Russia Defence Forum

Would you like to react to this message? Create an account in a few clicks or log in to continue.

Military Forum for Russian and Global Defence Issues


    Russian Economy General News: #12

    avatar
    owais.usmani

    Posts : 646
    Points : 646
    Join date : 2019-03-27
    Age : 35

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  owais.usmani Tue Jun 01, 2021 8:20 am

    miketheterrible wrote:https://sdelanounas.ru/blogs/141648/

    Russia is opening the piggy bank of the FNB. What our money will be spent on?

    Russia has decided to open the reserves of the National Welfare Fund contrary to the recommendations of the International Monetary Fund and is ready to send almost a trillion rubles to the first seven projects. Why this is good news and how accumulated petrodollars will help to revive our economy - we will show in this issue. And also tell how each of you can get a free domain in the .RUS zone and other positive news of the week.


    For the non-russian speakers, can you summarize the main points and projects discussed in the video?

    slasher likes this post

    miketheterrible
    miketheterrible

    Posts : 5865
    Points : 5839
    Join date : 2016-11-06

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  miketheterrible Tue Jun 01, 2021 8:53 am

    - Funding to expand BAM and it's infrastructure
    - modernizing highway between Moscow to Kazan and Kazan to Siberia.
    - Infrastructure projects in Krasnoyarsk region
    - oil and gas projects.

    More will be said later videos.
    lancelot
    lancelot

    Posts : 381
    Points : 383
    Join date : 2020-10-18

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  lancelot Tue Jun 01, 2021 9:51 am

    I hope they will use the funds to invest in programs which will pay back the investment.
    The roads seem to be ok investments, but these seldom pay themselves back.
    franco
    franco

    Posts : 4219
    Points : 4251
    Join date : 2010-08-18

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  franco Tue Jun 01, 2021 2:32 pm

    MOSCOW, June 1. /TASS/. Russia’s public debt increased by 741.3 bln rubles ($10.1 bln) for the first quarter of 2021 and amounted to 19.7 trillion rubles ($268 bln), the Accounts Chamber said in its report on execution of the federal budget for January-March 2021.

    "According to preliminary data, in the first quarter of 2021, the public debt of the Russian Federation increased by 741,290.4 mln rubles or 3.9%, and as of April 1, 2021, amounted to 19,681,692.6 mln rubles. (17% of projected GDP)," the report says.

    In January-March, the volume of Russia’s domestic debt increased by 4.6% or by 683 bln rubles ($9.3 bln), up to 15.434 trillion rubles ($210 bln). At the same time, its share in the total volume of the public debt increased to 78.4% from 77.9%.

    According to the report, Russia’s foreign debt decreased by 1.1% ($598.3 mln) and amounted to $56.1 bln as of April 1. However, in ruble terms, the foreign debt has grown by 1.4% since the beginning of the year (58.3 billion rubles) to 4.247 trillion rubles.

    In accordance with the law on the federal budget for 2021, the maximum level of public debt in relation to the projected volume of GDP will be 20.4% (in 2022 - 20.8%, in 2023 - 21.4%). When this level is reached, Russia will continue to be among the countries with the lowest debt burden of public debt, so levels close to 20% of GDP seem safe, the Finance Ministry noted.


    https://tass.com/economy/1296557

    dino00 and miketheterrible like this post

    miketheterrible
    miketheterrible

    Posts : 5865
    Points : 5839
    Join date : 2016-11-06

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  miketheterrible Tue Jun 01, 2021 5:06 pm

    [quote="lancelot"]I hope they will use the funds to invest in programs which will pay back the investment.
    The roads seem to be ok investments, but these seldom pay themselves back.
    [/quote
    Did you watch the video?
    lancelot
    lancelot

    Posts : 381
    Points : 383
    Join date : 2020-10-18

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  lancelot Tue Jun 01, 2021 5:48 pm

    I skimmed the video but I don't know Russian.
    kvs
    kvs

    Posts : 9874
    Points : 10017
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  kvs Tue Jun 01, 2021 7:04 pm

    The statement about roads is an apples and avocados comparison. Russia has traditionally been lacking in terms of road capacity.
    By contrast, countries like the USA are saturated. So it is simply not correct to use the ROI in the USA or some other developed
    western country and apply the same to Russia.

    Really, Russian government investments have been scoring near 100% in terms of effectiveness in investment terms for the last
    20 years since I have been keeping track. There are no examples of Berlin Airport type gross waste of money and ridiculous
    delays to construction (which are part of the same corruption).

    Regardless, of how the money is spent, if it circulates in the Russian economy it is better than it circulating in western ones.
    And people need to realize that there no such things as "parked money investments". All investments are circulated into the
    general flow of money in the economy. The problem is when the money gets siphoned offshore and does not participate in
    the generation of domestic GDP.

    The whole theme about "misspending" of the oil investment fund is pure propaganda designed to lubricate the seditionist activity
    of clowns like Nahalny.

    Big_Gazza, slasher, lancelot, Scorpius and The_Observer like this post

    PapaDragon
    PapaDragon

    Posts : 10779
    Points : 10853
    Join date : 2015-04-26
    Location : Fort Evil, Serbia

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  PapaDragon Tue Jun 01, 2021 9:38 pm


    Russia’s gross international reserves tops $600bn for the first time ever

    https://www.intellinews.com/russia-s-gross-international-reserves-tops-600bn-for-the-first-time-ever-211993/?source=russia

    dino00, Big_Gazza, Maximmmm, slasher, PhSt, lancelot and Backman like this post

    PhSt
    PhSt

    Posts : 514
    Points : 518
    Join date : 2019-04-02

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  PhSt Wed Jun 02, 2021 3:21 am

    kvs wrote:This is exactly how this money should be spent.   Vital infrastructure is essential for development of the GDP.    The IMF bitching about
    keeping the money parked in western investments is self serving BS.   The video lists the various large scale projects which will be
    financed by this oil fund money, and they include upgrading the trans-Russia (Siberia) railway capacity.    This work is already underway
    and is attracting foreign goods transit from the Orient to Europe bypassing the Suez Canal.  



    I did some google search and it looks like the general consensus is that shipping freight cost is cheaper compared to rail freight, but the latter is faster. But Russia is also developing the northern sea route so it should become a more competitive alternative to suez in the upcoming years.
    kvs
    kvs

    Posts : 9874
    Points : 10017
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  kvs Wed Jun 02, 2021 4:39 am

    PhSt wrote:
    kvs wrote:This is exactly how this money should be spent.   Vital infrastructure is essential for development of the GDP.    The IMF bitching about
    keeping the money parked in western investments is self serving BS.   The video lists the various large scale projects which will be
    financed by this oil fund money, and they include upgrading the trans-Russia (Siberia) railway capacity.    This work is already underway
    and is attracting foreign goods transit from the Orient to Europe bypassing the Suez Canal.  



    I did some google search and it looks like the general consensus is that shipping freight cost is cheaper compared to rail freight, but the latter is faster. But Russia is also developing the northern sea route so it should become a more competitive alternative to suez in the upcoming years.

    That is true based on volume. But even Maersk has opened up a shipping channel using Russian rail. So there are offsetting effects on the shipping
    costs.

    https://www.maersk.com/news/articles/2021/03/03/maersk-to-pioneer-first-ever-block-train-japan-uk-via-transiberian-railway

    The Maersk´s forty 40’-container consignment has arrived at Felixstowe, UK, on March 2nd, after its departure from Yokohama, Japan in January and having crossed Russia by both land and sea.

    This first-ever product - operated together with railway provider Modul- is part of Maersk´s AE19 service which has connected Asia and Europe via the Trans-Siberian railway and the ports of Vostochniy and St. Petersburg since 2019. “Since its start two years ago, this is the first time that our AE19 services is making the full-size container train shipped with goods solely from Japan. Transit from Asia to Europe via Russia is becoming a more and more attractive alternative to shipping goods via the Suez Canal, even for such sea-borne routes as Japan to the UK. We are confident that the progress we made jointly on AE19 expansion last year, together with Russian Railways and our partners Modul, will continue the growth trajectory of Trans-Siberian transit in 2021” explains Zsolt Katona, Head of Maersk Eastern Europe.

    PhSt likes this post

    miketheterrible
    miketheterrible

    Posts : 5865
    Points : 5839
    Join date : 2016-11-06

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  miketheterrible Wed Jun 02, 2021 11:32 pm

    lancelot wrote:I skimmed the video but I don't know Russian.

    Essentially they are investing parts in expanding and developing BAM (huge money maker), oil and gas industry (didn't say what but may be assumed to be expansion of key projects and finishing that massive gas plant), key roads from Moscow to Siberia region, and key developments in Krasnoyarsk region. The last part is interesting cause Kasnoyarsk is the Vancouver of Siberia. Yet somewhat still under developed compared to Novosibirsk. Lots of massive opportunities there and I'm assuming they are starting it's development.
    kvs
    kvs

    Posts : 9874
    Points : 10017
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  kvs Thu Jun 03, 2021 12:10 am

    This new Russian road construction is like the road and rail construction 100+ years ago in the USA. It is all maximal economic return
    activity and not some make work project to repave or resurface existing roads. I think the new road construction will stimulate
    the economy of the Russian hinterland.

    Anything good happening in Russia is always pissed on and greeted with skepticism. I am not accusing anyone in this thread doing
    it. But the propaganda conditioning of pretty much the whole world is insane. People go on the conditioned reflex instead of even
    doing a nominal amount of research to figure out what is actually happening.

    par far, elconquistador, Hole, Kiko and The_Observer like this post

    franco
    franco

    Posts : 4219
    Points : 4251
    Join date : 2010-08-18

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  franco Thu Jun 03, 2021 1:12 pm

    Twenty-four "non-greedy men" of Putin

    The richest Russians have earned about $ 36 billion since the beginning of the year

    The elegance of the style in which Vladimir Putin solves state problems is simply admirable. For example, on June 1, communicating with large families, the President of Russia promised to concentrate "additional resources" on issues of their support. And right there, through television, he made a proposal to the general director of Surgutneftegaz, Vladimir Bogdanov, to help the large family of one of the company's employees.

    “Vladimir Leonidovich [Bogdanov] seems to be such a not greedy man, he should support such families,” the head of state said. “Let him look at Surgutneftegaz - the company is big, rich, such large families could be directly supported,” Putin said. “And, Vladimir Leonidovich? Okay? He hears us for sure. That will help, ”the president said .

    It is a sin not to help. At the end of 2020, the net profit of Surgutneftegaz increased almost seven times - from 106.162 billion to 742.871 billion rubles, and Forbes estimates the fortune of Bogdanov at $ 1.9 billion.

    In general, the aggregate fortune of Russian billionaires in the first five months of 2021 grew by $ 35.762 billion, RIA Novosti calculated based on the Bloomberg Billionaires Index (BBI).

    In total, the BBI ranking includes the 500 richest people in the world. It currently includes 24 Russians.

    In the first place among billionaires from Russia is one of the main owners of Norilsk Nickel, Vladimir Potanin - his fortune since the beginning of the year has grown by $ 3.81 billion (a total of $ 33.8 billion).

    The capital of NLMK's main beneficiary, Vladimir Lisin , has significantly increased - by $ 5.43 billion to $ 29.3 billion. He took the second line in the list.

    In third place is the co-owner of Novatek Leonid Mikhelson : he became richer by $ 4.45 billion. His fortune is estimated at 29.2 billion.

    The most significant growth since the beginning of the year was recorded by the main owner of Severstal, Alexei Mordashov - by $ 5.73 billion to $ 28.8 billion. He is on the fourth line of the rating.

    The sixth place was taken by the co-owner of Lukoil Vagit Alekperov - his capital increased by 2.82 billion (only $ 20.1 billion). The seventh line belongs to Gennady Timchenko , who owns stakes in Novatek and Sibur: his fortune grew by 2.72 billion to $ 19.4 billion.

    In eighth place is Roman Abramovich (Evraz) with a capital of 18.9 billion — it has grown by $ 445 million since the beginning of the year. In ninth place is the main owner of Renova, Viktor Vekselberg , whose wealth increased by 1.37 billion to $ 17.5 billion.

    At the same time, in the first five months of 2021, the state decreased only in six. They lost the most: the beneficiary of Eurochem and SUEK Andrey Melnichenko (tenth place) - $ 1.59 billion (total 16.5 billion), and Alisher Usmanov (Metalloinvest, Megafon) - $ 713 million. With a capital of 20.4 billion, he took the fifth line of the list. The fortune of the founder of the company "Alfa Group" Mikhail Fridman also decreased - by 583 million, to 13.8 billion dollars.

    But for these six "affected" oligarchs, such impoverishment is such that, as they say, an elephant is just a grain of salt. Therefore, the head of state can count on the fact that they will still “hear for sure” all of his initiatives on live TV broadcasts.

    But will there be enough for all Russians in need of support of such "non-greedy men"?

    - Large companies approach the issue of distributing money primarily through dividends, and not through investments. This imbalance is too obvious and is a problem that slows down the development of the economy and does not contribute to reducing the number of the poor in the country, - said Associate Professor of the Department of Financial Management of the PRUE. G.V. Plekhanova Ayaz Aliev :

    - We can note that in the first positions of the list of the richest Russians who increased their fortune during the pandemic and crisis are billionaires associated with industry and the raw materials industry. Energy carriers, oil , etc. have been and remain an important component in the world economy, energy carriers are bought, prices are high, and accordingly, this ensures growth in any case. There will always be a need for production, energy resources, construction sites and various large projects.

    And the financial sector during the pandemic period showed not the best results compared to other sectors. The fertilizer sector has experienced problems and the industry is losing its price advantage and competitiveness in world markets, which is reflected in the wealth of the owners.

    The oligarchs' money is mainly valued through the shares of the companies they own. Shares are traded in a financial market that is growing. So it turns out that shares are growing in price, and the assets of the oligarchs are also growing.

    Large companies approach the issue of distributing money through dividends, which has no effect on the population. This is a problem from which the country's economic development slows down. An approach based on the distribution of money by investment would be more advantageous from the point of view of the economy and the population.

    This would partially solve the problems in the economy. Investments would ensure the growth of the economy, and this, in turn, would provide an increase in the income of the population and would reduce the number of poor in the country.

    “It is much more effective not to wait for the establishment of“ heaven on earth ”, but to copy the behavior of the rich at their level, self-education and investing in income-generating assets, rather than new iPhones and beautiful rags,” recommends Sergei Chernikov, associate professor of the RUDN University Faculty of Economics :

    - As usual, the problem is in stereotypes. The overwhelming majority of our citizens' savings are either dollars under the pillow, or a deposit in a bank. Therefore, when people read “such and such an oligarch has billions and he is in the rating of such and such”, they automatically think that these billions are under his pillow, or on a card in his wallet.

    In fact, this phrase should be read as “such and such an oligarch owns, directly or indirectly, companies whose assets and business are audited and the exchange is estimated at so many billions. "That is, if you have a kiosk company that sells 10 million rubles worth of whites a year, then roughly this company can be estimated at 50 million rubles (a popular and very approximate coefficient). And you can already write about you “the fortune of such and such is estimated at 50 million rubles.” To this you can add real estate, patents , etc. , but the basis is business assets.

    Hence, it is clear why some "wealth" has grown, and some have fallen. If, for example, KAMAZ shares rose on the Moscow stock exchange and Norilsk Nickel shares fell, then the "wealth" of the former increased (and he entered some regular rating), and the wealth of the latter fell. At the same time, as a rule, this did not affect the daily expenses and living standards of both.

    "SP": - Aren't there not enough in our country of those who can afford not to reduce their usual spending even in a crisis?

    - Every country in the world has its own 1% of the population, controlling from 40 to 80% of the national wealth. The moaning on this topic has not stopped for decades, either in the United States, or in the UK, or in Japan, or the rest of the world.

    The degree of wealth of this 1% depends on a huge combination of factors - history, landscape, the current situation in the national and world economy, the culture of the peoples in the country, even the climate. And in spite of the song “must be taken away and divided”, beloved all over the world, there are no simple solutions here, and there is nothing special in the economic system of Russia either.

    In the most wealth-balanced country, Sweden, just 40 years ago, most of the population was very poor. And there is no guarantee that in 10 years it will not return to this state due to the changing situation with the climate and in the global economy.

    "SP": - To the Swedes their "welfare state" did not fall from the sky - they purposefully created it. Perhaps, in a situation where the poor get poorer and the rich get richer, it is not enough for Russians to copy the behavior of the rich at their own level?

    - The rich get richer and the poor get poorer, not only because the world is basically unfair, but also because the rich invest in assets and the poor in things. This is very clearly seen in the share of successful athletes, actors and other random people on the lists of the richest people.

    Even receiving millions in royalties or winning the lottery, they do not linger among the rich people. Therefore, the public may wish to treat this philosophically and engage in financial self-education.

    https://bgrhqzl4lidhe4hpcryedx3gs4-ac4c6men2g7xr2a-finobzor-ru.translate.goog/106673-dvadcat-chetyre-nezhadnyh-muzhika-putina.html?utm_source=topwar.ru
    PhSt
    PhSt

    Posts : 514
    Points : 518
    Join date : 2019-04-02

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  PhSt Thu Jun 03, 2021 3:11 pm

    The sooner they get rid of the USD the better attack



    Dollar to be dropped from National Wealth Fund structure within one month, says minister

    ST. PETERSBURG, June 3. /TASS/. Russia plans to fully abandon the US greenback in the structure of the National Wealth Fund (NWF) and reduce the share of the British pound within a month, Finance Minister Anton Siluanov revealed on the sidelines of the St. Petersburg International Economic Forum on Thursday, adding that the share of euro and yuan will rise, gold will be added, but the portfolio of Japanese yen will remain unchanged in the NWF.

    "We, just like the Central Bank, have decided to reduce the funds of the NWF invested in dollar assets. Today’s structure has around 35% of the NWF’s funds invested in dollars. We have decided to fully withdraw from dollar assets, replacing investments in dollars by an increase in the euro, in gold," he said, adding that the shift to a new structure of the NWF is expected within a month.

    "[Investments] in dollars will equal 0%; in euro they’ll come to 40%; in yuan they’ll amount to 30%; in gold - 20%; and in pounds and yuan - 5% each. We have substituted dollars with an increase of 5% in euro, gold and yuan," the finance chief explained.

    "The Central Bank is the operator (regarding gold purchases - TASS). It operates its gold and currency reserves and defines the structure of its assets for the National Wealth Fund and the share of the National Wealth Fund in those assets itself," he said.

    Currently, the share of the greenback and the EU’s currency in the NWF stands at 35%, with the yuan’s share at 15%, the sterling pound at 10%, and the yen at 5%.


    https://tass.com/economy/1297717?fbclid=IwAR0aquO4iQEyygDWLZXh9nPK8BjR6y4gQvqQ2kTgdWWlRuAfPm0yssuwXxc

    par far, Big_Gazza, kvs and miketheterrible like this post

    PhSt
    PhSt

    Posts : 514
    Points : 518
    Join date : 2019-04-02

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  PhSt Thu Jun 03, 2021 5:52 pm




    De-dollarization takes place in many countries — Kremlin

    ST. PETERSBURG, June 3. /TASS/. The de-dollarization process takes place in many countries of the globe in view of doubts regarding reliability of the US currency, press secretary of the Russian President Dmitry Peskov told reporters on Thursday.

    "This should not be explained by the Kremlin, this should be explained by the government," the Kremlin’s spokesperson said, responding to a request to clarify the decision to completely abandon the US dollar in the NWF structure.

    "I can only say the de-dollarization process is continuous. It is already seen by bare eye and this de-dollarization process occurs not merely in our country but also in many countries of the globe, which became concerned in connection with reliability of the main reserve currency," Peskov said.

    Earlier on Thursday, Russian Finance Minister Anton Siluanov said that Russia will completely abandon the US dollar and will reduce the pound sterling share in the National Wealth Fund’s structure.

    https://tass.com/economy/1297843?fbclid=IwAR1Iu95a9X1YSJgy-VUInT_LaTGdLsoz63Af140kL2jgzSEpjvIvGesd1JE

    par far and Big_Gazza like this post

    avatar
    par far

    Posts : 2491
    Points : 2720
    Join date : 2014-06-26

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  par far Thu Jun 03, 2021 7:56 pm

    "Russia-Qatar trade turnover up 22% in 2020"



    https://tass.com/economy/1297603

    dino00, Big_Gazza and kvs like this post

    avatar
    slasher

    Posts : 158
    Points : 158
    Join date : 2015-09-28

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  slasher Fri Jun 04, 2021 1:10 am

    Russia’s Central Bank Governor: CBDC Is Future for Country’s Financial System

    The U.S. is raising concerns over CBDCs from certain countries
    According to former U.S. Treasury official, Michael Greenwald, “What alarms me is if Russia, China, and Iran each creates central bank digital currencies to operate outside of the dollar and other countries followed them.” He added that such a development, “would be alarming.”

    As far as China goes, it seems the United States is more concerned with being left behind as the rapid development of the digital yuan continues... The United States is concerned that the success of these trials, and the digital yuan in general, would strengthen China’s domestic economy. Furthermore, they are worried that it could increase international competition that might threaten the dominance the U.S. dollar has long enjoyed.

    dino00, Big_Gazza and kvs like this post

    kvs
    kvs

    Posts : 9874
    Points : 10017
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  kvs Fri Jun 04, 2021 3:20 am

    The Whitehouse is starting to smell the coffee. People talk about how much US cash is in circulation outside US borders, but that is
    a meaningless fact. It is the volume of dollar trade transactions, which are not cash, that is really the post on which the US empire
    sits. Morons around the world think that using dollars for trade is somehow better than domestic currencies (not cash). Maybe
    if some country is in the midst of a financial crisis and its exchange rate is being hammered, but not in general. China and Russia are
    finally stopping this nonsense and trading in their own currencies. If this catches on around the world, the US is utterly fcuked. It
    will no longer be able to engage multi-trillion dollar money supply stimulus without domestic hyperinflation.

    PDF link:

    https://www.swift.com/swift-resource/19186/download?language=en


    The US dollar prevails as the dominant international
    trade currency, with a 51.9% share of the value
    of international currency usage in 2014. The euro
    is second, with a 30.5% share of the total value.
    The British pound is third, with a 5.4% share of
    the total value, followed by Asian currencies such
    as the Japanese yen and the Chinese yuan.

    The US cash in circulation abroad is a tiny fraction of the volume of dollar trade.

    lancelot
    lancelot

    Posts : 381
    Points : 383
    Join date : 2020-10-18

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  lancelot Fri Jun 04, 2021 3:47 am

    China has had deals to do currency swaps with a lot of countries for several years already.
    I think eventually the dollar will stop being used as the medium of exchange in most international transactions.
    Even the World Bank seems to think that will happen which is why they created that fake pseudo-currency the SDR.

    Big_Gazza and kvs like this post

    avatar
    par far

    Posts : 2491
    Points : 2720
    Join date : 2014-06-26

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  par far Sat Jun 05, 2021 4:35 pm

    Russia is investing a lot into the Russian economy.

    These are notes from President Putin's speech at the St Petersburg International Economic Forum about the domestic Russian market:


    "Thanks to the prompt and timely measures taken, the Russian economy and labour market are already approaching their pre-crisis levels. We have managed to save millions of jobs and avoid a sharp drop in people’s incomes. True, we have encountered problems. Unemployment increased and real incomes declined; we all know this. But none of that was anywhere near the disaster that could have happened, given the circumstances. That, at least, we have managed to avoid.

    We have prevented a sharp drop in incomes, as I said. Our decisions to support businesses, workers, and regions have worked. The targeted assistance provided to Russian families and people who lost their jobs also came highly useful.

    Indeed, difficulties with employment remain. We will probably talk about this later. We also know that the pandemic is not the only reason for the challenges we are facing such as a relatively high unemployment rate among young people or strained regional labour markets. We know we cannot blame everything on the pandemic, and we understand that some of these problems have a systemic nature stemming from unresolved structural problems in our economy.

    The Government should enhance its programmes to promote employment in those constituent regions where unemployment is still high. At the same time, I emphasise, we need to continue taking targeted action, and propose solutions that take into account the economic specifics in each region. Furthermore, I am instructing the government to launch a permanent nationwide programme to support employment of young people, including measures to promote youth entrepreneurship.

    It is obvious that the main, systemic response to the employment problem, and the key condition for raising people’s incomes is economic growth. This is obvious, and everyone understands it. New, high-quality jobs are needed in all sectors and regions of Russia.

    World history shows that the relaunch of the economy following serious shocks has always been connected to boosting investment in infrastructure, territorial development, new technologies and personnel training.

    I would like to thank the Russian regions that did not take a break or find excuses amid the most difficult pandemic environment that required great concentration of resources and attention, but continued to work on improving their business climate, maintaining dialogue with businesses and attracting investors. These regions have been rightfully distinguished by the National Investment Climate Ranking. Thus, Bashkortostan, Nizhny Novgorod Region and the Khanty-Mansi Autonomous Area are listed among the ten best regions to invest in; Samara, Sakhalin and Chelyabinsk regions have shown good dynamics.

    We will provide systemic assistance to the regions in improving the business environment. I would like to ask the Presidential Plenipotentiary Envoys to boost efforts in this area and the Government to focus on supporting the regions that have difficulties with raising investment. It is necessary to help them introduce the best management practices and improve the level and quality of work with investors.

    This task is quite concrete: a transparent, predictable and comfortable environment must be provided for businesses, private investments and new projects in all Russian regions by 2024.

    In particular, each region will need to outline priority development areas; this information will be open to businesses, as well as the region’s urban development and infrastructure plans for building utility lines, roads and communication systems, so that it would be easier for businesses to pick the best place for their new production site or other facility.

    It is necessary to eliminate excessive links in the chain, various superfluous formalities and approvals, first of all, for the most sensitive areas such as connection to the grid, construction permits, and others.

    We are consistently removing dated requirements at the federal level. Thus, starting September 1, almost 4,000 more building codes and regulations will no longer be mandatory. That will leave only 3,000 mandatory requirements in construction of the more than 10,000 we had previously. But there is still room for simplification.

    I would like to note that this huge and painstaking work to streamline regulation took two years. Again, we will keep at this, while at the same time maintaining high requirements for the quality and reliability of construction.

    I am asking the regional heads as well as the customers of major facilities at the federal and regional levels, and heads of our state-owned companies and private businesses to keep in mind that all construction permits will need to be prepared in line with the updated regulations and should take into account the rapid changes in construction technologies, and use advanced, highly sustainable building materials. All this will need to be considered.

    In general, each region must offer an understandable, comprehensive algorithm for the investor to go all the way from project concept to the opening of a new industrial facility or a property as efficiently and quickly as possible, without wasting time or sustaining unnecessary costs.

    I will once again stress the importance of cooperation between the Government and the regions. I would like to note that the performance of the federal ministers responsible for economic matters will also be evaluated by how quickly the situation improves in those regions where, as I said, there are still problems with the business and investment climate. Please do not pretend that this does not concern the federal government. This applies to everyone. We need a common result, and we need to work with the regions that need support.

    Again, we should not have any so-called backward regions thrown on the sidelines of economic growth. Each constituent entity of the Russian Federation has investment and economic potential. We need to unlock and effectively use it in the interests of all Russians, for the good of all Russian families.

    A programme of infrastructure loans that will give the regions an opportunity to attract long-term loans at a low interest rate will become a new instrument for their development. We have already spoken about this, discussed these matters and made public statements to the effect. In all, the actual investment in infrastructure under this programme must be no less than $500 billion in the next two and a half years.

    I would like to ask regional governors to be very attentive to drafting projects for this type of funding. It is necessary to spend funds primarily on creating a comfortable environment for people and upgrading cities and other residential areas. This is a major factor of economic growth and investment appeal in the modern world, in the economy that surrounds people.

    Based on the best international standards and the experience of rating the investment climate, the Agency for Strategic Initiatives drafted, in cooperation with experts and commissions of the State Council, a national rating of living standards in the regions of Russia. It is an important indicator and I would like to tell you about our first results in this respect.

    Moscow, Tyumen Region, Tatarstan, the Khanty-Mansi Autonomous Area and St Petersburg are in the lead for obvious reasons. They are our traditional business centres. They have long invested serious funds in infrastructure for people. Importantly, more and more Russian regions are guided by high standards and are demonstrating good dynamics in many areas. Thus, the Republic of Mordovia has one of the best education systems; Udmurtia has very comfortable conditions for launching and running businesses, while Novgorod Region leads in social protection.

    I would also like to mention such an interesting integral rating indicator as the commitment of people to their region, a desire to live and work there and link the future of their children with it. Sevastopol and Kaliningrad Region are at the top in this respect.

    I would like to emphasise that the rating of the quality of life in the regions makes it possible to assess the situation objectively, to see which regions have the most experience and the best practices. Moreover, this rating is primarily based on the opinion of residents themselves. This feedback allows regional managerial teams to plan work better and to focus efforts on the most sensitive problems, such as, of course, more affordable housing.

    I am aware that here, at the forum panels, and in the country in general, the issue is being discussed about what will happen next with reduced-APR mortgage lending, which, as you may recall, is now available at an APR of 6.5 percent. Indeed, this programme has become one of the key anti-crisis measures to support individuals and the economy. To date, over half a million households have applied for and received this loan. An additional 2 trillion rubles, approximately, have been attracted to housing construction.

    As you may know, the programme will expire very soon, on July 1. To reiterate, this was an anti-crisis programme, meaning that it was temporary.

    At the same time, abruptly terminating it is, of course, not an option. We must keep in mind the important role that easy-term mortgage lending is playing in the current circumstances for resolving our people’s housing problems and developing the construction industry, which, as we are aware, is the driving force behind related industries. Therefore, I propose extending this programme in all regions for another year, that is, until July 1, 2022. We will raise the rate slightly in doing so. Some changes will be made, including setting the easy-term mortgage rate at 7 percent APR. The maximum loan amount will be set at 3 million rubles and it will be applied throughout the country.

    At the same time, I would like to let you know about a new decision designed to make mortgage loans more affordable for families with children. Here is what it is about. As you may be aware, a systemic special mortgage programme for families that had a second and subsequent child after January 1, 2018, is already in place. I propose expanding this to all families with children born after January 1, 2018, even if there is only one child in the family so far. That is, to reiterate, with the birth of their first child, a family will be able to take out a mortgage loan at a rate of 6 percent and buy housing on the primary market or refinance an existing mortgage loan. The maximum amount of such a loan for Moscow and St Petersburg, as well as the Moscow and Leningrad regions, where real estate prices are objectively higher, will be 12 million rubles, with 6 million rubles available in the other constituent entities of the Federation.

    Colleagues,

    We hope that a better quality of life and improved infrastructure in Russian regions will make them more attractive for promising projects, for more private investment, and will open up additional opportunities for large companies as well as small and medium-sized businesses, serving as an important support for the economy, and in many ways contributing to a modern, competitive business environment. Competition is the main driver of growth and, importantly, a market mechanism that keeps prices down.

    Last year, we made a fundamental, systemic decision to support small and medium-sized businesses. We halved insurance premiums for small businesses from 30 to 15 percent. We will certainly not go back on this. Moreover, we are ready to take further steps to support entrepreneurship. I will mention some of them now.

    Firstly, I propose launching a new mechanism to support SME lending as soon as this year – something we call umbrella guarantees.

    Here is how it works. Our development institution, the SME Corporation, will issue guarantees for loans from partner banks. In fact, it will take on some of the risks and make loans more affordable for SMEs. According to estimates, this will allow entrepreneurs to attract additional resources for development, at least 600 billion rubles by 2024.

    Secondly, I know that businesses, especially small ones, sometimes complain about the high bank charges on their trade and other operations.

    We have already extended the faster payment system, which enables transactions with lower charges, for non-cash payments between individuals and entrepreneurs. However, so far, this system has not been as widely used by businesses as it could be.

    As a reminder, by September 1, all the so-called systemically important, backbone banks in Russia must connect to the fast payments system. I also think it would be right if the largest of them do this in the very near future, by July 1.

    In addition, I have one more proposal that I think will be a pleasant surprise for those who are involved in this type of business, small and medium companies. I am suggesting that they be fully reimbursed until the end of the year for the commission they pay for using the Fast Payments System (FPS) when they sell their services or goods to individuals, to people. I repeat: the cost of FPS will be zero for these companies.

    I discussed this issue with my colleagues and the Governor of the Central Bank. It will be necessary to support financial institutions through the budget and avoid discouraging them.

    My third point: companies that are now using the simplified taxation plan must transfer to the general tax schedule if they go beyond the employee limit or the revenue limit. Of course, in this case a business will have to shoulder an additional fiscal burden, and this can impede growth and compel entrepreneurs to use tricks, like the artificial division of a big company into small ones.

    The restaurant business is a case in point in this respect. I suggest these companies participate in the pilot programme at the start of next year to work out the process for a more comfortable transition from the one tax schedule to the other.

    With respect to some details, the companies in this programme will pay no VAT if their revenue is below 2 billion rubles a year. Importantly, they will retain the right to pay a reduced insurance premium rate of 15 percent even if their personnel count grows to 1,500 people. Currently the threshold is 250 people.

    Colleagues, let us see what effect this has on keeping businesses legal and encouraging companies to grow. As for making businesses legal, I think all interested people understand what I am talking about: all cheques must go through the cash register; employment must be official and purchases must be legal as well, that is, recorded in the cash register. (Applause).

    Thank you. I suppose we speak the same language. For my part, I will do all I can to see that the state meets its commitments.

    I will add that we have already agreed to relieve of filing a tax declaration those entrepreneurs that are working under the simplified tax scheme and using cash registers. I would like to draw the attention of my colleagues in the Government and Parliament to the relevant draft law that was adopted in the first reading last year: it has stalled since then. Please finalise this as soon as possible.

    Fourthly, small and medium-sized businesses must be relieved of antimonopoly oversight that is clearly excessive. Many existing threshold numbers have not been revised for a long time now and do not match today’s economic realities, since the economy and the companies keep growing.

    For example, antitrust oversight covers all companies with annual revenue of over 400 million rubles. I propose doubling this amount to 800 million rubles, thus sparing a large number of growing companies burdensome and unnecessary reporting and paperwork. I propose setting a similarly higher threshold for oversight of mergers and acquisitions. That is, if a deal does not exceed 800 million rubles, it will not require the approval of antimonopoly authorities.

    And, finally, my fifth point: measures to drive demand for the output of entrepreneurs across all sectors of the economy are especially relevant now. In this regard, I propose increasing the share of goods and services that our large companies, as well as state and municipal customers, must purchase from small and medium-sized enterprises, including non-profit organisations. It should be at least 25 percent.

    We have held numerous discussions on this matter. I want to draw your attention right away to the fact that we are talking about companies that operate under Federal Law 223 and the companies that work with state and municipal authorities under Law 44. I am aware there are many subtleties here. And I know well that Russian industry does not even make certain products. However, the bar must be set where I said, and the Government will finalise the finer points.

    In addition, it is imperative to cut the time it takes to pay for delivered goods and services from 30 to 15 business days, which is also important. Small businesses and socially oriented NGOs must see this time go from 15 to seven days.

    Of course, real companies, not all sorts of sham or affiliated operations, should benefit from these preferences. I want the oversight authorities to keep this in mind. At the same time, I am instructing the Government to make sure that procurement for state needs involves mainly Russian manufacturers, of course, in compliance with internal competition rules, in this case.

    Ladies and gentlemen,

    As I have said earlier, international cooperation must be instrumental in overcoming the socioeconomic consequences of the pandemic. It is all the more important for us to pool our efforts in the face of common, systemic, long-term challenges that do not depend on the situation in the market or political disputes and setups, but determine the future of entire societies in a decisive way.

    What am I talking about now? What am I referring to? Primarily, the climate agenda. Scientists estimate that over 2 trillion tonnes of greenhouse gases have accumulated in the Earth’s atmosphere because of human economic activity. Every year, the volume goes up by 50 billion tonnes, gradually warming up the planet.

    I often hear that Russia is not that interested in resolving global environmental problems. I can say that this is nonsense, a myth, and sometimes outright distortion. Like other countries, we feel the risks and threats in this area, including desertification, soil erosion and melting permafrost. Many of those here work in the Arctic and know that we have entire cities built on permafrost in the Arctic. If it all starts to thaw, what consequences will Russia face? Of course, we are concerned.

    We are consistent supporters of the UN Framework Convention on Climate Change, the Kyoto Protocol, and the Paris Agreement. I must emphasise that there is no separate Russian, European, Asian, or American climate. All our countries bear a common responsibility for today’s world and for the lives of future generations. We must set aside political and other differences and avoid turning the transition to “hydrocarbon neutrality” into an instrument of dishonest competition where attempts are made to change investment and trade flows in someone’s specific interests under the pretext of the hydrocarbon footprint, and where limited access to advanced ‘green’ technology becomes a factor in deterring individual countries and manufacturers.

    How do we see Russia’s contribution to countering climate change? I am sure environmental and climate projects in our country will play a leading role in global efforts in climate conservation by virtue of Russia’s size, place and role in the world. We have set a goal: in the next 30 years the accumulated amount of pure greenhouse emissions must be lower in Russia than in Europe. This is an ambitious goal, but I am confident that it is feasible. I would like to ask the Government to draft a detailed plan of action on this before October 1 of this year. We will discuss this issue at a separate meeting.

    What are our areas of focus?

    The first one includes projects designed to reduce emissions throughout the economy. I have already mentioned that the Russian energy sector is increasing its share of low-carbon sources primarily through building nuclear and hydroelectric power plants and using renewable sources of energy. We have the world’s largest gas reserves, and while gas – we will probably discuss this later – is, of course, carbon, it is the purest kind of carbon, and we will be unable to do without it during the transition period.

    Incidentally, using its nuclear industry as the foundation, Russia is already creating infrastructure for the production of hydrogen to be used as a raw material, fuel and energy source in metallurgy, the production of cement, and transport, among other areas.

    We will also keep reducing emissions from hydrocarbon production and utilising associated gas. By the way, we probably utilise more gas this way than any other oil-producing country. We will thoroughly modernise the thermal power industry and electrify gas transport infrastructure. We also plan to further improve energy efficiency in the residential sector and heat supply systems, to switch public transport to natural gas, electric and hybrid engines, and to reduce material consumption in construction. In a word, we are talking about end-to-end technological retrofitting of our entire economy and infrastructure.

    Clearly, such projects need market incentives in order to be launched successfully. To this end, we are starting to issue state-subsidised ‘green bonds.’ Also, we have developed performance criteria for environmental projects or a ‘green taxonomy’ in the parlance of experts.

    Of course, reducing emissions is not enough to overcome the challenge of global warming. Greenhouse gas sequestration is essential if we want to achieve carbon neutrality. It is important to reduce existing levels of greenhouse gases in the atmosphere, and our main goal is to learn to capture, store, and make productive use of carbon dioxide coming from all sources.

    Now, regarding a second area in this context: an entire industry, a fundamentally new market for so-called ‘carbon units’ is being created almost before our eyes. Many people, especially those in power production, are aware of this, but I will explain. This is the amount of harmful airborne emissions that can be absorbed by a section of land or forest. So, if you have done some additional work on your land to increase its ability to absorb the emissions in the air, you have created a number of carbon units. Many countries and associations are already planning to accept these units from exporters to offset the emissions from the production of imported goods.

    Russia has enormous potential for emission absorption with its forests, tundra, agricultural lands and marshlands. Our country has a fifth of the world’s forests; they occupy almost 10 million square kilometres. Specialists and scientists believe that they are already absorbing billions of tonnes of carbon dioxide equivalents every year.

    I repeat, the importance of Russia’s potential in natural compensation is enormous, simply huge in terms of the planet’s climate sustainability. Clearly, by virtue of its natural advantages, Russia can maintain a special place in the global market for carbon units. To achieve this, we need to use the forests and lands more effectively and enhance their absorption capacity. We must increase reforestation areas, fight wildfires, and expand pristine nature reserves, sanctuaries and national parks. In effect, we are now doing all this and intend to continue to do this in the future while introducing new soil-recovery agro-technology.

    Importantly, we can work towards three objectives at the same time. Firstly, by investing in technology, the protection of forestry and land improvement, we will enhance the environmental wellbeing of our people, and the cities and territories they live in. Secondly, we will create jobs in the new high-tech industry of greenhouse emissions mitigation, and third,ly we will provide our exporters with an additional dimension for competitiveness in foreign markets.

    This concerns many of you here in this hall. I would like you to see this as a direct message to Russian companies that are buying or starting to buy carbon units abroad or are planning to do this in the future. Instead, it is better to invest funds in climate projects in our country. Eventually, those who engage in this will receive many benefits, economic benefits. This effort will be more effective and oriented towards the future.

    I would like to note that, based on our estimates, revenue from this new climate industry in the Russian market could soon surpass $50 billion a year, which is another important figure. In a word, this is a good, beneficial destination for investment by both domestic and foreign companies. We invite our interested partners to take part in this work. We will create the necessary conditions for this.

    I would like to discuss several issues that are of critical importance for climate projects in Russia. It is necessary to work through in detail the criteria underlying these projects, to determine the sites and areas that are best suited for launching them, and the kind of technologies to use.

    It is also imperative to create a transparent and objective system for assessing the outcome of climate projects. This is a critical part of what I am saying now – that is, to identify the current absorbing capacity of the sites and what it will be after the project is implemented. Actually, it is about calculating the delta in the form of the “carbon units” that I just mentioned.

    All the while, it is important to monitor the emission and absorption of greenhouse gases based, among other things, on observations from outer space, digital technologies, and AI methods.

    The construction of such a national system that makes use of the potential of Russian science is already underway in Russia. We are creating a network of “carbon testing grounds” to monitor carbon dioxide emission and absorption in real time, as well as the state of environmental systems, the quality of water resources and other variables.

    We are also creating a pilot carbon market in Sakhalin Region. This experiment will come as a step towards achieving carbon neutrality and creating a nationwide carbon unit market.

    I am aware that a system of this kind is about to be launched in other countries as well. Here is another important matter, which concerns mutual recognition of greenhouse gas emission and sequestration. This requires a transparent climate statistics system, mutual understanding between states and, of course, joint scientific research. We are open to this cooperation.

    I am instructing the Government, by July 2022, to fully form the regulatory framework for implementing climate projects in Russia at the level of federal laws and departmental bylaws and guidelines, so that businesses, domestic and international alike, can draw up and implement their plans in this area relying on clear and easy-to-follow rules and criteria.

    Colleagues, let me close by saying again that, despite the challenges presented by the global pandemic, life is gradually returning to normal. To reiterate, our meeting in St Petersburg is a case in point. Next week, St Petersburg will be hosting matches of the 2021 UEFA European championship which is getting underway.

    On this note, I would like to convey my greetings to our great friend, the Emir of Qatar. It was his birthday yesterday. Our best wishes to you, Your Highness. I am confident that Qatar will host the FIFA World Cup 2022 with great success.

    Such major events and forums truly unite and bring people from different countries closer. Businesspeople, of which there are many here, are well aware that in-person contacts based on mutual trust move forward, in many respects, business projects and initiatives, and, therefore, the global economy.

    Russia will do its best to create every opportunity for these contacts to take place, for sharing experience and demonstrating the latest achievements in science and technology.

    Thank you for your patience and your time, and I wish the forum every success.

    Thank you very much."






    http://thesaker.is/vladimir-putin-at-the-plenary-session-of-the-24th-st-petersburg-international-economic-forum/



    dino00 and kvs like this post

    kvs
    kvs

    Posts : 9874
    Points : 10017
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  kvs Sat Jun 05, 2021 5:02 pm

    The Covid-19 impact on Russia's economy is much more limited than in the west because:

    1) The distribution of companies is shifted to medium and large sizes which remained open. The number of
    small business such as restaurants and similar that were either closed or excessively restricted in the west
    is much smaller.

    2) The lockdowns were not as excessive as in Canada and the USA and I assume western Europe.

    The Covid-19 shock on Russia's economy is substantially from abroad. Russia is integrated into the global
    economy, and as in 2008 any global shock affects it as well. But Russia has the critical mass to not
    be controlled from abroad and Putin describes the measures and success to keep developing the domestic
    economy even under conditions of a substantial exogenous shock.

    par far likes this post

    miketheterrible
    miketheterrible

    Posts : 5865
    Points : 5839
    Join date : 2016-11-06

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  miketheterrible Sat Jun 05, 2021 11:37 pm

    https://sdelanounas.ru/blogs/141759/

    More than 800 agreements totaling 3.9 trillion rubles were signed at SPIEF

    Last SPIEF in 2019 was 3.1T rubles. This is 0.8T rubles more.

    franco, dino00, kvs and PapaDragon like this post

    kvs
    kvs

    Posts : 9874
    Points : 10017
    Join date : 2014-09-11
    Location : Canuckistan

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  kvs Sat Jun 05, 2021 11:41 pm

    miketheterrible wrote:https://sdelanounas.ru/blogs/141759/

    More than 800 agreements totaling 3.9 trillion rubles were signed at SPIEF

    Last SPIEF in 2019 was 3.1T rubles. This is 0.8T rubles more.

    Out of the 800 agreements, 165 involved foreign participation. So this venue is good for Russia's
    domestic economic development and is not just a foreign money racket.

    dino00 and miketheterrible like this post

    avatar
    Vann7

    Posts : 4884
    Points : 4986
    Join date : 2012-05-16

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  Vann7 Sun Jun 06, 2021 6:25 am

    kvs wrote:
    miketheterrible wrote:https://sdelanounas.ru/blogs/141759/

    More than 800 agreements totaling 3.9 trillion rubles were signed at SPIEF

    Last SPIEF in 2019 was 3.1T rubles. This is 0.8T rubles more.

    Out of the 800 agreements, 165 involved foreign participation.   So this venue is good for Russia's
    domestic economic development and is not just a foreign money racket.



    wow so amazing ,  165 involved agreements,.. how much were gas station related business? Laughing

    yeah sure "good" . anyone can see what they want to see . but the fact will not change that russia
    is an outdated economy and this is why is so low the participation of foreign nations in russia business other than wheat and wood and some commodities that russia sells.  

    take a look , how outdates is russia economy.


    for example..
    RT published today an article of how Amazon "failed" to capture (the bananas third world nation
    economy style) Russia . and how Amazon "failed" to compete with russian etailers online ,in their own nation .  Rolling Eyes


    according to Russian gov propaganda..

    Amazon online retailer business should feel sad for losing the market inside russia to russian
    competition Wildberries ..

    https://us.wildberries.ru

    Missed delivery: Why does Amazon, the company that sells nearly everything, nearly everywhere, do next to no business in Russia?

    Russian Economy General News: #12 - Page 10 60b9db892030276bf81f2dfd

    listen the title , nearly "Everything" "Everywhere" and is telling a story ,how amazon need
    to envy russia ecomerce.  lol1

    The problem with that claim ,is on the details , that Amazon "lost" while earning $380 billions in revenues in 2019 , while the "successful Russia" wildberries , won 3$ billions in that year. This is
    not even a contest.  is near 400 vs 3  difference.

    and then you check what does wildberries is selling online ?  that is "defeating amazon in russian land , lol1 \  the company sells , americans ,chinese and european products almost 99% of it.  lol1


    So this is Putin's plans for "Dedolarize" the Russian economy and "Response" to the west for sanctions that truly cripple and slowdown the russian economy.  this is how putin plan to "Hurt"
    the american economy , by replacing dollars with euros ,since americans don't accept rubles for their products  lol1 and later have russian online retailers to promote american and european products in their country.  lol1  lol1  lol1  lol1

    So putin is "Dedolarizing" on his imagination only, what he is really doing ,is promoting the american empire even more ,boosting american economy sales ,by buying american products , and selling them later in russia.  Laughing  is this is not stupidity at its finest , an example of putin retarded so called "development" of the nation by promoting the dependence on american products. because this is what top business in russia for civilian population is doing (according to that report)

    mcdonals ,kentucky friend chicken and burger king expanding.. and wildberries showing records in sales..  by selling american products.. so who is putin fooling then ? dedolarization in words only.
    in real practice ,there is no better asset for the west that an stupid president ,completely clueless
    of how to run his economy. allowing the west to dominate and without any real competition.

    that russia online retailers ,depends almost exclusively of foreign products ,specially americans ones ,when it comes to the most advanced things society buys , that is all technology to make their lives easier and more productive , is embarrassing to say the least how dependent is russia (thanks to putin) from the west.

    Outdated economy , because have outdated politicians , with outdated ideas , that do not modernize the nation economy properly and keep it heavily dependent in the most lazy kind business possible,
    that is faming food and gas stations.  No
    .......................................................................................................................................................................................................................................................................

    this is how much russia suck , how outdated is the country ,their #1 online retailer wildberries ,the most strongest company in russia ,in ecomerce , almost no russian brands , is mostly american ,european or asian.  Laughing

    wondering why putin don't sale their nice kalisnikov weapons online , maybe russia will not look that outdated at least. lol1

    this is so pathetic. that such a country with so much potential is being dragged down ,by poor leadership and poor development of their country .and to make things worse , waste a fortune of russian budget in distractions , catedrals in gold , sport events and other very temporary things.  russia is the only country i have seen in the world ,that the inauguration of even a mcdonalds or kentucky friend chicken restaurant become a major event in any city ,with full people attendance and very long lines. Laughing This is the legacy of vladimir putin nation "development" , a third world economic model system with a first rate military , this what russia is a major contradiction , based of very dumb leaders in charge.




    franco
    franco

    Posts : 4219
    Points : 4251
    Join date : 2010-08-18

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  franco Tue Jun 08, 2021 12:49 pm

    Dead cat bounce. What happens to GDP according to the Ministry of Economic Development of the Russian Federation

    The forecast of the Minister of Economic Development of the country Maxim Reshetnikov about an abnormally high GDP is based on statistical data, said Nikita Maslennikov , a leading expert of the Center for Political Technologies, Doctor of Economics, Professor , to the Economics Segodnya FBA .

    An abnormally high growth in May this year may show the GDP of the Russian Federation. This assumption was expressed in an interview with Izvestia by the country's Minister of Economic Development Maxim Reshetnikov.

    “It all depends on the dynamics of statistical data. April and May last year were disastrous because they were subject to quarantine restrictions. During this period, the economy came to a standstill and deep dips arose - the so-called low base effect.

    It started operating in April of this year, and according to its results, GDP in annual terms grew by 10.7%. Accordingly, in the results for May 2021, we should see 12% growth. But it all depends on how you look at these statistics. Such figures are not entirely correct, and must be compared with the pre-pandemic indicator of the fourth quarter of 2019, ”economist Nikita Maslennikov commented on the minister’s statement.

    The growth of the national economy in April of this year by more than ten percent was noted at the St. Petersburg International Economic Forum and Maxim Reshetnikov. Based on the statistics, the head of the Russian Ministry of Economic Development suggested that the May figures would turn out to be "abnormally high."

    “For four months of this year by four months of 2020, GDP growth was 1.8%, according to the department's estimates. But in April, to the fourth quarter of 2019, a lag of 0.9% was recorded.

    Therefore, what Maxim Reshetnikov says is a kind of statistical reflection of reality and the rebound of the economy, ”the expert emphasized.
    Systemic changes for the better

    The head of the Ministry of Economic Development of Russia also stated that the authorities need to consolidate the indicators of the past months by systemic changes, launching new investment projects for this. Such an approach, according to Maxim Reshetnikov, would make it possible to make a tangible rise in “consistent movement”.

    The national economy is recovering at a faster pace, therefore, as stated in the ministry, the forecast may increase from the current 2.9% this year, while maintaining positive trends.

    Economist Nikita Maslennikov, describing the prospects for the Russian economy, admits that with high final indicators for May and past trends, the situation will change.

    “By the end of June or July of this year, I think we will come close to restoring GDP to the level before the coronavirus pandemic and will go to zero in the fall of the gross domestic product.

    That is, we will close 3.5%. The perspective is quite realistic, there is nothing unexpected in it. Analysts of the Central Bank of Russia, as well as participants of the St. Petersburg International Economic Forum, said the same, ”the expert noted.
    Business is the head

    President of the Russian Federation Vladimir Putin earlier said at the St. Petersburg International Economic Forum that GDP growth by the end of the year could reach about four percent.

    Nikita Maslennikov, in turn, believes that the changes will begin earlier and in July the financial authorities of the country and analysts of the main regulator will change the forecast for growth rates upward.

    “June heralds some shifts. First, Mr. President spoke about his expectations. Secondly, predictive sentiment is warming. ACRA our (Analytical Credit Rating Agency. - Ed.) Predicts an interval of 3.4% -3.7% with a baseline scenario of 3.5%.

    It is noteworthy that the same 3.5% at the end of the year was given by the macroeconomic survey of the Central Bank of the Russian Federation, which it conducted from May 23 to June 1, 2021. The median assessment was given by 26 professional forecasters ", - said the interlocutor of FBA" Economics Today " .

    Against the background of indicators that correspond to reality, Nikita Maslennikov adds, a certain task arises.

    “In the language of market players, such a dynamics of quotations, which is demonstrated by the Russian GDP this year, is called a“ bounce of a dead cat ”.

    A similar thing at the end of last year was identified as the "2020 trap". A poll by the Central Bank of the Russian Federation confirmed these trends: 2020 - 3.5% of GDP, 2021 - 2.4%, 2022 - 2.2%. But today all forecasts indicate a return of growth rates to the level of potential output, ”the expert explained.

    The upward trend will be supported by the implementation of the structural agenda, where the first item, according to Nikita Maslennikov, is to increase the comfort and change the conditions for doing business, as well as the launch of a new investment cycle.

    https://k6biiaufdvn7vi7cemcjtyypku-ac4c6men2g7xr2a-rueconomics-ru.translate.goog/523234-otskok-dokhloi-koshki-chto-proiskhodit-s-vvp-po-versii-minekonomrazvitiya-rf?utm_source=finobzor.ru

    flamming_python likes this post


    Sponsored content

    Russian Economy General News: #12 - Page 10 Empty Re: Russian Economy General News: #12

    Post  Sponsored content


      Current date/time is Fri Jun 18, 2021 5:30 pm