESTION - This is very important .

    A. Silwan - But it defaults to allow the situation says that illiterate financial policy, at least have to raise the question of the effectiveness of the Finance Minister , as he was unable to provide all the risks , failed to prove the region's leadership on the inadmissibility of such a policy. And a number of regions such accumulated debts, does not know what to do. And of course here we are connected in the sense ...

    QUESTION - What to do . If you say , the federation of default will not allow that right. But what to do? I'll be nice to know that gathering a debt, and pay for me dad always would not allow my family ...

    A. Silwan - We say that in this case you need to look at the effectiveness of the management team throughout the region. It's time. The first finance minister. Second , in such cases we can conclude agreements with the regions did not increase and the reduction of these debts . Somewhere we can really help and Budgetary credit. Not provide financial assistance to reduce the public debt. But provide full service with the region and the repayment of those obligations , bearing in mind that such debts should not be increased . Given the still increasing the tax base , the specific ratio of debt to income tax should be reduced gradually . And gradually, in this situation the region has to get out of the red zone is called


    QUESTION - You can tell how many regions in the red zone in your understanding ? Now the debts .

    A. Silwan - About the sharpest about five .

    QUESTION - This is not the biggest regions .

    A. Silwan - It's not the biggest regions , but regions that have accumulated in the past debts.

    QUESTION - In this regard, as the North Caucasus republics observe budgetary rules . I would not say they are the recipients or donors , they are recipients . But as far as the problems of Chechnya, Ingushetia , Dagestan , Kabardino-Balkaria , Karachay-Cherkessia . How they in the area of debt?

    A. Silwan - you know , assume all debts in Chechnya not.

    QUESTION - How is it?

    A. Silwan - Because there was no need to borrow , because the program operated support the Chechen Republic, the economic recovery . True republic did not carry out large loans. Mean of these regions in the red zone regions you mentioned , they are not there . Because the amount of budgets, debt he largely controlled by the federal center . You know why? Because we have a budgetary norms that if you are highly subsidized regions , the Federation concluded an agreement with you . About what you're asking for costs , not whether you climb to the federal authority . We have many regions , including that accumulated debt can still fund the federal authority . For example , universities . Are universities in the region .

    QUESTION: - That there is some additional funding.

    A. Silwan - He decides , well, I'll help . Need help. Construction could be somewhere dorm good cause , it would seem , but at least you their powers are executed first , then the other is already being implemented .

    QUESTION - I recall live "Ekho Moskvy" Finance Minister Anton Siluanov . A few minutes later we are back in the studio. While the news.

    NEWS

    QUESTION - 20.33 in Moscow. Anton Siluanov Hermanovitch Finance Minister . Here are our listeners by phone +7-985-970-45-45, sms not forget to subscribe , do not read unsigned . And, accordingly, through the Internet and via twitter account @ vyzvon. Yuri writes to us from Moscow: total debt of companies with state participation of 600 billion dollars, which is more than 100 billion of foreign exchange reserves . Is there a threat ?

    A. Silwan - you know , really in the last year we have increased corporate debt . A year ago the figure was about $ 500 billion . Is there a threat . We believe that, in general , if you look at the debt to GDP , it still remains low. Even compared to the sovereign debt of other countries. Therefore, our national debt is about 12 % of GDP. Everything else is about , if I remember correctly , that's 600 billion is based on our public debt GDP 35-40 . Therefore, it is absolutely uncritical debt for the country even with the private debt . That is why our company , taking on the foreign markets also make investments abroad . So if you look at the balance of outward investment and borrowing from the outside , in general, we have now the situation is about balancing . Even in some positions investments abroad higher than borrowing. So talk about some risks that the company did not pay its obligations , I believe there are no grounds . And in general, the situation was not a concern . Although the issue of debt capacity , especially state-owned companies , state-owned companies , and they acted as such borrowers , these companies should take into account , of course , risks , including foreign exchange risks . They must calculate any situation. If we talk about the current YTD some weakening of the ruble , these risks should be taken into account company that provides external borrowing . Although they are cheaper than ours, but there are risks but coursework . Therefore, we recommend to our representatives of state companies in making decisions about large external borrowing and the risk still do test for how the company will be able to service these loans. In different situations . So here on the one hand say again , the debt has risen slightly , reason to say that this is some risky situations , risky area we have , but , nevertheless , each company must have its tactics and policies in this area .

    QUESTION - Anton Siluanov , Russia's finance minister . Let's get to a favorite topic - the Olympics. You know, a lot of questions and did a lot of talk , I can not call their speculations . President calls worth 214 billion , your immediate , not your immediate , all direct supervisor . Prime still there, I remembered that you do not substitute . Nevertheless , there are other numbers. My first question is , is the question of the federal budget . The federal budget has put much or should invest in the Olympics?

    A. Silwan - Indeed, when we talk about the cost of the Olympics , there is always two points . The first point is the Olympic sports facilities . Without which it is impossible to hold the Olympics . And the second point is the improvement of the infrastructure of the place where the Olympics will be held . In this case, Sochi. Because basic expenses went exactly in infrastructure. Roads, railways , electric power is to ensure uninterrupted supply of electricity , as Sochi residents and new facilities built for the Olympics . And also just a regular treatment facilities . We in Sochi , oddly enough was not normal treatment facilities. And all the drains were in the sea.

    QUESTION - Now you will ask : why not Omsk , why Sochi.

    A. Silwan - So, in order for us to deliver normal water treatment plant, in order to make sustainable energy generation, to conduct normal road in Sochi to avoid those traffic jams that we have seen in recent years, on the whole affair had been spent considerable money. And speaking of sports facilities , from the federal budget , we sent about 100 billion rubles.

    QUESTION - This sports facilities , the federal budget , I repeat for our listeners .

    A. Silwan - Infrastructure.

    QUESTION - What have treatment facilities , roads .

    A. Silwan - That's roughly another 430 billion rubles. That is ...

    QUESTION - What will remain after . Do not carry away .

    A. Silwan - Of course . Because we did great from Sochi city . For recreation, sports ...

    QUESTION - We'll see then . Let's say that we will see it when the Olympics is over, to be honest. Because the roads , sewage treatment plants are all worth 4 times more than the Olympic facilities .

    A. Silwan - In general we can say that the preparation for the Olympic Games and the development of Sochi had spent about 1.5 trillion rubles.

    QUESTION - Prime Minister said it. Given what. And where another trillion ? Now you say 430 and 100 .

    A. Silwan - Given the infrastructure upon which investors spent . It is on the infrastructure around 900 billion rubles were spent investor funds and sports facilities investors spent about 114 billion rubles.

    QUESTION - In addition to these 500 . But this is again largely state-owned corporation , in many respects , " Gazprom", Sberbank, VTB .

    A. Silwan - Private corporations too.



    QUESTION - But they are fewer . No such money .

    A. Silwan - However, the hotel should be built ? Necessary. This investment project ...

    QUESTION: - And you thought they would be , sorry to beat ? Or there is no cost of money, so let them and kicking .

    A. Silwan - There's many sites was our State Institute of Development Vnesheconombank .

    QUESTION: - He participated loans .

    A. Silwan - In equity financing . Part was Vnesheconombank loans , and part of credit attracted investors own funds invested . So it's really a question about payback those investments for some projects, especially sports worthwhile. But a number of projects and this hotel , port infrastructure believe that a number of projects will be paid back , will fight back . Anyway, everything will depend on what we have the prospect of further development of the city of Sochi. Because if we do Sochi resort year-round use , if we make it attractive in terms of tourist flow , good infrastructure , all the hotels are open all year round and have no doubt that they can make, and will make a profit and return on investment.

    QUESTION - Do you think that the cost of the federal budget in the norm . These 100 billion rubles to sports facilities . I mean, at an issue price .

    A. Silwan - Sports facilities we had to build anyway. Therefore we planned these funds . In some cases, the estimated cost of construction specified.

    QUESTION - This is always the case.

    A. Silwan - in a big way . Because of course, it was difficult to accurately plan it . Because this is our first such major Olympic megaproject . We are not building a stadium is not built jumps with investors. Therefore, the estimated cost of their course change. But , nevertheless , we believe that the money that we spent from the budget, they will return in terms of creating a good and resort ...

    QUESTION: - That is correct understand that the Ministry of Finance looks at it from the standpoint of long-term March 18 , and not only until March 18 .

    A. Silwan - not only the Ministry of Finance.

    QUESTION - Now you represent the Ministry of Finance . Government well . From the point of view of finance.

    A. Silwan - Of course, we believe that this mega-project , which will give a positive moment in the sport of life of the country in infrastructure , Sochi will become a role model for other cities.

    QUESTION: - It needs to be the same money , Anton Hermanovitch agree . Here from Omsk I repeat offense : one Sochi everything is built , and we have in Omsk.

    A. Silwan - We will conduct Universiade in Krasnoyarsk. Winter . Therefore, not all of course in Sochi. Will the FIFA World Cup , will be carried out in different cities.

    QUESTION - Do I understand you to say that you think that it is a matrix of Sochi .

    A. Silwan - I think that Sochi was a very difficult project, it superproject , megaproject will not think, knock , God willing , that will succeed. All we will be fine . And this really Sochi our target project , which must be equal to other cities, regions . Let course, certainly on a smaller scale .

    QUESTION - You know what they say about you that you always languishes over gold . You are not wasted away when Sochi payments were made ?

    A. Silwan - No .

    QUESTION - Or do you cut to the quick . Question decision . Or where you do not already have resisted . Ministry .

    A. Silwan - Naturally was the decision to hold the Olympics . Of course, such a solution requires a significant budget allocations . We just talked about the fact that these investments must be effective and efficient . Because it is possible to build sports facilities , infrastructure projects for different prices and have different then the consequences of their use . Operation.

    QUESTION: - That is the question of efficiency, then what is called for .

    A. Silwan - Of course . Absolutely correct. So, of course , this expensive project and the whole point is that we will continue to use it. And we have big plans .

    QUESTION - Do not panic . So let's see what we do for others . Loan to Ukraine . 15 billion dollars. Question our listeners divided into two parts . First, the legality of the National Welfare Fund , which has certain rules to take money and give Ukraine , Vietnam , whatever. How complied with the law and, secondly, how do you believe that it will return the loan. Or under the Ukrainians have to lay something Ukrainian state should lay the island of Crimea. I do not know .

    A. Silwan - about the law , it is perfectly legal . We both did. We have investment declaration , allocation of funds in the National Welfare Fund is determined by the government. And really the question is an objective listener . Until the last moment , we have invested in a sovereign wealth fund superreliable and highly liquid assets . That have the highest ratings. Recently, we took a number of decisions about investing part of the fund in our investment projects ...

    QUESTION - Russian .

    A. Silwan - Russian infrastructural projects , which together with the impact , the interest that we get will still infrastructural development and an incentive for the development of our economy. What happens with Ukraine. Ukraine, of course, has low ratings , certainly . So here it was decided to support our neighbor , our neighbor's economy and financial situation , because we are not interested , as a neighbor to the financial situation deteriorated sharply , businesses stopped .

    QUESTION: - They did so were on the verge of default, in your estimation . You as an expert.

    A. Silwan - I can not say that on the edge of default, but the situation was complicated. Because would have to borrow on foreign and domestic markets at very high interest rates.

    QUESTION - So anyway , Ukraine would implement large borrowing.

    A. Silwan - Naturally , pay the debts , it would be necessary to borrow , which would be very expensive for Ukraine. And it is a step in the development of spiral expensive today , tomorrow is even more expensive , and it went . Interest on interest . And why exacerbate the situation. Therefore, we as a partner, as a neighbor , who is interested in the stability of the economy , the financial sector of Ukraine , we have gone on to provide them with support, a shoulder and made ​​it through the National Welfare Fund , because other sources we have . We could not give the public credit , as we do not have it and those resources in the budget , it was necessary to change the law on the budget , and resources where we took . We also have to go to the markets then ... QUESTION - And take borrowing for borrowing.

    A. Silwan - to provide credit. What we did. Once again , coming back to the fact that the government determines the investment declaration NWF where to invest the money . Government made two decisions. First - allowed to invest NWF on individual decisions in government securities, which do not correspond to the highest ratings. This is the first decision.

    QUESTION - It was a government decree .

    A. Silwan - The second action had been taken about investing two billion dollars in securities that do not meet the highest ratings , this Ukrainian paper. This was taken last year, we bought a $ 3 billion market in Ukraine .

    QUESTION - Does this mean that there will be more Ukrainian securities purchased ?

    Silwan A. - Yes .

    QUESTION - The 15 billion of which they are added.

    A. Silwan - This year we are also preparing and now cooperates with Ukrainian colleagues to prepare to invest NWF second tranche of Eurobonds. You say they are reliable or not. It is issued under English law , all international standards. These securities is liable obligations republic government Ukraine . Under international law. The period for which we have invested - two years.

    QUESTION: - These are 2 billion last year.

    Silwan A. - Yes . And all the papers that we will buy , they will have a final maturity date - the end of 2015 . Prior to January 1, 2016 we will return those investments NWF to be implemented .

    QUESTION - Do you believe it ? Departure from Ukraine can take that kind of money for two years? Or is there something inherent .

    A. Silwan - There is no collateral to pledge we naturally did not take any property complexes . Pledge is a guarantee of the state that this will pay off . How can repay . Either from its own revenues , either through refinancing , perekreditovki these resources from external markets , with domestic markets. It is the task will stand Ukraine. Where to get resources.

    QUESTION - This is a very short-term money , they need to return . That is just something I do not believe it. You have just told about the financial situation in Ukraine. It is not improving. 15 billion and take two years to return - do not believe . Impossible. Though that, though plyashi gopak not believe.

    A. Silwan - Nevertheless , Ukraine has the resources that can be directed by revenues and due to external and internal borrowing . Especially that logic was such stabilization of the economy , ratings. Ukraine's ratings rose . We important economic stability in Ukraine , while taking into account the development of our cooperative relations , taking into account the normalization of the situation , we believe that the economy should develop positively , giving revenues. Ukraine ratings should still grow in a positive direction . I do not take the current situation . Of course, you say , are you crazy or something there .

    QUESTION - In general, we would like.

    A. Silwan - If we talk about all the same period of one to two years , although it is a short period , however , we were just so agreed, and we believe that at the end of 2015, Ukraine should just refinance , take this money from an external or domestic market and we repay.

    QUESTION - I'm sorry, two billion last year , and the remaining 13 ?

    A. Silwan - The remaining 13 this year.

    QUESTION: - All . Ie in 2014. Will buy Ukrainian paper.

    A. Silwan - We will buy Ukrainian paper , now I can say that we are working on the issue of providing the resources that are available to the Russian Federation in the form of so-called SDR. Ie such rights borrowings. There practice when we are the holders of certain of IMF resources . Which emitted IMF. And these funds have each country that is a member of the IMF , we have such funds in the amount of approximately U.S. $ 9 billion . They have stored , recorded in reserves. This means that some countries provide in the form of loans to other countries in order to enable them to pay off can be of debts to the IMF ...

    QUESTION: - That is refinancing .

    A. Silwan - And we believe that we can use so-called SDR to provide them as well on the terms of credit debt with interest payments to our neighbor to pay before they can ...

    QUESTION - In front of us the same .

    A. Silwan - before debt to the IMF. That's roughly $ 5 billion . Therefore, from $ 15 billion part 5 billion will be provided in the form of SDR, and some 10 billion will be invested NWF .

    QUESTION - This is a slightly different story. And in this regard, another loan , at which rate the credit actually represented NWF ?

    A. Silwan - This 5%. If you look at the amounts of debt, which we carry out and the bet is basically a decent bet . Taking into account including that rating of Ukraine, which is.

    QUESTION: - And the fact that we give these SDR, too, will have to return at 5% ?

    A. Silwan - Conditions are the same.

    QUESTION - Another issue of our neighbors Belarus , unexpected loan worth $ 450 million , however, near the Ukrainian it looks weaker. So to speak. Here, too, the percentage of commercial , too commercial loan , also return the loan. Or is there some special conditions with the countries of the Customs Union , the Union State , the Eurasian . Special rate conditions .

    Silwan A. - Yes, we will negotiate the conditions , but it is anyway ...

    QUESTION - We are now about Belarus .

    Silwan A. - Yes, the market rate . The total loan amount is really $ 450 million . This is a common mezhgoskredit . We introduce into its budget. We do not credit the budget provided . But we will offer amendments spring DG consider just redistribution of our borrowers , borrowers Russia. This will not change any budget parameters. Most importantly, it would be within those loans ...

    QUESTION - So subtract from Vietnam , give Belarusians . Conditionally Vietnam.

    A. Silwan - Vietnam will not say . We can be so that we do not use during the year those loans that we have provided to the extradition.

    QUESTION - Anton Hermanovitch , sorry , we just 3 minutes left. Tell me, please, and we give a lot of interstate credits ?

    A. Silwan - not so much.

    QUESTION - For example, in 2013. Whether many countries well .



    A. Silwan - I'm even numbers ...

    QUESTION - not numbers. Many countries there , I did not even ask for the amount , knowing that she did not mind.

    A. Silwan - Maybe up to five countries .

    QUESTION: - And we take on the foreign market themselves borrowed ?

    A. Silwan - Of course . Seven billion dollars we take Eurobonds.

    QUESTION: - That is, we give someone , take it. What is the benefit ? What an ambush, as my son would say .

    A. Silwan - No . No no ambush . We carry out borrowing from the domestic market as well as external . Domestic market also do not want to overload all sweep all liquidity from the market , so go out and foreign markets. There's way cheaper on the one hand , on the other hand, we also do not want to have a high proportion of public external debt . Therefore, we do very carefully borrowing from the external market .

    QUESTION: - And the last question . I will not give you a chance to explain , we have less than two minutes. We heard the Deputy Prime Minister Olga Golodets that the issue of raising the retirement age is closed. We know that you have a different point of view. To increase . Although the issue is now closed . Do you think that this issue will still have to go back someday RF . Now closed .

    A. Silwan - I believe that this question is still to consider. Because if we want to balance the pension system and free up resources of the federal budget for infrastructure, in circumstances where we need to invest there , we need resources , and it is one of the real sources of fiscal space for redistribution . On the one hand , on the other hand, we should all think about the aging population. We will quietly aging population . And the issue of retirement age , after 15 years, we have the number of pensioners will be the same as running . And it is on the one hand , on the other hand 55 years for retirement , perhaps it is now not so important as it was in 1932.

    QUESTION - When accepted .

    A. Silwan - These terms were adopted in 1932, when the number of pensioners was only 10 % of the population. And now we have 30% already . Therefore, I believe that this issue should be considered carefully , it should be discussed . All countries in this move.

    QUESTION - Even Ukraine, raised the retirement age .

    A. Silwan - It's certainly not an argument for us. But , nevertheless , it is a reasonable decision and I believe that not to discuss these issues would be wrong.

    QUESTION - I think that you will return to this issue after the next presidential election . Somehow, I think so.

    A. Silwan - I would like early.

    QUESTION - I recall Anton Siluanov Finance Minister was live "Echo of Moscow ". Thank you.

    A. Silwan - Thank you.
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    Russian Economy General News: #1 - Page 30 Empty Re: Russian Economy General News: #1

    Post  Austin on Fri Jan 24, 2014 12:55 pm

    Russian GDP growth at the end of 2013 will be 1.4%, which corresponds to the forecast


    DAVOS, January 24 - Prime. Economic Development increased the estimate of GDP growth on the basis of the Russian Federation in 2013 by 0.1 percentage point to 1.4% projected earlier, due to the positive Rosstat data on industrial production, told the head of the Ministry Alexei Ulyukayev.


    Ministry during 2013 repeatedly changed this outlook. First assumed 3.6% growth, and later - 1.4%, and then there was a preliminary estimate of 1.3% and now 1.4% again.


    "I think we will stay at 1.4% (year on year - Ed.). We had to leave the risk by 1.3%, but now (based on the data on industrial production - Ed.), I think, will be 1.4 % "- said Ulyukayev.


    Thursday Rosstat published data on industrial production in Russia by the end of 2013, according to the agency, it grew by 0.3%. Economic Development previously estimated figure is much lower - at 0.1%.
    However, a significant impact on growth parameters Rosstat data on the industry, according to Ulyukaeva will not have, and the forecast for GDP growth is unlikely to be exceeded. "The fact that industrial growth is very small, we see that it is fully achieved due to the extractive industries. I think this (growth by 0.3% against the expected 0.1% - Ed.) Should be taken calmly," - he said.
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    Post  Austin on Fri Jan 24, 2014 1:06 pm

    A nice long interview after a long time from Finance Minister Anton Siluanov  

    http://www.echo.msk.ru/programs/exit/1243054-echo/

    Translation of Finance Minister Interview


    QUESTION - 20.05 in Moscow. Good evening, everyone . This program "Looking out" . At the microphone Venediktov . Today an hour with us , Finance Minister Anton Siluanov Hermanovitch . Good evening.

    A. Silwan - Good evening.

    QUESTION: - The first question this morning was generally come first question ruble ready skopytitsya - asks corcornilov. What happens to the ruble. First he crossed a border in April 2009 in 34 rubles per dollar. This is a policy or tripped ?

    A. Silwan - You just said first crossed from April 2009. That is such fluctuations of the ruble were already on our currency market were in our history. And here is really the situation develops in waves . Because in certain stages ruble appreciated . At certain stages of the ruble weakens . What is happening now . Indeed since the beginning of the year we see a weakening of the ruble , about 3.6 %. Lot or a little . In principle, it is of course a bit. Because if you look at the past year , as moving the currencies of countries with developing economies , there is for certain periods short enough currency changed , weakened by 20-30%. But it was the basis for this . Basis is the policy of major countries issuing reserve currencies such as the U.S. , the eurozone , Japan, primarily the United States last year said only the intention to reduce its program of so-called quantitative easing. Ie printing money . Reduce the number of printing dollars. This policy now officially declared that yes indeed this year the U.S. will gradually phase volume printing . This is absolutely correct, because the U.S. economy is showing enough sustained high rates of growth, unemployment is falling . It had two main key points to the U.S. Federal Reserve decided to minimized this policy. So when it is folding, what is happening. The following occurs. Interest rates in these countries and thus increase capital flows around the world are looking for more expensive where you can invest your money, capital flows , respectively flock to these countries . And of course , some investors think, yeah , the U.S. will collapse printing money , increase the value of money , so I'd better invest in some U.S. assets and the more reliable value of these assets will grow. So the money from emerging markets gradually bring better .

    QUESTION - including with Russia .

    A. Silwan - including with Russia . In the past year , by the way , we almost did not feel it . We though there is some weakening of the ruble , but it was not significant. This year , when you ask , and what happens to their pocketbooks. I would like to say the following , several factors . First - after the U.S. decision on termination of quantitative easing and the outflow of funds from the Emerging Markets . Part of this course and Russian concerns . But it once again, I do not see any global factors for action.

    QUESTION - You have not see a problem with that.

    Silwan A. - Yes . This is the first . And the second . Still, it's CB policy , the policy of the monetary authorities . The fact that more and more ...

    QUESTION - Our .

    Silwan A. - Yes, of course . More and more to make a free-floating ruble . Ie CB policy is absolutely right ...

    QUESTION - So you support.

    A. Silwan - Absolutely . Is to make the ruble exchange rate flexible, floating , so that there was no artificial restraint , as used to be. In 2008, we artificially constrained ruble, and then we had to let go rapidly . This leads to distortions ...

    QUESTION - Devaluation or not?

    A. Silwan - Now ?

    QUESTION - Yes .

    A. Silwan - I in no way did not say a word about this .

    QUESTION - This I ask .

    A. Silwan - I do not agree with this assessment. We are talking about changing the exchange rate policy . Now little podoslab course . But I always say that the economic base of any reason to say that this trend will continue further , no. Let's see , because what is the course. How did he even formed . It formed the basis of the balance of payments situation of the country. Any country , Russia and other countries and so on. And what is the balance of payments. It flows , outflows of currency into and out of the country. What kind of flows. This export revenues . From our first non-raw material resources. This inflow of foreign exchange . This influx of capital into our country , this inflow of foreign exchange through services arrive foreigners brought here to spend . What outflows . This payment has on our imports. This capital flight . And so on . Our citizens are also trafficked there currency. And so the course depends on how and what is the difference between inflows , outflows of currency into the country , and especially the so-called current account . This is mainly export-import operations . So now we have still a surplus between exports and imports



    QUESTION - Inflow more.

    A. Silwan - Inflow more from the sale of our goods abroad than from buying imported goods. Therefore , despite the fact that this balance has waned somewhat in the past year , however , we have a sustainable balance of payments and to say that we have any risks for the currency , no.

    QUESTION - I want to give you one figure . There was a recent poll: Which currency do you keep the savings. RUR keep 40%.

    A. Silwan - Well, they are right .

    QUESTION - In this 53 have no savings . Ie from 47- 40 , then I think that it is stored in 80 rubles . So it bothers people that starts to weaken the ruble.

    Silwan A. - Yes, you know, right. It is necessary to keep the money in the currency in which you spend . And most of our citizens spends course in rubles. Because every day we go to the store, buy some services . Anyway, the common man and I , including now I do not need currency . I need the currency , if I go abroad. And I'm going there might be something to buy or live in a hotel, pay for it. Therefore, most of our citizens , of course, spends Dollars .

    QUESTION - why worry .

    A. Silwan - So, the fundamental reason for the ruble weakened or strengthened now, no.

    QUESTION - I mean, he now sways objectively , dangles .

    A. Silwan - you know , yes. CB may be a little less attention to become the currency market is not in the sense that attention to , and became less involved in the market. It does everything right . Because we talked about that a couple of years we should all send the ruble to float freely.

    QUESTION: - That is to cancel the corridor ?

    Silwan A. - Yes , including . And now the Central Bank gradually as it goes . Border corridor extends . Also absolutely the right decision. Because in any case can not hold back pressure on the ruble , because ultimately it will still result in one or another side dynamics of the ruble. CB task to restrain him sharp fluctuations of the ruble. In order to avoid sudden attacks in one or another direction. This CB and does and will do . Will intervene in the currency market , if he sees ...



    QUESTION - Threats hesitation.

    A. Silwan - It's true. Therefore, I see what happened here since the beginning of the year. First , the situation with the countries emitting reserve currency. Who said that we will no longer print money so much . And there will be a rate increase. Some investors out of our market. But it has not affected significantly , should not affect the currency market . The second is just the CB began to pursue a more liberal policy more flexible . Coursework and may not intervene in cases , which last year paid attention to it and would sell the currency market . Therefore, two such moments serious . But , nevertheless , the fundamental reason for the change of the ruble , they simply do not .

    QUESTION - In this regard , of course, our next question is a story with the budget. Some of our students by sending your questions , say that , judging by the budget deficit , one of our listeners sent over the Internet question: urgent need to reduce government spending or devalue the ruble . Did I understand correctly - he takes us back to the issue - that chose the second path (devaluation ) - and it will be the end of the year, 20-25% of the desired ( budget deficit ) .

    A. Silwan - 20-25 and again ...

    QUESTION: - He believes that the budget deficit so that the devaluation percentage should coincide with the budget deficit .

    A. Silwan - Here we had no such connection are building . When you said that some student made ​​a proposal to cut spending , I immediately thought of this: it must be immediately to the Finance Ministry to hire .

    QUESTION: - Email , dear , papastepanych.

    A. Silwan - But when you said that you need to do more and to devalue the ruble .

    QUESTION: - He believes that this decision public because formal charges in absolute numbers will not be reduced. That decision thus reduce costs is a suspicion of a policy to weaken the budget deficit .

    A. Silwan - Now I can say that these tasks either in the government or in the CB does not . Nobody is going to balance the budget by weakening ruble. This is exactly what you can say and responsibly .

    QUESTION - Why , Anton Hermanovitch ?

    A. Silwan - you know ...

    QUESTION - The same path is used in other countries.

    A. Silwan - This way the crisis actually . We had a sharp devaluation or depreciation of the period of crisis , when we held this course , we have long held him , held and suddenly see that our foreign reserves are falling, there is no good there . You can keep the course , the logic was in the old format , if the pressure on the ruble will wear a certain period of time. But to constantly spend reserves in case of termination of this situation it is pointless. So we are talking about the need ruble flexibility so that reserves were ok and investors also know that we ruble fluctuates based on market principles.

    QUESTION - Provisions in the order once I told you that reserves were OK, I say , reserves right?

    A. Silwan - Provisions in order. Their order of 500 billion , a little less than 500 billion dollars.

    QUESTION: - That's a lot or a little country? I can not say anything.

    A. Silwan - That's a lot . And far exceeds those recommendations and the IMF and economic organizations in the world , who say that the reserves should be at the level of the two-month imports. We have several times higher than this parameter . However , returning to the subject. And you know, we really need to talk about balancing the budget, but due to two factors . First , this increase still more income , we are currently building a plan . Since we have reserves for this .

    QUESTION - especially if Iranian oil will reach the world market.

    A. Silwan - primarily in the informal sector of the economy. I'm not talking about oil and gas revenues . And the second is the big payoff , the high efficiency of our expenses . Both are going to do this year. Last year we had a deficit of half a percentage point of GDP , we will increasingly cut than planned . 0.8% planned 0.5 cut . This year we plan deficit of 0.6-0.7 % of GDP. And we think that it is quite able to provide without any changes of monetary policy .

    QUESTION - In this regard, Russia is a country very rough, I mean both geographically and economically . Our region 83 , in my opinion , very different .

    A. Silwan - It's true.

    QUESTION - In their budgets. You can tell by now , or at the end of 2013 , may already clear in January , as we have regions that are either self-sustaining or donors.

    A. Silwan - We have such a gradation . Donor or recipient .

    QUESTION: - Total double . All right.

    A. Silwan - But it is believed the donor and recipient to a simple formula. Did you receive assistance from the federal government on the so-called alignment of budgetary security . That is, if you have your security budget , ie the budget revenues per capita than the average or not. If you take all the regions , and calculate what the average amount of revenue budgets of the regions per capita, and from this view , and which regions have a higher income.

    QUESTION: - Left, right .

    A. Silwan - Those on the right, which is higher in such regions 11.

    QUESTION: - From 83.

    A. Silwan - But by then , that these regions or large commodity .

    QUESTION - Khanty-Mansiysk .

    A. Silwan - For example , Moscow, Khanty-Mansiysk, Tyumen, St. Petersburg, or are major financial centers of the capital to the economy. Or raw Tyumen , Yamal -Nenets and so on. So they knocked sharply from the average . That is , suppose Moscow has fiscal capacity is twice the average .

    QUESTION - A Moscow at the expense of what? Through taxes ?

    A. Silwan - Well, of course , first of all , here the main business centers . Financial center. Here large property complexes . Who pay taxes. So before , oddly enough , we paid extra for the Moscow metropolitan functions. And then they said , listen, Moscow, as the capital of the contrary you have an advantage in terms of residency and tax , so contrary to all the threads you stretch . And canceled this supplement .

    QUESTION - So was your suggestion that I would like you to explain. But , anyway , we obtuse journalists received her so ...

    A. Silwan - I do not agree with this definition ...

    QUESTION - We obtuse . This self-determination. We understood so that if for some time the region is not making progress in the area of ​​budget deficit reduction , the Governor should dismiss . Just take and dismiss . What do you mean ?

    A. Silwan - No, it's not about that. It is the following . The fact that the quality of budget planning , budget execution in a number of different regions. That there are many regions in the planning of its own budget approach irresponsible , I would even say irresponsible.

    QUESTION - You said the word "many" . I heard correctly ? Tens ?

    A. Silwan - I would say a number of regions . We can say that just a dozen . Of 83 .

    QUESTION: - Only once explain what you call irresponsibility .

    A. Silwan - now I want to clarify . Namely overstate income , lay there air sources of revenue , which obviously can not be. Over- funding of the budget deficit .

    QUESTION - What do deliberately , and not by mistake.

    A. Silwan - Do deliberately , hoping to chance . On Russian maybe . Well, during the execution of the budget look, the Finance Ministry will throw something , there may be additional revenue , the budget will give us credit .

    QUESTION - By Vladimir Vladimirovich 'll make it .

    A. Silwan - Yeah, yeah . Will the resolution instructed the Ministry of Finance and will give extra help . Unfortunately, this is not so . All this leads to the fact that already during the execution of these means have the budget and have cutting living by what is called . And the worst thing is when you count on something , there is a certain expectation from recipients of funds . There may even be a contract to sign . And they have to cut here and penalties, and business you know what the consequences .

    QUESTION: - That is irresponsibility in your understanding is not a lack of income , inability to find income, and self-deception at least in the planning .

    A. Silwan - Absolutely . And so we say that those regions that are engaged in self-deception and deception of its people in the region, its citizens who including voted for governor, and elected Legislative Assembly , which voted for the budget , so we just fooling them . And it is generally unacceptable in terms of the position of the government. Because if we included some budget allocations , they should be executed. Anyway, we at the federal level to this tough going. We did last year was a situation that we can be more optimistic predicted revenues from privatization , somewhat optimistically predicted no oil and gas revenues , but we , nevertheless , did not cut costs. We fully performed all of our obligations. Yes, we had some way to change their ideological approaches and we are not breaking the budget law, nevertheless, sent part of the oil revenues to perform those obligations . But we made them . We provided. And some regions they have to cut ...

    QUESTION: - And then ?

    A. Silwan - And then we believe that this is a non-governmental approach . We believe that such cases certainly must be the point when the activity is valued leadership of the regional administration . But now we do not offer any action in law . Say , oh, so badly planned , go into retirement. Of course not . It is not our task . Not minfinovskaya task. Not the task of the budget legislation . This task has been our leaders , who generally looked upon as a subject of the Russian Federation in the case , how effective is this or that leader.

    QUESTION: - But there are critical areas?

    A. Silwan - There are regions ...

    QUESTION - I'm not saying the recipients , it is clear there is a North Caucasian republics . But here's a critical situation with the budget.

    A. Silwan - You know , oddly enough , there are regions that are in fairly good position , the middle peasants . But where such irresponsible fiscal policy led to huge debts that accumulated regions that exceed ...

    QUESTION: - Before the federal budget ?

    A. Silwan - No . To commercial banks , the federal budget. Generally yes. That is, take as much as possible in the hope that maybe you see, then write off the Federation budget credits , maybe help financial aid. It is not the same cast . Indeed , we do not throw the subjects of the Russian Federation . And remember, it was a long time already , thank God, with the Moscow region was the situation on foreign liabilities , in any case we have helped and will help actors defaults regions will not.

    QUESTION - This is very important .

    A. Silwan - But it defaults to allow the situation says that illiterate financial policy, at least have to raise the question of the effectiveness of the Finance Minister , as he was unable to provide all the risks , failed to prove the region's leadership on the inadmissibility of such a policy. And a number of regions such accumulated debts, does not know what to do. And of course here we are connected in the sense ...

    QUESTION - What to do . If you say , the federation of default will not allow that right. But what to do? I'll be nice to know that gathering a debt, and pay for me dad always would not allow my family ...

    A. Silwan - We say that in this case you need to look at the effectiveness of the management team throughout the region. It's time. The first finance minister. Second , in such cases we can conclude agreements with the regions did not increase and the reduction of these debts . Somewhere we can really help and Budgetary credit. Not provide financial assistance to reduce the public debt. But provide full service with the region and the repayment of those obligations , bearing in mind that such debts should not be increased . Given the still increasing the tax base , the specific ratio of debt to income tax should be reduced gradually . And gradually, in this situation the region has to get out of the red zone is called


    QUESTION - You can tell how many regions in the red zone in your understanding ? Now the debts .

    A. Silwan - About the sharpest about five .

    QUESTION - This is not the biggest regions .

    A. Silwan - It's not the biggest regions , but regions that have accumulated in the past debts.

    QUESTION - In this regard, as the North Caucasus republics observe budgetary rules . I would not say they are the recipients or donors , they are recipients . But as far as the problems of Chechnya, Ingushetia , Dagestan , Kabardino-Balkaria , Karachay-Cherkessia . How they in the area of debt?

    A. Silwan - you know , assume all debts in Chechnya not.

    QUESTION - How is it?

    A. Silwan - Because there was no need to borrow , because the program operated support the Chechen Republic, the economic recovery . True republic did not carry out large loans. Mean of these regions in the red zone regions you mentioned , they are not there . Because the amount of budgets, debt he largely controlled by the federal center . You know why? Because we have a budgetary norms that if you are highly subsidized regions , the Federation concluded an agreement with you . About what you're asking for costs , not whether you climb to the federal authority . We have many regions , including that accumulated debt can still fund the federal authority . For example , universities . Are universities in the region .

    QUESTION: - That there is some additional funding.

    A. Silwan - He decides , well, I'll help . Need help. Construction could be somewhere dorm good cause , it would seem , but at least you their powers are executed first , then the other is already being implemented .

    QUESTION - I recall live "Ekho Moskvy" Finance Minister Anton Siluanov . A few minutes later we are back in the studio. While the news.

    NEWS

    QUESTION - 20.33 in Moscow. Anton Siluanov Hermanovitch Finance Minister . Here are our listeners by phone +7-985-970-45-45, sms not forget to subscribe , do not read unsigned . And, accordingly, through the Internet and via twitter account @ vyzvon. Yuri writes to us from Moscow: total debt of companies with state participation of 600 billion dollars, which is more than 100 billion of foreign exchange reserves . Is there a threat ?

    A. Silwan - you know , really in the last year we have increased corporate debt . A year ago the figure was about $ 500 billion . Is there a threat . We believe that, in general , if you look at the debt to GDP , it still remains low. Even compared to the sovereign debt of other countries. Therefore, our national debt is about 12 % of GDP. Everything else is about , if I remember correctly , that's 600 billion is based on our public debt GDP 35-40 . Therefore, it is absolutely uncritical debt for the country even with the private debt . That is why our company , taking on the foreign markets also make investments abroad . So if you look at the balance of outward investment and borrowing from the outside , in general, we have now the situation is about balancing . Even in some positions investments abroad higher than borrowing. So talk about some risks that the company did not pay its obligations , I believe there are no grounds . And in general, the situation was not a concern . Although the issue of debt capacity , especially state-owned companies , state-owned companies , and they acted as such borrowers , these companies should take into account , of course , risks , including foreign exchange risks . They must calculate any situation. If we talk about the current YTD some weakening of the ruble , these risks should be taken into account company that provides external borrowing . Although they are cheaper than ours, but there are risks but coursework . Therefore, we recommend to our representatives of state companies in making decisions about large external borrowing and the risk still do test for how the company will be able to service these loans. In different situations . So here on the one hand say again , the debt has risen slightly , reason to say that this is some risky situations , risky area we have , but , nevertheless , each company must have its tactics and policies in this area .

    QUESTION - Anton Siluanov , Russia's finance minister . Let's get to a favorite topic - the Olympics. You know, a lot of questions and did a lot of talk , I can not call their speculations . President calls worth 214 billion , your immediate , not your immediate , all direct supervisor . Prime still there, I remembered that you do not substitute . Nevertheless , there are other numbers. My first question is , is the question of the federal budget . The federal budget has put much or should invest in the Olympics?

    A. Silwan - Indeed, when we talk about the cost of the Olympics , there is always two points . The first point is the Olympic sports facilities . Without which it is impossible to hold the Olympics . And the second point is the improvement of the infrastructure of the place where the Olympics will be held . In this case, Sochi. Because basic expenses went exactly in infrastructure. Roads, railways , electric power is to ensure uninterrupted supply of electricity , as Sochi residents and new facilities built for the Olympics . And also just a regular treatment facilities . We in Sochi , oddly enough was not normal treatment facilities. And all the drains were in the sea.

    QUESTION - Now you will ask : why not Omsk , why Sochi.

    A. Silwan - So, in order for us to deliver normal water treatment plant, in order to make sustainable energy generation, to conduct normal road in Sochi to avoid those traffic jams that we have seen in recent years, on the whole affair had been spent considerable money. And speaking of sports facilities , from the federal budget , we sent about 100 billion rubles.

    QUESTION - This sports facilities , the federal budget , I repeat for our listeners .

    A. Silwan - Infrastructure.

    QUESTION - What have treatment facilities , roads .

    A. Silwan - That's roughly another 430 billion rubles. That is ...

    QUESTION - What will remain after . Do not carry away .

    A. Silwan - Of course . Because we did great from Sochi city . For recreation, sports ...

    QUESTION - We'll see then . Let's say that we will see it when the Olympics is over, to be honest. Because the roads , sewage treatment plants are all worth 4 times more than the Olympic facilities .

    A. Silwan - In general we can say that the preparation for the Olympic Games and the development of Sochi had spent about 1.5 trillion rubles.

    QUESTION - Prime Minister said it. Given what. And where another trillion ? Now you say 430 and 100 .

    A. Silwan - Given the infrastructure upon which investors spent . It is on the infrastructure around 900 billion rubles were spent investor funds and sports facilities investors spent about 114 billion rubles.

    QUESTION - In addition to these 500 . But this is again largely state-owned corporation , in many respects , " Gazprom", Sberbank, VTB .

    A. Silwan - Private corporations too.



    QUESTION - But they are fewer . No such money .

    A. Silwan - However, the hotel should be built ? Necessary. This investment project ...

    QUESTION: - And you thought they would be , sorry to beat ? Or there is no cost of money, so let them and kicking .

    A. Silwan - There's many sites was our State Institute of Development Vnesheconombank .

    QUESTION: - He participated loans .

    A. Silwan - In equity financing . Part was Vnesheconombank loans , and part of credit attracted investors own funds invested . So it's really a question about payback those investments for some projects, especially sports worthwhile. But a number of projects and this hotel , port infrastructure believe that a number of projects will be paid back , will fight back . Anyway, everything will depend on what we have the prospect of further development of the city of Sochi. Because if we do Sochi resort year-round use , if we make it attractive in terms of tourist flow , good infrastructure , all the hotels are open all year round and have no doubt that they can make, and will make a profit and return on investment.

    QUESTION - Do you think that the cost of the federal budget in the norm . These 100 billion rubles to sports facilities . I mean, at an issue price .

    A. Silwan - Sports facilities we had to build anyway. Therefore we planned these funds . In some cases, the estimated cost of construction specified.

    QUESTION - This is always the case.

    A. Silwan - in a big way . Because of course, it was difficult to accurately plan it . Because this is our first such major Olympic megaproject . We are not building a stadium is not built jumps with investors. Therefore, the estimated cost of their course change. But , nevertheless , we believe that the money that we spent from the budget, they will return in terms of creating a good and resort ...

    QUESTION: - That is correct understand that the Ministry of Finance looks at it from the standpoint of long-term March 18 , and not only until March 18 .

    A. Silwan - not only the Ministry of Finance.

    QUESTION - Now you represent the Ministry of Finance . Government well . From the point of view of finance.

    A. Silwan - Of course, we believe that this mega-project , which will give a positive moment in the sport of life of the country in infrastructure , Sochi will become a role model for other cities.

    QUESTION: - It needs to be the same money , Anton Hermanovitch agree . Here from Omsk I repeat offense : one Sochi everything is built , and we have in Omsk.

    A. Silwan - We will conduct Universiade in Krasnoyarsk. Winter . Therefore, not all of course in Sochi. Will the FIFA World Cup , will be carried out in different cities.

    QUESTION - Do I understand you to say that you think that it is a matrix of Sochi .

    A. Silwan - I think that Sochi was a very difficult project, it superproject , megaproject will not think, knock , God willing , that will succeed. All we will be fine . And this really Sochi our target project , which must be equal to other cities, regions . Let course, certainly on a smaller scale .

    QUESTION - You know what they say about you that you always languishes over gold . You are not wasted away when Sochi payments were made ?

    A. Silwan - No .

    QUESTION - Or do you cut to the quick . Question decision . Or where you do not already have resisted . Ministry .

    A. Silwan - Naturally was the decision to hold the Olympics . Of course, such a solution requires a significant budget allocations . We just talked about the fact that these investments must be effective and efficient . Because it is possible to build sports facilities , infrastructure projects for different prices and have different then the consequences of their use . Operation.

    QUESTION: - That is the question of efficiency, then what is called for .

    A. Silwan - Of course . Absolutely correct. So, of course , this expensive project and the whole point is that we will continue to use it. And we have big plans .

    QUESTION - Do not panic . So let's see what we do for others . Loan to Ukraine . 15 billion dollars. Question our listeners divided into two parts . First, the legality of the National Welfare Fund , which has certain rules to take money and give Ukraine , Vietnam , whatever. How complied with the law and, secondly, how do you believe that it will return the loan. Or under the Ukrainians have to lay something Ukrainian state should lay the island of Crimea. I do not know .

    A. Silwan - about the law , it is perfectly legal . We both did. We have investment declaration , allocation of funds in the National Welfare Fund is determined by the government. And really the question is an objective listener . Until the last moment , we have invested in a sovereign wealth fund superreliable and highly liquid assets . That have the highest ratings. Recently, we took a number of decisions about investing part of the fund in our investment projects ...

    QUESTION - Russian .

    A. Silwan - Russian infrastructural projects , which together with the impact , the interest that we get will still infrastructural development and an incentive for the development of our economy. What happens with Ukraine. Ukraine, of course, has low ratings , certainly . So here it was decided to support our neighbor , our neighbor's economy and financial situation , because we are not interested , as a neighbor to the financial situation deteriorated sharply , businesses stopped .

    QUESTION: - They did so were on the verge of default, in your estimation . You as an expert.

    A. Silwan - I can not say that on the edge of default, but the situation was complicated. Because would have to borrow on foreign and domestic markets at very high interest rates.

    QUESTION - So anyway , Ukraine would implement large borrowing.

    A. Silwan - Naturally , pay the debts , it would be necessary to borrow , which would be very expensive for Ukraine. And it is a step in the development of spiral expensive today , tomorrow is even more expensive , and it went . Interest on interest . And why exacerbate the situation. Therefore, we as a partner, as a neighbor , who is interested in the stability of the economy , the financial sector of Ukraine , we have gone on to provide them with support, a shoulder and made ​​it through the National Welfare Fund , because other sources we have . We could not give the public credit , as we do not have it and those resources in the budget , it was necessary to change the law on the budget , and resources where we took . We also have to go to the markets then ... QUESTION - And take borrowing for borrowing.

    A. Silwan - to provide credit. What we did. Once again , coming back to the fact that the government determines the investment declaration NWF where to invest the money . Government made two decisions. First - allowed to invest NWF on individual decisions in government securities, which do not correspond to the highest ratings. This is the first decision.

    QUESTION - It was a government decree .

    A. Silwan - The second action had been taken about investing two billion dollars in securities that do not meet the highest ratings , this Ukrainian paper. This was taken last year, we bought a $ 3 billion market in Ukraine .

    QUESTION - Does this mean that there will be more Ukrainian securities purchased ?

    Silwan A. - Yes .

    QUESTION - The 15 billion of which they are added.

    A. Silwan - This year we are also preparing and now cooperates with Ukrainian colleagues to prepare to invest NWF second tranche of Eurobonds. You say they are reliable or not. It is issued under English law , all international standards. These securities is liable obligations republic government Ukraine . Under international law. The period for which we have invested - two years.

    QUESTION: - These are 2 billion last year.

    Silwan A. - Yes . And all the papers that we will buy , they will have a final maturity date - the end of 2015 . Prior to January 1, 2016 we will return those investments NWF to be implemented .

    QUESTION - Do you believe it ? Departure from Ukraine can take that kind of money for two years? Or is there something inherent .

    A. Silwan - There is no collateral to pledge we naturally did not take any property complexes . Pledge is a guarantee of the state that this will pay off . How can repay . Either from its own revenues , either through refinancing , perekreditovki these resources from external markets , with domestic markets. It is the task will stand Ukraine. Where to get resources.

    QUESTION - This is a very short-term money , they need to return . That is just something I do not believe it. You have just told about the financial situation in Ukraine. It is not improving. 15 billion and take two years to return - do not believe . Impossible. Though that, though plyashi gopak not believe.

    A. Silwan - Nevertheless , Ukraine has the resources that can be directed by revenues and due to external and internal borrowing . Especially that logic was such stabilization of the economy , ratings. Ukraine's ratings rose . We important economic stability in Ukraine , while taking into account the development of our cooperative relations , taking into account the normalization of the situation , we believe that the economy should develop positively , giving revenues. Ukraine ratings should still grow in a positive direction . I do not take the current situation . Of course, you say , are you crazy or something there .

    QUESTION - In general, we would like.

    A. Silwan - If we talk about all the same period of one to two years , although it is a short period , however , we were just so agreed, and we believe that at the end of 2015, Ukraine should just refinance , take this money from an external or domestic market and we repay.

    QUESTION - I'm sorry, two billion last year , and the remaining 13 ?

    A. Silwan - The remaining 13 this year.

    QUESTION: - All . Ie in 2014. Will buy Ukrainian paper.

    A. Silwan - We will buy Ukrainian paper , now I can say that we are working on the issue of providing the resources that are available to the Russian Federation in the form of so-called SDR. Ie such rights borrowings. There practice when we are the holders of certain of IMF resources . Which emitted IMF. And these funds have each country that is a member of the IMF , we have such funds in the amount of approximately U.S. $ 9 billion . They have stored , recorded in reserves. This means that some countries provide in the form of loans to other countries in order to enable them to pay off can be of debts to the IMF ...

    QUESTION: - That is refinancing .

    A. Silwan - And we believe that we can use so-called SDR to provide them as well on the terms of credit debt with interest payments to our neighbor to pay before they can ...

    QUESTION - In front of us the same .

    A. Silwan - before debt to the IMF. That's roughly $ 5 billion . Therefore, from $ 15 billion part 5 billion will be provided in the form of SDR, and some 10 billion will be invested NWF .

    QUESTION - This is a slightly different story. And in this regard, another loan , at which rate the credit actually represented NWF ?

    A. Silwan - This 5%. If you look at the amounts of debt, which we carry out and the bet is basically a decent bet . Taking into account including that rating of Ukraine, which is.

    QUESTION: - And the fact that we give these SDR, too, will have to return at 5% ?

    A. Silwan - Conditions are the same.

    QUESTION - Another issue of our neighbors Belarus , unexpected loan worth $ 450 million , however, near the Ukrainian it looks weaker. So to speak. Here, too, the percentage of commercial , too commercial loan , also return the loan. Or is there some special conditions with the countries of the Customs Union , the Union State , the Eurasian . Special rate conditions .

    Silwan A. - Yes, we will negotiate the conditions , but it is anyway ...

    QUESTION - We are now about Belarus .

    Silwan A. - Yes, the market rate . The total loan amount is really $ 450 million . This is a common mezhgoskredit . We introduce into its budget. We do not credit the budget provided . But we will offer amendments spring DG consider just redistribution of our borrowers , borrowers Russia. This will not change any budget parameters. Most importantly, it would be within those loans ...

    QUESTION - So subtract from Vietnam , give Belarusians . Conditionally Vietnam.

    A. Silwan - Vietnam will not say . We can be so that we do not use during the year those loans that we have provided to the extradition.

    QUESTION - Anton Hermanovitch , sorry , we just 3 minutes left. Tell me, please, and we give a lot of interstate credits ?

    A. Silwan - not so much.

    QUESTION - For example, in 2013. Whether many countries well .



    A. Silwan - I'm even numbers ...

    QUESTION - not numbers. Many countries there , I did not even ask for the amount , knowing that she did not mind.

    A. Silwan - Maybe up to five countries .

    QUESTION: - And we take on the foreign market themselves borrowed ?

    A. Silwan - Of course . Seven billion dollars we take Eurobonds.

    QUESTION: - That is, we give someone , take it. What is the benefit ? What an ambush, as my son would say .

    A. Silwan - No . No no ambush . We carry out borrowing from the domestic market as well as external . Domestic market also do not want to overload all sweep all liquidity from the market , so go out and foreign markets. There's way cheaper on the one hand , on the other hand, we also do not want to have a high proportion of public external debt . Therefore, we do very carefully borrowing from the external market .

    QUESTION: - And the last question . I will not give you a chance to explain , we have less than two minutes. We heard the Deputy Prime Minister Olga Golodets that the issue of raising the retirement age is closed. We know that you have a different point of view. To increase . Although the issue is now closed . Do you think that this issue will still have to go back someday RF . Now closed .

    A. Silwan - I believe that this question is still to consider. Because if we want to balance the pension system and free up resources of the federal budget for infrastructure, in circumstances where we need to invest there , we need resources , and it is one of the real sources of fiscal space for redistribution . On the one hand , on the other hand, we should all think about the aging population. We will quietly aging population . And the issue of retirement age , after 15 years, we have the number of pensioners will be the same as running . And it is on the one hand , on the other hand 55 years for retirement , perhaps it is now not so important as it was in 1932.

    QUESTION - When accepted .

    A. Silwan - These terms were adopted in 1932, when the number of pensioners was only 10 % of the population. And now we have 30% already . Therefore, I believe that this issue should be considered carefully , it should be discussed . All countries in this move.

    QUESTION - Even Ukraine, raised the retirement age .

    A. Silwan - It's certainly not an argument for us. But , nevertheless , it is a reasonable decision and I believe that not to discuss these issues would be wrong.

    QUESTION - I think that you will return to this issue after the next presidential election . Somehow, I think so.

    A. Silwan - I would like early.

    QUESTION - I recall Anton Siluanov Finance Minister was live "Echo of Moscow ". Thank you.

    A. Silwan - Thank you.
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    Post  sepheronx on Fri Jan 24, 2014 3:59 pm

    Industrial Production in Russia grew 0.3% last year
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    Post  sepheronx on Fri Jan 24, 2014 4:10 pm

    Foreign investment outflow for sixth week in row
    This is why I never though foreign investment is a must need because makes you become reliant on the investor as well as makes your own market vaulnerable. With the push to move everything to USA and EU not doing well economically, investors ade withdrawing. In this case, either ease the processes for investing or seek alternative partners and programs.

    They gaomed and they lose investments. The name of the game.

    While Russia grows in the ease of doing business, I noticed that investments are declining. What are possible solutions to this? Would building more special economic zones help? What are other options? Austin, do you have any Ideas?
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    Post  Austin on Fri Jan 24, 2014 4:17 pm

    would be interesting to find how much FDI Russia received in FY 2013
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    Post  sepheronx on Fri Jan 24, 2014 4:20 pm

    Austin wrote:would be interesting to find how much FDI Russia received in FY 2013
    Yes, agreed.

    On that note, I edited the last post. But im interested in knowing what are Russias options for increasing the FDI? What do you think Austin? Ease of doing business in Russia is increasing so that is one option. Whats another?
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    Post  Austin on Fri Jan 24, 2014 4:31 pm

    Reducing Bureaucracy Hurdle eg Single Window Clearance for FDI proposal , Providing the Necessary Infrstructure ( Electricity , Roads ,Water etc ) and Improving Business Climate is the best bet for increasing FDI.
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    Post  sepheronx on Fri Jan 24, 2014 4:56 pm

    Agreed. But ease of business has increased, energy production has too and infrastructure development has been largest since soviet times. So how come investment is.not swarming in? I recall that these were the demands from foreing entities we talked about here over a year ago. Well, here is what they did, so why has it decreased over increasing? You cant tell me that Beurocracy quadrupled to overtake the other factors.

    Curious.
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    Post  Hannibal Barca on Fri Jan 24, 2014 5:16 pm

    We are in the middle of the economic war. I said a few days earlier, in an other question to me by Austin that despite the improvements, Russia (and other Eastern powerhouses like India, Indonesia, Vietnam) will not see Western investments no matter what.

    Capital is of much need in West cause markets are draining from the continuous austerity, and additional by leaving East cause slowdown. Good news is that most capital left already and let Russia (East) largely unharmed and furthermore this loss of capital led to new even bigger deals between emerging countries.

    Additional this will makes Eastern countries policies much more independent from West interests and self sufficient.

    All in all, I grand (at least so far) developed country's attempts to transfer the crisis to the emerging world largely unsuccessful.
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    Post  navyfield on Fri Jan 24, 2014 6:34 pm

    sepheronx wrote:Agreed. But ease of business has increased, energy production has too and infrastructure development has been largest since soviet times. So how come investment is.not swarming in? I recall that these were the demands from foreing entities we talked about here over a year ago. Well, here is what they did, so why has it decreased over increasing? You cant tell me that Beurocracy quadrupled to overtake the other factors.

    Curious.
    well if we look at sochi example as a microcosmos, which is a small part by teritorry and population of Russia, tens of billions are neede to get very good results... although other regions wont be needing such extravagance and corruption should be reigned in,  still trillions are required for russian infrastructure as in the whole country.
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    Post  sepheronx on Fri Jan 24, 2014 6:44 pm

    @ Hannible
    I agree with you 100% on that. But for the things Russia does not produce in, they will have tp put money and time into it. Like a replacement engines for their MaRussia sports cars or alike.

    Maybe they will start spending big $$$ on processor tech now after the tplatforms debacle so Elbrus 8C will actually get released on time and on specs as mentioned.

    [quote="navyfield"]
    sepheronx wrote:Agreed. But ease of business has increased, energy production has too and infrastructure development has been largest since soviet times. So how come investment is.not swarming in? I recall that these were the demands from foreing entities we talked about here over a year ago. Well, here is what they did, so why has it decreased over increasing? You cant tell me that Beurocracy quadrupled to overtake the other factors.

    Sochi is a semi decent example. It was a location that has not seen development (besides dachas) in Sochi. They built a village or two from scratch and tearing half the city apart to develop for it. The price was astronomical. Wouldnt be that bad for various other locations. Kazan Universaid games did not even come close to costing that much and they were able to upgrade a lot of the infrastructure. But then again, regional head and his group in Tatarstan is very competent.
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    Post  Viktor on Sat Jan 25, 2014 1:27 pm


    Much has been done during 2013, I hope the pace will continue and grow russia 

    Statistics: Production of cement in Russia in 2013. increased by 7.8% - to 66.4 million tons

    83 medical facilities finished in 2013

    LINK

    LINK

    130 kindergardens finished in 2013

    LINK

    LINK

    Construction of Russian seaports

    [url=Construction of Russian seaports]LINK[/url]

    199 sports facilities

    LINK

    LINK

    LINK

    New agricultural enterprises (only the biggest ones)

    LINK

    LINK

    200 medium and large new productions (51 launched with the participation of foreign investors, 134 built "from scratch")

    LINK

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    Post  sepheronx on Sun Jan 26, 2014 7:00 am

    CEO of Russia’s Sberbank says Russia is Europe’s most attractive country for investments

    MOSCOW, January 24, /ITAR-TASS/. Russia is now the most attractive European state in terms of investments, President of one of Russia’s biggest banks, Sberbank, German Gref said in an interview with the Vesti-24 television channel.
    “I think that Russia is still a very attractive region for direct investments,” he said. Sberbank is an international company, we are present in 22 countries. I have been often asked - which country is the most attractive for our investments in next five years? It is very simple to answer this question - we have just approved our five-year strategy, where we have analyzed all European and Asian markets. And the Russian market appears the most attractive one among all European markets.”

    With 25% more businesses opening in Russia last year than year before, Russia is a great area for attraction in terms of investments. Titanium Valley, Skolkovo, and the other various technoparks and industrial parks. But as Hannibal has said, investments may not be there due to politics. Ultimately, they need to build themselves up without foreign investments and support.
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    Post  Austin on Sun Jan 26, 2014 12:39 pm

    Hannibal Barca wrote:I read it in the morning as well. Curious to listen to your comments Austin.

    Ok I had a quick look at the article and tried to search for some official figures.

    So here is something from Finance Ministry as of Dec 1 , 2013

    http://rupaper.com/post/16541

    The total debt of regions and municipalities for December 1, 2013 made about 1,49 trillion rubles. About 14 percent of all regional debt were the share of Moscow.

    1.49 trillion rouble if I take USD value at 34.5 comes to ~ $52 Billion out of which 14 % is provided by Fedral bank about ~ $7 billion

    So total regional and Public debt is ~ $270 billion.
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    Austin

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    Russian Economy General News: #1 - Page 30 Empty Re: Russian Economy General News: #1

    Post  Austin on Sun Jan 26, 2014 12:39 pm

    Hannibal Barca wrote:I read it in the morning as well. Curious to listen to your comments Austin.

    Ok I had a quick look at the article and tried to search for some official figures.

    So here is something from Finance Ministry as of Dec 1 , 2013

    http://rupaper.com/post/16541

    The total debt of regions and municipalities for December 1, 2013 made about 1,49 trillion rubles. About 14 percent of all regional debt were the share of Moscow.

    1.49 trillion rouble if I take USD value at 34.5 comes to ~ $52 Billion out of which 14 % is provided by Fedral bank about ~ $7 billion

    So total regional and Public debt is ~ $270 billion.

    Considering these debts are in Rouble and not in USD , I dont think its much cause for worry compared to external debt.

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    Russian Economy General News: #1 - Page 30 Empty Re: Russian Economy General News: #1

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