Russian Economy General News: #4

sepheronx wrote:That would be what, 4 agreements then?  Wow.  China will really go for it all.  Can't say I blame them.

On Thursday the finance minister told the Russian Union of Industrialists and Entrepreneurs’ Congress that the Russian economy has passed its lowest point at the end of 2014 and is now stabilizing.
Bloomberg confirmed that Russian companies represented in the Micex index are more profitable, when measured by Ebitda margins (earnings before taxes, depreciation and amortization) than the rest of the companies included in the global MSCI Emerging Market Index.
A number of Russian companies are outperforming their global peers, it said.

“One possible reason for the growth?” Bloomberg questioned. His answer was simple: sanctions. “With foreign goods unavailable, Russians had to choose homegrown products and services.”

victor1985 wrote:What make you say that? According to what i saw the americans have the eu support, arabs and others. In order to resist to that must have a own strong economy and best army.

MOSCOW, March 27. /TASS/. Russia began to recover from the "Dutch disease", Russian Finance Minister Anton Siluanov said Friday.
"The investments that previously went to the oil industry, are now beginning to decline. And the capital will be directed to other, non-oil industries," Siluanov said. According to him, agriculture is currently receiving significant investments, as well as import substitution industry. "And it is a right thing. This is the main motive of all the changes that are taking place, and we support it as a part of anti-crisis plan," the Minister said.

According to Siluanov, amendments to the 2015 budget suggest decline in investment spending by 246 billion rubles ($4.27 billion), primarily due to capital repairs, construction of individual structures "that are not directly related to the economic growth stimulation."
"Dutch disease" is the negative impact on an economy of anything that gives rise to a sharp inflow of foreign currency. The currency inflows lead to currency appreciation, making the country's other products less price competitive on the export market.

Viktor wrote:Nice  


China may invest $5.2bn in Russia’s first high speed railway

Plans have been unveiled for an ambitious new transport route through Russia with a mega road and high-speed rail network to link Asia with Europe.

At a meeting of the Russian Academy of Science, the head of the Russian Railways Vladimir Yakunin presented the idea for the Trans-Eurasian belt Development (TEPR).

Seen as a powerful and versatile transportation corridor it would join up to other networks and reach from the Atlantic to the Pacific, via the heart of Siberia and the Far East.

The project would see not only a new train network built alongside the Trans-Siberian Railway but the construction of major roads, pipelines for oil and gas, and the laying of facilities for electricity and water supplies.

full report
http://siberiantimes.com/business/investment/news/n0160-plans-for-new-transport-route-unveiled-to-link-pacific-with-atlantic/

Cyberspec wrote:

Viktor wrote:Nice  


China may invest $5.2bn in Russia’s first high speed railway

Hopefully just the first step in a planned MASSIVE infrastructure project - the Trans-Eurasian belt Development (TEPR)


Plans for new transport route unveiled to link Pacific with Atlantic

Plans have been unveiled for an ambitious new transport route through Russia with a mega road and high-speed rail network to link Asia with Europe.

At a meeting of the Russian Academy of Science, the head of the Russian Railways Vladimir Yakunin presented the idea for the Trans-Eurasian belt Development (TEPR).

Seen as a powerful and versatile transportation corridor it would join up to other networks and reach from the Atlantic to the Pacific, via the heart of Siberia and the Far East.

The project would see not only a new train network built alongside the Trans-Siberian Railway but the construction of major roads, pipelines for oil and gas, and the laying of facilities for electricity and water supplies.

full report
http://siberiantimes.com/business/investment/news/n0160-plans-for-new-transport-route-unveiled-to-link-pacific-with-atlantic/

sepheronx wrote:Kudrin at it again:

Talks of Russia’s conservative development model partly to blame for stagnation — expert
Russia’s economy will stagnate in coming 5 years — ex-minister

This guy does not give up.

sepheronx wrote:Kudrin at it again:

Talks of Russia’s conservative development model partly to blame for stagnation — expert
Russia’s economy will stagnate in coming 5 years — ex-minister

This guy does not give up.  He lost all credibility in the recent "anti Putin" marches he participated in and during his reign as finance minister, Russia was one of the lowest countries for ease of doing business in and was also in a much worst position - less diversity in economy and average wages were significantly less.

I think it is time that the media in Russia simply ignores the guy and not to bother to invite him to any gatherings in economics. In these times, especially when being sanctioned, having a conservative economic viewpoint and measure is significantly better.  Pretty much, Kudrin is against the idea of using Russias resources for their own development and development of their own industries, and simply allow more western foreigners to invest in Russia.  And he states that it is their own fault for the bad investment climate.....

Austin wrote:Russia's Gazprom: Profits plunge 70%

Austin wrote:Russia's Gazprom: Profits plunge 70%

sepheronx wrote:

Austin wrote:Russia's Gazprom: Profits plunge 70%

Ahahahahahahahahaha

Weak ruble? Did CNN just make things up? Oil and gas trade with gazprom, rosneft, lukoil, bashneft, etc are all done in USD so it would mean in Ruble terms, it would increase. All their contracts are in USD as right now, thats the energy trade currency of choice and international use.

What a bunch of dolts.

They even went to say Russias economy collapsing is hurting their own exporters as ruble drops. Yet I already published article showing trade profit increase and exports are higher. So CNN is making shit up as usual.

He also said Washington was “ready to welcome” the China-led Asian Infrastructure Investment Bank, backing off from tougher early resistance to the new development institution.

The yuan’s inclusion in the basket, which defines the value of the IMF’s reserve assets, would add to China’s global status while encouraging more central banks to hold the currency.

Currently the basket includes the dollar, the yen, the euro and the pound, and the IMF is reviewing the composition of the basket this year.

Officials at the international lender look for a currency to be used heavily in international trade as well as freely convertible. Lew said that China had more work to do.

“While further liberalisation and reform are needed for the [yuan] to meet this standard, we encourage the process of completing these necessary reforms,” Lew said in a speech at the Asia Society Northern California in San Francisco.

The yuan is already the world’s fifth most-used currency in trade and Beijing has made almost weekly strides this year in introducing the infrastructure needed to float it freely on global capital markets.

Lew, who was returning from a trip to Beijing where he met with Chinese officials, repeated the US view that China appears to have stopped intervening to weaken its currency.

But he said the true test of whether China had shifted policy would come when market pressure increased for the yuan to strengthen.

“We expect China to continue to refrain from intervention across different market conditions,” he said.

Lew also said that the China-led Asian Infrastructure Investment Bank needed to “share the international community’s strong commitment to genuine multilateral governance and decision making and ever-improving lending standards and safeguards”, according to his prepared speech.

China and 20 other countries signed a memorandum of understanding to establish the Beijing-headquartered bank in October.

Washington, worried about a China-dominated lending institution cutting into the work of the World Bank and Asian Development Bank, where the US is the leading voice, at first sought to persuade its allies to hold off from joining the banks.

Lew said Washington stood ready to welcome the China-led development bank as long as it complemented existing institutions and adopted high governance standards.

“I was encouraged by my conversations in Beijing in which China’s leaders made clear that they aspire to meet high standards and welcome partnership,” Lew said.

In a wide-ranging speech that touched on trade, regulations and international finance, Lew also warned China against blocking foreign technologies, saying this could damage Sino-US relations.

Austin wrote:What really qualifies the Yen and Pound to be considered as reserve currency basket in the IMF ?

China economy is much bigger than Japanese and UK and so is its trading base.

Couple of additions and comments.

1) We already know the exact figure for housing built for the year. This is 81 million m2:

http://sdelanounas.ru/blogs/57817/

2) The estimate of the total cost of our natural resources 2 quadrillion rubles was the so-called "long" scale, where a trillion should trilliard (1,000 trillion) and only then quadrillion (1 million trillion).

30 trillion dollars of our total mineral reserves are unlikely to be too little thought or obtained at cost.

You can roughly estimate some indicators:

total oil reserves in Russia up from 60 to 120 billion tons (440-880 billion barrels).

at oil prices of $ 50 per barrel - this is from 22 to 44 trillion dollars. However, already in 2016 predicted the return of the price to $ 100 a barrel, and by 2017 it can take off and up 200 dollars per barrel.

At a price of $ 100 a barrel - our oil reserves will already cost 44-88 trillion

Plus natural gas reserves in Russia's largest in the world, more than 50 trillion m3. Price per 1000 m3 - about 350-380 dollars. That is our gas is even 17-20 trillion.

Coal reserves in Russia is estimated at 160 billion tons (2nd place in the world), at a price per ton of about 50-100 dollars - another 14 trillion.

That is only for hydrocarbons - that's 75-100 trillion.

Plus reserves and gold production, Russia ranks second in the world, our proven reserves of gold up 13 thousand tons, that's 0.5 trillion dollars (many pronoziruyut fast almost a twofold increase in the price of gold, then it is 0.8-0.9 trillion dollars).

Plus reserves and production of palladium Russia ranked first in the world, our proven reserves of palladium up 15.4 thousand tons, which is still 0.38 trillion

Plus reserves and production of platinum Russia ranks second in the world, our proven reserves of platinum are estimated at 1,100 tons, is still 0.05 trillion

Total reserves of only these three precious metals make up 1-1.5 trillion dollars.

Russia is the world leader in reserves and production of diamonds, our proven reserves of diamonds exceed 1 billion. carats

The average price of Russian diamonds - 82.21 dollars per carat. So our diamond reserves worth about 82 billion dollars.

Plus in Russia is concentrated 50% of the world's potash reserves (1st place, 20.3 billion tons), 18.6% iron (1st place, 29 billion tons).

Potassium and iron will give a total of more than $ 10 trillion.

total, only in proven reserves of hydrocarbons + some precious metals + diamond + potassium + iron our proven reserves can be estimated at more than $ 100 trillion.

Plus we have a lot of titanium, uranium, and almost all other metals in the large number of islands.

In addition to the mineral resources we have countless renewable timber resources, renewable energy stocks mighty rivers (also a resource!). All this can give a total of more 30 thousand trillion dollars, instead of 30 trillion, that is. e. those same 2 quadrillion rubles on the long scale.