BOFIT Russian & Baltic Economies The Week in Review Yearbook 2002 Russian and Baltic Economies - The Week in Review is a brief compilation of leading economic news items in Russia and the Baltics. Bank of Finland Institute for Economies in Transition, BOFIT Russian & Baltic Economies - The Week in Review 2002 BOFIT www.bof.fi/bofit Contents 2002 4.1.2002 Week 1/2002 S Rouble makes calm transition to 2002. S Russian share prices rise at year's end. S Russian government approves plan to reform housing costs. S Russian enterprises continue to reduce payment arrears S Russia's centrist parties unite. S Progress in Russian judicial reform. S Estonian GDP grew 5 % y-o-y in the third quarter. S Lithuanian GDP also up 5 % y-o-y in the third quarter. S Performance of Baltic share prices in 2001 quite mixed. 11.1.2002 Week 2/2002 S VAT to provide largest revenue stream in Russia's 2002 budget, social spending biggest expenditure item. S Russian GDP grew 5 % in first three quarters of 2001. S Russian inflation 18.6 % y-o-y in December. S Russian current account surplus shrank in 2001. S Estonian government resigns. S Current account deficits rise in Estonia and Latvia, fall in Lithuania. S Estonia posts highest Baltic inflation in 2001. 18.1.2002 Week 3/2002 S Continued strong growth in private consumption and investment. S Russian currency reserves stable, rouble declines. S Russia's new labour code replaces 1970s legacy. S Hike in Russian excise taxes. S Putin wants more support for small businesses. S Latvia gets new laws on business and competition. S Estonian government scrubs sale of stake in Narva power plants to NRG Energy. S While EU accession talks progress, accession support varies widely. 25.1.2002 Week 4/2002 S Russian industrial output grew 4.9 % last year. S CBR raises its interest on commercial bank deposits. S Exports tariffs lowered on oil and oil products. S Russia eliminates export tariffs for several goods categories. S Putin considers shift to all-volunteer military. S Busy spring session ahead for Duma. S Siim Kallas takes over as Estonian prime minister. S Tallinn bourse will hold off on shift to HEX trading system until late February. S New framework agreed on privatisation sale of Latvian Shipping Company (LASCO) S Polish unemployment continues to rise. Russian & Baltic Economies - The Week in Review 2002 BOFIT www.bof.fi/bofit 1.2.2002 Week 5/2002 S Growth in construction and retail accelerated last year. S Russian government decides on 2002 increases in natural monopoly tariffs. S Russian government seeks to restructure Soviet-era commercial debt. S Russian share prices rise in January. S Estonia's new government. S Euro peg for the litas. S Lithuania's and Latvia's currency reserves rose last year, Estonia's reserves shrank. 8.2.2002 Week 6/2002 S New data indicate Russian GDP grew 9 % in 2000 and 5 % in 2001. S Russian inflation accelerates in January. S Russia's WTO membership talks continue. S Further lowering of Russian export tariffs. S Putin approves plans to revise Vneshtorgbank ownership structure. S Russia still on the FATF blacklist. S Russia favouring domestic ports over Baltic ports. S Litas pegged to the euro last Saturday (2.2.). S Baltic budgets balance improves last year. S Polish inflation hits new lows. 15.2.2002 Week 7/2002 S Russian imports from non-CIS countries grew briskly in 2001. S Services' share of Russian GDP increased slightly last year. S Russian government revises its 2002 growth estimate. S Russian unemployment was 9 % in December. S Summary of Russia's privatisation activities in 2001… S …and privatisation plans for 2002. S Unexpected January jump in Baltic inflation. S Baltic year-end industrial output growth exceeds forecasts. 22.2.2002 Week 8/2002 Overview of revenue and expenditure on consolidated 2001 regional budgets in Russia. S Uneven rise in Russian producer prices last year. S Russian money supply expanded quickly in 2001. S Russia plans to implement deposit insurance fund in two phases. S Russian labour market organisations and the government sign general agreement on income policy and employment for 2002 -2004. S Growth in Baltic exports slowed towards end of 2001. 1.3.2002 Week 9/2002 S Economic growth of Russian industry slowed in January. S Russia posts large budget surplus in 2001. S Russian real incomes rose last year. S S-account holders offered more foreign currency auctions and higher investment limits S CBR lowers minimum capital requirements for foreign-owned banks in Russia. S No consensus yet on Caspian Sea issues. S Tallinn bourse connects with Helsinki exchange's trading system. S Privatisation of Latvian gas company completed. S Sale of LASCO for privatisation coupons begins. S Nord/LB to buy Lithuanian Agricultural Bank. Russian & Baltic Economies - The Week in Review 2002 BOFIT www.bof.fi/bofit 8.3.2002 Week 10/2002 S Russian on-month inflation slowed to 1.2 % in February. S Investments in oil sector lead in 2001. S Russian regions experience difficulties in paying wages. S Termination of power-sharing agreements between centre and regions. S Implementation of energy sector reforms begins. S Baltic bank lending up in 2001. S Lithuania's new value-added tax. S Economic growth still strong in CIS countries last year. 15.3.2002 Week 11/2002 S FDI inflows to Russia dwindle in 2001. S Changes in the structure of Russian foreign trade in 2001. S Russia's foreign debt contracted substantially in 2001. S Minor reduction in Russian domestic debt last year. S Russia relaxes rules on exporting foreign currency. S Estonia posts highest Baltic inflation in February. S Baltic wages rose last year. S Lithuanian unemployment continues to rise. 22.3.2002 Week 12/2002 S Sergei Ignatiev takes over as CBR chairman. S Russian industrial output growth slowed in February. S Little change last year in Russian companies' reliance on barter or payment arrears situation. S Russian government approves draft proposal on sale and purchase of agricultural land. S Changes in Russian export tariffs. S Foreign direct investment inflows last year nearly covered Estonia's current account deficit. S Latvian GDP rose 7.6 % last year. 28.3.2002 Week 13/2002 S Russian economic growth slowed in February. S Profits of Russian enterprises down in 2001. S Russia promises to curb crude oil exports during second quarter. S Russian government proposes tax code amendments. S Bumpy road for Russian pension reform. S Russian election dates. S Estonia has lowest government debt among the Baltics. S Finnish HEX Group offers to purchase majority stake in Riga Stock Exchange. S Poland's GDP grew just 1.1 % last year. 5.4.2002 Week 14/2002 S Rouble weakened moderately last month. S Russia's Supreme Court decision would modify CBR currency controls. S Russia's consolidated 2001 budget shows large surplus. S Russian government approves 2002 investment program for natural gas producers. S Estonia and Lithuania enjoyed robust economic growth in 2001. S Opposition rolls to victory in Ukraine's parliamentary election. S Country risk rankings of transition economies continue to improve. Russian & Baltic Economies - The Week in Review 2002 BOFIT www.bof.fi/bofit 12.4.2002 Week 15/2002 S Russia and Germany agree on Soviet-era debt. S Russia monthly inflation 1.1 % in March. S CBR lowers refinancing rate. S Russia's current account surplus shrinks in first quarter. S Bank deposits and lending in Russia in 2001. S Baltic inflation slows in March. S Current account deficit rises in Latvia, falls in Lithuania. 19.4.2002 Week 16/2002 S Russian industrial output revived slightly in March. S Statistics Committee releases fourth-quarter GDP data for 2001. S Russian share prices continue to climb. S Russia's grey economy said to employ nearly 13 % of labour force. S Tax relief proposed for Russia's small firms. S LASCO privatisation moves ahead. S Williams and YUKOS resume talks on Mazeikiu Nafta. 26.4.2002 Week 17/2002 S Russian economic growth recovered in March. S Putin's state-of-the-nation address emphasises acceleration of economic reform. S IMF says Russia's economic policies headed in the right direction. S Minimum wage to rise from the first of May. S Lithuania's privatisation agency approves German consortium's bid for Lietuvos Dujos gas company. S EU accession talks increasingly focus on toughest chapters. 3.5.2002 Week 18/2002 S Russian unemployment fell slightly in first quarter. S Russia's population continued to decline in 2001. S Duma reversed the amended version of central bank bill to second reading. S CBR gets new deputy chairmen. S Progress in reform of Russia's natural monopolies. S Katanandov continues to lead Karelia. S Lithuania's latest eurobond placement. S Polish economic growth remains low. 10.5.2002 Week 19/2002 S Russian on-month inflation was 1.2 % in April. S Little change in forecasts of Russian economic growth this year; inflation estimates raised slightly. S Russia's regional and local budgets near balance in the first quarter. S Rapid rise in Russian real incomes continued in first quarter. S Turnover of Russian labour force has increased since the 1998 financial crisis. S IMF mission gives positive appraisal of Estonia's economic development. S Transhipments from Russia via Estonia increased in the first four months of 2002. 17.5.2002 Week 20/2002 S Despite first-quarter slowing, growth of Russian imports from non-CIS countries remained strong. S Russian government sees fast growth unlikely in the short term.