SOVEREIGN ECONOMY: TOP EVENTS OF THE WEEK
The head of the Central Bank presented the Key Directions of the unified state credit and monetary policy. The key rate in the report received a big portion of attention. Its increase to 15% was described as proportional to inflationary pressure. Annual inflation in the Russian Federation currently exceeds 7%. The Central Bank will lower the interest rate only if annual inflation approaches 4%.
The UAE restricts the export and re-export of military-use goods to Russia. Turkey is considering the same measure, according to Bloomberg. The UAE, Turkey, and a number of Central Asian countries are among those that Russia uses as routes to bypass sanctions. The EU, US, and UK have recently been concerned about the enforcement of their sanctions.
Eggs and chicken have become the leaders in the jump of food prices. Among the food products in Russia, eggs and chicken saw the highest increase in prices in October compared to September. Prices for eggs rose by 13.1% in October compared to September, by 18.7% since the beginning of the year, and by 23.9% year-on-year. Price for chicken has increased by 3.7% last month, by 29.1% since the beginning of the year, and by 26.8% compared to October of the last year.
The loyal owners (Carlsberg Group) of the nationalized company "Baltika" have been detained in Russia. The criminal case and arrest of Denis Sherstennikov and Anton Rogachesky are the Kremlin's retaliation for the refusal of the legitimate owner of "Baltika" - Carlsberg Group - to agree to the expropriation of its Russian assets and trademarks.
The State Duma has adopted a law that fully reinstates the fuel damper starting from October. The compensation for these payments will be made through automatic increases in the oil excise tax laid down in the formula, an increase in the oil excise tax on condensate for Gazprom, as well as a reduction in reverse excise duty payments for oil refineries that do not fulfil their obligations to supply oil products to the domestic market.