Russian Economy General News: #2

Russian Oligarchs Wave Goodbye To Visa, Switch To Chinese Credit Card

Visa and Mastercard are going to be in for a rough ride in high losses.

Russia’s Rosneft closes deal to buy Swiss Weatherford oilfield service assets

MOSCOW, August 01. /ITAR-TASS/. Russian oil giant Rosneft has closed a deal buying assets of Swiss company Weatherford International in drilling and well repair in Russia and Venezuela, Rosneft said.
Fulfilment of this deal will permit Rosneft to build up its positions on the market of drilling services, current repair and overhaul of wells, expand the range of subcontractors to provide oilfield services that will allow making drilling and hydrocarbon production more efficient and making financial indicators better, the Russian oil major said.
On Tuesday, the US Department of Commerce introduced export licensing for goods intended for some oil projects in the Russian Arctic and offshore projects, a high-ranking official in the US administration said on Tuesday. Restriction would only affect new projects, another source said.
Export licensing means the US will pay closer attention to requests of trade with companies on the black lists, which leads to considerable delays in project realization.
The EU countries also adopted sectoral anti-Russian sanctions on Tuesday that restrict access for Russian state financial institutes to the EU financial markets, impose weapon embargo, ban export of dual-purpose goods that can be used for military aims and limit access to sensitive technologies, especially those in the oil sector, said European Council President Herman Van Rompuy.

This undermines the sanctions big time. Hah.

Gazprombank says sanctions do not threaten its stability and fiscal sustainability

EU imposes sectoral sanctions against Russia
MOSCOW, July 31. /ITAR-TASS/. Gazprombank said on Thursday that EU financial restrictions were unlikely to undermine its fiscal sustainability and stability.
"The EU sanctions imposed against several Russian companies and banks have not undermined Gazprombank’s fiscal sustainability and stability of operations,” the bank’s press service told Itar-Tass.
The United States imposed similar sanctions (on long-term and mid-term financing) against Gazprombank on July 29.

Reserve Fund and National Welfare Fund increased in July by 290 billion

August 1. The total amount of the Reserve Fund of the Russian Federation on August 1, 2014 amounted to 3 trillion 95.21 billion rubles , which is equivalent to $ 86.63 billion Such data are reported to the Ministry of Finance of RF .
Recall , that on July 1, 2014 the fund amounted to 2 trillion 937 billion rubles. Thus , for the last month it has increased by 158.21 billion rubles.
The total volume of the National Welfare Fund ( NWF) August 1, amounted to 3 trillion 88.79 billion rubles ( $ 86.46 billion).
Note , that on July 1 the fund amounted to 2 trillion 957.38 billion rubles. Thus , for the last month, he added to 131.41 billion rubles.

Reserve funds are fine. But they need to really start injecting this money in infrastructure development and modernizing state property, as well as increasing wages.

Japan is pushing more sanctions. LOL. They are reliant on major heavy industrial goods development and sale to countries like China and Russia, while they are trying to save political face. And what do they want? Gas from Russia....

Anyway..

Savings Bank has started issuing credit cards PRO100

August 4, 2014 , Moscow - Sberbank started issuing credit cards Russian payment system "Universal Electronic Card" ( PRO100) throughout Russia.
PRO100 card issued in the categories of "Personal" and "Salary" and accepted throughout the acquiring network of Sberbank of Russia , as well as infrastructure banks , involved in the payment system "UEC".
The share of banks , working with PRO100 , accounted for more than 50% of the total Russian market acquiring.
Maps Standard PRO100 have standard functional services Sberbank: "Mobile Banking", "Online Savings", "Avtoplatezh" THANK YOU bonuses.
PRO100 card accepted in over 350,000 retail and service organizations, and more than 100,000 self-service devices throughout Russia. Convenient location service offices in all big and small cities of the Russian Federation provides the federal level of service cards PRO100. The total number of cards issued on the basis of PRO100 has exceeded 800,000.

Russia Should Respond to Sanctions With Full Import Replacement – Russian Official

MOSCOW, August 4 (RIA Novosti) - Russia should issue a response to western sanctions – full import replacement, Russia’s Deputy Prime Minister Dmitry Rogozin said on Monday.
“Sanctions, imposed against Russia, should be met with an appropriate response. The response is very simple – we should finally emphasize the development of our own industry and implement full import substitution to become completely independent in the context of unprecedented pressure on our country,” Rogozin said at a Government Marine Board session.
According to reports earlier on Monday, the German government canceled a joint project between Russia’s Defense Ministry and German defense equipment manufacturer Rheinmetall on building the Mulino combat training facility in Russia’s Western Military District. The move came amid the introduction of new sanctions against Russia by Western countries.
The United States and the European Union have already imposed targeted sanctions against a number of Russian officials and companies, accusing Russia of meddling in Ukraine’s internal affairs. The list of sanctions targets has been growing since Crimea reunited with Russia in March.
Moscow has stated repeatedly that imposing sanctions against Russia will have a negative effect on the economies of countries that impose them and called the language of sanctions counterproductive.

Completely agree. Why waste money on someone else when they can do it at home, and pay their own people to do it. Keep money floating in the country. To say it is impossible is a joke in itself. If money can be made, anyone will attempt.

Japanese Cabinet approves additional sanctions on Russia over Ukraine

TOKYO, August 05, 5:41 /ITAR-TASS/. Japan’s Cabinet has approved additional sanctions on Russia over Ukraine, the Kyodo news agency reported on Tuesday.
Prime Minister Shinzo Abe's Cabinet formally approved the decision announced last week by the government as the United States and the European Union stepped up pressure on Russia with widened sanctions, Kyodo says. “Assets held in Japan by those directly involved in Russia's annexation of Crimea or the instability in eastern Ukraine will be frozen. Japan will also limit imports of Crimea-made products,” the report says.
The lists of sanctions on Russia that the Japanese Cabinet approved on Tuesday over Ukraine includes 40 individuals and two companies, the Japanese Foreign Ministry told Itar-Tass.

Not very wise. Japan is a nation facing a major population decline, resource decline (they already lack energy) and is in demand for gas. Add to the rising debts of the country (over 200% of GDP), Japan is really in no position to limit their own activities or trying to hurt relations with Russia, even though they were just starting to warm up. This will push Russia towards China in terms of China's claims around Japan and Japan will see themselves with one less person willing to show a hand if they went to the UN.

Japan is being replaced by South Korea and China in terms of technology development and industrial production. Russia in most cases, relies on both South Korea and China over Japan. But Japan does do a lot of other production like tooling industry, but if that is to be gone, too bad for both sides. Guess Russia will have to seek autoCNC machines from other countries.

looks like Russian budget will be revised taking into account Western Sanctions .......would be interesting to see how much defence gets

Russia’s 2015 draft budget and the budget plan for 2016-2017 should be balanced to reflect Western sanctions imposed on Russia over Ukraine, the country's Prime Minister Dmitry Medvedev said Tuesday.

“This work should produce a realistic and balanced budget, a budget that takes into account the current state of affairs in the Russian and global economy, including the negative effect of the sanctions that are currently being imposed on certain companies and are de-facto against the whole country,” the prime minister said at a meeting to discuss Russia’s draft 2015 budget.
He added Russia will continue advancing its programs and projects of federal importance whatever the odds.

“Anyway, no matter what happens, there should be no doubt that we will continue moving forward and will implement programs and projects of national significance. And it’s an absolute and undisputable fact that all social responsibilities will be financed in full,” he said.Medvedev emphasized that taxes may be raised as a last-ditch measure to replenish the budget.

“We need to analyze more variants of mobilizing the [budget] income, [to consider] all possible options, including raising taxes, although this measure should be taken only under a worst-case scenario,” he said.

The prime minister also described the existing opportunities for external funding and foreign investment as fairly weak.

“Obviously, we will have to be more active in replacing imports and boosting our own high-tech industry, including nuclear, space, rocket and other high-tech areas,” Medveved stressed.
On July 31, the European Council upheld the third tier of so-called “restrictive measures” against Moscow.

The third round of economic penalties limited Russian state-owned financial institutions' access to EU capital markets, imposed an embargo on trade in arms, established an export ban for dual-use goods for military end users, and curtailed Russian access to sensitive technologies, particularly in the oil sector.

Moscow has repeatedly said the measures are counterproductive, and warned they will hurt Europe no less than Russia.

Austin wrote:looks like Russian budget will be revised taking into account Western Sanctions .......would be interesting to see how much defence gets

Russian Prime Minister Says Budget Plan for 2015 Should Reflect Western Sanctions

Russia’s 2015 draft budget and the budget plan for 2016-2017 should be balanced to reflect Western sanctions imposed on Russia over Ukraine, the country's Prime Minister Dmitry Medvedev said Tuesday.

“This work should produce a realistic and balanced budget, a budget that takes into account the current state of affairs in the Russian and global economy, including the negative effect of the sanctions that are currently being imposed on certain companies and are de-facto against the whole country,” the prime minister said at a meeting to discuss Russia’s draft 2015 budget.
He added Russia will continue advancing its programs and projects of federal importance whatever the odds.

“Anyway, no matter what happens, there should be no doubt that we will continue moving forward and will implement programs and projects of national significance. And it’s an absolute and undisputable fact that all social responsibilities will be financed in full,” he said.Medvedev emphasized that taxes may be raised as a last-ditch measure to replenish the budget.

“We need to analyze more variants of mobilizing the [budget] income, [to consider] all possible options, including raising taxes, although this measure should be taken only under a worst-case scenario,” he said.

The prime minister also described the existing opportunities for external funding and foreign investment as fairly weak.

“Obviously, we will have to be more active in replacing imports and boosting our own high-tech industry, including nuclear, space, rocket and other high-tech areas,” Medveved stressed.
On July 31, the European Council upheld the third tier of so-called “restrictive measures” against Moscow.

The third round of economic penalties limited Russian state-owned financial institutions' access to EU capital markets, imposed an embargo on trade in arms, established an export ban for dual-use goods for military end users, and curtailed Russian access to sensitive technologies, particularly in the oil sector.

Moscow has repeatedly said the measures are counterproductive, and warned they will hurt Europe no less than Russia.

This is why things such as modernization of the military shouldn't be financed via the budget, but by the long-term 100 year maturity 0% interest loans of the re-nationalized Russian national bank.

Defense will more than likely stay the same. But there is a reason why Russian gov has been pushing for defense enterprises to make dual use tech or civil products - because more than likely, next saps after this one will be trimmed down to mostly R&D, wages and upkeep, maintenance, and procurment of remaining equipment that replaces whatever is left needed to. So that means spending will decrease and they will need to obtain wealth from the domestic consumers. Which make sense.

State will have to increase spending in social benefits like health care and wages, as well as civil servants like Cops in order to increase security at home. Add in the higher wages will mean more consumers. Hording money or buying it all into weapons isnt smart. Building a more strengthened econony around higher standards of living and cleaner enviornments will improve security as well.

http://sdelanounas.ru/blogs/51744/

Russia reached an agreement with Iran on the conclusion of a major Commodity transaction , which will allow both countries to ease the impact of Western sanctions. Today, the parties signed a five-year memorandum of understanding , which provides for the delivery to Iran of Russian equipment and consumer goods in exchange for Iranian oil.
Co-Chairmen of the Russia-Iran - Russian Energy Minister Alexander Novak and his Iranian counterpart Bijan Namdar Zanganeh - today signed a five-year intergovernmental memorandum of understanding , said Iranian Ambassador to Russia Mehdi Sanai on his page on Facebook .
It is about expanding trade and economic cooperation. As confirmed by "b" in the Russian Ministry of Energy , is considered the participation of Russian companies in projects in Iran for the construction and reconstruction of electric power generation and networks , as well as the delivery to Iran of machines , equipment and consumer goods from Russia. In return Iran to sell its oil to Russia , which is now on the trade embargo imposed by the West. Specific contracts and agreements to be concluded during the meeting of the intergovernmental commission on September 9-10 , which will be held in Tehran.
Russia and Iran have been negotiating a deal with the end of last year , while Washington had considerable pressure on Moscow in order to prevent an agreement. The White House feared , that the oil cooperation with Russia would weaken Iran effects of Western sanctions and reduce the pressure on Tehran in the ongoing negotiations with the "six" on the status of its nuclear program.

US will be kicking themselves over this. LOL. Now just gotta work with Iranian banks and hope that Russia can open up business in Iran.

Were living in some exciting times:

China seeks broader cooperation with Russia reviving ancient Silk Road

“This year, we want to show the world a part of the Great Silk Road located in Gansu province, thereby demonstrating the province’s potential,” director-general of China’s state-run radio station says



LANZHOU /China/, August 05. /ITAR-TASS/. China will develop cooperation with Russian regions promoting its concept for a New Silk Road Economic Belt, aiming to bring together Asia and Europe, Wang Gengnian, the director-general of China’s state-run radio station China Radio International (CRI), said on Monday as a group of foreign journalists started their trip across China’s northwestern province of Gansu.
“This year, we want to show the world a part of the Great Silk Road located in Gansu province, thereby demonstrating the province’s potential,” Wang Gengnian told ITAR-TASS.

In ancient times, the Great Silk Road was a transport corridor connecting China with other countries, he said. “It facilitated both the establishment of contacts and the economic growth of China and its bordering states,” he said. “Two thousand years have passed since then. However, the need for joint development and cooperation has not reduced.”

“We hope that this trip will help to strengthen relations between Gansu province and Russian regions,” Wang Gengnian said. For seventeen days, journalists from Algeria, Russia, South Korea, Singapore, Turkey, China and Canada will travel 1,200 kilometres across the province of Gansu, home to many ancient monuments along the Silk Road including temples, monasteries, pagodas, towers and ancient palaces. Last year, Chinese officials began actively promoting the establishment of a New Silk Road Economic Belt, which would develop trade and infrastructure from Central Asia to the Mediterranean by building a network of railways and various energy source pipelines through strategically located countries throughout Central Asia.

Earlier this summer, China hosted a Silk Road Economic Belt Media Cooperation forum in Beijing, which state media said was intended to “rejuvenate the Silk Road by encouraging interregional development.

http://en.itar-tass.com/economy/743613

Far East’s Kamchatka to set up new nanotech site

A new sizable production site to make nanomaterials is expected to emerge in Kamchatka, in Russia’s Far East; the region and Rusnano, Russia’s nanotech giant, want to jointly invest $26m, the Russian news agency Interfax – Far East reported, citing information from Kamchatka Development Corporation, a special company set up by the regional government.

The area’s first site to produce nano-dispersed silicon dioxide from hydrothermal solutions is expected to market up to $11m worth of products a year, which would amount to 4,000 tons a year. Nanosilica, a large regional chemical producer, has led the effort.

The products may have wide applications as nanoadditives to rubber, construction materials and polymers, including paint and varnish products; in the manufacture of sorbents and catalysts; and also as additives to fodder and fertilizers.

The regional Kamchatka partners have agreed with Rusnano, Russia’s largest nanotech company, which is now expected to co-invest about 50% of the overall cost.

This stuff is important news. Many don't see it or hear much, but tech parks and industrial parks have been providing a steady growth in terms of profits and has proven that having such locations with good prospects in terms of costs of rent, utilities and tax incentives, really helped a lot of startups to achieve business opportunities.

Regrets on Japans end: http://en.itar-tass.com/world/743652

But what did they expect? Oh well, Japan will end up losing out to China in terms of further deals with Russia on automation and industrial goods, which are the only things Japan sells to Russia. They are already pressed hard to sustain their current industrial output. Give it time, as South Korea and China is taking over Japan's shares.

sepheronx wrote:Regrets on Japans end: http://en.itar-tass.com/world/743652

But what did they expect?  Oh well, Japan will end up losing out to China in terms of further deals with Russia on automation and industrial goods, which are the only things Japan sells to Russia.  They are already pressed hard to sustain their current industrial output.  Give it time, as South Korea and China is taking over Japan's shares.

The Japanese economy has been a joke for the past 15 years, and hasn't been the "2nd largest economy" in a long time, it's been surpassed not once, but twice as India's economy has now surpassed Japan's. I guess they'll have to make due with their wretched national nuclear energy program and praying to the spirits of dead Imperial Japanese military officers for comfort instead of clean natural gas... 

magnumcromagnon wrote:

sepheronx wrote:Regrets on Japans end:
But what did they expect?  Oh well, Japan will end up losing out to China in terms of further deals with Russia on automation and industrial goods, which are the only things Japan sells to Russia.  They are already pressed hard to sustain their current industrial output.  Give it time, as South Korea and China is taking over Japan's shares.

The Japanese economy has been a joke for the past 15 years, and hasn't been the "2nd largest economy" in a long time, it's been surpassed not once, but twice as India's economy has now surpassed Japan's. I guess they'll have to make due with their wretched national nuclear energy program and praying to the spirits of dead Imperial Japanese military officers for comfort instead of clean natural gas... 

Add in the fact that that they have a population aging crisis and Japan is really going to have a uphill struggle to stay relevant on the world stage. They are living off of their name at this point, Shinzo Abe has been a disaster for them.

The major thing Japan has going for them is their strict business rules, proper laws to help businesses and a less corrupt government.

In Japan, there are laws stating that people need to buy a new car every 5 years or so, unless they want to pay a tax for environmental reasons as the car is considered inefficient. So this helps the automotive industry big time. Add to that, there is always a push to be technological or at least different in terms of innovation. For example, Fujitsu developed for a while ARM cortex processors as well as their own variant of SPARC processors, which are both very important in the RISC processor development area, and they have reached top 500 in terms of HPC's with a SPARC line processor. Much like China and their SPARC processor supercomputer. Problem with Russia, is that businesses know about the standards like Intel and AMD, but how many of them heard or used Elbrus? Elbrus line of processors, both R1000 and the CISC x86 4C+ can be used in supercomputing and would fair better than the others in HPC, yet no university or company has invested in such tech. It is right there, and some of it is made in Russia itself. But MCST lobbying is almost none existent and Intel is everywhere. Fujitsu on the other hand has a good advertisement group as well as a good hand in business. Thus they can get their products out to universities and government agencies. Russian businesses I would say lack tactics, and will end up paying 2x the amount just to replace their HPC systems because of sanctions and other stuff. And because of a lack of investment from the consumer end, or business end in MCST, MCST will always be behind in development due to lack of demand. It is a vicious cycle that cannot be broken till it is forced. These sanctions will on the other hand probably make the big difference and force MCST to be far more competitive as well as aggressive in its advertisements.

Apparently EU is whining about food ban from Russia as they sell billions of euro of food to Russia per year and they are gonne get hit hard. Now they say they are gonna complain to WTO. Guess it hurts them as soon as Russia retaliates. Same token, Belarus is upping export of food to Russia.

sepheronx wrote:Apparently EU is whining about food ban from Russia as they sell billions of euro of food to Russia per year and they are gonne get hit hard. Now they say they are gonna complain to WTO. Guess it hurts them as soon as Russia retaliates. Same token, Belarus is upping export of food to Russia.

Russia joining the WTO was a joke to start with, the WTO was created to attack countries like Russia that needs strategic self-reliance now more than ever, I'm betting top-Dollar that Russia's case against U.S./E.U. sanctions at the WTO will be dismissed, and E.U.'s case in the WTO will be approved and ruled in favor of E.U., forcing Russia to exit the WTO. The Russian Neo-Liberal Oligarchs are looking like jackasses and a back-stabbing 5th-Column for weakening Russia and having it join so many anti-Russian institutions, whether it be Gorbachev or Yeltsin of yesteryear, or Kudrin and Medvedev of today.

Thats ok. At that point, Russia would then be able to do what she wishes for her economy. A lot of people predicted that Russia would do bad in WTO due to the US and EU pressure on economics around the world (forcing their customers to buy from them, cheap due to subsidization). It was a bad idea to begin with. And after that fiasco recently with India not signing the agreement (China too, but India was blamed by US) and US wanting to go ahead with it anyeay, shows the wto was pointless.

Maybe Russia wanted this, to troll US. Cause this is gonna end up with a lot of other nations not trusting US and EU.

It is not true that Russian economic elite is treasures. Quite the opposite, they are one of the most nationalistic and dedicated in the world. Only very few of them have negative impact almost exclusively those of jewish lineage that since they where trapped inside Soviet Union they got Russian passports although they are enemies through and through. From the rest there is a really tine number who are not anti-US and even them either have serious business in the US, either they are sick with the socialist/semi-communist mentality still exist in Russia, either they where benefited by United States by studying or staying abroad or cooperating etc
So all in all this notion is total crap and come from some unrepentant communists who think that someone who is rich can't be idealist or decent.


BTW I think entering WTO was an excellent idea. Sepheronx cover this already so I will not develop further.

This is how it is done ... V.Putin the man   

Russia Just Bypassed A Big Part Of EU Sanctions

This is a second time I hear about this. It seems that Russian MIC is organized around the concept that it makes it easy to shift from military to civil production and vice versa.

By 2020, the DIC "untwist" civil industry in Russia, said Dmitry Rogozin


Its just that defense of the country has No.1 priority (as it should)

Rosneft launches most ambitious offshore project in Kara Sea

KARA SEA, August 09. /ITAR-TASS/. Russia’s state-owned oil company Rosneft has launched the world’s most ambitious offshore oil and gas project in 2014, the company’s President Igor Sechin said on Saturday.

“This is the most ambitious projects in the world’s oil and gas industry. As part of that, today we have started drilling in the Kara Sea. As we said, this is the biggest such offshore project in the world,” Sechin said.

He said preliminary geological surveying conducted by Rosneft and ExxonMobil showed that this would be a highly profitable undertaking.

“This project will undoubtedly both open new horizons for the Russian Federation and improve energy security globally… we can say that this project is comparable, in terms of reserves, with those in Saudi Arabia and by far exceeds the offshore potential in the Gulf of Mexico, Alaska and Canada,” Sechin said.

Rosneft and ExxonMobil joint venture company Karmorneftegaz began drilling of Universitetskaya-1, Russia’s northernmost well using the West Alpha rig.

The start of the drilling was launched by President Vladimir Putin during a teleconference with Sechin and ExxonMobil Russia CEO Glenn Waller who were both present in the Kara Sea. Putin’s special representative for international cooperation in the Arctic and Antarctic, and a member of the Rosneft Board of Directors, Artur Chilingarov, and North Atlantic Drilling representative Jan Tore Theimann also took part in the ceremony.

Putin said the project was “unique in many ways” and itt will use the latest technology. “A large number of geological surveys have already been carried out, and special environmental protection measures are in place. I know that Rosneft and all of its partners, including ExxonMobil, attach special significance and pay great attention to this aspect, especially in this part of the world with its sensitive ecology,” he said.

He stressed that the commercial success of the project would depend on effective international cooperation. “In spite of the difficult current political situation, pragmatism and common sense still have the upper hand, and that is very gratifying. In our opinion, this is a truly responsible, business-like approach, and only such an approach can be productive. We certainly welcome this position and, in turn, are open to expanding our cooperation with partners,” the president said.

Drilling at the Universitetskaya-1 site, the northernmost oil rig in Russia, will take place in open waters during the ice-free drilling season from August through to late October. The West Alpha rig has undergone additional modernisation to enable it to operate in the Arctic waters and has been furnished with innovative ice control equipment and a system for avoiding collisions with icebergs.

“The start of exploratory drilling in the Kara Sea is the most important event of the year for the global oil and gas industry. As a result of this work we are planning to discover a new Kara sea oil province. Developing of the Arctic shelf has a huge multiplicative effect on the whole Russian economy,” Sechin said.

The West Alpha rig was provided by the Norwegian company North Atlantic Drilling which signed long-term agreements with Rosneft on July 30, 2014 for the offshore drilling. West Alpha was transported via the Barents, Pechora and Kara Seas and installed on the drilling site of the East Prinovozemelskiy-1 License Area in the Kara Sea. The drilling rig made the way of over 1,900 nautical miles to reach its destination. The rig is 30,700 tonnes in deadweight, 70 metres long, 66 metres wide, the derrick hangs 108.5 metres over the main deck, and it drafts during drilling for 21.5 metres.

The rig is held on the drilling site by an 8-anchor positioning system, which provides advanced stability for the rig. Most of the platform is outside the reach of waves, which are no impediment for the rig’s operation. The maximum drilling depth of West Alpha is 7 km. The drilling will continue for two months.

Rosneft and ExxonMobil experts spent several months preparing the rig for the Kara Sea drilling operation. West Alpha was upgraded to improve the overall reliability of its main and supplementary equipment and for all systems to be ready for low temperatures, including, most importantly, life support and evacuation systems.

The rig is equipped with an innovative system for the monitoring of ice condition, icebergs detection and tracking of sea ice. It uses infrared cameras and modern onboard radars, and analyses satellite and air intelligence data.

To make sure West Alpha can operate safely in severe ice conditions, Rosneft and ExxonMobil developed a unique iceberg collision prevention plan. It even includes applying physical action to the ice. Should experts suspect a hummock or floe can damage the rig, special support vessels will tow it away to a safe distance. If physical action is impossible, the system will isolate the well in a way that is harmless for the environment, and the rig will transfer to a safer location. The rig is equipped with two groups of blowout preventers and an enhanced subsea shut-in device.

This is the problem with RUssia dependency on Companies they own..

Russian smartphone maker Yota Devices to relocate to Canada /

Because the ungrateful Russians engineers and scientist that are independent once they benefit from the Government help for their quality education and economic aid programs and design a product that sells world wide ,
instead of being patriotic and creating jobs in their nation , the bastards take their suitcases and flee the country with their talent not helping their own nation. Look at Yota executive helping the economy of a Nation like Canada that is helping to kill ethnic Russians at their borders and that is pushing to Isolate Russia Economy.if that are not being traitors , no idea what that is.

http://en.itar-tass.com/economy/744374

This is why i hate the Capitalism Bullshit , the unfair competition. Not based on talent but on opportunism and sabotage of others economy.  Is like a casino and the most wealthiest sucks the talent of other
nations into theirs..  Imagine if Apple decided to move its headquarters to Canada to avoid to pay taxes in their nation ? and move to canada? I don't think US will allow that. So those Russian go design a phone that everyone likes.. they get free promotion in all Russia  media world wide and later they take their company and move to another country so another nation receive the benefits of Russia promotion, and resources invested on their education system ,so that they could be inventors in the future.

It's all fine for me... but once you go there is no turning back that's the rules.