… Once prosperous enough to afford expensive Moscow apartments, they are now staggering under an economic burden fueled by geopolitical conflict and the plummeting price of oil. * * * Russia’s foreign-policy adventures … in Ukraine … in Syria — have tied up state resources …. The drop in energy prices has drained government coffers and sent the ruble skidding […]
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The U.S. has extended its economic sanctions regime against Russia. While the mass media kept quiet on the news, one or two outlets speculated about the possible reasons behind the decision as well as about the likely outcome of a coming EU vote on whether to follow suit. (Russia Beyond the Headlines – rbth.ru – NIKOLAI SHEVCHENKO, SPECIAL TO RBTH […]
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(Bloomberg – bloomberg.com – Anna Baraulina, Anna Andrianova – February 29, 2016) Fitch Ratings Ltd. said it will probably stop issuing local ratings on Russian companies under new rules that make it impossible to abide by European Union and U.S. sanctions against Moscow. The rules create a dilemma for international firms because they run counter to the penalties imposed by […]
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(Paul Goble – Window on Eurasia – Staunton, February 29, 2016) The maintenance of Western sanctions is contingent upon Ukraine’s willingness to reform itself, according to former Ukrainian foreign minister Vladimir Ogryzko. If Ukraine does not act, the West will ultimately lift the sanctions; and Ukraine will have only itself to blame for its resulting isolation. In a commentary today, […]
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(Moscow Times – themoscowtimes.com – Matthew Bodner – February 12, 2016) At last year’s Munich Security Conference, Foreign Minister Sergei Lavrov took to the stage to defend Russia’s actions in Ukraine. Scheduled between German Chancellor Angela Merkel and the U.S. vice president, Lavrov faced a tough sell. He did his best to toe the government line, declaring Russia’s annexation of […]
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The Wall Street Journal covers Russian economic vulnerability amidst falling oil prices and its possible impact on efforts to resolve the Russo-Ukrainian conflict . Ukraine’s political elite is hoping that plummeting oil prices will restrain neighboring Russia’s interventionist ambitions—and give Western sanctions on Russia a bit more bite. … diplomatic overtures have raised hopes in Kiev that Moscow—which annexed Crimea […]
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(RFE/RL – rferl.org – Brian Whitmore – February 9, 2016) As the shaky Minsk cease-fire agreement nears its first anniversary, Russia clearly smells blood in Ukraine. Pro-Moscow separatists have increased their attacks in Donbas in recent weeks. Kyiv officials are reporting 71 attacks a day in the vicinity of Donetsk, Horlivka, and Mariupol. Yesterday, Vladimir Putin ordered snap military drills […]
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(Moscow Times – themoscowtimes.com – January 29, 2016) Sanctions against Moscow can be lifted after it implements the Minsk peace agreement with Ukraine, including restoration of Kiev control over separatist eastern regions, the U.S. Ambassador in Moscow John Tefft said in an interview published on the U.S. Embassy’s website Thursday. Washington has the full backing of its European allies in […]
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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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(Interfax – January 22, 2016) Relations between Russia and the West are normalizing and sanctions will be lifted, Alexei Kudrin, a former Russian finance minister, said. “I’m sure the sanctions will start to soften at the end of this year or start of next year. Nobody in Russia wants to keep up confrontation. I think the Minsk accords will be […]
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MOSCOW. Jan 22 (Interfax) – Moscow is outraged by the revocation of accreditation from five of Russia’s honorary consuls in the United States, and sees it as a continuation of Washington’s line towards the scaling down of relations with Moscow, Russian Foreign Ministry spokesperson Maria Zakharova said. “We are outraged by Washington’s decision to recall accreditation from five of the […]
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The Financial Times covers the impact of Russia’s economic downturn on older Russians. Several Russian regions have over the past year been forced to suspend benefit payouts or stop the inflation indexing of public sector wages. … The dramatic slide in crude prices has slashed revenues from the export of oil and gas which account for more than half Russia’s […]
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(Moscow Times – themoscowtimes.com – January 13, 2016) The Russian ruble fell to 77 against the U.S. dollar on Tuesday for the first time since December 2014 as global prices for oil continue to slide, the RIA Novosti news agency reported. As of Tuesday morning, the Russian currency had slipped to 77.01 against the U.S. dollar and 83.80 against the […]
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(Voice of America – Bernard Shusman – January 6, 2016) Russian President Vladimir Putin gets a bad report card, even a failing grade, for his handling of the economic crisis in his country, according to 27 percent of analysts who participated in a major survey conducted by Bloomberg Business. These are hard times in Russia, with the collapse in oil […]
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(RFE/RL – Tom Balmforth – MOSCOW, January 3, 2016) 2015 has been a tough year for many Russians. The economy has been mired in recession. Dragged down by oil prices, the ruble has languished near record lows. The cost of a typical trip abroad has doubled in ruble terms, and U.S. and EU sanctions over Moscow’s interference in Ukraine have […]
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The difficult economic conditions have forced Russian businesses to reassess, which could be a good thing in the long run. (Russia Beyond the Headlines – rbth.ru – Ben Aris – December 21, 2015) Sanctions imposed by Western nations on Russia over its involvement in the Ukraine crisis and absorption of Crimea have hurt the country’s economy, but not mortally wounded […]
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Reuters covers Russian President Vladimir Putin’s admission at a press conference that Russian personnel are present in conflict-torn eastern Ukraine, even while disputing whether that meant regular Russian troops were present. … Putin said … Russia did have personnel in eastern Ukraine who were carrying out certain military tasks but denied Moscow had deployed regular troops …. ‘We never said […]
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(Interfax – December 11, 2015) The EU restrictive measures against Russia may not be prolonged on Dec. 14, a high-ranking EU official, who spoke on condition of anonymity, told reporters in Brussels on Dec. 11. The source assumed that the sanctions will be prolonged fully, but not necessarily on Dec. 14. The source said such a decision does not have […]
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(RIA Novosti – December 8, 2015) Russian ambassador to the People’s Republic of China Andrey Denisov has denied that Russia’s “eastward turn” – its visible attempt to improve relations with countries in the Asia-Pacific region, primarily China – was a response to the introduction of sanctions against Russia by several Western countries; rather, he said, it had been mooted over […]
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(Bloomberg – bloomberg.com – Volodymyr Verbyany, Jake Rudnitsky – November 30, 2015) Your enemy’s bank is your friend. Or so Ukraine wants to believe after giving Russian banks a pass more than a year and a half into a separatist insurgency it blames on the Kremlin. Banks including state-run lenders sanctioned by the U.S. and the European Union have clung […]
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(Interfax – November 21, 2015) Russia’s GDP would have been 1.5 percent higher if sanctions had not been imposed against Moscow, former Russian Finance Minister and Committee of Civil Initiatives Chairman Alexei Kudrin has said, pointing out that no positive effect from the sanctions has been seen in any industry. “The sanctions have considerably complicated the situation in the country. […]
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(Paul Goble – Window on Eurasia – Staunton, November 20, 2015) Ukrainian commentator Vitaly Portnikov argues that the goal of the Ukrainian government should not be “the restoration of territorial integrity at any price but rather the undermining of the economy of the aggressor country and the collapse of Putin’s political regime” (rus.newsru.ua/columnists/19nov2015/voprossroka.html). Western media say that the EU and […]
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(Bloomberg – bloomberg.com – Leonid Bershidsky – November 5, 2015) It’s difficult to quantify the damage Western economic sanctions have done to Russia. The country’s slump is almost exclusively due to a drop in oil prices, which has led to a sharp currency devaluation and a jump in interest rates. Yet the sanctions have fueled the Kremlin’s paranoia, lending Russia’s […]
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MOSCOW. Oct 28 (Interfax) – It is currently difficult to call the Russian banking system healthy, Sberbank (MOEX: SBER) deputy CEO Bella Zlatkis believes. “If two or three banking institutions in the country close per week, if this number increases by tens in a year, if a whole number of banking institutions are having problems with capital and liquidity, I […]
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(Moscow Times – themoscowtimes.com – October 23, 2015) The European Union has prohibited its financial institutions from publishing analytical research of the Russian banks under EU sanctions, the European Commission said in a statement. The European Commission, the EU’s legislative body, prohibited publishing research on Russian banks because the analysis contained in the reports could help investors in Russia make […]
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(Business New Europe – bne.eu – Ben Aris in Moscow – October 22, 2015) Things are pretty grim in the Russian economy, but some of the country’s leading economists are wondering if Russia Inc has turned the corner some 10 months after the biggest devaluation of the ruble since the 1998 crash. “September seems to have been the starting point […]
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(Business New Europe – bne.eu – Jason Corcoran in Moscow – October 21, 2015) Dedicated-Russia funds have become a rare species in the years following the 2008-2009 economic crisis. The country’s subsequent low growth, its current recession along with tumbling commodity prices and political isolation over Ukraine have almost led to their extinction. But what has become of these fund […]
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(Business New Europe – bne.eu – bne IntelliNews – October 19, 2015) Large investors are pessimistic about the outlook for the Russian market, according to a report by Global Counsel, which shows that some are reducing their exposure. Although some groups are holding their options open, and some are even seizing counter-cyclical opportunities, unless the business environment improves more groups […]
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(Moscow Times – themoscowtimes.com – Peter Hobson – October 20, 2015) Unpredictable lawmaking is undermining Russia’s ability to attract foreign investors, the Foreign Investment Advisory Council (FIAC) – a group of the biggest foreign companies working in Russia – told Prime Minister Dmitry Medvedev on Monday. A report by financial services group and FIAC member EY (Ernst & Young) into […]
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(Bloomberg – bloomberg.com – Ott Ummelas, Anna Andrianova – October 18, 2015) There may be a silver lining for the Bank of Russia in another batch of grim consumer data. While Governor Elvira Nabiullina has set a course for monetary easing to match slowing inflation, policy makers last month paused their easing cycle for the first time in 2015. The […]
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(Business New Europe – bne.eu – Chris Miller in Moscow – October 15, 2015) Though Vladimir Yakunin was sacked from his post as head of state-owned Russian Railways back in August, the shock is still reverberating through Russia’s biggest and most powerful companies. A long-time friend of President Vladimir Putin, Yakunin was thought to be one of the most influential […]
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(Interfax – October 15, 2015) Russians have had to adjust their consumer behavior to the ongoing economic crisis. Some 62 percent of them have switched to buying cheaper food and goods (against 58 percent in January), the Russian Public Opinion Study Center (VTsIOM) said. The number of people who have been buying fewer goods and spending less on their entertainment […]
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Participants of the recent International Investment Forum in Sochi say that U.S. and EU sanctions on Russia are impeding international investment in innovative start-ups, with foreign companies not aware of what they can do under the new conditions. Meanwhile, according to Russian observers, several new innovative clusters may be created in Russia, including in Sochi. (Russia Beyond the Headlines – […]
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The Russian government has announced that it is seeking to source equipment for offshore oil production from new countries due to the impact of sanctions by the European Union and the United States. However, as experts note, the development of Arctic fields is being hindered by low oil prices. (Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – […]
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(Moscow Times – themoscowtimes.com – Anastasia Bazenkova – September 25, 2015) A dramatic decline in consumer spending in recession-hit Russia has not scared foreign retailers away from starting new business in the country, research published on Thursday found. In the three months from July to September, 14 new foreign retailers have set up shop in Russia – two more than […]
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(Moscow Times – themoscowtimes.com – September 25, 2015) The Russian government may spend 240 billion rubles ($3.6 billion) on a national food stamp program to support an estimated 15-16 million Russian citizens whose poverty has deepened amid an economic slump, the RIA Novosti news agency reported Thursday. To deal with an economic shock that has spurred inflation into double digits […]
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(Oilprice.com – Colin Chilcoat – September 24, 2015) Winning and losing is largely a matter of perspective, and that’s no different in today’s low oil price environment. Still, certain data and metrics can provide a more incorruptible viewpoint on the carnage, or lack thereof. In that regard-and to the surprise of many-count Russia’s oil majors among the current winners. Ranked […]
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(Business New Europe – bne.eu – Ben Aris in Moscow – September 24, 2015) Russian banks are in a world of pain. Real incomes are falling for the first time since President Vladimir Putin has been on the job, and sanctions have cut banks off from their main source of long-term cheap financing. The upshot is that Russia’s financial sector […]
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(Moscow Times – themoscowtimes.com – Peter Hobson – September 23, 2015) The value of goods imported by Russia from outside the former Soviet Union tumbled 39 percent in the first eight months of this year compared to the same period in 2014, as a deep recession cut into the country’s buying power. According to preliminary data from the Federal Customs […]
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(Bloomberg – bloomberg.com – Olga Tanas, Andrey Biryukov – September 22, 2015) Russian President Vladimir Putin’s promises made as recently as last year may be the latest casualty of the collapse in oil prices. Putin instructed the government on Tuesday to study the possibility of steering into the budget some of the gains by exporters from ruble devaluation, without losing […]
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(Business New Europe – bne.eu – Jason Corcoran in Moscow – September 18, 2015) Deutsche Bank, a lender whose ties with Russia span 134 years, will exit its investment banking business in Moscow by the end of year following allegations its bankers laundered money on behalf of its clients, it was confirmed on September 18. The German bank’s corporate finance […]
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