Russian Economy General News: #3

par far wrote:

sepheronx wrote:

flamming_python wrote:Is there any proof for the government buying up those shares? Some official statements or info from another source?

Forgive me but all these 'Putin's grandmaster thinking cannot be fully comprehended by us mere mortals' articles don't inspire believability.

They are not going to outright say it, and I do believe some of the comments are exaggerated, but I theorized prior to this events that Rus gov would allow companies and stocks to go under and buy them back at a mere fraction of the cost. Seems this is what they did. But there is still over $500B of private debt that will either need tk default on or something else.

What happens if they default?

Vann7 wrote:

par far wrote:

sepheronx wrote:

flamming_python wrote:Is there any proof for the government buying up those shares? Some official statements or info from another source?

Forgive me but all these 'Putin's grandmaster thinking cannot be fully comprehended by us mere mortals' articles don't inspire believability.

They are not going to outright say it, and I do believe some of the comments are exaggerated, but I theorized prior to this events that Rus gov would allow companies and stocks to go under and buy them back at a mere fraction of the cost. Seems this is what they did. But there is still over $500B of private debt that will either need tk default on or something else.

What happens if they default?

Then the Russian Government will take control of those companies..take control of those companies for pennies
and nationalize them..all done legally. The Government debt is very small.. the major debt is private companies with assests in the west.  As long As Russian Banks and Government have income..and can pay their debt is they have any.. then Russia will survive any crisis..  But the most important business Banks and Energy. that were under pressure and risk.are now safe... and in controls of the government. But i don't think they will want to carry all their business on their shoulders.. and instead will finance them..  

But in real practice.. Russia government have the resources to Nationalize all their private industry and take control of it.. become some kind of new COmmunism.. under capitalism.  Russia have close to 400$billion reserves  and  and a lot of things to sell that everyone needs.. from Energy to Company shares to technology. But having control of all Rosfnet is a BIG plus ,because the income will go completely to Russian government. and this will allow them to better handle the oil crisis without burning their gold reserves.  So yes Oil now is at ~$50 more or less..  but Russian government profits are now up to 50% higher.  This means that the margin of profit is even smaller now..
Russian government could be selling oil at $30 or $20 and still make profit.. Obviously an adjustment of Russian budget and spending will have to be reduced.

It was all planned... the attack on the ruble was not Russia initiative ..but US and Saudi Arabia.. then Russia decided
to allow the west to near collapse the ruble and then buy back all their energy shares from the hands of americans and europeans. Russia will be very rich selling cheap energy once they build pipelines through all Asia.. China/India/South korea and Japan. And Saudi Arabia will be doomed.


What is an irony is that American and European investors.. that lost their energy shares for panic..thinking Russia economy will collapse.. are victims of their own western media... however Russian media if you look how they reported everything from Dec1 to dec 16.. was not a lot different from how CNN did it..  I remember clearly how the
chairman of the central bank told "They lost control of the ruble" and that people need to adjust to a new reality..
and just hours later.. Medvedev says they have Enough resources to REVERSE the ruble performance and that is value at that time. .was not based on reality but on emotions..     (emotions that they helped to create)...
People are still looking for those mysterious speculators destroying the Ruble     they were all duped into thinking Russia had no control of the ruble.. to allow them buy very cheap their energy shares.


In other news.. it seems INDIA is now target of the western elite.. they are spreading panic about the safety of
Indian airliners.. about rumors of terrorist that will hijack their planes.. Pretty much USA is on a full scale economic
warfare against  BRICS nations.. All this planes falling form the sky is economic warfare against their airlines. and their economy..  it was Malaysia the only nation who did a trial for warcrimes against BUSH for the IRAQ invasion.
I hope they do one against Obama for the SYria and Ukraine war.

0.5 percent of Russia's GDP added at the end of 2014. These are preliminary estimates. According to the calculations of the Institute of Economic Forecasting, Russian Academy of Sciences, the pace of economic growth in our country should not be less than 2-3 per cent per year, or structural problems will only increase.

2 years in a row in Russia decreased real investment. Last year, it decreased by 3 percent. In 2015, the trend will continue.

3 per cent of GDP in Russia will lose this year if oil prices stop at no more than $ 60, calculated in the Ministry of Economic Development.

5 consecutive years of annual inflation in the single digits, which gave the Central Bank base set a goal to reduce it in 2014 to 5 percent. However, in December consumer price inflation exceeded 10 percent. The main driver of inflation was food. But the plans of the Central Bank does not change.

6 percent, according to the calculations of the Institute "Development Center" NRU "Higher School of Economics", will lose real wages and incomes of the population in 2015. However, there is a more optimistic assessment, but increase the welfare of the average Russian is unlikely to be.

15.64 per cent per annum was at the end of 2014 the average maximum rate on deposits in the top 10 banks. And until mid-December it ranged from 8.2 to 10.5 percent, the largest contributions to the fact, and not just the banks do not overlap inflation, people preferred to "leave" to rise in price in the currency. But the yield on ruble deposits rose sharply as soon as the Central Bank raised its key interest rate to unprecedented heights.

17 per cent per annum - this is from mid-December key rate of the Bank of Russia. This is the initial price of borrowed money in the economy, the basic parameter that determines the business activity in the country, interest on loans and bank deposits. In 2014, the key rate had to raise six (!) Times, in response to a surge in inflation. A year began with the key rate at 5.5 percent. However, banks continue to borrow from the Central Bank a lot of money.

$ 20 billion in the form of one percent of foreign debts will have to pay for Russian companies and banks this year, according to statistics from the Central Bank on July 1, 2014. And together with the main duty - 109 billion dollars. Prior to the sanctions business a significant part of the external debt is covered by the new loans abroad. With the closure of the western capital markets this familiar path was blocked, causing increased demand for foreign currency in Russia. And he, in turn, has led to a spike in the ruble.

61 banks that participated in the deposit insurance system, lost his license in 2014. All depositors received compensation from the insurance Deposit Insurance Agency. For comparison, in 2013, licenses were withdrawn in 27 banks, deposits which were guaranteed by the state within 700 thousand rubles per depositor. License of the bank caused tension in society and flow of public funds in the largest state-owned banks. But experts call "clearing blockages" in the banking sector, held by the Central Bank, is uniquely necessary and useful. And in the summer of 2014 it became clear that the major players are unreliable exhibited the door, turn-by-little, little-known credit institutions play against their clients or against the state.

1.4 million rubles. Toward the close of 2014 the insurance limit on deposits of individuals in the same bank doubled. The ability of the deposit insurance system to cope with any load can be no doubt: if necessary, the Central Bank will cover the shortfall in the DIA their loans.

$ 70 per barrel for 2015 will allow the Russian budget to have more income than planned, calculated in the "Development Center" HSE "HSE". Although, the budgeted average price of oil at $ 100 a barrel, it will help the weakened ruble - revenue exporters in terms of the Russian currency even in adverse market conditions will remain solid.

78 percent added for 2014 in the price of the usual buckwheat. It was the most rapidly rising in price everyday food item at the end of last year.

Lost $ 111 billion foreign exchange reserves of Russia over the past year. Almost all of this incredible amount burned in the furnace of domestic foreign exchange market in a desperate attempt to support the Central Bank exchange rate. By the beginning of 2014 the international reserves stood at 510.5 billion dollars by the end of the year - 398.9 billion. Nevertheless, the backup volume exchange and gold accumulated by Russia, remains one of the largest in the world. They guarantee another two relatively quiet life in all the turmoil in the country and around it. And there, staring, and oil prices again grow or come true 25-year-old dream of economic diversification.

$ 130 billion "flowed" from Russia in 2014. This two and a half times more than in 2013. In previous years, economic growth is greatly facilitated by capital inflows.

87.8 billion Central Bank sold on the domestic market to smooth out fluctuations in the ruble. In November, the Central Bank changed its monetary policy, refused to intervene in the defined boundaries of the corridor of the currency basket, in fact releasing the ruble float freely. And then he backed his sudden intervention. Yet the Central Bank is now mainly affects the rate indirectly through money market rates.

sepheronx wrote:They are true. But good luck finding a source that isnt mainstream news. Like bashneft takeover was only mainstream news.

Austin wrote:
Sergey Glazyev Blasts Russia Central Bank in Economic Manifesto

http://russia-insider.com/en/2014/12/13/1861

Vann7 wrote:

Austin wrote:
Sergey Glazyev Blasts Russia Central Bank in Economic Manifesto

http://russia-insider.com/en/2014/12/13/1861

Ignore that idiot..
He have been proved wrong.. He told a story of a central bank that conspire against Russia which is BULLSHIT...
Putin himself backed all central bank actions.. Russia simply let the ruble go very low to buy out all their
energy shares at hands of the west for pennies.  

He also said that the central bank was blockading Putin orders of a payment national  card.. that it was not doing anything.. which is FALSE.. already several news that some banks already testing the card. Ignore Glaziev clown for now.. he knows nothing of Russia or the strategy the Russian Government have for its economy.

Russian budget will now receive not only half of the income from energy sales ..but most of it now.. Russia central bank also gave loans to all their big companies means the interest will stay in Russia.

TR1 wrote:Indeed, they seem less dangerous to the world as a whole, humoursly enough.

But I was responding to Rmf saying he hasn't heard Russian politicians say anything worse...dig a little you will find some very shocking statements.

magnumcromagnon wrote:

Attacking Glazyev, from the likes of you? Stick to things you know best: clutching straws on things such as the moon landing, and how better looking French ships look compared to Russian ships, claiming the Nazi's and Hitler were the good guys (and you claim to be pro-Russian)...