Another perfect case showing the foundations of putinism arrived: state-owned hi-tech corporation Rusnano is on the verge of default.
It was stated on Friday that the accumulated debt and the current financial model of the company require adjustments. In other words, it cannot pay its debts.
Moscow Exchange stopped trading in all nine issues of bonds of “Rusnano” the same day. Today operations with Rusnano bonds resumed, their price predictably collapsed.
So, the state-owned corporation of Anatoly Chubais is practically a bankrupt. Billions of taxpayer dollars were used for the enrichment of the company’s top-management, affiliated siloviks and other state managers.
What’s next? Kremlin will give Rusnano billions of taxpayer dollars to avoid default and problems for other state-owned companies . Nobody will be punished. State corporations will continue to exist and make their corrupted managers rich.
State TV will continue to talk about Ukraine and West trying to dismantle Russia which is effectively dismantled by its own elites.
It was stated on Friday that the accumulated debt and the current financial model of the company require adjustments. In other words, it cannot pay its debts.
Moscow Exchange stopped trading in all nine issues of bonds of “Rusnano” the same day. Today operations with Rusnano bonds resumed, their price predictably collapsed.
So, the state-owned corporation of Anatoly Chubais is practically a bankrupt. Billions of taxpayer dollars were used for the enrichment of the company’s top-management, affiliated siloviks and other state managers.
What’s next? Kremlin will give Rusnano billions of taxpayer dollars to avoid default and problems for other state-owned companies . Nobody will be punished. State corporations will continue to exist and make their corrupted managers rich.
State TV will continue to talk about Ukraine and West trying to dismantle Russia which is effectively dismantled by its own elites.
Head of Russia Federal Tax Service Danil Egorov told RBC that the outflow of capital from Russia to Cyprus has increased dramatically in January-September 2021.
Overall, in nine months Russian banks and companies have transferred 311.4bln roubles to Cyprus. It is three times more than in the same period of 2020.
The total outflow of capital from Russian in January-September 2021 reached $59bln, an increase of 48% from the last year.
There is one basic Russian law. The more Kremlin talks about patriotism, Russian sonderweg and sovereignty, the more money is transferred by Russian elites to the West.
Basically we are very interested in the rise of Russian patriotism the way Putin and others understand it.
Overall, in nine months Russian banks and companies have transferred 311.4bln roubles to Cyprus. It is three times more than in the same period of 2020.
The total outflow of capital from Russian in January-September 2021 reached $59bln, an increase of 48% from the last year.
There is one basic Russian law. The more Kremlin talks about patriotism, Russian sonderweg and sovereignty, the more money is transferred by Russian elites to the West.
Basically we are very interested in the rise of Russian patriotism the way Putin and others understand it.
The US imposed new sanctions related to the Nord Stream 2 pipeline. The State Department has designated a vessel and a "Russian-linked entity" called Transadria Ltd.
The sanctions come as reports of Russian troops massing near the border with Ukraine have led to fears that Moscow may be planning some sort of military action.
The Biden administration is also weighing sending military advisers and new equipment including weaponry to Ukraine as Russia builds up forces near the border.
A bunch of people in Washington firmly believe that bunker Putin and his brain-dead 70 years old siloviks cannot be reasonable anymore. Ukraine really matters for the aging Russian leader in terms of his historic legacy.
The sanctions come as reports of Russian troops massing near the border with Ukraine have led to fears that Moscow may be planning some sort of military action.
The Biden administration is also weighing sending military advisers and new equipment including weaponry to Ukraine as Russia builds up forces near the border.
A bunch of people in Washington firmly believe that bunker Putin and his brain-dead 70 years old siloviks cannot be reasonable anymore. Ukraine really matters for the aging Russian leader in terms of his historic legacy.
Armenia informed Russia that it is ready to settle relations with Turkey without preconditions. According to Armenia’s MFA, Russia will support this process.
Kremlin punished Pashinyan for not being pro-Russian, but was it worth it? This is a perfect showcase of Russia weakening its positions in the region.
Although, there is another factor of Armenian catastrophe – Azerbaijan corrupted a bunch of high-ranked Russian officials and siloviks including the top spy Sergei Naryshkin.
If Armenia has no preconditions for normalizing its relations with Turkey, then Erdogan certainly has. A month ago Turkish leader said that Armenia has to show a good will towards Azerbaijan.
Armenia is in danger, and Russia is seemingly not able to do anything about it.
Kremlin punished Pashinyan for not being pro-Russian, but was it worth it? This is a perfect showcase of Russia weakening its positions in the region.
Although, there is another factor of Armenian catastrophe – Azerbaijan corrupted a bunch of high-ranked Russian officials and siloviks including the top spy Sergei Naryshkin.
If Armenia has no preconditions for normalizing its relations with Turkey, then Erdogan certainly has. A month ago Turkish leader said that Armenia has to show a good will towards Azerbaijan.
Armenia is in danger, and Russia is seemingly not able to do anything about it.
Annual inflation rate in Russia according to Rosstat, November 22.
Beef – 14.61%;
Pork – 15.92%;
Poultry – 31.13;
Buckwheat – 21.02%;
Eggs – 26.98%;
Cabbage – 98.91%;
Potatoes – 72.68%;
Onion – 24%;
Tomatoes – 39.94%.
This catastrophic, dramatic inflation makes Russian poverty almost unbearable. Moreover, it looks like a long-term trend. The official inflation forecast of 7.4-7.9% is a joke, it has hit double digits long time ago.
Beef – 14.61%;
Pork – 15.92%;
Poultry – 31.13;
Buckwheat – 21.02%;
Eggs – 26.98%;
Cabbage – 98.91%;
Potatoes – 72.68%;
Onion – 24%;
Tomatoes – 39.94%.
This catastrophic, dramatic inflation makes Russian poverty almost unbearable. Moreover, it looks like a long-term trend. The official inflation forecast of 7.4-7.9% is a joke, it has hit double digits long time ago.
Vladimir Putin has sacked the head of Russia’s prison system Alexander Kalashnikov a month after a series of videos showing rape and torture inside a prison hospital in Saratov leaked online.
Kalashnikov is replaced with Deputy Interior Minister Arkady Gostev as head of Russia’s Federal Prison Service (FSIN).
It is surely a good sign, although criminal cases against sadists in FSIN are needed. Regular tortures are an integral part of Russian FSIN system. There is little hope that this system will change any time soon, but little steps are needed anyway.
Kalashnikov is replaced with Deputy Interior Minister Arkady Gostev as head of Russia’s Federal Prison Service (FSIN).
It is surely a good sign, although criminal cases against sadists in FSIN are needed. Regular tortures are an integral part of Russian FSIN system. There is little hope that this system will change any time soon, but little steps are needed anyway.
Russian Coronavirus Crisis
Kremlin keeps on going with its coronavirus failures and incompetence. First, it completely failed the vaccination by disorientating people with controversial messages.
This resulted in a record death toll this year. Still the government couldn’t convince people to get vaccinated, as most of Russians do not trust any official narrative.
Now Kremlin decided to introduce mandatory QR codes all over the country. This measure predictably met fierce resistance from the people.
One regional parliament in North Ossetia voted yesterday against Moscow’s bill establishing the use of QR codes in public places and in transport. In two hours after it, under an immense pressure from Moscow, Ossetian parliament voted again, and this time got it right.
Russian regions are supposed to be integral parts of federation, but yesterday’s scandal in Ossetia shows that they are nothing else but Moscow’s colonies. At least that’s how Kremlin sees the territory of the country.
Kremlin keeps on going with its coronavirus failures and incompetence. First, it completely failed the vaccination by disorientating people with controversial messages.
This resulted in a record death toll this year. Still the government couldn’t convince people to get vaccinated, as most of Russians do not trust any official narrative.
Now Kremlin decided to introduce mandatory QR codes all over the country. This measure predictably met fierce resistance from the people.
One regional parliament in North Ossetia voted yesterday against Moscow’s bill establishing the use of QR codes in public places and in transport. In two hours after it, under an immense pressure from Moscow, Ossetian parliament voted again, and this time got it right.
Russian regions are supposed to be integral parts of federation, but yesterday’s scandal in Ossetia shows that they are nothing else but Moscow’s colonies. At least that’s how Kremlin sees the territory of the country.
The new coalition government of Germany came up with an interesting idea regarding Russia. It plans to abolish visa regime with Russians under 25.
This measure, although it’s hard to imagine how Berlin talks Brussels into it, will have a devastating effect on Russia which is in a demographic turmoil.
There will be millions of youngsters eager to leave putinism with its total poverty and corruption. Germany will become a haven for the best and most active Russians who will do whatever it takes to stay in Europe.
They will be mostly replaced by Tajiks and Uzbeks, the process is on anyway. If Berlin does this, Kremlin won’t be able to do anything about it other than turning into Turkmenistan.
It is a brilliant thinking from Germans. Russians are talented, educated enough and eager to be assimilated (there is no Russian diaspora). Germans could suck the country dry.
This measure, although it’s hard to imagine how Berlin talks Brussels into it, will have a devastating effect on Russia which is in a demographic turmoil.
There will be millions of youngsters eager to leave putinism with its total poverty and corruption. Germany will become a haven for the best and most active Russians who will do whatever it takes to stay in Europe.
They will be mostly replaced by Tajiks and Uzbeks, the process is on anyway. If Berlin does this, Kremlin won’t be able to do anything about it other than turning into Turkmenistan.
It is a brilliant thinking from Germans. Russians are talented, educated enough and eager to be assimilated (there is no Russian diaspora). Germans could suck the country dry.
„According to the Constitution I have a right to be re-elected as a President. I don’t know whether I will do it or not, but the very right to do it stabilizes the situation in Russia. Just like Biden’s claim that he will run for the office again”.
Somebody should tell Putin, that he is nowhere near Biden. Unlike Putin, Biden hasn’t changed the Constitution in order to be President for life, hasn’t amended it for his personal goals and isn’t in office for 22 years.
Unlike Putin, Biden isn't afraid to leave the office.
Unlike Putin, Biden or any other President of the US hasn’t made a joke out of the Constitution and humiliated his own people. The only thing Putin really stabilizes is corruption and billions of his friends.
Somebody should tell Putin, that he is nowhere near Biden. Unlike Putin, Biden hasn’t changed the Constitution in order to be President for life, hasn’t amended it for his personal goals and isn’t in office for 22 years.
Unlike Putin, Biden isn't afraid to leave the office.
Unlike Putin, Biden or any other President of the US hasn’t made a joke out of the Constitution and humiliated his own people. The only thing Putin really stabilizes is corruption and billions of his friends.
Moscow court rebuffed billionaire Gennady Timchenko’s attempt to vouch for businessman Magomed Magomedov and get him out of prison. Despite Timchenko’s close relationship with President Putin, the court instantly turned him down.
Magomedov brothers face charges of large-scale embezzlement, fraud, and forming a criminal organization. Two Dagestani billionaires affiliated with Dmitry Medvedev were arrested in 2018 on a very high order.
FSB’s general Ivan Tkachev has been developing the case ever since which is seen in Russia as a sign of Igor Sechin’s involvement in the case. In other words, people interested in Magomedovs’ arrest are ranked higher than Timchenko.
The case is a remarkable example of how Putin’s regime sees and treats private business.
Any commercial activity in Russia can simply be discredited as an organized crime racket if Putin, Sechin, FSB generals and other top feudals want part of your business.
Magomedov brothers face charges of large-scale embezzlement, fraud, and forming a criminal organization. Two Dagestani billionaires affiliated with Dmitry Medvedev were arrested in 2018 on a very high order.
FSB’s general Ivan Tkachev has been developing the case ever since which is seen in Russia as a sign of Igor Sechin’s involvement in the case. In other words, people interested in Magomedovs’ arrest are ranked higher than Timchenko.
The case is a remarkable example of how Putin’s regime sees and treats private business.
Any commercial activity in Russia can simply be discredited as an organized crime racket if Putin, Sechin, FSB generals and other top feudals want part of your business.
All information about the people who tried to poison Alexei Navalny disappeared from Rosreestr - a federal agency in Russia, responsible for the organization of the Unified State Register of Rights on Real Estate and Transactions.
There is no more data on several members of the poisoning team – Alexandrov, Tayakin, Vasiliev, Makashkov and Kudryavtsev.
FSB is protecting its killers like they are some corrupted officials with billions of dollars abroad, although they failed and couldn’t finish the job of killing Navalny.
There is no more data on several members of the poisoning team – Alexandrov, Tayakin, Vasiliev, Makashkov and Kudryavtsev.
FSB is protecting its killers like they are some corrupted officials with billions of dollars abroad, although they failed and couldn’t finish the job of killing Navalny.
Vladimir Putin held yesterday a meeting after another mining disaster in Kemerovo region which killed 51 people. To tell you the truth, it was just pathetic.
Mining accidents are relatively frequent in Russia, as the old Soviet infrastructure is falling apart, the wages of miners are low and the profits go to European and American banks. Putin knows it very well, it’s the system he created – no regard for human life, just money.
For more than 20 year Putin has been saying the same words after every other disaster. And nothing ever changes.
In all seriousness, we could give the President a tip which will effectively solve the problem and reduce the number of industrial disasters in Russia. The core problem is that human life is historically cheap in Russia.
So, the owners of businesses should pay at least $1mln for every life lost. If someone is badly hurt in an accident, they should pay all medical costs and give $500'000 above.
Nothing else will work.
Mining accidents are relatively frequent in Russia, as the old Soviet infrastructure is falling apart, the wages of miners are low and the profits go to European and American banks. Putin knows it very well, it’s the system he created – no regard for human life, just money.
For more than 20 year Putin has been saying the same words after every other disaster. And nothing ever changes.
In all seriousness, we could give the President a tip which will effectively solve the problem and reduce the number of industrial disasters in Russia. The core problem is that human life is historically cheap in Russia.
So, the owners of businesses should pay at least $1mln for every life lost. If someone is badly hurt in an accident, they should pay all medical costs and give $500'000 above.
Nothing else will work.
Joe Biden told American journalists that he won’t accept any red lines or other terms from Vladimir Putin concerning situation in Ukraine. This is by no means any surprise for two reasons.
First, Putin isn’t in a position to set any terms in talks with the US. Second, nobody will give any guarantees to an actor which disrespects not only international law, but basic rules of decency.
Biden and Putin will hold a telephone call on Tuesday. U.S. intelligence officials, meanwhile, have determined that Russia has massed about 70,000 troops near its border with Ukraine.
Many analysts think that Putin is bluffing, but we are not so sure. Russian President sees Ukraine as a key factor of his historic role. Also, if Washington really chooses not to recognize the results of 2024 elections in Russia, it would be a disaster for Kremlin and turn Putin into Lukashenko.
So, Putin is desperately raising stakes the only way he can. Unfortunately, Russia has no other instruments other than military. Let’s see how Biden handles the situation, the game is on. And it's truly a no-win game for both Russia and Ukraine.
First, Putin isn’t in a position to set any terms in talks with the US. Second, nobody will give any guarantees to an actor which disrespects not only international law, but basic rules of decency.
Biden and Putin will hold a telephone call on Tuesday. U.S. intelligence officials, meanwhile, have determined that Russia has massed about 70,000 troops near its border with Ukraine.
Many analysts think that Putin is bluffing, but we are not so sure. Russian President sees Ukraine as a key factor of his historic role. Also, if Washington really chooses not to recognize the results of 2024 elections in Russia, it would be a disaster for Kremlin and turn Putin into Lukashenko.
So, Putin is desperately raising stakes the only way he can. Unfortunately, Russia has no other instruments other than military. Let’s see how Biden handles the situation, the game is on. And it's truly a no-win game for both Russia and Ukraine.
Russian Arms Sales Declining
According to new data released yesterday by the Stockholm International Peace Research Institute, sales of arms and military services by the industry’s 100 largest companies totaled $531 billion in 2020—an increase of 1.3% compared with the previous year.
Nevertheless, the combined arms sales of Russian companies ranked in the Top 100 decreased from $28.2 billion in 2019 to $26.4 billion in 2020—a 6.5% decline. This marks a continuation of the downward trend observed since 2017.
Some of the sharpest declines in the top100 are also recorded by Russian companies. Important numbers by countries:
USA - $285bln, +1.9%
China – $66.8bln, +1.5%
Europe – $109bln
Britain – $37.5bln, +6.2%
Germany – $8.9bln, +1.3%
Russia – $26.4bln, -6.5%.
According to Swedish analysts, the Russian decline coincided with the end of the State Armament Program 2011–20 and pandemic-related delays in delivery schedules.
Almaz-Antey and United Shipbuilding Corporation saw their arms sales fall by 31% and 11%, respectively.
According to new data released yesterday by the Stockholm International Peace Research Institute, sales of arms and military services by the industry’s 100 largest companies totaled $531 billion in 2020—an increase of 1.3% compared with the previous year.
Nevertheless, the combined arms sales of Russian companies ranked in the Top 100 decreased from $28.2 billion in 2019 to $26.4 billion in 2020—a 6.5% decline. This marks a continuation of the downward trend observed since 2017.
Some of the sharpest declines in the top100 are also recorded by Russian companies. Important numbers by countries:
USA - $285bln, +1.9%
China – $66.8bln, +1.5%
Europe – $109bln
Britain – $37.5bln, +6.2%
Germany – $8.9bln, +1.3%
Russia – $26.4bln, -6.5%.
According to Swedish analysts, the Russian decline coincided with the end of the State Armament Program 2011–20 and pandemic-related delays in delivery schedules.
Almaz-Antey and United Shipbuilding Corporation saw their arms sales fall by 31% and 11%, respectively.
Yesterday’s Biden-Putin talks in a nutshell:
Putin: Russia is interested in obtaining reliable, legally fixed guarantees excluding the expansion of NATO in the eastern direction.
Biden: Nobody is in a position to tell NATO what to do. The US do not give any guarantees regarding the possible membership of Ukraine.
Jake Sullivan: Things we did not do in 2014 we are prepared to do now.
Looks like the call hasn’t been that fruitful for Moscow and for Putin in terms of personal guarantees. It hasn’t changed much for Washington either. Kremlin will continue its military build-up on Ukranian border. White House sees it as a classic win-win situation.
Washington’s focus is Taiwan, but the grip on Ukraine is also strong.
Putin: Russia is interested in obtaining reliable, legally fixed guarantees excluding the expansion of NATO in the eastern direction.
Biden: Nobody is in a position to tell NATO what to do. The US do not give any guarantees regarding the possible membership of Ukraine.
Jake Sullivan: Things we did not do in 2014 we are prepared to do now.
Looks like the call hasn’t been that fruitful for Moscow and for Putin in terms of personal guarantees. It hasn’t changed much for Washington either. Kremlin will continue its military build-up on Ukranian border. White House sees it as a classic win-win situation.
Washington’s focus is Taiwan, but the grip on Ukraine is also strong.
Economy Minister Reshetnikov said yesterday that the inflation in Russia will exceed the planned 8% this year.
Reshetnikov knows very well that Russian inflation has in fact already hit double digits. We write a lot about Russian poverty, but it’s very striking every time.
More than 30% of Russians have to borrow money or take bank loans on a regular basis to meet their basic needs. Russian poverty is catastrophic mainly because the government isn’t actually interested in fighting it.
Kremlin will rather manipulate the statistics or invent new standards of poverty to assure Russians that everything is ok. It’s actually pathetic and ignorant, but that’s the way Russia is historically run.
Reshetnikov knows very well that Russian inflation has in fact already hit double digits. We write a lot about Russian poverty, but it’s very striking every time.
More than 30% of Russians have to borrow money or take bank loans on a regular basis to meet their basic needs. Russian poverty is catastrophic mainly because the government isn’t actually interested in fighting it.
Kremlin will rather manipulate the statistics or invent new standards of poverty to assure Russians that everything is ok. It’s actually pathetic and ignorant, but that’s the way Russia is historically run.
Kremlin won’t let state corporation Rusnano go bankrupt, although it is clearly on the verge of default and isn’t able to pay its debts due to mismanagement and corruption.
Chairman of state owned VEB Igor Shuvalov stated that the corporation is ready to help Rusnano on the order of Russian government.
This order will surely come, so hundreds of billions of Russian taxpayers’ money will disappear in the black hole of Russia’s state-owned corporations.
This is just ridiculous, infinite corruption. Where is Chubais, by the way?
Chairman of state owned VEB Igor Shuvalov stated that the corporation is ready to help Rusnano on the order of Russian government.
This order will surely come, so hundreds of billions of Russian taxpayers’ money will disappear in the black hole of Russia’s state-owned corporations.
This is just ridiculous, infinite corruption. Where is Chubais, by the way?
Director Alexander Sokurov’s speech at the meeting of the Council for the Development of Civil Society and Human Rights showed not only that prominent artists, directors etc are often not very smart people.
It also showed the scale of orientalism and anti-Caucasus sentiment among Russian intelligentsia.
Sokurov failed to find out that the most numerous ethnic group in Causasus are Russians, almost all the siloviks in the region are ethnic Russians, numerous ministers, heads of parliaments are also Russians etc, but let it be.
Nobody should expect of Russian intelligentsia a deep knowledge of Russia. We have another question.
If, as Sokurov and others want, secession of Caucasus happens, will ethnic Russians start to live any better? What will change? There will be no more corruption, poverty, injustice, people will live better, the country will be safer or what?
Russian regions with a few exceptions are equally stripped of their rights. The only way out of this black hole is a working model of federalism with freedom and justice for all.
By the way, we still challenge anyone to point out one thing Kadyrov does which is not done by Putin in a much greater scale.
It also showed the scale of orientalism and anti-Caucasus sentiment among Russian intelligentsia.
Sokurov failed to find out that the most numerous ethnic group in Causasus are Russians, almost all the siloviks in the region are ethnic Russians, numerous ministers, heads of parliaments are also Russians etc, but let it be.
Nobody should expect of Russian intelligentsia a deep knowledge of Russia. We have another question.
If, as Sokurov and others want, secession of Caucasus happens, will ethnic Russians start to live any better? What will change? There will be no more corruption, poverty, injustice, people will live better, the country will be safer or what?
Russian regions with a few exceptions are equally stripped of their rights. The only way out of this black hole is a working model of federalism with freedom and justice for all.
By the way, we still challenge anyone to point out one thing Kadyrov does which is not done by Putin in a much greater scale.
Fair enough, but Kadyrov does what Moscow does with "foreign agents" and other "American spies", using the same rhetorics.
We all know that if any Tatar or Yakut said what Sokurov had said, there would be a massive scandal with accusations of extremism, nationalism and separatism.
In Sokurov's case it's only "direct communication with the President", right.
We all know that if any Tatar or Yakut said what Sokurov had said, there would be a massive scandal with accusations of extremism, nationalism and separatism.
In Sokurov's case it's only "direct communication with the President", right.