A new report published by the World Bank predicts that capital outflow from Russia will ascend to $113 billion in 2015 and $82 billion in 2016. The report also lowered its forecast for the decline in Russian GDP in 2015 and 2016. The bank now believes that the Russian economy will retract by 3.8 percent…
The Russian ministers of economy and energy have stated their opposition to an increase in taxes on hydrocarbons. The statements came Wednesday after Russian Finance Minister Anton Siluanov presented a plan to raise taxes on all oil and gas development with the intention of using the funds to bolster the struggling Russian economy. An increase,…
The Financial Times profiles a recent proposal made by Russian Prime Minister Dmitry Medvedev to formulate yearly budgets every year as opposed to the traditional three years. The government’s official reasoning is that fluctuating oil prices make economic planning difficult. The real reason, according to the FT is that Russia is concerned about a looming…
Russia has rejected a deal with OPEC to curb oil outputs, even after prices hit their new lows last week – Deputy Prime Minister Dvorachek and Rosneft CEO Igor Sechin said. Speculation that some kind of deal would occur has caused oil futures to rise somewhat on the hope. Apparently OPEC proposed that Russia become…
The Russian consumer protection service is reportedly instructing Russian retailers to stop selling consumer products from Western companies such as Procter & Gamble, Henkel, Colgate-Palmolive and Clorox. The official reason given by the Russian consumer service is that there are lingering safety concerns related to the companies’ soap, cosmetics and other products, although it seems likely…
China’s recent 1.8% devaluation of the yuang triggered a 2.3% drop in the Russian ruble and lowered the global price of oil to below $50 a barrel. The devaluation has worsened the value of the slumping ruble, the results of which have been described in mixed terms by China-Russia analysts. While some allege that the immediate impact…
The Central Bank of Russia cut interest rates again last week, declining to further comment on additional economic easing to any sources, taking rates from 11.5% to 11% from its high of 17% earlier this year. The continuation of easing suggests that the CBR is attempting to pick up the flagging economy without letting inflation…
Russia has announced via Prime Minister Dimitry Medvedev that Kiev will not be allowed to sign any additional natural gas delivery deals from Gazprom, the state gas company, saying that “we won’t extend a transit contract with Ukraine on disadvantageous terms.” The current agreement lasts through 2020, but consistent disagreements and renegotiations on payments have…
According to new data, Russia has surpassed Saudi Arabia as the chief supplier of crude oil, in what was considered an unlikely outcome for the battle over market share since oil prices took a tumble last year. The Chinese data, released by the General Administration of Customs, said that some 927,000 barrels per day were…
As EU Leaders mull the passage or extension of its sanctions against Russian leaders and upper class, an economic aide in the Kremlin said that the Russian government is considering additional measures that can be taken in response, in addition to the already-in-place ban on Western food imports and travel bans on European officials. Either…
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