Russian Economy General News: #2

Little older but still excellent article

China Prepares Massive Investments in Crimea

And in a direct snub of the Americans, China will abandon a planned $5 billion solar power plant in Nevada and invest the money in Crimea, instead.

and the big MEGAPROJECT China is pushin

President Xi calls on China, Germany to build Silk Road economic belt

China-Europe route is new ‘silk road’

in light of this program whats the future of the Trans-Siberian railway - it seems that the project is in question

Modernization of Russian railway lines might be suspended

In troubled times, infrastructure development is important to GDP growth. Railways is in need of modernization and expansion to Asia. I hope they get the funds and hope pressure is put on the banks.

First a train from Asia through Russia, to Europe. Now a super highway. Many towns it goes through will get major boost due to transportation and logistics through such towns. Add in entertainment, rest stops (food places and hotels/motels) and maintenance shops, and you will see major economic boost. There just needs to be a will from the government.

sepheronx wrote:In troubled times, infrastructure development is important to GDP growth.  Railways is in need of modernization and expansion to Asia.  I hope they get the funds and hope pressure is put on the banks.

First a train from Asia through Russia, to Europe.  Now a super highway.  Many towns it goes through will get major boost due to transportation and logistics through such towns.  Add in entertainment, rest stops (food places and hotels/motels) and maintenance shops, and you will see major economic boost.  There just needs to be a will from the government.

Agreed, and if they're having a hard time financing it then they should borrow from countries who will also benefit such as China and India. They should take a good hard look at the New Deal in the 1930's-50's, the infrastructure built paved the way for the U.S. to escape the Great Depression, cutting projects to modernize rail and road will just mean the economy will stagnate to a greater degree.

don't even need loans as their reserves are massive. Central bank is very frugal it seems and they are stunting development to save every kopek. They are short term viewers not long term. They follow same policy it seems like Kudrin. They can also finance it via private investments from their own or from other banks.

sepheronx wrote:don't even need loans as their reserves are massive.  Central bank is very frugal it seems and they are stunting development to save every kopek.  They are short term viewers not long term.  They follow same policy it seems like Kudrin.  They can also finance it via private investments from their own or from other banks.

Kudrin is a fraud promoted by the Washington Consensus, just like Gaidar, Potanin, Chubais, Khodorkovsky, Yavlinsky, Nemtsov, Berezovsky, Prokhorov, Navalny, Yeltsin all promoted and celebrated by the IMF and the World Bank, but not by the Russian people.

It seems that Bahrein is investing 10 bin $ in Russia

‘US in panic because of its waning power’

Viktor wrote:It seems that Bahrein is investing 10 bin $ in Russia

‘US in panic because of its waning power’

Perhaps they fear Iran's immense influence in Bahrain because the majority of it's population are Shia muslims, there attempt to invest in Russia as a way to influence Iran indirectly?

It seems that some members here were heard by Rus gov officials in some regions:

Russia’s Omsk governor excludes McDonald’s from investments list

OMSK, May 05. /ITAR-TASS/. The governor of Russia’s Omsk region, Viktor Nazarov, has excluded the American fast food chain McDonald’s from the list of the region’s major investment projects, the regional administration told ITAR-TASS on Monday as there were 38 projects left on the list instead of 42.
Nazarov has had plans for reconsidering the local government-supported financial projects long ago. McDonald’s used to be one of them, for it was earlier supported by certain high officials.
“As a patriot of my country, I am against spreading McDonald’s products in the Omsk region. We are not going to lease this American network any working space”, Nazarov said, stressing that McDonald’s is just an ordinary fast food company, so there is no point in providing it with any favorable and beneficial conditions.

I also read a piece about Putin requesting regions to start creating some sort of investment climate for people wanting to open up such restaurants country wide. Cannot find article now, but will keep looking.

As well:

China investors may build bridge across Kerch Strait

MOSCOW, May 05. /ITAR-TASS/. Chinese companies will be first foreign investors in economy of the Russian Republic of Crimea after the peninsula’s reunification with Russia.
A Chinese construction company and a private investment fund may be involved in construction of a transport corridor to Crimea across the Kerch Strait at the cost of $ 1.2-3 billion with some part of the project to be invested in yuan, Kommersant daily learnt.
This is primarily a political step which shows build-up of relations between Moscow and Beijing amid Western sanctions and China may also receive access to other major projects in the region, the daily sources said. But, in the view of experts, it will be difficult for Russian companies to participate in infrastructure projects in Crimea after Chinese companies enter the market.

"As of May 1, 2014 the total volume of the Reserve Fund amounted to 3139.42 billion, which is equivalent to 87.94 billion U.S. dollars <...> The total volume of the National Welfare Fund amounted to 3127.94 billion, which is equivalent to 87.62 billion U.S. dollars "- said in a statement.

Nice   

Iraq seeks to expand oil production cooperation with Russia — ambassador

Qatar to Forge Closer Economic, Political Ties With Russia

The Russian government expects growth of agricultural production by 2-2.5% in 2014

Nice   

April 2014. Refining in Russia +10.8% yoy. / Statistics

Nice   

Russian stock indexes ended the day up to 3,4-4,7%

Hehe       

US court lifts ban on Russian rocket engines

May 20 is the date when China gas saga will end

Putin to Visit China Next Week for Trade, Energy Deals – Kremlin



but here is one interesting China project (4 massive raill project overal )

ANALYSIS: China-Russia-US Bering Strait Railroad Plan ‘Feasible’

GarryB wrote:And the Russians will sell rocket motors and rocket fuel to the US because the Russians are not as vindictive and childish as the American government is.

Agree. Only US goverment can chop the branch they sit upon. Russia is the leading country in space and aerospace, atomic and military industries. We have to sell oil and launch spacecrafts unless it's an open war.

Nice   


The Ministry of Finance does not exclude the RF budget surplus this year

GarryB wrote:And the Russians will sell rocket motors and rocket fuel to the US because the Russians are not as vindictive and childish as the American government is.

No, they will sell them because they care about making money.

If you wanna see a nice example of retarded Russian government vindictiveness, see the child adoption scandal.

Something big is cooking   

Matviyenko: Russia and Algeria agreed almost agreement on cooperation in the nuclear field

Nice, concerning all the things thats going on right now   

Russia's GDP growth in the I quarter was 0.9%

Union of gold: gold mining in Russia in the first quarter of 2014 increased by 32.8%

Extraction and production of gold in Russia, as well as the release of gold concentrates in the first quarter of 2014 increased by 32.8% to 49,276 tonnes compared with the same period in 2013.
This was reported by ITAR-TASS Russian Union of Gold chairman Sergei Kashuba, adding that this preliminary data.  
Including production of ingots of gold mining has increased by 18.5% to 34.77 tonnes of gold associated - by 4% to 4,025 kg and recycled gold - 3.5 times to 7,079 tons. Production of gold concentrates increased 1.8 times to 3.4 tons.

Ministry of Finance: The federal budget surplus in Russia in January-April amounted to 67.14 billion rubles

The total amount received income reached almost 5 trillion rubles
The federal budget surplus in Russia in January-April amounted to 67.14 billion rubles, according to the Ministry of Finance. The primary surplus totaled 222 billion 679.2 million rubles.
The total amount of income received reached 4 trillion. 753 billion 730.8 million rubles, or 35% of the plan, execution of expenditures - 4 trillion 686 billion 590.6 million rubles, or 33.6% of the volume approved by the Budget Law for the current year and the adjusted painting .

The very same moment 30 year 38bin m3 contract is signed new negotiations will be launched with the medium term gas supply to China

comparable to entire EU     

Gazprom CEO hopeful China’s gas contract price suitable for Russia

With 270 bin $ contract and this 450 bin $ in less than a year making total 720 bin $ things are moving in the right direction specially if we include new contracts in preparation.

On the other hand about 42 contracts are readied for signing next week when Putin arrives to China with about 30 of them scheduled for signing right away and another 10 or so

to be signed on St.Petersburg economy forum. This gas deal with China makes only one of them  


On the other hand South Stream is going full ahead


Austria is back in line
South Stream returning to Austria

and all the contract have been signed
Contract signed for constructing second string of South Stream offshore section