Category: Economy, Business, Investment, Trade
NEWSLINK The Times (UK)/Mark Franchetti: “The last days of an oligarch” (Boris Berezovsky)
Russia continues to increase investments in U.S. Treasuries
(Interfax – August 18, 2015) Russia increased its investments in U.S. Treasury bonds in June by $1.4 billion, just as it did in May, according to data from the U.S. Treasury and the Federal Reserve System, published on Aug. 18. At the end of June, the volume of Russian-owned U.S. Treasury bonds stood at $72 billion. Russia is currently 19th […]
» Read moreRussian Press Digest (17 August 2015)
(opendemocracy.net – EDITORS OF OPENDEMOCRACY RUSSIA) This Monday, the Russian press reports on the import ban on foreign medicines, Rosneft’s taxes, and an attack by Orthodox activists on a Moscow sculpture exhibition. Kommersant opens with an article on new plans to ban imports of a range of medical products. Several large NGOs, including Vera and Podari zhizn, involved in medical […]
» Read moreRussia’s surprisingly stingy sovereign wealth fund
As disputes over budget spending intensify, the stability of NWF suggests fiscal conservatives in government can still fight their corner. (Business New Europe – bne.eu – Alex Nice, analyst at The Economist Intelligence Unit – August 18, 2015) [Charts here http://www.bne.eu/content/story/insiders-russias-surprisingly-stingy-sovereign-wealth-fund] Since the EU and US imposed sanctions on Russia’s banking, defence and energy sectors in mid-2014, there has been speculation […]
» Read moreU.S.-Russian Paper Startup Sees Massive Success Despite Political Tensions
(Moscow Times – themoscowtimes.com – Matthew Bodner – August 18, 2015) One of the largest office supply retailers in the United States has offered a group of young Russian and American entrepreneurs an exclusive distribution deal for a new sticky note developed by the team after raising almost $250,000 on crowd-funding site Kickstarter. Founded in January by two Russian cousins […]
» Read moreNEWSLINK The Hollywood Reporter: Movie Attendance Hits Five-Year High in Russia
NEWSLINK New York Times: Russians Feel Ruble’s Fall, but Putin Remains Mostly Unscathed
NEWSWATCH Wall Street Journal/Edward Lucas: “Russian Roulette. The regime has replaced institutions with one-man rule and treats criticism as treason. But it could get even worse.”
Writing in The Wall Street Journal, Edward Lucas reviews two books, Putinism by Walter Laqueur and Putin’s Russia edited by Leon Aron. Lucas assesses Putinism, unfolding under the extensive reign of Russian President Vladimir Putin, in a negative light: Making sense of Putinism is rather like trying to analyze a Russian salad. Unappetizing cubes of meat and vegetables lurk in […]
» Read moreNEWSWATCH Interfax-Ukraine: Ukrainian shadow economy reaches 47% of GDP in Q1, 2015 – Economy Ministry.
Interfax-Ukraine covers a report indicating a rise in Ukraine’s “shadow economy,” corresponding an overall drop in Ukrainian economic output. … the shadow economy in Ukraine in the first quarter … 2015 increased … 5 percentage points compared to the corresponding period in 2014, to 47% of official GDP, the Economic Development and Trade Ministry has reported …. * * * […]
» Read moreRussians Named Europe’s Least Productive Workers
(Moscow Times – themoscowtimes.com – August 11, 2015) The productivity of the Russian workforce is the lowest among European countries, according to a report issued Monday by the France-based international Organization for Economic Cooperation and Development, or OECD. In Russia, labor productivity – measured by the gross domestic product valued in U.S. dollars divided by the total number of hours […]
» Read moreEight Facts to Celebrate 100 Starbucks in Russia
(Moscow Times – themoscowtimes.com – Ilaria Parogni – August 12, 2015) American coffeehouse chain Starbucks Coffee celebrated the opening of his 100th Russian branch in Tuesday. The new venue is located inside the shopping center Galereya in St. Petersburg, the company announced on social media. Starbucks is currently holding celebrations at the new location and at the company’s flagship store […]
» Read moreRussian Press Digest 12 August 2015
(opendemocracy.net – EDITORS OF OPENDEMOCRACY RUSSIA) This Wednesday, the Russian press reports on import substitution, copyright news and the emergence of a new, Cossack currency in St Petersburg. This morning, business daily Kommersant leads with an article on import substitution-a commission devoted to the issue has just been set up, with Dmitry Medvedev its head. The commission’s first meeting took […]
» Read moreRussians Require Minimum Monthly Income of $350, Poll Shows
(Moscow Times – themoscowtimes.com – August 13, 2015) The minimum monthly income a household needs to make ends meet, according to the average Russian, is 22,755 rubles ($350) per person – nearly 2.5 times more than the official minimum cost of living in Russia, a survey by the Russian Public Opinion Research Center (VTsIOM) revealed. Respondents’ answers varied according to […]
» Read moreFractures Form Inside Russia’s Central Bank as Recession Deepens
(Bloomberg – bloomberg.com – Evgenia Pismennaya, Ilya Arkhipov – August 12, 2015) In his first stint as a top Russian central bank official in the early 1990s, Dmitry Tulin saw how flooding cheap credit to dying industrial giants delivered hyperinflation instead of growth. Now back as the bank’s monetary chief, Tulin, 59, has argued internally for easier credit and more […]
» Read morePoll: Banned food better be given to needy, orphans
(Interfax – August 13, 2015) Forty percent of Russians have backed the authorities’ decision to destroy embargoed food, while the number of opponents is a bit higher (48 percent), the Levada Center has told Interfax on Aug. 13. In the opinion of the respondents, the food would better be given to orphanages, homeless shelters or hospitals (43 percent) or be […]
» Read moreVIDEO: Conversation: Russia’s Perfect Economic Storm
(Stratfor.com – August 11, 2015) Video Transcript: Ben Sheen: Hello and thank you for joining us. My name is Ben Sheen, I’m a managing editor here at Stratfor, and with me today is Stratfor’s senior Eurasia analyst, Lauren Goodrich, who will be talking to me about the state of the Russian economy. So Lauren, Russia is struggling at the moment. […]
» Read moreRIA Novosti: Food spending taking up most of Russian household budgets – poll
(RIA Novosti – August 11, 2015) Food items are becoming the largest part of the household budget, particularly meat and chicken, according to a poll commissioned for the Bank of Russia by the Infom company, RIA Novosti (part of the state-owned International News Agency Rossiya Segodnya) reported on 11 August. “The main items Russians are cutting back on are groceries, […]
» Read moreWhy Putin Is Losing
(RFE/RL – rferl.org – Brian Whitmore – August 10, 2015) Are little green men about to appear on the North Pole? Russia’s claim last week, using an extremely creative interpretation of international law, to exclusive economic rights to nearly half a million square miles of the Arctic Sea, was certainly a head scratcher. Sure the territory is valuable due to […]
» Read moreInterfax: Main indicators of Russian banking system point to its stability – Nabiullina
MOSCOW. Aug 10 (Interfax) – The main figures from Russia’s banking system show that it is stable and in a safe zone, Central Bank head Elvira Nabiullina said at a meeting with Russian President Vladimir Putin. “The situation in the banking sphere is a lot like a mirror of what is happening in the economy. Of course, outside factors can […]
» Read moreNEWSWATCH New York Times: Kazan, a Russian Cultural Hub, Finds It’s Good at Sports
The New York Times covers Russian efforts to turn Kazan into a center for sporting events. A cultural hub for 1,000 years, the city has spent the decade since its 2005 millennium celebration reinventing itself as the cynosure of Russian sports. Since 2007, the city has hosted world and European competitions in field hockey, ice hockey, fencing, boxing, bandy and […]
» Read moreNew journal: Russian Politics
Subject: New journal: Russian Politics Date: Mon, 10 Aug 2015 From: Richard Sakwa <R.Sakwa@kent.ac.uk> I am on the Editorial Board of the new journal Russian Politics, which promises to be an important new venue for research devoted exclusively to Russia, covering politics, history, economy, international affairs and social matters. I would be most grateful if you could post the information […]
» Read moreWho Lost Russia (This Time)? Vladimir Putin
(The Washington Quarterly – twq.elliott.gwu.edu – Kathryn Stoner and Michael McFaul – Summer 2015) [Article also appeared at twq.elliott.gwu.edu/who-lost-russia-time-vladimir-putin] Kathryn Stoner is Senior Fellow at the Freeman Spogli Institute for International Studies and Director of the Ford Dorsey Program in International Policy Studies, Stanford University. Prior to coming to Stanford in 2004, she was on the faculty at Princeton University […]
» Read moreAbandoned Mistral Deal Still Divides Russian Officials, Analysts
(Moscow Times – themoscowtimes.com – Matthew Bodner – August 5, 2015) France has agreed to reimburse Russia for the two Mistral-class helicopter carriers purchased under a 2011 contract, ending a months-long dispute over the fate of Russia’s largest foreign arms purchase in the post-Soviet era. But the question of whether Russia really needs such expensive ships other than for mere […]
» Read moreRussian Official Lauds Condom Restrictions
(Moscow Times – themoscowtimes.com – Howard Amos, Anna Dolgov – August 6, 2015) A senior Russian official has praised plans to restrict condom imports as part of a drive to reduce reliance on foreign-made goods, suggesting Wednesday that a dearth of the rubber contraceptives will make people more “disciplined” and boost birth rates. Fewer condoms will make people “more strict […]
» Read moreRussians cheesed off as authorities destroy ‘EU’ food
(Business New Europe – bne.eu – bne IntelliNews- August 6, 2015) Nine tons of presumed EU-made cheese seized after entering Russia from Ukraine were bulldozed into the ground on August 6 as officials enforced Kremlin orders to destroy prohibited Western products, despite protests from citizens struggling with rising food prices. The first batch of hundreds of tons of food earmarked […]
» Read moreA Newbie’s Guide to Taking the Moscow Metro
(Moscow Times – themoscowtimes.com – Andreea Rujan – August 6, 2015) For tourists and residents alike, the metro is the simplest, cheapest and fastest way to get around the Russian capital. However, there are some basic things new arrivals should know before hopping on the subway in order to master the art of metro-riding like a true Muscovite. 1. Be […]
» Read moreRussians split over destruction of banned food imports
Russian is to destroy confiscated Western food products that fall under the Russian embargo at the border starting from August 6. According to the presidential decree, embargoed foods will be destroyed both at the border and after being seized from stores. However, some observers are calling on the government not to destroy the products, but give them to the needy. […]
» Read moreRBTH: Fresh U.S. sanctions will only boost import substitution – Russian experts
The extension of U.S. sanctions against Russia on July 30 will first and foremost lead to the strengthening of import substitution, say Russian analysts. However, with the blacklist now expanded to include branch companies of the country’s main development institute, Vnesheconombank, and Russia’s largest oil company, Rosneft, the realization of large infrastructure projects may seriously be affected. (Russia Beyond the […]
» Read moreIf Putin Remains in Power, Russia Will Become ‘North Korea 2.0,’ Gudkov Says
(Paul Goble – Window on Eurasia – Staunton, August 1, 2015) Kremlin claims notwithstanding, Russia has not reached “the bottom” of its current crisis because that crisis is systemic and not just the result of the decline in the price of oil and Western sanctions imposed in response to Moscow’s aggression in Ukraine, Gennady Gudkov says. All sanctions have done, […]
» Read moreRussian Food Prices Stabilize After Months of Racing Inflation
(Moscow Times – themoscowtimes.com – Anastasia Bazenkova – August 3, 2015) After a year of skyrocketing food prices that have forced many Russians to spend less on what they eat, the cost of many categories of food has finally begun to stabilize or fall, official data show. Food price inflation has been one of the harshest consequences for ordinary Russians […]
» Read moreNEWSWATCH Moscow Times/Sarah Lain: Russia Faces Facts on China
Writing in The Moscow Times, Sarah Lain, of the Royal United Services Institute, examines evolving Sino-Russian relations. Russia … cannot, and will not try to, compete with China’s growing economic influence … Russia’s leading multilateral economic foreign policy project … the Eurasian Economic Union … has … suffered from a variety of tensions …. Chinese investment via the Silk Road Economic Belt … could help […]
» Read moreAverage Bribe in Russia Doubles in Rubles, Remains Steady in Dollars
(Moscow Times – themoscowtimes.com – July 31, 2015) The amount of the average bribe in Russia has nearly doubled this year, reaching 208,000 rubles ($3,485 at today’s rate), as the country’s currency has shed value amid Western sanctions and an economic downturn, according to Interior Ministry estimates cited by pro-government Izvestia daily on Friday. This compares to about 109,000 rubles […]
» Read moreNo Quick Fix for Ukraine With Limp Revival Next After Recession
(Bloomberg – bloomberg.com – Agnes Lovasz – July 29, 2015) Ukrainians hoping the trough in their 1 1/2-year economic slump will usher in a rousing recovery are likely to be disappointed. The foreign demand that powered growth after the last recession in 2009 is largely absent. At home, a war with pro-Russian separatists has decimated industry, ravaged government finances and […]
» Read moreNew tolls on heavy trucks to raise funds for road repairs in Russia
Russia is to introduce a new system for collecting tolls from heavy trucks, with the proceeds – some 50 billion rubles ($896 million) a year – to go toward vital road repairs. Payment will be controlled by special gates set up on major highways. (Russia Beyond the Headlines – rbth.ru – Anna Kuchma, RBTH – July 28, 2015) Help may […]
» Read moreNEWSWATCH AFP: IMF: Ukraine economic picture ‘incredibly encouraging’
AFP reports on the IMF’s ongoing assessment of Ukrainian political and economic trends. Ukraine’s government is determined to undertake long-needed reforms, making the economic picture in the country very encouraging, International Monetary Fund Managing Director Christine Lagarde said Wednesday. * * * ‘Ukraine has been an incredibly encouraging situation,’ she said * * * Lagarde emphasized the gains that are being made, […]
» Read moreNEWSWATCH BBC: Russian debtors despair as boom turns to bust
The BBC covers the Russian economic crisis and the plight of Russians who took on debt during boom times only to face misery and potential disaster now. Millions of Russians took out loans during the economic boom years, but now they face crippling debts and the law is not on their side …. * * * … the Russian United Credit Bureau […]
» Read moreRussia’s Book Industry Wanes as Russians Stop Reading
(Moscow Times – themoscowtimes.com – Anastasia Bazenkova – July 30, 2015) More Russian bookshops are facing closure every year, shaking the publishing industry and threatening writing as a profession. Bookselling, never the most profitable retail business, is struggling to stay afloat thanks to expensive shop rental rates and decreasing interest from customers. In Moscow, considered the most well-read city […]
» Read moreEconomic Crisis, Uncertainty about the Future Pushing Russian Birthrate Down
(Paul Goble – Staunton, July 30, 2015) The Russian statistics agency reported yesterday that the birthrate in the Russian Federation had fallen to 12.6 children per 1000 population, lower than it has been at any point in the last three years and, according to experts, a reflection of both underlying demographic trends and current uncertainties about the future among Russians. […]
» Read moreRuble Fall Stokes Russian Holidaymaker Woes
(Moscow Times – themoscowtimes.com – Howard Amos – July 30, 2015) Alexandra Khomenok booked a European holiday earlier this month, but her plans hit a stumbling block this week as the ruble took an abrupt plunge, scraping four-month lows. While the 27-year-old PR manager has already bought tickets for herself and her husband to fly to Italy in September, they […]
» Read moreRussian Defense Industry Revenues Soar Despite Western Sanctions
(Moscow Times – themoscowtimes.com – Matthew Bodner – July 29, 2015) The Russian government bought defense equipment worth almost 2 trillion rubles ($33.2 billion) in 2014, Prime Minister Dmitry Medvedev said in April. Russia’s major defense industry enterprises shrugged off Western sanctions and a Russian economic slowdown to grow their revenues rapidly in 2014, according to a new global ranking. […]
» Read moreUkraine is ripe for the shock doctrine; Like many states in crisis before it, Ukraine serves as a perfect opportunity for neoliberal transformation.
(opendemocracy.net – Sean Guillory – July 27, 2015) Sean Guillory is a UCIS/REES postdoctoral fellow at the University of Pittsburgh. He hosts the podcast New Books in Russian and Eurasian Studies and received his PhD in History at UCLA. Follow him on Twitter @seansrussiablog While a crisis of faith, of sorts, has resounded in western discourse on the economic effectiveness […]
» Read moreClasses Aimed at Raising a New Generation of Russian Businessmen
(Moscow Times – themoscowtimes.com – Alexandra Tyan – July 28, 2015) The newly renovated VDNKh park in northern Moscow is investing in the future with the Young Investor School, which will open at Pavilion 14 early next month. Starting on Aug. 6, every Thursday and Friday, children between the ages of 8-14 can learn about the career of investment banking […]
» Read morePension Age for Russian Officials to Be Raised
(Moscow Times – themoscowtimes.com – July 28, 2015) Russia’s Labor Ministry plans to raise the retirement pension age for state officials to 65 from 60, according to a statement published Monday, as the government scrambles to cut spending amid a recession. The Labor Ministry said it had drawn up legal amendments that would bar officials from receiving retirement pay before […]
» Read morePower to the people; As Electric Yerevan showed, governments throughout Central and Eastern Europe and Eurasia will face the risk of social and political unrest when they move to compel their citizens to pay market rates for electricity.
(Business New Europe – bne.eu – Ben Aris in Moscow and Nick Allen in Berlin – July 27, 2015) The Electric Yerevan protests in Armenia burned brightly before police finally quashed them in early July. But the issue of electricity tariffs that sparked the protests will not go away: nearly half the countries in Emerging Europe also face a similarly […]
» Read moreU.S. may keep sanctions for years, Russia to run economy, trade accordingly – PM
(Interfax – July 24, 2015) Russia will be developing its economic and trade policies assuming that the United States may keep the sanctions it imposed on Russia over the Ukraine crisis for many more years, Prime Minister Dmitriy Medvedev has said. Interfax news agency quoted Medvedev as saying in an interview to the Slovenian newspaper DELO ahead of a visit […]
» Read moreNEWSWATCH Wall Street Journal/Stephen Hadley, Robert Zoellick: Crucial Weapons in the Defense of Ukraine. Without debt reduction and more aid, a young democracy could vanish.
Writing in The Wall Street Journal, Stephen Hadley and Robert Zoellick address the issue of Western assistance for Ukraine amidst the Russo-Ukrainian War, including financial and debt-related assistance. Russia’s aggression against Ukraine is an assault on the vision that emerged from the end of the Cold War of a Europe whole, free and at peace. For that vision to be realized, the […]
» Read moreMedvedev Upbeat About Russian Economy, Ties With Europe
(RFE/RL – rferl.org – July 24, 2015) Russian Prime Minister Dmitry Medvedev said he expects Russia’s recession-hit economy to start growing again at the end of the year, while he hopes for improving economic ties with friendly countries in southeastern Europe. “I think that the economy will return to the path of growth in late 2015, early 2016. It won’t […]
» Read moreUkrainian President’s Russian Candy Factory Wins Case Against Russian Taxman
(Moscow Times – themoscowtimes.com – July 23, 2015) A local court has sided with a Russian chocolate factory owned by Ukrainian President Petro Poroshenko in a dispute with the tax authorities, news agency RIA Novosti reported Wednesday citing a court statement. The decision is a rare victory for the Roshen Confectionary Factory in Lipetsk, about 440 kilometers south of Moscow, […]
» Read moreRBTH: Success in the U.S.: How Three young Soviet-born entrepreneurs made it; Strong family ties and work ethics were key for these young businessmen
(Russia Beyond the Headlines – rbth.ru – Aleksandra Efimova, special to RBTH – July 13, 2015) I recently spoke with three young entrepreneurs, each born in the Soviet Union. I wanted to discover if these sharp and accomplished young businesspeople shared common threads that could be followed back to their Soviet origins. Leon Oks, founder of iCanvas, is 34 years […]
» Read more