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China buys US tressuries to keep its Yuan artifically low so that its major exporter county US it can derive benefit but for Russia its not the case , Gold is real wealth and its better for CBR to increase Gold reserves to around 4000T
+43
Godric
Singular_trafo
KoTeMoRe
Viktor
Grazneyar
DerWolf
VladimirSahin
sepheronx
George1
loko
Vann7
NationalRus
zg18
Austin
kvs
A Different Voice
Karl Haushofer
PapaDragon
higurashihougi
Kimppis
Rmf
Bidoul
franco
GarryB
OminousSpudd
Project Canada
TheArmenian
Walther von Oldenburg
Werewolf
Big_Gazza
medo
ExBeobachter1987
Backinblack
Hannibal Barca
AlfaT8
x_54_u43
JohninMK
Regular
magnumcromagnon
max steel
par far
Neutrality
flamming_python
47 posters
Russian Economy General News: #6
Austin- Posts : 7617
Points : 8014
Join date : 2010-05-08
Location : India
sepheronx
sepheronx- Posts : 8839
Points : 9099
Join date : 2009-08-06
Age : 35
Location : Canada
I dont agree with it either. But with Roscosmos being classified as a comoany, they probably realize that Roscosmos will get contracts or has them through private transactions and will profit from it. This just seems to hurt Russian nations own initiatives instead of roscosmos. Good and bad. Also, Roscosmos is one of Russias major developers that would be using Russian import substitution products. Cutting funding will hurt that too. They will just end up taking much longer to do projects now and any ambitions will be sidelined for now...Austin wrote:Not sure why Russia is cutting Space Funding by 500 billion roubles it would be like $7-8 billion considering they are leaders in Space.
Its one of the worst decision to cut funding ,For a country that claims to have resourse base of $30 Trillion , Cutting funding for short term that too for 10 year period is not a wise decision.
sepheronx- Posts : 8839
Points : 9099
Join date : 2009-08-06
Age : 35
Location : Canada
Mr. VV the P gave mention and data regarding small/medium private companies in Russia in terms of performance and talks of opporunities:
http://tass.ru/en/economy/850833
http://tass.ru/en/economy/850833
"The number of registered commercial organizations in small business sector increased by 2.9% during 2015, and the number of individual entrepreneurs increased by 3.7%," he said. According to the head of the state, "there is a modest increase in revenues." He gave the example of small businesses, which in January-September 2015 had a 8% increase in revenues as compared with the same period in 2014. "In wholesale trade it was plus 4.5% in the same period," Putin said.
max steel- Posts : 2930
Points : 2955
Join date : 2015-02-13
Location : South Pole
Corruption has nothing to do with Innovation unless they are eating RnD fund also.
kvs- Posts : 15851
Points : 15986
Join date : 2014-09-11
Location : Turdope's Kanada
max steel wrote:Corruption has nothing to do with Innovation unless they are eating RnD fund also.
No, but the innovation metric is the same crap as the corruption index. The columns are the terms used to calculate
this index. The productivity column is 1) wrong and 2) not related to innovation. Anyone who thinks that the Russian
economy fails to adopt new technologies is a certifiable idiot.
Hannibal Barca- Posts : 1457
Points : 1467
Join date : 2013-12-13
Nobody was expecting, and it isn't rational either, to expect oil down to 18$
Russian economy has a lot of shortcomings but this is economic war.
This is not the time to make changes and adopt policies, this is the time to squeeze time and if you survive you sit to the winner's table.
Later Russia must finally decrease the influence from hydrocarbon exports.
Russian economy has a lot of shortcomings but this is economic war.
This is not the time to make changes and adopt policies, this is the time to squeeze time and if you survive you sit to the winner's table.
Later Russia must finally decrease the influence from hydrocarbon exports.
kvs- Posts : 15851
Points : 15986
Join date : 2014-09-11
Location : Turdope's Kanada
Hannibal Barca wrote:Nobody was expecting, and it isn't rational either, to expect oil down to 18$
Russian economy has a lot of shortcomings but this is economic war.
This is not the time to make changes and adopt policies, this is the time to squeeze time and if you survive you sit to the winner's table.
Later Russia must finally decrease the influence from hydrocarbon exports.
Dependence on oil and gas by Russia is a NATO propaganda trope. The Russian government taxes resource extraction instead
of the population. That is why the fraction of oil and gas is so high in the government revenues and why Russians
pay a 13% flat income tax. The Russian economy is already sufficiently diversified since oil and gas account for less than
13% of GDP. Listening to all the yapping on this subject one would think that it is over 80% of GDP.
There is simply zero urgency for any adjustment away from oil and gas. No policies should be implemented to force
the natural evolution of the Russian economy. The crisis is being manufactured by NATO propagandists who want Russia
to act stupid and shoot itself in the head with moronic reforms that will put the tax burden on the general public. NATO
wants political discontent in Russia and taxation increases are a great tool to achieve such discontent.
The whole notion of forcing GDP diversification in a capitalist economy is nonsense. It is basically central planning. So
NATO wants Russia to centrally plan itself into problems in the name of some BS about "too much" dependence on oil and
gas.
BTW, the current oil price is destroying the Canadian oil industry and putting Canada into a recession. It is also destroying
the oil industry in the USA that relies on high prices to be viable. Clearly, this price slump is self-limiting. Sooner rather than
later the supply will fall enough to create a major price rebound even if the world is in a recession.
Hannibal Barca- Posts : 1457
Points : 1467
Join date : 2013-12-13
It accounts for 75% of exports. Enough said.
sepheronx- Posts : 8839
Points : 9099
Join date : 2009-08-06
Age : 35
Location : Canada
But 80% of the Russian economy is based on domestic consumer demand. Oil and gas account for 13% of that. Export wise, its important, but not for overall economy. Now its dropping considerably while export of machines (well, still energy related, from rosatom and powermachines) now outdoing defense sales, and defense sales still up. Even Russian agriculture equipment exports jumped 1.5x last year. I say that is a good move. For oil and gas, I think it is in Russias best interest for long term contracts mixed in with LNG sales and selling petrol to countries like Iran.
TheArmenian- Posts : 1880
Points : 2025
Join date : 2011-09-14
Hannibal Barca wrote:It accounts for 75% of exports. Enough said.
Not anymore.
Just do the math. It used to be 75% when the price of the barrel was above $100.
Now that the price is around $27, it constitutes only about 25% of its exports.
kvs- Posts : 15851
Points : 15986
Join date : 2014-09-11
Location : Turdope's Kanada
sepheronx wrote:But 80% of the Russian economy is based on domestic consumer demand. Oil and gas account for 13% of that. Export wise, its important, but not for overall economy. Now its dropping considerably while export of machines (well, still energy related, from rosatom and powermachines) now outdoing defense sales, and defense sales still up. Even Russian agriculture equipment exports jumped 1.5x last year. I say that is a good move. For oil and gas, I think it is in Russias best interest for long term contracts mixed in with LNG sales and selling petrol to countries like Iran.
Apparently some people really believe that Russia's GDP is derived from exports. As you point out this is utter nonsense. Most of
Russia's GDP is internally generated. Russia ain't no banana republic depending on a single commodity for its economy.
And the point by TheArmenian is the coup de grace for this BS. Russia's economy would have collapsed by 40% if oil and gas exports
accounted for 75% of the GDP.
Regular- Posts : 3894
Points : 3868
Join date : 2013-03-11
Location : Ukrolovestan
Actually low oil prices only stimulate Russian economy and it helps with diversification. Far too long pipemen where the ones running the show.
Bit of shock therapy doesn't hurt.
Bit of shock therapy doesn't hurt.
PapaDragon- Posts : 13471
Points : 13511
Join date : 2015-04-26
Location : Fort Evil, Serbia
Regular wrote:Actually low oil prices only stimulate Russian economy and it helps with diversification. Far too long pipemen where the ones running the show.
Bit of shock therapy doesn't hurt.
This^^^
From earlier article I posted:
....The result is a marked fall in pressure on the rouble. Whereas on 17th December 2014 it fell to a low of 80 roubles to the dollar on a price for Brent crude of $58.70 a barrel, today (18th January 2016) as of the time of writing it is trading at just below this price despite a Brent crude price of under $28 a barrel.....
http://russia-insider.com/en/business/russian-economy-2015/ri12274
max steel- Posts : 2930
Points : 2955
Join date : 2015-02-13
Location : South Pole
Remember how Russia used to be the world's biggest grain IMPORTER?
Slumping Ruble Hits French Wheat as Competition Heats Up: Chart
By Whitney McFerron
(Bloomberg) --
The slumping ruble is good news for Russian wheat exporters but bad for the French.
Milling wheat futures dropped to a 15-month low of 163.75 euros ($179) a metric ton in Paris on Wednesday, as the euro reached the highest since 2014 against the ruble. That makes buying French supplies less appealing to those paying in other currencies.
Russia, set to become the world’s biggest wheat exporter this season, competes with French grain in international markets.
Production in both countries expanded this season, with French stockpiles expected to climb to a 16-year high after a record harvest, according to crop office FranceAgriMer.
Slumping Ruble Hits French Wheat as Competition Heats Up: Chart
By Whitney McFerron
(Bloomberg) --
The slumping ruble is good news for Russian wheat exporters but bad for the French.
Milling wheat futures dropped to a 15-month low of 163.75 euros ($179) a metric ton in Paris on Wednesday, as the euro reached the highest since 2014 against the ruble. That makes buying French supplies less appealing to those paying in other currencies.
Russia, set to become the world’s biggest wheat exporter this season, competes with French grain in international markets.
Production in both countries expanded this season, with French stockpiles expected to climb to a 16-year high after a record harvest, according to crop office FranceAgriMer.
A Different Voice- Posts : 70
Points : 76
Join date : 2015-11-13
Vneshprombank looks like it won't be rescued. The Central Bank revoked its banking license. It was not a small bank.
Vneshprombank's license revoked
Until late September 2015 Russian rating agency RAEX had a A++ rating for Vneshprombank meaning “Exceptionally high (the highest) level of creditworthiness”.
Vneshprombank's license revoked
Until late September 2015 Russian rating agency RAEX had a A++ rating for Vneshprombank meaning “Exceptionally high (the highest) level of creditworthiness”.
A Different Voice- Posts : 70
Points : 76
Join date : 2015-11-13
I've heard all kinds of numbers used to quantify the percentage of Russia's:
1. budget revenue from hydrocarbons; and
2. total export revenues from hydrocarbons.
The US Energy Information Administration published a report addressing this based upon numbers for 2013. Here are some quotes from it:
"Russia is a major exporter of crude oil, petroleum products, and natural gas. Sales of these fuels accounted for 68% of Russia's total export revenues in 2013, based on data from Russia's Federal Customs Service. Russia received almost four times as much revenue from exports of crude oil and petroleum products as from natural gas. Crude oil exports alone were greater in value than the value of all non-oil and natural gas exports."
and
"Oil and natural gas activities make up a large portion of Russia's federal budget. According to the Ministry of Finance, 50% of Russia's federal budget revenue in 2013 came from mineral extraction taxes and export customs duties on oil and natural gas."
Not endorsing the report but it is an additional data point on the subject. Full report linked below.
2013 hydrocarbon export & Budget revenue
1. budget revenue from hydrocarbons; and
2. total export revenues from hydrocarbons.
The US Energy Information Administration published a report addressing this based upon numbers for 2013. Here are some quotes from it:
"Russia is a major exporter of crude oil, petroleum products, and natural gas. Sales of these fuels accounted for 68% of Russia's total export revenues in 2013, based on data from Russia's Federal Customs Service. Russia received almost four times as much revenue from exports of crude oil and petroleum products as from natural gas. Crude oil exports alone were greater in value than the value of all non-oil and natural gas exports."
and
"Oil and natural gas activities make up a large portion of Russia's federal budget. According to the Ministry of Finance, 50% of Russia's federal budget revenue in 2013 came from mineral extraction taxes and export customs duties on oil and natural gas."
Not endorsing the report but it is an additional data point on the subject. Full report linked below.
2013 hydrocarbon export & Budget revenue
PapaDragon- Posts : 13471
Points : 13511
Join date : 2015-04-26
Location : Fort Evil, Serbia
Originally from Christian Science Monitor, more reality creeping in...
''Cheap oil roils ruble, but Russia bears the pain''
http://news.yahoo.com/cheap-oil-roils-ruble-russia-bears-pain-195430842.html
sepheronx- Posts : 8839
Points : 9099
Join date : 2009-08-06
Age : 35
Location : Canada
PapaDragon wrote:
Originally from Christian Science Monitor, more reality creeping in...
''Cheap oil roils ruble, but Russia bears the pain''
http://news.yahoo.com/cheap-oil-roils-ruble-russia-bears-pain-195430842.html
Instant garbage article, both Christian science monitor and Yahoo news. Regardless if the Ruble drops to whatever to the USD, it really doesn't effect Russians much other than buying bullcrap items that were coined as "luxury" because some jerkoffs overcharge an asian product (iPhone). In many instances, other companies that export to Russia or make in Russia have lowered prices to be able to still meet a demand.
Last edited by sepheronx on Thu Jan 21, 2016 12:26 pm; edited 1 time in total
sepheronx- Posts : 8839
Points : 9099
Join date : 2009-08-06
Age : 35
Location : Canada
A Different Voice wrote:I've heard all kinds of numbers used to quantify the percentage of Russia's:
1. budget revenue from hydrocarbons; and
2. total export revenues from hydrocarbons.
The US Energy Information Administration published a report addressing this based upon numbers for 2013. Here are some quotes from it:
"Russia is a major exporter of crude oil, petroleum products, and natural gas. Sales of these fuels accounted for 68% of Russia's total export revenues in 2013, based on data from Russia's Federal Customs Service. Russia received almost four times as much revenue from exports of crude oil and petroleum products as from natural gas. Crude oil exports alone were greater in value than the value of all non-oil and natural gas exports."
and
"Oil and natural gas activities make up a large portion of Russia's federal budget. According to the Ministry of Finance, 50% of Russia's federal budget revenue in 2013 came from mineral extraction taxes and export customs duties on oil and natural gas."
Not endorsing the report but it is an additional data point on the subject. Full report linked below.
2013 hydrocarbon export & Budget revenue
And it is instant bullshit because:
http://www.awaragroup.com/upload/awara-study-russian-economy.pdf
I did an article on propaganda from US institutions pointing out BS regarding their claims against Russia:
http://rusnews.net63.net/2015/11/11/propaganda-at-its-finest-see-how-easily-foolish-us-organizations-can-be/
kvs- Posts : 15851
Points : 15986
Join date : 2014-09-11
Location : Turdope's Kanada
This retarded drivel about Russia's oil exports has to stop. It is nothing but spam in this thread.
https://en.wikipedia.org/wiki/Comparative_advantage
Russia exports oil because it has a comparative advantage in exporting it. Comparative advantage is the basis of international trade.
All the people who insinuate that Russia should export microchips and cars are engaged in command economy thinking. They want
Russia to force itself onto the world market in those goods and they want state planners to transform Russia's economy to enable this.
This is not how free market economies work. At some point in the future Russia may well be exporting microchips but that is not
something that can be forced via "reform". One does not create world class corporations and reputation by "reform". The only
things that should concern the Russian government is to maintain stability via the proper legal and regulatory infrastructure.
https://en.wikipedia.org/wiki/Comparative_advantage
Russia exports oil because it has a comparative advantage in exporting it. Comparative advantage is the basis of international trade.
All the people who insinuate that Russia should export microchips and cars are engaged in command economy thinking. They want
Russia to force itself onto the world market in those goods and they want state planners to transform Russia's economy to enable this.
This is not how free market economies work. At some point in the future Russia may well be exporting microchips but that is not
something that can be forced via "reform". One does not create world class corporations and reputation by "reform". The only
things that should concern the Russian government is to maintain stability via the proper legal and regulatory infrastructure.
sepheronx- Posts : 8839
Points : 9099
Join date : 2009-08-06
Age : 35
Location : Canada
kvs wrote:This retarded drivel about Russia's oil exports has to stop. It is nothing but spam in this thread.
https://en.wikipedia.org/wiki/Comparative_advantage
Russia exports oil because it has a comparative advantage in exporting it. Comparative advantage is the basis of international trade.
All the people who insinuate that Russia should export microchips and cars are engaged in command economy thinking. They want
Russia to force itself onto the world market in those goods and they want state planners to transform Russia's economy to enable this.
This is not how free market economies work. At some point in the future Russia may well be exporting microchips but that is not
something that can be forced via "reform". One does not create world class corporations and reputation by "reform". The only
things that should concern the Russian government is to maintain stability via the proper legal and regulatory infrastructure.
Well, and it is also simply downright wrong on the information provided, which is the main point here. The data is openly available yet people rather use data from US institutions and whatnot that is simply BS and not really proven, compared to well, the numbers that are brought to light from the Russian federal government and other institutions like Awara group whom is an investment company in Moscow that deals with international institutions of all types.
As well, this was pointed out long ago the fact that Oil and Gas did not really constitute a huge part of Russia's economy and as was pointed out, the further it drops in value, the further it drops in terms of export % to total revenue gained from exports.
But as you have noticed yourself, this is going to be a dead horse we will be beating for years or decades about Russia on this forums, if we are still around and if this forums is still up. Because as you have noticed, we have talked about this time and time again for years. Actually, the original thread for oil and gas industry in Russia was "The dependence on oil and gas".
Vann7- Posts : 5385
Points : 5485
Join date : 2012-05-16
Kudrin is again cheerleading the western Liberals... he says Russia economy
will sink 6% in recession in 2016 if Oils start at $30 and then he went to say
that never again Oil prices will return as high as a decade earlier.
Kudrin: Russia’s budget deficit to amount to 6% of GDP in 2016, if price of oil is $30
http://tass.ru/en/economy/851009
however UN economic experts paint a totally different picture.
They predict Russia 0.7% growth. with 10% inflation.
http://tass.ru/en/economy/851073
So which one is it? What people here predict will happen if things remain the same
as today?
sepheronx- Posts : 8839
Points : 9099
Join date : 2009-08-06
Age : 35
Location : Canada
Vann7 wrote:
Kudrin is again cheerleading the western Liberals... he says Russia economy
will sink 6% in recession in 2016 if Oils start at $30 and then he went to say
that never again Oil prices will return as high as a decade earlier.
Kudrin: Russia’s budget deficit to amount to 6% of GDP in 2016, if price of oil is $30
http://tass.ru/en/economy/851009
however UN economic experts paint a totally different picture.
They predict Russia 0.7% growth. with 10% inflation.
http://tass.ru/en/economy/851073
So which one is it? What people here predict will happen if things remain the same
as today?
Vann, give it up already. As well, you need to kinda work on your reading comprehension. 6% growth in debt isn't an instant drop of 6% of economy. It just means debt goes up which is quite possible.
Kudrin said ridiculous claims last year too. Who cares. The guy doesn't hold any position of authority or has any say in the matters of the economy of the country. He is a has been that was fired for his incompetence and is claimed to have had mental breakdowns. His value in input to the country is about as much as mine, yours, KVS or Charles Manson. Ronald McDonald has more say due to their investments in the country.
Austin- Posts : 7617
Points : 8014
Join date : 2010-05-08
Location : India
Foreign direct investment in Russia in 2015 collapsed by 92%
http://www.interfax.ru/business/490758
http://www.interfax.ru/business/490758
Moscow. January 21. INTERFAX.RU - The total amount of foreign direct investment worldwide increased in 2015 by 36% compared with the previous year and amounted to $ 1.7 trillion. At the same time in Russia it decreased by 92%, according to the World Investment Report prepared by the United Nations Conference on Trade and Development (UNCTAD).
Last year, global investment peaked after the global economic and financial crisis of 2008-2009. At the same time the United States last year regained the traditional first place by the volume of foreign investment, surpassing China to Hong Kong.
The inflow of foreign direct investment in the US economy was $ 384 billion. US in the lead on this indicator since the early 1980s, when UNCTAD started collecting data on financial flows to 2014, when the top line beat out China.
The club's most attractive countries for investors in 2015 also included Hong Kong (China) ($ 163 billion), Mainland China ($ 136 billion), the Netherlands, United Kingdom, Singapore, India, Brazil, Canada and France.
The main factor for the growth of the global foreign direct investment has been the influx of funds in industrialized countries, has almost doubled. However, this increase was mainly driven by cross-border mergers and acquisitions with a minimal contribution to the projects related to productive assets. The volume of M & A transactions jumped by 61% - to $ 644 billion.
Investment flows into developing countries, compared with the year 2014 increased by only 5% to the end of 2015 was $ 741 billion. Investments in developing countries in Asia increased by 15%, while India has doubled to $ 59 billion.
The report finds that in countries with economies in transition the flow of foreign direct investment declined by 54%. They attribute this decline to the conflict and decline in commodity prices. The largest decrease in foreign direct investment in this group was observed in Russia and Kazakhstan - 92% and 66%, respectively.