Russian Economy General News: #6

WTF!
It is only me ,or the sanctions against Russia have been literary a major
Blessing for Russia development ,technology and modernization of its industry?
Is this is really happening?  

German companies are stepping up their efforts to bypass Western anti-Russian sanctions since Russian remains one of the most lucrative markets in Europe. In order to operate under sanctions, German companies open their own production in and invest in factories in Russia

http://sputniknews.com/business/20160512/1039506914/german-companies-sanctions-russia.html


How so , i have been saying for long Russia needs an industrial revolution ,and all
this european companies are moving not only their companies to Russia ,but teaching
all ,there is to know to Russians how to build modern cars ,engines ,electronics
with the european standards .

Even Ford ,an american company was said to be producing in Russia their engines.
now we need Intel and Amd and Apple to open factories in Russia.  


All this "punishment" that is known as sanctions ,seems that in the long run ,
it will dramatically change overnight Russia economy model ,from an Energy business /military shop to a manufacturing powerhouse and exporter of consumer technology. Im sure the White House will try to sabotage all this , by provoking Russia into a war with Europe. Perhaps this is
the reason PEntagon are provoking more than ever Russia and moving tanks and missiles to
its borders.

Vann7 wrote:WTF!
It is only me ,or the sanctions against Russia have been literary a major
Blessing for Russia development ,technology and modernization of its industry?
Is this is really happening?  

German companies are stepping up their efforts to bypass Western anti-Russian sanctions since Russian remains one of the most lucrative markets in Europe. In order to operate under sanctions, German companies open their own production in and invest in factories in Russia

http://sputniknews.com/business/20160512/1039506914/german-companies-sanctions-russia.html


How so , i have been saying for long Russia needs an industrial revolution ,and all
this european companies are moving not only their companies to Russia ,but teaching
all ,there is to know to Russians how to build modern cars ,engines ,electronics
with the european standards .

Even Ford ,an american company was said to be producing in Russia their engines.
now we need Intel and Amd and Apple to open factories in Russia.  


All this "punishment" that is known as sanctions ,seems that in the long run ,
it will dramatically change overnight Russia economy model ,from an Energy business /military shop to a manufacturing powerhouse and exporter of consumer technology. Im sure the White House will try to sabotage all this , by provoking Russia into a war with Europe. Perhaps this is
the reason PEntagon are provoking more than ever Russia and moving tanks and missiles to
its borders.

Actually this is good for Russia as this is real investment comparing to speculative money. Western companies are investing their own money to build their own new factories in Russia from zero and not buying existing Russian ones to close them. Someone, who invest his own money to build his own factory from zero doesn't want to close it anytime soon, but to earn money to pay back his investment. This also bring jobs for local people, their payments and taxes for the state. They also bring business for local subcontractors as well as teach people how to work in new higher level of quality. It seems many are building new factories together with Russian companies, which are than co-owners and are getting hands with this to new technologies.

"Say Cheese! Germany’s Largest Dairy Company to Start Production in Russia"

Read more: http://sputniknews.com/business/20160513/1039553064/german-company-russia-cheese.html#ixzz48XWwiDI6

The Russia-China Energy Marriage And The Multipolar World

http://oilprice.com/Geopolitics/Asia/The-Russia-China-Energy-Marriage-And-The-Multipolar-World.html

Russia continues to turn the screw on Turkey.

http://www.dailysabah.com/economy/2016/05/13/russia-cites-new-excuses-to-ban-remaining-turkish-food-imports

I wonder if Putin will play his ace in the hole and turn the gas off?

Grazneyar wrote:Russia continues to turn the screw on Turkey.

http://www.dailysabah.com/economy/2016/05/13/russia-cites-new-excuses-to-ban-remaining-turkish-food-imports

I wonder if Putin will play his ace in the hole and turn the gas off?

No, that would cause problems with EU states.

PapaDragon wrote:
"Say Cheese! Germany’s Largest Dairy Company to Start Production in Russia"

Read more: http://sputniknews.com/business/20160513/1039553064/german-company-russia-cheese.html#ixzz48XWwiDI6

DMK in Russia? Wat? Are they going to work with local milk? If yes...ha, ha fu***** ha. Poland's going to be disappoint.

The punchline here is that DMK's milk for export was primarily Polish (up to 40 % in 2013) before the were "asked" to slow down. Now, they're going to jump ship and directly set up shop in Russia, probably...for export too. Hahahaha, Germans and Capitalism...

Grazneyar wrote:Russia continues to turn the screw on Turkey.

http://www.dailysabah.com/economy/2016/05/13/russia-cites-new-excuses-to-ban-remaining-turkish-food-imports

I wonder if Putin will play his ace in the hole and turn the gas off?

What a stupid article. As if politics aren't involved in any Turkish actions. Turkey and its Sultan wannabe Erodgan
are supporting Daesh and Nusra. Kudos to Russia for slapping more sanctions on Turkey.

KoTeMoRe wrote:

PapaDragon wrote:
"Say Cheese! Germany’s Largest Dairy Company to Start Production in Russia"

Read more: http://sputniknews.com/business/20160513/1039553064/german-company-russia-cheese.html#ixzz48XWwiDI6

DMK in Russia? Wat? Are they going to work with local milk? If yes...ha, ha fu***** ha. Poland's going to be disappoint.

The punchline here is that DMK's milk for export was primarily Polish (up to 40 % in 2013) before the were "asked" to slow down. Now, they're going to jump ship and directly set up shop in Russia, probably...for export too. Hahahaha, Germans and Capitalism...

Germany support sanction in EU except Germany herself, so that in the future she will monopolize the trading between Russia and EU.

By the way, somewhere in Sachsen

https://www.rt.com/business/343144-russia-sanctions-lift-saxony/

Economic sanctions against Russia should be terminated as soon as possible, says Minister President of the German region of Saxony. Germany and Russia are longstanding trade partners capable of straightening out political differences through negotiations.

“Our goal must be to end the economic sanctions against Russia as soon as possible,” Stanislaw Tillich, who has headed Saxony since 2008 and and a member of the Bundesrat since November 2015, told Die Welt.

Russia is an important economic partner for both Germany and the EU and should continue this status for a long time, the CDU politician said.

“I hope that dialogue with Russia will be resumed so that diverging political issues can be clarified,” he said.

JohninMK wrote:Quite positive from ZH.

http://www.zerohedge.com/news/2016-05-15/end-hegemony-russian-bond-yields-plunge-below-pre-us-sanctions-levels

Good find, interesting article.

higurashihougi wrote:
Germany support sanction in EU except Germany herself, so that in the future she will monopolize the trading between Russia and EU.

meanwhile in Italy

Venice, Parliament will vote on the recognition of Crimea as part of Russia

http://ria.ru/politics/20160516/1433815694.html

The initiators of the vote became 25 MPs (of the Venetian in parliament includes 51 people).

"I want the Italian government did not make any strategic errors But anti-Russian sanctions -. This is precisely the error, as well as the failure to recognize the obvious - Crimea as part of Russia's economy in our region more than others felt the effects of the restrictive measures Over the past half year losses amounted to.. more than a billion euros and it is only in the Veneto region. "- said" News "the deputy Stefano Valdegamberi.

deputies also voted for the abolition of anti-Russian sanctions

higurashihougi wrote:
Germany support sanction in EU except Germany herself, so that in the future she will monopolize the trading between Russia and EU.

Hey, never apologize for making a buck

Russian finance ministry began to say something different than "we are out of money".

https://www.rt.com/business/343278-russia-economy-us-siluanov/

Sanctions have failed to cause significant damage to the Russian economy as the United States predicted, Russian Finance Minister Anton Siluanov said in an interview Tuesday to Rossiya 24 TV channel.

"In America, they said earlier that sanctions will tear the Russian economy apart. Now they have stopped saying this. Inflation has stabilized, reserves are growing, capital outflows declined sharply,” he said.

Siluanov: Ministry of Finance expects growth of the Russian economy by the end of 2016

"Our economy now as a whole to adapt to new conditions. Structural changes took place... By the end of the year, according to our estimates, the economy will come to a positive growth," he said in an interview in the program "Vesti on Saturday with Sergei Brilev".
Siluanov noted that only a couple of years ago in the Russian economy was dominated by export-oriented primary sector. "Now the opposite: industries that produce products with added value, with a high level of added value, these sectors began to prevail. And the profit at the end of last year, profits rose more than 20% - this was not in recent years," he said.


Подробнее на ТАСС:
http://tass.ru/ekonomika/3281241

Good news from South. EAEU/Vietnam/Iran close to 350 mln people...starts looking like interesting pool of consumers and producers.


The Vietnam agreement with the EAEU opens the way for the integration of enterprises from Asia-Pacific

"The agreement on free trade zone between the Eurasian economic Union (EEU) and Vietnam signed in may 2015 in Kazakhstan. This is the first agreement on free trade zone signed with an external partner. To date, the Agreement was ratified by Vietnam, Kazakhstan and the Russian Federation. Currently, the trade turnover between the member States of the EEU, mainly between Russia and Vietnam, is at a low level, on average, more than 4 billion US dollars", — said the diplomat.

"Under the agreement, up to 88% of current goods between member States and Vietnam will be exempted from taxes on the roadmap. The products of the strengths of the EEU, such as milk, cars, alcohol, poultry, gasoline, wheat, will have easier access to the market with more than 93 million consumers in Vietnam. Conversely, such products of Vietnam like rice, fruits, vegetables, nuts, fish, home appliances, light industry products, will have easier access to a large market with more than 183 million people," — said the Ambassador.
In addition, "the signing of the agreement also opens the way for integration of the EAEC with the Asia-Pacific region," said Nguyen Thanh Sean.

higurashihougi wrote:Russian finance ministry began to say something different than "we are out of money".

https://www.rt.com/business/343278-russia-economy-us-siluanov/

Sanctions have failed to cause significant damage to the Russian economy as the United States predicted, Russian Finance Minister Anton Siluanov said in an interview Tuesday to Rossiya 24 TV channel.

"In America, they said earlier that sanctions will tear the Russian economy apart. Now they have stopped saying this. Inflation has stabilized, reserves are growing, capital outflows declined sharply,” he said.

Naah Cremlin agit-prop, US only sends torrents of truth to hearts and minds enslaved nations

Nice  

Russian Finance Minister Anton Siluanov
Kyiv does not receive IMF loan without repayment of Russia's debt

As a member of the IMF, the Russian Federation, will not approve an aid program for Ukraine in this case.
Details: http://www.vestifinance.ru/articles/70886

Russian investments in Treasuries decreased to the lowest since October,

RDIF and Vietnam will create investplatformu $ 500 million

"Zarubezhneft" will enter into a project offshore Vietnam

Russian Air Transport, Lease Markets Endure Tectonic Shifts

https://www.ainonline.com/aviation-news/air-transport/2016-05-17/russian-air-transport-lease-markets-endure-tectonic-shifts


Yudaeva: slowing of China's economy by 1 percentage point It gives the slowdown of the Russian economy by 0.5 percentage points

http://tass.ru/ekonomika/3290734

Austin wrote: Yudaeva: slowing of China's economy by 1 percentage point It gives the slowdown of the Russian economy by 0.5 percentage points
[/b]
http://tass.ru/ekonomika/3290734

Yuayeva is next liberal Vth columnist



I hope Trump victory helps Putin flush libaral scum in toilet.

Respected Russian economist Mikhail Khazin explains why the anti-establishment candidate from the Republican Party may choose to fundamentally rearrange the global financial order, and what this would mean for Russia.

"[If] the election is won by the 'isolationists', they would put pressure on Putin to get rid of the representatives of the opposing wing," including liberal officials, economists and oligarchs, from policy-making circles, the economist explains.

Russia, Khazin suggests, is one of the few remaining countries in the world which has an economic school and macroeconomic models which can serve to benefit anti-globalist politicians "who have seriously committed themselves to pushing the 'financiers' off the global Olympus." This, he adds, "is a serious trump card, because no other base for a transition from a passive fight against the financiers…exists."

http://sputniknews.com/politics/20160517/1039776922/trump-candidacy-global-economic-implications.html

Viktor wrote:Nice  

Russian Finance Minister Anton Siluanov
Kyiv does not receive IMF loan without repayment of Russia's debt

As a member of the IMF, the Russian Federation, will not approve an aid program for Ukraine in this case.
Details: http://www.vestifinance.ru/articles/70886

but can Russia really block or next IMF reform takes place?




Russian Helicopters to Showcase New Drones at HeliRussia-2016 Exhibition

http://sputniknews.com/russia/20160518/1039798277/russia-drones-helirussia.html

@Gunship Democracy: Nguyễn Thanh Sơn, not Nguyễn Thanh Sean "Sơn" means "mountain"

Russia, Japan to Promote Bilateral Investment Cooperation

http://sputniknews.com/politics/20160518/1039790662/russia-japan-cooperation.html

more coop with Asia and less with US/EU would be a good direction

higurashihougi wrote:@Gunship Democracy: Nguyễn Thanh Sơn, not Nguyễn Thanh Sean "Sơn" means "mountain"

oh you´re soooo niggling

Nice

Russia and Thailand have signed 14 documents Details: http://www.vestifinance.ru/articles/70960

Russian Prime Minister Dmitry Medvedev on Wednesday held talks with Thai Prime Minister Prayut Chan-o-cha, which resulted in a package of documents was signed, including the investment agreement worth more than $ 1 billion, including APC and gas industry.

"Lukoil" has received 20% of the project on the Norwegian shelf

Russia Retools After Crash as Post-Oil Economy Takes Shape

To measure the vital signs of the economy, look to industries including agriculture, whose share in GDP last year rose to 4.4 percent, the highest since 2003. The success of farmers -- boosted by a weaker ruble and tit-for-tat sanctions over the conflict in Ukraine -- was one reason last year’s economic contraction of 3.7 percent was less than half the decline during the last recession, in 2009.

The legacy of the crisis so far also includes such outperformers as the information technology industry, where output soared 28 percent last year, with pharmaceuticals adding 8.8 percent and chemicals climbing 4.4 percent. No breakdown by industry is yet available for this year.

For all the signs of improvement elsewhere, oil and gas remain the lifeblood of the economy. Any gains will prove short-lived without a broader overhaul that unlocks investment.

“Some industries have benefited from the devaluation, but it’s a one-time win,” said Evsey Gurvich, head of the Economic Expert Group in Moscow. “There’s a certain shift, but a process of overhaul hasn’t yet started. What’s needed is investment, reforms, investor trust.”

Proceeds from energy account for about a third of budget revenue. That compares with 23 percent in 1996-1999 and an average of 50 percent in 2011-2014, according to Morgan Stanley. As much as a quarter of Russia’s GDP was linked to the energy industry last year, more than five times the share for agriculture.

ExBeobachter1987 wrote:Russia Retools After Crash as Post-Oil Economy Takes Shape

For all the signs of improvement elsewhere, oil and gas remain the lifeblood of the economy. Any gains will prove short-lived without a broader overhaul that unlocks investment.

“Some industries have benefited from the devaluation, but it’s a one-time win,” said Evsey Gurvich, head of the Economic Expert Group in Moscow. “There’s a certain shift, but a process of overhaul hasn’t yet started. What’s needed is investment, reforms, investor trust.”

Proceeds from energy account for about a third of budget revenue. That compares with 23 percent in 1996-1999 and an average of 50 percent in 2011-2014, according to Morgan Stanley. As much as a quarter of Russia’s GDP was linked to the energy industry last year, more than five times the share for agriculture.

Boiler plate propaganda BS.  The same people who worship laissez-faire and free trade all of the sudden pucker up their anal orifices when
they discuss Russia.    Russia is following the optimal economic path and leveraging its comparative advantage in the oil and gas sector.  

https://en.wikipedia.org/wiki/Comparative_advantage

Clearly for Russia this is not a zero sum game.   As it earns money from resource exports it is also undergoing economic growth and diversification.
Yet all of these NATO propagandists and their fellow travelers in Russia would have you believe that making money from resources leads to
economic stagnation.   Maybe these asswipes can take a look at Ukraine and decide if lack of resources lead to wonderful development in
that country.   Recall that in 1991 both Russia and Ukraine were in exactly the same economic state.   Any bifurcation in their evolution reflects
important variables (including politics of course, but also constrained choices).   The Russian fellow travelers should thank oil and gas for them
having to pay only a 13% flat income tax.   The Russian government is extracting taxes from resource exports instead of worker incomes.
My oh my, what a horrible, stupid policy. //sarc

The price of oil is already on the rebound.   There is no glut of supply as evidenced by the need to develop expensive sources from
formations that require fracking and from tar sands.   The low price is killing the production of these unconventional sources.    Since
these sources have accounted for the bulk of the global production increase after 2008 (to offset conventional declines plus a bit
extra) the low price we have seen is not sustainable and reflected a recessionary demand constriction.    But Russia does not need
high oil prices.   The oil price slump has demonstrated that both the economy and the federal budget can survive and in fact keep
developing.