Archives for January 2015

Reuters/Aly Song

More foreign direct investment flowed into China than the US in 2014, bumping the US off the top spot for investment in the world, a position it has held since 2003.

China attracted $127.6 billion in foreign investment in the past year, far more than the $86 billion that flowed into the US, according to figures published by the United Nations Conference on Trade and Development (UNCTAD) on Thursday.

Foreign businesses invested $127bn in #China, $86bn (from $230bn in 2013) in US http://t.co/UVhl8lNr0b @giuliano_noci pic.twitter.com/TiCziR2T9q

— Umberto Bertelè (@umbertobertele) January 30, 2015

The difference between 2013 is staggering, when $123.9 billion poured into China and $230.8 billion into the US. The US saw foreign direct investment (FDI) fall to its lowest since 2009, when the market was wiped out by the financial crisis. The US ‘lost’ so much investment because of Verizon’s $130 billion purchase of Vodafone in the UK, which was counted against it in the UNCTAD tally.

China, the second largest economy, has been steadily gaining ground in FDI, which has accelerated with a flexible yuan exchange rate and reforms that make it easier for Western businesses to operate in mainland China.

“There have been structural changes in inflows to China, from manufacturing toward services, and from labor-intensive to tech-intensive,” according to Director of Investment and Enterprise at UNCTAD James Zahn.

After China, Hong Kong also pulled ahead of the US into second spot, followed by Singapore and Brazil. The US is the only developed, and not developing nation in the top five.

The survey also noted a major shift favoring investment in developing economies- which saw investment rise four percent in 2014, whereas developed economies fell by 14 percent.

The biggest loser was Europe and the former Soviet bloc. Russia lost 70 percent of its foreign investment, and Ukraine lost out on $200 million. Both are consequences of the conflict in East Ukraine.

Another title China swiped from the US in October was as the world’s biggest economy in terms of power purchasing parity.

READ MORE:China surpasses US as world’s largest economy based on key measure

“China has been steady with modest growth over the past few years, and it is expected to continue,” Zhan told the WSJ.

Article source: http://rt.com/business/227907-china-us-foreign-investment/

RIA Novosti/Pavel Lisitsyn

The Central Bank of Russia bought a record amount of gold in the first 11 months of 2014 spending an estimated $6.1 billion. Increasing gold reserves attempts to reduce dependence on the dollar amid geopolitical tension, Mark O’Byrne of GoldCore, told RT.

Russia’s gold purchases accounted for a third of the world’s total of 461 tons, according to research by Thomson Reuters GFMS (Gold Fields Mineral Services). The amount of gold bought went up 123 percent from the previous year to 152 tons, worth $6.1 billion at current prices. It’s the most Russia has spent since the collapse of the Soviet Union.

Given the tension between the US and Russia, it’s more likely Russia will sell dollar assets and buy gold, said O’Byrne.

“That will be done both to protect the ruble and potentially to position the ruble as a reserve currency in the long-term, but also as a signal to Washington,” he said, adding that it’s almost like a geopolitical move showing that Russia has a monetary and financial alternative and it can retaliate if economic sanctions were to deepen.

On Thursday EU foreign ministers decided to prolong sanctions against Russian officials and the militias in eastern Ukraine until September 2015, but decided against broadening the list of economic restrictions. A final decision is expected in February.

READ MORE: EU foreign ministers extend sanctions against Russian officials, E. Ukraine rebels

“Increasing the share of gold in foreign exchange reserves is not a short-term speculation, it’s a long-term diversification,” O’Byrne said.

Analysts from GFMS partially attribute the increase in Russian gold purchases to the buying of the metal from domestic production that increased 9 percent year-on-year. At the same time, it won’t be easy to sell these volumes overseas due to sanctions, they say.

“This is a clear positive for the gold price,” said Matthew Turner, analyst at Macquarie, as quoted by the FT. “If central banks had not purchased that gold it would have been bought by private investors or jewelry consumers, and this would likely have required a lower gold price.”

The current spot price for gold is $1,263 per ounce which is below the recent five-month record of $1,300.

READ MORE: Gold above $1,300 for first time in 5 months

The research forecasts that soon Russia may slow global gold purchase rates and enter the sales market to sell its reserves in order to support the national currency.

During the crisis of 1998, Russia had to sell 118 tons of gold reserves to cover fiscal deficits. At the same time, the current situation is not as dramatic as Russian foreign exchange reserves are valued at $378.1 billion.

“We are still a long way off Russia needing to sell gold,” said Turner.

Russia was the second biggest gold producer in 2014.Last year it extracted 272 tons of gold, outstripped by China with 465.7 tons, and just ahead of Australia producing 269.7 tons.

Article source: http://rt.com/business/227755-russia-record-gold-purchase/

The Russian Central Bank (RIA Novosti/Ruslan Krivobok)

The Russian Central Bank has cut its key interest rate to 15 percent from 17 percent due to the ‘shift in the balance of risks of accelerated consumer price growth and cooling economy,’ according to a statement from the regulator.

The 200 basis point cut comes a month and a half after the bank raised the rate to 17 percent on December 16 in a failed attempt to control the massive devaluation of the ruble.

Growth in Russia slowed in 2014, and isn’t expected to have expanded more than 0.5 percent. The Central Bank forecasts GDP will fall by 3.2 percent in the first six months of 2015, compared to the same period last year. A rate cut had an immediate negative effect on the ruble and Russian stocks.

READ MORE: Russian Central Bank hikes key interest rate to 17% to halt ruble roil

The unexpected change immediately sent the ruble down to a rate of 71 rubles against the US dollar, meaning the Russian currency has lost more than 17 percent of its value since the beginning of 2015. In 2014, the currency weakened by 46 percent. The ruble tumbled to more than 80 against the euro.

Dollar rising versus ruble after Russia cuts interest rates $USDRUBpic.twitter.com/i5MCjLmmEa

— Rob Williams (@robwilliamsNY) January 30, 2015

The rapidly depreciating ruble has led to a surge in inflation, or consumer prices, in Russia, which the bank thinks will cool down in relation to the ruble. The “accelerated price adjustment to the ruble depreciation is time-limited,” the statement said. At the end of 2014 inflation reached 11.4 percent, and as of January 26, 13.1 percent. By 2016, the regulator estimates consumer prices will fall to 10 percent.

Higher interest rates make it more expensive to take out loans from banks, and therefore can discourage economic growth and activity.

Russian companies have been asking for a rate cut since the hike to 17 percent from 11. 5 percent in December, this made new loans more expensive and stifled production.

Free-float pain

In November the Central Bank initiated a free-float regime in order to stop burning through country’s foreign currency reserves to support the ruble.

Russian Deputy Prime Minister Igor Shuvalov told Sputnik news that switching the ruble to a free-float regime is “extremely painfully, but completely justified and correct.”

Inflation will start to wane in the second quarter of 2015, according to the Russian Central Bank.

“Inflation and inflation expectations are forecast to decrease as the economy gradually adjusts to changing external conditions,” the bank’s statement says.

Weighing heavily on the ruble is also the price of oil, which is pushing down the ruble, the two falling in tandem. Russia’s budget is more than 50 percent dependent on oil and gas exports.

READ MORE: Ruble sinks to new record low as WTI nears $44

No clear sign forward

The regulator didn’t give any indication about future plans for interest rates, a segment usually included in the monthly interest rate meeting statement. Regularly the directors give a hint about future policy changes.

December 2013 was the last time the bank omitted any future economic sentiment signals in its monetary policy decision.

The bank next meets on March 13.

Article source: http://rt.com/business/227839-russia-key-rate-cut/

Russian Finance Minister Anton Siluanov. (RIA Novosti/Vitaliy Belousov)

Greece hasn’t outright asked Russia for a loan, but Russian Finance Minister Anton Siluanov said Moscow wouldn’t rule it out. His statement comes days after Greece openly opposed further economic sanctions against Russia.

“Well, we can imagine any situation, so if such [a] petition is submitted to the Russian government, we will definitely consider it, but we will take into account all the factors of our bilateral relationships between Russia and Greece, so that is all I can say. If it is submitted we will consider it,” Siluanov told CNBC in an interview in Moscow on Thursday.

READ MORE- Russia seeks to privatize its suffering ‘friend’ Greece

The new left-wing Syriza government in Greece won a majority at last Sunday’s election on the promise to renegotiate the country’s €317 billion debt and end austerity.

Greece needs to negotiate with EU policymakers by February 28 in order to receive the next tranche of bailout funds. If Athens doesn’t get the money it will have difficulty servicing its debt. Two bailouts were paid in 2010 and 2014 totaling €240 billion.

The new government was quick to show support for Moscow, and has openly called for an end to Russian sanctions, and may veto any future sanctions.

#Greece says #EU should change policy towards #Russiahttp://t.co/QW6M5V3G89pic.twitter.com/HLR7xQCBH5

— Sputnik (@SputnikInt) January 29, 2015

Siluanov applauded Greece’s stance on sanctions as “pragmatic” and “economically justified.”

On Thursday the European Commission decided to extend sanctions against Russia through September 2015, but did not add any broader economic measures. A spokesperson for the new PM Alexis Tsipras said Greece didn’t approve of any further restrictive measures.

READ MORE: EU foreign ministers extend sanctions against Russian officials, E. Ukraine rebels

Between announcing it doesn’t intend to pay off its €317 billion debt in full and blocking Russia sanctions, Greece has emerged as a wild card among the 29 countries of the EU.

Russia-Greece deals

Russia gave Greece a very valuable card to play in the EU when it announced its South Stream pipeline will be re-routed through Turkey, with a gas hub expected to be built on the border between Turkey and Greece.

READ MORE: Putin: Russia forced to withdraw from South Stream project due to EU stance

Article source: http://rt.com/business/227751-russia-greece-financial-aid/

The new plan approved by President Vladimir Putin on Tuesday and signed by Prime Minister Dmitry Medvedev Wednesday includes 60 measures aimed at “sustainable economic development and social stability during period of adverse influence of external economic and foreign policy.”It comes at a time when Russia is struggling to cope with the plummeting ruble, nosediving oil prices and a sanctions standoff with the West.

READ MORE: Russia’s PM signs multibillion dollar anti-crisis plan

The plan follows three basic principles – to encourage economic growth, support individual industries and take measures to maintain social stability.

Russia’s PM signs multibillion dollar anti-crisis plan http://t.co/nEzPuJ1rxO pic.twitter.com/VnZNGwu4uA

— RT (@RT_com) January 28, 2015

It sees most budget expenditure cut by 10 percent in 2015 primarily by slashing ineffective spending. No cuts in defense, support for agriculture and international undertakings are being considered. All the social commitments will be met, the government promises.

In terms of investment, Russia will focus on completing the existing projects, with some new ones being put on hold.

The biggest part of the $35 billion aims to support Russia’s banks and finance sector. To achieve this Russia intends to establish a so-called ‘bad bank’ that’ll collect sour corporate debt and problematic company assets.

The final cost of the anti-crisis plan is expected to be calculated by March 2015.

In the coming months Russian authorities plan to:

1. Support import substitution and the export of a number of non-energy goods, including advanced technology

The need for import substitution has become one of the key economic issues for Russia after the outbreak of the so-called ‘sanction war’ with the West. Agriculture and energy on both sides are now suffering from the cutting of ties. Russia’s Finance Minister Anton Siluanov estimates the Russian economy stands to lose about $200 billion from a combination of sanctions and plummeting oil prices.

2. Provide assistance to small and medium enterprises (by reducing administrative and financial costs)

During 2014, Russian leaders including President Vladimir Putin pledged to give the country’s small and medium-sized businesses more freedom. In his December speech to the Federal Assembly Putin said it was necessary to free Russian business from red tape and restrictive oversight, and that all checks on Russian businesses should be public. He said the government will start a register giving details on who initiated the checks, why they were done, and the results.

3. Create opportunities for attracting investment to the most important sectors of the economy (this includes the implementation of defense procurement)

4. Compensate for additional inflationary costs for the most vulnerable members of society (the retired and multiple children families)

Food prices in Russia have skyrocketed by 300-400 percent in some stores, after the ruble lost about 15 percent in the first weeks of 2015, according to an investigation by the Russian Prosecutor General. Official data from the statistics office shows prices were up about 11.9 percent in annual terms in January. Overpricing at some shops around the country triggered checks, with Russia’s Vice Premier Arkady Dvorkovich saying the Government doesn’t exclude the regulation of food prices if they rise by 30 percent over a long period.

5. Reduce tension on the labor market and support full employment

6. Optimize budget expenditures (first, identify and reduce inefficient costs, concentrate resources on priority areas of development and implement public commitments)

READ MORE: Russia to provide banks with billions to fight off crisis

The Russian government expects gradually stabilizing energy prices along with the measures taken by the Bank of Russia will allow a normalized Russian exchange market and create conditions for easing interest rates and making credit financing more accessible.This will allow the main sectors of the economy to exit recession at the expense of higher competition for Russian goods amid a falling ruble.

The Russian government says it’ll monitor how well the plan is being implemented through monthly checks.

Article source: http://rt.com/business/227335-russia-anti-crisis-plan/

Reuters / Alkis Konstantinidis

The EU is not going to write off the external debt of Greece, as the country should abide by the previous commitments to its international lenders, said the President of the European Commission Jean-Claude Juncker.

“There is no question of cancelling the Greek debt. Other eurozone countries will not accept this,” said Juncker Wednesday as quoted by Le Figaro. He added that Brussels is open to dialogue and didn’t want to threaten Greece.

The Greek government was forced to implement austerity measures in exchange for a €317 billion bailout from the troika of creditors of the ECB, IMF and the EU.

Most of the funds were used to support Greek banks and only around 10 percent has reached the people. Tightening belts resulted in a sharp increase in poverty and a record high unemployment rate.

#Syriza | Do you think Greece should follow the Ecuadorian example and renegotiate part of their external debt? pic.twitter.com/Dm8syAZkeG

— teleSUR English (@telesurenglish) January 29, 2015

During the election campaign the new party in power Syriza pledged to enact anti-austerity measures that included writing off part of the ‘troika’ debt. The refusal to pay off the debt to international creditors will question the further membership of Greece in the eurozone. Experts and economists fear that radical decisions taken by Syriza could lead to Greece exiting the eurozone which in turn could trigger a domino effect with other countries in the region hard hit by the crisis.

On Monday Mr. Juncker had a phone conversation with the new Greek Prime Minister Alexis Tsipras whose campaign pledge was to give Greece an anti-crisis plan alternative to austerity.

“He told me that he doesn’t consider himself a danger, but a challenge for Europe. And I replied that Europe is not a danger for Greece, but a challenge,” Juncker told Le Figaro.

He explained that the results of the parliamentary elections in Greece, won by the left-wing Syriza party, will not change the situation radically.

“It won’t be true if we say a new world was born after the elections. We respect the right of Greece to choose, but Greece has to respect others, to respect public opinion and members of parliament of other European countries. Various agreements are possible, but they will not fundamentally change what’s already there,” said Juncker.

Juncker’s statement followed the reaction of Germany, Greece’s biggest lender, which said it won’t consider writing off the country’s debt.

“Greece cannot simply pick and choose what it does and does not want to do and expect its neighbors to step into the breach,” insisted Sigmar Gabriel, German Vice-Chancellor and Minister of Economy and Energy. At the same time, Berlin doesn’t exclude that the program of financial aid to Athens can be extended. However, such a decision will be taken at the EU level.

On Sunday opposition party Syriza came to power in Greece as a result of early elections. Its leader, Alexis Tsipras, became prime minister and said he would fight to write off the country’s external debt to the European Union.

READ MORE: ‘5yrs of humiliation, suffering over’: Anti-austerity party to form govt in Greece

“We are ready for talks with EU partners to find a viable, fair and mutually beneficial solution to the debt problem,” he said adding there won’t be a “catastrophic break” with Brussels but at the same time Athens is not going to continue, “the destructive policy of subordination.”

Tsipras has already suspended the privatization of ports and the sale of national energy providers agreed as part of the bailout terms. He has announced a hike in pensions for the poor and is also planning to return to work some public sector workers laid off amid the austerity measures imposed by the previous government.

“We are coming in to radically change the way that policies and administration are conducted in this country,” he said.

Greek bank stocks have fallen over 40 percent since the elections on Sunday, with a drop of 26 percent after the announcements of the new policies on Wednesday.

The program of financial aid to Greece was supposed to end in December, but was extended for another two months so that the country could run the elections and the terms of exit could be negotiated with the new government.

Article source: http://rt.com/business/227467-eu-greece-debt-eurozone/

Reuters / Hannibal Hanschke

For the first time since 2009, Germany expects negative inflation, at -0.3 percent in January. In some states, prices are falling their fastest since 1950.

Consumer prices fell -0.5 percent in January, according to the first estimate from Germany’s statistic office. The last time prices were this low in Germany was July 2009, after the financial crisis spread to Europe. The revised results for January will be published on February 12, 2015.

#Deflation has arrived in #Germany. Jan CPI has dropped to -0.3% YoY, lowest level since Jul2009. pic.twitter.com/vM9fETp5y7

— Holger Zschaepitz (@Schuldensuehner) January 29, 2015

In December, inflation in Europe’s biggest economy hit a 5-year low of -0.2 percent, a far cry from the European Central Bank’s target of 2 percent.

The eurozone will report its total 2014 inflation figures on Friday, expected to fall between the range of -0.2 and -0.5 percent.

Data from four of the country’s 16 federal states show a fall below zero in January, according to statistics from the German states published Thursday, Reuters reported.

“Data from the German states suggest that national HICP inflation dropped below zero in January for the first time since October 2009, with a more negative reading than had been expected,” Jennifer McKeown, senior European economist at Capital Economics, told Reuters.

North Rhine-Westphalia (NRW), with the cities of Dusseldorf and Cologne and the biggest population of any state, saw consumer prices decline their steepest since 1950, with the cost of living falling 0.4 percent in January.

Governments usually worry more about inflation, the increase of prices, than deflation, the decrease, but both are equally troubling. Deflation benefits consumers and increases their purchasing power, but it can also depress an economy because people are less incentivized to invest and it can spur unemployment. It also makes those that already have debt more indebted. And Europe has a lot of debt. Higher inflation could help countries pay off debt quicker.

As a whole, the eurozone had an inflation rate for 2014 at 0.2 percent, and on Friday will release December data, which is also expected to be negative.

The euro currency, shared by 19 nations, has been stuck in deflation, especially in highly indebted countries like Greece.

Last week, the European Central Bank decided to begin a €1.14 trillion stimulus program, aimed at increasing inflation and bring it closer in line with two percent.

READ MORE: ECB announces milestone €1.14trn ‘easy money’ program

Article source: http://rt.com/business/227463-germany-january-2015-deflation/

McDonald’s CEO Don Thompson.(Reuters / Adrees Latif)

The CEO of world’s largest restaurant chain Don Thompson is saying goodbye to McDonald’s in the middle of food quality scandals, and its worst sales slump in more than a decade. He first joined the company in 1989.

“It’s tough to say goodbye to the ‘McFamily’, but there is a time and season for everything,” Don Thompson said in a statement Thursday, announcing he would retire March 1.

Thompson, 51, has worked at McDonald’s for nearly 25 years and has been CEO since 2012. He was the first African-American to head the company since it was founded in 1955, and one of only a few black Fortune 500 CEOs.

His time at the helm was marked by struggles for the burger giant, particularly in its home market. Sales at the US stores stayed flat or declined for 13 months in a row until December, when they rose just 0.4 percent, the Huffington Post reports.

READ MORE: Not lovin’ it: McDonald’s sales in US plummet

Bottom line is no one is “lovin’ it” // McDonald’s CEO out as burger chain’s struggles worsen http://t.co/4FWNxbxWAN pic.twitter.com/3rvKjCCYvS

— Food Tank (@Food_Tank) January 29, 2015

He will be replaced by 47-year old Chief Brand Officer Steve Easterbrook who started at McDonald’s in 1993 as a manager in London. Shares in the biggest fast-food chain jumped 3 percent after the announcement.

“I am honored to lead this great brand, and am committed to working with our franchisees, suppliers and employees to drive forward our strategic business priorities to better serve our customers,” said Easterbrook.

The new McDonald’s chief executive has many challenges and changes to face. Last week McDonald’s announced weak business expectations in the first half of 2015 and the intention to cut the company’s annual construction budget to its lowest in more than five years.

The company had a very disappointing year, struggling economic hurdles, falling earnings and sales, supplier scandals, wage rallies, intensifying competition and changing attitudes to food.

McDonald’s faced a number of food scandals during 2014. Two restaurants sold chicken nuggets containing plastic, a cheeseburger with 5-milimeter metal chip was sold in Japan, and a human tooth was found in French fries, as well as pieces of napkins in juice.

In Russia, the food safety watchdog temporarily closed 12 McDonald’s outlets across the country citing sanitary violations; some have been reopened after investigations.

READ MORE: Not again! Japanese McDonald’s sells cheeseburger with ‘metal chips’

McDonald’s is currently attempting to be seen as a more healthy option, and is making menu changes. Customer traffic last year fell 3.6 percent globally, including a 4.1 percent drop in the US, its most important market. Last week the company reported a 21 percent drop in fourth-quarter earnings.

Earlier this month, the fast-food giant announced major changes in an effort to bring back customers and save money. It’s going to slow down new restaurant openings in some markets. A number of employees have been notified about layoffs McDonald’s said on Wednesday.

Article source: http://rt.com/business/227403-mcdonalds-ceo-sales-scandals/

READ MORE: E. Ukraine militia denies shelling Mariupol, accuses Kiev of provocation

The most likely outcome will be an extension of current measures until September 2015, according to Reuters, which has seen a draft of the final resolution. If SWIFT, the Society for Worldwide Interbank Financial Telecommunication (SWIFT), is turned off in Russia, it would instantly cut off EU-sanctioned banks from global finance. SWIFT is the world’s biggest electronic payment system, processing trillions of dollars daily. Similar action was taken with Iran in 2012 to pressure Tehran into nuclear talks. A 3-day notice was given before the designated banks were cut-off entirely from SWIFT services.

Russia launched a ‘SWIFT alternative’ in December.

The Foreign ministers are likely to leave the final decision on widening the sanctions to national leaders who will meet at a follow-up summit on February 12.

Russia has vowed to respond economically to any further sanctions, and on Monday Prime Minister Dmitry Medvedev warned the response could be “unlimited.”

READ MORE: Russian PM vows ‘unrestricted’ response if banned from SWIFT payment system

View image | gettyimages.com

States split

A majority of EU members are ready to levy new sanctions against Russia, as they consider the anti-government rebels in Kiev are not abiding by the ceasefire agreed to in September. However, a minority of countries staunchly oppose the political and economic standoff with Russia, as it further complicates EU growth recovery.

The new leadership in Greece has openly called for an end to Russian sanctions, and may veto any future sanctions against Moscow.

In August, Moscow banned agriculture imports from the EU in retaliation to sanctions that targeted the financial and energy sectors in the Russian economy.

READ MORE: Russia bans agricultural products from EU, USA, Australia, Norway, Canada

Sanctions may cost the EU over €16 billion a year, according to estimates. Russia was Germany’s 7th largest export market according to the German statistics service. In 2015, German exports to Russia could drop 15 percent, or by €4 billion, the head of Germany’s Chamber of Industry and Commerce, Volker Treier told Reuters on Thursday.

Like it or not, the EU has to decide to suffer with the impact further #sanctions against #Russia will have on their economies. 1/2

— Nina Ivanovna (@ninaivanovna) January 27, 2015

Russia has said it may resume trade on an individual basis with France, Hungary Italy, Denmark, and the Netherlands.

Article source: http://rt.com/business/227307-eu-sanctions-russia-swift/

RIA Novosti / Vladimir Trefilov

The volatile ruble has hit a fresh low against the US dollar, trading at 69 per 1 USD after the Russian currency lost 2 percent of its value in opening trading hours in Moscow.

Since the beginning of the year, the ruble has lost nearly 15 percent of its value, in tandem with plunging oil prices, which have also lost 15 percent.

Russian Ruble about to hit 69 to the US dollar as oil sinks to a 6-year low. pic.twitter.com/x74JnAow9s

— Conflict News (@rConflictNews) January 29, 2015

Wednesday’s ruble rout is a reaction to the drop of WTI to $44.08 per barrel, the lowest price since April 2009. WTI is the North American oil benchmark.At the time of publication, WTI had edged up slightly to $44.29.

Russia, the world’s largest energy exporter, has been hit hard by dropping oil prices, since oil and gas exports account for nearly 50 percent of Russia’s exports.

Trouble for the ruble has been made worse by sanctions from the West, capital flight and geopolitical consequences from the conflict in Ukraine.

Urals crude, Russia’s key export blend, is trading even lower, at $42.8 per barrel.

The Ministry for Economic Development is considering giving Rosneft 1.3 trillion rubles ($19.2 billion) in assistance, according to Deputy Economy Minister Nikolay Podguzov.

Prime Minister Medvedev before said the oil major could receive up to 1.5 trillion rubles from Russia’s National Welfare Fund. At the time, it was equal to $40 billion.

On Wednesday, Prime Minister Dmitry Medvedev signed a one year anti-crisis plan, estimated to cost at least $35 billion. It is expected that at least $15 billion will be dedicated to supporting banks, but the PM also said it will provide measures to support the energy sector, as well as agriculture, housing, public utilities, and manufacturing.

READ MORE: Russia’s PM signs multibillion dollar anti-crisis plan

Article source: http://rt.com/business/227315-russia-ruble-oil-economy/