Tag Archive for Economy

Russian Billionaires in ‘Horror’ as Putin Risks Isolation

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Henry Meyer, Irina Reznik, Ilya Arkhipov – July 21, 2014) Russia’s richest businessmen are increasingly frantic that President Vladimir Putin’s policies in Ukraine will lead to crippling sanctions and are too scared of reprisal to say so publicly, billionaires and analysts said. If Putin doesn’t move to end the war in

Business Mood Brightens, But Won’t Save Russian Economy, Study Finds

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Delphine d’Amora – July 16, 2014) Economic sentiment among Russian businesses improved in the second quarter, but the effect was largely seasonal and shot through with troubling long-term trends, a study published by the Higher School of Economics found. As the mood in retail and the services industry brightened –

Interfax: Most Ukrainian industrial production facilities will stop with severance of diplomatic ties with Russia – Federation Council members

Federation Council file photo

MOSCOW. July 16 (Interfax) – Members of the Russian Federation Council believe that Ukraine would experience grave socioeconomic consequences from the possible severance of diplomatic relations with Russia. Nikolai Ryzhkov, Federation Council member and the head of a public committee for support of the residents of southeastern Ukraine, described remarks by Ukrainian officials suggesting that

Russian Government Sets Up Four-Year Plan to Boost Productivity

Cash, Calculator, Pen

(Moscow Times – themoscowtimes.com – Delphine d’Amora – July 14, 2014) In an effort to transform Russia’s oil-dependent economy into a sustainable engine of growth, the government has unveiled a series of legal and financial measures aimed at fulfilling President Vladimir Putin’s ambitious pledge to increase Russia’s labor productivity 50 percent by 2018. Approved Wednesday

Russia’s capital flight hits 75 billion dollars

File Photo of Cash, Coins, Line Graph

(Interfax – Moscow, July 9, 2014) According to an assessment by the Central Bank of Russia, the net export of capital by banks and companies from the Russian Federation in the first half of 2014 was 74.6bn dollars. That is 120 per cent higher than in the first half of 2013 (33.7bn dollars), the Bank

RIA Novosti: Ukrainian Crisis Harmless for Russian Financial System – Central Bank

Russian Central Bank file photo

MOSCOW, July 8 (RIA Novosti) – The consequences for the Russian financial system if the crisis in Ukraine further escalates will be limited, according to a review of financial stability conducted by the Central Bank of Russia (CBR) for the fourth quarter of 2013 and the first quarter of 2014. “The possible direct consequences for

How Bulgaria’s Bank Run Affects Ukraine’s European Dream

EU Map

(Bloomberg – bloomberg.com – Ian Wishart, Elizabeth Konstantinova – July 3, 2014) Joining the European Union was meant to give Bulgaria a fresh start. Try telling that to Anna Dimitrova. “Bulgaria didn’t gain from the EU as much as it could have, because it’s mismanaged by corrupt politicians,” said Dimitrova, a law student, in central

Concern in Russia as foreign tourist numbers slump

File Photo of Airplane Approaching Runway About to Land

(Russia Beyond the Headlines – rbth.ru – Viktor Kuzmin, special to RBTH – July 3, 2014) Tourist operators in Russia have expressed alarm at a substantial drop in the number of foreign visitors coming to the country in 2014. Key figures in the tourist industry speculate that the fall in tourist numbers may be a

Why Putin Is in Trouble With 86% Approval

Vladimir Putin file photo

(Bloomberg – bloomberg.com –  Evgenia Pismennaya, Henry Meyer, Brad Cook – June 27, 2014) One month he wins the Olympics and kudos from world leaders. The next he grabs Crimea and gets kicked out of their most exclusive club. Now he’s facing a recession with few tools to fight it save the public’s love. Even

EU Association Agreements Not Seen as Threat to Russian Economy

EU Map

(Moscow Times – themoscowtimes.com – Gabrielle Tétrault-Farber – June 27, 2014) With Ukraine, Georgia and Moldova set to sign the economic sections of association agreements with the European Union on Friday, analysts say the deals will have minimal impact on the Russian economy but will further broaden the political schism between Russia and its neighbors.

RIA Novosti: Ukraine, Moldova to Lose Billions over EU Association Deals

Ukraine Map and Flag

MOSCOW, June 26 (RIA Novosti) – Ukraine and Moldova’s struggling economies could face multi-billion-dollar losses after signing association agreements with the European Union, Russian experts warn. “Countries that sign this association [deal] agree to fall in line with all EU directives, standards and technical regulations – and this is at their own expense. Even if

Russian stocks hit 5-month high as Putin rescinds right to use military force in Ukraine

File Photo of Outdoor Electronic Sign with Russian Exchange Data

(Business New Europe – bne.eu – Ben Aris in Moscow – June 25, 2014) Russian stocks hit a five-month high on June 24 after President Vladimir Putin asked Russia’s upper house of parliament to repeal a law that granted him the right to use military force in Ukraine, as investors speculate the standoff with the

RIA Novosti: Russia to Contest West’s Unilateral Economic Sanctions in WTO

WTO Logo

ST. PETERSBURG, June 20 (RIA Novosti) – Moscow intends to refer the issue of unilateral economic sanctions imposed on Russia by the West to the World Trade Organization, Russian Prime Minister Dmitry Medvedev said Friday. “When the United States imposed on Russia sanctions that create negative consequences for foreign trade, we decided to challenge them

Corporate bondholders fret as oligarchs suffer under Ukraine crisis

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – Nick Kochan in London – June 20,2014) Ukraine’s security crisis is hitting bond investors in some of the country’s largest companies. A combination of the deteriorating economic situation, falling currency, increased Russian import duties on Ukrainian goods and rising gas prices has meant big local firms are struggling to

New Ukraine Foreign Minister Seen Bringing Sober Style To Kyiv Diplomacy

Ukraine Map and Flag

(RFE/RL - Carl Schreck – June 20, 2014) One day after then Ukrainian President Viktor Yanukovych unexpectedly scuttled plans to sign an Association Agreement with the European Union at a Vilnius summit, his envoy in Berlin took to German radio to explain Kyiv’s decision. But Pavlo Klimkin also seized the moment to express his personal frustration with

Russian equities – the next leg up faces hurdles

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – COMMENT: Peter Szopo of Erste Asset Management – June 18, 2014) [Charts here http://www.bne.eu/content/comment-russian-equities-next-leg-faces-hurdles] The latest Russian stock rally was strong but short. It started in the last week of April and may have ended already in mid-June, as the situation in Ukraine began deteriorating once more. The main

Ukrainian ‘Black Hole’ Weighs Heavy On European Business in Russia

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Delphine d’Amora – June 18, 2014) Politics took front stage at the flagship conference of the Association of European Business, or AEB, on Tuesday, where foreign companies with committed interests in Russia grappled with the economic fallout of the unfolding crisis in Ukraine. Business as something relatively immune to political

INTERVIEW: Andrei Sharonov – sweating the chernovniki

Skolkovo File Photo

(Business New Europe – bne.eu – Ben Aris in Moscow – June 17 2014) Summer has finally come to Moscow and the main hall in the Red October chocolate factory that sits on the River Moskva across from the Kremlin is buzzing with young workers flapping about in flip-flops or hunkered over computers writing code.

Oligarchic Capitalism Blamed for Loss of Russia’s Position in Former Soviet Republics

Map of Former Soviet Union

(Window on Eurasia – Paul Goble – Staunton, June 12, 2014) The Russian Federation, by focusing on the construction of “oligarchic capitalism,” essentially “threw all the union republics” to their own fates, and as a result, the governments and peoples have turned away from Moscow and ethnic Russians are fleeing back to Russia, thus further

Number of millionaire households in Russia keeps growing

File Photo of Man Placing Stack of Large Bills into Inside Pocket of Suitcoat

(Business New Europe – bne.eu – June 12, 2014) Wealth of Russian households increased 21.9% in 2013 to reach $1.92tn. The figures are disclosed in a survey “Riding a Wave of Growth: Global Wealth 2014″ made public by The Boston Consulting Group (BCG) and seen by RBC daily. Whilst calculating overall wealth, BCG took account

Russia Beyond the Headlines: What is the link between economics and Putin’s popularity?

Kremlin and Saint Basil's

(Russia Beyond the Headlines – rbth.ru – Denis Volkov, special to RBTH – June 9, 2014) Denis Volkov is a sociologist with Levada Center. The analysis is based on data provided by the independent pollster Levada Center. A recent opinion poll by the Levada Center indicates that amid tensions over Ukraine and the takeover of

Russian stocks exiting the darkness – profits should climb as economy recovers

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.ru – UralSib – June 11, 2014) Our year-end RTS target of 1,520 implies 14% upside. Our yearend RTS target now stands at 1,520, implying 14% upside from the current level. Based on our calculations, the dividend yield for the index is currently 4.3%, which would put the total return at

Russian Millionaires Up By 18.5 Percent, Report Shows

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – June 10, 2014) The number of households whose wealth exceeds $1 million in Russia has grown by 18,5 percent in 2013, reaching 213,000 last year, the Boston Consulting Group said in a report. Russia thereby maintained the position it held in 2012, ranking 13th worldwide in terms of the number

Regions to Gain Control of Russia’s Special Economic Zones

Map of Russia

(Moscow Times – themoscowtimes.com – Delphine d’Amora – June 9, 2014) From next year, responsibility for Russia’s special economic zones – key institutions that have proved an invaluable boon to domestic and international companies investing in Russia – may be transferred from the federal to regional governments, a news report said Friday. The decision to

Five Insider Stories From Russia’s Fledgling Start-Up Market

Empty Boardroom

(Moscow Times – themoscowtimes.com – Alexander Panin – June 9, 2014) Start-ups, business angels and venture funds – these terms have become part of the Russian language, although just a few years back they were almost completely absent from the local dialect. High-tech business in Russia is expanding rapidly and being part of it is

Putin’s China Deal Won’t Help Russian Economy Much, Moscow Experts Say

China Map

(Window on Eurasia – Paul Goble – Staunton, June 5, 2014) The much-ballyhooed gas deal Vladimir Putin signed with Beijing will only have an “insignificant” impact on Russia’s economic development and state revenues, according to an analysis by experts at the Center of Development of the Moscow Higher School of Economics. Their 43-page report is

In a global economy, can Russia go it alone?

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(Russia Beyond the Headlines – rbth.ru – David Miller, special to RBTH – June 4, 2014) Russia is far more integrated into the world economy today than its Soviet predecessor was, making sanctions a more challenging proposition than when the Soviet Union faced them in the 1980s. The standoff over Ukraine has pushed tensions between

Russians Paying Up to Turn Rubles Into Homes: Mortgages

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Lyubov Pronina – June 4, 2014) Denis Ichetkin’s decision to get a mortgage for a one-bedroom apartment on the outskirts of Moscow in late January couldn’t have been better timed, he said. The 30-year-old journalist and his wife Veronika secured a 15-year loan from VTB Group with a 12 percent interest

Russian stocks: Abandon all hope, or time to buy?

File Photo of Cash, Coins, Line Graph

(Russia Beyond the Headlines – rbth.ru – Michael McAtavey, Special to RBTH – June 3, 2014) Russian markets have been pummeled by poor GDP growth and political headwinds. Yet some fund managers say they are finding deals. Sanctions. Conflict in neighboring Ukraine. Sagging economic growth. And let’s not forget capital flight. These are just some

World Bank Approves First Russia Investment Since Crisis

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(Bloomberg – bloomberg.com – Sandrine Rastello – June 3, 2014) The World Bank approved an investment in Russia for the first time since President Vladimir Putin annexed Crimea, overriding opposition from Canada and lack of support from the U.S. The International Finance Corp., the lender’s private-sector arm, voted May 29 for parts of a 250

Interfax: Ukraine’s GDP could contract by 5% in 2014 – Fitch

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MOSCOW. June 2 (Interfax) – Fitch Ratings forecasts that Ukraine’s GDP will contract by 5% in 2014, the ratings agency said in a statement. “The crisis will continue to weigh on Ukraine’s economy. We forecast GDP to contract by 5% this year. Ex-Crimea, industrial production shrank 6% year on year in April, and consumer spending

Tax Breaks May Not Be Enough to Jumpstart Crimea’s Struggling Economy

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Delphine d’Amora – May 30, 2014) In an effort to jumpstart Crimea’s faltering economy, a government plan could offer tax breaks and other juicy business conditions on the peninsula for the next half century – but even this may not be enough to attract businesses to the badly run-down region.

St. Petersburg forum attracts foreign investors despite boycott

File Photo of St. Petersburg Economy Forum Outdoor Banners and Building Facade

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – May 29, 2014) In spite of boycotts by CEOs of top global companies by the U.S. and a number of other Western nations, the St. Petersburg International Economic Forum, held on May 22-24 in Russia’s second city, saw contracts signed between U.S. firms and

Fewer Russians Fear Growing Old, Poll Shows

File Photo of Two Elders Walking Outdoors

(Moscow Times – themoscowtimes.com – May 29, 2014) The number of Russians who regard old age positively has grown over the past 10 years, a poll released Wednesday showed. The poll, conducted by the Public Opinion Foundation, showed 45 percent of respondents said they believed there were distinct advantages to old age, compared to 20

RIA Novosti: Medvedev Warns Strained Relations Could Have Economic Impact

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MOSCOW, May 29 (RIA Novosti) – Russian Prime Minister Dmitry Medvedev warned Thursday that new pitfalls in the country’s economic development cannot be ruled out due to strained ties with Ukraine and possibly with other ex-Soviet states. “The next few years will be marked by continued instability and strained environment in some markets. New risks

Russia-China gas deal spells trouble for the dollar

China Map

(Business New Europe – bne.eu – INVISIBLE HAND – Liam Halligan in London, Editor-at-Large of BNE – May 28, 2014) The St Petersburg International Economic Forum (SPIEF), now in its 18th year, was less well attended than usual. The absence of various US and Western Europe CEOs, responding to pressure from their governments following sanctions

Kremlin will Be in Trouble if It Tries to Take Away Anything Russians Assume is Rightfully Theirs, Gudkov Says

Kremlin and Saint Basil's File Photo

(Window on Eurasia – Paul Goble – Staunton, May 28, 2014) Russians are now far more concerned about defending what they have than in getting something better, Lev Gudkov says. Consequently, if the Kremlin does try to take away something the majority thinks is rightfully theirs, such a step would almost certainly put the survival

Putin is risking the engine of Russia’s economy

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – COMMENT: Lord Peter Mandelson of Global Counsel – May 27, 2014) Peter Mandelson was European Trade Commissioner between 2004 and 2008. He is now Chairman of Global Counsel Despite Russia’s recent underperformance, the size and potential of its economy has made it an attractive prospect for global companies. From

Interfax: Western sanctions haven’t yet affected Russian economy – Medvedev

Dmitry Medvedev file photo

MOSCOW. May 26 (Interfax) – Russia has not yet felt the effect of the West’s sanctions, but if they are applied to whole sectors of the Russian economy, European businesses will be harmed equally, Russian Prime Minister Dmitry Medvedev said. “The effect of the sanctions on the Russian economy is absolutely minimal at the moment,

Interfax: Probability Russia enters recession below 50% based on initial April data – Ulyukayev

Alexei Ulyukayev file photo

ST. PETERSBURG. May 23 (Interfax) – The initial economic data for April, including industrial output, indicates that the probability that Russia will enter a recession in the second quarter is below 50%, Economic Development Minister Alexei Ulyukayev told journalists on the sidelines of the St. Petersburg International Economic Forum. In any case, he said, economic

Interfax: Klepach: Any new shocks to global economy could reduce Russian GDP growth to zero

Andrei Klepach file photo

ASTANA. May 23 (Interfax) – Any new shocks to the global economy have the potential to reduce Russian GDP growth in 2014 to zero, Deputy Economic Development Minister Andrei Klepach said. “If any shocks in the global economy occur, such as a drop in oil prices or further aggrava tion of the geopolitical situation, GDP

Russia’s Fundamental Business Problem Lies in Poor Infrastructure – Kudrin

Alexei Kudrin file photo

ST. PETERSBURG, May 23 (RIA Novosti), Daria Chernyshova – Russia’s poor infrastructure is a fundamental problem for local businesses and needs to be improved, former Russian Finance Minister Alexei Kudrin told RIA Novosti on the sidelines of the St. Petersburg International Economic Forum (SPIEF) on Friday. “We need to make structural changes. The main problems

CONFERENCE CALL: Muted mood at Kremlin’s St Petersburg forum

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – Ben Aris in St. Petersburg – May 23, 2014) The mood is muted at the Kremlin’s annual St Petersburg International Economic Forum, which runs May 22-24. The threat of international sanctions is hovering over the heads of Russia n and foreign delegates in attendance at Russia’s premiere investment forum,

Business Leaders in St. Petersburg Debate Russian Economic Growth

File Photo of St. Petersburg Economy Forum Outdoor Banners and Building Facade

(Moscow Times – themoscowtimes.com – Nabi Abdullaev – ST. PETERSBURG, May 23, 2014) As Russia’s resource export- and consumer- driven economic growth fizzles, dozens of top Russian officials, businesspeople and foreign CEOs put their heads together in St. Petersburg on Thursday in a quest for new drivers to boost the country’s economy. No silver bullet

St. Petersburg Economic Forum Kicks Off in Troubled Times

File Photo of St. Petersburg Economy Forum Outdoor Banners and Building Facade

(Moscow Times – themoscowtimes.com – Alexey Eremenko – May 22, 2014) The 18th annual St. Petersburg International Economic Forum launches Thursday with enthusiasm about Russia’s economy running low – the country is ambling into a recession, and Russia’s squabble with the West has prompted a mass pullout of foreign forum participants. This year’s edition of

Russia Reduces Domestic Borrowing Plan Seeing Budget Surplus

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Vladimir Kuznetsov – May 19, 2014) Russia reduced its 2014 domestic borrowing plan by 46 percent as the world’s largest energy exporter expects to turn a fiscal surplus, Finance Minister Anton Siluanov said. The government lowered the fundraising target to 435 billion rubles ($12.6 billion) from 808 billion rubles, Siluanov told

Welcome to a multipolar world

World Map Showing Continents, Greens, Browns, Ice

(Business New Europe, MOSCOW BLOG – bne.eu – Ben Aris in Moscow – May 19, 2014) The shouting match between west and east continues, but the Russian stock market was surging on May 19, a day before Russian President Vladimir Putin was due to arrive in China, where he is expected to sign a string

RIA Novosti: Opinion: EU-Russia Economic Ties Too Important For Threats to Continue

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MOSCOW, May 19 (RIA Novosti), Daria Chernyshova – The EU-Russia economic relationship is far too important for the sides to continue talking in the language of sanctions, so the EU is scaling back its rhetoric, Chris Weafer, a founding partner of Macro Advisory, told RIA Novosti Monday. “The bottom line is that the economic relationship

RIA Novosti: Russia Poured $200 Billion Into Ukrainian Economy Over 20 Years – Russian Minister

Ukraine Map and Flag

MOSCOW, May 19 (RIA Novosti) – Russia has invested $200 billion in Ukraine’s economy over the last 20 years, including discounts on natural gas prices, Russian Minister of Economic Development Alexei Ulyukayev said in an interview with the RT news channel. “Maybe our European and American friends do not understand that we support the Ukrainian

INVISIBLE HAND: West needs to jaw-jaw, not war-war

World Map Showing Continents, Greens, Browns, Ice

(Business New Europe – bne.eu – Liam Halligan in London – May 19, 2014) Liam Halligan is Editor-at-Large of Business New Europe “That the Cold War ended in our lifetime without a general war and a nuclear exchange is the greatest shared boon, a true miracle of our own times. Nothing beats that – it

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