Baltic Rim Economies

Total Page:16

File Type:pdf, Size:1020Kb

Baltic Rim Economies Baltic Rim Economies Estonia - Latvia - Lithuania - Poland - Baltic Russia Bimonthly Review ISSUE NO. 5, 31 OCTOBER 2008 ECONOMIC REVIEWS: ESTONIA Page 1 LATVIA Page 2 LITHUANIA Page 3 POLAND Page 4 ST. PETERSBURG Page 5 LENINGRAD REGION Page 6 KALININGRAD REGION Page 7 EXPERT ARTICLES: José Manuel Durão Barroso: EU Strategy for the Baltic Sea Region Page 8 Paula Lehtomäki : Cleaner, safer and brighter future of the Baltic Sea Page 9 Jaak Aaviksoo: Events in Georgia provoke discussions on security in good, old, peaceful Europe Page 10 Siiri Oviir: Gas pipeline to the Baltic Sea – should it come in a civilized way or under the dictate of the big and the powerful? Page 12 Artis Pabriks: Baltic security reflections in the aftermath of the Russian-Georgian conflict Page 13 Efthimios E. Mitropoulos: Busy Baltic to benefit from global pollution measures Page 14 Jari Luoto: EU focuses on the Baltic Sea Page 15 André Mernier: A role for the Energy Charter in a new Russia-EU Partnership Agreement Page 16 Timo Rajala: Finland is facing major energy decisions Page 18 Karlis Mikelsons: Environmentally friendly for sustainable growth Page 19 Reinier Zwitserloot: Nord Stream – making more European energy solidarity possible Page 20 Viktoras Valentukevicius: Current and future activities of Lietuvos Dujos AB Page 21 Seppo Remes: Russian gas can unite Europe – if we allow it Page 22 Aleksandra Mierzyńska and Krzysztof Parkoła: PGNiG – trying to be one step further Page 24 Tapio Reponen: Profiling as a key success factor in modern university strategies Page 25 EXPERT ARTICLES CONTINUED ON NEXT PAGE To receive a free copy, print or register at www.tse.fi/pei Baltic Rim Economies ISSUE NO. 5, 31 OCTOBER 2008 EXPERT ARTICLES CONTINUED: Markus Ederer: Germany and the Baltic Sea Region – challenges and opportunities for cooperation on energy security Page 26 Jyrki Terva: Russia’s ability to use its energy might Page 27 Tomasz Zadroga: Activities of the Polish Energy Group Page 28 Yury S. Kadzhoyan: D-6 development – dialogue with the local communities and the government Page 29 Janek Parkman: Estonian oil shale sector undergoing changes Page 30 Christian Lund: Energizing opportunities Page 31 Erkki Kotiranta: The Russian Arctic is turning into an important energy supply route to Europe alongside the Baltic Sea Page 32 Jyrki Vähätalo: Safe and reliable global maritime transport of dangerous chemical cargo via the Baltic Sea Page 33 Peter F. Johnston: Al Qaeda’s threat to oil and gas assets in the Baltic Region Page 34 Arild Moe and Lars Rowe: Russian shipbuilding – is a rapid turnaround possible? Page 35 Urpo Kivikari: Institute’s turning points and highlights Page 36 Simon-Erik Ollus: The global financial turbulence and Russia Page 37 Rainer Nõlvak: From Russia, with gas Page 38 Kari Liuhto: EU's growing energy import dependency a major risk Page 39 To receive a free copy, print or register at www.tse.fi/pei Baltic Rim Economies, 31.10.2008 Bimonthly Review 5ƒ2008 Estonia Economy in serious problems Inflation soars – still over 10% annually According to a preliminary estimate by Statistics Estonia, The increase in the consumer price index was 10.5% in GDP decreased by 1.1% in the second quarter of 2008 September y-o-y according to Statistics Estonia. The compared to the second quarter of 2007. This was one of the annual index was mainly influenced by the price increases worst figures in several years, as the decline of the Estonian of food which accounted for a fourth, the price increases of economy steepens. Small domestic demand and the alcohol and tobacco products and by the increased rates of decrease in exports of goods and services were the main excise duties, which accounted for a fifth of the price rise. factors in the decrease of the GDP. During the same Motor fuels, heat energy, heating fuel and electricity comparison time, domestic demand decreased by 2.8% grouped together gave a fourth of the total price change. mainly because of the decrease in private consumption and The increase in the index from August to September was capital investments. Major factors influencing the decrease in 0.6%. This was mainly influenced, among other things, by private consumption were the decrease in expenditures on price increases in tobacco products proceeding from the transport and clothing and footwear. Capital investments in change in the excise duty rates and the seasonal price the financial and household sector faced a decrease. increase in clothing and footwear. The prices for vegetables However, investments by manufacturing were approximately and motor fuel, however, decreased. on the same level. According to the Bank of Estonia, the consumer price The Estonian economy is gathering mainly cloudy index will increase by approximately 11.0% this year. assessments from official sources. According to the IMF Inflation will remain high mainly due to the globally rising World Economic Outlook, Central and Eastern European prices of food and energy. However, the Central Bank economies are facing a significant slowdown. Like all the forecasts that the inflation rate will drop to 4.8% in 2009 Baltic countries, Estonia will face some of the steepest and close to the Maastricht inflation criteria by the end of challenges due to a wide current-account deficit, excessive 2010. government spending and a high inflation rate. News from private actors is also negative. Firstly, Fitch Change of the consumer price index in selected Ratings has downgraded the long-term foreign and local currency issuer default ratings and the country ceiling for commodity groups in September 2008 (%) Estonia. The country ceiling was downgraded from ´AA´ to Commodity group y-o-y Previous ´AA-´. Secondly, Swedbank is planning its operations in month Estonia based on the assumption than GDP will not grow in Food and non-alcoholic beverages 13.9 -0.3 2008 or 2009. And Hansabank representatives have stated Clothing and footwear 3.7 2.9 that the current high inflation level is a key obstacle for Housing 11.9 0.0 Estonia’s goal of Euro adoption in 2011. The Bank of Estonia sees some key issues in the Transport 12.1 -1.3 recovery of the economy. First, the question is if Estonian Hotels, cafés and restaurants 13.0 1.0 companies can maintain their competitiveness. Second, will TOTAL 10.5 0.6 the labour market be flexible enough in its reaction. The Source: Statistics Estonia worldwide financial crisis has also hit Estonia and one key question is if the economy can manage while the trust in Some business highlights financial markets returns. Mobile operator Elisa is planning an investment into the development of a 3.5G mobile internet network. The investment is estimated to be worth tens of million Industrial production decreases by 3% euros and the time span for the investment is estimated to be three years. The data of Statistics Estonia shows that industrial production The Estonian confectionery producer AS Kalev has reported a profit of EUR 12 decreased by 3% in August compared to August of the million. The profit originates, for the most part, from a successful compensation previous year. Manufacturing fell by 2% which was mainly claim from another company. caused by the decrease in orders, both in the domestic The remaining 50% of Gild Real Estate, the real estate investment funds market and abroad. The decrease in manufacturing was managing company, have been bought by GILD Bankers. The company already owned 50% and has now purchased the remaining share from Uus Maa. mainly affected by a decrease in the production of food, wood Estonia’s once booming call centre business has stagnated lately. For instance, and construction materials. The most significant fall, 26%, hotel chain Hilton closed its 120-person operation in Tallinn a year ago. Experts was recorded in the production of building materials which say that Estonian wages have grown so that call centres are not as profitable as reflects the decrease in construction volumes. However, like they used to be earlier in the decade. in the previous months, some export-oriented industry The World Bank report entitled “Doing Business 2009” ranks Estonia as 22nd out branches still enjoyed growth. The production of electrical of 181 countries in the ranking of the easiest countries to invest in. Last year machinery (25%), metal products (16%) and chemicals (5%) Estonia ranked slightly better in 18th position. It takes approximately seven days grew when compared to August of the previous year. to establish a company in Estonia. Estonia - main economic indicators 2000 2001 2002 2003 2004 2005 2006 2007 2008 as of GDP (y-o-y %-growth, constant prices) 7.9 6.5 8.0 7.2 8.3 10.2 11.2 7.1 -1.1 Q2/2008 Industrial production (y-o-y %-growth) 14.6 8.9 8.2 11.0 10.5 11.0 7.3 6.1 -3.0 8/2008 Inflation (CPI, end of period, y-o-y %-change) 5.0 4.2 3.6 1.3 3.0 4.1 4.4 9.6 10.5 9/2008 General government budget balance (% of GDP) -0.6 0.3 1.5 2.0 2.3 2.3 3.8 2.8 n/a 1-12/2007 Gross wage (period average, EUR) 314 352 393 430 466 555 596 784 840 Q2/2008 Unemployment (% end of period) 13.9 11.9 11.3 9.3 8.5 7.9 5.9 4.7 4.0 Q2/2008 Exports (EUR million, current prices) 3445 3698 3642 4003 4770 6190 7647 8028 5605 1-8/2008 Imports (EUR million, current prices) 4615 4798 5079 5715 6704 8213 10576 11278 7345 1-8/2008 FDI inflow (EUR million, current prices) 425 603 307 822 775 2255 1341 1817 783 H1/2008 Current account (% of GDP) -5.5 -5.6 -10.6 -11.6 -12.5 -10.5 -14.8 -17.4 -10.0 Q2/2008 Sources: Statistics Estonia, Bank of Estonia, Eurostat, author's calculations 1 Pan-European Institute To receive a free copy please register at www.tse.fi/pei Baltic Rim Economies, 31.10.2008 Bimonthly Review 5ƒ2008 Latvia Economy stagnates The Bank of Latvia projects that the second half of the year The second quarter GDP growth was only 0.1 % according to will see a decreasing inflation rate which will gradually the Central Statistical Bureau of Latvia.
Recommended publications
  • Russia's Policy on Strengthening the Navy and the Defense Industry*
    Russia’s Policy on Strengthening the Navy and the Defense Industry* Yoshiaki Sakaguchi** Abstract The Russian government has begun rebuilding the Russian Navy as a part of the military reforms since October 2008. The Russian leadership has set out a clear policy on strengthening the Navy. Furthermore, the “State Weapons Program for 2011-2020,” unveiled at the end of 2010, presents that 23.4% of the total budget will be allocated to the procurement and development of vessels. This program and the budgetary measures for its realization have contributed to the gradual progress in the construction of new naval vessels since 2011. Nevertheless, the problems confronting the Russian defense industry remain unresolved, putting into question the ability of the defense industry to meet the high procurement targets identified in the State Weapons Program. Introduction A large-scale military reform has been under way in Russia since October 2008, with the focus of reform now shifting to modernization of obsolete armament following the near-completion of organizational and structural reform. The replacement and modernization of armament have been undertaken on the basis of the “State Weapons Program for 2011-2020” (hereinafter referred to as the “current State Weapons Program”), formulated in late 2010. The reform to equip the armed forces with a high degree of mobility and professionalism as well as the latest equipment is gradually beginning to take shape. Under these circumstances, the Navy is emerging out of the battered state that ensued after the collapse of the Soviet Union. The building of new naval vessels that had been stagnant for some time and their introduction into the Navy can be seen again.
    [Show full text]
  • OOB of the Russian Fleet (Kommersant, 2008)
    The Entire Russian Fleet - Kommersant Moscow 21/03/08 09:18 $1 = 23.6781 RUR Moscow 28º F / -2º C €1 = 36.8739 RUR St.Petersburg 25º F / -4º C Search the Archives: >> Today is Mar. 21, 2008 11:14 AM (GMT +0300) Moscow Forum | Archive | Photo | Advertising | Subscribe | Search | PDA | RUS Politics Mar. 20, 2008 E-mail | Home The Entire Russian Fleet February 23rd is traditionally celebrated as the Soviet Army Day (now called the Homeland Defender’s Day), and few people remember that it is also the Day of Russia’s Navy. To compensate for this apparent injustice, Kommersant Vlast analytical weekly has compiled The Entire Russian Fleet directory. It is especially topical since even Russia’s Commander-in-Chief compared himself to a slave on the galleys a week ago. The directory lists all 238 battle ships and submarines of Russia’s Naval Fleet, with their board numbers, year of entering service, name and rank of their commanders. It also contains the data telling to which unit a ship or a submarine belongs. For first-class ships, there are schemes and tactic-technical characteristics. So detailed data on all Russian Navy vessels, from missile cruisers to base type trawlers, is for the first time compiled in one directory, making it unique in the range and amount of information it covers. The Entire Russian Fleet carries on the series of publications devoted to Russia’s armed forces. Vlast has already published similar directories about the Russian Army (#17-18 in 2002, #18 in 2003, and #7 in 2005) and Russia’s military bases (#19 in 2007).
    [Show full text]
  • Naval Postgraduate School Thesis
    NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA THESIS A STUDY OF THE RUSSIAN ACQUISITION OF THE FRENCH MISTRAL AMPHIBIOUS ASSAULT WARSHIPS by Patrick Thomas Baker June 2011 Thesis Advisor: Mikhail Tsypkin Second Reader: Douglas Porch Approved for public release; distribution is unlimited THIS PAGE INTENTIONALLY LEFT BLANK REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED June 2011 Master‘s Thesis 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS A Study of the Russian Acquisition of the French Mistral Amphibious Assault Warships 6. AUTHOR(S) Patrick Thomas Baker 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Naval Postgraduate School REPORT NUMBER Monterey, CA 93943-5000 9. SPONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING N/A AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S.
    [Show full text]
  • Moscow Defense Brief Your Professional Guide Inside # 2, 2011
    Moscow Defense Brief Your Professional Guide Inside # 2, 2011 Troubled Waters CONTENTS Defense Industries #2 (24), 2011 Medium-term Prospects for MiG Corporation PUBLISHER After Interim MMRCA Competition Results 2 Centre for Russian Helicopter Industry: Up and Away 4 Analysis of Strategies and Technologies Arms Trade CAST Director & Publisher Exports of Russian Fighter Jets in 1999-2010 8 Ruslan Pukhov Editor-in-Chief Mikhail Barabanov International Relations Advisory Editors Georgian Lesson for Libya 13 Konstantin Makienko Alexey Pokolyavin Researchers Global Security Ruslan Aliev Polina Temerina Missile Defense: Old Problem, No New Solution 15 Dmitry Vasiliev Editorial Office Armed Forces 3 Tverskaya-Yamskaya, 24, office 5, Moscow, Russia 125047 Reform of the Russian Navy in 2008-2011 18 phone: +7 499 251 9069 fax: +7 495 775 0418 http://www.mdb.cast.ru/ Facts & Figures To subscribe, contact Incidents Involving Russian Submarines in 1992-2010 23 phone: +7 499 251 9069 or e-mail: [email protected] 28 Moscow Defense Brief is published by the Centre for Analysis of Strategies Our Authors and Technologies All rights reserved. No part of this publication may be reproduced in any form or by any means, electronic, mechanical or photocopying, recording or otherwise, without reference to Moscow Defense Brief. Please note that, while the Publisher has taken all reasonable care in the compilation of this publication, the Publisher cannot accept responsibility for any errors or omissions in this publication or for any loss arising therefrom. Authors’ opinions do not necessary reflect those of the Publisher or Editor Translated by: Ivan Khokhotva Computer design & pre-press: B2B design bureau Zebra www.zebra-group.ru Cover Photo: K-433 Svyatoy Georgiy Pobedonosets (Project 667BDR) nuclear-powered ballistic missile submarine at the Russian Pacific Fleet base in Vilyuchinsk, February 25, 2011.
    [Show full text]
  • US Sanctions on Russia
    U.S. Sanctions on Russia Updated January 17, 2020 Congressional Research Service https://crsreports.congress.gov R45415 SUMMARY R45415 U.S. Sanctions on Russia January 17, 2020 Sanctions are a central element of U.S. policy to counter and deter malign Russian behavior. The United States has imposed sanctions on Russia mainly in response to Russia’s 2014 invasion of Cory Welt, Coordinator Ukraine, to reverse and deter further Russian aggression in Ukraine, and to deter Russian Specialist in European aggression against other countries. The United States also has imposed sanctions on Russia in Affairs response to (and to deter) election interference and other malicious cyber-enabled activities, human rights abuses, the use of a chemical weapon, weapons proliferation, illicit trade with North Korea, and support to Syria and Venezuela. Most Members of Congress support a robust Kristin Archick Specialist in European use of sanctions amid concerns about Russia’s international behavior and geostrategic intentions. Affairs Sanctions related to Russia’s invasion of Ukraine are based mainly on four executive orders (EOs) that President Obama issued in 2014. That year, Congress also passed and President Rebecca M. Nelson Obama signed into law two acts establishing sanctions in response to Russia’s invasion of Specialist in International Ukraine: the Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Trade and Finance Ukraine Act of 2014 (SSIDES; P.L. 113-95/H.R. 4152) and the Ukraine Freedom Support Act of 2014 (UFSA; P.L. 113-272/H.R. 5859). Dianne E. Rennack Specialist in Foreign Policy In 2017, Congress passed and President Trump signed into law the Countering Russian Influence Legislation in Europe and Eurasia Act of 2017 (CRIEEA; P.L.
    [Show full text]
  • The Russian Transition Challenges for German and American Foreign Policy
    THE RUSSIAN TRANSITION CHALLENGES FOR GERMAN AND AMERICAN FOREIGN POLICY Washington, DC Conference Report Conference Report 9-10 June 1999 American Institute for Contemporary German Studies The Johns Hopkins University Conference Report THE RUSSIAN TRANSITION CHALLENGES FOR GERMAN AND AMERICAN FOREIGN POLICY Washington, D.C. 9-10 June 1999 American Institute for Contemporary German Studies The Johns Hopkins University The American Institute for Contemporary German Studies (AICGS) is a center for advanced research, study, and discussion on the politics, culture, and society of the Federal Republic of Germany. Established in 1983 and affiliated with The Johns Hopkins University but governed by its own Board of Trustees, AICGS is a privately incorporated institute dedicated to independent, critical, and comprehensive analysis and assessment of current German issues. Its goals are to help develop a new generation of American scholars with a thorough understanding of contemporary Germany, deepen American knowledge and understanding of current German developments, contribute to American policy analysis of problems relating to Germany, and promote interdisciplinary and comparative research on Germany. Executive Director: Jackson Janes Research Director: Carl Lankowski Development Director: Laura Rheintgen Board of Trustees, Cochair: Steven Muller Board of Trustees, Cochair: Harry J. Gray The views expressed in this publication are those of the author(s) alone. They do not necessarily reflect the views of the American Institute for Contemporary German Studies. ©1999 by the American Institute for Contemporary German Studies ISBN 0-941441-45-8 This AICGS Conference Report paper is made possible through grants from the German Program for Transatlantic Relations. Additional copies are available at $5.00 each to cover postage and processing from the American Institute for Contemporary German Studies, Suite 420, 1400 16th Street, NW, Washington, D.C.
    [Show full text]
  • BOFIT Weekly Yearbook 2010
    BOFIT BOFIT Weekly Yearbook 2010 Bank of Finland, BOFIT Institute for Economies in Transition BOFIT Weekly Editor-in-Chief Seija Lainela Bank of Finland BOFIT – Institute for Economies in Transition PO Box 160 FIN-00101 Helsinki Phone: +358 10 831 2268 Fax: +358 10 831 2294 Email: [email protected] Website: www.bof.fi/bofit The opinions expressed in this paper are those of the authors and do not necessarily reflect the views of the Bank of Finland. BOFIT Weekly – Russia 2010 8.1.2010 BOFIT Weekly 1/2010 CBR lowers interest rates again, inflation rate slowing. Pensioners saw real increases even as wage growth stagnated in 2009. 15.1.2010 BOFIT Weekly 2/2010 Economy ministry says Russian GDP contracted 8.5 % last year. Economy ministry issues more upbeat 2010 forecast. 2009 federal budget deficit smaller than expected; 2010 budget outlook brightens. Moscow stock exchanges posted strong recovery last year. 22.1.2010 BOFIT Weekly 3/2010 Russia continued to manage trade and current account surpluses in 2009. Capital exports from Russia fell in 2009; capital inflows turned positive in the fourth quarter. Russia’s foreign indebtedness declined slightly in 2009. Plans to develop Russia’s Far East. 29.1.2010 BOFIT Weekly 4/2010 Reforms in the Russia’s banking sector. Birth pangs for new Russia-Belarus-Kazakhstan customs union. Russia and Belarus agree on oil supplies. 5.2.2010 BOFIT Weekly 5/2010 Especially fixed capital investment posts sharp drop last year. Grey economy slightly increases its contribution to GDP during the downturn. 12.2.2010 BOFIT Weekly 6/2010 Stimulus to continue this year.
    [Show full text]
  • Russia's Rearmament Programme
    BRIEFING PAPER Number 7877, 24 January 2017 Russia's rearmament By Claire Mills programme Contents: 1. Background 2. Russian defence expenditure since 2001 3. Programme of military modernisation 4. Progress against the State Armament Plan 5. Looking forward – the State Armament Plan 2018-2025 www.parliament.uk/commons-library | intranet.parliament.uk/commons-library | [email protected] | @commonslibrary 2 Russia's rearmament programme Contents Summary 4 1. Background 9 1.1 Brief outline of current military assets 10 2. Russian defence expenditure since 2001 13 2.1 Spending in 2016 15 3. Programme of military modernisation 16 3.1 State Armament Plan 2007-2015 17 3.2 2008 programme of military reform 18 3.3 State Armament Plan 2011-2020 21 4. Progress against the State Armament Plan 23 4.1 Complicating issues 24 The impact of defence inflation 24 The military-industrial complex 25 4.2 How far has rearmament progressed? 28 Nuclear forces 28 Revitalisation of the Navy 31 Modernisation of the Aerospace Force 34 Ground forces 37 5. Looking forward – the State Armament Plan 2018-2025 40 5.1 Projected spending 40 5.2 Expectations for the next SAP 40 3 Commons Library Briefing, 24 January 2017 Cover page image copyright: Moscow military parade 2015 by Kremlin.ru. Licensed under the Creative Commons 4.0 international license / image cropped. 4 Russia's rearmament programme Summary The decline of the Russian military during the 1990s was regarded as a natural consequence of the fall of the Soviet Union, a crippled Russian economy and a political leadership searching for identity.
    [Show full text]
  • Miami1177598932.Pdf (567.64
    MIAMI UNIVERSITY The Graduate School CERTIFICATE FOR APPROVING THE DISSERTATION We hereby approve the Dissertation Of Irina Aervitz Candidate for the Degree: Doctor of Philosophy Director (Dr. John M. Rothgeb) Reader (Dr. Walter Arnold) Reader (Dr. Venelin I. Ganev) Graduate School Representative (Dr. Margaret Ziolkowski) ABSTRACT THE DRIVING FORCE BEHIND THE AUTOMOTIVE SECTOR IN CHINA AND RUSSIA: THE ROLE OF THE STATE IN TECHNOLOGY APPROPRIATION by Irina Aervitz The focus of this study is automobile industry in China and Russia. Specifically I am looking at the state attempts to encourage technology development in the automobile sector. My goal is to look for variations in the overall policy environment created by the state with regard to technology enhancement in the automobile industry in China and Russia and particularly focus on policy implementations at the enterprise level by observing the way enterprises appropriate technology by using various sources of technology appropriation provided by the state policies. I believe that this research is important because it reviews the literature on the role of the state in industrial development and introduces the concept of “technology appropriation.” Technology appropriation lies in the heart of the companies’ technological competitiveness and is based on the sources of technology made available to companies by the regulatory environment created by the state. Most importantly, this project offers analysis of the empirical data collected during a series of interviews in the domestic and foreign enterprises operating in both countries. This analysis attempts to lift the “curtain” over the companies’ technology-oriented strategies and the way they take advantage of the existent state policies affecting the process of technology appropriation.
    [Show full text]
  • Autobusiness N 138 Eng.Pdf
    content Content Car Marke……………………………………………………………..……………………………………...………….. 3 Commercial Vehicles………………………………………...….……………………………………………………. 21 Foreign Investors: Business Organization in Russia ……………………………………………..…….……… 27 Auto component sector – no way out?………………………….……….………………………………………… 31 DMS: Auto Dealers’ Experience …………………………………………………………………………………….. 34 A Car on Demand …………………………………………………………………………………………………..…. 38 Power Plant ……………………………………………………………………....………………………...………….. 43 Model Highway Initiative ……………..…………………………………………………………………...………….. 43 Autobusiness [138] June 2013 | 2 first quarter results Car Market The car segment of the first quarter of 2013 is characterized by a pronounced stability of its indices. The production and sales growth was insignificant, in comparison with the first quarter of 2012. The increase in the share of foreign cars in the car production and sales structure also slowed down. Car Production Over the first three months of 2013, in Russia, 452.5 thousand cars were manufactured, which is only a 0.62% increase on the production result for the same period of 2012. Shares of Russian and foreign cars in the production structure also remained almost unchanged. In January-March 2013, 140.6 thousand cars of Russian brands were produced, which amounted to 31.07% of the total production volume. For comparison, In January-March 2012, their share was equal to 31.11%. Despite the total production volume stability, in the first quarter of 2013, the dynamics of cars, produced by various manufacturers, differed significantly. So, most enterprises, producing cars of Russian brands, showed the negative production dynamics. AVTOVAZ’s car production decreased by 4.63%, in particular, due to the assembly termination of Lada Kalina cars of the previous generation and preparation for the production of a new model of Kalina cars. The car production of Ulyanovsk Automobile Plant also decreased, by 14.1%.
    [Show full text]
  • Admiral Gorshkov Frigate Reveals Serious Shortcomings in Russia’S Naval Modernization Program
    March 2016 Admiral Gorshkov Frigate Reveals Serious Shortcomings in Russia’s Naval Modernization Program Paul Schwartz Since 2008, as part of its ongoing military reform, Moscow has embarked on a large-scale program of naval expansion intended to recapitalize its ailing shipbuilding industry and rebuild and modernize its fleet. Rebuilding the fleet has received especially high priority in Russia’s 2011–2020 State-Armament Program, with the navy set to receive nearly 5 trillion rubles (about US$70 billion), or fully one-quarter of the total amount to be spent on military modernization of Russia’s entire armed forces through 2020.1 Russia’s fleet development plans were further elaborated in its “Action Plan 2013–2020,” an overall modernization road map released by the Ministry of Defense in 2013. According to this plan, the percentage of modern equipment in Russia’s navy was set to increase from a level of approximately 40 percent in 2013 to over 70 percent by 2020.2 Despite substantial efforts to make good on its naval modernization plans, including significant state spending, what has been delivered thus far to the Russian Navy has fallen well short of expectations. While official Russian rhetoric routinely proclaims that the fleet is undergoing a major renaissance, in reality Russia’s shipbuilding programs have been severely hampered by enduring problems, including budget shortfalls, underinvestment in naval R&D, poor design, obsolescence in its shipbuilding industry, system- integration challenges, reduced access to foreign technology, and widespread corruption, among other problems, all of which have led to long-standing delays in several naval programs and outright cancellation of others.3 The Admiral Gorshkov–Class Frigate A particularly important case in point is the seemingly endless project to build a new blue-water frigate.
    [Show full text]
  • Automative Industry in Russia [EBRD
    Automotive Industry in Russia: Impact of foreign investments in car assembly plants on suppliers’ entry 2 Automotive Industry in Russia: Impact of foreign investments in car assembly plants on suppliers’ entry Libor Krkoska and Alan Spencer Abstract In recent years, a number of leading international car manufacturers have established assembly facilities in Russia. The purpose of this paper is to assess how the entry of a large number of foreign car manufacturers can assist the emergence of a viable automotive industry in the Russian Federation, given their initially relatively small scale and focus on import substitution. The paper concludes that currently established or planned car assembly plants have already created a sufficient critical mass to encourage an entry of many types of component suppliers, despite limited production volumes of individual models, and a further expansion of the sector would enable the entry of even the most capital intensive investments in tooled components within a few years, provided the announced investment plans are implemented. Keywords: automotive, Russia, suppliers, linkages Address for correspondence: European Bank for Reconstruction and Development, One Exchange Square, London EC2A 2JN, United Kingdom. Tel: +44 20 7338 6710; Fax: +44 20 7338 6111; E-mail: [email protected] Libor Krkoska is a Senior Economist at the EBRD. Alan Spencer was a Consultant for the EBRD at the time of writing. Views presented are those of the authors and not necessarily of the EBRD. The authors are grateful to Bruno Balvanera, Erik Berglof, Philippe Belot, Alex Chirmiciu, Fabrizio Coricellli, Marianne Deschard, Ihn Kim, Zbigniew Kominek, Hans-Peter Lankes, Alexander Lehmann, Rika Ishii, Alain Pilloux, Alexander Plekhanov, Eric Rasmussen, Alan Rousso, Toshiaki Sakatsume, Peter Sanfey, Duncan Senior, and the participants of the EBRD Economic Seminar in January 2008 for helpful comments on an earlier draft.
    [Show full text]