nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2016‒04‒09
eight papers chosen by

  1. Central and East European diversification under new gas market conditions By Csaba Weiner
  2. Formation of the Credit Rating Agency Regulation in Russia By Anton S. Selivanovsky
  4. В память об академике Богомолове By Bukvić, Rajko
  5. Russian Imperial Space of Power in the First Post-Revolution Decade (1917 – Late 1920s) By Ekaterina Boltunova
  6. Spatial Development Indicators, Used in the Framework of the "New Economic Geography" and How They Can Be Used in the Strategic Planning of Spatial Development of the Russian Federation By Yuri Danilov
  7. Key Determinants of Demand, Credit Underwriting, and Performance on Government-Insured Mortgage Loans in Russia By Lozinskaia Agata; Ozhegov Evgeniy
  8. Potash: a typical price war By Yves Jégourel

  1. By: Csaba Weiner (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: The Russo–Ukrainian gas crisis of January 2009 encouraged Central and Eastern Europe (CEE) to diversify away from Russian gas supplies and new gas market conditions have afforded some opportunities for doing so. This paper assesses these achievements, as well as factors preventing CEE countries from benefiting therefrom. The paper addresses four main areas of CEE diversification: (1) gas demand, (2) domestic gas production, (3) transit, as well as (4) gas supply and physical infrastructure for source diversification. There is great variation in the degree of dependence on gas, gas imports, Russian gas and transit countries, across the CEE states. Some progress has been made in diversifying, but the degree of progress and the patterns vary significantly from country to country. Due to long-term gas import commitments and the lack of available import capacity, CEE countries can take only limited advantage of changed gas market conditions. But some countries have genuinely benefited from ongoing developments. Transit-avoidance pipelines can also increase security of supply for CEE consumers by providing the opportunity to arbitrage across gas transit corridors. Despite many criticisms, the EU has taken steps that may help mitigate Russian influence.
    Keywords: Central and Eastern Europe, Russian gas, dependence, diversification, security of supply
    JEL: L71 L95 O13 P28 Q4
    Date: 2016–02
  2. By: Anton S. Selivanovsky (National Research University Higher School of Economics)
    Abstract: This Working Paper is dedicated to the new system of legal regulation of credit rating agency (hereinafter “CRA”) activity in Russia. The main focus of the new rules is administrative regulation and rigid control of procedural issues by the Russian mega-regulator for financial markets. The author criticizes current legislation and argues that such rules will obstruct CRA activity and adversely affect protection of investors’ and creditors’ rights, and will ultimately lead to an increase in transaction costs. It is necessary to continue work on CRA regulation in order to develop effective mechanisms to ensure a balance of interests among parties to the credit rating contract, and ensure that investors and the regulator take into account not only legal, but also economic, managerial, organizational and a number of other issues. Regulation of CRA focused only on rigid control of procedural issues by the Bank of Russia will not lead to the desired result. CRA regulation should instead be "delicate and fine."
    Keywords: credit rating agencies, securities market, conflict of interests, regulation of credit rating agencies, liability of rating agencies
    JEL: Z
    Date: 2016
  3. By: Wladimir Andreff (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The present chapter first reminds in which circumstances Russian companies grew multinational and then started booming, and how they were muddling through the financial crisis that burst out in 2008; in this respect, they do not compare too bad with MNCs from other transition countries. The geographical and industrial specificities of their expansion abroad are pointed out as well as the major determinants of their outward foreign direst investment (OFDI). In the past decade, their strategies have evolved from total opacity to more transparency and, in some cases have matured enough to get closer to genuine global strategies while their relationships with the Russian government have strengthened. Thus Russian MNCs make up for major pillars of state capitalism in Russia. A comparative assessment with Chinese MNCs shows deeper similarities than differences in spite of the first mover advantage that has benefited to OFDI from China over OFDI from other transition economies, of which Russia.
    Keywords: outward foreign direct investment, multinational companies, BRICs, Russia, China
    Date: 2015–12
  4. By: Bukvić, Rajko
    Abstract: The paper shows some of the most important points in life and work of Oleg Timofeevich Bogomolov, a great Russian economist and an Academician of AS USSR and RAS. Even though in his 88-year long life Oleg Timofeevich was considered one of the best Soviet and Russian scientists and awarded many prizes, his work has so far not had corresponding social impact. This especially applies to his opinions and papers written in the period of perestroika and market reforms, when his warnings were largely ignored, although they proved to be prophetic. В статье показаны основные даты жизни и работы Олега Тимофеевича Богомолова, великого русского экономиста, академика АН СССР и РАН. Хотя в течение почти 88-летней жизни Олег Тимофеевич слыл за одного из лучших советских и российских учёных, даже приобрел не мало признаний и наград, его работы как правило не имели должного общественного влияния. Особенно подчёркиваются его положения и работы в период перестройки и рыночных реформ, когда его предупреждения не были приняты, хотя и оказались пророческими.
    Keywords: Bogomolov, economist, socialist world, reforms, warnings Богомолов, предупреждения, реформы, рыночник, социалистический мир, экономист
    JEL: B24 B32 P30
    Date: 2015
  5. By: Ekaterina Boltunova (National Research University Higher School of Economics)
    Abstract: This article explores how Bolshevik/Soviet authorities took on and adapted the Russian imperial topography of power i.e. the system of special structures that intended to convey state ideology (monuments to tsars and statesmen, emperors’ residences with their various ceremonial spaces, administrative buildings, and those museums which play a role in power representation). The research traces the changing attitudes to the Russian Empire’s space of power in 1917 – late 1920s that varied from destructing such spatial objects to adapting them to the objectives of propaganda. It argues that with the time being appropriation strategies (renaming, recoding, creating of revolutionary memorials etc.) appeared to have better prospects than straightforward disavowal or destruction. The imperial space of power provided some opportunities to propagate novel and/or universal connotations of power and gradually was found relevant for the needs of the Soviet regime
    Keywords: Discourse of Power, Topography, Cultural Heritage, Moscow Kremlin, Winter Palace (Hermitage)
    JEL: N94
    Date: 2016
  6. By: Yuri Danilov (Department of Economics, Lomonosov Moscow State University)
    Abstract: The article discusses the main elements of the "new" economic geography, adequately describes the current patterns of spatial development. In the context of reducing the share of transportation costs in the total cost of production is enhanced agglomeration effect, resulting in a further concentration of production and population. The article presents the basic tools and measures used by the "new" economic geography. The article formulates proposals for the application of developments and achievements of the "new" economic geography in the strategic planning of spatial development of the Russian Federation. Forecasting and strategic planning indicators are proposed, which most adequately reflect the processes of spatial development taking place in the modern economy
    Keywords: spatial development, indicators of spatial development, new economic geography, distances interpretation, agglomeration effect, strategic planning
    JEL: R58 N90 B20
    Date: 2016–04
  7. By: Lozinskaia Agata; Ozhegov Evgeniy
    Abstract: This research analyses the process of lending from Russian state-owned mortgage provider. Two-level lending and insurance of mortgage system lead to substantially higher default rates for insured loans. This means that underwriting incentives for regional operators of government mortgage loans perform poorly. We use loan-level data of issued mortgage by one regional government mortgage provided in order to understand the interdependence between underwriting, choice of contract terms including loan insurance by borrower and loan performance. We found an evidence of a difference in credit risk measures for insured and uninsured loans and interest income.
    JEL: C36 D12 R20
    Date: 2016–03–24
  8. By: Yves Jégourel
    Abstract: Along with phosphorus and nitrogen, potash constitutes one of the three nutrients used in the production of fertilizers. Although the factors that influence its demand are mostly common to other fertilizers and in large part determined by the agricultural market conditions, its supply depends on specific factors. Long known to be controlled by two production and export cartels, the potash market experienced a major change in 2013 with the end of the Russian Belarusian agreement. In a difficult economic climate, this rupture has resulted in the start of a price war, similar to what has been observed for other commodities such as iron ore.
    Keywords: Potash, price, commodities, fertilizers, agriculture, development
    Date: 2016–03

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