21:20 GMT +323 March 2017
    Moscow Kremlin

    Past the Oilfields: Russian Industries Offer Investors Returns Beyond Energy

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    Russia's economic growth rate ranked among the ten best in the world, RIA Novosti reported, citing a US News & World Report survey.

    In a recent survey conducted by US News & World Report, Russia ranked among the top ten countries in the world in terms of economic growth, RIA Novosti reported.

    Russia was also named the second most powerful country, with first place taken by the United States, according to the survey.

    The study, which ranked 80 countries in terms of global performance, listed Russia eighth among "up and coming" economies, 24th among the best countries for entrepreneurship, and 28th in terms of cultural influence.

    On the whole, Russia ranked 27th in the 2017 Best Countries rating released by US News and World Report. 

    Vladimir Markin, deputy general director of RusHydro, one of the largest Russian energy holdings, was quoted by RIA Novosti as saying that if the rating had been reworked to eliminate subjective biases, Russia's 27th position could actually mean that Russia was among the top five.

    "Russia's 27th place in the Western rating is tantamount to the country's position in the top-five [list of countries] if the rating was objective and relied on long-term benchmarks," Markin said.

    He also remained optimistic about Russia's economic growth in the next few decades, something that he said is reflected in "real figures."

    "The next twenty years will see Russia's sustained economic growth, which will be based not on virtual speculative parameters, but on real figures related to electricity output, industrial and agricultural production, as well as housing and the construction of roads and bridges, among other things," he said.

    Independent Russian expert Ilya Popov, for his part, drew attention to the fact that foreign investors often single out Russian as one of the most promising countries when it comes to financial injections.

    "The Russian market remains one the few such venues that can allow an investor to obtain a very significant income when making a non-maximum investment," Popov was quoted by RIA Novosti as saying.

    He added that foreigners are still confident that Russia's economic growth will depend on the energy sector, which is why they prefer to invest in this industry.

    However, other sectors of the Russian economy also deserve to be mentioned, Popov said, referring to the pharmaceuticals, biotech, information technology and telecommunications sectors.

    "Drawing investors to these industries and their development will help ensure Russia's long-term economic growth," Popov pointed out.

    Last month, the Austrian newspaper Wiener Zeitung wrote that the anti-Russian sanctions introduced by the West have proved to be ineffective, with the Russian economy showing clear signs of recovery.

    Russia reacted to the sanctions by strengthening its domestic production, especially with respect to metallurgy and agriculture, the article said.

    The newspaper cited German economic expert Dietmar Fellner as saying that Russia's economic recovery, which is happening in spite of ongoing Western sanctions, "boosts the country's self-confidence."

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    • avatar
      I take all this with a pinch of salt. Again, to my chagrin, a Us survey is quoted. We do not need to recognise everything that is of US origin. This helps keep the impression that that power is still in command, in charge of the world and all other countries. No, no, no, the US has already, must inevitably start reducing its expenses abroad, cutting down on foreign bases, save their capital, rebuild the country which had a much better image 50 years ago,
      The world will be safer without the tensions created by the NA power, and lastly, those who created such destruction and chaos all over the world should realise that they could be judged by a court in the future. That is a strong possibility. Events in which they will have no power to control may well happen soon, and submission/acceptance would be their best policy.
    • avatar
      There is no need to be scientist to come to conclusion that Russia is thanks to sanctions recovering but not as fast as it could. Before all we have to look back into post USSR times when industry or shall we be more precise and said whole Russian society all but collapsed thanks to Yeltsin, corrupt politicians, organised crime and oligarchs who worked hard to destroy Russia to sell it piece by piece thus building unimaginable wealth, way beyond anything normal person can achieve in normal circumstances not even in 100 years. Murders of opponents, extortions, outright theft and corruption was and still is normal practice in Russia.

      All what Putin did was to reallocate loot in order to give a portion back to Russian nation so that it can start recovery programs, however still large portion of stolen money stays with corrupt politicians, criminals and oligarchs as now for as long as they respect Putin's orders they will be safe from prosecution and continue to loot on a lower level. In a nation where all was available and freely accessible to daring ones such a limitation seams as radical as discovery that Earth is round. People are so happy to have something back that they are ready to hail chief thief Putin as a national hero.

      In reality Russia with tremendous natural resources should be the most powerful nation on the planet but that is not the case as short term looting is more important to Putin's friends than is bringing Russian industry into the shape and power. Money should be reinvested in order to invigorate domestic industry. Russia has according to Swiss financial monitoring body and according to International Chamber of Commerce in Paris in their Crime report mentioned that Russian citizens have over US$ 300 billion deposited outside Russia and that there is unknown amount of money deposited in cash onto secretive accounts in Offshore safe heavens by oligarchs, criminals and corrupt politicians. Russia since Putin is on power never speaks about hidden money outside national borders, ask yourself why?

      Russia is very poor country according to our western standards, as per nominal GDP Russia is on 12th place with US$ 1,267,750,000,000 which is very poor for a country which decades ago had second largest GDP. Real picture pops out where on GDP per person Russia drops on 62 – 64 – 68 place depending on the list either IMF, World Bank or UN respectively and amount per person is only US$ 9.283. as the richest (excluding pocket states safe heavens such as Liechtenstein, Monaco, Andorra …) Luxembourg, Switzerland, Norway, Catar, Ireland.... have from 60k all the way to 101k.

      Look at: en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita

      Russia with all its resources and good oil and gas prices produced just a little bit and mainly imported everything. Russia was transformed into energy banana republic, completely dependant on energy for money and on oligarchs for import. As long as oil prices were high and money was in abundance no one paid attention to devastating domestic economic policy. As Oligarchs were experts in stealing, looting and other criminal activities associated with walking idiots, they were completely incapable of running industry as whatever they tried went bust and state had to come to rescue. For them it is dead easy to run imports as no intelligence required for that, therefore they had to eliminate domestic industrial competition and therefore no money for domestic industry and in return that meant increased imports. Oligarchs simply love Western world and there they are on equal footing with Putin who shares with them all love for money, luxury, image, influence, power. That is why they are friends on the first place as friends should share same interests in order to go well along.

      Russian desperately needs to invest in automotive industry but oligarchs who are engaged in imports of 2.5 million cars per year, plus spare parts, tyres and used vehicles and do not forget commercial vehicles of all types from vans, trucks, buses, building machinery and so on. Huge imports over 30 billion US$ with EU only and making 10 – 15% on imports fees which belongs to importer is absolutely staggering money. That is why Putin does not ban imports and sale of western and Japanese cars in Russia, as his close friends criminal oligarchs would lose too much easy money and he his regular bonuses as well.

      Do not think that Putin is not ultra rich same as oligarchs and that he is clean as a tear as you will be very wrong. Western intelligence knows that he has some excessive money but not how much as his criminal friends know how to take billions out of Russia on their private yachts without anyone registering them. Beside that every one knows who are these oligarchs and how they become ultra rich over night from absolute 0 (zero). All of them would in our western countries end up in life imprisonment for what and how they did, only Putin who is known to be lenient towards criminals of all sorts is protecting them. Russian people do not want to see reality and prefer to pretend that all is better than ever. They do not want to think how much better it could be if oligarchs and criminals as well corrupt politicians would be stripped off their illegal wealth. Russia would today easily have 3 – 4 times bigger GDP as it would be the most natural for a country of such size and natural wealth.

      Why it is not has been explained above and for the finish let me use these two proverbs just to make the point. “Birds of same feathers are flying together”, or “Tell me who are your friends and I will tell you who you really are”.
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