Banking & Finance Weekly Report
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The United States will make a final decision regarding Russia’s status as a market economy before June 14, German Gref, the Russian minister of economic development and trade, has said. “I hope the decision will be in our favor,” Gref told reporters after talks between Russian and U.S. officials in the Kremlin. If Russia is recognized as a market economy, “it and its manufacturers will be able to launch the process of having anti-dumping tariffs reviewed,” Gref said. “Major opportunities will open up for exporting Russian goods to the United States,” he continued. Understandings have been reached on exports of Russian steel to the USA. Gref recalled that on July 10, Washington was due to complete an investigation into cold-rolled steel. Gref’s ministry has asked U.S. trade officials to think about rounding the investigation off in September rather than July to allow time for the signing of documents to resolve issues related to cold roll, considering that the U.S. may recognize Russia as a market economy before June 14. Gref said a team of Russian experts dedicated to coordinating ways of to resolve problems in steel trade with the United States would take up residence at the U.S. Department of Commerce on May 27. FINANCIAL POLICY PRODUCTION, SERVICES IN MAIN AREAS OF ECONOMY UP 3.7% IN JAN-APRIL Production of products and services in the five main areas of the economy (industry, agriculture, construction, transport and retail trade) increased 3.7% year-on-year in January-April 2002, according to information from the State Statistics Committee. The year-on-year growth in the same period last year amounted to 5.3%. Production in the basic areas of the economy in April was up 4.6% from April 2001, this figure for March was 4.1%, for February - 2.9%, and January - 3.0%. In April, production was down 2.7% from March. According to State Statistics Committee information, industrial production in Russia in January-April 2002 was up 3.0% year-on-year and agricultural production was up 5.2%. Freight transport increased 4.5% from January-April 2001, including a 1.9% increase in rail transport. Retail trade was up 9.2% year-on-year. Russian foreign trade in the first quarter 2002 was down 6.1% year-on-year, including a 13.0% drop in exports and a 9.6% increase in imports. Real disposable incomes in Russia in January-April 2002 were up an estimated 9.5% year-on-year, real wages increased 17.4%. The nominal wage (not adjusted for inflation) increased 37.8%. Inflation on the Russian consumer market amounted to 6.6% (16.0% in the year ending April 2002), with industrial producer prices up 2.0% (6.8%). |