(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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(Moscow Times – themoscowtimes.com – Alexander Panin – March 6, 2014) As world leaders increase or trash their political clout depending on their audience and the statements they make about the situation in the Ukraine, some analysts were revising Russian GDP growth estimates to as low as 1.1 percent for the year. Wednesday was a calmer day on the stock […]
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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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(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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(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 – February 24, 2014) More than 60 percent of Russian companies say that they have been victims of economic crimes like bribery, a report said. Worldwide, the incidence of fraud is much lower, with 37 percent of companies having come into contact with it, according to research by PricewaterhouseCoopers released late last week. The most common […]
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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, 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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(Russia Beyond the Headlines – rbth.ru – Viktor Kuzmin, special to RBTH – February 20, 2014) Russia’s Economic Development Minister heads to Washington next week for a series of talks in increasing bilateral trade relations. Russia and the United States will make another attempt early next week to revitalize bilateral trade during a working trip to Washington by Economic Development […]
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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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(Russia Beyond the Headlines – rbth.ru – Kira Egorova, Anna Sorokina, RBTH – February 19, 2014) On Wednesday morning, the ruble slid to a five-year low against the dollar on trading in the Moscow Exchange. Experts have tried to reassure investors arguing, that the ruble will gain ground soon The Euro also reached an all-time high against the Russian national […]
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[“Fast food conquers Russia, brings obesity” – ITAR-TASS – Lyudmila Alexandrova – February 18, 2014 – http://en.itar-tass.com/opinions/1676] ITAR-TASS tries to blame McDonald’s for Russian obesity: Russia’s first McDonald’s fast food restaurant opened on downtown Moscow’s Pushkinskaya Square in late January 1990, causing unprecedented buzz among Muscovites who formed a multi-kilometer line to taste American fast food. International fast food came […]
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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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(Business New Europe – bne.eu – Ben Aris in Moscow – February 17, 2014) Russia’s central bank moved in on its latest two victims on February 11, pulling the banking licenses from Moscow-based European Trust Bank (Eurotrust) and Link-Bank. Eurotrust was already a zombie. The bank stopped taking in new retail customers last November due to the tough economic conditions, […]
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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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[“Russia accuses EU of seeking Ukraine ‘sphere of influence’” – Reuters – Gabriela Baczynska, Alexandra Hudson – February 14, 2014 – http://www.reuters.com/article/2014/02/14/us-ukraine-russia-eu-idUSBREA1D0PT20140214] Reuters covers tensions between Russia and the EU over Ukraine, including Russian Foreign Minister Sergei Lavrov bemoaning the prospect of an EU sphere of influence on Russia’s borders: Russia accused the European Union on Friday of seeking to […]
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MOSCOW, February 13 (RIA Novosti) – Russia may have to spend up to $7 billion over the next three years to maintain infrastructure and venues around the Olympic host city of Sochi, Bloomberg news agency reported Thursday. Bloomberg cited unnamed planning officials as saying the government is not yet sure of the final bill for the Olympics partly because plans […]
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(Kremlin.ru – February 12, 2014) Vladimir Putin met with a number of Government members to discuss legislation for developing Russia’s financial market and implementation of the Economic Development Ministry’s 2013-2018 action plan. The meeting continues a series of consultations that the President is holding with the Government on carrying out the tasks set out in the Annual Presidential Address to […]
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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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(Russia Beyond the Headlines – rbth.ru – February 11, 2014) International expansion is the new watchword for the Russian venture market’s movers and shakers. As the latest ranking of the country’s internet millionaires indicates, the winners are those who invest abroad. The magazine Sekret Firmy (meaning “company secret” in Russian) has conducted a study together with the BrandSpotter agency to […]
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MOSCOW. Feb 12 (Interfax) – The Federal Migration Service and the Economic Development Ministry have drawn up a law, which facilitates naturalization of foreign citizens, Kommersant wrote on Wednesday. The simpler naturalization procedure will be primarily granted to businessmen who invest at least ten million rubles in Russia and foreign alumni of Russian colleges and universities who work in Russia […]
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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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(Moscow Times – themoscowtimes.com – February 11, 2014) The Communications and Press Ministry has submitted a draft bill to the government that would reorganize Russian Post and pave the way for the flotation of the company’s shares, Interfax reported Tuesday. The move is part of an overall strategy that would not only make Russian Post financially independent by 2018, but […]
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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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(Russia Beyond the Headlines – rbth.ru – Natalia Orlova, special to RBTH – February 5, 2014) While developed economies face the need to deleverage, emerging markets still have the opportunity to grow by taking on more debt. Natalia Orlova is the Chief Economist at Alfa Bank in Moscow. While developed economies face the need to deleverage, emerging markets still have […]
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MOSCOW. Feb 5 (Interfax) – Russian Prime Minister Dmitry Medvedev has ordered analyzing the possibility of relocating the main offices of a number of major companies partly or wholly owned by the state and a number of federal government bodies to the Far East, Russian Deputy Prime Minister and presidential envoy to the Far Eastern Federal District Yury Trutnev told […]
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(Moscow Times – themoscowtimes.com – February 5, 2014) More than a year and a half after joining the World Trade Organization, Russia has decided the size of its permanent mission to promote the country’s interests at the body’s headquarters in Geneva. The mission will be staffed by 27 representatives of the Economic Development Ministry and five specialists from the Foreign […]
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(Interfax – February 4, 2014) The economic amnesty declared by the Russian State Duma in July 2013 has already been applied to over 2,000 people, the office of the Russian presidential commissioner for the businessmen’s rights Boris Titov said. “As of February 4, the number of persons, regarding whom the State Duma resolution On Declaring Amnesty of July 2, 2013 […]
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MOSCOW. Feb 3 (Interfax) – Business conditions facing Russian manufacturers continued to worsen at the start of 2014, PMI data from HSBC show. The overall deterioration in the sector was the most substantial since June 2009, with declines registered for output, new orders, exports, employment and purchasing, HSBC said in a research note. Meanwhile, inflationary pressures remained historically weak overall, […]
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(Russia Beyond the Headlines – rbth.ru – Stanislav Savinov, special to RBTH – February 3, 2014) Stanislav Savinov is a macroeconomic analyst at UFS Investment Company in Moscow. New leadership has given the Russian Central Bank a fresh dynamism that was sorely lacking. The new head, Elvira Nabiullina, is shaking things up, in part by making inflation Enemy No. 1. […]
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MOSCOW. Jan 31 (Interfax) – Economic Development Minister Alexei Ulyukayev believes that the Russian economy passed through the worst of the economic downturn in the third quarter of 2013 and there are now encouraging signs that the situation is improving. “It seems to me that we passed through the nadir sometime in about the third quarter of 2013. Encouraging signs […]
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(Russia Beyond the Headlines – rbth.ru – Ben Aris, special to RBTH – January 31, 2014) Russia’s benchmark RTS Index fell 6 percent in 2013 for one of the poorest performances on record. But analysts expect 2014 to be a better year for Russian stocks. Russian equity had one of its worst years on record in 2013, especially compared to […]
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(Moscow News – themoscownews.com – Nathan Gray – January 31, 2014) Entrepreneurship has become an object of intense focus in Russia since the crisis of 2008-2009, as debates continue over the pace and the progress of economic diversification. The expansion of business accelerators and technoparks across the country has indicated the interest in fostering small and medium-sized enterprises. Events such […]
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(Russia Beyond the Headlines – rbth.ru – David Miller, special to RBTH – January 31, 2014) Russian officials are looking to open talks on reducing trade barriers with the country’s former Cold War adversary, despite facing a host of political disagreements in other areas. Russia has proposed a new round of trade negotiations with the United States, aimed at kickstarting […]
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