Category: Russia

Weak Ruble Strengthens Dollar as Russia Bear Market Accelerates

Russian politicians admit as much as $120 billion could flee Russia as the stock market and ruble decline amidst Russia’s push into Crimea and growing sanctions from the United States and the European Union.

Deputy Economy Minster Alexey Vedev said last week that $120 billion could flee the Russian economy after the Crimea invasion in early 2014 brought cross-border trade with the European Union to a grinding halt. At the same time, Russian stocks have fallen over 20% and the Russian currency, the ruble, has fallen nearly 17% against the U.S. dollar in 2014. 

Russian economy could be out billions with pension fund freeze

For the second consecutive year, the Russian government have agreed upon a decision to freeze the amount of pension contributions that are allowed for investment. A response given by the ministry of social protection and labor suggested that the funds would be utilized to finance current pension payments instead. Contributions for last year, (2013) equaled approximately 550 billion rubles, which equates to about $15.2 billion.

Could the Russian Economy be on the Verge of Collapse?

Experts in the economy suggest that Russia could be in serious trouble. Ten months ago, before anyone ever imagined that the president, Vladimir Putin, might begin to stir up unrest within the eastern end of Ukraine, or invade Crimea, an individual known as the oligarch (a term which means business magnate), expressed that he was feeling a significant deal of concern in regard to Russian’s economic standing.

Russia Extends Deadline For Ukraine To Reach Gas Deal

Russia and Ukraine are set to resume talks today to resolve a dispute over natural gas prices, despite already missing a deadline for Kiev to pay off some its debts without Moscow cutting off supplies.

On Tuesday, eight hours of negotiations in Brussels failed to overcome differences over pricing, but Moscow agreed not to cut off gas to Kiev just yet, with further talks scheduled.

Russia-China Sign $400 Billion Natural Gas Deal

After decades of negotiation, Russia and China on Wednesday finally signed a $400 billion natural gas deal, which will Russian state gas giant Gazprom provide a trillion cubic metres in gas to the world’s second largest economy over 30 years.

The deal was announced after meetings in Shanghai between presidents Vladimir Putin and Xi Jinping, marking a significant shift in economic relations for Russia from the west to the east.

Putin called the deal a “watershed event” and said implementation would start “tomorrow.”

Russia Invested $200 Billion In Ukraine Over 20 Years, Claims Minister

The Russian government has poured over $200 billion in loans and economic aid into Ukraine over the last 20 years, claimed Minister of Economic Development Alexei Ulyukaev on Monday, emphasising why Russia has shown such strong interest in the future of Ukraine.

“Perhaps our European and US friends don’t understand that we supported the Ukrainian economy,” the minister said in an interview with RT News.

US To Cut Off Russia’s Trade Concessions

The United States has decided to cancel all trade benefits extended to Russia under its Generalized System of Preferences (GSP) scheme – that been designed to help developing countries grow their economies by lowering tariffs for exports to the U.S.

Russia, Iran In Talks To Sign $10 Billion Energy Deal

Russia and Iran held talks over the weekend regarding $10 billion worth of electricity deals, reported the New York Times, seeking to establish a closer partnership to undercut the efficacy of sanctions imposed on both nations by the U.S..

Under the proposed deal, the Russians could export up to 500 megawatts of electricity to Iran and construct new thermal and hydroelectric generating plants and a transmission network.