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18.05.2010, 18:50 5 comments

Basis of Eurozone was fragile – European MP

The Eurozone is facing its biggest challenge to date as the currency crumbles under the weight of Greece's fiscal crisis.

RIA Novosti / Maxim Bogodvid, STF 18.05.2010, 16:37

Central Bank to issue 5kg gold coin

The Russian Central Bank has announced that it will issue a 5-kilogragm cold coin in honor of the 150 anniversary of the Bank of Russia.

18.05.2010, 17:19

Sberbank opens up investment into Ukraine

Russia’s biggest bank, Sberbank, has removed limits for its subsidiaries financing projects in Ukraine. The bank is also planning some of its own investment into the country.

16.08.2010, 18:36

Time to focus on savings

The need for greater levels of national savings is coming into focus, with experts saying low income levels, an undeveloped financial system, and long term cultural issues remain key issues to be addressed.

15.01.2010, 11:56 2 comments

End of U.S. poultry imports leaves onus domestic producers

Russia will end poultry imports from the USA as of January 19 due to health concerns, with Prime Minister Vladimir Putin saying local producers can fill domestic demand and even start exporting poultry within 4 years.

09.02.2010, 17:03 2 comments

President looks for financial markets to underpin economic development

President Dmitry Medvedev has directed participants at the Council for Financial Market Development to create a development road map, emphasizing the role of financial markets in supporting economic development.

15.12.2009, 22:29 1 comment

Ukraine waits on IMF bailout funds

Debt-laden Ukraine is waiting for an answer from the International Monetary Fund. The country has asked the lender to release the final, $2 billion dollar tranche of a massive bailout loan.

25.01.2010, 11:40 1 comment

Wine sellers furious over sudden change in customs legislation

Wine merchants in Russia could lose $400 million in 1Q 2010, after the customs service changed their import duties, driving up business costs by as much as 30%.

18.03.2010, 11:05 1 comment

Russia to power into global carbon trading market

Russia could gain 10% of the global carbon trading market in the next 3-4 years. But the need to invest in environmental projects and a forest of red tape is slowing he process.

16.09.2009, 14:53

Russia’s year in the wake of Lehman Brothers

It’s a year ago this week that the global financial circulation system had its closest near death experience in a generation. That saw a chain of events which haven’t left Russia unscathed.

Russia looking to avoid worst of economic downturn

Published: 19 May, 2010, 11:44
Edited: 16 October, 2010, 14:49


A volatile Eurozone sees Russia with almost no exposure to national debt, but with markets pricing in a wider contagion, Russia would be affected by a return to recession.

 
4 COMMENTS
Maria Kuznetsova May 19, 2010, 15:15 quote
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I think that difficulties in some European countries slowing down an exchange in the financial flow. Posibly, at this point of time, economies of this countries would benefit from the trading of the goods that "cheap and chearfull", and that is attractive for the bigger ammount of population who is most afected by the crises an lose of their jobs. Famouse "99 pence" stores are great input to the economies! And small buisnesses in food sector too! Maria Kuznetsova

Riley May 19, 2010, 16:10 quote
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History of economics can be a wonderful guide. In focusing on this part of a foundation, Russia is quite unique. Mr. Putin and Mr. Mevedev have actually put into action many Good things resulting in positive happenings. It should always be remembered that Good things take time and bad things can happen quickly. As an example in the “Western World” we all saw what Naked Short Selling was allowed to do in their financial markets a couple of years ago. To the point, Russia probably is the only Country that has everything needed for a sound economy. You have a complete inventory of natural resources and people who are hard workers. Can anyone imagine as only one example once Mr. Putin and Mr. Medvedev modernize the Motor Vehicle situation (cars, trucks, motorcycles, motor scooters, etc.)? An idealistic situation is your Country's population alone would be able to support such a situation. This would include the natural resources needed, all from within your Country, the designing and manufacturing of such vehicles in your Country, the purchasing and financing of such vehicles in your Country, the Power source (gasoline, diesel, electric, or other proprietary protected methods) all from your Country of Russia. I am a “nobody” but can anyone imagine the potential growth of Russia in a Good way in the next ten years and on? The only thing that may be needed is careful monitoring, as Russia sells its natural resources to others and accepting only their "paper money".

Alex Stone May 21, 2010, 11:08 quote
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The seeds for a sound Russian economic structure were sown 10 years ago, and now that effort is bearing good fruit for now and the future. The economic protection of solid assets in reserve are the cornerstone of any decent economy, and Vladimir Putin's determination to pay off national debts, and build a large reserve have protected Russia from the worst ravages of the current global crisis. Maria, you're right that Russia is selfcontained with a mix of natural resources, and ever increasing standards of technology, and manufactured goods. It's worth remembering that Russia is a new democracy, and the country has no history of democracy, so it'll take time to develop, in the Russia "way". As a briton living in Russia, i'd rather live here than in Britain, as the vibrancy and spirit of Russians is undimmed by years and years of onslaught by foreign "lifestyle" commodities. The same can not be said for Britain, and britons would do well to take a leaf from the book of Russian life. The future's looking bright for Russia, and i wish all its citizens good health, and happiness. Changing your political and economic systems almost overnight is a massive task for any country to take on, and even with some challenges along the way, it's my opinion Russia has done this successfully. The recent decision by Angel Merkel to ban short selling (a criminal activity disguised as financial creativity) is the start of a change across Europe, and i would hope the Russian government continue their strong monitoring of these financial weapons, and crush them as soon as possible. The attacks on the Euro and Rouble will continue from wall street and the city of london, we all know that, but i think it's time for Russian and Central Asian companies to switch from selling oil and commodities in dollars, to Euros, and Roubles. This move alone will fundamentally change the position of currencies in the world, and put more power back in the hands of those currency owners.

Bianca October 15, 2010, 22:22 quote
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One thing is very sure. Global economies are decoupling from each other, as the first crisis meeting in London that pushed the world to STIMULATE created only deepening crisis. In Europe, battle cry to "stimulate" resulted in each government adding to its sovereign debt as a result. Then the same Wall Street banks that urged the world to "stimulate" turned in shock and horror by "discovering" increased sovereign debt burden in Europe. Greece was the selected target (could have been Ireland, Portugal, Italy or Spain), as it was the least politically tricky to attack. Europe and Euro had to come up with the massive standby guarantees, provided Greece does not deepen the debt any more. But, what if another country is "picked" and the same scenario is repeated? Germany led this time with sane solution: reverse stimulus, and begin cutbacks. So, while one side of Atlantic is continuing "quantitative easing", the other is tighening. Resource-rich countries on the other hand, need to worry about loosing markets, even if crisis pushes commodities prices up. China, in a class by itself, need to gradually prick the baloon of its huge dollar reserves, by spending them --- such as Greece's commercial port, shipping industry, tourism. Or buying worldwide hard assets. Russia, that still depends on commodities, needs to be prepared for reduction in revenue. This can be ONLY compensated by fast increase in small to mid scale manufacturing of products that are currently being imported. Primarily, increase is needed in processed foods, household goods, domestic construction materials and the massive increase in urban construction. Cars industry will not keep Russia afloat, as it depends on banks giving credits to purchasers, and any increase in indebteness is risky. The prolonged crisis can bring about even further erosion of incomes, so consumer lending is on shaky ground. However, increase in the real economy creates goods at "real' prices.

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