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☆ Russia can attend APEC meetings, says host United States
▼ + stars: | 2022-12-12 | by ( ) www.cnbc.com time to read: +1 min

Russia will be invited to attend meetings of the Asia-Pacific Economic Cooperation (APEC) bloc hosted by the United States next year, a U.S. official said on Monday. As "good stewards of APEC," the United States will invite Russia, which is a member of the 21-country bloc, Matt Murray, a senior U.S. official for APEC, told a media briefing in Singapore. At an APEC meeting hosted by Thailand in May, representatives from the United States and some other countries walked out of a meeting in protest of Russia's actions in Ukraine when Russian Economy Minister Maxim Reshetnikov was delivering remarks. Murray did not say if Putin would attend next year's APEC leaders' meeting in San Francisco. The Russian leader was represented by First Deputy Prime Minister Andrei Belousov at the leaders' meeting hosted by Thailand last month.

This year, Russia is on track to post a record high current account surplus after its imports of goods and services fell due to Western sanctions while globally high commodity prices boosted its export revenues. Exports rather than import compression are responsible for the majority of the rise, the Institute of International Finance has said. As an oil price cap and export embargo kick in, the surplus will likely decline in 2023. That drop could put further strain on Russia's economy, already saddled with subdued consumer demand, falling disposable incomes and the impact of President Vladimir Putin's partial mobilisation order on workforce numbers. Russia's economy is doomed to see a fall in productivity, with consumption and investments also expected to drop, Nadorshin said, predicting a 5-10% economic contraction in 2023.

☆ Russian economy has overcome short-term slump caused by mobilisation - central bank
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: 1 min

SummarySummary Companies This content was produced in Russia where the law restricts coverage of Russian military operations in UkraineMOSCOW, Dec 7 (Reuters) - Russia's economy has overcome the short-term slump caused by President Vladimir Putin's partial mobilisation order, but the disinflationary impact it had in reducing consumer demand has practically disappeared, the central bank said on Wednesday. Inflationary risks are set to prevail in the medium term, the bank said in an analytical report on macroeconomic and market trends, pointing to increases in budget spending and private lending. Reporting by Elena Fabrichnaya and Alexander Marrow;Our Standards: The Thomson Reuters Trust Principles.

☆ Putin is increasingly aware of how poorly his military is doing in Ukraine, US intel chief says
▼ + stars: | 2022-12-05 | by ( Sophia Ankel | ) www.businessinsider.com time to read: +2 min

Putin had initially been kept in the dark about Russia's failures in Ukraine, earlier reports said. Avril Haines said Putin is "surprised" but not deterred by Russia's military performance. Speaking at the Reagan Defense Forum in Simi Valley, California, Haines said Putin was "surprised" at his military's disappointing performance in Ukraine following its invasion in February. Haines' comments come after reports that Putin's military advisors had been shielding him from what is happening on the ground in Ukraine. Haines said on Saturday that Putin's political objectives to capture Ukraine have not changed despite him becoming more aware of Russia's military failures.

☆ Op-ed: Authoritarian rulers suffered new setbacks in 2022. Here's what the democratic world needs to do to seize the momentum
▼ + stars: | 2022-12-04 | by ( Frederick Kempe | ) www.cnbc.com time to read: +3 min

This year has been a tough one for the world's worst authoritarians: Russian President Vladimir Putin, Chinese President Xi Jinping, and Iranian Supreme Leader Ali Khamenei. Presidents Putin and Xi in early February 2022, just ahead of the Beijing Olympics, entered a "no limits" strategic partnership. Beyond that, President Putin has set back the Russian economy by more than a decade, and sanctions are only beginning to bite. Namely, the Chinese people accept restricted freedoms and fealty to the party so long as the party provides economic rewards and social security. A series of policy mistakes have slowed Chinese growth to just 3% in 2022, yet President Xi continues to prioritize party control over economic freedoms.

☆ Russia's more gradual economic contraction to extend into 2023
▼ + stars: | 2022-12-02 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

After initially dire predictions of a double-digit GDP slump, analysts and officials have gradually been improving forecasts as the Russian economy demonstrates better-than-anticipated resilience. But the decline will continue at a similar pace in 2023, with analysts now forecasting a 2.5% drop. Over time, economists have acknowledged that the contraction is likely to be less sudden, but more prolonged than first expected. "We cannot rule out a deeper contraction next year when compared with 2022, it could be 5-6%." After a rate hold on Dec. 16, the bank will continue easing monetary policy in 2023, the poll suggested, with the key rate set to end next year at 6.75%.

☆ Russian economy shrinks 1.7% in Jan-Sept, but capital investment up
▼ + stars: | 2022-11-30 | by ( Brendan O'Brien | ) www.reuters.com time to read: +2 min

Capital investment rose 5.9% year-on-year between January and September to reach 16.418 trillion roubles ($271.65 billion), Rosstat said. Data also showed that retail sales, the gauge of consumer demand, declined 9.7% in October in year-on-year terms after a 9.8% fall in the previous month. All that comes as consumer prices climbed for the 10th week running, perhaps giving the central bank pause for thought. The Bank of Russia is widely expected to keep its key rate unchanged at 7.5% when its board meets on Dec. 16. ($1 = 60.4390 roubles)Reporting by Alexander Marrow and Darya Korsunskaya; Editing by Mark TrevelyanOur Standards: The Thomson Reuters Trust Principles.

☆ Oil embargo set to restrain Russian stocks recovery in 2023
▼ + stars: | 2022-11-29 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

The Russian market crashed in February after Moscow sent tens of thousands of troops into Ukraine, triggering sweeping western sanctions. Risk aversion has soared but some fundamentals, such as a strong price of oil, Russia's main export, have underpinned the market. The G7, European Union and Australia, are set to implement a price cap on seaborne exports of Russian oil on Dec. 5. Oil and gas exporters have a strong weighting in Russian stock indexes. "For Russian oil producers, the 2023 outlook is closely linked to the effect from the EU oil embargo on Russian oil and oil products, and also the effect from the price ceiling," said Mikhail Shulgin, head of global research at Otkritie Investment.

☆ Moscow is now the fourth largest offshore trading hub for the Chinese yuan, as sanctions spur Russia's dash to an alternative currency
▼ + stars: | 2022-11-29 | by ( ) www.businessinsider.com time to read: +3 min

Russia has been accelerating its use of the Chinese yuan to counter sweeping Western sanctions. Bloomberg Creative/Getty ImagesRussia is now the fourth-largest user of the Chinese yuan — after Hong Kong, the UK, and Singapore. The Chinese yuan was the fifth most commonly used currency for global payments in October 2022. Russia, whose access to the US dollar was curtailed due to sweeping sanctions over the Ukraine invasion, has now become a big user of the Chinese yuan for trade. Some Russian companies, such as energy giant Rosneft, have also issued bonds denominated in the Chinese yuan to raise funds.

☆ Russia's Ozon to open China office to boost cross-border sales
▼ + stars: | 2022-11-21 | by ( ) www.reuters.com time to read: +1 min

LONDON, Nov 21 (Reuters) - Russian online retailer Ozon Holdings (OZON.O) said on Monday it was opening an office in Shenzhen in China to boost cross-border sales to Russian shoppers on its platform. Russian companies have been rapidly boosting business ties with China as firms grapple with unprecedented Western sanctions. Ozon said in a statement it already had 10,000 Chinese sellers offering goods to Russian customers on its marketplace, with China accounting for 95% of sales through its cross-border sales unit, Ozon Global. "Chinese products are in high demand in Russia," Ozon said, adding that, "the most popular orders from China are usually electronics - smartphones, laptops and computer parts - as well as small appliances and clothing." Last week, Ozon reported a 48% jump in third-quarter total revenue to 61.5 billion roubles ($1.01 billion).

☆ Factbox: What is APEC and which leaders are attending Bangkok summit?
▼ + stars: | 2022-11-18 | by ( ) www.reuters.com time to read: +5 min

[1/5] A general view outside of the Queen Sirikit National Convention Center venue during the Asia-Pacific Economic Cooperation (APEC) summit, at Asoke Junction, in Bangkok, Thailand November 17, 2022. The United States will be the APEC host in 2023. CHINA PRESIDENT XI JINPINGXi met Japanese Prime Minister Fumio Kishida in Bangkok on Thursday for talks. RUSSIA FIRST DEPUTY PRIME MINISTER ANDREI BELOUSOVBelousov will represent President Valadmir Putin at APEC. PAPUA NEW GUINEA PRIME MINISTER JAMES MARAPEMarape will hold meetings with U.S. State Secretary Antony Blinken.

☆ Russian economy shrinks 4% in third quarter - statistics agency
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +1 min

Summary This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, Nov 16 (Reuters) - Russia's economy shrank 4% year-on-year in the third quarter of 2022, data from the Rosstat federal statistics service showed on Wednesday, as the consequences of the country's military actions in Ukraine continued to weigh on the economy. That was a slight improvement from the second quarter, when gross domestic product (GDP) fell by 4.1% year-on-year as Western sanctions began to take a toll on Russia's finances and wider economy. Before the full effects of sanctions had been felt, the Russian economy grew 3.5% in annual terms in the first quarter. Russia's economy ministry sees GDP falling by 2.9% this year, while the central bank expects a 3-3.5% drop before a return to growth in the second half of 2023.

☆ The shafts of light in a dark, dark world
▼ + stars: | 2022-11-14 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

The Ukraine conflict has made inflation and debt even worse. The conflict in Ukraine and the early stages of a cold war with China mean it’s hard to get global consensus on anything. The G20, whose members include China, India and Russia, played a big role tackling the 2008 global financial crisis. Meanwhile, the war has strengthened the alliance between America, Europe and like-minded countries across the world. But there is increasing pressure on the World Bank and other multilateral development banks to perform part of this task.

☆ Putin's 'desperation' in Ukraine is making Russia more dependent on other pariah states, top Pentagon official says
▼ + stars: | 2022-11-14 | by ( Christopher Woody | ) www.businessinsider.com time to read: +6 min

The Kremlin maintains close ties with China, continues to sell oil to major countries, including India, and is acquiring military hardware from Iran and North Korea. Those weapons would not necessarily be "a game changer," as Russia has already used its own missiles in Ukraine, Kahl said. Their relations have warmed amid the Ukraine war, with a record number of meetings between senior officials this year. Russia and North Korea also have longstanding ties, though Moscow has in the past kept its distance. North Korea has denied the allegations, calling it a "rumor" and saying it had no "arms dealings" with Moscow.

☆ Departure of Tech Workers Weighs on Russian Economy
▼ + stars: | 2022-11-13 | by ( Yuliya Chernova | ) www.wsj.com time to read: 1 min

A second exodus of Russian tech workers, spurred by the September military mobilization, is emerging as a drag on an economy already struggling with lower energy prices. President Vladimir Putin‘s order to mobilize 300,000 men made businesses and consumers cautious about spending, at least temporarily, as they watched employees leave for the military or to the borders to escape the draft.

☆ U.S. revokes Russia's market economy status
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, Nov 10 (Reuters) - The United States will no longer treat Russia as a market economy country, the Commerce Department said on Thursday, revoking the status granted two decades ago that limited the calculation of anti-dumping duties on Russian goods. The Commerce Department said its analysis found "extensive" government involvement in the Russian economy had led to distorted prices and costs, which it said did not accurately reflect whether Russian companies were fairly pricing imports into the United States. Washington granted Russia market economy status in 2002, an essential step for Russia's admission to the World Trade Organization (WTO) in 2012. Last year, the American Chamber of Commerce in Russia said that Moscow would be able to challenge any U.S. decision to strip Russia of its market economy status at the WTO. Reporting by Katharine Jackson in Washington and Ismail Shakil in Ottawa, Editing by Rosalba O'BrienOur Standards: The Thomson Reuters Trust Principles.

☆ Mobilization, Sanctions and Falling Energy Prices Hurt Russian Economy
▼ + stars: | 2022-11-04 | by ( Ann M. Simmons | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/mobilization-sanctions-and-falling-energy-prices-hurt-russian-economy-11667580446

☆ U.S., Allies Set Parameters for Price Cap on Russian Oil
▼ + stars: | 2022-11-04 | by ( Andrew Duehren | ) www.wsj.com time to read: 1 min

Oil refineries such as this one in Moscow are a key cog in the Russian economy. WASHINGTON—The U.S. and its allies have reached agreement on which sales of Russian oil will be subject to a price cap, racing to flesh out the details of the major new sanctions program before it begins on Dec. 5. Each load of seaborne Russian oil will only be subject to the price cap when it is first sold to a buyer on land, the U.S. and its allies have determined, meaning resales of the same oil won’t have to fall under the cap, according to people familiar with the matter.

☆ Battling high inflation, sanctions, Russia to resume rate-cutting next year - Reuters poll
▼ + stars: | 2022-11-03 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

The average forecast among 14 analysts polled in early November suggested the Russian economy was on track to shrink by 3.5% this year. Data published this week show a deeper contraction in retail sales in September, while businesses have seen sharp drops in employment. In January, before the conflict in Ukraine began, analysts had on average expected the economy to grow by 2.5% with year-end inflation at 5.5%. Russia targets inflation at 4%. Reporting by Alexander Marrow and Elena Fabrichnaya; Editing by Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

☆ Russia's economy shrinks 5% year-on-year in September -economy ministry
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +1 min

Summary This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, Nov 2 (Reuters) - Russia's economy shrank by 5% on an annualised basis in September, the economy ministry said on Thursday, a sharper contraction than the 4% recorded a month earlier. Western sanctions and the fallout from Russia sending tens of thousands of troops into Ukraine in February have pushed the country into recession, but Moscow says the West has failed to destroy the Russian economy. The ministry said Russia's economy was 4.4% smaller in the third quarter of 2022 compared to the same three-month period of 2021. Reporting by Darya Korsunskaya; Writing by Jake Cordell; Editing by Jan Harvey and Mark HeinrichOur Standards: The Thomson Reuters Trust Principles.

☆ Oil is all that Putin has left, U.S. presidential advisor Amos Hochstein says
▼ + stars: | 2022-10-31 | by ( Anmar Frangoul | ) www.cnbc.com time to read: +1 min

Oil is all Russia's economy has left following its invasion of Ukraine earlier this year, according to Amos Hochstein, special presidential coordinator for President Joe Biden. "Oil is the only thing they have left in that economy … Putin has destroyed the rest of the economy," Hochstein told CNBC's Hadley Gamble Monday. "All he's got left is the stuff that comes out of the ground. He won't sell his gas to Europe anymore, so all he has is oil, so that's what funds this war." The Russian economy shrunk by 4% year-on-year over the second quarter, and the Central Bank of Russia expects the downturn to deepen in the quarters ahead.

☆ Where Are the Air Bags? Russia’s Hobbled Auto Industry Struggles to Reboot
▼ + stars: | 2022-10-30 | by ( Georgi Kantchev | Nick Kostov | ) www.wsj.com time to read: 1 min

Western sanctions brought Russia’s car industry to a screeching halt earlier this year. As it restarts, it is emerging smaller, technologically backward and more isolated—a foreshadowing of what could be in store for the rest of the embattled Russian economy. Within weeks of Russia’s invasion of Ukraine, most Western car companies curtailed operations in the country. Sanctions cut off the supply of parts and, one after another, Russian car plants stopped production. By May, car production was down 97% compared with a year ago.

☆ How Russia Pays for War
▼ + stars: | 2022-10-30 | by ( Lazaro Gamio | Ana Swanson | ) www.nytimes.com time to read: +17 min

Invasion –84% Imports from Russia –20% Germany Current total trade $4.8 billion Since invasion –3% Exports to Russia Avg. Invasion –51% Imports from Russia +38% The Netherlands Current total trade $2 billion Since invasion +32% Exports to Russia Avg. Invasion –52% Imports from Russia +74% China Current total trade $15 billion Since invasion +64% Exports to Russia Avg. Invasion +24% Imports from Russia +98% India Current total trade $3.3 billion Since invasion +310% Exports to Russia Avg. Invasion –19% Imports from Russia +430% Turkey Current total trade $6.2 billion Since invasion +198% Exports to Russia Avg.

☆ Russian Economy Expected to Shrink Under Weight of Sanctions
▼ + stars: | 2022-10-28 | by ( Paul Hannon | ) www.wsj.com time to read: 1 min

The Bank of Russia left its key interest rate unchanged for the first meeting since March. Russia’s central bank expects the Russian economy to shrink by up to 3.5% this year, with economists forecasting a gloomy future as the country’s huge energy sector struggles to recover from the loss of its lucrative European markets and the windfall of higher oil-and-gas prices starts to fade. The Russian economy is suffering from the impact of sanctions and the withdrawal of Western businesses in the wake of the invasion of Ukraine in February. While Russia has benefited from soaring energy prices this year, economists expect revenue to fall sharply as the global economy slows and the West finds substitutes for Russian energy.

"SAP is fully committed to winding down our business in Russia as quickly as possible," a SAP spokesperson said. Russia's parliament has been discussing draft legislation that would allow Moscow to seize Western companies' assets and possibly prosecute executives involved in implementing sanctions against Russia. While Gazprom and Sberbank were hit by Western sanctions, Nornickel was not. The SAP case sheds light on the complications Western companies face leaving Russia. While some departing companies have fired local staff, SAP gave them the option to relocate from Russia.

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