The World Bank forecast that the Russian economy will grow by 5.5 percent in 2010 according to RTTNews.
As the Russian economy contracted as much as 7.9 percent in 2009, the positive economic outlook is welcome by the Russian government and people.
The World Bank also expects Russian inflation for the year at 7 to 8 percent with slightly lower growth in the Russian economy of 3.5 percent in 2011.
→ No CommentsTags: Russia Economy·russian economy·russian inflation·Russian-Government·world bank
The Russian economy saw industrial production rise 1.9 percent in February according to Bloomberg.
The positive Russian economic news was led by an increase demand of rail freight containers and steel pipes.
Note that industrial output in the Russian economy has contracted each month for the last year up until February 2010.
→ No CommentsTags: russian economy·russian industrial production
Car sales in the Russia economy fell 32 percent from a year ago in February according to the Association of European Businesses as reported by Reuters.
While the decline was less sharp than the decline of car sales for the January period, the poor Russian economic news is another sign that the Russian economy continues to struggle in the wake of the global economic crisis.
The expectation was for the Russian economy to take over Germany as Europe’s largest car market but that is not going to happen anytime soon. The Russian government is planning a stimulus scheme starting in March, similar to the US cash for clunkers, in order to spur cars sales. [Read more →]
→ No CommentsTags: global economic crisis·Russia Economy·russian cars sales·russian economy·Russian-Government
Russia’s PMI index printed a reading of 50.2 in February signaling that manufacturing in the Russian economy is still expanding according to RT.
Despite a reading of above 50, the Russia PMI for February is down from January’s reading of 50.8 which is of concern considering the fragility of the Russia economy.
Nonetheless, February’s reading marks the first consecutive reading above 50 since July of 2007. [Read more →]
→ No CommentsTags: Russia Economy·russia purchasing managers index·russian economy·russian pmi
Industrial output in the Russian economy rose 7.8 percent in January according to the Federal Statistics Service and AP.
The positive Russian economic news marks a high in industrial production since the start of the global recession.
While other BRIC economics have weathered the impact of the global economic downturn fairly well, the Russian economy has struggled badly with Russian GDP (Gross Domestic Product) down 7.9 percent in 2009. At this point, any positive economic news is welcome for the Russian government and Russian economy. [Read more →]
→ No CommentsTags: global_recession·gross_domestic_product·Russia Economy·russian_economy·russian_gdp·russian_government
Aton, a Moscow-based brokerage firm, expects the Russian economy to expand 6.4 percent in 2010 as opposed to the Russian government expectation of 5.8 percent according to Bloomberg.
The key driver to the positive expectation for Russian economic growth by the firm is high oil prices at an estimated $79 a barrel in 2010 which is Russia biggest export.
Growth in the Russian economy slide by 7.9 percent in 2009. [Read more →]
→ No CommentsTags: russian economic growth·russian economy·Russian-Government
Gross domestic product (GDP) in the Russian economy declined by 7.9 percent in 2009 according to MarketWatch.
The key driver of the drop in the Russian economy was a sharp fall in oil prices as the BRIC nation relies heavily on commodities to grow.
The decline was better than economist expected at 8.5 percent but the Russian economy grew by 5.6 percent in 2008 and all of its BRIC peers grew in 2009. [Read more →]
→ No CommentsTags: Russia Economy·russian_economy·russian_gdp·russian_gross_domestic_product
The World Bank announced it expects the Russian economy to grow 3.2 percent in 2010 according to Xinhua.
The forecast for GDP growth in the Russian economy was published in the World Bank’s Global Economic Prospects 2010 and site a rise in oil prices as a drive to Russian economic growth.
Estimates show the Russian economy may have declined by as much as 8.7 percent in 2009. [Read more →]
→ No CommentsTags: gdp·Russia Economy·russian_economy·russia_gdp_growth·world_bank
Russia’s head of the statistics service announced that 20 Percent of GDP in Russian economy is from illegal trade according to Bloomberg.
Otherwise known as the ‘Shadow Economy’, illegal trade of anything for guns to drugs to gardening to tuition is thought to account for $71 billion of the Russian economy.
The unemployment rate in the Russian economy hit a high of 8.1 percent in November of 2009. [Read more →]
→ No CommentsTags: Russia Economy·russian_economy·russia_gdp·russia_shadow_economy
New cars sales in the Russian economy dropped as much as 49 percent as consumer demand slumped in 2009 according to Xinhua.
The negative Russian economic news comes as in 2008 new cars sales hit a record high of 1.46 million units.
Nonetheless, Russian car maker AvtoVAZ plans to increase production output by 50 percent in order to account fro an expected increase in demand for 2010 as the Russian economy climbs out of is worst recession in ten years. [Read more →]
→ No CommentsTags: Russia Economy·russian_car_sales·russian_economy
The Russian government has placed a ban on Russian imports of US Poultry according to FoodSafetyNews.
The Russian trade ban is over the US use of chlorine in poultry production as a anti-microbial treatment.
Russia is the US’s tenth largest agriculture importer and Russian imports of US poultry make up about half of the $1.8 billion in agricultural trade made with the US in 2009. [Read more →]
→ No CommentsTags: agricultural_trade·poultry_production·Russia Trade·russian_government·russian_imports·russian_trade·russian_trade_ban
The International Monetary Fund (IMF) has announced that it expects the Russian economy to expand 3.2 percent in 2010 according to Reuters.
Since the Russian economy came out of recession in Q3 of 2009 it has only grown 0.6 percent and the IMF is still greatly concerned that credit expansion due to bad banks loans could stifle growth in the Russian economy despite its positive growth forecast.
The IMF also cautioned the Russian government and the Russian central bank to refrain from further interest rate cuts until stability in the Russian economy is restored. [Read more →]
→ No CommentsTags: international_monetary_fund_imf·Russia Economy·russian_central_bank·russian_economy·russian_government
New cars sales in the Russian economy fell 46 percent in November according to the Association of European Businesses and Reuters.
The weak Russian economic news will continue to add pressure on the Russian government to act in order to prop the Russian economy with stimulus.
One proposed scheme is similar to the US cash for clunkers stimulus where the Russian government would pay $1,733 to trade in cars older than 10 year in return for buying a new Russian made car. [Read more →]
→ 1 CommentTags: russian cars sales·russian economy·Russian-Government
The Russian government and the Russian Economic Development Ministry estimate that the Russia is running a $100 billion Russian trade surplus according to the Daily News Bulletin.
While specifics were not given, it is projected that despite the expectation that Russian imports will rise more than Russian exports in 2010 the Russian surplus will still remain high and threaten the Russian economy as both large deficits and surplus do cause challenges for economies.
Russian international reserves currently stand at $445 billion. [Read more →]
→ No CommentsTags: Russia Economy·russian_economic_development·russian_economy·russian_exports·russian_government·russian_imports·russian_surplus·russian_trade
Gross domestic product in the Russian economy was down by 8.1 percent in October according to the Russian Economy Ministry and Reuters.
Despite the poor Russian economic news, 8.1 percent is the smallest contraction in the Russian economy in the last eight months.
Key drivers to the improvement point to an increase in real wages and better retail sales. [Read more →]
→ No CommentsTags: russian economy·russian gdp·russian gross domestic product·russian retail sales
The Russian central bank cut its key interest rate by 0.5 percent to 8.75 percent in effort to stimulate the Russian economy according to Bloomberg.
Key drivers to the decision, aside from a faltering Russian economy, are to combat a flood of speculative capital and to stimulate bank lending.
The ruble has appreciated around 27 percent against the dollar since last February as high Russian interest rates continue to attract the carry trade. [Read more →]
→ No CommentsTags: carry trade·ruble·russian central bank·russian economy·russian interest rates
The Russian economy saw industrial output decline by 11.2 percent in October according to RTTNews.
The year on year decline is up from the 9.5 percent decline the Russian economy saw in September.
The Russian economic news could be a signal of a decline in Russian GDP. [Read more →]
French based retailer Carrefour has announced its investment in Russia will end as it plans to pull out of Russia according to Dow Jones.
The move by the firm comes just a month after Carrefour opened its second hypermarket in the Russian economy.
The total amount of the Carrefour Russian investment was not disclosed but rumours suggest that pressure by key share holders to sell off assets in emerging markets is the key driver to the move although the firm stated that it was only pulling out of the Russian market. [Read more →]
→ No CommentsTags: carrefour·russian economy·russian investment
The Russian central bank cut the Russian interest rate by 50 basis points from 10.5 to 10 percent in a continued effort to spur the Russian economy according to Bloomberg.
Although the Russian economy is officially out of recession, many agree that the move by the Russian central bank was critical to keep the Russian economy from slipping considering it slowed by as much as 10.9 percent in the second quarter of 2009.
The expectation is the Russian central bank will continue to cut Russian interest rates for the foreseeable future. [Read more →]
→ No CommentsTags: russian central bank·russian economy·russian interest rates
A Russian investment in Venezuela’s Junin 6 oil reserves has been announced and is estimated at $20 billion according to Bloomberg.
Through the Consorcio Nacional Petrolero SRL, the Russian investment passed Venezuelan President Hugo Chavez’s approval after heads of the Russian government, Vladimir Putin and Dmitry Medvedev, met with the Venezuelan leader in Moscow last week.
The structure of the Russian investment is a joint venture involving five Russian firms including Gazprom, Rosneft Oil and Lukoil with the expectation that the oil block will produce an output of 400 to 450 thousand barrel of crude a day. [Read more →]
→ No CommentsTags: gazprom·junin oil reserves·russian investment·Russian-Government·venezuelan president hugo chavez·vladimir putin
US automaker General Motors has announced it will invest in Russia $250 million in a strategy move to produce cheap cars according to Bernama.
Expectations are that the firm plans to focus it’s new Russian investment on producing the Opel Astra out of its plant in St. Petersburg.
The GM investment in Russia is in conjunction with Canadian Magna. [Read more →]
→ No CommentsTags: Canadian Magna·general motors·gm·invest in russia·russian investment
Payless ShoeSource, owned by US based Collective Brands Inc., plans to invest in Russia by expanding operations in the Russian market in the beginning of 2010 according to the Wall Street Journal.
While the dollar figure of the Russian investment was not disclosed, Collective Brands Inc. plans to partner with franchise partner M.H. Alshaya to built 150 stores with an option to buy.
The investment in Russian adds to the more than 4,500 stores Collective Brands Inc. already has in regions such as the Middle East, South America, the Caribbean and the North America. [Read more →]
→ No CommentsTags: invest_in_russia_collective_brands·payless_shoesource·Russia Investment·russian_investment·russian_market
The Russian economy saw GDP drop by 10.9 percent in the second quarter according to Bloomberg.
Key drivers of the poor Russian economic news are a continued rise in unemployment, a stalled Russian government stimulus plan to counter the impact of the global recession, and a lack of bank lending as well as the crash in commodity prices. [Read more →]
→ No CommentsTags: global_recession·Russia Economy·russian_economy·russian_government
The second largest soft drink producer, PepsiCo Inc., plans to invest in Russia $1 billion according to Bloomberg.
The investment in Russia will go towards the construction of a new bottling plant outside Moscow and a southern Russia snacks plant in Azov.
The Russian investment brings PepsoCo’s total Russian investment to $4 billion. [Read more →]
→ No CommentsTags: pepsico_inc·Russia Investment·russian_investment
Russian Consumer prices rose 0.1 percent bringing inflation in the Russian economy to 7.2 percent according to Russia’s Federal Statistics Service (Rosstat) as reported by Dow Jones.
Expectation by the World Bank and the Organization for Economic Cooperation and Development (OECD) are for the inflation in the Russian economy to reach between 11 percent and 13 percent and 8 percent in 2010 respectively.
The Russian government target rate for Russian inflation is somewhere below 13 percent. [Read more →]
→ No CommentsTags: organization for economic cooperation and development·russian economy·russian inflation·Russian-Government·world bank
The Russian economy contracted as much as 11 percent in May according to recent Russian GDP figures announce by the Russian government’s Deputy Economic Development Minister as reported by Xinhua.
The poor Russian economic news comes as the global financial crisis continues to impact the demand for exports of energy and raw materials, which are Russia biggest drivers to growth.
Expectations by the International Monetary Fund (IMF) point to an overall decline of 6 percent for the Russian economy in 2009 with a possible expansion of 0.5 percent in 2010. [Read more →]
→ No CommentsTags: global financial crisis·international monetary fund imf·russia gdp·russian economy·Russian-Government
The US based social-networking firm, Facebook, has received a Russian investment of $200 million by Digital Sky Technologies according to Bloomberg.
The Russian investment will give Digital Sky Technologies a 1.96 percent stake in Facebook.
Digital Sky Technologies holds investments in other social- networking firms such as Forticom, VKontakte and Mail.ru, which combined have 350 million users. [Read more →]
→ No CommentsTags: digital sky·facebook·russian investment·russian social networking
London based oil producer and refiner, Sibir Energy, is expected to receive a large minority Russian investment stake by Russia’s TNK-BP according to AP.
While the size and details of the Russian investment in Sibir Energy were not disclose, the firm has lost considerable value after it was announced that the company was involved in numerous controversial deals involving the purchase of distressed real estate assets.
TNK-BP is half owned by British Petroleum. [Read more →]
→ No CommentsTags: invest in russia·russian investment·sibir energy·tnk bp
Fitch Ratings cut its debt rating for Russia to the second lowest rating to BBB which will severely impact the Russian economy according to Bloomberg.
The Russian debt rating cut is the first by Fitch in over a decade and is another blow to the Russian economy as the ruble continues to decline in value as result of falling oil prices and capital flight.
Estimates suggest the Russian government has spent as much as $210 billion to prop up its currency and maintain necessary foreign currency reserves. [Read more →]
→ No CommentsTags: ruble·Russia Economy·russian_debt·russian_economy·russian_government
The Russian central bank has announced it will devalue the ruble by 10 percent as the Russian economy continues to melt down in the wake of the global economic slowdown and the decline in commodity prices according to MarketWatch.
The move by the Russian central bank counters its previous gradual devaluation policy as it tries to prop the Russian economy by deterring the outflow of foreign exchange reserves by speculators.
The exchange rate of the ruble is set against a basket of currencies. The 10 percent depreciation sets a new upper limit to 41 rubles against a basket mix of 55 percent US dollars and 45 percent euro. [Read more →]
→ No CommentsTags: global_economic_slowdown·ruble·Russia Economy·russian_central_bank·russian_economy
The Russian economy continues to a take another blow as the Ruble declined to its weakest level in over six years according to Bloomberg.
The Russian economic news comes as the Russian government and central back devalued the Russian currency as it struggles to prop up the Russian economy.
It is estimated that the Russian economy has lost 27 percent of its foreign exchange reserves since August and as much as $200 billion in Russian investment as foreign investors pull their money out of the struggling Russian economy. [Read more →]
→ No CommentsTags: Russia Economy·russian_currency·russian_economy·russian_government·russian_investment
Alcoa, the global aluminium producer based in the US, has announced it will cut 18 percent of its workforce as the Russian economy continues to struggle according to Reuters.
The unemployment news comes as the Russian economy continues to decline in the wake of the global economic slowdown and as oil prices continue to slide.
While the cuts are deep, Alcoa Russia President Andrei Donets indicated the reduction in force affecting the Russian economy will execute gradually over the course of 2009. [Read more →]
→ No CommentsTags: global_economic_slowdown·Russia Economy·russian_economy
The Russian government is considering joining the Organization of Petroleum Exporting Countries (OPEC) according to Bloomberg.
The key driver of the Russian trade move is to join forces with other large producers of oil to reduce oil production in order to prop the price of oil as it continues to slide.
Ideally, the oil producers would like to a see oil price of about $60 to $80 a barrel and a cooperative cut of 2.5 million barrels a day global is needed to hit that target. [Read more →]
→ No CommentsTags: opec·organization_of_petroleum_exporting_countries·Russia Trade·russian_government·russian_trade
The Russian economy saw a record drop to 39.8 in the VTB’s Purchasing Managers’ Index (PMI) according to Bloomberg.
The glooming Russian economic news comes as the global economic crisis and the sharp drop in to the price of oil continue to negatively impact the Russian economy.
With the deterioration of the Russian economy, foreign investors have withdrawn as much as $190 billion from Russia since mid 2008. [Read more →]
→ No CommentsTags: global_economic_crisis·purchasing_managers_index·Russia Economy·russian_economy
Standard & Poor’s Ratings Services (S&P) lowered Russia’s investment credit rating from BBB+/A-2 to BBB/A-3 according to Bloomberg.
This is the first Russian investment downgrade since January 1999.
Further downgrades are expected as the Russian economy continues to melt down. [Read more →]
The Russian government has attempted to prop the ruble and protect the Russian economy by spending $4 billion according to Reuters.
The Russian economic news comes as the ruble and oil prices continue to slide to lower levels in the wake of the global economic crisis and the bursting of the commodity bubble.
With Russian government dept increasing dramatically over the last few days it is highly likely that the Russian government will default and mirror the default that afflicted the Russian economy in 1998. [Read more →]
→ No CommentsTags: global_economic_crisis·Russia Economy·russian_economy·russian_government
The Russian central bank raised interest rates to 12 percent in an effort to prop the ruble and protect the Russian economy according to the Telegraph.
The news comes as the Russian government continues to spend reserve money on a rabidly devaluing ruble.
Key drivers of the currency collapse are a faltering Russian economy due to declining oil prices and an over valued stock market.
Estimates put the ruble at a 30 percent decline in the next few days. [Read more →]
→ No CommentsTags: currency_collapse·Russia Economy·russian_central_bank·russian_economy·russian_government
General Motors (GM) has just opened a new flexible assembly plant as part of a recent Russia investment according CanadianDriver Communications Inc.
The Russian investment will generate an additional 70,000 units of capacity and continues to position GM as the top non-domestic automobile manufacturer in Russia.
The Russian investment news comes as the ruble and GM’s stock continue to crumble. [Read more →]
→ No CommentsTags: general_motors·gm·Russia Investment·russian_investment
The Russian government has blocked Google’s acquisition of ZAO Begun according to AP.
The Russian investment would have delivered the assets of ad service ZAO Begun to Google from Rambler Media Ltd at an estimated $140 million.
The Federal Anti-Monopoly Service did not specifically state a reason for the rejection but it is suspected that tensions between the US and Russian government may have come into play. [Read more →]
→ No CommentsTags: google·Rambler_Media·Russia Investment·russian_government·russian_investment·ZAO_Begun
Dmitry Medvedev and the Russian government have injected over $19 billion into the financial markets in order to prompt the Russian economy according to the Telegraph.
The news comes as the Russian stock market was suspended for a third day in a row as the global financial crisis and lower oil continues to test the Russian economy.
While many see this week’s event as a repeat of the collapse of the Russian economy in 1998, it is likely that history will not repeat itself as Russia currently holds the worlds third largest currency reserve. [Read more →]
→ No CommentsTags: dmitry_medvedev·Russia Economy·russian_economy·russian_government·russian_stock_market
The Russian economy continues to feel pain as the Micex Index plunged a record 17 percent according to Bloomberg.
The significant drop caused a halt in trading by the RTS Exchange for almost an hour as panic over liquidity and concerns over AIG on Wall Street.
While the Russian economy has capitalize recently on higher oil and emerging growth the recent moves on the Micex are creating deep concerns over the stability of the Russian economy. [Read more →]
Russia government’s Prime Minister Vladimir Putin has announced a calling for Russia to regain its influence over Cuba to that stood during the cold war according to AP.
The statement by Putin and the Russian government is likely in retaliation to the US announcement to development missile-defense in the Czech Republic and Poland.
While likely just heavy Russian government rhetoric, the intent is still chilling should the US move more protectionists as its economy continues to drag. [Read more →]
→ 1 CommentTags: Russia Government·russian_government·russia_government·vladimir_putin
Russian trade of gas exports were up 17.7 percent year over year according to Reuters UK.
The Russia trade news is predominately based on Gazprom’s gas exports of 109.6 billion cubic meters in the first half of 2008.
Gazprom is a Russian gas monopoly and is the world’s largest gas company.
→ No CommentsTags: gazprom·Russia Trade·russian_trade·russia_trade
Vimpelcom, Russia’s second largest cell phone operator has announced a Russian investment in both Vietnam and Cambodia according to Reuters UK.
The Vimpelcom Russian investment involves a 40 percent stake worth $267 million with Vietnam state run Global Telecommunications Corporation (GTEL) and a $28 million purchase of Cambodia’s Sotelco.
For more on each Vimpelcom Russian investment see: Vimpelcom to Invest in Cambodia and Vimpelcom to Invest in Vietnam [Read more →]
→ No CommentsTags: gtel·Russia Investment·russian_investment·sotelco·vimpelcom
The Russia economy slowed from 8.4 percent growth to 7.7 percent in May according to Reuters.
The concern and debate by the Russian government is that the Russian economy is possibly overheated will head into an abrupt slowdown
Nonetheless, the slower grow number is in line with the Russian government’s Economy Ministry which expects Russia GDP to grow 7.6 percent in 2008. [Read more →]
→ No CommentsTags: Russia Economy·russian_economy·russian_government·russia_economy·russia_gdp
Dmitry Medvedev, the new Russian president, has blamed the US for the current global economic slowdown according to the Telegraph.
In a recent speech Dmitry Medvedev went on to say that the US’s “economic egoism” and protectionism were key drivers of the global economic slowdown and that the World Bank and the International Monetary Fund have failed to end the world’s economic problems.
The new Russian president even went on to suggest that the Russian government should be in charge of redirecting global economic policy.
→ No CommentsTags: dmitry_medvedev·global_economic_slowdown·international_monetary_fund·protectionism·Russia Economy·Russian-Government·russian_government
The IMF estimates the Russian economy could experience inflation as much as 14 percent according to Forbes.
Key drivers of the inflation rise estimation by head of the International Monetary Fund include the usual suspects such as rising food and gasoline cost.
Prime Minister Vladimir Putin and the Russian government have vowed to return Russian inflation to [Read more →]
→ No CommentsTags: imf·international_monetary_fund·Russia Economy·russian_economy·russian_government·russian_inflation
PPG Industries, US based global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass has announced it will invest in Russia according Earthtimes.
While the amount of the Russian investment was not disclosed, [Read more →]
→ No CommentsTags: invest_in_russia·ppg_industries·Russia Investment·russian_foreign_direct_investment·russian_investment
Russia’s Severstal has made a bid for Esmark Inc, a rival US steel company, according to Reuters.
The Russian investment bid is backed by the United Steelworkers union (USW) and is [Read more →]
→ No CommentsTags: esmark_inc·Russia Investment·russian_investment·severstal·united_steelworkers_union
Peugeot-Citroen, the French automaker, and Japan’s Mitsubishi Motors have announced plan to invest in Russia through a joint company according to AFP.
The $550 million Russian investment by the two firms will take the Kaluga assembly line and produce and estimated 160,000 vehicles per year which equates to almost 6 percent of the Russian car market.
Peugeot will control 70 percent and Mitsubishi will control [Read more →]
→ No CommentsTags: mitsubishi_motors·peugeot_citroen·Russia Investment·russian_investment
UK’s global car dealership, Inchcape, announced it will invest in Russia according to the Telegraph.
The move by Inchcape to invest in Russia involves a $450 million purchase of a 75 percent stake in [Read more →]
→ No CommentsTags: inchcape·investment_in_Russia·musa·Russia Investment·russian_investment
Aeroflot, Russia’s national airline has renewed its interest in acquiring Alitalia, Italy’s flag carrier Alitalia, according to AHN.
The possible Russian investment comes as Air France-KLM reported their interest in Alitalia has concluded and as Russian President Vladimir Putin announced that he wanted to meet with Silvio Berlusconi, Italian prime minister-elect to discuss the deal.
The move by Putin and Aeroflot comes [Read more →]
→ No CommentsTags: aeroflot·alitalia·Russia Investment·silvio_berlusconi·vladimir_putin
Equifax Inc., leading US based provider of credit information, has announced it will invest in Russia according to the Atlanta Business Journal.
The Russian investment involves a 28 percent equity stake in Global Payments Credit Services LLC (GPCS) plus an option to buy up to 50 percent of the company.
The move by Equifax to invest in Russia comes as it continues on its global expansion strategy which [Read more →]
→ No CommentsTags: equifax·Investment-in-Russia·Russia Investment·russian_foreign_direct_investment·russian_investment
Wal-Mart Stores Inc, the world’s largest retailer, is one step closer to an investment in Russia with the appointment of Stephan Fanderl as president of Wal-Mart’s Emerging Markets-East according to AP.
With a key European executive Fanderl in place, Wal-Mart is now poised to enter the $140 billion Russian food sales market as it looks to invest in Russia through a [Read more →]
→ 2 CommentsTags: Investment-in-Russia·Russia Investment·russian_foreign_direct_investment·russian_investment·wal_mart
The Russian government has announced plans to cut taxes for oil companies according to Bloomberg.
The move by the Russian government is designed to help Russian oil companies overcome the stagnation they are experiencing after a decade of growth.
Oil production in Russia has declined 1.3 percent in March and comes [Read more →]
→ No CommentsTags: oil_prices·Russia Economy·russian_economy·russian_government
The Russian government has announced that it will restrict foreign investment in Russia according to MWC News.
The new limits on foreign investment in Russia are focused on key sectors such as energy, aerospace, mining and media, etc.
The move by the Russian government now requires foreign investors to received [Read more →]
→ No CommentsTags: foriegn_direct_investment_in_russia·Investment-in-Russia·Russia Investment·russian_government·russian_investment
Deere & Company, a.k.a. John Deere, the world’s leading provider of advanced products and services for agriculture and forestry, has announce that it will significantly invest in Russia according to Fox Business.
The Deere investment in Russia is estimated at $80 million in order to build a central operations center outside of Moscow.
A spokes person for Deere indicated that not only is the Russian investment good for the Russian economy but also for the other Commonwealth of Independent States (CIS) markets which include [Read more →]
→ No CommentsTags: deere·Investment-in-Russia·Russia Investment·russian_investment
The Russian government has announced that it will raise export duties on Timber exports according to Reuters.
The move by the Russian government has hit a nerve with the European Union and could potentially risk Russia’s entry into the World Trade Organization (WTO).
The plan, driven by Vladimir Putin, sets Russia trade duties on timber to 25 percent up from 20 percent and begins on April 1. Furthermore, the government of Russia plans to [Read more →]
→ No CommentsTags: government_of_russia·Russia Trade·russian_government·russian_trade·russia_trade·timber_exports·world_trade_organization
Russian monetary authorities have announced they, in conjunction with Russian banks, will inject additional loans into the Russia economy according to The Moscow News.
The move aims to ensure 7 percent GDP growth of the Russian economy [Read more →]
→ No CommentsTags: Russia Economy·russian_banks·russian_economy·russia_economy
VTB, Russia’s second-largest bank, is expected to become a key asset manager for Russia’s sovereign wealth fund National Wealth Fund (NWF) according to Reuters.
National Wealth Fund (NWF) is worth $32 billion and VTB targeting investment banking deals that are likely to include a large percent in international investments.
Sovereign wealth funds from Dubai, China, and Singapore have recently been in the spotlight for US an EU security concerns. Russia’s National Wealth Fund (NWF) will surely be on the minds of US and EU leaders as the strength of the Russian government continues [Read more →]
→ No CommentsTags: Investment-in-Russia·russian_government·russian_investment·sovereign_wealth_fund·vtb
The Pepsi Bottling Group has announced that it will invest in Russia by purchasing the Russian bottling company Sobol-Aqua JSC through a joint venture according to Reuters.
The amount of the Russian investment was not [Read more →]
→ No CommentsTags: Investment-in-Russia·pepsi·russian_investment·Sobol-Aqua
Russia is expected to finish negotiations for acceptance as a full member of the World Trade Organization (WTO) by 2009 according to Xinhua News.
Since 1993, while Russia has concluded bilateral talks with more than 60 WTO member countries, there are still three more countries that are required as Russian trade partners: Saudi Arabia, the United Arab Emirates and Georgia.
The deal breaker is Georgia if the Russian government fails [Read more →]
→ No CommentsTags: Russia Trade·russian_government·russian_trade·world_trade_organization·wto
Standard & Poor’s Ratings Services, S&P, has revised it previous rating on the Russia economy from ‘stable’ to ‘positive’ according to The Moscow Times.
Key drivers of the rating increase include the benefits of Russia’s crude oil and natural gas, a budget surplus of 5.5 of GDP, and gold reserves of up to $490 billion, etc.
Nonetheless, S&P pointed to Russia’s banking system and the real Russia economy as [Read more →]
As expected, Dmitry Medvedev won the Russian election on Sunday.
While the majority of the Russian population agree that the electoral process for the next Russian government was likely less than democratic, most believe this is the right choice of the country wants to continue on its current path of economic prosperity.
For more on the Russia government election and the events leading up to the less than free and fair Russian election, watch this informative CBS News video: Putin’s Man Wins
→ No CommentsTags: dmitry_medvedev·Russian-Government·russian_election·russian_government·russia_government
While the Russian government will not hold official elections until this Sunday, Vladimir Putin has essentially already won the election as his choice for succession goes to Dmitry Medvedev.
For a deeper look into what to expect with the newly elected Russian government and how the election is progression, watch this informative video: Russian opposition out in cold.
→ No CommentsTags: dmitry_medvedev·Russian-Government·russian_government·vladimir_putin
Evraz Group, the Russian steel producer, announced that it plans to invest in China’s Delong Holdings in order to expand into the China market according to Forbes.
The Russian investment into Delong Holdings is valued at about $1.5 billion, consists of a 51 percent stake, and yet is subject to Chinese government antitrust clearance.
The move by Evraz follows a bid for Claymont Steel Holdings [Read more →]
→ No CommentsTags: delong_holdings·evraz·Investment-in-Russia·russian_investment·russian_steel
Russian president Vladimir Putin has announce that he consider the Russian economy highly inefficient and warned that the Russian economies lack of diversification is threatening according to Forbes.
The statement by Putin came in a speech outlining the vision for Russian economy development up until the year 2020.
The message was clear that if the Russian economy continues to rely on oil and gas exports then it would only lead to a grater dependency on imports of not only goods but also technologies leaving the Russian economy at [Read more →]
→ No CommentsTags: Russia Economy·russian_economy·vladimir_putin
Russia trade with India is expected to hit $10 billion by 2010 according to the Statesman.
Through the Comprehensive Economic Cooperation Agreement (CECA), Russia and India plan to enhance Russia trade with India [Read more →]
→ No CommentsTags: ceca·comprehensive_economic_cooperation_agreement·Russia Trade·russia_trade
The US and Russia have signed a Russia trade deal to export $5 billion worth of uranium to the US over the next 10 years according to Xinhua News.
The Russian trade deal is aimed to encourage bilateral trade with the US and the uranium is intended for peaceful purposes.
Essentially, the agreement will allow Russia to convert 500 metric tons of high-enriched uranium (HEU) from dismantled Russian nuclear weapons into low-enriched uranium (LEU) which will then be used for US fuel consumption.
The 500 metric tons [Read more →]
→ No CommentsTags: Russia Trade·russian_trade·russia_trade·uranium
PSA Peugeot Citroën, Europe’s second-largest carmaker, has announced that it will invest in Russia $442 Million to build a greenfield assembly plant according to The Financial Times.
The Russian investment is set to produce a capacity of 150,000 cars per year and will be located 80km south-west of Moscow in the city of Kaluga.
The investment in Russia by Peugeot is key [Read more →]
→ No CommentsTags: Investment-in-Russia·peugeot·Russia Investment·russian_investment
Analysts suggest that Wal Mart, the world’s largest retailer, will invest in Russia in the next two years according to the St. Petersburg Times.
The Russia economy grew an estimated 7.6 percent in 2007 and the country’s food-retailing industry accounts for $145 billion, which make the Russian market extremely attractive to Wal Mart as it looks for more markets to develop.
Wal Mart acquisition or joint venture targets to invest in Russia include [Read more →]
→ No CommentsTags: foriegn_direct_investment_in_russia·Investment-in-Russia·investment_in_Russia·invest_in_russia·russia_economy·wal_mart
Hyundai Motor, the top South Korean maker of cars, has officially signed a deal to invest in Russia according to The Korean Times.
The investment in Russia involves the construction of a $400 million plant in the northwest Russian city of Saint Petersburg. It will produce 100,000 cars a year.
Hyundai has already sold over 130 thousand cars in Russia in the first 11 months of this year and currently holds 9.1-percent market share. The decision to invest in Russia [Read more →]
→ No CommentsTags: foriegn_direct_investment_in_russia·hyundai_motor·Investment-in-Russia·investment_in_Russia·russian_investment
Vladimir Putin has announced his backing for Dmitri Medvedev as his successor for president in the Russian government.
Medvedev, chairmen of Gazprom, the biggest natural gas company in the world, is said to be good for the Russian economy and will be good for the publicity of the Russian government.
Watch this informative video on Putin’s decision to back Dmitri Medvedev as head of the future Russian government: Putin Backs Possible Russian Government Successor
→ No CommentsTags: dmitri_medvedev·gazprom·Russian-Government·russian_economy·russian_government·vladimir_putin
GM plans to further invest in Russia by taking a significant stake in OAO AvtoVAZ, Russia’s largest automobile maker according to Bloomberg.
While no dollar amount or percentage of the Russian investment was disclosed, GM’s current sales in Russia grew 75 percent as compared to 6 percent in the States, which clearly show how important the Russian auto market is to GM.
Other recent Russian investments by [Read more →]
→ No CommentsTags: auto_market·foriegn_direct_investment_in_russia·general_motors·gm·Investment-in-Russia·russian_investment
With the aid of President Vladimir Putin, the current Russian government continues as the United Russia wins the Russian election by 63 percent.
Nonetheless, the Russian elections are suspect to say the least as many have voiced concern over how the Russian government has internally squashed any attempts by opposition parties to compete.
Watch this informative video on the Russian government elections: Russians United behind United Russia Government
→ No CommentsTags: president_vladimir_putin·Russian-Government·russian_elections·russian_government·russia_government
The automobile industry continues to see an investment in Russia as a key to the industries growth.
Watch this informative video on the automobile industries recent foreign direct investment in Russia: Car Makers Look East and Invest in Russia
→ No CommentsTags: automobile_industry·foriegn_direct_investment_in_russia·Investment-in-Russia·investment_in_Russia·invest_in_russia
Watch this informative video on how the current Russian government is cracking down on any opposition to Russian President Vladimir Putin: Russian Government Opposition Dismay.
→ No CommentsTags: garry_kasparov·president_vladimir_putin·Russian-Government·russian_government·russian_president_vladimir_putin
For the second time this year, workers at the Ford factory in Russia have gone on strike, which could potentially affecting the Russian economy according to AP.
The workers are demanding higher wages of about 30%. Should there demand not be met or should there be no agreement, the Russian economy could [Read more →]
Russia expects annual foreign direct investment in Russia to reach $50 billion over the next three years according to Interfax.
Deputy Prime Minister and Finance Minister, Alexei Kudrin, attributes the liberalization of capital flows as the key driver for such increases in foreign direct investment in Russia.
He also went on to tout foreign direct investment in Russia would reach 2.7% of GDP, which is comparable to that of China. However, it is highly unlikely that Russia can attract such investment without assurances that its true intentions are to reform rather than use foreign direct investment in Russia as [Read more →]
→ No CommentsTags: foreign_direct_investment·foriegn_direct_investment_in_russia·Investment-in-Russia·investment_in_Russia·russia
Gazprom, Russia’s gas giant, and CNPC, China’s largest oil and gas company, are making big strides in coming to agreement on Russian trade of natural gas with China according to Xinhua.
The Russian trade deal with China is part of a strategic partnership the two countries entered into in 2004 which states that Russia will pipe 68 billion cubic meters of natural gas to China each by 2020.
As the Russia continues to forge energy deals to increase Russian trade, the [Read more →]
→ No CommentsTags: china·cnpc·gazprom·natural_gas·Russia Trade·russian_trade
Magna International Inc., the Canadian-based auto parts maker, is considering a $500 million investment in Russia according to The Canadian Press.
The investment in Russia would [Read more →]
→ No CommentsTags: chrysler·Investment-in-Russia·investment_in_Russia·invest_in_russia·magna
Hyundai Motors has official announced plans to invest in Russia by building a plant in Russia according to Yahoo News.
The plant is expected to produce an annual capacity of 100,000 units and the investment in Russia marks the Russia economy as one of the fastest growing car markets for Hyundai.
With sales in October up 92 per cent from a year earlier, the move for Hyundai to invest in Russia is [Read more →]
→ No CommentsTags: hyundai_motors·Investment-in-Russia·investment_in_Russia·invest_in_russia·russia_economy
Despite the slowing of the US India nuclear energy deal, India and Russia are moving forward in talks to build four more nuclear reactors at Kudankulam according to NDTV.
Interestingly, the passage of India nuclear energy deal with the US would make the Russia deal easier, but India and Russia are moving forward with talks regardless.
Russia and the International Atomic Energy Agency (IAEA) have [Read more →]
→ No CommentsTags: atomic_energy_agency·india·Investment-in-Russia·nuclear_energy·russia
The Russia economy is currently seeing a boom in the retail real estate market as Russian incomes begin to rise.
Watch this informative interview with David O’Hara, the managing director of DTZ, on the Russia economy and [Read more →]
→ No CommentsTags: david_ohara·real_estate_market·Russia Economy·russia_economy
The Russia economy ranks 58th in global competitiveness according to the Global Competitiveness Report 2007-2008.
The Global Competitiveness Report 2007-2008 study is conducted by the World Economic Forum and based its Russia economy competitiveness on the following criteria:
For a detailed look into the Global Competitiveness Report 2007-2008 and its view on the Russia economy, see [Read more →]
→ No CommentsTags: global_competitiveness_report·russia_economy·world_economic_forum
Former World Chess champion, Garry Kasparov, speaks on the Russian government and warns the West about Putin’s political agenda and his focus on high oil prices.
Watch this informative video that interviews Garry Kasparov on his views and insights about the Russian government and Putin: Mafia-Style Capitalism
→ No CommentsTags: garry_kasparov·oil_prices·putin·russian_government·world_chess_champion
The Russian economy sees real estate, retail, and investment banking as the fastest growing sectors for M&A by foreign investors according to RussiaToday.
The Russian economy grew in the area of M&A by foreign investors from $50 billion to more than $100 billion form 2005 to 2006 as more foreign investors invest outside of Russian oil and gas.
The key to continued growth in the Russian economy [Read more →]
→ No CommentsTags: investment_banking·investment_in_Russia·russian_economy
Russian inflation is likely to exceed the initial estimate of 7 percent for 2007 according to Ros Business Consulting.
Analysts now believe Russia inflation will reach 10 percent or higher despite the Russian government’s intentions to maintain previous forecasts of only 7 percent.
The key driver of such an increase in Russia inflation is higher consumer product prices.
→ No CommentsTags: russian_governments·russian_inflation·russia_economy
Russia has agreed to increase trade with Iran by $200 billion over the next decade according to the Tehran Times.
The Iranian president Mahmud Ahmadinejad stated that the agreement between Russia and Iran would guarantee both political and economic interests for the two countries and that the talks were [Read more →]
Despite rising oil prices, Russia will continue to supply the EU with a stable supply of energy according to Xinhua News.
The EU currently receives more than a quarter of its oil and gas from Russia and is clearly dependent on a stable supply from Russia in order to feed the EU energy requirement.
Interestingly, the promise to deliver a stable supply of energy to the EU by Russia coincides [Read more →]
Daimler has announced that is will invest in Russia to expand its commercial vehicles division according to AFP.
While still in discussions, [Read more →]
→ No CommentsTags: daimler·investment_in_Russia·mercedes_truck·russia
Indian Foreign Minister and Russian Deputy Prime Minister have announced that they plan to increase trade to 10 billion by 2010 according to Yahoo India News.
The announcement came at the recent India-Russia Inter-Governmental Commission (IRIGC) meeting designed to act as [Read more →]
→ No CommentsTags: bilateral_trade·india·russia·russia_trade
To meet the rising demand for Russian cars, Hyundai is planning to invest $400 million to build a new automobile plant in Russia according to AFP.
The Russian plant will have a capacity of 100,000 Russian cars a year and will be located in Saint Petersburg. The Russian plant will also become Hyundai’s sixth overseas plant with a fifth in the Czech Republic currently under construction.
Russian car sales in 2006 accounted for total of approximately [Read more →]
→ No CommentsTags: automobile_plant·hyundai·investment_in_Russia·russian_car·russian_cars
As a means to help overcome liquidity concerns because of the recent US subprime crises, the Russia Central Bank has decided to lower the minimum bank reserve requirement according to the Financial Times.
The US subprime spillover began in August as liquidity began to dry up. In other words, global investors began to [Read more →]
→ No CommentsTags: global_investors·liquidity·russia_central_bank·russia_economy·subprime
The Economic Development and Trade Minister of Russia warned that Russia will exceed the 8 percent targeted inflation rate according to RIA Novosti.
Key drivers of such inflation growth include [Read more →]
→ No CommentsTags: agriculture_prices·bio_fuels·russian_inflation·russia_economy
Russian investors and ordinary Russians consider Putin as the best choice as PM to continue the growth of the Russia economy.
Although a strong figurehead in Russia is key to a strong approval rating, the real question is whether Putin can change the world investment community’s concern over Russia in terms of corruption and economic instability.
For more, watch this informative video: [Read more →]
→ No CommentsTags: corruption·economic_instability·putin·russian_governement·russia_economy