Russian Economy General News: #6

GunshipDemocracy wrote:

PS. IMHO should be no BRICS, after whites soon will be expelled from SA bot taking into account population/education/gdp growth V if would start likr VIR economy can go viral

What do you mean?

https://translate.googleusercontent.com/translate_c?depth=1&nv=1&rurl=translate.google.com&sl=ru&tl=en&u=http://rueconomics.ru/177519-nacionalizaciya-v-krymu-nachala-dvizhenie-v-protivopolozhnuyu-storonu&usg=ALkJrhhmwc4_TRYu_7gbI0VEJhPxvth5gg

So some people in Russia are reading too much into this new law which states of handing back nationalized properties of Crimea to private users. Essentially, they think it will just hand back Poroshenko and others property they once owned in Crimea back to them. But of course, they are hysterical and didn't read carefully enough:

This issue was considered at a meeting of the Russian government. Guide the Crimea and Sevastopol was requested until June 10 to develop a "defining the procedure and criteria for decisions on the appeals of individuals and legal entities related to the issue of return is in the private ownership of property." According to the document, the initiative has been adopted in order to "exclude violations of the rights of citizens and organizations in the territory of the Republic of Crimea and Sevastopol."

Essentially the new bill states to return property of nationalized assets to citizens and organizations IN Crimea who have appealed the notion during the time it was taken. This doesn't mean outsiders like Poroshenko is gonna get back his mansion or the shipbuilding company, as it is USC now, and registered as so which isn't even in Crimea (USC HQ).

wilhelm wrote:

GunshipDemocracy wrote:

PS. IMHO should be no BRICS, after whites soon will be expelled from SA bot taking into account population/education/gdp growth V if would start likr VIR economy can go viral

What do you mean?

Vietnam India Russia China - VIRC if Brazil and South Africa drops....

Karl Haushofer wrote: How can the EU companies invest in Crimea when the sanctions are on?

an individual investor via offshore company?

China grants $5.9bn loan for Moscow-Kazan high-speed railroad, to set up joint ventures

China will grant a 20-year loan worth 400 billion rubles ($5.9 billion) for the Moscow-Kazan high-speed railroad project, TASS quoted the first vice-president of state-owned monopoly Russian Railways, Aleksandr Misharin, as saying. Beijing also plans to set up a few joint ventures in Russia for construction of the railroad, Misharin said on Friday. The BRICS New Development Bank and Asian Infrastructure Investment Bank (AIIB) are ready to follow China by financing the Moscow-Kazan high-speed railroad, Misharin said.

Indian oil majors, Russia’s Rosneft to ink $3-3.5 bn deals for Siberia field stake

http://www.financialexpress.com/article/economy/indian-oil-majors-russias-rosneft-to-ink-3-3-5-bn-deals-for-siberia-field-stake/274499/

"Helicopters of Russia" will move to the Russian operating system Astra Linux

http://ria.ru/economy/20160607/1443931356.html

MOSCOW, 7 Jun — RIA Novosti. Holding "Helicopters of Russia" till the end of 2018 will reduce the use of Microsoft products up to 50% and move to the Russian operating system Astra Linux, which was created for the needs of the Russian power ministries and security services, according to a press release, "Russian Helicopters".
"In terms of sanctions from the West, the transition (in the domestic software — ed.), organizations and enterprises working in the defense of Russia, has become even more urgent because the it infrastructure is built on foreign technology may at any time be without the technical support and modernization", — stated in the message.
"Until the end of 2018 the holding company "Helicopters of Russia" plans to reduce the use of solutions from Microsoft to 50% by switching to an operating system Astra Linux.... In addition, the use of domestic software and equipment will potentially reduce costs for the purchase, licensing and technical support BY Microsoft two times," — said in a press release.
JSC "Russian Helicopters (part of state Corporation rostec) is one of the world leaders in helicopter industry, the only developer and manufacturer of helicopters in Russia.

I hope soon 100% will be Linux based...

Austin wrote:China grants $5.9bn loan for Moscow-Kazan high-speed railroad, to set up joint ventures

China will grant a 20-year loan worth 400 billion rubles ($5.9 billion) for the Moscow-Kazan high-speed railroad project, TASS quoted the first vice-president of state-owned monopoly Russian Railways, Aleksandr Misharin, as saying. Beijing also plans to set up a few joint ventures in Russia for construction of the  railroad, Misharin said on Friday. The BRICS New Development Bank and Asian Infrastructure Investment Bank (AIIB) are ready to follow China by financing the Moscow-Kazan high-speed railroad, Misharin said.

Indian oil majors, Russia’s Rosneft to ink $3-3.5 bn deals for Siberia field stake

http://www.financialexpress.com/article/economy/indian-oil-majors-russias-rosneft-to-ink-3-3-5-bn-deals-for-siberia-field-stake/274499/

In general good news, intl cooperation in general and with india/China in particular is important for Russia. I wonder when Russia starst aggregating own capital to invest abroad though?

Processors "Elbrus" the created system of personal data processing

http://www.sdelanounas.ru/blogs/78711/

Manufacturer of domestic processors "Elbrus MCST the company and the developer of technologies of recognition of graphics information Smart Engines Ltd has introduced a hardware-software complex (HSC) "Vseslav", the purpose of which is collection, processing, indexing and storage of personal data obtained from various sources: pictures, videos, scans of documents, etc.
The product is designed for government agencies and commercial enterprises, including government funds, credit institutions, telecommunication companies. At the first stage it is planned to implement ten systems; currently under negotiation with potential customers. The value of the property is not specified, but we know that price will vary depending on the power and set of recognized documents.

Rostec has created a hardware-protected data communications networks


http://www.sdelanounas.ru/blogs/78727/

In the framework of the conference "Digital industry industrial Russia" (CIPROFLOXACIN) United instrument Corporation (OPK) together with the "RT-inform" exhibit more than 30 pieces of Russian Telecom equipment. New technique provides reliable data protection and is designed to replace the common foreign counterparts in critical communication segments.
Among the submitted samples — routers, cryptoprocessor, switches, IP-PBX, firewalls, server solutions and storage systems. The equipment allows the operator to build corporate and departmental communication networks, including with high-level requirements for information security. Based on it can build critical infrastructure, for example, the system "Safe city" and Internet of things (IoT).

sepheronx wrote: Take a look at how much oil and gas was worth when he was in power.  He essentially did nothing but hide money away and relied heavily upon foreign investments.  Now mind you, there isn't anything particularly wrong in that as it saves money that would otherwise have gone in investments and let others spend that money.  But at that same token, lack of diversification happened and over reliance on foreign investments.  If you compare India's growth vs Russia's at the time, India grew significantly more (lets put population matters aside) with about the same amount of FDI Russia is getting now.  So in reality, FDI isn't a good method of diversification the economy, even though this is what he is pushing now.

Russian economic bloc and most of media somehow still believe in magic of international investors like this only can save economy (privatization = giving away control over economy to USA and investors who do not come unless you are down surrendered)


FDI is OK as long as invests in hotels, small companies, building mucho localizado production in Russia but not in casse of buy out of Rostech, Rosnieft or Rosatom...

well foreign investment in car industry or large greenhouses+hydroponics ,was usefull...

EIA Ups Crude Oil Price Predictions for 2016 and 2017

http://oilprice.com/Latest-Energy-News/World-News/EIA-Ups-Crude-Oil-Price-Predictions-for-2016-and-2017.html

The United States Energy Information Administration upped its forecasts of average crude oil prices by $1 a barrel and $3 for 2016 and 2017, respectively, on Tuesday, in its monthly Short-Term Energy Outlook report.

The new predictions say the average price in 2016 would stand at $43 a barrel and $52 a barrel in 2017. West Texas Intermediate price would be slight lower than Brent oil prices in 2016, but the two would be equal by 2017, the report said.

Rmf wrote:well foreign investment in car industry or large greenhouses+hydroponics ,was usefull...

and still is Industrial robots or CNC centres better to be own brands tho

Austin wrote:EIA Ups Crude Oil Price Predictions for 2016 and 2017

http://oilprice.com/Latest-Energy-News/World-News/EIA-Ups-Crude-Oil-Price-Predictions-for-2016-and-2017.html

The United States Energy Information Administration upped its forecasts of average crude oil prices by $1 a barrel and $3 for 2016 and 2017, respectively, on Tuesday, in its monthly Short-Term Energy Outlook report.

The new predictions say the average price in 2016 would stand at $43 a barrel and $52 a barrel in 2017. West Texas Intermediate price would be slight lower than Brent oil prices in 2016, but the two would be equal by 2017, the report said.

well well now how IMF and WB coin this to make Russian economic outlook look worse?

GunshipDemocracy wrote:

Rmf wrote:well foreign investment in car industry or large greenhouses+hydroponics ,was usefull...

and still is  Industrial robots or CNC centres better to be own brands tho

French Senate supports resolution to lift EU sanctions against Russia: https://www.rt.com/news/345898-french-senate-lifting-sanctions/

http://sputniknews.com/politics/20160608/1041022879/french-senate-russia-sanctions.html

The French Senate has unanimously adopted a resolution on the easing of anti-Russian sanctions.

During the vote, 302 French senators voted in favor of the resolution, while 18 voted against the initiative.

The resolution proposed by the opposition calls on the French government to protest extension of EU sanctions against Moscow.

Although resolution is not biding, for resolution vote 302 senators from 348 in total, what represent absolute majority and have a weight on its own. After Veneto this is the strongest message to EU leaders.

More than 40% of top managers plan to leave Russia

Almost one in every six senior Russian managers plans to move to another country within the next two years, while even more – 42 percent – are considering emigration.

Karl Haushofer wrote:

Project Canada wrote:

More than 40% of top managers plan to leave Russia

Almost one in every six senior Russian managers plans to move to another country within the next two years, while even more – 42 percent – are considering emigration.

What's the difference between "planning" and "considering"?

But not good. Russians are apparently not very patriotic.

‘A highly turbulent environment’
One of the senior managers who participated in the survey told RBK about the reasons he had decided to move soon, the first of which concerned working in a country with a more stable legal framework.

"The legislation is transparent and not changed as often as ours. What our authorities come up with – even at the local level – brings more harm to businesses than all the sanctions by EU, the U.S. and whoever else," the source told RBK.

The second reason, he said, is the higher degree of social security: "It’s unclear what will happen [in Russia] to pensions, about children – such a highly turbulent environment," he continued.

He added that there are also personal reasons: His adult children have already taken the decision to move to another country.

According to the survey, 42 percent of respondents plan "to move to another country, in principle," with almost half of them intending to find employment in another company in the event of relocation.

If the concerns mentioned above are true, I really hope Putin or someone in the current Russian gov come up with something to address these issues, It is always Bad to see Talented Russians leaving Russia and moving west, also this is also a useful propaganda tool against Russia

Karl Haushofer wrote:

Project Canada wrote:

More than 40% of top managers plan to leave Russia

Almost one in every six senior Russian managers plans to move to another country within the next two years, while even more – 42 percent – are considering emigration.

What's the difference between "planning" and "considering"?

But not good. Russians are apparently not very patriotic.

Well if you reat the text not only headlines situation seems to be a bit different::

According to Staseva, people who want to build their business especially in high-tech and innovative industries say that abroad they can avoid a lot of the obstacles associated with the development of their own business in Russia, where "we hear so often the lack of support of private business from the authorities."

In addition, in the U.S. and Europe, it is easier to find investors acting on the principle of "I'll invest not to miss out on something worthwhile," while the approach of "I won't invest because it may fail" is more common in Russia.

Another decisive factor is the quality of life. At the same time, senior managers have the competencies needed to move on and organize appropriate conditions – to find a job, start a business, explained Staseva.

Kudrin & Gref helped to create env good for big oligarchs foreign infestors who invest only in low/medium technological businesses and absolutely no intention (west) or knowledge how (oligarchs) to deal with new technologies.

There is so far no real Russian capital market where money is pumped from Russian investors (private, institutional) to startups en masse afaik. This is what always has been telling Glazyev...

respect

Project Canada wrote: If the concerns mentioned above are true, I really hope Putin or someone in the current Russian gov come up with something to address these issues, It is always Bad to see Talented Russians leaving Russia and moving west, also this is also a useful propaganda tool against Russia

I am sure he wants the question is whether he is able yet to make revolution cleaning form oligarch clans and western stooges who are committed to keep Russia as Us gasstation and workforce provider.

Very vague issues besides "Muh kids have left". In other words, if they want to leave, then leave. When they leave, they leave a position that is now opened for others to take it. The fact that they use a vague term like ""The legislation is transparent and not changed as often as ours. What our authorities come up with – even at the local level – brings more harm to businesses than all the sanctions by EU, the U.S. and whoever else," the source told RBK." What does this even mean? Can anyone give an example? Last we checked, the authorities made it even easier to do business in Russia, and this was evident by many organizations, even world bank. So now who is lying? These people or world bank? Something doesn't add up.

"The second reason, he said, is the higher degree of social security: "It’s unclear what will happen [in Russia] to pensions, about children – such a highly turbulent environment," he continued."

Are they aware that if everyone such as themselves up and leave, then their "fears" become true? I don't think many people think about this or even realize this.

Then again, they intereviewed a small group of people (400~ in a nation of over 146M people), gives me indication that they are interviewing people that they want to interview. Like going into a Refugee camp and interviewing people how great their government is in their former respective country.

I am also curious - Does EU and US have the following options for small businesses: Free rent on property of 5000sqft and subsidized utilities, and freedom from paying taxes for 2 years? Because this is what Russian gov offers for small companies/startups. So I am curious, what more do these people want? Oh right, free money to start their business.

Now if anyone can help me, my google foo isn't so great. I know that they pushed for two year tax break for SME's in Russia but only news is from 2014, so I need a recent one if anyone can find it. As well, they mentioned a new fund ($9M) to help as guarantee loans for SME's. Anyone got any more news on that?

sepheronx wrote:I am also curious - Does EU and US have the following options for small businesses: Free rent on property of 5000sqft and subsidized utilities, and freedom from paying taxes for 2 years?  Because this is what Russian gov offers for small companies/startups.  So I am curious, what more do these people want?  Oh right, free money to start their business.

Now if anyone can help me, my google foo isn't so great.  I know that they pushed for two year tax break for SME's in Russia but only news is from 2014, so I need a recent one if anyone can find it.  As well, they mentioned a new fund ($9M) to help as guarantee loans for SME's.  Anyone got any more news on that?

I believe that truth is somewhere in between. There is still something to do in improving to access to cheap capital, not 20% interest

I believe that initial phase is of company creations is already on fairly good level. OK now you got a product, company and then what?sell it and earn? yup but you need to grow right? grow organically it is economical suicide in hi-tech. Western competitor can start much latter but build wold presence and you are outta market soon because you did not get money to grow...

sepheronx wrote: The second reason, he said, is the higher degree of social security: "It’s unclear what will happen [in Russia] to pensions, about children – such a highly turbulent environment," he continued."

bwahahahah social security in west? right bwahahahah I have spent enough time there to see how it looks
children cannot be educated in Russia? kids Gelandewagen joy-riding are dreaming of? let thme do it in USA and enjoy rule of law

sepheronx wrote:
Then again, they intereviewed a small group of people (400~ in a nation of over 146M people), gives me indication that they are interviewing people that they want to interview.  Like going into a Refugee camp and interviewing people how great their government is in their former respective country.

let me quote this article

A total of 16 percent of Russian executives are planning to move to another country in the next two years, the Russian headhunting company Agentstvo Kontakt has found out.

+

According to Filippova, the decision to move depends on a variety of factors – the sphere of activity, the family situation, the strategic vision of their career and the development of Russia.

For example, it is "indeed very difficult" for investment bankers in Russia, said Filippova, while some top managers are seeking to take their children to study in Europe or the U.S.

GD -svolotch

+

However, she cautioned that it would be a mistake to believe that there are enormous opportunities abroad and that Russian specialists are in great demand.

"Unfortunately, the situation in the labor market remains tense throughout the world," said Filippova

wann go ? go... nobody wants? no social security? cannot believe there can be such idiots on high positions. Just cannot believe

Maybe so, but there are lots of opportunities for SME's to develop, there is an SME bank in Russia: https://www.mspbank.ru/en

But its interest rates in 2014 was at 12% so I imagine it is same now. That is a problem.

sepheronx wrote:Maybe so, but there are lots of opportunities for SME's to develop, there is an SME bank in Russia: https://www.mspbank.ru/en

But its interest rates in 2014 was at 12% so I imagine it is same now.  That is a problem.

well in Eurozone you can have 3-5% pa ... if Russia makes ensure availability of capital and help in growing startups into big companies then no problemo...but now it boils down to politics:

Putin/Glazyev or Shuvalov/Ayphonchik/Nabiulina approach prevails...elections in 1,5 years... many thing surely will happen...