Can rating agencies ruin Russian economy? – English pravda.ru

English: Cathedral of Christ the Saviour over ...

English: Cathedral of Christ the Saviour over Moscow River. Moscow (Russia). Français : La Cathédrale du Christ-Sauveur de Moscou, en Russie. Polski: Cerkiew Chrystusa Zbawiciela nad rzeką Moskwą. Moskwa (Rosja). (Photo credit: Wikipedia)

Pravda newspaper front page (around 1950s). Th...

Pravda newspaper front page (around 1950s). The head article title says: From the Soviet Leadership (Photo credit: Wikipedia)

A cartoon from Ukrayinska Pravda

A cartoon from Ukrayinska Pravda (Photo credit: Wikipedia)

This is the most popular story in Russia’s leading newspaper, Pravda. It’s worth a read. Check it out!

via Can rating agencies ruin Russian economy? – English pravda.ru.

Russian Economic Development Minister Alexei Ulyukayev is trying to re-assure the Russian people who are looking at a hard as well as cold winter. For those without any training in economics, the argument seems plausible. Certainly, the levels of debt cited for Russia is low compared in Western countries who are in financial difficulties with debt up to the eyeballs.

The reality is that a significant number of major Russian businesses have foreign currency loans that are repayable in the short-term. Meanwhile, the Ruble has suffered devaluation from fears about sanctions. Russia has enormous natural resources for which the West is desperate but politics is impacting trade. Future development requires leading technology from the West and this is restricted because of sanctions.

I think that it is true that the man or woman on Russia’s streets will not directly see any affect from a Western rating agency downgrade. However, the Ruble will continue to depreciate and Russia’s businesses will struggle to secure foreign funding, technology, and scarce resources. Sanctions will mean less and less choice in Russia’s shops, with increasing prices.

In the end, I suspect that the Russian Government will continue to press their political interests. Rating agencies will be ignored and the Russian people will face increased hardship but this is not new.

Thoughts?

Cyprus will be able to supply natural gas to Europe not earlier than 2022 // CYPRUS.KP.RU Komsomolskaya Pravda in Cyprus

European flag outside the Commission

European flag outside the Commission (Photo credit: Wikipedia)

Pravda, Russia’s leading newspaper challenges the effectiveness of the European Commission’s energy strategy. Although Cyprus has substantial offshore natural gas, it argues that it will not reach Europe until earliest 2022. This short article is worth a read.

via Cyprus will be able to supply natural gas to Europe not earlier than 2022 // CYPRUS.KP.RU Komsomolskaya Pravda in Cyprus.

As an expert in strategic change, I am increasingly alarmed at the absence of robust, risk-assessed and integrated strategy at the European Commission (EC). Without  effective strategy, EC policy decisions often waste vast amounts of funds on short-term political decisions.

In my view, the EC Energy Directorate is long on green issues and compliance but very short on policy and strategy.

Any thoughts on priorities for the new EC, Energy Commissioner, Miguel Arias Canete?