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    Russian Economy General News: #6

    sepheronx
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    Post  sepheronx Sun Jun 19, 2016 3:53 pm

    And they imposed upon themselves a debt ridden, ready to burst economic models. Japan is one of the few, next to Germany and Russia with a positive trade balance. US on other hand is a humongous gluttony of a nation that relies entirely on consumption through any means. This includes using debt. That isnt an economic model worth following. Japan on other hand, as Zero hedge pointed out, relied upon private debt for its businesses which isn't good. Your Canadian, so you should know how bad the debt structure system is. I rather take slow growth in GDP, than high growth but a ticking time bomb of debt. We seen what happens when the bubble pops. That is what the Tylers all talk about.

    The wests and now Japan's economy relies nearly entirely on the banking sector. Only reason why they managed a positive trade balance, is growth in production, lower yen valuation and lower domestic demand due to job issues. So the bank of Japan threw printed QE money around in order to spur growth and purchase stock on both US and JPN stock exchange. Artificial growth. But no, it seems that many love to ignore the debt elephant in the room.

    What saves Japan is that it still has some manufacturing left. What geniuses like VANN doesn't seem to understand is the model he wants to push is a model that existed already in Russia - R&D, while end goods are made elsewhere. Semiconductors where the biggest next to housewares. Problem is, Russia needed a real economy. Make end goods, not screwdriver assembly and pure R&D. And they are heading this direction regardless what economic award winners like VANN thinks.
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    Vann7

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    Post  Vann7 Sun Jun 19, 2016 8:25 pm



    LOL ,I only explained how Russia creates its economic problems. How they become a magnet of
    sanctions. It does not know how to Influence Americans and or Europeans. It also explain
    how Russia create traitors and 5th column. Because the west influence like McFaul Russians
    with the American world. Very polite , very smiling people , and then tell you how much
    better is America . Thats another thing. lol Russians don't smile much and this is not good
    for business. Simply Russia lack of experience in capitalism had to be the reason of their mistakes. Since not even Advertise the positive things it have.

    Allowed China to get one of their most potential business.
    to get Russia in competition with Iphone in the smartphone market.

    Russian Economy General News: #6 - Page 36 Img_02_en

    and allowed the only sport car Russia had to go bankrupt. MArussia.

    Russian Economy General News: #6 - Page 36 8f29ae5f2a6b8f5fb491552b4448a57f

    But now Putin wants to be the number one seller of organic food , WOW. so impressed.
    never seen that before. Rolling Eyes . But dont take me wrong , A business is a Business.
    and the more the better. but there are business much more prestigious than other. Is
    not the same being the world leader in potatoes or apples ,vs being the world leader in semiconductors. for example or entertainment. and it is precisely the things that no body
    have and cannot compete ,and every one will like to have ,what will really take Russia
    the top exporters of technology and entertainment.




    kvs
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    Post  kvs Sun Jun 19, 2016 9:30 pm

    As usual the "debate" is distorted with events from different time periods trotted out to justify current "failure".

    1) Russia's domestic car industry is a victim of the CBR's loan-shark interest rates which are now 10.5% (a whopping
    drop from 11% and 5% above the current inflation rate). In the west, consumers buy cars on credit and not cash down.
    Boutique car makes such as Ferrari and Lamborghini are owned by major car makers whose bread and butter is the mass
    market consumer segment.

    2) As with the rest of Russia's economy, it was suppressed by an import flood since the 1990s. At various times the
    imports were stemmed due to ruble forex drops or recessions (1998, 2009, now) which allowed Russian industry to get
    up on its feet. Right now Russia is in the best situation regarding imports it has been in since 1991. There are indications
    that small business is finally able to form and succeed without being excluded from the market due to large foreign companies
    which can leverage economies of scale to keep their market share.

    3) Putin has done a stellar job steering Russia out of the Yeltsin toilet. Anyone who attacks him for mismanaging the economy
    is either an ignorant idiot or a malicious liar. Putin's final challenge is to dislodge the nest of monetarists who run the CBR.
    The CBR is digging its own grave. It has created a massive ruble oversupply since the domestic demand for money is suppressed:

    http://www-rohan.sdsu.edu/~hfoad/e111su08/Ch5.ppt

    The demand for money reflects the intensity of GDP growth as well as total GDP size. Shrinking the demand for money is equivalent
    to shrinking the GDP. The current "stagnation" in Russia's GDP is 100% the fault of the CBR. In fact, the monetary situation in
    Russia is ridiculously distorted.
    sepheronx
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    Post  sepheronx Mon Jun 20, 2016 2:58 am

    Further on what Ivanov said:
    Russia Feels a Lot Better With Them in Place Read more: http://sputniknews.com/politics/20160619/1041585318/russia-sanctions-ivanov.html#ixzz4C4pKc1hf
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    Post  AlfaT8 Mon Jun 20, 2016 4:31 am

    kvs and sepheronx, what are your opinions on the possibility of the BitRuble being used as a form of low interest "fund" backed by the state and not the CBR, is this feasible or do i just not know what i am talking about.
    sepheronx
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    Post  sepheronx Mon Jun 20, 2016 5:42 am

    I wrote another article. This time on the SPIEF 2016 events:
    SPIEF 2016: Deals, Breakthroughs and News Worth Mentioning
    Russian Economy General News: #6 - Page 36 3nvecUN
    sepheronx
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    Post  sepheronx Mon Jun 20, 2016 5:53 am

    AlfaT8 wrote:kvs and sepheronx, what are your opinions on the possibility of the BitRuble being used as a form of low interest "fund" backed by the state and not the CBR, is this feasible or do i just not know what i am talking about.

    I personally would like it.  But CBR will control it as they control the currency in the nation.  Private setup very much similar to the FED reserve in US.  Neither of which, are controlled by the government.  CBR has been floating around the idea along with German Gref of Sberbank promoting it, but the issue behind it is how they would proceed in building it, distributing it and getting businesses to use it.  Biggest obstacle would be around how it would be able to convert to lets say the bitcoin itself?  Other issues would be, who will trade with it and why would they bother to trade in that over lets say physical cash?  And lastly, if the persons hard drive is stolen that holds onto the bitrub data and wallet (yes, it is stored on the HDD), or something happens to it, what will happen if something happens to the HDD?  Mind you, this is most basic structure currently with bitcoin.  They do have more advanced options like online storage for bitcoin keys where it is all stored on someone else machine.  But that takes it out of your own control.  There are devices specifically to put them on, like protected USB drives and such.  Those are more ideal.

    I myself am open to the idea, but I am not a user of bitcoin as I only started to look at it in the last two years and it is already considered too late to be involved in getting bitcoins now without having to spend extortion prices on new hardware to mine it and having to join a group to mine for months to get a fraction of a bitcoin.  Now most of them you just play with in a method like currency speculators do - buy and sell.  Not worth it.  I know litecoin was another one that was gaining popularity but not sure where it is at today.
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    Austin

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    Post  Austin Mon Jun 20, 2016 6:01 am

    Nice Round Up Summary of SPIEF , You should also write about the discussion CBR head , Finance Minister and all other people had at SPIEF that kind of discussion on where the economy stands and where it will lead to and what needs to be done as important as the deals signed
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    Post  Austin Mon Jun 20, 2016 6:07 am

    kvs wrote:1) Russia's domestic car industry is a victim of the CBR's loan-shark interest rates which are now 10.5% (a whopping
    drop from 11% and 5% above the current inflation rate).  

    CBR is trying to to Save the Savers and Pensioners , Basically today they have more money in hand over and above the inflation because of high interest rates and some of the negative effects of Sanctions on Saving/Pension class is nullified , also an incentive to save Money in Roubles for the Russians.

    West does have low interest rates but their Savings are effectively dead and all they have are piles of  debt and now moving to negitive interest rates means people who has saved their money working in 80 , 90 has effectively lost all the money.

    As Greenspan has said in his interview a Good Balance between Saving Class and Low interest rate for Business Class is to keep Interest rate at 4-5 % long term , I think CBR would come to that figure in 4-5 years time.

    Eventually the Putin government will have to come with a seperate package for Business loans offering at 4-5 % and General Interest rates that can gradually match upto Business Loans interest at 4-5 %

    I hate to say this but Russian CBR are prudent and are erring on the conservative side but the government has done a poor job of supporting the business class with special loans mechanism , Cant blame the CBR here.


    Last edited by Austin on Mon Jun 20, 2016 6:11 am; edited 1 time in total
    sepheronx
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    Post  sepheronx Mon Jun 20, 2016 6:08 am

    Austin wrote:Nice Round Up Summary of SPIEF , You should also write about the discussion CBR head , Finance Minister and all other people had at SPIEF that kind of discussion on where the economy stands and where it will lead to and what needs to be done as important as the deals signed

    Thanks Austin. I will do what I can. If you so wish to be able to assist me, I would be more than happy to add you to the article as well Smile
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    Post  Vann7 Mon Jun 20, 2016 4:09 pm

    Austin wrote:
    kvs wrote:1) Russia's domestic car industry is a victim of the CBR's loan-shark interest rates which are now 10.5% (a whopping
    drop from 11% and 5% above the current inflation rate).  

    CBR is trying to to Save the Savers and Pensioners , Basically today they have more money in hand over and above the inflation because of high interest rates and some of the negative effects of Sanctions on Saving/Pension class is nullified , also an incentive to save Money in Roubles for the Russians.

    West does have low interest rates but their Savings are effectively dead and all they have are piles of  debt and now moving to negitive interest rates means people who has saved their money working in 80 , 90 has effectively lost all the money.

    As Greenspan has said in his interview a Good Balance between Saving Class and Low interest rate for Business Class is to keep Interest rate at 4-5 % long term , I think CBR would come to that figure in 4-5 years time.

    Eventually the Putin government will have to come with a  seperate package for Business loans offering at 4-5 % and General Interest rates that can gradually match upto Business Loans interest at 4-5 %

    I hate to say this but Russian CBR are prudent and are erring on the conservative side but the government has done a poor job of supporting the business class with special loans mechanism , Cant blame the CBR here.


    questions..

    1)So basically the Central Bank of Russia is trying to motivate Russians to save money ,because
    maybe they predict the AMericans will continue push ,their economic warfare on Russia ,or the oil war could continue for a couple of years more and is a little early for the bank to lower
    their guard in the defense of Russia reserves?


    2)If you were head of Central Bank of Russia ,and you were aware that Russia relations
    with Americans ,Eastern Europe and Turkey are so tense ,that a major war could start any
    any month or week ,provoked by NATO..  then what kind of Policy will be ideal for the bank
    to have ,to be prepared ,if it see a posibility , that even if now things are improving ,that at any time Russia could face a major war?  Will that justify the policy of conservative interest rates of 10.5% and the buying of Gold non stop and all the decisions the bank takes today,that now are criticized?

    This is why im not sure about what either side says. Because the decisions of the Bank,
    will have to take into account the possibility of a major war with a neighboring country.
    or that americans manage to totally isolate Russia from Europe or american dollar collapse or a limited conflict/war with Turkey/Ukraine or NATO. but also take into account the Oil to be a low as $30 or $20. So it will be interesting how different the bank policies will be if the negative things above happens.

    So people saying.. ohhh, the inflation is now fixed ,why the bank is not lowering interest.
    Because Russia can still face danger,and the possibility of major negative events to Russia created externally.. like an attack on Russia , needs to be taken into account too? So this means
    that the bank perhaps needs to look at long term ,before taking any decision ,of negative events
    that could happen.

    It will be like the following scenario. You see a fire in a room of your house. and people complain why you dont totally extinquish it...but those people not aware the fire was created
    by people in the outside armed with Guns ,and they not aware there are people inside. So the owner that have more information ,thinks.. that it will be better to totally stop the fire ,only
    when the bandits leave ,and the danger of something worse to happen is over.  But all this is what i think the bank could be doing.. i might be wrong however. and they simply might be evil liberals ,at the service of the Rothchilds and Rockefellers ,and just taking orders from Americans ,and seeking to collapse Russia economy as other suggested.

    again im not an experts in economy ,so will never claim to know anything. but when it comes
    to politics ,i understand very well almost all decisions taken by Putin's (Reactive Policies) in Ukraine and Syria , when vast majority of people in this forum not. Some wanted Putin to invade Kiev and not aware of the worse consequences of that. Some wanted Russia to capture all Syria and not aware of the much worse consequences ,that could happen if Syria "fully liberated" at the wrong time.  It will have been like Americans throwing their entire army and all they have into North of Vietnam after the vietcong TET offensive fails ,with the intention to "fully win" the war.and fully capture north and south vietnam , and later discover that China and Russia invades when they are about to capture it all . and pushed back into a total defeat for not taking into account ,unexpected negative events.

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    Post  Vann7 Tue Jun 21, 2016 9:33 am

    @seph



    Take a look at something really positive Russia have done recently.

    Russian Economy General News: #6 - Page 36 The-irkut-mc-21-is-the-first-built-from-scratch-russian-airliner-to-enter-the-medium-haul-market-in-more-than-20-years

    This is what Russia needs. !!!
    To advertise and show Russia to the world as a very development European Nation.
    This is one example of the very few ones ,to name ,that Russia have to earn respect of the
    west. Even the Liberal Rusophobic website BusinessInsider , did an excellent and very
    positive report about the plane.  Cool   With lots of images..

    Everything looks perfect.. even the model.  lol1

    Russian Economy General News: #6 - Page 36 -and-four-abreast-seating-in-business-class

    Russian Economy General News: #6 - Page 36 So-far-irkut-has-175-firm-orders-for-the-mc-21

    IF only Russia could do that always with all its business ,it will not have the bad image
    it have in the world. Unfortunately this plane was poorly advertised by Russian media in the english language ,where it should matter more . So 90% of the world will not even know is a Russian plane or that it even exist.

    you need to use google search or youtube to get good video and promo , because Russia internet media owned websites did a poor job.

    This is how a report of a new major business  should be done.


    http://www.businessinsider.com/russian-irkut-ms-21-airbus-boeing-2016-6

    This is how Russia can earn respect . People respect development and a modern nation.
    but at the same time they will make jokes and disrespect the outdated ones. I remember
    how just a few years ago ,people first impressions of Russia was only about a dated
    country with rusty military. now all that is changing but not fast enough.

    Now Russia have there something that can be used to influence business , so this is good.
    A nice sport car that competes with the west will be good too , no idea why they allowed Marussia to fall. or Yotaphone 2 to move away of their hands.  Mad  Perhaps if Putin took the money of those pensions of people NOT living in Russia ,and put it on financing business like Yotaphone or buying MArussia company ,that will be very good for Russia world image. then things will be far better. Russia not sexy , is what Europeans says . when you compare it with western Business. But all this things mentioned above ,do help significantly to make Russia more respected in the world and win the favor of the world opinion but only if the business do not fall.

    if i were Putin ,i will push heavily in Space , create a space shuttle ,that could orbit moon an return, with the aim of making it profitable with time, then move and develop really amazing computers or at least become a major competition for Microsoft. that will be HUGE. And very descent Sports cars will not be bad. and get back again its yotaphone .and it will be even nicer if Russia push heavily in the entertainment /gaming industry. This is not asking too much of what Russia can do , those are very doable things ,that Russia already have experience. It only needs Russia to know its priorities , in creating state of the art business. and stop wasting money in sports or creating a large navy or worse giving away its money to pensioners that not even live in Russia for free. So wrong. Neutral

    Is so crazy the capabilities Russia have in terms of scientific community ,but doesn't know how to use them and generally when do something great is not advertised properly. Russia could stop the American cold war by just adversing Russia better in the world ,and winning a thumbs up from the west about its business. Americans only respect leadership in Business and Force . and that it. Russia needs to influence the west with state of the art business ,thats all it needs to do.  Becoming a world major exporter of organic food ,while is good for economy ,they should not even bother to announce it or even promote that ,since nobody cares. Americans never advertise is huge agriculture power. or its energy business. Since is nothing that society really interested in. Like for Poland is nothing to be proud of selling apples. Is just a business like any other and nothing special. One of Putin major mistakes since came to power is to try to influence Ukraine with Gas discounts and help its military industry to not die. It was Putin who told that Russia help to Ukraine cost Russia about $100 billions in aid ,in two decades and look
    at the gratitude it got back. Most young Ukrainians wanting to unite Europe and not Russia.
    This is because when Putin was "influencing" Ukrainians with energy discounts and jobs producing soviet parts. Americans was earning the hearts of Ukraiians with its technology and entertainment. No  Yakunovych won the elections legally with vast majority of Ukrainians. including the ones in Donetsk and lugansk ,in support of joining the EU+ good relations with Russia. So you see the big contradiction ,that the same people who now claims to be Russian
    in eastern Ukraine, did not complained at all ,when Kiev declared its independence. and where
    happy with its independence.  lol1  Oh because it was going to be more Europeans. and not
    outdated Russia.

    That said ,in the case of Russia ,Good economy is not enough . Because it have a very powerful nation ,sabotaging their business and economy. So it needs to be a leader too ,in the world of business like Japan ,france and germany are. that dominates some things. Putin did not created an economy ,that could allow Russia to become an influential nation to young generations of Ukrainian and this is why Americans succeed in creating a coup and this is why now they paying
    the price of having two wars in two countries. For not knowing how create business that could influence Ukrainians or Americans.  


    Creating things that are state of the art and everyone will love to have ,or use ,is where Russia needs to focus more and orient its economy more.  Thats the only thing
    that could attract Ukraine back to the Russian orbit and all its neighbors to get closer and put an end to the hostilities of Americans ,when they see ,they will benefit a lot by having good relations with Russia. This does not means that Russia abandon its energy business. any business that give profits is good . It only means that to take very seriously the image of Russia
    in the world and become the most technological development nation in all Europe. and become as influential as Japan. But without its debt and lack of independence.
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    Post  Austin Wed Jun 22, 2016 8:35 am

    "Rosneft" has signed at SPIEF 2016 contracts worth $ 44-45 billion

    http://tass.ru/pmef-2016/article/3388556

    I am pleased that we were able to support the president and our country in the documents that we signed," - said CEO of the company, Igor Sechin

    MOSCOW, June 21. / TASS /. "Rosneft" has signed at the recent St. Petersburg International Economic Forum (SPIEF) contracts worth a total of $ 44-45 billion, he said in an interview to television channel "Russia-24" CEO Igor Sechin company.

    "For our company to participate in SPIEF is held under the auspices of our President, -. It is an honor I am pleased that we were able to support the president and our country in the documents that we signed," - he said.

    "I must say that the estimates made are preliminary and far beyond the settlements, announced at the forum Our company signed documents for $ 44-45 bln." - Said Sechin.


    On the role of Russia in the oil and gas market


    The head of "Rosneft" considers that the role of Russia in the oil and gas market will rise.

    "Of course, it (the role of Russia in the oil and gas market - Ed..) Will be increased because, as I said, look:. Resource base - one of the best in the world, the technology is there, themselves produce 30-stage hydraulic fracturing, have mastered the technology . Recently, it was difficult to say, "- said Sechin, adding that this will help to attract and finance, and long-term export contracts.


    On increasing oil production


    According to Sechin, "Rosneft" is going to increase oil production this year.

    "We are working on that every day I think that, given the capacity of drilling we will give a small plus at the end of the year in relation to last year.", - He said.

    On the preservation of dividend payments


    According to him, "Rosneft" is ready for dialogue with the government to maintain dividend payments at 35% of the IFRS.

    Under-funding of the oil industry could lead to the emergence of a trend to reduce the effectiveness of its work, said Sechin.

    About reduction of taxes

    The economic situation of the oil industry becomes severe, you need to reduce taxes, said "Rosneft" top manager.

    "Well, let's say, a lot of talk about big tax maneuver he expects for the price of $ 100. (A barrel - Ed..), But we have prices below $ 50 two years in a row, but the adjustment when the same has not come by itself Ministry of Finance recognized.. - yes, we counted up to $ 100 and further that if $ 50 -.?. is not $ 100, then we must take action to correct these approaches we understand the problems with the budget, we actively participate and contribute to the solution of these problems, but still. would like to note that the economic situation of the sector is becoming more difficult, especially in the processing is necessary to look for additional incentives, of course, "-. Sechin said.

    He noted that the need to reduce the tax burden on the oil industry.

    Sechin is also confident that the underfunding of the sector may cause the trend to reduce the effectiveness of its work. "It seems to me here - if we are talking about the fact that all have to pay 25% of net profit under IFRS - we all have to pay, and not to come up with 10% of the RAS or 50% of the RAS -. Means, let us all pay an equal the level of dividend payments, "- said Sechin.

    The CEO said that "Rosneft" would like to see other companies have provided significant support to the state budget.

    "And the tax and dividend burden on us - big enough and our auditors accurately counted, that each sold a barrel of oil, we pay at current prices of $ 25 per barrel of fiscal exemptions, but, unfortunately, we were the only such company in this country.. nobody so much does not pay. For us it is a great honor, of course, but given the fact that the tax burden on the company is significant, we would like to see we are not alone supported the budget and drew attention to other sources, including . to market the company, successfully working I think it would be fair and would support and our enthusiasm, "- said Sechin.
    On the sale of the package

    Sale of "Rosneft" package on the stock exchange would be extremely inefficient and can lead to the breakdown of sales opportunities, Sechin said.

    "In the context of price volatility, in terms of political instability in the capital raising market under shortfalls associated with various causes, public sale, stock sale will be extremely inefficient, and perhaps even lead to a breakdown of sales opportunities," - he said he.
    About borrowing

    "Rosneft" plans to borrow this year, said Igor Sechin.


    "We do a lot of attracting attracts mainly in the framework of project financing for the implementation of those projects which have economic viability We will involve, of course.." - He said.

    On the purchase of a stake in Essar Oil Refinery


    "Rosneft" expects that the completion of the deal to buy 49% stake in Essar Oil refinery in India will be held by October. "We have the main documents signed, go through various procedures, bilateral, obtain the necessary permits and are working to complete the deal here. (In the completion of the transaction - Ed.). Is not only up to us to think that by October about complete.", - He said, Sechin.

    The head of "Rosneft" did not mention the amount of the transaction to complete the signing of documents.

    "In general, we are talking not only about 49% of the refinery, we have included in the transaction perimeter of the second phase of the plant, it all requires a little clarification. In general, all major decisions were held, including on the issue of evaluation. Just have additional assets that we have included ", - he said.
    In July 2015, "Rosneft" and the shareholders of Essar signed the basic conditions for entering the Russian company in the authorized capital of Essar Oil refinery in the city of Vadinar with a share of up to 49%.

    "Rosneft" and Essar Oil have also signed a long-term contract for the supply of crude oil to India. The contract includes the supply of a total of 100 million tons of oil for 10 years. It was noted that "Rosneft" will start oil supplies to the refinery Essar refinery after entering the capital. Refinery capacity is currently 20 million tons per year. The parties intend to increase the capacity of the plant, bringing the annual volume of oil refining to the level of 45 million tonnes by 2020.

    The transaction perimeter includes also retail network of 1.6 thousand. Gas station on the territory of India. The party plans to bring the total number of petrol stations up to 5 thousand. For the next two years.

    Essar Oil - a division of diversified Essar Group, owns the second largest private oil refinery in the city of Vadinar India.

    The deal with a consortium of Indian companies


    The amount of the transaction with a consortium of Indian companies - Oil India, Indian Oil and Bharat Petro Resources - for the sale of 23.9% stake in "Vankorneft" is more than $ 2 billion.

    "It is true (value of more than $ 2 billion - ed.). Indeed so However, we managed to convince partners that the fundamental value of the mining project does not depend on the current situation, and even improve the original proposal What I would like to thank... our partners who trust us and who understand the value of our resource base, and now have the opportunity to participate in our work ", - said Sechin.

    According to him, the Indian partners are convinced that "all this work will be aimed at including in the energy security of India."

    "The fact that the Indian partners are increasing their share in the capital of" Vankorneft "allows, in turn, we have to take a decision on the development of East Siberian cluster We will develop oil production in this region and to organize new projects." - Said Sechin.

    "Rosneft" and a consortium of Indian companies - Oil India, Indian Oil and Bharat Petro Resources - within past St.Petersburg International Economic Forum signed a purchase contract - the sale of 23.9% shares of "Vankorneft 'and shareholders' agreement.

    After closing, the consortium will join the board of directors "Vankorneft". At the same time, "Rosneft" will retain a majority stake in the project, the majority of the board of directors, control over the operations, as well as complete control over common infrastructure cluster (including pipeline Vankor - Purpe).

    Vankor field is located in the north of Eastern Siberia in Turukhansk district of the Krasnoyarsk Territory, 142 km from the town of Igarka. 2P reserves of hydrocarbons in accordance with PRMS classification at January 1, 2016 amount to 265 million tons of oil and condensate and 88 billion cubic meters. m. gas.

    In 2015, at the Vankor field produced 22 million tons of oil and 8.71 billion. Cubic meters of gas.

    On the Venezuelan project

    "Rosneft" will be sure to implement the project on gas production offshore Venezuela and build a LNG plant, Sechin said.

    "We will definitely implement large gas production project offshore Venezuela and it will definitely put a liquefaction plant and I think that will be a key market, of course, Europe for us.." - He said.

    Earlier, in an interview with Tass head of Venezuela's state oil company PDVSA Eulogio del Pino said that "Rosneft" and PDVSA in July to sign an agreement on joint gas production at fields Patao and Mejillones.

    "Rosneft" and PDVSA signed a memorandum of intent to establish a joint venture on the St. Petersburg International Economic Forum in 2015. The joint venture plans to produce at two sites 25 million cubic meters of gas per day.

    The gas produced will be supplied to the region by pipeline or in liquefied form. The project involves the construction of an LNG plant. "Rosneft" plans to complete a feasibility study of the project before signing in July.
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    Post  Project Canada Wed Jun 22, 2016 3:46 pm


    Hedge Funds' Confidence in Ruble Reaches Record High Since 2013


    Made in Russia’ Brand to Get New Boost


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    Post  sepheronx Wed Jun 22, 2016 3:53 pm

    Interesting news. So speculators can attack Ruble based upon oil prices now.
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    Post  GunshipDemocracy Thu Jun 23, 2016 12:33 am

    from bmpd blog, interesting observation wich I fully agree with:

    The digital industry in Russia: no orders, but we hold on


    The second is young startups, paudie the first prototypes in the garage. They are forced to work in conditions of tough competition with the global market, is almost always less effective than the manufacturer of China, and often live in conditions of choice to go there, to get a job in any state holding company or continue to try to do something independently at home.

    To support the activities of start-UPS in Russia now implemented multiple programs and there are foundations like SKOLKOVO or FIDI, parks and institutions such as the Innopolis trying to copy Silicon valley. (Fun fact: all the speakers Cipro called it Silicone).
    However, to start is not a problem. The problems start when the company will last a few years, get some results, suitable for implementation in the domestic industry or to exit to the world market. Here it is waiting for young Russian studionow a big hole between “we made a prototype” to “we're ready to order you have a large party.” To overcome it need any serious investments, which are not always able to provide the Russian market, a major order from state-owned enterprises. But on large state-owned enterprises for young technicians look dismissive and almost always ready to order the technology abroad, as there is all established and ready for serial run, often with higher quality.

    The solution here, in General are obvious: large government contracts, tax incentives, simplified procedures for the approval, licensing and reporting. Do that wherever they want to bring their large technology manufacturers in China that in the United States. Even here the examples are not far to seek - rocket company SpaceX would never have achieved such rapid success without a multimillion-dollar state grants and contracts for a few billion.

    But this kind of logic in Russia is in conflict with the antitrust laws, procurement practices, and is contrary to the objectives of state enterprises. State-owned companies in their goal to fulfil the state order or international contracts, and its accountability to shareholders. Feeding some DIY in their purpose is not. As a result, the young startup has a chance to overcome the failure of the prototype to the series only if you are creating a really unique know-how which manufacturers simply can not refuse. But, as a rule, such a development will be able to easily find investments to access external market, and to understand the Russian, which is 2% of the world, will no longer make sense.

    All these issues have been voiced on the Cipro, but in these moments of decision makers in the hall was not so incomprehensible perspective of all these discussions. In any case, glad that there is an understanding of the problem, and this is the first step to solving it.


    http://bmpd.livejournal.com/1968132.html





    Viktor wrote:Nice  thumbsup

    Ulyukayev proposed to raise the retirement age after 2018

    no need to do it as long as avg Russian family has min 4kids Smile


    sepheronx wrote:Interesting news. So speculators can attack Ruble based upon oil prices now.

    they´ ve been doing this all the time. Better to have own commodity stock exchange valued in Rubles...but too soon you cannot do it because collapse of USA is too painful for Russian economy now.
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    Post  GunshipDemocracy Thu Jun 23, 2016 12:57 am

    [quote="Austin"]
    kvs wrote:1) Russia's domestic car industry is a victim of the CBR's loan-shark interest rates which are now 10.5% (a whopping
    drop from 11% and 5% above the current inflation rate).  

    CBR is trying to to Save the Savers and Pensioners , Basically today they have more money in hand over and above the inflation because of high interest rates and some of the negative effects of Sanctions on Saving/Pension class is nullified , also an incentive to save Money in Roubles for the Russians.

    []
    Austin wrote:
    Eventually the Putin government will have to come with a  seperate package for Business loans offering at 4-5 % and General Interest rates that can gradually match upto Business Loans interest at 4-5 %

    They already did it, not 5% tho but 1% on top of CBR base interest. Hope for this 4-5% tho. Govt colud consider removing all offshore companies from any gove sponsored programs.

    Austin wrote:
    I hate to say this but Russian CBR are prudent and are erring on the conservative side but the government has done a poor job of supporting the business class with special loans mechanism , Cant blame the CBR here.

    fair point, nevertheless CBR does a little to protect off-shore money flights and speculative investments so yes. They are doing bad job.
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    Post  kvs Thu Jun 23, 2016 3:04 am

    GunshipDemocracy wrote:
    Austin wrote:
    kvs wrote:1) Russia's domestic car industry is a victim of the CBR's loan-shark interest rates which are now 10.5% (a whopping
    drop from 11% and 5% above the current inflation rate).  

    CBR is trying to to Save the Savers and Pensioners , Basically today they have more money in hand over and above the inflation because of high interest rates and some of the negative effects of Sanctions on Saving/Pension class is nullified , also an incentive to save Money in Roubles for the Russians.

    That is some peculiar generosity there.  Do you think pensioners get 11% on their bank rubles?  

    http://russia.deposits.org/fixed-term-deposits.html

    So 1 month term deposit gets you 6% interest.  A regular savings account will have lower interest than any term deposit.  Banks don't want
    you to take out money on short notice.   So savers and pensioners are actually losing value from their savings since the interest they get
    from banks is less than the current inflation rate (between 6% and 7%).
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    Post  Austin Sat Jun 25, 2016 12:09 pm

    Indian Economy and Stock Data

    Russian Economy General News: #6 - Page 36 Gdp-in10
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    Post  Austin Sat Jun 25, 2016 12:25 pm

    kvs wrote:
    GunshipDemocracy wrote:
    Austin wrote:
    kvs wrote:1) Russia's domestic car industry is a victim of the CBR's loan-shark interest rates which are now 10.5% (a whopping
    drop from 11% and 5% above the current inflation rate).  

    CBR is trying to to Save the Savers and Pensioners , Basically today they have more money in hand over and above the inflation because of high interest rates and some of the negative effects of Sanctions on Saving/Pension class is nullified , also an incentive to save Money in Roubles for the Russians.

    That is some peculiar generosity there.  Do you think pensioners get 11% on their bank rubles?  

    http://russia.deposits.org/fixed-term-deposits.html

    So 1 month term deposit gets you 6% interest.  A regular savings account will have lower interest than any term deposit.  Banks don't want
    you to take out money on short notice.   So savers and pensioners are actually losing value from their savings since the interest they get
    from banks is less than the current inflation rate (between 6% and 7%).

    If you are into Liquid Fund or buy Government Bond you get the benefit of Interest Rate within short time , Atleast In India that is the case , we have to buy this via Mutual Fund and they are market linked which mean Bonds are traded and tend to be volatile depending on interest rate fluctuation.
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    Post  higurashihougi Wed Jun 29, 2016 6:43 am

    http://www.kommersant.ru/doc/3025002

    ВЦИОМ claimed that:

    42% of Russian households think that their financial condition is not better.

    22% Russian think that their salary is reduced, 19% say that their salary are unpaid.

    40% think negatively about labor market, 41% say they need goverment help, 38% say that they have to use cheap alternatives of consuming goods.

    ====

    Personally I think these difficulties are temporary, just like when playing AoE you have to save money and reduce spending to move to next Age pwnd pwnd pwnd .
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    Post  GunshipDemocracy Wed Jun 29, 2016 1:47 pm

    higurashihougi wrote:http://www.kommersant.ru/doc/3025002

    ВЦИОМ claimed that:

    42% of Russian households think that their financial condition is not better.

    22% Russian think that their salary is reduced, 19% say that their salary are unpaid.

    40% think negatively about labor market, 41% say they need goverment help, 38% say that they have to use cheap alternatives of consuming goods.

    ====

    Personally I think these difficulties are temporary, just like when playing AoE you have to save money and reduce spending to move to next Age pwnd  pwnd  pwnd .


    Everything is temporary, geological periods as well not I am not sure people´s patience is though. Putin is very much a strong anchor for economy faith thet will be better is 50% of success but question if he can push needed reforms surrounded by liberal compradors and other Kudriono/Chubaiso scum.

    My educated guess is new elections...many changes can happen...world depression, Trump as president slow decomposition o EU.
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    Post  sepheronx Wed Jun 29, 2016 2:52 pm

    I don't get that poll. Where and how many were polled? As well, cost of education? Education is subsidized and you don't pay for it besides in taxes. Private education on other hand maybe.

    This is also worth mentioning:
    Although almost half of respondents said the deterioration of their financial situation, the VTsIOM survey does not include data on the number of other responses. Rosstat also does not record significant fluctuations in the level of poverty in the first quarter - according to the agency, this rate seasonally adjusted increased from 15.9% to 15.7% of the population. Earlier expert CMASF Igor Polyakov explained by the fact that per capita income growth outstripped growth of a living wage, and this has allowed the agency to conclude a formal reduction of the number of poor. Note that after a few months due to a seasonal fall in prices on the share of subjective poor products can also be reduced.
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    Post  Austin Wed Jun 29, 2016 4:41 pm

    Siluanov: spending from the reserve fund in 2016 will not exceed 2.2 trillion rubles.

    http://tass.ru/ekonomika/3413505
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    Post  sepheronx Wed Jun 29, 2016 7:43 pm

    Trade surplus dropped by 38% so decline in GDP was about 1%. So this year, GDP decline may be about the .8 - 1% mark compared to last year as May saw a .8% decline. Not bad but not good either. Regardless of news of new development, exports dropped. This should be the indication and the fire under the ass of the authorities to expand domestic consumer market. But as pointed out, domestic consumer market is in a decline as everyone is trying to save. So ultimately, Russia will face a drop, and it is the fault of both the authorities and the Russian people themselves. If they become reliant on exports, they become reliant on foreign politics and world economic issues. If they tell their own people to cut back spending, they end up alienating their local producers due to them not Making money off sales. So this will definitely tie into GDP decline.

    I don't think the authorities are fully aware of such issues.

    Time will tell though, as the mid season to later seasons are the times to spend and that slumps always happen in earlier parts of the year.

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