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The Building and Investment Complex: General and Regional Trends in H1 2017

In H1 2017, the macroeconomic situation was determined by a change in the trend of the past four years: investments in capital assets grew at a higher rate than the dynamics of the GDP and households’ ultimate consumption.  With a 1.5% GDP growth in January-June 2017, investments in capital assets increased by 4.8% as compared to H1 2016.

Investments in Fixed Assets Can Be Expected to Stabilize at Their Last Year's Level

In Q1 2017, for the first time after a 4-year 'pause', the index of investments in fixed assets moved into positive zone, with a growth rate of 102.3% relative to the previous year. The volume of investments in fixed assets in terms of share in GDP in Q1 2017 stayed approximately at its average recorded at the start of each year during the period 2014–2016.

The Influence of Inter-Budgetary Transfers on Regional Economic Growth

Russia’s territories are highly differentiated, which requires redistributing significant amount of resources both as taxes and as inter-budgetary transfers.

The Gaidar Institute is Building Models to Assess the Effects of Post-Kyoto Agreements

The year 2017 was declared to be the year of ecology in Russia, so discussions about humans’ destructive impact on the environment, including climatic effects, intensified.

The Bank of Russia Reduced the Key Rate by 0.5 Percentage Points

The Bank of Russia’s Board of Directors decided to lower the key rate from 9.75% to 9.25%.

On the Results of the Privatization Program of 2014–2016

The second 3-year privatization program for the years 2014–2016 was approved by the Executive Order of the Government of the Russian Federation of 1 July, 2013, No. 1111-p.

On the Possible Introduction of the Tax on Savings Interest

On 23 April, 2017, in a conversation with journalists at the Krasnoyarsk Economic Forum, Ilya Trunin, Deputy Finance Minister of the Russian Federation, mentioned that personal incomes from bank deposits could be taxed. That caused a stormy public reaction.

On the Regulation of Cryptocurrency

The potential to save on transaction costs determines a rapid increase in the worldwide use of blockchain. One instance of blockchain technology is cryptocurrency – digital means of payment.

Decision on “Popular OFZ” has Nothing to Do with Budget Deficit

The Ministry of Finance is turning back to the idea of issuing OFZ (federal loan bonds) for individuals as an alternative to bank deposits. The first issue (Rb 20bn) with an average annual yield of 8.5% is expected late in April.

The Central Bank Reduced the Key Interest Rate Because of Slowdown of the Inflation Rate

At the regular meeting of the Board of Directors of the Central Bank of Russia held on March 24, 2017, a decision was taken to reduce the key interest rate by 0.25 p.p. to 9.75%.
The last time the Central Bank reduced the rate was in September 2016 when it fell from 10.5% to 10%.

Simultaneously Collecting VAT and Sales Tax is Inexpedient

The economic block of the government discusses the idea of returning the sales tax which can become an alternative to raising the VAT rate during the tax maneuver. In order to circumvent the decision of the Constitutional Court of the Russian Federation that rules out simultaneous introduction of two taxes with a similar tax base, the tax is called “trade duty” in the propositions.

On Advisability of New Restrictions on the Deduction of Losses within the Tax Consolidated Group

One of the most pressing problems in the tax sphere discussed during the X Russian Business Week held in Moscow on 13–17 March were changes in the taxation of tax consolidated groups (TCG).