“Russia said it will eliminate the dollar from its oil fund [the National Wellbeing Fund] to reduce vulnerability to Western sanctions …. The wealth fund currently holds 35% of its liquid assets in dollars, … about $41.5 billion, with the same amount in euros and the rest spread across yuan, gold, yen and pounds. After the change, the fund’s assets […]
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… The Big Mac Index compares the price of the famous McDonald’s burger across the world […]
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… acceleration of inflation in Russia in recent months was a temporary occurrence brought about mainly by a weakening ruble; consumer price growth will be below target from now on and the Central Bank should lower its key rate in the coming months, the … IMF[] said […]
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(Interfax – Aug. 23, 2020) The Russian economy is weathering the trials of the pandemic relatively well so far, with key macro indicators, at any rate, looking better than in many other countries. But statistics can be deceiving. Firstly, they cannot record changes fast enough and, secondly, not all the repercussions for the economy have been felt yet and they […]
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(Moscow Times – themoscowtimes.com – May 21, 2020) The ruble has hit its strongest level in more than two months, pushed higher by investor confidence, renewed appetite for risk and a partial recovery in worldwide oil prices. The ruble was trading at 70.8 against the U.S. dollar Thursday morning – a 12% appreciation since panic on the financial markets in […]
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The production cut will support oil prices and avoid a further ruble crash while the wider economic damage from coronavirus continues to build. (Moscow Times – themoscowtimes.com – Jake Cordell – April 13, 2020) The fresh OPEC+ deal struck between Russia and Saudi Arabia over the weekend will provide little support to the Russian economy, analysts believe. Instead, the deal […]
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(Article text ©2020 RFE/RL, Inc., Radio Free Europe/Radio Liberty – rferl.org – March 9, 2020 – article text also appeared at rferl.org/a/ruble-oil-prices-tumble-after-opec-deal-collapses-amid-coronavirus-fears/30476938.html) The Russian ruble fell to a four-year low after oil prices collapsed following a breakup of talks between OPEC leader Saudi Arabia and Moscow. The ruble tumbled on March 9 by more than 7 percent to nearly 74 […]
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(Moscow Times – themoscowtimes.com – Nov. 19, 2019) Ruble volatility has fallen to its lowest level in five years, amid a pause in sanctions pressure from the U.S. and more stable macroeconomic policies from the Russian government. The ruble’s implied volatility on the financial markets – a measure of how extreme traders expect swings in the value of the currency […]
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(Moscow Times – themoscowtimes.com – October 25, 2019) Around $1 trillion of capital has been pulled out of Russia since the fall of the U.S.S.R., a close aide to President Vladimir Putin has told world leaders at the Russia-Africa forum in Sochi. Sergei Glazyev, who was a long-time economic adviser to Putin and is now minister in charge of integration […]
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MOSCOW. Sept 19 (Interfax) – The Russian Finance Ministry will be geared towards borrowing abroad in currencies other than the U.S. dollar in the next few years, a ministry official told reporters. “There are questions as to what will happen with borrowing abroad. Naturally we will at first be geared towards reserve currencies outside the dollar zone. There is the […]
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(Paul Goble – Window on Eurasia – Staunton, August 3, 2019) August has begun with yet another decline in the value of the ruble, continuing the trend this summer month set in 1998 with default and continued last year with a decline of eight percent in the ruble’s exchange rate against Western currencies. And the rest of this month this […]
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“[Compared to Russia,] … China[‘s] economy is six times larger (at purchasing-power parity) … its power is growing … as Russia’s fades. … Russia is evolving into a Chinese tributary. … Russia is still a nuclear-weapons state with a permanent seat on the [UNSC]…. It has modernised its armed forces and, as in Syria, is not afraid to use them. […]
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(Article text ©2019 RFE/RL, Inc., Radio Free Europe/Radio Liberty – rferl.org – Tony Wesolowsky – April 10, 2019 – article text also appeared at rferl.org/a/interview-russia-seeks-to-capitalize-on-opportunities-in-libya/29873341.html) The situation is escalating in Libya, where more than 30 people have been killed since fighting broke out on April 4, when forces loyal to Libyan strongman Khalifa Haftar launched an offensive against the internationally […]
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“Russia is buying … [a] lot of gold … quadrupl[ing] reserves [within a decade]. Gold buying last year exceeded mine supply for the first time … Russia is about to become a net importer …. Are the Russian authorities preparing for a renewed clash with the United States … attempting to reduce … vulnerability to … sanctions? Or do they […]
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“Russia maintains armed forces of around a million … compared with … fewer than 200,000 in the UK. … [and] procures and maintains far larger volumes of equipment across the whole spectrum … including [ICBM’s], nuclear-powered submarines … state-of-the-art helicopters and fighter aircraft. * * * … PPP-based measures … yield a figure of closer to $200 billion …”
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“… Tests commissioned by the company last year and undertaken by Australia-based AMC Consultants, along with a scoping study conducted in 2018, determined that there are 63 million ounces of gold at Sukhoi Log, Polyus has told investors. While independent mining analysts haven’t confirmed that estimate on their own, many of them refer to Sukhoi Log as one of the […]
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“More private money left Russia in 2018 than … since the Crimean crisis and oil market rout of 2014 …. Over $67bn … according to the … central bank …. some … attributed to fears over … U.S. sanctions and threats of more actions from Washington …. [ING’s] Dmitry Dolgin … [indicated that when] Russia’s central bank suspended foreign exchange […]
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“Russia’s central bank dumped $101 billion last year in its biggest-ever shift away from the U.S. currency amid fears of new sanctions. But the Kremlin’s drive to wean the rest of the economy off the greenback has been slower going. Despite … Putin’s regular public exhortations to accelerate ‘de-dollarization,’ even the country’s state-owned companies are sticking to the currency. Shifting […]
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“Russia’s finance ministry said it is resuming foreign currency purchases on open markets after fears over U.S. sanctions saw it halt them last year to head off a slide in the rouble rate. … Rbs265.8bn … next Tuesday and February 6, the ministry said in a statement on Friday. … the first since the central bank … stopped them in […]
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“Russian inflation is in focus for 2019 as prices began to rise at the end of 2018 and ended the year slightly above the Central Bank of Russia (CBR) target rate of 4%. … the World Bank says that inflation will remain low this year and growth will be 1.5%, the same as in 2018 …. The U.S. government has […]
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MOSCOW. Nov 22 (Interfax) – There will be no rapid de-dollarization in settlements which, when conducted in other national currencies, including those of Eurasian Economic Union countries, pose certain currency risks, said Alexei Kudrin, head of the Russian Accounts Chamber. “I’m in favor of a company being able to choose [the currency of settlements], which would be in keeping with […]
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(Oilprice.com – Irina Slav – November 12, 2018) Russian oil exporters are pressuring Western commodity traders to pay for Russian crude in euros and not dollars as Washington prepares more sanctions for the 2014 annexation of Crimea by Moscow, Reuters reported last week, citing as many as seven industry sources. While it may have come as a surprise to the […]
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“U.S. sanctions have driven the price of oil and the ruble apart – leaving Russia with expensive crude and a cheaper currency … helping its economy. The price of oil, Russia’s main export, has risen almost 14% since mid-August. … largely because of the coming resumption of U.S. sanctions against Iran, choking off the supply of crude from that country. […]
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“… [poll numbers indicate that] Russians are concerned about rising prices (72%), poverty (52%), and unemployment (48%). … the highest August figures since 2013. … a Bank of Russia survey finds … ordinary Russians are expecting higher inflation …. lean years have rendered adventures abroad relatively less important to Russians. … inflationary expectations raise the specter of a key rate […]
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“… In August alone, America has slapped penalties on Russian shipping firms accused of trading oil with North Korea; imposed restrictions on the arms trade in connection with the poisoning of … Skripal …; and begun congressional hearings on … legislation designed to punish Russia for its interference in elections. Further Skripal-linked measures may follow in three months’ …. Markets […]
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“The sanctions[-]based assault on Russia by the U.S. and its expanding sanctions regime is starting to take its toll as the Russian government and financial authorities [are scrambling] to manage the damage … affecting everything from corporate profits to foreign currency reserves. Earlier this month … The Central Bank of Russia (CBR) said it will stop its regular foreign currency purchases […]
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“… Erdogan … stepped up his attacks on the U.S. … Tuesday, calling for a boycott of Apple … iPhones and other U.S. electronic goods … his foreign minister joined his Russian counterpart … criticizing Western sanctions. Turkey, a longtime [NATO] ally, has been caught between the West and Russia. This week, officials in Ankara were leaning decidedly toward Moscow. […]
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(Oilprice.com – Tsvetana Paraskova – May 9, 2018) Russia is mulling over ways to ‘get free’ of the U.S. dollar burden in oil trade as part of a plan to boost its national economic sovereignty, Russian President Vladimir Putin said. “Oil is traded in dollars on the exchange,” TASS news agency quoted Putin as saying. “Certainly, we are thinking about […]
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“Russia is gambling that a policy mix born amid its confrontation with the West four years ago is good enough to carry it through an even worse standoff …. allowing its ruble to trade freely …. that flexible currency provides support for the Russian economy as … Putin faces the fallout of the most punitive U.S. penalties yet and … […]
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(Article ©2018 RFE/RL, Inc., Radio Free Europe/Radio Liberty – rferl.org – April 10, 2018 – also appeared at rferl.org/a/russia-ruble-continues-fall-officials-seek-to-calm-nerves/29156379.html) The Russian ruble is falling for a second straight day following the imposition of new U.S. sanctions, while the Central Bank chief and other officials are seeking to calm investors in the wake of a big sell-off in shares of Russian companies […]
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(Government.ru – November 30, 2017) The Prime Minister answered questions from TV anchors Valery Fadeyev (Channel One), Sergei Brilyov (Rossiya), Irada Zeinalova (NTV), Igor Poletaev (RBC) and Mikhail Fishman (TV Rain). Excerpts from the transcript: Results of the Government’s performance in the outgoing year and the state of the economy Dmitry Medvedev: Today we can say that the economy has […]
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(Article ©2017 RFE/RL, Inc., Radio Free Europe/Radio Liberty – rferl.org Brian Whitmore – September 1, 2017 – also appeared at rferl.org/a/lame-duck-putinism/28709290.html) An association of “patriotic entrepreneurs” is proposing that the Russian central bank issue a new 10,000 ruble banknote featuring Vladimir Putin’s likeness. Now you can read that a couple ways. The simplest, of course, is that it’s nothing more than […]
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(Article ©2017 RFE/RL, Inc., Radio Free Europe/Radio Liberty – rferl.org – Brian Whitmore – August 29, 2017 – rferl.org/a/daily-vertical-transcript-life-after-putin/28703034.html) Is Vladimir Putin about to get his very own banknote? Could be. An association of entrepreneurs has recently proposed that the Russian central bank issue a commemorative 10,000-ruble note featuring Putin’s likeness. Now you can read this a couple ways. The simplest, […]
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(Bloomberg – bloomberg.com – Natasha Doff, Ksenia Galouchko – August 24, 2017) [Text with charts: bloomberg.com/news/articles/2017-08-24/month-after-sanctions-storm-russia-risk-drops-to-four-year-low] Less than a month after the U.S. toughened its main sanctions against Russia, a measure of the country’s political risk is back to its lowest level in four years. The cost of insuring Russian debt against default for five years using credit-default swaps dropped […]
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“Thanks to higher than expected oil prices Russia has not had to touch its rainy day reserves funds so far this year to prop up budget spending. But the ministry of finance says it will have to dip into them in the second half of this year and expects to at least exhaust the $16.5bn National Reserve Fund. …” Click […]
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MOSCOW. April 17 (Interfax) – The new fiscal rule that restricts Russian budget spending of additional oil and gas revenue is essentially already in effect, and it might be formally introduced in 2018, Kremlin aide Andrei Belousov said. “The fiscal rule comes down to cutting off the level of spending at an oil price of $40 per barrel. We negotiated […]
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(Bloomberg – bloomberg.com – Olga Tanas, Andre Tartar – April 9, 2017) The ruble’s “serious weakening,” as forecast by Russia’s Economy Ministry, may be seriously good for growth. While the authorities in Russia have wavered this year over the benefits and disadvantages to the economy of a strong exchange rate, analysts are coming down on the side of depreciation. A […]
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(Bloomberg – bloomberg.com – Olga Tanas – February 20, 2017) The half of Russia’s economy that hasn’t got wind of a recovery is already hunkering down for the crisis to come. Once indispensable for the country’s prospects, consumption flat-lined well below zero throughout last year even as the broader economy defied gloom. From the ruble to industrial output and wages, […]
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It was a step that seemed unimaginable a year ago: the Russian authorities stepping in to stop the country’s currency from getting too strong. … The finance ministry said Putin himself had decided that the surplus oil revenue would not be used for ‘additional spending’ but would go towards buying foreign currencies to bolster the country’s depleted reserve funds. … […]
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MOSCOW. Jan 24 (Interfax) – De-dollarization of the #Russian economy and #banking system is proceeding at full speed given the preferences of the public and companies and this process will continue, the head of the Central Bank of #Russia’s research and forecasting department Alexander #Morozov said at a roundtable in the State #Duma. “De-dollarization in the economy is proceeding at […]
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(Bloomberg – bloomberg.com – Anna Andrianova – January 23, 2017) Untethering the #ruble helped #Russia ride out the biggest #oil downturn in a generation. But it’s left the world’s biggest energy exporter vulnerable to greater volatility in crude prices as #OPEC pushes output cuts. To address that, the Bank of Russia is preparing to wade back into the currency market […]
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(Moscow Times – themoscowtimes.com – January 5, 2017) As most Russians enjoy a week-long holiday vacation, the country’s ailing currency is also having a happy new year. Today, during trading on the Moscow Stock Exchange, the U.S. Dollar’s value fell to less than 60 rubles for the first time since 2015, the RBC newspaper reported. At 2:19 p.m. Moscow time, […]
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(Bloomberg – bloomberg.com – Olga Tanas, Ilya Khrennikov – November 16, 2016) Made in Russia and coming soon to a store shelf near you: washing machines, chewing gum and possibly much else. A combination of the country’s worst currency crisis since 1998 and an unprecedented slide in real wages for most of the past two years has resulted in salaries […]
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“Russia’s ruble denominated Moscow Interbank Currency Exchange (MICEX) index set a new all time high of 2061.68 on November 10 on the bounce back that followed the election of Donald Trump as US president. Trump is seen as good news for Russia that is fuelling hopes of a de-escalation in tensions between the countries. The previous MICEX high was set […]
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(Bloomberg – bloomberg.com – Andre Tartar, Anna Andrianova – August 28, 2016) The recent flare up over Crimea may have just delayed Russia’s economic recovery. After President Vladimir Putin accused Ukraine of plotting terrorist attacks on the Black Sea peninsula this month, the chance that Western countries will scrap economic sanctions against Russia has declined, according to a Bloomberg survey […]
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(RFE/RL – rferl.org – March 22, 2016) Ukraine’s battered economy shrank by 9.9 percent in 2015 due to implosions in the financial sector and consumer demand, the state statistics service reported on March 21. The stunning fall last year followed a drop of nearly 7 percent in 2014, the year Russia annexed Crimea and Ukraine’s war with Russia-backed separatists broke […]
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(RFE/RL – rferl.org – Claire Bigg – February 1, 2016) As the ruble continues its catastrophic tumble, hitting another historic low last month, the pain is being felt keenly across Russia. Among those worst hit are patients in need of urgent surgery abroad or other life-saving treatment billed in foreign currencies. “It all started with a bad cough and a […]
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As the Russian economy hits hard times, with business incomes falling, government spending facing cuts and the ruble losing value, RBTH spoke to Sergei Katyrin, president of Russia’s Chamber of Commerce and Industry, to find out how foreign companies are enduring the current “perfect storm” for business. (Russia Beyond the Headlines – rbth.ru – ILYA KROL, RBTH – January 28, […]
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