Negligent clients a source of considerable revenue for the Russian banks

Business daily Vedomosti.ru quotes one of the banking industry analysts, stating that the Russian banks earned approximately 57.8 billion rubles (USD 1.92 billion) in penalty fees in 2012. While for some banks the growth of penalty fees corresponds to their asset growth, others record a disproportionate growth in respective revenues that can be explained by the…

Russia considers making market access for generic drugs more difficult

Yesterday’s business daily Vedomosti.ru reported that the Russian Ministry of Health considers amending the existing law on pharmaceuticals in a way that will make it much more difficult for generic drugs to access the market. The Ministry of Health defined the criteria for substitution of the original drugs with their generic counterparts, requiring the latter to have…

Industrial output shortfall disturbs Russia’s bright economic future

Today’s Novaya Gazeta reports on the recently published data by the Russian Statistical Bureau, indicating that the industrial output grew by a mere 2.6 percent in 2012, which is less than the Ministry of Economy’s humble projection of 3.2 percent. What is more interesting is that the Russian Central Bank, known for its resistance towards loosening of…

Does the Yukos case precedent jeopardize freedom of businesses to form prices?

Today’s business daily Vedomosti.ru comments on the dictum accompanying the Moscow municipal court’s December dismissal of the petition by Mikhail Khodorokovsky and Platon Lebedev to overturn the first-instance ruling on the second “Yukos” case. Mikhail Khodorkovsky (former Chairman of the Yukos oil company) and Platon Lebedev (former CEO of the Menatep Group, a holding company that had…

Distinction between online and offline retail in Russia becomes blurred

Today’s edition of business daily Vedomosti.ru reports that a great number of Russian online retailers started opening their delivery points and stores, thus embarking into the realm of offline retail. Mr. Maxim Faldin, the General Manager of a Russian online-hypermarket Wikimart, stated that the “materialization” of online stores in Russia has become such a frequent occurrence…

Economists say 2013 might be a year of the Bear for Russia

Today’s Vedomosti.ru quotes opinions of several economic experts on the prospects for the Russian economy in 2013. Most of the experts agree that the GDP growth will continue to slow down, accompanied by a relatively high inflation and a continued net capital outflow. According to their expectations, the current account surplus will decrease by another 30…

The return of the Central Bank

Today’s Vedomosti.ru report that the Russian Central Bank sold 5.2 billion rubles (USD 169.4 million) on January 9, the first day of trading in 2013. The intervention was caused by the sliding of the USD/RUB rate to below 30.5. This is the first intervention by the Central Bank since November 19, 2012 and the first…

Morgan Stanley expects Russian online retail volume to triple by 2015

Today’s Kommersant.ru refers to a report developed by an investment bank Morgan Stanley, forecasting a tripling of the Russian online retail volumes between 2012 and 2015 – from USD 12 billion to USD 36 billion. According to Morgan Stanley, this year will represent a turning point for the business. The forecast is based on an observation…

Russia’s inflation firmly anchored in a single-digit range

Kommersant.ru reports that the inflation in 2012 was one of the lowest in Russia’s history. According to the preliminary data published by the Russian Statistics Bureau, consumer prices increased by 6.6 percent in 2012. The Government planned to keep the inflation at the all-time low of 6 percent (already registered in 2011), but the plan was…