Russian Economy General News: #8

According to the vice-premier, "defense enterprises, military factories should now think over the production of high-quality, high-tech civilian equipment"
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LOWER TAGIL, 9 September. / TASS /. Deputy Prime Minister Dmitry Rogozin said that it is planned to produce military and civilian products in equal proportions at domestic defense enterprises.

"We generally want to do so that we have approximately 50 to 50 volumes of production - military and civil - were at each plant," he said in an interview with Rossiya 24 .

"There are separate factories with their narrow specialization, for example, it will be difficult to make strategic nuclear missiles of civil purpose," he remarked with a smile. "This, of course, is a joke, but everything else can be done," Rogozin said. "As long as there are those who would like to solve political issues with their military adventures, the military factories in the Russian Federation will be given special significance," he stressed. However, according to the vice-premier, "the volumes of financing of the state defense order are now connected with the filling of the financial gap that was in the past years." "When we fill the armed forces with an average of at least 75% with new military equipment and this level will be constantly maintained, it will not require such large investments," Rogozin specified.

In his opinion, "defense enterprises, military plants should now think about the production of high-quality, high-tech civilian equipment." The Vice-Premier noted that the defense enterprises "have everything for this: a highly skilled working class, technology." "We can do everything!" - he answered the question of what kind of civilian products can be produced by defense enterprises. At the same time he did not agree with the fact that the military factories will produce pots. "We already produced them in the early 90s, it was a discrediting of the subject of conversion," the deputy prime minister explained.

As an example of possible products, he cited the creation of modern tractors, unmanned equipment for agriculture, electronics for space. "Everything is compatible here, we just need to reasonably put those tasks before the military factories, the military industry, military science, which will not exactly stop the military production, and in the framework of synergy will provide quality products for the civilian market that does not contradict military specialization," Rogozin said.

China invests $9.1 billion in Rosneft as Glencore, Qatar cut stakes

MOSCOW/BEIJING (Reuters) - SEPTEMBER 8, 2017 Chinese conglomerate CEFC will buy a 14.16 percent stake in Russian oil major Rosneft (ROSN.MM) for $9.1 billion from a consortium of Glencore (GLEN.L) and the Qatar Investment Authority, strengthening the energy partnership between Moscow and Beijing.

CEFC China Energy has grown in recent years from a niche oil trader into a sprawling energy conglomerate and the transaction will allow China, the world’s second largest energy consumer, to boost cooperation with the world’s top oil producer.

The deal comes as the United States imposes a new round of economic sanctions on Russia, making it difficult for large Western firms such as Glencore to develop partnerships and increase ties with state-owned firms such as Rosneft.

Singular_Transform wrote:Russian car output up by 20% compared to the same three month of 2016.


The July numbers revised by close to 20% upward.

The annualised car sales can be 1.56 million by end of this year.

Bad news is it needs 3.2 million car ales to stop the ageing of the Russian car stock.

In the framework of the long-term development program until 2025, RZhD can invest over 5 trillion rubles. This was told to journalists by RZD President Oleg Belozerov within the framework of WEF-2017.

"More than 5 trillion rubles to 2025, we could invest, while the total investment in the railway sector, wherever we would like to participate - more than 7.5 trillion rubles," he said.

As explained in the company, over 2 trillion rubles should come from other investors.

The indicated means, he said, can be invested in infrastructure, in locomotives.

Belozerov noted that RZD is trying to reduce the share of public investment and use alternative sources.

"We do not refuse, including in the future, from preferred shares," the head of Russian Railways said. In part, they have already been bought out by the SWF, he agreed. "The sale was in favor of the state. But why not sell on the market? Therefore, solving the problem, so that we do not deteriorate covenants (in debt - RNS) we need money in the capital. We will solve it through PPP, eternal bonds - we need to attract money to the capital, "he said.

While the issue of selling preferred shares on the market, according to Bedlozerov, was not discussed in detail. "We will clearly understand in 2018-2020," he said.

In 2017, the investment program of the Russian Railways may amount to about 510 billion rubles, Belozerov said at a meeting with journalists in the framework of the railway forum "1520 Strategic Partnership" in Sochi.

"The company's investment program will be adjusted. It has already been adjusted to about 495 (billion rubles - RNS), but we want to increase it to about 510 (billion rubles - RNS), "he said.

Austin wrote:The 5 trillion rouble in next 8 years is great news money spent in Infra will help in long term growth.


kvs is this information on Russian debt and other accurate ?

https://debtclock.tv/world/russia/

...Russia's central bank said on Friday it may consider buying foreign currency to restore its international reserves up to the level of $500 billion....

JohninMK wrote: The UN has analyzed the effect of sanctions imposed by the European Union on Russia. According to the report, the sanctions cost the EU's economy $ 3.2 billion a month or $38.5 billion per year, whereas for Russia, direct losses today amount to about $15 billion a year.

The report emphasizes that the sanctions imposed did not have the desired effect, moreover, they proved to be counterproductive. As a result of globalization and full integration of the Russian Federation into the world economy, they affected the initiating countries themselves while stimulating the rapid growth of the local market.  

"The Russian example shows the expected adaptability (to sanctions) for a prosperous country with diverse resources, a highly qualified population and numerous trading partners."

These kinds of repeated findings however do not slow down the aggressive behaviour of the US Congress to pass and implement new rounds of sanctions on behalf of their European partners.

http://www.fort-russ.com/2017/09/un-eu-sanctions-against-russia-have.html

miketheterrible wrote:They are hoping, but it won't get them anywhere.  Unless they will all gang up on porky to build relations again with Russia. But I doubt that anyone left in Ukraine wants relations with Russia.

Anyway, I agree with KVS. Whatever loss Russia could be getting from sanctions, is supplementing it with growth in import substitution, while the EU relied on its sales greatly with Russia. What Russia is "losing" is questionable anyway, since Russia barely exported any end goods with EU and it was simply what they currently sell to EU - energy.

Public-interest litigation has been filed in Delhi’s top court asking for a special investigation into claims the Adani Group and other energy companies inflated coal and equipment prices to siphon money from India.

The writ alleges the Adani Group, the Indian company Essar, and several others inflated the price of power equipment and coal “in order to cheat the people and to siphon off funds from public companies”.

Subsidiaries of Essar and the Adani Group are among 40 companies who have been accused of using front organisations to increase the price of coal they mined from Indonesia. The total value of the alleged scam has been estimated at 290bn rupees.

Austin wrote:Russian Railways can invest 5 trillion rubles in the long-term development program until 2025

Is Bullet train viable,or a reckless megalomaniacs vanity project,like his gas field where 20kCr went down the drain

"This is not the right time for bullet train in the country but there was a need for improving existing facilities, speed, infrastructure and comforts of passengers," Sreedharan, also known as the 'Metro Man' for developing the vibrant Delhi Metro, said in an informal interaction with reporters on sidelines of a function here.
He said the Railways should concentrate on betterment of the existing facilities at the outset and think of bullet train later.

The population's deposits with Russian banks increased by 5% in eight months and as of September 1, 2017 amounted to 24.8 trillion rubles, the Central Bank's monthly review of the dynamics of the banking sector of the Russian Federation in August 2017 follows.

"The population's deposits increased by 5.0% in eight months; more modest - by 0,9% - there was an increase in deposits and funds of organizations in the accounts. The portfolio of interbank loans attracted from non-resident banks has decreased by 14.0% since the beginning of the year. For January-August the volume of issued securities (bonds, bills and bank acceptances) increased by 4.8%, "the survey says.

For eight months of 2017, the retail loan portfolio of banks grew by 7%. The assets of the banking sector increased by 4.5%; loans to the economy - by 3.5%, including loans to non-financial organizations - by 2.3%.

In January-August 2017, the assets of Russian banks grew by 4.5%, according to the Central Bank's monthly review "On the dynamics of the banking sector of the Russian Federation in August 2017".

"Over the eight months of this year, the assets of the banking sector increased by 4.5%; loans to the economy - by 3.5%; loans to non-financial organizations - by 2.3%, "the survey says.

In August, the assets of the banking sector, with the elimination of the impact of currency revaluation, increased by 1.3% for operating banks, to 82.1 trillion rubles, the survey says.

For eight months of 2017, the retail loan portfolio of banks increased by 7% to 11.5 trillion rubles, the Bank of Russia's report "On the dynamics of the development of the Russian banking sector in August 2017" says.

"Loans to individuals continued to grow at an accelerating rate: monthly growth (August) - by 1.6%, to 11.5 trillion rubles (this is the largest amount since February - the first month when the growth rate of the retail loan portfolio reached the positive zone) ", Says the review.

In the eight months of 2017, the retail loan portfolio of banks increased by 7%.

In January-August, the assets of the banking sector increased by 4.5%, loans to the economy - by 3.5%, including loans to non-financial organizations - by 2.3%.