Economy

Russian Ruble Devaluation March 2014

Written by

The Russian ruble has hit five-year lows against the Central Bank’s foreign currency basket of dollars and euros – a politically worrying trend for the Kremlin because of the accompanying rise in the cost of living.

As for March 13, it stands at 36.45 against the dollar and 50.80 against the euro, rates are even higher than in months of Russia’s 2008-2009 financial crisis; in February 2009 it was 35,81 against the dollar.

The growth since the beginning of January has been already more than 20%.

Picture shows the fluctuations of the Russian ruble since 1998 to March 2014.

 

Sources: www.bloomberg.com, www.dawn.com, www.cbr.ru

Russia is the world apple import leader

Written by

According to international experts, Russia is a world leader in the procurement of apples in the foreign market.

Last season, Russia accounted for about 15% of the world apple market. The second largest market for these products has performed in Germany, which accounted for 6% of the supply of apples. United Kingdom with a share of 6% rounds out the top 3.

Then go Netherlands (4%), Mexico (3%), Spain (3%), Egypt (3%), Canada (3%), France (2%), and India (2%).

It should be reminded that in season 2012-2013 Russia has imported 1.34 million tons of apples, which is 10% more than the previous season.

 

www.fruitinfo.ru

The growth of earnings in Russia is gradually yielding the inflation

Written by

In the year 2011, despite the weakening of crisis consequences, real salaries in Russia grow slower than in the year 2010, according to the information provided by the company “Ernst & Young”. The recruiting agencies remark that the salary growth will continue, but this growth will regard only the most effective and indispensable employees.

According to the research of “Ernst & Young” (E&Y), this year the salaries have grown, but less than last year. From July 2010 till June 2011 the average nominal salary growth has made 11%. Last year the growth rates were less—9.6%. However this year the salaries could get ahead the inflation only 1.6% (Last year this index was 3.9%).

Source: www.kommersant.ru

The number of poor people in Russia has returned to the crisis maximum

Written by

The income of about 15% of the Russians is lower than the living wage, defined by the Federal State Statistic Service (Rosstat). Herewith during the first half of the year 2011 the number of poor people in Russia has increased 2 million people and has reached the level close to the peak of the crisis.

The situation for the country, where the president will be elected in almost a year, seems to be paradoxical. According to the statistics published by Rosstat on Tuesday, the number of poor people in Russia—those whose income is lower than the living wage—has increased 2 million during the first half of the year 2011, and reached 21.1 million people.

The Rosstat experts explain that the number of poor people in Russia is largely due to the high growth rates of the consumer basket cost. In the second quarter of the year 2010 it was 5625 rubles, this year it is 6505 rubles per person a month.

In comparison with the first quarter of the year 2011 the minimum subsistence level has grown 0.5 %. Herewith the cost of food in the consumer basket has decreased 0.2 %, the cost of non-food goods and services has grown 1.7 % and 0.7 %,–informs Rosstat.

At the same time, according to the Russian Forbes, the number of multi-millionaires in Russia has increased by half. In Russia there are 200 businessmen—multi-millionaires. During the previous years there were about 100 people. The total wealth of 100 most rich people makes $432 milliard.

At the top of the list of the richest Russians there are owners of big metallurgical and oil companies. However, there are also 18 members of the Federal Assembly of the Russian Federation—10 deputies of the Russian Duma and 8 senators.

Source: www.kommersant.ru

Deputy finance minister Anton Siluanov will perform Alexey Kudrin’s duties

Written by

After the dismissal of Alexey Kudrin the finance minister’s duties will be performed by his deputy Anton Siluanov, and the financial and economic sector will be supervised by the first vice-prime minister Igor Shuvalov.

Siluanov controls intergovernmental fiscal relations, as well as financing of the military-industrial complex in the Ministry of Finance. He has been working as deputy finance minister from the year 2003.

Source: www.dp.ru

The Finance Minister Alexey Kudrin has been fired

Written by

The president of Russian Federation Dmitry Medvedev has fired the finance minister, vice prime-minister Alexey Kudrin. This is the most significant dismissal during the Dmitry Medvedev’s presidency. The reason was that Alexey Kudrin had announced that he wouldn’t like to work in the government that Dmitry Medvedev would form in May 2012, because he had some important disagreements, concerning expenditures on military ends.

Source: www.dp.ru

Deflation in Russia

Written by

In August 2011 consumer costs have deflated 0.2% for the first time in the last 6 years. This fact has decreased the index of annual inflation to 8.2%. The August deflation has become a suddenness for the money authorities and for the most part of analysts, that had forecasted the zero variation of prices in August and had expected the deflation in September .

The main reason is the landslide of prices for fruit and vegetables (16%). At the same time the average food prices have fallen in 1.4%. Prices for non-food goods and services have slightly increased: 0.5% and 0.3% respectively. However, some fundamental factors, such as retardation of economic growth and money supply, have influenced the reduction of inflation. If there won’t be any internal or external shocks, these factors will impose the tendency of the reduction of inflation.

There are not so many risks for the accelerating inflation in the medium-term perspective. The most important ones are increasing pre-election expenditures and large liquidity injecting to the Russian banking sector (in case of aggravation of problems in the banking sector of the European Community).

At the moment analysts are decreasing their inflationary forecasts for the year 2011 from 8% to 7.5%.

Source: www.kommersant.ru

The right to approve sanitary standards and rules has passed to Ministry of Health and Social Development

Written by

The President of the Russian Federation Dmitry Medvedev has signed a law cardinally changing the distribution of authority between the Ministry of Health of the Russian Federation and Rospotrebnadzor (Russian Federal Consumer Rights Protection and Human Health Control Service).

The head of Rospotrebnadzor Gennady Onischenko has lost the rights to approve new sanitary standards and rules. It means that from now on the most important Russian sanitary inspector can’t make such important decisions in the trade sphere as, for example, prohibition of deep-frozen poultry meat sale or import of vegetables from Europe.

From now on, the officials of the Ministry of Health and Social Development will coordinate the elaboration and enaction of new standards. At present, Rospotrebnadzor has only got the opportunity to give recommendations to the Ministry. By the way, the officials of the Ministry of Health and Social Development have already declared that they were going to review all the standards, approved by Rospotrebnadzor.

Sourse: www.fruitnews.ru

Almost 7 trillion rubles will be diverted to the development of the agro-industrial estate before the year 2020.

Written by

The Minister of Agriculture has promised that the amount of financing of the program of the development of the agro-industrial estate for the years 2013—2020 will make more than 6,7 trillion rubles, 2,1 trillion rubles from this sum will come from the state budget. For comparison: a little more than 1,4 trillion rubles were diverted for the program of the years 2008—2012, and only 0,6 trillion rubles from this sum came from the state budget.

According to the project of the state program, the development of the agro-industrial estate will be influenced by several factors: on the one hand, the measures for the improvement of the stability of the agricultural production will be noticeable, on the other hand the difficult macroeconomic situation caused by the consequences of the crisis will remain.

The Minister of Agriculture thinks, that the amount of agricultural production for the years 2013—2020 will grow 2,4—2,5% annually, and the amount of nutrition products will increase 4,3—5%. The higher rate will be for meat, milk and dairy products, fruit and vegetables. The realization of the state program will permit the increase of the relative weight of domestic food products.

Source: www.fruitnews.ru

Alexey Kudrin doesn’t believe in the fall of the Russian rouble

Written by

The favourable opinion of the Finance Minister of Russian Federation Alexey Kudrin regarding the economic perspectives of Russia has differed from the negative forecast of the Ministry of Economic Development and Trade, according to which the turns for the better in Russian Federation would start not earlier than in the year 2014, and the rouble would depreciate.

Alexey Kudrin has made a forecast that Russia would be able to “reduce to nothing” the budget balance already in the financial year 2011 … “We’ll have finished the specification of the forecast by the end of this week, but it seems that we are coming to the balanced zero budget”—the minister says.

Alexey Kudrin links the revision of the expectations with the dynamics of the oil prices. In particular the barrel of the oil Urals in the year 2011, according to his words, will cost not $105 (as the Ministry of Economic Development and Trade had forecasted), but it will be 3 dollars more expensive”. The minister has made his declaration after “Rosneft” had completed an agreement with the American petroleum company ExxonMobil , and the international rating agency “Standard & Poor’s” had confirmed the ratings of Russia in reference to the obligations in international and national currency and had given a stable forecast about them.

Source: www.dp.ru