by Scott Humor
- What does Russia produce? 1
- What does Russia produce? 2
- What does Russia produce? 3
- Made In Russia SITREP IV
- Made in Russia V
- Made in Russia VI
The transcript of the video with sources
The best news of the week that you might have missed.
Time of Production [0:23]
In Yakutia opened a new mining and processing plant with an investment of 11 billion rubles. [0:24]
Major mining and processing complex opened in Zabaykalsky region [0:31]
The Perm GRES power station tuned on its fourth unit, which includes the largest combined cycle plant in Russia. With this the Perm TPP becomes one of the five largest thermal power plants in Russia.[0:37]
A photo galley with amazing images of the station is here This will give you an idea how enormous in size this power station is, and how innovating it’s industrial design.
A new factory of personal hygiene products with a total investment exceeding 1.5 billion rubles opened in Tatarstan. [0:52]
The Altai tire manufacturer has mastered production of large tires with 2 meters in diameter for the agricultural vehicles and specialized machinery. [1:00]
A new solar power energy plant started operating in the Astrakhan region [1:10]
The diamond cutting and polishing factory with an investment of US50 million started its production in Vladivostok. This manufacturer is operated by the Indian KGK Group. [1:15]
In the Khabarovsk region, started operating a new plant for deep wood processing with investment of 12 billion rubles. [1:22]
The Tomsk Electromechanical plant started production of pipe fittings for construction with an investment of 1.5 billion rubles. [1:29]
An industrial pork production plant opened in Mari El Republic [1:39]
In the Belgorod region, a new large cheese factory was opened with total of 1.5 billion rubles in investments.[1:43]
Time for Export [1:50]
In the last issue we told you about the first shipment of railway wheels produced in Russia for the German Deutsche Bahn by the EVRAZ Nizhny Tagil Metallurgical Plant (EVRAZ NTMK) an integrated metallurgical complex located in Nizhny Tagil, Sverdlovsk region.
Now it became known about the shipment of Russian high-speed railway wheels also went to Estonia.
They are made by the VSW in Nizhny Novgorod region, which is one of the world’s most advanced automated production lines of high-speed railroad wheels. [2:20]
Meanwhile, the Chelyabinsk Metallurgical Plant “The Ural Smithy” has shipped the first batch of its railway axles to Bulgaria. [2:25]
The Research and Production Corporation “United Wagon Company” (RPC UWC) historically known as the Tikhvin freight car building plant sent has shipped the batch of railcar casting to the US for the production of the railroad freight cars Barber S-2-HD. [2:30]
Company’s promo video is here.
It’s hard to overestimate this news, since the company has been able in the shortest possible time to master the production of the key components for this types of railroad cars, and the manufacturer has been certified by the AAR (Association of American Railroads) as an exporter for the North American market. [2:45]
By the way, another Russian company NPC Springs, a part of the United Wagon Company, last year started supplying the US manufacturer with heavy-duty railroad wagon springs. Generally speaking, without Russian production the American railroad cars won’t get too far.[2:57]
A separate important component of Russian exports is pharmaceuticals. [3:17]
According to recent data, the export of Russian pharmaceuticals in increased by 23.5% in just last six months. [3:27]
Most importantly is that the domestic market has been protected from imports.
The medications from the list of the vital drugs is already up to 83% being produced in Russia. In general, in real terms, the share of domestic medical products has reached 69%. This was made possible thanks to the opening of 19 major pharmaceutical manufacturing sites in the country for the last 4 years. [3:33]
Time for a breakthrough [3:57]
In Russia is expected a coming wave of the “big electronic import substitution.” In the next 2 years for these purposes will be spent 14.5 billion rubles, and the Ministry of Industry and Trade has announced several competitions for manufacturers and developers.
The task is ambitious and extremely important – to get rid of foreign radio-electronic components used in the military-industrial complex. [4:19]
The American, European and Asian circuits, controllers, routers, all kinds of amplifiers and other components will be produced in Russia and nowhere else.
However, some products are already being made.
So recently, the State Research Center ORPE “Technologiya” presented domestically developed sitall coated base for manufacturing of integrated circuits. [4:46]
This material is in high demand, but has never been made in Russia before. The first experimental batch is already being tested, and by 2018 the company is ready to begin mass production up to 100 thousand pieces a year.
Meanwhile, the Balkal Electronics developer has announced an upcoming release of its new generation of the Baikal-M processors. with up to eight ARM Mali™-T628 GPU cores.[4:14]
Hopefully, this is the beginning of a long journey for a competitive Russian microelectronics industry, first for the needs of the military and over time for the general consumers.
Time of the technology [4:40]
The Moscow autodrome hosted a public debut of Russia’s first flying motorcycle а HoverBike S3, which we described in past editions.
A pilot climbed to an altitude in one meter above the ground and flew about a kilometer. This bike reaches speed of 70 km/h and can be controlled by a pilot, and remotely, or even to move independently according to the given coordinates.
Among other assets of the developers there is also a cargo drone capable of delivering up to 100 kg. of cargo. [6:14]
Novosibirsk company Optiplane Unmanned Systems introduced its new model of unmanned tiltrotor aircraft with a record for its weight range of 50 km. [6:20]
This has been achieved through the use of a new hybrid helicopter-airplane design. The device has three engines, can reach speeds up to 65 miles per hour and hover over a desired point. These drones are beige used to monitor communications, forest, agricultural plots, etc.
The train builder Tverskoi Vagonostroitelny Zavod, or TVZver (Tver Railroad wagon manufacturer) presented the the next generation commuter train the innovative EG2Tv EMU known as Ivolga or Oriole. [6:62]
This is the first completely domestic train for speeds up to 160 km/h, designed and manufactured in Russia.
[I must add here that this is a train with a difficult history. The manufacture presented it back in 2014, but its production was railroaded by some liberal anti-domestic manufacturer forces. The EG2Tv EMU Ivolga project was shelved. Instead of giving life to the domestic manufacturers since this train is nearly 100% domestic parts and material made. Someone, if I am not mistaken, in the Ministry of Economic development decided that buying the German made trains was better. Now, things are getting back to normal. S.H.]
Construction Projects [7:21]
Usually we don’t mention new objects of the social infrastructure in Russia, and the spectators may get an impression that only plants and factories are being build in the country. It is not so. Therefore, we have prepared a selection of social facilities opened in the country over the last two weeks.
Two kindergartens for 450 children opened in St. Petersburg.
A kindergarten for 150 children opened in Smolensk.
A new building of the Moscow Morozov children hospital.
The state of the art hospital is equipped with the newest medical diagnostic equipment
A new perinatal center opened in Shchelkovo, Moscow region,
New volleyball centre opened in Grozny.
New perinatal center opened in Khakassia.
New Olympic size pool and the fitness center opened in the Tambov region.
The rehabilitation centre for the disabled and a new kindergarten opened on Sakhalin
A new building for the local children’s art schools opened in Vladikavkaz.
And also Russia’s first specialized Taekwondo Palace.
A new kindergarten opened in the town of Shimsk, the Novgorod region
Two new sport complexes with swimming pools opened in Saratov and Rostov provinces.
A new kindergarten opened in Ulyanovsk.
A new fitness center opened in Shadrinsk.
A new kindergarten opened in the town of Lesnaya Polyana in Kemerovo region.
A new skating ring or an Ice Palace opened in the town of Stroitel, Belgorod region.
A large new schools opened in Mordovia,
in Penza region and other cities and towns of our country.
The right thing to do [9:11]
A girl from Yekaterinburg was able to save an entire local village from extinction and managed to bring its residents back by creating jobs and hopes for better future.
To accomplish all that, she and her family had organized a small business production of honey and sweets. This turned out to be a good opportunity for local pensioners to capitalize on gathering berries, beekeeping,and packaging the products. Soon their small apiary turned into a shop that with participation of local residents year-round produced more than 100 kg of honey per week. Recently, the village opened a guest house for eco-tourists and in their nearest plans is a construction of a caramel factory and an establishment of the beekeeping cooperative.
This is an good example of a true social enterprise, when people participating in a project not only to earn money, but also to help others to become happier and to feel that they are valued by their community.
Try to make people around you happier and you will notice how you are becoming a happier person. We wish you a good and successful week! All links to the news release you’ll find on our site Time Forward.
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MADE IN RUSSIA Other September NEWS
COSCO Ship Sails from China to Russia via Northern Sea Route
Port Bronka in St. Petersburg welcomed Lian Hua Song, a multipurpose ship operated by COSCO that transited the Northern Sea Route (NSR) for the first time in the history of China-Russia relations, as part of the One Belt, One Road (OBOR) initiative.
The 27,412 dwt general cargo vessel delivered equipment for the construction of the subway and the renovation of Russian fertilizer producing facilities.
Lian Hua Song started its voyage from the Port of Lianyungang (China) on August 1, traversed the NSR and arrived in St. Petersburg, at the Multipurpose Sea Cargo Complex Bronka, on September 7.
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A Vladivostok branch of the Leningrad shipyard Pella is back to life after being nearly destroyed by the free -marketers of the 90s. Even ten years ago it looked abandoned, but today it’s buzzing with activities.
On September 4th they reported a completion of The sea part of official trial of tugboat “MB-92” yard no. 503 project no. PE-65
Pella’s youtube channel with the videos of their projects is here
On August 27 they reported conducting the yard sea trials of the head high speed patrol boat of project 03160 “Raptor”
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On September 6, President Vladimir Putin visited a brand new Project 20380 Corvette Sovershenny moored in Ajax Bay near Russky Island.
The Sovershenny (Perfect) corvette is the first ship under Project 20380 built at the Amur Shipyard. The ship is intended for patrolling, fighting against surface and underwater ships of the enemy and supporting amphibious operations in the close-in sea zone.
The Sovershenny – the newest class of corvette in the Russian Navy
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The GAZ Group auto manufacturer started production of its new YMZ-770 series diesel engine for heavy-duty vehicles and diesel generating sets at the International Commercial Vehicle Show COMTRANS/17. The company also plans to start production of the YMZ-53414 CNG and YMZ-53613 engines, which will expand their family of medium-sized in-line engines designed for trucks, buses and special vehicles.
Images and technical characteristics of the engines in English are here.
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The Bryansk Engineering Manufacturer (BMZ) started production of the new heavy two-section diesel powered locomotive 3ТE25KM2M made 90% of domestic parts and materials.
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Tatarstan, Voldograd and Kirovsky regions received first six new compact medical helicopters Ansat.
The Kazan Ansat is a Russian light, multipurpose helicopter manufactured by Kazan Helicopters.
Ansat is a light twin-engine multirole helicopter with a hydro-mechanical flight control system. Its medical module was certified to comply with all international standards for medical aviation.
A promo video to showcase a helicopter transformer Kazan Ansat / Ansat-U light utility multirole helicopter
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According to the Avtostat agency UAZ Patriot remains the bestseller among SUVs and crossovers.
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Comtrans-2017 International Commercial Vehicle Auto Show
Showcased new commercial vehicles of the Russian manufacturers
A software developer the BIA Technologies introduced their new product for the commercial vehicles drivers designed to work with all existing GLONASS and GPS systems. New mobile app is based on data provided to the company’s administered “Business lines” for commercial drivers with over 330,000 requests and questions processed per month. The new app provides commercial drivers with technical characteristics of roads and bridges, the best possible routes, weather conditions, new orders, and other information in real time.
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AVTOVAZ started the serial production of its 2018 LADA Vesta SW and LADA Vesta SW Crossover cars.
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GAZ Group introduces a new export model, Ural NEXT drop-side truck (6×6 wheel arrangement) with right-hand steering.
GAZ Group presented Ural road vehicles with 6×4 wheel arrangement. The first trial models of Ural vehicles with 6×4 wheel arrangement are exhibited at COMTRANS/17, Ural road dumper and Ural tractor unit are based on a single platform.
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In August, a volume of the auto market in Russia had reached the volume of an entire European auto market. To no one’s surprise, it attracts lots of attention.
So, when a German based Ukrainian designer came up with a much publicized claim that the giant automaker Ural borrowed his design for their bestselling URAL NEXT truck, all he could do was to present a drawing dated by 2016. Considering that the URAL NEXT truck has been manufactured since 2015 and it took some years to develop, a designer doesn’t have a leg to stand on. However, in this case the automaker is not ignoring this outrageous frivolous claim and the media campaign around it, but moving full force with a legal actions against this designer and possibly against media outlets that featured his story for libel and slander and unspecified damages to its brand.
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Once against, the Promobot proved that they are the best in showcases their technologies, when a robot capable of recognizing people’s faces greeted president Putin
Compare this with a new Apple iPhone failure to recognize the face of its creator during its public introduction.
Urban development
In September Moscow opened a new urban park Zaradye, located near the Kremlin and featuring a uniquely designed suspended bridge and floral representatives of three main Russia’s climate zones: tundra, steppe and forests.
At the construction site of this park archeologists found a number of artifacts dated 2-3 000 years B.C. which points out that Moscow has much longer history that previously thought.
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As a part of the state Import Substitution program, National Immunobiological Company produces the best-in-class immunobiological products for influenza prevention, “Sovigripp” and “Ultrix”, bacteriophages and botulinum toxin “Relatox”.
In the period of 2015-2017 the share of the Russian products in the vaccines procurement volumes has increased in monetary terms from 31% to 57%, respectively, as reported by Rostec.
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September 14 to 17 during the China Helicopter Expo – 2017 in Tianjin, the Russian Helicopters company showcased their new models of Mi-171A2 and light Ansat helicopters
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The Technodinamika holding company and Dynamika group of companies are merging to create the largest national company in the area of design and manufacture of aviation aggregates.
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KAMAZ issued a distributor certificate to a South African machine building company Bell Equipment possessing the largest dealership network in the region.
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One of the leading showpieces exhibited at Comtrans 2017 was KAMAZ new tractor truck with the K5 generation completely redesigned cabin.
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Uralvagonzavod Ural Construction Research and Production Company reported that its innovative Fire Support Combat Vehicle BMPT-72 Terminator-2 has been successfully tested in Syria in real battle situation.
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A snowmobile maker “Russkaya Mehanika” or “Russian Mechanics’ received financing from the Ministry of Industry and Commerce of Russia for manufacturing its new electric ATV quadricycle PM.
While developed on the basic model of PM 650-2 this is a high passability 2 motor-all-terrain vehicle. This new model of the ATV Russian Mechanics PM features’ 4 electric motors, one for each wheel.
The ATV line of the Russian Mechanics
The Snowmobile line
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In the past 9 years, our country has received 5 official International recommendations by the International Organization of Legal Metrology (IOLM). For comparison, the status of IOLM international recommendation was received by German metrologists for one development and Australian specialists for one development during the same period.
Agriculture
Russia, the world’s biggest wheat exporter is gaining new market shares in Asia, in China, Indonesia and Japan.
It’s due to droughts that are eroding production in Australia, the U.S. and Canada, the dominant suppliers of wheat to Asia, which accounts for about a third of global imports.
“While shipments of wheat from Russia already were expected to exceed those of any other country, very little usually ends up in Asia, where imports have almost doubled in a decade as rising incomes boosted demand for noodles, cakes and breads. But this season, Australian production will plunge the most in a decade, American farmers will have their smallest harvest since 2002, and Canada’s crop will shrink for the third time in four years.
“Russia will be a big winner,” said Benjamin Bodart, a director at adviser CRM Agri-Commodities in Newmarket, England. “Russia’s crop is expected to be a record. They will need to find markets to supply that wheat to.”
For a second straight season, growers from the Black Sea to southern Siberia are collecting Russia’s largest wheat crop ever. The U.S. Department of Agriculture estimates production will rise to 77.5 million metric tons, exceeding domestic consumption by the widest margin on record.” reported by agweb.
Giant Construction projects
Construction of the Kerch Bridge also known as the Crimean bridge
Kara class guided missile cruiser Azov passed under the Kerch bridge to Crimea accompanied by the anthem of Sevastopol
Here, a video of the Azov guided missile cruiser taken by someone on the bridge.
The entire system of the roads and highways in Crimea is being redeveloped to handle the traffic that will be coming via the bridge.
One of the main highways to be constructed is the Tavrida highway. A promo video for this highway provides an overview of the project.
The English language channel that has multiple videos of the different construction sites in Crimea. Some of the videos feature devastation left by the years of Ukrainian occupation of the peninsula.
Another construction of a century in Crimea that is never mentioned is a tunnel inside the Crimean mountains that will direct the railroad coming from the Kerch Bridge away from the populated seaside areas and will take it under the mountains for 1 kilometer. This video in Russian but with maps illustrates the complexity of this construction that no one is talking about.
Crimea Live youtube channel posts brief daily video reports on the construction of the Kerch bridge
Gazprom continues its construction of the Amur gas processing plant (GPP) near the city of Svobodny, Amur Region that will be the largest in Russia and one of the biggest in the world.
This promo video is in Russian, but it gives you an overview of the project.
The Amurgas AGPP construction site in August in English
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Gazprom Export LLC and the Croatian Prvo plinarsko društvo d.o.o. signed a long-term contract on natural gas supplies for the period from 1 October 2017 to 31 December 2027. The annual supply volume within the contract amounts to 1 billion cubic meters, and 0.25 bcm is to be delivered in the fourth quarter of 2017.
A featured image is of a new electric ATV quadricycle PM.
Scott Humor
Director of Research and Development
author of The enemy of the State
In case you have forgotten what happened in Ukraine, this book should refresh your memory with the incredibly precise and humorous chronicles: ANTHOLOGY OF RUSSIAN HUMOR: FROM MAIDAN TO TRUMP
I am reading Robert Massie’ s biography of Peter the Great and propose to name his successor from Petrograd by the name of Putin the Great. Mind you, both Peter and Putin are Great in inspiring the people of Russia to achieve the results that SH presents in this series. Spassiba.
That is correct. However, Putin the Great has many enemies in the West, who do not want to see Russia prosperous. They would rather see Russia broken up and plundered, all in the name of “human rights” and “democracy”. Those NATO bases surrounding Russia are proof of this.
What about Putin the Great Balancer ?
(Lada Ray calls Russia the Great Balancer. I have never heard a better description.)
Unacceptable. Putin the Great is accurate.
OT.
It’s now official. The SAA & allies have crossed the Euphrates, taken Marrat and Mazium and are on the way to liberating the first of many key oil fields on the eastern shore of the Euphrates, the Tabiyeh oil field.
The equally important Sakr island has also been taken but isn’t fully secured yet.
http://wikimapia.org/#lang=en&lat=35.324790&lon=40.265408&z=13&m=b
Thank you Scott.
A very interesting read and I particularly liked the bee honey initiative in Yekaterinburg. This should be promoted all over Russia and would be a good example for the Free Land initiative in the Far East.
The train developments are also a good step for the rail links between China and Russia for the OBOR. Interesting that the German companies were trying to dominate this – Siemens has already shot itself in the foot – so hopefully they won’t benefit!
Interesting about the Urban park and the construction site of this park archeologists found a number of artifacts dated 2-3 000 years B.C. which points out that Moscow has much longer history that previously thought – this wouldn’t surprise me….I look forward to hearing more.
The Ukronazi idiot who claims a company stole his design – well I am glad this company URAL isn’t taking this lying down and taking legal action…..sums up all the Ukronazi lies in a nutshell – they believe their own lies will go without recourse….not this time!
Lastly Prombot :)
This is a great summary, Scott. One note about grain: Canada is far enough North (like Russia) that it expects to benefit from climate change and Canadian grain exports are increasing. Just read about it yesterday:
http://www.ctvnews.ca/mobile/business/grain-handlers-spending-big-as-canadian-crops-set-to-feed-more-of-the-world-1.3593234
Thanks, Scott, for a marvelous tour of Russian industrial development.
I would like to see a tour of the MIC of Russia in the future.
Clearly, it would be a monumental task, but the work in these reports of yours is huge and deeply appreciated.
To get an overview of the great weapons and systems of Russia would be very interesting since Rogozin insisted that as much of the inventions and innovations in the products and systems should be dual use, military and civilian from inception.
Thanks again for the yeoman job on this report.
Hi Saker
I have a backround in finance and economics. Russia has the 6th biggest economy in the world when measured properly (GDP/PPP, the same method that the IMF, CIA and UN use) and the 6th most foreign exchange reserves in the world, even after sanctions and the oil crash.
Russia has a 13% flat tax and comparatively low 20% corporate tax. Both of which are very easy and simple to administer and are competitive with the rest of the world.
The Russian central bank head, won banker of the year award in 2017 by The Banker magazine of UK for her superb job in steering through the business cycle recession in 2014.
My question is, why are so many Russians themselves critical of their own economy ? Even you said in an interview that I heard on YouTube, that Russia has work to do on the economy and some reform ect is needed. Dmitri Trenin is always going on about “reforming” the Russian economy too.
Economies are complex things. If its not broken, dont try and reform it. Compared to the west and even China, Russia’s economy is one of the most balanced in the world.
So why all the talk about reform ?
Because private entrepreneurship in Russia is still not comparable to the West. Opportunities to start your own business and have relatively cheap accesses to capital are few and between , still lots of corruption , inefficient state apparatus toward little guy.
Besides big state owned companies ,some foreign and some oligarchic ones , there aren’t lot of organically grown private Russian companies with no connection to the power of state and favors to some politician in contrast to the west.
There is still less private capital and venture capital in Russia.
Then there is still too much buying of “social peace” so that nobody complains , I am not advocating here western liberal and crony capitalism , but there must be a limit on social giveaways and other subsidies if there is to be any healthy competition within society and initiatives for middle class.
In the simplest form middle class is milked by the rich and the poor.
Sounds like Russia could use a stronger small business lobby. I did see Putin speak to United Russia, encouraging the creation of new political parties, within the federal laws. It seems like every democracy needs a party for the workers/entrepreneurs/farmers, even if that party doesn’t rule the nation. It can still influence decisions, affecting thousands of people.
They already have these things.
Russian Union of Industrialists and Entrepreneurs
The Russian Union of Industrialists and Entrepreneurs, a lobby group based in Moscow, promotes the interests of business in Russia.
CrazySerb:
Then there is still too much buying of “social peace” so that nobody complains , I am not advocating here western liberal and crony capitalism , but there must be a limit on social giveaways and other subsidies if there is to be any healthy competition within society and initiatives for middle class.
In the simplest form middle class is milked by the rich and the poor.
You’re falling into the trap of Western economical thinking. Especially your last sentence highlights how divide and rule can be practiced. The rich can life a comfortable life whilst the middle class bitches about the poor. You don’t do the poor any favor by starving them to death. If you’re pushing them further down the drain you don’t have to be surprised if crime will flourish. This in turn will lead to calls for “law and order” and a militarized police to protect the middle class and especially the rich.
The best way would be for Russia to disconnect from the Western economic system as far as possible, print it’s own money and support small entrepreneurs. Further they should make sure that business ideas also consider the environmental impact. I was really glad to read on RT that president Putin opposed growing GM crops. No one (!) can pre-estimate the possible blowbacks of genetically altered organisms in our nature.
My advice to you would be to read all available books on economics. Economics isn’t a typical science like STEM. It’s a “social science”. Whilst man is able to calculate the approximate lifespan of electronics, metal parts, etc. it’s very difficult to “calculate” the outcome of human interaction (basically that’s what the exchange of money is).
@CrazySerb
Thats utter nonsense. Russia’s tax system is WAY simpler and its not any easier to start business in the west. Yasha Lavin is a Russian American (Not a Putin fan) and he said its easier to start a small business in Russia than it is the US.
Paul Holland
very good question!
Are you asking the Saker, or me?
If you ask me, I will try to answer your question in my next Made in Russia sitrep.
If you want to hear the Saker’s opinion, you have to ask him.
Sorry for the late reply. I am new to this comment forum. I was putting the question to both of you. But it was The Saker who made the comment about reforming the economy in one of his interviews.
I’ll stay tuned for your next economy thread.
My question is, why are so many Russians themselves critical of their own economy ?
While personal tax is low at 13%, wages in much of Russia outside the major cities are low. There is an 18% VAT on almost all purchases and electricity, gas, water and heating charges are comparatively high. Then there are the “hidden” charges on top of “free” education and “free” medical, plus a myriad of charges that simply didn’t exist under communism. It adds up to people feeling hard done by.
And while company taxes are low at 20%, there is the 30.8% Social Security taxes on wages, high interest rates on loans, a byzantine bureaucracy to deal with and multiple disincentives to start or expand a business. The amount of paperwork for just one simple export contract has to be seen to be believed. Every form has to be certified and stamped, often by different people who are almost always as far distant from each other as possible, and then there is the queuing and waiting. That’s why people are critical of the economy. It’s not corruption that is the problem as viewed in the west, it’s the byzantine bureaucracy!
Стивен:
Don’t you think that bureaucracy in Western countries is less. Everywhere it’s the same and everywhere people are complaining about it. It’s not just governments who are creating that mess. Corporations can be blamed equally. Think of all those certifications (for example ISO 9001, TS 16949, etc.). Those certifications are a big business too, especially for the companies involved in the accrediting process. On one hand there’s the need for making sure that minimum safety and quality standards exist, but on the other hand those certificates also serve as gatekeepers for discouraging new companies entering the already existing markets.
If you ever had the opportunity to have a peak into a large international company you’ll know that there are many paper pushers walking around. Sometimes you’ll find several “parallel” systems in different departments for a specific task (for example the parallel use of Microsoft Dynamics AX and SAP or the parallel use of the Lotus Notes Database feature and MS Access). If many of those large corporations would be restructured and the workflow streamlined you would put lots of people out of work. Sooner or later this process will start (like automation). If we don’t reinvent our economies – this includes western countries as well as Russia and China – and start building products that last a lifetime (instead the planned obsolescence), then we will run into even more severe problems. Peter Koenig writes excellent articles – in a way that especially non-economists are able to comprehend the topic as well – about the dilemma we’re in.
Well just speaking for Canada. We have a 14% VAT tax AND a progressive income tax which ranges from 25% to 50% a year. If you make 60-100 thousand a year, you pay anywhere from 30-50% tax. In some US states, you get taxed over 50%.
We also have a parallel health insurance scheme thats 100’s of dollars a month even though we have “free” healthcare.
This is my point. If they have it in Russia, its probably in the west too and everywhere I look, its worse in the west.
Do you really think its easy to start or expand a business in the west ?
what can I say? outstanding scott, much to explore, many thanks.
ochen xorosho.
I don’t watch CNN or any other Western propaganda media so I nave limited knowledge about the picture they paint of Russia (I presume it is black) , but I don’t know any rational person who is impartial and thinks that Russia doesn’t produce substantial goods.
In my view main problem of Russia is not that it produces nothing but that most of it goods and services are not competitive on the world markets for it to earn substantial foreign currency and have higher GDP growth.
Besides natural resources (oil,gas etc.) other export sectors are to put it politely small when compered to other countries of economy of similar size or population or territory.
On the other hand Russia imports still to much goods from the West. Imports substitution is still low and that impacts GDP growth to in a negative way.
If Russia whats to win this new Cold War it must in first place win it economically it must become strong exporter of capital machinery and creditor of allies and in the same time bring growth in standard of living for it own population.
But that requires some sacrifice in the short term try reformation of the economy at least for some parts of Russian society , Putin must do it sooner rather then later even if he loses some of the support in the process because the very survival of Russia depends on it.
The best news reported here are the efforts to create a “Russian microelectronics industry.” However it is a shame that Russia continues to cover the country in featureless, soulless, tower blocks, they have a track record of driving people to despair and contributing to a demographic decline. Why is it so difficult to build proper family homes?
Please can you back up your statement about housing with facts. Mod
Excellent work Scott, nothing else can be said.
BTW, to the guys promoting Putin the Great. In the past it was always the First Name the Great and everyone knew who that person was.
Excellent compilation, Scott.
I posted this article in the cafe, and then realized this news should be posted here:
Putin orders to end trade in US dollars at Russian seaports
https://www.rt.com/business/403804-russian-sea-ports-ruble-settlements/
Excellent as usual. It was interesting to hear, what V.V. Putin had to say the other day about emphasis on Russia’s technological independence, a very important thing for Russia..