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The production area of Atommash amounted to nearly 6 million square meters. 500 Milan Cathedrals could accomodate on that territory.

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About economic forums and reforms in Russia ↓

23.06.2010

Leadership of Russia is, apparently, more aware of the real financial and economic standing of the country. That is why it tries at all costs to attract to Russia as much foreign investment as possible in order to support its industries. International economic forums in St. Petersburg and international investment forums in Sochi are held every year – in early summer and early autumn respectively. The names of the forums do not matter, since they are designed to address the same main goal – attract foreign investment. Unfortunately, the activities undertaken so far did not bring results expected by the organizers. The total amount of agreements signed during all forums combined is very modest for the economy of Russian scale, as opposed to investments in other countries. For example, China has managed to create such a favorable investment climate that in a very short period it managed to attract colossal funds to various areas of the real sector of its economy, which gave positive results. This is despite the fact that China has way less natural and mineral resources than Russia.

Now, why is the total volume of investment in Russian economy, under agreements signed on the forums, way below the expectations? Besides, the signed contracts are primarily around extraction, processing and transit of natural and mineral resources, which the West is interested in. Such contracts can be signed without any forums, because development of any country comes along with an increase in energy consumption. And, frankly speaking, all key agreements signed on the forums have been pre-aligned in advance, and their signing was a pure formality, needed only to stress the importance and prestige of these forums.

It’s enough to peruse the list of participants of the forum (not including its organizers, the country’s leadership team and the same “business partners”), to see that the majority of entrepreneurs participating in the forums see these events only as an opportunity to save their own businesses from collapse. But “truth will out”, as the financial and economic state of Russian business as a whole is far from satisfactory. Unfortunately, Russian laws and Russian officials do not protect small and medium businesses from ruin and hostile takeovers carried out for the benefit of criminal business and corrupt officials who cover it up. Having said that, what partnership can Russian reality offer to real potential investors, not the “dummy” investors artificially created abroad by the Russian leadership? It’s easy to come up with an excellent example – Rostov region, where Governor Vladimir Chub ruled imperiously and unchallenged from 08.10.1991 to 14.06.2010. Materials of www.yaconto.ru partially reveal, what have this “Rostov celestial” and his “vassals” done to the once prosperous region in Southern Russia and how the corrupt federal officials covered up criminal activity in Rostov region.

Russia's supreme leadership has declared the development of a democratic state with market economy as its main goal. But that would imply that Russian citizens have a right to know the real picture of the country’s economy and the means for its future development – and, in particular, about its natural and mineral resources, which are a national treasure of Russia and its people. Today, only brief, “veiled” information slips in the official mass media and the internet from time to time. Instead, content of all agreements signed between state-controlled natural monopoly companies and their Russian and foreign partners alike, should be open information. All Russian Citizens have a right to possess trustworthy information about the efficiency of those agreements for state and society, and know, what revenues come from the export of oil and gas, how are those revenues spent by the natural monopoly companies, what share of the profit goes to the state budget as taxes and how the state itself distributes this income among the community.

Official mass media, controlled by the “Russian administrative elite” and clearly following orders “from the above”, started blatantly claiming that a fair price of one U.S. dollar note, allegedly, doesn’t exceed three cents – i.e. the note’s production cost. But the overwhelming majority of Russian citizens, who barely manage to survive from paycheck to paycheck, or depend on odd jobs fully – couldn’t care less how much a dollar costs. Thisgivesgroundsforlegitimatequestions. Why didn’t anyone from Russian leadership know that before? Or perhaps they did, but despite that continued selling out treasures of the powerful Empire called Soviet Union for this mythical “greenback”? Then why nobody suffered a severe punishment for this treason? Or maybe there’s a totally different reason – the “ruling elite” started preparing the nation to the collapse of a Russian ruble, and dollar will be the one to blame?

Already in 1990-s the “Russian ruling elite” and its “monopoly business partners” made the country’s economy and business directly dependent on the U.S. dollar. But what’s interesting – today their “successors”, smearing “bucks” with dirt, at the same time frantically try to bring to Russia as much dollar-nominated investment as possible. Now, if the U.S. dollar is so weak and has no future, what makes the “Russian monopolists” buy vast amounts of it? What makes Russia’s pride, oil & gas company  Surgutneftegaz JSC keep more than 30 Billion U.S. dollars on its balance sheet? At whose orders Russia accumulated more than 300 Billion U.S. dollars? And why do Russian mass media hysterically, with foam at mouth, vilify the dollar? If the U.S. dollar is doomed, keeping Russia’s assets nominated in U.S. dollars is an anti-state crime comparable to the premeditated bankruptcy of Atommash OJSCThere are many questions of this kind to the Supreme leadership of Russia. Who is this “show” for and whose orders are executed by the “puppets”? One thing is clear – the puppeteers behind all of this are those who led Russian economy to collapse and today chose dollar as a scapegoat.

But there are also other reasons which ignite the hatred of the “powerful of this world”. Several extremely powerful Russians followed the advice of “well-wishers” and secretly invested – through proxies, of course – colossal sums of money into U.S. securities that were known as high-yield. Those securities turned out to be “bubbles”, and when the bubbles burst, their investments disappeared. Thus, the mighty corrupt officials in Russia had to “swallow the bitter pill” and keep silent. To announce this publically was to reveal themselves and their hidden activity against Russia and its Citizens. That's why the "bile" that overwhelms those “high-positioned gentlemen” is plain to see for those who know them.

The situation, in essence, is clear – coalescent monopoly of government and business in Russia, incapable of developing the country’s economy without the export of hydrocarbons as the main source of personal gain, looked for someone to blame, and chose the U.S. dollar. If they knew the dollar's real value long before the world’s financial crisis, why didn't they propose any actions to strengthen it as a world currenccy? Russian economy, put off balance by the “administrative elite” and their “monopoly business partners”, leaves no chance for the Russian ruble to become an attractive currency that would be in high and stable demand on the world’s financial markets. And that’s while the Russian ruble has every chance to be based on richest natural and mineral resources in the world. During the planned economy of USSR, prices for goods and services were set and strictly controlled by the state. Under Russian market conditions the prices are free from the state’s influence and are fluctuating. However, deliberate breakdown of domestic industry and agriculture made the prices for consumer goods and services on Russian markets fully dependent on prices on the outside markets.

The supreme leadership of Russia should urgently start a radical reform of public authorities and administration, reducing their number four times. The intention to reduce bureaucracy by 20% the country will not give any effect, except for waste of time and headache. Besides, that reduction would definitely impact those officials who play a really crucial role in the state authorities and administration. That would be similar to reforming the police by eliminating road police, which would be disastrous in an enormous country like Russia. And those who were “pulled” to these positions would anyway remain on their plum places and will pillage the country and its citizens even more industriously. Personnel reform in a country with market economy must be very determined and ambitious, only then the desired effect will be achieved, bringing tangible benefits to society. Failure to execute, incompetence, rudeness, intent, red tape and passiveness of officials must necessarily be regarded as proof of their non-compliance with the official position, and such officials must be immediately dismissed. The bureaucracy itself must not participate in the personnel reform; otherwise the reform is doomed to fail. This is the only way to substantiate Dmitry Medvedev’s expression “smart economy”, which will otherwise turn into a mockery, like Leonid Brezhnev’s pointless idiom “economy must be economical”.

  

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