` Ukraine's Coffer's are Running on Empty as their Economy is Struggling with Debt '

#AceFinanceNews – Russia may revoke a deal with Ukraine, which gave Kiev a considerable discount on gas in exchange for hosting the Russian Black Sea Fleet.

The Russian PM said this would oblige Kiev to return $11 billion which Russia paid to lease the bases.

The PM’s statement comes at a time when the Ukraine economy is struggling for cash, with Russian officials insisting they were the first to be interested in Ukraine’s economic stability.

The country’s treasury is almost empty, as Ukraine’s government debt stood at about $66 billion in 2012, which is 37.42 percent of GDP.

The country owes about $2 billion to Russia’s Gazprom, with the company insisting that it did not want a gas crisis similar to 2009.

The company’s CEO Aleksey Miller said he does not want Ukraine’s economy to collapse, and was not asking for something extra, like advance payments.

Talking about Russia’s $3 billion loan tranche made in December, Deputy Russian Finance Minister Sergey Storchak said Russia won’t require early repayment of the debt, as it is interested in stabilizing the economic situation in Ukraine.

Under the terms of the Russia-Ukraine deal signed in December, Ukraine’s debt should not exceed 60 percent of GDP.

This means that technically Russia has the right to demand the money back before the bonds are due in 2015.

Russian Finance News Sources


#deputy-russian-finance-minister, #gazprom, #kiev, #russia, #russia-ukraine, #russian-black-sea-fleet, #ukraine

` Ukraine's Ministry of Interior Affairs detained `Chairman of the Board ' of `Naftogaz ' under Investigation of Corruption '

#AceFinanceNews – KIEV, March 21.- Ukraine’s Ministry of Interior Affairs has on Friday detained the Chairman of the Board of national oil and gas company Naftogaz Yevhen Bakulin within the framework of investigation of major corruption schemes in the gas industry.

Parliament-appointed Minister of Interior Affairs Arsen Avakov said this in a statement.

He added that only within 3 episodes of actions committed by the criminal group and investigated by the ministry’s Investigative Department, the sum of losses inflicted to the state makes about $4 billion.

“Meanwhile, this is not the complete list of suspicious schemes and transactions that attracted the attention of our investigators. I am afraid the uncompromised investigation carried out today would lead only to immense sums of losses inflicted to many famous personalia that have to do with it.

In particular, to those from the past and present political elite,” Avakov noted.

He warned politicians from interfering with the investigation. “I warn that I will be sharply, and even in public, react on every attempt of putting pressure on the investigation,” Avakov stressed.

Investigative actions were being carried out in the headquarters of Ukraine’s national oil and gas company Naftogaz, Kiev police reported on Friday.

Eyewitnesses said “in the office on Bohdan Khmelnytsky Street and near the building, there are armed people in masks”. One of the company’s employees said that the “office work has been paralyzed, searches and confiscation of documents are under-way”.

Russian Finance and Media Sources


#kiev, #naftogaz, #ukraines

` Russian Food Companies Stand Prepared and Ready to Deliver Food Products to `Crimean Trading Networks ‘

#AceFinanceNews – SIMFEROPOL – March 21 – Over 200 Russian companies are ready to deliver food products to Crimean trading networks.

These are essential foods such as cereals, vegetables, melons and gourds, meat and meat products, eggs, bread and baked products, wheat flour, vegetable oil, spices, canned meat and fish, and tea, says a report of the Ministry of Economic Development and Trade of the Republic of Crimea.

The suppliers mentioned include Wimm-Bill-Dann, Petelinka, Rusagro Group of Companies, Russkoye more, Mistral.

There is no shortage of food products in local shops so far, and these are preventive measures, Irina Prokhorenkova, the first deputy minister of economic development and trade of the Republic of Crimea, told Itar-Tass.

She recalled that the Supreme Rada (parliament) of Ukraine on Thursday passed in the first reading the bill “On the legal regime to ensure the rights and freedoms of citizens on the occupied territories of Ukraine”. “If this document is passed in the final reading, Crimea will be cut off from Ukraine.

The borders will be blocked; export and import and the travel to and from Crimea will be restricted,” she said. “So it will be necessary to supply food products to Crimea from the mainland part of the Russian Federation,” the deputy minister noted.

What is more, Prohkhorenkova added, Crimean producers will not be able to deliver their products to other Russian regions overland, via Ukrainian territory, and will have to rely on transportation by sea.

The deputy minister has said prices in Crimean stores now rose slightly, by five to ten percent. “We follow the situation with prices daily,” Prokhorenkova stressed.

Russian News and Product Related Sources.


#crimean, #ministry-of-economic-development-and-trade-of-the-republic-of-crimea, #russian, #simferopol

` Yatsenyuk Believes that the Price of Gas from Europe will be $ 150 Below the Russian One ‘

#AceFinanceNews – KIEV, March 21.- Ukrainian government will continue talks the EU on purchases of natural gas in European countries, interim acting prime minister Arseny Yatsenyuk told reporters Friday at Kiev’s Boryspol airport upon return from Brussels where he signed the political chapter of an EU-Ukraine association agreement.

“We continue talks on getting gas from EU member-states,” said Yatsenyuk who believes for some reason that the price of gas from Europe will be $ 150 below the Russian one.

Russian Commerce Sources


#brussels, #eu, #eu-ukraine, #europe, #kiev, #russian, #ukrainian

` Unified Shipbuilding Corporation has struck a deal on a `Salaried Project ‘ with ` Russian Bank Rossiya ‘

#AceFinanceNews – MOSCOW, March 21. – The Unified Shipbuilding Corporation has struck a deal on a salary project with bank Rossiya, the press service of the Unified Shipbuilding Corporation told Itar-Tass on Friday.

In March 2007 Russian President Vladimir Putin ordered the government to prepare a draft decree on creating the United Shipbuilding Corporation (OSK)

The presidential administration is to participate in this work aimed at “legal registering the decisions which we had coordinated”.

The chairman of the government Michael Fradkov was personally asked to supervise staff support for these plans. On 22 March 2007 President Vladimir Putin signed decrees on the establishment of the United Shipbuilding Corporation.

Similar to the pattern laid down by aviation builders, the state run businesses will unite in the form of non-commercial partnership.

But while OAK was and remained a leader among Russian military exporters, OSK would concentrate first of all on the domestic market and civil products.

The newly established “United Industry Corporation”, State-owned Shipbuilding Group was seen as one of the main cornerstones of Russia’s future shipbuilding industry.


#itar-tass, #moscow, #rossiya, #russian-president-vladimir-putin, #unified-shipbuilding-corporation-osk

` Vladimir Putin is to Open a bank account with ` Rossiya ‘ and Chechen Leader Kadyrov follows Suit ‘

#AceFinanceNews – Russian President Vladimir Putin intends to open an account in Russian bank Rossiya which came under US sanctions.

Putin has made a statement at a meeting of the Russian Security Council after Russian Foreign Minister Sergey Lavrov’s report on introduction of US sanctions against Russia.

“As far as I understand, this is a middle-size bank,” Putin noted. “I do not have an account there, but I will compulsorily open an account there on Monday,” he pledged.

MOSCOW. March 21 (Interfax) – Chechen leader Ramzan Kadyrov has ordered the opening of an account with Russia Bank included in the United States’ sanctions list.

“The decision over the sanctions with respect to the bank shows it is a reliable bank, if the U.S. does not like it. So I’ve ordered an account to be opened with the bank immediately to have my salary transferred to the card,” Kadyrov wrote on Instagram.

The Chechen leader also said he decided to offer to the bank’s top management to open a branch in his republic.

“I am certain Russia Bank, of which few have known until recently, will see its business perk up,” Kadyrov added.

Russian News – Interfax – Media


#ramzan-kadyrov, #russian-president-vladimir-putin, #russian-security-council, #us

` Ukraine’s withdrawal from the `Commonwealth of Independent States ‘ will lead to sharp decline in Investments ‘

#AceFinanceNews – KIEV – March 21. Ukraine’s withdrawal from the Commonwealth of Independent States (CIS) will lead to a sharp decline in investments in the Ukrainian economy from CIS countries, primarily Russia, which is one of the largest investors, said leader of the Ukrainian Choice movement Viktor Medvedchuk.

“The CIS is an effective economic union,” Medvedchuk said commenting on the statements of Ukraine’s Acting Foreign Minister Andrii Deshchytsia and Acting Secretary of the Security Council Andriy Parubiy that Ukraine started procedures to leave the CIS.

“Ukraine’s withdrawal from the organization will also mean leaving the CIS free trade zone,” he said. “The country will forfeit duty free export regime, which will break cooperation ties with enterprises in Russia, Belarus and Kazakhstan. Economic damages will amount to billions of dollars.”

Russian Finance News


#belarus, #commonwealth-of-independent-states-cis, #kazakhstan, #kiev, #russia, #ukraines, #ukrainian

` International Ratings Agency Fitch affirms ` Russia’s National and Foreign Currencies ‘ long-term IDR from Stable to Poor’

#AceFinanceNews – MOSCOW, 21 March. International rating agency Fitch has affirmed long-term issuer default rating (IDR) of Russia in national and foreign currencies from stable to negative, the rating agency said in a statement.

Long-term IDR affirmed at BBB, short-term foreign currency IDR – F3. Country ceiling rating was affirmed at BBB +. The outlook revision reflects the potential impact of sanctions on the economy and the business in Russia, added to Fitch. Russian economic growth slowed in 2013 to 1.3%.

“As banks and investors the US and EU are reluctant to lend to Russia now, the economy may continue to slow its growth,” – said the agency.

According to Fitch analyst, the direct impact of the declared sanctions is not visible, but in the future, investors can expect the new measures, such as restricting access of Russian companies to external capital markets.

“The costs of risk have increased, and the provision of syndicated loans suspended a number of large corporations,” – added the agency.

Another international rating agency Standard & Poor’s has changed the outlook on Russia in national and foreign currencies to negative. Meanwhile, the agency has kept long-term sovereign rating of Russia in foreign currency at BBB and in local currency BBB + http://wp.me/pzTwj-2Mf

The outlook changed to negative from stable due to the increasing geopolitical and economic risks, the agency said.


#fitch, #idr, #moscow, #russia, #standard-and-poors

#AceFinanceNews MOSCOW March 21 Interfax The Rosatom state…

#AceFinanceNews – MOSCOW. March 21 (Interfax) – The Rosatom state corporation’s foreign portfolio of orders over a 10-year horizon will top $100 billion by year-end, Rosatom chief Sergei Kirienko said on Friday at an academic and research conference.

Kirienko already has contracts on 22 nuclear power blocks and is currently negotiating on 29 more.

Rosatom’s strategy to 2030 calls for investing $350 billion, the bulk of it to finance construction of nuclear power plants.


“We have set the goal of raising the portfolio of foreign orders for 10 years to over $100 billion by year-end,” Kirienko said.

#afn2014, #interfax, #moscow, #rosatom

#AceFinanceNews On Friday the international payment systems Visa…

#AceFinanceNews -On Friday, the international payment systems Visa and MasterCard suddenly stopped service cards issued by the bank Rossiya.

#mastercard, #rossiya, #visa