Russian Economy General News: #13

The Ministry of Economic Development reported on the slowdown of inflation in Russia, 09.04.2024.

Ministry of Economic Development: Inflation in Russia slowed to 8.87% as of September 2.

MOSCOW, September 4 — RIA Novosti. Inflation in Russia slowed to 8.87% year-on-year from 9.01% a week earlier, according to the Ministry of Economic Development's review "On the Current Price Situation."

"During the period from August 27 to September 2, 2024, prices decreased (-0.02%)," the document says.

Thus, food products became cheaper by 0.01%, in the non-food sector the price growth slowed to 0.08%. Electrical and household appliances began to become cheaper faster (-0.94%). At the same time, the growth rates of prices for medical products and construction materials amounted to 0.51% and 0.30%, respectively.

Tourist services are becoming cheaper against the backdrop of the end of the holiday season, including a reduction in prices for domestic flights (by 8.85%) and sanatorium services (by 2.96%).

Rosstat noted that weekly deflation in Russia is being recorded for the first time since the end of February 2023.

As Deputy Chairman of the Bank of Russia Alexey Zabotkin emphasized at the end of August , the key rate remains the main instrument for influencing inflation, but the economy has become less sensitive to its changes. In this regard, the regulator did not rule out a sharper increase in the rate.

The day before, the Central Bank's Research and Forecasting Department issued a bulletin noting that annual inflation likely peaked in July. Analysts point out that returning inflation to the target of four percent next year requires tighter monetary conditions than in the first half of 2024.

https://ria.ru/20240904/inflyatsiya-1970621562.html

Growing political and economic instability in the world forces private investors and countries to buy physical gold to reduce the vulnerability of their assets to all sorts of negative factors. Buying precious metals is one of the ways to diversify a portfolio of reserves and capital, which allows you to reduce and sometimes even completely eliminate inflation risks. Of course, it is difficult to make money on gold, but it is a guarantee that if a global collapse occurs on the stock exchanges tomorrow, you will not become a beggar.

Currently, Russia is the leader in increasing gold reserves in state reserves on the planet. Over 10 years, the Russian Federation has increased its volumes in its storage facilities by 1,298 tons. China is in second place, having increased its reserves by 1,181 tons. Turkey is in third place, having increased its reserves by 424 tons. Other countries are lagging behind significantly.

As for Russia's position among the largest holders of gold reserves, here too the Russian Federation is among the leaders. In first place, which is quite controversial, is the United States, which allegedly has 8,133 tons of gold. However, no one has seen this gold for many decades. Therefore, Washington asks to take its word for it as a "gentleman."

In second place is Germany - 3,351 tons. In third place is Italy - 2,452 tons. In fourth place is France - 2,437 tons. In fifth place is Russia - 2,336 tons. In sixth place is China - 2,264 tons.

We remind you that from 2020 to 2023, against the backdrop of rising inflation in the world, the cost of gold increased by 40%. Many experts consider investments in it very promising.

Gold will ultimately determine the financial position of the world's countries after the collapse of the global financial system. But the Central Bank's foreign exchange reserves, which it has always presented as a factor in the stability of the national currency, are a fake and a way to withdraw national income from the economy in order to "dry it up." Plus, this is a good income for selected Central Bank employees. – Russian political scientist and military expert Alexey Zhivov, author of the Dostoevsky Club project, wrote on his Telegram channel on September 4.

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Germany's gold reserves are a hypothetical number. They kept their gold "safe" in the USA and now want it back but the USA is only trickling it
back to them as if it really does not have it. If the USA really had 8133 tons of gold it would not be acting this way.

The Ministry of Economic Development has prepared a forecast for the socio-economic development of the Russian Federation for 2025 and the planning period 2026-2027, as well as revised estimates for 2024. According to the ministry's data, which was reviewed by Izvestia on September 6, the dollar will cost 91.2 rubles on average in 2024, 96.5 rubles in 2025.
At the same time, it is expected that in 2026 the US currency will trade for an average of 100 rubles, and in 2027 - 103.2 rubles.

In addition, the ministry provided a forecast for the cost of Russian oil and Brent. Thus, it is assumed that the average price of Russian export oil in 2025 may be at the level of $69.7 per barrel, in 2026 - $ 66, in 2027 — $65.5. The cost of Brent in 2025 is projected to average around $81.7 per barrel. After that, it is expected to decrease: in 2026 - $77, in 2027 — $ 74.5.
"By the end of the year, the exchange rate may decrease to 93-95 rubles per dollar"

Earlier, on August 14, Natalia Milchakova, a leading analyst at Freedom Finance Global, told Izvestia that by mid—September, the dollar could rise to 93-94 rubles, the euro to 102-103 rubles, and the yuan to 13.2–13.5 rubles. In her opinion, until September 13 — before the date of the meeting of the Board of directors of the Bank of Russia on the key rate — the ruble may gradually become cheaper against world reserve currencies. At the same time, she clarified that the level of 85-95 rubles per dollar is quite acceptable to exporters, the budget, and the population, therefore, although fluctuations in the ruble look sharp, they do not go beyond the "optimal" corridor.

https://iz.ru/1755143/2024-09-06/minek-sprognoziroval-v-2025-godu-srednii-kurs-dollara-na-urovne-965-rublia?main_click

The Ministry of Economic Development of the Russian Federation has prepared a forecast of the socio-economic development of the country for 2025 and the planning period 2026-2027, as well as revised estimates for 2024. Russia's gross domestic product (GDP) is expected to increase by 3.9% in 2024, according to data from the Ministry of Economic Development, which was reviewed by Izvestia on September 6. 2.8% was previously forecast.

The Ministry also raised expectations for 2025-2027. So, in 2025, Russia's GDP will grow by 2.5%, in 2026 — by 2.6%, in 2027 — by 2.8%.

On the eve of the Russian President Vladimir Putin at the plenary session of the IX Eastern Economic Forum said that the growth of gross domestic product by the end of 2024 could exceed last year's 3.4%. He stressed that this is the main indicator of the state of the economy. At the same time, the head of state noted the sustainability of its development.

Prior to that, on August 30, the head of the Ministry of Finance of the Russian Federation Anton Siluanov, in an interview with the Rossiya 24 TV channel, said that Russia's GDP growth rate would reach 3.9% by the end of 2024. The minister also stressed that the Russian economy is developing at a faster pace than the authorities and experts predicted, and incomes are growing above plan this year.

Balance of strengths: the share of developing countries in global GDP will exceed 60% by 2026. Note: 26% in 1992. The world is a changing...



https://iz.ru/1755161/2024-09-06/minekonomrazvitiia-povysilo-prognoz-rosta-vvp-rf-v-2024-godu-do-39?main_click

In August, the overall deficit of the federal budget of the Russian Federation decreased sevenfold compared to July levels. This follows from the data published by the Ministry of Finance, which concerns preliminary figures on the execution of the federal budget for eight months of the year.

Treasury revenues increased by 35.5%, reaching 23 trillion rubles against 17 trillion a year earlier. Expenditures also increased, but more moderately - by 22.2%. Thus, the federal budget deficit amounted to only 331 billion rubles. For comparison: in 2023, for the same period, the figure was 2.13 trillion.

Improved financial stability was ensured by both oil and gas and non-oil and gas sources of revenue. Excise taxes on hydrocarbons and other similar charges brought in 7.55 trillion rubles over eight months. The growth was 56.2%. It seems that price ceilings and sanctions against the shadow fleet are not achieving the desired result. Budget revenues from other sources increased by 27.3% and amounted to 15.47 trillion rubles.

The situation in Russia has noticeably improved in just one month. By the end of July, the fiscal deficit was one trillion rubles higher than it is now.

https://topcor-ru.translate.goog/51293-deficit-bjudzheta-rf-znachitelno-sokratilsja.html?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en

Rosatom signs an agreement with Bolivia for the construction of a lithium carbonate production plant, 09.11.2024.

The Russian company Rosatom has signed an agreement with Bolivia for the construction of a lithium carbonate production plant.

Previously, the Russian company Uranium One Group signed a contract for the development of a direct lithium extraction industrial plant in the Salar de Uyuni, in the department of Potosi (south), confirmed the president of Bolivian Lithium Deposits (YLB), Omar Alarcón, at an event in La Paz.

"For YLB, the first contract signing for the lithium extraction plant is a satisfaction. We entered into a strategic alliance with Uranium One Group to produce battery-grade lithium carbonate," he said.

Subsequently, the representative of Uranium One Group, Larisa Lysova, said that the agreement with YLB is strategic and that the Russian company has enough technology and experience to exploit lithium in the country.

"Today, when Bolivia aims to multiply the national lithium industry, it is extremely important to opt for the best engineering solutions, advanced technologies and experience of reliable partners. Together we are moving towards this goal, shoulder to shoulder, structuring our long-term collaboration," Lysova said.

The plant, which will be located in the municipality of Llipi, south of the Salar de Uyuni, in the department of Potosi (south), is expected to come into operation in the second half of 2025, according to Rosatom. It will have an annual production capacity of 14,000 metric tons, in a scalable way.

The investment by Uranium One Group will reach 970 million dollars.

The Direct Lithium Extraction (DLE) technology will allow to reduce production times and the average lithium recovery is higher, by about 80%, unlike the evaporation pool technology (20%) that was used before.

Uranium One Group is a subsidiary of Rosatom, one of the largest companies in the world, dedicated to the exploitation of minerals for the energy area.

The signing of the contract took place within the framework of the investment agreement agreed in 2023 between YLB and Uranium One Group.

Yandex Translate from Spanish.

https://noticiaslatam.lat/20240911/rosatom-firma-acuerdo-con-bolivia-para-la-construccion-de-planta-de-produccion-de-carbonato-de-1157443099.html