Russian Economy General News: #11

calripson wrote:Yandex recently reported very good revenue and income growth - around 36% year over year. The share price fell on the earnings call. Why? Recent Russian government legislation seeks to cap foreign ownership in Yandex at 20%. As we all know, companies like Yandex have tremendous value in shaping the hearts and minds of the consumer. Limiting foreign ownership is essential. Note Yandex is registered not in Russia but in the Netherlands. The owner of Yandex - holding 48% - holds "multiple passports". He has promised to push to increase foreign ownership to 50% as well as "to do everything possible to protect shareholders' interests".

There is Russia's fundamental problem under Russified Neoliberal economics in a nutshell. How to reconcile the interests of the pro-western business class (that Putin sees as essential to economic growth and innovation) with national interests? Their interests are by definition globalist not national.

You are actually incorrect - Yandex has two HQ's.  One in Moscow and one in Netherlands.  Both registered.  You cant operate in Russia without registering there.  And if they cap it to 20% ownership by Russian law, there is nothing the head of Yandex can do about it.  They can move away but someone else will end up filling the roll - Mail.ru as example.  Yandex market is in Russia, and that is where majority of their market is.  If they decide to screw that, too bad. Plus the owner of Yandex only has 1 other passport and that is the Maltese.

You have been making a lot of claims lately with no sources.  I suggest you decide to actually provide links in future so people dont block you for trolling.

Here is Yandex HQ location: ul. Lva Tolstogo, 16, Moscow, Russia, 119021

miketheterrible wrote:

calripson wrote:Yandex recently reported very good revenue and income growth - around 36% year over year. The share price fell on the earnings call. Why? Recent Russian government legislation seeks to cap foreign ownership in Yandex at 20%. As we all know, companies like Yandex have tremendous value in shaping the hearts and minds of the consumer. Limiting foreign ownership is essential. Note Yandex is registered not in Russia but in the Netherlands. The owner of Yandex - holding 48% - holds "multiple passports". He has promised to push to increase foreign ownership to 50% as well as "to do everything possible to protect shareholders' interests".

There is Russia's fundamental problem under Russified Neoliberal economics in a nutshell. How to reconcile the interests of the pro-western business class (that Putin sees as essential to economic growth and innovation) with national interests? Their interests are by definition globalist not national.

You are actually incorrect - Yandex has two HQ's.  One in Moscow and one in Netherlands.  Both registered.  You cant operate in Russia without registering there.  And if they cap it to 20% ownership by Russian law, there is nothing the head of Yandex can do about it.  They can move away but someone else will end up filling the roll - Mail.ru as example.  Yandex market is in Russia, and that is where majority of their market is.  If they decide to screw that, too bad.  Plus the owner of Yandex only has 1 other passport and that is the Maltese.

You have been making a lot of claims lately with no sources.  I suggest you decide to actually provide links in future so people dont block you for trolling.

Here is Yandex HQ location: ul. Lva Tolstogo, 16, Moscow, Russia, 119021

https://finance.yahoo.com/news/1-russian-internet-group-yandex-150923605.html

calripson wrote:

miketheterrible wrote:

calripson wrote:Yandex recently reported very good revenue and income growth - around 36% year over year. The share price fell on the earnings call. Why? Recent Russian government legislation seeks to cap foreign ownership in Yandex at 20%. As we all know, companies like Yandex have tremendous value in shaping the hearts and minds of the consumer. Limiting foreign ownership is essential. Note Yandex is registered not in Russia but in the Netherlands. The owner of Yandex - holding 48% - holds "multiple passports". He has promised to push to increase foreign ownership to 50% as well as "to do everything possible to protect shareholders' interests".

There is Russia's fundamental problem under Russified Neoliberal economics in a nutshell. How to reconcile the interests of the pro-western business class (that Putin sees as essential to economic growth and innovation) with national interests? Their interests are by definition globalist not national.

You are actually incorrect - Yandex has two HQ's.  One in Moscow and one in Netherlands.  Both registered.  You cant operate in Russia without registering there.  And if they cap it to 20% ownership by Russian law, there is nothing the head of Yandex can do about it.  They can move away but someone else will end up filling the roll - Mail.ru as example.  Yandex market is in Russia, and that is where majority of their market is.  If they decide to screw that, too bad.  Plus the owner of Yandex only has 1 other passport and that is the Maltese.

You have been making a lot of claims lately with no sources.  I suggest you decide to actually provide links in future so people dont block you for trolling.

Here is Yandex HQ location: ul. Lva Tolstogo, 16, Moscow, Russia, 119021

https://finance.yahoo.com/news/1-russian-internet-group-yandex-150923605.html

Citing Yahoo News are we lol?  You should of seen the plethora of 'journalism' that they provided on the 2014 Ukraine crisis and its aftermath. Find a better source.

magnumcromagnon wrote:

calripson wrote:

miketheterrible wrote:

calripson wrote:Yandex recently reported very good revenue and income growth - around 36% year over year. The share price fell on the earnings call. Why? Recent Russian government legislation seeks to cap foreign ownership in Yandex at 20%. As we all know, companies like Yandex have tremendous value in shaping the hearts and minds of the consumer. Limiting foreign ownership is essential. Note Yandex is registered not in Russia but in the Netherlands. The owner of Yandex - holding 48% - holds "multiple passports". He has promised to push to increase foreign ownership to 50% as well as "to do everything possible to protect shareholders' interests".

There is Russia's fundamental problem under Russified Neoliberal economics in a nutshell. How to reconcile the interests of the pro-western business class (that Putin sees as essential to economic growth and innovation) with national interests? Their interests are by definition globalist not national.

You are actually incorrect - Yandex has two HQ's.  One in Moscow and one in Netherlands.  Both registered.  You cant operate in Russia without registering there.  And if they cap it to 20% ownership by Russian law, there is nothing the head of Yandex can do about it.  They can move away but someone else will end up filling the roll - Mail.ru as example.  Yandex market is in Russia, and that is where majority of their market is.  If they decide to screw that, too bad.  Plus the owner of Yandex only has 1 other passport and that is the Maltese.

You have been making a lot of claims lately with no sources.  I suggest you decide to actually provide links in future so people dont block you for trolling.

Here is Yandex HQ location: ul. Lva Tolstogo, 16, Moscow, Russia, 119021

https://finance.yahoo.com/news/1-russian-internet-group-yandex-150923605.html

Citing Yahoo News are we lol?  You should of seen the plethora of 'journalism' that they provided on the 2014 Ukraine crisis and its aftermath. Find a better source.

Actual data on the guy states he has two passports total.  One being Russian.  As well, parent company may be registered in Netherlands.  Its also Registered in Russia because by law, you cannot be in Russia without being registered in Russian law as they pay taxes in Russia.  That goes for any foreign company hence why foreign companies have usually a subsidiary within Russia itself.

It may be registered to work within the EU as well.  But since their entire market is mostly Russia, they have to act according to laws.  And even the CEO state:

"As we look to address national interests, we want to do so in a way that supports our own business interests and the interests of all of our stakeholders," Volozh said, adding that he remained "extremely committed" to Yandex and will continue to lead it.

So we should look at the stake holders.  Yandex could find itself in hot water in the end if they do not comply, which would mean they may end up kicked out of Russian market.  Since they are reliant on Russian market, then they will end up complying in the end anyway or go bankrupt and let Russian companies deal with it.

It isn't rocket science tbh.

BTW, all news goes back to 1 news source which is Reuters. And they are far from honest of course. But if the news is correct, then Yandex will have no choice really. They could always sell their shares to a local Russian organization. Doesn't matter.

Russian Oil Giant Prepares Massive $157 Billion Arctic Oil Project

https://oilprice.com/Latest-Energy-News/World-News/Russian-Oil-Giant-Prepares-Massive-157-Billion-Arctic-Oil-Project.html

Rosneft is preparing to lead an Arctic oil field development project that will cost an estimated $157 billion (10 trillion rubles).

Reuters quoted Russia’s Deputy Energy Minister Pavel Sorokin as announcing the price tag of the Vostok Oil project to media last week, adding that the Kremlin had already agreed on a tax relief package that would help with the Artic oil and gas push.

The Vostok Oil project will include already producing fields as well as untapped ones, and Rosneft will develop them along with partner Independent Petroleum Company. The tax relief for this project alone could reach some $940 million (60 billion rubles) annually, the chief of the tax department of Russia’s Finance Ministry said.

The tax relief package for the energy industry has been the subject of heated debate in political circles because at the same time that the Kremlin is lending its generous support for oil and gas, it is hiking other taxes, on citizens, and extending the retirement age as part of a delayed and highly unpopular retirement system reform.

Yet the Vostok Oil project could add some 2 million bpd to Russia’s overall oil production, which although not the biggest contributor to federal GDP is still the biggest single contributor to export revenues, at 53.8 percent.

The government’s tax relief would certainly go a long way towards helping Rosneft and its partner develop the Arctic fields, but it will not be enough on its own. To bring the plans to fruition, Rosneft would need foreign partners as well. And it has already found them: Indian and Chinese investors have already agreed to invest in Vostok Oil in exchange for minority stakes in the fields that the project includes. Some of them had put forward as a condition for the investment the agreement of a government support package and now that this has been largely agreed, the project could move forward.

Austin wrote:In India we have a different experience with Privatisaton , I lived in an era where every thing was government controlled in 80'

It took 4-5 years to get one land line phone , Milk and Food was rationed and barely there was 2-3 car model on road , I can go on here.

With privatisation every thing has changed in Telecom Sector and Food Sector as well , Many Government industry are almost 100 % sold to Private player like Hotel Industry or Part Sold and currently Government is on a privatisative drive for Air India  , Energy Sectors etc even Rosneft among others are bidding for them.

All in All Privatisation has been a Boon for India with far more positive then negative.

Even Rosneft has been Privatised  under Putin with stakes sold to BP and other players recently.

If they plan out well then Privatisation will work out well and will benefit the People.

Privatization is a double edge sword.. and you need to be very careful how and where is allowed..
You have a point that private industries can work much faster than the Government.. but at the same time
you need to be aware of National Security too.. Because Neoliberal Privatization (the American way) is a way
to take control of nations without invading with tanks..

Somewhere i read.. that during the 90s.. the out of control privatization ,nearly destroy Russia
defense industry.. Because Americans were buying almost every business ,related with prime materials
important for the production of Weapons.. for the Russian military.. and so when they took control of one company.. they exported all the materials away from Russian market , DENYING Russia military defense industry
the materials they need to build missiles and tanks..


So you imagine the catastrophe that it will be ,if Americans buys most of Russia mines , lets say STEEL ,Titanium and Rare earth companies.. and they later use those companies to Sabotage Russia defense industry and force Russia to buy everything more expensive from abroad? and did you image what will happen if Russia sells its energy companies to Americans.. and later a world war 3 start.. and they blow up all the refineries and destroy the mines.. denying Russia access to those important resources.. Same with Privatization of Policy or Military..
Will you support India to privatize its Defense industry to Pakistan ? What could go wrong?
Or how about Privatize the electricity and all communications of India to Pakistan?

So Privatization is not always a solution.. National security is far away more important that all the money in the
world. Privatization is ok for Business that are not critical for Russia national security.. And Rosneft and Gazprom is party private , party government controlled.. if remember well Gazprom is 51% controlled by Russia government and the second biggest investors are Russian oligarchs.. and about 20% or 30% of the investors
are british..

What could go wrong if Russia privatize its Nuclear industry ROSATOM to Americans and or Ukraine nazis ???
What could go wrong? So privatization will not work for all things .. National security is not negotiable..
no matter how much money they offer you.. The problems with the Slow Russia economy is consequence
of Putin short sight economic model.. relying Russia commodities ..and not Modernizing Russia economy to the
21 century. People need to remember that China economy was inferior to Russia in the 80s.. and 90s// and China much more modern economy is what have allowed them to eclipse Russia economy.. The entire vision of Putin as a banana republic that rely on food exports and energy is the source of the problem..

In Business Perception is everything.. and business that shows no leadership , but instead SAME-ness.. of what every other third world nation economy is doing.. don't attract the biggest clients..and the biggest bussiness.
Russia simply needs to switch its economy from Commodities ,tourism and Sport bullshit contest.. towards
a Space Exploration and innovative leading High tech business aimed at influencing society.. Russia needs to directly compete with American silicon valley companies.. and stop ignoring US domination in world development.. and do something about it.. Is Russia the nation that needs to lead the world development and not Americans... as long Putin do nothing to counter western high tech popular business , the west will continue influencing the world towards their orbit..

There is also a lot of potential , in Russia developing an Advanced digital economy , not a bananas and wheat one.. to create millions of small jobs /family jobs of people selling directly to others and the government helping
in creating the platform for them to do business in a secure way.. Something like EBAY..Alibaba is what Russia needs to push.. that transform every single Russian citizen in a potential home business.. and this will boost innovation in the nation and promote major modern business to start..

Vann7 wrote:

Austin wrote:In India we have a different experience with Privatisaton , I lived in an era where every thing was government controlled in 80'

It took 4-5 years to get one land line phone , Milk and Food was rationed and barely there was 2-3 car model on road , I can go on here.

With privatisation every thing has changed in Telecom Sector and Food Sector as well , Many Government industry are almost 100 % sold to Private player like Hotel Industry or Part Sold and currently Government is on a privatisative drive for Air India  , Energy Sectors etc even Rosneft among others are bidding for them.

All in All Privatisation has been a Boon for India with far more positive then negative.

Even Rosneft has been Privatised  under Putin with stakes sold to BP and other players recently.

If they plan out well then Privatisation will work out well and will benefit the People.

Privatization is a double edge sword.. and you need to be very careful how and where is allowed..
You have a point that private industries can work much faster than the Government.. but at the same time
you need to be aware of National Security too.. Because Neoliberal Privatization (the American way) is a way
to take control of nations without invading with tanks..

Somewhere i read.. that during the 90s.. the out of control privatization ,nearly destroy Russia
defense industry.. Because Americans were buying almost every business ,related with prime materials
important for the production of Weapons.. for the Russian military.. and so when they took control of one company.. they exported all the materials away from Russian market , DENYING Russia military defense industry
the materials they need to build missiles and tanks..


So you imagine the catastrophe that it will be ,if Americans buys most of Russia mines , lets say STEEL ,Titanium and Rare earth companies.. and they later use those companies to Sabotage Russia defense industry and force Russia to buy everything more expensive from abroad?   and did you image what will happen if Russia sells its energy companies to Americans.. and later a world war 3 start.. and they blow up all the refineries and destroy the mines.. denying Russia access to those important resources..  Same with Privatization of Policy or Military..
Will you support India to privatize its Defense industry to Pakistan ? What could go wrong?  
Or how about Privatize the electricity and all communications of India to Pakistan?

So Privatization is not always a solution.. National security is far away more important that all the money in the
world. Privatization is ok for Business that are not critical for Russia national security..  And Rosneft and Gazprom is party private , party government controlled.. if remember well Gazprom is 51% controlled by Russia government and the second biggest investors are Russian oligarchs.. and about 20% or 30% of the investors
are british..  

What could go wrong if Russia privatize its Nuclear industry ROSATOM to Americans and or Ukraine nazis ???
What could go wrong? So privatization will not work for all things .. National security is not negotiable..
no matter how much money they offer you.. The problems with the Slow Russia economy is consequence
of Putin short sight economic model.. relying Russia commodities ..and not Modernizing Russia economy to the
21 century.  People need to remember that China economy was inferior to Russia in the 80s.. and 90s// and China much more modern economy is what have allowed them to eclipse Russia economy.. The entire vision of Putin as a banana republic that rely on food exports and energy is the source of the problem..

In Business Perception is everything..  and business that shows no leadership , but instead SAME-ness.. of what every other third world nation economy is doing.. don't attract the biggest clients..and the biggest bussiness.
Russia simply needs to switch its economy from Commodities ,tourism and Sport bullshit contest.. towards
a Space Exploration and innovative leading High tech business aimed at influencing society..  Russia needs to directly compete with American silicon valley companies.. and stop ignoring US domination in world development.. and do something about it.. Is Russia the nation that needs to lead the world development and not Americans... as long Putin do nothing to counter western high tech popular business , the west will continue influencing the world towards their orbit..

There is also a lot of potential , in Russia developing an Advanced digital economy , not a bananas and wheat one.. to create millions of small jobs /family jobs of people selling directly to others and the government helping
in creating the platform for them to do business in a secure way.. Something like EBAY..Alibaba is what Russia needs to push..   that transform every single Russian citizen in a potential home business.. and this will boost innovation in the nation and promote major modern business to start..                                                          

I mentioned that Strategic Sectors like Nuclear , Powerplant , Shipbuilding , Aviation Industry , Space Industry and MIC needs to be kept out of Privitisation.

There are two kind of privatisation one is by local big Russian only private players and one is by outside players either directly or by JV with local players, Each proposal needs to be carefully examined on its merits.

Privatisation bring in Private Capital and the Public capital can be spent on other core areas plus it brings in competition to the market which is good for the people and it brings in many choices specially in Consumer Sectors.

The government can still part privatise the Road, Rail infra and keep majority of its shares to itself more than 50 % , Look at Aeroflot where Russian government hold more than 50 % stake and it is considered one of the best airlines in Europe ......Same goes with Rosneft.

Private need not be big players there are many small industry call it SME which plays a critical role by supplying parts,components to big players.

I am not sure what is the final plan of the Russian Government but they can start Privatisation and let big Russian only Private companies to take over and Russian government keep majority stake

Why Chinese farmers have crossed border into Russia's Far East

https://www.bbc.com/news/world-europe-50185006

PURCHASING POWER PARITY ADJUSTMENTS (PPP)

https://www.awaragroup.com/blog/purchasing-power-parity-adjustments/

Austin wrote:PURCHASING POWER PARITY ADJUSTMENTS (PPP)

https://www.awaragroup.com/blog/purchasing-power-parity-adjustments/

Once again there is a failure to identify the limitations of the PPP method as currently applied. It is basically consumer centric.
So the price differential in the military sector and even in a lot of industrial activity including resource extraction is not taken
into account but estimated. The estimate assumes similarity to the consumer sector. That is BS since it is not even true
in the USA where military goods and services are grossly overpriced. So the PPP GDP of Russia is not 4.35 trillion dollars equivalent,
but over 6 trillion dollars equivalent.

But here's the rub. A proper PPP assessment of the USA itself would deflate its GDP due to gross overpricing in the military sector
and basically any industry that lives off government money. So the 6 trillion dollars Russian GDP has to be compared against an
under 16 trillion US GDP.

However, I have failed to account for super important detail. About 50% of the US GDP is the so-called "financial industry", i.e.
banking and venture funds and other activities related to the shuffling of money. Russia has a very under-developed financial
industry since domestic lending rates have been over 7% since the 1990s (actually they are currently the lowest during this
period). So the Russian economy has borrowed from abroad. If Russia had a properly developed financial industry its PPP GDP
would be over 8 trillion US dollars. In other words, per capita GDP of the USA and Russia would be about the same.

Hole wrote:

GarryB wrote:

Why Chinese farmers have crossed border into Russia's Far East

Hahahaha.... good old BBC... I guess there is Chinese taking over Russia much like there is Pakistan taking over corner shops in London...

The British have no right to say a word about anything Russia, China, or India do... they can go fuck themselves.

These chinese farmers crossed the border legaly and leased some land from the local authorities. BBC = bullshit broadcasting company

And BBC did say that but in a tiny mention while trying to say they purchased the land. Which they legally can't in Russia. You have to be a Russian citizen to own land. So all the land is actually leased. This has been gone over so many times in the past. They even mentioned that both Russians and Chinese work at many of these leased plantations.

BBC is just typical bullshit news.

Russia has big local private companies , Just note their turnover , The Government needs to use them during privatisation or infra project

https://www.forbes.ru/biznes/383589-kakie-chastnye-kompanii-rastut-v-rossii-na-150-250-v-god

According to Forbes, the total ruble revenue of 200 private companies over the year increased by 22.2%, to 43.7 trillion rubles.

https://russiabusinesstoday.com/energy/lukoil-tops-latest-forbes-list-of-biggest-russian-private-companies/

Austin wrote:Russia has big local private companies , Just note their turnover , The Government needs to use them during privatisation or infra project

https://www.forbes.ru/biznes/383589-kakie-chastnye-kompanii-rastut-v-rossii-na-150-250-v-god

According to Forbes, the total ruble revenue of 200 private companies over the year increased by 22.2%, to 43.7 trillion rubles.

https://russiabusinesstoday.com/energy/lukoil-tops-latest-forbes-list-of-biggest-russian-private-companies/

Note how there are no large private banks. You can thank the 7.5% and higher prime rate over the last 20 years.

kvs wrote:

Austin wrote:Russia has big local private companies , Just note their turnover , The Government needs to use them during privatisation or infra project

https://www.forbes.ru/biznes/383589-kakie-chastnye-kompanii-rastut-v-rossii-na-150-250-v-god

According to Forbes, the total ruble revenue of 200 private companies over the year increased by 22.2%, to 43.7 trillion rubles.

https://russiabusinesstoday.com/energy/lukoil-tops-latest-forbes-list-of-biggest-russian-private-companies/

Note how there are no large private banks.   You can thank the 7.5% and higher prime rate over the last 20 years.

 

Dont think there is any relation between the two else India Tradational interest rates are quite high and we have many private banks.

Just checking on the fact and found there are big private banks too https://corporatefinanceinstitute.com/resources/careers/companies/top-banks-in-russia/#:~:targetText=Incorporated%20in%201990%2C%20Alfa%20Bank,the%20private%20banks%20in%20Russia.

and many foreign own subsidary operating in Russia
https://www.thebanker.com/Banker-Data/Banker-Rankings/The-Top-50-Russian-Banks-2018-a-diminishing-force?ct=true

Rosatom announced plans to create a quantum computer for 24 billion rubles

https://www.vedomosti.ru/technology/articles/2019/11/06/815633-rosatom-zayavil

The economic effect of the development is expected no earlier than in five years, says Ruslan Yunusov, who will head the project office of the quantum computer at Rosatom. By 2024, he says, it is planned to create four types of quantum computers ranging in size from 50 to 100 qubits. (Qubit, short for quantum bit, is the simplest element of a quantum computer; it can be in one of two states, like a regular bit, or in a so-called superposition.)

So far, Russian specialists have managed to create systems consisting of two qubits, while American and European scientists have developed devices built on 50–70 qubits. Such quantum computers will provide quantum superiority - following the example of Google - and will also begin to solve the first pilot projects for the industry, Yunusov is sure. In October 2019, Google announced that its quantum computer could calculate in 3 minutes 20 seconds, which, according to researchers, the most powerful Summit supercomputer from IBM, would take about 10,000 years.

Quantum processors will be produced in Russia from scratch, but some components can be bought abroad, such as lasers or measuring equipment, says Yunusov. A quantum computer will be in Russia, they plan to develop a cloud platform with remote access to it - following the example of world corporations.

There is an agreement between the Russian government and Rosatom on the development of quantum computing in the country. Russian Railways signed a similar agreement on the development of quantum communications, and Rostec on the development of quantum sensors. The development will help Russia to become one of the leaders in the quantum race, Rosatom said in a statement.

Russia is really attempting the Quantum Computer race for sure. And with Rosatom and Rostec involved, I have high hopes. Two major, well profiting, and powerful companies in the tech field.

https://sdelanounas.ru/blogs/126710/

Since the beginning of 2019, the export of confectionery products increased by 14,2%

https://sdelanounas.ru/blogs/126719/

The flow of foreign tourists in Russia grew by 20.5% in 9 months

miketheterrible wrote:Russia is really attempting the Quantum Computer race for sure. And with Rosatom and Rostec involved, I have high hopes. Two major, well profiting, and powerful companies in the tech field.

These machines sound like stochastic versions of ternary systems. The USSR was working seriously on ternary computers back in the
1970s. Instead of (1,0) we have (1,0,-1) as the number base and this is the same as noted for three possible states of quantum
"bits".

No clown should even try to dismiss Russia as a challenger. It has the mathematical base for actually making such contraptions useful.

Sberbank created the most powerful supercomputer in Russia

https://ria.ru/20191108/1560707954.html

“I proudly want to introduce you to Christofari. It is the most powerful computer in Russia,” he said, adding that this is the main “ingredient” of the AI ​​cloud at Sberbank. It is expected that the supercomputer will bring the speed of learning models to a new level.

The test performance of Kristofari, named after the first client of the Savings Bank Nikolai Kristofari, reached 6.7 PFLOPs. In terms of power, it ranks seventh in Europe and 29th in the world, Rafalovsky added.