After Moscow was picked to host the 1980 Summer Olympics, Soviet leader Leonid Brezhnev considered backing out as he fretted over the costs and political risks. Not so Vladimir Putin, who’s dreamed of bringing the games back to Russia for two decades and has staked his legacy on success.
The ruble’s plunge in this week’s emerging-market selloff holds the promise of more competitive Russian exports and higher budget revenue, JPMorgan Chase & Co.’s asset-management unit and Capital Economics Ltd. said.
Russia, the world’s biggest energy exporter, expects the price of oil shipments to the global market to start decreasing next year as governments begin to withdraw stimulus measures, Finance Minister Alexei Kudrin said.
An adviser to Dmitry Medvedev said the outgoing Russian president should abandon plans to become premier and make way for the man he fired last year as finance minister, Alexei Kudrin, who would do a better job.
Russia’s net capital outflow will shrink further and may be “close to a zero” for 2010, while the ruble will be stronger than expected because of higher oil prices, Finance Minister Alexei Kudrin said.
Russia’s central bank shouldn’t take steps to offset faster inflation because “monetary measures” won’t help contain price growth caused by drought and crop losses, Finance Minister Alexei Kudrin said.
Russia’s political system is “flawed” and the government needs to decentralize power and regulate more efficiently to lure greater numbers of investors, said Alexei Kudrin, the former finance minister.