After more than two years of close collaboration, Russia’s corporate giants Sberbank and Yandex seem to be definitively giving up on the idea of creating a Russian alternative of the American eCommerce hegemon Amazon. Serious disagreements forced the two companies to chart their own paths.
The US is considering imposing new sanctions on the Nord Stream 2 natural gas pipeline from Russia to Germany. The expanded sanctions would impact all pipeline laying activities and companies that provide insurance, port facilities, or tethering services for pipeline laying vessels.
The Central Bank of the Russian Federation sold its 50 per cent+1 share in Sberbank, Russia’s largest financial institution, to the Russian Finance Ministry. Although officially carried out to avoid conflict of interest, some analysts argue that the motivation behind the deal might lie elsewhere.
Stockholm Arbitration Tribunal has issued a decision in favor of Polish oil and gas company PGNiG. The decision changes the method of pricing for Russian gas, attaching it to the prices for gas in Western Europe and is backdated to November 1st, 2014.
The falling oil prices combined with the extra-budgetary spending requirements needed to support ailing businesses means that Russia’s National Welfare Fund will most likely be empty much earlier than previously thought. Moscow is now looking for alternative ways of financing its crisis remedies.
Will it, won’t it? The future of the Nord Stream 2 gas pipeline linking Russia and Germany is almost upon us and it’s still no clearer where we are. Poland hopes that the US sanctions will delay the project but is aware they will not stop it.
On the one hand, the Russian embargo was supposed to be a “punishment” for Western exporters for the sanctions imposed on Russia. On the other hand, it was supposed to serve as a tool to support domestic production. However, in the end Russia failed in both areas.
In early January, the Russian government unveiled its plan to adapt the country’s economy and society to climate change. Although the rising global temperature is recognized as a threat, Moscow doesn’t shy away from pointing out the benefits of global warming.
After the spread of coronavirus caused a sudden drop in demand for oil, major oil countries, led by Saudi Arabia, came up with a plan to prevent further fall in prices. However, those plans were hindered by Russia whose economy has since then took a beating, but the leadership remains optimistic.
Many analysts believe that the Russian economy has reached a dead end. The crisis is deepening and experts agree that with the existing internal and external conditions the current growth potential of the Russian economy does not exceed 1-2 per cent per year.