Russian funds have decreased by 9.5 billion dollars. The money was used to support Russian companies. Athens is still flirting with Moscow. This week, Greek prime minister Tsipras is visiting the Kremlin. The agenda includes partially lifting the boycott, and a lower gas price. Poland is building guard posts along the border with Russia, to keep an eye on military activity in Russia. Vietnam is in talks with the EEU about a free trade agreement, with Russian prime minister Medvedev pointing to the advantages of trade in national currencies.
Russian funds decreasing
In March, Russian oil fund decreased by a total amount of 9.5 billion dollars. State enterprises are lining up for support from these funds, accumulated from oil revenue over the past years. The Reserve Fund decreased by 5 billion dollars to 75 billion dollars. The National Welfare Fund decreased by 4.1 billion dollars to 74 billion dollars. Among others, the railway company, an energy company and a state bank received funds for modernisation of the railway network, construction of a power plant and the construction of the Ring around Moscow respectively.
Athens flirts with Moscow
This weekend, Greek prime minister Tsipras emphasized that the country is able to pay back the 450 million euros it owes to the IMF this week. The Greek government also presented a list of reforms with which Greece believes it can meet with EU demands. The Euro group is studying the proposal, and if the reforms are sufficient, Greece will receive a new loan.
Meanwhile, Tsipras isn't putting all his eggs in one basket. This week he's visiting the Kremlin, and he also shows interest in China. The goal during the visit to Moscow is the partial lifting of the Russian boycott, and lowering the gas price for Greece. Unconfirmed reports are coming in from Moscow about Russia lowering the gas price. It remains to be seen what deal Tsipras and Putin can make though. The financial possibilities are limited for Russia because of the weak economy, and Greece is bound by European agreements. When Cyprus went to Russia in 2013 to get a loan, the ministers returned empty-handed. Partially lifting the ban is a possibility though. Perhaps the visit to Moscow mainly has political significance.
Poland builds guard towers along border
While the tension with Russia doesn't lead to direct fears of war in Western Europe, the situation is different in Eastern Europe, where countries like Poland and the Baltic States are worried. Poland announced the construction of six watchtowers along the 200 kilometre border with Russia and Kaliningrad. The towers should be ready for use in June. The project cost 3.7 million euros, 75% of which is funded by the EU. Lithuanian president Dalia Grybauskaitė previously warned against the Iskander rockets Russia was stationing in Kaliningrad. These rockets can be fitted with a nuclear load, and are capable of reaching Berlin.
Vietnam negotiates free trade agreement EEU
Vietnam is in talks with the Eurasian Economic Union about a free trade agreement. The treaty should be ready to be signed in June. Russian prime minister Medvedev reports considering non-standard way of cooperation, including trade in national currencies. The prime minister called to mind previous, similar agreements with countries in Southeast Asia, and pointed to the Vietnam-Russia bank that was established ten years ago.
Central Asia exporting less
Kazakhstan, Uzbekistan and Kyrgyzstan exported less fruit and veg to Russia in the first months of this year than in the same period last year. For Kazakhstan, the export decreased by 35%. The main cause for the decline is the value of the rouble, and the accompanying expected lower demand in Russia. Other countries, like Turkey and China, are also said to export less to Russia.
Russia establishes 'green corridor'
In order to facilitate export from Egypt, Jordan and Turkey, Russia wants to establish a 'green corridor' between these countries and Russia. To that end, these countries were visited, and Russia is in talks with Azerbaijan customs. Iran also wants to increase its export to Russia via a route through the Caspian region. Since the boycott, relations between Russia and Iran have improved.
Not all Russians in trouble
Although many Russians seem to be suffering from the economic situation in the country, others are profiting from the malaise. One of them is Jonas Nordlander, who set up an online marketplace. Many Russians are offering all sorts of articles online. The number of products on offer has gone up by 43% since the crisis began. Jewellers are also doing good business, since Russians prefer precious metals over the rouble.
Russian demonstration against GM products
Last year, the Russian government passed a law to prohibit cultivation of genetically modified crops. The law doesn't mention selling these crops though, reason for a group of demonstrators to take to the streets. The demonstrators are angry because importing GM products is still allowed.