…..Russia can become one of the four largest economies in the world – Vladimir Putin
According to the president, the country is already the largest country in Europe economically and now wants to overtake Japan
Russia is already the largest economy in Europe in terms of purchasing power parity (PPP) and could become one of the four largest economies in the world, Russian President Vladimir Putin said on Thursday.
PPP compares economic productivity and living standards between countries by taking into account differences in the cost of goods and services.
“The pace and quality of growth allow us to say that in the near future we will take a step forward and become one of the four economic powers of the world,” Putin said.
According to World Bank estimates, in 2023 Russia was the fifth largest economy in the world in terms of purchasing power parity (PPP) and the only country in Europe in the top five.
Topping the list was China, followed by the US, while India and Japan came third and fourth. Russia rounded out the top five, followed by Indonesia in sixth place and Germany, the largest economy in the EU, in seventh place.
According to official statistics, the Russian economy recorded growth of 3.6% in 2023 , despite being subject to numerous international economic sanctions and cut off from major financial markets.
Among G7 countries, Germany’s GDP contracted by 0.3% in 2023, while GDP in the UK is estimated to have grown by 0.1% and in the US by 2.5%.
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…. Russia bans gasoline exports for six months
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Russia bans gasoline exports for six months starting March 1st
By Guy Faulconbridge and Olesya Astakhova
February 27, 2024, 7:48 p.m. UTC. Updated before
[Source: https://www.reuters.com/business/energy/russia-bans-gasoline-exports-6-months-march-1-2024-02-27/ ]
- Summary
- Companies
- Russia bans gasoline exports from March 1st
- Prime Minister Mishustin approved the ban
- Gasoline prices are tricky ahead of the election
MOSCOW, Feb 27 (Reuters) – Russia on Tuesday ordered a six-month ban on gasoline exports from March 1 to keep prices stable amid rising demand from consumers and farmers and to increase maintenance at refineries in the world’s second-largest oil exporter make possible.
RBC, citing an unidentified source, said Prime Minister Mikhail Mishustin agreed to the ban after Novak suggested it in a February letter. 21. A second source told Reuters that the decision had been made but the decree had not yet been issued.
“To compensate for excessive demand for petroleum products, it is necessary to take measures that will help stabilize prices in the domestic market,” Novak was quoted as saying by RBC in his proposal.
Domestic gasoline prices are sensitive for drivers and farmers in the world’s biggest wheat exporter ahead of the March 15-17 presidential election, while some Russian refineries have been hit by Ukrainian drone strikes in recent months .
Russia and Ukraine have targeted each other’s energy infrastructure to disrupt supply lines and logistics and demoralize their opponents as they seek to stay ahead in a nearly two-year conflict that shows no signs of ending.
The export of oil, oil products and gas is by far Russia’s largest export, a key source of foreign exchange earnings for Russia’s $1.9 trillion economy and ensures Moscow a place at the forefront of global energy policy.
The Kremlin has worked with Saudi Arabia, the world’s largest oil exporter, to keep prices high as part of the broader OPEC+ grouping, which includes the Organization of the Petroleum Exporting Countries and key allies.
As part of OPEC+ efforts to support prices, Russia is already voluntarily cutting its oil and fuel exports by 500,000 barrels per day in the first quarter.
PETROLEUM
The largest gasoline producers in Russia in 2023 were Gazprom Neft (SIBN.MM), opens new tab Omsk refinery, Lukoil’s (LKOH.MM), opens new tab NORSI oil refinery in Nizhny Novgorod and Rosnefts (ROSN.MM), opens new tab Ryazan refinery.
In 2023, Russia produced 43.9 million tons of gasoline and exported around 5.76 million tons, or about 13% of its production. The largest importers of Russian gasoline are primarily African countries, including Nigeria, Libya, Tunisia and the United Arab Emirates.
The outages include the shutdown of a plant at NORSI, the country’s fourth-largest refinery near the city of Nizhny Novgorod, about 430 km (270 miles) east of Moscow, after what is believed to be a technical incident.
Last year, Russia banned gasoline exports between September and November to address high domestic prices and shortages.
This time, the ban will not extend to Eurasian Economic Union member states, Mongolia, Uzbekistan and two Russian-backed breakaway regions of Georgia – South Ossetia and Abkhazia.
Wholesale fuel prices in Russia have increased since the beginning of the year. According to Feb. 26, prices for 92-octane gasoline on the St. Petersburg International Trade Exchange (SPIMEX) had increased by 22% since January 1, while 95-octane gasoline increased by 32%. Since the export ban was announced, 92 has fallen 3.3%.
The price of 95 gasoline in Russia is about 62 US cents per liter, compared to more than 2.05 US dollars in Western Europe .
= 91.7530 rubles)
($1 = 0.9212 euros)
Russia will impose a six-month ban on gasoline exports starting tomorrow, March 1, to meet rising domestic demand. It will also cause the cost of gasoline to rise significantly in all Western countries, which is currently benefiting Ukraine.
Fuel demand in Russia will rise due to summer holiday travel, spring field work on farms and planned repairs at oil refineries, oil industry executives say. To offset the booming demand for petroleum products, measures to stabilize domestic prices are needed.
However, no one is blind to the fact that such an export ban will cause serious harm to the Western countries that are currently supporting Ukraine in its conflict with Russia .
Russia can increase or decrease oil, gasoline and diesel production at will because it has so much of it.
Europe still was purchasing Russian gasoline, albeit from secondary sources. Now they will get nothing. Nothing at all.
As Russia stops exporting gasoline, countries that need this fuel will have to find other sources, which are quite limited worldwide. As with everything else, supply and demand determine the price, and so starting tomorrow, March 1st, gasoline prices will rise again as Russia punishes the West for supporting Ukraine.
Russia has gigantic reserves and the ability to mass produce diesel and gasoline for its mechanized units for a long war .
Now “the enemy” will no longer receive the same reserves because Biden has been depleting the US strategic petroleum reserves here in the US since this year.
Therefore, America will not send fuel to Europe because it has none to supply, and cannot increase production because the Biden environmentalists have destroyed the US’s ability to drill for more oil .
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