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Sunday, 24 September 18:32 (GMT -05:00)



Business And Politics News

American Sanctions Will Cut Investments In Russia


Some experts say that the next round of anti-Russian sanctions imposed a couple of weeks ago is going to undermine the Russian economy. In particular, they are threatening the investment capital inflow.

 

 

 

 
A few weeks after Donald Trump reluctantly signed the new sanctions approved by the U.S. Congress, Russian and foreign investors are still trying to figure out what the actual consequences of this decision are going to be. For now, they seem to have understood enough to be afraid of long-term negative consequences for their existing or potential investments in the Russian economy, which has just started recovering after a 2-year recession.
 
Even those analysts who are skeptical about the efficiency of those sanctions are afraid that cautious investors may start reducing exposure to their Russian investments or quitting them. A top-manager working for a Russian mining company has to admit that the next round of the anti-Russian sanctions is designed to poison the recovery of the Russian economy that has been seen in there for a while. Still, he things those sanctions are going to miss the target anyways.
 
The Russian economy gained 2,5% in the second quarter of the year, which is the highest rate seen in almost 5 years.
 
According to Chris Weafer, Senior Partner at Moscow consulting firm Macro Advisory, the Russian economy is indeed recovering. In particular, the economy gradually got used to low oil prices as well as the sanctions imposed on Russia in 2014. He is convinced that those sanctions won’t curb the economic growth in Russia over the next 2 years. However, in order for the Russian economy to sustain its growth over a longer period, investment inflow is necessary, but the new round of sanctions imposed on Russia jeopardizes it.
 
According to fDi Intelligence, the amount of direct investments in Russia reached $12,9 billion in 2016. This allowed Russia to become Europe’s third biggest country in terms of attracting direct foreign investments, with the UK and France occupying the first 2 positions.
 

 

Meanwhile, some American experts believe that Trump’s administration is not going to advocate those sanctions or implement them since they have never approved those sanctions and Donald Trump signed them reluctantly. Chances are, the U.S. Congress will try to influence President Trump through even tougher moves against Russia. That’s why the experts expect new laws trying to force Trump’s administration into implementing those sanctions. It should also be noted that right in advance of the intermediate election in 2018, the Republicans believe they will benefit from acting tough against Moscow. The experts believe that they will come up with a new draft law within the next 12 months, and in this draft law “maybe” will be replaced with “have to”.

 

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Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM

Bitcoin Market Cap Exceeds $150 Billion

Bitcoin’s market capitalization exceeded $150 billion the other day. At the same time, the international expert community keeps on pondering upon the near-term prospects of Bitcoin and other digital currencies.

Publication date: 03 September 11:22 PM

New U.S. Sanctions Against Russia Will Result In Geopolitical Changes

Political expert Lilia Shevtsova commented on the new sanctions against Russia imposed by the United States. She claims that the geopolitical situation in the world is going to change in the near future due to the sanctions.

 

She claims that introducing those sanctions was like a surgery. As the result of this surgery, the USA got rid of a foreign body. After that, Washington is probably going to reset their foreign policy. However, nobody can definitely say what exactly this event is going to result in. But one thing is sure – something is definitely going to change in the world order, and this creates certain threats for Russia.

Publication date: 28 August 03:32 AM

New Sanctions Against Russia Will Last Long

Russian political expert Leonid Shvets commented on the new round of anti-Russian sanctions. For starters, he claims that Russia has already turned into America’s biggest enemy. The thing is that the new law signed by Donald Trump not so long ago is designed to fight America’s enemies with the help of sanctions. North Korea and Iran are also on the same list.

 

 
Publication date: 28 August 01:02 AM

New Sanctions Will Hit Putin Personally, Piotrovskiy Says

This time, American sanctions are going to hit even Vladimir Putin himself, Andrey Piotrovskiy says. He says that the devil is in the detail. The thing is that the new sanctions approved by the U.S. Congress and signed by Donald Trump (even though he was against those sanctions), obliges the U.S. financial intelligence to provide the Congress with the information on all the known and probable assets belonging to the all the high-ranking Russian politicians, including Russian President Vladimir Putin. With that being said, it’s not accidental, that Putin is mentioned several times in the document.
 
Publication date: 27 August 11:35 AM

Russia Loses Ground in Energy Market

Washington is planning to increase the export of natural gas to Europe, which is expected to diminish Russia’s role as a major natural gas exporter to the European region. Experts say, that the policy aimed at expansion is now aimed at retaining the existing position in the European energy market.
 

 

For those of you who don’t know, Donald Trump signed a decree aimed at making America an energy superpower. As a part of this announcement, it was decided to expand the export of natural gas to Europe, which is also expected to reduce Europe’s dependency on Russian natural gas. At the same time, the U.S. government may cause extra troubles to Gazprom by means of sanctions.
Publication date: 22 August 11:47 PM

Solar and Wind Power Will Make Coal Production Unprofitable Soon

Coal production is expected to go unprofitable in the near future., experts say. At the same time, miners will go extinct as a profession, Bloomberg predicts. It’s all about the so-called green energy, or alternative energy. Mostly, green energy implies the energy generated by solar and wind power.
 
The experts predict that the cost of generating energy from solar and wind power will reach parity with the energy generated by coal. At the same time, they assume that the share of the energy generated by coal will be reduced by 80-90% in a matter of 20-25 years.
Publication date: 22 August 05:16 AM

U.S. Energy Revolution Announced by Trump Threatens Russia

Donald Trump’s speech about starting a new energy revolution together is now discussed by the international community. It seems that the USA is going to start a new policy regarding commodities. The changes are expected to take place within the next 10 years.
 

 

Apparently, America’s new energy policy is aimed at dominating the global markets over time. That’s why Trump and his administration are now betting big on the local oil and gas production. The thing is, the sources of the so-called green energy are not capable of replacing hydrocarbons for now, which is why they still have to rely mostly on conventional energy carriers, especially as shale oil and gas production has been booming over the last few years.
Publication date: 18 August 06:50 AM

Trump’s Policies Make USA Lose Their Leading Position in the West

More and more international experts are concerned about Donald Trump’s policies. Some of them are concerned that because of him and his actions, the USA may lose their leading role in the Western world.  

 

 

According to Fareed Zakaria, political expert, CNN host and columnist for The Washington Post, Trump’s recent political decisions have made the European Union so united that Putin could never have dreamed of. Even though he is not going to make the Western world collapse, the USA may still lose the number-one status in the Western world.

Publication date: 31 July 12:09 PM

Does China Oust Russia From Central Asia?

As the situation in Afghanistan is getting worse, this is raising a lot of concerns in the international expert community. The Islamic terrorist threat may spread from there to Russian and China, they say.

 

 
According to a Norwegian observer for Dagbladet, there exist 5 countries in Central Asia that can be seen as potential threats to Russia and China. The thing is, the Islamic terrorism may well spread from those countries to their neighbors. They say that Afghanistan is now the biggest potential threat since the amount of armed conflicts in the country are getting more and more frequent and tough. As Taliban (the local terrorist organization) is said to be sponsored and suppled with arm and ammo, the USA seems to be putting the blame for this on Russia.
Publication date: 29 July 11:53 AM