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  #36 (permalink)  
Old 26th March 2014, 05:53
stepanstas stepanstas is offline
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Thats really interesting. A revealing article overall.
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Old 26th March 2014, 14:37
Hannia Hannia is offline
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Annexation of Crimea 'not a done deal,' Obama says
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Old 27th March 2014, 02:59
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Recession warning for Russia - Mar. 26, 2014
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Old 27th March 2014, 03:11
Hannia Hannia is offline
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Mar. 26, 2014 3:09pm Becket Adams

The World Bank warned Wednesday that Russia’s economy could contract this year if the United States announces another round of sanctions in response to its annexation of Crimea.

Russian special forces storm the Ukrainian Belbek Airbase on March 22, 2014 near Belbek, Crimea. (Getty Images)

The organization said in its annual report that the Russian economy is expected to grow by 1.1 percent in 2014, but only if the tense standoff between Washington and Moscow comes to a close.

If hostilities between the White House and the Kremlin escalate, prompting yet another round of U.S. sanctions, Russia’s economy could decline as much as 1.8 percent. But the U.S. sanctions would have to be more pointed and they would have to target Russia’s main economic interests, the report said.

The sanctions announced last week by President Barack Obama and the European Union are more general and don’t cause serious damage to Russia’s vital economic interests, according to the Associated Press.

The White House and the EU have so far issued travel bans and have frozen the asset of nearly two dozen people believed to be members of Russian President Vladimir Putin’s “inner circle.”

The World Bank in its report added that Russia’s problems go beyond its recent activities in Ukraine and Crimea, noting that Russia’s 2013 growth rate of 1.3 percent was the lowest in nearly 13 years (not counting the downturn in 2009).

The bank said the downturn in 2009 was caused by a lack of structural reforms.

Russia’s longstanding economic deficiencies have in the past gone “masked by a growth model based on large investment projects … fueled by sizeable oil revenues.”

But recent events in Crimea, the report said, “compounded the lingering confidence problem into a confidence crisis and more clearly exposed the economy weakness of this growth model.”

The Kremlin’s standoff with Washington has spooked some of Russia’s investors, prompting what appears to be a $70 billion capital flight in the first three months of 2014, the AP reported.

That amount is more than what left Russia in all of 2013.

For their part, Russian officials said aren’t considered introducing capital controls to stem the outflow of capital. Still, perhaps in anticipation of a longterm fight with the U.S., Russia in February increased its gold holdings from 7.24 tonnes to 1,072 tonnes. Putin has also mandated that all Russian business owners register and pay taxes locally and that Russian politicians hold no foreign accounts or equity.

World Bank Has a Warning for Russian Economy if Standoff With Washington Continues | TheBlaze.com
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Old 27th March 2014, 14:09
Hannia Hannia is offline
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* Putin: curbs will cost Western companies market share

* Crimean residents to be integrated as fast as possible


NOVO-OGARYOVO, Russia, March 27 (Reuters) - President Vladimir Putin said on Thursday that Russia would develop its own credit card system to reduce reliance on Western-based companies and soften the potential blow from U.S. and EU sanctions.

Putin voiced his support for plans described by senior officials to create a domestic-based system in response to restrictions placed on Russian banks last week by Visa and MasterCard, which are widely use by Russians.

"We certainly must do this, and we will do it," Putin told senior Russian lawmakers during a meeting that mainly focused on efforts to integrate the Crimea region after he signed legislation to make it part of Russia last week.

Visa and MasterCard last week stopped providing services for payment transactions for clients at Bank Rossiya, under U.S. sanctions over what the West says is Russia's illegal annexation of Crimea from Ukraine.

The two payment systems also suspended services for clients at several other banks whose shareholders are on the U.S. sanctions list. They resumed services after the U.S. government said this did not mean the banks were subject to sanctions.

"It is really too bad that certain companies have decided on ... restrictions," Putin said, without naming Visa or MasterCard. "I think this will simply cause them to lose certain segments of the market - a very profitable market."

Russia has been largely integrated into the global economy since the 1991 collapse of the communist Soviet Union, but the biggest confrontation since the Cold War has led officials to look for ways to reduce reliance on the West.

After hitting Russian officials and lawmakers with visa bans and asset freezes over the annexation of Crimea, the United States and European Union are threatening measures affecting entire economic sectors if Russia escalates the crisis.

Western states have emphasised they do not recognise Crimea as being part of Russia, but Putin - his popularity boosted by the acquisition - has pressed ahead with steps to integrate the Black Sea Peninsula.

"We must do everything as swiftly as possible so that those who live in Crimea ... feel like fully-fledged citizens of the Russian Federation," Putin told the senior lawmakers.

Crimeans voted to secede from Ukraine and join Russia in a March 16 referendum dismissed as a sham by Western governments which say it violated Ukraine's constitution and was held only after Russian forces seized control of the Black Sea peninsula.

(Reporting by Alexei Anishchuk, Writing by Steve Gutterman, Editing by Timothy Heritage/Ruth Pitchford)

UPDATE 1-Putin tells West Russia will develop own card payment system
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  #41 (permalink)  
Old 28th March 2014, 05:09
stepanstas stepanstas is offline
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Quote:
Originally Posted by Hannia View Post

Visa and MasterCard last week stopped providing services for payment transactions for clients at Bank Rossiya, under U.S. sanctions over what the West says is Russia's illegal annexation of Crimea from Ukraine.
Beautiful.

What comes with Visa and MasterCard is years of reliability and trust. Keeping your money in the Russian economy and allowing the Russian government to control your transactions is a bit risky if you ask me.
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Old 28th March 2014, 14:44
Farrieress Farrieress is offline
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Quote:
Originally Posted by stepanstas View Post
Beautiful.

What comes with Visa and MasterCard is years of reliability and trust. Keeping your money in the Russian economy and allowing the Russian government to control your transactions is a bit risky if you ask me.
That did not last long.

Visa and MasterCard resume service at two Russian banks - Mar. 24, 2014
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