Economic News from Russia

[RussiaPrussia]

Russia Said to Weigh Plan to Introduce Gambling in Crimea - Bloomberg
By Evgenia Pismennaya, Ilya Arkhipov and Yuliya Fedorinova Mar 27, 2014 10:13 AM GMT+0100

Russian soldiers build barricades as they maintain control of the Feodosia military base in Crimea.

Russian officials are weighing a proposal to create a gambling zone with casinos and hotels in Crimea, the Black Sea peninsula annexed from Ukraine, according to four people with direct knowledge of the planning.

Officials discussed the option at a March 21 meeting led by Deputy Prime Minister Dmitry Kozak, the people said, asking not to be identified as the information isn’t public. Russia’s ministries of economy, finance and regional development have an April 15 deadline to present a plan for the gambling project with spending and revenue estimates, the people said.

Russia is seeking to make Crimea less reliant on the state budget. The region may run a fiscal deficit of about 55 billion rubles ($1.5 billion) this year, which Russia plans to fully cover, Finance Minister Anton Siluanov said last week in an interview on state television. Russia had a budget surplus of 30.5 billion rubles, or 0.3 percent of economic output, in the first two months of 2014, according to Finance Ministry data.

Russia may direct at least $2.8 billion of emergency budget reserves this year to subsidize Crimea and the port city of Sevastopol, home of Russia’s Black Sea Fleet, two other people with knowledge of the plans said earlier.


Customers play roulette at the Oracle casino in Azov City, Russia.

‘Without Delay’
The government may use 100 billion rubles to 130 billion rubles of an anti-crisis cushion written into the budget, which includes Russian pension savings, the two people said. The amount may swell to 260 billion rubles to raise state pensions and salaries to Russian levels, one of them said.

President Vladimir Putin, facing the weakest economic outlook since 2009 and first-quarter capital outflows that may exceed the level for all of last year, defied the U.S. and European Union’s threats of sanctions to absorb Crimea, a predominantly Russian-speaking region. Putin last week ordered Crimean pensions to be increased “without delay.”

Should the gambling area in Crimea be created, it will be part of a special economic zone, which give tax breaks to companies located within, according to the people. Prime Minister Dmitry Medvedevordered ministries to develop roadmaps for Crimea’s development after a March 24 meeting. His spokeswoman Natalya Timakova declined to comment any plans being considered.

Economic Stimulus
Ilya Djous, a spokesman for Kozak, declined to comment if there’s an order for ministries to work on proposals to create a gambling zone. Medvedev put Kozak in charge of coordinating work on Crimea.

“All proposals to stimulate the economy are under consideration,” Djous said by phone yesterday. “They will be known when a decision is made.”

Russia banned gambling across the country from 2009, except for designated areas in four regions -- Krasnodar, near Crimea in the southwest; the Kaliningrad exclave between Poland and Lithuania; Altai, on the border with Kazakhstan and in Vladivostok on the Pacific coast. The only operational resort is Azov City in the Krasnodar region, with construction under way elsewhere.

The curb on casinos grew out of an anti-vice campaign that included measures to curtail smoking and underage drinking.

Putin rejected a proposal to bring gambling to Sochi as a source of quick income after the Black Sea city hosted the Winter Olympics. Sochi should remain a family resort, the president told its residents last month.

[Loki]

Good thread, keep it up

[RussiaPrussia]

ITAR-TASS: Economy - Rogozin says Russia-India oil pipeline project is possible
Economy
February 26, 19:01 UTC+4
Russia's Deputy Prime Minister Dmitry Rogozin said Thursday the project of a pipeline betwee India and Russia has the right to exist

ITAR-TASS/Vladimir Zinin
NEW DELHI, February 26. /ITAR-TASS/. Russia and India can build an oil pipeline between the two countries.

“This is one of the major infrastructure projects that can be implemented. I think it has a right to exist, but we should make calculations to see how profitable it can be,” Deputy Prime Minister Dmitry Rogozin said on Wednesday, February 26.

The proposal to build an oil pipeline from Russia to India was put forth by India’s Oil and Natural Gas Corporation (ONGC). Its Vice President M.K. Nair told ITAR-TASS that the pipeline could run through Afghanistan and Pakistan.

In a joint statement issued by Russian President Vladimir Putin and Indian Prime Minister Manmohan Singh in Moscow in October 2013 agreed to study the possibility of direct onshore transportation of hydrocarbons from Russia to India and agreed to set up a joint research group to this end.

“We are ready to discuss the details with the Russians,” Nair told ITAR-TASS. “The project is economically beneficial to both India and the Russian Federation. Moreover, it will benefit Afghanistan and Pakistan, and when economic prosperity is on the table, differences tend to be forgotten.”

India’s former Union Minister for Petroleum and Natural Gas Mani Shankar Aiyar told ITAR-TASS late last year that Russia and India should consider a project for a direct ground route to deliver oil and gas from Russia. Such a move would open up bright prospects for both sides, he said.

Mani Shankar Aiyar has been a proponent of greater cooperation between Russia and India in the oil and gas industry. In 2004, when he held the petroleum and natural gas portfolio in Manmohan Singh’s cabinet, he visited Sakhalin Island, where ONGC is a partner in the Sakhalin-1 project with Exxon and Rosneft.

ONGC’s proposal to run a pipeline from Russia is “one of several prospective projects that can significantly increase the volume of bilateral trade,” the head of the Eurasian Department of the Indian Ministry of External Affairs, Ajay Bisaria, said.

India’s largest natural gas company, GAIL, proposed that Russia extend its mooted gas pipeline through China to Indian soil. “The idea is being discussed,” said the director of the GAIL Department for Quality Management, Siddhartha Sarkar.

“There aren’t too many viable options for running an oil pipeline to India. The route through China is mountainous. If it goes through the Himalayas, it will turn into a diamond pipe. The route through Iran is more circuitous. If oil is shipped by tanker through the Black Sea, it will still be several times further. India's proposed alternative route from Russia through Afghanistan and Pakistan is the shortest,” Sergei Pikin, director of the Energy Development Fund, told the newspaper Vzglyad, which was quoted by Russia and India Report.

The main risks are political. The war in Afghanistan is still ongoing, plus the high risk of the Taliban returning to power. “But in this part of the world political risk comes with the territory. It’s simply a case of carefully selecting the regions where the government is more or less in control of the situation. Plus, there must be a top-level security system in place,” Pikin noted.

“Given the current level of safety, the pipeline project is certainly doable. But what happens after that, no one is sure. In any case, such projects are always insured: the policy will cover terrorist incidents,” he said. But India has vast potential. “It is one of the fastest growing regions in terms of energy consumption. The Indian market is potentially huge and yet to be courted,” he adds.

As for running a gas pipeline to India through China (instead of Afghanistan), the two countries have a complex relationship involving border disputes and mutual suspicion. “If a significant portion of the pipeline passes through the Middle Kingdom, there is a risk that it could be used to exert pressure on India,” Dmitry Abzalov, a leading expert at the Russian Centre for Current Politics, said.

The new pipeline would not necessarily be a part of the planned TAPI (Turkmenistan-Afghanistan-Pakistan-India) project, although it might run parallel to it. India has long advocated the politically forward-looking TAPI project. The project has been actively discussed since the 1990s. If built, it would stretch 1700 km with a capacity of 30 billion cubic metres of gas a year. Russia has been invited to take part in the projects, with Gazprom keen to construct the entire stretch of the pipeline.

[RussiaPrussia]

29 March 2014, 07:56

The fact Chinese are buying Superjets not surprising, Russians make good engines - expert

Photo:RIA

A private Chinese company plans to buy 100 Russian Sukhoi Superjet-100 planes worth 3.5 billion dollars. The Sukhoi firm is internationally famous for its military aircraft such as the Su-15interceptor, the Su-30 bomber, the Su-35 multirole fighter and theT50 stealth fighter plane. The China Daily reported that the project on buying the Sukhoi planes is yet to be approved by the Chinese State Council. In an exclusive interview to VoR Richard Weitz, Director & Senior Fellow of the US Center for Political-Military Analysis at Hudson Institute, explains what exactly the Chinese grand gesture can mean.

In your opinion, could China’s decision to purchase Superjet planes be viewed as a gesture of support following a series of sanctions imposed by the West against Moscow over the Ukraine issue?

It is possible that the timing might have been meant to do that, but, of course, China has seen a series of these deals over the past few years, even going back to the post-Tiananmen sanctions. So, for two decades the Chinese got their best aviation technology, particularly the engines, from Russia. The fact that they are buying these planes is not surprising. I mean, Russia makes very good airplanes. And the Chinese, although they’ve made progress in many high technology areas, still can’t make a top-of-the-line jet engine.

Are there chances for Russian Sukhoi Superjet planes to compete with other major plane-makers?

I think that’s the intent. My understanding is that it is designed to appeal to countries that want a very good plane, but don’t want to pay the price premium that would come for buying a US or a European plane. Maybe you get 90-95% of their capabilities at a third of the price. So, it hitsthat nice, sweet point for many countries. And we are seeing this in a military technology as well.

Could this deal between Russian and Chinese manufacturers mean that Moscow is switching over to the eastern market?

Well, Russia has been trying to do that generally for a while. As you know, for historical reasons the Russian economic links were directed primarily towards the former Soviet republics, to the south and then to the European markets. The Russian policy makers have tried to diversify that, as have the Americans and even the Europeans. We see the opportunities in Asia, very dynamic economies, fast growing markets, large population. So,people are naturally trying to go there. And it makes sense for Russia to try and develop, especially beyond selling oil and gas, try and sell aviation, components and other items to that market.
Read more: The fact Chinese are buying Superjets not surprising, Russians make good engines - expert - News - Economy - The Voice of Russia: News, Breaking news, Politics, Economics, Business, Russia, International current events, Expert opinion, podcasts, Video

[RussiaPrussia]

Good thread, keep it up

make it sticky plz

[Graham]

make it sticky plz

Done if you want anything else sticked. Just ask.

[RussiaPrussia]

London Live: Russian businessmen launch capital – dedicated TV Channel
Published time: March 31, 2014 14:43
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Russian entrepreneurs Alexander Lebedev and his son Evgeny, the owners of Evening Standard and Independent newspapers have launched a new 24 hour TV channel for London on Monday. The businessmen plan to invest 15 million pounds annually.

The Lebedevs' plan the channel will pay for itself in 3 years, as it’s expected to be generating about $25 million in annual revenue. The owner of the Russian newspaper “Novaya Gazeta”, ranked 164th in Forbes’ Richest people in Russia list, aims to raise revenue from ad sales. The channel will be broadcast on Freeview, Sky and Virgin Media providers, the Guardian says.

The channel is run by ESTV Limited part of the Evening Standard media group belonging to Evgeny Lebedev. The group publishes the London Evening Standard newspaper, and Alexander Lebedev and his son Evgeny also own the Independent Print media company.




Evgeny Lebedev (Reuters/Dylan Martinez)



The potential audience of the channel could be as many as 9 million, and programming will cover a variety of events and activities happening in the capital.

"London's a great city that has so much to offer as far as culture, art, theatre music, sport," the Guardian quotes his interview on the BBC's Andrew Marr Show.

Stefano Hatfield, editorial director of London Live, said: "The biggest thing is that once people see it they will wonder why they didn't have it before. Cities like New York and Toronto have dedicated TV channels; many cities do. It is crazy that London hasn't before now. There are so many stories in the capital and broadcasters like ITV and the BBC just don't have the time to do them all properly."

A month ago the Lebedevs won the right of start a new TV channel in the British capital. The license was granted to broadcast to London's four million homes for a period of 12 years.

There were four other applicants, including the former mayoral candidate Steven Norris and the former head of Channel 4 Luke Johnson.

The managing director of the Evening Standard and Independent Andrew Mullins in an interview with the BBC said the channel would broadcast 18 hours a day. Programs will be devoted generally to the current events in the British capital, and also culture, art and sports.

"People are interested more in what occurs near them", Mullins remarked.

He added that he doesn't expect a profit in the first years as "it is very difficult to provide the high income from advertising, considering the advantage of the big players", he explained.


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[RussiaPrussia]

Russia, North Korea Agree to Settle Payments in Rubles in Trade Pact | Business | RIA Novosti

Russia, North Korea Agree to Settle Payments in Rubles in Trade Pact

© jul_st
15:40 28/03/2014


Tags: ruble, Far East Development Ministry, North Korea, Russia
MOSCOW, March 28 (RIA Novosti) - Russia and North Korea have signed a new protocol to transition to using the ruble for payments between the two countries as part of an effort to boost annual bilateral trade to $1 billion by 2020, Russia's Far East Development Ministry said Friday.

The announcement came as Russian officials have expressed a desire to explore new markets for the country's businesses, following the introduction of sanctions by the West in reaction to Moscow's stance over Crimea. Russian leaders have simultaneously reassured international investors the country remains open for business, and there are no plans to restrict international commerce.

The protocol announced Friday came following a visit of a Russian delegation to the Asian country for a meeting of a standing bilateral commission, timed to mark the 65th anniversary of a cooperation agreement between the Soviet Union and North Korea.

The parties agreed to move towards settling payments in rubles as well as adopting further measures to boost bilateral trade, including easing visa procedures and providing for Russian access to proposed special economic zones in the country, the ministry's statement said.

The ministry reaffirmed the countries' mutual interest in joint projects with South Korea, including international connections for railways, gas pipelines and power lines.

The Russian delegation also proposed the entry of Russian businesses into the Kaesong Industrial Park, a special economic zone in North Korea just north of Seoul where South Korean companies are allowed to employ northern workers.

The two sides identified areas for further cooperation, including a transshipment complex at the port of Rason and technical cooperation for the modernization of North Korea's mining sector, automobile industry and electric power plants.

According to the statement, during the talks Russian Far East Development Minister Alexander Galushka emphasized that achieving such goals would only be possible if stability is maintained on the Korean peninsula.

The next meeting of the bilateral commission is scheduled for June in Russia's far eastern Vladivostok.
[media=youtube]IxbtXpgvRao[/media]

[RussiaPrussia]

Do Russians need to prepare for hunger? - English pravda.ru
31.03.2014


Will Russia face a threat of famine if food imports fall, given that over the last 20 years the agricultural production has decreased? The situation around Ukraine and the threat of tougher sanctions reiterated by Europe and the United States made the Government of Russia consider food safety issues at the meeting on March 27.

In recent years, a stereotype has formed that Russia is completely dependent on food imports. This was true for the presidency of Boris Yeltsin then, in the 1990s, the country's dependence on the main types of food was 50-70 percent. In the event of unforeseen complications it posed a threat of food collapse, and, of course, was taken into account by Western politicians as a tool of potential threats and pressure on the Russian leadership.

The situation began to change in mid-2000s. By 2010, the government policy began to take a meaningful and systematic shape, as stated in the Food Security Doctrine. The specific criteria includes domestic products of eight kinds, including food grain, sugar, vegetable oil, meat and meat products, milk and dairy products, fish products, potatoes, and salt. The baseline indicators also include physical and economic accessibility of quality food for the population.

Here is the result: in 1995, food imports accounted for almost 30 percent compared to estimated 13 percent in 2013 at approximately $40 billion. Food worth about three billion was imported from CIS countries that are unlikely to join the proposed sanctions. $11 billion worth of goods are imported from developing countries. These are products that cannot be grown or produced in Russia - coffee, tea, citrus fruits, bananas and so on.

Russia today is fully covered by domestic production for flour, pasta, and sugar, 85-90 percent for vegetable oil, canned meat and confectionery. 50 percent of milk and dairy products are covered by the allied brotherly Belarus. Germany supplies 12 percent, and Finland - 8 percent of dairy.

So far Russia has a vulnerable position in terms of fish (40 percent of import comes from Norway), meat and milk. However, these types of supplies from the regions controlled by the U.S. and its allies amount to 15-17 percent. Purchases of poultry, beef and pork from the United States almost completely stopped due to increased domestic production and re-orientation towards the South American markets.

Generally, to ensure complete independence from imports, Russia needs to additionally produce and grow cattle for meat worth $2.5 dollars, fish and fish products worth $2.5 billion, dairy products worth $1 billion, apples and pears worth $1 billion, or $7 billion it total.

Judging by the numbers presented at the meeting, Russian agriculture is steadily increasing its potential. The most problematic kind of food is meat and meat products whose production last year amounted to 5.2 million tons, an increase of 10 percent. This has reduced imports of meat by almost 10 percent, leaving many American farmers without work. The production of dairy products and butter has increased. According to the Minister of Agriculture of Russia Nikolai Fyodorov, overall food production index was at 102.3 percent.

Russia will not face a threat of famine if the U.S. and the EU try to freeze the food supply to Russia.

There will be certain difficulties with exotic fruit, wine, expensive seafood, and meat delicacies, but Russia today is self-sufficient not only in the foreign policy, but also in terms of its ability to feed itself. Russia produces 60 to 90 percent of all required food.

The increase in the production of food remains a strategic goal. In the next five years Russia needs to not only become fully independent from food imports, but become the world's largest food exporter.

Yuri Skidanov

[RussiaPrussia]

Bridgestone to Build Passenger Car Tire Plant in RussiaNew Facility will Meet Growing Demand in Russia and the Commonwealth of Independent States (CIS)*

2013/04/12

Tokyo (April 12, 2013) - Bridgestone Corporation today announced plans to build a passenger car radial tire plant in the Zavolzhye Industrial Zone in Ulyanovsk Oblast, Russia. On April 12, Bridgestone concluded an investment contract with co-investor Mitsubishi Corporation and with the Ulyanovsk Oblast government and Ulyanovsk Region Development Corporation. The new facility will be Bridgestone's first tire plant in the Russia/CIS region.
The plant will be operated by Bridgestone Tire Manufacturing C.I.S. LLC (BMCIS), a tire manufacturing company jointly established by Bridgestone Corporation and Mitsubishi Corporation. Bridgestone Corporation will have 90% equity ownership, and Mitsubishi Corporation will have 10%. Total investment by both companies in the project will approximately ¥37.5 billion (RUB 12.5 billion), and production is scheduled to begin in the first half of 2016. Production items will be strategic products centered on winter tires for Russia/CIS market. Production capacity is estimated to reach approximately 12,000 units a day by the second half of 2018.
The Russia/CIS region is a large market with a population of approximately 300 million. New vehicle sales in the region have shown strong growth, and demand for tires is expected to increase in the future. Bridgestone is building this new plant in order to meet this demand growth with local production. The Bridgestone Group has previously taken steps to further develop its operations in the region, such as expanding the Pole Position retail channel network. The construction of this new plant will enable the Group to be closer to the market, and supply our products to our customers in a timely manner.
In conjunction with the establishment of the tire manufacturing company, Mitsubishi Corporation will take an equity position in Bridgestone C.I.S. LLC (BSCIS), a sales company established in Moscow by Bridgestone. As a result, Bridgestone Corporation will have 80% equity ownership, and Mitsubishi Corporation will have 20%, and BSCIS will have capital of about ¥1.8 billion (RUB 600,592,730).
Moving forward, the Bridgestone Group will continue building a global production system that quickly responds to changes in market demand, while providing high quality products and services to its customers.
*CIS: Commonwealth of Independent States. An organization of states formed by former Soviet Republics following the breakup of the Soviet Union.

<Overview of New Manufacturing Company: BMCIS>

1. Company name	:Bridgestone Tire Manufacturing C.I.S. LLC
2. Location	:Zavolzhye Industrial Zone in Ulyanovsk Oblast (about 900 km east-southeast of Moscow)
3. Site area	:Approximately 81 hectares
4. Products	assenger car radial tires
5. Establishment	:First half of 2013 (planned)
6. Start of operation	:First half of 2016 (planned)
7. Ownership	:Bridgestone Corporation - 90%Mitsubishi Corporation 　- 10%
8. Number of employees	:Approximately 800 employees (planned for second half of 2018)
9. Production capacity	:Approximately 12,000 tires / day(planned for second half of 2018)

<Overview of Sales Company: BSCIS>

1.Company name	:Bridgestone C.I.S. LLC
2. Location	:Moscow City
3. Establishment	:1998
4. Ownership(after the investment by Mitsubishi Corporation)	:Bridgestone Corporation - 80%Mitsubishi Corporation 　- 20%
5. Representative	:Yoshiaki Hiraishi

About Bridgestone Corporation:
Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.

http://www.bridgestone.com/corporate...013041201.html

http://translate.yandex.com/translat..._6053961.shtml

Bridgestone will build its first factory in Russia for 12.5 billion roubles

01.04.2014, 20:24 | «Газета.Ru»


The Japanese company Bridgestone began the construction of its first Russian plant, informs ITAR-TASS.
Japanese Bridgestone Corporation today began the construction of a plant for production of automobile tires in the territory of the industrial zone «Zavolzhje» in the Ulyanovsk region.
Total investment in the first production in Russia will amount to about 12.5 billion rubles