Tag Archive for Economy

RIA Novosti: Proportion of ‘Grey Capital’ Outflow from Russia Reached 20%-40% in 2012-2013 – Medvedev

Dmitry Medvedev file photo

MOSCOW, April 22 (RIA Novosti) – The proportion of “grey capital” outflow from Russia in 2012-2013 reached 20 percent to 40 percent, Russian Prime Minister Dmitry Medvedev said Tuesday during his annual report in the country’s lower house of parliament. “One of the forms of outflow comes from those who are looking for more attractive

RIA Novosti: Russia Can Create New Foundation for Self-Sufficient Economy – Medvedev

Dmitry Medvedev file photo

MOSCOW, April 22 (RIA Novosti) – The current situation with unstable world markets, Western sanctions against Moscow over Crimea, and the country’s own economic problems is a great opportunity to create a new foundation for an industrial-based economy, Prime Minister Dmitry Medvedev said Tuesday. “The current situation for our government is not only a challenge,

Capital Flight From Russia Expected to Reach $70-80B

File Photo of Cash, Coins, Line Graph

MOSCOW, April 21 (RIA Novosti) – The Russian Finance Ministry has forecast this year’s capital outflow from Russia as reaching $70-80 billion, the director of long-term planning at the ministry said Monday. “We are certain that it won’t jump to $100 billion this year. A more reasonable estimate would be around $70-80 billion,” Maxim Oreshkin

Some Multi-National Companies Ignoring Western Sanctions Against Russia

Truck at Russian Border Crossing

(Voice of America – Mil Arcega – April 21, 2014) Western sanctions are hurting Russia’s economy. That’s according to the country’s economic minister, who says Russia’s economic output is shrinking as investors take their money elsewhere. But some western companies are bucking that trend – expanding business interests in Russia – even as the U.S.

West should help Ukraine’s economy, not give promises – Russian PM

Dmitry Medvedev file photo

(Interfax – Moscow, April 15, 2014) Europe and America should stop talking about the need to help Ukraine and finally do something to help its economy, Russian Prime Minister Dmitriy Medvedev has said. “All those who talk about the need to help Ukraine should finally do something for Ukraine. I mean our European partners and

U.S. sanctions may spur economy reforms in Russia – business ombudsman

Boris Titov file photo

(Interfax – April 15, 2014) New U.S. sanctions against Russia may impact the global economy but may in the end stimulate economic reforms in Russia, businessmen’s rights commissioner Boris Titov said. “Of course, we would like to avoid sanctions. Money loves tranquility that is why the economy can develop only when international relations in the

RIA Novosti: Medvedev Says Russian Financial System Reliable

Dmitry Medvedev file photo

MOSCOW, April 15 (RIA Novosti) – Russia’s financial sector is reliable and under control, Russian Prime Minister Dmitry Medvedev said during a meeting with finance officials Tuesday. “We are in a very uneasy situation indeed, that’s why we need to make some allowances … but they are not supposed to be fundamental. On the whole,

Ukraine-Russia: Headlines get worse but gas is the key indicator

Map of Commonwealth of Independent States, European Portion

(Business New Europe – bne.eu – Chris Weafer, Macro Advisory – April 14, 2014) “Let me warn you, if you start chasing after views, you’ll be left without bread and without views” Nikolai Gogol Weekend headlines will add to market nervousness today. The headlines from east Ukraine over the weekend will unsettle markets at the

RIA Novosti: Opinion: G7 in Decline, Confrontation With Russia Will Lead to Economic Problems

File Photo of G7 Leaders and other Officials Around Round Table at the Hague, with Flags

MOSCOW, April 11 (RIA Novosti), Luidmila Chernova – Russia’s exclusion from the G8 is a knee-jerk reaction provoked by short-sighted interests, which will ultimately lead to economic problems, according to Andrew McKillop, a former chief policy analyst at the European Commission Directorate General for Energy. “It’s a purely political stance, provoked by only political short-term

Russian Economic Ministry revises capital outflow forecast up to $100 bln for 2014

File Photo of Cash, Coins, Line Graph

MOSCOW. April 9 (Interfax) – Russia’s Economic Development Ministry has increased its capital outflow forecast for this year to $100 billion from the previous $25 billion, Deputy Economic Development Minister Andrei Klepach said at a Tuesday evening briefing in Moscow. The outflow forecast for next year in the conservative scenario is increased to $50, in

Russian Economic Ministry revises 2014 GDP growth forecast down to 1.1%

File Photo of Cash, Coins, Line Graph

MOSCOW. April 9 (Interfax) – Russia’s Economic Development Ministry has lowered its 2014 GDP growth forecast in the base scenario from 2.5% to 1.1% and in the conservative scenario to 0.5%, Deputy Economic Development Minister Andrei Klepach said during a Tuesday evening briefing in Moscow. The main difference between the two scenarios, Klepach said, is

Over half of Ukrainians aspire to sign EU-Ukraine Association Agreement – poll

EU Map

KYIV. April 8 (Interfax) – Most Ukrainian citizens would like the EU-Ukraine Association Agreement, including establishing a free trade zone, to be signed as quickly as possible but stances as to when this should be done differ. According to the poll held by the Rating sociological group, the results of which Interfax obtained on Tuesday,

BNE: If Ukraine unravels, the EU will be lumped with the poor western half

Ukraine Map and Flag

(Business New Europe – bne.eu – April 7, 2014) With pro-Russian protests in eastern Ukraine turning violent and fears growing of a Russian incursion on the pretext of “protecting” ethnic Russian civilians, attention is now turning to what the economy of this country would look like were those regions to split. The answer: not good.

Political instability affecting Russia’s investment climate

File Photo of Outdoor Electronic Sign with Russian Exchange Data

(Russia Beyond the Headlines – rbth.ru – Ben Aris, special to RBTH – April 8, 2014) Ben Aris is the editor-in-chief of Business New Europe. The incursion into the Crimea was as much a shock to Russia’s business leaders as it was to the politicians in Brussels and Washington and is bound to hurt both

The future’s in their hands

File Photo of U.S. Diplomat Teaching Class to Russian Students

(Russia Beyond the Headlines – rbth.ru – Anastasia Maltseva, special to RBTH – April 7, 2014) Sociologists have conducted research on what professions Russian parents would like their children to do in the future. The results follow the changing dynamics of the job market in recent years and show that humanities-based occupations are no longer

IMF lowers Russian GDP growth forecasts to 1.3 percent in 2014, 2.3 percent in 2015

File Photo of Cash, Coins, Line Graph

(Interfax – April 8, 2014) The International Monetary Fund (IMF) has lowered its 2014 Russian GDP growth forecast from 2 percent to 1.3 percent. The IMF said in its latest World Economic Outlook (WEO) Update that the 2015 forecast was now 2.3 percent, down from the 2.5 percent the Fund was predicting in January. CIS

Crimea-Induced Brain Drain Will Hurt Russia More than Sanctions, Gontmakher Says

Ukraine Map and Flag

(Window on Eurasia – Paul Goble – Staunton, April 7, 2014) The domestic consequences of Moscow’s Crimean policy combined with Russia’s weakening economic prospects will drive ever more young Russians to seek work and possibly permanent residence abroad, an “exodus” that will hurt the country far more than any of the sanctions announced so far,

RIA Novosti: Ukraine’s Economy Would Have Collapsed Without Russian Aid – IMF Chief

File Photo of Cash, Coins, Line Graph

MOSCOW, April 3 (RIA Novosti) – Ukraine’s ailing economy would have collapsed without Russia’s financial help, the head of the International Monetary Fund said Wednesday. IMF Managing Director Christine Lagarde said that the Eastern European country’s economy had hit a wall last year and was heading for disaster when Russian bailout money averted a catastrophe.

No, Russia Isn’t Going Broke Any Time Soon

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Mark Gimein – April 3, 2014) Mark Gimein is Companies and Markets editor at Bloomberg.com, and lead writer for the Market Now blog and newsletter. Russia finally succeeded in selling government bonds this week, at a fat yield of 8.93 percent. This comes after four failed auctions since the Crimea occupation

Housing and High Wages Will Stop Russian ‘Brain Drain’ – Russian Official

Artist's Conception of Nanotechnology Components

MOSCOW, April 2 (RIA Novosti) – New housing incentives and high wages will help prevent young Russian scientists from leaving the country, a Russian official said Wednesday during a meeting of young scientists in Siberia. “I think that we should create better conditions so that our young scientists are motivated to build their career here

25% of Russians Think Government Is Corrupt, Poll Says

Cropped File Photo of Two Men in Business Suits Shaking Hands and Passing Cash

(Moscow Times – themoscowtimes.com – April 2, 2014) One in four Russians think that the current government is corrupt and self-serving, while about one in eight have nothing bad to say whatsoever about the administration, a recent poll indicates. The most common complaint of the government, selected by 41 percent of those questioned, is its

RIA Novosti: Geopolitics Poses Risks to Russian Financial Stability – Bank of Russia

Elvira Nabiullina file photo

MOSCOW, April 2 (RIA Novosti) – A review of ratings of Russian borrowers and the threat of their exclusion from international capital markets may affect Russia’s financial stability, the head of the Central Bank of Russia said Wednesday. “The geopolitical risks are large, especially if our banks and companies run into limitations on refinancing in

Soft war – when finance becomes continuation of politics by other means

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – PERSPECTIVE – Roland Nash of Verno Investment Research – March 27, 2014) As the conflict between Russia and the West for influence in Ukraine unfolded, finance has found itself in the unfortunate position of sitting squarely in the front line. From the acceptance by Viktor Yanukovych of a $15bn

RIA Novosti: Ukraine on Brink of Economic Bankruptcy – Acting PM Arseniy Yatsenyuk

Arseniy Yatsenyuk file photo

KIEV, March 27 (RIA Novosti) – Ukraine is facing default if the country’s parliament fails to approve unpopular anti-crisis measures proposed by the government, Ukraine’s interim prime minister Arseniy Yatsenyuk said Thursday. “These decisions need to be approved, otherwise Ukraine will become bankrupt,” Yatsenyuk said in his address to the parliament on the economy which

From Estonia to Azerbaijan: American Strategy After Ukraine

File Photo of Vladimir Putin and Barack Obama Seated Before Russian and U.S. Flags

(Stratfor.com – Geopolitical Weekly – George Friedman – Tuesday, March 25, 2014 – 03:08) As I discussed last week, the fundamental problem that Ukraine poses for Russia, beyond a long-term geographical threat, is a crisis in internal legitimacy. Russian President Vladimir Putin has spent his time in power rebuilding the authority of the Russian state within

Putin Tasks Trusted Lieutenant With Economic Development Of Crimea

Russian Naval Vessel in Ukrainian Port

(RFE/RL – rferl.org – March 24, 2014) Russian President Vladimir Putin named Deputy Prime Minister Dmitry Kozak, his long-time trusted lieutenant and trouble-shooter, on March 21 to oversee the economic development of the Re public of Crimea. Crimea and the city of Sevastopol were formally incorporated into the Russian Federation as individual federation subjects on

Russian official admits Crimean economy depends on links with Ukraine

Maidan Square file photo

(Interfax – Moscow, March 24, 2014) The potential of the Crimean economy will depend to a large extent on the development of its economic ties with Ukraine, Russian Deputy Minister of Economic Development Andrey Klepach told a briefing in Moscow on Monday. Asked what contribution the Crimean economy would make to the Russian economy, the

Capital Flight Expected to Hit Staggering $70Bln in First Quarter

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Anna Dolgov – March 25, 2014) Capital flight will reach up to $70 billion in the first quarter of this year amid the deterioration of the country’s relations with the West over Moscow’s annexation of Crimea, a deputy economy minister said. The forecast marks what would amount to the largest

Ruble Strengthens on Finance Minister’s Comments

File Photo of Cash, Coins, Line Graph

MOSCOW, March 25 (RIA Novosti) – Russian Finance Minister Anton Siluanov gave a boost to the ruble Tuesday by raising expectations the Russian currency would strengthen once the current foreign and domestic economic situations stabilize. The ruble strengthened by 46 kopecks (1.3 percent) against the dollar and by 76 kopecks (1.5 percent) against the euro

BNE: No one can kick Russia out of G8

File Photo of G7 Leaders and other Officials Around Round Table at the Hague, with Flags

(Business New Europe – bne.eu – March 25, 2014) “I would never want to be member of a club that wanted me as a member,” Marco Grouch famously said. Russia’s foreign minister Sergei Lavrov came out with pretty much the same defence after Russia was suspended from participating in the G8 meetings and international leaders

Russian Cabinet Outlines Costs of Crimea

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Anatoly Medetsky – March 25, 2014) The costly consequences of expanding Russia’s territory became clearer Monday when Prime Minister Dmitry Medvedev revealed a Crimea to-do list for the government and its corporations. Russia will need to take care of entitlements and services ranging from retirement pensions to tax rebates to

VIDEO: What’s Next for Ukraine? – The Charlie Rose Show, with Sestanovich, Cohen and Bremmer

Russian Naval Vessel in Ukrainian Port

The Charlie Rose Show covers unfolding events in the ongoing crisis in Ukraine, including occupied Crimea. Rose talks with Stephen Sestanovich, Stephen Cohen and Ian Bremmer.  

Russia-Ukraine: Return of the Prometheans

Russian Naval Vessel in Ukrainian Port

(Business New Europe – bne.eu – Chris Weafer, Macro Advisors – March 24, 2014) “Taking a new step, uttering a new word, is what people fear the most” Fyodor Dostoyevsky, Crime and Punishment The threat is more important than existing sanctions. The sanctions announced so far do not directly cause any material disruption to the

TRANSCRIPT: Putin at Congress of the Russian Union of Industrialists and Entrepreneurs

File Photo of Vladimir Putin at Valdai Club 2013 Meeting, Adapted from Screenshot of Valdai Club Video at youtube.com

(Kremlin.ru – March 20, 2014) Vladimir Putin took part in the annual congress of the Russian Union of Industrialists and Entrepreneurs. The topics on the congress’ agenda include de-offshorisation of the economy, making business more transparent, enhancing labour productivity, improving labour legislation, and creating a better investment climate. During the congress, representatives from the Agency

Interim Ukraine government in the same hole as Yanukovych

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – KYIV BLOG – Ben Aris in Moscow – March 24, 2014) The interim Ukrainian government signed off on the long-mooted Association Agreement with the EU at the weekend, setting the impasse with Russia in stone. However, the “Maidan” government baulked at signi ng the economic part of the deal.

RIA Novosti: Official Andrey Nikitin says annexation of Crimea will benefit Russian economy, in the long run

File Photo of Cash, Coins, Line Graph

(RIA Novosti – March 19, 2014) Gorki, 19 March: Crimea’s becoming part of the Russian Federation may temporarily damage Russia’s investment image, but in the long run Russia will only benefit [from it], the director-general of the Strategic Initiatives Agency (ASI), Andrey Nikitin, has said. “I think that those who fell for these scare stories

Navalny Proposes Sanctions List to the West

Alexei Navalny file photo

(Moscow Times – themoscowtimes.com – Christopher Brennan – March 20, 2014) Opposition leader Alexei Navalny, currently under house arrest in connection with a criminal case against him, has written an op-ed for the New York Times in which he calls for sanctions on officials and businessmen connected to President Vladimir Putin. Saying that previous U.S.

Interfax: Sergei Lavrov says Western sanctions on Russia are not lawful

Sergei Lavrov file photo

MOSCOW. March 20 (Interfax) – The sanctions imposed on Russia by the European Union and the United States do not have international legal grounds, Russian Foreign Minister Sergei Lavrov said. “Unilateral sanctions have never done any good. They are not legal. And they do not have international legal grounds,” Lavrov said at a State Duma

Crimea could face energy shortage, price hikes

Russian Naval Vessel in Ukrainian Port

(Russia Beyond the Headlines – rbth.ru – Tatyana Lisina, special to RBTH – March 15, 2014) Russia can supply water and electricity to the peninsula, but not immediately, which could result in problems for local residents. One of the concerns of local officials in Crimea should the peninsula decide to separate from Kiev is how

Kudrin on sanctions: Western banks already closing credit lines to Russian corporate sector

Alexei Kudrin file photo

ST. PETERSBURG. March 13 (Interfax) – Former Russian finance minister Alexei Kudrin is apprehensive about possible Western sanctions against Russia and said limitations in the banking sector have already begun. “I can say quite definitely: credit line limits for Russia are being closed,” said Kudrin, who is currently a member of the Presidential Economic Council.

Politics trumps & thumps economics

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – Chris Weafer, Macro-Advisory – March 11, 2014) “Sanctions and boycotts would be tied to serious political dialogue” Daw Aung San Suu Kyi We have cut our growth forecast to 1% for 2014, and revised some other macro forecasts partly because of the uncertainty and disruption caused by the Ukraine

Punishing Putin Will Hurt the U.S. and Europe, Too

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – editorial – March 6, 2014) As the U.S. and Europe consider financial sanctions to punish Russia for trampling on Ukraine’s sovereignty, they are coming up against an uncomfortable reality: Those sanctions tend to cut both ways. But how deep do they cut? Russia is far more financially intertwined with the West

Russia and Ukraine Have Bigger Problems Than Each Other

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Matthew C. Klein – March 3, 2014) Matthew C. Klein is a writer for Bloomberg View You may have missed it amid the ongoing drama in Ukraine, but Russia’s central bank raised its main interest rate today to 7 percent from 5.5 percent — the single biggest increase in Russian benchmark

Putin Adviser Urges Dumping US Bonds In Reaction to Sanctions

U.S. Treasury HH Series Savings Bond file photo

MOSCOW, March 4 (RIA Novosti) – An adviser to Russian President Vladimir Putin said Tuesday that authorities would issue general advice to dump US government bonds in the event of Russian companies and individuals being targeted by sanctions over events in Ukraine. Sergei Glazyev said the United States would be the first to suffer in

Markets plunge over Ukrainian crisis

File Photo of Outdoor Electronic Sign with Russian Exchange Data

(Russia Beyond the Headlines – rbth.ru – Tatyana Lisina, special to RBTH – March 4, 2014) The tensions in Crimea have already had serious economic consequences for Russia. The country’s stock market fell dramatically on Monday and the ruble continued its slide. Many experts compare the current developments to the events of August 2008, when

Ukraine Crisis Nets Billions of Dollars for Kremlin

Kremlin and Saint Basil's

(Moscow Times – themoscowtimes.com – Anatoly Medetsky – March 5, 2014) A cheaper ruble and more expensive oil could actually go a long way in improving Russia’s economy, possibly offsetting other potential aftershocks of the Ukraine crisis. U.S. Secretary of State John Kerry in interviews on Sunday identified the ruble’s slide as among Russia’s economic

Dvorkovich Sees 4% Economic Growth Next Year

Arkady Dvorkovich file photo

(Moscow Times – themoscowtimes.com – February 28, 2014) Deputy Prime Minister Arkady Dvorkovich on Friday said the country’s economy could accelerate to a growth rate of 4 percent next year, in stark contrast to the dour expectations of the Economic Development Ministry. The ministry sees the Russian economy struggling to rise above 3 percent growth

Russia waiting for U.S. investors

File Photo of Outdoor Electronic Sign with Russian Exchange Data

(Russia Beyond the Headlines – rbth.ru – Igor Dunayevsky, special to RBTH – February 27, 2014) Russian Minister of Economic Development Alexey Ulyukayev on Russia’s plans to attract U.S. investors and boost mutual trade. Russian Minister of Economic Development Alexei Ulyukayev paid a visit to the Washington, DC on Feb. 24-26 to discuss possibilities for

Investigative Committee to Crack Down on Corruption During Coming Privatization

Empty Boardroom

(RIA Novosti – February 27, 2014) The head of the powerful Investigative Committee said Thursday that preventing corruption during a planned privatization of state assets will be a top priority for his agency this year. The government recently announced plans for an ambitious three-year program running up to 2016 to privatize a wide array of

Emerging middle class delays major purchases; lots of catchup left

Cash, Calculator, Pen

(Business New Europe – bne.eu – Ben Aris in Moscow – February 27, 2014) [Charts here

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