02
Economy
RUSSIA INDIA REPORT
BOOKMARKS www.g20.org G20 forum website
www.minfin.ru/en Russian Ministry of Finance
IN ASSOCIATION WITH ROSSIYSKAYA GAZETA, RUSSIA
www.cbr.ru/eng/daily.aspx Bank of Russia
THE ECONOMIC TIMES WEDNESDAY_MARCH 18_2009 www.fiac.ru Foreign Investment Advisory Council
Opinion
The world economic crisis is a test not only for But is Russia doing the right thing? By refusing fi- The possibility of economic collapse and debt situation in neighbouring countries seriously af-
Russia, but also for the integration groups and bilat- nancial aid to allies and partners, Moscow would default is fraught with more losses for Russian fects Russia’s own security. Even in times of crisis,
Why Russia
eral alliances in the former Soviet Union where Rus- lose its influence and forfeit the chance of strength- business and state-owned monopolies, which the struggle for influence in the post-Soviet space
sia still claims a leadership role. This presents both ening its position. Russia’s neighbours may reorien- have invested heavily in post-Soviet economies – continues with Russia being challenged by the EU,
credits its
new opportunities and challenges for Russia. tate their foreign strategy towards Washington and especially Ukraine and Belarus, which traditionally the US and China,” believes Mr Igrunov. Obviously,
Judging from recent actions, Russia intends to make Brussels if they obtain more Western loans and are account for the lion’s share of Russian investments in times of economic austerity, throwing money at
neighbours
use of these opportunities. Moscow will issue indebted to foreign powers. in the CIS. neighbours is not an attractive prospect. But every-
a $500 mn stabilisation loan to Armenia. It has Granting financial assistance offers Russia a unique Securing uninterrupted transit of Russian energy thing is relative.
promised Kyrghizia free aid and massive invest- chance of elevating the multilateral integration or- resources via the territories of its neighbours to the In August 2008, $255 bn of the country’s gold and
YURI PANASIK ments to the tune of over $2 mn. Russia has already ganisations in post-Soviet space to a new level. Nor consumer countries is also vital. Economic turmoil currency reserves (totally worth $600 bn) were
transferred half of a $2 bn loan to Belarus, and should one forget Russia’s economic motives. Mos- may cause political destabilisation in neighbouring spent to shore up the rouble and bail out banks.
EXPERT
Minsk has asked for a new loan of 100 bn roubles. cow intends to push ahead with its plan to create countries and thus jeopardise Russian gas supplies Aid to friendly countries will cost 2 pc of Russia’s
Countries of the Eurasian Economic Community a Customs Union and a Common Economic Space to Europe. gold and currency reserves, and most of the money
(EurAsEC) have set up a joint $10 bn anti-crisis within EurAsEC. In addition, Russia has proposed a Russia stands to gain by crediting its neighbours, will not disappear within the depths of the opaque
fund, to which Russia has committed $7.5 bn and multilateral free trade agreement among CIS coun- according to Viacheslav Igrunov, Director of the banking system, but finance orders for the domestic
Kazakhstan $1 bn. Ukraine may get a loan of $5 bn. tries to be signed in 2009. Institute for Humanitarian and Political Studies. “The industry.
G20 London Summit Moscow is planning new proposals to overhaul the global financial system and
reform the regulatory framework for international markets, to be discussed by G20 leaders in April
Medvedev wants
G20 consensus
World markets must
This is a complex crisis
and we will have to over-
come it together… And in-
deed, we will need to work
together. These great efforts
can become productive only
agree on joint policies
in the event that they are
based on common values and
the common understanding
of what a just economic world
order is to look like in the up-
coming decade. That is why I
consider fostering discus-
sions on reforming economic
Andrey Bokarev, a senior relations and creating a new
government official and financial architecture to be
deputy financial sherpa for the very important. The previous
Russian delegation, gave an fi nancial architecture, which
exclusive interview to outline was created during a certain
proposed initiatives for the period of history, however that will determine econom-
upcoming G20 summit in good it may be and however ic development for all the
London, starting on April 2. much it may appeal to indi- world’s population in com-
vidual governments, is out- ing decades. I think it is im-
TATIANA KONISHCHEVA
dated, and nothing can be portant not only to begin this
RIR done to change that. discussion, but also to create
an adequate legal frame-
Briefl y, the Russian propos- I hope that during the work. If we cannot create
als include a co-ordinated SERGEY SAVOSTIANOV_RG summit which will soon one, we will continue to face
macroeconomic policy, de- Andrey Bokarev is Deputy Direc- take place in London, all crises similar to the one hap-
lineated support to national tor for the International Finan- governments will be able to pening today, many more
economies, immediate re- cial Relations, Public Debt and achieve consensus on key times.
forms of the regulatory sys- Public Financial Assets Depart- questions regarding the
tem and international fi nan- ment at the Russian Ministry of modernisation of this archi-
DMITRY MEDVEDEV
cial institutions, defining Finance tecture, and we will begin
PRESIDENT OF RUSSIA
FROM HIS SPEECH AT A SESSION OF THE
global standards and discus- fully-fl edged work on creat-
RUSSIAN-SPANISH CIVIL SOCIETY FORUM
sion of possible changes in ing new conventional rules MARCH 3, 2009
the monetary system. of member states breaking
the limit of the approved fi s-
A global Maastricht cal deficit or inflation rate,
First, the Russian Finance and although the “offenders”
Ministry believes G20 nations were given a notice, no ac-
should agree on co-ordinated tions were actually taken. Moscow keeps
macroeconomic and fiscal
policies. This should be simi- Where support ends and
lar to the Maastricht Treaty, protectionism begins its aid promises
signed in the Netherlands in In the context of the global
1992 to create the European fi nancial downturn, the sec-
Union. Under the Treaty, EU ond most sensitive and sig- Today, many people are termath of natural disasters
member states’ macroeco- nificant issue raised by the wondering if Russia intends to in Southeast Asia, Central
nomic indicators must be in Russian delegation is sup- shut down its international aid and South Asia, Eastern Eu-
line with certain criteria; for porting national economies. programmes. Well, it does not. rope and the CIS and, possi-
example, public debt may not Nowadays, you can hardly Russia remains a strong bly, in Africa. They will thus
exceed 60 pc of GDP and the find a country that has not power committed to helping form an epidemiological
annual infl ation rate may not launched a stimulus pro- poverty-stricken nations that equivalent to the emergency
be higher than the average in- gramme to support domestic face far grimmer woes. response teams under the
flation rate in the three EU producers, banking and fi- Russian Ministry for Emer-
countries with the minimum nancial systems.
TATIANA AFANASIEVA
gency Situations.
infl ation rate plus 1.5 pc. Andrey Bokarev points out RIR Over $50 mn will be spent on
“In our opinion, the agree- Russia has been implement-
DRAWING BY ANDREY SHIMARSKY
supporting programmes for
ments (both Maastricht and ing its own recovery plan ac- The overall Russian commit- improving basic education in
Russia’s G20 proposals) are knowledging the urgency of ideas have been under con- for different international be discussed in detail with tunity to exert any infl uence ment of $400-450bn, as agreed Africa, Southeast and Cen-
required to provide the basis the situation, yet the Russian sideration for a while: the last regulatory institutions to use G20 colleagues, IMF experts on Fund decisions. with G8 Finance and the tral Asia. A fi nancial literacy
for countries to stick to party is concerned excessive initiative was proposed by methods based on totally op- and other international fi nan- Bokarev is convinced IMF re- World Bank, will not be re- programme has been
agreed benchmarks – for ex- protectionism could lead to a the Italian delegation within posing principles. cial organisations. form “should be furthered duced. Last year, our country launched, targeting, among
ample, fiscal deficit, public considerable bias. the framework of the fi nan- Russia suggests putting dis- The idea of a universal inter- through shifting more weight provided $145 mn for global others, the poorest countries
debt and inflation,” said It would therefore be advis- cial G7 in Rome last Febru- closures of business activi- national currency, issued by to developing countries”. healthcare development, fol- in the world.
Bokarev, Russia’s deputy fi - able to adjust such “support” ary, and has already been ties, instruments and possi- an international body rather Furthermore, the Fund has lowing a $110mn input the Russia has contributed an-
nancial sherpa at the G8. to the size of a given economy. considered by international ble risks on the agenda. Data than a single nation, is on the found itself in deep waters year before. By 2010, Russia other $30 mn to the Global
The next major step would be The crisis is not going to last organisations. should be made available to agenda. Russia is ready to dis- due to the global financial will have contributed a total Village Energy Partnership
determining a body to moni- forever; when the economy is The idea behind this Global professional and ordinary in- cuss such ideas as using the downturn. It is simply too of $217 mn to the Global Fund programme, an initiative for
tor each country’s compli- back to normal, such meas- Standard is to bring together vestors alike. The former SDR (Special Drawing short of money to bail out all to Fight AIDS, Tuberculosis alleviating energy poverty. It
ance with the above treaties. ures could pose a major all principal rules and regu- should be well aware of cor- Rights), the common IMF victims of the crisis – some and Malaria in order to cover is expected to produce its
The Russian government threat to national economic lations, primarily concerning porate structures and man- unit, as the international cur- nations even contemplate costs associated with the first results by the end of
suggests this function should and financial stability. It disclosures, governing differ- agement reputations. rency. bailing out the IMF. In partic- Fund’s projects in Russia. 2010. The plan is to construct
be assumed by either the In- seems to be particularly rel- ent organisations at the na- ular, Japan has pledged $100 About half this amount has mini power and hydro-elec-
ternational Monetary Fund evant to the public debt, in- tional level. International currency Further IMF reforms bn as immediate relief for already been allocated. A pro- tric plants and transmission
(IMF) or a new institution. flation and fiscal deficit According to Bokarev, cur- concerns Finally, Russia is going to countries suffering from the gramme proposed by Moscow lines in rural Africa, in areas
The G20 leaders could dis- among other factors. rent national laws in all coun- Naturally, summit partici- raise the question of IMF re- crisis. in 2006 is underway for devel- where people have never even
cuss various proposals con- tries provide a regulatory pants will address the issue of form. Changes in the IMF “As far as Russia is con- oping an AIDS vaccine, the heard of the light bulb.
cerning supervisory func- Global regulatory and framework for fi nancial mar- reforming the monetary and quota system introduced a cerned, any IMF help re- bulk of the budget for this to Finally, two billion dollars
tion, for example, imposing reporting standards kets. This national way of financial system in terms of year ago have hardly yielded quests will be given due con- be spent in Russia. have been paid towards the
sanctions on countries which The crisis has only proved regulation is often incompat- extending the list of curren- meaningful results, says sideration,” assures Bokarev. The Russian Government has Global Partnership Against
do not comply with the market regulatory reforms ible with the international cies, i.e. launching new reserve Bokarev. As before, US and Until now Russia has been decided to set up disease re- the Spread of Weapons and
adopted benchmarks. It is all and new international re- nature of instruments and and regional currencies. EU representatives are able lending fi nancial support to sponse teams based on insti- Materials of Mass Destruc-
the more important to deter- porting standards should be products traded on the global Russia has repeatedly sup- to pass any Fund resolution. its neighbours, in addition to tutes and branches of the tion. There are concerns,
mine the function of this high on the agenda. market. ported the idea of extending Although some emerging the aid the country already Federal Service for Supervi- though, that, because of the
mechanism given that it has Russia advocates improving Moreover, he says new ap- the list of currencies which markets have received their provides the poorest coun- sion of Consumer Protection crisis, not all the countries
not proved completely effi- such standards. That is not to proaches regarding function- could be used for internation- share after redistribution of tries under the World Bank, and Welfare. The teams will that have joined the initiative
cient in the European Union: say it is a brand new propos- ing of regulators should be al payments, says Bokarev. quotas, it appears so irrele- G8 programmes and other work to prevent the spread of will fulfi l their respective ob-
there were some precedents al, points out Bokarev. Such developed. It is not unusual This question will defi nitely vant that they have no oppor- initiatives.
-
infectious diseases in the af- ligations
-
Global Russia
Navitech-Expo 2009 International Exhibition International Helicopter Industry Exhibition The International Aviation and Space salon MAKS
May 12-15, Expocentre Fairgrounds, Moscow HELIRUSSIA August, 18-23, Zhukovskoye, Moscow
The first Russian exposition devoted to GLONASS was May 21-23, Crocus Expo, Moscow MAKS is primarily a display of recent advances and de-
business
presented within the Sviaz-Expocomm 2007 International HELIRUSSIA is the one and only exhibition in Russia where velopment trends of Russian science and industry in such
Exhibition. Sviaz-Expocomm 2008 featured the Navigation the world’s achievements in the helicopter industry will be high-tech areas as aviation, space and rocket engineer-
Satellite Systems Sector, which displayed products of such demonstrated, all the way from design and manufacture ing. Business communication among scientists, engineers,
calendar
leaders of the Russian navigation industry as the Russian to operation. It will show the achievements of the Russian technologists, managers and other specialists during
Research Institute of Space Device Engineering (RNII KP), helicopter industry as well as attract the best helicopter MAKS 2009 will encourage efficient dialogue between the
the Russian Institute of Radio Navigation and Time (RIRV), companies, and promote the development of international government and business in the current economic climate.
Kompas MKB, M2M Telematika, NAVTEQ, etc. co-operation in helicopter industry. www.aviasalon.com/en
www.navitech-expo.ru/en www.helirussia.ru/2009/eng
International Automobile Salon
10th Jubilee International Forum 16th International Specialised Exhibition Power INDUSTRIAL FORUM-2009 August 26-30, Crocus Expo, Moscow
“High-Tech XXI–2009” Industry and Electrical Engineering Show June 8-11, Crocus Expo, Moscow The main automobile event for motor-car enthusiasts and
April 21-24, Expocentre, Pavilion Forum, Moscow May 19-22, Lenexpo Fairgrounds, St Petersburg Participation in the forum is a unique opportunity to present professionals in the automative industry. The status of the
Leading topics at the forthcoming Jubilee Forum are in- One of two major shows in Russia which assists in estab- your company and products to a distinctly selected tar- Moscow Autosalon has been acknowledged by the Or-
troduction of development of a high-tech complex, “com- lishment of co-operation between research centres and geted audience of industry specialists as well as create ganisation Internationale des Constructeurs d'Automobiles/
mercialisation” of scientific and technical potential and industry and promotion of modern, safe, energy-saving and greater market awareness throughout Russia. The forum OICA.
marketing of high-tech production. The Forum gives the ecological solutions. The exhibition represents a compre- is officially supported by the Federations Council, the State eng.interauto-expo.ru
opportunity to present opinions of market leaders on the hensive offer of new products and technologies, services Duma, the Ministry of Economic Development, the Ministry
wide range of technological and socio-economic ques- and implementation of modern electric installations, electric of Industry, the Federal Subsoil Resources Management
Find more in the “Global Calendar”
tions of participants’ development. engineering and power systems. Agency and other industry-related organisations.
www.engl.vt21.ru/index.php www.restec.ru/exhibitions/featured/power/info.en.html eng.promfair.ru
at www.rbth.ru
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8