Real incomes of Russians hastened the fall

Real incomes of Russians fell in September by 1.5% after falling 0.9% in August, according to Rosstat. The acceleration of the decline is due to inflation and predictable, because the election cycle has ended, analysts say

Photo: Sergey Bobylev / TASS

Real disposable cash incomes of Russians fell in September by 1.5% in annual terms, more than in August, when the decline was 0.9%, follows from the report of Rosstat published on Wednesday, October 17. Thus, after eight months of growth, the dynamics of real incomes for the second consecutive month is negative.

Real disposable income is income adjusted for inflation and not considering the obligatory payments. Annual inflation rate last month rose more than 1 percent in September, inflation amounted to 3.4%. The acceleration of inflation is one of the key factors in falling real incomes, said the Director of analytical Department of “Loco-invest” Cyril Tremasov.

The growth of wages does not save

Manufacturers of gasoline in September, raised prices by 10%

In September the prices for gasoline from fuel producers increased by 10%, according to Rosstat. The analysts of Independent fuel Union believe that before the end of the year, retail fuel prices will increase by 2-3 rubles. per liter

Photo: Sergey Maligawa / TASS

In September 2018, manufacturers of gasoline raised the price of their products by 10%, follows from the report of Rosstat. During the previous two months, the producers of gasoline prices decreased in August by 0.2% in July, up 8.7%.

At the same time increased the selling prices for other petroleum products. In particular, the Arctic diesel fuel rose over the month by 7.6%. The cost of liquefied propane and butane used as motor fuel, rose 7%.

The FAS has proposed to raise the excise tax because of the threat of rising prices for gasoline

The need to maintain existing rates of excise duties on fuel to the Federal Antimonopoly service explained by the desire to reduce the pressure on retail prices

Photo: Lewis Whyld / PA Images / TASS

The Federal Antimonopoly service (FAS) has proposed the government to abandon the increase from 1 January 2019 the rates of excise duties on gasoline and diesel fuel, reported “RIA Novosti” the head of Department of regulation of fuel and Energy complex of the Ministry Dmitry Makhonin.

“In order to reduce pressure on retail prices we proposed to keep the excise tax in 2019 at the level where they are now. We’ve already offered it to the government,” said Makhonin.

The representative of the FAS said that in the wholesale segment of the fuel market in September-October 2019 prices — due to the autumn maintenance and a decline in sales of the exchange — has increased markedly, while retail prices actually have not changed since the beginning of June.

Poland declared “incomparable” buying gas from the United States and Russia

Poland has signed a contract with the American company for the supply of LNG, which is 20% cheaper than the Russian gas. The contract with “Gazprom” “fortunately” expires in 2022, say in Warsaw

Photo: Vitaly Timkivi / TASS

The President of the Polish oil and gas company PGNiG Piotr Wozniak after signing with the U.S. a 20-year contract to supply LNG stated that the terms of the new contract are not comparable with contracts with the “Eastern partner”. Reported by Business Insider.

Wednesday, 17 October, Poland signed a contract with the us company, Venture Global to supply 2 million tons of LNG (2.7 billion cubic meters after regasification) for 20 years. Warsaw will be able to use and resell the American gas. LNG will be supplied with two Global terminal Venture in Louisiana, the first of them will be ready by 2022, with a second by 2023.

Polish Prime Minister Mateusz Morawiecki, commenting the contract, said that he was pleased on the one hand “to increase independence” and “the competitiveness of our gas sector.” “Our predecessors wanted to sign the contract with “Gazprom”, which would have been a gas shackles” — added Moravicki.

The debt of the Federal property management Agency before the budget grew by 59 times

Receivables from the Federal Agency for state property income, which it administers for the six months increased by 59-fold to 445 billion rubles Is the total obligations of the tenants who use the state property across the country

Photo: Anton Denisov / RIA Novosti

The Federal Agency for state property management (Rosimushchestvo) is among the largest holders of receivables the income of the Federal budget. Its receivables (how much should the Agency involved in economic activity, but in fact it is the obligation of the Federal property management Agency before the budget) has increased in 59 times in the first half of 2018 and $ 445,5 billion rubles as of July 1, it follows from the materials of the accounting chamber submitted to the state Duma the draft Federal budget for the next three years.

At the beginning of 2018 receivables Rosimushchestvo was only 7.5 billion rubles. Now, the Agency ranked third largest receivables after FNS (1.04 trillion rubles., or 40,7% of the total volume) and the TCF (454,4 billion rubles, 17.7 percent).

However, the formation of such a large volume of receivables from property management Agency is primarily technical in nature — it is due to join on 1 January 2018 under the new Federal accounting standards for public sector organisations “rent,” explains the chamber. Now the Agency must reflect receivables for the obligations of the tenants in the amount of lease payments for the entire period of use of the object (i.e., including expected income in future periods).

Russia has risen in the world ranking of competitive economies

WEF raised Russia on two lines in its ranking of global competitiveness. The drafters of the rating note a stabilization of macroeconomic indicators, but concluded the weak quality of institutions

Photo: Natalia Seliverstova / RIA Novosti

Russia took the 43rd place in the ranking of global competitiveness of economies (Global competitiveness Index) is up compared to last year two. The report was published (.pdf) on the website of the world economic forum (WEF).

“The best performance in Eurasia Russia, which is ranked 43rd place in the overall ranking with a score of 65.6 out of 100 points possible,” the report said. A key role in improving the rating authors assign to the stabilization of macroeconomic conditions.

“In 2018, the country is growing at 1.7%, which is the highest figure over the past five years,” — experts say. “If in the years 2014-2016 inflation reached double digits and the economy was in recession, inflation is now slightly above 5.4 per cent, while public debt remains low (17.7 percent),” reads the report.

Russia has returned to reduce their investments in US treasuries

Russia in August for the first time in three months reduced the amount of investment in us securities to $14 billion in addition, Moscow shift from long papers in a short

Photo: Sertac Kayar / Reuters

Russian investments in securities of the U.S. government in August 2018 fell to $14,097 billion, follows from the data published on the website of the U.S. Treasury. For the past three months Russia has almost not changed its stake in US debt. So, in July, Russia held US government bonds by $14,907 billion, in June — $14,910 billion in may — $14,905 billion.

At the same time, in August, Russia has redeployed its investments in favor of short-term Treasury securities. So, if at the end of July was $9.1 billion in long-term (with maturity more than one year) and $5.8 billion of short-term, at the end of August was $3.4 billion in long-term and $10.7 billion in short-term. For the first time at least since 2011, Russia has more short than long papers.

The reduced volume of investments and their redistribution occurred on the background of the new risk of sanctions against Russia. In August, the U.S. Congress published a draft law on new anti-Russian sanctions, and the US state Department announced plans to impose sanctions against Moscow in connection with a case of poisoning in Salisbury Sergei Skripal and Julia.

The government proposed to radically weaken currency control

To cancel criminal liability and dramatically reduce the penalties for currency violations — these are the new initiatives of the Ministry of economic development. The Ministry of Finance and the Central Bank told RBC about the support of the policy of further liberalization of exchange control

Anton Siluanov, Maxim Oreshkin, and Elvira Nabiullina (left to right)

(Photo: Alexander Miridonov / Kommersant)

The Ministry of economic development proposed to abolish criminal liability for currency offences and significantly reduce administrative fines. Unit initiatives for further liberalization of currency legislation was part of the plan “Transformation of the business climate” (TDK), which the Ministry of economic development has developed together with experts and business. Materials plan have with RBC.

“The Finance Ministry supports this initiative”, — told RBC press service of the Ministry. Earlier, the Ministry has developed, and the government submitted to the state Duma a bill on the mitigation of responsibility for violation of currency legislation of the Russian exporters and importers.

The overall objective of the liberalization of exchange controls supported the Central Bank. “We have seen some proposals the Ministry of economic development and partly support them,” — said RBC press service of the regulator, without going into details.

Kudrin reported a discrepancy in the funding of national projects by 1 trillion rubles.

The chamber came to the conclusion that the costs of national projects in the passports of these programs far exceed the funds pledged to them in the budget. The discrepancy is more than 1 trillion rubles in the next three years, said Alexei Kudrin

Alexei Kudrin

(Photo: Anton novoderezhkin / TASS)

In the draft Federal budget for the 2019-2021 years laid sufficient funds for the implementation of national projects compared to passports of the projects themselves. The discrepancy is almost 1.2 trillion rubles for three years, said the Chairman of the accounts chamber Alexey Kudrin during the session of the Duma Committee on budget and taxes. RBC followed the broadcast of the meeting.

“Challenges associated with the implementation of national projects, for six years from the Federal budget will be spent of 14.91 trillion rubles Is planned in the national passports of the projects, if you count the thirteenth national draft comprehensive plan for the development of trunk infrastructure,” Kudrin said. According to him, the extra-budgetary expenditures and regional budgets is estimated at 27.2 trillion.

“However, in the Federal budget while not all these resources are taken into account. The difference is, even with all Unallocated funds in the amount of 425 billion rubles and 200 billion rubles in 2019 and three-year to 1.2 trillion rubles,” — said the Chairman of the accounts chamber.

Regions in advance will compensate the losses from the abolition of the tax on movable property

According to Finance Minister Anton Siluanov, the total loss in connection with the abolition of the tax on movable property will be about 181 billion rubles.

Anton Siluanov

(Photo: Vladimir Fedorenko / RIA Novosti)

The Russian Finance Ministry will increase subsidies to the regions to 93 billion rubles for the reimbursement of future losses in connection with the abolition of the tax on movable property. This was during a meeting of the Committee on budget and taxes, said the first Vice Premier, Finance Minister Anton Siluanov, reports RBC.

As explained Siluanov, at the expense of lost income at the current rate of 1.1% of the total losses when the maximum rate of this tax would have amounted to 181 billion rubles. “And these 181 billion we fully compensate to subjects of Federation”, — said the Minister.

According to him, this will be done in three ways. “First, the transfer of excise taxes on spirits at the rate of 30% to the budgets of constituent entities of the Russian Federation, the second is the centralization at the Federal level, 5 diseases for orphan diseases is the most expensive, the third is to increase the level of co — financing of expenses on payment for a third child, which significantly increased the Federal budget”, — said Siluanov. The remaining 93 billion rubles will be provided for the subjects of the amendments to the law on the budget of 2018, he said.