Russian Economy General News: #4

It seems Russia again is trying to divide Europe, to get some countries away from NATO and the EU. Around 2007-2010, they were trying to get support from "Old Europe" (France, Germany) against the "New" one (Poland, Baltic states). It didn't work, as the Mistral deal proved. Now Russia seems to be trying to make a divide between southern, "poor" Europe (Greece, Hungary, Italy, Spain) against "rich" (France, Germany). I am again skeptical that it will work. The best thing Russia can do is to break ties with the West, if possible slowly in order not to suffer from any economic issue, and create new and stronger bonds with Asia. Even US allies in Asia (like South Korea and Singapore) have showed independence from US foreign policy and refused to apply sanctions against Russia. Asians are very pragmatic, and this is the kind of partners Russia needs, not ideologized Europeans who only care about teaching lessons on "human rights" and "democracy" to Russia.

Karl Haushofer wrote:I was referring to living standards which are still higher on average in Greece than in Russia, even if it due to Greek being able live on debt from western banks

What good is higher GDP per capita if you have 30% unemployment and those few who work are too indebted?

kvs wrote:Per capita GDP is trickle down voodoo economics.

The USA has a large per capita GDP, but that does not translate into equivalent wages (i.e. $55,000 per year for each member of the
household giving a combined income of $175,000) because corporate revenues do not trickle down to the US worker.   In fact,
a huge part of that GDP is due to offshore activity of US transnationals.    The proper metric of the domestic economy is the GNP,
but nobody uses it these days.

As noted already, using debt to fluff up the GDP is also a crock.    You need to subtract debt servicing per capita from the GDP
per capita.  For some reason this is never done.

GDP is much worse than that. All it is is the amount of total sales. So me and you could buy and sell $50 of shit between each other 10, 000 times per day, and THAT would count to GDP.

I mean Britain counts hookers and heroin/crack street sales as GDP!

Also GDP is bumped up by taxes. Huge amount on fuel and often 45% for workers. PLus the amt they have to spend on heathcare, college education etc in the US. Compare that to Russia with its free healthcare and low cost education and lower taxes.

Sure some Americans are wealthy. But there are something like 70m of them in trailer parks. God knows how many more live in absolute slums with no healthcare, work or anything. Vast numbers of poor Americans are even in jail.

Karl Haushofer wrote:

flamming_python wrote:

Karl Haushofer wrote:Finnish media is saying that Russia has promised to give free fuel to Greece to aid the country in crisis. The article did not mention about quantities though. Hopefully Russia is not wasting its money for nothing, again. Greece is – even in its current state – a wealthier country than Russia. I don’t think poorer countries should be aiding richer ones like this, unless Russia gets something back in return.

Don't see how Greece is actually more wealthy than Russia; it's unemployment rate is humungous (while Russia's is very small) and its social support system has been getting ravaged by austerity for the last 5 years.
It may have higher GDP per capita but per capita, each Greek citizen owes more to EU banks than he could produce in economic worth over a period of several years.

I was referring to living standards which are still higher on average in Greece than in Russia, even if it due to Greek being able live on debt from western banks.

But anyway, hopefully this will be only a symbolic gesture from Russia and nothing more. Russia has its own citizens to take care of.

Those damn greeks live better than Eastern EU countries. no one to blame but their own politicians

Nice

Putin decree created the free port of Vladivostok

BRICS economy significantly surpass G7

Worst scenarios of Russian economy’s development avoided — PM Medvedev

Speaking at a meeting on the implementation of the anti-crisis plan the Prime Minister said that the situation in the economy remains complicated but manageable

GORKI, July 13. /TASS/. The worst forecasts for the Russian economy development did not come true, the situation remains complicated but manageable, Prime Minister Dmitry Medvedev said on Monday.

Speaking at a meeting on the implementation of the anti-crisis plan, Medvedev said that the plan had been made under conditions, "when various forecasts for the development of the economy were voiced including the most pessimistic ones."

"Nevertheless, it looks like the worst scenarios did not come true, the situation in the economy remains complicated but manageable," the Prime Minister said.

Medvedev urged the ministry to continue monitoring to ensure that all budget funds reach the final beneficiaries.

The Prime Minister praised the joint work of the Cabinet, the Central Bank, legislative bodies and the authorities of the regions that approved their own anti-crisis plans.

"We should to continue to monitor the situation on the ground, keep track of what is happening on the largest enterprises, which are seen as strategically important, to constantly monitor the implementation of all previous instructions to ensure that all budget funds reach the final beneficiaries — which are industrial and agricultural enterprises, and a number of other organizations," the Prime Minister said.

The Prime Minister reiterated the importance of the measures to support the real sector, in particular — of the project financing.

In particular, Medvedev said that the government had decided to grant state guarantees for the sum of more than 20 billion rubles ($351.6 mln) to 12 projects.

As part of the anti-crisis plan, significant funds were allocated to support the agricultural sector.

"Amid the ongoing sanctions pressure, our farmers received additional opportunities to supply their products," - the head of the government said.

He added that in January-May, agricultural companies increased volumes of agricultural production by 3.3% as compared to January-May 2014.

"That means that these measures bring their benefits, have their effect," Medvedev said.

Medvedev also said that the program for renovation of transportation vehicle fleet proved to be in demand. He added that it was decided to allocate 5 bln rubles ($88 mln) on this program in addition to 10 bln rubles ($176 mln) allocated earlier.

Brazil confirms intention to increase purchases of grain and fish from Russia

"Since Russia gives us the priority positions in other areas, Russian suppliers have a very chance to take a good share of the market," Brazilian minister said

UFA, July 10. /TASS/. Brazil confirmed its interest to increase the purchases of grain, fish and fertilizers from Russia, Minister of Agriculture, Livestock, and Food Supply of Brazil Katia Abreu said Friday in an interview with RBC channel.

"At the moment we import wheat from countries that are not our strategic partners. Since Russia gives us the priority positions in other areas, Russian suppliers have a very chance to take a good share of the market," Abreu said.

"We buy quite a lot of fish, despite the fact that we have 12% of fresh water in the world. The prospects here are also very high. Russia also provides 25%-30% of all fertilizer deliveries. And many more areas have potential," she said.

After Russia introduced good embargo, supplies from Brazil to Russia increased by 30%, the Minister continued. Primarily increased Brazilian exports of pork, which replaces the European banned pork due to the epidemic of African swine fever in EU.

"In the future we would like to expand our cooperation in the fruit export. I believe that dairy products will also become the most important item in our export," Abreu said.

As TASS reported earlier, on Wednesday the Russian Agriculture Minister Alexander Tkachev and a delegation from Brazil held a meeting in Moscow on strengthening the trade of goods in the agricultural sector and cooperation in agricultural science. In particular, Russia and Brazil reached the agreement on the deliveries of Russian wheat to Brazil.

Nice

Putin signed a law on SRO, rating agencies

Chinese AVIC Forestry will invest 74.5 billion rubles of the Russian Federation

Russia to Continue Being Iran's Key Strategic Partner - Zarif

Russia, Iran Discuss Establishment of Joint Car Production Venture

Lifting of Anti-Iran Sanctions to Boost Trade With Russia - Moscow

Constitutional Court rules Russian law above European HR Court decisions

The Supreme Russian Court has established that no international treaty or convention has precedence over national sovereignty, and decisions by the European Court of Human Rights (ECHR) should be upheld only when they don’t contradict basic Russian law.

Interesting map:

Nice

Putin: from $ 5 billion IMF loan Ukraine - $ 3 billion to us

Viktor wrote:Nice  

Putin: from $ 5 billion IMF loan Ukraine - $ 3 billion to us

Well, that's what he WANTS. No guarantee that it will happen. And knowing the Ukraine, it most probably won't.

One company cities and towns need to diversify, but "detroit" can happen anywhere any one company gets too big to fail...

the towns and cities themselves need to drive diversity and promote themselves to other, perhaps related industries to make their existing companies more competitive...

Nuland is threatning more sanctions against Russia

US Prepares to Put More Pressure on Russia, Threatens ‘Scaling Up Costs

I suspect the Neocons are upto something and Merkel must be hand and glove in this.

I think Russia should sell 50 % of the $60 billion US Bonds and Buy Chinese and BRICS bonds which fetches higher interest.

Also cut a deal with China to sell Oil In Yuan in return for Massive investment.

The chinese just lost $3.5 Trillion in Stock in span of a month and they are not even coughing , Chinese can generate tremendous wealth and credit , better to make most use of it.

I think there must be some Western Sympathiser in CB and Putins cabinet that must be against closer co-operation with china

some positive news

Sanctions Leading to a Russian Industrial Renaissance - Japanese Journalist

http://sputniknews.com/business/20150718/1024783910.html

Austin wrote:I suspect the Neocons are upto something and Merkel must be hand and glove in this.

I think Russia should sell 50 % of the $60 billion US Bonds and Buy Chinese and BRICS bonds which fetches higher interest.

Also cut a deal with China to sell  Oil In Yuan in return for Massive investment.

The chinese just lost $3.5 Trillion in Stock in span of a month and they are not even coughing , Chinese can generate tremendous wealth and credit , better to make most use of it.

I think there must be some Western Sympathiser in CB and Putins cabinet that must be against closer co-operation with china

Sir ji aapko pata bhi hn the truth behind those 3.5 trillion loss and how it doesn't affect Chinese economy at all . Except those paid western media pundits from reuters to bloomberg and even zerohedge calling for Chinese stock crash , bubble bursting etc etc pata nahi kya kya .

Austin wrote:I suspect the Neocons are upto something and Merkel must be hand and glove in this.

Ooh please, Merkel can't do sh#t, she's simply in the corner sucking her thump waiting for her masters call, she isn't needed anymore for the U.S ops in Ukr

I think Russia should sell 50 % of the $60 billion US Bonds and Buy Chinese and BRICS bonds which fetches higher interest.

All in do time.

Also cut a deal with China to sell  Oil In Yuan in return for Massive investment.

I think they already did that.

The chinese just lost $3.5 Trillion in Stock in span of a month and they are not even coughing , Chinese can generate tremendous wealth and credit , better to make most use of it.

I ain't an economist, but i don't see Chinese economy crooking anytime soon.

I think there must be some Western Sympathiser in CB and Putins cabinet that must be against closer co-operation with china

Hopefully those parasites will be dealt with accordingly over time.

Good Read and Must Read

Greece’s Lesson For Russia — Paul Craig Roberts

Good Read and Must Read

Greece’s Lesson For Russia — Paul Craig Roberts

sepheronx wrote:
And I wonder what they will do exactly?  Trade amongst Russia and US was piss poor, and there really isn't much more they can do now since they banned banks and banned long term interest rates.  So they will ban short term interest rates, and then what?  Ban Russian oil/gas and ban Russia from swift, whom is now on the board of directors?  If that is the case, US would be shooting itself in the foot.  If they are going to put more people on black list, oh well, that wont do shit.

The penalties could start with banning more Russian government officials and businessmen from traveling and doing business in the West, U.S. and European officials said. But they can climb dramatically to include new measures to crimp the country's all-important fuel exports, cut Russian banks off from international financial transactions and severely limit the capacity of Russian businesses to engage in lucrative business deals overseas.

The Americans and the Europeans are working off the same menu of contingency measures, the officials said, though there is no agreement yet on what level of response would be appropriate for each type of infraction.

Read more: http://www.businessinsider.com/europe-and-the-us-are-readying-a-new-round-of-crippling-sanctions-against-russia-2015-6#ixzz3gGsgT7aN