Daily economical review 05.11.2024 #2

ekonomiarosji.pl 8 months ago

We invitation you to a subjective overview of the regular economical review of information from Russia.

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Shorts:

  • The national Antitrust Service (FAS) reported that it detected a cartel under the national "Safe advanced Quality Roads" task of more than 1 billion rubles.
  • The German Rheinmetall company will shortly complete the construction of its second plant in Ukraine. NATO Secretary General Mark Rutte said so.
  • Donald Trump proposed to repay US public debt by issuing cryptocurrency: “I will compose a tiny article on the allocation of $35 trillion in cryptocurrency, and that is all, we have no debt”
  • Over 3 1000 foreigners who participated in the 3 day operation in Ukraine received Russian passports
  • The president of Belarus said that the country "is truly a dictatorship", but it is "a dictatorship of justice: stability, security, order, kindness and hospitality." He besides said that foreigners “willingly” visit the republic, “despite lies spread about the Belarusian state”.
  • Finnish defence minister Antti Häkkänen told Yle that in "European taxpayers' wallets" more money must be found to support Ukraine if support from the United States weakens.
  • Patriarch Cyril believes the thought of creating managers with heroes of a peculiar military operation is on time.
    1. Three Russian oil refineries were partially closed due to repair problems.

    Russian oil companies are experiencing expanding difficulties in repairing refineries equipped with imported equipment.

    Three refineries were incapable to complete their planned repairs full in October and extended the downtime of individual oil refining installations for all November, reported Reuters , citing manufacture sources.

    According to interlocutors of the agency, the oil refinery Łukoil in Volgograd is 1 of the 10 largest in the country with production capacity of 15 million tonnes per year, as well as the Ilsky and Yay refineries.

    As a result, the unused oil capacity will be 1.5 times higher than planned – alternatively of the deficiency of 1.2 million tonnes, 1.8 million will be missing, and possibly 2 million.

    Repair problems arise from Western sanctions, in which equipment and its components are not delivered to Russia. The fact is that the plants built and upgraded were supported by European and American companies specified as UOP and ABB – they, according to Reuters interviewers, provided technology and software for each of the 40 largest refineries.

    Due to the inability to get part of the imports at the beginning of the year, in the 4th in the country of Rafinery Nafty Łukoil in Nizhny Novgorod, the processes have been dead for at least 4 months. The plant broke down the American production turbine, which forced it to reduce production by 40%.

    Already in russian times, technologies for refineries were bought from the West, especially installations for catalytic reform, notes Sergei Kondratiev, deputy head of the economical Department of the Institute of Energy and Finance. After the collapse of the USSR, import dependency became almost complete: in the first decade of the 21st century, abroad plan solutions accounted for 80% of oil refinery equipment – Kondratiev estimates.

    Rafineriom never managed to control to national, despite the state's import substitution policy. "Currently, home producers account for only 45% of the pump equipment market, 40% compressors for refineries, 30% reactors and coke chambers. For another types of equipment, the share of Russian suppliers is even smaller. Therefore, the restrictions imposed by the United States, EU countries, Britain and Japan on the supply of refinery equipment to Russia have importantly slowed down the implementation of plant modernisation projects," Kondratiew notes.

    The problem was aggravated by attacks by Ukrainian drones, which resulted in Russia losing about 15% of its processing power at the beginning of the year. Oil workers have requested aid from China, which has the right technology. However, this dramatically increases repair costs, as it is essential to complete the replacement of full lines due to compatibility problems.

    The full stopover of primary processing in Russian refineries during the period January–November 2024 was 39 million tonnes, or 5.2 million tonnes (+5%) more than in the same period last year.

    2. FSB is searching politician Rostov's office.

    Federal safety Service (FSB) staff were curious in erstwhile politician of the Rostov Oblast Vasily Gołubiew, who announced his resignation on 4 November. According to a 161.ru source, safety forces who came from Moscow interrogated an authoritative in his office and confiscated documents.

    A spokesperson for publications in law enforcement authorities said that FSB officers are planning to carry out “accurate control in the authorities” of the region. "The cleaning has already started. <... > Criminal cases will be brought. Among the suspects of corruption fraud with large funds are respective deputy city administrators of Rostov Alexey Logwinenko. The FSB officers besides have claims against the Minister of Transport of the territory of Vitali Kushnariev.

    This information was confirmed by the interviewer of the publication in the government, noting that, among others, safety forces demanded papers on the West Accord task and the improvement of the Left Bank. "There were large violations revealed," he said. "Now the documentation on the cash flow during the construction of facilities for the planet Cup" is besides actively checked.

    There were no comments from Gołubiew himself. He had previously explained his resignation by moving to a fresh workplace, but he did not give details.

    Gołubiew was the head of the Rostov circuit for over 14 years. Russian president Vladimir Putin appointed Yuri Sluzar, who was the CEO of the United Aircraft corp (UAC), which is part of Rostec, serving as politician of the region. The election of the head of the Rostov territory will take place on 14 September 2025.

    3. Russia lacks trucks, drivers and warehouses.

    Today, statements of the union of dealers and Russian carriers who compose letters. I'll tell you. All letters are for power. It's like they don't realize it's the power that premeditatedly does.

    The main causes were the sharp increase in the recycling charge and the increase in leasing rates, which prevents many cargo carriers from buying fresh trucks. On this occasion, the Union of Dealers and Carriers wrote an appeal to the Russian Ministry of manufacture and Trade.

    As of 1 October, the recycling rates of trucks weighing between 12 and 20 tonnes increased by 70-85%. This will yet lead to an increase in the cost of tractor saddles by 12%, i.e. by about 9.8 million rubles, and hooks by 20 million rubles.

    Alexander Strochkov, manager of abroad business in Sinoway Group, noted that officials were trying to attract Chinese producers to the location of production in Russia, but this had the other effect: the availability of both abroad and Russian cars declined significantly.

    According to Strochkowa, the stock of freight trucks, which passed customs clearance before the increase in the recycling charge, will only last until the end of the year. Then the price increases will become inevitable.

    And in the wake of the trucks, the price of food in the nets will increase. After all, it is the trucks that deliver goods to the popular commercial networks. The deficiency of dense work vehicles for agricultural producers creates an additional hazard of food price inflation. How do you decision vegetables from fields? The factories and factories requiring regular supply of natural materials and components will besides be affected. The shortage of trucks may consequence in disruptions in production processes and an increase in order transportation times. Fast transportation of materials is besides crucial for the construction industry. The shortage of trucks can slow down the pace of construction and increase plan costs.

    Wadim Filatov, president of AutoGruzEx, believes that Russian factories are incapable to compensate for the import deficit due to insufficient production. If the marketplace needs around 50 000 tractors with a burden capacity of 18-20 tonnes, then national companies can offer no more than 20 000 units. These words were confirmed by Alexander Tsypin, the founder of the strategical advisory agency. He points out that KamAZ has learned to produce only 10–15,000 K5-based tractors per year. MAZ-5440 Prostor is obsolete, and Nizhny Novgorod Trucks is only starting to mount Valdai vehicles and is improbable to be able to produce more than a 1000 tractors by the end of the year.

    4. The inhabitants of the Kurdish circuit recorded an appeal to Putin

    Residents of the border areas of the Kursk region are massing their appeals to Russian president Vladimir Putin in connection with the failure of property following the invasion of the Armed Forces of Ukraine. They ask the head of state for assistance in the payment of compensation and the transportation of certificates of fresh housing.

    The administration of the village council of Szeptukowski published 24 films with appeals from residents of the Korenewski territory to Putin

    In 1 of them, coming from the Šeptuchowka Tatiana Kurchina said that there were respective generations of her household surviving in the village. "And now the war virtually threw us all out. She took her children distant from childhood. <... > present I am mostly held in suspense. We don't really know where to turn or who else to. We are truly asking for help," said the pensioner, in tears.

    In another appeal, a teenager said that his large household had been forced to leave their home in Szeptuchowce due to war effort. He added that 1 of his brothers went to war in Ukraine, and parents with another children had to rent an apartment.

    The teenager asked Putin to supply him with a certificate of an flat "somewhere in a quiet place", as he and his loved ones fear that the Armed Forces of Ukraine will start shooting at the Kurdish villages again.

    A lot of people said they couldn't come back due to the fact that their homes were destroyed and showed footage of the damage.

    The publication with video transmissions precedes the announcement that the Armed Forces of Ukraine are inactive in the forests close border villages where fire takes place and kamikaze drones fly.

    "Helping residents to issue housing certificates, compensation for failure of agricultural holdings, equipment, agricultural crops, real estate, business activities.

    We ask for all residents of the border area, of which there are over 100,000 people, who, like us, have been left without anything. <... >We, citizens, are not guilty that we had to leave everything and run away, what we were both dressed and dressed for” – emphasized in the appeal. “Who took TVs, who had what.”

    The Russian military in the Kursk Oblast plundered the homes of surrounding residents

    Prior to that, the authorities of the Kursk region refused to issue certificates of acquisition of fresh housing for refugees from the armed forces of Ukraine Suja.

    Construction Minister Aleksandr Afonin said that the decree on compensation for the failure of homes as a consequence of the firefire was drafted before the Ukrainian offensive, which began on 6 August. Currently, 8 powiats and over 150 000 people have been evacuated from the region, so the issuance of certificates of specified a number of residents will consequence in a "significant outflow of the working population" in the region," said Afonin.

    Due to this statement, deputies of the typical assembly of the Sujań Region appealed to the prosecutor's office.

    On October 24, the deputy politician of the Kurd territory of Sergei Starodubcev said that the harm caused by the invasion of the Armed Forces of Ukraine was over 117 billion rubles, exceeding the region's yearly budget.

    Earlier, Putin made it clear that the Russian army's precedence was to win Donbass, not to liberate its own territory.

    5. "Forget about sanctions": Lukashenko announced Belarus' adjustment.

    Belarus has adapted its abroad policy, given the “crazy” sanctions imposed on it, said the president of the country Aleksander Lukashenko. The head of state listened to the study on staff issues in the Ministry of abroad Affairs, writes Belta.

    Like I said, forget those sanctions, halt talking about them. They don't exist. Yeah, what kind of sanctions? We have re-orientated our business and business; we are not an army state. Yes, we sale a lot in relation to what we produce in our country, but these are not gigantic quantities," Lukashenko noted.

    Belarus's president Aleksander Lukashenka proposes to reduce the production of potassium fertilizers by 10–11% due to low prices," says BelTA. In his opinion, everyone will then realize that they are “expensive products”.

    Such prices in past I do not remember: very low prices of potassium fertilizers, although the work of miners is not easy. It may be worth talking to the Russians, consulting and reducing production by 10, possibly 11 percent, ” he said.

    Lukashenka added that on the home marketplace fertilizers (potassium, phosphorus, nitrogen) could shortly begin to sale at real costs. After reducing potassium production, Minsk wants to increase food production.

    It has late been revealed that a cargo ship flying the flag of Malta with Russian fertilizers for respective weeks could not enter any European port, although it was damaged and needed repair. The bulk ship carries 20,000 tons of ammonium nitrate. Ports refuse to accept it after erstwhile Lithuanian ambassador Eitvydas Bajarunas called the ship “a floating megabomb”.

    PhosAgro previously recorded an increase in fertilizer supply for the Russian agricultural sector of 5.4% for the first 8 months of 2024. The volume of deliveries increased to more than 2,5 million tonnes, the company stated. According to CEO Mikhail Rybnikov, in the last 10 years, the company has almost doubled the supply of fertilizers to the Russian marketplace – up to 3.3 million tonnes.

    7. The Russians note an increase in the price of basic products, goods and services

    62% of the Russian population surveyed by the Public Opinion Foundation (FOM) during the period from 25 to 27 October noticed an increase in prices of basic products, goods and services. It's a evidence value since January erstwhile it was 66%.

    In addition, 39% of respondents anticipate to further accelerate the price increase of basic products, goods and services. This is simply a evidence value since November 2023, erstwhile it was the same 39%.

    A survey conducted by the Public Opinion Foundation (FOM) between 25 and 27 October in 104 localities of 53 regions of the country.

    8. Russia will pay in rice and $200 million in the DPRK Army

    Russia will supply the DPRK with 600–700 1000 tons of rice per year and pay the North Korean army $2,000 a month. The Korea Herald paper writes about this, referring to Korean MP Wi Seong Lak, whom the National Intelligence Service of South Korea informed about the agreement between Russia and the DPRK.

    The agreement between the countries besides provides for the supply of space technology in connection with Pyongyang's quest to launch another military reconnaissance satellite and Russian military engagement in combat operations on the Korean Peninsula in the event of war.

    According to Wi boy Lak, sending 10,000 soldiers to Ukraine, the DPRK will receive an yearly income exceeding $200 million.

    "It's not that bad," he noted. He added that the agreement will mostly address the financial and food crises in North Korea.

    According to South Korean intelligence, about 4,000 North Korean workers are besides present in Russia. Their average wage is about $800 a month.

    According to Wee, North Korea produces about 4 million tons of rice, barley, and wheat annually. But in fact, most of the country's "production of rice" is potatoes and rice accounts for little than a 3rd of the full production.

    "If Russia offers 600–700 000 tonnes of rice, it will be adequate to cover more than half of North Korea's yearly demand," the deputy says.

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