Soaring oil prices have helped make Russia rich, but the flood of petrodollars means Russians face double digit price inflation. Dmitry Pankin, Russia’s deputy finance minister, sees a trade off in a recent market selloff: Russian companies might have trouble raising capital, but billions of dollars in capital outflows may be just the thing to help cool inflation.
Russia’s Finance Ministry and central bank have been put on the defensive for investing the national reserves in U.S. mortgage agency debt. Deputy Finance Minister Dmitry Pankin tells the Reuters Russia Investment Summit that Fannie Mae and Freddie Mac were propping up Russia’s finances, not the other way around.
The chief executive of Russian developer PIK Group sees one guarantee of his future success in an emergency decision made by the Soviet government of Nikita Khrushchev in the 1950s. Back then, tens of thousands of cramped communal flats were unpacked and whole families residing in single rooms were resettled into their own bright and new flats in hastily constructed five story kit buildings which came to be known as khrushchevki.
President Dmitry Medvedev is the former chairman of Russia’s state gas export monopoly Gazprom, and the company is viewed as a powerful instrument of the Kremlin’s foreign and domestic policy, but the company’s deputy chief, executive, Alexander Medvedev, says it is not so.
A quarter of the gas that heats European homes and powers European industry is piped in thousands of kilometres from the Russian tundra. By 2015, Russia’s share of European gas supplies will rise to at least one third. That powerful lever of influence over Europe’s economy raises the stakes in its confrontation with Russia over its invasion of Georgia.
Boris Jordan, president and CEO of $2 billion investment fund the Sputnik Group, said political interference in business remains a serious concern in Russia.
Rosneft, Russia’s largest oil company, is considering a return to the Eurobond market after postponing an offering in July due to market volatility, Chief Financial Officer Peter O’Brien told the Reuters Russia Investment Summit.