https://english.pravda.ru/ PravdaReport: Russian news and analysis https://english.pravda.ru/pix/logo180.png https://english.pravda.ru en Sun, 12 Apr 2026 05:55:59 +0300 https://english.pravda.ru/business/165600-gold-market-breaks-5000-historic-rally/ dd391abf358b2ca2362d0f450ab5b2f2 The global gold market is experiencing an unprecedented surge. On Monday, Jan. 26, exchange prices for the precious metal crossed the psychologically critical level of $5,000 per troy ounce for the first time in history. The February gold futures contract on the Chicago Mercantile Exchange rose above $5,100 per ounce, signaling fundamental changes in the global financial system and a sharp shift in investor sentiment. Record Growth Across Precious Metals Over the past twelve months, gold prices have risen by 84 percent, an exceptional performance even by the standards of traditionally volatile precious metals markets. This growth reflects a large-scale reallocation of capital and an intensified search for safe-haven assets amid mounting global uncertainty. Tue, 27 Jan 2026 16:04:00 +0300 Business https://english.pravda.ru/business/165514-silver-prices-record-high/ 17a1a62f67a512ca337c3c86fc53cf46 Exchange-traded silver prices reached a new all-time high, surpassing the 95-dollar-per-ounce mark for the first time in history. On Tuesday, March silver futures rose by 7.72 percent and reached 95.37 dollars per ounce by 12:00 Moscow time, according to trading data from the Comex exchange. The sharp surge marked one of the most significant moves in the precious metals market in recent years and established a new price benchmark for investors and industry participants. Tue, 20 Jan 2026 16:14:00 +0300 Business https://english.pravda.ru/business/165426-silver-overtakes-nvidia-global-market-capitalization/ 901179ea38dd83256731bf7b40042902 Silver has reached a market capitalization of $4.79 trillion, allowing the precious metal to surpass one of the world's largest technology companies, Nvidia, in total valuation. These estimates are based on data from Companiesmarketcap, a platform that compares the capitalization of public companies, precious metals, cryptocurrencies, and exchange-traded funds using a unified calculation methodology. As a result, silver now ranks second among all global assets by market capitalization, trailing only gold and outperforming several major technology corporations. Tue, 13 Jan 2026 17:44:00 +0300 Business https://english.pravda.ru/business/145185-bankruptcy/ 12cf6116c010d063b89f21a7dc1df6bc Bankruptcy isn't a topic that anyone likes to discuss. Creditors, debtors, and government officials all get a little queasy at the thought of bankruptcy, but it exists for a reason. And in many situations, it can provide relief when financial friction is heightened. But bankruptcy isn't the same in every country. Laws, rules, and stigmas differ rather significantly - particularly between Russia and the United States. The what and why of bankruptcy Bankruptcy is one of the primary methods by which control over an asset can be transferred to more capable or efficient owners in the instance of market economies. Ultimately, bankruptcy serves three distinct purposes: To solve collective action problems among creditors as they deal with insolvent debtors. To give individual debtors a chance at a "fresh start" when they're overburdened by debt. To preserve/save the financial distress firms have by reorganizing rather than liquidating. Bankruptcy is basically government-sanctioned relief that allows individuals or businesses to have debts forgiven, granted they meet specific criteria and follow certain guidelines. It plays an important role in keeping the larger economic engine hitting on all cylinders. Without bankruptcy, millions of citizens would find themselves impoverished and unable to financially recover from dire situations. Wed, 28 Oct 2020 14:29:00 +0300 Business https://english.pravda.ru/business/144939-crypto_fraud/ a66dcfb2510f1cd91ee43f71798e73dc With the continuous and rapid evolution of the technological era, digital currencies are gaining popularity daily. They have been gaining traction from the past half-decade. Despite the fluctuations in bitcoin and other cryptocurrencies' value, more and more people start seeing cryptocurrency as a profitable investment. For instance, if we talk about Bitcoin, one of the most popular types of cryptocurrency, it has taken over the digital currency market. If we further discuss its fame, you'll see that it is being used in some of the biggest business names around the globe, including Microsoft, Overstock, and AT&T, now accept it as a method of payment. Here, you might be thinking, why do people use cryptocurrency and cryptocurrency wallets? What are their pros and cons? Is it worth investing in cryptocurrency wallets in 2020? If you have such questions, get them answered here. But first, let us tell you about the MOST USEFUL cryptocurrency wallets. A lot of wallets are designed solely for the storage of cryptocurrencies. At a time when there was a peak in online currency exchanges and thefts, there was a need to create a wallet that will provide ultimate protection. OWNR Wallet is one of the safest bitcoin wallets to buy crypto in 2020. It helps people in keeping their digital money safe from external threats. Along with security, OWNR Wallet offers a variety of useful features for both holders and traders. Tue, 08 Sep 2020 11:33:00 +0300 Business https://english.pravda.ru/business/141298-us_dollar/ 9c62c181fa473242a740da0d3b27725b Russia has recently disposed of US Treasury bonds, but the move was like a gnat bite for the US financial system. To force this system to collapse, one needs to meet three requirements. Does one need to force the US dollar to collapse, though? In 2015, Donald Trump told Fox News that the United States could become another Spain or Greece that were standing on the verge of financial collapse. According to him, the US has been borrowing from China and other countries and has thus amassed the public debt of 13 trillion dollars. If America's debt is so large, why hasn't it collapsed yet? The answer is simple: there are too many of those who want to invest in the US economy. During Trump's presidency, USA's public debt has increased to 21 trillion dollars - all because the Americans accurately pay off their bonds worth about ten trillion dollars a year. The US dollar is a commodity, a world reserve currency, and if banks run out of dollars, the entire world economy will collapse. The more dollars creditors have in their reserves, the more stability one gets. Can the USA come across difficulties in attracting new loans to pay off old ones? The world community is convinced in the stability of the US dollar based on the Bretton Woods agreement. Plus, the US and Saudi Arabia had agreed to trade oil in US dollars, and all countries had subsequently joined their agreement. All exchanges buy and sell oil and other raw materials only for dollars. All banks maintain more than 60 percent of their liquidity in dollars. The euro accounts for only 30 percent, whereas the yuan and other currencies account for only ten percent.It is very hard to shatter the world's faith in the US dollar. The above-mentioned agreements and treaties can be revised only as a result of a war. Is there a peaceful way? Technically, the dollar may decline in value considerably, prompting market members to sell their dollar assets. These market members are the countries that hold US bonds and futures, as well as ordinary investors, such as, for example, citizens having dollar bank accounts. For this situation to happen, at least several conditions are required.First, the dollar should be weak. Trump as President has broken the 70-year tradition to support the strong dollar. The weak dollar gives the government an opportunity to service the debt more easily. In addition, Trump sees the strong dollar as a hindrance to his trade war with the world. The Wall Street Journal said that the dollar exchange rate remains ten percent overvalued. To liquidate the USA's trade deficit of 500 billion dollars, the rate of the US currency will have to decrease considerably. There is a reverse side to it too. The debt-to-GDP ratio currently stands at over one hundred percent, and calculations show that it will grow. This factor will undermine confidence in the dollar.Secondly, one needs to have a viable monetary alternative for buyers and investors. If we get rid of the dollar, what are we going to buy instead? How are we going to trade? One may suggest the yuan and the euro, but the yuan is a regulated currency, and the euro is a regional one. It does not look like China wants to switch from commodities to capital trade to make the yuan a convertible and strong currency. Thirdly, someone needs to push the dollar to make it collapse. Debt holder nations could, as it seems, massively dispose of US bonds. It's only about five trillion dollars: if China and Japan started disposing their treasury stock on the secondary market, this would cause great panic. Yet, the yuan fluctuates within a corridor. China artificially lowers its rate to quietly enter the US market. In addition, US bonds bring China a stable income in dollars, which the country needs to meet importers' demand. Japan is now trying to exit the 15-year deflation cycle after the 2011 earthquake and Fukushima  nuclear disaster. If the dollar becomes weak, then the goods valued in yuan and yen will cost relatively more in the United States. They will become less competitive. The countries that lend to the US may start selling US bonds either for political reasons or if they see their stocks dropping in price too quickly and they have another export market to replace the American one.Thus, the collapse of the dollar, and therefore of the American system of living in debt is unlikely to happen. If it happens, the world will experience a global economic shock. Gold, the euro, energy carriers and other goods will become more expensive. The debt service will grow, US import prices will rise sharply, hyperinflation will follow, and exports will not yield any revenue. Inflation, high interest rates and volatility will suppress the growth of the real sector. The United States, perhaps, will launch military redivision of the world, since every war brings profit and economic recovery. Lyuba Lulko (Stepushova) Pravda.Ru Read article on the Russian version of Pravda.Ru Fri, 27 Jul 2018 17:13:00 +0300 Business https://english.pravda.ru/business/141241-russia_us_bonds/ 4701df87cc3ee88d61fb79348a9b2a90 Russia has left the list of 33 largest holders of US government bonds, after the country disposed of at least a third of remaining bonds, a message from the US Treasury said. The last position on the list of 33 largest holders of US government bonds is taken by Chile - $30 billion (as of May). Representatives of the US Treasury clarified that Russia's investment in the US government debt fell to an eleven-year low of $14.9 billion, having decreased three times only from April till May. Russia started investing in US government bonds in 2007. In April of 2018, Russia sold US Treasury securities worth $47.5 billion, keeping $48.7 billion in government bonds. Russia then moved from the 16th position of the rating of holders of US government bonds to the 22nd place.Elvira Nabiullina, the head of the Central Bank of the Russian Federation, said commenting on Russia's decision to do away with US securities, that Russia's share of gold had had a tenfold increase in over ten years. "We are diversifying the entire structure of currencies ... We are pursuing a policy so that they are safely stored and diversified, and we assess all the risks: financial, economic and geopolitical ones," she said. Russian Senator Alexei Pushkov said that Russia's move to dispose of a half of US securities was a step to reduce the country's financial dependence on the United States. "Russia is reducing financial dependence on the US: in April, we cut investment in US government securities by 47.5 billion, which is almost 50 percent. This is a consistent decision," the Russian senator tweeted. Natalia Orlova, chief economist at Alfa Bank, said that the Bank of Russia could reduce investment in US treasury securities, because the further dynamics of the US dollar in the conditions of trade wars was causing concerns.Meanwhile, Russia continues to rid of US debt securities and replenish gold reserves. In May, the Russian Central Bank purchased 600,000 ounces of gold. Russia is not the only country to conduct such operations: India, Turkey, Mexico, Iran, Kyrgyzstan, Kazakhstan, Belarus, Uzbekistan, Tajikistan, Mongolia and China started purchasing gold more actively, Pravda.Ru reported earlier."Russia has been buying up gold on the basis of two factors. First off, the Russian Central Bank protects itself against the possible seizure of Russia's gold and foreign currency reserves abroad. Sanctions become tougher, and everything may eventually develop on the basis of the Iranian scenario, when Teheran's reserves invested in treasury bonds were arrested. When you buy gold, you keep it on Neglinnaya Street, and you do not have any headache about it. Secondly, Russia buys gold as a measure to support the gold mining industry," Alexei Vyazovsky, the vice-president of the Gold Mint told Pravda.Ru. Also read: Where does Russia keep her gold? Russia buys tons of gold in response to Western sanctions Wed, 18 Jul 2018 17:07:00 +0300 Business https://english.pravda.ru/business/140031-europe_bank_secrecy/ 65e2135a86efb10b4191e2d3d5972251 The European Union signed agreements with Switzerland, Liechtenstein, San Marino, Andorra and Monaco on the abolition of "bank secrecy." Russia joined the agreement, which made it possible to find accounts of Russian presidential candidate Pavel Grudinin in Switzerland. Why is the US in no hurry to join the trend? Europe is closing the "tax haven" There no more bank secrecy in Europe. If someone owns a bank account in Switzerland, the information about it will be exchanged automatically, European Commissioner for Economic and Financial Affairs, Taxation, and Customs, Pierre Moscovici, said on February 12.Swiss and other banks were supposed to change their bank secrecy policy under the Common Reporting Standard (CRS) - an agreement on automatic exchange of financial and tax data, which 47 countries signed on May 6, 2016. Their number is now nearing 80. According to CRS, banks send information about their customers' accounts to local tax authorities, which subsequently exchange information with tax authorities of other countries.Russia joined the CRS from the beginning of 2018, which means that European accounts of Russian citizens shall also be verified by EU supervisory authorities and the tax service of Russia starting from January 1.It is worthy of note that in Switzerland, unlike in other countries, the income received from percentage of deposits and trust operations is exempt from taxation (10-50% in other countries). Plus, a bank depositor in Switzerland does not have to pay income tax and other taxes in their country of residence by withdrawing capital through rogue firms. It would often be "dirty money," which would then be laundered through official operations. Now, the interested country is entitled to request details of the detected account should a financial crime be suspected. In addition, the European Union is concerned about huge losses in the collection of taxes, and EU authorities have been taking swift decisions at this point. In December 2017, EU finance ministers officially approved a black list of 17 offshore companies, which may face sanctions in the near future. It goes about such territories as Samoa, Bahrain, Barbados, Grenada, Guam, the Republic of Korea, Macao, Tunisia, the United Arab Emirates and other countries. Another 47 countries and territories were included in the so-called "gray list" - Turkey, Switzerland, Liechtenstein, Serbia, Montenegro, Macedonia, Albania, Bosnia and Herzegovina, Armenia, Thailand, Vietnam, Hong Kong, Uruguay, Peru, Morocco, Jordan and others.The EU is ready to force everyone to join the CRS by the end of 2018. Some are given a postponement until the end of 2019. The US does not want to join the CRS However, the EU list does not include the United States. The Americans have refused to participate in the CRS. Instead, Washington introduced its own financial data exchange during the time of Obama's presidency - the so-called FATCA (the Foreign Accounts Tax Compliance Act, the law on the fulfilment of tax claims on foreign accounts). The law stipulates the imposition of financial sanctions against foreign banks that refuse to transfer information about US taxpayers. In a nutshell, while other countries of the world must provide their reports to Washington unconditionally, FATCA works selectively in the opposite direction. Meanwhile, Switzerland, the United States and the Cayman Islands (Great Britain) were identified as the largest refuge for capital flight in accordance with TJN 2018 Financial Secrets Index - an independent international study. Over the past three years, the share of the United States on the offshore financial market has increased from 19.6 to 22.3 percent, the report says.The US government refuses to participate in international initiatives to exchange tax information with other countries and has not been able to put an end to the use of anonymous companies and trusts aggressively sold by certain US states.Senator Sheldon Whitehouse, noted at the Senate Judicial Committee that if the US does not follow the example of the Europeans in the very near future, America may lose the title of the stronghold of justice around the world. Yet, the Trump administration is in dire need of assets to secure its exorbitant debts.Many say in Europe that the United States has been going on the way of unfair competition. It's clear where capitals from Swiss banks will go depriving Europe of billions in revenues. Is Europe ready to impose sanctions on US banks like on banks of other countries? Hardly.Fortunately, the reorientation to US and British banks does not relate to Russian fans of tax evasion: the "Kremlin list" may trigger arrests of accounts of all top Russian businessmen. Putin's prophecy to oligarchs has come true. "You'll get tired of swallowing dust removing money from offshore," he once said. Tue, 13 Feb 2018 20:12:00 +0300 Business https://english.pravda.ru/business/139758-ukraine_gold/ 893cc619c96b37d7a4b5328b541341a3 AP photo Ukraine announced the discovery of a gold deposit, the reserves of which are evaluated at at 2.4 tons. However, even two tons of gold will not help Ukraine overcome the pre-default condition of its economy. The deposit was found in the Rakhov district of the Transcarpathian region of Ukraine. The deposit is believed to hold 2.4 tons of gold. Meanwhile, the Ukrainian economy remains in deplorable condition. The country's need in money is enormous. The Ukrainian government is still waiting for as much as $3 billion in new tranches from international creditors. Yet, both the IMF and the World Bank have made it clear to Ukraine that new tranches would be possible only if Ukraine continued conducting reforms and anti-corruption struggle. Fri, 19 Jan 2018 15:07:00 +0300 Business https://english.pravda.ru/business/139413-bitcoin/ 48a2aaef3a64467f6f0444dca77cf2d7 AP photo By Paul Nathan Let  me say from the onset that I am happy to see the introduction of a free market medium of exchange. In this technological age there is absolutely no way to predict what form a  new money, or a new monetary system for that matter, will take, should one develop. The keys to any successful money or system however, lie in  competition, use value, acceptability, and of course, integrity. Any lasting  money must be market-originated and market-tested to survive. Down  through the ages almost every conceivable good was used as money, from sea  shells, to tobacco, to olive oil, to metals. It wasn't until the 1500s and  well into the 1600s that an international system of money was contemplated and  eventually implemented. It was the gold standard. Nicolas Copernicus  and Sir Isaac Newton were two of the great minds that contributed to this  effort in their respective times. And in fact the gold standard reigned for  centuries virtually unimpaired. Fri, 15 Dec 2017 11:58:00 +0300 Business https://english.pravda.ru/business/139051-russia_gold/ af5700e897d9244a554089f971ba306c Russia's activity in the Asian region may undermine the world financial domination of the United States.Russia has recently concluded major oil and gas contracts with leading Asian countries. According to the South China Morning Post, Russia's ambitious gas projects in the Far East may trigger a sharp decline in the volume of US oil and gas contracts with Tokyo and Beijing.A change in the vector of Russia's interests may also threaten the US dollar, which may eventually find itself on the margins of international trade.Russia currently develops the Power of Siberia natural gas project and develops natural gas infrastructure in the Far East, the construction of which gradually evolves into the construction of  an underwater gas pipeline to Japan.Russia currently tends to use the national currency in payments for supplies of hydrocarbons to foreign counterparts. As a result, such transactions completely exclude the participation of the dollar. Meanwhile, Russia's Central Bank continues to accumulate national reserves in gold, as if trying to outstrip China at this point. For example, in June-2017 the Central Bank of Russia acquired 9.1 tons of gold. The Bank of Russia remains the world leader in increasing the share of gold in international reserves, having added another 100 tons for the first six months of the year. In 2015 and 2016, the Central Bank bought 206.7 and 200.7 tons of gold. Thus, in 2.5 years, Russia's gold reserves have grown to 1,700 tons. To catch up with China, Russia needs to additionally purchase 126.7 tons of gold. According to experts, there are only three central banks in the world that can afford to continue purchasing gold. They are central banks of Turkey, Kazakhstan and Russia."For six months of 2017, three of them have acquired 200.7 tons of gold, while the net demand from all regulators of the world amounted to 174.3 tons. In other words, other banks sold a total of  26.4 tons of gold," analysts say. In addition, in five or seven years, Russia, China and India will completely refuse from the use of the dollar and the euro in international settlements. Such a development may lead to the collapse of the Bretton Woods system of finance, which made the US dollar the world's largest currency since 1944.Pravda.Ru Read article on the Russian version of Pravda.Ru Fri, 27 Oct 2017 15:21:00 +0300 Business https://english.pravda.ru/business/138909-russia_new_money/ 19533bfc89027c83f80b6e5dd6eaa679 Russia has introduced new banknotes  - 200 and 2000 rubles - on October 12, 2017. Chairwoman of the Bank of Russia Elvira Nabiullina and Goznak CEO Arkady Trachuk unveiled the new notes at a special press conference in Moscow.Moscow will be the first city of Russia, where the new notes are going to be introduced. The regions depicted on the new notes will also receive the new money first. The 200-ruble note shows a monument to sunken ships in Sevastopol, the Crimea, as well as "Chersonese of Tauris" museum-reserve. The 2000-ruble note shows images from the Far East region: the Russian Bridge in Vladivostok and the Vostochny spaceport. Noteworthy, the presentation of banknotes was held via satellite TV link-up between Moscow, Vladivostok and Sevastopol.According to Elvira Nabiullina, the introduction of banknotes will be carried out in stages, as they are developed in strict secrecy. One can already use the new money in stores, but ATM machines will be able to work with them only by December. "This is an international practice, this is how the Bank of Russia traditionally operates, and this is necessary to counter counterfeiters," explained Nabiullina. "We expect that the mass entry of the new banknotes will start in December, when both banks and enterprises complete preparations," she added. One of the main differences between the new banknotes, except for the colour, is the appearance of the coat of arms of the Russian Federation instead of the emblem of the Bank of Russia on the obverse side. Since last year, Russia already produces coins with the coat of arms, whereas all the future modifications of banknotes will also depict the coat of arms of the Russian Federation, rather than the emblem of the Bank of Russia. The introduction of the image of the coat of arms entailed changes of the entire design of the banknotes. The new bills are made from 100% cotton, like other currently circulating notes. However, the paper cloth for 200-ruble banknotes undergoes additional processing - it receives  polymer treatment to strengthen the structure.The introduction of the 200-ruble banknote is conditioned by the trend according to which the lower denomination of banknotes wears out more quickly. For comparison, the largest banknote in Russia - 5,000 rubles - lasts for ten years and longer, whereas the 50-ruble note lasts for only 15 months. Pravda.Ru Thu, 12 Oct 2017 18:25:00 +0300 Business https://english.pravda.ru/business/138881-putin_crypto_currency/ b575fb60d730eaabf4f301adac6f861d AP photo Russian President Vladimir Putin said that crypto-currencies create possibilities for money laundering, tax evasion, financing terrorism and contribute to the development of fraudulent schemes. Speaking at a meeting dedicated to the role of crypto-currencies in the modern world, President Putin noted that issues of the introduction of digital technologies in the financial and banking sphere have become particularly important for the whole world lately as new opportunities continue to emerge. "In some countries, crypto-currencies have already become a full-fledged method of payment, an investment asset, but the use of crypto-currencies also carries serious risks, and we know the position of the Central Bank of the Russian Federation on the subject," Putin said. He mentioned such risks as a possibility of laundering capital obtained by criminal ways, evading taxes and financing terrorism, not to mention the dissemination of fraudulent schemes that may cause harm to ordinary citizens.Crypto-currencies are issued by an unlimited circle of anonymous entities, and their buyers are likely to be involved in illegal activities. "In the event of a system failure or the inflation of "bubbles," as they say now, there will be no legally responsible entity available. This is a very serious thing that we need to take into account," Putin said. At the same time, the Russian president believes that one should establish the circulation of crypto currency in Russia, because the country needs to take advantage of new technological solutions in the banking sector. At the same time, he added, one should not build new barriers, but create necessary conditions for the further development and improvement of the national financial system."Relying on the international experience, we should build a regulatory environment to systematize relations in this sphere and protect, of course, interests of our citizens, businesses and the state, to provide legal guarantees to work with innovative financial instruments. Many countries look for approaches to regulate the circulation of crypto currencies, they only start creating necessary legislative conditions and the legislative regulatory framework," Putin said.Prior to the above-mentioned meeting, Putin's press secretary Dmitry Peskov said that there would be no decisions taken at the meeting. "You know that this subject has been on the agenda lately, and many countries already use crypto-currency as a financial tool, but no one knows yet how to regulate this means of payment and means of investment yet," he said. The chairwoman of the Central Bank of the Russian Federation, Elvira Nabiullina, spoke against the legalization of crypto-currencies on September 14, having called them a financial pyramid that may collapse at any moment.Pravda.Ru  Wed, 11 Oct 2017 15:20:00 +0300 Business https://english.pravda.ru/business/138585-russia_crypto_currency/ 11c67d231adfa68f57c54bf92ff1fe57 The State Duma of the Russian Federation may pass a law on the regulation of crypto currencies this autumn. In the near future, a special meeting dedicated to the issue of crypto-currencies will be held with the participation of representatives of the Central Bank, the Ministry of Finance, and the expert community to elaborate basic principles for the regulation of the market of crypto currencies. The workgroup at the State Duma will discuss the definition of crypto currency as a financial instrument. Also read: Bitcoin: Anonymously genius Pravda.Ru requested an expert opinion on the subject from chairman of the committee for the financial market of the State Duma, Anatoly Aksakov."What do MPs have to deal with in the first place in terms of legislative regulation of crypto currencies?""The goal is to define the concept of what the crypto currency is and whether the crypto currency is a financial instrument. This is important because it may have different tax consequences, as transactions with financial instruments are exempt from VAT. If this is a different kind of product, then a value-added tax may arise."Next, one needs to install a regulator that should manage this market and regulate the rules of work. In addition, it is necessary to determine who can work with this currency and on what platform it should be happening. Should we bring crypto currency to exchange trade or should it be free market trade?" "Who, in your opinion, can have the authority to conduct transactions with crypto-currencies? Should it be professional participants who understand this tool?""In my opinion, it is qualified participants who should have an opportunity to trade or purchase this tool. There is a danger of financial pyramids, the emergence of dishonest participants who will make big promises to deceive others. All these things, in my opinion, must be regulated legislatively. We will discuss all possible approaches and see how it works in international practice.""In Russia, an association for crypto currency holders will appear. What tasks should the new structure solve?""I do not think this is necessary. We have Fintech association that deals with financial technologies. As long as the market of crypto currencies has not been formed yet, the creation of a relative association will be a reductive tool in this sphere. One needs to create a market first before we can talk about associations."Interviewed by Lada KorotunPravda.Ru Read article on the Russian version of Pravda.Ru Mon, 04 Sep 2017 18:04:00 +0300 Business https://english.pravda.ru/business/138568-russia_banks/ ac59ed2b31011fcde510bbaca3f6da63 For several years, the Russian banking industry has been going through the things that uninformed common people may have a very vague idea of. However, there are two things that are obvious to everyone: a) the Bank of Russia has been purposefully pursuing a certain policy, b) the number of banks in the Russian banking system has been declining steadily. The Bank of Russia set the goal to rid the national banking sector of non-professional, dishonest, unstable and weak banks soon after Elvira Nabiullina took over. The Russian administration, including President Putin, praised her work, which makes one assume that the policy of the Central Bank fits into the general economic and financial strategy of the country. This, in turn, means that the Central Bank acts in concert with the state.One shall assume that it was not Mrs. Nabiullina, who suddenly decided to massively withdraw licences from many banks to relieve Russia of many small and medium-sized banks. The recovery and resolution of banks remains necessary in the general political and economic context: it is only strong and stable banks that can withstand the sanctions pressure that Russia has been suffering from lately. After all, sanctions pursue the goal to deprive the Russian economy of access to long and relatively inexpensive money, which one can obtain primarily in Europe and America. Without being able to use financial resources from Europe and the USA, Russia was supposed to suffocate in a few years.  To prevent this, Russia had to work on the concentration of available cash assets and improve their management. This is what the Central Bank started doing. Of course, not everyone liked this. Many bankers saw signs of targeted state regulation and management in the actions of the Central Bank, rather than mere care for the purity of the banking sphere. The administration of the Association of Russian Banks criticised the Central Bank in March of this year, but their criticism came across counter-criticism from Elvira Nabiullina and representatives of a number of banks.The outcome of the friction was predictable: the Association of Russian Banks split, eight largest Russian banks left the organisation and joined another lobbying structure - the Association of Banks "Russia." It appears that the new association will collect the gems of the Russian banking industry that will manage financial resources of the state at a new stage of development. More importantly, the collapse of certain banks affects interests of very powerful and influential financial, economic and political forces. Plus, it is costly for the state. Does the state want to keep just a certain amount of banks that it would take under control? It appears that Russia will keep several large and specialised banks, the activities of which will meet the interests of the state under the guidance of the Central Bank. As for the number of banks necessary for the normal functioning of the economy, we would like to quote Vasily Koltashov, the head of the Centre for Economic Studies of the Institute of Globalisation and Social Movements: "For the Russian economy, 100, 50 and maybe even 10 banks will be enough, but not 1,000 and not 500, as today. One needs to clear the market for large players, and this is what the Central Bank has been doing lately. The trend is clear: the number of banks has to be cut." Mikhail MirtovPravda.Ru Read article on the Russian version of Pravda.Ru Fri, 01 Sep 2017 20:02:00 +0300 Business https://english.pravda.ru/business/138461-gold/ f5f7a89e17fc8eff8ca4ee42f2ec37f0 The price of an ounce of gold on the New York Stock Exchange rose to 1,300 dollars on Aug 18, having exceeded maximum values registered on November 2016. Quotations of contracts for December futures soared by 0.9%, to 1304.3 dollars per ounce. According to experts, gold has been rising in price because of high demand on defensive assets, caused by terrorist attacks in Spain and apprehension of efforts of the US Senate to counter Donald Trump's promises to implement large-scale reforms. In turn, prices on silver have grown by 0.9% as well - to $17.19 per ounce. Platinum has grown by 1.3%, and palladium - by one percent. Pravda.Ru tried to find out the causes behind the latest growth in prices on precious metals in an exclusive interview with vice-president of the Golden Mint House, Alexei Vyazovsky."The price of gold has changed drastically. What happened?""Indeed, gold now costs 1,300 dollars per troy ounce - 31 grams, which marks an increase by ten dollars. First and foremost, this has happened due to the recent tensions on the Korean Peninsula and large-scale terrorist attacks in Spain. Gold still remains the main refuge for assets, when in all situations, especially against the background of complex geopolitical events, investors immediately rush to buy precious metals. This is a temporary factor that may come to naught. There is also a permanent factor associated with the publication of protocols of the Federal Reserve System, where one can see huge differences between those who work in the Committee on Open Markets regarding raising interest rates."Gold does not feel very well when rates go up, because bonds and other instruments become more attractive than gold. Conversely, when rates fall, the cost of capital does not increase, and gold finds itself in demand among investors. Perhaps, the Federal Reserve Fund will not raise rates this year, and this is a very positive factor for gold, and for precious metals in general. If you look at, for example, palladium - a precious metal that is used as an investment - you can see it soaring by $20 per ounce to $923 during one day.""Some believe that making gold deposits is an unpredictable endeavour, because one may lose their savings on them." "In fact, if we look at the dynamics of gold prices in 2016 and 2017, we will see that they grew by 8% in 2016, and by ten percent in 2017. Gold always rises in value, but gold always reacts to all movements connected with geopolitics and other global shocks."Interviewed by Tatiana TraktinaPravda.Ru Read article on the Russian version of Pravda.Ru Mon, 21 Aug 2017 13:34:00 +0300 Business https://english.pravda.ru/business/138210-economic_system/ f0295ce71829db2ae3d2b96c83a60cb8 It was from the exponential growth of the global economy, notably after World War II, substantially altering the existing relationships between economic production and the resources of the environment, which established the inescapable need to reconcile the economic mode with the ecological world. Marcus Eduardo de Oliveira Going back a little in time, it is worth saying that until the arrival of the Industrial Revolution, the economy "fitted" within the ecological system; The economic system (specifically in terms of consumption and material production) was small in relation to the greatness of the Environment System that provided it with matter and energy, still using nature as a kind of "chest" for the absorption of all the post-production residue of Economic development. Thu, 20 Jul 2017 13:17:00 +0300 Business https://english.pravda.ru/business/138192-russian_economy_forecast/ 51c49f97079c0efb8199a2bd7f1e9aac The Russian government currently discusses distribution of Russia's funds for the next three years. According to the draft budget for 2018-2020, the main financial document should support the industrial growth that the Russian economy has seen recently. Exports of domestic products and transport are expected to receive an impressive support from the state. Why transport? Are investors ready to invest in the development of the Russian industry? Pravda.Ru conducted an interview on the subject with Anatoly Aksakov, chairman of the State Duma Committee for the Financial Market."Transport will traditionally receive the largest financial support from the state. Why do you think it happens?" "The transport infrastructure is a capital-intensive sector that objectively requires a lot of support from the state. Traditionally, the state is responsible for roads, ports, river economy, Russian Railways, the construction of new highways. All this is financed by the state. Therefore, it is obvious that the share of funds allocated in this direction always stands out if compared with other branches of economy. "Investment activity is an important component of economic growth. What is your assessment to the level of investment in the Russian industry now?""For the time being, we, unfortunately, can see a sluggish investment process. For the last two years, investment in fixed assets has been declining. This year the decline has slowed down. You can say that this is neither decline nor growth in comparison with the previous period. We now expect a revival of investment, as we see GDP growing, and many companies start investing their money in various projects."We expect a surge in investment, not only in infrastructure, but also in industrial and agricultural projects. Therefore, I am optimistic about 2018. I believe that demand may significantly grow.""Earlier, economists were skeptical about prospects for Russian GDP to grow, but now financial institutions massively revise their forecasts towards improvement. What was the impetus for such a scenario?""First off, Russia's economy and business have adapted themselves to internal shocks. Many have come to realize that the situation is not as bad as some may paint it, and those people are still out there working. The government does many things to support the economy as well. Those measures are not so impressive and considerable as one would like them to be, but still. Look at Moscow - there's the fourth ring road being built around Moscow. There is also a project of a high-speed railway line from Moscow to Kazan and further to Yekaterinburg. All in all, in macroeconomy, a decline leads to growth. This year, Russia may see the growth of up to two percent and then up to four percent in 2018." Pravda.Ru Read article on the Russian version of Pravda.Ru Tue, 18 Jul 2017 15:28:00 +0300 Business https://english.pravda.ru/business/138108-us_dollar_decline/ 011166115573d56477b1b824f719b45a Source: Fotodom.ru Chief Economist for Russia at Bank of America Merrill Lynch, Vladimir Osakovsky, said that the era of the dominance of the US dollar would come to an end sooner or later. He recalled the situation with the pound sterling, which used to be a world currency, but was eventually ousted from the market."The era of the dollar will decline when the share of the United States in global economy shrinks "in a natural way," the analyst said in an interview with Lenta.ruCommenting on a possibility for a major debt crisis in the United States, Osakovsky said that although America's debt was about $18 trillion, there are other countries, whose debt is a lot larger. One of those countries, for example, is Japan. The debt of Japan in relative terms is twice the size of the debt of the USA. Meanwhile, the head of the Ministry of Economic Development of the Russian Federation, Maxim Oreshkin, said that the current rates of the dollar and euro against the Russian ruble - 60 and 68 rubles respectively, give every reason to assume that there will be "no serious fluctuations in the near future, and the currency rate will remain more or less stable."Analysts share a similar opinion, but oil prices can change everything quickly. Despite the high key interest rate of the Central Bank and optimistic sentiment on the market, the stability of the Russian national currency depends on the price of oil. Some analysts believe that the Central Bank should reduce its rate and strengthen the credit activity of banks. In this case, they believe, the ruble will remain in a stable corridor of fluctuations. If not, then the ruble will continue to decline in its value. At the same time, Finance Minister Anton Siluanov said that the dependence of the exchange rate of the Russian ruble on fluctuations in oil prices was decreasing. The ministry does not spend oil and gas revenues but reserves them. Thus, the ruble rate is expected to be predictable and stable.According to the basic forecast, the dollar rate vs. the ruble is expected to be about 64.4 rubles per one dollar in 2017, 69.8 rubles in 2018 and in 2019 and 2020 - 71.2 and 72.7 rubles per one dollar.Earlier, the Central Bank said that most Russian companies need a strong ruble. According to specialists of the bank, the strong ruble causes problems only for those who target external demand. They are, for example, manufacturers of products made of wood, rubber, and plastic. They export more than they spend on imported raw materials.Pravda.Ru asked Alexander Razuvaev, director of the analytical department of Alpari, a candidate of economic sciences, to comment on the forecasts about the rate of the Russian ruble. "The Ministry of Economic Development does not expect serious fluctuations for the ruble until the end of 2017. Nevertheless, are there any factors that could shake the relatively stable national currency?""I think that the dollar will cost around 62-64 rubles. I agree on the oil prices, but there are other factors that can weaken the ruble. The second half of the year is always worse for the ruble than the first half. Plus, there's debt payment. In general, in the second half of the year, Russia will have to pay about $43 billion as its main debt and slightly more than $8 billion in interest. In general, the Russian economy has adapted itself to cheap oil, capital outflows, and so on, and we are not expecting a serious crisis in the near future." Pravda.Ru Read article on the Russian version of Pravda.Ru Thu, 06 Jul 2017 13:47:00 +0300 Business https://english.pravda.ru/business/138088-capital_outflow/ 34b46f7e7bcea9b7dc2d221daac471b0 Source: Fotodom.ru/DP Foreign investors withdrew a maximum amount of money in 3.5 years from Russia. Foreign investment in the Russian economy has been declining for the fourth consecutive month. During this period, as much as $1.6 billion has been withdrawn from Russia. Analysts attribute the outcome  of investors to declining oil prices and negative situation on the world stage - in particular, concerning relations between Russia and the United States.The Kommersant newspaper wrote with reference to the Emerging Portfolio Fund Research that India and Brazil took the lead in attracting investments among BRICS countries. The countries have received $2.6 and $1 billion respectively during four months. However, according to earlier reports, direct foreign investment in the Russian economy increased  by 62% in 2016 to $19 billion. At the same time, they declined in the world in general by 13 percent to $1.52 trillion.By the end of June, foreign investors had acquired about 85 percent of Russia's Eurobonds. Americans showed the largest interest in them. Russian businessmen acquired the remaining 15 percent of those securities. The Finance Ministry pointed out the growing demand for 30-year Eurobonds: foreign investors bought 95 percent of those securities.According to the Central Bank of the Russian Federation, the capital outflow from Russia in 2017 is to make up 37 billion dollars. According to experts of the Bank of Russia, the outflow will decrease during the following years to 14 billion in 2018 and to 8 billion in 2019. Pravda.Ru turned to experts to find out their opinion on the situation with the outflow of capital from Russia. Mikhail Khazin, president of the Economic Research Foundation, economist, publicist:"This is mere statistics, official data that is. The Russian government is responsible for the inflow of investment, and for this reason it does not like to demonstrate an outflow. Nonetheless, as for the result, it is quite natural. Because the goal of the global financial elite is to ensure support for the liquidity of the world dollar system at the expense of Russia's resources. This goal was set in 2014. Chairwoman of the Russian Central Bank, Nabiullina, started solving the problem by devaluing the Russian ruble. She arranged the outflow of about $200 billion. She then engaged in carry-trade transactions, for which the ruble rate was upraised, which also contributed to the outflow of capital. I think that she may receive an award from the West as an outstanding chairperson of the Central Bank."Anatoly Aksakov, chairman of the State Duma Committee for the Financial Market:"First off, $1.6  billion is not the amount that one should be concerned about. There are tens of billions of dollars flowing in and out of Russia. We have seen the ruble rate declining against the fall in oil prices and this is a key influence factor. The amount in question is speculative money that comes when the ruble strengthens and leaves when the ruble weakens. People make money on the strengthening of the ruble. Indeed, when the ruble weakens against the backdrop of fluctuating oil prices, speculators start withdrawing their funds not to lose on exchange rate differences.The so-called arrival of money through the strengthening of the ruble, carry-trade, is also speculative. When the ruble strengthens, a reverse process will take place. There is nothing to worry about much. This is a speculative capital movement that does not characterise the situation in the country at all.Pravda.Ru Read article on the Russian version of Pravda.Ru Mon, 03 Jul 2017 18:53:00 +0300 Business