Contents tagged with Economy of Russia
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Russian ex-Finance Minister says investments in Russia fell by 7 times
The former head of the Russia Ministry of Finance and head of the Center for Strategic Research, Alexei Kudrin, said that in the recent years, including the period after the introduction of sanctions, direct foreign investment in the Russian economy declined sevenfold. Kudrin discussed this issue during the Moscow Exchange Forum 2017 in New York, RBC news agency reports.
"Foreign direct investment in our country used to reach 70 billion dollars a year before the crisis of 2009 and immediately …
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Net capital outflow from Russia has grown more than 1.5 times
In the first half of 2017, net capital outflow from Russia increased 1.7-fold to $14.7 billion, compared to $8.6 billion during the same period in 2016, as indicated in the data published on the official website of the Bank of Russia.
Analysts of the Central Bank explained that this trend is caused by activity in the banking sector connected to increases in residential customer accounts in early 2017, as well as the banks’ repayment of external debt obligations.
"Other sectors that saw some …
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Russia is in the top 5 of the world's largest shadow economies
According to a report by the International Association of Chartered Certified Accountants (ACCA), Russia is in the top five countries with the largest shadow economies. There are 28 countries included in the rating.
Russia has the highest a shadow economy index, almost 84% higher than the world average. The volume of its shadow economy is estimated at 33.6 trillion rubles, or 39% of the country's GDP. According to the experts, the situation is worse only in Ukraine (46% of GDP), Nigeria (48% …
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Russian analyst: The ruble will continue to fall
The payment of the mineral extraction tax in Russia was completed, and at the same time the ruble stopped gaining strength, which again turned out to be “in the hands of geopolitics and oil quotations,” stated analyst for the eToro investor social network in Russia and the CIS, Mikhail Mashchenko.
As of 17:46 Moscow time, the dollar rate calculation for “tomorrow” added 16 cents to the previous close and reached 58.9325 rubles. At the same time, the rate of the euro rose almost 81 kopecks to 66 …
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Experts say Russian regions are rapidly becoming poorer
The growth of the Russian economy for the last three fiscal quarters at the federal level, which Rosstat (Russian Federal State Statistics Service) has been reporting about, is still not visible in most regions, Rosbalt.ru news website writes citing experts from Russia’s National Research University Higher School of Economics.
As reported in "Comments on the State and Business," nearly 60% of the territories of the Russian Federation are in a recession. This is the second month in a row that …
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Net outflow of capital from Russia more than doubled from January to May
According to the Central Bank of Russia, the net capital outflow from Russia increased by 120% in January-May 2017, reaching $22.4 billion as compared to $10.3 billion in the same period last year, according to preliminary estimates.
"Since the beginning of the year, the net outflow of capital by the private sector, according to preliminary data, has risen to $22.4 billion, as compared to $10.3 billion the year prior," the regulator's survey notes.
As the Central Bank explained, "the …
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Crimean Political Scientist: Construction of the Kerch Bridge will not change anything
According to associated professor at Tavrida National University and Crimean political scientist Yevhen Goryunov, the construction of the Kerch Bridge will not change the economic situation of the annexed Crimean peninsula, as stated by him during the telethon “Crimea. Three years of resistance.”
According to him, if the Kerch Bridge is finished, it will not bring any benefits to the peninsula due to the economic situation in neighboring Russia.
“If it [the Kerch Bridge] will be completed, I …
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Non-oil-and-gas exports from Russia fell to a seven year low
The Russian export of goods excluding oil, gas, and oil products decreased by another 10% in 2016, as reported by the Central Bank of Russia.
Despite the authorities' statements about success in the development of non-mining sectors of the economy, the volume of non-oil exports totaled $128.3 billion, the lowest since 2009.
According to the Federal Customs Service of Russia, over the past 11 months the export of machinery fell by 1.5%, mechanical equipment by 29%, chemical products by 23.7%, …
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Capital outflow from Russia intensifies
Capital outflow from Russia continues unabated. According to the Central Bank of Russia, the total remittances of individuals into other countries amounted to USD 6.2 billion in the third quarter for a total of USD 18.5 billion since the start of the year. In comparison, private individuals had withdrawn 18.57 billion dollars during the entire 2015.
Switzerland remains the most popular country for Russians to keep money. In the third quarter of 2016, 984 million dollars were transferred there …
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Putin’s advisor: The state of the Russian economy 'is like a heart attack'
Russian Presidential Advisor Sergey Glazyev compared the state of the economy to a heart attack. He said this speaking at “The trap of the new normal” forum at the Financial University.
“This was easy to foresee, and we have already talked about this. As soon as monetary authorities opted for the floating exchange rate of the ruble, immediately we got a spike in devaluation, inflationary shock, from which we still cannot recover. And our macroeconomic system is similar to a patient with a …