As US and Ukrainian economies collapse, technological breakthroughs sweep Russia (Part 1)

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November 9, 2015 – 

Aleksey Storozhev, PolitRussia – 

Translated for Fort Russ by J. Arnoldski

“On the economy without conspiracy: who is winning?”

Let’s start with our neighbors, with Ukraine.

Probably already everyone knows that Yatsenyuk has delayed the realization of his threats against Russia until the end of November. It’s likely that he’ll delay them until the end of December, but here is the thing: at the end of the last month of this year, they have to return $3 billion in loans to us.

Of course, one can understand the Prime Minister. His country is far from the EU standards which they’re striving for, as well as far from those achievements by the hated Yanukovich. Judge for yourselves: 

Kiev is bankrupt and lenders don’t have any intention to discuss a restructuring of debt. Everything is bad with money for buying gas. “Naftogaz” has registered a payment in advance of only $24 million, which means that Russian gas deliveries to Ukraine will cease by November 10. Moreover, in the last quarter there has been a trend towards significantly reducing the reverse purchases by Europe of Russian gas for Ukraine. And this can mean only one thing: the gratuitous aid from the EU expected by Ukraine is not coming. Most likely, the benevolence shown by Europe towards Ukraine will continue to decline at the same rate that “North Stream-2” will be laid. Is there anything that doesn’t bother Yatsenyuk?

And what’s more, elections in the country showed that no unity could be achieved. On the contrary, the local “authorities” and those close to them have only strengthened their positions in the South-East and West of Ukraine. Thus, the Kiev government was able to gain a foothold only in Central and Northern Ukraine, where there is no large industry and no exit to a border with the EU or Russia. Well, how is it possible to not worry and break into hysterics?

Of course, it’s possible to remember that for the US, which so desperately imposed “democracy” two years ago, not everything is going as smoothly as they and their adherents in our country portray things to us. Let’s be more concrete..

The company Tesla Motors can’t get into the plus. This electric vehicle manufacturer reported a loss in the third quarter which was below the average expectations of Wall Street. The adjusted net loss amounted to $75 million, or 58 cents per share, while analysts forecasted 60 cents on paper. Revenues for the period were up 33% and reached $1.2 billion, but in line with market expectations the net loss widened from $74.7 million a year ago to $229 million. The negative influence on net income turned out to be provided for by Norwegian, Canadian, and Chinese currency. In total, the difference in Tesla exchanges amounts to a loss of $15 million in the third quarter. The volume of orders has increased compared with the previous year by 50%, and according to the results of the current year, the company expects to supply clients with 50,000 to 52,000 cars. 

In fact, not only is demand increasing for “advanced” products, but also the demand for ordinary cars remains the same amount of last month. 

In general, the dynamics of corporate profits in the US are the worst since 2009, and they are decreasing for the second consecutive quarter. It’s impossible to rejoice when the US trade deficit for industrial goods production has reached $74 billion in September, breaking all historical records, and it is expected that it will be left as an annual record in this year.

On Thursday, Iran issued a directive according to which importing consumer goods from the United States is banned. The directive also contains a ban put on selling or mentioning American goods in retail establishments across the country. 

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According to Nematzadeh, the minister of industry, mines, and trade of Iran, this action was taken in response to an appeal by the head and spiritual leader of the Islamic Republic, Ayatollah Ali Khamenei, to President Hassan Rouhani concerning the implementation of the economic program of the Iranian government dubbed an “economy of resistance.”

According to official American statistics, bilateral trade between the US and Iran amounted to over $140 million in the first half of this year, increasing by 60% in comparison with the same period from last year. A complete imbalance in trade can be observed. Imports from Iran to the US make up about 1%, and the remaining 99% of turnover falls to US exports to Iran.

As the Americans themselves say, the US lacks aircraft carriers. 

In 2016, US aircraft carriers and their accompanying strike groups will not be able to reside in the Middle East and East Asia, Vice Admiral of the US Navy John Aquilino reported during a hearing in Congress. As the newspaper “View” writes with reference to Hill, he did not specify when exactly a period of absence of these aircraft carriers in these designated regions is expected and how long these periods will last. Such an official recognition by the US Navy is the first of its kind. The navy claims that there are simply not enough aircraft carriers. At least one more is needed, but it is expected no sooner than 2021. Out of the 10 available, only half are available for deployment. For the permanent deployment of an aircraft carrier in this or that region, at least three vessels are required – one returns home, the second replaces it, and the third is kept in a ready state. 

The US itself recognizes that the dominance of their fleet in the world’s oceans is in question. There are, of course, still ground troops, but their effectiveness was already “displayed” in training the Afghan and Iraqi armies and the FSA in Syria. And the “effectiveness” of their air force can be judged by the bombing of the hospital and the destruction of its excavators. 

Not everything is going well with the US’ “partners” either. Let’s take Japan for example.

The profits of Mitsubishi Corporation attributable to the parent company amounted to $1,273 billion, which is 39.3% less than the first two quarters of the previous fiscal year. According to the chief financial officer of the holding company Uchino Noise, the company does not expect a recovery on commodity markets in the near period, and expansion plans are being postponed. The company has lowered its profit forecasts attributable to the head office for the 2015-2016 fiscal year. 

Meanwhile a helping hand is reaching out to Japan…Russia’s. 

At the opening of the first international conference on energy cooperation between Russia and Japan, “Energy Bridge Russia-Japan”, the head of “Rosneft”, Igor Sechin, proposed that Japanese companies join the project of producing a total oil reserve of 6 billion barrels. Sechin has assessed the results in attracting Japanese capital as “very modest.” 

Among the projects proposed to the Japanese, Sechin named the projects on the Sakhalin shelf as well as prospective and active fields in East Siberia and the Far East, in particular Verkhnechonskoe, Srednebotuobinskoe, Taguolskoe, Russkoe, and others where Rosneft plans to expand production in the coming period. 

The head of Rosneft also invited Japanse companies to join the project of the far-eastern shipbuilding complex “Star.” 

Sechin said: “Today, Japanese shipbuilders such as Mitsui Engineering and Shipbuilding, Sumitomo Heavy Industries, Kawasaki Shipbuilding and manufacturers of marine equipment have the opportunity to join Russia shipbuilding projects, primarily at the “Star” shipbuilding complex.”

Of course, these proposals will not solve all of Japan’s problems, but they may very well help and support the country of the rising sun.

Now let’s come back to domestic companies, as I think that it is possible to talk about our problems and achievements. 

(Continued in Part 2)

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