Top state officials at different levels – from heads of country’s biggest corporations like Gazprom or Lukoil to the bosses of the country’s key state bodies like the Central Bank, can be punished if they, or their spouses or underage children, have any sort of financial asset abroad.The law aims to provide better national security, as well as spur investment in the domestic economy and fight corruption, according to Kremlin website. It applies to people “who are duty-bound to take decisions concerning sovereignty and national security of the Russian Federation.”The bill was approved by the Russian Parliament’s upper house, the Federation Council in April.Wednesday’s signing of the law leaves 3 months for Russian officials to dispose of all their bank holdings, bonds, shares and any other financial instruments. Property, however, remains untouched by the ban, provided officials declare them and explain how they obtained the money for the purchase.Some officials chose to prepare well beforehand, with Russian billionaire Senator Suleiman Kerimov moving his business assets to a Swiss – registered charitable fund. First Deputy PM Igor Shuvalov was also among the “early birds”, as he has started to transfer his offshore assets from a family trust in the British Virgin Islands back to Russia. … Read More
Dollar slips against Euro despite strong U.S. jobs report
The dollar fell against the euro Friday despite a strong US April jobs report that otherwise sent stock markets and oil prices soaring. Analysts said that an increased interest in risk assets in Europe were to blame in part for the sharp reversal of the greenback’s gains that followed the…
Property of Bangladesh building owner to be seized
SAVAR, Bangladesh (AP) — A top Bangladesh court on Tuesday ordered the government to “immediately” confiscate the property of a collapsed building’s owner, as thousands of protesters demanding death penalty for the man clashed with police, leaving 100 people injured.A two-judge panel of the High Court also asked the central bank to freeze the assets of the owners of the five garment factories in the building, and use the money to pay the salaries and other benefits of their workers.The order came after police produced the building owner, Mohammed Sohel Rana, and the factory owners in court. The order did not elaborate but it was implied that the salaries of the dead victims would be paid to their relatives.At least 386 people were killed when the illegally constructed 8-story Rana Plaza collapsed on April 24. A total of 3,122 people were employed in the garment factories. It is not clear how many were working at the time, but some 2,500 people were pulled out of the rubble alive.The collapse has become the deadliest disaster to hit Bangladesh’s garment industry, which is worth $20 billion annually and supplies global retailers.Continue Reading… … Read More
Ecology vs Economy: Dirty gold dig split Greeks in Chalkidiki
http://www.youtube.com/v/105182aJRTw?version=3&f=videos&app=youtube_gdata View post - Ecology vs Economy: Dirty gold dig split Greeks in Chalkidiki
Thousands of semi-laid-off Italians slam welfare shortage
The protest was organized by Italy’s trade unions, which joined forces due to the concern over what may end as a major social calamity. They are worried over the so-called “Cassa integrazione in deroga” (Cig) scheme.Under Cig, employees are temporarily laid-off and receive part of their regular salary paid jointly by the employer and the government. This year alone some 520,000 have been sent home this way, while overall an estimated 700,000 workers are receiving Cig benefits. But the government fund used to sponsor the scheme is about to run dry.Susanna Camusso, the leader of Italy‘s biggest trade union, CGIL, first raised the alarm about the shortage on Sunday, saying that Cig payments were at risk for half a million workers.Labor Minister Elsa Fornero confirmed on Monday that the situation is indeed grave, but assured that the government will try to garner at least part of the necessary funds.The commitment however didn’t convince the trade unions, who took their followers to the streets on Tuesday in a massive rally. They suggest that the welfare money can be found at the expense of military spending, by cutting waste or taxing financial assets.“The government has no more alibis,” Camusso said. “If we don’t get assurances then there will be more protests, we will continue to occupy the squares of this country.”The protesters seemed to be determined to secure the continuation of Cig and not join the ranks of officially-unemployed Italians, who are numbered at 3 million at present. One told Euronews that he is desperate enough to rig himself with explosives and blow them up to force the government to listen.Italy is currently suffering from its longest recession in 20 years, struggling to deal with its $2.5 trillion public debt while maintaining budget deficit within the European Union’s limits.Last month Prime Minister Mario Monti’s cabinet slashed its growth forecast for 2013 to -1.3 per cent from -0.2 previously. It also raised its fiscal deficit target to 2.9 per cent of gross domestic product from 1.8 per cent previously, which is just below the EU-allowed 3 per cent threshold.The situation is aggravated by the political stalemate, which left Italy with Monti’s caretaker government after the parliamentary election in February failed to produce a party with enough seats to form a proper government.The country’s national and regional lawmakers are due to meet Thursday to elect a new president in a vote, which may last several days. The new head of state would have to decide whether to give Italy’s parties a new chance to form a coalition or call a new election. … Read More
Deputy PM Shuvalov becomes top-earning Russian official in 2012
He earned 226 million roubles (around $7.3 million) in 2012 against 9.6 million a year earlier. The Shouvalov couple earned a combined 71.6 million roubles more in 2012 making 448 million roubles ($14.4 million) compared to 376.6 million roubles ($12.1) in 2011. The income of the Deputy PM’s wife Olga Shuvalova almost halved to 222 million roubles ($7.1 million). That’s because she used to be the only beneficiary of the Shuvalov ‘blind’ trust registered in the British Virgin Islands. Now both spouses share equal income from the trust. Last week Igor Shuvalov was reported to have begun transferring his offshore assets back to Russia ahead of the new law banning state officials from holding stocks and capital abroad, Vedomosti said on Friday. The funds in the family’s Severin Trust in the British Virgin Island are being gradually transferred back to Russia, according to representatives of Shuvalov reports the newspaper.Shuvalov family’s offshore trust and income were exposed during last year’s campaign, after President Putin introduced a bill which bans officials from holding foreign assets. The bill passed in the first reading in the Lower Chamber in February. The second top-earning official is the Minister of Industry and Trade Denis Manturov. He earned 103 million roubles in 2012 ($3.3 million). The third place is shared by Deputy Prime Minister and Presidential Plenipotentiary Envoy to the North Caucasus Federal District Aleksandr Khloponin and Russia’s Minister for Open Government Mikhail Abyzov. Each earned 65 million roubles ($2 million). … Read More
Cash Dash: $1 billion flees Russian markets in Q1
In the last week, over $393 million, or 3% of assets under management, fled Russian markets. This is one of the top four biggest outflows since the 2008-2009 crisis, and the largest since 2011, according to Renaissance Capital analysts.Vyacheslav Smolyaninov, chief strategist at Uralsib Capital, told Vedomosti such a withdrawal has only occurred three times since the crisis.On Thursday the Ministry of Economic Development lowered its forecast of Russia’s GDP growth in 2013 to 2.4%, down from 3.6%. Crude oil, which together with natural gas, yields half of Russia’s revenue, has taken a continuous price beating, and has almost hit $92/barrel on the Asian markets.Gazprom, Russia’s state-owned and world’s largest extractor of natural gas, serves as an excellent microcosm to the capital outflow. In the first financial quarter, the stock fell 6.7%, and early in the second quarter the capital fell below $100 billion for the first time since 2009.The weakening rouble may be a contributing factor to the cash dash from Russia. The rouble hasn’t seen significant gains since September 2011, when it was 32.58 against the dollar, and now, it’s a lucky rouble investment day if it crosses the 31.5 threshold.EPFR, an agency which tracks fund flows worldwide, posted similar transaction data, documenting the flee from Russian and other BRIC markets. India, a close second to Russia, lost about $951 million in Q1 to other markets.The report also shows investors prefer the economic pastures of Mexico ($540 million inflow), Indonesia ($163 million), and the Philippines ($129 million).“The case for rouble strength has weakened,” James Lord, an emerging-markets strategist at Morgan Stanley wrote in a note to clients, published by Bloomberg. … Read More
