Russian Economy General News: #12

That was expected. The Duran mentioned it. It will last a certain time and it will stop. Bank runs mean nothing since if they withdraw rubles, means they still have rubles regardless if in the bank or in hand. It's foreign money as KVS said. Which as he said, will be used for black market goods. In reality, you can't use USD at a general supermarket.

The gold backed crypto currency being planned is a smart move. I think doing both - digital Ruble and a gold Ruble is solid idea. Maybe had the black Ruble as tied to oil and gas and use that as for trade.

1. The Bank of Russia raises the key rate to 20%.
2. The obligation to sell 80% of foreign exchange earnings from exports for Russian residents comes into force.

Scorpius wrote:1. The Bank of Russia raises the key rate to 20%.
2. The obligation to sell 80% of foreign exchange earnings from exports for Russian residents comes into force.

The second part, can you go into more details?

And if interest rates are at 20%, is there a plan to assist those who need a mortgage?

miketheterrible wrote:

Scorpius wrote:1. The Bank of Russia raises the key rate to 20%.
2. The obligation to sell 80% of foreign exchange earnings from exports for Russian residents comes into force.

The second part, can you go into more details?

And if interest rates are at 20%, is there a plan to assist those who need a mortgage?

in the second part: Russian companies engaged in exports are obliged to send 80% of the received currency for sale on the Russian market. This measure is designed to avoid a shortage of foreign currency for residents.
The current mortgage will not change, in Russia there is a ban on raising the interest rate of the interest rate for the entire period of the mortgage contract. As for the new contracts, I have no doubt that some government support measures will be announced in the coming days. Usually in such cases, the state compensates part of the interest rate for the bank.

Scorpius wrote:

miketheterrible wrote:

Scorpius wrote:1. The Bank of Russia raises the key rate to 20%.
2. The obligation to sell 80% of foreign exchange earnings from exports for Russian residents comes into force.

The second part, can you go into more details?

And if interest rates are at 20%, is there a plan to assist those who need a mortgage?

in the second part: Russian companies engaged in exports are obliged to send 80% of the received currency for sale on the Russian market. This measure is designed to avoid a shortage of foreign currency for residents.
The current mortgage will not change, in Russia there is a ban on raising the interest rate of the interest rate for the entire period of the mortgage contract. As for the new contracts, I have no doubt that some government support measures will be announced in the coming days. Usually in such cases, the state compensates part of the interest rate for the bank.

Interesting. Now I wonder if the locals will be able to afford.

Now, any news on the digital Ruble? I heard they are going for a digital currency backed by gold. Is this true?

This is going to hurt for russians.. no longer they will be able to buy intel or amd computers .

What are the russian citizens now going to do ? intel and amd told china to not sell to russia or else...


Intel & AMD Reviewing Impact Of U.S Sanctions Against Russia On Their Sales Believes Report

Intel & AMD Reviewing Impact Of U.S Sanctions Against Russia On Their Sales Believes Report
According to the RBC, Intel and AMD representatives have verbally informed Russian firms that supplies of their products to Russia have been stopped. The publication reports that the two companies have suspended shipments, and it goes on to add that Intel's office in China has also reached out to companies in the country to inform them to not ship to Russia.

Even Russian software and games will be banned by the west.
So what is putin going to do now? imports substitution ?
This is why the west don't respect Russia , because they know russia is highly dependent on
american technology for everything. This is why it was a big mistake for putin , in depending so much of the west , because the more russia depends on western business the more the sanctions.
What russia face now is a business war , one that they will not have a way to compete.
the only computers russia will see are the ones the miltiary produce of elbrus but they are
only for military or office use.

https://wccftech.com/intel-amd-reportedly-suspend-chip-shipments-to-russia-report/

Russians will need to take a plane to buy a compuuter.

Vann7 wrote:

This is going to hurt for russians..  no longer they will be able to buy intel or amd computers .

What are the russian citizens now going to do ?  intel and amd told china to not sell to russia or else...


Intel & AMD Reviewing Impact Of U.S Sanctions Against Russia On Their Sales Believes Report

Intel & AMD Reviewing Impact Of U.S Sanctions Against Russia On Their Sales Believes Report
According to the RBC, Intel and AMD representatives have verbally informed Russian firms that supplies of their products to Russia have been stopped. The publication reports that the two companies have suspended shipments, and it goes on to add that Intel's office in China has also reached out to companies in the country to inform them to not ship to Russia.

Even Russian software and games will be banned by the west.
So what is putin going to do now?  imports substitution ?    
This is why the west don't respect Russia , because they know russia is highly dependent on
american technology for everything. This is why it was a big mistake for putin , in depending so much of the west , because the more russia depends on western business the more the sanctions.
What russia face now is a business war , one that they will not have a way to compete.
the only computers russia will see are the ones the miltiary produce of elbrus but they are
only for military or office use.  

https://wccftech.com/intel-amd-reportedly-suspend-chip-shipments-to-russia-report/

Russians will need to take a plane  to buy a compuuter.

I'll ask for you to be banned to since you are spreading fud.

We all went over this. And you spread regardless.

https://youtu.be/mzlF08oVPY8

lancelot wrote:

Pacense wrote:Theres a chance that technology cut includes Oracle and SAP systems. If so how can big companies work at all?

Oh dear. Oracle. Oh my god. Just use MariaDB. It is FREE. Stop buying that overpriced piece of US crap.

Vann7 wrote:
This is going to hurt for russians..  no longer they will be able to buy intel or amd computers.
What are the russian citizens now going to do ?  intel and amd told china to not sell to russia or else...

Like they will ever know where the chips went... The Chinese are professionals at relabeling chips. All it takes is sanding the product codes down and you will never know where they came from even if you inspect them. This is also a big chance for Zhaoxin to sell chips in Russia.

Vann7 wrote:Even Russian software and games will be banned by the west.
So what is putin going to do now?  imports substitution ?

They will stop cracking down on Russian software piracy sites like they used to do. Unofficially of course. Guess who will lose more money.

Did you know in India, major corporations use pirated software? Yeap, quite common. Oracle? I'm surprised they are still around honestly, since open source has worked just as good or better for so long and thought only thing that kept them alive was SPARC. To which Russia still has right to make and still makes them (new one I'd R-2000).

so, it is officially stated that a ban has been imposed on raising the rate on all existing loan agreements in Russia. The Bank of Russia also intends to soften the conditions for new mortgage agreements and unsecured loans for the population.

The 80% sale for rubles for foreign earnings has produced rapid results. The ruble crashed to 117 to the dollar and then recovered
to 98. Over time I expect the ruble to gain more. The retarded chimps in Washington think that they will foist regime change on
Russia through inflation. They are retards because they think that Russia is a resource commodity banana republic that needs to
import all value added production and services. Russia can buy Chinese products without using dollars and with an agreement
with China for a reasonable exchange rate. NATzO depends on China for basically all of its consumer goods.

kvs wrote:The 80% sale for rubles for foreign earnings has produced rapid results.   The ruble crashed to 117 to the dollar and then recovered
to 98.  Over time I expect the ruble to gain more.   The retarded chimps in Washington think that they will foist regime change on
Russia through inflation.   They are retards because they think that Russia is a resource commodity banana republic that needs to
import all value added production and services.   Russia can buy Chinese products without using dollars and with an agreement
with China for a reasonable exchange rate.   NATzO depends on China for basically all of its consumer goods.  

I'm curious about the digital assets they are building.

Also, Venezuela and Iran still stands even after inflation, and they both don't produce nearly what russia does.

Also, Venezuela and Iran still stands even after inflation, and they both don't produce nearly what russia does.

Well, if by stand you mean not collapse Somalia style, then they are standing. But they are permanently suppressed and impovrished. This is going to be very hard for Russia. Russia had been doing a very good job with a slow step by step transition away from Western finance and technology. And they are in much better shape for continuing that than they were 10 years ago. But you still do not want to have to try to do this kind of undertaking all at once.

It will take a while before it becomes apparent what the next several years will be like. We'll all have to watch over the next couple months. But if Russia does somehow pull this off rather well then it is going to transform the world. Previously, the idea of cutting a developed county off from the West in finance and technology was just a bunch of hypotheticals. And the same for economic response. This will show hard data since the US, Canada, and EU went all out. You can bet China will be watching carefully.

Russia is going to have to up its game and fill in all the gaps it let the west fill all these years.

I suspect what will annoy most Russians the most is McDonalds and other diabetes franchises will likely be closed down, which will cost them billions.

I am sure if enough franchise owners got together they could use the existing equipment and material, they likely already source the food locally for their products... just Russianise it and continue operations under a different name...

When the US was pissed at France they changed from calling hot chips French Fries to freedom fries or some such crap.

Perhaps they could first of all clean up the menu and make it more Russian and actually healthy or less unhealthy.

They can make their own products and sell them and create a franchise of their own... they could mix the franchises... merge Mcds and KFC and sell both new menus in each.... there is probably a large amount of local chicken farms and beef farms that were created to supply these franchises with raw material so just closing them down would be damaging, so keep them open... new management... new menu... new concept that appeals to Russians.

Buying US computer chips was easy and likely cheap, but China is the home of counterfeit products... the factories making these American chips probably runs one shift a day for 8 hours a day.... the manager could put on two more shifts and produce chips the other 16 hours a day and stamp them with a different label and sell them to Russia or anyone else for that matter.

Hell... they could just take standard production and mark 20% as being faulty and sell those to Russian companies instead of destroying them.

Russia needs to develop computer producing companies and get their own hardware into production... now there is no cheap competition from the west... it will start out expensive but the required volumes and LACK OF CHEAP WESTERN COMPETITION means it is a very good investment with good future potential.

Production and design technology level in Russia is as good as anywhere else and many of their costs are lower.

Economic substitution is hard not to say impossible. It can be done in some areas in some products, but not in more advance products or services, and for sure not at all products/services at the same time.


Otherwise everybody would be doing it. Even trying it would come with a major cost. To be honest I don't think is even worth trying it.

And please, dont use Venezuela as an example. Visited the place already, no way, and I say it again, no way Russian people will endure that type of economy.

Pacense wrote:
Economic substitution is hard not to say impossible. It can be done in some areas in some products, but not in more advance products or services, and for sure not at all products/services at the same time.


Otherwise everybody would be doing it. Even trying it would come with a major cost. To be honest I don't think is even worth trying it.

And please, dont use Venezuela as an example. Visited the place already, no way, and I say it again, no way Russian people will endure that type of economy.

That's only because Latin America is a special type of piss poor management.  Russia is capable but all their import substitution won't lead to perfection in all fields. I agree imports will always exist.  But minimize it down and all will work out.

It isn't like Russia can't trade with others. Just not the 11% of the world.

Autodestruct wrote:

Also, Venezuela and Iran still stands even after inflation, and they both don't produce nearly what russia does.

Well, if by stand you mean not collapse Somalia style, then they are standing.  But they are permanently suppressed and impovrished.  This is going to be very hard for Russia.  Russia had been doing a very good job with a slow step by step transition away from Western finance and technology.  And they are in much better shape for continuing that than they were 10 years ago.  But you still do not want to have to try to do this kind of undertaking all at once.

It will take a while before it becomes apparent what the next several years will be like.  We'll all have to watch over the next couple months.  But if Russia does somehow pull this off rather well then it is going to transform the world.  Previously, the idea of cutting a developed county off from the West in finance and technology was just a bunch of hypotheticals.  And the same for economic response.  This will show hard data since the US, Canada, and EU went all out.  You can bet China will be watching carefully.

Well, the main reason why it will work is because Russia already has experience of near self isolation during ussr era, and fact China will buy anything from anyone. So China is kind of that western replacement. If this was the 90's, then Russia would have been screwed.

What makes me mad is this niabullina liberal allowed ruble to free float back in 2014

Why is the ruble free float? At very least tie it to damn gold, or peg it to holdings of other currencies besides Euro and Dollar

This is where the leadership has failed tremendously , how is it you say I am taking a decision I should have done long ago

But you did not think in economic terms? Well I am glad western partners have kicked our asses in the central bank

Now restructuring is a must, and there is nothing can be argued against it

Glazyev and the soviet left wing economic advisors are the saving grace of Russia today

They need to run the economy, and they're not so old fashioned , Glazyev increasingly speaks of the digital ruble

The purpose of floating the ruble is for Russia not to waste tens of billions of dollars defending it from speculative attack.
It was one of the best things to come out of the 2014 events. It nullified the speculator attack on the ruble and the oil
price drop engineered by NATzO.

NATzO militarized speculators can only do one thing: push the ruble lower. This has the total opposite effect of what they
want. It makes Russian exports more competitive and brings in more rubles for them. Since Russia is not a banana republic
those rubles are real and not inflated vouchers. The transient inflation shock in 2014/2015 last all of six months from a
50% ruble forex drop. So even if the ruble dropped by 75% it would still have not destabilized the Russian economy as
it does not depend on imports. We will not see the ruble forex slide to 180 per dollar. It will stay under 100 per dollar.
This is not even a 25% drop.

It is still early days to call anything. One thing that is sure, is that Russia didn't expect so harsh sanctions from EU, especially on RCB.
Let's see where will ruble find a footing first and what steps ministry of finance will take. Capital controls will take some time to start working.
Right now, word is that EU is minimizing buying of anything that RU sells, probably, to put more pressure on the government.
That can not take place much longer, since oil and other commodities will continue its run higher.
One important piece of a puzzle will be China and their behavior. Will they back up Russia or use opportunity to profit on a trade w them.
IMO, truth will be somewhere in the middle, as usual.

GarryB wrote:Russia is going to have to up its game and fill in all the gaps it let the west fill all these years.

I suspect what will annoy most Russians the most is McDonalds and other diabetes franchises will likely be closed down, which will cost them billions.

I am sure if enough franchise owners got together they could use the existing equipment and material, they likely already source the food locally for their products... just Russianise it and continue operations under a different name...

When the US was pissed at France they changed from calling hot chips French Fries to freedom fries or some such crap.

Perhaps they could first of all clean up the menu and make it more Russian and actually healthy or less unhealthy.

They can make their own products and sell them and create a franchise of their own... they could mix the franchises... merge Mcds and KFC and sell both new menus in each.... there is probably a large amount of local chicken farms and beef farms that were created to supply these franchises with raw material so just closing them down would be damaging, so keep them open... new management... new menu... new concept that appeals to Russians.

Buying US computer chips was easy and likely cheap, but China is the home of counterfeit products... the factories making these American chips probably runs one shift a day for 8 hours a day.... the manager could put on two more shifts and produce chips the other 16 hours a day and stamp them with a different label and sell them to Russia or anyone else for that matter.

Hell... they could just take standard production and mark 20% as being faulty and sell those to Russian companies instead of destroying them.

Russia needs to develop computer producing companies and get their own hardware into production... now there is no cheap competition from the west... it will start out expensive but the required volumes and LACK OF CHEAP WESTERN COMPETITION means it is a very good investment with good future potential.

Production and design technology level in Russia is as good as anywhere else and many of their costs are lower.

You literally can't produce chips without a few raw materials and gases, some of them can just be provided by Russia (at least in large scale). Just don't ask me to detail because I don't have the data now.

I know members here no next to nothing about American football however these two former football coaches still think Russia is a socialist country.


https://www.audacy.com/sports/ncaa-football/charlie-weis-roasted-by-for-ignorant-take-on-russia-ukraine






Sen. Tommy Tuberville says Russia is still a 'communist country' and is invading Ukraine because 'they need more farmland'


https://www.businessinsider.com/tommy-tuberville-communist-russia-invading-ukraine-farmland-comments-2022-2

While we appreciate the pointing out of the anti Russian hysteria, this is still an economic thread.