Russian Economy General News: #1

sepheronx wrote:Surprised Kurdin is even talked about anymore. That guy did squat for Russias development.and economy and he was let go, so he pretty sore about it. Its best to ignore his "professional" understandings.

Kudrin is respected even by his worst opponent , Even Putin respects him for speaking his mind.

A lot that Russia achieved today is due to Kudrin financial policy in the decade he was finance minister.

We would know in 2016 if the Finance Ministry which predicts $30 Billion shortcoming or Kudrin $90 billion shortcoming is true.

Till then lets wait and see.

One more major Oil Deal with China and big Gas deal expected by end of this year

Russia and China strengthen trade ties with $85 billion oil deal

Under the new energy deal, Rosneft, the world’s largest-listed oil producer, will supply China with up to 100 million tons of crude oil over 10 years. The agreement is testimony the neighbors have "reached a higher and a brand new level of cooperation,” Prime Minister Dmitry Medvedev said during an online chat with Chinese citizens, Xinhua reported.

Rosneft will export through China’s Sinopec, company chief Igor Sechin said. Up to 30 percent of the shipment payments will be prepaid. Rosneft controls nearly 40 percent of Russia’s crude oil.

Medvedev is on an two-day official visit to Beijing and met with Chinese Premier Li Kegiant and Zhang Yujing, the president of the Chamber of Commerce, at the 18th annual economic summit of Russian and Chinese government and finance ministers.

"The collaboration in the energy field is key to bilateral cooperation. I hope the deals we signed today can be implemented in an orderly way and those deals that are still under negotiation, such as natural gas deals, can reach an agreement very soon,” Medvedev said in Beijing.

Liquefied natural gas is another point of the energy negotiations, as Novatek, Russia’s biggest independent natural gas producer, signed preliminary memorandums with CNPC on Tuesday to sell at least 3 million tons of LNG per year between Yamal LNG and PetroChina International. The partners still need to finalize delivery contracts and pricing, which will be announced before the end of the year. Currently, Russian gas is not supplied to China.

Under Russian law, neither company is allowed to trade LNG abroad, only state-run Gazprom is allowed to ship to foreign markets. Both Rosneft and Novatek may be eligible to export LNG starting December 2013, if Russia’s Energy Ministry awards the companies permits.

Russia, holder of the world’s biggest natural gas reserves, is looking to China as a key energy market as demand from Europe remains weak and the Americas are becoming more self-sufficient in their energy needs.

Rosneft, which is 75 percent state-owned, is vastly expanding its LNG projects to diversify its portfolio, and is focusing heavily on eastern markets, like Japan and China.

Rosneft and China National Petroleum Corporation (CNPC) struck a $270 billion contract over 25 years at the St.Petersburg Economic forum in June, and secured advance payments from China to help finance its $55 billion acquisition of TNK-BP.

China will pump $20 billion of investment into domestic projects in Russia focusing on transport infrastructure; highways, ports, and airports, and they hope to increase investment in Russia four-fold by 2020. By the same year trade turnover between the two countries is expected to reach $100 billion.

Russia Jumps Up 20 Spots in ‘Doing Business’ Rankings

http://en.ria.ru/russia/20131029/184404287/Russia-Jumps-Up-20-Spots-in-Global-Doing-Business-Rankings.html

Hopefully more investment will follow

Viktor wrote:Russia Jumps Up 20 Spots in ‘Doing Business’ Rankings

http://en.ria.ru/russia/20131029/184404287/Russia-Jumps-Up-20-Spots-in-Global-Doing-Business-Rankings.html

Hopefully more investment will follow

Nonsense rating. Just gave a quick glimpse. My country is at 17th place. I'm actually laughing at this crap.

Regular wrote:Nonsense rating. Just gave a quick glimpse. My country is at 17th place. I'm actually laughing at this crap.

Agreed.
We're No.25 two spots ahead of Japan... 

Laughable (to say the very least).

FACTBOX-Rosneft's China oil plays  

Shale revolution hits Russian exporters

And something on US Economy

5 simple facts about US ‘easy money’

Regular wrote:

Viktor wrote:Russia Jumps Up 20 Spots in ‘Doing Business’ Rankings

http://en.ria.ru/russia/20131029/184404287/Russia-Jumps-Up-20-Spots-in-Global-Doing-Business-Rankings.html

Hopefully more investment will follow

Nonsense rating. Just gave a quick glimpse. My country is at 17th place. I'm actually laughing at this crap.

Yeah... but take into consideration that there are countries in which even registering a company takes months and costs more than an average person earns in 10 years.... your country isn't that bad really.

This is indeed a huge success for Russia.

the ranking is not that expressive, the IEF a lot more, we are #139, no freedom only bouracrat pigs

NationalRus wrote:the ranking is not that expressive, the IEF a lot more, we are #139, no freedom only bouracrat pigs

It's always fun to read the organizations spew and then look up to where they are located.

Ultimately, even if Russia had total free market, they would still be low on the rating simply because it's Russia.

Freedom is a term coined by people who dont have freedom. True freedom is anarchy. There are beaurocratic pigs in every country and we are as free as we are told. Follow the laws, dont question what we do, treat everyone the same even if they will not back at you, etc etc. Be a conformist.

It's always fun to read the organizations spew and then look up to where they are located.

Ultimately, even if Russia had total free market, they would still be low on the rating simply because it's Russia.

The rankings say so and so because Western and East Asian countries are generally more market oriented than others. Can you imagien a country where starting a company or getting a construction permit takes months and requires massive bribes to be paid to the authorities? A lot of African, South American etc. countries are like that.

Read the "Doing Business" ranking http://www.doingbusiness.org/rankings. They have a detailed description of every country, including procedures required to start a company, get a construction permit, get electricity etc. Compare the description of Hong Kong to that of Zimbabwe.

Ex-Finance Minister Kudrin Joins Putin’s Economic Council

sepheronx wrote:

NationalRus wrote:the ranking is not that expressive, the IEF a lot more, we are #139, no freedom only bouracrat pigs

It's always fun to read the organizations spew and then look up to where they are located.

Ultimately, even if Russia had total free market, they would still be low on the rating simply because it's Russia.

Freedom is a term coined by people who dont have freedom. True freedom is anarchy. There are beaurocratic pigs in every country and we are as free as we are told.  Follow the laws, dont question what we do, treat everyone the same even if they will not back at you, etc etc. Be a conformist.

bunch of BS, it good analyzed why its ther and whats wrong with it, ther will be no ratings that puts russia higher or more free becouse it just isnt! its a currupt beurocratic shithole, and i am for market anarchy, would sign in any day, the #139 place is well deserved, if you want to open up a buisness = try to build somthing, give people jobs and enrich society by offering them somthing they might want, the goverment will make sure it throws every stick and brick it has at you befor you can do it, and when you even are allowed at the end you still have to bribe some hands befor and after to get that shity pice of paper = shithole of economic system.

but the worst part is, we deny it, "oh i dont belive that rating" what does it mather if we are #139 or #132, we are in a fucking mess, deep up to the nose in shit so we need to adress it and fight it and not BS around about if we might not deserve a couple of places more further up on the list

Actually, I know 2 Russians who own a business there and 1 that monitors the companies finance and they all tell me different story. I was also told it depends where you open a business as to how well you will do. What you are saying is something from 90's and it has changed.

It may come as a surprise to you, but if you follow my thread on modernization of Russia, a LOT of those new facilities are results of foreign and domestic investments, of private funds. If it was what you say it was, then these would not be the results. Problem with these "observers" is that their views are a gross simplification of a whole view, without doing a decent job of actually breaking it down.

Bearuocracy is an issue, but it is just a hurdle. Till you actually open up a business, then lets see.

Btw, nice quote from one of the most sickest and evil men in the world. You must be someone real special.

someone got some connections, someone gt lucky, well great so everything i fine, fantastic.....  
and big corporations talking with the goverment directly to get a free pass only shows what a corrupt, and corporatist state we are a fucking beurocratic corrupt shithole we are, you need to be a big corporation with ties to the big ones to get somthing done, that help all the entrepreneurs running and wanting to start a business alot, all the hands they have to bribe all the mountains of paperwork they have to do, and even paying protection money to police, you must be realy brave, a genius who found a exceptional market gap to fill, or just a fucking moron to start a business in russia

reading pink glass news from the succesfull big ones doesnt help shit, and its a qoute from a great man who saved his country from red terror and economic suicide

Yes, I'll give you that as it is well known that connected businesses and large corporations are given special privalege because of having more money to "gift". Out of the three guys I know, 1 does get bugged by some authorities (he doesnt give in though and still doing fine) the other doesnt get bugged at all (small it company) and third states that sometimes they do and sometimes they dont get bugged. He said if you do not give in, you have higher chance of nothing happening to you, if you do, then you have high chance of getting real good deals to become successful fast, but also a chance to get caught and sent to jail or lose company. From learning of others real life experience, it really comes down to regions. Southern Siberia I heard it isnt bad or hard, in vladivostoc, its pretty hard or real hard and in west...real hit and miss.

You dont need to be corrupt or bribe in order to succeed over their. But it will take longer for a lot of stuff if you dont (month to get business license vs a week tops if bribe, or getting good deals and contracts for little work). A lot of the applications are now done in government buildings behind a computer. Very little people interaction. I think it was a move to curb the corruption part of it. Worked in some areas and not in others.

In a fairness though, you'll be surprised how big business does out here to get big... I know not even same level as Russia, but it can be found everywhere to an extent.

The three guys - of the two who own business does very well, with one doing all legit while other does do dealings. The other guy, the company he works for does do things legitly, and it does well, but admits it took long time and had hurdles to cross.

When will the Shale Bubble Burst?

Austin wrote:When will the Shale Bubble Burst?

Good to hear for Ukraine. Just the problem is how much will the cost be? With Ukraine's massive agriculture land, im surprised they dont have any ethanol plants, and you would figure they would spend money on building these plants and have a leverage over Russia. Cost would be high but probably no higher than the shale oil that they will extract.

This is good for Russia as this will force the country to make a change so that they continue to make money. With the high prices of oil from shale, to stay competitive, they will have to reduce costs of their oil.

Bug push for shale in Ukraine and Poland is because of very low safety standards and eco standards, so that they can pump in in Ukraine for cheap and not worry about spills. Europe is looking for alternative to Russian oil and gas. Dont really blame them but is a good indication that Europe doesnt trust Russia and thus Russia should not trust them either.

sepheronx wrote:

Austin wrote:When will the Shale Bubble Burst?

Good to hear for Ukraine. Just the problem is how much will the cost be? With Ukraine's massive agriculture land, im surprised they dont have any ethanol plants, and you would figure they would spend money on building these plants and have a leverage over Russia. Cost would be high but probably no higher than the shale oil that they will extract.

This is good for Russia as this will force the country to make a change so that they continue to make money. With the high prices of oil from shale, to stay competitive, they will have to reduce costs of their oil.

Bug push for shale in Ukraine and Poland is because of very low safety standards and eco standards, so that they can pump in in Ukraine for cheap and not worry about spills.

You just had to turn this into another Ukraine bashing discussion, didn't you?! Well, your  Ukrainophobia is showing...you better zip that zipper up, cause I ain't impressed (I imagine the ladies never were either)!

sepheronx wrote:Europe is looking for alternative to Russian oil and gas. Dont really blame them but is a good indication that Europe doesnt trust Russia and thus Russia should not trust them either.

Your real name must be Sherlock Holmes!

And, of course you don't blame the 'Europeans', how could you?! They ACTUALLY have a right to create their own domestic/foreign/economic policy (you seem to be excluding the Ukrainians from them, may I ask why?) what sort of Geography did you study in High school/college, and what countries actually form Europe in the textbooks you've read? I know you never took Language Arts, judging by that poor excuse for spelling, but your lack of knowledge in geography is staggering!

I like when people think of Europe as one monolith.
Thanks god it's not.
Good news (on a small scale) for Russia. Shale gas extraction in Lithuania has been delayed. It seems that certain elements in goverment don't like idea of us having diversity in energetical sector. Perhaps they are happy with gazprom prices? (dearest in EU)

Regular wrote:I like when people think of Europe as one monolith.
Thanks god it's not.
Good news (on a small scale) for Russia. Shale gas extraction in Lithuania has been delayed. It seems that certain elements in goverment don't like idea of us having diversity in energetical sector. Perhaps they are happy with gazprom prices? (dearest in EU)

As much as I like hearing what you're saying, I don't think that European countries actually have a say in what their policies are...
I know for certain that my country doesn't (although our governments act as if they do - but they actually do whatever they're told to - by Brussels and Washington).

I should perhaps exclude the 'Major European players here like Germany, the UK, and France, or the countries that 'earned their say because of traditional diplomatic ties, and standing'.
Though in view of recent revelations, I tend to disbelief that as well.
So, what I reckon is that, if Lithuania doesn't extract shale gas, it'd probably be because of what they've been told that they should do (which may well be that you should just shut-up and import from The States), and certainly not because of what the Government believes is good for the country and your people. It could change in an instant (it sucks not to have an independent policy if you ask me!) should your partners advise you to...
Well either that, or another Baltic country 'with substantial influence' told the Government not to...
Sorry to be as honest as I am.
No offense intended really, just saying how I feel things stand.
(I wish things were different though  )

It all comes down to 'The carrot and the stick' and it's the major players that hold the biggest stick and the largest carrot (as much as it pains me to say).
But that's just reality...

Wow, a whole post and all you did was insult but not actually proved a point. Can you say useless post much? So lets break some facts down for you:

- Im on a smart phone for all postings for the last week plus a couple days from now as I have no internet connection. So screw off regarding language. In all honesty, such attack shows that you have no other opinion on the matter and only have to go find something else to be a dick about.

- So what if Ukraine is part of Europe continent? So is parts of Russia. Really, fact is, being located there doesnt make the people the same.

- Geography is one thing, history is another. Which it seems you lack cause your understanding of Ukraine is abysmal.

- Ukraine has very little in terms of environment laws, and thus if something happens during drilling, who do you think will be at fault? There is a reason why running a garment factory in Bangladesh is cheap, same reason (If you bothered to keep up with the news).

- If you want to continue on with the petty insults, then you will not last around as it is in the rules regarding it. If you bothered to read them.

If saying the truth regarding Ukraine is being a Ukrainianphobe (lol) then im fine being labeled as such. And im not sure what part of understanding of Geography I got wrong. As I never pointed out anything regarding of a location into question. I think, as you are pulling straws with your argument, is looking for something that isnt there.

Ukraine has been the main transit line for Russian Gas into Europe, and Ukraine has proven unreliable as they have failed to pay for their gas various times, and had been shut off for them, which wended up making parts of 'other Europe' (what else you want me to say? How about central and western as well?) Go cold for a short period of time. This push could very well help as it will lower the demand from Russia and up the leverage as well. Macedonian, you should be jumping for joy. No? Anyway, this will also mean more money in Ukraine's pockets as they need it, pretty bad too.

As price of oil is above 100$ this is good way to fill the budget 

Russia breaks oil output record

Nice chunk of money will come from tourism


Russia enters list of top 10 travel destinations





“Last year 26 million foreign tourists visited Russia. It is now the world’s number 9 most popular tourist destination. It is a result of hard work, including work on a political level”, he said. Other countries on the top-10 most visited countries list include France, USA, China, Spain, Italy, Turkey, Germany, UK and Malaysia.

2013 Russia Grain Harvest Rises 26% to 92 Million Tons

Viktor wrote:Nice chunk of money will come from tourism


Russia enters list of top 10 travel destinations





“Last year 26 million foreign tourists visited Russia. It is now the world’s number 9 most popular tourist destination. It is a result of hard work, including work on a political level”, he said. Other countries on the top-10 most visited countries list include France, USA, China, Spain, Italy, Turkey, Germany, UK and Malaysia.

Nice indeed. If only Russia was not getting bad publicity due to our stupid outbreak of Gay-phobia/ the occasional skin-head beatings, it would be even higher I think.

Hopefully Olympics will be big tourist breakthrough for Southern Russia. I would say Kavkaz too, but the situation there is not ideal for tourism, and wont be for another decade at best....

China is a top 10 visited country? How much of that is business and how much is tourism? Just doesn't seem like a very tourist friendly country outside of the huge "open" cities, but I guess that is what accounts for all of it.