Economic News from Russia

[RussiaPrussia]

RZD logistic subsidiary gives 15% discount on freight rail shipments from Crimea

Economy
April 11, 11:03 UTC+4
A 15% discount will be in effect for 2.5 months until June 30, 2014


© ITAR-TASS/Alexander Ryumin

MOSCOW, April 11. /ITAR-TASS/. FPK-Logistika OJSC, a subsidiary of Federal Passenger Company (FPK) OJSC that belongs to Russian Railways (RZD) OJSC, Russia’s national railway operator, stated about granting discounts for freight rail shipments of products made in the Russian Republic of Crimea to Russia, FPK-Logistika said in a statement on its website on Friday.

A 15% discount will be in effect for 2.5 months until June 30, 2014, the document said.“At present, due to closed border with Ukraine economic ties in Crimea are ruined that threatens local business and wellbeing of local residents,” the statement reads. “To support Crimean business the FPK-Logistika general director has issued an order introducing special terms of Crimean freight delivery to Russia. The discount on delivery on goods made in Crimea amounted to 15%,” it runs.
These shipment terms will be in effect on all FPK-Logistika routes from April 14 to June 30, 2014 if documents are produced to verify that products are manufactured in Crimea, the company said in the statement.
FPK-Logistika OJSC was set up by the Federal Passenger Company to provide shipping services in luggage wagons of passenger trains (FPK) on international routes. The Federal Passenger Company is the largest passenger long-distance train carrier and Russian Railways owns the full stock of the company. As many as 110.7 million passengers that are five percent lower than in the previous year were trafficked in long-distance trains in 2013.

[RussiaPrussia]

Russia to produce over 120 million tonnes of grain annually by 2020 - vice-premier

Economy
April 10, 19:45 UTC+4
“Every year export will increase by up to 40 million tonnes. This will enhance food security in the Asian region,” Russian Vice-Premier Arkady Dvorkovich says


© ITAR-TASS/Vladimir Smirnov

BOAO, April 10. /ITAR-TASS/. Russia’s senior government official has said grain production in Russia will exceed 120 million tonnes by 2020.
“Every year export will increase by up to 40 million tonnes. This will enhance food security in the Asian region,” Russian Vice-Premier Arkady Dvorkovich told the Boao Forum for Asia on Thursday.

Russia is ready “to develop quick and safe transport corridors - both onshore and offshore ones. We’ve started reconstructing the Trans-Siberian and Baikal-Amur Mainline. One more transport corridor will be created between Asia and Europe”, he said.
“We invite the partners concerned to join in the development of the Northern Sea Route,” Dvorkovich said.
Regional scientific and technological cooperation “is part of our work. We believe that expanding relations between scientific organisations, research centres and universities will meet our common interests”, he said.
“The centre of our work will be in the new university set up on Russky Island, Vladivostok,” Dvorkovich said.
“Russia, its regions from Kaliningrad and Crimea to Sakhalin and Chukotka, are ready to make concrete contributions to developing mutually advantageous cooperation in order to ensure economic stability and sustainable development,” he said.
“We are ready to work on the principles of friendship and mutual cooperation,” Dvorkovich said.

[RussiaPrussia]

Ruselectronics to triple revenues by 2020

Economy
April 09, 19:11 UTC+4
“The volume of sales of dual-purpose and military-oriented products will grow by over 50%, whereas the share of civil products will grow to 55%,” deputy director general of Ruselectronics says


© ЕРА/JEAN-CHRISTOPHE BOTT

MOSCOW, April 09. /ITAR-TASS/. The revenues of the Ruselectronics holding company, a subsidiary of the Russian state corporation Rostec, is expected to more than triple to 131 billion roubles ($3.7 billion) by 2020, a deputy director general of Ruselectronics said Wednesday.
Arseny Brykin also told journalists that there are plans to nearly halve the number of enterprises making part of the holding company in the next three years.
“As a result of enlargement, restructuring and liquidation, in the period from 2014 to 2016, 70 organizations will be established on the basis of 120 plus organizations. In this way, the manageability and stability of the holding company’s organizations will be increased,” Brykin said.

He said the basic scenario of the holding company’s development strategy implementation envisions its revenues’ growth in 2012-2020 to 130.7 billion roubles ($3.7 billion) from 42.7 billion roubles ($1.2 billion).
“The volume of sales of dual-purpose and military-oriented products will grow by over 50%, whereas the share of civil products will grow to 55%,” the deputy head of Ruselectronics said.
He specified that the return on invested capital will total 5.5%, and EBITDA profitability will reach 18%.
Ruselectronics is part of strategically important dual-purpose assets of the Rostec corporation. As a holding and management company, Ruselectronics unites 123 enterprises of the radioelectronic industry.

[RussiaPrussia]

Minister charts Crimea potential for hydrocarbon riches

Economy
April 15, 15:24 UTC+4
Hydrocarbon reserves in Crimea are equivalent to 47 million tons of oil and 165 million cubic meters of gas


© ITAR-TASS/Alexei Pavlishak


MOSCOW, April 15. /ITAR-TASS/. Russia’s Crimean peninsula has promising potential for hydrocarbon production available from reserves still unexplored, Russian Minister of Natural Resources Sergei Donskoy told ITAR-TASS.
“Quite serious prospects need to be worked on,” the minister said, noting a "quite low" level of geological prospecting on the peninsula using modern methods.
Hydrocarbon reserves in Crimea were equivalent to 47 million tons of oil and 165 million cubic meters of gas now under Russian jurisdiction, Donskoy noted, having already reported on 44 fields of hydrocarbon resources including 10 of oil, 27 of gas and seven gas condensate deposits situated on the peninsula.
Russia’s Black Sea continental shelf has five gas deposits and three gas condensate deposits alongside six gas offshore deposits in the Sea of Azov.
Crimea has around 154 deposits of raw stock for building materials, including sand and face stone, seven deposits of metallurgical raw resources and three deposits of mining and chemical raw materials.

[RussiaPrussia]

16.04.2014


W/S Mikhail Prokhorov enters the press room of Itar-Tass news agency in Moscow
SOT, Mikhail Prokhorov, Russian businessman and the Brooklyn Nets owner (speaking Russian): "We have constructed this car (Yo-Mobile), It's ready and serial production could be started but economic situation is so that cars sales are falling 20 percent or even more -- we are waiting for the issue of March statistics -- and it's an economic insanity to introduce a new model in conditions of fall of sales now. That's why we decided to freeze the project."
M/S Journalist
SOT, Mikhail Prokhorov, Russian businessman and the Brooklyn Nets owner (speaking Russian): "I've made a patriotic and non-business motivated decision to deliver for free all of our know - how (technologies) to the state so that part of Yo-mobile technologies could be applied in vehicle manufacturing industry first of all and some other industries right now."
M/S Press
SOT, Mikhail Prokhorov, Russian businessman and the Brooklyn Nets owner (speaking Russian): "You can hardly imagine what a conflict I had with my colleagues responsible for business (strategy, profits). We had a customer from China, who was ready to buy this technology and we would get solid profit then."
W/S Press
SOT, Mikhail Prokhorov, Russian businessman and the Brooklyn Nets owner (speaking Russian): "My lawyers and lawyers of NBA are working now on this question (transferring of Brooklyn Nets to Russian jurisdiction). Judicial work goes on. When it's done I will inform you for sure. "
W/S Mikhail Prokhorov leaves the press room
M/S Itar-Tass emblem
WS Itar-Tass news agency headquarters
SCRIPT

Russia: Prokhorov puts patriotism above profit in Yo-Mobile sale

Russian billionaire Mikhail Prokhorov explained his "patriotic" move to provide all the technology of the Yo-Mobile car development to the Russian state in a press conference in Moscow, Wednesday. He further laid out his plans to put the Brooklyn nets under Russian jurisdiction, pending legal proceedings.

The sale to the state, Prokhorov explained, was not based on profit-seeking, to the annoyance of some of his colleagues. The project, Prokhorov detailed, could have been sold to Chinese investors for profit.

[RussiaPrussia]

W/S Worker working covering a pipe with plastic
M/S Worker working covering a pipe with plastic
W/S Pipes
W/S Smelting process
C/U Smelting process
M/S Smelting process
W/S Smelting process
M/S Operator smelting the steel
C/U Smelting process
W/S Production process
W/S Completed pipes
W/S Vyksa Steel Works in Nizhny Novgorod Oblast

Production of specialised steel pipes for the ocean sector of the South Stream pipeline began at the Vyksa Steel Works in Nizhny Novgorod Oblast, Wednesday. As specified by South Stream Transport, each pipe is 12 meters (39 ft) in length and is made of SAWL 450-standard DNV-OS-F101 (2010) steel.

The South Stream is a planned East to West gas pipeline that will enable Gazprom to transfer Russian gas to Bulgaria, Italy, Austria and Greece. It is scheduled for a completion date of 2018.

[RussiaPrussia]

http://www.tradingeconomics.com/russ...-growth-annual




Russia GDP Growth Slows Sharply in Q1



Russian economy advanced an annual 0.8 percent in the first quarter of 2014, well below the 2 percent expansion recorded in the previous three-month period, Russia's Economy Minister Alexei Ulyukayev said addressing the parliament.

The Minister also said that fixed capital investment shrank 4.8 percent year-on-year in the first quarter of 2014. On the other hand, retail sales grew 3.2 percent.

Seasonally-adjusted GDP contracted 0.5 percent, following a 0.9 percent expansion in the last three months of 2013.

Earlier in April, the IMF estimated the GDP will expand 1.3 percent in 2014, the same as in 2013, but down from a 2 percent prediction made in January.

Mr. Ulyukayev said later that growth may come below 1 percent if current political tension continues. The United States and European Union have imposed asset freezes and visa bans on individuals and a bank and threatened economic sanctions, which may result in further capital outflows.



Joana Taborda | joana.taborda@tradingeconomics.com
4/16/2014 3:41:39 PM

[RussiaPrussia]

Russia has now the third largest Manufacturing output in Europe surpassing both UK and France in nominal terms

Manufacturing, value added (current US$) | Data | Graph

Manufacturing, value added (current US$) | Data | Table

Manufacturing, value added (current US$) | Data | Graph

Manufacturing - Wikipedia, the free encyclopedia

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[RussiaPrussia]

China to Boost Investment in Russia Amid Western Threats to Isolate Moscow

China to Boost Investment in Russia Amid Western Threats to Isolate Moscow






TOMSK, April 17 (RIA Novosti) - Chinese investors plan to launch the first phase of a major Siberian timber complex later this year, part of a push by Beijing to cement business ties with Moscow amid strained relations between Russia and the EU, a senior manager of the venture said Thursday.
A timber processing park in the Tomsk region of Western Siberia will be part of the first phase of the project, including three mills and a dedicated power plant for industrial needs, said Boris Kaznacheyev, Deputy Director General of Roskitinvest.
Investment in the project has already reached 9 billion rubles ($250 million), Kaznacheyev said. The overall investment in timber logging, processing and related infrastructure is expected to reach 30 billion rubles ($830 million) by 2022.
In 2011, the Russian-Chinese joint venture launched a timber mill and veneer plant in the Asinovsky region, about 100 kilometers from Tomsk. The launch of the plants had been postponed several times amid unstable funding and Beijing's concerns over violations of building codes.
Leonid Reznikov, the region's deputy governor who oversees the industrial and fuel-and-energy sectors, said a working group would be set up to speed preparations. "We want the project to be launched in the shortest time possible, that's why we need to boost joint work," he said.
China is also interested in the development of alternative energy projects in Russia's new regions of Crimea and Sevastopol, Russian Deputy Prime Minister Arkady Dvorkovich said Wednesday.
Russian Prime Minister Dmitry Medvedev said earlier that cooperation with China was a top priority for Russia. President Vladimir Putin is expected to visit China next month and sign a number of bilateral agreements, including on potential Russian gas supplies to China.
Following Crimea's reunification with Russia, European countries announced a three-stage sanctions process against Russia.
The first stage saw the suspension of talks of a number of Russian and EU working groups. In the second stage, the EU announced visa sanctions and asset freezes against targeted Russian officials. The third stage, not yet reached, would be broad economic sanctions.
The Russian Foreign Ministry has called the language of sanctions in relation to Russia both inappropriate and counterproductive.

[LightHouse89]

Russia to produce over 120 million tonnes of grain annually by 2020 - vice-premier

Economy
April 10, 19:45 UTC+4
“Every year export will increase by up to 40 million tonnes. This will enhance food security in the Asian region,” Russian Vice-Premier Arkady Dvorkovich says


© ITAR-TASS/Vladimir Smirnov

BOAO, April 10. /ITAR-TASS/. Russia’s senior government official has said grain production in Russia will exceed 120 million tonnes by 2020.
“Every year export will increase by up to 40 million tonnes. This will enhance food security in the Asian region,” Russian Vice-Premier Arkady Dvorkovich told the Boao Forum for Asia on Thursday.

Russia is ready “to develop quick and safe transport corridors - both onshore and offshore ones. We’ve started reconstructing the Trans-Siberian and Baikal-Amur Mainline. One more transport corridor will be created between Asia and Europe”, he said.
“We invite the partners concerned to join in the development of the Northern Sea Route,” Dvorkovich said.
Regional scientific and technological cooperation “is part of our work. We believe that expanding relations between scientific organisations, research centres and universities will meet our common interests”, he said.
“The centre of our work will be in the new university set up on Russky Island, Vladivostok,” Dvorkovich said.
“Russia, its regions from Kaliningrad and Crimea to Sakhalin and Chukotka, are ready to make concrete contributions to developing mutually advantageous cooperation in order to ensure economic stability and sustainable development,” he said.
“We are ready to work on the principles of friendship and mutual cooperation,” Dvorkovich said.

Will Russians continue to buy John Deere tractors made in my neck of the woods? Thats one of our big exports sold to Russia.