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Posts tagged to Putin

Saudi Arabia and Russia oil alliance: Desert kingdom requires Russian co-operation to solve economic problems

MarketLine

Petrostates have historically been wasteful in regard to spending the wealth generated by large-scale fossil fuel extraction. The desert kingdom of Saudi Arabia is no different, spending vast sums on subsidizing fuel and extensive social programs; most of the workforce is employed by the state, funded by oil. Now the country is undergoing significant reform to correct economic imbalances and diversify the economy. The Aramco IPO is driving Saudi Arabian policy, which in turn is likely to be directing the nature of OPEC policy. Oil futures for March 2019 are… Read more

Siemens gas turbines taken to Crimea

MarketLine

Under pressure from the German government to extirpate the company from any harmful events, Siemens has reacted swiftly to eradicate the possibility of further problems emerging. All operations in Russia are now under review and links with the offending company which is accused of illegally moving the gas turbines to Crimea have been irrevocably damaged. For an influential and large company such as Siemens to take such stern action will likely mark a major change in relations international business has with Russia. Suddenly trust has been eroded and further sanctions… Read more

Russian agriculture: Sanctions to create an agricultural superpower?

MarketLine

Following the Western penalties imposed on Russian companies in 2014, the Russian government responded with countersanctions, banning imports of many western food products. This encouraged import substitution and made Russian exports more competitive, thus showing that despite the poor state of east-west relations, there are plenty opportunities to be found in the Russian market. The Russian government, with an already set goal to diversify its economy which is heavily dependent on energy exports, has provided RUB215bn ($3.2bn) for the development of the agricultural sector, resulting in sudden and significant growth…. Read more