Putin to apply more butter on his ass & to join Hermit kingdom and other outcasts

[MirrorMan]

Putin scraps plans to build major gas pipeline to Europe

With oil prices down, president says smaller one to Turkey will be built

PUBLISHED : Wednesday, 03 December, 2014, 4:07am
UPDATED : Wednesday, 03 December, 2014, 4:07am

The Washington Post in Moscow

Russian President Vladimir Putin has scrapped plans for a major new natural gas pipeline to Europe. Photo: Reuters

In a measure of the dramatically reshaped relations between Russia and the West, Russian President Vladimir Putin has scrapped plans for a major new natural gas pipeline to Europe.

The surprise move on Monday deprives the Kremlin of a tool that would have increased Russian political influence over southeastern Europe and detoured natural gas around Ukraine, leaving it more vulnerable to Russia. Putin’s decision came after European Union leaders intensified their opposition to the plans because of the grinding conflict in Ukraine.

Putin said Russia would build a smaller pipeline to Turkey instead of the bigger project, for which construction started two years ago, to funnel large quantities of Russian gas underneath the Black Sea to Europe. The cancellation appeared to end an era, at least for now, in which Russia pursued grand, expensive infrastructure projects in Europe that gave it political clout through energy supplies.

The decision follows a drop in the price of oil by more than 30 per cent since the summer, starving Russia of revenue and forcing it to curtail its economic ambitions. “If Europe does not want to implement the project, then it won’t be implemented. We will refocus our energy resources to other parts of the world,” Putin said in the Turkish capital, Ankara, after a meeting with Turkish President Recep Tayyip Erdogan.

“It would be ridiculous for us to spend hundreds of millions of dollars on the project, go all the way through the Black Sea and then stand in front of the Bulgarian border,” since Bulgaria’s new government has opposed the project.

The decision capped seven years of planning and billions of dollars of Russian investment laying the groundwork for the US$19 billion project, which would have bypassed Ukraine in a new route for Russian gas into Europe. As recently as a few weeks ago, Russian officials said construction on the underwater Black Sea section of the pipeline would begin within months.

Russian leaders had argued that the new southern gas route to Europe would have shielded EU consumers from energy disputes between Ukraine and Russia. Before this year, Russia twice cut off gas to Ukraine in deep winters, in 2006 and 2009.

But European leaders this year have concentrated more on decreasing their dependence on Russian energy rather than consuming more of it. EU countries rely on Russia for about 30 per cent of their natural gas. Lithuania just unveiled a vast liquefied natural gas terminal that will allow Europe to diversify its suppliers. And after Russia cut gas flows to Ukraine in June, Ukraine’s neighbours tried to help by sending gas through pipelines that usually flow in the opposite direction.

The South Stream pipeline, which Putin cancelled on Monday, had been intended as a southern complement to the Nord Stream pipeline, which links Russia and Germany, bypassing the Baltic states.

 

[VPutin]

Poor Russians feel the pain of collapse of rouble and rising food prices

Western sanctions are hitting ordinary Russians hard as the rouble takes a tumble and food prices rise - putting pressure on Putin to act

PUBLISHED : Friday, 05 December, 2014, 12:45am
UPDATED : Friday, 05 December, 2014, 12:45am

Associated Press

Russian President Vladimir Putin yesterday robustly defended his foreign policy but poorer Russian s are feeling the economic consequences. Photo: EPA

Oyster Bar built a thriving business serving molluscs to well-heeled Muscovites. Then came Western sanctions, and the restaurant was forced to rechristen itself this autumn. Today, it serves up burgers and pizza under a new name: No Oyster Bar.

Co-owner Ilya Sokhin said a Russian ban on European oyster imports hit hard, and the average bill at his restaurant - a sleek new building in the famous Gorky Park - has more than halved.

Russia's economy has been battered this year by uncertainty over the conflict in Ukraine, the falling price of oil, Western sanctions and retaliatory Russian import bans.

Poor and middle-class Russians are increasingly challenging government insistence that a 40 per cent drop in the value of the rouble - now worth a record low of 54 to the US dollar - will affect mainly the rich.

Approval ratings have so far remained high for President Vladimir Putin, who has staked his reputation on Russia's re-emergence as an economic powerhouse after the turbulent 1990s. Yesterday he mounted a robust defence of his foreign policy, in his annual state of the union address, trumpeting his annexation of Ukraine's Crimea peninsula and accusing Russia's enemies of seeking to destroy its economy through sanctions. Feisty though it was, the speech is unlikely to mollify middle-class families and even poorer Russians as their quality of life declines.

Mikhail Antonov, 27, a store manager, had saved up this year to drive with friends from Moscow to Germany, and spend a week visiting Christmas markets. But the 30,000 roubles he squirrelled away have gone from being worth €670 (HK$6,395) at the start of the year to less than €450 (HK4,295) today. He has axed the trip.

"This would have been my first trip abroad and my girlfriend and I had saved up," he said. "Now, because of the situation in Europe and Ukraine, everything has got more expensive and our savings have been reduced to nothing."

According to Vladimir Kantorovich, vice president of Russia's Tour Operator Association, travel abroad for the winter holidays is down 30 per cent, and trips to Europe have halved. On Wednesday, Russia's flagship airline, Aeroflot, hiked its rouble-denominated prices by 15 per cent.

Olga Kupriyanova, 35, a law professor, says her family of four feels the pinch, particularly when it comes to putting food on the table. Inflation is estimated to reach 10 per cent by early next year, and food is rising fastest.

According to the Federal Statistics Service, chicken costs 27 per cent more than it did last year, pork 25 per cent, and the beloved staple of buck wheat 48 per cent. Russians on average spend about 30 per cent of their income on food, compared with 6.7 per cent in the United States.

"We've started to economise on food, but our expenses have grown by about 10 per cent," said Kupriyanova, who has replaced red meat with chicken and cut most cheese and fish out.

Russia's economic woes stem from a host of problems. First, oil and gas exports, which finance half of its budget, have been hit by the plummet in world markets: the global price of crude oil has fallen some 25 per cent since the summer.

Analysts say if prices remain so low, Russia could see its economy shrink by three per cent next year. Second, its banks, which were slapped with sanctions this summer as a response to Moscow's role in Ukraine, have to pay off US$90 billion in external debt before the end of next year, which is becoming harder by the day as the rouble loses value.

The central bank had tried to support the rouble but after spending US$29 billion in October alone, it gave up and floated the currency last month.

Finally, Russia banned Western meat, dairy, vegetables and fruit this summer in response to the sanctions, helping drive the steep spike in prices.

On Tuesday , its economic development ministry revised its forecast for 2015, predicting a drop of 0.8 per cent instead of 1.2 per cent growth. Finance Minister Anton Siluanov said the sanctions are costing Russia US$40 billion a year, and falling oil prices another US$90-$100 billion.

Politicians and state-run television have pushed a narrative that only the rich will be affected by the depreciation of the rouble.

But slowing growth and rising inflation have affected average Russians like Kupriyanova and Antonov, who both earn less than the average Moscow salary of 50,000 roubles a month, now worth about US$925.

"Politicians are trying to make the best of the situation, but this attacks low-income households more than middle- and high-income households," said Konstantin Sonin, an economist at Moscow's Higher School of Economics. "They spend more on consumption and food, and they are the most vulnerable."

While a recent poll by the independent Levada Centre showed over 50 per cent of Russians would vote for Putin if elections were held tomorrow, no one doubts that he is coming under increasing pressure to act.

One joke making the rounds on Russian social media: "What do Putin, the price of oil, and the ruble have in common? They'll all hit 63 next year."

 

[steffychun]

Putin is lucky Turkey doesnt always like NATO.

 

[Hypocrisy]

Sanctions-hit Putin seals energy deals in India

AFP
December 12, 2014, 4:39 am

New Delhi (AFP) - Russia will build 10 more nuclear reactors in energy-starved India, Prime Minister Narendra Modi said Thursday, after talks with President Vladimir Putin aimed at shoring up ties between the long-time allies.

Putin is in New Delhi seeking to strengthen energy, defence and strategic ties in Asia in an attempt to revive Russia's economy, badly hit by US and EU sanctions over its backing of an uprising in Ukraine and annexation of Crimea.

At a joint press conference Modi, who has sought to cultivate closer ties with the United States since taking power in May, pledged India's continued support for Russia.

"The importance of this relationship and its unique place in India's foreign policy will not change," he said.

Modi, who swept to power promising to boost flagging growth, said energy security was "critical for India's economic development and creating jobs for our youth".

"We have outlined an ambitious vision for nuclear energy of at least 10 more reactors," he said.

Russia has supplied two reactors to a plant at Kudankulam in southern India under a long-delayed agreement, and has been pushing to supply more.

The two countries signed 20 agreements -- including pledges to boost defence cooperation and explore joint energy projects in the Arctic -- during talks that Putin said focused on "international issues".

"Our approaches to key global and regional issues are either similar or very close," he said.

The strong ties between India and Russia date back to the 1950s after the death of Stalin.

But trade between the two countries was just $10 billion last year, which Putin, who is on his first visit to India since Modi was elected, said was "not enough".

"He (Putin) wants to show the world that he isn't isolated and to a certain extent he's not -- he still has the BRICS countries," said Nandan Unnikrishnan, Russia expert from Delhi-based think-tank Observer Research Foundation, referring to the emerging economies of Brazil, Russia, India, China, and South Africa.

- 'Foremost defence partner' -

Moscow is seeking greater investment from Indian state-run companies in Russian oil and gas projects.

Russia, which has the world's second-biggest natural gas reserves, cancelled a $50 billion South Stream pipeline meant to pump gas to Europe without going through Ukraine.

But Putin has poured cold water on a proposed pipeline pumping gas to India, saying it might not be cost effective, instead emphasising current arrangements to ship liquefied natural gas in tankers.

During Putin's visit, Russia agreed to produce helicopters in India, which is seeking to boost its manufacturing industry, and agreed to advance a long-delayed project to develop a joint fighter jet.

Modi said Russia would remain India's "most important partner" in defence after the United States recently overtook it as the biggest seller of arms to India.

"Even as India's options have increased today, Russia will remain our most important partner," Modi said.

India, whose domestic industry struggles to manufacture high-tech arms, is in the middle of a defence spending binge in a bid to keep up with Chinese forces and a range of challenges in the volatile neighbourhood.

Putin and Modi attended the World Diamond Conference, with both leaders keen on ramping up direct exports to India.

"When a diamond travels to India every diamond has a footprint of Russia," said Modi at the conference.

"And every polished diamond has the fingerprint of India," he added.

Russia is the world's top producer of rough diamonds and the majority of them pass through India, where a cheap workforce cuts and polishes the gemstones before most are exported again for use in jewellery.

India currently exports polished diamonds worth $20 billion.

But only about a fifth of rough produce is sold directly from Russian mines to India, with the rest passing through diamond hubs such as Antwerp and Dubai.

Russian diamond mining giant Alrosa said it would sign deals with Indian buyers during Putin's visit Thursday, seeking to counter the threat of Western sanctions.

The acting leader of Crimea, the strategic peninsula that Russia annexed in March, was also holding unofficial talks Thursday with business leaders in Delhi, a move likely to irk Washington.

Kremlin loyalist Sergei Aksyonov was meeting the business leaders at an upscale hotel, a Russian embassy statement said.

 

[Wedge]

What happened to one star rating from the forum retard?

I emerge as the victor. Unbeatable.

Chey! PAP IB Molanyong

 

[Wedge]

Swiss add names to list to prevent bypassing of Russian sanctions

ZURICH Tue Dec 16, 2014 6:24am EST

(Reuters) - Switzerland has added 13 people and five organizations to a list designed to stop the country being used as a conduit to circumvent Western sanctions against Russia.

Switzerland, which is outside the European Union but is linked by agreements governing trade and other measures, decided in March not to join the sanctions that the EU has imposed over the Ukraine crisis but has been keen to avoid undermining them.

The names it added on Tuesday include Sergey Kozyakov, who was election commission chief in Ukraine's Luhansk region, and the self-styled Donetsk Republic organization.

Those named on the list are prohibited from entering into new business relationships with financial intermediaries in Switzerland. This is aimed at preventing assets held outside the EU from being transferred to Switzerland.

Existing Swiss measures include requiring approval for five Russian banks to issue long-term financial instruments here.

The U.S. Senate and House of Representatives have approved new sanctions on weapons companies and investors in the high-tech oil projects in Russia, although U.S. President Barack Obama has yet to sign the bill into law.

Switzerland, a global commodity trading and private banking hub, is a popular destination for Russia's wealthy elite and is reluctant to take steps it fears could compromise its cherished neutrality or damage closely-nurtured trade ties with Moscow.

Around 75 percent of Russian crude oil exports are traded through Geneva, according to the Swiss government, and Swiss banks held nearly 13.8 billion francs ($15.2 billion) of Russian assets in Swiss banks in 2012, according to the latest Swiss National Bank statistics.

(Reporting By Katharina Bart; Editing by Ruth Pitchford)

 

[Wedge]

Russian economy takes a hammering amid falling oil prices and a sinking rouble

Currency crisis threatens the Russian economy, but Putin is likely to survive as he defies the West over his controversial Ukraine policy

PUBLISHED : Wednesday, 17 December, 2014, 11:08pm
UPDATED : Thursday, 18 December, 2014, 1:59am

Associated Press in Washington

Illustration: Sarene Chan

The rouble is plummeting. Russians are queueing outside shops looking to buy something - anything - in order to empty their wallets of the currency. And now Russia's escalating financial crisis risks spilling beyond its borders and endangering parts of the global economy.

With economies in Europe, Japan, China and Latin America already ailing, fresh threats have emerged from Russia's shrivelled currency, its move to dramatically boost interest rates, the damage from plunging oil prices and Western sanctions over Russia's action in Ukraine.

The alarming drop in the rouble in recent days has amplified the economic turmoil in Russia. Investors fear that Russia may default on its foreign debt obligations - a move that would inflict hundreds of billions in losses on lenders abroad.

"What we've seen in the last few days is real financial panic," said Anders Aslund, a Russia expert for the Peterson Institute for International Economics in Washington.

People change their declining roubles in Moscow. Photos: AP

Some analysts also worry that tensions will further escalate between Russia and the United States and its European allies which imposed the sanctions. The White House upped the pressure on Tuesday when President Barack Obama committed to approving additional sanctions.

But few see Russian President Vladimir Putin backing down.

"I do not expect him to blink," said Ian Bremmer, president of the Eurasia Group, a political risk and consulting firm.

Russia began the year as the world's eighth-largest economy, with a gross domestic product of US$2.1 trillion, according to the World Bank. A single rouble is now worth less than two US cents, having lost about 50 per cent of its value against the dollar since January.

This means Russia's GDP has been halved in dollar terms, putting it roughly on par with Mexico and Indonesia as the world's 15th largest economy.

Before financial markets opened on Tuesday, the Bank of Russia increased its key rate to protect the rouble's value. In doing so, the bank hoped investors would find it more financially appealing to keep their money in Russia. However, the rouble fell in trading to close on Tuesday at 80 roubles to the US dollar, compared with 65 on Monday. It recovered later to a rate of 68 to the dollar.

Russian officials have already projected that their economy will shrink nearly 5 per cent next year. That will, by extension, affect its trading partners in Europe and Asia.

Russia imports about US$324 billion in goods annually, primarily from China, Germany, Ukraine, Belarus and Japan. Those imports have grown costlier because of the falling rouble.

One potential global risk came from Russia seeking to retaliate against the sanctions by stepping up cyberattacks against US targets and asserting itself more aggressively in Ukraine and other nearby countries, Bremmer said.

On Tuesday, Russian Foreign Minister Sergei Lavrov argued in a French TV interview that the sanctions were intended to end Putin's regime.

"The aim is to sharpen the choice [Putin] faces," White House spokesman Josh Earnest said of the sanctions. He said Obama was likely to sign the bill authorising the new sanctions this week. The measure cleared Congress late on Saturday.

Obama threatens new sanctions. Photo: AP

Unlike during the previous rouble crash in 1998, Russia is unlikely to receive help from the International Monetary Fund and the World Bank, organisations backed by the United States and its European allies. Isolated and alone, Russia might then choose to default on some of its debt.

"Our deepest fear has been - and still is - that putting Mr Putin in a 'nothing-to-lose' situation removes any constraint he might have had against reneging on his foreign debt obligations, which Russian borrowers probably cannot pay off or service now," writes Carl Weinberg, chief economist at High Frequency Economics. Foreign lenders would have to brace for US$670 billion in losses.

This possibility has sparked an investor retreat from Russia. But that pullback has also caused investors to flee other emerging market currencies that are deemed risky. They include Turkey, Brazil, South Africa and Indonesia, noted John Higgins, chief markets economist at Capital Economics.

Higgins said that oil prices were the central factor that would determine "the depth of Russia's problems and the consequences for the global financial markets". Should oil continue to collapse, the financial and geopolitical turbulence in Russia would worsen.

Even before the extraordinary action on the rouble, the central bank had warned that if oil prices stayed where they were today, in the range of US$60 a barrel, the economy would contract sharply. Higher interest rates now further raise the cost of borrowing for Russian businesses, deepening the expected contraction.

"Nothing they do with monetary policy can help. If you have something that is fundamentally wrong, you can't fix it with monetary policy," said Aslund of the Peterson Institute.

For months after Russia moved into Ukraine, it was able to weather international sanctions thanks to its revenues from high oil prices. Now, however, oil prices have been roughly halved in the past six months, giving more bite to US and European sanctions that have sought to isolate Russian energy firms and banks.

Russia's single-resource economy is even more reliant upon oil and gas than the numbers say, according to Indra Overland, a Russia expert at the Norwegian Institute of International Affairs in Oslo.

"Russia is a petro-state," said Overland, adding that falling prices meant job losses throughout the large chain of energy suppliers. "As the oil prices fall, so does Russia."

Analysts generally attribute the plunge in oil prices to rising supplies and slowing demand as Europe and Japan falter and China's growth weakens. But as the price dropped further, fears were intensifying that the decline was pointing to slower growth than many analysts had expected, said David Joy, chief market strategist at Ameriprise.

That could make the situation for Russia even more dire. "Oil hasn't found a bottom yet, so the pain is only going to get worse as the price of oil continues to fall," Joy said.

Ordinary Russians, meanwhile, are emptying out ATM machines and standing in long lines to buy appliances and electronics, anything that might hold its value more than the sinking Russian currency. It's led to a strange, albeit temporary boom for Russian consumption.

"Not seeing bank runs and panic just yet. So far there's actually been a mini-consumption boom, as Russians buy durable goods [and real estate] that hold value better than the rouble," said Alexander Kliment, a Russia expert for political risk consultant Eurasia Group.

But it is easy to see how that could quickly shift as the falling rouble makes imports more expensive. Many Russians are accustomed to the hard times of the Soviet era, and the elites in Russia will now be more beholden to Putin than before as their fate is increasingly in his hands.

"That said, the economic situation will be tough next year. Recession and inflation. Putin's increasingly in a corner, and that's dangerous," said Kliment, who does not expect a retreat from Ukraine. "Ukraine policy is a key part of Putin's political support now. To cave on that would be politically disastrous for him."

Additional reporting by Tribune News Service

 

[Wedge]

Russia may seek China help to deal with crisis

PUBLISHED : Thursday, 18 December, 2014, 1:45am
UPDATED : Thursday, 18 December, 2014, 1:45am

Daniel Ren in Shanghai [email protected]

The rouble has lost more than 50 per cent against the US dollar this year. Photo: EPA

Russia could fall back on its 150 billion yuan (HK$189.8 billion) currency swap agreement with China if the rouble continues to plunge.

If the swap deal is activated for this purpose, it would mark the first time China is called upon to use its currency to bail out another currency in crisis. The deal was signed by the two central banks in October, when Premier Li Keqiang visited Russia.

"Russia badly needs liquidity support and the swap line could be an ideal tool," said Bank of Communications chief economist Lian Ping.

The swap allows the central banks to directly buy yuan and rouble in the two currencies, rather than via the US dollar.

Two bankers close to the People's Bank of China said it was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze.

China has currency swap deals with more than 20 monetary authorities around the world. Swaps are generally used to settle trade.

"The yuan-rouble swap deal was not just a financial matter," said Wang Feng, chairman of Shanghai-based private equity group Yinshu Capital. "It has political implications as it is a sign of mutual trust."

The rouble has lost more than 50 per cent against the US dollar this year, pushing Russia to the brink of a currency crisis, though measures announced by the central bank helped it recover some ground yesterday.

Li Lifan, a researcher at the Shanghai Academy of Social Sciences, said the swap would not be enough for Russia even if it is used in its entirety. "The PBOC might agree to extend something like 15 billion yuan initially as a way of showing China's commitment to Russia."

 

[Jar Jar Binks]

What you missed at Vladimir Putin's quite crazy press conference

http://i100.independent.co.uk/artic...tins-quite-crazy-press-conference--eJCWLDawYl


Putin says Russia economy will be cured, offers no remedy

By Timothy Heritage and Alexei Anishchuk
MOSCOW Thu Dec 18, 2014 1:02pm EST

Russian President Vladimir Putin speaks during his annual end-of-year news conference in Moscow, December 18, 2014. REUTERS-Maxim Zmeyev

(Reuters) - President Vladimir Putin assured Russians on Thursday that the economy would rebound after the ruble's dramatic slide this year but offered no remedy for a deepening financial crisis.

Defiant and confident at a three-hour news conference, Putin blamed the economic problems on external factors and said the crisis over Ukraine was caused by the West, which he accused of building a "virtual" Berlin Wall to contain Russia.

At times sneering, at others cracking jokes, he ignored pressure to say how he will fix an economy facing what his economy minister calls a "perfect storm" of low oil prices, Western sanctions over Ukraine and global financial problems.

The rouble has fallen about 45 percent against the dollar this year, and suffered particularly steep falls on Monday and Tuesday, but Putin refused to call it a crisis and said it would eventually rise again.

"If the situation develops unfavorably, we will have to amend our plans. Beyond doubt, we will have to cut some (spending). But a positive turn and emergence from the current situation are inevitable," Putin said in comments to a packed conference center that were broadcast live to the nation.

Although he said the recovery might take two years, much will depend on how long the West maintains sanctions on Russia over its role in the Ukraine crisis.

European Union diplomats said the 28-nation bloc would ban investment in Crimea from Saturday over Russia's annexation of the Black Sea peninsula and President Barack Obama is set to sign legislation authorizing new U.S. sanctions.

But Putin showed no sign of heeding a call by EU foreign policy chief Federica Mogherini for "a radical change in attitude toward the rest of the world and to switch to a cooperative mode".

Sitting at a big desk in front of two large screens showing close-ups of his face, a white mug with a presidential crest on beside him, Putin appeared mainly intent on showing Russians he is in command and will not kow-tow to the West.

DIVERSIFICATION PLEDGE

The former KGB spy said Russia must diversify its economy to reduce dependence on oil, its major export and a key source of state income, but he gave no details and has said many times during 15 years in power that he will do this.

The rouble slipped as he spoke, and was about 2 percent weaker against the dollar on the day. The central bank increased its key lending rate by 6.5 percentage points to 17 percent on Tuesday, and has spent more than $80 billion trying to shore up the rouble this year, but to little avail.

Although Putin said the central bank and government had acted "adequately", he chided the bank for not halting foreign exchange interventions sooner, suggesting more decisive action might have made this week's big rate rise unnecessary.

"All this implies pretty big divisions within the administration as to how to react to the crisis and pressure on the rouble," said Timothy Ash, head of emerging market research at Standard Bank in London, adding that heads could roll.

Neil Shearing, chief emerging markets economist at Capital Economics in London, said Putin signaled no change of policy and capital controls remained "a measure of last resort".

"Whatever happens, a deep recession now looms," he said.

Putin's popularity has soared over the annexation of Crimea but the ruble's decline could erode faith in his ability to provide financial stability, an important source of his support.

An opponent, former Prime Minister Mikhail Kasyanov, said problems would mount as prices are expected to surge next year and Putin would need "an exit strategy" to leave power.

But Putin said he felt the "support of the Russian people", though he had not decided yet whether to seek a new six-year term in an election due in 2018.

Asked about Ukraine, where Russia has irked the West by backing pro-Russian separatists fighting in two eastern regions, Putin said Moscow wanted a political resolution to a conflict that has killed 4,700 people.

He also called for "political unity", suggesting he does not intend to annex the regions that have rebelled, and avoided calling them "New Russia", a phrase he has used in the past.

But he blamed NATO for the worst relations between Moscow and the West in decades.

"Didn't they tell us after the collapse of the Berlin Wall that NATO would not expand eastwards? But it happened immediately. Two waves of expansion. Is that not a wall? ... It's a virtual wall," he said.

(Additional reporting by Moscow newsroom; Editing by Giles Elgood)

 

[VPutin]

Russian citizens rush to buy imported products

<iframe src="//www.youtube.com/embed/T-pqfEXTxAU?rel=0&showinfo=0" allowfullscreen="" frameborder="0" height="315" width="560"></iframe>

Published on Dec 18, 2014

The rouble turmoil has greatly impacted consumption in Russia. Residents in Moscow are rushing to buy imported and electronic products while many others wait in lines to buy foreign currencies. In response, many foreign companies temporarily stopped business to change price tags on their products. On Tuesday, technology giant Apple halted online sales of its products in Russia.

 

[Jar Jar Binks]

Russian ruble's dive sparks shopping spree among Chinese

Staff Reporter
2014-12-19

Shoppers pass the window display of a Kiton luxury fashion store advertising a Christmas sale in Saint Petersburg, Russia, on Wednesday, Dec. 17. (Photo/CFP)

"I have never seen so many Chinese people in Moscow, it feels like I am shopping back at home," an exchange student told the Shanghai's China Business News on Tuesday afternoon.

In light of Russia's slumping economy, the country has become a shopping haven for big spenders from China, who have cleaned out Moscow's high-end boutiques.

As opposed to a year ago when the yuan was trading at about 6 against the ruble, now as it trades at about 9.7 against the ruble, Chinese shoppers are enjoying savings of nearly 80% in Russia.

At Moscow's upscale Atrium Mall, Chinese shoppers could be seen snapping up top luxury-brand products by Gucci, Louis Vuitton.

"Inside a Louis Vuitton store, purchased handbags from nearby boutiques are piled three layers high as Chinese shoppers continue on their spending spree," said another Chinese, who is a Moscow resident, adding that inventory at the local Chanel, Hermes, and Cartier stores had been exhausted.

Local newspapers are filled with headlines about the dwindling strength of the ruble, which is heading towards 1:100 against the Euro, and 1:80 against the US dollar.

Financial institutions in Moscow have since ceased and barred the public from exchanging the ruble for other currencies, allowing only the reverse, said the Chinese Moscow resident.

Eager shoppers have also cleared the Moscow currency exchange offices of rubles.

The paper also reports that sales of luxury cars have surged by about 60% on a month-on-month basis since November, as Russians scramble to preserve the value of their ruble holdings by purchasing luxury cars manufactured by Lexus, Porsche, Mercedes Benz and Aston Martin.

For Russians, the ruble's decline spells severe consequences in the future. Overnight, the price of a hamburger at a school cafeteria has jumped 10% from 50 to 55 rubles, while other common household goods have also seen prices climb by an average of 20%.

Despite the Russian central bank's announcement to raise the benchmark interest rate from 10.5% to 17% at roughly 1 am Moscow time on Dec. 16, the move could not halt the ruble's decline, which continued to weaken to 67.92 against the dollar after the rate hike the following day.

Philip Uglow, chief economist at MNI Indicators, a German company specializing in providing business and macro-economic reports, said that the Russian central bank is expected to have a hard time convincing the world that it is capable of halting the ruble's dive. A rebound in oil prices may help halt the ruble's downward trajectory, but that is unlikely to happen any time soon, Uglow noted.

Russia's economic prospects have also been exacerbated by Obama's declaration of new US sanctions announced Dec. 17.

 

[Jar Jar Binks]

http://www.businessinsider.sg/apple...-prices-in-russia-due-to-ruble-falls-2014-12/

<iframe src="//www.youtube.com/embed/-c42n79cEmg?rel=0&showinfo=0" allowfullscreen="" frameborder="0" height="315" width="560"></iframe>


​

 

[alsnkvx]

I was there on a shopping spree.

 

[alsnkvx]

Putin and Xi Jin Ping allies and have absolute strength advantage over the weak poor coward stupid west. Clear result will prove winner vs loser. Loser is the outcast? This is undefined. Losers in wars are usually dead.

Don't forget your condom.

 

[stwcda]

Putin is lucky Turkey doesnt always like NATO.

PooTin is shitting in his pants now.

 

[Hypocrisy]

Hong Kong factories in China brace for slump in exports to Russia

PUBLISHED : Thursday, 18 December, 2014, 12:00pm
UPDATED : Friday, 19 December, 2014, 5:36am

Denise Tsang [email protected]

Toy and electronics manufacturers in Hong Kong are worried about the loss of future trade with Russia. Photo: AFP

Exporters in the Pearl River Delta are bracing for fallout from Russia's currency plunge.

Some Hong Kong toy and electronics manufacturers that have relied on fast growth in Russia in recent years are concerned about future business as the devaluation of the rouble fuels the prospect of a depression.

The currency has lost about 85 per cent of its value against the US dollar this year. Russian President Vladimir Putin said yesterday the country would remain in economic turmoil for the next two years. The economy is suffering from a global decline in oil prices and Western economic sanctions.

Mizuho Securities chief economist Shen Jianguang said the weaker rouble would crush Russian demand, thwarting the growth prospects of tens of thousands of Hong Kong and mainland manufacturers in the Pearl River Delta.

"It's quite negative," he said. "Russia is one of the fastest-growing export markets for Chinese products."

He said the Russian economy would spiral into recession next year. There would be less import demand and capital outflow, which would have a negative knock-on effect in all emerging economies and Europe, he said.

In the first 10 months of the year, Hong Kong's trade with Russia rose 4.1 per cent, to HK$23.5 billion. Among the main exports were telecoms equipment, toys and computers.

John Tong Shing-jing, chairman of the Hong Kong Toys Council, said the rouble's collapse would hurt Russian consumer spending power and demand.

"Russia has been an emerging market for many Hong Kong toymakers in the past couple of years," Tong said. "The rouble crisis happened so rapidly that it is too early to predict the magnitude of the impact."

He said the companies were relatively shielded from possible immediate losses as they usually settled in US dollars and required full payment before shipping the finished products. But they should explore new markets in Southeast Asia, he said.

The Hong Kong Trade Development Council is due to hold Asia's biggest toy exhibition next month, which will be a bellwether of Russia's appetite for toys and stationery products.

Margaret Fong Shun-man, a council executive director, said companies seeking to expand into emerging markets should not focus on a single market.

"The mainland is also an emerging market, but its size is much bigger and demands a much larger range of products. Southeast Asian markets are closer to Hong Kong, meaning it would be more flexible to make changes if necessary," Fong said.

But Stanley Lau Chin-ho, chairman of the Federation of Hong Kong Industries, said the volatile global environment meant it was not a good time for Hong Kong companies to expand into emerging markets.

 

[swtzcbo]

Chinese traders snap up iPhones, luxury goods in Russia as rouble drops

PUBLISHED : Thursday, 18 December, 2014, 8:51pm
UPDATED : Thursday, 18 December, 2014, 8:51pm

Adrian Wan [email protected]

People queue outside an Apple store in Beijing. Chinese consumers have been snapping up Apple products bought in Russia after the rouble started weakening. Photo: EPA

Chinese expatriates in Russia are snapping up popular electronic and luxury goods and then reselling them to cash in on the weakening rouble.

Apple gadgets, such as the iPhone and iPad, as well as luxury handbags have proven especially popular with the Chinese traders.

“If you’re looking for the iPad, cosmetics, perfume, handbags or shoes, my dear, then you’re too late,” a Chinese trader told customers on her Weibo microblog.

Yesterday, prices for the iPhone 6 started from 4,700 yuan(HK$5,950) including shipping costs – about 600 yuan cheaper than those sold in mainland Apple stores. The bigger iPhone 6 Plus was selling from 5,600 yuan, about 500 yuan cheaper.

“Stop asking me about cosmetic products and perfume. I won’t respond. I’m too busy,” the Chinese trader said on her blog in another entry on Thursday. Orders for food products or infant milk powder were still accepted though, she said.

Xu Honggang, from Hehei city in Heilongjiang province, who trades products to and from both countries, said many people had enquired about the iPhone and that mainlanders had snapped up almost all of the 70-odd devices he managed to get.

“I have only three left now and there are still many people interested,” Xu said. “But the Apple store has stopped selling them, so I can’t get any more supplies.”

Apple stopped selling products on its Russian website after massive fluctuations in the rouble. The Russian currency has lost 20 per cent of its value against the US dollar this week, smashing records for all-time lows on Monday and Tuesday.

As Russians rushed out to spend their roubles before prices went up on imported electronics, Apple announced it would close its online store.

“Due to extreme fluctuations in the value of the rouble, our online store in Russia is currently unavailable while we review pricing,” the company said. Visitors to the site were greeted with the message “we’ll be back” in several languages.

Apple does not have stores in Russia, although it sells its tablets and smartphones through local retailers. This is the second time the California-based tech company has closed its Russian website. The site was shut for about 24 hours in November before it reopened with prices 20 to 25 per cent higher.

Beijing resident Jacques Li said he saved about 4,000 yuan in buying a 64GB iPhone 6 and a 64GB iPhone 6 Plus with the help from a friend in Moscow last month when the Russian currency started sliding.

“I have saved a lot. I think I am the lucky one, placing the order when the rouble dropped and before Apple stopped online sales in Russia,” Li said.

 

[VPutin]

I can't take it anymore. :(

 

[alsnkvx]

Pain.. is how Putin feel
I'll say it again, pain
Pain.. is how Putin feel
I won't say it again

<iframe src="//www.youtube.com/embed/JIrm0dHbCDU?rel=0&showinfo=0" allowfullscreen="" frameborder="0" height="480" width="640"></iframe>


​

 

[DefJam]

Pain.. is how Putin feel
I'll say it again, pain
Pain.. is how Putin feel
I won't say it again
​