Russian Economy General News: #5

JohninMK wrote:

Karl Haushofer wrote:

Neutrality wrote:

Karl Haushofer wrote:

magnumcromagnon wrote:

Karl Haushofer wrote:

Neutrality wrote:Norway, by the way, also has a massive oil and gas export. Why is no one bitching about them? I guess it's cool and hip to hate on Russia today.

Norway would be a wealthy country even without oil. Oil just makes Norway a filthy rich instead of a wealthy country.

They also have ridiculously high taxes, and a ridiculously high cost of living. Very few people are considered wealthy in Norway, the high wages is basically negated with high taxes, interlocked in a dance called 'zero-sum gain' tango.

They have high taxes because they can afford that. They use the tax money for infrastructure and ridiculously beneficial social benefits.

I have been to Norway. It is a paradise even compared to Finland.

What are you talking about? What would be the locomotive behind high Norwegian wages then? Fish trade? Good luck with that.

Norway was a wealthy country even before the current oil boom. Without oil Norway would be a tad below Sweden and Denmark and about the same level with Finland.

No-one is bitching about Norway's gas/oil exports (gas now bigger into EU than Russia apparently) as they are part of the 'Club'.

I am probably as well qualified as anyone here to comment on Norway as I have been in and out of the place since 1963 and was married there. There have been roughly three periods when (parts of) Norway was rich before now, driven by Vikings, whaling, herring and now oil/gas. Prior to oil in the early mid 70's it might have looked good but it was a façade driven by the high tax/spent socialist agenda, it was certainly not 'wealthy' throughout. Then came North Sea oil and everything changed over the next 10-15 years. They were indeed now wealthy and everyone was in on it.

But that is changing. Norway has been hit harder economically over the past year than anyone. The oil price war struck them harder than Russia as it is more expensive to extract (you would not believe the pay packages and time on rig for workers) whilst the sanctions/counter sanctions have again hit them mainly in fish. First the Chinese stopped buying when Norway criticised their human rights, then last year Russia stopped both salmon and white fish imports. Lay-offs are rippling their way along the coast, especially in high income oil/gas development related companies. As to their wealth, they do have a huge social security fund (estimated to own 5% of European shares) but then they also have large overseas debts.

To give you an idea of the problem, the Kroner has depreciated against the UK£ by around 15-20% over the past 18 months. Like others in the West they are caught up in the debt bubble.

Anyway, that's enough OT.

higurashihougi wrote:Russia put sanction against Ukrainian salt producer, Artemsol.

Artemsol is a major salt producer of Ukraina, and it used to occupy 25% of Russian market.

http://voicesevas.ru/news/15966-sol-kak-podmenili.html

PapaDragon wrote:
''Belgium Lost Over $500Mln Due to Russia-EU Trade Restrictions''

http://sputniknews.com/europe/20150805/1025421891.html

Neutrality wrote:

PapaDragon wrote:
''Belgium Lost Over $500Mln Due to Russia-EU Trade Restrictions''

http://sputniknews.com/europe/20150805/1025421891.html

I confirm and I'm quite sure it's more than that. Farmers will be holding a large protest against the Russian embargo in Brussels. The agriculture business was already doing badly before the Russian sanctions hit but now that they lost the Russian market you can imagine how terrible it is.

PapaDragon wrote:

Neutrality wrote:

PapaDragon wrote:
''Belgium Lost Over $500Mln Due to Russia-EU Trade Restrictions''

http://sputniknews.com/europe/20150805/1025421891.html

I confirm and I'm quite sure it's more than that. Farmers will be holding a large protest against the Russian embargo in Brussels. The agriculture business was already doing badly before the Russian sanctions hit but now that they lost the Russian market you can imagine how terrible it is.

Well, nothing is ever terrible in Belgium but I am just glad that this Ukrainian clisterf*ck is becoming such a pain in everyone's arrogant ass.

Speaking of which:

''Russian Market 'Almost Lost' for German Agriculture Due to Sanctions

Joachim Rukwied, the head of the German Farmer Union, said that German farmers have lost 600-800 million euros due to sanctions against Russia''

http://sputniknews.com/business/20150805/1025428085.html

Contrary to US President Obama's gloomy predictions, Russia's economy is not in tatters, a Markit survey has indicated Wednesday.

"July's headline Business Activity Index for the [Russian] service sector recorded a level of 51.6, up from 49.5 in the previous month… Moreover, the rate of growth accelerated to the highest recorded for twenty months amid reports that a more positive economic climate was driving demand for services upwards," the latest report released by Markit, a global provider of financial information services, reads.

The report notes that the respective Composite Output Index improved to 50.9 in July, up from 49.5 in the preceding month.

The rate of inflation eased to the lowest seen for 11 months, while the unemployment rate "inexplicably" declined to 5.4 percent.

"Amid reports of a gradually improving business climate, which led to the best increase in new work for 20 months, the Russian service sector helped to drive some marginal growth of the economy at the start of the third quarter of 2015," Senior Economist at Markit Paul Smith emphasized in the report.

In general, Russia has done better than anyone expected, Western experts admit.

In mid-July Russian Prime Minister Dmitry Medvedev claimed that the worst scenarios for Russia's economy have been avoided.

"The worst scenarios, perhaps, did not take place. The economic situation remains difficult, but controlled, thanks, among other things, to the joint work of the government, the Central Bank, the legislature," Medvedev said.

In turn Russia's Economy Minister Alexey Ulyukayev emphasized that Russia had already passed "the lowest point," adding that from the third quarter, "there will be some adjustment."

The Russian economy had previously faced a downturn caused by the global fall in oil prices and, to a lesser extent, by sanctions policy imposed by the West.

flamming_python wrote:

higurashihougi wrote:Russia put sanction against Ukrainian salt producer, Artemsol.

Artemsol is a major salt producer of Ukraina, and it used to occupy 25% of Russian market.

http://voicesevas.ru/news/15966-sol-kak-podmenili.html

Yeah, what did I tell you all in the other thread about Russia continuing to tighten the screws, huh?

And some of you are all like 'OMG Russia supportz Maidan!'

Karl Haushofer wrote:Norway would be a wealthy country even without oil. Oil just makes Norway a filthy rich instead of a wealthy country.

max steel wrote:Inflation will return but 1 rouble to 60 dollar is the ideal value now and we can only hope it to stay there. Oil prices are expected to go down further due to Iran glut but its difficult to speculate.

sepheronx wrote:Then outside goods become even more expensive while a demand is still in place, so it becomes more ideal for local developers to develop it themselves. See Iran for example. Still producing, still consuming and still giving the us a middle finger while their currency dropped more than 3 fold from 1979 to now.

Or they could stop free floating rouble as speculators effectively tied it to oil when that isnt what free floating was supposed to do (so speculators won) so they could tie it to something officialy or have capital controls. But those normally do not work.

Project Canada wrote:Russia begins mass destruction of illegally imported food

http://www.rt.com/business/311759-russia-food-embargo-destruction/


I dont know why it is such a big issue for some people in Russia (mostly opposition) when the ruble is trading like 60 per US dollar, I know it's lost its value but why even bother compare it to the US dollar? an Enemy currency, a currency of a nation that has limitless hostilities against Russia! this is the primary reason why Putin should work double time to thrash the US economy and demolish it completely from it's current position as the dominant economic power in the world.

Project Canada wrote:Russia begins mass destruction of illegally imported food

http://www.rt.com/business/311759-russia-food-embargo-destruction/


I dont know why it is such a big issue for some people in Russia (mostly opposition) when the ruble is trading like 60 per US dollar, I know it's lost its value but why even bother compare it to the US dollar? an Enemy currency, a currency of a nation that has limitless hostilities against Russia! this is the primary reason why Putin should work double time to thrash the US economy and demolish it completely from it's current position as the dominant economic power in the world.

Growers Russian Crimea has fully provided for the Peninsula food wheat. The main volume of the Crimean harvest — 800 thousand tons of high quality grain durum. In Russia a good wheat harvested only Tauris and Kuban.

On the first week of August already cleaned 470 thousand hectares of fields and harvested 1.36 million tons of grain. All Crimeans are planning to collect in the range of 1.5 million tonnes, which is 27% more than last year.

Automaker Ford Sollers started to install on their cars out plastic parts developed in Russia. As stated in the company first got them models of Ford Focus and Ford Fiesta.

Just from a local plastics currently produced 86 of machine parts for Ford, and by the end of 2015 , that number will grow to 150.

Ural Industrialists invented and conducted a successful operational tests of import-substituting top drive systems (TDS 320 ACR) for drilling rigs. The equipment designed "Uralmash NGO holding", was tested on Orbiscom field in Khanty-Mansiysk, where it has drilled three wells with a total depth of 11 kilometers.

Factory LLC "Paritet-NN for the production of concrete blocks was opened in Bogorodsk on Thursday, August 6. The capacity of the production line of the enterprise will be 144 thousand cubic meters per year, which would allow for the construction of 270 thousand square meters of housing.

LTD "Almaz-Antey telecommunications" (Moscow), part of the concern PVO "Almaz-Antey", chose SprutCAM — domestic CAM system for the development of control programs for machines and machining centres with CNC and industrial robots.

LTD "Almaz-Antey telecommunications" ("AAT") — the first state system integrator. One of directions of activity of "AUTOANTIBODIES" — is the design, manufacture and sale of Russian complexes with industrial robots for automation of various technological processes, including complexes with robots for 3D milling.

Company of the holding "Schwabe" — JSC "Vologda optical and mechanical plant" (JSC "voms") — supplied Germany with optical sights for hunting and sporting weapons, as well as brackets.
The contract was signed following the talks, held in early March at the 42nd International trade fair IWA & OutdoorClassics in Nuremberg. Active participation in international exhibitions allows JSC "was" to increase exports of its products, which now comes in 21 countries.