Russia - Latest News/Current Events, Economic Overview & Trade Relations
Quick Facts about Russia
| Official Name | Russian Federation |
| Capital | Moscow |
| Location | Northern Asia (the area west of the Urals is considered part of Europe), bordering the Arctic Ocean, between Europe and the North Pacific Ocean |
| Area | total: 17,075,200 sq km land: 16,995,800 sq km water: 79,400 sq km |
| Climate | ranges from steppes in the south through humid continental in much of European Russia; subarctic in Siberia to tundra climate in the polar north; winters vary from cool along Black Sea coast to frigid in Siberia; summers vary from warm in the steppes to cool along Arctic coast |
| Terrain | broad plain with low hills west of Urals; vast coniferous forest and tundra in Siberia; uplands and mountains along southern border regions |
Editor PicksBrowse Asia News Archive
Russia Seeks for a New Currency
BRIC leaders will discuss new reserve currencies at the summit but called for caution in the currency debate, saying it was in no-one's interest to ruin the dollar. He said new reserve currencies were inevitable.
BRIC leaders will discuss new reserve currencies at the summit but called for caution in the currency debate, saying it was in no-one's interest to ruin the dollar. He said new reserve currencies were inevitable. Russia will advocate a cautious approach to changing the system of global reserve currencies when the world's biggest emerging economies hold their first formal summit on Tuesday, the Kremlin's top economic aide said. ussian President Dmitry Medvedev will raise the issue of a global reserve currency at the meeting, top economic aide Arkady Dvorkovich, said. "There is an understanding that the last thing we need now is turmoil on financial markets," Dvorkovich told a news briefing. "No one wants to ruin the dollar, including us." The meeting is scheduled to last about 2 hours. Dvorkovich said BRIC leaders - who control nearly $3 trillion in foreign currency reserves - would also discuss the idea of investing their reserves in each other's currencies.read source article
Russia May Reduce Investments in U.S Treasuries
Russia currently has about $140 billion worth of investments in U.S Treasuries. First deputy chairman of Bank Rossii, Alexei Ulyukayev, announced that some reserves were going to be moved into International Monetary Fund debt. On May 26, Finance Minister Kudrin said that Russia will purchase $10 million of IMF bonds from the reserves while China may buy about $50 billion, according to Dominique Strauss-Hahn, IMF's Managing Director.
Russia currently has about $140 billion worth of investments in U.S Treasuries. First deputy chairman of Bank Rossii, Alexei Ulyukayev, announced that some reserves were going to be moved into International Monetary Fund debt. On May 26, Finance Minister Kudrin said that Russia will purchase $10 million of IMF bonds from the reserves while China may buy about $50 billion, according to Dominique Strauss-Hahn, IMF's Managing Director. Investors are cautious about U.S assets now that the budget deficit is predicted to reach $1.75 trillion by September 30, a large jump from last year's budget deficit of $455 billion, as reported by the Congressional Budget Office, while there are no strong attempts to get the fiscal deficit under control. Ulyukayev, announced that Russia will reduce the share of U.S Treasuries now that a "window of opportunity for working with other instruments is opening," according to Interfax news wire.Russian GDP Shrinks 7 Percent
The Russian economy shrank by 7 percent in the first quarter according to Deputy Economic Development Minister Andrei Klepach.
The Russian economy shrank by 7 percent in the first quarter according to Deputy Economic Development Minister Andrei Klepach. "These figures are worse than we expected," Klepach said. The government has predicted that the economy will shrink by 2.2 percent in 2009 and are still holding on to that prediction after the release of the first quarter numbers. The 2.2 percent forecast takes into account multiple stimulus packages that are currently being debated to help improve domestic demand. Without the stimulus packages, Klepach said the economy could contract by 4 to 5 percent.read source article
Russia: Gas Output Dropped Sharply in March
Gazprom's March gas production slumped by one-quarter from a year ago as demand shriveled in Europe and at home and buyers delayed purchases in hopes that prices would fall.
Gazprom's March gas production slumped by one-quarter from a year ago as demand shriveled in Europe and at home and buyers delayed purchases in hopes that prices would fall. Energy Ministry data showed Thursday that the gas export monopoly's output last month was 1.24 billion cubic meters per day, down 12 percent from 1.41 bcm per day in February 2009 and 24 percent down from 1.63 bcm per day in March 2008. "Such low production levels have been unseen over the past decade, even during summer months, when Gazprom puts some wells on planned maintenance," he said.Russian Food Retailer to Expand Aggressively
Regional food retailer Magnit reported better-than-expected 2008 results for net income and revenue on Wednesday, and it pledged to carry its aggressive expansion plan into 2009.
Regional food retailer Magnit reported better-than-expected 2008 results for net income and revenue on Wednesday, and it pledged to carry its aggressive expansion plan into 2009. CEO Sergei Galitsky said in a statement that Magnit opened 385 new stores in 2008, bringing its total to 2,579 at the end of the year. The Krasnodar-based discounter said the openings helped it boost profits 93 percent under international financial reporting standards. Magnit, Russia's second-largest grocer after X5 Retail Group, plans to invest 5.6 billion rubles ($165 million) to open 300 stores this year as well as six to nine hypermarkets, Galitsky said later in a conference call.read source article
Russian Home Building on the Rise
The number of homes completed in the first two months of this year surpassed the number in the same period last year, Regional Development Minister Viktor Basargin said Monday.
The number of homes completed in the first two months of this year surpassed the number in the same period last year, Regional Development Minister Viktor Basargin said Monday. About 5.86 million square meters of housing were completed in January and February, he said, without citing an earlier figure. "We have been able to completely maintain the positive dynamic of housing construction in Russia," he said, Prime-Tass news agency reported. The situation varies around the country, however, and construction is only rising in 49 regions, he said.Browse Asia News Archive
Trade Agreements
Armenia-Russian Federation
There is no text available on this agreement, except for the WTO notification report. However, its content should be very similar to Armenia's other agreements with former soviet republics.
CISFTA – Commonwealth of Independent States FTA
Belarus
Georgia
Moldova, Republic Of
UkraineNever fully implemented by all members, although Free Trade Area was created in 1999; future prospects unclear. http://www.worldtradelaw.net/fta/agreements/cisfta.pdf
Eurasian Economic Community Customs Union
The EAEC attempts substantial integration in post-soviet nations. It arose out of the CIS customs union as all the members were CIS members. The agreement strives to create a common market, customs union, standardized currency exchange, develop programs for social and economic development, a general energy market and several equal rights for citizens, including health care. The EAEC consists of an intergovernmental council, Secretariat, Commission of the Permanent Representatives, Interstate parliamentary assembly, Law Court, and Integration Committee. http://secretariat.efta.int/Web/ExternalRelations/PartnerCountries/Singapore
Trade Organizations
Asia-Pacific Economic Cooperation (APEC)
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries or regions (styled 'member economies') to discuss the regional economy, cooperation, trade and investment. The membership is claimed to account for approximately 41 percent of the world's population, approximately 56 percent of world GDP and about 49 percent of world trade. The activities, including year-round meetings of the members' ministers, are coordinated by the APEC Secretariat.
Commonwealth of Independent States (CIS)
The Commonwealth of Independent States is an international Organization or alliance consisting of 11 former Soviet Republics. The members are Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Ukraine and Uzbekistan.
Eurasian Economic Community (EuAsEC or EAEC)
The Eurasian Economic Community (EuAsEC or EAEC) is an intergovernmental organization of 6 nations and is also part of the CIS Customs Union. All members are also members of the older Commonwealth of Independent States.