Archives for July 2021

The regulator emphasized that digital assets carry increased risks for people who do not have sufficient experience and knowledge in the sphere.

“Cryptocurrencies and digital assets are characterized by high volatility, low transparency of pricing mechanisms, low liquidity, technological, regulatory and other specific risks. Purchase of investment products tied to them exposes people who lack experience and professional knowledge to a high risk of losing money,” the CBR stated in a notice published on Thursday.

Also on rt.com Don’t buy crypto! Russian central bank warns against investing in volatile digital currencies, citing risk of ‘enormous’ losses

It advised stock exchange operators against listing any securities, such as exchange-traded funds, that provide payments based on the prices of cryptocurrencies, digital assets issued abroad, cryptocurrency price indexes, crypto derivatives, and securities issued by cryptocurrency-related funds. Asset managers have been urged to exclude such assets from mutual fund portfolios, while brokers and trustees were not to offer them to nonqualified investors.

“The recommendations are a preventive measure – they are aimed at preventing the offer of such instruments to a mass investor,” the regulator said.

Restrictions do not apply to national digital currencies, if issued, or digital assets issued in accordance with the Russian legislation covering the crypto and registered with the CBR.

Also on rt.com ‘Departing technology’: Cash going way of the dodo, will be replaced by digital money in coming decades, says Russian Central Bank

Russia passed a law regulating digital assets in June 2020, with the CBR announcing plans to study the risks of investing in cryptocurrencies. On June 21, the CBR governor Elvira Nabiullina recommended against investing in cryptocurrencies, dubbing crypto assets the most dangerous economic strategy.

Earlier, regulations were also added banning Russian public officials from owning crypto assets and obliging election candidates to report their crypto holdings.

Nonetheless, cryptocurrencies, especially bitcoin, have been used for fundraising by Russia’s civil and political activists and independent journalists, CoinDesk reports.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/529999-russian-central-bank-crypto-warning/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The US social media giant was fined 6 million rubles ($81,000), while the messaging app’s fine was nearly double at 11 million rubles ($150,000).

Moscow’s Tagansky District Court said on Thursday it had fined Facebook for two different administrative offences, while Telegram was fined for three offences. The details of those have not been disclosed.

Also on rt.com China cracks down on tech firms over their collection and use of personal data

Neither Facebook nor Telegram immediately responded to requests for comment, Reuters reported. Two similar accusations have been submitted against Twitter, with the court expected to rule on them later on Thursday.

Russia has been increasingly watchful in terms of regulation of social media, with a number of fines issued over the past several months for a variety of content violations. The country’s government has also been urging foreign tech firms to open offices within Russia, as well as to store citizens’ personal data on Russian territory.

Similar steps have been taken by other countries, including China, India and the UK. British Prime Minister Boris Johnson recently met with representatives of social media firms, warning them of potential fines amounting to 10% of their global revenues if they fail to curb hate and racism content on their platforms.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/529941-russia-fines-facebook-telegram/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“Most of Rosoboronexport’s contracts are currently concluded in rubles or in the national currencies of partner countries. The share of dollars in our contracts is steadily approaching zero,” the company’s CEO Alexander Mikheyev told reporters at MAKS 2021 Air Show.

Also on rt.com Russia inks $1.2 billion-worth of military contracts at MAKS 2021 Air Show

He noted that Russia has been deliberately abandoning the dollar in payments for its export arms contracts, which, for the past few years, have brought the country about $15 billion annually in US dollar equivalent, TV channel Zvezda notes.

This follows a broader trend towards de-dollarizing the Russian economy, with the country’s Central Bank and National Wealth Fund recently cutting use of the greenback in their transactions to zero.

The state arms-export company has had a successful week, nailing 13 international contracts totaling some $1.2 billion on the sidelines of the MAKS 2021 international air show, currently underway in Zhukovsky, near Moscow.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/529934-russia-eliminating-us-dollar-arms-exports/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“Rosoboronexport used the MAKS 2021 potential to its maximum,” Mikheyev said.

The list of deals includes orders for the Sukhoi Su-30 fighter jet, the Mi-35M and Mi-17B5 helicopters, Protivnik-GE radars, Verba surface-to-air missile (SAM) MANPADS and a variety of modern air defense weapons and armored vehicles.

Also on rt.com Weapon of the future, today: Russia unveils ‘Checkmate’, new 5th-generation lightweight stealth fighter, unmanned version in works

According to Mikheyev, the company used the air show to demonstrate its most advanced models of aircraft, helicopters, anti-aircraft and electronic warfare equipment, to more than 30 delegations from 20 countries, mostly from the Asia-Pacific region, the Middle East, Africa and the Commonwealth of Independent States (CIS).

“During negotiations at MAKS 2021, the company’s foreign partners showed interest in purchasing MiG-35D and Su-30SME fighters, Il-76MD-90A (E) military transport aircraft, Il-78MK-90A tanker aircraft, the Mi 28NE, Ka-52 , Mi-171Sh and Ka-226T helicopters, as well as air defense systems, including the Pantsir-S1 air defense missile system,” he specified.

Also on rt.com Russian Helicopters to ink deal at MAKS 2021 Air Show to sell civilian choppers to UAE

Mikheyev also noted that international partners showed interest in Russia’s newest supersonic stealth fighter Checkmate, which was unveiled at MAKS-2021.

“A number of partners saw it live and were even given the opportunity to sit in the cockpit, and were highly impressed,” the CEO recalled.

The single-engine supersonic stealth fighter Checkmate is scheduled for its first test flight in 2023, with further prototypes being produced through 2025 and serial production set to launch in 2026.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/529903-russia-inks-13-deals-maks2021/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The rating is based on the buying power of global currencies according to the price of a McDonald’s Big Mac burger in different countries.

While the Big Mac costs $5.65 in the United States, in Russia the same burger costs only 169 rubles, or $2.27. According to these figures, the fair exchange of the Russian currency should be 29.91 rubles per one dollar. However, based on the current exchange of 73.65 rubles per dollar, the Russian currency is undervalued by nearly 60%.

Also on rt.com Russia less reliant on oil gas as economic recovery in other sectors fuels country’s rapid return to growth, new report reveals

According to the index, the ruble is the second most undervalued currency behind the Lebanese pound, which is undervalued by nearly 70.2%. The list also includes the euro (undervalued by 11.1%) and the British pound (15.9%).

This is not the first time the ruble has featured in the Big Mac Index’s top undervalued currencies, having held a similar position in the ranking in January 2021, as well as in January and July last year.

The list also includes overvalued currencies such as the Venezuelan bolívar (overvalued by 47.7%), the Swiss franc (24.7%), as well as the Norwegian and Swedish krona (11.5% and 9.6%, respectively).

Also on rt.com Russia’s sovereign wealth fund cuts US dollar reserves to ZERO

The Big Mac Index has been calculated since 1986 and is published twice a year. It’s based on the theory of purchasing power parity (PPP) of a currency, which assumes that, in the long term, the exchange rate should equalize the general value of a basket of goods and services in different countries.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/529900-russian-ruble-undervalued-big-mac-index/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Konstantin Lashkevich, the CEO of Russia Forest Products, or RFP Group, shared this opinion with reporters on Wednesday, stating that once in private hands, the forests can be cultivated and restored for commercial use.

Also on rt.com ‘Climate change is happening’: As wildfires destroy hectares of Siberian forest, local politician points finger at global warming

Over the past several years the number of forests with high-quality timber has been shrinking, and it may take 80 to 120 years for them to return to their natural growth. With this in mind, Lashkevich proposed to identify forest areas where it would be possible to grow timber for commercial use, following the example of New Zealand. However, according to Lashkevich this will only be possible if investors are allowed to privatize the land.

“I will not do this, because it will kill my operating economy, and an investment model cannot be built without rights to the land or at least to the growing stock. We need investments of about five thousand dollars per hectare until the forest begins to grow,” Lashkevich said.

Also on rt.com Putin: Russia’s climate environment sector may see annual revenue of $50 BILLION

He proposed choosing climate zones with the best conditions for this purpose, which is only two to three percent of Russia’s entire forest territory.

58 percent of RFP Group’s shares belong to Russian-Israeli billionaire Roman Abramovich and industrial magnate Alexander Abramov.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/529836-russia-forests-private-proposal/?utm_source=rss&utm_medium=rss&utm_campaign=RSS