‘ BRICS Development Bank to Have HQ in Shanghai with Infrastructure Projects Centred in BRICS Countries ‘

#AceFinanceNews – MOSCOW – July 10 – BRICS bank will be head-quartered in Shanghai, Russian presidential aide Yury Ushakov told journalists on Thursday.


President of the Federative Republic of Brazil Dilma Vana Rousseff, Prime Minister of the Republic of India Manmohan Singh, second left, President of the Russian Federation Vladimir Putin, President of the People’s Republic of China Xi Jinping and President of the Republic of South Africa Jacob Zuma, from left, pose for group photographs. (RIA Novosti)

This was recorded in the documents, he added and reported by Itar-tass as follows:

Russian Finance Minister Anton Siluanov earlier said the short-list of cities for the bank’s headquarters included Shanghai and New Delhi.

According to Ushakov, the agreement on founding the New Development Bank of BRICS and on creation of an exchange reserves’ pool will be signed at the next summit of the organization to take place in Brazil’s Fortaleza July 15-16.

“Thus, the basis for the macroeconomic coordination of the five states will be laid,” the presidential aide noted. “The new institutions will allow enforcing the global finance system, which is particularly important amid the IMF reform that reached a deadlock.”

The authorized stock of the bank amounts to $100 billion, the dedicated capital — $50 billion, the paid-in capital — $10 billion (paid upon request — $40 billion).

The paid-in capital will be formed within 7 years.

“Russia’s stake is $2 billion, that means the capital is proportionally distributed among the bank’s participants,” Siluanov noted earlier.

There is an agreement between the countries that the stake of BRICS members in the capital will not be lower than 55%.

The bank will engage in infrastructure projects mainly in the BRICS countries.

#AFN2014

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` Russian Defence Official has said that `Moscow’ will not accept `France’s ‘ threat to Mothball its Order of Two Mistral Warship’s’

#AceFinanceNews – A senior Russian defence official has said that Moscow won’t simply accept France’s threat to mothball its order of two Mistral warships following events in Crimea.

“There is no doubt the Russian side will defend its rights … and will demand compensation for all losses we might sustain if the Mistral contract is breached,”

Deputy Defence Minister Yuri Borisov told RIA news agency.

Russia says it has already paid more than 700 million euros for the order, and as well as returning the money, France would be obliged to pay additional penalties according to the terms of the contract.

#AFN2014

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” Bitcoin Cyrpto Currency has no real value in the `Financial Markets’ as it is not backed by Real Asset’s”

#AceFinanceNews says according to (RIA Novosti) – The Bitcoin cryptocurrency is not on par with other financial securities as it is not backed by real assets, an official at Russia’s central bank said Monday.

The bitcoin logo

The bitcoin logo (Photo credit: Wikipedia)

The Bitcoin system, governed by complex mathematical algorithms, has been at the centre of recent debate as financial leaders grapple with how to regulate so-called virtual currencies.

As the total number of Bitcoins approaches a hard mathematical limit of 21 million, the coins become more computationally intensive – and costly – to calculate, a process known as mining.

“In order to equate Bitcoins with securities, it is essential to first understand what value a financial instrument represents,” said Andrei Shamrayev, deputy director of the central bank’s national payment system.

“[A Bitcoin’s value] is only fixed by the amount of time spent on its ‘mining.’”

The bank said last month that Bitcoin users – who are often also issuers of the currency through mining – could face jail time under laws restricting anonymous financial transactions intended to combat money laundering and the funding of terrorism.

Timur Batyrev, director of the bank’s national payments system, likened the currency Monday to a pyramid scheme fueled by speculative transactions.

“There will be people who are prepared to influence the exchange rate of Bitcoins in order to maximize profits.

Chiefly these are people who own a lot of Bitcoins, but there will also be people who will pay for this profit,” Batyrev said.

Designed by an unidentified computer scientist operating on-line under a pseudonym, Bitcoins have exploded as a currency for illicit transactions and were the primary means of payment on the narcotics-focused Silk Road on-line marketplace raided by the FBI in October.

 

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#Russia : “Vladimir Putin has Recommended Official’s `Optimise’ the `Funds’ Allocated for `Press’ Coverage”

#AceFinanceNews says Putin orders governors to slash PR budgets

Published time: January 20, 2014 10:57
Russian President Vladimir Putin (RIA Novosti / Mihail Metzel)

Russian President Vladimir Putin (RIA Novosti / Mihail Metzel)

The Russian president has recommended officials ‘optimize’ the funds allocated for press coverage of their work after mass media uncovered unprecedented growth in such spending in regional budgets.

The presidential order to optimize PR budgets must be fulfilled before February 1, reads the document published on the official Kremlin website. The Finance Ministry was made responsible for overseeing the process.

Putin’s order came after a whole series of controversies emerged a short time after a scandal in the central Russian Saratov Region. In December last year, the pro-Putin political movement United People’s Front officially complained to the president that the governor of the remote Far East province of Sakhalin planned to spend 680 million rubles (over $20 million) of budget funds on “improving his image” in just three years.

Putin expressed surprise over the news, but the Sakhalin public servants quickly justified the move, explaining that the huge sum was to be spent on “improvement of the state governing system” as a whole and actual “reporting on the activities of state power bodies” only required 50 million rubles (about $1.5 million).

Still, after the United People’s Front’s move the problem has come to the attention of both the authorities – who are currently looking for any opportunity to cut expenditures in the face of a looming budget deficit – and the media.

The head of the presidential administration, Sergey Ivanov, has called for regional officials to stop “fooling the people” by reporting about all governors’ actions and Prime Minister Dmitry Medvedev has urged greater independence for regional mass media, including the switch from budget financing to self-accounting.

Popular internet news site Slon.ru has published a research report made by an expert of the Fiscal Politics Center, who claimed that although the expenditures on mass media amounted to about 1 or 2 percent of the regional budgets, they continued to grow even when budgetary income began to decrease – sometimes several-fold, such as in the Sverdlovsk Region (264 percent growth in 2013 compared to 2012) and in the Astrakhan Region (528 percent).

Such a trend can be explained, at least in part, by the political reform of 2013 that reinstated direct elections for heads of federation subjects, who were previously appointed by the president and only required formal approval from regional legislatures.

Federal parliamentarians and top officials have claimed that the changes would give more legitimacy to regional leaders and also give the political system a new impetus for development.

The first nationwide election day under the new rules took place on September 8, 2013.

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