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  • 2022 June 10 14:33

    Bank of Russia cuts key rate to 9.50% per annum

    On 10 June 2022, the Bank of Russia Board of Directors decided to cut the key rate by 150 basis points to 9.50% per annum, says press center of the Central Bank. According to the statement, the external environment for the Russian economy remains challenging and significantly constrains economic activity. At the same time, inflation is slowing faster and the decline in economic activity is of a smaller magnitude than the Bank of Russia expected in April.

    Recent data suggest that price growth rates in May and early June have been low. This comes as a result of ruble exchange rate movements and the tailing-off of the surge in consumer demand in the context of a marked decline in inflation expectations of households and businesses.

    The Bank of Russia will consider the necessity of key rate reduction at its upcoming meetings. According to the Bank of Russia’s forecast, given the current monetary policy stance, annual inflation will total 14.0–17.0% in 2022, decline to 5.0–7.0% in 2023 and return to 4% in 2024.

    Current inflation is appreciably below the Bank of Russia’s April forecast. As of 3 June, annual inflation is down to 17.0% (vs 17.8% in April). Based on the latest data, growth rates of consumer prices have been low in May and early June.

    The Bank of Russia’s baseline scenario expects annual inflation to run at 14.0–17.0% by the end of 2022. Inflation movements will be shaped including by such impactful factors as the efficiency of import substitution processes and the scale and speed at which imports of finished goods, raw materials and components will be recovering.

     At the same time, price and non-price bank lending conditions have remained rigid on the back of a higher risk premium factored into lending rates and tighter borrower requirements of banks. This leaves retail and corporate lending operations weak.

    The Bank of Russia’s decisions in April-June to reduce the key rate will boost the availability of credit resources in the economy and limit the scale of economic decline. At the same time, the monetary policy stance will retain its necessary disinflationary impact to bring inflation back to target in 2024. The Bank of Russia forecasts that the key rate will average 10.8—11.4% in 2022, 7.0–9.0% in 2023 and 6.0–7.0% in 2024.

    Survey data show that enterprises are still struggling to fix production and logistics — despite the nascent diversification in suppliers of finished products, raw materials and components, as well as in sales markets.

    The external environment for the Russian economy remains challenging and significantly constrains economic activity. The contraction in imports due to the introduction of external trade and financial restrictions is considerably outstripping the decline in exports.

    Overall, the actual decrease in economic activity in 2022 Q2 is less pronounced than the Bank of Russia assumed in its April baseline scenario. Given the above, the Bank of Russia estimates that the 2022 GDP decline could be lower than forecast in April.

    The combination of risks created by the external environment may produce both proinflationary and disinflationary effects. A further aggravation of external trade and financial restrictions may have a proinflationary effect, thereby leading to a sharper decline in the potential of the Russian economy than expected in the baseline scenario. Supply-side constraints may in particular strengthen because of a slow replenishment of stocks of finished goods, raw materials and components in the event of persistently negative trends in imports. The materialisation of growing risks of a global recession could in turn further weaken external demand for Russian exports. Disinflationary effects could be a result of a persistently high trade surplus amid more sustainable growth in exports compared to imports.

    The Bank of Russia Board of Directors will hold its next rate review meeting on 22 July 2022.

2022 December 8

18:37 Port of Melbourne reaches next stage in remediation of Swanson Dock West
18:07 APM Terminals in Nigeria announces management changes
18:00 Contracts for construction of 5th and 6th icebreakers of Project 22220 may be signed in December 2022 – Vyacheslav Ruksha
17:44 Hyundai Heavy Industries to develop ammonia FSRU - BusinessKorea
17:39 Academy of Industry Markets welcomes to LNG Market online course
17:34 CMA CGM may double methanol-fuelled boxship order - Ship & Bunker
17:22 Stockholm Norvik Port starts new train service
17:16 Freeport of Ventspils cargo turnover in 11M'2022 increased by 32% YoY to 13.3 million tonnes
16:50 NSR fleet of icebreakers to number 17 units by 2030 and 22 units by 2035 – Vyacheslav Ruksha
16:47 Terminal operators upgrade rail-shortsea connection at Rotterdam
16:27 Plan for NSR development until 2035 foresees creation of container shipping fleet numbering 9 containerships of Russian transit operator
16:05 OOCL presents 2023 OCEAN Alliance products
15:28 Oil tankers with P&I club insurance piled up at The Bosphorus Strait
15:25 Oboronlogistics to continue acting as cargo agent for two ferries operating on Ust-Luga-Baltiysk line
14:46 Total dividends paid by CPC-R this year to exceed RUB 66 billion
14:23 TAQA, ADNOC, and Mubadala complete transaction for stake in Masdar Clean Energy Powerhouse
14:03 BCG and ABS combine expertise to support marine and offshore decarbonization
13:43 Tallink takes delivery of ferry MyStar
13:28 SCZONE signs 7 MoUs for green fuel production
13:02 Shekou Container Terminals implements Portchain Connect
12:43 Equinor wins commercial-scale offshore wind lease in California
12:31 MABUX: Bunker Weekly Outlook, Week 49, 2022
11:58 Sevmorput is about to complete its second subsidized voyage from the Far East to Saint-Petersburg with 46-pct loading
10:55 Eurochem is ready to transfer its ammonia shipment terminal from Estonia to Russia
10:09 INTERCARGO issues statement on IMO decarbonisation measures
09:42 ADNOC creates Low Carbon Solutions & International Growth vertical
09:30 New anchorage in Ust-Luga seaport is intended for ship-to-ship transshipment of fuel
09:22 AD Ports signs collaboration agreement with Africa Finance Corporation
08:27 CMA CGM to upgrade its Zanzibar Feeder service

2022 December 7

18:27 SBTi launches world-first roadmap for net-zero shipping by 2040
18:09 IPEM expects Russian Railways' network loading to fall by 4% this year
17:44 NYK conducts successful demonstration of new cargo hold monitoring system featuring IoT sensors
17:23 Sempra Infrastructure announces agreement with ENGIE for supply of U.S. LNG from Port Arthur LNG Phase 1
17:16 ASOP expects throughput of Russian seaports to grow by 3-5% in 2023
16:47 The major shipping lines post an operating profit of USD 122bn in Jan-Sept 2022 - Sea-Intelligence
16:30 Market players report idle time of ships in the Far East ports of Russia of up to three months
15:45 Oil exports from Russia in the first 11 months of 2022 increased by +11.2% to 199.4 mln tonnes
15:33 Throughput of Murmansk Sea Fish Port in November 2022 rose 1.8 times YoY
14:45 LR certifies DriX uncrewed surface vessel
14:31 Trade turnover between Russia and China in 11M’22 rose by 32% YoY to $172.41 billion
14:02 Russian coal exports up after EU loosens curbs - Bloomberg
13:34 GPA approves a plan to renovate the docks at the Port of Savannah’s Ocean Terminal
13:29 Container traffic on Russian Railways’ internal network in 11M’2022 rose by 3.4% YoY
13:04 OSR plan approved based on drill results in CPC Marine Terminal water area
12:40 Bunker sales at Vladivostok port in 11M’2022 fell by 25% YoY
12:17 Number of containers with Chinese goods delivered to Saint-Petersburg surged 12 times this year
12:13 Charleston Harbor becomes the deepest harbor on the U.S. East Coast at 52 feet
11:58 Dynamar forecasts that perishable export volumes to fall slightly in 2022
11:31 Viking Line chooses Finnish flag for Viking XPRS
11:13 Sredne-Nevsky Shipyard to launch two passenger catamarans of Project 04580, Kotlin, in spring 2023
11:08 WinGD wins engine diagnostics orders as ship owners look to reduce OPEX
10:35 EU sanctions on Russia cost Cyprus 20 pct of oil tanker fleet - Xinhua
10:15 Semakovskoye gas field enters operation on Yamal
09:24 CMA CGM to acquire flagship terminals in the Port of New York and New Jersey
09:21 Ship of Project NE-020.2 Anatoly Cherneyev registered with Korsakov (Sakhalin) as its homeport

2022 December 6

18:36 SCZONE receives an economic delegation from the European Union
18:06 Puerto Aguadulce handles largest-capacity vessel to dock in Colombia
17:57 RF Ministry of Transport addressed with a proposal to reduce fuel expenses of fishing ships operating in remote areas
17:46 Port of Belledune signs MOU with Port of Hamburg
17:26 Trafigura signs USD3 billion loan agreement guaranteed by the Federal Republic of Germany to secure gas supply