(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 capital flight since the 2008 […]
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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 Tuesday on the news. “If […]
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(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 due in Russia for the […]
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(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 electricity supply in a peninsula […]
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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.
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(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 economy. But the actions taken […]
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(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 for Strategic Initiative, Delovaya Rossiya […]
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(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. Is the new administration about […]
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(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 and will leave Russia or […]
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(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. and EU sanctions in response […]
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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 sitting on Thursday. “The UN […]
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(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 to supply water and electricity […]
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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. “Our corporate sector currently has […]
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(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 crisis but also reflecting the […]
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(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 than it was back in […]
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(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 rates since the country desperately […]
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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 the event of any sanctions […]
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(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 Russia began a military operation […]
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(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 challenges that could get worse […]
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(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 for the next two decades. […]
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(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 increased bilateral trade and investment […]
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(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 state property, from energy to […]
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(Business New Europe – bne.eu – Ben Aris in Moscow – February 27, 2014) [Charts here http://www.bne.eu/storyf5775/Emerging_middle_class_delays_major _purchases_lots_of_catchup_left] Winds of uncertainty are blowing again and many in emerging markets have put off big-ticket purchases as a result. However, a survey from Credit Suisse released in February found some of these markets have progressed and diverged to such an extent that […]
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(RIA Novosti – February 27, 2014) Steady weakening of the ruble will contribute to inflation, but may also boost revenues to the Russian treasury by $10 billion, a senior finance official has predicted, according to a report in a daily newspaper Thursday. Since the federal budget for 2014 assumed an exchange rate of 33 rubles to the dollar, a weaker […]
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(Moscow Times – themoscowtimes.com – Delphine d’Amora – February 26, 2014) As Russia ally and former Ukrainian president Viktor Yanukovych fled and a new government took over in Kiev this weekend, Russia awoke to unpaid debts and a question: how to deal with its neighbor’s government not only politically, but economically. “The main channel of influence on the Russian economy […]
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(RIA Novosti – February 25, 2014) A weakening ruble could boost Russia’s federal income by $28 billion this year, pushing the treasury into surplus, according to a report published Tuesday by Moscow’s Higher School of Economics. The ruble has fallen by more than 7.5 percent since the beginning of the year against the dollar-euro basket used by the Central Bank […]
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(Moscow Times – themoscowtimes.com – Alexander Panin – February 24, 2014) According to government predictions, state companies’ spending plans are likely to pull the economy out of stagnation toward the end of the year. Other economists, however, remain skeptical of these forecasts. Figures for January released last week did not give grounds for optimism, and recent news reports have said […]
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SYDNEY. Feb 23 (Interfax) – The ruble’s weakening observed since the start of the year is due to slowdown in Russia’s economic growth in the first place, not over the curtailment of the Quantitative Easing (QE) program by the United States, Russian Finance Minister Anton Siluanov told reporters. “What happened to the ruble’s exchange rate at the start of the […]
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(Moscow Times – themoscowtimes.com – Ben Aris – February 22, 2014) Ben Aris is the editor of Business New Europe. It is critical to understand the economics of the current crisis in Ukraine. Ukrainian hard currency reserves have dwindled from $35 billion to $17 billion – not enough to ensure the stability of the government. Ukraine is bankrupt. Under the […]
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MOSCOW/KIEV, February 23 (RIA Novosti) – Ukraine’s parliament speaker and interim president said on Sunday the national economy was in a “critical state” hours after Russia made it clear that it was yet undecided on planned financial aid to its neighbor. “The situation in Ukraine, first of all in its economy, is disastrous. The rule of [Viktor] Yanukovych has driven […]
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MOSCOW, February 21 (RIA Novosti) – A top Russian official sounded a bullish note Friday on the underperforming economy, predicting a return to robust growth toward the middle of this year. Deputy Economy Minister Andrei Klepach said at a conference in Siberia’s Altai region that the Russian economy was expected to pull out of its current stagnation in the second […]
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(Window on Eurasia – Paul Goble – Staunton, February 21, 2014) The stagnation of the economy is leaving Vladimir Putin without the resources he earlier had to buy off the population and forced him to try to awake in it “an unselfish love for the authorities by using massive brain washing, according to a professor at the European University in […]
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(Kremlin.ru – Feburary 19, 2014) Vladimir Putin had a meeting with an expert panel of economists from the Russian Academy of Sciences. During the meeting, the academicians shared their vision of the key areas of the nation’s further socioeconomic development. In particular, President of the Russian Academy of Sciences Vladimir Fortov delivered a report on the possible options of creating […]
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MOSCOW, February 20 (RIA Novosti) – Concerns about the Russian economy grew following data published Wednesday showing that investment by Russian companies fell 7 percent last month as compared with January 2012. The data, published by state statistics service Rosstat on its website, reinforced fears that the economy has become mired in stagnation. Russian business newspaper Vedomosti cited an unnamed […]
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MOSCOW, February 19 (RIA Novosti) – The majority of Russians believe their country is developed, rich and free, according to a survey published by a state-run pollster Wednesday. Fifty-seven percent of respondents told the Public Opinion Foundation that their country is developed, 58 percent described it as rich and 60 percent said they live in a free country. Fifty-one percent […]
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(Moscow Times – themoscowtimes.com – Delphine d’Amora – February 18, 2014) Mortgage lending is soaring as banks lower their rates, carrying with it both the benefits and potential drawbacks of a mortgage-greedy banking system. Until recently, Russian banks and consumers alike were skeptical of mortgages, and the rapidly escalating price of real estate did not help matters. Now, stable housing […]
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MOSCOW, February 17 (RIA Novosti) – Greater powers are to be handed over to a government department overseeing affairs in Russia’s Far East within the coming month, a top official has said in an interview published Monday. The move is in line with government designs to boost the fortunes of a vast expanse of territory between Siberia and the Pacific […]
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GORKI. Feb 17 (Interfax) – Large-scale privatization deals could begin in the second quarter of 2014, the head of the Russian Federal Property Agency (Rosimushchestvo) Olga Dergunova told journalists on Monday. “Agents will be best prepared for deals such as that of Sovcomflot in the second quarter. We will answer questions concerning the deal’s structure and [share] placement location. The […]
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[“Russia holds rate, warns of rises if inflation accelerates” – CentralBankNews.info – February 14, 2014 – http://www.centralbanknews.info/2014/02/russia-holds-rate-warns-of-rises-if.html] CentralBankNews.info covers Russia’s Central Bank and its decision to maintain its key policy rate at 5.50 per cent. The Central Bank cautions that it could raise rates if inflation exceeds the bank’s target, but asserts an expectation that inflation will be held in […]
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(Business New Europe – bne.eu – February 14, 2014) Most Russians (60%) think that the financial standing of their families will not change during the nearest year, according to findings of a survey conducted by the Russian Public Opinion Research Center (VCIOM). The Russian people have been in such downbeat mood over the past ten years 17% of respondents expect […]
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[Moscow Times – Todd Wood – February 13, 2014 – themoscowtimes.com/opinion/article/dont-worry-about-us-fracturing/494439.html] Todd Wood, in a Moscow Times op-ed, writes that while the United States has used fracking to seize the lead in global petroleum exports, Russia has more reserves, and could expand oil field services. Unfortunately for Russia, the U.S. has taken the lead in hydraulic fracturing technology and is […]
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(Moscow Times – c – Anatoly Medetsky – February 13, 2014) Rresident Vladimir Putin on Wednesday held another meeting with Cabinet ministers to discuss the faltering economy, the latest ritual that might further diminish Prime Minister Dmitry Medvedev’s stature. Putin started out by asking Economic Development Minister Alexei Ulyukayev to report on finding ways to give momentum to an economy […]
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(Moscow Times – themoscowtimes.com – Yekaterina Yezhova – February 12, 2014) A slew of announced layoffs is rattling the domestic labor market, threatening to further undermine a weak economy. Russia’s two largest banks, state-owned Sberbank and VTB, have joined the country’s biggest carmaker, AvtoVAZ, in declaring significant staff reductions in the upcoming months. VTB Group disclosed last month that it […]
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(Window on Eurasia – Paul Goble – Staunton, February 11, 2014) Even before he was chosen to lead the CPSU and hence the USSR, Mikhail Gorbachev in December 1984 said he opposed the kind of megaprojects Soviet leaders had used up to then and favored instead more balanced development, a shift in attitude that informed his subsequent decision to block […]
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(Business New Europe – bne.eu – Ben Aris in Moscow – February 11, 2014) Moscow is home to much of Russia’s wealth and has always been treated as a country and an investment destination in its own right. But over the last decade a handful of regions have got their act together and now are emerging as even more attractive […]
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(Moscow Times – themoscowtimes.com – Anatoly Medetsky – February 10, 2014) Renault Russia sales chief Sergei Kuteishchikov had to shave his head last month, having lost what seemed a sure bet. He gambled that in 2013’s declining market, his dealers would beat the previous year’s sales results, but not by much. A recent message he sent to the dealers included […]
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(Interfax – February 10, 2014) Ecology is to become the most sought-after, most funded field of Russian science over the next few years, Russian Presidential Aide and former education minister Andrei Fursenko said. “I think ecology will be a very interesting area (of research) for Russia. I believe that over the next five to ten years the problem of the […]
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(Moscow News – themoscownews.com – Natalia Antonova, Nathan Gray – February 5, 2014) Following the weakening of the ruble, Moscow residents both foreign and local are bracing themselves in expectation of higher prices and general market instability. Yet according to the experts, it is too soon to tell whether or not the currency’s present state will have a lasting impact […]
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(opendemocracy.net – Dmitry Travin – February 6, 2014) Dmitry Travin is Research Director at the European University in St. Petersburg’s Centre of Modernization Studies. Russia’s unemployment figures look low, but they are rising, and there is a great gulf between the prosperous centre and failing regions. A foreigner coming to Moscow or St Petersburg as a tourist or on business […]
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(Moscow Times – themoscowtimes.com – Anatoly Medetsky – February 6, 2014) The Cabinet is mulling further tax breaks for the Far East and moving some government agencies to the remote region in another bid to inject more vigor in the economically lagging area. In addition, two new state companies could emerge to plow 170 billion rubles ($4.8 billion) into preparing […]
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