SOVEREIGN ECONOMY: TOP EVENTS OF THE WEEK
Russia agreed to extend the "grain deal" for two months. Maria Zakharova, the official representative of the Russian Foreign Ministry, confirmed the extension of the "grain deal" for two months. "We confirm the announcement by the President of Turkey about extending the Black Sea initiative for two months. That provides a chance to help ensure global food security, not only in words but also in practice" she said.
The Federal Customs Service (FCS) of Russia transferred 1 trillion 779.7 billion rubles to the federal budget from January to April 2023, which is 30.6% less than for the same period in 2022 (2 trillion 566 billion rubles). This is one of the factors that led to a record deficit in the Russian budget (3.4 trillion rubles for the first four months, with a planned 2.9 trillion rubles for the entire 2023 year).
The Air Transport Operators Association (ATO), which unites the largest Russian airlines, has formed a position requesting exemption from paying the windfall tax. Representatives of the ATO argue that the industry is not super-profitable, and state subsidies provided the profit earned in 2022.
Pernod Ricard has stopped exporting alcohol to Russia. The company's portfolio includes Chivas Regal, Jameson, Ballantine's whiskey, Absolut vodka, Olmeca tequila, Havana Club rum, and others. Since the end of February 2022, many manufacturers and importers of strong drinks have suspended operations or completely left the Russian market. The freed-up part of the niche is actively being filled by the growth of strong alcohol production in Russia.
The Kremlin is creating new barriers for foreign investors which decided to leave Russia. It is planned that buyers of these assets will be required to place a portion of the acquired shares on the stock exchange. The Bank of Russia considers it necessary to introduce an obligation to place a portion of the shares of companies bought out by non-residents of Russia on the stock exchange. This was announced by the Central Bank's Chairwoman, Elvira Nabiullina, at the NAUFOR conference.