Contents tagged with Economy of Russia
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Moody’s: Deterioration of relations between Moscow and Kiev threatens Russian economy
Experts from Moody’s believe that if clashes take place in the Crimea, it will lead to a strengthening and extension of sanctions against Russia, which will have a negative effect on the restoration of the country’s economy.
Moody’s Investors Service warns that deterioration of relations between Moscow and Kiev can jeopardize the restoration of Russia’s economy. This was reported in the agency’s review, published on August 15.
“If clashes take place in the Crimea and intensify in the Donbas …
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Media: Putin is shaking up his inner circle due to lack of state funds
Russian President Vladimir Putin removed six people from his inner circle due to the State’s lack of money, as reported by the Russian Vedomosti newspaper, citing sources close to the Kremlin.
The following people lost their positions this year: the President of Russian Railways, Vladimir Yakunin; the head of the Federal Guard Service, Eugene Murov; Director of the Federal Drug Control Service, Viktor Ivanov; Director of the Federal Migration Service, Konstantin Romodanovskiy; and the Director …
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Former Russian Economic Minister: If the West lifted sanctions, it wouldn't stop our systemic economic crisis
A systemic economic crisis is taking place in Russia and that is why lifting anti-Russian sanctions imposed by the West will not be enough to improve the economic status of the Russian Federation, Russia’s former Economic Minister Andrey Nechaev stated in an interview with UNIAN.
“I have said many times in the Russian media that we have a systemic economic crisis. As much as some Western and Ukrainian newsmakers would like to blame the sanctions, this isn’t the case. It is funny that some …
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Capital flight from Russia increased 4.5 times
Between July 27 and August 2, 2016, investors withdrew $32 million from funds associated with Russia.
A week earlier, the net outflow of investments amounted to $6.9 million, RBC reports, referring to data from the Emerging Portfolio Fund Research, an organization that monitors the inflow and outflow of investment funds and their allocation.
Two-thirds of the mentioned capital outflow occurred in exchange traded funds. Such results were not unexpected because, until recently, oil prices have …
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Russian Government Agency: State-owned companies have to reduce operating expenses by 10 percent
The Federal Agency for State Property Management, Rosimushchestvo, is being required to reduce their operating expenses by at least 10%. They only have one month to develop the plans and schedules to accomplish it.
The Federal Agency for State Property Management Rosimushchestvo has demanded that Russian state-owned companies reduce their operating expenses by at least 10%. Expense reduction plans have to be developed in one month, as reported by Vedomosti on Monday, August 8, 2016.
According …
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Experts: Russia's economic recession affects all sectors
Russia is experiencing a recession this year, so it is too early to speak about the recovery of the economic activity of the country, according to the experts at Russia's National Research University Higher School of Economics (HSE), RBC reports.
The report states that the compression process of the economy was a "broad front" and has affected all sectors (except for wholesale trade) and, as a result, "the economy has not only reached the previous low, but has gone below it."
Experts note …
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Food prices in Russia have risen 31.6 percent since August 2014
Since August of 2014, when Moscow first imposed a food embargo on countries that had imposed economic sanctions on Russia, food prices have risen by 31.6%, according to the Ministry of Economic Development, RBC reported.
“The introduction of food countersanctions to restrict imports in August 2014 was an important factor in the growth of food prices in late 2014 and early 2015, which resulted in imbalance and a reduction in competition. For two years, food prices rose by 31.6%,” a …
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Gazeta.ru: Russia plans to dismiss 10,000 scientists by 2019
The lack of funds for the State program, the Development of Science and Technology, can lead to the reduction of more than 10,000 scientists in Russia by 2019. On Sunday, July 31, 2016 the Russian news site Gazeta.ru reported on this issue after reviewing documents from the Russian Ministry of Education and Science that were prepared for the budget meeting with the Prime Minister of Russia, Dmitry Medvedev, on the 29th of July, 2016.
The total allocation of the Federal Budget to be spent on …
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41% of Russians believe they do not have enough money for food or clothing
According to research conducted at the National Research University Higher School of Economics in Moscow, 41.4% of Russians believe that they do not have enough money to buy food or clothing. 23.2% consider their financial situation to be bad, or very bad, RBC reported.
These numbers are up from the same research conducted in May, which concluded that 40% of the population could not afford basic goods such as food and clothing, and 21.1% considered themselves to be in a poor personal financial …
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Russian Finance Ministry predicts increase in capital outflow from the country
The volume of Russia’s net capital outflow in the second half of 2016 will be slightly higher than in the first half. This forecast was made on the 25th of July by the country’s Deputy Finance Minister, Maxim Oreshkin.
According to him, “this is due to the heavier schedule of the external debt compared to the first half of the year”. At the same time, the Bank of Russia has reported that the net outflow of the capital in the first six months of 2016 is almost five times lower in comparison to …