Russian Economy General News: #5

https://meduza.io/en/news/2015/08/20/russia-s-textile-industry-wants-eu-clothes-destroyed-just-like-the-food-imports

Russia’s textile industry wants EU clothes destroyed, just like the food imports

In the midst of Russia’s campaign to destroy food illegally imported from the EU, Russian textile workers have voiced concerns about clothes smuggled from Europe. The Russian Association of Textile Workers has sent a letter to President Vladimir Putin asking him to sign a decree on destroying all textile products and consumer goods smuggled into Russia from the EU. The letter proposes the destruction of such products both at Russia's border, and at retail and storage locations—wherever they're discovered and confiscated.

higurashihougi wrote:https://meduza.io/en/news/2015/08/20/russia-s-textile-industry-wants-eu-clothes-destroyed-just-like-the-food-imports

Russia’s textile industry wants EU clothes destroyed, just like the food imports

In the midst of Russia’s campaign to destroy food illegally imported from the EU, Russian textile workers have voiced concerns about clothes smuggled from Europe. The Russian Association of Textile Workers has sent a letter to President Vladimir Putin asking him to sign a decree on destroying all textile products and consumer goods smuggled into Russia from the EU. The letter proposes the destruction of such products both at Russia's border, and at retail and storage locations—wherever they're discovered and confiscated.

And our man is on the ball:

Dforce wrote:

higurashihougi wrote:https://meduza.io/en/news/2015/08/20/russia-s-textile-industry-wants-eu-clothes-destroyed-just-like-the-food-imports

Russia’s textile industry wants EU clothes destroyed, just like the food imports

In the midst of Russia’s campaign to destroy food illegally imported from the EU, Russian textile workers have voiced concerns about clothes smuggled from Europe. The Russian Association of Textile Workers has sent a letter to President Vladimir Putin asking him to sign a decree on destroying all textile products and consumer goods smuggled into Russia from the EU. The letter proposes the destruction of such products both at Russia's border, and at retail and storage locations—wherever they're discovered and confiscated.

And our man is on the ball:

He'll have to do lot better if he wants that US passport and he won't be getting it with this weak shit. He's gotta do some serious time in the slammer first, otherwise he is staying put as resident retard...

That fat cherry needs to be popped in exchange for the green card.

Inflation figures for Russia real time

http://www.bloomberg.com/quote/RUCPIYOY:IND

Well wait for few days to see how China and US stock performs.

Last year and this Russia has been a ridicule of Western Analyst on their Economy and Stock Market , Lets see what Fate has in store for Western Stock now.

ITs going to be blood bath for few days

Today is already being labeled "Black Monday" for China. Just check the global stocks, it's a bloodbath out there. American stocks are going down like crazy. It seems the crisis started before September 15th

sepheronx wrote:Everyones stock market is in the red. Which doesnt say much as stocks decline on word of someone farting.

And in news:
http://m.ria.ru/economy/20150824/1204130695.html?rubric=economy

This guy is correct. Interest rates need to drop cause the rouble is going to decline anyway, regardless (look at it now even with high interest rates. CBR screwed up and rouble is declining anyway), so there needs to be far more support in domestic investments and ease of credit in the Russian economy. Let the rouble dive, since the rouble is used for internal matters anyway and Russia is an export driven economy. So they will still obtain money through its exports. But if oil drops to $30 a bbl, and rouble drops but interest rates goes up, how long do they plan to let that last? I dont think CBR is thoroughly looking at this issue and simply sees rouble devalue = need to intervene.  Point of free floating is to let it free float. Not hurt your own economy to "save" an export driven currency......

This is the only thing worrying me about Russias economy. Is its own retards. Economists are such simple minded people and follow a one track mind, and dont realise that increasing interest rates or keeping them high will prevent companies from obtaining loans will stunt production and stunt import substitution, thus increasing inflation since they will have to rely on imports.

It is all connected but CBR retards dont seem to understand that.

IS too early to judge Central Bank of RUssia.. Putin do have some control with the so called
"private independent bank" that give half of its profits to the Russian Government... The Russian Banks actions have to be carefully planned taking into account every possible pro and cons... of every decision they make.. They raised the interest to cut the hands of speculators ,who were making loans with Russia to buy Dollars.Also to lower the inflation . the American top independent economy professors from US universities ,do have Books of Economy with examples that recommend countering inflation with a high interest rate of 17. And from there
the head of Russia Central Bank took the hint and it worked..

Russia also have a problem of an imminent war with Ukraine withing hours ,days or weeks..
so what will the right actions for Russia Central Bank to take if they feel a war is about to start?
In WAR ,where there is a risk of major damage to your economy ,no matter how good was your economy , your currency value will flop to the floor and Gold is usually the only safe thing used to trade.. Russia also have reserves in Euros.. So to propertly judge Russian central Bank you need to look at all angles and perpectives.. There were many so called "economist" /"putin finance advisors" recommending Russia to start controlling and manipulating its currency something that creates Panic and doubts on that nation economy..

If you step aside and look from distance ,you will realize that Economy of any nation , a big part
of its performance is Largely based on something called "perception".. investors perceptions..
This is why China experienced a major down their stocks.. because they provoked a major panic
on investors with China major artificial devaluation of its currency.

SO fear , something that is not something physical and you can't measure ,plays a major
Role in any nation economy. when majority of people no longer have faith in their nation economy or their government ,that nation sinks to the button.

And this is why.. Western media is used heavily ,like a weapon to promote the "collapse of Russia economy" , "its downfall" , "the overthrow of Putin". In RT you see the same trolls again and again in every topic or news... saying and repeating how Ruble is "worth of toilet paper" and "how Putin is doomed" and "his end". Is kind of pathetic how you see the same people in a major crusade in all RUssian media trying to convince anyone that Russia is doomed and will cease to exist and will be divided between Ukraine , NATO baltics ,Findland and China.

Promoting doubts and fear through major news Outlets is the most effective way to
scare potential investors in any nation economy.. Demonizing the country too and financing
terrorist to attack is tourism industry is another tactic ,and of course Sanctions too.

US and Saudi Arabia are on an economic war against Russia make no mistake ,and they are
so desperate into destroy their economy ,that they are able to sacrifice their own.. thinking
that Russia will be the one that will suffer more. Getting rid of Russian Debt and investing on
its local industry in a full foreign products substitution.. in the things more important for Russia economy is the way for Russia in my opinion out of the conflict.

Russia is not alone in having problems, it just gets more publicity!

Unlike those oil producers whose currencies follow the US$ Russia's does not, it is floating. The effect of this over the last 12 months has been that the price that Russia has received for its oil has not dropped in ruble terms anything like the headline figures.

This time last year Brent was around $100 and there were about 35 ruble to the US$, now it is around 45 and 70 respectively. So when that income is converted and used as rubles in Russia there is not much difference. Clearly there is a dramatic drop in the number of US$ that can be spent on imports, repaying loans etc. But all is not bad as long as the ruble tracks the US$ down.

Other currencies are reacting similarly, if not quite so dramatically, the Norwegian Kroner has dropped over 30% for instance which, when combined with the Russian food sanctions, is hitting them hard, but then you seldom read about that as it is not on the West's MSM whilst Russia's problems are front page.

Even the in the US there are problems where their income from oil sales has more than halved, resulting in the forthcoming decimation of the shale industry, along with serious drops in profits and hence tax revenues.

JohninMK wrote:Russia is not alone in having problems, it just gets more publicity!

Unlike those oil producers whose currencies follow the US$ Russia's does not, it is floating. The effect of this over the last 12 months has been that the price that Russia has received for its oil has not dropped in ruble terms anything like the headline figures.

This time last year Brent was around $100 and there were about 35 ruble to the US$, now it is around 45 and 70 respectively. So when that income is converted and used as rubles in Russia there is not much difference. Clearly there is a dramatic drop in the number of US$ that can be spent on imports, repaying loans etc. But all is not bad as long as the ruble tracks the US$ down.

Other currencies are reacting similarly, if not quite so dramatically, the Norwegian Kroner has dropped over 30% for instance which, when combined with the Russian food sanctions, is hitting them hard, but then you seldom read about that as it is not on the West's MSM whilst Russia's problems are front page.

Even the in the US there are problems where their income from oil sales has more than halved, resulting in the forthcoming decimation of the shale industry, along with serious drops in profits and hence tax revenues.

X2

Actually worst thing to have is having currency pegged to the Dollar. Saudis are spending like 12$ billion a month to maintain the peg... yes they have big reserves but that is at least 150$ billion spent yearly to maintain it.

zg18 wrote:

JohninMK wrote:Russia is not alone in having problems, it just gets more publicity!

Unlike those oil producers whose currencies follow the US$ Russia's does not, it is floating. The effect of this over the last 12 months has been that the price that Russia has received for its oil has not dropped in ruble terms anything like the headline figures.

This time last year Brent was around $100 and there were about 35 ruble to the US$, now it is around 45 and 70 respectively. So when that income is converted and used as rubles in Russia there is not much difference. Clearly there is a dramatic drop in the number of US$ that can be spent on imports, repaying loans etc. But all is not bad as long as the ruble tracks the US$ down.

Other currencies are reacting similarly, if not quite so dramatically, the Norwegian Kroner has dropped over 30% for instance which, when combined with the Russian food sanctions, is hitting them hard, but then you seldom read about that as it is not on the West's MSM whilst Russia's problems are front page.

Even the in the US there are problems where their income from oil sales has more than halved, resulting in the forthcoming decimation of the shale industry, along with serious drops in profits and hence tax revenues.

X2

Actually worst thing to have is having currency pegged to the Dollar. Saudis are spending like 12$ billion a month to maintain the peg... yes they have big reserves but that is at least 150$ billion spent yearly to maintain it.

Actually there's a little problem with the so called Saudi Reserves. They don't compute with the Kingdom's books. As there are mirroring accounts between "Forex Reserves" and SCB assets, the Saudis themselves don't know exactly how much they've burnt so far.

Worse the Balance of accounts is suspected to have been in the negative long before the mid 2014, and was kept secret. This is mostly due to the way Saudi Arabia avoided Arab Spring style trouble, by showering in cash all the people it could. That spending too is under-reported.

The other problem is that the internal competition with fellow salafi idiots from UAE and Qatar has seen Foreign direct investment move out to the other crazies.

And last but not least, there seems to have been a theft spree during the later years of the late Abdallah with money being in books, but not at the bank.

So maybe this is going to be even more interesting...

Great

Economic Development Minister: Russia, ASEAN approve more than 50 investment projects

Basically they claimed that Lukashenka is going down together with Putin

http://www.dailymail.co.uk/wires/ap/article-3210537/Belarus-ruble-takes-hit-hurt-Russias-economic-woes.html

Belarus' ruble takes a hit, hurt by Russia's economic woes

MAYOR macroeconomic forecast includes a conservative scenario with the price of oil at $ 40
http://tass.ru/ekonomika/2211002

In this scenario, the recession will last until 2017, the dollar will stay above 75 rubles for 3 years

MOSCOW, 26 August. / TASS /. The basic version of the updated macroeconomic forecast of Economic Development provides oil price of 55-60 dollars per barrel in the years 2016-2018, and allows a conservative $ 40 per barrel throughout the three-year plan. About this newspaper "Vedomosti", read the text of the document.

The Russian economy was first tested on the $ 40 per barrel, said one official familiar with the calculations of the Ministry.

In this scenario, the recession will last until 2017, the dollar will stay above 75 rubles all of the following three-year and soar to 78 rubles in 2018, the inflation rate because of this will accelerate to 8.8, respectively, and 7% in 2016 and 2017, and Only in 2018 will be able to lower it below 6%.

The population will have to accept a decline in real disposable income, as it will last until 2017, until this year, will shrink and retail.

For $ 55, and especially the $ 60 per barrel at the Ministry of Economic Development is hope for the resumption of investment activity - in the country have a lot of liquidity, which is afraid of investing, explains one official. $ 40 per barrel bury this hope - in this scenario the fall of investment in capital investments will continue until 2018.

The option that the Ministry considers conservative, it can become the base, notice several officials familiar with the document. Oil prices close to $ 40 - the current reality, the two officials have warned the Ministry of Finance. At the same official financial bloc of the government believes that the entire three-year $ 40 - it's too hard; but in 2016 the budget should be to lay roughly.

The difference between the lost income of the conservative scenario and the June projections is huge - 2 trillion rubles in 2016 and 2.5 trillion in 2017, estimates Alexander Suslin of the Expert Economic Group. These estimates are similar to the calculations of the Finance Ministry, said one of the participants in the discussions. The Ministry of Finance may underestimate the numbers, but even the most moderate estimates of the Reserve Fund will not survive 2017, says one official familiar with the document Ministry of Economic Development.

Given the difference between the nominal GDP in the previous forecast and in the conservative scenario, and given the fact that the federal budget revenues amount to 16-17% of GDP, the additional lost income in the conservative scenario in 2017 and 2018 will amount to at least 953 billion and 1.2 trillion rubles respectively. The reserve fund, even on the basis of previous calculations, at the end of 2017 will have to stay a total of 510 billion rubles, ie, in 2017 he was already gone, and still have a hole not covered by reserves, about 400 billion rubles.

There are three ways to cover the gap - to reduce costs, to take money from the National Welfare Fund, to run monetary financing, the official continued: "This is a real crossroads in front of the government now."

Oooops, that pesky old Law of Unintended Consequences again.

Volkswagen and Hyundai are planning to take advantage of the weak ruble and boost production in their Russian factories of vehicles for export markets in the Middle East and Far East, company representatives announced this week.

In the coming weeks, Hyundai will begin delivering the Solaris, produced in its Russian factory, overseas to Egypt and Lebanon, the company's Russian head office stated on August 25. By the end of August, the carmaker's Russian factory will have produced a pilot batch of 550 cars, and has plans to deliver around 4,000 cars to countries in the Middle East by the end of the year. "We have carried out a lot of work in order to be ready for the beginning of our cars' exports to the Middle East, and we consider that the recourse to new markets is our contribution to the development of Russian-produced export goods," said Choi Dong El, general director of Hyundai's Russian factory, which is located on the outskirts of St. Petersburg and employs more than 2,200 people, who produce 200,000 cars a year.

Sergey Tselikov, head of Russian automobile analytical agency Autostat, told Izvestiya that foreign producers in Russia are able to take advantage of the greater capacity of Russian car factories: "The real capacity of Russian car production is three million cars per year, and I estimate that this year around 1.2 million will be built. The factories are working at 50 percent of their total capacity, so it's logical to look to replace the falling demand in our country with demand from other markets," said Tselikov, who estimated the potential export volume at 150,000 – 200,000 cars a year.

On Tuesday, Marcus Ozegovich, general director of Volkswagen Group Russia, told Izvestiya that along with Hyundai, his company has plans to take advantage of the weakness of the Russian currency and boost exports to countries that share a border with Russia. "I'm not talking about exports to the Commonwealth of Independent States [CIS], which we have been doing for a long time, I have global exports in mind." "It's not that simple: there are global export currents, agreements, logistical expenses, tax and customs nuances of different countries, and so on." "It's quite a significant challenge for us, which eventually will allow us to improve our quality here."

The plan to increase production for exports to wider markets is an unprecedented step for foreign car manufacturers based in Russia, where production has traditionally focused on the car market in Russia and the CIS. Cars for the export market have instead been largely produced by Russian carmakers such as AvtoVAZ, which manufactures the Lada, as well as UAZ, manufacturer of off-road vehicles, and GAZ and KAMAZ, which make trucks.

Car expert Igor Morzheretto told Izvestiya that exports from Russia could even end up in the Western European car market: "Western Europe could be among the regions which import such budget cars. For example, when Renault developed the Romanian Dacia brand, in the beginning it was also supposed that these cars are only for developing countries, and now you can see them anywhere in the European Union," explained Morzheretto, who named the Volkswagen Polo sedan, which is produced only in Russia at the Volkswagen factory in Kaluga, as one such possible export.

Read more: http://sputniknews.com/russia/20150826/1026213077.html#ixzz3jw5lrD6B

JohninMK wrote:Oooops, that pesky old Law of Unintended Consequences again.

Volkswagen and Hyundai are planning to take advantage of the weak ruble and boost production in their Russian factories of vehicles for export markets in the Middle East and Far East, company representatives announced this week.

In the coming weeks, Hyundai will begin delivering the Solaris, produced in its Russian factory, overseas to Egypt and Lebanon, the company's Russian head office stated on August 25. By the end of August, the carmaker's Russian factory will have produced a pilot batch of 550 cars, and has plans to deliver around 4,000 cars to countries in the Middle East by the end of the year. "We have carried out a lot of work in order to be ready for the beginning of our cars' exports to the Middle East, and we consider that the recourse to new markets is our contribution to the development of Russian-produced export goods," said Choi Dong El, general director of Hyundai's Russian factory, which is located on the outskirts of St. Petersburg and employs more than 2,200 people, who produce 200,000 cars a year.

Sergey Tselikov, head of Russian automobile analytical agency Autostat, told Izvestiya that foreign producers in Russia are able to take advantage of the greater capacity of Russian car factories: "The real capacity of Russian car production is three million cars per year, and I estimate that this year around 1.2 million will be built. The factories are working at 50 percent of their total capacity, so it's logical to look to replace the falling demand in our country with demand from other markets," said Tselikov, who estimated the potential export volume at 150,000 – 200,000 cars a year.

On Tuesday, Marcus Ozegovich, general director of Volkswagen Group Russia, told Izvestiya that along with Hyundai, his company has plans to take advantage of the weakness of the Russian currency and boost exports to countries that share a border with Russia. "I'm not talking about exports to the Commonwealth of Independent States [CIS], which we have been doing for a long time, I have global exports in mind." "It's not that simple: there are global export currents, agreements, logistical expenses, tax and customs nuances of different countries, and so on." "It's quite a significant challenge for us, which eventually will allow us to improve our quality here."

The plan to increase production for exports to wider markets is an unprecedented step for foreign car manufacturers based in Russia, where production has traditionally focused on the car market in Russia and the CIS. Cars for the export market have instead been largely produced by Russian carmakers such as AvtoVAZ, which manufactures the Lada, as well as UAZ, manufacturer of off-road vehicles, and GAZ and KAMAZ, which make trucks.

Car expert Igor Morzheretto told Izvestiya that exports from Russia could even end up in the Western European car market: "Western Europe could be among the regions which import such budget cars. For example, when Renault developed the Romanian Dacia brand, in the beginning it was also supposed that these cars are only for developing countries, and now you can see them anywhere in the European Union," explained Morzheretto, who named the Volkswagen Polo sedan, which is produced only in Russia at the Volkswagen factory in Kaluga, as one such possible export.

Read more: http://sputniknews.com/russia/20150826/1026213077.html#ixzz3jw5lrD6B

This is exactly what I said for some time ago. Russia will become extremely powerful concurent for the West in the international market. They produce their products now with the same high quality as the west with similarly economically and ecologically effective industry, but Russia not only have cheaper currency, but also far lower taxes and debts to pay. EU have large debts and they simply could not lower the taxes, actually they are increasing taxes, that they could pay interests for public debts and to pay public sector.

medo wrote:
This is exactly what I said for some time ago. Russia will become extremely powerful concurent for the West in the international market. They produce their products now with the same high quality as the west with similarly economically and ecologically effective industry, but Russia not only have cheaper currency, but also far lower taxes and debts to pay. EU have large debts and they simply could not lower the taxes, actually they are increasing taxes, that they could pay interests for public debts and to pay public sector.

There are a few reasons why the GDP/capita in Russia is lower than in the West. One of them is that the Russian economy and industries are not as well developed and efficient than their Western counterparts. So I think the highlighted part of your post is not correct. Russia is not yet on par with the West in this regard.

Karl Haushofer wrote:

medo wrote:
This is exactly what I said for some time ago. Russia will become extremely powerful concurent for the West in the international market. They produce their products now with the same high quality as the west with similarly economically and ecologically effective industry, but Russia not only have cheaper currency, but also far lower taxes and debts to pay. EU have large debts and they simply could not lower the taxes, actually they are increasing taxes, that they could pay interests for public debts and to pay public sector.

There are a few reasons why the GDP/capita in Russia is lower than in the West. One of them is that the Russian economy and industries are not as well developed and efficient than their Western counterparts. So I think the highlighted part of your post is not correct. Russia is not yet on par with the West in this regard.

You have no clue what you are talking about. Your so called efficiency is nothing of the sort. This bogus metric is obtained by dividing
the GDP by the active population and called "efficiency". Total, ludicrous nonsense. Efficiency is related to, you know, actual production.
So you cannot use the whole GDP which includes the fluff called the "financial industry" and all of the extra territorial economic revenue
you generate thanks to transnationals. You have to use the fraction of the GDP related to domestic production. Manufacturing in
the USA is less than 20% of GDP. So start by comparing apples to apples.

I will give you a counter example that utterly destroys this NATO propaganda BS. Russia can produce six Project 636.3 submarines
for $2 billion dollars. One Japanese Soryu class sub which is no better and in the same category of diesel-electrics goes for $2 billion. Clearly
Russia is way more efficient at producing this high tech product and the exchange rate of the ruble to the dollar simply cannot explain
a factor of six difference in the price.