Back Cryptocurrencies with Natural Resources – Russian Venture Capitalist Alexander Borodich

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ruble-bitcoinCryptocurrencies backed by natural resources would be more trusted than ones backed by banks, Alexander Borodich, the founder of the Universa block-platform and a venture capital investor, has suggested at the Third Eastern Economic Forum (EEF) in Vladivostok.

Borodich said that as a country rich in natural resources, Russia is able to convert electricity to cryptocurrencies through mining, thus generating as much cryptocurrencies as possible to trade with on the market. “With the status of cryptocurrencies in Russia not yet clear even to the government, there are certainly some projects that are more or less related to cryptocurrency. Several mining companies have presented their solutions on mining cryptocurrencies. Actually, they are more about mining than cryptocurrencies,” he noted.

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North Korea “Should be Economically Rehabilitated” – Eastern Economic Forum

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dprk-folderNorth Korea should be brought in from isolation and be economically rehabilitated into North East Asia, it has been suggested by Russian President Vladimir Putin at the Eastern Economic Forum, currently being held in Vladivostok. At the plenary session, the leaders of Russia, Japan, Mongolia, and South Korea discussed in an open forum the issues facing North East Asia. When it came to the situation involving North Korea’s nuclear program, Vladimir Putin called for a peaceful solution to raising tensions, and for North Korea to be involved in common economic cooperation. The leaders of Japan and South Korea put more emphasis on forceful measures against North Korea.

“There is some merit for this concept”, comments Chris Devonshire-Ellis, who served as Vice Chair of Business Development at the United Nations Greater Tumen Initiative at a time when North Korea was a member. “I personally believe that sanctions do not work, have not worked, and are making matters worse. It would be far more preferable for the DPRK to be gradually weaned off their isolationism, and be shown that the road to progress and peace is in fact via mutual trade. It is a policy that has been working very well in Central Asia, and should be returned to in the North East”

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Understanding Russian Regional Tax Incentives

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An employee counts Russian ruble banknotes at a private company's office in KrasnoyarskForeign investors in Russia can work with regional authorities in Russia to actively reduce their tax bills. Although there are regional differences, such authorities in Russia have the right to reduce their regional allocation of profit tax of 18 percent to 13.5 percent (a minimum overall tax rate of 15.5 percent, including the 2 percent federal portion), and provide a reduced rate or exemption from property tax chargeable at the maximum rate of 2.2 percent of the cadastral or residual value of fixed assets (depending on regional legislation).

Other incentives and grants are also available in a variety of regions (e.g. land tax incentives and subsidies for interest on loans). Such exemptions are normally conditional on specific investment criteria in the region being met.

Movable property recorded in statutory books as fixed assets starting from January 1, 2013 is not subject to property tax (except for the movable property that has been acquired as a result of the reorganization or the liquidation of legal entities, as well as a result of the transfer thereof between affiliated parties). Therefore, regional incentives might bring benefits in the event of significant investments being made in immovable property or sufficient taxable profit during the period that the incentives are applied (usually the first three to eight years). Continue reading…

Sanctions, Tanks, and Low GDP Growth: Not Russia, but China in 1989

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sanctionsThis year, Dezan Shira & Associates celebrates its 25th anniversary; I started the practice as a small, three person outfit, operating out of my bedroom in Shenzhen in November 1992. Just two and a half years prior to this, China had gone through the convulsions of the Tiananmen Square “incident”, where tanks had entered Beijing and faced down a student population demanding democratic rights. For a few days, the entire destiny of what is now modern China was in the balance. The Communist Party of China (CPC) ordered a crackdown on the unrest and the window for revolution passed. An initially uneasy, but then progressive peace returned. Today’s China is largely built on those few days, and it is worth – in historical context – to recall that the Soviet Union had collapsed just two years earlier. While many were supportive of the unfortunate, democratic wishing students, no one was ever able to suggest what the alternative to the CPC would be. China had teetered on the verge of splitting apart, and there have been provinces in China’s history that have at one time or another declared independence. China today would look very different had the CPC fallen in 1989.

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Russian Ministerial Support For The “KryptoRuble” & Blockchain Technologies

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ruble-bitcoinRussian First Deputy Prime Minister Igor Shuvalov said on Wednesday that he supported cryptocurrencies and would welcome the appearance of the Russian “Kryptoruble”.

“I am a supporter of cryptocurrencies, I think that there should be the Kryptoruble. But this is a complicated issue. At a working group on the blockchain we agreed that we would proceed with caution, but would not drag out the process.”

Shuvalov added that the Russian government, the Central Bank, and the Federal Security Service were working on the security implications of the introduction of this currency, and added that the advance of cryptocurrencies could not be stopped, but they had to be introduced in such a way that would boost the national economy rather than weaken it. Russian President Vladimir Putin said in late July he was “cautious” about the usage of cryptocurrencies since the area was not well regulated.

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Eurasian Economic Union Grants Moldova Observer Status

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moldovaThe member-states of the Eurasian Economic Union (EAEU) have endorsed Moldova’s application for observer status within the organization, Kyrgyz President Almazbek Atambayev said at the meeting of the Supreme Eurasian Economic Council on Friday.

“It has been decided to welcome and endorse Moldova’s application,” he said, adding that the decision on granting the country a new status “has been approved under the established procedure.” The Presidents of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, and Russia are participating in the meeting of the Supreme Eurasian Economic Council in Bishkek.

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Eurasian Development Bank Taking on Sanctions-Hit Financing Projects

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eurasiondevelopmentbankThe Eurasian Development Bank (EDB) is continuing projects initially led by foreign banks but currently suspended due to anti-Russia sanctions, Dmitry Pankin, the chairman of the EDB Management Board, said on Friday.  Speaking on the sidelines of the Eurasian Week international forum in Astana, Pankin said that the EDB may take the opportunity to take up those projects that cannot be run by foreign banks. “The anti-Russian sanctions have two sides for us. There are factors that restrict work, and there are those that open up new opportunities and should be used,” Pankin said.

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EAEU Prioritizes Free Trade Agreement with Singapore

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Russian Deputy PM Igor Shuvalov with Singapore Deputy PM Tharman Shanmugaratnam

Russian Deputy PM Igor Shuvalov with Singapore Deputy PM Tharman Shanmugaratnam

The Eurasian Economic Union (EAEU) has prioritized a Free Trade Agreement (FTA) with Singapore following “several ASEAN nations” approaching the EAEU for Free Trade Agreements at the Russia-ASEAN summit in Sochi last May. The Singapore deal may be concluded by the end of this year. The EAEU is a free trade bloc that includes Armenia, Belarus, Kazakhstan, Krygyzstan, and Russia. It essentially extends from the borders of China to the borders of the European Union.

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Импорт Продуктов Питания и Напитков в КНР: Тенденции и Лицензирование.

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Edited by Maria Kotova
Translated by Veronika Petruleva

fish-meatНесомненно растущий потенциал рынка Китая привлекает все больше иностранных инвестиций, особенно в пищевую промышленность (Food & Beverage Industry). Достаточно взглянуть на статистику чтобы понять, что КНР – крупнейший потребитель импортной пищевой продукции. Около 71% респондентов среди китайского населения в 2015 году посчитало безопасность питания приоритетным вопросом для нации, полагая, что импортная продукция более качественная, чем произведённая в стране. Рост доходов населения также дает основу полагать, что у китайцев есть средства на приобретение иностранных продуктов, а недавние законодательные нововведения расширяют возможности для более простого выхода на локальный рынок Поднебесной.

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Russia Cuts Admin Requirement for Local Government Business Inspections by 70%

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russia-docsThe Kremlin has issued a decree that local government inspections of businesses in Russia should be decreased by 70 percent following complaints from entrepreneurs that local government administration checks were making their businesses inefficient.

The order reads: “The government of the Russian Federation jointly with the General Prosecutor of the Russian Federation: To ensure the inclusion in the legislation of the Russian Federation changes providing for the limiting the number of unscheduled inspections carried out by each authority control (supervision) in respect of legal entities and individual entrepreneurs annually (no more than 30 percent of the number of planned inspections envisaged by the annual plan of scheduled inspections of each body of control (supervision).”

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