Russian Economy General News: #7

Austin wrote:Obama called weak country Russia, trading in oil, gas and arms  

https://ria.ru/world/20161217/1483864966.html

WASHINGTON, Dec. 16 - RIA Novosti. US President Barack Obama called Russia a weak country that does not produce anything but gas, oil and weapons.

"They are smaller, they are weaker (than the US - Ed.). Their economy does not produce anything that would like to buy (other countries), other than oil, gas and arms," ​​- Obama said during a press conference in Washington on Friday.

In 1998 Russia declassified a lot of research information derived from its experience with submarine reactors, and US interest in using Pb or Pb-Bi for small reactors has increased subsequently.

Austin wrote:Stolypin club  is the only one asking for QE while one lead by Kudrin is asking for tightening

http://rbth.com/business/2016/05/27/3-ways-out-of-russias-crisis-the-plans-on-putins-table_597961

The Stolypinsky Club suggests that Russia launch a "quantitative easing" policy, for example, print special obligations for 1.5 trillion rubles ($22.5 billion). In order for this not to affect inflation, the club proposes the country return to the currency corridor and end the floating exchange rate, which was introduced at the end of 2014.

They are smaller, they are weaker (than the US - Ed.)

Prime Minister Dmitry Medvedev spoke out against pumping money into the economy and the growth of public debt and the budget deficit due to inflation and devaluation of wages. He said that it is impossible to plan the rapid development, if there is no macroeconomic conditions. Tass quoted the statements of the prime minister in an interview with Russian television channels. In an interview attended by representatives of "First Channel", RTR, NTV, RBK TV and "Rain."

Premiere was asked why the government chose to "fade budget, rather than the development budget." "We started planning the budget of the real possibilities of our country, pumping up the budget, we understand you, what consequences it will lead. If we went on inflation of the economy with money, would be impaired earnings in our country, we would be back to the situation 90. These decisions are not always simple, but adjusted, "- quoted by RBC response.

According to Medvedev, the economic growth of 1.5%, even in Russia are not satisfied, the task to achieve higher than the average rate of the complex, but achievable. At the end of 2016 it expects GDP decline by about 0.5%, and in 2017 - the return of the economy to grow, reports TASS. The main result of the closing year, he called the preservation of macroeconomic stability and fulfilling social obligations.

Asked whether the budget decrease healthcare costs and what to do with the continuing rise in prices, Medvedev said that the budget for health care grows, it requires federal spending and regional. "Everything that is planned in the areas of health, we will do it", - quotes its RBC. "Interfax" reports that the growth of health care costs will continue, in 2018 they will amount to 3.15 trillion rubles, in 2019 -. 3.25 trillion rubles. On a positive note the Prime Minister called the opening of the regular perinatal centers and an increase in high-tech operations to 1 million a year.

About rising prices Medvedev said that it is inevitable in the context of inflation, but in the future it will slow down. In 2016 the planned inflation rate is about 5.5%. This applies, among other things, drugs, reports "Interfax". According to him, this is proof of the work program of import substitution.

Medvedev reminded of the unprecedented increase in defense spending. According to "Interfax", he said that the defense money goes only from the federal budget, and not from the region, unlike in the education and healthcare costs. Military expenditures are rising not only in the interests of the military, he added: for Russian citizens is important border security and defense capability of the country. The Prime Minister recalled that the arms export statistics show that Russia remains the second largest supplier of arms in the world, ahead of the United States only. "Now we have exported arms about $ 17 billion In the future, this figure could reach $ 20 billion.", - He said.

"The combined share of the so-called consolidated budget (is the budget of the Russian Federation, regions and municipalities), the share of education, health and of the power component, in particular the Ministry of Defense, approximately identical: 23-24% on each of these components", - quotes the prime minister TASS .

WASHINGTON, December 20. /TASS/. The United States broadened the sanction list against Russia related to developments in Ukraine, the US Treasury Department said in its statement on Tuesday.

Seven individuals, several dozens of organizations and two vessels under the Russian flag were included into the list.

Nine regional units of Russian gas producer Novatek are now in the sanction list. Furthermore, Crimean Ports, Crimean Railways, Stroiproekt Institute, Transflot, and others are in the hit list as well.

Marshal Zhukov and Stalingrad, two vessels bearing the Russian flag and subjected to sanctions, belong to Transflot company.

The US Treasury Department made an update for Russia’s Glavgosexpertiza in its sanction list of legal entities and individuals.

The Office of Foreign Assets Control (OFAC) of the Treasury Department published General License 11 "Authorizing Certain Transactions With FAU Glavgosekspertiza Rossii."

"This general license authorizes certain transactions that are ordinarily incident and necessary to requesting, contracting for, paying for, receiving, or utilizing a project design review or permit from FAU Glavgosekspertiza Rossii’s office(s) in the Russian Federation," the document said.

Glavgosexpertiza Rossii hit by sanctions on September 1, 2016 is the leading Russian institution dealing with expert reviews of design documents and findings of engineering surveys.

Sanctions against four construction and transport companies are introduced "because they operate in the Crimea region," the document says.

Institut Stroiproekt is working on the construction of highway segments for the Kerch Bridge project, the Treasury Department said. "The main purpose of the planned highway is to provide transport links between the Crimean peninsula and mainland Russian Federation," the document reports. Karst LLC "was subcontracted to make foundational piling and supports for the Kerch Bridge", the authority said. Crimean Railway and Crimean Ports are also in the sanction list.

Restrictive measures against four other companies [Transpetrochart, Trans-Flot, Solid and RusChemTrade - TASS] were introduced "because they materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, OJSC Sovfracht" earlier hit by sanctions, the US Treasury Department said.

Under the document, seven Russians were added to the list of sanctions, imposed on Russia over its stance regarding the conflict in Ukraine and reunification with Crimea.

Six of those individuals - Kirill Kovalchuk, Dmitri Lebedev, Dmitri Mansurov, Mikhail Klishin, Oleg Minaev, and Mikhail Dedov - were put on the list of sanctions for "acting for or on behalf of and providing financial, material, or technological support to Bank Rossiya, ABR Management, or Sobinbank," the US Treasury said in a statement. These companies were added to the list of sanctions between 2014 and 2016.

The seventh individual, Yevgeniy Prigozhin, was designated for "having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, senior officials of the Russian Federation," the US Treasury said.

"Prigozhin has extensive business dealings with the Russian Federation Ministry of Defense, and a company with significant ties to him holds a contract to build a military base near the Russian Federation border with Ukraine," the statement reads.

The blacklist of sectoral sanctions was expanded to include "a number of subsidiaries of the Russian Agricultural Bank and Novatek as being 50% or more owned by their respective parent entities." The two companies fell under the US sanctions in 2014.

Moscow reserves the right to choose the time, venue and form of counter-moves to US sanctions, Russian Deputy Foreign Minister Sergey Ryabkov told Tass Tuesday, commenting on the move.

"We will be expanding our lists, we will see how we can respond asymmetrically. We reserve the right to choose the timing, the venue and form of counter-moves the way that will suit us, and the way it will be relevant to our own priorities in the American direction," he said.

The United States and the European Union introduced sanctions against Russia in view of developments in Ukraine and reunification of Crimea with Russia. Sanctions were repeatedly extended and renewed.


More:
http://tass.com/world/921040

21/12/2016, 1:51
Yesterday in the Analytical Center of the longer "Stolypin club" government, and based on it the Institute of Economics of growth. Stolypin introduced a new version of its program until 2025. The main topic of discussion was "tailor the" macroeconomic parameters.

"We became close on the court," Stolypin club ", we wanted to go on a more serious level of professional development" strategy "and its implementation", - said yesterday the director of the new Institute of economic growth Anastasia Alekhnovich. The Supervisory Council of the Institute was headed by business ombudsman Boris Titov, Scientific Council - Chairman of the Board of JSC "Investment Company" Eurofinances "" Yakov Mirkin. The scientific council included presidential adviser Sergei Glazyev, head of the department of economics Academy of National Economy under the Government of Abel Aghanbegyan, VEB deputy chairman Andrei Klepach, head of the laboratory Central Economics and Mathematics Institute of Russian Academy of Sciences Viktor Polterovich, director of the Institute of Economic Forecasting of the RAS Victor Ivanter.

Recall that with the help of the "Strategy Growth", which is out of all public officials supported only Deputy Prime Minister Olga Golodets, Business Ombudsman intends to "unfreeze" the country's economy. In May, he received instructions from the President to continue work on the "Strategy" on the basis of the Analytical Center. Modified "Strategy" is divided into three stages - the restoration of economic growth (2017-2019 years), the yield on its high growth (2020-2025 years), sustainable development (2026-2035 years).

The document's authors said yesterday its intention to create a "diversified, stable, competitive and market economy." To this end, they consider it necessary to eliminate the dependence of the economy on the export of raw materials, to promote competition and reduce the state's share in the economy, to create the conditions for business out of the shadows, to ensure technology transfer.

Because previous versions of the program have been criticized for the utopian, the paper expanded the list "system solutions to enhance the sources of growth." It appeared the item "Maintenance of macroeconomic stability in a growing economy" ( "tribute criticism" - described him Boris Titov). Stability is proposed to achieve mainly targeting the Central Bank and the government's GDP growth, the number of established high-performance jobs, the ruble exchange rate and inflation. The exchange rate should be moderately low (relative to the current state of the balance of payments) - so it can boost exports and import substitution (with the gradual strengthening of the ruble to the extent of economic growth). "Stolypins' offer to set as the target inflation rate of 7-8% - this level, in their view, not holding back economic growth. Optimum budget deficit - 3-5%, limiting the level of public debt - 60% of GDP.


The main objective of the authors pose the transition from the "moderately tight" to "moderately soft" monetary policy - in the "Strategy" proposes to launch a planned reduction in the key rate of the Central Bank and start doing it in the first half of 2017, reducing it to 8% (currently 10%). Also available funding partially institutes of 700 billion rubles., To launch new special loan refinancing instruments of the Central Bank in the system of project financing in the amount of 100 billion rubles. Among the old ideas - the creation of the bank's bad debts and restructuring program.

Sophisticated sections "Strategy" Boris Titov intends to issue in the public space in parts. Modified version of the document will be presented in May, when the government will form a plan to stimulate Russian economic growth rate higher than the world.

MOSCOW, December 21. /TASS/. The amount of the safety cushion of Russia’s reserves will be higher in 2018 than expected earlier, President Vladimir Putin said on Tuesday at the meeting with parliament members.

Reserves are used in the first instance due to dropped revenues from oil sales, Putin said. "We spent almost a trillion [rubles ($16.4 bln) - TASS] from the Reserve Fund. We thankfully keep the National Wealth Fund at the same level," the head of state said.

"We planned about 2.2-2.5 trillion [rubles ($36-41 bln) - TASS] will remain in our reserves by 2018 year-end; the figure will be higher. We have 6.6 trillion rubles ($107.9 bln) at the moment," the President said. "In particular, this is a safety cushion for us," he added.

The level of gold and currency reserves also deserves attention, the head of state said. "Indeed we have money; moreover, reserves have grown starting from this year. We had gold and currency reserves of the Central Bank about [$] 368 bln in the beginning and now there are almost $385.4 bln," Putin said.

Real income in Russia falls by over 12% in 2 years

Labor in Russia is now paid for only slightly higher than in India and Bulgaria, according to a study by a Russian state academy.

Russians' real disposable income has fallen by 12.3 percent since the beginning of the economic crisis in 2014, writes the TASS news agency, citing a report prepared by the Russian Presidential Academy of National Economy and Public Administration.

The report concludes that the continuing fall in the population's real income has led to an increase in the poverty level, which in the January-September 2016 period was 13.9 percent. This indicator is higher than the level from similar periods in 2012-2014, says the report.

In May 2016 the average monthly salary in Russia fell to $500, which is below the average monthly salary in China, according to Russia's largest bank Sberbank.

RBTH has used the Average Monthly Disposable Salary by Country rankings, which was posted by the Numbeo.com resource, to compare the average monthly income in Russia with that of the BRICS countries, as well as nations in Western and Eastern Europe and the United States:

http://rbth.com/business/2016/12/23/real-income-in-russia-falls-by-over-12-in-2-years_666751

MOSCOW, 23 December. / TASS /. The budget of the Russian Federation in 2019 will be balanced with the cost of oil at $ 45 a barrel, he told Finance Minister Anton Siluanov.

"We set ourselves the task in the next" three-year "further continue to reduce oil and gas deficit and reduce the budget's dependence on commodity revenues. In 2019, we plan to balance the budget at an oil price of $ 45 per barrel, which is practically at equilibrium production volume level and the demand for oil in the world economy ", - said the Minister.

It is also noted that the federal budget deficit without the sale of 19.5% of shares of "Rosneft" would have amounted to 3.5% of GDP.

Budget deficit

Siluanov not exclude that the federal budget deficit on the basis of 2016 may be lower than 3.7% of GDP.

"In general, the budget (in 2016 - Ed.). Is executed with a deficit of 3.7% and we lay in the budget law, but the latest data on budget spending does not rule out that the figure may be somewhat more optimistic.. and perhaps will be 3.7%, "- he said.


The dividends of state companies

Siluanov said that the state-owned dividends to the federal budget in 2017 will come in the amount of 483.48 billion rubles, in 2018 -. 463.18 billion rubles, in 2019 -. 432 580 000 000 rubles.

"Dividend payments to the federal budget in 2017-2019 years are also planned on the basis of the direction of the payment of dividends at least 50% of the profits of companies with state participation in 2017 -. 483.48 billion rubles, in 2018 -.. 463.18 billion rubles, in 2019 -.. 432 580 000 000 rubles, "-. he said.

In 2016, the Government of the Russian Federation supported the proposal of the Russian Finance Ministry to increase the share of profit allocated by companies with state participation in the payment of dividends, from 25% to 50% of RAS net income (or 50% of net profit according to IFRS). The implementation of this solution will provide to the end of 2016 additional revenues to the federal budget in the form of dividends in the amount of 55.8 billion rubles.


package

Russian Ministry of Finance in 2017 will develop a set of long-term (for the period 2018-2025 years) of structural measures in the revenue and expenditure side of the budget.

The changes will affect the structure of the tax burden in the direction conducive to higher rates of investment and growth. In particular, reducing the burden on honest business, and increase the cost of doing gray schemes risks increasing load on the consumer, the rationalization of tax incentives.

In addition, the Ministry of Finance will change the structure of costs in favor of increasing the share of investment in human capital and physical capital, increasing their efficiency, rationalization of industry support measures.

At the same time, according to Siluanov, the Finance Ministry will prepare a response to the long-term challenges. "Complex incentives to increase the economic activity and the duration of the active life in the insurance system of pension and social security, as well as the growing role of involvement and prevention in the field of health and education", - said the Minister.

The decline in GDP

The decline of Russia's GDP could reach 0.5-0.6% in 2016, Siluanov said.

"This year, we will come out slightly better than the results of our assessment of the economy. If we are in the forecasts was assessed minus 0.6% of GDP, it is possible to be somewhere 0.5%. In this case we are talking about the fact that in some areas we see This increase in the growth rate of agricultural products, chemical, woodworking, light industry, agricultural machinery industry grew those in which support was provided, "-.. Siluanov said.

Siluanov said that the federal budget deficit in 2016 could reach 2.7% of GDP, if it had not been made a one-time decision on early repayment of "credit scheme," the Defense Ministry - debts to the defense enterprises.

"We are at the beginning of the year stated that the need to meet the 3% deficit at a lower (ie, $ 40 per barrel) than originally budgeted ($ 50 per barrel) oil price. If we calculate the costs with the exception of a single operation by early maturity "credit scheme" - we even slightly exceeded the plan - 2.7% of GDP, "- he said.

He explained that the budget deficit without the sale of 19.5% stake in Rosneft would amount to 3.5% of GDP.

The forecast for GDP growth

Ministry of Finance has improved the forecast for GDP growth in Russia in 2017 from 0.6% to 1-1.5%.

"Growth rates in some sectors say that we can see a higher rate of growth in the next year than planned. I remind you that we planned 0.6%, evaluations today are such that between 1% and 1.5% may be rate of economic growth in the next year ", - said Siluanov.

Inflation at the end of the year

The Finance Ministry expects inflation at the end of 2016 in the region of 5.5%.

"Inflation is now the president said, will be around 5.5%, which is lower than we had planned. Indeed, this is the lowest level for the whole of our history with you. Total reduced inflation from 17% in the 1.5 to 5, 5%, which is largely made possible thanks to the fiscal policy measures, which was implemented this year to curb the budget deficit, accurate approach to indexing a significant contribution to the reduction of inflation has made fiscal policy, "-. Siluanov said.

The share of treasury bonds

Siluanov said that the share of public debt in the federal budget deficit financing sources by 2019 will increase to 91% from 20% in 2016

. "In the years 2017-2019 the structure of sources of financing the federal budget deficit is fundamentally changed: the main (almost the only) source will be government borrowing, which will increase the share to 91% in 2019 against 20% in 2016. Fund-raising will be carried out exclusively by domestic borrowing, the net external borrowing in the 2017-2019 biennium will be negative. "- said the Minister.

He noted that the average annual domestic net borrowing over the next three years will be about 1 trillion rubles., Which is more than three times the average annual amount of net domestic borrowing in the last six years and is unprecedented in the history of modern Russia.

"Despite the increased government borrowing, the amount of debt will remain at a safe level, and will not exceed 20% of GDP," - said Siluanov.


OFZ to the public

The Finance Ministry also expects to place OFZ for the population in the I quarter of 2017

"We think that in the I quarter implement this idea (OFZ placement for the population - Ed.). Total output will be small, up to 20-30 billion rubles This paper nonmarket We want to understand the market, to accustom people to the fact that... they can invest not only in the deposits ", - said Siluanov.

The Finance Ministry expects growth in non-oil revenues in the budget of the Russian Federation for 2016 by almost 900 billion rubles.
The Minister stressed that the placement of OFZ for the population has been postponed due to the fact that banks have offered "placing unacceptable conditions", but rather a high commission for their implementation.

Siluanov also said that in addition to Sberbank and VTB, which have already announced their participation in this project, and other banks may join the issue of the instrument.

Earlier it was reported that the Ministry of Finance planned to issue paper to the end of 2016 Finance Ministry voiced so far only preliminary parameters of the issue: the repayment term - three years, coupon rate - comparable with traded OFZ coupon payment - every six months.

The Obama administration is reportedly finalizing a package of sanctions and diplomatic censure to punish Russia for its attempts to meddle in the 2016 U.S. election.

U.S. officials told The Washington Post that the response is expected to include covert cyber operations. An announcement describing the public elements could come as early as this week, the newspaper reported.

OminousSpudd wrote:Here they are gents: https://www.rt.com/news/372191-kremlin-obama-administration-sanctions/

Svyatoslavich wrote:

OminousSpudd wrote:Here they are gents: https://www.rt.com/news/372191-kremlin-obama-administration-sanctions/

Globalists are desperate, they are doing all they can to make a rapprochment between US and Russia impossible. But their desperation is good, because it means that Trump isn't a fraud and probably will do his best to mend relations.

kvs wrote:

Svyatoslavich wrote:

OminousSpudd wrote:Here they are gents: https://www.rt.com/news/372191-kremlin-obama-administration-sanctions/

Globalists are desperate, they are doing all they can to make a rapprochment between US and Russia impossible. But their desperation is good, because it means that Trump isn't a fraud and probably will do his best to mend relations.

Can anyone find any information on the economics sanctions?  All I see is spy vs. spy embassy expulsion theater.    Looks like Uncle Scumbag
is afraid to go after Russia's economy since that gives Russia a way to kill two birds with one stone: import substitute and effectively ban
the associated import.  

kvs wrote:

Svyatoslavich wrote:

OminousSpudd wrote:Here they are gents: https://www.rt.com/news/372191-kremlin-obama-administration-sanctions/

Globalists are desperate, they are doing all they can to make a rapprochment between US and Russia impossible. But their desperation is good, because it means that Trump isn't a fraud and probably will do his best to mend relations.

Can anyone find any information on the economics sanctions?  All I see is spy vs. spy embassy expulsion theater.    Looks like Uncle Scumbag
is afraid to go after Russia's economy since that gives Russia a way to kill two birds with one stone: import substitute and effectively ban
the associated import.