Russian Economy General News: #2

GarryB wrote: no need for a plus one for doing my job...

Russia entered the top ten most popular travel destinations with the number of inbound foreign tourists growing by 13-15% every year

The European Council on Friday said it would give Moscow three days to de-escalate the situation in Ukraine, or it will impose new sanctions against Russia, according to a statement published Friday.
The European Council also set conditions for the de-escalation.

"The European Council expects that by Monday 30 June the following steps will be taken: Agreement on a verification mechanism, monitored by the OSCE, for the ceasefire and for the effective control of the border; return to the Ukrainian authorities of the three border checkpoints (Izvarino, Dolzhanskiy, Krasnopartizansk); release of hostages including all of the OSCE observers; launch of substantial negotiations on the implementation of President [Petro] Poroshenko's peace plan," the statement reads.

The European Council said it regrets that the ceasefire, “while being respected by the Ukrainian authorities,” has not led to the full cessation of military hostilities and called upon the sides to “genuinely commit to the implementation of the peace plan and to cement the cessation of the military activities.”

European Union leaders urged Russia to “actively use its influence over the illegally armed groups and to stop the flow of weapons and militants across the border, in order to achieve rapid and tangible results in de-escalation.”

The European Council said it was prepared to convene at any moment to impose new sanctions against Russia over the Ukrainian crisis, should the council find it necessary.

“The Council will assess the situation and, should it be required, adopt necessary decisions. The European Council underlines its commitment to reconvene at any time for further significant restrictive measures," the statement reads.

Russia launches largest oil drilling platform in the country's Far East



Russia's Rosneft and America's ExxonMobil have launched a unique drilling platform in the Okhotsk Sea in Russia's Far East. The world's most powerful rig can drill within the radius of at least 7 kilometers.

The rig is called Berkut or golden eagle and was designed to work in harsh subarctic conditions.

The drilling platform can withstand a 9 magnitude earthquake, waves of up to 18 meters and temperatures down to minus 44 degrees Celsius, Rosneft President Igor Sechin said. Berkut can also withstand floating ice up to two meters thick and has an autonomous power supply system. It has the largest superstructure on any rig. Weighing 200,000 tons it can drill a total of 45 wells.

The platform is located 25 km offshore in waters up 35 meters deep. The drilling will be performed by means of a marine rig, which allows all-year-round drilling of wells.

There have been no accidents or critical failures during the platform's construction, Rosneft's Igor Sechin reported to Russian President Vladimir Putin ahead of the launch on Friday. The construction was completed on time and within budget.



President Putin started the platform via a video link from the Kremlin, and highlighted the importance of the project to the country and the development of its natural resources in the Sakhalin region. "Thanks to such projects as the Berkut platform, we can use the richest but difficult to access fields, create new production and job opportunities, and strengthen the social and economic development of the Far East," Putin said.

The President also pointed out that the platform's construction and future operation is carried out under the strictest ecological regulations. "The project has undergone the harshest environmental requirements. The platform meets it, which is a separate achievement," Putin added.

He also praised the efforts of the Russian-American partners and wished them luck in the future field development projects.

The platform is a result of work by the Sakhalin-1 Consortium, which is the first major shelf project in the country, created on Product Sharing Agreement (PSA) terms. Forged in 1996, it includes several participants, with ExxonMobil and Sodeco having a 30 percent of share each, and Rosneft and ONGC Videsh Ltd. holding 20 percent each.

The total project is estimated to cost $10-12 billion, making it the largest direct foreign investment in Russia. It involves development of three oil fields in the north-east shelf off Sakhalin Island in the waters of the Okhotsk Sea.

Exploitation at Arkutun-Dagi field with the Berkut platform is expected to start by the end of the year. It will add 4.5 million tons to the Sakhalin-1 total annual extraction, producing up to 12,000 tons of oil daily.

http://rt.com/business/168884-berkut-drilling-platform-rosneft-exxonmobil/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome

sepheronx wrote:Now that it is launched, they should kick out Exxon mobile because of sanctions.  Then look for investors from Chinese and Indian oil companies.  Everyone is happy but American!

Austin wrote:Final threat from EU

EU Gives Russia Three Days to De-Escalate Ukraine Crisis, Threatens Sanctions

The European Council on Friday said it would give Moscow three days to de-escalate the situation in Ukraine, or it will impose new sanctions against Russia, according to a statement published Friday.
The European Council also set conditions for the de-escalation.

"The European Council expects that by Monday 30 June the following steps will be taken: Agreement on a verification mechanism, monitored by the OSCE, for the ceasefire and for the effective control of the border; return to the Ukrainian authorities of the three border checkpoints (Izvarino, Dolzhanskiy, Krasnopartizansk); release of hostages including all of the OSCE observers; launch of substantial negotiations on the implementation of President [Petro] Poroshenko's peace plan," the statement reads.

The European Council said it regrets that the ceasefire, “while being respected by the Ukrainian authorities,” has not led to the full cessation of military hostilities and called upon the sides to “genuinely commit to the implementation of the peace plan and to cement the cessation of the military activities.”

European Union leaders urged Russia to “actively use its influence over the illegally armed groups and to stop the flow of weapons and militants across the border, in order to achieve rapid and tangible results in de-escalation.”

The European Council said it was prepared to convene at any moment to impose new sanctions against Russia over the Ukrainian crisis, should the council find it necessary.

“The Council will assess the situation and, should it be required, adopt necessary decisions. The European Council underlines its commitment to reconvene at any time for further significant restrictive measures," the statement reads.

I think since the beginning, they were threatening about final sanctions for a while, and how they will go to third tier sanctions.  I went on vacation, came back and still nothing.  They seem to talk a lot.  And they know they will get economically screwed in the process of trying to screw Russia, so I doubt they will do it, unless they really want to sabotage their own economy.  And if that is the case, I really feel sorry for Europeans.

Austin wrote:I think the key push to isolate Russia comes from US , US is pushing EU to apply sanctions and working quitely behind the curtain.

Since the 3rd round of sanction is now all but inevitable.

Would suggest Russian Economy to move towards the East.

Accept Yuan/Rouble as one of the trading currency for Oil/Gas that would make sure Euro/USD does not remain the only currency of trading.

Keep building Gold Reserves.

Stop Dreaming that US or EU wants to see a strong Russia.

Build Greater Relation with China , India and other Asian country.

Petropavlovsk-Kamchatsky, June 28.  / ITAR-TASS /.  Ministry of Economic Development has prepared three options forecasts of economic development of Russia in the event of the introduction of sectoral sanctions in connection with the situation in Ukraine.


The Minister of Economic Development of Russia Alexei Ulyukayev in the program "Vesti on Saturday" on the TV channel "Russia 1".


"We conditionally developed three options according to their degree of softness and hardness. Most first - that is to say, luxuries there, caviar, fur, then the second - harder, and finally the third, taking into account the entire complex - metals, fertilizers, oil, gas and so on, taking into account the price factor and volume factor "- the minister said.


"The economy is holding such a scenario. Course, economic growth is seriously go into the negative plane. And even more negative is the rate of investment, declining revenues, increased inflation, declining government reserves. But in general, no dramatic developments" - said Alexei Ulyukayev.

Austin wrote:I am aware of the US -3% GDP but they mentioned it was due to Acute Winter in the first quarter.

here is the English version of the news

Economy minister Ulyukayev: EU’s toughest sanctions variant not to be dramatic for Russia

Austin wrote:I am aware of the US -3% GDP but they mentioned it was due to Acute Winter in the first quarter.

here is the English version of the news

Economy minister Ulyukayev: EU’s toughest sanctions variant not to be dramatic for Russia

magnumcromagnon wrote:

Austin wrote:I am aware of the US -3% GDP but they mentioned it was due to Acute Winter in the first quarter.

here is the English version of the news

Economy minister Ulyukayev: EU’s toughest sanctions variant not to be dramatic for Russia

A lot of people don't know that if Russia nationalized their central bank and called a natural resource embargo on trading with the use of the Dollar, it would significantly raise the cost of living on Americans because of: 1) It would weaken the value of the U.S. Dollar, 2) commodity speculators would be forced to raise the price of of everything from oil and natural gas, to timber and fresh water. The U.S. govt. is sowing the seeds of their own destruction.

Chapter I. General Provisions
Article 1. The status, purposes, functions and powers of the Central Bank of
the Russian Federation (Bank of Russia) are stipulated by the Constitution of the
Russian Federation, this Federal Law and other federal laws.
The Bank of Russia shall fulfil the functions and exercise the powers
stipulated by the Constitution of the Russian Federation and this Federal Law
independently from other federal bodies of state power, the bodies of state power
of the constituent entities of the Russian Federation and local self-government
bodies.
The Bank of Russia shall be a legal entity. The Bank of Russia shall have a
stamp with the image of the National Emblem of the Russian Federation and its
own name.
The central bodies of the Bank of Russia shall be based in Moscow.
Article 2. The authorised capital and other property of the Bank of Russia
shall be in federal ownership. In pursuance of its purposes and in accordance with
the procedure established by this Federal Law, the Bank of Russia shall exercise its
powers to own, use and manage its property, including the gold and currency
(international) reserves of the Bank of Russia. This property may not be
confiscated or encumbered with obligations without Bank of Russia consent unless
the federal law stipulates otherwise.
The state shall not be liable for the obligations of the Bank of Russia and the
Bank of Russia shall not be liable for the obligations of the state unless they have
assumed such obligations or unless federal laws stipulate otherwise.

To establishing a united Europe, the Federal Republic of Germany shall participate in the development of the European Union, the democratic, constitutional, social and federal principles and the principle of subsidiarity, and that guarantees this fundamental law essentially comparable protection of fundamental rights. The Federation may transfer sovereign powers by this law with the consent of the Bundesrat. The establishment of the European Union, as well as changes in its treaty foundations and comparable regulations, this Basic Law shall be amended or supplemented its contents, or make such changes or additions are made possible, in Article 79, paragraph 2 shall apply and 3