The Russian economy (catch all)

[OUTLAW 09]

Russia reduces gas exports to Poland



It looks like a test, which obvioulsy gets denied to see the initial Polish, Ukrainian and European reaction. One has to keep in mind that the SU was a reliable supplier, especially in the later stages when it needed all the hard currency it could get. The Kremlin seems to increase it's stakes in the play about Russia's future.

Firn---thought sanctions were to be against the "others" not your own population.

Well it's back to the Russian Lada (the old Fiat 424) and baggy clothes fashioned from the 30s I guess.

Somehow the Kremlin doesn't seem to get that #sanctions is what you do to SOMEBODY ELSE.
#foodban #clothesban #caran
http://www.vedomosti.ru/politics/new...ilej-i-odezhdy …

[OUTLAW 09]

Firn---seems to be an unintended side effect of the Russian food bans.

Is Putin's food ban triggering bloodshed on Moscow's fruit and veg markets?
2 contract killings already:
http://www.gazeta.ru/social/2014/09/10/6209477.shtml

[Firn]

Russia restricting Austria's gas supplies

I have made a quick search if other European countries suffered also a drop in supply.

According to the energy regulator E-Control, Gazprom supplied Austria 15 percent less gas than had been previously agreed.

Similar issues have hit Poland, which has seen their supplies cut by 45 percent, and Slovakia, which has ten percent less gas than expected for the period.

I don't know how this compares to previous episodes, it might be just coincidence, but I think most will be rather sceptical. The Kremlin plays with the trust posed in it's role as supplier, which was formed during the cold war.

In any case tomorrow the new EU sanctions should be put in place. I'm curious what kind of counter-sanctions to expect from the East. After the food bans I would not rule out a lot.

[OUTLAW 09]

Firn---seems to be an unintended side effect of the Russian food bans.

Is Putin's food ban triggering bloodshed on Moscow's fruit and veg markets?
2 contract killings already:
http://www.gazeta.ru/social/2014/09/10/6209477.shtml

This appeared today via RIA concerning possible inflationary increases due to the banned foods and other products.

There was a short Interfax release yesterday that some of the banned items still on the shelves are being priced 21% higher than before the ban---not so sure even the CB even understands the price development on banned items--since many of their employees started after the Cold War days where banned items were being sold on the black markets across the entire country as a way of life.

From RIA today:

MOSCOW, September 12 (RIA Novosti) – The Russian Central Bank said in a statement Friday that import restrictions will have a short-term influence on price growth in Russia.

“The growth in inflation was also caused by the introduction of restrictions on foreign trade,” the bank said in a statement. “Further inflation dynamics will be determined, among other things, by how fast the economy adjusts to these restrictions. It is highly probable that the increase in the consumer price growth rate, caused by the above-mentioned factor, will be short-term.”

According to Russia’s State Statistics Service, prices gained 0.2% since September 1 and 5.8% since the start of the year.