Latest news with #MaximReshetnikov
Gulf Business
19 hours ago
- Business
- Gulf Business
UAE, Russia ink trade in services and investment agreement
Image: Supplied The UAE and Russia signed a Trade in Services and Investment Agreement (TISIA) on the sidelines of the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to Moscow, aimed at deepening bilateral economic ties. The agreement was signed by UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi and Russian Minister of Economic Development Maxim Reshetnikov. It will complement the UAE's existing Economic Partnership Agreement (EPA) with the Eurasian Economic Union, which covers goods, by providing a bilateral framework with Russia focused on services and investment. UAE-Russia non-oil trade on the rise The UAE's non-oil foreign trade with Russia reached Dhs42.23bn in 2024, up 4.9 per cent from 2023. In H1 2025, non-oil trade rose to Dhs24.42bn, a 75.3 per cent year-on-year increase. Al Zeyoudi said the agreement would strengthen the UAE's foreign trade network and expand collaboration in sectors such as fintech, healthcare, transport, logistics and professional services. 'The UAE continues to build partnerships around the world to achieve development and prosperity as well as provide more opportunities for the private sector and investors,' he said in a statement. The deal comes as part of the UAE's Comprehensive Economic Partnership Agreement (CEPA) In 2024,
Yahoo
6 days ago
- Business
- Yahoo
Putin unfazed as his economy holds up
The Kremlin claims to be unfazed by Donald Trump's new ceasefire deadline, and with good reason: though dangerously overheated by the war machine and western sanctions, Russia's economy is far from collapse. Sanctions are putting pressure on the rouble and dragging down economic growth as a boom driven by massive military spending comes to an end. They have also hit Russia's oil and gas revenues: they made up about 30% of the federal budget last year, and dropped by a third this spring. The country's oil exports remain stable by volume – albeit at lower prices. Growth is falling. In 2024 the economy grew by 4.3%, according to the state statistics agency Rosstat, up from 3.6% in 2023. But in the first quarter of 2025 growth had dropped to 1.4% and is predicted to level out at an annual growth figure of 1.6%. In June, Russia's economy minister, Maxim Reshetnikov, said the country was 'on the brink of a recession'. The International Monetary Fund (IMF) downgraded its forecast for the Russian economy even further. In its July World Economic Outlook Update, the IMF predicts Russia's gross domestic product (GDP) will rise just 0.9% in 2025, down from its 1.5% projection in April. The downturn was attributed to recent data suggesting a drop in retail sales and industrial production. The gloomy predictions have forced Russian officials to acknowledge the economic hit caused by the war in Ukraine and sanctions, particularly those restricting Russia's access to foreign markets and technology, that have affected the finance and energy sectors hardest. Elvira Nabiullina, governor of the Russian Central Bank, was even gloomier, saying the resources that had stoked growth in wartime – defying sanctions and pouring money into military contracts – had been 'truly exhausted'. The official inflation figure is about 10%, although independent analysts suggest it could be more than 15%. But even having constrained Russia's economy, existing sanctions haven't triggered collapse. Until now, Trump has not added new sanctions to those imposed on Russia by the Biden administration. Russia's economy is war-driven and state-controlled. Further sanctions might weaken it – or force the state to invent other ways of evading sanctions. Some Republicans think Putin can't go on dodging the sanction squeeze for ever. He seems determined to prove them wrong. Photograph by Dado Galdieri/Bloomberg via Getty Images
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First Post
29-07-2025
- Business
- First Post
Russia's war economy finally showing signs of slowdown: Good news or bad for Ukraine peace?
Russia's economic outlook is growing increasingly uncertain as it grapples with manufacturing declines and inflationary pressures, with the economy minister warning that the country was 'on the brink' of a recession read more Russia's economy, long propped up by heavy military spending, is starting to show cracks under the weight of sanctions and inflation. While wartime government expenditure has kept economic activity afloat, recent data suggests that without this crutch, the country could slide into stagnation. The nation's economic outlook is growing increasingly uncertain as it grapples with manufacturing declines and inflationary pressures. Signs of slowdown in Russia's economy In June, Russia's manufacturing sector took a sharp hit. The Purchasing Managers' Index (PMI), a key gauge of manufacturing health, plummeted to 47.5, marking the steepest contraction since March 2022, according to S&P Global. This was a stark reversal from May's PMI of 50.2, when manufacturing had shown modest growth. STORY CONTINUES BELOW THIS AD The downturn stemmed from a drop in new orders, driven by weak client demand and a strong ruble that has made Russian exports pricier on the global market. As a result, factories were forced to cut jobs at the fastest rate since April 2022 and scale back purchasing activity at a pace not seen in over three years. The broader economy is also showing signs of strain. Russia's economy is overheating, with rising wages and a shrinking workforce fueling inflation that has proven difficult to tame, even with high borrowing costs. In June, Economy Minister Maxim Reshetnikov warned that the country was 'on the brink' of a recession, a sobering acknowledgement of the challenges ahead. Inflation, which spiked to around 10 per cent earlier in 2025, has eased somewhat but remains above the Central Bank's target. In response, the Central Bank of Russia made a notable policy shift, cutting interest rates twice in 2025—first by 100 basis points in June to 20 per cent, and then by 200 basis points in July, bringing the rate to 18 per cent. These cuts reflect growing concerns about an economic cooldown and a need to stimulate lending to bolster activity. STORY CONTINUES BELOW THIS AD Business sentiment is souring as inflationary pressures squeeze consumers and the government signals tougher times ahead. Spending cuts are on the horizon, though slashing defence budgets seems unlikely given the military-industrial complex's role as the economy's backbone. This sector, heavily reliant on opaque financing and state support, faces its own risks. Reduced arms exports, sanctions blocking access to high-tech components, and a growing dependence on costly Chinese substitutes are all taking a toll. Beneath the surface, structural vulnerabilities are becoming harder to ignore. Adding to these pressures is external scrutiny, with figures like US President Donald Trump pushing for peace and threatening even more sanctions, which could further complicate Russia's economic and geopolitical calculations. As Russia stands at this crossroads, the question looms: Will President Vladimir Putin accept a slowdown and focus on stabilising the economy, or will he double down on war efforts to maintain momentum?
India.com
22-07-2025
- Automotive
- India.com
Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia?
Home News Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia? Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia? Carmaker AvtoVAZ is facing difficulties due to the high car loans and 'price dumping' of imported Chinese cars in the Russian market. Russia facing major crisis, biggest car company forced to work 4 days in a week, how China destroyed Russia? Moscow: AvtoVAZ, which is the biggest carmaker in Russia, is going to make major changes in the company. It is planning to reduce its work week from five to four days. Known for its Lada cars, AvtoVAZ is forced to take this step because of the decline in car sales due to high interest rates and the increasing challenge from Chinese competitors. Its sales have declined by 25 percent in the first six months. However, the carmaker has blamed the high interest rates of Russia's central bank, because of which people are not taking car loans. The increased production cost is also haunting the country. The situation has come to the fore amid slow growth and fears of recession in Russia's economy. It is also a sign of the major impact on the economy following two years of heavy defence spending on the Ukraine war. How Chinese Cars Dominating In Russian Auto Market Amid slow growth and fear of recession, 'price dumping' of imported Chinese cars in the Russian market is also a major problem for AvtoVAZ. Notably, 'Made in China' vehicles now account for more than 50 percent of sales in the country. AvtoVAZ also plays a part in the country's big economy as it employs over 30,000 people. It is worth noting, earlier the Russian government has previously provided financial assistance to the company to save it from bankruptcy. AvtoVAZ To Reduce Working Hours Russia's largest car company plans to reduce its working hours starting from September. It is considering working four days a week instead of five. The reason is declining sales. In June, Russia's Finance Minister Maxim Reshetnikov warned that Russia's economy is on the verge of recession. Russian car sales are projected to decline by 25% in 2024, mirroring a similar drop in AvtoVAZ sales during the first half of the year. Autostat reports that AvtoVAZ sales reached 155,481 units in this period, representing a 25 percent decrease. For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest World News on
Yahoo
14-07-2025
- Business
- Yahoo
Russians struggle to pay for potatoes as war eats up state funds
Russia has more potential agricultural area than anywhere else in the world but it has run out of potatoes and onions. Even President Vladimir Putin conceded there is a problem. "It turns out we are short of potatoes," he recently said, noting the lack of sugar beet and some other vegetables too. That came after the price of potatoes soared in Russian shops, almost tripling within the last year, according to official figures. Meanwhile the price of onions has doubled. Cabbage is now 50% more expensive than it was a year ago, says statistics agency Rosstat. Russians had to pay around $1 for a kilogram of potatoes in June but that is a lot in a place where pre-tax incomes are around $1,150 on average, Rosstat says. Pensions are just over $230. Rising food prices are one of the main drivers of inflation in Russia, which is currently 9.6%, says the Economic Development Ministry. The central bank is trying to keep inflation under control with a high key interest rate, currently at 20%. The reasoning goes, if high interest rates make it more difficult to take out loans, the amount of money in circulation will decrease. Less money means less demand and falling prices. But that has caused further complications. Economy minister warns of looming recession At the recent St Petersburg International Economic Forum, Economy Minister Maxim Reshetnikov issued a rare clearly-worded warning of problems facing the domestic economy. "According to the figures, we are experiencing a slowdown, and according to the current sentiment among entrepreneurs, we are already on the verge of a transition into recession," he said. The current interest rate level is discouraging entrepreneurs from investing, according to Reshetnikov. He estimates that investments in the third and fourth quarters could fall below last year's levels. But central bank chief Elvira Nabiullina pushed back the suggestion that her monetary policy is misguided, though she too predicts difficulties. Despite sanctions imposed in a bid to halt the war on Ukraine, Russia's economy had grown for two years - thanks to Moscow's programmes to replace imports, using money from the wealth fund and capital reserves in the banking system. "We must understand that many of these resources are indeed depleted, and we must think about a new growth model," says Nabiullina. The fact that the Russian economy has held up surprisingly well since Putin's attack on Ukraine, despite more than a dozen rounds of Western sanctions, is mainly due to the decisive shift towards war production. As weapons boom, civilian sectors struggle Putin confidant Sergei Chemezov, who heads the state-owned defence corporation Rostec, recently boasted of a "tenfold increase in ammunition and weapons compared to 2021." Critics say Russia's gross domestic product (GDP) growth does not reflect the economy's potential to produce new goods for its citizens or to raise their standard of living. Rather, it only shows that the budget-funded arms industry is producing more and more drones, missiles and tanks. Meanwhile, civilian sectors have long been struggling amid high costs, staff shortages and dated technology - a problem that has only been exacerbated by the sanctions. The construction and real estate sectors are mired in deep crisis. Car manufacturing has also stalled since Western manufacturers and suppliers turned away from Russia. And while China is selling more cars in Russia, it does not make them locally. Avtovaz, the Lada producer which is part of Chemezov's empire, has been unable to fill the gap left by Western carmakers. At the Economic Forum in St Petersburg, the company presented its latest model, the Lada Azimut, due to go into series production next year. But previous models are still piling up in warehouses due to a lack of demand. New car sales in Russia have slumped again after a brief upturn in 2024. In the first five months of this year, only around 450,000 vehicles were sold in total, a 26% drop. Avtovaz is also forecasting a 25% market slump for the year as a whole. The crisis is also affecting agricultural machinery manufacturer Rostselmash. A maker of combine harvesters and tractors, it has imposed compulsory leave on more than 15,000 employees. That leaves staff unclear whether they will be able to return to work afterwards. The factory had already slashed people's hours in March, and laid of 2,000 workers a month later. Paradoxically, Rostselmash is also unable to benefit from the widespread withdrawal of Western rivals. Sales of combine harvesters are stagnating, with the 20% market slump last year followed by a 10% to 15% decline so far this year. Some 40% of Rostselmash's annual production is gathering dust in warehouses. Farmers lack the cash to buy new technology - pitted against high interest rates and rising production costs. Shrinking harvests raise food security fears That in turn is affecting harvests. The year the Kremlin launched the full-scale invasion of Ukraine, 2022, Putin proudly reported a record grain harvest of 157 million tons. But yields have dropped annually since. Putin ordered grain harvests to be increased to 170 million tons and exports to 80 million tons by 2030. "But based on the latest trends, the movement in our country is going in the opposite direction," says Deputy Prime Minister Dmitry Patrushev, who oversees agriculture. He called for this to be swiftly corrected. Moscow is now hoping for a better yield than last year as farmers start harvesting potatoes. A jump in supply could cause prices to fall, at least for the time being. Otherwise, Putin may have to resort to the recipe of his long-time ally, Belarusian ruler Alexander Lukashenko, dubbed the "potato dictator." Lukashenko - no lightweight himself - recently suggested Belarusians only eat potatoes once or twice a week at most - saying otherwise, they would get too fat.
