(Business New Europe – bne.eu – Tim Ash, Standard Bank – July 24, 2014) What is now clear on the ground is that Ukraine is at war, and with significant casualties suffered now by both sides on a daily basis – tens of lives lost almost daily now. The conflict is also causing very significant disruption and costs to the […]
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BRUSSELS, July 23 (RIA Novosti) – Kiev received Moscow’s list of potential risks that Ukraine’s association with the European Union could present to Russia’s economy, Ukraine’s Foreign Minister Pavlo Klimkin told journalists. “Just yesterday, we received Russia’s perception of the potential risks,” Klimkin said on Tuesday. Ukraine signed the agreement on its association with the EU on June 27. Russia […]
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MOSCOW, July 23 (RIA Novosti) – Moscow will have to resort to protective measures if Ukraine’s association deal with the European Union poses risks for the Russian economy, Russian Prime Minister Dmitry Medvedev said Wednesday. «We believe that the risks remain quite serious, especially concerning technical regulations and standards of sanitary and phytosanitary control. That’s why we are conducting consultations […]
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(Moscow Times – themoscowtimes.com – July 18, 2014) Against the backdrop of blistering diplomatic tensions between Moscow and Kiev, a 172-head herd of cows has been illegally trafficked across the Russian border, the Luhansk region branch of Ukraine’s Interior Ministry claimed Thursday. The herd went missing Wednesday night from a farm in Luhansk region’s Belovodsky district, Tatyana Pogukai, the head […]
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(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 Ukraine in the wake of […]
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(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 – largely thanks to traditionally strong […]
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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 Ukraine could sever diplomatic ties […]
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(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 and published online Friday, the […]
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(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 of Russia [Central Bank] has […]
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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 the Russian financial system if […]
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(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 Sofia. “Our politicians are not […]
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(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 result of the Ukrainian crisis, […]
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(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 Vladimir Putin, in his 15th […]
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(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. Russia should not lose more […]
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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 the EU gives them certain […]
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(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 West over Ukraine’s fate might […]
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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 in the World Trade Organization. […]
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(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 meet coupon payments and are […]
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(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 the move before quickly softening […]
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(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 RTS index rose by 23% […]
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(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 vacillations is a thing of […]
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(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. This is ground zero for […]
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(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 undermining Russian influence. That harsh […]
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(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 of total cash savings and […]
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(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 Crimea, Russian President Vladimir Putin’s […]
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(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 roughly 18%, so we have […]
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(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 of millionaire households, the consulting […]
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(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 delegate management of the zones […]
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(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 now considered “cool” as thousands […]
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(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 available at opec.ru/data/2014/06/04/1233922990/KGB_70f.pdf. Its main […]
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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 Russia and the West to […]
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(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 rate before Russia’s March incursion […]
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(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 of the reasons why Russia’s […]
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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 million euro ($340 million) package […]
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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 is well down, especially in […]
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(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. Russian politicians began talking about […]
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(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 Russian market players. The St. […]
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(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 percent a decade ago. A […]
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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 cannot be completely ruled out, […]
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(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 on Russia, was heavily commented […]
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(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 of the current regime at […]
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(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 German manufacturers to French and […]
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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, if there is any at […]
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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 activity is expected to pick […]
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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 could of course be near […]
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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 are with infrastructure. We have […]
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(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, and the impact of these […]
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(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 was thrown on the table […]
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(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 the forum, titled “Sustaining Confidence […]
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(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 reporters in Moscow today. The […]
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