Tag Archive for Economy

Russia now in extremely difficult economic condition, but could use this for reform – Shuvalov

Igor Shuvalov file photo

(Interfax – January 23, 2015) The Russian economy is currently in extremely difficult economic condition, and Russia’s problems should not be underestimated, Russian First Deputy Prime Minister Igor Shuvalov said at Sberbank’s business breakfast at the Davos forum. “Russia is currently in an extremely difficult situation. Our economic situation isn’t good,” he said. There are

Deputy Prime Minister Shuvalov Sees Hard Landing for Russia

Igor Shuvalov file photo

(Bloomberg – bloomberg.com – Olga Tanas, Ott Ummelas, Anna Andrianova – January 23, 2015) Russia is in an “extremely difficult” economic situation and faces a worse crisis than in 2008-2009, according to First Deputy Prime Minister Igor Shuvalov. The country must prepare for a hard landing, Shuvalov said at a breakfast organized by the nation’s

Fall in oil prices could shrink Russia’s GDP by five percent

Oil Well file photo

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – January 21, 2015) Russian experts say that due to a six-year low in oil prices, Russia’s economy could contract by up to five percent in 2015. Moreover, the situation drastically differs from the 2008-2009 crisis when Russia was not as dependent on oil prices

Business New Europe: Russia prepares RUB1.375 trillion anti-crisis plan

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – bne IntelliNews – January 22, 2015) Russia’s President Vladimir Putin has approved the provisional version of an anti-crisis plan drawn up by the government. According to media reports, the plan involves recapitalisation of banks, provision of state guarantees, support measures for state development bank VEB and diverse sectors, changes

Russia To Face Same Old Questions at Davos In Chillier Atmosphere

File Photo of "World Economic Forum" Display at Davos from Past Session

(Moscow Times – themoscowtimes.com – Alexander Panin – January 21, 2015) As the World Economic Forum kicks off in the Swiss alpine town of Davos on Wednesday, Moscow’s delegates will be working hard to convince participants that Russia is still a sound investment despite tensions over Ukraine and a faltering economy. Speaking at a curtain-raising

A Tour Through Russia’s Five Poorest Cities

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Delphine d’Amora – January 21, 2015) While Moscow offers some wealthy residents a level of luxury on par with other world capitals, urban life in the dozens of other cities across Russia is quite another story. A study released this week offers a peek into this other side of urban

Russia in for recession, high inflation even if oil rebounds to $80-$90 – RenCap

File Photo of Cash, Coins, Line Graph

MOSCOW. Jan 21 (Interfax) – The Russian economy will not see any growth and inflation will remain high in 2015 even if oil prices rebound to $80-$90 per barrel, economists at Renaissance Capital believe. At an oil price of about $60, which is the investment bank’s baseline scenario, Russia’s GDP will contract by 4.3% in

Interfax: In 2008 crisis also came from abroad, Russia resolved problems by itself – Putin

File Photo of Vladimir Putin at Desk

NOVO-OGARYOVO. Jan 21 (Interfax) – The current, critical situation in the Russian economy was provoked from abroad, President Vladimir Putin believes. “I want to remind you that this is not the first situation of its kind which we are going through. We went through the same thing in 2008 and 2009. Then the crisis also

Ten New Laws That Will Affect Your Life in Russia in 2015

Kremlin and Saint Basil's File Photo

(Moscow Times – themoscowtimes.com – Ivan Nechepurenko – January 21, 2015) New year, new you: An expression that has taken on a special meaning for those living in Russia, where a plethora of new laws – many with a direct impact on the daily lives of citizens and residents – entered into effect on Jan.

Double trouble – Russia 2014 vs 2008

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – COMMENT: Peter Szopo of Erste Asset Management – January 20, 2015) [Charts here http://www.bne.eu/content/story/comment-double-trouble-russia-2014-vs-2008] History, they say, does not repeat itself – it rhymes. Even if this were true, history’s rhymes are clunky at best. While Russia’s current crisis has obvious parallels with the turmoil in 2008, such as

Russia Beyond the Headlines: Is a banking crisis looming in Russia?

Russian Central Bank file photo

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – January 20, 2015) The Russian government will supply banks with nearly $15 billion to help stave off a possible financial crisis. Only banks that are willing to increase credit in the production sector of the economy will be eligible to receive the money. In

Business New Europe: Pain but no disaster in store for Russia, says Rencap

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – bne IntelliNews – January 20, 2015) If the average price of oil in 2015 is $60 then Russia’s economy will contract by 4.3% and the ruble will be RUB56.4 to the dollar, say analysts at Renaissance Capital in a note released on January 20 exploring different oil price scenarios.

Interfax: Russians begin to feel economic crisis – poll

File Photo of Cash, Coins, Line Graph

(Interfax – January 19, 2015) Almost two-thirds of Russian citizens (62 percent) think that the country is living through an economic crisis although it has no effect on their finances as of yet, the Public Opinion Foundation said. The crisis mostly manifests itself in Moscow (70 percent) and cities with a population of 50,000 to

Business New Europe: Russia’s tech sector defies downturn

File Image of Stylized Eye Surrounded by Binary Code

(Business New Europe – bne.eu – Ben Aris in Moscow – January 16, 2015) Most of Russia’s economy will be in the proverbial dustbin in 2015, except for the technology sector. The gadget-loving Russians have been driving the explosion of e-commerce in recent years, which is now starting to spill over into technological innovation and

Moscow Times: Russian Oil Firms Can Weather $50 Oil

Oil Well file photo

(Moscow Times – themoscowtimes.com – Alexander Panin – January 16, 2015) If oil stays at its current price through this year, Russia’s gross domestic product will likely shrink more than 6.5 percent, but Russian oil companies will continue to make a profit at even lower prices, analysts at the Gaidar Economic Forum said Thursday. Oil

Business New Europe: Russia’s output will slump sharply in 2015, but what about Ukraine?

File Photo of Cash, Coins, Line Graph

(Business New Europe MOSCOW BLOG – bne.eu – Ben Aris – January 16, 2015) “Russia’s GDP is likely to plunge in 2015. Indeed, it would be prudent to expect a slump on the order of 10%. In many ways, Russia’s financial situation is eerily similar to the fall of 2008, when then-Prime Minister Vladimir Putin called

Analysts Predict a Russian Descent Into Madness

Kremlin and Saint Basil's File Photo

(Moscow Times – themoscowtimes.com – Ivan Nechepurenko – January 19, 2015) President Vladimir Putin cannot afford at this point to reform the political system he has built up, as doing so would undermine his grip on power, a panel of political analysts said at the Gaidar Forum on Friday. They went on to warn that without

What a ‘Junk’ Rating Would Mean for Russia

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Howard Amos – January 15, 2015) Russian officials and experts warned Wednesday that an expected decision by Standard and Poor’s to deprive Russia of its investment-grade credit rating could cost the country up to $30 billion and drain more money from an economy that is already entering recession. Major credit

Russian Prime Minister Scorns Fears, But Fails to Present Strategy at Economic Forum

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Ivan Nechepurenko – January 15, 2015) While Prime Minister Dmitry Medvedev radiated confidence Wednesday that Russia would be able to use the unfolding crisis as an impetus to make necessary changes to its economy, members of his government indicated that they do not have a concrete plan for bringing about

‘Top 15 Russian Fears for ’15’ — a ‘Versiya’ Checklist

Kremlin and Saint Basil's File Photo

(Window on Eurasia – Paul Goble – Staunton, January 14, 2015) Russians face so many problems and have so many fears that it is often a daunting task to ensure that one is keeping track of all of them. As a guide for the perplexed, Kseniya Veretennikova provides a checklist of the “top 15 fears”

Interfax: World Bank expects Russian GDP to fall 2.9 percent in 2015, edge up in 2016

World Bank Building

(Interfax – January 14, 2015) The World Bank expects Russian GDP to contract by 2.9 percent in 2015, but edge up by 0.1 percent in 2016, the bank said in its January Global Economic Prospects report. The World Bank estimates that the Russian economy grew by 0.7 percent in 2014. The bank is forecasting that

Russia 2014 Gas Exports Seen Lowest in Decade as Nations Cut Use

Gas Flame file photo

(Bloomberg – bloomberg.com – Elena Mazneva – January 13, 2015) Russia, the world’s biggest natural-gas exporter, probably cut 2014 fuel exports to the lowest in a decade as consumption in Europe and Ukraine declined. OAO Gazprom (GAZP), the state-run gas-pipeline export monopoly, supplied no more than 195 billion cubic meters of fuel from Russia to

Working in the Gulag: Russia’s Prison Service, the FSIN, wants to put inmates’ employment on a more businesslike footing, but their working conditions are still more like slave labour

Russian Jail File Photo Showing Outer Wall, Windows, Barbed Wire

(opendemocracy.net – VYACHESLAV KOZLOV – January 9, 2015) Vyacheslav Kozlov is a journalist for daily newspaper Kommersant. He writes on international relations, nationalism, extremism, narco-politics, the Russian opposition and the problems facing Russia’s NGOs. He has at various times worked for Vremya Novostei, Moskovskiye Novosti and the online publication Gazeta.ru. His work has also appeared

Rating Downgrade Set to Scare More Capital Out of Russia

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Peter Hobson, Alexander Panin – January 12, 2015) Rating agency Fitch on Friday downgraded Russia’s credit rating to one notch above junk status, warning that oil price falls and Western sanctions could contract the country’s economy by 4 percent this year and force the government to pour cash into Russia’s

Meet the EEU family (Eurasian Economic Union)

Map of Commonwealth of Independent States, European Portion

(Business New Europe – bne.eu – bne IntelliNews – January 5, 2015) Members: Belarus, Kazakhstan, Russia Prospective member: Armenia Potential members: Kyrgyzstan (likely), Tajikistan (unlikely) Population: 173mn (Russia, including Crimea, 146mn; Kazakhstan, 17mn; Belarus, 10mn) Total GDP: $2.7tn Share of world gas reserves: 20% Share of world oil reserves: 15% On January 1, the Eurasian

Interfax: Russia’s grain harvest tops 105 million tons in 2014

Field of Grain file photo

(Interfax – January 8, 2014) Agriculture Minister Nikolai Fyodorov has reported a record grain harvest of 105.3 million tonnes collected in Russia in 2014. “According to updated reports, Russian agrarians produced 105.3 million tonnes [of grain] in what people call granary weight,” he said at a meeting with Prime Minister Dmitry Medvedev. The premier said

NEWSWATCH: In Ukraine’s Donetsk, the ‘death clutch’ of a forgotten war: Both Russian and Ukrainian economies in tatters, half a million people displaced

Ukraine Map and Flag

[“In Ukraine’s Donetsk, the ‘death clutch’ of a forgotten war: Both Russian and Ukrainian economies in tatters, half a million people displaced” – CBC.ca – Don Murray – January 5, 2015] The CBC and free-lance reporter Don Murray examine the conflict in Ukraine, some of its underlying issues and its human costs: * * * Tens of thousands more

Any Russian Protests Ahead Likely to Be About Economic Issues Rather than Political Ones, Experts Say

Moscow Protest file photo

(Window on Eurasia – Paul Goble – Staunton, January 5, 2014) Three Russian experts with whom Russkaya planeta spoke say that while declines in the standard of living of many Russians in the coming year as a result of the economic crisis may lead to some protests about economic issues, any such demonstrations are unlikely

Putin goes

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

(opendemocracy.net – Aleksandr Morozov – December 22, 2014) Russian journalist , political analyst . Since August of 2011 – editor in chief of ” Russian Journal” , the director of the Center for Media Research UNIK Until ‘Black Tuesday’ on 16 December 2014, fifteen years after he first took power, there were no grounds for

Putin stays

File Photo of Vladimir Putin at Desk

(opendemocracy.net – Chris Weafer – December 22, 2014) Chris Weafer is the co-founder of Macro Advisory, and former Chief Strategist at Sberbank CIB. He served for four years as Chief Strategist with Uralsib Financial Corporation and for five years with Alfa Bank. The Kremlin has adopted a deliberate strategy – to let the rouble continue

The rouble crisis in Siberia

Cash, Calculator, Pen

(opendemocracy.net – Anna Fofanova – December 17, 2014) Anna Fofanova is a Tomsk-based editor and journalist. As the rouble collapses, residents of Tomsk have long memories – from Black Tuesday 1994 to Black Tuesday 2014. Tomsk is a provincial city in the best sense of the word. Indeed, as the largest centre for education and

Russians in Biggest Cities Feel the Most Pain from Crisis, Gudkov Says

Aerial View of Moscow From Beyond Stadium, file photo

(Window on Eurasia – Paul Goble – Staunton, December 22, 2014) Russians living in the largest cities, the people who benefited the most from the oil-driven boom of the last decade, now feel the greatest concern about the impact on their lives of the economic crisis because they are better informed than those in smaller

Does anybody in Russia care about the ruble?

File Photo of Cash, Coins, Line Graph

(Russia Beyond the Headlines – rbth.ru – Georgy Bovt, special to RBTH – December 19, 2014) After becoming two times poorer in real terms since the beginning of the year due to the collapse of the ruble, Russians could well have taken to the streets to protest against the government’s economic policies. Why hasn’t that

The oil price is all that matters regarding Russia

Oil Well file photo

(Business New Europe – bne.eu – Chris Weafer – December 19, 2014) Chris Weafer is Senior Partner at Macro-Advisory, which offers bespoke Russia-CIS consulting. The key takeaway concerning the economy and the ruble from President Valdimir Putin’s press conference on December 18 is that the Kremlin does not have any strategy or plan to try

How does the 2014 ruble crisis compare with the 1998 vintage?

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – Ben Aris in Moscow – December 17, 2014) The ruble’s crash on December 15 from RUB53 to nearly RUB80 vs the dollar has caused many commentators to compare this crisis to Russia’s financial collapse in 1998. Is Russia really going into a full-scale meltdown for the fourth time in

Russia doomed to recession (excerpt)

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – Ben Aris in Moscow – December 19, 2014) [Full text and charts here http://www.bne.eu/content/story/russia-doomed-recession] 1.0 Economics 1.1 Economics overview The mood amongst Russia watchers is as black as it has always been in the midst of one of Russia’s major crises. The forecasts for 2015 are almost – but not unanimously

Russian Media Downplay Extent of Ruble Crisis

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Howard Amos, Ivan Nechepurenko – December 17, 2014) While the ruble pinballed erratically between 58 and 80 per U.S. dollar on Tuesday, making headlines around the world, Russia’s state-run media have attempted to take a soft and conciliatory stance on the home currency’s woes. A news bullet by state-owned Channel

What awaits Russia’s economy in 2015 after ruble collapse?

Oil Well file photo

(Russia Beyond the Headlines – rbth.ru – Konstantin Korishchenko, special to RBTH – December 17, 2014) Konstantin Korishchenko is head of the stock market and financial engineering department at the Finance and Banking Faculty of the Russian Presidential Academy of National Economy and Public Administration, and a former deputy chairman of the Russian Central Bank.

Medvedev says ruble ‘undervalued’ as slide slows

File Photo of Dmitry Medvedev with United Russia Logos Behind Him

(Business New Europe – bne.eu – bne IntelliNews – December 17, 2014) Russian Prime Minister Dmitry Medvedev called the ruble undervalued at a meeting on December 17 with the top officials of the government, the central bank and heads of Russia’s largest exporters. He said that regulation of the currency market would remain based on

Picking through the ruble

Russian Central Bank file photo

(Business New Europe – bne.eu – MOSCOW BLOG: Ben Aris in Moscow – December 16, 2014) The Russian ruble crashed again on December 15, in the biggest fall since the last big crisis in 1998. The Central Bank of Russia (CBR) belatedly stepped in with a huge interest rate hike overnight, but it has been

Fears of Capital Controls Grow as Russia’s Economy Goes Haywire

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Howard Amos – December 17, 2014) The possible implementation of capital controls in Russia came a step closer Tuesday as the authorities appeared to be running out of options to stem the country’s dramatic currency collapse. The ruble defied an emergency interest rate rise of 6.5 percentage points announced overnight,

Business New Europe: What price European values when economic collapse is imminent?

EU Map

(Business New Europe – bne.eu – KYIV BLOG: Ben Aris in Moscow – December 15, 2014) Ukraine needs about $15bn now or it will collapse, possibly in the next few weeks. Ukraine’s prime minister, Arseniy Yatseniuk, called on Western donors to come up with a $15bn rescue package to stave off collapse on December 11

Yavlinsky calls for returning Kudrin to government

Alexei Kudrin file photo

(Interfax – December 13, 2014) Grigory Yavlinsky, a founder of the Yabloko party, calls for replacing the Russian government and appointing former Finance Minister Alexei Kudrin a new prime minister or first deputy prime minister with a special mandate. “We believe the government needs to be changed – whether it’s going to be the entire

Business New Europe: “Better late than never?”

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – MOSCOW BLOG: Ben Aris in Moscow – December 12, 2014) There is an obvious solution to help deal with Russia’s economic slowdown that is being exacerbated by the tumbling oil prices: do those reforms that should have been done ten years ago. It’s kind of obvious. But also just

Business New Europe: Flippant claim that ‘Russia is Spain’ is wide of the mark

Cash, Calculator, Pen

(Business New Europe – Henry Kirby in London – December 11, 2014) After months of downward pressure, the ruble went into near free-fall during the first week of December. From 36 to the dollar in early August, the Russian currency fell rapidly from 47 to 53 to the greenback in just a few days, amid

Business New Europe: Russia is running out of money – not…

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – MOSCOW BLOG: Ben Aris in Moscow – December 11, 2014) There has been a spate of articles recently suggesting that Russia is on the edge of a complete economic meltdown. There was an article in the UK’s The Daily Telegraph suggesting that its economy has lost a third of

Moscow Times: Life After Putin: Teaching Future Russia

Skolkovo File Photo

(Moscow Times – themoscowtimes.com – Alexey Eremenko – December 11, 2014) The professional future is bright in Russia, where space geologists and airship constructors will be among the most in-demand professionals by the 2020s, according to an atlas of Russia’s future job market recently published by Skolkovo’s Moscow School of Management. But whether Russia will

Russia Beyond the Headlines: Medvedev urges Russia to address dependence on world oil prices

Oil Worker file photo

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – December 11, 2014) In an address broadcast on Russia’s main TV channels, Prime Minister Dmitry Medvedev has said the country needs to wean itself off its dependence on oil prices. In order to accomplish this, Russia needs to develop innovative projects and use the

Moscow Times: Medvedev: In 2014, Crimean Annexation, Sochi Olympics Outshone Grim Economic Situation

Dmitry Medvedev file photo

(Moscow Times – themoscowtimes.com – Ivan Nechepurenko – December 11, 2014) Prime Minister Dmitry Medvedev struck an optimistic note throughout a 1 1/2-hour news conference Wednesday, drawing attention to what he viewed as Russia’s crowning achievements of this year: the Sochi Olympic victory and the annexation of Crimea. Medvedev spoke about a wide array of

Russian Ruble’s 800-Year History Haunts Current Plunge

Cash, Calculator, Pen

(Moscow Times – themoscowtimes.com – Howard Amos – December 11, 2014) Sergei Sorokoumov has devoted the last quarter of a century to an attempt to raise Russian’s pride in the ruble, the country’s national currency since the 13th century. Recently Sorokoumov’s efforts seem to have become a thankless task. The Russian currency has lost over

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