Category: Russia

Hello,

Back in 1992 Coke took some small steps in Russia and showed that they were willing to start small and let it grow. Pepsi was here before Coke was and Coke knew that they had to build a reputation slowly.

January 17, 1992 (New York Times)
COMPANY NEWS; Coca Cola Sets Russia Venture

The Coca-Cola Company said today that it had formed a joint venture with the city of Moscow to make and sell Coke products in Russia.

Coke is making an initial investment of $12 million in the operation, to be called Coca-Cola Refreshments-Moscow. The venture will focus at first on fountain sales, with distribution through a network of some 2,000 kiosks in the Russian city.

Well 15 years later Coke is calling Russia to be the 5th largest Coke Market in the world in a few years and it seems that Coke will now spend some money and try to finish off its rival Pepsi Cola.

Coca-Cola sees Russian growth, to invest $1.2 bln!

Wednesday 16:09, February 11th, 2009 (Budapest Business Journal)

US drinks maker Coca-Cola Co said it would invest $1.2 billion in Russia over the next 3 to 5 years as it bets sales of the carbonated drink will increase during the economic crisis.

“The company can afford to have aggressive positions in Russia,” Coca-Cola’s Russia, Ukraine and Belarussian head Zoran Vucinic told a news conference on Wednesday. “The market of non-alcoholic beverages is growing during (the) crisis and we want to continue investing in the Russian market.”

It seems that even though the market in the USA has dropped around 3-4% in sales for Coke they are saying that the International market has had continued growth. The market in Russia seems to have grown slightly during the financial crises.

I myself can say that Coke and Pepsi products have dropped in price over the last few months. I just bought a can of Diet Coke for 14 roubles and that is down from almost 20 roubles a few months ago.

Seems that there is a lot of profit in that little can of Coke…

Kyle & Svet

comments always welcome.

RBC, 13.02.2009, Moscow 19:04:16.Russia will submit an environmental impact assessment (EIA) of the Nord Stream project to the Baltic states by March 1, head of the Russian Natural Resources and Ecology Ministry’s environmental protection department Rinat Gizatulin was cited in a ministerial press release as saying during a meeting of the EIA working group.

RBC, 13.02.2009, Moscow 18:56:51.A significant number of joint Russia-Nato programs have been disrupted due to the economic crisis, Russia’s envoy to Nato Dmitry Rogozin told a press conference organized by RBC. The financial crisis has hit a number of nations very hard, and some of them even face bankruptcy, Rogozin noted, adding that these countries were rapidly cutting their military expenses. He explained that “by using this European-Atlantic solidarity, such countries are trying to save on their defense.”

RBC, 13.02.2009, Moscow 16:28:17.Russia’s Foreign Minister Sergei Lavrov will discuss preparations for the international conference on the Middle East to be held in Moscow with representatives of Persian Gulf and Middle East states. Lavrov is due to pay a visit to the region on February 15-19, said Alexander Zasypkin, deputy director of the Foreign Ministry’s information and press department.

RBC, 13.02.2009, Moscow 15:42:58.Trade between Russia and Turkey exceeded $32bn in 2008, Russian President Dmitry Medvedev announced after talks with his Turkish counterpart Abdullah Gul, who is currently in Russia on his state visit. He specified that according to Russia’s estimates, trade stood at over $34bn. “Our Turkish colleagues were remembering a period when trade amounted to a mere $1bn, which enables us to say that it increased 35 times over the past decade,” Medvedev stressed.

RBC, 13.02.2009, Moscow 14:47:47.Russia tops the list of the 11 largest countries in the world in terms of inflation, with the year-on-year rate at 13.3 percent as of December 2008, the Federal State Statistics Service reported citing the findings of the International Monetary Fund, the Organization for Economic Cooperation and Development, and national statistics services published on the Internet in accordance with IMF standards. As such, year-on-year inflation was 9.7 percent in India, 5.9 percent in Brazil, 3.1 percent in Great Britain, 2.2 percent in Italy, 1.2 percent in Canada, 1.1 percent in Germany, 1 percent in France, and 0.4 percent in Japan.

RBC, 13.02.2009, Moscow 10:54:42.Lukoil expects its oil production to reach 90.8m tonnes in 2009, President Vagit Alekperov said on Thursday during a meeting in Kirishi, Leningrad region. He indicated that the increase in output will amount to 2 percent compared to the previous year. Alekperov reiterated that the announced figure was true for production in Russia only and did not include the company’s foreign projects.

Hello,

I was drinking my morning cup of coffee and thinking about the news that I heard about Wal-Mart and Russia!

SPRINGDALE — Wal-Mart is exploring the retail market in Russia, with an office open in Moscow.

The Bentonville-based retailer also joined the Russian Association of Retail Companies, a trade association similar to the National Retail Federation in the United States, said Richard J. Coyle, Wal-Mart’s senior director for international corporate affairs.

“Wal-Mart has been exploring opportunities in Russia for several months,” Coyle said, and joined the retail companies association “to participate in meetings and forums” and to follow retail trends. (Link)

I have written an articles before (Link) But never really had anymore evidence other than just rumors that drift in from the locals and Reuters.

Seems that now Wal-Mart has with out a doubt made a commitment here in Russia. I am not happy about this news because I think that we have a huge discount store in Russia that serves the needs. (Link) Ашан: pronounced Auchong, is my favorite huge store and Svet and I are very comfortable shopping there.

Here is a list from the Wal-Mart sight that shows the international stores that Wal-Mart has:

Bentonville-based Wal-Mart Stores Inc. had 3,416 international stores as of Dec. 31. The market, number of stores and date of entry include:

• Mexico, 1,201, November 1991.

• Puerto Rico, 56, August 1992.

• Canada, 310, November 1994.

• Brazil, 349, May 1995.

• Argentina, 28, August 1995.

• China, 225, August 1996. The China stores include Wal-Mart’s 35 percent interest in Trust-Mart, which operates 100 stores in China.

• United Kingdom, 358, July 1999.

• Japan, 387, March 2002.

• Costa Rica, 164, September 2005.

• El Salvador, 77, September 2005.

• Guatemala, 160, September 2005.

• Honduras, 50, September 2005.

• Nicaragua, 51, September 2005.

Source: Wal-Mart Stores Inc.

So I guess that we wait and see what future Russia has with Wal-Mart!

Kyle & Svet

comments always welcome.

Ninety-five percent of the objects represented by white dots in this computer-generated illustration are human-made debris.
Image courtesy NASA

Hello,

I just had to write about this after I saw it on the news all over the world.

Two communication satellites – one Russian, one American – have collided in space some 800 kilometers over 400 miles, above Siberia.

The collision occurred on Tuesday, creating a massive explosion with much debris scattering through space. It’s still unclear what caused the collision, which has become the first-ever involving two intact satellites.

The incident is thought to have involved a 12-year-old satellite belonging to the US company Iridium and a defunct Russian Cosmos satellite that was put into orbit in 1993. The craft, which weighed 560kg and 950kg respectively, apparently smashed into each other at a speed of 420 miles per minute (25,000mph). Both satellites were used for telecommunications, with the US satellite an active part of Iridium’s network of 66 craft which provide satellite telephone access to more than 250,000 people worldwide. It’s the first crash of its kind, but NASA says it doesn’t pose a threat to the International Space Station (ISS).

Now that would have been something to see. At that speed the satellites would have just exploded like they were detonated.

Guess this will now increase awareness of the orbiting satellites and what dangers they could be to each other and the space station. Since some 6,000 satellites have been sent into orbit since 1957 and around 3,000 still remain in operation, according to Nasa.

Looks like we got a lot of space junk flying around the Earth…

Kyle & Svet

comments always welcome.

PS: Strange thing about this news though is that no one tried to change the news and put a biased slant to the article. Everyone reported the news the same. 🙂

Hello,

Russia Today had an interview with Gerald Celente, a U.S. trend forecaster. It is a very powerful interview and the young lady that does the interview for Russia Today has some priceless facial expressions in regard to some of the statements that Gerald Celente makes.

After years in politics and lobbying, Gerald Celente founded The Trends Research Institute (initially called the Socio-Economic Research Institute of America) in 1980 in Rhinebeck, New York. According to several media sources published after the events, its successful predictions include Black Monday, the fall of the Soviet Union, the 1997 Asian Financial Crisis, the quarter of the dot.com bubble burst, the subprime mortgage crisis, and the financial Panic of 2008 including the statement that “corporate giants would tumble to their death.” The Trends Research Institute publishes the Trends Journal, a publication that identifies, forecasts and analyzes business, socioeconomic, political, consumer, environmental and other trends. The purpose and focus of the Trends Journal is to inform readers of future trends and provide strategies on how to prepare and profit from what lies ahead. (Link)

I watched this video and watched another video that Gerald Celente just did with FOX News. I then went and checked archives of videos that Gerald Celente has in the past.

What I found was that Gerald Celente has spent years telling us about the coming depression. He has been expressing what he thinks about the Global predicament. People have laughed at him, scoffed him, called him names and ignored him. Now they all wish that they had heeded him.

This is very big news in Russia and all the news in Russia is geared to telling the people the truth about what is going on in the Global Finance World. Russia has article after article about how bad it is in Russia and how bad it will get. Medvedev and Putin make no issues about the truth being printed. This is the second article that I have printed on Gerald Celente. He is trying to get his thoughts heard because he feels that things can be turned around. He also said something that I feel also the new Obama administration is a joke.

“By Their Deeds You Shall Know Them!” That is what Gerald Celente says about Obama and his new staff. Sometimes the truth hurts though.

Gerald Celente does not have all the answers to the cure because he predicts trends. So to him the cure is to change directions before it is too late.

Here are some of his predictions:

I found that he is an interesting person and he is not afraid to speak his mind. He has stated in other interviews that people tried to chastise him for years but now when the facts are out everyone wants to hear what he has to say.

This is not news that I like to hear but if you remember that a while back that Russia had a Professor that made a prediction about the fall of the USA! Igor Panarin was that professor and he was adamant about the breakup of America. (Link)

Lets hope that these experts are wrong and the world will start coming out of this recession and it will not become a depression…

Kyle & Svet

comments always welcome.

RBC, 11.02.2009, Moscow 14:55:40.Russia’s Foreign Minister Sergei Lavrov considers it necessary to extend the U.N. mission’s mandate in Georgia, Abkhazia, and South Ossetia, as he said following today’s Russia-EU ministerial meeting. He added that the new U.N. mandate must reflect the actual state of affairs in the Caucasus region. The mandate’s extension is now being actively discussed both within the United Nations and in the republics, Lavrov stated, adding that the different sides’ positions on the matter were starting to converge. However, the decision must be made by the countries where the U.N. mission will be deployed.

RBC, 11.02.2009, Moscow 13:32:56.Russian credit organizations currently hold over $30bn in correspondent accounts with the Bank of Russia, head of the Central Bank’s financial market operations department Sergei Shvetsov announced during his appointment by the State Duma to the post of a member of the board of directors of the Bank of Russia. According to him, overall, the Russian banking system has sufficient liquidity to honor its commitments. “Banks have excessive foreign exchange liquidity, but not enough ruble liquidity,” Shvetsov said.

RBC, 11.02.2009, Moscow 14:24:58.Russia’s inflation stood at 0.4 percent between February 3 and 9, at 0.5 percent since the beginning of the month and 2.9 percent since January 1, the Russian Federal State Statistics Service (Rosstat) reported today. Meanwhile, inflation amounted to 0.5 percent in the corresponding period of 2008, 2.8 percent since the beginning of the month and 1.2 percent in February.

RBC, 11.02.2009, Moscow 13:40:39.The Bank of Russia’s special representatives will begin working in 30 Russian banks starting in late February 2009, the bank’s Deputy Chairman Viktor Melnikov told journalists today. He indicated that the regulator’s board of directors made this decision in agreement with the government, and the documents to this respect had already been sent to the Justice Ministry for approval.

RBC, 11.02.2009, Moscow 12:04:38.The Bank of Russia has sold $40bn from its international reserves since the beginning of 2009 compared to $70bn in 2008, Sergei Shvetsov, head of the bank’s financial markets operations department, announced at the Russian State Duma today. He pointed out that only 17 percent of the total sum was used outside Russia, while the rest remained within the Russian banking system.

RBC, 11.02.2009, Moscow 10:45:46.The Russian nuclear fuel producer TVEL, the subsidiary of the state corporation Atomenergoprom, has signed long-term contracts with the Indian government’s nuclear energy department for the delivery of fuel pellets to India’s nuclear power plants, Atomenergoprom’s press office reported today. The total value of the contracts exceeds $700m. The deal became possible after the Nuclear Suppliers Group (NSG), a multinational body concerned with reducing nuclear proliferation, lifted restrictions on the supply of uranium, reactors, and nuclear technologies to India.

RBC, 11.02.2009, Moscow 11:07:29.Fundamentally, there are no further reasons for the ruble to weaken, aide to the Russian president Arkady Dvorkovich said at a forum in Moscow. He pointed out that the Central Bank wielded enough money to keep the ruble rate within the set trading band. Furthermore, the corporate sector also boasts sufficient resources to ensure the national currency rate’s stability. The ruble, therefore, will remain at its current level unless commodity prices tumble, Dvorkovich observed. In addition, he predicted that interest rates and inflation expectations would wane shortly, in turn dragging down electricity prices.

RBC, 10.02.2009, Moscow 19:56:28.The Russian stock market closed on an upbeat note, as its leading indices added over 4 percent, fully regaining their early morning losses. The MICEX index ended 4.2 percent higher at 728.01 points, as Norilsk Nickel surged 14.88 percent, Rosneft jumped 8.29 percent, Surgutneftegas rocketed 8.69 percent, and Sberbank soared 6.79 percent. The RTS index finished up 5.92 percent, breaking above a psychological mark of 600 points. Its highest gainers included nearly all blue chips, as Norilsk Nickel rose 13.04 percent, VTB climbed 7.81 percent, Sberbank increased 7.76 percent, LUKoil gained 7.44 percent, Surgutneftegas went up 6.95 percent, and Rosneft leaped 11.43 percent. The trade volume amounted to $9.6m.

RBC, 10.02.2009, Moscow 18:57:51.Most investors have switched from currency speculations to more tangible investments, Abdrei Kostin, president and chairman of VTB’s executive board, said during his meeting with Prime Minister Vladimir Putin. He reiterated that the Russian stock market had been on the rise recently, with VTB shares gaining 6-8 percent over the past two days.

RBC, 10.02.2009, Moscow 15:55:59.Russia will not help the United States negotiate further operation of the U.S. military base at Manas airport in Kyrgyzstan, Russian Ambassador to NATO Dmitry Rogozin told a Moscow-Brussels video conference today. He stressed that the United States must discuss the matter directly with Kyrgyzstan – a sovereign state that has made a sovereign decision. The United States should stop its attempts to use Russia as a mediator in order to resolve disagreements with countries that have become independent states, Rogozin noted.

That is what Gerald Celente said in a couple of interviews in the last week. He is talking about Obama and his new administration! When he was asked about Obama and his new administration, Celente answered: “By their deeds you shall know them!”

Kyle & Svet

comments always welcome.

Hello,

The other night my wife and I had to make a trip to the center of Moscow on business. We decided to take a couple of pictures. So lets start…

As you leave a Moscow Metro Station the underground passages almost always have all kinds of shops to buy almost anything you desire. They are like mini malls. 🙂

Eyeglasses, trinkets, glass figurines, Cd’s, flash drives, anything is available.

Food by the tons.
Now this is an issue to me: I would suggest never eating the food in a Moscow Metro. I would say that it all looks wonderful, but remember these places are closed and this food will sit at room temperature all night then be sold to unsuspecting people the next day.

You will see a sign coming up that tells the operating hours of this business. 7 am to 9 thirty pm. At the time of the picture it was 10 pm. That means this food will sit there until 7 am before being consumed. There is all kinds of things inside one of these pies and blankets as I call them. From hot dogs to cabbage to ground beef and fish!

Hours of business.
I have a suggestion for people from out of Russia – do not eat the pies at the Kiosks. I promise that the pies are delicious just make sure that you get them from a reputable source.

Like I said they have little stores just packed with everything and anything. What a great way to shop. Just watch the pies! 🙂

Well we quit taking pictures and got out to the center of Moscow. I am always amazed when I see the Red Square, it really is awe inspiring.
So we had a good trip to the center of Moscow and did not get attacked, mugged, beat up or even yelled at. (I know you have all been told that Moscow is a crime riddled area that no sane person should walk around in the day time much less night time.)

As you see from the pictures there is not very many people out and about. This is a Saturday night and Moscow is and was very calm…

Kyle & Svet

comments always welcome.

Hello,

Last week I said that I had heard a rumor that Europe had a huge change of heart with Russia. I guess that I should say Europe wants the Nabucco Pipeline to be built but Russia has the only gas to fill the pipeline. (Oops)

Look at this article from Russia Profile.org

At last week’s Nabucco summit, the European Union took decisive steps by pledging the firmest possible political support for the project, in order to disperse any doubts that its intention to build a pipeline whose sole purpose is to supply Europe with non-Russian gas is indeed real. This week, the story took an unexpected turn. The Director of the Nabucco project Reinhard Mitschek said that the Nabucco consortium was open to Russia’s participation, and was ready to negotiate.

Two days before, it was reported that the European Parliament was considering inviting Russia to join Nabucco, with this proposal included in a report drafted for the EU energy security review.

Looks like I heard correct. This dead in the water pipeline can become useful if Russia supplies gas and they all bypass Ukraine.

Now a few days ago Ukraine has had several articles about the pipelines bypassing Ukraine. Ukraine is hopping up and down trying to get some attention that we are really a good transit country? (I question that!)

I have one thing to say to Ukraine: “Keep politics out of the pipeline transit because it looks like it has caused you to loose the biggest money making part of the Ukraine economy.” My grandma would have said something to the effect of: “They just opened mouth and stuck their foot in!”

Europe wants this pipeline built and Russia really does not want to build South Stream which cost almost twice as much as Nabucco. Both pipelines go basically to the same geographical area and Russia has been saying why compete lets join forces. Europe has just extended the invite.

Lets hope Europe is serious because Europe needs to have a reliable supply of gas. Russia can supply it but Ukraine can not seem to deliver it….

Kyle & Svet

comments always welcome.

Hello,

While I was drinking my coffee today I was reading and thinking about the doomsday prophecies about Russia. The major news sources in America are trying to analyze whether Russia will collapse and default.

While I doubt that Russia will default and collapse any more than the USA will collapse and default. I doubt that any country is going to cease to exist because of this Global Financial Crises. I will say one thing…

Russia is in much better shape to survive than America! Take a look at this USA debt clock:

Russia may be hurting and like the rest of the world trying to simply survive. But America passed the simply survive stage a long time ago. The American debt is so vast that understanding it boggles the mind. Truly a human mind can not comprehend the debt numbers.

Here is an article that gives you a perspective on how large the debt is:

Maxing Out the National Debt Clock
October 09, 2008 10:14 AM ET | Katy Marquardt | Permanent Link | Print

Are you surprised? Times Square’s National Debt Clock, which has been tallying up money owed by the U.S. government since 1989, is running out of spaces.

In September 2008, the digital dollar sign was eliminated to make way for an extra digit—the “1” in $10 trillion (the national debt is currently $10.2 trillion). Now, a new clock is in the works that will make room for a quadrillion dollars of debt, according to the Associated Press. Anticipated completion is early 2009.(Link)

So while Russia is having her problems along with the rest of the world. I would say that my country is having a lot worse problems. Did any one see the January 2009, figures for job loss?

598,000 people lost their jobs in America for one month and according to how you look at these numbers or according to what you believe. The government figures are always skewed to the better side.

One thing that disturbs analyst from America is the fact that Russia has a small buffer of money and the Western press takes glee in seeing Russia spend this money. The press implies that this money is blood money, like some mafia money washing fund. Also that the only reason that Russia has any money is because of terrorizing the world over her oil and gas reserves.

At least Russia has money in reserve. The USA is broke, busted and can’t pay her bills. But we act like we can and keep on racking up the debt.

Russia is trying to keep her head above water and she is struggling against a really strong current. Today Russia has put into the news that they feel finally, for the first time in months that the ruble has a chance to stabilize against the dollar. They said that January was the first month in many months that the banks kept capital in reserve and did not have to send it overseas to America and such. The money flow is starting to stabilize in Russia.

The one thing that makes no sense to me is that why are there two different standards.

1. America has been allowed to spend like a spoiled brat of a child and no one has taken his credit card away. America owes everyone in the world past due debt but we don’t point a finger and say you are going to default.

2. The rest of the world is going to default if it looks like they are going to owe anyone money. No one allows the rest of the world to use the same credit card that America has. The rest of the world is suppose to keep within their budget.

Someone needs to take the rich kids credit card away from him and tell him Uncle Sam is broke…

Kyle & Svet

comments always welcome.