Russians Withdrew $55 Bill. from European Banks

June, 2008

Russian clients withdrew a record $55 billion from their European bank accounts in the fourth quarter of last year. Vedomosti newspaper writes that that is the largest outflow of Russian funds in the last five years. According to the Bank for International Settlements, that was the first year since 2003 that clients from Eastern Europe withdrew funds rather than adding to their accounts. Access to international loans has become harder for the majority of Russian companies due to the credit crisis. Therefore, Russian companies rerouted funds from foreign accounts to pay for foreign debts or for other purposes. Russian investors may have transferred their funds to more promising markets. Also, the share of the Central Bank’s currency reserves in foreign banks was reduced in the fourth quarter of last year by more than $17 billion. Of the $390 billion in bad debt written off by credit organizations since the beginning of last year, about $200 billion of that amount came from European banks. The Bank for International Settlements is headquartered in Switzerland. It coordinated work between central banks and conducts economic research.


Profit of Russia’s 30 Top Banks Surged 2.4 Fold

With past year’s results taken into account, the profit of Russia’s 30 biggest banks soared 2.46 fold on year to 923,482,205 ths ruble as of May 1, 2008 from 376,035,534 ths ruble. nder the aggregate balance report of Russia’s 30 biggest banks released by the CBR, this year’s profit equaled 126,937,903 ths ruble, while the profit-disposition item set forth 122,937,540 ths ruble. The aggregate assets of 30 biggest banks widened by 25.73 percent from 12,019,631,653 ths ruble as of May 1, 2007 to 15,112,634,865 ths ruble as of May 1, 2008. The funds of the biggest banks with correspondent accounts of the CBR and with the authorized bodies of other countries amounted to 506,524,253 ths ruble as of May 1, the accounts with other commercial banks stood at 182,120,115 ths ruble. The liabilities of 30 biggest banks amounted to 11,904,095,073 ths ruble.


Luxemburg to Invest €25bn in Russia’s Economy

The capital funds of Luxembourg will invest €25 billion in the RF economy, Jeannot Krecke, who is the economy minister of that country, told RBC. Mr Krecke is in Sochi now, heading the delegation of businessmen (roughly 30) that visited the Krasnodar region. Krecke said they have established cooperation with a few regions of Russia where they are injecting big money. The capital funds of Luxemburg plan to invest €25 billion in Russia’s economy this year. But the Krasnodar region has been out of the list of regions, where Luxembourg established its business contacts. The fruitful cooperation will begin after this visit, Krecke hoped. Power engineering, metallurgy, hotel industry are amid potential directions of cooperation, the minister specified. The meeting of businessmen from Chambers of Commerce of Sochi and Luxembourg has been slated for June 11. The current visit is the fact-finding, Krecke made clear, pointing out that they will have clearer understanding of cooperation potential between the Krasnodar region and Sochi till and after 2014. Krecke invited the delegation of Krasnodar region to Luxemburg, where the region will be presented in April 2009.


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Dear reader,

Arevordi will be taking a sabbatical to tend to personal matters. New blog commentaries will henceforth be posted on an irregular basis. The comments board however will continue to be moderated on a regular basis.

The last 20 years or so has also helped me see Russia as the last front against scourges of Westernization, Globalism, American expansionism, Zionism, Islamic extremism and pan-Turkism. I have also come to see Russia as the last hope humanity has for the preservation of classical western civilization, Apostolic Christianity and the traditional nation-state. This realization compelled me to create this blog in 2010. Immediately, this blog became one of the very few voices in the vastness of cyberia that dared to preach about the dangers of Globalism and the Anglo-American-Jewish alliance, and the only voice preaching the strategic importance of Armenia remaining within Russia's orbit. From about 2010 to 2015 I did monthly, at times weekly, commentaries about Russian-Armenian relations and Eurasian geopolitics in general. It was very difficult as I had no assistance in this endeavor. The time I put into this blog therefore came at the expense of work and family. But a powerful feeling inside me urged me to keep going; and I did.

When Armenia finally joined the EEU and integrated its armed forces into Russia's military structures a couple of years ago, I finally felt a deep sense of satisfaction and relaxation, as if a very heavy burden was lifted off my shoulders. I finally felt that my personal mission was accomplished. I therefore felt I could take a step back, as I really needed the rest. Simply put: I have lived to see the institutionalization of Russian-Armenian alliance. Also, I feel more confident now that Armenians are collectively recognizing the strategic importance of Armenia's ties with Russia. Moreover, I feel satisfied knowing that, at least on a subatomic level, I had a hand in the outcome. As a result, I feel a strong sense of mission accomplished. I therefore no longer have the urge to continue as in the past. In other words, the motivational force that had propelled me in previous years has been gradually dissipating because I feel that this blog has lived to see the realization of its stated goal. Going forward, I do not want to write merely for the sake of writing. Also, I do not want to say something if I have nothing important to say. I feel like I have said everything I needed to say. Henceforth, I will post seasonal commentaries about topics I find important. I will however continue moderating the blog's comments section on a regular basis; ultimately because I'm interested in what my readers have to say and also because it's through readers here that I am at times made aware of interesting developments.

To limit clutter in the comments section, I kindly ask all participants of this blog to please keep comments coherent and strictly relevant to the featured topic of discussion. Moreover, please realize that when there are several anonymous visitors posting comments simultaneously, it becomes very confusing (not to mention extremely annoying) trying to figure out who is who and who said what.Therefore, if you are here to engage in conversation, make an observation, express an idea or simply attack me, I ask you to at least use a moniker to identify yourself. Moreover, please appreciate the fact that I have put an enormous amount of information into this blog. In my opinion, most of my blog commentaries and articles, some going back ten-plus years, are in varying degrees relevant to this day and will remain so for a long time to come. Articles in this blog can therefore be revisited by longtime readers and new comers alike. I therefore ask the reader to treat this blog as a depository of important information relating to Eurasian geopolitics, Russian-Armenian relations and humanity's historic fight against the evils of Globalism and Westernization.

Thank you as always for reading.