Russian Economy/Finance : News and Discussion

[AustinJ]

Thanks , I think what matters is not just proven reserves but if it is economical to drill in to extract those known reserves .....i read thats the key to oil extraction , how much does one invest versus how much one gets in return.

The cheapest to dig is in Gulf region where its like few ten dollars , the most expensive is Arctic where its like $300 for the same task due to complexity of environment.

I also read that Saudi Oil reserves are greatly inflated and they are really not that big as they are suppose to be.

[Flamming_Python]

Eurassec hold one great promise for future

EurAsEC trade turnover goes up

Indeed, I think that the best potential for added Russian growth, on the one hand, comes from integration into the WTO - if we do everything properly with a transition period where we protect fragile industries, etc... we can easily see the equivelent of +1% economic growth per year.

The other potential comes from our Customs Union with Belarus and Kazakhstan, the Eurasian Economic Union and post-Soviet integration processes in general:

- Restructuring Belarus's economy with Russian investment would give a considerable boost to Russian Western regions as well, and would benefit everyone
- Including the Ukraine into the Customs or Economic union as a stable partner which doesn't meander around, will open up a wealth of joint ventures and possibilities in space technology, defense industry, nuclear tech, shipbuilding, aircraft & engine manufacture, metallurgy, agriculture, chemical goods, coal production, etc...
- The industrialisation of Central Asia. Kazakhstan is fast proving as a very valuable economic partner and one that is rapidly developing; this gives a big boost to the development of Russia's bordering regions too as Kazakhstan's wealth is mainly concentrated in its north. If we can repeat Kazakhstan's success with Kyrgyzstan, Tajikistan, Uzbekistan, then we would benefit greatly, particularly if the human potential is developed there too and we start getting Central Asian educated specialists and proffessionals working in the Russian economy or nearby, like we do with the Kazakhs.

[AustinJ]

Well Ukraine is more keen to join EU then to join Eurassec ......This country can make a big difference if it chooses to join Eurassec

[AustinJ]

Russia does have all potential to grow around 6-7% annually over the next decade; but is held back by its own problems, unfriendly reputation, biased legal system, less than ideal environment for business, lack of guarantees to smaller investors, continued problems for small and medium sized businesses, poor and corrupt governence in several regions, excessive bureaucracy, visa troubles for foreigners, and several other issues. The fact that Russia compares favourably with Eastern Europe is more an indication of their failures and systemic problems, rather than the successes of Russia and its economic model.

Thats true , Thats what most analyst say the reasons mentioned above is holding Russian growth and this is something they have to solve on their own.

[AustinJ]

The future of Russian oil reserves

Actual definitive figures of Russian oil reserves vary depending on who you ask, but estimates range from 70-150 billion barrels. In comparison, Saudi Arabia - arguably the holder of the largest reserves in the world - has approximately 260 billion barrels. However, the Russian government believe that there still may be undiscovered reserves in Eastern Siberia with the potential of containing another 68 billion barrels.

[Grax]

Well Ukraine is more keen to join EU then to join Eurassec ......This country can make a big difference if it chooses to join Eurassec

Will see, at least the president is no more anti Russian a big scandal erupted with the EU, the outcome can't be bad for Russia.

[sepheronx]

Well Ukraine is more keen to join EU then to join Eurassec ......This country can make a big difference if it chooses to join Eurassec

Will probably happen as Ukraine is a big liability now then ever for EU, and after dealing with Greece and Portugal , might be more cautious allowing Ukraine in. But when it comes to Russia and allowing Ukraine to enter customs union, there will be big noise coming from the Western part of Ukraine where it is nationalist sector. Ukraine is destined for self destruction at this point.

@ART: sorry, I misread what you typed.

For the idea of free trade: as long as Russia is still allowed to place larger import tax, then there shouldn't be a problem. As the higher import tax can mean more investment into the country for development there. Free trade could also give Russian products the option to deal in countries they couldn't deal in for a long time.

[artjomh]

Higher tariffs and free trade.

I am not sure you understand what the **** you're talking about...

[pocoloco]

Keen to hear what kind of free trade Seph is referring to as well.

[sepheronx]

Keen to hear what kind of free trade Seph is referring to as well.

France is part of the free trade yet have a higher import duty to protect French firms.

Free trade should apply when countries are trading assets that are manufactured in both countries. Much like Canada's autopact and selling same vehicles to USA while they sell same models back to us (made in USA). Does not bode well if Russia has to import everything with little incentive to domestic market due to Russia's civil market is quite young and relatively uncompetitive on the open market plus may not meet the other free trade nation requirements.

[AustinJ]

So Russia will maintain its monopoly on Gas supplies to Europe with its Nord and South Stream ?

Nabucco gas project may be dropped

The project to lay the 3,300 kilometre-long Nabucco gas pipeline from the Caspian Sea region to the EU countries bypassing Russia may be dropped for good by late June.


This came in a statement by the business circles of the City of London.


The Nabucco project was thought up by the CEOs of the Hungarian and Bulgarian energy companies in autumn 2002 during a dinner in Vienna to music from Verdi’s opera of the same name, and was due to be commissioned in 2014.


According to experts, the fiasco of the project was predetermined by some drastic changes on the world gas market.
A number of world energy giants, including BP, have, besides, pulled out of the project.


The EU has seen Nabucco as an alternative to gas transportation to Europe via Russia.

[AustinJ]

Putin recently stated that government will only buy local cars for official use and not imported ones , does that mean they will just use Lada ?

[AustinJ]

What ever happened to Yo-Mobil Hybrid car they launched last year , Did it manage to get sales and is the project on track ?

[Mousepad]

Putin recently stated that government will only buy local cars for official use and not imported ones , does that mean they will just use Lada ?

I think it includes assembled in Russia too, Toyota Camry, Merc E-classe, BWM - 5 series, Ford Focus etc.

[sepheronx]

What ever happened to Yo-Mobil Hybrid car they launched last year , Did it manage to get sales and is the project on track ?

I thought it was still work in progress? So far, only seen prototype in car shows.

As for your questions, mousepad is correct. Until Zil produces new limo, they wont go for lada for government vehicles. Lada is low class