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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).

How to Identify Points of Non-Resource Economic Growth?

At present, it is particularly important for Russia to develop high-tech technologies to ensure import substitution and form long-term sources of economic growth. But how to determine in which regions there are more favorable conditions for development of high-tech industries?

On the Tax Policy in the Oil Sector

Objective deterioration of oil production conditions requires using more sophisticated taxation instruments. The most effective form of taxation of oil production is the taxation of net profit which can be implemented by introducing a special excess profits tax with progressive tax rate determined by the level of project profitability.

Developing a Numerical Model of Russian Oil and Oil Products Market

In 2013–2014, the Government set a course for reforming the taxation of the oil industry, which the expert community conditionally called “tax maneuver.”

The Risks of Ruble Depreciation Remain Quite High

On 14 March, the head of Russian Ministry of Economic Development, Maksim Oreshkin, stated that the ruble exchange rate exceeds the fundamental values corresponding to the balance of payments of the Russian Federation, which contributes to the consumer price dynamics being slower than expected.