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Economic Good News
various | 9 June 03 | various

Posted on 06/08/2003 9:54:18 PM PDT by RussianConservative

Trade Surplus Soars

MOSCOW (Reuters) -- The foreign trade surplus soared 38 percent to $24 billion in the first four months of 2003, year on year, as crude oil exports to Western countries rose 9 percent, the State Customs Committee said Thursday.

The country's robust foreign trade balance, which stood at $18.6 billion in the first quarter of 2003, has helped the Central Bank to build record-high foreign currency reserves, boding well for the country's creditworthiness.

"The foreign trade balance was positive and stood at $24 billion [in the January-April period of 2003] compared with $17.4 billion in the corresponding period of 2002," the committee said in a statement.

Subsistence Pensions

MOSCOW (Prime-Tass) -- An average monthly pension in Russia will exceed the monthly subsistence level for pensioners in 2004-06, according to Economic Development and Trade Ministry materials prepared for Thursday's government meeting.

Next year the average monthly pension is projected at 1,931 rubles ($63), while the subsistence level for pensioners is expected to be 1,900 rubles.

GDP Up 6.6%

MOSCOW (Prime-Tass) -- Gross domestic product rose 6.6 percent on the year in January-April, First Deputy Economic Development and Trade Minister Ivan Matyorov said Wednesday.

Matyorov also said industrial production was up 6.3 percent on the year in the period.

Nestle Baby Food Plant

MOSCOW (MT) -- Swiss food giant Nestle signed a deal this week for the purchase of 100 percent of the Vologda Baby Food Factory, Hans Gueldenberg, the managing director of Nestle Food LLC, said Wednesday at an investment conference organized by Renaissance Capital.

Nestle, which leads the domestic infant nutrition market, purchased the Vologda factory from Krueger Beteiligungs GmbH and the AMELITEA Trading Company, Ltd., which held equal shares in the factory.

Alexei Krivoshapko of United Financial Group put the value of the deal at $5 million to $6 million. The factory's sales were about $9 million last year, he said.

The deal is Nestle's second announced in as many weeks. In May the company said it would invest $120 million in a greenfield instant coffee factory in Timashevsk in the Krasnodar region.

Lust for Sao Tome Oil

LISBON, Portugal (Reuters) -- Russia and Britain said Tuesday that they want to help the tiny African nation of Sao Tome e Principe develop its rich oil reserves, Portuguese news agency Lusa reported.

"We plan to relaunch cooperation with Sao Tome e Principe, above all in the economic sector, as a way to reactivate our diplomatic relations," Lusa quoted Russia's new ambassador to Portugal, Andrei Kemasrsky, as saying.

Sao Tome and regional oil power Nigeria have drafted bidding guidelines for nine new offshore wells they are jointly developing. Studies have suggested the presence of billions of barrels of crude offshore.

First Bonduelle Factory

KRASNODAR, Southern Russia (Prime-Tass) -- France's Bonduelle, one of the world's leading producers of canned and frozen fruit and vegetables, launched the construction of its first factory in Russia on Tuesday in the southern Krasnodar region.

The cost of the factory is 30 million euros ($34.8 million), the company said.

The factory, based in the village of Novotitorovskaya, 15 kilometers from Krasnodar, will produce 60,000 tons of canned peas and corn per year.

Oil Output Soars

MOSCOW (Reuters) -- Crude oil and gas condensate output rose from January to May by 11 percent to 167.98 million metric tons (8.15 million barrels per day) from 151.21 million metric tons (7.34 million bpd) in the first five months of 2002.

Industry sources said crude oil exports via state pipeline monopoly Transneft, including oil in transit from Kazakhstan and Azerbaijan, also climbed to 66.20 million metric tons (3.21 million bpd) from 62.74 million metric tons (3.05 million bpd) in the same period of 2002.

Industry sources close to the Energy Ministry reported preliminary oil production and export data for Yukos at 32.42 million metric tons, LUKoil at 31.76 million metric tons and Surgutneftegaz at 21.73 metric tons.

MOSCOW (Reuters) -- Global news and information provider Reuters Group PLC said Friday it was launching ruble trading on its Reuters Dealing 3000 Spot Matching system.

The Russian currency becomes the first non fully convertible instrument to be listed on Reuters Dealing 3000 Spot Matching.

The move allows users of the dealing system to view the currency price. Only those who can settle trades in Russia will be able to buy and sell rubles on it.

Tax Talk in Duma

MOSCOW (Prime-Tass) -- The State Duma is likely to approve a package of government-proposed tax bills in the first reading, Alexander Zhukov, head of the Duma's budget and tax committee, told reporters Friday.

The committee will consider the proposals on Monday followed by the Duma on Friday, Zhukov said.

Among other things, the government proposes canceling state monitoring of significant spending by individuals, and Zhukov said the Duma is likely to approve this.Does not US government do so for more then $10K transactions?

Transneft Sales Soar

MOSCOW (Reuters) -- Pipeline monopoly Transneft on Friday reported a healthy increase in sales in 2002 due to booming oil output but a drop in its annual net profit as a result of higher costs.

Transneft said its sales had risen 13.5 percent in 2002 to 97.9 billion rubles ($3.2 billion), under international accounting standards, while net profit dropped 10 percent to 27.9 billion rubles.

Troika Dialog brokerage said the results offered few surprises as analysts expected sales to grow due to a 9 percent increase in Transneft's crude oil transportation in 2002 and due to a 16 percent rise in its average shipping tariffs.


TOPICS: Business/Economy; Extended News; Foreign Affairs; Miscellaneous; Russia
KEYWORDS: russia; russian; russianeconomy

1 posted on 06/08/2003 9:54:18 PM PDT by RussianConservative
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To: RussianConservative
Looks like some good news for Russia. Good! People laughed when Putin lowered the tax rate. What he's just proven is that the more money you put into peoples pockets, the more they will invest. He also improved the foreign investment climate significantly. Now if they can just get the mafia under control. Too bad Yeltzen was in office for so long when the Russian economy was just taking it's baby steps.
2 posted on 06/08/2003 10:07:04 PM PDT by McGavin999
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To: RussianConservative
Does not US government do so for more then $10K transactions?

Tochno tak. (Just so)

3 posted on 06/08/2003 10:07:32 PM PDT by sourcery (The Evil Party thinks their opponents are stupid. The Stupid Party thinks their opponents are evil.)
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To: sourcery; RussianConservative
I don't think so: I believe only CASH transactions through banks above 10K are recorded. The goverment does not have any records when you buy a car, for instance.

Note also the word "spending," not "transactions," and not "cash transactions."

4 posted on 06/08/2003 10:16:10 PM PDT by TopQuark
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To: McGavin999
I wish Russia well. However, heed should be taken
to the fact that oil exports cannot drive
a prolonged growth in the GNP.
The world is heading toward a depression
and with it demand for oil will drop
and the price of oil will zoom down.
So the value of the exports of oil of Russia
are so going to taking a hard drive down.

But certainly Putin was right to cut taxes,
just going to take a lot more postive steps
to put things on a truly solid footing.

5 posted on 06/08/2003 10:49:35 PM PDT by Princeliberty
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To: Princeliberty
Well, you're absolutely right about that, but if the proper steps are taken to invest the money in other industries they could well by-pass the economic problems of europe. As to a world wide depression, I'm not so sure about that. Many of the problems being experienced in the EU countries are due to over-regulation, over taxation, and rediculous social payments (not to mention a huge influx of immigrants who are NOT assimilating into the local cultures).

I don't expect the US to experience 1990's style growth, but then I never really believed much of it was founded in reality. I expect a reasonable and sustained growth in the US.

6 posted on 06/08/2003 10:55:51 PM PDT by McGavin999
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To: McGavin999
Sorry, pay day has come for that living high on
debt. And the debt continues to grow.
United States only thing keep the world
wide economy form going into a depression.

Right now the Washington crowd simply going
into overdrive to prop things up, and
the more they do that the worse things
will be in the long run.

At this point I don't think there is
realistic way a depression can be avoided.
7 posted on 06/08/2003 11:17:29 PM PDT by Princeliberty
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Comment #8 Removed by Moderator

To: TopQuark
I don't think so: I believe only CASH transactions through banks above 10K are recorded. The goverment does not have any records when you buy a car, for instance.

You're right that only cash transactions are tracked (and I had not meant to imply otherwise.) However, you're wrong that only bank-mediated transactions are tracked. By law, just about any multi-party transaction involving more than $10k in cash should be reported to the Feds (the Patriot Act greatly expanded the reporting requirements.)

9 posted on 06/08/2003 11:51:51 PM PDT by sourcery (The Evil Party thinks their opponents are stupid. The Stupid Party thinks their opponents are evil.)
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To: Princeliberty
At this point I don't think there is realistic way a depression can be avoided.

I unfortunately agree with you. A depression is on the horizon.

10 posted on 06/09/2003 12:19:10 AM PDT by SwordofTruth
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To: Princeliberty
True but Russian economy now more then oil...expending. Oil was fuel to start wheel rolling.
11 posted on 06/09/2003 10:15:10 AM PDT by RussianConservative (Hristos: the Light of the World)
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To: ExGuru
Putin hand picked by Yeltsin handlers to safe guard fortunes...unfortunetly for thieves, hand picked didn't stay pet for long and turned on the theiving weasals....several in jail, several in self exile.
12 posted on 06/09/2003 10:18:19 AM PDT by RussianConservative (Hristos: the Light of the World)
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