SOVEREIGN ECONOMY: TOP EVENTS OF THE WEEK
Russian Prime Minister Mikhail Mishustin has stated that sanctions are not a temporary phenomenon. He claims that Russia's former Western partners have gone too far to back down, and that Kremlin will continue on its path of self-isolation.
The Kremlin has formulated its plan in response to G7's threat of a complete ban on exports to Russia. Deputy Secretary of the Security Council of Russia, Dmitry Medvedev, stated that if G7 implements its plan, Russia will reply accordingly. It means that the "grain deal" will be terminated and sensitive goods imports to the G7 nations will also be halted.
The production of passenger cars in Russia in the first quarter of 2023 decreased by 64.6% YoY to 86.4 thousand. The changes in the Russian automobile industry are not only visible in numbers. With the imposition of sanctions, the largest international companies, such as BMW, Mercedes, Volkswagen, Toyota, etc., discontinued their production programs within Russia, and Chinese manufacturers have taken their place.
Russia is expecting a decrease in oil production by 20 million tons in year 2023. Vice Prime Minister Alexander Novak announced that oil and condensate production in Russia would drop by 20 million tons, reaching 515 million tons. Russia got its promised oil production cut (by 500,000 barrels per day) ahead of schedule, in April. However, Rosstat ceased publication of data on oil production in March.
The South Korean Ministry of Trade has expanded the list of goods requiring a special permission for export to Russia and Belarus, from 57 to 798 positions. The list includes industrial and construction equipment, products in the steel and chemical industries, car manufacturing, automobile parts over $50,000, conductors and quantum computers, their components, as well as sapphires and rubies.