More Bad News for Russia

[BillyB]

this is not an issue foremost in the minds of the American public, most barely even know there is bloodshed....

I talked to a soldier last week who said he didn't even know there were problems in Ukraine. After 2 tours in Iraq, he said he doesn't pay attention to the news anymore but will happily do the job the military asks of him. Lately, I rarely see any news about Ukraine or Russia on the front page of American news outlets. Americans aren't emotionally attached to what is happening over there and don't care to read it. Maybe if Putin talks about nuking us more often, that will get American's attention.

we will come in and mop up afterwords, which is what we normally do with these European issues. 

In the end, that is probably what's going to happen. We will not only have to help Ukraine's economy, we will have to rebuild all the cities Russia and their thugs are destroying and bury the dead. The longer we wait, the more expensive and deadlier it's going to get.

It appears doubtful the USA is going to do much

I've been reading about the December sanctions and aid package for Ukraine a bipartisan Congress approved. Obama is weakening his support for Ukraine and didn't agree with it. Congress had to water down the sanctions so much to encourage Obama not to veto. Yes, Obama threatened to veto sanctions against Russia and refuse aid to Ukraine if he believe it to be too much.


The sanctions are supposed to target Russia's main arms exporter but now Obama gets to choose 3 items from a menu of 9 to apply on those getting sanctioned. Some of the items he gets to choose from are silly such as denying American visas to those associated with companies being sanctioned. I guess no vacation in Hawaii for them.


There are waivers in the bill that allows Obama to continue to buy overpriced Russian arms to supply our allies with under the disguise those arms will be used against terrorists. Recently we've been paying $10 million+ over list prices for Russian choppers. For some reason Obama and the generals he appointed say we don't have military equipment qualified to fight terrorists in Afghanistan and are intent on buying overpriced Russian military hardware.


The bill also provides for $350 million in support that includes arms but Obama is allowed lots of discretion.  It is not clear how much of the authority granted under the legislation Obama will invoke if he ever invokes but he made it clear he doesn't want to get too far ahead of our EU allies or piss Russia off. I seriously doubt the West will get tough with Russia anytime soon especially with a weak leader of the free world that refuses to take the lead. Upon signing the law, the President stated that he does not intend to implement any sanctions authorized by the statute at this time. Sorry Ukraine. I didn't vote for him.

[Gator]

Ah, understood and have no doubt this was happening on both sides.  It certainly is possible Brezinky is more about stroking his ego so to speak.

Good to see you listened to FP's reasoning.  RWD needs more such open-mindedness, even if you are skeptical of mainstream media. 

Regarding your earlier post of a interview with Brezinsky, Carter did not  start the US covert operations in Afghanistan.   Such had long been active albeit before Carter took office.    The Soviets intervened militarily in December 1979 not because of the small CIA program,  but to quell the widespread Islamist fundamentalist rebellion against the Soviet-friendly Afghani government and USSR advisers.  Unlike the Russian intervention in Ukraine, the Soviet military was "invited" by the Marxist Afghani government. 

[BillyB]

Looks like Belarus is preparing in advance for Russian bullsh*t.  Good for them!

Don't compliment them so fast. Little green men have been spotted in Belarus months ago an Russia didn't attack but those green men are there for a reason. How far away are rebels from Kiev now? How far is Belarus from Kiev? Location, location, location.


http://www.interpretermag.com/putin
-making-belarus-into-base-for-attacking
-kyiv-minsk-analyst-says/


http://nr2.com.ua/News/world_
and_russia/V-Gomele-poyavilis
-zelenye-chelovechki-FOTO-86474.html

[fathertime]

I talked to a soldier last week who said he didn't even know there were problems in Ukraine. After 2 tours in Iraq, he said he doesn't pay attention to the news anymore but will happily do the job the military asks of him. Lately, I rarely see any news about Ukraine or Russia on the front page of American news outlets. Americans aren't emotionally attached to what is happening over there and don't care to read it. Maybe if Putin talks about nuking us more often, that will get American's attention.

When I saw the chemical weapons discussion (which has gone nowhere in western media), one of the 1st things I thought was it was another attempt to get American attention. If indeed that was the reason for it being raised, it has failed so far, but there will be other efforts/gimmicks.   


I'm not surprised regarding your experience with the soldier....very few people I come across have the first clue about Ukraine and the issues there. 


Fathertime! 

[AkMike]

I'm not surprised regarding your experience with the soldier....very few people I come across have the first clue about Ukraine and the issues there. 


Fathertime!

So is it any wonder that you didn't see anything in the media about gas? When was the last time that the 6:00 news even mentioned Ukraine to the general public? A month ago or more?

[fathertime]

So is it any wonder that you didn't see anything in the media about gas? When was the last time that the 6:00 news even mentioned Ukraine to the general public? A month ago or more?

Clearly Ukraine is off the radar screen in terms of  very much network news time.   Also nothing about gas attacks is even mentioned on the websites. Some might say that means it likely didn't happen, others might say it is a conspiracy in the western media.


Fathertime! 

[AkMike]

I did see a recent video that showed a wounded soldier with his leg twitching a fair amount. But that was a day or so before the report.
 

[lordtiberius]

Newsrooms want to protect Obama and this story doesn't make Obama look good.  Fox and the right wing media serve special or corporate interests and Russia is a $ 2 Billion economy, Ukraine about 10% of that.  Also Ukrainian news reporting is hard to report.  It takes a cultural understanding that most Americans don't get.  More Americans know where Beruit or Ramadi is to Mariupol or Lugansk.

But Ukraine and more importantly Russia will be an issue in 2016.  Clinton will be more hawkish in her statements as she has to create space between her photo opportunity with Lavrov and present realties on the ground.  The GOP and its crowd of candidates will battle it out.  And journalists who never asked Obama or his very capable State Department such questions will pitch more fast balls than Randy Johnson after a strong cup of coffee.

[Brasscasing]

Just because Russian media reports the same thing Western media reports doesn't mean it's all propaganda. Russian media is capable of telling the truth sometimes and Western media is capable of their own free thinking without Russian media's help.

Not if they're being untruthful as they are being in reporting the Pentagon was defying Congress. They weren't.

I did it before and I'll do it again by posting links that report Congress wanted the Pentagon to terminate the contracts, not honoring existing contracts, not pay, and not take delivery of unfinished, overpriced helicopters.


http://www.defenseone.com/management/2014/05/pure-home-state-politics-behind-russian-helicopter-opposition/84970/


http://www.wsj.com/articles/SB10001424127887324170004578636323792403926


http://www.foxnews.com/politics/2014/05/18/senators-push-to-cut-off-pentagon-contracts-with-russia-amid-ukraine-crisis/

And that's exactly what the Pentagon did, terminate the contracts. All your links support that.

You forgot to mention the small print on that last round of sanctions. The bill authorizes sanctions against Russia's defense and energy industries, including the arms exporter Rosoboronexport. The president may waive them for national security reasons. Those helicopters were bought to fight terrorists, which is a national security issue, because they're the only ones Afghan pilots can fly but for some reason we still have to pay for their training. Go figure. The President and the generals he appointed will buy more overpriced products from Rosoboronexport, Russia's main arms dealer, because the Prez added a waiver to the sanctions for a reason. He needs to get money into someone's hands who lives in Russia.


http://www.rferl.org/content/ukraine-aid-bill-heads-to-obama/26743453.html

All Bills and Laws have these type of provisions/clauses included. I have nothing to add to paying more than some thought but it seems that's the Pentagon way, Republican or Democrat administrations. It'd be nice for the taxpayer if they didn't but it is what it is.

If Obama weren't into politics and participated on this forum, I'd swear he'd be pro-Putin. Although our intelligence says Russia was always doing things counter productive to democracy and American interests, Obama hit the reset button with them trying to be their friend and reward them with profitable arms deals. Helicopters aren't the only thing we are buying from Russia. Obama also rewards Iran richly just to lure them to negotiating table. Iran is the same country that supplied weapons to terrorists to fight our troops in the Middle East. Obama likes to make friends in all the wrong places. Reagan would let Israel bomb Iran's nuke plant just as he let them do Iraq's. It would be cheaper and we'll sleep better when fanatics, who kill our troops, aren't rewarded. I think the only reason Obama is acting(weakly) against Russia now, is to make a showing he cares about people in the free world. After all, he is their leader. I don't think he'll shed a tear if Ukraine is lost to Russia.

Yep, like I've been saying for years history is going to not look kindly on his administration. The world has become a far more dangerous place in the last six years and the scary part is there's two more to go.

That I totally agree with you on. Every time Russia acts aggressive, the West strongly urges them to stop. They sound like a broken record repeating themselves with the same words, different day with no results. They don't know how to get results. They haven't got the slightest clue that their tough talk isn't going to stop Putin.

It's very frustrating to me personally. In the mid 90s I started noticing erosion in the social fabric and political order in the West. My wife at the time and friends used to say I was being the cynic when I'd comment on it. They don't say that anymore.

President Obama is not the cause of the disease, he's just another symptom. I stopped criticizing his administration after the second election because he's what the American public wants. He's the pied piper leading them off the cliff.

We the people (of the west) are hastening our own downfall. We're the ones marching to our own destruction. When a celebrity's latest Botox treatment gets top billing over an aggressor nation mass murdering citizens of their neighboring countries in the national news because that's what the polling shows the viewer's want; we have problems.

What's happening now is what happened to the Romans. They imploded because their own self indulgence consumed them.

Based on what I've witnessed in the west's response to the holocaust being perpetrated on the Ukrainian people by Russia, maybe it's time to let this bloated, corrupt, lacksadaisical, self indulgent civilization of ours fall. Maybe it's time to let the radical muslims dictate how we should live and worship. Maybe it's time to let the criminal dictators like Putin run rampant wholesale murdering innocents.

Then when it's too late to do anything about it and these animals are at gates and this self absorbed, lackadaisical, whinging, me first society looks to those like us who tried to raise the alarm, for protection and to make it right again. We'll have to say "Sorry, there's nothing more we can do. We tried to warn you but you wouldn't listen."

Brass

[AkMike]

OUCH! That'd leave a mark!


In Europe, discuss the following sanctions against Russia.
Klimkin says that Europe is seriously considering to strengthen sanctions against Russia.
 In Europe seriously discussing the possibility of disconnection from the international banking system information transfer SWIFT.

"I spent one day in Davos, met with many heads after a meeting in Berlin. Even there are counting on the fact that Russia by the end of this year may be 6-8% drop in GDP. If applied shutdown SWIFT, then expects the Russian economy collapse "- Klimkin said.

Recently the European Parliament in its resolution officially approved urged the EU to consider the possibility of exclusion from civil nuclear cooperation and system SWIFT.

In addition, according to Klimkina, EU discuss expanding the list of persons who will be denied entry to the EU, as well as frozen assets in European banks. It is also possible extension of the list of Russian companies on which sanctions are implemented.

The Foreign Minister said that EU High Representative for Foreign Affairs and Security Policy Federica Mogherini clearly said that Russia expects the deterioration of relations with the EU .

"No one says no to say nothing about the sanction and the possible strengthening of sanctions and help Ukraine," - said Klimkin.

Recall  Moherini convene an extraordinary Council of EU foreign ministers on the situation in Ukraine.

[AC]

President Obama is not the cause of the disease, he's just another symptom. I stopped criticizing his administration after the second election because he's what the American public wants. He's the pied piper leading them off the cliff.

We the people (of the west) are hastening our own downfall. We're the ones marching to our own destruction. When a celebrity's latest Botox treatment gets top billing over an aggressor nation mass murdering citizens of their neighboring countries in the national news because that's what the polling shows the viewer's want; we have problems.

What's happening now is what happened to the Romans. They imploded because their own self indulgence consumed them.

Based on what I've witnessed in the west's response to the holocaust being perpetrated on the Ukrainian people by Russia, maybe it's time to let this bloated, corrupt, lacksadaisical, self indulgent civilization of ours fall. Maybe it's time to let the radical muslims dictate how we should live and worship. Maybe it's time to let the criminal dictators like Putin run rampant wholesale murdering innocents.

Then when it's too late to do anything about it and these animals are at gates and this self absorbed, lackadaisical, whinging, me first society looks to those like us who tried to raise the alarm, for protection and to make it right again. We'll have to say "Sorry, there's nothing more we can do. We tried to warn you but you wouldn't listen."

Brass

This sounds like something I would write, surprised you feel about the same.  I just gave up on it and am resigned that the World will go on once we implode like the Romans (prolly after my lifetime, but could be a lot sooner if Putin forces WWIII).  A few people can see it and care but most don't.  I'm going back to my farm to plow some fields...(goodbye Yellow Brick road).

[AkMike]

Ask and ye shall receive!


Back on June 10, 2014, Olga Abdurashitova, a resident of Mariupol and a big fan of “Russki Mir,” the concept of a “Russian world” tearfully asked Russian President Vladimir Putin to bring troops into Ukraine on her page in VKontakte, a Russian version of Facebook.

Putin obviously heard her request and came. On January 24, Abdurashitova was killed when a rocket launched from a Russian GRAD hit her city, fired by Russian forces. Ukrainian blogger Fedor Kulikov found the dead pro-Russian separatist in a list of those killed in the shelling of Mariupol. As requested, the Russians came.


The dead body of this Russki Mir fan was found after shelling hit vulytsia Kyivska near the Kyiv market in Mariupol. Most probably, she went to the market to buy food, Ukrainian food, of course. Life can be cruel, but sometimes it is also just. This person got what she asked for, Fedor Kulikov commented in his FB page.

http://euromaidanpress.com

[BillyB]

And that's exactly what the Pentagon did, terminate the contracts. All your links support that.

None of my links or your links support that. The Pentagon continued to honor all existing contracts to the very end, accepted delivery of unfinished helicopters and paid Russia even after Russia supplied weapons to Assad, Russia's aggression in Ukraine, and 2 requests by Congress to terminate the contracts immediately, send no money for arms, and accept no delivery of unfinished overpriced helicopters from Russia. The Pentagon/Obama continued to accept delivery and send payment up to a few months ago to fully honor the contracts they signed with Russia's main arms dealer. The language in the recent sanctions leaves the door open for Obama to buy more Russian arms. Obama could very well be motivating Putin right now by putting money in his pocket.


http://www.janes.com/article/45317/afghanistan-gets-final-mi-17s

[lordtiberius]

from Kyiv Post:


http://www.kyivpost.com/content/ukraine/pavel-felgenhauer-putins-aim-is-to-destroy-ukraines-independence-defeat-west-378372.html


Pavel Felgenhauer, 63, is a leading independent Russian military analyst and commentator who is known for his publications critical of Russia’s political and military leadership.

The Russian military who is helping them, they don’t like each other. The Donbas warloards are considered scum.

“The thing is the war won’t stop soon. It’s a very typical proxy war. Such proxy conflicts can last almost indefinitely like the war in Vietnam, like the war in Afghanistan, like the Middle East conflict. The battlefield is the Donbas. But it’s not the source of the battle. The clashes come from the Russian supply of men and materiel. When the source dies out, the war will end.

[sleepycat]

Oh dear!

Russia trying to scrape the bottom of the wheelbarrow to fund infrastructure projects...

http://finance.yahoo.com/news/russia-rethink-infrastructure-projects-fund-092105450.html

[AkMike]

The old babuska's won't like to see their pension money propping up the government nor private businesses when they are forced to eat dirt.

[AkMike]

The cash from Russia dries up. 

Russia withdrew from Transnistria allowances



Russia for the first time refused to Transnistria in financial assistance, which in Moscow asked the leader of the region Yevgeny Shevchuk. This is "NG" said a source in the Supreme Council of Transnistria. Tiraspol expects to receive $ 100 million. To effect payment of pensions and other social obligations. According to the director of the Moldovan Center for Strategic Research and Policy Consulting Anatol Tsaranu is dictated by the change in the Kremlin's attitude to the breakaway republic, which may give way in exchange for recognition of Russian Crimea.

The fact that in Transnistria there is no money and no money to pay salaries and pensions, "NG" has already written (see.  the number of 01/20/15 ). And said that the delegation will visit Moscow to ask the unrecognized republic of $ 100 million., Which Transnistrian authorities expect to close holes in the social and economic spheres. Source "NG" in the Supreme Council of Transnistria said that the requests Transnistrians in the Russian government refused. According to a source, "in Moscow have expressed dissatisfaction with the charter flights that fly Transnistrian President Yevgeny Shevchuk, and referred to the economic difficulties in Russia."

Anatol Tsaranu remarked, "Nezavisimaya Gazeta" that "Moscow, for everyone, my views on Transnistria, which used to be called an outpost on the way to the Balkans, and now such was the Crimea." "Russia is in a difficult situation due to the Crimea, the situation in the east of Ukraine, as well as the economic crisis in Russia itself. Unrecognized Transnistria becomes a burden for Moscow.

The more the economy of Transnistria in critical condition - there are functioning or partial load range of businesses, which are also working on a cheap or free Russian energy resources. Tiraspol for gas should RF $ 5 billion. Electricity is supplied to local factories with the Moldovan Power Station, which - the Russian owner. Besides, have not forgotten scandals associated with Russian money and family of former Transnistrian leader Igor Smirnov, which allows the public to believe that and now things are not better, "- said Tsaranu.

The expert noted that the media reported that Russian investors have started to leave Transnistria, indicating that the decrease in the profitability of enterprises, as well as to change Moscow's position in relation to the pro-Russian region

http://www.ng.ru/cis/2015-01-26/1_pridnestrovie.html

[AkMike]

Sanctions must be starting to really hurt.

Peskov called "economic blackmail" threat of new sanctions against Russia



13:20  01/26/2015   Source: Russian news agency "Tass"   

 The threat of new sanctions against Russia because of the deterioration of the situation in Ukraine is not justified "economic blackmail". This opinion was expressed to journalists the press secretary of the President of Russia Dmitry Peskov .  "Russia will never agree with such threats, and even more so these threats and blackmail this never led and will lead to the fact that Russia under this oppression will change its consistent and well-known position, "- he said.  A Kremlin spokesman said that the resumption "on the background of any aggravation of the situation (in Ukraine)" threats to Russia in terms of enhancing the economic pressure - "this is absolutely destructive, unjustified and, ultimately, short-sighted line ".  "Instead of increasing the pressure on those who refuse to engage in dialogue and resolve the conflict peacefully, we hear the resumption of economic blackmail against Russia," - stated Sands, commenting, in particular, information on the possibility of disconnection of the Russian Federation on the banking system SWIFT .

http://www.ng.ru/news/491819.html

[pokerintherear]

Not if they're being untruthful as they are being in reporting the Pentagon was defying Congress. They weren't.

And that's exactly what the Pentagon did, terminate the contracts. All your links support that.

All Bills and Laws have these type of provisions/clauses included. I have nothing to add to paying more than some thought but it seems that's the Pentagon way, Republican or Democrat administrations. It'd be nice for the taxpayer if they didn't but it is what it is.

Yep, like I've been saying for years history is going to not look kindly on his administration. The world has become a far more dangerous place in the last six years and the scary part is there's two more to go.

It's very frustrating to me personally. In the mid 90s I started noticing erosion in the social fabric and political order in the West. My wife at the time and friends used to say I was being the cynic when I'd comment on it. They don't say that anymore.

President Obama is not the cause of the disease, he's just another symptom. I stopped criticizing his administration after the second election because he's what the American public wants. He's the pied piper leading them off the cliff.

We the people (of the west) are hastening our own downfall. We're the ones marching to our own destruction. When a celebrity's latest Botox treatment gets top billing over an aggressor nation mass murdering citizens of their neighboring countries in the national news because that's what the polling shows the viewer's want; we have problems.

What's happening now is what happened to the Romans. They imploded because their own self indulgence consumed them.

Based on what I've witnessed in the west's response to the holocaust being perpetrated on the Ukrainian people by Russia, maybe it's time to let this bloated, corrupt, lacksadaisical, self indulgent civilization of ours fall. Maybe it's time to let the radical muslims dictate how we should live and worship. Maybe it's time to let the criminal dictators like Putin run rampant wholesale murdering innocents.

Then when it's too late to do anything about it and these animals are at gates and this self absorbed, lackadaisical, whinging, me first society looks to those like us who tried to raise the alarm, for protection and to make it right again. We'll have to say "Sorry, there's nothing more we can do. We tried to warn you but you wouldn't listen."

Brass

Very true

Don't feel alone. Many Americans think we are being lead off the cliff and there is nothing we can do about it. We have tried the first 4 years to expose our president for what he is. This was a lost cause. We have changed the majorities in Congress and they still sit back and allow him to go rogue. Another lost attempt to reign him in.

Many are amazed at how we are blatantly lied to on a daily basis and there are no consequences. Just watch a daily press briefing. They have no shame.

What it does show is how naive people can be about a mans character.

Eventually the American people will tire of this process and take matters into their own hands. 

[AkMike]

Too late many are already 'sheepleized' and trust the leaders. Very similar to Russians IMO.

[Taz]

Critical thinking isn't taught in school any more. My kids have been indoctrinated in school. They were taken on field trips that pretty much only supported the government being the answer to everything. The old Hillary Clinton BS of "It takes a village". Government is rarely the answer and when it is, it often is a very inefficient one.

I don't understand the sheeple who say the want more government when in the next breath they complain about how terrible government functions. I can't think of anything the US government does really well. Even national defense is a black hole of wasted money due to all the pork laden projects.

[lordtiberius]

even national defense is a black hole of wasted money due to all the pork laden projects.

The bureaucracy and political correctness is killing our war department.  At the depot I worked at managers were caught red handed by law enforcement stealing and selling the guns, optics and parts for drugs to get the town hooked on meth.  Does the IG or LTC of the base do anything?  No.  The hire back the managers involved while firing the whistleblowers and informants.

The Officer Corps is packed with risk averse conformists more concerned with ticket punching than killing the enemy and taking control.  That is why I am partly happy we aren't advising Ukraine.  We don't know how to win anymore or want to.

[AkMike]

S&P downgrades Russia's sovereign credit rating to below investment grade

Standard & Poor's on Monday downgraded Russia's sovereign credit rating to below investment grade, as the country's economy continues to weaken.

S&P slashed Russia's sovereign credit rating to BB+ from BBB- and said the outlook is negative, reflecting its view that Russia's monetary policy flexibility could diminish further.

This is the first time in more than 10 years that Russian sovereign debt has been rated
below investment grade, in what some call 'junk' territory.


It could not only harm Russia's image among investors, but also push up its borrowing costs, as many mainstream investment and pension funds have rules preventing them from buying anything not classed as investment grade.
 

The ratings agency said Russia's financial system is weakening and therefore limiting the Central Bank of Russia's (CBR's) ability to transmit monetary policy.


It sees the CBR facing "increasingly difficult monetary policy decisions while also trying to support sustainable GDP growth."

S&P said it could cut the rating again if "external and fiscal buffers deteriorate over the next 12 months" faster than it expects.

The U.S. dollar rose more than 5 percent against the ruble after the news broke.
http://www.cnbc.com/id/102355639#.

[AkMike]

Russian Ruble Falls After Tensions Flare Over Ukraine

The ruble and Russian stocks fell sharply on Monday, following a return to full-scale warfare in eastern Ukraine and threats of further Western sanctions against Russia.

At 7:25 p.m. in Moscow, the ruble was down 3 percent against the dollar to 66.23 and 3.5 percent weaker against the euro at 74.71.

Russian stocks were also down, with the ruble-based MICEX 2 percent lower at 1,639 points and the dollar-based RTS down 5 percent at 780 points.

Ukraine said on Monday that Russian-backed rebels were pushing forward with a new offensive, underscoring the final collapse of a flimsy cease-fire agreed last September.

This follows the killing of 30 civilians in Mariupol on Saturday, in what Kiev says was a rebel rocket attack.

Washington and Brussels are both considering new sanctions against Russia after accusing it of openly supporting the latest rebel advance in Ukraine.

On Monday Russia's President Vladimir Putin was defiant, blaming Ukraine for provoking the fighting by rejecting peace talks and accusing a "foreign NATO legion" of trying to contain Russia. NATO dismissed the charge as "nonsense."

"The risk of new sanctions against Russia, because of the worsening situation in Ukraine, is exerting strong pressure on the Russian currency," BKS Express analyst Ivan Kopeikin said in a note. "The artillery shelling of Mariupol on Saturday hasn't escaped the attention of the West."

He added that in the short term the ruble was likely to fall to a level of 69 to the dollar.

The ruble was relatively stable week last week, trading between 63 and 64 to the dollar.

Adding to the pressure on Russian assets on Monday, the oil price was also weaker, with benchmark Brent shedding around 0.5 percent to $48.55 per barrel.

http://www.themoscowtimes.com/business/article/russian-ruble-falls-after-tensions-flare-over-ukraine-/514878.html

[AkMike]

Prices of Russia's Top Export Commodities Fall Amid Oil Price Drop

While the plummeting price of oil has occupied headlines in recent months, it's not the only commodity of key importance to the Russian economy whose price is dropping.

In fact, all nine of the World Bank's key commodity price indices are currently in decline, pulled down by abundant supplies, disheartening global growth forecasts and the appreciation of the U.S. dollar, the World Bank said in a report.

At the present time, the World Bank sees little hope for a rebound. "[This year] is a rare case in which all nine key commodity price indices are expected (as of January) to decline for the year," the report said.

These commodity groups, which include energy, metals, grain and more, make up the vast majority of Russia's exports. They accounted for 79 percent of Russia's exports to the Commonwealth of Independent States and 93 percent of exports to countries outside the zone between January and November last year, the Kommersant newspaper calculated, using data from the Federal Customs Service.

Oil prices dropped the most among the commodities tracked by the World Bank, falling 45 percent in seven months and pulling the Russian ruble down more than 40 percent against the U.S. dollar by the end of 2014.

But at the same time, the prices of agricultural products, metals and precious metals fell by 6, 8 and 9 percent, respectively, between the third and fourth quarter of last year.

While not all the price falls are directly tied to oil, some commodities — such as natural gas, fertilizers and food — are bearing the brunt of crude's decline.

The European and Asian natural gas markets will be impacted as oil becomes comparatively more competitive. This will in turn push down the price of fertilizers, many of which have a large natural gas component, the report found.

The price of food commodities, particularly grains and oilseeds, will also drop due to the falling costs of fuel, chemical and fertilizers, as well as government policies that could push more grains and oilseeds into the production of biofuels, it said.

The World Bank forecasts oil prices averaging $53 per barrel this year, provided that the OPEC cartel of oil producers continues to eschew production cuts.
http://www.themoscowtimes.com/business/article/prices-of-russia-s-top-export-commodities-fall-amid-oil-price-drop/514918.html