In 2023, amid Russia’s full-scale invasion of Ukraine, the Kremlin has shifted its focus from the battlefield to the economy. Now the Kremlin has started nationalising Western assets in Russia after several Russian assets in Europe were seized.
According to estimates by the Economy Ministry based on data from RosStat, in May the growth in Russia’s GDP accelerated to 5.4% year on year from 3.4% y/y in April.
Until a Central Asian president does manage to leave office and peacefully retire, the cycle of lifelong leaders is likely to continue.
There is a strong bounce in the economy evident in the latest statistics. The other key recent development is the dramatic weakening of the ruble.
GDP growth (hence wealth creation and improved standards of living) are not possible without competitiveness. So the European track record on competitiveness is a genuine cause for concern.
Hidroelectrica’s IPO by itself will not increase the liquidity on Romania’s equity market. More IPOs are needed.
A situation similar to the acceptance of divided Cyprus as an EU member state may be repeated for the three countries with regions de facto controlled or occupied by Russia.