Russian economy bouncing back

RUSSIA / FSU POLITICS - In Brief 14 Aug 2021 by Alex Teddy
On August 13 data by the Federal Statistics Agency was published demonstrating that the economy recovered strongly in Q2 2021. The economy grew 10.3% YoY in that quarter. Admittedly Q2 2020 was the worst quarter for several years. The data for Q3 is expected to be even better. In Q1 2021 there was a small contraction. The gains have been in transport, retail and mining. Internal tourism gained particularly as did food delivery. 2020 saw a 3.1% contraction overall. The 2021 figure is likely to be of strong growth. Official statistics are to be treated with caution. Even if this data is unduly optimistic there is no doubt that the economy is headed in the right direction. The question is whether the economic recovery will help United Russia much in the September 2021 legislative elections. The Kremlin is seriously worried about this. Some of the systemic opposition parties such as the Communists have started to become more genuinely oppositional. Rosneft reported on August 13 that Q2 profits were up sharply. It made a net profit of USD 3.1 billion. That is a 55% increase over Q1. The global price of crude has helped. The CEO Igor Sechin issued an ebullient statement about the results which are above average for any quarter. But does this rosy news benefit the average Russian much? Rosneft is state-controlled but 20% owned by BP (a British company). Rosneft suffered badly in 2020. Its revenue is going to double in 2021 it said. It has paid off some of its debts in Q2. Rosneft is building new facilities for its Vostok Oil project in Siberia. Sechin bragged this is the world's biggest hydrocarbon project. Production is supposed to commence in 2024. The objective is to pump ...

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