Russian Economy General News: #3

North Korea is believed to be in talks with Russian companies over a project aimed at modernizing the country's electric power transmission network, Chosun Ilbo reports.

higurashihougi wrote:Surely the White House will blah blah blah about "dictactor Putin" and "totaliarianism"

Rmf wrote:as exchange rate stabilises that should be the first thing they do. also much needed is a dedicated agricultural bank with longerteerm interest rate credits, soon the new season will start ,this is a big minus for russian economists.

Pepe Escobar, for RT wrote:‘Empire of Chaos’ in the House

Pepe Escobar is the roving correspondent for Asia Times/Hong Kong, an analyst for RT and TomDispatch, and a frequent contributor to websites and radio shows ranging from the US to East Asia.

No one in Western corporate media will tell you why US President Barack Obama is hitting Riyadh with a high-powered delegation to “pay his respects” to the new House of Saud potentate, King Salman.
Talk about a who’s who – including CIA head John Brennan; General Lloyd Austin, head of US Centcom; Secretary of State John Kerry; leading House Democrat Nancy Pelosi; and even senile Senator John “Bomb Iran” McCain.
It must have been heart wrenching for most in this crowd to skip a visit to the Taj Mahal in India so they would be part of the last-minute, “unscheduled” stop in Riyadh.
This is how the astonishing mediocrity that doubles as US Deputy National Security Adviser Ben Rhodes, spun it; “Principally, I think this is to mark this transition in leadership and to pay respects to the family and to the people of Saudi Arabia, but I’m sure that while we’re there they’ll touch on some of the leading issues where we cooperate very closely with Saudi Arabia.”
The White House and the Pentagon did not bother to “pay their respects” in person to the people of France after the Charlie Hebdo massacre. The House of Saud – “our” top bastards in the Persian Gulf – is of course much more valuable.
And yet, Air Force One, we got a problem. High-level US financial sources assure this correspondent the trip is all about Obama shoring up the new King’s support for their financial/economic war on Russia as the House of Saud is starting to have second thoughts. The Saudi role in this war has been to come up with the oil price shock – which is hurting not only Russia but also Iran and Venezuela, among others. Besides, the US puppet theoretically in charge in Ukraine, Petro Poroshenko, has just visited Saudi Arabia.
Russia is not Iran – with all due respect to Iran. If the House of Saud really believes they are talking to the head of a superpower rather than a ventriloquist’s puppet – which is Obama’s role – they are effectively doomed. Nothing Obama says means a thing. The real ‘Masters of the Universe’ who run the ‘Empire of Chaos’ want the House of Saud to do most of their dirty work against Russia; and in a later stage they will take care of the “towel heads” - as the saying goes in Washington - over their development of nuclear missiles with Pakistan. And especially because the Saudi-launched oil price war is bound to destroy the US oil industry - against US national interests.
The House of Saud has absolutely nothing to gain from this undeclared financial/economic war on Russia. The Saudis have already “lost” Yemen and Iraq. Bahrain is held by mercenary troops containing the alienation of the Shia majority. They are freaking out with the possibility of ultimate “enemy” Iran reaching a nuclear deal with His Master’s Voice. They are desperate that “Assad won’t go”. They want every Muslim Brotherhood in sight – or the vicinity – jailed or beheaded. They fear any Arab Spring-style stirrings as worse than the plague. And then there’s the fake Caliphate of ISIS/ISIL/Daesh threatening to go all the way to Mecca and Medina. The House of Saud is effectively surrounded.

The suicide roadmap

Meanwhile, as the tempest approaches, all is smiles – amid a silent family bloodbath. The powerful Sudairi clan has exacted their “revenge” as King Abdullah’s corpse was still warm. King Salman, almost 80, and with Alzheimer’s about to turn him into mush, took no time to appoint his nephew Mohammed bin Naif as deputy crown prince. And just in case nepotism was not evident enough, he also appointed his son Prince Mohammed bin Salman as defense minister. Mohammed bin Naif is a Pentagon/CIA darling; the House of Saud’s head of counterterrorism.
So yes, this is a desert version of Giuseppe di Lampedusa’s classic The Leopard; Se vogliamo che tutto rimanga com'è bisogna che tutto cambi (“things must change, in order that they can stay the same”.) But the juicier bit is that this seems to apply much more to the House of Saud nowadays than to the ‘Empire of Chaos’.
Apparently, the game of thrones at “our” bastard’s abode leads to everything staying the same; they remain “our” privileged bastard. The Pentagon even came up with the lovely idea of having the Chairman of the Joint Chiefs of Staff sponsor an essay competition to honor late King Abdullah.
So shell out your essays lavishing the King for the no holds barred repression of the Shia minority in oil-rich eastern Saudi Arabia. Praise him for the sentencing of Sheikh Nimr Baqir al-Nimr - a popular Shia cleric and outspoken political dissident; he should be beheaded, Daesh-style, just because he led a non-violent movement committed to promoting Shia rights, women’s rights, and democratic reform in Saudi Arabia (even Human Rights Watch has admitted that Saudi Arabian Shias “face systematic discrimination in religion, education, justice, and employment.”)
Honor the late King for the thousands of political prisoners; “terrorism” charges against women who dare to drive; the 25 percent of the population living under the poverty line; and last but not least, for facilitating the expansion of al-Qaeda in Iraq, who turned into ISIS. The Pentagon will love you for that.
All that desert storm of Saudi cash spent on global Wahhabi proselytizing and indoctrinating – and I’ve seen this from the Maghreb to Java – has been such a powerful legacy; a medieval, toxic “religion” (nothing to do with legitimate Islam) that will keep destroying lives and communities and breeding fanatics till Kingdom Come. Hail the King for that – on behalf of the Pentagon. And forget about reading any of this on Arab corporate media – which is totally controlled by the House of Saud.
The House of Saud “reforming”? Away from that nefarious, barbarian Salafi religious establishment? That’s the joke of the millennium. Everything will stay the same.
But playing the ‘Empire of Chaos’ game – financial/economic war on Russia - is a game-changer, as in playing with fire. US/EU sanctions, attacks on the oil price and the ruble by giant derivative players as agents, are something way above the Saudi pay grade. The House of Saud swore that they didn’t change their production quota during 2014. But there was an excess supply – and it was brought into the market to help cause the oil price crash, alongside the manipulation by derivatives speculators.
Scores of oil analysts still can’t figure out why the House of Saud went after Russia; all reasons are political, not economical (Russian support for Syria and Iran, the Americans agreeing with the strategy, etc.). The fact is Moscow did perceive it as a declaration of economic war by Saudi Arabia. Petroleum Intelligence Weekly, cautiously, has already hinted it may get much worse, as in “potential for disruption in Mideast Gulf monarchies.”
Beware of an Emperor bearing gifts – or mourning a late King. The ‘Empire of Chaos’ is essentially asking the House of Saud to keep going kamikaze all the way against Russia. Sooner or later someone in Riyadh will realize this is the roadmap to House suicide.

According to an official of the European Commission, the package of measures contained sectoral potential sanctions. Among the possible measures agency Bloomberg called, in particular, expanding the list of companies and banks, which are not allowed to raise funds in the European market, the new export bans in Russia technologies; restrictions on the purchase of sovereign debt; expansion of the list of persons against whom there is a ban on entry into the EU and whose assets in European countries should be frozen; disconnection from the system SWIFT.

Prime Minister Dmitry Medvedev has promised that in the case of limited participation of Russian banks in the SWIFT system "Our economic response, and indeed any other, will be without limits."

In November, the share of exports of hydrocarbons markedly decreased, but exports of machinery and equipment increased by 28% affect competitive ruble prices. wrote:

sepheronx wrote:http://sdelanounas.ru/blogs/57763/
Russia's trade balance rose

Key quoatation here:

sdelanounas' blogs wrote:In January-November 2014 foreign trade turnover of Russia was, according to the Bank of Russia, 742.4 billion US dollars (94.9% compared to January-November 2013), including exports - 459.1 billion dollars (96.9%), import - 283.3 billion dollars (91.7%). The trade balance remained positive, 175.7 billion US dollars (in January-November 2013 - positive, 164.9 billion dollars). In November, the share of exports of hydrocarbons markedly decreased, but exports of machinery and equipment increased by 28%, affecting competitive ruble prices.

sepheronx wrote:That was quick. Although, $35B isnt a whole lot, at least not what I was expecting. But hey, if it only costs them that, then good. But here I was expecting $200B for major infrastruxture programs, and import substitution. I suppose they are still seeking more FDI from China and India, at same time too, private commpanies who are complying with government.

Either that, or services and materials are that cheap to come by for Russia.

magnumcromagnon wrote:Russia to quit PACE for one year, hopefully they will decide to never rejoin this stupid counter-productive organization:

PACE strips Russia of voting rights until April over Ukraine, Russia quits for 1 yr

sepheronx wrote:That was quick. Although, $35B isnt a whole lot, at least not what I was expecting. But hey, if it only costs them that, then good. But here I was expecting $200B for major infrastruxture programs, and import substitution. I suppose they are still seeking more FDI from China and India, at same time too, private commpanies who are complying with government.

Either that, or services and materials are that cheap to come by for Russia.

Rmf wrote:

sepheronx wrote:That was quick. Although, $35B isnt a whole lot, at least not what I was expecting. But hey, if it only costs them that, then good. But here I was expecting $200B for major infrastruxture programs, and import substitution. I suppose they are still seeking more FDI from China and India, at same time too, private commpanies who are complying with government.

Either that, or services and materials are that cheap to come by for Russia.

i think it is good they are pouring that little money into banks and not more....

As part of the plan, Russia will also create a bank for ‘bad debt’ that’ll collect corporate debt and problematic company assets.

sepheronx wrote:That was quick. Although, $35B isnt a whole lot, at least not what I was expecting. But hey, if it only costs them that, then good. But here I was expecting $200B for major infrastruxture programs, and import substitution. I suppose they are still seeking more FDI from China and India, at same time too, private commpanies who are complying with government.

Either that, or services and materials are that cheap to come by for Russia.

AlfaT8 wrote:

magnumcromagnon wrote:Russia to quit PACE for one year, hopefully they will decide to never rejoin this stupid counter-productive organization:

PACE strips Russia of voting rights until April over Ukraine, Russia quits for 1 yr

Was it really that counter-productive??