Russian Economy General News: #2

Regular wrote:I personally think the more hardship Russia will face the better. It will help it evolve. Cause sitting on the warm place and getting easy money meant that Russia wasn't using it's own potential. Who stopped Russia from making closer ties with China, South America before this shit started? Why Russia needs a good kick to do things?
I think everything will be for better for average Russian.
Some EU countries will be crawling back to establish ties with Russia again. Now it will be under Russian terms.

Russia, China negotiate over 30 joint projects worth over $100 bln — official

Russia and China have recently achieved a significant boost in their bilateral relations, primarily in the economic, energy, space and scientific as well as military spheres



SOCHI, September 19. /ITAR-TASS/. Russia and China are discussing over 30 joint projects worth over $100 billion with the frames of the mutual economic cooperation, Kirill Dmitriev, the CEO of the Russian Direct Investment Fund, said on Friday.
“We have set up an intergovernmental Russian-Chinese commission and recently discussed over 30 projects worth over $100 billion,” Dmitriev said addressing the International Investment Forum Sochi-2014.

The bilateral investment commission comprising both private and state-run companies gathered for its very first session in China last week.
“Asian investors are interested in Russia, however, it takes little longer than usual to establish relations with them and it is important that the relations are organized in a more system-like manner,” Dmitriev added.

First session of the new Russia-China comission

The Intergovernmental Russia-China Commission for Investment, co-chaired by Russian Deputy Prime Minister Igor Shuvalov and Vice-Premier of the State Council of the People’s Republic of China Zhang Gaoli, held its inaugural session early last week in the Chinese capital of Beijing.

Following the session Russian Direct Investment Fund CEO Dmitriev was appointed a co-chair of the Commission’s Consultative Committee of Entrepreneurs representing the Russian side. Chairman and CEO of China Investment Corporation (CIC) Ding Xuedong was appointed to co-chair the committee on the Chinese side.
Russia and China have recently achieved a significant boost in their bilateral relations, primarily in the economic, energy, space and scientific as well as military spheres.

Russian-Chinese gas contract

One of the milestone deals between the countries was the natural gas supply contract signed during Russian President Vladimir Putin’s visit to China in May.
Russian energy giant Gazprom and China National Petroleum Corporation (CNPC) signed a 30-year contract on Russian natural gas supplies to China via the eastern route worth a total of $400 billion.

Over the past few years, the two countries have noticeably increased the intensity of their contacts. China has become Russia’s major trade partner while Russia is in the top ten of China’s main trade partners. In 2002-2013, bilateral trade hiked from $12 billion to $89.2 billion.

Russia and China are planning to bring their bilateral trade turnover to $100 billion by 2015 and to $200 billion by 2020.

http://en.itar-tass.com/russia/750313

GarryB wrote:The west has a huge ego and thinks if they reject a country it will shrivel and die... 

sepheronx wrote:Im curious but besides schooling, hospitals, pension and state employees, what constitutes as social spending?

It is huge chunk of budget goes to it but its kinda a broad term.

Maybe privatize certain social programs like the garbage collection, street cleaning, maybe allow more private hospitals/schools, and maybe remove uneeded positions in the government (they look bloated).

Defense spending should stipulate that money spent should be in dual purpose technology rather than just military.

Austin wrote:I think its high time to reduce social spending which is the greatest spending in Budget.

Today Medvedev said like the constitution gurantees we are social economy etc.

During difficult time its better to tighten belt as in future more difficult times may come of prices of oil fall below $90.

So reduce social spending for next 3 years and use the money for boosting development projects that contribute to growth.

sepheronx wrote:You guys make a good point. But what about things like street cleaning or public transit equipment maintenance? Surely those things can be done by private without it going to total shit. No?

But of course you make good points. I just think that having private schools and clinics in conjunction to public ones can help reduce costs, especially the fact Rich Russians already put themselves or their kids into private institutions (school on Skolkovo as example). Many of them probably leave to go to hospital elsewhere to spend money on better service. I say they can do that at home but still keep socialized mesical care for everyone else. Something like if you make $XXX,XXX a year, you will need to use private medical care, pay insurance.

Just a thought.