SKOLKOVO has included Russia among the worst countries for business value

Russian companies are valued at a fraction of competitors in the US, EU and China. The cost is underestimated due to weak corporate governance, investment environment and legal protection, experts have found “SKOLKOVO” and UCP

Photo: Maxim Stulov / Vedomosti / TASS

The Russian businessman is the sale of a business can count on a amount of two to four times less than a competitor of the largest countries in Western Europe, USA and most countries of the BRICS. These are the findings of a study of the Moscow school of management SKOLKOVO and investment group UCP (RBC). The report with proposals was sent to the Central Bank, told RBC press service of the UCP.

The research covers the 30 largest economies in the world, which produce 82% of global GDP. Countries were compared on the basis of its own “index of the cost of business.” It takes into account 19 influencing the evaluation of business indicators in five categories: macroeconomic, security, investment, interest rates, availability of capital and tax policy. The closer the index value to 100, the closer the performance of the country for the best practices.

Russia was in 27 th place with an index of 29.26, behind the developed markets and the BRICS countries. A similar assessment presented previously, the Global competitiveness index of the world economic forum. In it Russia has occupied 38-e a place in 2018.

Russia increased its investments in US treasuries

In September, Russia has returned to increasing its share in US debt after a short break, on the background of the new sanctions risks. However, to get rid of long securities short Moscow continued

Photo: Sertac Kayar / Reuters

The U.S. Treasury Department released a new report on the countries — holders of us government bonds. According to him, in September, Russia has increased its investments in securities of U.S. securities to $14,419 billion In August, Russia was holding US government bonds by $14,097 billion.

At the same time Russia even more reallocated their investments in favor of short-term Treasury securities. In August, Russia held in long-term (with maturity more than one year) securities of $3.4 billion in September to $2.9 billion Investment in short-term securities in August stood at $10.7 billion in September and $11.5 billion.

In August, Russia along with the reduction of investments in U.S. government bonds are shifted from long securities short. Thus, Moscow has for the first time at least since 2011, was more short than long papers. Similar steps were taken against the new risk of sanctions against Russia. In August, the US Congress issued a bill on new anti-Russian sanctions, and the state Department announced plans to impose sanctions against Moscow because of the “business Skrypalia”.

Bloomberg has estimated the losses of the Russian economy from sanctions

Due to sanctions Western countries, Russia’s economy in 2014 are unable to grow further by 6% of GDP, experts say Bloomberg

Photo: Andrey Rudakov / Bloomberg

Experts Bloomberg has built an economic model that demonstrates how to develop the Russian economy, if the Western countries in 2014, has not imposed sanctions against Russia. The difference between actual and potential (without sanctions) rate of growth of the Russian economy, according to estimates by Bloomberg, up to 10%.

To calculate what is the contribution of sanctions, is difficult enough, experts admit. For example, the impact on the economy has also had a drop in oil prices since the second half of 2014, says Bloomberg, however, the current level of development of the Russian economy can not be explained.

Russia vs Ukraine: what scenarios are possible in a dispute about $3 billion

The UK Supreme court begins consideration of the dispute of Russia and Ukraine about Ukrainian bonds for $3 billion RBC figured out how you can develop the events surrounding this litigation

Photo: Toby Melville / Reuters

Russia appealed on September the decision of the court of Appeal of England in a dispute with Ukraine on the outstanding $3 billion Dispute has been ongoing for almost three years and now reached the Supreme court of the United Kingdom.

A brief chronology of the dispute

  • In December 2015, Ukraine refused to repay Russia $3,075 billion Eurobond issued in late 2013 in favor of the national welfare Fund of Russia.

Klepach called the sense of the Northern latitudinal export of LNG and scaring deer

The Deputy Chairman of Vnesheconombank Andrei Klepach noted that the money that Gazprom and Russian Railways to invest in the construction of the Northern latitudinal, collected from other regions of Russia

Andrei Klepach

(Photo: Valery sharifulin / TASS)

Former Deputy economic development Minister and now chief economist and Deputy head of the management Board of Vnesheconombank (VEB) Andrei Klepach criticized the project of construction of the Northern latitudinal railway, which will link the Yamal Urals and North-Western regions of Russia.

“The project Northern latitudinal… Besides from the export of liquefied natural gas and scared the deer, it would have no impact. Rather, quite the contrary. The money to “Gazprom” and Railways investing, collected from other regions”, — said Klepach, speaking at the conference “Russian regions in the focus of the change” (quoted by “RIA Novosti”).

The Northern latitudinal railway (SSH) should go the route Obskaya — Salekhard — Nadym and also provide a link of transport system of Russia with Northern sea route (NSR) through the port of Sabetta. The cost of the railway from the station to the Bovanenkovo Sabetti (170 km) is estimated at 113 to 115 billion rubles., the total cost SSH — up to 260 billion rubles.

Sechin explained the high price of gasoline policy independent gas stations

The head of “Rosneft” has again accused the independent gas station owners in the manipulation of prices in the market. According to Sechin, this is facilitated by the monopoly trading scheme fuel in the regions

Photo: Sergey Guneev / RIA Novosti

The head of “Rosneft” Igor Sechin in an interview to “Kommersant FM” has accused the independent network of filling stations in the create regional monopoly structures, which aim to spur the growth of fuel prices.

“We have a design, when in some regions formed a monopoly structure with an established supply chain, which is aimed at increasing the cost. Even a vertically integrated company in accordance with the antitrust laws have to adapt. But we’re going to deal with this very serious”, — said the head of “Rosneft”.

Estimated Sechin, independent networks owns a share of 30% of the market. “Those 30% just affect pricing, because they are supported by the Federal Antimonopoly service. If we give you a lower price, then immediately get on the antitrust proceedings. So, even forced to raise the price,” he said.

Money for all: is it possible in Russia unconditional income

Wednesday, November 14, at the Higher school of Economics discussed the idea of unconditional basic income. Effective implementation of basic income is impossible in authoritarian regimes with high centralization of power, experts said

Photo: Alexander Mudrats / TASS

The idea of an unconditional (or basic) income implies that every citizen receives a guaranteed cash payout regardless of its level of income, employment and health. In a number of countries have carried out and continue to conducted experiments on the implementation of such payments for certain categories of the population (for example, in Finland, the Netherlands, Canada, India). RBC figured out, what are the arguments for and against the introduction of a basic income and why in Russia there are no conditions for the transition to a new social policy.

Why do we need a basic income?

  • The introduction of an unconditional income will provide income of all members of society at a level exceeding the subsistence minimum, and potentially completely overcome material poverty, experts of the world Bank Ruslan AMCOW, Jamele, Rigolini, Hugo dzhentilini in the materials of the conference “Basic income: a prologue to the social policy of the XXI century?”, that 14 November was held at the HSE.

Rid of oil: how falling prices will affect the Russian economy

Oil prices just over a month fell to $20, causing panic and confusion in the market. RBC understood what was happening in the oil market and how it threatens Russia

Photo: Andrey Rudakov / Bloomberg

What happened?

Yesterday, 13 November, the world prices for oil have fallen approximately 7% to levels of $55 (WTI) and $65 per barrel (North sea Brent). Futures WTI it was the biggest one-day drop in percentage from September 2015, futures Brent — July 2018 (July 11, quotations Brent have fallen further).

  • Both oil benchmarks have lost $20 since the beginning of October. As a percentage of Brent crude is now at 23% below the October peak, WTI rose by 26% lower. This means that technically the oil has entered a bearish trend (down 20% relative to the recent highs).

  • Oil prices have lost all growth, accumulated since the beginning of 2018: futures Brent traded 1% below the level of the beginning of the year, futures WTI rose by 7% lower (at 17:00 GMT).

The Ministry of Finance challenged the decision of the English court for a debt of Ukraine at $3 billion

The Ministry of Finance challenged the decision of the court of Appeal of England on the debt of Ukraine at $3 billion, of which the proceedings could be suspended indefinitely

Photo: Anton Belitsky / TASS

Trustee of the Ministry of Finance of Russia — the British company The Law Debenture Trust Corp. — filed an appeal in the UK Supreme court to the court of Appeal of England argument of Ukraine in the dispute on the debt by $3 billion About it is spoken in the message of the Ministry of Finance of Russia, arrived in RBC.

In September the court of Appeal of England decided to hold a separate trial for the analysis of one of the four arguments of Ukraine in dispute with Russia at $3 billion. Ukraine argues that Eurobonds for $3 billion was issued in favor of Russia under “improper pressure”, the other three of the argument of the Ukrainian side was rejected.

“According to the Ministry of Finance of Russia, the fourth argument of Ukraine, as the other three grounds, should also be dismissed without trial” — said in the message.

Sands predicted the change of capital outflows to inflows

Press Secretary of the President convinced that in Russia conditions for capital flows. In turn, the Minister of economic development believes that “a new wave of arrival of new investors” will happen in the next period of stability

Dmitry Peskov

(Photo: Mikhail Metzel / TASS)

Reason for worry due to the increase in capital outflow from Russia is not, said spokesman for the Russian President, Dmitry Peskov. In an interview with TV channel “Rain” he said that the macroeconomic situation in Russia is stable, despite “moments of volatility”, in that more capital goes outside the country.

“Different situation. But there are still absolutely free to invest, and this is a guarantee that on change outflow inflow will come”, — said Peskov.

Earlier, the Bank of Russia reported that in January—October of 2018, the outflow of capital from Russia amounted to $42.2 billion, almost three times the figure in the first ten months of 2017. The Central Bank also noted that the reason for the growth in the outflow of capital began operations of banks for the repayment of external liabilities and operations of enterprises of other sectors for the acquisition of financial assets abroad.