Russia's economy remains in the doldrums - in the first quarter of 2019 it grew by just half a percent year on year. And now, to address this, the government is tripling spending on digitising more areas of the economy. At the annual International Economic Forum in St Petersburg Euronews asked the CEO of IBS, one of Russia’s leading IT services companies, what that might mean for the IT industry. "It is very important that the digital economy does not turn into an economy in which only state-owned players have some role, because, after all, IT is a competitive market, and the best technologies are still most often created not by states, but by private players in a tough competitive struggle," Svetlana Balanova said. President Vladimir Putin wants to double the amount small and medium sized businesses, or SMEs, contribute to GDP from 20 to 40 percent. But that's been dismissed by most analysts as unrealistic. Nadya Cherkasova was named one of the most influential businessswomen in … [Read more...] about Can greater digitisation boost Russia’s faltering economy?
Russia s economy
Russia’s economy is growing, albeit slowly, VTB Capital (VTBC) said in a note following the release of the Russian Federal Statistics Service, or Rosstat’s May statistics. The first tier data for May shows that retail sales rose 1.4 percent year-on-year, with the turnover in the food and non-food segments increasing modestly, by 1.7 percent and 1.0 percent year-on-year, respectively. Real wages have been stagnating for almost six years now, and real wages growth decelerated again from 3.1 percent year-on-year in April to 2.8 percent year-on-year in May. However, economists warn that these flash estimates tend to be revised. And despite a surge in completion in the residential sector — up by almost 30 percent in the first quarter — the output in construction remained almost flat in May at 0.2 percent year-on-year, according to Alexander Isakov, chief economist at VTB Capital. The stagnation in real wage growth has been depressing the retail … [Read more...] about Russia’s Economy Shows Signs of Recovery in May
With Russia’s economy faltering under an onslaught of Western sanctions, Russian President Vladimir Putin attended the 5th International Arctic Forum in St. Petersburg this week to promote the resource-rich region's development. Presentations and panel discussions between more than 3,600 Russian and international lawmakers, scientists and businesspeople wrapped up on Wednesday. Delegates discussed topics including the Northern Sea Route, Arctic shelf development, OPEC, the production and use of liquified natural gas (LNG), the brain drain from Russia’s Arctic regions, the development of infrastructure in Arctic towns and ecotourism. Here is a selection of highlights from the two-day brainstorm: On the development of the Northern Sea Route — “A global transportation corridor is going to be built compromising the Northern Sea Route ... last year the freight volume through the Northern Sea Route hit the mark of 20 million, which is three times the Soviet … [Read more...] about Highlights From Russia’s International Arctic Forum
Most of the costs were linked with sanctions introduced by the United States and the European Union against Russia. REUTERS Russia's losses over the five years of the illegal annexation of Ukraine's Crimea were estimated at over US$150 billion. "Analysts at Bloomberg Economics estimate that sanctions have knocked as much as 6 percent off Russia's economy over the past five years. A study published by analyst Scott Johnson late last year found that the economy of the world's biggest energy exporter is more than 10 percent – or $150 billion – smaller compared with what might have been expected at the end of 2013," Bloomberg Economics said. Four percentage points of that come from the drop in oil prices, but sanctions and other factors are to blame for the rest, it said. The U.S. and European Union led a broad effort to punish Russia with sanctions. Undeterred, Russia has kept integrating Crimea into its economy, investing billions in new power plants and building a giant … [Read more...] about Russia’s losses over five years of illegal annexation of Ukraine’s Crimea estimated at over US$150 bln
Russia’s Natural Resources and Environment Ministry estimates that the combined cost of the country’s oil, gas and other resources amount to 60 percent of its gross domestic product, the RBC news website reported on Thursday. As the world’s top natural gas producer and one of the largest oil-producing countries, Russia’s economy is heavily reliant on exports of its resources. These resources added up to a combined 55.2 trillion rubles ($844.58 billion) in value as of 2017, or 60 percent of Russia’s GDP that year, RBC reported. The Natural Resources and Environment Ministry estimates the cost of 9.04 billion metric tons of oil reserves at 39.6 trillion rubles. The 14.47 trillion cubic meters of gas reserves cost 11.3 trillion, the ministry is cited as saying. Russia’s 1,407 tons of gold and 375 million metric carats cost a respective 480 billion rubles and 505 billion rubles, the figures say. This is the first time Russia has … [Read more...] about Russia’s Natural Resources Make Up 60% of GDP – Reports