Smaller Russian banks struggle for additional capital

Published: 09 December, 2011, 17:03

RIA Novosti / Alexey Kudenko

TAGS: Russian economy, Banking, Finance

New Central Bank requirements for a minimum of capital could put dozens smaller Russian banks out of business. They have less than a month left to bring their capital up to mandatory 180 million rubles by January 1, 2012

­According to Bank of Russia’s data, 69 of 151 banks could have their licenses revoked if they fail to meet the requirement. Together they need about 3,5 billion roubles.

“If the banks fail to reach the required minimum of capital, they have to reorganize themselves intonon-bank credit companies or to shut down”, says Yury Kravchenko, analyst from the Veles Capital company.

But not all of these banks face serous risk. Smaller banks that feel a major lack of capital will have difficulties in reaching the required minimum, the analyst expects. “The owners have to use their own assets, because third part investors are usually not interested in them”, Mr Kravchenko added.

Banks who miss out the target by less than 10 million roubles, and those with deals in place to attract additional capital will be given 'mulligan' by the regulator.

Having survived this hurdle, the banks left operating after January 1, face an even bigger one. The Russian Government wants to almost double minimum capital to 300 million roubles by 2015.

Today: 14:03

While the EU struggles with the debt crisis which has almost spiralled out of control Russia is trying to distance itself by expanding export opportunities. Herbert Moos CFO of VTB says Russia will do well to learn from the EU experience.

Today: 17:42

Russian mobile operator Megafon has bought Ugratel, the largest telecommunication company in the Ural region, for $80 million.

View the original article here

Homeless Occupy the woods – RT revisits Tent City

While Occupy Wall Street tents have been popping up all across the US, homeless people have been forced to Occupy a camp in the woods over the last five years.

­RT reports from New Jersey’s Tent City – and finds out why the homeless haven’t been joining the protests.

Tent cities of outrage have been popping up all across the US over the last months. Less visible to the public eye – and much quieter – is a Tent City of hopelessness – around for half a decade.

RT visited a village tucked away in the woods of New Jersey for the third time in about two years. The number of homeless turning to the camp for hospitality keeps growing. The population of Tent City turned out to have tripled compared to when it was first set up.

The place is home to about 70 homeless people who have nowhere else to go.

A third of the residents are women. They are ashamed to leave their tents in the presence of a camera.

The mood here has become increasingly politicized over the last year.

“The politicians and the government has not protected the American people, they've allowed outsourcing to run rampant, and it's benefiting companies, corporations are making more money than they've ever made before. The American worker is suffering at the expense of the agenda of the politicians,” said the community’s leader, Minister Steven Brigham.

46-year-old Angelo Villanueva – with a love for kung fu – lost everything in the recession and has never found a full-time job again.

“It seems to be a growing trend unfortunately. The politicians better take note and try to stop their bickering and do something to stop this, or slow it down, or make it better,” said the former brick layer.

Angelo calls himself a victim of the economy, and the woods – home. So does Charles Errickson, who has been homeless for the last two years. He used to play the harmonica, but this is no longer.

“There might be a certain degree of depression that might set in. Just the whole situation. Especially now, when it's getting cooler out and the days are shorter,” said Charles.

As if the sorrow of these people wasn't enough, officials have been trying to evict the homeless out of the camp.

“They try to force out the poor. I call it discrimination by design. For the sake of pushing the poor out and encouraging the wealthier, the people with money to move into your town,” said Minister Brigham.

Wealth inequality has been at the root of the anger for Occupy Wall Street protesters, but some of these homeless seem far from the demonstrators.

“I support them, but our situation is a lot different. We are homeless. We have nowhere to sleep. I am sure they have places to go when they are done their little rally,” said Angelo Villanueva.

“We've got our own Occupy movement in Lakewood. It's more of an occupy movement out of necessity,” said the community leader Steve Brigham.

Those who volunteer to help at the camp are not wealthy. Like Donald Daily, who is an artist on disability. He was also broke once. The neglect of the homeless is no surprise to him.

“Quite frankly, they don't want to know that these people are here – because they are ugly. They are faceless. They are nameless,” said Donald.

Many of the residents of Tent City used to blame themselves for their misfortune. But with 3.5 million Americans experiencing homelessness every year or over 700,000 people on any given night – their message for politicians has changed.

“Open your eyes. Open your eyes. All this help that we give out all over the world, we need help here,” said Tent City cook David Jones.

As night settles, help is far from the woods – all they have left are their roosters that live in their trees to keep them company, but each homeless resident faces a hard truth by himself.

View the original article here

Tweeting at large in theaters

02.12, 17:04

The world’s most popular micro-blogging platform has launched a special project aimed at those addicted to trading on the markets. Called TwiStock, it is quickly becoming a hit among Russian Twitter users.

01.11, 22:09

If you are wondering how to get your grandparents to start using Twitter, a Ukrainian IT specialist may have found the answer.

Published: 09 December, 2011, 19:02

Tweeting a performance is becoming the latest craze in America

TAGS: Show, Theater, USA, Performance

A mobile phone ringing in the middle of Verdi’s Otello will outrage actors and annoy your neighbors. Several theaters in America, however, have allowed culture lovers to use their twitters during live performances.

­Ohio’s Dayton Opera, the Lyric Opera in Kansas and the Goodspeed Opera House in East Haddam are among the forward-looking companies that have even allocated special “tweet seats” designed for those who are desperate to tweet.

The recent trend has proved so popular that according to the Los Angeles Times, tweet seats may soon be coming right the way to Broadway.

Most performances in Russian theaters start with strict or humorous announcements urging audience members to switch off their phones. However, many ignore such requests and continue tapping at their mobile devices, disturbing non-tweeting theater goers with cellphone glare and repetitive sounds.

Today: 17:01

One of the world’s most celebrated blondes, Claudia Schiffer, is no stranger to stalkers, with hordes of admirers seeking her company. But this time around her new suitor is Russian, and is even claiming to be the father of her daughter.

View the original article here

Investor’s dream: Russia axes profit tax to zero

17.11, 01:40

Meeting WTO standards may come as a heavy burden to some industries, but the Russian government is ready to help deal with it to provide a smooth transition.

Russia and WTO 07.11, 18:26

Business phenomenon Oleg Tinkov shared with RT secrets of his success, explaining how enterprises outside of the energy sector can flourish in Russia.

18.10, 22:43

Moscow is reportedly planning to follow Paris and Rome's example and tax its tourists €1-3 per day.

//

Published: 17 November, 2011, 23:16

RIA Novosti/Igor Zarembo

(30.6Mb) embed video
To include this chart in your web page, paste the following HTML tag into your web page HTML:

TAGS: Investment, Regional development, Russia and the global economy, Prime Time Russia, Modernization, Natalia Novikova, Anya Fedorova, Neil Harvey, Innovation

In a radical step to boost certain areas of its economy, Russia has abolished profit taxes for companies in the medical and education sectors.

The authorities believe the move will help attract more investment and inspire entrepreneurs to set up new private schools and hospitals. Such changes, it is hoped, will increase competitiveness, lower prices and generally improve the quality of services.

The law on zero taxes for these kinds of entrepreneurs was signed last year, but it was not until now that the government finally approved the list of services.Now the organizations providing the listed services will be exempt from the 20 per cent profit-tax.

Among the tax-free services are dietary science, exercise therapy, sports medicine, massage, general practice and family medicine, cosmetology, manual therapy, dentistry, facial surgery, medical tests, as well as organ and sperm transportation.

In the educational sector, the list includes major programs, from kindergartens all the way up to higher education.

The only condition is that the organizations are properly certified in their field.

Economy specialists say that while the measure could be highly effective in the short term, there is a need for something bigger in the long term.

“I think this is a good step,” Tatyana Komissarova, from the Higher Schools of Economics, told RT. “But the main burden on a company is not profit tax, but income tax. If we are talking about a company with many highly qualified employees, salary costs can amount to 50 per cent of total expenses. Can you imagine that? I wish they would eliminate income tax too.”

17.11, 22:52

An unprecedented number of British businessmen are enquiring about setting up business in Russia, says head of Russo-British Chamber of Commerce Chris Gilbert.

View the original article here

Vanilla and brandy – a coalition cocktail

02.12, 21:39

RT instructs poetry lovers how to mix up the cocktail that inspired renowned Russian poet into writing his best verse.

07.12, 22:13

RT’s food guru shows you how to make a perfect milky-white dessert in French style – and restaurant quality.

30.11, 21:32

Learn how to make magical meals from everyday ingredients with the help of Moscow’s top chef.

Published: 09 December, 2011, 23:01

RT mixologist Bek Narzi

(21.0Mb) embed video
To include this chart in your web page, paste the following HTML tag into your web page HTML:

TAGS: Prime Recipe, Prime Time Russia, Anya Fedorova, Neil Harvey

Take in the good vibes as RT’s mixologist shakes up a cocktail that truly captures a moment in time.

Today: 22:44

As a retrospective of Ruth Orkin's works opens at the Lumiere Brothers House of Photography, RT talked to the exhibition’s curator about Orkin’s American life and Russian roots.

View the original article here

Petrov loses his Formula 1 spot

06.12, 16:36

Lotus Renault have reportedly selected a second driver for next season, which means the days of Russia’s only Formula One representative, Vitaly Petrov, in the British team, are numbered.

29.11, 14:17

Russia’s Formula One driver Vitaly Petrov’s manager Oksana Kosachenko is heading to Lotus-Renault headquarters in the UK on Tuesday evening to hold talks over Petrov’s future with the team.

27.11, 16:02

Formula One’s Lotus-Renault boss Eric Boullier has stated his team will make a decision on its 2012 driver line-up within the fortnight.

17.11, 18:31

Vitaly Petrov’s communication with the media will be limited after the first Russian in F1 said in an interview that he has had enough of his Lotus Renault team putting all the blame for poor results on the drivers.

27.03, 13:04

Vitaly Petrov has become the first ever Russian to ascend the Formula 1 podium after finishing third at the season-opening Australian Grand Prix.

Published: 09 December, 2011, 13:04
Edited: 09 December, 2011, 20:05

Russian racing driver, Vitaly Petrov. (Reuters / Caren Firouz)

TAGS: Formula 1, Petrov, Motorsports

Russia’s first-ever Formula 1 driver, Vitaly Petrov, won’t be racing for Lotus Renault next season after the team officially confirmed Romain Grosjean as Kimi Raikkonen’s partner for 2012.

­Petrov is forced out of the team, despite having a contract until the end of 2012.

Grosjean, the reigning GP2 series champion, has made two appearances for Lotus Renualt this season, racing in Friday’s sessions in Abu Dhabi and Brazil.

The Frenchman is a client of Gravity Management company, which is headed by none other than Lotus Renault team principal, Eric Boullier.

The 25-year-old driver has also received strong financial backing from French oil company Total and the car manufacturer, Renault.    

“I’m delighted that Romain Grosjean will partner Kimi next year,” Eric Boullier told his team’s official website. “Romain has shown a lot of maturity in the past 12 months both through his GP2 Series victory and his development as a third driver with us.”

“I would like to thank Vitaly Petrov and Bruno Senna for their contribution to the team’s performance this year and I wish them all the best for the future,” he added.

Vitaly Petrov has been with Lotus Renault since the start of the 2010 season, grabbing 64 career points and mounting the podium after a third-place finish at this year’s Australian GP.

“First of all, I’d like to thank all our partners and fans for the support Vitaly received during those two seasons,” Oksana Kosachenko, Petrov’s manager, told Sportbox.ru. “I stress that we have an excellent relationship with the Lotus Renault team, and together with them we have now come up with another program for Vitaly. We’ll announce it before the New Year. So it's not the end of Petrov's career, but his transition into a new phase.”

Earlier reports sent 27-year-old Petrov to lowly Marussia Virgin, but the Russian team has already announced their drivers’ list for the next season.

08.12, 12:35

Formula 1’s governing body, the FIA, has confirmed an unchanged 20-race calendar for the next season, despite lingering doubts over the GPs in Bahrain and the United States.

View the original article here