Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Bond Market Panic Continues Towards May Expected Japanese Rate Hike Volatility Spike - 24th April 25
Stock Market Tarrified as President Dump Risks Turning Recession into Stagflationary Depression - 21st April 25
President Dump Delivers BEAR MARKET - Stock Market Battles Between Order and Chaos - 7th April 25
Stocks Bull Market End Game Bear Start Strategy - 20th Mar 25
Gold and System Collapse: Charting the Bank Run of the Mighty US Dollar - 20th Mar 25
Tesla's Troubles — Is it Musk or is it More? - 20th Mar 25
The Stock Market Bear / Crash indicator Window - 9th Mar 25
Big US Tech Stocks Fundamentals - 9th Mar 25
No Winners When The Inflation Balloon Pops - 9th Mar 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Russian Economy Outstrips BRIC Peers

Economics / Russia Mar 18, 2010 - 11:49 AM GMT

By: Pravda

Economics

With the price of oil now up to 80 USD per barrel (after hitting 40 USD in early 2009) and a continued strengthening of the currency set to last, Russian funds received 411 million dollars in foreign investment in the week ending March 11, the highest level in six months, nearly half of this going into Exchange-Traded Funds tracking Russian indexes, a clear sign of the confidence in the emerging markets in Russia.


In comparison, China received 83 million USD, India 67m. and Brazil 47m. in the same period, causing a turnaround in the situation of recent months when Russia lagged behind her BRIC partners.

Moreover, the investment in Russian Funds is not simply in those companies involved in the commodities markets (namely oil and gas) but now increasingly in the retail sector and banking.

Meanwhile the Russian Economic Development Ministry has revised its predictions for growth of the Russian economy for 2010 from 3 to 3.5% to 4 to 4.5%. Deputy Economic Development Minister Andrei Klepach stated to RIA Novosti that “Added to the third and fourth quarter growth of 2009, (economic growth) could be as high as 6%. Economic growth could be from 4 to 4.5% - this is realistic enough”. He added that Russia’s GDP* in 2012/13 is expected to grow by 5% at least.

Nord Stream provides security and money

Meanwhile Nord Stream (a natural gas pipeline under the Baltic Sea) has

received 5.3 billion USD in financing, which will allow for the beginning of the construction of the project. 26 banks will secure the financing of this phase of the project, this despite the economic and banking crisis – a clear sign of international confidence in the project. Nord Stream will procure financing for the second phase of the project later in 2010.

Nord Stream consists of two pipelines with a total cost of 10.1 billion USD. Russia’s energy company Gazprom has a 51% stake in the project, while the German groups BASF/Winterhshall and E.ON Ruhrgas have 20% each, while the Dutch group Gasunie has the remaining 9%.

The first delivery of the gas should take place towards the end of 2011, opening up an alternative route for Russian gas outside the Ukraine.

* Sources: EPFR Global

Financial Times

RIA Novosti

Timothy BANCROFT-HINCHEY

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in