Russian Economy General News: #8

https://sdelanounas.ru/blogs/105824/

Food exports jumped more than 20%

Exports of food and agricultural raw materials last year was $20, 7 billion, which is 21, 1% more than in 2016, says the report of the Ministry of agriculture. The third exported abroad, food products accounted for grain and products of milling industry.

https://sdelanounas.ru/blogs/105857/

Canada, Holland, Poland... where else Russia sells farm equipment?
Today, our agricultural machinery comes in 47 countries.

kvs wrote:

miketheterrible wrote:

Austin wrote:Forbes: Russian billionaires lost more than $ 12 billion against the background of a decline in the value of shares

Подробнее на ТАСС:
http://tass.ru/ekonomika/5108309

All that money lost is money frozen in terms of these olgiarches assets in US.

Guess these idiots should have seen the writing on the wall.

No, most of the money is speculative capital derived from share prices.   For some reason people think that stock prices
are God's gift to humanity.   So speculators determine how much a company is worth and what its capital assets are.
This is utter nonsense since no company can fully convert its nominal share value into actual cash.   As soon as it starts
to sell its stocks the price drops unless we are dealing with a token amount of stocks.   But a systematic program to
sell shares is guaranteed to lower their price even if strung out over a multi-year time frame.  

It is good that Russian companies are based on real assets and not the stock market casino fiction.    Of course, this
gives us absurd situations were Gazprom is valued much less than Exxon.    In terms of energy assets Gazprom is
much bigger than Exxon.    Most Exxon's "value" comes from its overpriced shares.  

You are very much right I believe KVS. It may be pure speculated money through the stock market which obviously isn't any guarantee for anything.

If Russia is booted from the US and British Stock exchange, it will suck temporarily. But I imagine they will appear aggressive on the HKSE, Shanghai Stock Exchange, etc.

Another good piece of news:

https://sputniknews.com/middleeast/201804101063381442-iran-russia-railway-rzd-project/?utm_source=https://t.co/LsXkZ7S7dH&utm_medium=short_url&utm_content=hmm7&utm_campaign=URL_shortening

Iran Bids $3.7B for Joint Railway Project with Russia

TEHRAN (Sputnik) - Iran proposed a project to electrify a 3,000-kilometer (1,860-mile) railway line that might cost up to 3 billion euros ($3.7 billion), the company's First Deputy CEO Alexander Misharin said Monday.

"Three thousand kilometers, a big project, we agreed to sit down at the negotiating table and discuss it. This is a big project, we need to fold the financing scheme, this is 2-3 billion euros. This sounded several times today," Misharin, who visited Tehran as part of the Russian delegation, told Sputnik.

Nabiullina commented on the collapse of Russian markets because of US sanctions

https://iz.ru/730441/2018-04-10/nabiullina-prokommentirovala-obval-rossiiskikh-rynkov-iz-za-sanktcii-ssha

Head of the Central Bank Elvira Nabiullina commented on the collapse of Russian markets as a result of the imposition of US sanctions, speaking at the Moscow Stock Exchange.

According to her, the Bank of Russia has a sufficient set of instruments to prevent a threat of financial stability, but at the moment there are no grounds for applying them.

The economy of Russia is open, but time is just necessary to adapt to changing external conditions, RIA Novosti reports .

The head of the Central Bank also noted that he will monitor the situation, Interfax reports . If there is a need, corrective methods of the situation will be applied.

Kvs, you're gonna love this:

http://tass.com/economy/998785

Bank of Russia unlikely to cut key rate in the next six months — former finance minister

MOSCOW, April 10. /TASS/. Former Finance Minister and head of the Center for Strategic Research Alexei Kudrin believes that the Bank of Russia is unlikely to go on reducing the key rate in the coming six months. He said this when talking to reporters on the sidelines of the Moscow Stock Exchange forum

"This (the current situation in the financial markets - TASS) will not affect strongly the economic growth. On the other hand, it will require the Central Bank to pay extra attention to inflation, so I think we should not wait for the Central Bank to cut the key rate in the nearest half-year," Kudrin said.

The high price of oil will make it possible to avoid serious fluctuations in the ruble exchange rate under current conditions, according to Kudrin.

"Despite the exit of some foreign investors from the Russian stock market, nevertheless, we now have a high price for oil. In this respect I do not expect any serious new fluctuations. In addition, the weakened ruble helps Russian exports, and a number of industries are likely to earn. In general the balance will be quite good, it will not affect strongly the economic growth, "he said.

EDIT: In some ways that really sounds so bizarre, that it might even be a mistranslation, atleast partially. (Probably not though?)

Kudrin, the nobody who sits in an organization that does nothing, is begging Russia not to touch US businesses in Russia.

You should have seen the comments on ria. Pretty much everyone states he should just move to the US already.

Why is there no talk of retaliatory sanctions? This would be fantastic opportunity and excuse to seize enter array of US businesses operating in Russian, as well as force out large number of US competitors from Russian markets. There is no reason not to ban import and sales of Apple, Qualcomm, Microsoft and other US major corporation products. Also there is bunch of assets US corporations own in Russia, mostly stolen back in 90s, they should all be confiscated. Why not ban Amazon from operating in Russia, it is direct competitor to Russian retailers, and is draining it's margins out of Russia instead of reinvesting in country like Russian retailers would do.

I'll tell you the reason, and it is same reason treasonous scum like Kudrin are still at large and not in prison, same reason brain-dead foreign moppets like Nabiullina, Siluanov, Greg and Medvedev are still in control of key Russian economic and political institutions. Putin is weak and unable to recognise good opportunity even when it is kicking him in the head. Even if Putin does not have trust in FSB and ministry of internal affairs to deal with those traitors reliably a single phone call to Kadyrov could resolve this enter affair in single night in less formal manner  

This display of weakens is only going to embolden Russian's enemies. Now in part that might be a point because pretty much all of the sanctions were actually beneficial to Russia, but I kind of doubt it Putin is sophisticated enough to play that kind of game, more likely he is just weak and frightened man without balls to properly deal with Russian liberal oligarchy or collapsing impotent foreign empires like US or UK.

ZoA wrote:Why is there no talk of retaliatory sanctions? This would be fantastic opportunity and excuse to seize enter array of US businesses operating in Russian, as well as force out large number of US competitors from Russian markets. There is no reason not to ban import and sales of Apple, Qualcomm, Microsoft and other US major corporation products. Also there is bunch of assets US corporations own in Russia, mostly stolen back in 90s, they should all be confiscated. Why not ban Amazon from operating in Russia, it is direct competitor to Russian retailers, and is draining it's margins out of Russia instead of reinvesting in country like Russian retailers would do.

It's a fantastic opportunity to deprive Russia of tax revenues and jobs from foreign investors, as well as destroying its investment climate for Western investors?

That doesn't sound like a fantastic opportunity, that sounds like shooting oneself in the foot - it's something one would expect from the Ukraine not from Russia.

Medvedev plans to report to the State Duma on the stable situation in the economy

https://iz.ru/730658/2018-04-10/medvedev-planiruet-dolozhit-v-gosdume-o-stabilnoi-situatcii-v-ekonomike

Medvedev must be the Comical Ali of Russian Equivalent of Saddams Iraq

Austin wrote:Medvedev plans to report to the State Duma on the stable situation in the economy

https://iz.ru/730658/2018-04-10/medvedev-planiruet-dolozhit-v-gosdume-o-stabilnoi-situatcii-v-ekonomike

Medvedev must be the Comical Ali of Russian Equivalent of Saddams Iraq

Really? Some oligarchs (who live in the west) lose some Money? Bu-huh! The rest of the economy is not only stable, it is getting better.

flamming_python wrote:

It's a fantastic opportunity to deprive Russia of tax revenues and jobs from foreign investors, as well as destroying its investment climate for Western investors?

That doesn't sound like a fantastic opportunity, that sounds like shooting oneself in the foot - it's something one would expect from the Ukraine not from Russia.

You been drinking way too much liberal koolaid. This is pretty much regurgitation of economically ignorant drivel clowns like Kudrin are peddling.To those  treasonous idiots "foreign investments" is sell of of all valuable asset at rock bottom prices to foreign corporations and oligarhs that then promptly proceeded to extract all revenue and capital out of the country resulting in fantastic fall o living standard, theological level and industrial output. It is time for that idiocy to be rolled back and hopeless fools that advocate for it to be sent to greener pastures.

Washington can impose new sanctions against Russia

https://ria.ru/world/20180410/1518342992.html?referrer_block=index_main_4

The new package provides for a complete ban on any financial transactions related to Russia's public debt. In addition, deals with securities issued by the Central Bank, the National Welfare Fund and the Federal Treasury may be subject to restrictions.

Sanctions can also affect Sberbank, VTB, Gazprombank, Bank of Moscow, Rosselkhozbank, Promsvyazbank and Vnesheconombank.

Restrictions must enter into force no later than 60 days after their adoption.

As the main reason for the increased economic pressure in the document, Russia's "participation" in the "Skripal case" is indicated.

РИА Новости https://ria.ru/world/20180410/1518342992.html

how much is the barrel of oil today? Kudrin say ,oil is high..

aside anyone knows what will happen if US attack Russia in Syria from a market /economy
point of view... ? Will it sink Russia economy? how about invasion of Ukraine?

Can the central bank of Russia do anything to minimize the damage on Russia any world war?

it seems to me that US,UK,Canada and all haters of Russia in the west ,will be doing anything
to Hit Russia economy and bankrupt.. but no idea what they could do..

Just my two Cents what Russia should do:

1. all western companies working in Russia must use a russian bank and the Ruble for all their transactions. They would need to change 50 - 100 Bill. Euros/Dollars into Ruble every year, which would strengthen the currency and enlarge the possibilities of the government/CB to print money.

2. all western Banks who want to continue their work in Russia must use a russian partner (state-owned bank). Better control of the movement of capital.

Don´t confiscated western companies. It is much more embarrassing for western politicians to watch their businesses still go to Russia.
Don´t stop selling seats on russian rockets to Amis. Every time (all 3 to 4 month) when an Ami is flying to Baiknur to be launched into space on a russian rocket, the people remember the words of the Great Brown Leader of the western pseudo-liberals Obongo: Russia doesn´t produce anything...
Don´t stop selling them oil and gas and titanium parts for their planes. Again, it´s an embarassement for the west, complaining about the evil Russians, but than spend billions and billions on their products.

ZoA wrote:

flamming_python wrote:

It's a fantastic opportunity to deprive Russia of tax revenues and jobs from foreign investors, as well as destroying its investment climate for Western investors?

That doesn't sound like a fantastic opportunity, that sounds like shooting oneself in the foot - it's something one would expect from the Ukraine not from Russia.

You been drinking way too much liberal koolaid. This is pretty much regurgitation of economically ignorant drivel clowns like Kudrin are peddling.To those  treasonous idiots "foreign investments" is sell of of all valuable asset at rock bottom prices to foreign corporations and oligarhs that then promptly proceeded to extract all revenue and capital out of the country resulting in fantastic fall o living standard, theological level and industrial output. It is time for that idiocy to be rolled back and hopeless fools that advocate for it to be sent to greener pastures.

And what's your solution?

It's all great with this rhetoric but your ideas will lead to a nose-dive of the economy.

Don't sanction your own industry. Sanction others.
And foreign investors are part of your own industry and economy.

So it seems the sanctions are finally having a real impact? For the first time since 2014-15, that is.

https://www.rt.com/business/423783-russian-stock-market-ruble/

"I think the surge in inflation, the weakening of consumer and investment confidence, will weaken GDP growth rates in 2018 to zero or even negative values (from 0.0% to -1.0%). The key rate cut is postponed until the better times," he told RT.

Just one analyst and I’m not even sure if he’s talking about the current situation or just about some worst-case scenario.

Well, there goes the "stable ruble" in any case. I guess a (very) weak ruble is not such a good thing after all? But shouldn’t the increases in export earnings (Russia exports energy in dollars -> receives more rubles) more than mitigate that? The budget deficit was already pretty much non-existent last year, reserves growing rapidly. I guess not?

Russian PM Calls US Sanctions 'Unfair Competition,' Vows Moscow Could Appeal

https://sputniknews.com/russia/201804111063437678-russia-sanctions-us-appeal/


Appeal against who ? this guy is comical he thinks sanction is "unfair competition" even though its an Economic War unleashed by US

Austin wrote:Russian PM Calls US Sanctions 'Unfair Competition,' Vows Moscow Could Appeal

https://sputniknews.com/russia/201804111063437678-russia-sanctions-us-appeal/


Appeal against who ? this guy is comical he thinks sanction is "unfair competition" even though its an Economic War unleashed by US

Our whole political class is comical.

Promising to 'sue' and laughing off the latest US provocations as if there is something funny here and Russia is not being directly targetted and assaulted.

When Germany tells Russia that it needs to produce guarantees that the Ukraine will still be used as a transit country after Nord-Stream II is constructed, our politicans constitute the German position as 'not being serious'.
Well they are serious Russia. They certainly are not clowning around. They mean exactly what they say - they want Russia to keep subsidizing the Ukrainian economy. So what are you going to do about it - keep cracking anecdotes in response?

flamming_python wrote:
It's all great with this rhetoric but your ideas will lead to a nose-dive of the economy.

This comment only shows your utter cluelessness  about how economies actually work.  Where do ridiculous people like you get idea that comprador oligarchs and foreign corps leaching all revenue out of businesses they own is beneficial to any country. How do you come up with such stupid ideas?

Austin wrote:Russian PM Calls US Sanctions 'Unfair Competition,' Vows Moscow Could Appeal

https://sputniknews.com/russia/201804111063437678-russia-sanctions-us-appeal/


Appeal against who ? this guy is comical he thinks sanction is "unfair competition" even though its an Economic War unleashed by US

No wonder US and UK are getting more and more aggressive against Russia. With pathetic gutless cretins like this running Russian government they can fully expect to continue with this bullshit indefinitely without any repercussions.

ZoA wrote:

flamming_python wrote:
It's all great with this rhetoric but your ideas will lead to a nose-dive of the economy.

This comment only shows your utter cluelessness  about how economies actually work.  Where do ridiculous people like you get idea that comprador oligarchs and foreign corps leaching all revenue out of businesses they own is beneficial to any country. How do you come up with such stupid ideas?

And where do you get your stupid ideas from that banning companies such as Boeing, which employs hundreds of qualified engineers in Moscow and buys masses of titanium sections from Russia - would in any way shape or form serve Russian interests or its economy?
What do you think all those specialists would do? They'll be given an offer to move to another country to stay with the company - and they'll take it. And Russia will be left without them, and without the tax revenues.

How about Coca Cola? Several plants across the country, thousands of workers in total.
Pepsi Co as well.

Ford?
Assembly plant in St. Petersburg, 3000 people employed there.
An engine plant in Tatarstan.
Are you going to give them all jobs?

Kofax. IT office in St. Petersburg, 150 highly-paid IT specialists.

Disney. Lots of joint ventures with Russian animation studios, loads of events organized here.

John Deere. Manufacturing facility in Domodedovo.

It's not just fast food restaraunts, sales offices and Starbucks here, matey.

How about this?

https://www.rt.com/business/423840-russian-sanctions-response-medvedev/

Russia should ban American products in response to US sanctions – PM Medvedev

Moscow may ban US goods as part of a response to the latest sanctions imposed by Washington, Prime Minister Dmitry Medvedev has suggested.

These can be not only the American securities… but also a whole range of other goods that are delivered to the Russian market or produced by American businesses on the territory of our country,” Medvedev said, answering questions from the Russian State Duma on Wednesday.

The prime minister stated that Moscow's possible response to new Washington sanctions should be adequate and measured. "Response measures should be well-calculated, should not harm ourselves, they must be adequate," he said.

Russia and the US do not have trade agreements, but both countries are members of the World Trade Organization. Trade between the two countries amounted to $24 billion by the end of 2017, of which $17 billion was Russian exports to America.

Russia delivers oil, metals, nuclear fuel, mineral fertilizers and fish to the US, while buying mostly aircraft, aircraft engines and components from Boeing. Before the sanctions, Russia was also buying oil-drilling equipment from the US.

The Trump administration issued an expanded list of sanctions on Friday, targeting Russian businessmen and companies. The detailed list can be found in RT’s article.

Not so soft after all? But of course it's not entirely clear what he means. Eveything, 100%?