Russian Economy General News: #8

Kimppis wrote:Not an expert on interest rates TBH, but India is still a very poor country. That largely explains why it's growing so fast, very simple. Not comparable to Russia.

AlfaT8 wrote:Anybody have Russia's tax revenue data for 2017.
I can't find much except for this article (https://www.upi.com/Oil-gas-tax-revenue-driving-Russia-forward/1511511181845/) about Director Mikhail Mishustin, that doesn't tell me much.
Want to see how much oil and gas accounted for total revenue that year.

franco wrote:Two thousand plants are being built in Russia

Having survived the dashing 90-ies, when more than 80% of the entire industry of the country was plundered, and then closed, Russia revives its former production potential.

In recent years, especially after the introduction of Western sanctions, several thousand new plants and factories have been opened in our country. In the next 5 years, according to economists, in Russia will be built about 2000 production capacity. The total volume of investments is estimated at trillions of rubles.

One of the most ambitious future projects will be a giant gas liquefaction plant, Arctic LNG-2. It will be much more powerful than the already constructed Yamal-LNG and will require almost 600 billion rubles for its implementation. Almost as much will be invested in the LNG plant in the Baltic, the commissioning of which is scheduled for 2020. By 2025, our country can become one of the leaders in terms of volumes of liquefied gas produced.

franco wrote:There is an opinion that "grabbing" easy money and getting them out of harm's way out of the country to the West is a Russian notion. But this is not so. Created by the conditional Anglo-Saxons, the world financial system absorbs financial flows from the colony countries and converts them into palaces, yachts, bank accounts, European lifestyle for "lucky" family members. However, this beautiful medal has the opposite side. If necessary, the collective West can take all this away.

This has happened many times. At the end of the 19th century, the West "stuck" the capitals of Indian businessmen, in the mid-20th century - accounts of Arab sheiks. Now it's time to fear for your assets to the new Russian elite. They imagined themselves equal to the Western elites, they were surprised to see themselves in the "Kremlin lists". The detention of billionaire Suleiman Kerimov, who has a diplomatic passport, in France was a formidable warning to Russian oligarchs, that there are no untouchables for the West.

Accustomed to the sweet life at the cordon due to ruthless exploitation of Russia, the self-proclaimed elite suddenly realized that the Dolce Vita was over, now everyone and everyone is under attack. No wonder that the Russian government reacted with a whole package of proposals for a comfortable return to Russia of what was derived from it by the "elitarians" in recent decades. According to various estimates, up to ten percent of Russian citizens, those that have adapted to the "market economy" with its realities, can take advantage of this opportunity. The fact that under the blow those capitals, whose origin is doubtful from the point of view of the law, is confirmed by the Russian human rights activist Alexander Khuruji.

What exactly does the Russian government offer to owners of capitals of dubious origin?

First, most importantly, these are amendments to the Criminal Code of the Russian Federation, which will release those residents who violated the tax and currency legislation of Russia from prosecution.

Secondly, it gives the right to declare foreign property and accounts in foreign banks, if they were opened before January 1, 2018.

Thirdly, the amendments to the Tax Code of the Russian Federation make it possible to exempt from income tax income received in the event of liquidation of a controlled foreign company until March 2019.

To use this opportunity to return capitals of dubious origin from the ruthless Western Themis, the most delicate and subtle natures will be able to: it is supposed that by law it will be forbidden to name specific individuals and specific amounts that have passed the amnesty procedure. It is difficult not to agree with the opinion of Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market:

"I can only say unequivocally that the number of persons who will undergo this procedure will be much greater than at the first stage"

I would like to express a timid hope that, at least in this way, the capital of Russian origin will still work for the Russian economy.

WASHINGTON, Feb 21 (RIA Novosti). The US Department of State believes that the anti-Russian sanctions under the law "On Countering America's Enemies through Sanctions" (CAATSA) led to losses of the Russian defense industry by about $ 3 billion, said Foreign Ministry spokesman Heather Nauert.

new US sanctions want to create competitive advantages
"The termination of such transactions, in fact, is a punishment, why? Because it means that less money goes to the Russian budget, so it can be considered a success in attracting Russia to responsibility," she said.

Naueert reminded that all American diplomatic missions were instructed to make efforts to prevent business contacts with Russia, primarily with its defense industry complex.

Austin wrote:$3 billion is a big money to loose , Who did American Arm Twisted and which deal Russia lost in which country

Russia will remain the largest exporter of primary energy resources in the world at least until 2040. This is stated in the review BP "Forecast of the development of world energy until 2040".

"Russia will remain the world's largest exporter of primary energy resources and the second largest producer of oil and gas, exporting 9 million barrels of oil per day and 36 billion cubic feet of gas per day," the company said.

At the same time, the production of primary energy sources in Russia will grow by 20% between 2016 and 2040, but Russia's share in world energy production will decrease from 10% in 2016 to 9% in 2040.

Russian exports will provide over 5% of global demand for primary energy by 2040, the survey said.

The energy intensity of the Russian economy, according to BP's forecast, will be reduced by 25% by 2040. This is lower than in China (53%), India (37%), or on average for non-OECD countries (41%)

The growth of energy consumption in Russia (by 6% from 2016 to 2040) will be the lowest among the BRIC countries. In India (165%), Brazil (60%) and China (41%), energy consumption will grow much faster. The share of Russia in the world consumption of primary energy resources will decrease from 5% in 2016 to 4% in 2040.

Transport will provide the main increase in consumption of primary energy sources (by 50% by 2040). Consumption in industry will decrease by 4%.

miketheterrible wrote:

franco wrote:Two thousand plants are being built in Russia

Having survived the dashing 90-ies, when more than 80% of the entire industry of the country was plundered, and then closed, Russia revives its former production potential.

In recent years, especially after the introduction of Western sanctions, several thousand new plants and factories have been opened in our country. In the next 5 years, according to economists, in Russia will be built about 2000 production capacity. The total volume of investments is estimated at trillions of rubles.

One of the most ambitious future projects will be a giant gas liquefaction plant, Arctic LNG-2. It will be much more powerful than the already constructed Yamal-LNG and will require almost 600 billion rubles for its implementation. Almost as much will be invested in the LNG plant in the Baltic, the commissioning of which is scheduled for 2020. By 2025, our country can become one of the leaders in terms of volumes of liquefied gas produced.

Mr Franco, what is the link to this?

I have read that about 700 planned production of import substitution is being worked on currently.  So new factories mixed with advancements of current plants will revive Russia altogether.

The Prime Minister also instructed to develop a mechanism for making suggestions for improvements and enhancements of this product
MOSCOW, February 21. /TASS/. The Ministry of Finance and the Ministry of communications by March 15 must submit to the government a draft legal act on the provision of centralized procurement office and accounting software as well as software (software) in the field of information security (including antivirus). This instruction was given to the ministries, the Prime Minister of the Russian Federation Dmitry Medvedev following the meeting of the government Commission on it, said in a statement posted on the website of the government of the Russian Federation.

Now, state agencies must purchase the software from the registry of domestic and foreign software can be purchased only if there is no Russian equivalent. In the Russian registry, which exists from 1 January 2016, more than 4 thousand software products. However, periodically state agencies ignore this requirement, and in fact are buying foreign software without proper justification, the "old way". Earlier it was reported that the Prime Minister of the Russian Federation at the Commission meeting on 9 February it instructed the communications Ministry to monitor closely the procurement of foreign software for state needs.The head of the Ministry Nikolai Nikiforov, commenting on the issue, noted that the Ministry plans to tighten control over procurement software for government agencies.

According to the instructions, the document should provide the implementation mechanism for the acquisition (including on the basis of the service model) government agencies domestic office software, integrated with electronic document management systems. Must also be set in order, "consolidation and analysis of the proposals of the state authorities to finalize and implement new features in the domestic office software". The results of this analysis should be the basis for revision of the Russian office, an appropriate mechanism should also be enshrined in the document.

The Ministry of communications and Ministry of Finance together with the interested Federal Executive bodies should submit to the government proposals "on perfection of the mechanism of purchases of Russian BY taking into account the experience of project cost control of the procurement of medicines for medical use".

In addition, Medvedev instructed the Federal property management Agency and the Ministry of communications of Russia jointly with the competence Center for import substitution in the field of ICT to develop directives to representatives of interests of the Russian Federation in boards of Directors of state-owned companies for the preparation and approval of action plans for the transition to reliance on domestic. While departmental plans for import substitution of software will consolidate the Ministry of communications, which, together with the Ministry of Finance will develop appropriate proposals. Both ministries will also suggest to the government ways to improve the implementation date of these plans.

Moreover, Medvedev instructed the Ministry of internal Affairs, Ministry of economic development, the Ministry of communications and Ministry of industry to submit to the government "proposals draft the necessary normative legal acts on the pilot project for issuance of driving license and registration certificate of the vehicle of the new generation on the basis of regional multipurpose centers of providing the state and municipal services".

At the meeting of the state Commission it was also approved the action plan in the direction of "talent and education" program of development of the digital economy of the Russian Federation. The Prime Minister instructed the Ministry of Finance and Ministry of economic development to provide funding for this action plan in the preparation of amendments to the budget for 2018 and the planned 2019-2020.

Austin wrote:BP: Russia will remain the world's largest exporter of energy resources until 2040

miketheterrible wrote:  That got a lot of people, even pro Westerners in India, in a fit.  Then there is the idea that they are seeking to purchase whatever the US throws at them, in an attempt to win favors and gain investments from US.  Their love affair with the US is even seen with recent issues in Maldives.

miketheterrible wrote:

Austin wrote:$3 billion is a big money to loose , Who did American Arm Twisted and which deal Russia lost in which country

No one.  

Officials using foreign search engines like Google and Yahoo at work undermine information security, Russian Security Council Secretary Nikolai Patrushev said. "The use of information and telecommunication resources located outside the Russian Federation - Google, Yahoo and others - remains a serious danger for the employees of the state authorities of regions and local self-government," Patrushev said during a retreat on Tuesday in Rostov- on-Don. According to him, in the majority of state authorities, information protection is approached formally. "This is a systemic issue for the whole of Russia, but it is especially acute in the Southern Federal District," the secretary of the Security Council of Russia said. Russia needs to centralize control over the security of information systems with methodological and organizational support for the FSB, Patrushev believes. In his opinion, this will save budgetary funds by eliminating the services of third-party organizations. Note that the state search engine "Sputnik" was created in Russia by Rostelecom in 2014. But he does not have success - by mid-2017 at sputnik.ru, according to LiveInternet, there was not even 1% of the search market runet, while Google occupied almost 40%. In August last year, Patrushev said that in general, foreign IT-technologies reduce the security of state agencies that use them and create the risk of their remote locking. According to the plan of the Ministry of Communications by 2019, 80% of officials should switch to Russian software (office packages and operating systems). Already by the end of 2017, Russian office packages should appear in the workplace at least 50% of officials, and domestic operating systems - at least 30%.

miketheterrible wrote:The nations who traditionally buy Russian is staying with Russia. But even now a NATO nation is buying Russian.

As stated, only nations such as QATAR is possibly the one. Or other American controlled middle Eastern nations may be the ones who dropped potential sales. But they weren't Russian buyers before so I doubt they would have purchased anything to begin with

GunshipDemocracy wrote:

miketheterrible wrote:The nations who traditionally buy Russian is staying with Russia. But even now a NATO nation is buying Russian.

As stated, only nations such as QATAR is possibly the one. Or other American controlled middle Eastern nations may be the ones who dropped potential sales. But they weren't Russian buyers before so I doubt they would have purchased anything to begin with

Well, small Latin countries have more to loose in case of sanctions, Arab countries inclusive. Only big players like India or  China are fairly resilient to sanctions' pressure.

miketheterrible wrote:I keep hearing that in about 12months things will get worst for world economy.

They say the recent drops in the NYSE are nothing.