Russian Middle Class Hurting - Week 11

The middle class of Russia is said to be slowing down.  This is said to be due to the sanctions placed on Russia in the recent Russian-Ukrainian dispute.  Sixty percent of Russian citizens are said to be of the middle class but that account was taken in 2010 which had increased for a nearly thirty percent increase from 2001.  The economic growth is slowing down which is also preventing the middle class from growing larger.  Some people have predicted that the middle class of Russia will not be affected in a big way but others think it will deplete drastically.  Since the economy is bad, this will reduce the amount of jobs and make the unemployment rate increase.  Also, the middle class of Russia will not be buying many extra goods or services because they don't have the money to spare during these hard times.  This means they won't be buying American products which may hurt or economy slightly.

 Work Cited

Eremenko, Alexev. "Russia's Growing Middle Class in for a Scare | Business." The Moscow Times. The Moscow Times, 21 May 2014. Web. 31 May 2014. <http://www.themoscowtimes.com/business/article/russias-growing-middle-class-in-for-a-scare/500635.html>.

Sanctions Placed on Russia - Week 10

This article is about how sanctions are being placed on Russia by the United States and the European Union.  These were put up after the recent and ongoing tension over Crimea in Ukraine.  The sanctions are worth 1.5 Billion dollars to stop U.S. businesses from selling their products to Russia.  It is meant to persuade Russia into stopping its actions in the Ukraine conflict and stop them from taking Crimea.  This is going to hurt Russia and will also backfire by hurting the U.S. businesses.  All businesses involved are losing money due to the restrictions and this means that prices will rise due to the lack of profits.  It is going to hurt everyone's economy if they are involved.

Works Cited

Skove, Sam. "U.S. Ceases Issuing Export Licenses on Some Goods Destined for Russia | Business | The Moscow Times." The Moscow Times. The Moscow Times, 28 Mar. 2014. Web. 28 Mar. 2014. <http://www.themoscowtimes.com/business/article/us-ceases-issuing-export-licenses-on-some-goods-destined-for-russia/496995.html>.

Crimea's Affect on Russia's Economy - Week 9

 Recently, the possibility of Crimea annexing into Russia has been a huge media frenzy.  Now that Crimea has completed a referendum in favor of joining Russia, many people wonder how it will affect Russia's economy.  The President Putin of Russia, believes that Crimea "...will replace Egypt as a tourist hotspot, its offshore oil and gas reserves will cement Russia's position as the world's top energy producer, and its spas will revive the state sector's weary workforce...".  While others believe it will hurt the economy due to all the reparations that will have to occur to supply Crimea's electricity, food, and water.  Over 85% of Crimea's electricity and over 90% of their food and water comes from Ukraine.  It is very bad that Ukraine will be able to control Crimea instead of Russia even though Russia now has control over Crimea so that is why Russia needs to help supply the food and electricity.

Works Cited

Reuters. "Crimea Transition to Have 'Serious Impact' on Russian Economy | The Moscow Times." The Moscow Times. The Moscow Times, 19 Mar. 2014. Web. 19 Mar. 2014. <http://www.themoscowtimes.com/business/article/crimea-transition-to-have-serious-impact-on-russian-economy/496405.html>.

Russian Real Estate - Week 8

The article is about the boost in property sales in Russia over the past few months.  Twenty-percent more properties were sold or bought in the months of January and February of this year than in the same months of last year.  This increase has been credited to the decrease in value of the Russian Ruble.  Investors are taking their money out of banks and instead investing them in property to make a profit.  This is going to help the Russian economy by stimulating business and may even possibly help stabilize the Russian Ruble although with the money being pulled out of banks, it could also significantly damage the Ruble's value.  Also, it will bring more business to Russia with more investors prepared to spend their money on all of the properties.

Work Cited

D'Amora, Delphine. "Ruble Fluctuation Boosts Moscow Property Sales | The Moscow Times." The
Moscow Times. The Moscow Times, 11 Mar. 2014. Web. 13 Mar. 2014.
<http://www.themoscowtimes.com/news/article/ruble-fluctuation-boosts-moscow-property
sales/495891.html>.

Market Repercussions - Week 7

The articles are about how the current tension between Ukraine, Russia, and the European Union has affected or will affect the global and local markets.  Due to the turmoil over Crimea, many people have been selling their Russian shares in the stock market in hopes that the don't lose money if shots start to be fired.  The ruble is losing its value due to the conflict and therefore people are getting out before it gets any lower. Although many people are selling, Russia has said they are not losing any of their important investors.  This is important because the Russia stock market is going to plummet even more if the conflict erupts and the ruble will drop too.  Much lower than it has already dropped since the beginning of the year.

Works Cited

Medetsky, Anatoly. "Investors Unfazed by Ukraine Conflict | The Moscow Times." The Moscow Times.
The Moscow Times, 5 Mar. 2014. Web. 05 Mar. 2014. <http://www.themoscowtimes.com/news/article/investors-unfazed-by-ukraine-conflict/495591.html>.
Reuters. "Markets Feel Repercussions of Ukraine Turmoil | The Moscow Times." The Moscow Times. The Moscow Times, 28 Feb. 2014. Web. 05 Mar. 2014. <http://www.themoscowtimes.com/business/article/markets-feel-repercussions-of-ukraine-turmoil/495380.html>.

Gas Market - Week 6

 The demand for natural gas has increased throughout the world.  The production of natural gas is set to increase to double what it was last year at 300 million tons to 600 million tons.  Currently, Russia is the largest natural gas supplier to Europe.  They charge high prices so Europe is looking to find another trading partner, which could be the United States since we are putting out record amounts of natural gas that we have found inside shale reserves.  This means that the price of natural gas should drop due to the competing prices between Russia and the United States.  This will mean that consumers, like my family, will save massive amounts of money.

Works Cited

Reuters. "U.S. Set to Challenge Russia on European Gas Market." The Moscow Times. The Moscow Times, 24 Feb. 2014. Web. 24 Feb. 2014.

Oil Exports - Week 5

China's oil demand rose 1.6% from last year which is the slowest it has ever risen in over 20 years.  Russia hasn't been able to sell as much oil to them, which China and the rest of Asia is who their primary consumers are.  They are dropping the prices for a gallon of crude oil in order to be able to sell more and make up for the money they lost last year.  This means that oil prices all over the world will drop if even just a few dollars or cents allowing for more gas to be purchased at lower prices.  The gas prices in the U.S. should drop slightly allowing for cheaper travel for my family and I.  Also we will save some money to spend on other necessities or luxuries.

Works Cited

Reuters. "Russia Boosts Oil Exports to China Despite Demand Slowdown." The Moscow Times. The Moscow Times, 20 Feb. 2014. Web. 20 Feb. 2014. <http://www.themoscowtimes.com/business/article/russia-boosts-oil-exports-to-china-despite-demand-slowdown/494916.html>.

Russia's Auto-Industry - Week 4

Domestic car production in Russia dropped 1.8% in the 2013 sales year.  Russia's largest car-making company, AvtoVAZ, dropped 15% in sales which was a drop from 537,625 cars to 456,309 cars.  Another company, Renault, had its sales rate increase from 189,852 cars to 210,099 cars.  They were able to be successful due to their car, the Duster, which is one of the most popular cars in Russia as of last year.  This means that car companies are going to be looking for ways to improve their sales rating.  This affects me because car prices are going to fluctuate and increase due to the fact that they need to make up for the cars that they were unable to sell.  Since I am almost able to drive, I will be looking for cars I may want to save up to buy.

Works Cited

Medetsky, Anatoly. "Winners and Losers in Russia's Shrinking Car Market (Video)." The Moscow Times. The Moscow Times, 10 Feb. 2014. Web. 11 Feb. 2014. <http://www.themoscowtimes.com/business/article/winners-and-losers-in-russias-shrinking-car-market-video/494183.html>.

Corruption in Russia and the European Union - Week 3

This article discusses how there is corruption in the world but mostly focuses on corruption in the European Union and in Russia.  A report came out stating that not one person belonging to the European Union is free of corruption.  It is estimated to take $162 billion in bribes to get stuff done compared to the $300 billion in bribes it takes Russian officials to complete tasks.  It causes some more people to hate the government and the rich as they may think they got it from shady deals.  This article brings authority into question as I am unsure if the U.S. officials requires as many bribes as the European Union officials or Russian officials.  It was very surprising to see how much money is wasted for corruption in the government.

Works Cited

D'Amora, Delphine. "Report on EU Corruption Could Spur Russian Recrimination." The Moscow Times. The Moscow Times, 5 Feb. 2014. Web. 06 Feb. 2014. <http://www.themoscowtimes.com/business/article/report-on-eu-corruption-could-spur-russian-recrimination/493896.html>.

Russian Ruble Value Decrease - Week 2

The value of ruble, the Russian form of currency, has dropped by over 3% against the dollar just this week and by over 6% just this month. Right now, it is at the all-time low when weighed against the Euro.  Many Russians want a hard currency instead of the fluctuating ruble.  This means that many Russian people will have less money to spend on goods and services that are from the rest of the world.  The drop will affect the global economy and the Russian economy.  Throughout the drop though, the U.S. dollar's value will increase, which is good for American citizens.

 

Works Cited

"It's Been a Bad Week for the Ruble." The Moscow Times. The Moscow Times, 30 Jan. 2014. Web. 31 Jan. 2014. <http://www.themoscowtimes.com/business/article/its-been-a-bad-week-for-the-ruble/493646.html>.

New Companies in Russia - Week 1

Since the beginning of 2013, 411,900 new companies formed in Russia.  That was an increase in growth of companies of 3.3% since 2012.  Also, the number of companies who shut down decreased by over 18%.  That was over 90,000 more businesses staying open on average.  Less companies filed for bankruptcy also, down from 10,100 in 2012 to 9,600 in 2013.  2% more companies were in able to stay open since they passed the state registry from 2012.  I find it astounding how the amount of companies in Russia are increasing.  It will open up more job opportunities, help boost their economy, and increase their Gross Domestic Product(GDP).  Also, new companies mean new products and gadgets that can be invented and sold.

Works Cited

"Number of New Companies Set Up in Russia Grew 3.3% in 2013." The Moscow Times. The Moscow Times, 24 Jan. 2014. Web. 24 Jan. 2014. <http://www.themoscowtimes.com/business/article/number-of-new-companies-set-up-in-russia-grew-33-in-2013/493310.html>.