By Emre G├╝rkan Abay
Russia letter, week beginning August 22

- Negative data

 The fiscal data released by Russian statistical agency Rosstat was the most important stats in the country last week.

According to Rosstat, Russia’s industrial production in July this year decreased by 0.3 percent compared to a year earlier.

This decrease is a first since March 2016 and shows that despite statements from Russian officials, the country’s economy is still progressing well out of the recession.

Rosstat data also revealed that real wages in Russia have decreased by 7 percent in July, compared to the same month in 2015.

Real wages in January-July 2016 have also decreased by 5.3 percent and the average monthly salary in the country is currently 36,500 rubles, (US$568), according to Rosstat.

The Russian Ministry for Economic Development plans to cut real wages in order to achieve a 4.5 percent growth in its GDP by 2019.

Another critical figure, the retail trade turnover yielded a negative result and dropped by 5.6 percent in January-July 2016, compared to the same period last year.

While fiscal figures were negative, the country’s stock market, MICEX, reached a historical high last week.

With the increase in oil prices, MICEX reached a new high at 1,977 points, which is a first since 1998 when calculations began.

- Energy

Russian gas giant Gazprom issued data relating to Turkey. The Russian gas monopoly announced that its gas exports to Turkey in the first half of this year dropped by 8.2 percent to 11.9 billion cubic meters, compared to a year earlier.

Meanwhile, the company’s gas exports to Western Europe increased by 14.1 percent to 69.8 billion cubic meters during the same period.

The announcement from the country’s biggest oil company, Rosneft, revealed that its net profit in the first of half of this year decreased by 45.8 percent to 103 billion rubles ($1.6 billion).


22 Aug,2016