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


+58
Gazputin
teh_beard
ucmvulcan
rigoletto
Urluber
Pacense
jhelb
Krepost
caveat emptor
TMA1
andalusia
kvs
Rasisuki Nebia
GunshipDemocracy
Karl Haushofer
Autodestruct
Firebird
limb
x_54_u43
Russian_Patriot_
ludovicense
Tingsay
ALAMO
JohninMK
Daniel_Admassu
higurashihougi
Tsavo Lion
SeigSoloyvov
nero
thedrunkengeneral
PapaDragon
lyle6
Azi
lancelot
Nomad5891
owais.usmani
Hole
troperker
mnztr
magnumcromagnon
slasher
Scorpius
franco
par far
LMFS
Big_Gazza
miketheterrible
AlfaT8
elconquistador
George1
Backman
GarryB
flamming_python
calripson
PhSt
Vann7
Arrow
Kiko
62 posters

    Russian Economy General News: #12

    Kiko
    Kiko


    Posts : 1190
    Points : 1210
    Join date : 2020-11-11
    Age : 73
    Location : Brasilia

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Kiko Tue Apr 05, 2022 12:43 pm

    US shames Europe with Russia's record earnings, by Olga Samofalova for VZGLYAD. 05.04.2022.

    The most severe sanctions of the West are against Russia, but this does not prevent it from earning hundreds of billions. Western economists are waiting for our country's record revenues from the sale of energy resources and an unprecedented current account surplus. The US can use this to shame Europe, which refuses to impose an embargo on oil, gas and coal. However, the rosy picture is not so unambiguous.

    Despite tough financial sanctions from the West, Russia will earn almost $321 billion this year from energy exports, economists at Bloomberg Economics calculated. This is about 35% more than in 2021. Of course, if the EU, as the largest buyer of Russian energy resources, does not dare to turn off the taps.

    Moreover, Russia can also expect a record current account surplus, which, according to the Institute of International Finance (IIF), could reach $240 billion. This will happen, including due to a drop in imports. Imports of goods, according to the forecast of the Institute for Transition Economies of the Bank of Finland, will decrease by about 50 percent, which will form a positive balance.

    The current sanctions have not been able to stop the influx of “hard currency” into Russia. Revenues from the sale of energy commodities soften the effects of severe restrictive measures imposed by the West, the IIF report notes.

    The West does not like the fortress of the Russian economy under sanctions. And this could be another reason for the US to put pressure on Europe to strike at Russian energy resources. On Monday, French President Emmanuel Macron called for a ban on oil and coal imports from Russia as new sanctions. However, he is not talking about a ban on Russian gas. Poland has repeatedly stated that it is necessary to abandon all energy resources from Russia - not only oil and coal, but also gas. Polish Prime Minister Mateusz Morawiecki directly blames Germany for creating the main difficulties for tightening sanctions against Russia. Hungary, he said, does not block the possibility of strengthening sanctions against Russia.

    Unlike Poland, which plays the US geopolitical party in the European Union, Germany is more pragmatic and sensible about the economic consequences of the energy embargo both for itself and for the whole of Europe.

    Since March 21, the EU has been preparing a new - fifth - package of sanctions against Russia. It is stated that they can be taken this week. However, the chances that they will still affect energy resources are still small, although any outcome cannot be ruled out. The EC is working on further restrictive measures against Russia, but they do not include the energy sector, Paolo Gentiloni, European Commissioner for Economic Affairs, said on April 2.

    “Our goal is to become independent of energy supplies from Russia as soon as possible. We must envisage serious sanctions. But gas is indispensable in the short term, we would hurt ourselves more,”

    German Finance Minister Christian Lindner answered on Monday when asked whether the EU should include in the fifth package of sanctions a ban on gas and oil supplies from Russia.

    Forecasts for the growth of Russia's export earnings from the sale of energy resources by 35% are primarily due to rising prices for raw materials. “Now the price increase is significant compared to last year. True, some price reduction has already begun. Most likely, opposite factors will continue to operate. On the one hand, political instability, disruption of supply logistics, possible restrictions on supplies to Europe and the USA from Russia will act in the direction of rising prices. On the other hand, a decrease in demand due to high prices, the impact of speculation, and possible steps to stabilize the market, for example, the United States is unfreezing stocks, can limit price growth,” says Alexander Daniltsev, director of the HSE Trade Policy Institute. Prices cannot rise indefinitely, at some point they become so high.

    According to the Ministry of Finance of the Russian Federation, the average price of Urals oil in March was $89 per barrel. Given that the average cost of the Brent benchmark was $113 per barrel, Russian oil is sold at a discount of $24.

    The cost of gas this year in Europe is also higher than last year, both on the stock exchange and in Gazprom contracts. Now spot prices on European hubs do not fall below $1,100 per thousand cubic meters. The average price for TTF for February was at the level of 935 dollars. Whereas in 2021, the cost of gas for the first time exceeded $1,000 only on September 28. Prior to this, prices were much lower.

    Russian gas under contracts with Gazprom is even cheaper for European consumers, even taking into account the link to the spot component in 80% of contracts. According to the Federal Customs Service, the average price of pipeline gas exported from Russia in 2021 was $274 per thousand cubic meters, liquefied gas - up to $273. This is higher than it was in 2020 ($140 and $228, respectively). But a new record is expected in 2022. According to expert estimates, the Europeans are now buying Gazprom's gas at $500-600 per thousand cubic meters. The price increase is explained by the price formula, according to which the cost of gas is formed based on the spot price with a time lag, usually six months. That is, the autumn increase in spot prices is already reflected in the contracts. An increase in the price of gas automatically leads to an increase in the price of coal, which can partially replace scarce gas.

    At the same time, there are no problems with the sale of Russian oil, despite Western news that some buyers are abandoning it due to fears of secondary sanctions (the US has imposed an embargo) or political position. First, the US embargo on Russian oil only comes into effect on April 22. Secondly, another one takes the place of the refused buyer. In particular, India began to actively buy up Russian oil at an attractive price. Refineries in India are the world's third largest importer and consumer of oil. They began to buy Russian oil through spot tenders after the start of the Russian military special operation, taking advantage of discounts. India has booked more than 14 million barrels of Russian oil since February 24. In 2021, oil from Russia accounted for just 2% of India's total oil imports. Its biggest supplier was the Middle East. Clearly, there is a redistribution of oil flows.

    But Gazprom's exports in the first half of the year decreased by almost a third - to 38.5 billion cubic meters. Last year, he sold 14.3 billion cubic meters more to non-CIS countries (Europe plus China). This is due to the fact that in January Europeans bought more LNG than pipeline gas from Russia. But already in March, Europe in a panic began to order more from Gazprom, including for pumping gas into its underground storage facilities. Exports increased to nine European countries, including Italy, Poland, Greece, Bulgaria, Croatia and Turkey. Gazprom's deliveries to China via the Power of Siberia gas pipeline are also growing, the company stressed.

    Difficulties with the sale of Russian oil, which is sold at a discount to Brent, as well as a third drop in sales of Gazprom, which sells gas at significantly lower prices than on spot exchanges, cast doubt on the conclusions of Western analysts about Russia's record earnings from hydrocarbons this year , says Fedor Sidorov, founder of the School of Practical Investing. In addition, from April 22, the US embargo on imports of oil and oil products from Russia (plus LNG and coal) will come into effect, and in Europe it is possible to reduce the purchase of raw materials from Russia in response to the requirement to pay for energy in rubles, the expert adds.

    In addition, Sidorov notes, the consensus forecast promises a decline in Russian GDP in 2022 by 8-15%, and the share of coal, oil, gas and oil products in GDP is more than 50%.

    “Therefore, there is no talk of the commodity sector of the Russian economy earning more in 2022 than a year earlier. Rather, the opposite will happen - a decrease in supplies abroad.

    Two-thirds of our energy exports go to the European market, in the event of a reduction in this share, only partial replacement is possible - at the expense of China, India and other Asia-Pacific countries, as well as Turkey,” Fedor Sidorov believes.

    As for the expectation of a record current account surplus in 2022, this will not be the result of a sharp increase in exports, but a sharp reduction in imports to Russia as a result of sanctions, he notes.

    In general, it is always better to have a balanced trade, and a large surplus is needed only if there are large external debts that need to be paid off, says Alexander Daniltsev. Russia's external debt is not large, and there were more than enough reserves to pay it, if the West had not frozen $300 billion in the accounts of foreign banks.

    The positive aspect of this story is the support of the Russian currency rate, which has already almost returned to the level of the beginning of Russia's special military operation in Ukraine, and remains strong. The sale of exports that have risen in price for rubles - and after gas supplies, the transition to ruble payments may follow for other goods: for oil, grain, etc. - adds strength to the national currency.

    However, there is also a flip side to the coin. “A large current account surplus could fuel inflation. It is necessary to balance the inflow of foreign currency with rubles when selling foreign currency on the domestic market, that is, more money supply is required,” says Daniltsev.

    In addition, the expert adds, there is a risk of some bias towards the flow of resources into the export commodity sector, especially if the entire economy is experiencing difficulties. “In this case, there are special methods for the so-called sterilization of export earnings. It's like blocking income. It can be carried out, for example, in the form of keeping part of the income in reserves, in particular, in the Welfare Fund, or by transferring funds into securities, etc.,” says Daniltsev.

    https://vz.ru/economy/2022/4/5/1152038.html

    GunshipDemocracy and JohninMK like this post

    Hole
    Hole


    Posts : 6437
    Points : 6425
    Join date : 2018-03-24
    Age : 46
    Location : Scholzistan

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Hole Tue Apr 05, 2022 1:15 pm

    "In addition, Sidorov notes, the consensus forecast promises a decline in Russian GDP in 2022 by 8-15%, and the share of coal, oil, gas and oil products in GDP is more than 50%."

    Total BS.

    How can the GDP of a country shrink while it has a trade surplus of 240 Billion? Earning 320+ Bill. more then the year before?

    sepheronx, GarryB, magnumcromagnon, kvs, LMFS and lancelot like this post

    lancelot
    lancelot


    Posts : 1111
    Points : 1111
    Join date : 2020-10-18

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  lancelot Tue Apr 05, 2022 1:21 pm

    "hard currency" my foot. If it cannot be used to buy anything of significance and is being confiscated willy nilly it is no "hard currency".

    Most energy produced in Russia, be it gas, oil, or coal, is consumed in Russia. So the idea there will be a massive GDP collapse because of lack of sales to the West that is ridiculous. Yes there will be a contraction. And yes Russia will have to sell oil for a discount initially. But given the oil price will be rising both will cancel each other out and in fact Russia will have a small profit.

    Energy is not 50% of Russian GDP. That is natural resources. It includes other minerals and timber, etc. That author proves to be an incompetent hack as usual. Also like I said a lot of it is used in Russia not exported. Over half the oil Russia produces is consumed in Russia. Over two thirds of the gas Russia produces is consumed in Russia. Etc.

    With regards to gas supplies, Russia will be able to transition to different clients faster than Europe can switch to alternate suppliers. Oil is quite fungible and even Iran and Venezuela have been able to sell their oil despite whatever sanctions the US placed on them.

    The exports are only necessary to offset imports. Since any reserves or placing the foreign currency into investments or accounts will result in it ending up being confiscated. For this only a fraction of energy sales is required. Maybe as little as 1/4th of current energy sales to Europe. It is they who will suffer if trade is cut.

    Russia will have issues with lack of imports from medicine, parts, and machine tools from Europe, Japan, and South Korea. They will have issues with the ban on semiconductor sales. But lack of "hard currency" won't be an issue. And China has alternatives to the machine tools and parts Russia imports right now from Europe. It will take time to adjust but it will happen. And Russia itself will end up increasing its own production of such items. Medicine can be imported from India and China. And as for semiconductors it still remains to be seen exactly what those sanctions will cover. And a market about as big as Japan will be able to fund a lot of developments in semiconductors.

    sepheronx, GarryB, JohninMK, Hole and Belisarius like this post

    avatar
    ALAMO


    Posts : 1810
    Points : 1812
    Join date : 2014-11-25

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  ALAMO Tue Apr 05, 2022 3:01 pm

    Hole wrote:"In addition, Sidorov notes, the consensus forecast promises a decline in Russian GDP in 2022 by 8-15%, and the share of coal, oil, gas and oil products in GDP is more than 50%."

    Total BS.

    How can the GDP of a country shrink while it has a trade surplus of 240 Billion? Earning 320+ Bill. more then the year before?

    Maybe they will pay some obligations, which makes outflow and GDP drinking in "modern economy" Laughing Laughing

    GunshipDemocracy and Belisarius like this post

    GunshipDemocracy
    GunshipDemocracy


    Posts : 5329
    Points : 5353
    Join date : 2015-05-17
    Location : fishin on Stalin´s Strait between Mexico and Canada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  GunshipDemocracy Tue Apr 05, 2022 4:20 pm

    Hole wrote:"In addition, Sidorov notes, the consensus forecast promises a decline in Russian GDP in 2022 by 8-15%, and the share of coal, oil, gas and oil products in GDP is more than 50%."

    Total BS.

    How can the GDP of a country shrink while it has a trade surplus of 240 Billion? Earning 320+ Bill. more then the year before?


    Fedor Sidorov, founder of the School of Practical Investing

    This answers your doubt. One petty speculator with "school" or "institute" is talking about "consensus". Something like majority prefers my toothpaste - this means exactly whom?



    Economy is surely hit, the question is till what degree realistically and how quick Russian govt can help to adjust economy to new realities. It looks like it works pretty fast so far. New trade routes, countries and IMHO no less important, ending mental slavery towards west.

    GarryB, kvs, Hole and Belisarius like this post

    sepheronx
    sepheronx


    Posts : 7329
    Points : 7595
    Join date : 2009-08-06
    Age : 32
    Location : Canada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  sepheronx Tue Apr 05, 2022 4:31 pm

    People tend to make up numbers and statistics on the spot in order to push their agenda, whichever it may be. Follow the paper trail and you will soon find out what kind of people are talking.

    Oil and Gas account for about 9% of Russia's budget. In this regard, Russia will be able to sell to whomever and they will pay in Rubles or local currencies as per agreement. Honestly, anybody that thinks that a nation whos 9/10ths of its economy is what their population consumes, and is a net exporter think that they need to sell to them (the collective west), is a fool.

    GunshipDemocracy likes this post

    Hole
    Hole


    Posts : 6437
    Points : 6425
    Join date : 2018-03-24
    Age : 46
    Location : Scholzistan

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Hole Tue Apr 05, 2022 5:25 pm

    Russian Economy General News: #12 - Page 33 Fpiaxi10
    Where to invest money...?

    sepheronx, dino00, Werewolf, magnumcromagnon, kvs, GunshipDemocracy, JohninMK and like this post

    kvs
    kvs


    Posts : 12881
    Points : 13028
    Join date : 2014-09-11
    Location : Kanada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  kvs Tue Apr 05, 2022 6:06 pm

    sepheronx wrote:People tend to make up numbers and statistics on the spot in order to push their agenda, whichever it may be.  Follow the paper trail and you will soon find out what kind of people are talking.

    Oil and Gas account for about 9% of Russia's budget.  In this regard, Russia will be able to sell to whomever and they will pay in Rubles or local currencies as per agreement.  Honestly, anybody that thinks that a nation whos 9/10ths of its economy is what their population consumes, and is a net exporter think that they need to sell to them (the collective west), is a fool.

    Any clown who invokes 50% of Russia's GDP being oil and gas is instantly without credibility. This is an inane talking point repeated ad
    nauseam in the NATzO fake stream media. All resource rents (oil, gas, minerals, timber) in Russia account for 13% of its GDP according
    to the World Bank. I have been posting on this topic over and over.

    Seriously, exactly 50%? GTFO and die, clowns.

    Also, the reduction in imports is not total starvation of those imports. Russia is replacing those imports with domestic production. So
    it is gaining $2 of GDP per $1 of imports replaced. So the resource rents cannot be growing as a fraction of the Russian GDP. Even if
    we clamp our noses and consider the potential increase due to reduced import related economic activity the total fraction would not
    go from 8% (oil and gas portion of the resource rents) to 50% but possibly to 24%. That is only if Russian industry shut down which
    is not happening.

    These clowns should worry more about the NATzO industry shutting down.

    sepheronx, dino00, magnumcromagnon, GunshipDemocracy, slasher, LMFS, Hole and like this post

    Hole
    Hole


    Posts : 6437
    Points : 6425
    Join date : 2018-03-24
    Age : 46
    Location : Scholzistan

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Hole Tue Apr 05, 2022 7:34 pm

    Most of the russian GDP is made of consumption/consumer goods and services. Western brands leave the market? Well, the russian people didn´t stop eating and drinking, they´re buying russian products now.

    GarryB, Werewolf, magnumcromagnon, kvs, GunshipDemocracy, LMFS and owais.usmani like this post

    JohninMK
    JohninMK


    Posts : 10825
    Points : 10946
    Join date : 2015-06-16
    Location : England

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  JohninMK Tue Apr 05, 2022 9:07 pm

    Hole wrote:
    Where to invest money...?

    But we can't.

    I liked that big article due to the details of gas sale prices.

    GunshipDemocracy likes this post

    GunshipDemocracy
    GunshipDemocracy


    Posts : 5329
    Points : 5353
    Join date : 2015-05-17
    Location : fishin on Stalin´s Strait between Mexico and Canada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  GunshipDemocracy Tue Apr 05, 2022 9:38 pm

    No way our Canadian sleeper-ceil activated :d welcome back mate!

    sepheronx wrote:People tend to make up numbers and statistics on the spot in order to push their agenda, whichever it may be.  Follow the paper trail and you will soon find out what kind of people are talking.

    Oil and Gas account for about 9% of Russia's budget.  In this regard, Russia will be able to sell to whomever and they will pay in Rubles or local currencies as per agreement.  Honestly, anybody that thinks that a nation whos 9/10ths of its economy is what their population consumes, and is a net exporter think that they need to sell to them (the collective west), is a fool.



    if they think wrong dont correct them .... this might cost a lot Russia's enemies. Twisted Evil Twisted Evil Twisted Evil



    Putin evaluated the statements of the West about the nationalization of Russian assets


    "We are seeing another attempt by our partners to shift their own mistakes in the economy and energy sphere onto Russia and to resolve the issues and problems arising in this regard again at our expense. Moreover, we are already hearing statements from officials about the possible nationalization of some of our assets. So we are going to go far. Let no one forget that this is a double-edged weapon," Putin said at a meeting on the development of the agro-industrial complex.

    https://ria.ru/20220405/aktivy-1781927061.html

    sepheronx, magnumcromagnon, kvs and LMFS like this post

    GunshipDemocracy
    GunshipDemocracy


    Posts : 5329
    Points : 5353
    Join date : 2015-05-17
    Location : fishin on Stalin´s Strait between Mexico and Canada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  GunshipDemocracy Tue Apr 05, 2022 9:40 pm

    Hole wrote:Most of the russian GDP is made of consumption/consumer goods and services. Western brands leave the market? Well, the russian people didn´t stop eating and drinking, they´re buying russian products now.

    and selling buying products ti China/India/Brazil/Turkey and so on so on...
    avatar
    Dr.Snufflebug


    Posts : 415
    Points : 415
    Join date : 2017-12-27

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Dr.Snufflebug Tue Apr 05, 2022 11:54 pm

    Because everything is already under sanctions, no deterrent remains that could dissuade Russian enterprises from opening up shop in Crimea. VTB Bank has announced they're going there now. PSB already did.

    We're probably going to see more investments in Crimea ahead, and the end of many of those local enterprises that were set up to circumvent sanctions earlier. For instance, I can imagine Crimean Railways being absorbed by RZhD in the future, and a proper overhaul of their ancient (UA-inherited Soviet era) rolling stock etc.

    Same goes for the Russian shipping companies recently banned from operating in the EU, they have no reason to avoid Crimea anymore.

    Plenty of other things, I'm sure.









    GarryB, kvs, LMFS and Hole like this post

    sepheronx
    sepheronx


    Posts : 7329
    Points : 7595
    Join date : 2009-08-06
    Age : 32
    Location : Canada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  sepheronx Wed Apr 06, 2022 12:08 am

    Dr.Snufflebug wrote:Because everything is already under sanctions, no deterrent remains that could dissuade Russian enterprises from opening up shop in Crimea. VTB Bank has announced they're going there now. PSB already did.

    We're probably going to see more investments in Crimea ahead, and the end of many of those local enterprises that were set up to circumvent sanctions earlier. For instance, I can imagine Crimean Railways being absorbed by RZhD in the future, and a proper overhaul of their ancient (UA-inherited Soviet era) rolling stock etc.

    Same goes for the Russian shipping companies recently banned from operating in the EU, they have no reason to avoid Crimea anymore.

    Plenty of other things, I'm sure.


    Crimea will probably not get the amount of investments you may think. It already gets a large amount and most of it was sitting still during the previous years as the agriculture situation didn't improve that much due to lack of water for the needs of the farmers. In reality, regardless the fact that Russia has now gained control over the Kherson region, it should still anticipate water flow issues and or intentional poisoning of the water in order to hurt the Russian's. In this regard, major water tanks (underground) and further deepening the reservoirs is necessary. Along with an alternative source of water as well - desalination plant. Expensive but necessary. The fact the authorities sat for too long waiting to build one is not very good. But I figure it mostly had to do that they knew what was gonna happen.

    The money is going to flow east. Urals and east will get a lot more funding as they are heavily under developed, and yet such major potential. A huge portion of Crimea's money will come in the form of banking and tourism from Russians and Asians going there (still a major tourist destination).

    Krasnoyarsk and Novosibirsk may get major boosts. Dont know if Shoigu's plan for newly created cities will pan out, as I think it may be better to improve the existing towns.

    Firebird, kvs, GunshipDemocracy, owais.usmani and lancelot like this post

    Kiko
    Kiko


    Posts : 1190
    Points : 1210
    Join date : 2020-11-11
    Age : 73
    Location : Brasilia

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Kiko Wed Apr 06, 2022 12:30 am

    GunshipDemocracy wrote:
    Hole wrote:"In addition, Sidorov notes, the consensus forecast promises a decline in Russian GDP in 2022 by 8-15%, and the share of coal, oil, gas and oil products in GDP is more than 50%."

    Total BS.

    How can the GDP of a country shrink while it has a trade surplus of 240 Billion? Earning 320+ Bill. more then the year before?


    Fedor Sidorov, founder of the School of Practical Investing

    This answers your doubt.  One petty speculator with "school" or "institute" is talking about "consensus". Something  like majority prefers my toothpaste  - this means exactly whom?



    Economy is surely hit, the question is till what degree realistically and how quick Russian govt can help to adjust economy to new realities.  It looks like it works pretty fast so far. New trade routes, countries and IMHO  no less important, ending  mental slavery towards west.
    They'll all follow the steps of Chubais, don't worry.

    sepheronx, flamming_python, kvs and GunshipDemocracy like this post

    GunshipDemocracy
    GunshipDemocracy


    Posts : 5329
    Points : 5353
    Join date : 2015-05-17
    Location : fishin on Stalin´s Strait between Mexico and Canada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  GunshipDemocracy Wed Apr 06, 2022 2:27 am

    Kiko wrote:
    They'll all follow the steps of Chubais, don't worry.

    welcome welcome welcome


    From the other hand pity, they shall all serve Magadan. i dont think any of oligarchs or Chubais would defend Putin to be in mickymouse tribunal in Hague.



    Putin urged to be prudent in deliveries abroad


    President Putin urged to take care of food supplies abroad

    MOSCOW, April 5 - RIA Novosti. This year, against the backdrop of a global food shortage, Russia will have to be careful about deliveries abroad, Russian President Vladimir Putin said.
    “This year, against the backdrop of a global food shortage, we will have to be prudent with supplies abroad, namely, carefully monitor the parameters of such exports to countries that are clearly hostile towards us,” Putin said .
    The President noted that the increased production volumes make it possible to ensure food prices in Russia are lower than on the world market.

    https://ria.ru/20220405/putin-1781919584.html

    GarryB, kvs, LMFS and Hole like this post

    Kiko
    Kiko


    Posts : 1190
    Points : 1210
    Join date : 2020-11-11
    Age : 73
    Location : Brasilia

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Kiko Sat Apr 09, 2022 1:32 pm

    In the long run, the Russian exchange policy (Forex multiple currencies rates & trade) should be relegated exclusively on a demand & supply basis to Mosbirzha, whereas the CBR focusing exclusively on monetary policy, and fiscal policy the exclusivity of the Ministry of Finance. The multiple Forex rates should mainly be with those currencies traded by Russia, including the different national currencies used in its commerce.
    Kiko
    Kiko


    Posts : 1190
    Points : 1210
    Join date : 2020-11-11
    Age : 73
    Location : Brasilia

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Kiko Sat Apr 09, 2022 8:33 pm

    Russians ditching dollars and euros for yuan – survey. 09.04.2022.

    Accounts in the Chinese currency at Russian banks are spiking amid Western sanctions.

    Russian banks saw a sharp increase in the number of Chinese yuan accounts last month, a survey by financial daily Kommersant has found.

    According to the publication, Russian citizens were actively converting their forex savings to the Chinese currency, while the number of new accounts denominated in yuan also grew significantly.

    At Tinkoff Bank, for instance, the volume of funds held in yuan has surged eight times. MTS Bank reported a four-fold increase, as did the Ural Bank for Reconstruction and Development, while Bank Saint Petersburg saw a 3.5-fold rise.

    Tinkoff Bank also reported that many wholesale companies were switching to settlement in yuan, whereas previously they considered US dollar settlements to be easier and faster. According to the bank’s data, the share of business settlements in yuan has grown from 15-25% last year to 25-30% now. The transactions involve firms trading in goods such as spare parts, peripheral equipment, textiles and food products, MTS Bank stated, noting that Russian oil firms, coal miners and metal producers were also starting to move to yuan settlement.

    Transactions with the Chinese currency on the Moscow Exchange have also grown significantly, although they still lag dollar and euro volumes. Whereas in January-February the volume of yuan transactions on the exchange rarely exceeded 3 billion rubles per day (some $37 million), this past week an all-time record of 18.5 billion rubles (some $230 million) changed hands.

    Analysts see this as a means for both individuals and companies to evade Ukraine-related Western sanctions that effectively limit Russia’s access to the dollar and euro. China, however, has not joined the sanctions and has kept access to its national currency open, which makes it a potential alternative for Russia’s international transactions.

    "Under the conditions of restrictions, many companies see settlements in yuan as more stable and predictable", MTS Bank told the newspaper. Analysts say that as sanctions force Russian importers and producers to reorient to Asia, and as the dollar and euro are increasingly seen as unreliable for Russian companies, the number of settlements in yuan is likely to grow further.

    https://www.rt.com/business/553589-russians-ditching-dollars-and-euros-yuan/

    GarryB, dino00, magnumcromagnon, kvs, GunshipDemocracy and Hole like this post

    avatar
    owais.usmani


    Posts : 1211
    Points : 1209
    Join date : 2019-03-27
    Age : 36

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  owais.usmani Sat Apr 09, 2022 9:53 pm

    GarryB, Werewolf, magnumcromagnon, kvs and GunshipDemocracy like this post

    Werewolf
    Werewolf


    Posts : 5440
    Points : 5637
    Join date : 2012-10-24

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Werewolf Sat Apr 09, 2022 10:57 pm

    owais.usmani wrote:

    Acceptance

    GarryB, flamming_python, magnumcromagnon, kvs, zepia, GunshipDemocracy, Hole and Kiko like this post

    Kiko
    Kiko


    Posts : 1190
    Points : 1210
    Join date : 2020-11-11
    Age : 73
    Location : Brasilia

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Kiko Sat Apr 09, 2022 11:25 pm

    Werewolf wrote:
    owais.usmani wrote:

    Acceptance

    Swallow it in!

    GarryB, Werewolf, kvs, zepia, GunshipDemocracy and Rasisuki Nebia like this post

    avatar
    owais.usmani


    Posts : 1211
    Points : 1209
    Join date : 2019-03-27
    Age : 36

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  owais.usmani Sun Apr 10, 2022 2:38 pm

    GarryB, magnumcromagnon, kvs and GunshipDemocracy like this post

    kvs
    kvs


    Posts : 12881
    Points : 13028
    Join date : 2014-09-11
    Location : Kanada

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  kvs Sun Apr 10, 2022 3:53 pm

    He just brings up PPP. Anyone with a clue and a functioning brain would be using this adjustment as a start when comparing
    economies. Nominal GDP at forex rates comparisons are truly for retards.

    But the PPP is a defective metric itself. It is calculated using consumer goods and services. For a country like Russia it grossly
    undervalues its MIC. The consumer PPP is 2.5 but the military PPP is clearly over 6.

    Then we have the structural differences between economies which even the PPP does not address. The US GDP is inflated
    with corruption and "finance industry" shenanigans. This fluff does not make its physical economy bigger. The physical economy
    can be defined as the economy that matters. So Russia can produce all the military equipment it needs, it can also extract all
    the energy and minerals it needs. Finance industry does not have physical weight. The US does not get hypersonic missiles because
    it has lots of venture capital activity. The size of the US military budget is bloated by its foreign bases which are basically corruption
    orifices which are designed to funnel budget money into the hands of private contractors. Like the laundry and catering services at
    US prisons. While having some of the worst prison conditions around, the US has some of the highest per-prisoner costs on the planet.

    GarryB, magnumcromagnon, Hole and rigoletto like this post

    Kiko
    Kiko


    Posts : 1190
    Points : 1210
    Join date : 2020-11-11
    Age : 73
    Location : Brasilia

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Kiko Mon Apr 11, 2022 12:00 am

    Manturov spoke about the prospects for import substitution in the Russian Federation, 11.04.2022.

    Manturov: the most developing areas of import substitution will be agriculture, engineering and perfumery.

    The Russian economy now has great potential for import substitution and is entering a new stage. Such a statement was made on April 11 by Minister of Industry and Trade Denis Manturov in an interview with Izvestia after a meeting on the development of the perfume industry at the Svoboda factory.

    In an interview with the publication, Manturov spoke about the prospects for the development of the economy in the face of sanctions from the West and the withdrawal of many foreign companies from Russia.

    In particular, noting the problem of awareness of Russian companies about the existence of each other, Manturov spoke about the work on the state information system of industry. She, according to the minister, is an information platform for the integration of market participants, which will help domestic manufacturers of components, finished products and regulators to interact more effectively with each other.

    When discussing import substitution, Manturov emphasized that work on replacing foreign goods and components with Russian ones has been going on for many years. Its goal, as Manturov emphasizes, is to eliminate dependence on suppliers who do not want to supply products to Russia.

    “Now we have moved to the second stage: this is the import substitution of components, assemblies, in fact, raw materials, materials. We must approach development in more detail, more precisely with all the components that are tied into the import substitution program,” he explained.

    Some of the sectors of the Russian economy that have developed most strongly under Western sanctions are the fields of agricultural engineering, as well as the sphere of creating equipment for the oil and gas industry and the perfume industry. This is due to the complexity of industries, Manturov noted.

    Commenting on the withdrawal of foreign companies from the Russian market, the Minister of Industry stressed that in the event that any important foreign company leaves the Russian Federation, the government has a plan to replace suppliers.

    After the start of a special operation to protect the civilian population of the Donetsk and Luhansk People's Republics (DPR and LPR), launched on February 24 by the Russian military on the orders of Russian President Vladimir Putin , Western companies began to announce their withdrawal from the Russian market. The reasons for such decisions were difficulties with logistics and communication between countries, as well as economic pressure. In this regard, the process of import substitution was launched in Russia.

    On March 11, Suren Vardanyan, Vice President of the Moscow Chamber of Commerce and Industry (MCCI), spoke about the prospects for replacing foreign fast food chains with Russian ones . He stressed that this had been repeatedly discussed earlier, but due to competition with major international players, the announced projects could not become successful. Now the niche has been vacated and new market participants have more conditions for successful development.

    On the same day, Salis Karakotov, General Director of the Schelkovo Agrokhim holding, in an interview with Izvestia, said that the agricultural industry would continue to develop rapidly in Russia even during the period of sanctions . He emphasized that farmers are accustomed to restrictions, have built their work taking them into account, and therefore are weakly dependent on foreign partners.

    https://iz.ru/1318543/2022-04-11/manturov-rasskazal-o-perspektivakh-importozameshcheniia-v-rf

    GarryB, dino00, magnumcromagnon and Hole like this post

    rigoletto
    rigoletto


    Posts : 137
    Points : 139
    Join date : 2021-11-23

    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  rigoletto Mon Apr 11, 2022 7:57 pm

    Years ago I was in a business event where some WEG Motors representative was talking about their experience in China, they were the first (or one of them) Brazilian industries to start production in China.

    Among other things, they guy was telling in China they had/have some kind of public office with HUGE catalogs about literally everything which is produced in that specific region, and when you want something not found in that region they have access, in some way to the other regions catalogs. This is simple and ingenious.

    You are a business and you need something, just go in there and ask who can provide what you want, and they just tell you... no need to be running around trying to discover who can do what, not finding it locally and end up importing. Years later you discover there is a small company nearby all this time who could have delivered what you want/need in better conditions (this happens a lot).

    sepheronx, magnumcromagnon and LMFS like this post


    Sponsored content


    Russian Economy General News: #12 - Page 33 Empty Re: Russian Economy General News: #12

    Post  Sponsored content


      Current date/time is Wed May 25, 2022 9:02 am