Russian Economy General News: #10

"Russia’s reserves fully cover nation’s internal & foreign debt for 1st time ever – Putin."

https://www.rt.com/business/451954-russia-reserves-cover-debt/

$6.3B in one year? With those heavy sanctions? Wow, that's a drop in the ocean.

Now mind you, did the calculations take effect of domestic purchases being made over what would have been imported before hand? Or is it based upon old trade calculations prior to 2014?

I think the losses that were mentioned are about trade that would have been made with the countries concerned if the sanctions weren't imposed. what surprised me is the restrictions India has imposed towards Russia which made them 3rd in the list of entities with most restrictions against Russia following the EU and Ukraine.

Putin orders to create most comfortable conditions for investments in hi-tech startups

MOSCOW, February 20. /TASS/. Russian President Vladimir Putin has instructed the government to create the most comfortable conditions for investment in high-tech start-ups.

"Now is the time for bold initiatives, for creating businesses and industries, promoting new products and services, and the wave of technological development allows us to grow and conquer markets very quickly," Putin said in his State of the Nation address to the Federal Assembly.

"We already have examples of successful companies, innovative companies, so that there would be much more, in particular in such areas as artificial intelligence and big data processing, the Internet of things, robotics," he added.

"I am instructing the government to create the most comfortable conditions for private investment in technology start-ups, to target them at support and development, and I am asking the lawmakers to quickly adopt priority laws to create the legal environment of the new digital economy, which will make it possible to enter into civil transactions and raise financing using digital technologies, develop e-commerce and services. All our legislation needs to be tuned to a new technological reality," the President stressed.

Earlier Putin stressed the need to improve the legal protection of intellectual property and to create attractive conditions for registration of patents in Russia.

http://tass.com/economy/1045541

par far wrote:"Russia’s reserves fully cover nation’s internal & foreign debt for 1st time ever – Putin."

https://www.rt.com/business/451954-russia-reserves-cover-debt/

How many countries can say that?

Kind of funny the Tass article cause agriculture exports have increased since sanctions, and account for more than it did before, yet it says agriculture industry lost potential $1.1B which I doubt.

The restrictions may be mostly due to trade in domestic currencies. If not, Russia could hit India pretty hard due to India's reliance on Russian oil and weapons. So I think it has way more to do with the lack of ability to pay in USD. Hence why both are finding ways to increase in domestic currencies.

The sanctions have brought Russia a lot of money. Metallurgy is not really facing hardship either.

I know for a fact the article uses hypothesis and assumptions based upon old calculations and not new.

Jeffrey Gundlach on the market, millennials, cannabis, taxes, and the 2020 election

Hole wrote:

par far wrote:"Russia’s reserves fully cover nation’s internal & foreign debt for 1st time ever – Putin."

https://www.rt.com/business/451954-russia-reserves-cover-debt/

How many countries can say that?

Just Russia.

Two nice articles.

https://russia-insider.com/en/russias-exports-continue-defy-sanctions/ri26327

Hellevig hits the road.

https://russia-insider.com/en/putin-russia-finally-getting-proper-roads-progress-impressive/ri26314

Pres. Putin visiting the central bank.

GunshipDemocracy wrote:

Nibiru wrote: Sanctions cost Russia $6.3bln in 2018, says Economy Ministry

while here cost = quotas planned to sell but not sold


Looks like recession is on      

Tax revenues in the consolidated budget of Russia increased by 23% in 2018

The head of the Federal Tax Service Mikhail Mishustin stressed that this is the maximum increase since 2013

“The consolidated budget in 2018 received 21.3 trillion rubles, which is 4 trillion rubles, or 23%, more than the corresponding period of 2017. This is the maximum increase since 2013,” Mishustin said, noting that in 2017 revenue was 20%.

The federal budget received 11.9 trillion rubles, which is 30.2% more than in 2017.

The amount of income from income tax amounted to 4.1 trillion rubles, from VAT - 3.6 trillion rubles, from personal income tax - 3.7 trillion rubles, from property taxes - 1.4 trillion rubles.
“The consolidated budget in 2018 received 21.3 trillion rubles, which is 4 trillion rubles, or 23%, more than the corresponding period of 2017. This is the maximum increase since 2013,” Mishustin said, noting that in 2017 revenue was 20%.

The federal budget received 11.9 trillion rubles, which is 30.2% more than in 2017.

The amount of income from income tax amounted to 4.1 trillion rubles, from VAT - 3.6 trillion rubles, from personal income tax - 3.7 trillion rubles, from property taxes - 1.4 trillion rubles.

https://tass.ru/ekonomika/6137007

Such a large tax revenue increase reflects both structural adjustment (less tax evasion) and solid GDP growth. Anyone claiming that Russia's
GDP is stagnating is an ignoramus or malicious. Time to stop counting debt paydowns as GDP contraction, they are actually a GDP gain since
money that would have been siphoned abroad as interest payments is reduced. Real growth in Russia in 2018 was 6.5% and not 2.3%.

Hole wrote:
How many countries can say that?

USA, as long as printer is working

kvs wrote:
Such a large tax revenue increase reflects both structural adjustment (less tax evasion) and solid GDP growth.    Anyone claiming that Russia's
GDP is stagnating is an ignoramus or malicious.    Time to stop counting debt paydowns as GDP contraction, they are actually a GDP gain since
money that would have been siphoned abroad as interest payments is reduced.    Real growth in Russia in 2018 was 6.5% and not 2.3%.

I guess both - "ura" -patriots are either economic ignorants or have no business life experience. [i]Like print money and lower % rates. Of course Zimbabwe or Venezuela didnt make them to re-thin approach. Well good intentions but no practitioners among them.

malicious - Vth column. People who cannot imagine other way as being the part of WEST (at best a servant one) . They dont care about Russia but sweet life like in 90s. No state, no taxes, money offshore ($ of course).

"In my IMHO" growth is mostly because of tax system's sealing + more grey zone tires to move into legal business. Some time go I bet here that once grey zone gets official GDP shall grow by ~30% lt's see

Siluanov estimated budget expenditures on the execution of Putin’s orders

Дополнительные расходы российского бюджета на выполнение поручений президента России Владимира Путина, озвученных в ходе послания Федеральному собранию, составят ежегодно от 100 до 120 млрд рублей. Об этом заявил первый вице-премьер правительства РФ, министр финансов Антон Силуанов.

Необходимые средства будут изыскиваться по мере реализации бюджета, подчеркнул он, передает в среду, 20 февраля, ТАСС.

«По оценкам, считаю, что дополнительные расходы бюджета в ежегодном объеме составят около 100–120 млрд рублей», — цитирует министра «Газета.ру».

Ранее в среду президент России Владимир Путин предложил с 1 января 2020 года увеличить выплаты за первого и второго ребенка до двух прожиточных минимумов. РФ должна добиться возобновления естественного прироста населения в 2023–2024 годах, подчеркнул российский лидер.

https://iz.ru/848057/2019-02-20/siluanov-otcenil-raskhody-biudzheta-na-vypolnenie-poruchenii-putina

I am not a big fan of subsidizing child births. The portion of the population that will respond to this stimulus is the "white trash" end
of the spectrum who are poor enough to gain. An ideal stimulus would not select for low IQ. No, I am not a eugenicist.

In terms of taxes, the Russian government is already giving the public an enormous tax break by only collecting 13% of income.
Only the poor pay such rates in the west. There is not too much room to stimulate fertility. It really is better to create well
paying jobs (i.e. no offshoring).

[quote="kvs"]I am not a big fan of subsidizing child births.    The portion of the population that will respond to this stimulus is the "white trash" end [quote]

would you suggest young teachers, nurses, technicians or engineers are white trash? money will go fo reduction or flats. Not drugs/vodk.

PD wrote: In terms of taxes, the Russian government is already giving the public an enormous tax break by only collecting 13% of income.  

so tell me how young family is to buy a flat anywhere/house in Russia? mind no generations' accumulation in Russia en masse dont exist yet. Unlike in west. Ratio between flat price and salary is worse then in the west, interest rate much is higher instated.

The difference between Russia and the west is that in the west no politician cares. It is your problem. You want a bigger flat? Go and work more. It´s the worst in Trumpistan. You want good healthcare? Pay for it. You want a good education for your kids? Pay for it. If you are struggling to make ends meet than it is your own fault not that of the state.

Compared to this Russia realy cares and tries to make the life better for its people. Most problems that are still exist go back to the 90´s. How some idiots in Russia still think that the west is somehow better than them is

GunshipDemocracy wrote:

kvs wrote:I am not a big fan of subsidizing child births.    The portion of the population that will respond to this stimulus is the "white trash" end

would you suggest young teachers, nurses, technicians  or engineers are white trash?  money will go fo reduction or flats. Not drugs/vodk.

PD wrote: In terms of taxes, the Russian government is already giving the public an enormous tax break by only collecting 13% of income.  

so tell me how young family  is to buy a  flat anywhere/house in Russia? mind no generations' accumulation in Russia en masse dont exist yet. Unlike in west. Ratio  between flat price and salary  is worse then in the west,  interest rate much is higher instated.

I will contest this.

Give me examples. Cause official numbers in west (Canada) may look Rosey but it isn't. Best way is to compare debt and money saved between each other.

They should just ban abortion in Russia except in cases of critical medical situation, its against Orthodox Faith.

In 2018 according to CBR Russia received FDI of $ 1.8 Billion , which is a drastic drop compared to couple of years.

Can Current Account Surplus of $ 114 Billion can be considered as inward money along with Budget Surplus ?

What about all those tens of billions signed in contracts regarding the economic forums?

Keep an eye on this channel guys.

https://russia-insider.com/en/see-yourself-30-new-modern-amazing-airports-stagnating-russia-great-pictures/ri26317

Railways will spend almost 90 billion rubles for the purchase of new locomotives in 2019

Railways plans to send 88.6 billion rubles to update the locomotive fleet, the press service of the company reports.

“In the structure of the supply of traction rolling stock - 356 electric locomotives, including 35 - passenger (EP1M - 4 units; EP2K - 25 units; EP20 - 6 units). 130 electric locomotives of 2ES6 series, 84 - 2ES5K series, 76 - 3ES5K series, 10 - 3ES4K series, 7 - 2ES10 series, and 4 - 4ES5K series will be purchased for cargo operation. The delivery plans also include 10 electric locomotives of the 2ES7 series, ”the company said.

The company intends to acquire 318 electric locomotives TEP70BS, freight locomotives 3TE25K2M.

“It is planned to expand the range of procured shunting locomotives. So, from 2019, it is planned to begin purchasing two-axle diesel locomotives TEM31M (5 units), intended for light and medium-sized shunting work at the depot, ”added the company.

https://rns.online/industry/RZHD-potratit-pochti-90-mlrd-rublei-na-zakupku-novih-lokomotivov-v-2019-godu-2019-02-20/

If the Russian government wants to stimulate the population growth it needs to subsidize all children. One of the reasons
why developed countries have collapsing TFRs is that it costs an arm and a leg to raise children. Compared to the 3rd world, children
stop being an asset and become a liability.

One of the ways to make children more affordable is to heavily regulate the toy industry to prevent the sort of BS you see in the west
where parents blow tens of thousands of dollars on kiddie games and clothing because the little sh*ts are propagandized by TV
commercials. This brainwashing to crave material trash also undermines the character of the these children. They are unable to
be self-sufficient to the same extent since they need their vapid material urges satisfied. In other words, they become good little
consumers and not solid citizens. That is, trash.

Latest twiitt from Trump ,that also is backed by his Economic secretary , when he told ,
the day China leads ,in IT ,Robotics and high tech ,it will be impossible for US economy
to recover.. confirms what i have been painfully saying here on this forum on deaf ears ,
That is not bananas ,agriculture records ,commodities or Sport bullshit where  Russia needs
to lead.. but in   in MODERN BUSINESS ,,, HIGH TECH that are are very popular
and people love..  Why Because this is the way to destroy the American Empire..  thats why.
and without firing a bullet.. or starting a nuclear war..  Is by becoming a LEADER in modernization
of the world into the FUTURE.. how you LEAD the world and influence nations into your Orbit..

Putin weakness ,plead for good relations ,for their western "partners" to come back to their
senses is idiotic.. Is only by LEADING.. by being STRONG NATION in business how they will follow
your country not because of fear , but because of excitement.

Donald J. Trump
‏
Verified account
@realDonaldTrump  11h11 hours ago


....something that is so obviously the future. I want the United States to win through competition, not by blocking out currently more advanced technologies. We must always be the leader in everything we do, especially when it comes to the very exciting world of technology!  

https://twitter.com/realDonaldTrump/status/1098587583469228037

https://www.rt.com/usa/452111-trump-demands-6g-technology/


So why the weak President Putin don't do the same ? and push Russia economy , into competition
to American high tech companies?  China was behind Russia 20 years ago in electronics and now they lead.. and landing in the moon too..   Why no one in this forum can understand is not quantity but QUALITY economy ,what really matters.. ??  Who cares how much GDP Russia have.. a nuclear attack
on moscow that the idiot putin is provoking by doing nothing to fight back,will send Russia economy to the stone age. in a second..  So is either Russia Influence Americans/or Europeans into their system.. or else Russia is destroyed..   Influence and leadership in Exciting Space and world of technology .. not demos in laboratories and later put in a closet.. but real Business to REPLACE American most popular high tech companies is how you put and end to NATO , and the American system..  This will not only disband the US empire ,but will make it impossible for US to continue
the cold war with Russia , because they will start to see Russia differently ,that they can benefit
more with good relations with Russia .  This is why instead of Russia starting an arms Race..
or creating more powerful nukes , or hosting more olympics ,is a high tech /space exploration race.. where Russia needs to invest 100% of their energies.  Defeat NASA space exploration in near future with manned landing moon /mars , or Create a new internet ,+ defeat US semiconductor industry and that will end the American System , its dollar value will collapse , the day Russia offers a real alternative to American exciting business.

Putin wants respect for Russia and its allies , then is not pleading on it knees how he will get it..
But by being STRONG , and by transforming Russia into a real strong and exciting business nation.
Is not about Money people.. get this for once.. is about INFLUENCE and Leadership.. is not the same thing..  Saudi Arabia and Qatar have a lot of money , the last one have the best quality of life in the world ,best clean streets ,roads and facilities , Qatar is a very wealthy nation with better cities than Europe.  But it don't have influence or leadership. If putin wants to disband NATO and Americans to make peace with Russia.. it needs to promote real awesome business ,that impress the world.. not for the money , but how advanced ,exciting and innovative is.. SPACE exploration is very exiting..
Computers and Robots too..Smartphones, Sports cars.. Digital entertainment and movies too..video games too..  In the future  more than ever ,real success ,will be real influence, and will be defined by what a nation can do ,that others can't do..for being beyond their nation capabilities, and that capture the attention of society.  Anyone can build olympics .make roads or parks.. anyone can sell oil but not many nations can go to space ,even less no nation can land with humans in other planets.

Financial intelligence estimates at $ 20 trillion the shadow economy in Russia

Подробнее на РБК:
https://www.rbc.ru/economics/22/02/2019/5c6c16d99a79477be70257ee

The volume of the shadow economy in Russia last year exceeded 20 trillion rubles. and amounted to about 20% of the country's GDP, follows from a preliminary assessment of Rosfinmonitoring, which RBC has learned