Russian Economy General News: #7

Bondholder’s Dream Beckons as ‘Japanification’ Sweeps Russia

https://www.bloomberg.com/news/articles/2017-06-25/bondholder-dream-beckons-as-russia-succumbs-to-japanification

From the above link



Retail deposits have almost doubled in the past five years to 24.3 trillion rubles as of May 1, central bank data show.


Can Russian Economy or Finance Ministry can use the 24 Trillion Rouble in Retain Deposit in the Economy instead of just keeping it in bank.

Thats like $ 400 Billion of Money in Retail Banking

That is what the money is used for. All banks around the world use the deposited money to pool for investments into other stuff. Hence how they pay the interest on deposits. They don't provide free money. They earn a part of it using your own money and you get a cut out of the money they used from you to gain their own profits.

A great scheme for banks really. Sucks for rest of the people who have money saved (not me). That is how banks are making a killing in profits.

https://m.youtube.com/watch?time_continue=18&v=yxRgcVp-Ocw

Russian government approves lower 2017 budget deficit of 2.1 pct/GDP

http://www.cnbc.com/2017/05/18/reuters-america-russian-government-approves-lower-2017-budget-deficit-of-21-pctgdp.html


^^ Looking at those figures the Russian GDP will be 91 trillion roubles at the end of 2017 !

Russia issues 10yr and 30yr dollar-denominated debt

https://www.ft.com/content/2cb9e74e-c33b-3726-9430-d5d70344d116

Investors are buying as much as $6bn in Russian sovereign debt, Moscow’s finance ministry said on Tuesday, as the country issues 10 and 30-year dollar bonds.

The issuance is Russia’s first since its return to international debt markets last year after western sanctions over the Ukraine crisis in 2014 and a two-year recession that saw ratings agencies cut its debt to junk status.

The yield on the 10-year bond is 4.25 per cent and 5.25 per cent on the 30-year debt. The ministry did not say how much of each bond it would issue.

China and Russia strike $11bn funding deal

https://www.ft.com/content/323f8254-60d2-11e7-8814-0ac7eb84e5f1

Russia without Siemens

https://www.novayagazeta.ru/articles/2017/07/15/73128-turbinynashi


The use of Siemens Turbine has created unnecessary fuss , Why cant those idiots use Russian Turbines beats me when they have that capability

RussianDefence.com‏ @Russian_Defence Jul 13

#FSB arrests SilovyeMashiny CEO R.Filippov "suspicion of disclosing state secrets"re; #Siemens turbines #Crimea leak

Austin wrote:Russia without Siemens

https://www.novayagazeta.ru/articles/2017/07/15/73128-turbinynashi


The use of Siemens Turbine has created unnecessary fuss , Why cant those idiots use Russian Turbines beats me when they have that capability

Novoyagazeta is a pro Navalny group as well as known collaborator with the west. In other words, absolute shit.

What we know is that the authorities stated that the turbines are actually Russian. It was Reuters who made the claim about it being Siemens. We all posted points as to turbines made by Russian company not connected to Siemens. Siemens themselves cannot confirm the claims but filed a lawsuite anyway.

https://vpk.name/news/186687_siemens_ne_podtverdil_soobsheniya_o_dostavke_v_kryim_eshe_dvuh_turbin_koncerna.html

I think Siemens may be jumping the gun which may get them burned

Glad this is happening. Siemens is going to lose billions and while some cry about it like 5th column novayaGazeta, in reality, many would be salivating to gain their hands on shares and investment in Power Machines which has so much in terms of contracts, it isn't even funny.

Here you go Austin:

http://tass.com/economy/956225

Kremlin reiterates turbines for Crimea were made in Russia

You know, I am a betting man. And I bet the Kremlin wouldn't be saying anything if they weren't certain. Because, if it was found out, then the Kremlin would be liable and they don't want to be placed in that position. So the bluff is on the media side of things and Siemens.

Guaranteed that the investigation will come up with either nothing or something that may have some relevance but not a whole lot.

miketheterrible wrote:Here you go Austin:

http://tass.com/economy/956225

Kremlin reiterates turbines for Crimea were made in Russia

You know, I am a betting man.  And I bet the Kremlin wouldn't be saying anything if they weren't certain.  Because, if it was found out, then the Kremlin would be liable and they don't want to be placed in that position.  So the bluff is on the media side of things and Siemens.

Guaranteed that the investigation will come up with either nothing or something that may have some relevance but not a whole lot.

Peskov would be technically correct even if the turbines are of the Siemens design. Siemens transferred the intellectual property to Russia
in exchange for big money. Russia can do whatever the f*ck it pleases with these turbines. Reuters and NATO think they rule the planet.

Another unintended consequence to sanction. Note that this will probably hurt EU not US business, again.

Russia intends to localize the production of blade rows for gas turbines amid the row over the alleged delivery of Siemens-made turbines to Crimea in violation of Western sanctions, Russian Deputy Industry and Trade Minister Vasily Osmakov said.

MOSCOW (Sputnik) — Earlier in July, a ministerial delegation headed by Osmakov visited the Urals Turbine Plant and the program of the visit included a session devoted to the issues of localization of blade row production.

"The creation of the center would allow for a full range of repair and restoration to be carried out on parts of large power turbines, which had been previously almost fully carried out abroad. The next stage is the localization of production of blade rows in Russia. It will not only make an important contribution to ensuring the technological independence of the domestic electric power industry, but it will also significantly reduce the costs of generating companies for repair and maintenance of the equipment," Osmakov said, as quoted in the ministry's press release published Wednesday.

Found it funny but neverthless

Why Russia gives money America

https://www.gazeta.ru/business/2017/07/19/10794482.shtml

The volume of Russian investments in US bonds at the end of May reached $ 108.7 billion. This is the highest value since October 2014. Analysts believe that Russia will continue to continue to buy US debt will continue to grow if the international reserves of the country, which is also now at the peak at the end of 2014. A real alternative to investments in US securities is not present, the more the yield on them has recently been rising.

Austin wrote:Found it funny but neverthless

Why Russia gives money America

https://www.gazeta.ru/business/2017/07/19/10794482.shtml

The volume of Russian investments in US bonds at the end of May reached $ 108.7 billion. This is the highest value since October 2014. Analysts believe that Russia will continue to continue to buy US debt will continue to grow if the international reserves of the country, which is also now at the peak at the end of 2014. A real alternative to investments in US securities is not present, the more the yield on them has recently been rising.

The list of counties by trade deficit: 
 United States 484100 45,17%
 United Kingdom 123500 11,52%
 Brazil 58910 5,50%
 Australia 56200 5,24%
 Canada 51380 4,79%
 Saudi Arabia 41480 3,87%
 Mexico 32380 3,02%
 Turkey 32190 3,00%
 Algeria 27040 2,52%
 India 26220 2,45%
 Colombia 19040 1,78%
 Venezuela 18150 1,69%
 Indonesia 17760 1,66%
 Libya 16700 1,56%
 Argentina 16110 1,50%
 South Africa 13670 1,28%
 Lebanon 12780 1,19%
 Egypt 12180 1,14%
 Nigeria 11920 1,11%

Not so much choice to make investment : )

US dollar, British pounds or Australian dollars.

OR

Mexican peso , Libyan whatever or Nigerian thingy.

^^ India and China are better option not because it is friendlier to Russia but it has far better and long term growth potential for next 30 years compared to say EU or US much less Japan or UK

Instead of investing $108 billion of Russian forex in US Green Buck , Remove most of the money and invest in India , China Gold and IMF SDR .......there are many choice available , Why choose the most suicidel one from an Enemy Country beats me !

If the new US Congress sanctions against Russia comes to into effect ( Oil Companies are asking for Changes in US and EU ) but lets assume if it comes into effect then as I understand it is Iran Style sanction on Russian Oil Companies.

Which means any one who work with Russian Oil Companies any where in World will get sanctioned unlike the current sanctions which applies only to US companies working in Russia and not Globally ? Is that correct ?


In that case can Russia Retaliate by what Putin Said in 2014 https://www.forbes.com/sites/kenrapoza/2014/11/16/putin-says-country-will-be-selling-more-oil-in-yuan-ruble/#1212ea982b72

Vladimir Putin won't kowtow to the "dollar dictatorship" in world oil markets, the Russia president told state-owned Itar-Tass newswire on Friday.

“We are leaving the dictatorship of the market where oil is priced in dollars and will increase the possibilities of using the ruble and the yuan," Putin said in an interview with the news agency.

All four turbines produced by Siemens delivered to Crimea despite agreements

More:
http://tass.com/economy/957182

BERLIN, July 21. /TASS/. All four gas turbines produced by Germany’s Siemens for a project in southern Russia have been delivered to Crimea, despite the agreements, Siemens reported.

The company decided to suspend the implementation of some contracts with companies with state participation in Russia at this stage. Besides, Siemens will suspend its participation (46%) in the Russian company Interautomatika, the German company’s press service noted.

JohninMK wrote: Lucian Kim‏Verified account @Lucian_Kim 5h5 hours ago

Breaking: Siemens quits Russian joint venture, halts deliveries to state companies after Crimean "turbine debacle." https://www.welt.de/regionales/bayern/article166867386/Siemens-greift-im-Russland-Geschaeft-durch.html?wtmc=socialmedia.twitter.shared.web …

Heartbroken.

I guess Russia will have to start developing and manufacturing these themselves.

Question is why did they have to import them in the first place? It's a turbine not a fusion reactor.

Russia needs to copy all Siemens blueprints to improve their own designs and manufacture their own while shutting Siemens from doing any more business in Russia.

Project Canada wrote:Russia needs to copy all Siemens blueprints to improve their own designs and manufacture their own while shutting Siemens from doing any more business in Russia.

Meh, Ural Turbines and others will gladly be happy about this decision. Same with other foreign companies wanting access to Russian market. Siemens was a small 5% so guarantee Chinese companies and more will demand to get more involved than 5%.

PapaDragon wrote:

JohninMK wrote: Lucian Kim‏Verified account @Lucian_Kim 5h5 hours ago

Breaking: Siemens quits Russian joint venture, halts deliveries to state companies after Crimean "turbine debacle." https://www.welt.de/regionales/bayern/article166867386/Siemens-greift-im-Russland-Geschaeft-durch.html?wtmc=socialmedia.twitter.shared.web …

Heartbroken.

I guess Russia will have to start developing and manufacturing these themselves.

Question is why did they have to import them in the first place? It's a turbine not a fusion reactor.

Basic economics. Off the shelf components are cheaper than made from scratch new ones. Budgets
do matter in capitalist economies and really in any economy in some form or another.

Project Canada wrote:Russia needs to copy all Siemens blueprints to improve their own designs and manufacture their own while shutting Siemens from doing any more business in Russia.

Russia is not that undeveloped in this area. It has been pioneering turbines since they appeared. People confuse purchasing choices with
Russian capabilities. Siemens can bugger off and not let the door slam its ass on the way out.

miketheterrible wrote:

Project Canada wrote:Russia needs to copy all Siemens blueprints to improve their own designs and manufacture their own while shutting Siemens from doing any more business in Russia.

Meh, Ural Turbines and others will gladly be happy about this decision.  Same with other foreign companies wanting access to Russian market.  Siemens was a small 5% so guarantee Chinese companies and more will demand to get more involved than 5%.

All engagement with NATO based companies is compromised and should be abandoned. China, India and other partners are better for Russia and mankind.
NATO should be isolated and contained.