Russian Economy General News: #8

MOSCOW, November 21. / TASS /. The coordinated volume of the state program of armaments (GPV) for 2018-2025 is 19 trillion rubles. This was reported on Tuesday by the ex-commander of the Russian Air Force, the head of the Council of the Federation Council on Defense and Security Viktor Bondarev.

"The new state armament program is almost ready, the finalization is in the final stage, I recall that for a long time the financing parameters have been the subject of heated discussion, but the agreed amount was 19 trillion. And if we take not the absolute figures but the average annual value, the current program turns out to be financially comparable with the previous one "- said the senator.

He clarified that in some areas of work in the new GPV prolonged until 2027.

Bondarev also said that the hypersonic "Zircon" missiles and the Skif ground-based missiles are part of the arsenal of the Russian Armed Forces.

"To date, we have in our arsenal unique strategic bombers (Tu-160), OTRK with powerful ballistic and cruise missiles (the Iskander family), Sarmat TRC, air defense systems (S-400), intercontinental ballistic missiles, atomic missile cruisers with powerful anti-ship missiles (hypersonic "Zircon" missile), Skif bottom-based missiles, "he said.

Austin wrote:Bondarev: agreed amount of GPU for 2018-2025 is 19 trillion rubles

Подробнее на ТАСС:
http://tass.ru/armiya-i-opk/4746605

MOSCOW, November 21. / TASS /. The coordinated volume of the state program of armaments (GPV) for 2018-2025 is 19 trillion rubles. This was reported on Tuesday by the ex-commander of the Russian Air Force, the head of the Council of the Federation Council on Defense and Security Viktor Bondarev.

"The new state armament program is almost ready, the finalization is in the final stage, I recall that for a long time the financing parameters have been the subject of heated discussion, but the agreed amount was 19 trillion. And if we take not the absolute figures but the average annual value, the current program turns out to be financially comparable with the previous one "- said the senator.

He clarified that in some areas of work in the new GPV prolonged until 2027.

Bondarev also said that the hypersonic "Zircon" missiles and the Skif ground-based missiles are part of the arsenal of the Russian Armed Forces.

"To date, we have in our arsenal unique strategic bombers (Tu-160), OTRK with powerful ballistic and cruise missiles (the Iskander family), Sarmat TRC, air defense systems (S-400), intercontinental ballistic missiles, atomic missile cruisers with powerful anti-ship missiles (hypersonic "Zircon" missile), Skif bottom-based missiles, "he said.

OCHAROV RUCEI (Sochi), Nov 22 - RIA Novosti. Large and strategic enterprises of the defense industry should be ready, if necessary, to rapidly increase the volume of products and services, said Russian President Vladimir Putin.

"I note that the ability of the economy to rapidly increase the volume of defense products and services at the right time is one of the most important conditions for ensuring the security of the state: all strategic and simply large enterprises should be prepared for this regardless of the form of ownership," Putin said at a meeting on military matters .

He noted that in 2015-2016 this topic was discussed in detail, and corresponding instructions were given to modernize production facilities, build up reserves of material and technical resources, and ensure the transport of troops. "This work is carried out by ministries and departments under the guidance of the Collegium of the Military Industrial Commission and in close cooperation between the Ministry of Defense," Putin said.

The Russian leader asked during the meeting to briefly summarize the results of this work and report on what defects of the past years were eliminated, and what problems could not be eliminated.

Cyberspec wrote:It means that since 2007 instead of reforms, they've been doubling down

kvs wrote:

Cyberspec wrote:It means that since 2007 instead of reforms, they've been doubling down

The word "reform" has become a dirty smear like "democracy" (aka dermocracy and demokrads).     It is code
for monetarist ass rape.    Russia needs only the following reforms:

1) The Fed-like CBR should be replaced with an institution on a tighter leash.   Nabiullina's insane interest rate policy is
suppressing Russian GDP growth (and hence development).

2) Elimination of bureaucracy.   Under Yeltsin (the "palpable humanitarian") it mushroomed to twice the size it was under
communism.  Stop and let that one sink in.    There need to draconian reductions (at least 50%) in the size of this
parasite swamp.   The remaining parasites need to be chained to the wall.   Right now they are basically writing the
de facto laws of how to deal with cases.   You can see all sorts of Kafkaeqsue excesses that serve no purpose other
than to foster dissent and slow Russia's revival.  

Both (1) and (2) have contributed directly to suppression of small and medium size business development in Russia.

GunshipDemocracy wrote:

Cyberspec wrote:It means that since 2007 instead of reforms, they've been doubling down

Qua? what doubling down?

GunshipDemocracy wrote:About Putins apporach we can both speculate but lower rates is an opportunity and rsk... apparently risk is higher tnan opportunity.

For reasons that are frustrating the central bank, price growth as perceived by Russians is almost four times the headline number. That’s leaving monetary policy hostage to elevated expectations, which the Bank of Russia calls a “pillar” of its interest-rate decisions. Until those expectations stabilize at a lower level, Nabiullina needs to tread cautiously about lowering interest rates, even if business bemoans the high cost of credit.

...

Rate cuts will continue, but “fairly gradually,” which in the absence of unfavorable outside factors will bring the benchmark from its current level of 8.25 percent to 6 percent to 7 percent in one or two years, according to Nabiullina. At the same time, she warned on Wednesday against moving too quickly to reach an “ equilibrium level” for rates.

http://russiafeed.com/price-inflation-russia-hits-low-russian-consumers-still-pessimistic/

Austin wrote:I am shocked Russia Finance Minister believes what he says

http://tass.ru/ekonomika/4760077

Finance Minister Anton Siluanov, in turn, added that he considers unlikely the arrest of Russia's gold and foreign exchange reserves abroad during the tightening of sanctions. "If our gold and currency exchanges are arrested, it's just financial terrorism, I think that certainly will not come to this." In fact, it will be a declaration of financial war, "the minister said.

kvs wrote:

Svyatoslavich wrote:

Austin wrote:I am shocked Russia Finance Minister believes what he says

http://tass.ru/ekonomika/4760077

Finance Minister Anton Siluanov, in turn, added that he considers unlikely the arrest of Russia's gold and foreign exchange reserves abroad during the tightening of sanctions. "If our gold and currency exchanges are arrested, it's just financial terrorism, I think that certainly will not come to this." In fact, it will be a declaration of financial war, "the minister said.

It may be a warning also, putting a red line and saying "don't cross it".
Also, does Russia keeps gold reserves abroad? I didn't know it.

I think this is just poor translation. The only foreign exposure is in US treasuries. The US would not really be able to "cancel" those in Russia's possession.
Please someone correct me, but US treasuries are like bearer bonds and Russia could unload its US paper to 3rd parties and lose almost nothing.

If Russian oligarchs and whatnot choose to keep their money in NATO banks, well, then, the Russian government cannot guarantee the safety of these
assets.

Svyatoslavich wrote:

Austin wrote:I am shocked Russia Finance Minister believes what he says

http://tass.ru/ekonomika/4760077

Finance Minister Anton Siluanov, in turn, added that he considers unlikely the arrest of Russia's gold and foreign exchange reserves abroad during the tightening of sanctions. "If our gold and currency exchanges are arrested, it's just financial terrorism, I think that certainly will not come to this." In fact, it will be a declaration of financial war, "the minister said.

It may be a warning also, putting a red line and saying "don't cross it".
Also, does Russia keeps gold reserves abroad? I didn't know it.

Austin wrote:

Svyatoslavich wrote:

Austin wrote:I am shocked Russia Finance Minister believes what he says

http://tass.ru/ekonomika/4760077

Finance Minister Anton Siluanov, in turn, added that he considers unlikely the arrest of Russia's gold and foreign exchange reserves abroad during the tightening of sanctions. "If our gold and currency exchanges are arrested, it's just financial terrorism, I think that certainly will not come to this." In fact, it will be a declaration of financial war, "the minister said.

It may be a warning also, putting a red line and saying "don't cross it".
Also, does Russia keeps gold reserves abroad? I didn't know it.

What redline does Russia have even trade with US to fight a trade war ?

What idiots are these who keeps buying US T bills and then say arrest of these would be equal to financial wars.

What about the Comprehensive Sanctions of Energy , Military and other sectors by US is that not a Financial War according to Finance Minister but an Act of Love that Russia so cherishes ?

What a bunch of bufoons we have in Finance Ministry and CBR they should reduce the exposure of US T bills to close to Zero by now and not keep buying these.

Now I am convinced Putin is getting secrewed by his own people , They are cutting cost every where in budget and say we are sanction ready ! Increasing exposure to US T Bills and claim seziure will be act of Financial Terrorism , Why do they even buy it in first place .........They dont have a single person in Russia who would challenge that ?

kvs wrote:

Austin wrote:

kvs wrote:

Svyatoslavich wrote:

Austin wrote:I am shocked Russia Finance Minister believes what he says

http://tass.ru/ekonomika/4760077

Finance Minister Anton Siluanov, in turn, added that he considers unlikely the arrest of Russia's gold and foreign exchange reserves abroad during the tightening of sanctions. "If our gold and currency exchanges are arrested, it's just financial terrorism, I think that certainly will not come to this." In fact, it will be a declaration of financial war, "the minister said.

It may be a warning also, putting a red line and saying "don't cross it".
Also, does Russia keeps gold reserves abroad? I didn't know it.

I think this is just poor translation.   The only foreign exposure is in US treasuries.    The US would not really be able to "cancel" those in Russia's possession.
Please someone correct me, but US treasuries are like bearer bonds and Russia could unload its US paper to 3rd parties and lose almost nothing.  

If Russian oligarchs and whatnot choose to keep their money in NATO banks, well, then, the Russian government cannot guarantee the safety of these
assets.

What about EU treasury since Forex 40 % is EU T bills ?

US has in past confiscated T Bills of Iran of the tune of $100 billion.

Gold is Certainly in Russia but what about US , EU T bills plus small amount of IMF SDR ,UK Pound etc

I am going to have to ask for a reference regarding the $100 billion in "T bills". From what I recall, it was the freezing of various
Iranian assets including property in the US and EU. Russia does not hold such assets in NATO. Oligarchs are not Russia.

Moscow. November 28. INTERFAX.RU - Nearly 6.8 trillion rubles in the next three years will be allocated from the budget for spending in the field of national defense, said Deputy Finance Minister Leonid Gornin.

"The project of the federal budget in 2018-2020 cost in the field of national defense and national security, law enforcement activities recorded in the amount of 2 trillion 271 billion rubles, in 2019 - 2 trillion 228 billion rubles and 2020 - 2 trillion 295 billion rubles," - said Gornin during a meeting of the Federation Council Committee on Defense and Security.

"The current maintenance of the Armed Forces of the Russian Federation, including food, transportation, infrastructure maintenance in 2018, we adjusted to the amount of more than 62 billion rubles, the implementation by the Armed Forces of the Russian Federation of certain measures in 2018 to the amount of more than 14 billion rubles, to pay for utilities and the provision of fuel and fuel, as well as food in 2018, was additionally provided for 23 billion rubles, "Gornin said. The Federation Council Committee on Defense and Security approved the draft budget.

The State Duma last week adopted in the third and final reading the law on the federal budget for 2018-2020. State Duma Speaker Vyacheslav Volodin, commenting on the adoption of the budget in the third reading, said that its main indicator, "where we see development, is the growth of the gross domestic product."

The budget revenues in 2018 will be 15.258 trillion rubles, expenditures - 16.529 trillion rubles, deficit - 1.3% of GDP. Revenues in 2019 are planned in the amount of 15.555 trillion rubles, expenses - 16.374 trillion rubles, deficit - 0.8% of GDP. In 2020, revenues are laid at 16.285 trillion rubles, expenditures - 17.155 trillion rubles, a deficit - 0.8% of GDP.

According to the document, the base oil and gas revenues in 2018 will amount to 5.480 trillion rubles, in 2019 - 5.247 trillion rubles, in 2020 - 5.440 trillion rubles. In this case, non-oil revenues in 2018 will be equal to 9.779 trillion rubles, in 2019 - 10.307 trillion rubles, in 2020 - 10.845 trillion rubles.