Contents tagged with Russian Economy

  • US Congress prepares to deal new blow to Russian economy

    The lull in sanctions which Russia enjoyed during US Congress’s interim elections and government shutdown is now coming to an end.

    After the four-month break, Congress is once again discussing new measures that can be taken against Russia. The possibilities range from a ban on investments in Russian government debt to a complete disconnection of Russian government banks from the global dollar transaction system.

    Congress’s first hearings following its elections will be held on 12 February in …

  • Confidence of Russians in a better future reaches all time low

    The pension reform, the depreciation of the ruble, the endless sanction conflict with the West and the government’s plans to raise taxes after a record drop in the population’s real income – all of these factors have undermined Russians’ faith in the country’s prospects.

    At the end of the second quarter, 50% of Russians thought that the country’s worst times were yet to come, according to a report on social well-being by the National Research University Higher School of Economics (HSE).

    In …

  • Russia threatens to decrease investments in US national debt

    In response to the new U.S. sanctions, Russia will continue to dispose of the U.S Treasury bonds as well as increase payments in national currencies, the Kommersant newspaper reports, citing the statement of the First Deputy Prime Minister of the Russian Federation, Finance Minister Anton Siluanov, made during the broadcast of Russia -1 TV channel.

    "We have reduced investments to a minimum. We will continue to reduce our investments in the U.S. economy and American treasury bonds and will …

  • Number of western specialists coming to Russia drops by two thirds

    The temporary migration from developed western states to Russia continues to decrease, according to the February report of the Russian Presidential Academy of National Economy and Public Administration (RANEPA).

    Compared to the levels observed before western sanctions and the crash in oil prices, the flow of US and EU citizens into Russia has dropped by nearly two thirds.

    The influx of tourists and western specialists and business representatives traveling for business or service purposes is …

  • Media: Hedge funds continue to dump Russian rubles

    American hedge funds are continuing to get rid of investments in rubles, while, at the same time, the price of the Russian currency stays in one place, ignoring the drop in oil prices.

    One week before May 30, major traders at the Chicago exchange reduced bets on the ruble’s growth by 3% on the futures market, Finanz.ru web site reports.

    The number of open contracts on the ruble has been decreasing for five consecutive weeks. Such a prolonged sell-off was last observed on the market in …

  • Mogherini: Russia hardly can be called a superpower

    The Russian Federation can hardly be called a superpower today due to its economic situation, as stated by the High Representative of the European Union for Foreign Affairs and Security Policy, Federica Mogherini, at the World Economic Forum on the Middle East and North Africa in Jordan, CNBC reports.

    "If we look at the state of the Russian economy today, it can hardly be called a superpower," Mogherini said. She also added that today the GDP per capita in Russia is lower than in most of the …

  • The outflow of capital from Russia almost doubled in 2017

    The Bank of Russia announced a significant increase in the capital flight from Russia in January-April 2017. According to the regulator, net amount of transfer of capital by the private sector during this period was $21 billion. This is more than double that of the first four months of the previous year ($9.8 billion).

    "In contrast to the situation a year ago, the main factor in the net outflow was the transfer of the funds by the banking sector overseas following the continued increase of …

  • Russia’s international reserves decreased by USD 6.3 billion after Trump's victory

    International reserves of the Central Bank of Russia (CBR) fell by USD 6.3 billion from November 4 to November 18.

    This is evident from data provided by the Bank of Russia, TASS reports.

    Donald Trump winning the presidential election in the United States led to the strengthening of the dollar and the reduction of the cost of US Treasury bonds, which make up a significant proportion of reserves of the Bank of Russia, experts say.

    This led to a negative revaluation of international reserves. …

  • Former Russian Finance Minister: The Kremlin doesn’t understand the new economic reality

    The former Russian Minister of Finance and Chairman of the Board of the Centre for Strategic Research, Alexei Kudrin, believes that the Russian government doesn’t have a clear understanding of the existing economic realities after the fall in oil prices and the reduction in budget revenues.

    “The price of oil has fallen; we have shortage of revenues and problems with our growth factors. We learned to spend money so easily, when Russia experienced economic growth, and now I want to say that the …

  • Russian Ministry of Finance: The economy of the country is 'in the eye of the storm'

    Russia’s First Deputy Finance Minister Tatyana Nesterenko stated if reforms are not implemented, the State will have no funds to pay wages by the end of 2017. According to her, stability is only provided due to reserve funds.

    The lack of reforms in the Russian economy may lead to spending reserves and economic problems by the end of 2017, Nesterenko stated.

    "If changes are not made, we will have no reserves, no ability to pay wages, we will have serious economic problems by the end of the …