Russian Economy General News: #5

kvs wrote:Austin systematically ignores my posts and repeats the drivel above.   Gazprom debt is not state debt and Siluanov should just shut up.
Here we see one of Russia's main problems: too many idiots in high places who don't even know to keep their traps shut.   The Chinese
have a saying that the mouth is the source of all calamity and I fully agree.   Siluanov's ignorant blather damages Russia's economy.  

Cyberspec wrote:

kvs wrote:Austin systematically ignores my posts and repeats the drivel above.   Gazprom debt is not state debt and Siluanov should just shut up.
Here we see one of Russia's main problems: too many idiots in high places who don't even know to keep their traps shut.   The Chinese
have a saying that the mouth is the source of all calamity and I fully agree.   Siluanov's ignorant blather damages Russia's economy.  

Austin is the Cassandra (prophetess of doom) of RDF....I remember reading articles about the imminent bankruptsy of Russia since I joined the forum

max steel wrote:Any idea on Russian purchasing power currently ? Is it diminishing ?

Austin ji thoda economy ko chod ke Military stuff pr zyada gyaan bata karo

In basic terms, as reported by BOFIT, per Rosstat, Russian seasonally-adjusted retail sales (by volume) fell more than 10% y/y in September, with non-food sales driving the figure deeper into the red. On the ‘upside’, services sales to households fell less than overall retail sales. This accelerates the rate of decline in household consumption expenditure - over 1H 2015, expenditure fell just under 9% y/y. Small silver lining to this cloud is that household debt continued to decline as Russian households withdrew from the credit markets and focused on increased savings (most likely precautionary savings).

Russian households are not the only ones that are saving. Overall external debt of the Russian Federation fell, again, in 3Q 2015, with preliminary data from the Central Bank of Russia figures putting total foreign debt at USD522bn as of end-September, down just over USD30bn compared to 2Q 2015. Per official estimates, ca 50 percent of the overall reduction q/q in external debt came from repayment of credit due, while the other 50 percent was down to devaluation of the ruble (ca 20 percent of Russian external debt was issued in Rubles).

Overall, 3Q 2015 saw some USD40 billion of external debt maturing, which means that over 1/4 of that debt was rolled over by the non-bank corporations. Per CBR estimates, ca 40% of the external debt owed by the Russian non-bank corporations relates to intragroup loans - basically debt owed across subsidiaries of the same percent entity. And over recent quarters, this type of debt has been increasing as the proportion of total debt, most likely reflecting two sub-trends:
1) increasing refinancing of inter-group loans using intra-group funds; and
2) increasing conversion of intra-group investments/equity into intragroup debt (and/or some conversion of FDI equity into intra-group debt).

Over the next 12 months (from the start of 4Q 2015), Russian foreign debt maturity profile covers USD87 billion in maturing obligations against country currency reserves of USD370 billion-odd. As noted by BOFIT, “A common rule-of-thumb suggests that a country’s reserves need to be sufficient to cover at least 100% of its short-term foreign debt to avoid liquidity problems.” Russia’s current cover is closer to 430%. And that is absent further ruble devaluations.

Karl Haushofer wrote:There were all kinds of food shortages in the country in the 1980's. Or why do you think common people were willing to spend hours standing in lines to buy food? This was the case even in Moscow. Wonder what it was like in Krasnoyarsk or Omsk then.

Indonesia will buy four Russian Beriev BE-200 aircraft for its armed forces and for cloud seeding to extinguish forest or land fires.

"We have submitted the proposal and included it in our strategic plan to buy four aircraft. This would be sufficient," the countrys Air Force Chief of Staff, Marshal Agus Supriatna, stated after meeting Vice President Jusuf Kalla here on Friday, according to Antara news.

He noted that the Beriev BE-200 aircraft is ideal for conducting water bombing operations in areas affected by fires. With additional Beriev aircraft being deployed to conduct cloud seeding operations, we would also be able to complete the operations quickly, he added.

To extinguish the current fires in Sumatra, the government has leased two Russian amphibious aircraft to conduct cloud seeding operations to create artificial rain. "Many sorties are needed. An aircraft needs 20 to 30 minutes to fetch water from the sea and 15 to 17 seconds to load before flying for 30 minutes to reach a location," he was quoted as saying by Antara news.

During the government of former president Susilo Bambang Yudhoyono, two BE-200 aircraft had been used to conduct a similar operation for several months and were leased on a contract worth up to US$5.4 million. Indonesia has also been offered the option to buy the aircraft.

"Options for 2017 already marked. Of course, the prognosis should be discussed. I can say that the federal budget deficit for 2017 adopted at the level of 2% of GDP, while in 2016 - 3%. In 2018 - just 1%. The goal in 2019 to enter the non-deficit budget, "- said Lavrov.

He stressed that while it is impossible to say that this detailed forecast, but rather a concept.

Lavrov pointed out that the budget forecast for 2017 is more positive than in 2016. The Ministry of Finance plans to reduce the budget deficit by 1% due to cost containment.

In particular, the agency has developed a number of measures to control the allocation of subsidies. Among them - the refund previously introduced subsidies on treasury accounts with the further distribution. In that case, if the subject did not realize a subsidy from the federal government and has no plans to redeploy their other needs, they will be returned to the state budget.

Lavrov said the priority will remain "subsidies on social services, grants to support the housing sector and subsidies in agriculture."

The draft budget for next year was introduced by the Government to the State Duma on October 23. Revenues are projected at 13.738 trillion rubles, expenses - 16.098 trillion rubles. The budget deficit will amount to 2.36 trillion rubles, or 3% of GDP. Document been drawn up for the next year based on the inflation rate not exceeding 6.4%.

The head of the Russian Communist Party has reiterated demands to hold a nationwide referendum on the possibility of nationalization of all major companies, saying only state control would help to prevent disasters such as the A321 air crash in Sinai.

“The ongoing crisis, including that in the aircraft building industry, is proof they can’t answer the challenges of the future. Nationalization of oligarchs’ property is long due and we hold that a nationwide referendum on the issue would seriously improve the situation,” Gennadiy Zyuganov was quoted as saying by Interfax.

The Communist chief again suggested replacing the Russian cabinet with a “government of people’s trust,” which would have more representatives from various political parties. “Our crisis is in essence a man-made phenomenon and without a reshuffle in the government, without a government of people’s trust, it will be difficult to get out of this situation,” Zyuganov stated.

sepheronx wrote:Are the communists not aware that they do not make A321's?  Has nothing to do with domestic manufacturers.

I keep seeing people post such garbage that "its Russian so it will crash" but this is an Airbus jet for crying out loud.