Russian Economy General News: #1

Reading your drivel is annoying Austin.

Russia does produce a decent car called Granta. Look it up. Selling big time.

They produce civil end goods like refridgerators and such, they can be found on sdelnounas.ru

Civil sector has been increasing significantly in last 10 years actually. And end of cold war, majority of enterprises were private. They then later turnes state run when majority of shareholders of said companies were selling short to foreigners and running away from the country. Actually, you will still see this today but on a different level - the state contract for private firms feeding the soldiers and private repair facilities taking a lot of cash and doing nothing to the equipment that needs to be repaired for military. Then there is the banks that are not getting licenses from centeral bank due to laundering money and other illegal actions - Private. Should I also mention construction agencies as well?

Reason why you wont see Russian made everything is because the market is flooded by cheap Chinese and Indian crap. And no, neither of their economic policies is anything to adhere to, as they have created massive bubbles for themselves in terms of housing; which is their bigger end of the GDP growth, while majority of people are poor. At least Russia enjoys decent pay rates compared to these countries. As well, they are heavily depndant on others while US has very little in economic sense over Russia. Russia had to move to the cheaper end of producing housing as the bubble is/was being created in their country as well.

As well Austin, 25% of consolidated budget from natural resources and you think its a backwards economy? I would think your country with over inflating prices on junk property is backwards economy. You guys dont even produce a microprocessor for christ sakes while Russia induldges in RISC and CISC like x86 and SPARC. Far more diverse an economy than you may think.

Might I also add that Chinas economy is far mor centralized than Russia,especially control over enterprises that get most of wests investments. We have had problems time and time again from Chinese government interfering in all deals with businesses, including one I work for. There is also the fact that if you dont pay the right people off, they will firebomb your enterprise. Or threaten you.

Russias growth will be in the high tech fields like R&D of semiconductors, Heavy industrial goods, automobiles (Russia outsold Germany recently in number of cars built in Russia and sold), Energy and resources. Actually, they build NPP's for coubtries that you guys admire like China and India. Then there is the military sector which gives lots to civil sector, but thaf falls under heavy industry goods. Companies to look at is Avtovaz as they are to do more designs after success of Granta, and Rostech for....pretty much everything. They will be next Samsung as they are the ones funding development of nearly everything to do with technology in Russia.

https://www.google.ca/url?sa=t&source=web&rct=j&ei=FpbWUqeNC6GYyAGgmIGoDA&url=http://intsok.com/index.php%3Fid%3D2996%26download%3D1&cd=1&ved=0CCkQFjAA&usg=AFQjCNFjLTzlgozH2vbs4jmCtcvE98x-yQ

Civil goods in shipbuilding in Russia.

Russian dependence on oil & gas is more or less comparable to that of Canada , and less than Norway   

Nobody call these countries economically backward , Russian market is large and with extension to CIS and is more than enough to develop competitive economy and products. You can`t expect that agriculture will be competitive with EU because of quality Chernozem land , it takes time and lot of investments in infrastructure , machinery , technology , education etc.

zg18 wrote:Russian dependence on oil & gas is more or less comparable to that of Canada , and less than Norway   

Nobody call these countries economically backward , Russian market is large and with extension to CIS and is more than enough to develop competitive economy and products. You can`t expect that agriculture will be competitive with EU because of quality Chernozem land , it takes time and lot of investments in infrastructure , machinery , technology , education etc.

Agriculture and natural resources is our main and only economy in Canada for export. Rest is service imdustry and banking. We have automotive manufacturing that does well but thats about it. We only manufacture now heavy industrial products from USA or Germany.

Fashion is in Ontario, Toronto. Outside of that, we are far more dependant. The keystone pipeline debacle is hurting us. We are now turning to China in hopes of saving us. Potash company was recently saved from total buyout from China and Blackberry, our only remaining hih tech firm (Nortel used to be big, but gone now) is going bankrupt.

sepheronx wrote:Agriculture and natural resources is our main and only economy in Canada for export. Rest is service imdustry and banking. We have automotive manufacturing that does well but thats about it. We only manufacture now heavy industrial products from USA or Germany.

Fashion is in Ontario, Toronto. Outside of that, we are far more dependant. The keystone pipeline debacle is hurting us. We are now turning to China in hopes of saving us. Potash company was recently saved from total buyout from China and Blackberry, our only remaining hih tech firm (Nortel used to be big, but gone now) is going bankrupt.

Canada is lucky to have access to US market (minus Keystone    )

Russia is perfect middle between China and Western Europe in terms of economic development , economy does not escape geography too far   

Nanotechnology , Russia wasn`t on the map in that hi-tech field only few years back , now 53 enterprises , many of them built from scratch are producing nanotech products.

For results , years are needed and hard work.

Interesting official stastics on Russian Oil Exports

http://www.cbr.ru/Eng/statistics/print.aspx?file=credit_statistics/crude_oil_e.htm&pid=svs&sid=vt1

Viktor wrote:

etaepsilonk wrote:On a somewhat related note, there is a port being built in northern Iran, isn't it? If so, that would greatly serve Iran to work around those sanctions.

Yes, India is financing buiding of that port for the same reason   .

I'm sorry, but I don't think we are talking about the same ports. Indian built is in Chabahar bay or near it(?), while I was talking about the one near Bandar-e-Anzali (Caspian sea).

Also, the barter nature of this deal is kinda interesting. Maybe it's gonna finance some military purchases (like Mig-29 fighters)?

zg18 wrote:You can`t expect that agriculture will be competitive with EU because of quality Chernozem land , it takes time and lot of investments in infrastructure , machinery , technology , education etc.

EU agriculture is the last example Russia should follow....it's one of the most inefficient on the planet. Without the massive subsidies it wouldn't survive for long.

What Russia needs is more people willing to take up the farming life.


A few days ago, I read an article that Syria is negotiating a land lease in the south of Russia to form an agricultural enterprise (for grains and sugar production). Apparently up to 20 000 Syrian workers will be working there, while Russian companies will get the contracts for building the infrastructure and machinery.

I think food production will eventually become just as important for Russia as oil/gas production. It's also worth mentioning that Russia has the biggest reserves of clean drinking water.

Sneaky plan .....


Foreign Investors Wrecked Russian Defense Companies – Official

MOSCOW, January 15 (RIA Novosti) – Foreign investors deliberately bankrupted defense firms in the 1990s and Russia must act to prevent a recurrence, the head of Russia’s Investigative Committee said.

“The problem was that foreigners were involved directly or indirectly with the privatization process. They bought … defense companies and then bankrupted them,” Alexander Bastrykin

I think that Russia and the whole World learned a lot from Snowden files and thats just the tip of the iceberg

Cyberspec wrote:EU agriculture is the last example Russia should follow....it's one of the most inefficient on the planet. Without the massive subsidies it wouldn't survive for long.

I do know that , still EU agriculture is better than in Russia or Ukraine (but i think situation will change sooner or later)

http://www.reuters.com/article/2013/11/19/bc-russia-top-idUSnPn8nYbkj+88+PRN20131119

Russia's technological development is reflected by the companies represented in the study: 36% of them are ICT companies, 32% work in mechanical, instrument and electrical engineering. Some 18% work in pharmaceuticals and medical devices, 8% are involved in chemistry and environmental protection and 6% represent construction and materials. The rating collected data on more than 100 Russian tech companies.

The companies in the "TechUP-2013" Top-50 have a combined revenue of 67.131 billion rubles and an average growth rate 71.9%. Their collective spend on R&D was 5.644 billion rubles, representing 8.4% of their total revenue. Their expenditure on technological innovations totaled 11.472 billion rubles, or 17.1% of their revenue.

Hi-tech TOP 50 in Russia , rising fast from the bottom.

Viktor wrote:Sneaky plan .....


Foreign Investors Wrecked Russian Defense Companies – Official

MOSCOW, January 15 (RIA Novosti) – Foreign investors deliberately bankrupted defense firms in the 1990s and Russia must act to prevent a recurrence, the head of Russia’s Investigative Committee said.

“The problem was that foreigners were involved directly or indirectly with the privatization process. They bought … defense companies and then bankrupted them,” Alexander Bastrykin

I think that Russia and the whole World learned a lot from Snowden files and thats just the tip of the iceberg

An easy way to break the back of Defence Company and country .... thats what they did even with Asian Tigers in 90's

90's has been a lost decade that would haunt the Russian Nation for a long time to come.

Austin wrote:

Viktor wrote:Sneaky plan .....


Foreign Investors Wrecked Russian Defense Companies – Official

MOSCOW, January 15 (RIA Novosti) – Foreign investors deliberately bankrupted defense firms in the 1990s and Russia must act to prevent a recurrence, the head of Russia’s Investigative Committee said.

“The problem was that foreigners were involved directly or indirectly with the privatization process. They bought … defense companies and then bankrupted them,” Alexander Bastrykin

I think that Russia and the whole World learned a lot from Snowden files and thats just the tip of the iceberg

An easy way to break the back of Defence Company and country .... thats what they did even with Asian Tigers in 90's

90's has been a lost decade that would haunt the Russian Nation for a long time to come.

And 90% of it is due to theft by Russians themselves.

Things were so bad in the country itself, we didn't even need external influence to wreck things

Agreed most of the money was and is stolen by Oligarch and by its own people , The Foreigners just act as catalyst to speed up the process.

Check the news here from Gaidar Conference lots of interesting data , its from Jan 15-18

http://www.gaidarforum.ru/en/news.php

US will simply impose economic sanction Russia and Iran or their respective banks. They have already warned on this. So it would be naive to go with such deal.

High Speed Railway Postponed   

Medvedev: Russia’s government to postpone Moscow-Kazan high-speed railroad project

Austin wrote:US will simply impose economic sanction Russia and Iran or their respective banks. They have already warned on this.  So it would be naive to go with such deal.

Well such logic implies that Russian can right this moment surrender keys of the Kremlin to the US ....    

This is a huge deal that is beneficial to the Russian economy. Russia will not let go just because of spam coming across Atlantic Ocean. Furthemore such deal can also be considered as a

ground stone of the other similar deals that will surely follow.



In line with the economic philosophy of the new financial minister.

Russia needs to boost small businesses in 2014, Medvedev tells Gaidar Forum

Iran is a special case and it enjoys lot of support in US politics and even in Israel since Iran is perceived as anti-Israel.

US enjoys total economic monopoly and can afford to sanction Russia without getting hurt in return , Only China cannot be sanctioned by US as it will hurt US equally.

Unless Russia intends to fight with US on this then its ok else its not wise.

Myths about Russia: is everything done by the state in Russia's economy?

sepheronx wrote:Reading your drivel is annoying Austin.

Relax its just your young 20's that annoying you .....me in mid 30's find no harm in asking for a POV   


Now for some news sepheronx may not like   

OECD: Corruption and traffic jams biggest problems for Russia’s business climate

Austin wrote:US will simply impose economic sanction Russia and Iran or their respective banks. They have already warned on this.  So it would be naive to go with such deal.

That's why the trade is of barter nature. It actually leaves little to no documentation (since there's no money involved). Heck, I think that they could buy Mig-29s with that oil and USA would only notice it from increased IRIAF sortie ratios.   

Austin wrote:US will simply impose economic sanction Russia and Iran or their respective banks. They have already warned on this.  So it would be naive to go with such deal.

That is if US actually has some sort of leverage over Russia, but it does not. So they can sanction away. While EU would still trade with Russia (And China) as they are reliant on Russias energy. Embargo wouldnt do much other than give Russia even more reason to fund the enemy.

Austin wrote:

sepheronx wrote:Reading your drivel is annoying Austin.

Relax its just your young 20's that annoying you .....me in mid 30's find no harm in asking for a POV   


Now for some news sepheronx may not like   

OECD: Corruption and traffic jams biggest problems for Russia’s business climate

Edit: whatever. I still like you Austin.

As for the link, no duh. Corruption effects all economies of the world. Corruption is bad in Russia. Recently they been fighting it but who knows when people will change, if ever.

With 20% of global gdp you are in no position to embargo anyone of any significance. This time in history ended once and for all for the United States.
This was after all the primary reason why sanctions against Iran lifted as well.

As with Syria, Americunts forced to lift the sanctions just moments before they would had to face humiliation by their sanctions been lifted from third countries unilaterally.

The Eastern countries where kind enough to create a pretext for this case as well like in Syria but knowledgeable people know that no real control against Iran's nuclear program imposed
and no significant slowdown either in the same way that Syria still has enough of their poisonous gases to put friends and foes at distance  

Austin wrote:Iran is a special case and it enjoys lot of support in US politics and even in Israel since Iran is perceived as anti-Israel.

US enjoys total economic monopoly and can afford to sanction Russia without getting hurt in return , Only China cannot be sanctioned by US as it will hurt US equally.

Unless Russia intends to fight with US on this then its ok else its not wise.

You are forgetting that a LOT of resources to make things like aircraft frames, engine frames, car frames and what not comes from Russian resources. Many boeing jets enjoy Titanium from Russia as an example. So they can be hit in specific fields as well.