September 16, 2009
Russia’s top automaker shifts workers to toy making
The world economic melt down has been particularly hard on Lada, Russia’s largest car maker. With projected job losses as high as 36,000 the company is looking to diversification to survive.
Given the fact that, out of the 700,000 people who live in Togliatti, 100,000 are employed by the company, the consequences of such a dramatic job cut could have a devastating effect on the entire region.
The Ministry of Industry and Trade has come up with novel ways of trying to keep people in their jobs. They include: producing electric cars, bicycles and children’s toys – something very different from producing automobiles.
The representatives from the workforce have said that they see these latest plans as a direct insult to their car-making skills and were reportedly planning strikes against the possible job losses and these new suggestions in the next few days.
“This is humiliating,” said Pyotr Zolotaryov of the independent interregional trade union for the automobile industry. In his opinion, this is the way for Russia to lose more of its qualified specialists, Interfax reports.c (Russia Today)
September 14, 2009
Missiles for a mad man. Russia arms Venezuela
There can be any number of reasons to arm a deranged dictator. In this case, new income and employment for a devastated arms industry is politically expedient for Putin and Medvedev. Since Venezuela is on the other side of the world, there’s not much to be concerned about in Moscow.
The missiles have a range of 300 kilometers. The weapons are a part of a series of arms deals with Moscow. Mr. Chavez made the announcement on Friday after returning from a ten-day tour of Africa, Asia and Europe and he insists the weapons are for defense only.
Mr. Chavez says the rockets will arrive in Venezuela soon and he says his country is not going to attack anybody with them. He says the weapons will help defend his country from any threat no matter where it comes from. Venezuela is currently involved in a dispute with neighboring Colombia over that country’s agreement with the U.S. to allow American troops access to seven Colombia bases for anti-drug operations.
Moscow says it is willing to sell Venezuela whatever weapons it is willing to buy. Venezuela is currently negotiating the purchase of 100 T-72 and T-90 tanks from Russia. (VOA)
Filed under Business, Commentary, Politics by admin
September 9, 2009
OPEC production cuts yield big benefits for Russia
OPEC’s strict limits on production along with the seldom mentioned futures market manipulation have successfully elevated the price of oil. Russia has been a strong supporter of OPEC’s efforts. That support has not included production cuts in Russia, whose market share has grown along with the prices.
According to the Russian Ministry of Energy, in the second quarter of 2009 Russia exported 7.4 million barrels of oil and oil products a day. It was expected that Russia would cut oil supplies after Russian officials vowed to support oil prices in December of 2008. Instead, the Russian oil companies got tax reduction, moreover, the leaders of the segment – Rosneft, Lukoil, TNK-BP - raised oil production by virtue of oil prices, which soared by 54%. (Russia IC)
September 2, 2009
Ikea threatens a pullback from the Russian retail market
Sales have been very good for the 10 years Ikea has been doing business in Russia. The company’s inexpensive furnishings designed for samll spaces are a perfect fit for the average flat dwelling Russian. With the success at retail, the compny has experienced horrendous problems with Russian bureaucracy and corruption that amounts ot a never ending shake down. Recently the company announced it would halt expansion in Russia if the complecxity of doing business in Russia cannot be simplified.
…..the Swedish retail giant has faced numerous obstacles to its growth from regional authorities and regulators, most recently in Samara. The company’s experience has served as a cautionary tale to others thinking of investing in Russia, although IKEA said it was heartened by improvements in recent years.
“We’re currently building a mall in Ufa, and we’re preparing for the construction of a shopping center in Mytishchi,” Kaufmann said. “We have design projects for outlets in Saratov and Voronezh ready.”
In June, Kaufmann said IKEA would halt all future investments in Russia after it was not allowed to open the Samara mall almost two years after it was finished because of bureaucratic barriers posed by local officials. (Johnsons Russia List)
August 25, 2009
Formerly vacant Russian farmland produces big yields
Unlikely as it may seem, two Brits are producing bumper crops of wheat on abandoned Southern Russian farmland. The soil and climate are very good and mechanized farming does the rest. (Click for Video)
In 2002 Richard Willows, a former commodities trader, and Colin Hinchley, a farmer in his own right, came to Russia and bought up land in the Penza region that no-one was farming.
They set up Heartlands Farm and began to apply modern farming techniques with hi-tech equipment.
The results have been astounding - a serious eye opener not just for them, but for the local authorities as well.
Colin Hinchley took us around his 67,000-acre farm and, as we walked through a one of his fields of rippling green wheat, he explained how they did it. (BBC)
Filed under Business, News, Technology by admin
August 24, 2009
Russian clothing retailers stung by recession
Russians tend to be very fashion conscious. Years of Soviet imposed sameness in much of their lives left few other forms of individual self expression. Recent new found wealth created a short boon for clothing designers and retailers doing business in Russia as the population’s disposable incomes grew. Now the effects of the global financial crash are showing up in retailers windows on the form of big discounts and closures.
By July, most retailers had resorted to 70 per cent off in some sales.
Despite rising unemployment, some data suggest that not everybody has lost the shopping habit. According to a survey by TGI-Russia, 47 per cent of Russians say their shopping habits haven’t changed at all, while 31 per cent say they have stopped buying shoes and clothes and 7 per cent say they have downshifted to cheaper brands.
The council made a very pessimistic forecast that one-third of Russia’s 42,000 clothing retailers would close by year’s end. Most noticeably, several foreign brands have shut up shop in Moscow. Elite shoes brand Manolo Blahnik quietly closed down its expensive boutique on Malaya Bronnaya. British designer labels, a relatively new addition to the Russian fashion scene, seem to have been hit hard - Stella McCartney, Alexander McQueen and Vivienne Westwood have also departed.
In May, Kommersant reported that Russian Sport Fashion Group would close 13 of its Reebok stores, and the local franchisee for Hong Kong sportswear maker Sprandi International closed 37 outlets in Moscow and St. Petersburg after going bankrupt.
Most retailers have at least suspended expansion, and some are contracting, closing down less profitable stores in unpopular locations. (Moscow News)
August 12, 2009
Moscow discovers drive in movies
A fading piece of Americana has found new popularity in Moscow. As automobile ownership continues to climb in Russia, the opening of a drive in is a logical extension. While the drive in movie in America is at best a novelty today, it may find new life in Russia.
At first glance, a drive-in theater is no different from an ordinary movie theater: same large white screen, film projector, sound system, rows of seats and a concession stand. The difference is that at a drive-in, the seat and sound system are located in your car, and the sky is your ceiling. Yes, it is just that simple: you drive into an area more suitable for a modest airport than a cinema, tune in your stereo to the appointed AM or FM frequency, recline in your chair as far back as you like, and enjoy the magic of the movies. And the fact that the shows start after dark gives the whole experience an even more attractive feel.
Technically, Moscow was first introduced to a drive-in theater back in 2003, when the Formula Kino multiplex chain launched an open-air movie theater just outside of the city. Unfortunately, not much thought was put into the project: there was no snack bar or other services, the choice of films was far from creative, and the location was not chosen wisely. Even though this theater still exists today, it is barely visited, and many people have already forgotten that drive-in theater ever entered Moscow.
The reinvention of the drive-in took place earlier this month with the opening of Kinoparking - a drive-in theater located not far from the city center and offering the same amount of functions that an ordinary drive-in is supposed to carry. (Moscow News)
