Russian Economy General News: #2

magnumcromagnon wrote:

sepheronx wrote:

Austin wrote:Kick Russia Out Of SWIFT, UK Demands

I know, I was reading this too.  Little they seem to know, is that they would be shooting themselves in the foot and forcing out the USD in future trades.

The ironic thing about this current crisis is that these international entities purpose for Russia's entry in to these institutions was to make Russia weaker internally, and more dependent on neo-liberal financier cabals. By kicking Russia out they're actually doing Russia a favor, forcing Russia to be independent, Russia should now move to nationalize their central bank and start lending out 0% credit for internal consumption, and re-enacting capital and exchange controls to fight inflation.

“Once we create a gas pipeline network here in the Far East and Siberia, we will be able to connect European pipeline system to the East. And this, in terms of export opportunities and expanding Russia’s ‘gasification’, is very beneficial.

Depending on the situation in world markets, we can more effectively implement gas flows- either more to the West or to the East,” Putin told students at North-Eastern Federal University earlier on Monday.

dino00 wrote:Forecast for 2014-17 downgraded by Russian Economic Ministry

http://in.rbth.com/economics/2014/09/02/forecast_for_2014-17_downgraded_by_russian_economic_ministry_37995.html

sepheronx wrote:

dino00 wrote:Forecast for 2014-17 downgraded by Russian Economic Ministry

http://in.rbth.com/economics/2014/09/02/forecast_for_2014-17_downgraded_by_russian_economic_ministry_37995.html

Gah! I hate these so called experts. I have been hearing about Russia having to diversify economy since forever now. Hell Austin has been harping about it for years on mp.net and here.

But, in all that time, how many posts have I mentioned with links, showing new factories producing more than oil and gas? A lot. Or how about the new agricultural businesses? A lot. I dont think these experts even read the news or follow sites that have listings of this development.  As well, in same token they say that the sanctions and ukraine conflict will make it hard to diversify... are they for real? Did they not heard of import substitution? Let me help them: if you are forced to produce end product at home, then that means you are producing and end product that isnt oil and gas, which means you diversified your production/economy.

Not federal governments fault that private central bank is causing issues.

Cyberspec wrote:Not sure if this has been posted already, but it's of HISTORIC significance...

Putin breaks ground on Russia-China gas pipeline, world's biggest



...

the most important bit...basically, the gas designated for European markets can be diverted to the Asian market....the delusional idiots in the EU have managed to lose their most important energy source

“Once we create a gas pipeline network here in the Far East and Siberia, we will be able to connect European pipeline system to the East. And this, in terms of export opportunities and expanding Russia’s ‘gasification’, is very beneficial.

Depending on the situation in world markets, we can more effectively implement gas flows- either more to the West or to the East,” Putin told students at North-Eastern Federal University earlier on Monday.

ЧЖАН ГАОЛИ wrote:Хочу подчеркнуть, что китайская сторона категорически против санкций США и Запада в отношении России, против «цветных» революций, против попыток сдерживать развитие России. Я уже сказал господину Миллеру и господину Сечину, что мы будем делать всё от нас зависящее.

Наше сотрудничество существенно расширяется, в том числе в торговле сельхозпродукцией.

В.ПУТИН wrote:Что касается ограничений в торговле, в экономической деятельности, то в конечном итоге ущерб от этого будут нести прежде всего те, кто проводит такую политику. Надеюсь, что здравый смысл восторжествует, и мы все войдём в нормальный режим сотрудничества. Но это в значительной степени зависит от таких профессионалов, как Вы, и в Китае, и в России, и у наших партнёров.

Mindstorm wrote:http://kremlin.ru/news/46530

ЧЖАН ГАОЛИ wrote:Хочу подчеркнуть, что китайская сторона категорически против санкций США и Запада в отношении России, против «цветных» революций, против попыток сдерживать развитие России. Я уже сказал господину Миллеру и господину Сечину, что мы будем делать всё от нас зависящее.

Наше сотрудничество существенно расширяется, в том числе в торговле сельхозпродукцией.

В.ПУТИН wrote:Что касается ограничений в торговле, в экономической деятельности, то в конечном итоге ущерб от этого будут нести прежде всего те, кто проводит такую политику. Надеюсь, что здравый смысл восторжествует, и мы все войдём в нормальный режим сотрудничества. Но это в значительной степени зависит от таких профессионалов, как Вы, и в Китае, и в России, и у наших партнёров.

Enough said.....


The worse mistake someone can do in chess is to apply a know "move" taking into account only short terms, only apparent, advantageous exchange of pieces ; this stance work almost always against inexperienced or not proficient players but become suddenly the exact recipe for an assured defeat ,in the long run, against a master opponent....

Incidentally, in the international theatre, that "long run" coincide also with a "then-days" expected sharp decrease of dollar's share in global trade exchanges, a sudden plummet of reserve gold value and the busting of the "shale oil/gas" bubble , partially already revealing itself in its cold volumetric figures and with effects ,both for the energetic and financiary sectors that will make appear the last recession ,triggered by the subprime lending, a true walk in the park for any nation with an high percentage of State Debt and an high rate of exposure for the effect of pasted unconventional and highly shortsighted measures of aid to theirs economies ....such as very massive quantitative easing operation by part of a certain institution   ....

Who is aware to don't have much time before the natural evolution of the geopolitical events will drammatically demolish its position in the world, has always attempted (usually through an increase of aggressive and sabotating foreign policy)to change, for what possible , the status-quo to at least slow-down the process.

That aggressiveness and the urge to change existing equilibrium ,through induced caos, can be hardly named a sign of strength.....instead it clearly show the exact contrary.  

Russia’s Gazprom to fall under new EU capital ban – sources
Russia's Gazprom Bank and oil producer Gazprom Neft will fall under new sanctions approved by the European Union on Friday, Reuters cited an EU diplomat as saying. The sanctions reportedly include a new ban on raising capital in the 28-nation bloc.

The sanctions were agreed against Russia for its alleged role in the Ukrainian crisis, the diplomatic source said.

According to The Financial Times, which managed to obtain a document outlining the sanctions, all Russian state-controlled companies with assets of more than one trillion rubles (US$27 billion) that receive more than half their revenue from “the sale or transportation of crude oil or petroleum products” will be hit by the ban.
http://rt.com/business/185504-gazprom-sanctions-eu-ban/

AlfaT8 wrote:

Russia’s Gazprom to fall under new EU capital ban – sources
Russia's Gazprom Bank and oil producer Gazprom Neft will fall under new sanctions approved by the European Union on Friday, Reuters cited an EU diplomat as saying. The sanctions reportedly include a new ban on raising capital in the 28-nation bloc.

The sanctions were agreed against Russia for its alleged role in the Ukrainian crisis, the diplomatic source said.

According to The Financial Times, which managed to obtain a document outlining the sanctions, all Russian state-controlled companies with assets of more than one trillion rubles (US$27 billion) that receive more than half their revenue from “the sale or transportation of crude oil or petroleum products” will be hit by the ban.
http://rt.com/business/185504-gazprom-sanctions-eu-ban/

Sepheronx, all yours.

sepheronx wrote:

AlfaT8 wrote:

Russia’s Gazprom to fall under new EU capital ban – sources
Russia's Gazprom Bank and oil producer Gazprom Neft will fall under new sanctions approved by the European Union on Friday, Reuters cited an EU diplomat as saying. The sanctions reportedly include a new ban on raising capital in the 28-nation bloc.

The sanctions were agreed against Russia for its alleged role in the Ukrainian crisis, the diplomatic source said.

According to The Financial Times, which managed to obtain a document outlining the sanctions, all Russian state-controlled companies with assets of more than one trillion rubles (US$27 billion) that receive more than half their revenue from “the sale or transportation of crude oil or petroleum products” will be hit by the ban.
http://rt.com/business/185504-gazprom-sanctions-eu-ban/

Sepheronx, all yours.

They are biting the hands that are keeping them warm, powered and capable of producing byproducts. In this case, Gazprom can obtain loans through its own bank and move investments elsewhere (growing nations are a better investor anyway).  Gazprom has already moved its stock exchange listings to Singapore so gaining alternative capital wont be a major issue.

Rostec goes East

State Corporation is actively developing joint projects with Chinese partners




China ranks fourth in terms of total cumulative investment in Russia (8.4% of the total capital invested in our country in 2013). In the structure of mutual export and import a significant share of engineering products, equipment and vehicles. Strategic cooperation with Chinese partners  - one of the most important activities Rosteha. Enterprises and holdings of the State Corporation actively develop joint projects with colleagues from China.

In co-operation in the field of technology and dual-use civilian involved 14 holding companies and key organizations Rosteha: "Russian Helicopters", JDC, "Roselektronika", "Schwabe" KRET, United instrument-making corporation, "Aircraft Equipment" , "PT Himkompozit" "Stankoprom", "RT-Auto", "PT Global Resources" , "RT-Invest" , AVISMA, "Rosoboronexport" .

Cooperation concerns the supply of helicopters, jointly developed electronic and optoelectronic products, titanium and aluminum semi-finished products, automotive engineering, the development of coal deposits in the Far East, the procurement of Chinese tires, the development of long-term heavy helicopter.

China appreciates the Russian helicopters. Russian cars are widely exploited in this country.  In June 2014 "Russian Helicopters" completed supply 52 Mi-171E helicopters to China. This is the final game in the execution of the contract concluded "Rosoboronexport" in 2012. Mi-171E operated successfully in China in regions with difficult terrain and harsh climatic conditions. Machines deliver medicines, humanitarian supplies and construction materials. Holding "Helicopters of Russia" and the Ulan-Ude Aviation Plant have received many appreciative reviews for trouble-free operation of helicopters in the aftermath of emergencies.

Civil multipurpose helicopter Ka-32A11BC production Arsenyev Aviation Company in fireproof version ensures security of the city of Ordos. In commercial helicopters operated by Sino-Russian Helicopter Technology Company Ltd, airline Citic General Aviation and many others.

In June 2014 holding company "Helicopters of Russia" and the Chinese company Lectern Aviation Supplies have signed a contract for the supply of heavy transport helicopter Mi-26TC. Under the contract, the helicopter will be delivered in 2015. It will be used in the interests of forestry, Shandong Province. Now commercial companies in China operate three helicopters Mi-26TC. One Mi-26TC helicopter is in the park Qingdao Helicopter. Two more Mi-26TS uses Chinese Flying Dragon.



Back in October 2008, the heads of the governments of Russia and China signed a memorandum of understanding on the development of heavy civilian helicopter AHL . We are actively continuing the negotiations and consultations on the draft experts "Helicopters of Russia" and the Chinese helicopter company Avicopter.

United Engine Corporation (UEC) is collaborating with Chinese companies on various types of aircraft engines in the joint development and production of gas turbine units for natural gas pumping stations under construction in China pipelines.

In August 2014 during the International Forum " Engineering Technologies - 2014 " signed an agreement on cooperation between the DCS and the Chinese company "Harbin Guanhan Gas Turbines» (HGGT) in the conversion of aircraft engine propulsion terrestrial applications for the energy, oil and gas industry. It provides for cooperation in the field of conversion engines D-30KU / KP in industrial gas turbine engines GTD-type 6RM and GTD-8RM, as well as looking for opportunities to sell them.



As part of the project for gasification of provinces in China can supply up to 80 gas turbines of 25 MW total cost of about $ 600 million. Cooperation is also possible in the creation of the engine for wide-body aircraft, engines for medium, light and heavy helicopters.

In the aviation industry is developing partnerships with Chinese companies and the largest producer of titanium products AVISMA. Corporation supplies China titanium and aluminum semi-finished products for the aerospace, engine-building and other industries. One of the largest contracts for the sale of titanium and aluminum semi- AVISMA signed with AVIC Beijing , one of the branches of State Aviation Industry Corporation of China (AVIC).

Signed an agency agreement is the fifth since the beginning of cooperation between the companies, it will be valid for three years - until May 2017.

Another area of extensive cooperation between the two countries  - aircraft on-board systems and components for civil aviation.

At the forum " Engineering Technologies 2014 " in Zhukovsky, a meeting of the Working Group on-board equipment of the Russian-Chinese subcommittee on cooperation in the field of civil aviation and civil aviation, which was attended by subsidiaries KRET : UKBP, NIIAO, CBSI, MIEA, EOKB " signal "and KPKB.

Holding "Aircraft Equipment" plans to take part in a joint project between Russia and China on the establishment of wide-body aircraft. Holding ready to deliver products in a joint Russian-Chinese project.

Not only air, but also road transport is in the zone of mutual interests.  AvtoVAZ interacts with several companies from China, such as Ling Long, Mahle China and Toyota Tsusho Corporation (supplier from around the Asian market, including China). They supply AvtoVAZ car tires, valves, motors and other parts for automobile production. AvtoVAZ is interested in establishing a close cooperation by Chinese companies, which will create a joint venture in Russia.

Energy - a priority.  "PT Global Resources" in cooperation with Chinese corporation "Shenhua" will implement the project on joint development Ogodzhinsky coal deposit located in the Amur region (in 2019, it is planned coal production of 30 million tons per year), construction coal marine terminal "Port Faith" in the Primorsky Territory, the development of related industrial and logistics infrastructure and power generation.

In turn, the "PT Himkompozit" developing cooperation in the field of technical upgrading of China's coke production, technology development of high-tech production of chemical products.

State Research Institute of Chemistry and Technology of Organoelement Compounds, holding "PT Himkompozit" partnering with "Vinca", "Meilan" and others in the development of technology and the creation of production of organosilicon compounds. With technical assistance GNIICHTEOS over the past few years, China has built eight plants for the production of modern silicone products.

The possibility of mutual deliveries of finished products and components, joint research and development, creation of joint ventures and industrial cooperation with Chinese companies "Roselektronika" , "Schwabe" Joint instrument-making corporation, "Stankopromom" .



Rosteh supports not only technological cooperation, but also a cultural exchange between the two countries . Goskorporatsiya assist in opening the National Art Museum of China exhibition of works by the People's Artist of Russia Vasily Nesterenko, titled "Russia: Past and Present." The opening was attended dignitaries from the Chinese side, and journalists, as well as Russian Ambassador Andrei Denisov in China and vice-chairman of China Association for International Friendly Contact Deng Rong. In a solemn ceremony on behalf of the State Corporation Rosteh the gift was handed over to China by Deng Xiaoping portrait, painted by the artist.

http://rostec.ru/news/4514485

It will be very interesting to see if they will come back to Russia and China etc...

GarryB wrote:the west... the US in particular likes to use economics as a weapon.

The current sanctions against Russia will be opening the eyes of many small countries who would have to cave under such sanctions and do as they are told.... perhaps a lesson not to become too deeply tied to the west in case they decide to use it against them.

Fortunately now there are alternatives to the west and the more the countries explore their options the more useful and fruitful those other options will become...

the west is shooting itself in the foot...