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☆ Russia's Alfa Bank follows in VTB footsteps with record 2022 loss
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +2 min

Alfa Bank had made a net profit of 136.6 billion roubles in 2021, a record year for Russian banking sector profits. Provision costs for possible loan losses jumped about five times to 167.4 billion roubles, Alfa Bank's report said. However, net interest income rose to 211.7 billion roubles from 175.8 billion roubles in 2021 and Alfa Bank's assets increased to 5.82 trillion roubles, from 5.62 trillion roubles. Alfa Bank did not respond to a request for comment. Sanctioned Russian businessmen Mikhail Fridman and Petr Aven are in talks over selling their stake in Alfa Bank to their longtime business partner and its co-founder Andrei Kosogov.

☆ Russia's weekly consumer prices rise quickened in late March
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +2 min

MOSCOW, April 5 (Reuters) - The rise in Russia's weekly consumer prices quickened at the end of March, data from state statistics service Rosstat showed on Wednesday, with authorities still fighting to slow inflation. Russia's central bank held the key interest rate at 7.5% last month, maintaining a hawkish stance as a widening budget deficit and labour shortages pose ongoing inflationary risks. On Wednesday, Central Bank Deputy Governor Alexei Zabotkin maintained that hawkish signal, addressing the State Duma, Russia's lower house of parliament. Consumer prices rose 0.13% in the week to April 3, Rosstat said, compared with a 0.05% rise the previous week. Russia's annual inflation rate in 2022 was 11.9%, almost three times the official 4% target.

☆ Russia's VTB eyes rebound after sanctions-hit $7.7 bln loss
▼ + stars: | 2023-04-05 | by ( Elena Fabrichnaya | ) www.reuters.com time to read: +3 min

CEO Andrei Kostin has blamed the bank's losses squarely on Western sanctions against Russia's financial sector. VTB posted a net loss of 612.6 billion roubles ($7.73 billion), down from a record profit of 327.4 billion roubles in 2021. Provisioning costs increased 343.3% to 514.3 billion roubles and net interest income slumped 50.3% to 321.0 billion roubles. It purchased rival Otkritie for 340 billion roubles from Russia's central bank late last year and is planning a second additional share issue this quarter, in which it plans to raise 50-125 billion roubles. The disposal of those subsidiaries cost VTB 229 billion roubles before tax.

☆ Japan's Toyota hands St Petersburg plant over to Russian state
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

"Toyota's production site in St Petersburg has... been transferred to the state," Russia's Ministry of Industry and Trade said in a statement. The company said in September it had decided to stop vehicle production in Russia due to the interruption in supplies of key materials and parts. "Toyota confirms that it has concluded the transfer of its vehicle production plant to NAMI effective from March 31, 2023," Toyota said in a statement. Neither party disclosed a fee for the transaction, and Toyota declined to give any further details of the deal. NAMI, Russia's Central Automobile and Engine Research and Development Institute, has already taken plants from Renault and Nissan.

Humanity will prevail," Zelenskiy said, leading a ceremony at which the Ukrainian flag was raised in Bucha. Zelenskiy described Bucha as a "symbol of the atrocities" of Russian occupying forces. Fighting rages on in the east and south of Ukraine, where Russian forces hold swathes of territory captured after they invaded on Feb. 24, 2022. Ukrainian forces have dug in and held out for now in the city of Bakhmut and are expected to launch a counteroffensive soon. This is part of Russia's planned strategy to destroy Ukraine as a state and Ukrainians as a nation," he said.

☆ Russia says it may take over Toyota plant in St Petersburg -TASS
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

MOSCOW, March 16 (Reuters) - Japanese car maker Toyota's (7203.T) St Petersburg plant may be transferred to the Russian state entity NAMI, Russian Industry and Trade Minister Denis Manturov said on Thursday, according to the state-run TASS news agency. "The transfer of Toyota's Russian asets to NAMI is being considered," Manturov was quoted as saying on the sidelines of a business congress. A spokesperson for Toyota said on Friday it was considering what to do regarding the plant, after having already decided last year to end vehicle production in Russia after suspending production in St Petersburg last March. "While it's true that we're considering various options, nothing has been decided at this point," the spokesperson said. Toyota said in September it had decided to stop vehicle production in Russia due to the interruption in supplies of key materials and parts.

Summary This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, March 2 (Reuters) - Russia's central bank said on Thursday that it would extend capital controls affecting foreign currency withdrawals and transfers abroad, warning that some economic sectors continued to feel the pinch from sanctions despite their resilience. The central bank and the government responded with sweeping capital controls, including a ban on sending foreign currency abroad to shore up the rouble and stabilise its banking sector. Russia's economy has proved remarkably resilient in the face of tough Western sanctions, but analysts still predict a 1.9% drop in economic output in 2023, after an estimated 2.1% slide in 2022. Those sanctioned last week have responded in a largely relaxed manner, with some saying disruption will be limited and others restricting foreign currency transactions or suspending euro trading on brokerage accounts.

☆ Russian banks' profits reached 258 billion roubles in Jan - central bank
▼ + stars: | 2023-02-20 | by ( ) www.reuters.com time to read: 1 min

MOSCOW, Feb 20 (Reuters) - Russian banks' profits totalled 258 billion roubles ($3.38 billion) in January, 1.5 times higher than in the same month of 2022, Russia's central bank said on Monday. Alexander Danilov, director of the central bank's banking regulation and analytics department, said last month Russian banks' profits could exceed 1 trillion roubles in 2023. Banks' corporate credit portfolio shrank by 140 billion roubles in January, while their forex portfolio grew by 0.3%, the Bank of Russia said. Banks gradually increased investments in OFZ treasury bonds in the same month, buying around two-thirds of bonds on offer, it added. ($1 = 76.2455 roubles)Reporting by Elena Fabrichnaya and Alexander Marrow; Writing by Marina Bobrova; Editing by Jan HarveyOur Standards: The Thomson Reuters Trust Principles.

☆ Russia's central bank says falling rouble driving inflation higher
▼ + stars: | 2023-02-17 | by ( ) www.reuters.com time to read: +1 min

Feb 17 (Reuters) - Russia's central bank said on Friday that inflationary pressures across the economy had remained strong during the first two weeks of February, citing a slump in the rouble as a factor. Russia recorded inflation of 11.8% on an annual basis in January, almost three times the central bank's official 4% target. "Operational data for the first two weeks of February indicate the trend towards increased price pressures continues," the bank said on Friday in a report. But falling revenues from crucial oil and gas sales have again hit the Russian currency this year. The rouble has fallen 16% since the start of December, when a European Union embargo and G7 price cap on Russian crude sales came into force.

[1/2] People stand in line to use an ATM money machine in Saint Petersburg, Russia February 27, 2022. For the majority, who bank in roubles with huge retail lenders, such as Sberbank (SBER.MM), the answer is: not much. "Nothing has changed for me at all," said Vyacheslav Fatikhovich, a taxi driver in the Urals city of Yekaterinburg. "The only thing is that customers are paying less by card and more often in cash," he said. "I quickly opened three UnionPay cards at different Russian banks," Andrey, who now works outside Russia, said.

☆ Russian central bank holds key rate at 7.5%, gives hawkish signal
▼ + stars: | 2023-02-10 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

The Bank of Russia kept its year-end inflation forecast at 5.0-7.0%, retaining hopes that it can return inflation to its 4% target in 2024. "If pro-inflation risks intensify, the Bank of Russia will consider the necessity of a key rate increase at its upcoming meetings," the bank said in a statement. The bank now sees its key rate in the 7.0%-9.0% range this year, up from 6.5%-8.5% in the previous forecast. The bank adjusted its 2023 GDP forecast to between growth of 1.0% and a contraction of 1.0%, from a 1.0%-4.0% decline previously. That has implications for Russia's 2023 budget, which is currently based on the $70.10 price.

☆ Russian c.bank sees record $74 bln deposit auction as budget deficit widens
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +2 min

The central bank set the auction limit at 5.95 trillion roubles. "Since December, we have observed a peak liquidity surplus in the system," said Denis Popov, chief macroeconomic analyst at Promsvyazbank. Russia's structural liquidity surplus has increased to 3.38 trillion roubles as of Feb. 7, from 0.57 trillion roubles at the start of the year. "In our view, the likelihood that they turn out higher than the 29 trillion roubles that is budgeted for is quite high." Extrapolating from current dynamics until the end of the year and assuming that non-oil and gas revenue targets are achievable, Belenkaya estimated that the budget deficit could reach 6.5 trillion roubles, well above the planned 2.9 trillion roubles.

☆ Russia recommends investors convert FX bonds amid asset freeze
▼ + stars: | 2023-01-31 | by ( Elena Fabrichnaya | ) www.reuters.com time to read: +2 min

MOSCOW, Jan 31 (Reuters) - Russia's central bank recommended on Tuesday that retail investors convert their foreign currency Eurobonds into local "replacement bonds" as 5.7 trillion roubles ($81 billion) of investor holdings remain frozen by Western sanctions. Several major Russian companies, including state-run gas giant Gazprom (GAZP.MM) and oil firm Lukoil (LKOH.MM), have substituted their Eurobonds in this way. At the moment, investors who hold Eurobonds issued by Russian companies are blocked from receiving payments. By switching to replacement bonds, retail investors will be able to unlock these assets, Shishlyannikova said. Shishlyannikova added that 20% of the 5.7 trillion roubles of investor holdings blocked in foreign infrastructure belonged to retail investors.

☆ Iran, Russia link banking systems amid Western sanction
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +2 min

DUBAI, Jan 30 (Reuters) - Iran and Russia have connected their interbank communication and transfer systems to help boost trade and financial transactions, a senior Iranian official said on Monday, as both Tehran and Moscow are chafing under Western sanctions. Similar limitations have been slapped on some Russian banks since Moscow's invasion of Ukraine last year. "Iranian banks no longer need to use SWIFT ... with Russian banks, which can be for the opening of Letters of Credit and transfers or warranties," Deputy Governor of Iran's Central Bank, Mohsen Karimi, told the semi-official Fars news agency. Iran's Central Bank chief Mohammad Farzin welcomed the move. "The financial channel between Iran and the world is being repaired," he tweeted.

☆ Russia's $45 billion stash of Chinese yuan is helping Moscow weather massive plunge in energy revenues
▼ + stars: | 2023-01-25 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Russia has a $45 billion stash of Chinese yuan that could help it weather sanctions, per Bloomberg. Moscow has sought to deepen ties with Beijing amid a barrage of western sanctions. Selling its yuan reserves will help Russia cover its losses for the next three years, according to an analysis from Bloomberg Economics. Its flagship Urals crude blend is now trading around $50 a barrel – a third of what it was last year, Bloomberg reported. The measures have severe crimped Russia's oil revenue, which could spell trouble for the nation in the long-term, economists warn.

☆ Russia's central bank sold $47 mln worth of Chinese yuan on Jan. 13
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +1 min

Jan 17 (Reuters) - Russia's central bank said on Tuesday that it sold almost $47 million worth of Chinese yuan on January 13 to buy roubles, as it began to make up for the budget shortfall from falling oil and gas revenues by intervening on forex markets. The finance ministry and central bank said last Wednesday that they were going to sell the equivalent of 3.2 billion roubles of yuan a day from Jan. 13 to Feb. 6 as part of Russia's budget rule. If oil and gas revenues go up and the finance ministry earns more roubles, it will buy yuan to replenish its forex reserves. The finance ministry wants to sell 54.5 billion roubles worth of yuan (almost $800 million) in total - that is how many roubles are needed to make up for the budget shortfall in January. ($1 = 68.45 roubles)Reporting by Reuters, writing by Caleb Davis, Editing by Angus MacSwanOur Standards: The Thomson Reuters Trust Principles.

☆ Russia appoints new ground forces chief despite hawks' disapproval
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +2 min

LONDON, Jan 10 (Reuters) - Russia has appointed Colonel-General Alexander Lapin as chief of staff of the country's ground forces, state-owned news agency TASS reported on Tuesday, despite fierce criticism from leading hawks over his performance in Ukraine. Lapin, previously commander of Russia's central military district, was blasted last October by hawkish allies of President Vladimir Putin after Russian forces were driven out of the city of Lyman in eastern Ukraine, a key logistics hub. On Oct. 8, Russia named Air Force General Sergei Surovikin as the overall commander of its forces in Ukraine, shortly after the reported sacking of the commanders of the Eastern and Western military districts. Kadyrov said Lapin should be stripped of his medals and sent to the front with a gun to wash away his shame with blood. Prigozhin backed Kadyrov's comments, saying: "All these bastards should be sent barefoot to the front with automatic guns."

☆ Permitted share of China's yuan in Russian wealth fund doubled to 60% -finmin
▼ + stars: | 2022-12-30 | by ( ) www.reuters.com time to read: +2 min

The ministry said the permitted share of gold in the NWF would also be doubled, to 40%. "The Russian finance ministry is continuing its consistent reduction of the share of currencies of 'unfriendly' states in the structure of the National Wealth Fund's assets," the ministry said in a statement. "In order to hedge exchange rate risks, we have always (replenished the NWF) in foreign currency," Siluanov said earlier this week. "From among the currencies of 'friendly' countries, the yuan has the characteristics of a reserve currency to the greatest extent, as well as sufficient liquidity in our domestic foreign exchange market," he added. The Moscow Exchange, Russia's largest bourse, said yuan-rouble trading volumes would surpass dollar-rouble trading volumes next year as financial links between Moscow and Beijing continue to intensify.

☆ Rouble slumps to 7-month low, biggest one-day drop since July
▼ + stars: | 2022-12-19 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

By 1515 GMT, the rouble was 4.3% weaker against the dollar at 67.41 , earlier hitting 68.4800, its weakest mark since May 11. The currency also lost 3.8% to trade at 71.71 against the euro , also a more than seven-month low. That weakening stems from concerns that an oil embargo and price cap will reduce Russia's oil export revenues, increasing the budget deficit as imports gradually recover, said Alfa Capital analyst Yulia Melnikova. The dollar-denominated RTS index (.IRTS) was down 4% to 996.9 points, a more than two-month low. Reporting by Alexander Marrow; Editing by Bradley Perrett, Ed Osmond, Arun Koyyur and Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

☆ Rouble plunges below 68 per dollar to hit over 7-month low
▼ + stars: | 2022-12-19 | by ( Alexander Marrow | ) www.reuters.com time to read: +2 min

Summary Rouble dives around 5% against dollar, yuanHits 68.1100 vs dollar, weakest since May 11Weak oil prices, sanctions fears hurtThis content was produced in Russia where the law restricts coverage of Russian military operations in UkraineMOSCOW, Dec 19 (Reuters) - The Russian rouble slumped past 68 per U.S. dollar to a more than seven-month low on Monday, hurt by low oil prices and fears that sanctions on Russian oil could crimp the country's export revenue. By 1248 GMT, the rouble was 5.3% weaker against the dollar at 68.02 , its weakest mark since May 11. The currency also lost 4.2% to trade at 72.00 against the euro , its weakest since May 6. Relatively low oil prices and risks of lower export revenue in the light of the $60-a-barrel price cap on Russian oil imposed by the G7, the European Union and Australia, have pressured the rouble. The dollar-denominated RTS index (.IRTS) was down 5.4% to 982.8 points, a more than two-month low.

☆ Russia's central bank governor Nabiullina speaks after holding rates at 7.5%
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +5 min

Dec 16 (Reuters) - Russian Central Bank Governor Elvira Nabiullina and her deputy Alexei Zabotkin gave a news conference after the central bank left its key rate unchanged at 7.5% on Friday. These funds will return to the Russian banking sector as confidence in macroeconomic stability and in price stability grows. We believe this transaction will ensure the development of the banking sector without the participation of the central bank as an owner. NABIULLINA ON BANKING SECTOR PERFORMANCEAs for 2022 financial results, it is premature to give specific estimates, but I can say that the banking sector has reduced its losses, compared to the level in the middle of the summer. Many banks have reached profitability - most banks have reached profitability, therefore we expect the banking sector to be profitable in 2023.

☆ Russian central bank holds key rate at 7.5%, warns inflation risks are 'prevailing'
▼ + stars: | 2022-12-16 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

The Bank of Russia said the external environment for the Russian economy remains "challenging" and "significantly constrains economic activity." Russia's central bank on Friday held its key interest rate at 7.5% for a second consecutive meeting, but noted that inflationary risks are rising. The Bank of Russia last raised rates in late February, following Moscow's invasion of Ukraine — taking the key rate from 9.5% to 20% at the time. At the same time, pro-inflation risks are up and prevail over disinflationary risks," the Bank said. Russian annual inflation was estimated at 12.7% in December, according to the Bank of Russia, well above its 4% target.

☆ Putin hits back at western sanctions on Russian oil by vowing to deepen trade ties with China and other allies
▼ + stars: | 2022-12-15 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

That comes shortly after the EU banned seaborne energy imports and slapped a $60 price cap on Russian crude. Putin has called the price cap "stupid," and previously threatened to retaliate against any country who participate. "Let me remind you that by introducing sanctions, Western countries were trying to push Russia to the periphery of world development. That includes measures like ramping up natural gas sales to China and other Asian countries, creating a natural gas trading hub in Turkey, and setting the price for natural gas sales to Europe. Putin has rebuffed the oil price cap as "stupid," and threatened to retaliate by refusing to sell Russia's supplies to participating countries.

☆ Here's why BlackRock is forecasting a brutal global recession
▼ + stars: | 2022-12-09 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

The global economy this year has faced more obstacles than a Tough Mudder, but far less optimism about coming out of it for the better. A worldwide recession is just around the corner, and BlackRock is expecting it to bring more market turbulence than ever before. The global economy is leaving a four-decade stretch of stable growth and modest inflation to enter a period of massive upheaval and instability, BlackRock analysts wrote in the firm's 2023 Global Outlook. "Recession is foretold as central banks race to try to tame inflation. What's more, BlackRock said that markets haven't fully priced in the potential magnitude of the impending recession, since earnings have yet to reflect even a small downturn.

☆ Putin Calls Oil Price Cap 'Stupid,' Says Russia Is Mulling Output Cut
▼ + stars: | 2022-12-09 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Russia is considering slashing its oil production in response to the Western price cap, Vladimir Putin said on Friday. The Russian president also said Moscow wouldn't be financially affected by the price cap, calling the mechanism "stupid." If Russia cuts output, it could spur volatility and send crude prices higher, experts have warned. Putin added that Russia's finances wouldn't be hit by the new measures and the West's implementation of a price cap was "stupid," Reuters reported. He also warned energy prices would "skyrocket" for any countries that participated in the price cap.

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