Contents tagged with Economy of Russia

  • Russia’s largest private bank believes the country is losing GDP annually due to sanctions

    The largest private bank in Russia estimated that the Russian economy lost 0.5% of GDP due to sanctions. Because of this, the entire positive effect of the actions of the Central Bank has been negated.As indicated in the report of the chief economist of Alfa Bank, Natalia Orlova, the losses are caused by diminished possibilities in attracting financing from abroad as a direct result of the sanctions on certain companies.

    The current US sanctions impose significant restrictions in the provision …

  • Media: Foreign business fleeing Russia in 3 year record

    Foreign business has drastically reduced its investment in the Russian economy according to the Russian Central Bank’s statistics on the balance of payments for 2017, reports.

    At the end of the year, the flow of foreign investments, i.e. the investment in the real sector as open business or the purchase of shares in companies has fallen by 25%.

    In the fourth quarter, non-residents who had operated in the Russian market wrapped up operations and sold shares, after which they withdrew …

  • Net сapital outflow from Russia increased to $31.3 billion in 2017

    The net outflow of capital from Russia in 2017 grew to more than 1.5 times what it was in 2016, according to information from the Central Bank of Russia.

    “The net capital export by the private sector, according to the estimates of the Bank of Russia, was $31.3 billion ($19.8 billion in 2016),” reported the regulator. The message from the Central Bank notes that the main source of net capital export was the banking sector’s operations to reduce external liabilities. “Capital outflows associated …

  • Putin promises to increase minimum wage after the election

    Russian President Vladimir Putin promises that the minimum wage in his country will increase on May 1st, as he stated on January 10th while speaking with workers at a plant in the city of Tver and added that a change in the minimum wage will affect "about four million people."

    The Government plans stipulated that such growth would take place later in 2018. According to officials, the Russian Ministry of Labor will soon begin developing the draft bill regarding the increase in minimum wage. …

  • Russian Finance Minister promised to hide transactions aimed at moving capital back to Russia

    If, next year, the Russian Ministry of Finance issues Eurobonds for businessmen who are interested in moving their capital back to Russia, the information about these investors, their names and amounts, will be protected from the Western financial system by the Russian banking system and the Central Depository, Russian Minister of Finance Anton Siluanov told journalists.

    “If our businessmen want to avoid revealing the movement of their capital, they can act through Russian banks. If they open …

  • Putin: too many people in Russia live below the poverty line

    Speaking at a meeting with cabinet ministers, Putin said that one of the country’s main unresolved problems is a large number of people living on income below the poverty line, TASS reports.

    The Head of State noted that there are now 20 million poor people in Russia, and recalled that recently the figure had been 15 million people.

    "The economic crisis of recent years, the decline in oil prices, and some other causes - including external constraints - have done their dirty work, and the …

  • Putin: tax exemption on the capital repatriated to Russia needs to be extended

    "The first is to extend the amnesty period for capital, referring to those external restrictions that do not become smaller, but, on the contrary, appear to have a tendency to increase," he said at a meeting with Russian MPs.

    Putin also proposed to exempt those entrepreneurs who transfer business from abroad to Russia from income taxes.

    The amnesty on capital was effective in the country from July 1, 2015 until June 30, 2016. This rule allowed Russian taxpayers to voluntarily declare their …

  • Putin: Russia’s economic growth will outpace the world

    Speaking at a rally of the ruling party, United Russia, President of Russia Vladimir Putin stated that the Russian economy will grow faster than the world economy.

    “Economic crises and foreign restrictions prevented us from achieving the task of our economy surpassing the world economy in terms of growth. But we must do this. And we will do this,” the President promised. Putin also said that he expected Russia to bridge the gap between it and the world’s leading countries in terms of GDP per …

  • Putin orders issue of special bonds for the repatriation of capital back to Russia

    While attending a meeting with businessmen, Vladimir Putin announced that he has issued an order for as early as 2018 for the issuance of special bonds for the repatriation of capital to Russia. The decision was made jointly by the government and the Central Bank.

    "At your last meeting, you asked for the creation of favorable mechanisms for the return of capital to Russian jurisdiction. As a tool, we have decided to use domestic bonds for external loans denominated in foreign currency. I have …

  • Russian Finance Minister: Moscow must prepare for new Western sanctions

    While speaking at a collegium of finance, treasury and tax authorities in Kazan, Russian Finance Minister Anton Siluanov said that Russia is being threatened with new financial sanctions.

    Anton Siluanov, the head of the Ministry of Finance of the Russian Federation, arrived at a joint meeting of Tatarstan's financial departments on December 16. He said that the country faces new financial sanctions, reported Komsomolskaya Pravda.

    According to Siluanov, the budget deficit needs to be reduced …