Putin BANS agricultural imports from sanctioning countries for 1 year

originally posted by: Xcathdra
a reply to: TritonTaranis

Where can Russia source it from? China pretty much has the African continent locked up for their food supplies.

Fruit and vegetables can be grown in polytunnels. These are just basically giant greenhouses that are environmentally controlled through heat, light, humidity, and soil acidity/alkalinity. Europe actually signed trade agreements not to use these as they put African and Israeli countries into debt as it eliminated their cash crops.

a reply to: stormcell

Does Russia have the polytunnels up and going? What's the growth cycle? Crop yield? turn around time?

How much of the above will be needed to offset the loss of the imports (40% of Russian food is imported and they are having a massive issue with drought right now).

a reply to: Xcathdra

You forget that Russia is the largest country on earth with a rather small population.

You cannot starve Russians.

It is just the question of "type of food" rather than amount of food.

Russians can still buy from international market. You forget latin America and countries like Brazil can export whatever Russia needs.

Fresh produce like fruits and vegetables are an issue, but there too - there are many choices for importing other than Europe.

originally posted by: GargIndia
Russians can still buy from international market. You forget latin America and countries like Brazil can export whatever Russia needs.

Fresh produce like fruits and vegetables are an issue, but there too - there are many choices for importing other than Europe.

Yeah Latin america wont be exporting food to Russia or RT anyway. I read an article on RT that said the EU is stopping imports from Latin america apparently they are in the middle of negotiations to prevent those imports. Its going to get nasty. And Russians better prepare themselves for huge inflation. Putin promised this wont happen but the only way to prevent it is to produce the food themselves and they cant. Even importing from Latin Amarica should the EU fail its considerably more expensive. Most eastern bloc countries just ship the food by rail and trucks importing by ships of for fresh food planes is far more expensive. This is a great example of cutting off your nose to spite your face.

a reply to: GargIndia

You cannot starve Russians.

Reality check.

originally posted by: GargIndia
a reply to: Xcathdra

You forget that Russia is the largest country on earth with a rather small population.

You cannot starve Russians.

It is just the question of "type of food" rather than amount of food.

You are right a single person cannot starve Mother Russia......Oh wait....My bad Putin can starve Mother Russia. I will say this one more time revolution happens when the cost of food reaches 40% of disposable income.



Russia is at 30%.

America is at 8%


Do the math. See the simple truth.

a reply to: SubTruth

Inflation is going to get out of control for Russians thats why any Russians with money are fleeing and dumping the Ruble. Russians had $74.6 billion in net capital outflow in the first half of 2014, more than for the whole of 2013. This means its going to be over 140 billion by the end of the year at this rate. Russians arent stupid they now the ruble is going to tank and many still remember the 1600 to 1 exchange rate for the dollar in the past.

a reply to: dragonridr

What will happen will happen.

The outflow of capital from Russia can be plugged rather easily by capital controls. If Putin has not done it so far, he may be seeing some benefit from existing situation.

The numbers quoted by you may be highly exaggerated. Where are your numbers coming from?

originally posted by: GargIndia
a reply to: dragonridr

What will happen will happen.

The outflow of capital from Russia can be plugged rather easily by capital controls. If Putin has not done it so far, he may be seeing some benefit from existing situation.

The numbers quoted by you may be highly exaggerated. Where are your numbers coming from?

The report from Russia that was there quote as for beneficial are you serious??? See its never good when your own people dont want your currency and move there money into another currency. People do this to avoid inflation basically exchange there money before it takes a wheel barrow full just to buy a loaf of bread.

a reply to: dragonridr

I am asking you again - what is your source.

The money inflow/outflow is due to a number of reasons.

USA has inflow on capital account but heavy outflow on trade account resulting in persistent deficits in external account.

Your words tell me you have almost zero knowledge of economics.

Stop misleading people on this board.

originally posted by: GargIndia
a reply to: dragonridr

I am asking you again - what is your source.

The money inflow/outflow is due to a number of reasons.

USA has inflow on capital account but heavy outflow on trade account resulting in persistent deficits in external account.

Your words tell me you have almost zero knowledge of economics.

Stop misleading people on this board.

Come on man keep up Russian economy is hemorrhaging and Putin is trying to put on a band aid this is old news. Now what we were discussing was inflation inflation increases with Russian investors moving capitol to other currency exchanges. I understand if you dont get that finance is confusing but Unless there central reserve starts attempting to prop up the ruble its going to get worse. They recently attempted 50 point rate hike increase on loans but its unlikely thats going to stop the flow. The $2 trillion economy is flirting with recession, recording zero growth in the second quarter, the rouble remains shaky and capital flight has already hit $75 billion this year.In other words they will report 3rd quarter soon and if its been like the other two Russia is toast.

Russia’s Economic Development Ministry forecasts that the outflow of capital from the country at the end of 2014 will stand at around $100 billion.
Economic Development Minister Alexei Ulyukayev said in the lower house of Russia’s parliament, the State Duma, on Wednesday that the outflow in the first quarter totaled $50 billion according to Central Bank statistics and $63 billion according to Economic Development Ministry statistics. The minister said the economic situation is the most critical since 2009, noting that it has become even tenser in the recent months.
“Uncertainty in global markets, investors’ unpreparedness to make investment decisions in a critical international situation that has formed in the past two months have added to internal slowdown factors,” Ulyukayev said.
Russia’s annual GDP grew 0.8% in the first quarter of 2014, he said. The forecast for the entire year is that the growth will slow down to 0.5% even if sanctions against Russia are not intensified. The minister said investment in fixed capital in the first quarter went down 4.8%.

in.rbth.com...

www.cctv-america.com...

bad news

a reply to: GargIndia

Your words tell me you have almost zero knowledge of economics.

Please explain to me what is going on here:



xe.com (Capitalist propaganda site)

originally posted by: DJW001
a reply to: GargIndia

Your words tell me you have almost zero knowledge of economics.

Please explain to me what is going on here:

xe.com (Capitalist propaganda site)

Oh apparently thats the Ruble struggling do to capitol outflow. But dont worry as some here believe Putin will take off his shirt and flex and everything will be all better again.

Finland will impose no new sanctions on Russia – Finnish PM

Finland will impose no additional sanctions on Russia in response to Moscow’s ban of food imports from some EU countries, said Finnish Prime Minister before the presidents of the two countries are set to meet on Friday in the Black Sea resort of Sochi.

RT

a reply to: dragonridr

Russia is net positive on external account despite capital flight.

A depreciation in Ruble does not automatically cause Russian economy to go in tailspin.

It is natural that some people will run away when the going gets tough. Let it be.

The Russian society needs to adjust to major changes in their external environment. There will be some impact on the economy due to that.

Russia has built an economy in the last 20 years which is closely integrated with Europe. Now Europe has pushed Russia aside. Of course Russia is not ready in many spheres of economic activity. But I doubt that such situation is lasting. Russians will find a solution. I have already said that oil and gas are hot commodities which increase in value in times of trouble. Russia is very strong economically due to this very fact.

a reply to: dragonridr

Don't show me exchange rates. Show me tables of USA's and Russia capital and trade accounts.

Then we shall talk.

You also forget that Russia and China have started trading in local currency (swaps). The same is happening to some extent with India. So the dollar figures will be no longer reliable in future in case of Russia.

Double post