(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – October 7, 2014) The price of Brent oil has tumbled to $92.2 a barrel, placing the Russian federal budget in jeopardy. Russian analysts believe that the decrease in oil prices is related to demonstrations in Hong Kong, the strengthening of the dollar, as well as the drastic growth in […]
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MOSCOW, October 7 (RIA Novosti) – Russia needs to establish a system of domestic credit and improve the efficiency of public administration, so that the economy could successfully develop amid Western sanctions, Russian Presidential Aide Sergei Glazyev said Tuesday. “If we want to survive the war that is being waged against Russia, we need to create an internal system of […]
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Subject: Sanctions, Part 2. Date: Tue, 7 Oct 2014 From: Paul Backer <pauljbacker@gmail.com> Part 2. Russian companies’ failures to adopt effective sanctions policies worsen sanctions’ impact. Russian companies failed to address key aspects of sanctions: 1. Large law firm incentives are against giving operationally useful sanctions advice and 2. Nature and enforcement of sanctions differ from traditional law. Transacting with […]
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(Moscow Times – themoscowtimes.com – October 6, 2014) Year-on-year inflation hit 8 percent in September, driven up by the plummeting value of the ruble and Russia’s bans on many food imports from the United States and European Union, according to data from state statistics service, Rosstat. Rising food prices were the main driver, climbing 11.4 percent year-on-year in September, up […]
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(Bloomberg – bloomberg.com – Irina Reznik, Evgenia Pismennaya and Ilya Arkhipov – October 5, 2014) Russia’s wheels of power are grinding to a halt. That’s the assessment of five officials close to President Vladimir Putin, who say that a struggle at the heart of his inner circle is slowing decision making as sanctions squeeze the economy. With Putin focused on […]
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(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – October 3, 2014) Speaking at the Russia Calling Investment Forum, Russian President Vladimir Putin discussed the main direction in the development of Russia’s economy. Analysts believe that Russia’s main challenge will be keeping inflation under control – inflation that was partly brought about by the ban on food imports […]
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(Moscow Times – themoscowtimes.com – Delphine d’Amora – October 3, 2014) German Gref, head of Russia’s biggest lender Sberbank, on Friday castigated systemic inefficiencies in the Russian government that, he said, waste trillions of rubles and threaten to drag Russian society back into Soviet times. “We have inconceivable social costs in the area of public administration,” Gref said in a […]
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(Business New Europe – bne.eu – Ben Aris – Moscow, October 2, 2014) Leading Russian investment bank VTB Capital held a slimmed-down version of their annual investment conference on October 1-2. The event, “Russia Calling! 6th Annual VTB Capital Investment Forum” at the World Trade Center Moscow didn’t look cut down from the point of view of the number of […]
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NOVO OGARYOVO (outside Moscow), October 3 (RIA Novosti) – Russia has enough reserves to implement all the tasks under the state budget regardless of global political and economic trends, Russian President Vladimir Putin said Friday. “We certainly have reserves to resolve the issues that could arise as a result of developments of the situation in the world and in Russia,” […]
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(Business New Europe – bne.eu – October 3, 2014) Ukraine’s President Petro Poroshenko reaffirmed to foreign investors that his goal is for Ukraine to ultimately join the European Union, and for this sweeping reforms are necessary. “This involves a significant number of reforms and solving problems. It’s hardly possible to conduct 62 reforms simultaneously, but we have no choice,” Poroshenko […]
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MOSCOW. Oct 2 (Interfax) – Russia has no intention of ending its relations with its traditional partners, including Europe, and expansion of cooperation with China is a global trend, Russian President Vladimir Putin said. “Russia is also thinking about expansion of cooperation with China, and it didn’t begin thinking about it yesterday or due to some sanctions or political restrictions. […]
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(Moscow Times – themoscowtimes.com – Alexey Eremenko – October 1, 2014) It seems unfeasible that Russia, which holds a fifth of the planet’s forests, could run out of wood. And yet it is happening, at least with commercially usable forests, environmental analysts say. The Russian logging industry will face lack of harvestable timber in 10 to 20 years, a short […]
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(Moscow Times editorial – themoscowtimes.com – September 30, 2014) This story begins a series of analytical articles and editorials in The Moscow Times about Russia’s long-term strategic prospects. It is strange to recall in 2014 that back at the beginning of his rule, President Vladimir Putin was hailed as a reformer. His main agenda during his first term in the […]
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(Moscow Times – themoscowtimes.com – September 29, 2014) The ruble sunk to a record low against the Central Bank’s currency basket Monday, continuing a steady slide that has seen it lose over 15 percent of its value this year. The Russian currency dropped during morning trading and was worth 44.37 against the euro-dollar basket shortly after midday, its lowest level […]
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(Window on Eurasia – Paul Goble – Staunton, September 24, 2014) The eight developments Russians identified as of their greatest fears are all coming true, and that pattern regardless of what else happens undermines the stability of Russian society and the Russian state, according to Moscow economist and commentator Yevgeny Gontmakher. In August, Russians were asked by Levada Center pollsters […]
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(Business New Europe – bne.eu – Chris Weafer of Macro-Advisory – September 25, 2014) Chris Weafer is Senior Partner at Macro-Advisory, which offers bespoke Russia-CIS consulting. The main focus of Western sanctions against Russia has been to cause disruption to the banking and oil sectors. The former has directly squeezed the availability of liquidity on the domestic interbank market and […]
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(Business New Europe – bne.eu – September 25, 2014) Consumer demand in Russia, around half of its $2 trillion economy, and the key growth driver over recent years, is stalling over the crisis in Ukraine, according to a World Bank analysis of the economy. Consumption growth will slow to 0.5% in 2015 and 0.6% in 2016, down from around 2% […]
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(Russia Beyond the Headlines – rbth.ru – Vladimir Mau, special to RBTH – September 24, 2014) Vladimir Mau is the rector of the Russian Presidential Academy of the National Economy and Public Administration. Mutual sanctions are always extremely unpleasant, and the application of sanctions and the “hot” trade war between Russia, Europe and the United States can have no good […]
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GORKI. Sept 9 (Interfax) – The state will continue to provide support to Russian business amid the Western sanctions, Russian Prime Minister Dmitry Medvedev said during a meeting with NOVATEK (MOEX: NVTK) CEO Leonid Mikhelson. “You can have no doubt that in the face of such unfair actions the state has always supported and will support Russian business,” Medvedev said. […]
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(Moscow Times – themoscowtimes.com – September 9, 2014) Nearly 25 percent fewer people visited Moscow’s malls in the week leading up the start of the school year than in the same period of 2013, a survey said, indicating that Western sanctions and an economic slowdown are hitting Russian consumer demand. A report by consumer market research firm Watcom cited by […]
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MOSCOW. Sept 9 (Interfax) – Russia dramatically reduced imports of products that are under the food embargo in August compared with July. The food embargo was imposed on August 7, 2014. According to the Federal Customs Service (FCS), vegetable, dairy, poultry and pork supplies declined the most dramatically. So, in August the cost of imports of vegetables amounted to $35.3 […]
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MOSCOW. Sept 8 (Interfax) – The Federal State Statistics Service (Rosstat) has affirmed its preliminary estimate of 0.8% year-on-year GDP growth for the second quarter of 2014, the agency said. GDP was 17.697 trillion rubles in current prices in Q2. Rosstat published its preliminary estimate for Q2 in the middle of August. The Russian Economic Development Ministry estimated the economy […]
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(Interfax – September 8, 2014) The Russian economy is projected to grow 0.5 percent this year, and while this is not a very good figure, the situation in other countries does not differ much from Russia, Russian Prime Minister Dmitry Medvedev said in an interview with Russian newspaper Vedomosti. “We have focused on significantly higher growth rates. Now we are […]
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MOSCOW, September 7 (RIA Novosti) – Russia is not planning to change its development course, despite being subject to external disturbances, according to Russian Prime Minister Dmitry Medvedev. “The conditions for economic development, for the development of the country and people’s lives are certainly not simple. Speaking bluntly, as a member of the country’s leadership, I can say that I […]
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(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH -September 1, 2014) The Russian Economic Development Ministry has considerably revised its forecast for economic development parameters for 2015-2017 for the worse. These include a drop in oil and gas production and lower oil prices. Experts predict that the forecast may be further revised, either up or down, as early […]
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(Moscow Times – themoscowtimes.com – August 26, 2014) Three of every four Russian university students would prefer to work abroad rather than in Russia, Newsru.com reported Monday, citing a survey conducted by Career.ru. The survey revealed that 77 percent of Russian students found the prospect of overseas employment more appealing than working at home. Those most hopeful for overseas jobs […]
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(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – August 25, 2014) Low price-per-barrel for Urals crude oil is putting pressure on the Russian budget On Aug. 18, Reuters reported that the price for Russia’s benchmark Urals oil fell to $98 a barrel – its lowest level since May 2013. Even as recently as July, Urals crude was […]
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MOSCOW, August 26 (RIA Novosti) – Russia’s Ministry of Finance expects an average oil price of $90-95 per barrel in 2015, Deputy Finance Minister Alexei Moiseyev told RIA Novosti on Tuesday. “The price for oil in 2015 will be $90-95 per barrel,” Moiseyev said. The Ministry of Economic Development earlier predicted an average oil price of $100 per barrel over […]
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MINSK. Aug 26 (Interfax) – The association agreement signed between the European Union (EU) and Ukraine could cost Russia billions and force it to introduce protective measures, said Russian President Vladimir Putin. “Due to Ukraine adopting zero duties on EU imports (which is to take effect almost immediately after the ratification of the agreement and will affect 98% of the […]
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(Russia Beyond the Headlines – rbth.ru – Kira Tverskaya, special to RBTH – August 19, 2014) Economists point out that the Russian government’s recent food ban is likely to backfire as restaurants and consumers look for new sources for favorite products Moscow’s home cooks and restaurateurs alike have spent the past two weeks scrambling to find new sources for the […]
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(Moscow Times – themoscowtimes.com – Alexander Panin – August 20, 2014) The price of Urals crude oil, Russia’s key export and the lynchpin of its government finances, fell below $100 this week for the first time in more than a year, after plummeting $15 in under a month. Russia relies on hydrocarbon exports for 50 percent of its budget. Already […]
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(Business New Europe – bne.eu – Graham Stack in Kyiv – August 20, 2014) The Russian-backed insurgency in the Donbass region of east Ukraine is forcing numerous industrial giants to suspend operations. With the region accounting for over 25% of Ukrainian exports, the effect will hit hard currency revenues and the embattled hryvna. The flashpoint marking the start of the industrial collapse […]
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(Oilprice.com – Robert Bensh – August 18, 2014) Ukraine’s next crisis will be a devastatingly economic one, as violent conflict destroys critical infrastructure in the east and brings key industry to a halt, furthering weakening the energy sector by crippling coal-based electricity production. The Ukrainian military’s showdown with separatists in the industrial east has forced coal mines to severely cut […]
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(Moscow Times – themoscowtimes.com – Alexander Panin – August 18, 2014) The European Union’s united front on Russia sanctions seems to be buckling, as Eastern European countries hit hardest by Moscow’s retaliatory food import bans begin to question the wisdom of wrecking their economies in the name of a strategy that has seen the crisis in Ukraine only escalate. Hungarian […]
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(Moscow Times – themoscowtimes.com – Delphine d’Amora – August 15, 2014) Russian politicians have declared the recent bans on Western imports a golden opportunity for Russian agriculture – but farmers and economists warn that upping production is a question of years, not months, and closing the market will not be enough to solve its problems. Against a background of international […]
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(Moscow Times – themoscowtimes.com – August 15, 2014) After a 20-year hiatus, direct Soviet-style price controls on the retail sector may be coming back, as the government strives to fight price hikes in supermarkets following Moscow’s decision to ban swathes of Western food imports in retaliation for sanctions over the crisis in Ukraine. The Federal Anti-Monopoly Service – the government’s […]
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(Business New Europe – bne.eu – Danske Bank – August 13, 2014) We analyse the economic and financial impact of the Ukrainian crisis with a special focus on our footprint Nordic markets. We view the situation in Ukraine as far from de-escalating as fighting continues in Donetsk and Lugansk, which we expect to weigh on market sentiments near term. However, […]
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(Moscow Times – themoscowtimes.com – August 13, 2014) Fewer Russians are concerned about inflation than they were a month ago, a new poll published Tuesday showed, even as analysts warned recession was inevitable and that a ban on many foreign food items would push up prices for consumers. The state-run Russian Public Opinion Research Center found that between June and […]
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(RFE/RL – rferl.org – Vladimir Abarinov – August 11, 2014) When Nadezhda Tolokonnikova arrived at penal colony IK-14 in August 2012, a deputy warden proudly announced: “As far as my political convictions go, I am a Stalinist.” Tolokonnikova soon learned what that meant in practice. One year into her sentence for “hooliganism motivated by religious hatred,” the Pussy Riot activist launched a hunger strike […]
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MOSCOW. Aug 11 (Interfax) – Russian year-on-year GDP growth slowed to 0.8% in Q2 2014, from 0.9% in Q1, the Federal State Statistics Service (Rosstat) said in a preliminary estimate. The Economic Development Ministry estimated the economy would grow 1.1% in Q2. Rosstat will unveil more details in the middle of September. The Econ Ministry thought GDP would grow 0.1% […]
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SOCHI, August 11 (RIA Novosti) – Kremlin spokesman Dmitry Peskov said Moscow has a wide range of possible responses to Western sanctions under the rules of the World Trade Organization that can be used by any member. “There is a whole range of measures and defined tools within the WTO which, of course, each WTO member state has the right […]
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WASHINGTON, August 7 (RIA Novosti), Lyudmila Chernova – Russia’s food embargo is a smart move on Moscow’s part that is set to show the United States and its allies that Russia is not going to give in to Western pressure, an American economist and co-director of a US-based research center told RIA Novosti Thursday. “It is smart of Moscow to […]
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MOSCOW. Aug 8 (Interfax) – Russia’s response to the anti-Russian measures taken by the West was forced and further unwinding of the “sanctions spiral” is absurd and dangerous, Russian State Duma Speaker Sergei Naryshkin said. “As to the measures taken by Russia on the countries that initiated or support anti-Russia sanctions, they are a response aimed at protecting our citizens […]
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MOSCOW. Aug 7 (Interfax) – The countries from which Russia has just banned food imports supply over 10% Russia’s pork, fish and fruit, Agriculture Minister Nikolai Fyodorov told a briefing. Russia consumes 2.345 million tonnes of beef, but the embargoed suppliers, the EU, United States, Australia, Norway and Canada supply 59,000 tonnes of this. The figures for pork are 3.415 […]
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MOSCOW. Aug 7 (Interfax) – Russian Prime Minister Dmitry Medvedev has said that Russia is considering a potential ban on European and U.S. air carriers using trans-Siberian routes as a possible retaliatory step against Western sanctions targeting Russia’s low-cost airline Dobrolet. “The government of the Russian Federation is considering a number of retaliatory steps. But it does not mean that […]
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(Moscow Times – themoscowtimes.com – Alexey Eremenko – August 6, 2014) The recent Western sanctions, the harshest in decades, are meant to stun Russia’s economy. But one person’s loss is another one’s gain – and this is also true for companies and countries in a globalized world. Following the U.S.’s example, the European Union last week imposed broad economic sanctions […]
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MOSCOW, August 5 (RIA Novosti) – Happiness index in Russia has remained at 78 points for the past three months despite the increasing sanctions burden, according to the country’s opinion research agency VCIOM. A public opinion poll conducted by the All-Russian Public Opinion Research Center (VCIOM) showed Tuesday that the “satisfaction with life” index has remained unchanged at 78 points […]
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MOSCOW. Aug 5 (Interfax) – The figures of social wellbeing of Russian citizens are at record levels for the third month in a row and the index of assessing economic situations reached historical maximums in July, the All-Russia Public Opinion Research Center (VTsIOM) said on Tuesday. Sociologists calculated the index of Russian satisfaction with life, which rose to a record […]
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(Moscow Times – themoscowtimes.com – Alexander Panin – August 4, 2014) The impact of the EU’s latest and harshest sanctions on Russia will be felt most keenly in the country’s economic sectors that are largely dependent on state-of-the-art Western technology, ranging from the extraction of hydrocarbons to civil aircraft production, analysts said. The European Union late last week officially approved […]
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(RFE/RL – rferl.org – Charles Recknagel – July 30, 2014) The latest round of EU and U.S. sanctions over Ukraine will restrict Moscow’s access to what Russia arguably needs most: Western financing and new technology. Here are five things to know about the sanctions and their impact. How much could the sanctions hurt Russia? This batch of sanctions comes at […]
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