Economy of the Russian Federation

[asianobserve]

Re: Russia plans new measures to stabilise the rouble

So, @asianobserve, what have to say about what was planned for Russia?

It was a happenstance.

As of now these are mere theories, as far as economics is concerned the plunge in oil prices is justified... we'll look at this angle again in 10 years.

 

[Canadian Bacon]

Re: Russia plans new measures to stabilise the rouble

India doesn't need Russia anymore. India has become it's own Russia.

 

[Ray]

Re: Russia plans new measures to stabilise the rouble

As of now these are mere theories, as far as economics is concerned the plunge in oil prices is justified... we'll look at this angle again in 10 years.

In 10 Years the world would have changed.

There may not even be the Russia, China or any country in dimensions that we see today.

Who would have thought that Crimea would become a part of Russia?

 

[asianobserve]

Re: Russia plans new measures to stabilise the rouble

In 10 Years the world would have changed.

There may not even be the Russia, China or any country in dimensions that we see today.

Who would have thought that Crimea would become a part of Russia?

Hopefully, in ten years secret White House memo on covert ops have already been declassified or their info leaked. But we may have to wait longer.

 

[Hari Sud]

Re: Russia plans new measures to stabilise the rouble

Russia will recover.

Brazil, Argentina , Mexico, Greece, Poland, etc. all recovered. So will Russia. A recovered Russia will be a greater challenge to the West in Europe than it is now. US cannot pipe all the gas to Europe from US. It has to come from Russia or Russian controlled pipelines. Hence all that fancy talk of ruining Russia with sanctions is humbug.

How long oil prices stay low? Not for long. Soon the Arabs will complain and begin retaliating economically by withdrawing cash from US and European banks, stop importing Western product and services and losses in the west would be greater than in Russia.

Hence it is prudent for US to dump its ambitions in Ukraine and get down to business of leading life more peacefully. A new Cold War is sure thing to be detrimental to western interests.

 

[prohumanity]

Re: Russia plans new measures to stabilise the rouble

India doesn't need Russia anymore. India has become it's own Russia.

This is the super opportunistic western mindset. ( If I need somebody..I lick the b*utt..Now..I don't need the same person..I discard him/her quickly ) This is what I dislike about you westerners...you don't believe in loyalty, true friendship and are too engrossed in materialistic thinking...that's why in spite of having immense amount of wealth...westerners are suffering from insomnia, drug addiction, distrust of their own families, over 50% divorce rate, domestic violence and school shootings and so many other social problems. This mindset..I, ME and MYSELF and it's all about material possesions have caused this societal degradation of west .
Indian culture believes that someone who is friend needs to be supported and helped in his/her bad times. There is a deeper meaning of friendship ..not just what money I can gain from him/her. No outside power will cause collapse of West but this pathological greed, selfishness and extreme devotion to materialism...devoid of basic human values and principles. So, when PM Modi says Russia has been a good friend and India and Russia will remain good friends forever...he is behaving according to Ancient Indian Civilizational values. That's hard for western mind to understand as western mind is obsessed with "So..what's there in it for me" attitude.
Let me make it clear...I think..Nations are not enemies ...true enemy is only one...and that is terrorism.

 

[jouni]

Re: Russia plans new measures to stabilise the rouble

All is not bad. I just booked 4 days in St.Petersburg in a luxury hotel at a Finnish youth hostel price. Thank you Vladimir and Merry Christmas.

 

[jouni]

Re: Russia plans new measures to stabilise the rouble

This is the super opportunistic western mindset. ( If I need somebody..I lick the b*utt..Now..I don't need the same person..I discard him/her quickly ) This is what I dislike about you westerners...you don't believe in loyalty, true friendship and are too engrossed in materialistic thinking...that's why in spite of having immense amount of wealth...westerners are suffering from insomnia, drug addiction, distrust of their own families, over 50% divorce rate, domestic violence and school shootings and so many other social problems. This mindset..I, ME and MYSELF and it's all about material possesions have caused this societal degradation of west .
Indian culture believes that someone who is friend needs to be supported and helped in his/her bad times. There is a deeper meaning of friendship ..not just what money I can gain from him/her. No outside power will cause collapse of West but this pathological greed, selfishness and extreme devotion to materialism...devoid of basic human values and principles. So, when PM Modi says Russia has been a good friend and India and Russia will remain good friends forever...he is behaving according to Ancient Indian Civilizational values. That's hard for western mind to understand as western mind is obsessed with "So..what's there in it for me" attitude.
Let me make it clear...I think..Nations are not enemies ...true enemy is only one...and that is terrorism.

I believe in friendship. Putin just gave Finns the best Christmas present ever. Finnish people have wasted no time in benefiting from the cheaper ruble. Border stations have even witnessed queues as Finns have rushed to Russia to shop.

 

[Ray]

Re: Russia plans new measures to stabilise the rouble

As of now these are mere theories, as far as economics is concerned the plunge in oil prices is justified... we'll look at this angle again in 10 years.

These were also theories till they happened

Covert United States foreign regime change actions - Wikipedia, the free encyclopedia

 

[Canadian Bacon]

Re: Russia plans new measures to stabilise the rouble

This is the super opportunistic western mindset. ( If I need somebody..I lick the b*utt..Now..I don't need the same person..I discard him/her quickly ) This is what I dislike about you westerners...you don't believe in loyalty, true friendship and are too engrossed in materialistic thinking...that's why in spite of having immense amount of wealth...westerners are suffering from insomnia, drug addiction, distrust of their own families, over 50% divorce rate, domestic violence and school shootings and so many other social problems. This mindset..I, ME and MYSELF and it's all about material possesions have caused this societal degradation of west .
Indian culture believes that someone who is friend needs to be supported and helped in his/her bad times. There is a deeper meaning of friendship ..not just what money I can gain from him/her. No outside power will cause collapse of West but this pathological greed, selfishness and extreme devotion to materialism...devoid of basic human values and principles. So, when PM Modi says Russia has been a good friend and India and Russia will remain good friends forever...he is behaving according to Ancient Indian Civilizational values. That's hard for western mind to understand as western mind is obsessed with "So..what's there in it for me" attitude.
Let me make it clear...I think..Nations are not enemies ...true enemy is only one...and that is terrorism.

There is no such thing as friends. Thanks for stereotyping and generalizing the entirety of western society.

Pakistanis say the same about their friendship with China. "Our love relationship is deeper than the sea, taller than K-2 and more cuddly and cute than teddy bears" spare me the jingoist nonsense. In this world, there is nothing but national interests and when those allign with another nation you are in business.

Your best butt buddy Russia has been silently letting Pakistanis arm themselves with Russian engines in their JF-17 and now the probably sale of armed gunships. What a great all weather friend.

 

[Canadian Bacon]

Re: Russia plans new measures to stabilise the rouble

Let's see what Russia says if India sells weapons to Ukraine.

 

[pmaitra]

Re: Russia plans new measures to stabilise the rouble

Answered inline.

Okay, even granting the US is acting as imperialistic as Russia, still American sins do not make Russian actions right.

Why ignore the greater and real aggression and focus on a hypothetical threat?

I'm not reading any material from the US State Department if that is what you mean. But if you only have an open mind you will easily see that what Russia is insisting - control of Ukraine's foreign policy - is a throw-away to imperial times.

Keep it real.


...illegally by Russia.

Right to Self Determination is legal by UN Charter. So, you are wrong.


That's a recipe for global anarchy....

Again, Right to Self Determination is legal by US Charter. So, you are wrong.


Just look at what is happening to Russia now...


Increase in agricultural production, and also increase in defense industrial output. Modest increase, but increase nonetheless.

Just like how Germans loved Hitler in the lead up to WW2... They genuinely adored him.

George Washington was also genuinely loved by Americans.


Because you are not allowed inside Putin's guilded mansions... Bonga-bonga would be nice for you. You need to chill out.

Are you inebriate? We are not discussing Italy here.


He needs some semblance of free press in Russia.

What you actually mean is press that peddles the western propaganda and concoctions.

 

[prohumanity]

Re: Russia plans new measures to stabilise the rouble

Canadian Bacon..you are brainwashed with western propaganda machine..and you seems to be the same "divide and conquer" mindset. Russia offered Helicopters to Pakistan to deal with terrorists. But it the west who has been using Pakistan to fight their battles for last 6 decades. The whole world knows that Paki military is hired by west to do the dirty deeds so west can keep a human face. India is not worried about Pakistan getting some little helicopters from Russia. India is strong enough to defend itself from crazy warmongers. Yes, historically, India made a mistake and did not prepare for this type of world where "might is right" but now, its catching up. Your western arrogance and narcissistic attitude will not last long and you will become humble when you see that intimidating and bullying does not work. Just wait and watch ,Canadian..start learning mutual respect and peaceful coexistence...you will need it.

 

[Meriv90]

Re: Russia plans new measures to stabilise the rouble

They are going for the ISI, they just skipped the stept where you import macchinary and tech before devaluating, if they will try in future they will just get the product banned for export. I don't know how they will solve this situation.

ISI is something that you plan way ahead, on the positive side Russia as Brasil has enought population to support its industry and it won't end like other underpoppulated countries in SA that used the same method.

someone mentioned capital control, that is useless has it has happened in Argentina in 2001, the wealthy always know when and how to export money, as happened before the corralito, no rich person has lost money in it. (I lived in Argentina)

The only winning party here is Saudi Arabia:
1-it is killing off Iran's budget that needs the barrel at 130 for break even point
2-same with Russia, both for Siria support
3- it is hitting hard (but not stopping) US shale gas.

The US is not saying anything to them because the benefits overcome the costs.

And for what regards me it is good, probably SA gets rid of Maduro. That is another plus point for the US.

Low oil prices is good for the european industry since you get extra cash to invest, just sad that we don't have more stocking sites. A crisis is a correcting process, so when russia will come out of it it will be a better market and hoping a bit more democratic.

On the bad side with cheap fuel nobody cares anymore at renewables (see US truck market)

 

[sgarg]

Re: Russia plans new measures to stabilise the rouble

The Russian gdp will recover after a sharp dip. There are many factors which are positive for Russia.

Europe will see no benefit from low oil prices.

The renewables will continue as the cost of renewables has come down wrt coal based power plants.

 

[Singh]

Re: Russia plans new measures to stabilise the rouble

@sgarg saar Putin ought to hire you

 

[sgarg]

Re: Russia plans new measures to stabilise the rouble

@sgarg saar Putin ought to hire you

I dont need a job. Happy with my current job.

I dont drive a Chinese car like Akim.

 

[jouni]

Re: Russia plans new measures to stabilise the rouble

I dont need a job. Happy with my current job.

I dont drive a Chinese car like Akim.

He seems to bother you though. Maybe he has something no money can buy.

 

[sgarg]

Re: Russia plans new measures to stabilise the rouble

He seems to bother you though. Maybe he has something no money can buy.

NO. I exposed him and his BS.

He continues with his BS though as a shameless person would.

Poroshenko and his ilk are shameless greedy @sslickers who have put Ukraine on a course to doom.

 

[asianobserve]

Re: Russia plans new measures to stabilise the rouble

The Worst Is Yet To Come For Russia's Economy

Moscow (AFP) - Deep recession, skyrocketing prices and a fragile banking system: although the ruble seems to have stabilised after its abysmal drop this past week, Russia still faces the heavy consequences of the turbulence.

For most Russians, the week ended with relief: after trading at unbelievable levels of 80 to the dollar and 100 to the euro, the ruble appears to have stabilised at around 60 and 73, respectively.

A double whammy of Western sanctions over Ukraine and plunging oil prices finally caught up with the country that depends on energy exports for half of government revenue, and the authorities came out of their apparent stupor only as the ruble's plunge in value had already gained momentum.

After the ruble fell by nearly 10 percent on Monday, the central bank moved beyond its limited currency market interventions and in the middle of the night hiked the key interest rate by a tremendous 6.5 percentage points to 17 percent.

But that failed to stop the panic, with the ruble dropping by 20 percent on Tuesday -- bank websites crashed as too many users tried to connect, and crowds packed Ikea until 2 am to get a hold of goods before announced price increases took effect.

'Confidence shaken'

President Vladimir Putin tried to put a brave face on the crisis at his annual year-end press conference, saying that recovery is "inevitable", although he acknowledged it could take up to two years to materialise.

He did not announce any economic reforms or specific solutions to the crisis.

"The trend of the economy in the next six months is certainly going to be much worse" after this past week, said Chris Weafer, an analyst with Macro Advisory consultancy.

"Confidence is shaken -- in the central bank, in the currency, in the direction of the economy," he told AFP.

"Consumption and investment are going to take a hit because of higher (interest) rates, inflation will be higher because of the weaker currency... the banks are going to turn to the government and shelves will be empty after the New Year."

In a sign of the challenges ahead, several suppliers have halted deliveries in a bid to raise prices.

Some stores decided to close their shutters -- Apple stopped sales via its Russian online store, while Ikea suspended sales of kitchens and home appliances and warned that prices on the website "may differ from prices in stores".

Opel and Chevrolet are no longer delivering to dealerships.

Russian media said that stores selling imported alcohol or clothing including Zara, Topshop and Calvin Klein are also trying to avoid selling at a loss while observers predict that many Western brands will soon disappear from Russia.

That trend has begun and inflation -- already close to ten percent -- threatens to reach 15 percent in the coming months.

This will hit the purchasing power of Russians, whose real incomes already declined in the first 11 months of the year compared with 2013.

With the ruble having now lost nearly 50 percent of its value against the dollar in the past year imported food and consumer goods are quickly becoming luxuries.

Even the central bank estimates the economy could suffer a sharp contraction of nearly 5 percent next year if oil prices stay at current levels.

'Crisis spreading'

"Events have moved quickly and there are now growing signs that the currency crisis is spreading to the banking sector," wrote emerging markets economist at Capital Economics William Jackson.

Russia's financial sector is particularly vulnerable, as its state-controlled banking behemoths and a multitude of smaller institutions have been unable to raise funds in the West due to sanctions over Russia's annexing Crimea and support for separatists in Ukraine.

The central bank announced measures Tuesday aimed at ensuring their survival by improving access to liquidity and easing accounting standards.

On Friday, Russian lawmakers approved a bill on the recapitalisation of banks worth one trillion rubles ($16 billion, 13 billion euros). The finance ministry is also hoping to increase capital in the banking sector by 13 percent and the volume of loans issued by 15 percent.

For many Russians, the downward spiral of the ruble brought back memories of the crisis in 1998, when Russia defaulted on its debt.

"People are behaving like it's 1998 but there is no reason for it: Russia was a bankrupt country then and now it's actually financially in a pretty good shape," Weafer said.

High oil prices over the past decade have allowed Moscow to pile up substantial hard currency reserves. Even after having spent heavily to support the ruble, the central bank's reserves still stand at around $400 billion.

Public debt is just over 10 percent of GDP. The budget remains balanced and the government has a big rainy day fund to draw upon to sustain social spending.

Read more: The Worst Is Yet To Come For Russia's Economy - Business Insider