Russian Economy General News: #4

sepheronx wrote:
Better article:

Russia’s international reserves plummet by $16 billion in February — central bank

MOSCOW, March 6. /TASS/. Russia’s international reserves mostly comprising gold and foreign currency decreased by $15.987 billion in February to $360.221 billion, according to data released by the Central Bank on Friday.

The Russian regulator said in statements on gold and foreign exchange reserve dynamics in recent weeks that the country’s international reserves had declined largely due to the Central Bank’s operations to provide foreign currency liquidity to banks on a repayable basis, foreign currency repo deals and negative exchange rate revaluation.

So in proper accounting terms these reserves have not fallen. The key word is repayable.

kvs wrote:

sepheronx wrote:
Better article:

Russia’s international reserves plummet by $16 billion in February — central bank

MOSCOW, March 6. /TASS/. Russia’s international reserves mostly comprising gold and foreign currency decreased by $15.987 billion in February to $360.221 billion, according to data released by the Central Bank on Friday.

The Russian regulator said in statements on gold and foreign exchange reserve dynamics in recent weeks that the country’s international reserves had declined largely due to the Central Bank’s operations to provide foreign currency liquidity to banks on a repayable basis, foreign currency repo deals and negative exchange rate revaluation.

So in proper accounting terms these reserves have not fallen.  The key word is repayable.

The name you seek is Investment..  16 Billions $USD of,Central Bank reserves have been invested.. on a repayable basis .   Is good news because means is not lost money ,like it will be
if was used for paying a debt.  

@sepheronx

Dude ,you lately complain about everything , that doesn't please you ,  no matter where i post.. In my thread of SOchi  you go sneak your nose.. not to add any information contribution ,but to sabotage it.. telling me to not post Sochi information that you don't want to know there.. that others already told you disagree with your views of not being relevant the information ,now you come here and do the same..   You are not the owner of this forums.. so if you you don't like to read my stuff. just do like others ,become an idiot and block me.. and end of problem. But trying to tell others to go somewhere else is not only unprofessional ,and offensive but also childish.  The information i post is relevant to know , so people is aware of the level of economical warfare that is being happening against Russia behind the scenes. that is complete
distortion of reality with complete manipulation..Is relevant to Russia economy. and explain why Russia is dependent of oil so much. Because of the economic warfare that exist against Russia.. that did not began with Ukraine conflict.. but since the fall of soviet union. That already had another economic war. The western Globalist dont like competition. and never play fair.

So Anyone with some level of IQ to connect the dots.. ,will see that under such extreme environment (an endless economic warfare against Russia through many channels and media is only one),politics and sanctions on Russia..because putin killed a cat with his car will be another. it will be very hard for Russia (to not say impossible) to compete in things that the west can compete.. and offer an alternative ,and not become economically independent of Oil because in the west.. Russian business will be boycotted either through media bad image on their business or through sanctions using any excuse for it. This means that if Russia develop the best automobile industry in the planet.. Cars that fly and don't consume gasoline but water.. it will not matter it will not sell in the west ,since the west US will find a way to boycott RUssian business Through media ,and politics. You cannot expect americans to ever play Fair in anything . Story Short.. they never lose. Americans produce the worse cars of all ,
next to South Koreans in durability..Not only in experience but even people that sell cars of different brands will tell you get a japanese or europeans and skip the american one . Still
they sell a lot thanks to the media empire they have. and thanks to the higher taxes you will have to pay to get a non-american car in the west.

So for Russia to become independent of oil its economy.. they either will need to build
a media empire ,at the level of the west.. which will be foolish.. or do what they were supposed to do decades ago and never did.. that is to help develop eastern nations economy.. to help
modernize all Asia to european levels.. and create the environment for no longer depend on Europe.   

IS like the problem of having a restaurant of  Burgers in largely vegetarian nation.. Making better your food will not fix the problem..is the clients that are not there.. So Russia building the world best cars and any other technology will not end RUssia dependency in oil needs to develop the nations in ASIA too ,which many regions still lack of something as basic as toilet.
and get their outdated religions out of the way of business.. because in the west.. Russia will face a really bad image of their products.. and thats something they will not be able to counter.
I heard Russia one model of cars is now selling.. here or there..but thats because they have allowed it and busy discrediting Russia in other things.. but just wait Russian cars becomes a major problem for western business and thats when the false flags will start and people killed
and mysterious accidents will happen and all in Russian cars.. and RUssia technology blamed for it.. "it was Putin engine who killed them.". the media will say ,you have no idea dude.. how US empire operates. Is a very well organized economic tyranny. To become very successful and compete in technology with the west ,you need to be a member of their club of Anglozionist friends ,have an american military base in your land and not become too powerful. to really have a fully free ,fair open market in the west..

Even Japan (which is bankrupt economy) which toyota line are the best selling cars in the west and is part of their club of friends almost every year an american judge demand Japan to repay $ millions in fines for any fabricated issue.  US Business will never lose.. if you beat them in any product,they will balance their loses with their courts. So Russia Business have no chance to ever compete in the west as long US is so powerful and influential and its dollar and banks controls the show.

Toyota which is the second largest automotive industry in the world ,almost edging Volkswagen
which is the first .. have not helped Japan to fix its economic problems. So asking Russia to
compete in cars just for the sake of selling something else is not practical.. Profits is whats matter. in the end.. and technology unless is unique and seen /perceived as unique with no alternative is not that profitable is there is too much competition.

Either Russia needs to collapse US economy and its dollar ,to get rid of the Neocons Tyranny and create a fair environment for trading or develop Asia Nations create "their own Europe in Asia" and make business there. They also can do the same in Latin America ,which is Fed Up with US interference in their politics ,but have no other alternative than to continue trading with them.

The only exception in all this ,is that Russia seek to compete in things the west cannot..and there is no alternatives.. Natural Gas have been a blessing for Russia but only until now.. and US cannot offer an alternative because is too far from europe..but pipelines from caspian sea through azerbaijan are now in plans to be build... same with nuclear energy.Russia have almost not competition there... No one in their right mind will trust a nuclear reactor to a nation that is in question their trust and loyalty and that they afraid could use the reactor fuel as a weapon to blackmail the nation ie.. if you don't do this we don't sell your fuel. and weapons too ,when they are really superior to the alternative of the west and or trust is in question..and is precisely the things that have allowed Russia to have business in the west.. in the things that there is no alternatives and or trust is critical .  Why i think the best thing Russia can do , instead of building now TVs or refrigerators or selling cars, just to become independent of oil.. is to become far more aggressive and far more ambitious on its space program and its semicondutor industry. Not just release something competitive or compete well.. but to completely eclipse the west in those areas. Space Tourism for example.. to the ISS and to the Moon Orbit using space shuttles.. a moon base travel agency.. ..will have long lines of billionaires wanting to take a flight.. and later get prices lower to allow space tourism for more people.. and developing superior computers too.. for civilian use with its software..a new internet.. etc.. Such things can turn the tide , and make US lose influence in the world and economic allies. and make Russia really in the path to become a fully independent and self sufficient nation in the world and a super economy.  But forget about cars , there is too much competition there. .For the only thing i will develop them is for nation personal use , to build cars for students very cheap..not aiming for export in the west.. and perhaps for the richest ,racing cars like Marussia. Promoting your country is the name of the game.. for Russia becoming independent of oil its economy.

I was wondering what if Russia sells its Energy ( Oil/Gas ) to China 100 % in Renminbi and then uses Renminbi it gets to convert to Euro or USD or other currency.

In return for large share of China Energy Supply it opts for Renminbi payment ?

Is this possible ? What are the drawback ?

Russia still struggling to connect with Asian markets

Despite numerous statements declaring Russia’s “pivot to Asia,” the country still faces challenges connecting the goals of the government with the needs of foreign investors.

Russian authorities never tire of repeating that the country’s economy began expanding in the direction of the dynamic Asia-Pacific Region (APR) a long time ago. Nevertheless, all recognize that the real reorientation to the direction of Asia began started only in March 2014 – after the first Western sanctions were imposed against Russia over its behavior in the crisis in Ukraine. At first glance, there seems to have been significant progress in the past year, especially in the Chinese direction. However, a real “pivot to Asia” has not yet occurred.

Strategic priorities are not the same

According to experts from APR countries, Moscow’s primary goal is to develop manufacturing, innovation and high technology sectors beyond the Urals. However, Asian investors are not very interested in these sectors – for them, Russia is primarily a supplier of natural resources.
“We must honestly admit that, for now, the Russian Far East is not of interest as a production base to Japanese companies,” said Kunio Okada, director of the Japan Association for Trade with Russia and CIS countries (ROTOBO). “The main problems in working in the Far East are the small population, lack of sizeable internal regional market and high labor costs. Without solving these problems, attracting investments into production will be difficult, even if the Russian authorities are able to improve the business environment.
“On the other hand, the Far East and Siberia have a great natural advantage – the abundant natural resources. Investments into their development are very promising. It is important that these strengths become leveraged.”
Chinese experts hold a similar view. “Of course, Chinese investors have an interest in the Far East. However, in Russia, there is no consensus about how to develop this strategic region, as the views of regional elites and Moscow differ,” said Yang Cheng, Deputy Director of the Center for Russian Studies at East China Normal University. Then to this we can add the worries about such a sensitive issue as the so-called danger of ‘significant Chinese migration.’ Therefore, it is really hard to do that much here and now.”
Taisuke Abiru, Director of the Russian Program of the Tokyo Foundation, is positive about some developments, but feels they need further definition. “The creation of priority development areas (PDAs), including tax incentives, simplifying management and reducing the administrative burden in the Russian Far East, can be viewed as a step in the right direction, when it comes to attracting Asian investors,” Abiru said. “However, the creation of special zones is nothing new in the government’s policy seeking to attract foreign investments and technologies. Therefore, foreign companies still need to see, in practice, how the new PDAs in the Far East will differ from the SEZs (special economic zones).

Two keys to success

According to experts, Russia must do two things to successfully attract Asian investors to the Urals. First, improve the administrative procedures and create a one-stop-shop for investor services. “China has already learned that in addition to high-quality consulting services, it is important that the authorities raise the level and efficiency of services provided to investors. If a mechanism was created where people could gather in one place and discuss all issues, and remove any barriers, such a system would be in great demand,” said Yang Cheng.
Yury Trutnev: We must enter dynamic Asian markets, it’s the only way to win Yury Trutnev: We must enter dynamic Asian markets, it’s the only way to win
Secondly, Russia must select sectors for its PDA program based on an analysis of the real needs of Asian markets. “The biggest potential, in my opinion, is found in co-operation in agriculture, especially in the production of soybeans and livestock,” said Sheng Shilyan, chief researcher at the Center for the Study of World Problems at the Xinhua Agency. “Russia has manufacturing capacity, and China has a huge market, these two can be combined to form synergy. For example, three years ago, China was importing ecologically clean wheat from Japan at about 160 yuan ($25) per kilogram, and it was immediately snapped up. Last year it started importing bottled water from Lake Baikal – one small bottle cost a little over ten yuan ($1.60), and it sold like hotcakes. We need more such projects.”

Alexander Gabuev is the head of the Russia in the Asia-Pacific Region Program at the Carnegie Moscow Center

This article originally appeared in Kommersant.

- http://rbth.co.uk/business/2015/03/10/russia_still_struggling_to_connect_with_asian_markets_44341.html

Pretty interesting
Russia becoming a major carbon fiber manufacturer

Russia will pay $ 65 billion external debt in 2015

In 2015, the Russian foreign debt payments of 65 billion dollars. The chairman of the Bank of Russia Nabiullina during a press conference, the correspondent "Heathcliff!".

The head of the Central Bank added that most of this amount has already been paid, and the process of loan repayment has not had a significant effect on the exchange rate. Nabiullina also noted that in 2015 the volume of payments decreased by almost two times compared to 2014.

By the end of 2014 the Russian external debt fell 18 percent to 599.5 billion dollars. At the end of 2013 it stood at 728.9 billion.

In this case, general government debt declined from 61.7 to 41.5 billion dollars, the debts of the former USSR fell from 2.01 to 1.77 billion. Central Bank should 10.4 billion (a year ago - almost 16 billion), banks - 171.1 billion (previous year - 214.4 billion). Debt of Russian companies to foreign creditors fell over the year from 436.8 to 376.5 billion dollars.

Earlier, on January 14, former Minister of Finance of the Russian Federation Head of the Committee of Civil Initiatives Alexei Kudrin expressed confidence that the probability of default Russia excluded . "I do not for a moment doubt the government's ability to fulfill its obligations under the debt - and internal and external. In this sense, the possibility of a sovereign default is not possible, it can not be, in principle, "- said the expert.

However, he did not rule out that some companies may have defaulted because private sector debt is large enough, and the possibility of raising capital is limited because of the sanctions.

sepheronx wrote:Vann, dont give me your BS. Simply put, dont derail this thread about propaganda. Move that as I will ask George to move it.

Sorry, but I like to see some sort of cleanliness on this site for future research.  I like your posts on Sochi and what not as you do a fantastic job, so why not post what you did in that section?  It makes most sense since it is about Sochi itself.

Even in sochi you complain for me posting there.. lol
THis is not your forum.. if you don't like it.. just add me to your ignore list.. and stop
becoming so childish.

My post is 100% relevant to this economy topic.. of Russia dependence of oil..
because people goes a suggest how Russia should build better cars.. completely ignoring
the Politics side of things.  If you think better cars will allow Russia to become economically
independent and sell them freely in the west you are an ignorant.. that do not understand
how US business operate. i don't think sanctions will ever be lifted now against Russia..
at least in US..   Russian business will in the west will be under a continuous sabotage ..
By US government.  Is a new undeclared cold war.. and it will only get worse.  And the Sochi
attacks perfectly illustrate the level of economic warfare that exist against Russia.  So suggesting how Russia should make better cars without mentioning the politics climate is
pointless .  Either Russia take their business elsewhere and help develops Asia and BRICS..
or they collapse US economy or they only compete in things there are no alternative and no comparison.

This so called pivot to Asia will happen simply because there's no going back to the old model.

This should've happened slowly years ago, since you can't achieve such a massive move overnight. But bureaucratic inertia and sticking to the 'comfort zone' prevented any meaningful developments.

It will take at least 2-3 years minimum before things start shifting into gear....the potential is huge BTW.

One good thing out of all this turmoil is that the liberals in the government are loosing influence and the 'sovereignists' are gaining ground.

....



interesting read...

Will Russia become a technological leader in 30 years?
- http://rbth.co.uk/science_and_tech/2015/03/03/will_russia_become_a_technological_leader_in_30_years_44141.html)

Cyberspec wrote:This so called pivot to Asia will happen simply because there's no going back to the old model.

This should've happened slowly years ago, since you can't achieve such a massive move overnight. But bureaucratic inertia and sticking to the 'comfort zone' prevented any meaningful developments.

It will take at least 2-3 years minimum before things start shifting into gear....the potential is huge BTW.

One good thing out of all this turmoil is that the liberals in the government are loosing influence and the 'sovereignists' are gaining ground.

....



interesting read...

Will Russia become a technological leader in 30 years?
- http://rbth.co.uk/science_and_tech/2015/03/03/will_russia_become_a_technological_leader_in_30_years_44141.html)

Something about that article...technological leader in 30 years? Really? Russia is one of the worlds leading space powers, and how many countries can you name off the top of your head who's military industrial complex is as advanced as Russia's? The only one that comes to mind is America's, and a massive gap between the rest.

magnumcromagnon wrote:
Something about that article...technological leader in 30 years? Really? Russia is one of the worlds leading space powers, and how many countries can you name off the top of your head who's military industrial complex is as advanced as Russia's? The only one that comes to mind is America's, and a massive gap between the rest.

well, they also need to focus on exporting their culture. not everyone can be scientist,engineer,doctor or farmer or simple factory worker- theirs gonna be people wanting to be artists too. just leave the frankly obnoxious stronk image where it belongs, when have you ever heard of a vatnik boyband?

magnumcromagnon wrote:

Cyberspec wrote:This so called pivot to Asia will happen simply because there's no going back to the old model.

This should've happened slowly years ago, since you can't achieve such a massive move overnight. But bureaucratic inertia and sticking to the 'comfort zone' prevented any meaningful developments.

It will take at least 2-3 years minimum before things start shifting into gear....the potential is huge BTW.

One good thing out of all this turmoil is that the liberals in the government are loosing influence and the 'sovereignists' are gaining ground.

....



interesting read...

Will Russia become a technological leader in 30 years?
- http://rbth.co.uk/science_and_tech/2015/03/03/will_russia_become_a_technological_leader_in_30_years_44141.html)

Something about that article...technological leader in 30 years? Really? Russia is one of the worlds leading space powers, and how many countries can you name off the top of your head who's military industrial complex is as advanced as Russia's? The only one that comes to mind is America's, and a massive gap between the rest.

Well, today's China. India in a few decades? But yeah, other than that, I agree with you.

Kimppis wrote:

magnumcromagnon wrote:

Cyberspec wrote:This so called pivot to Asia will happen simply because there's no going back to the old model.

This should've happened slowly years ago, since you can't achieve such a massive move overnight. But bureaucratic inertia and sticking to the 'comfort zone' prevented any meaningful developments.

It will take at least 2-3 years minimum before things start shifting into gear....the potential is huge BTW.

One good thing out of all this turmoil is that the liberals in the government are loosing influence and the 'sovereignists' are gaining ground.

....



interesting read...

Will Russia become a technological leader in 30 years?
- http://rbth.co.uk/science_and_tech/2015/03/03/will_russia_become_a_technological_leader_in_30_years_44141.html)

Something about that article...technological leader in 30 years? Really? Russia is one of the worlds leading space powers, and how many countries can you name off the top of your head who's military industrial complex is as advanced as Russia's? The only one that comes to mind is America's, and a massive gap between the rest.

Well, today's China. India in a few decades? But yeah, other than that, I agree with you.

Wells China's military industry is growing at a very rapid pace, but they still lack the capability to create a proper 4th gen fighter jet engine (let alone a 5th gen), and we've yet to see military thinkers in China truly innovate in concepts of military affairs (technology, strategy, futurology) since Sun Tzu's 'Art of War'. A few decades may'be too optimistic for India, they'll have a much more capable military by then but currently lobbying via 'Paid News', bribing generals, and the logistic nightmare created by all their lobby-friendly foreign purchases which will hold the military industry in India back a couple of decades in itself. If Modi strikes down the corruption thoroughly within than that could all change.

magnumcromagnon wrote:

Kimppis wrote:

magnumcromagnon wrote:

Cyberspec wrote:This so called pivot to Asia will happen simply because there's no going back to the old model.

This should've happened slowly years ago, since you can't achieve such a massive move overnight. But bureaucratic inertia and sticking to the 'comfort zone' prevented any meaningful developments.

It will take at least 2-3 years minimum before things start shifting into gear....the potential is huge BTW.

One good thing out of all this turmoil is that the liberals in the government are loosing influence and the 'sovereignists' are gaining ground.

....



interesting read...

Will Russia become a technological leader in 30 years?
- http://rbth.co.uk/science_and_tech/2015/03/03/will_russia_become_a_technological_leader_in_30_years_44141.html)

Something about that article...technological leader in 30 years? Really? Russia is one of the worlds leading space powers, and how many countries can you name off the top of your head who's military industrial complex is as advanced as Russia's? The only one that comes to mind is America's, and a massive gap between the rest.

Well, today's China. India in a few decades? But yeah, other than that, I agree with you.

Wells China's military industry is growing at a very rapid pace, but they still lack the capability to create a proper 4th gen fighter jet engine (let alone a 5th gen), and we've yet to see military thinkers in China truly innovate in concepts of military affairs (technology, strategy, futurology) since Sun Tzu's 'Art of War'. A few decades may'be too optimistic for India, they'll have a much more capable military by then but currently lobbying via 'Paid News', bribing generals, and the logistic nightmare created by all their lobby-friendly foreign purchases which will hold the military industry in India back a couple of decades in itself. If Modi strikes down the corruption thoroughly within than that could all change.

I knew you were going to bring up the engines. And you're right, but it seems that they are doing are making good progress even in that department. After all, they have basically unlimited resources at their disposal.

I think we'll start seeing more "futuristic" concepts from China in the near future and they are already doing well in HGV's, for instance. My point point was that by 2020 China will be capable of designing and mass-producing all-types of modern military equipment: 052D and 055 DD, 095 SSN, J-20 stealth fighter, Y-20 strategic airflift, WZ-10 attack helicopter, all types of missiles, and so on.    

You might be right in regard to India but a few decades is a long time and their economy is going to be many times larger than it's now. The foreign purchases have indeed slowed down their progress but I still think at this rate they'll get "there" by 2040 or so.

But yes, your original point was important and correct. Russia's military industry is one of its greatest strengths. There are only a few countries with that kind of capability.

Don't read too much into RBTH propaganda. Russia is a technological leader in aerospace already
and military defense and nuclear technology.

Russia beyond the headlines is a 5th column media.. their man of the year in 2014 was
the biggest Rat of all . Khodorkovsky which flee to germany and began an anti-putin campaign speaking openly of overthrowing putin.  They also love Kudrin. another rat. I visit it only for arts and culture and their sections of exotics places in Russia to visit. which is the only thing they have to offer.. their politics and economy reports stinks. They also call sochi a failure.. and suggested Putin Killed the opposition leadler recently..so don't take seriously their politcs and economy reports. is another Neoliberal pro NATO media. Like CNN or Moscow times,VICE ,"Independent"..  Is undercover Anglozionist neocon media. Wolves dressed like sheep. Their tactics is always to try to look "impartial" and neutral in their reports , but is a tactic and a show. Their real face is always show in the major issues. In short do not try to understand their "investigations" and reports.. about Russia economy and politics.. is full of western agents of disinformation.

sepheronx wrote:

Vann7 wrote:
Don't read too much into RBTH propaganda. Russia is a technological leader in aerospace already
and military defense and nuclear technology.

Russia beyond the headlines is a 5th column media.. their man of the year in 2014 was
the biggest Rat of all . Khodorkovsky which flee to germany and began an anti-putin campaign speaking openly of overthrowing putin.  They also love Kudrin. another rat. I visit it only for arts and culture and their sections of exotics places in Russia to visit. which is the only thing they have to offer.. their politics and economy reports stinks. They also call sochi a failure.. and suggested Putin Killed the opposition leadler recently..so don't take seriously their politcs and economy reports. is another Neoliberal pro NATO media. Like CNN or Moscow times,VICE ,"Independent"..  Is undercover Anglozionist neocon media. Wolves dressed like sheep. Their tactics is always to try to look "impartial" and neutral in their reports , but is a tactic and a show. Their real face is always show in the major issues. In short do not try to understand their "investigations" and reports.. about Russia economy and politics.. is full of western agents of disinformation.

Yeah, after they did their person of the year, an article about QE and Kudrin, I pretty much stopped going their. They used to be good but these days, it is nearly impossible to find an english source of news on Russia that isnt contrived or twisted. So it ends up easier/better to go directly to Russian sites.

Yeah the guy (Mikhail Delyagin) claiming Russia isn't a leader in technology in the article, is the head of a pro-globalization think tank (Globalization Institute) in Russia, and mostly likely an agent of foreign influence, hence he doesn't want Russia to be self-sufficient in technological goods, but dependent on foreign goods and he probably stands to profit from the outsourcing of those products.

sepheronx wrote:Siberia alone is 44M population. Add in far east and it will be greater.

The whole population of Asian Russia is 2/3 of that number.

sepheronx wrote:So either they are lying or are finding excuses.

They are right.
The economic position of Asian Russia in Asia is quite different compared to the economic position of European Russia in Europe where it is more populous than any European country.
Asian Russia can offer neither a large market nor low-cost labour to the Asian countries.
Natural resources are the main reason for them to invest in this part of Russia and it would be very hard to change that.