World economy

Modern world energy market

Authors: Ivanov A.S., Matveev I.E.

The article reviews the world energy market, successfully balanced by the leading oil exporters
(OPEC+) by limiting oil production, encouraging price rise over 60% during the last two years -
despite US intensive political pressure and speeding up shale oil and gas extraction, thus relieving
its import dependency from 32 to 14%. Besides, Us energy exports have been boosted regardless
of world exporters’ activities to arrange the market. Th e world markets of oil, gas, coal, nuclear
energy, hydroelectricity and renewable energy are considered in the article. Chinese advances in
the sphere of energy are noted as well as their positive infl uence on the world market. An exclusive
comparative tables of world balance sheets for basic energy sources are presented, compiled by the
authors on the data of the «British Petroleum».

World commodity markets

Euro-denominated reference oil contracts under global energy markets uncertainty

Authors: Katykha P.B., Cvetaev Y.V.

Since the global petroleum market’s emergence in the 1950s the price of crude oil has always
been fi xed in US Dollars. For decades such practice has remained a constant of the global economy.
However, over recent years signs have emerged that many market participants are not just
bored with that but are ready to take eff orts to change the status quo. In 2018, China broke the ice
by launching a yuan-denominated Shanghai crude oil futures contract. Then, it turned out that the
European Union is ready to follow suit: the European Commission put forward an initiative in
December 2018 that could result in an emergence of a ‘euro-denominated reference oil contract’.
What is the gist of the Brussels’ initiative and whom do these fresh EU proposals target?

Foreign trade activity

Author: Smbatyan A.S.

The WTO Agreement is the legal basis of the multilateral trade system and GATT 1947 – the
fi rst international trade agreement is at the heart of it. GATT 1994 is a universal international
treaty in the fi eld of trade in goods, while other multilateral trade agreements have defi ned the
object and subject of regulation. In practice, the issues of GATT 1994 correlation with other
multilateral trade agreements cause many diffi culties.

Vietnam-Russia trade: Changes and structure of Russia’s imports aft er the VN-EAEU FTA

Authors: Boitsova M.I., Mitrofanova I.B., Fedorenko K.P.

Th e article analyzes the changes and structure of Russia’s imports from the Socialist Republic
of Vietnam aft er signing the Free Trade Agreement between the Eurasian Economic Union
(EAEU) and Vietnam (VN-EAEU FTA). Th e authors illustrate the direct correlation between the
EAEU’s import tariff rates reduction under the Agreement and Vietnam exports growth to Russia
by certain commodity groups. Th e promising trade areas for the two countries, particularly in
terms of Russia’s imports, are outlined.

The 40th anniversary of the Arrangement on Offi cially Supported Export Credits and the promotion of Russian exports

Author: Tkachenko A.A.

The article considers the OECD Arrangement, which turned 40 years old and which continues
to be improved. Th e role of environmental and social assessments of state-supported export
credits and their signifi cant impact on Russian hydrocarbon exports in the near future are shown.
Peculiarities of export credit agencies’ activities in the EAEU countries was determined and the
need for their concerted action to ensure equal competition is underlined. It is concluded that
modifying Russia’s foreign economic strategy and giving it a Long-Term character is relevant. It
was proposed to pay special attention to the measures proposed by the OECD Arrangement to
accelerate the implementation of infrastructure projects.

Russia-ASEAN foreign trade: key development trends

Author: Kostyunina G.M.

The article analyzes the changes in the volume, commodity structure and geographical
distribution of foreign trade between Russia and ASEAN. Th e main reciprocal trade trends are:
insignifi cant ASEAN role in Russia’s trade, as well as Russia’s in ASEAN foreign trade; traditional
Russia’s commodities-oriented exports, whereas fi nished industrial products dominate in Russia’s
imports from the Association; Russian negative trade. Th e main pitfalls in enhancing reciprocal
trade are: traditional geographical orientation of ASEAN exports and imports to the countries
of North-East Asia, the USA and the European Union; poor awareness of ASEAN states about
the trade opportunities of our country; geographical distance between countries; low logistics
development level resulting in the use of intermediary services in Singapore and Western
European countries. Basing on the calculation of Russia’s export and import intensity indices (less
than 1) it is concluded that creation of a free trade zone between Eurasian Economic Union /
Russia and ASEAN might have insignifi cant economic eff ect on both sides. Th erefore, it would
be reasonable to focus on signing such agreements with individual ASEAN countries, which are
relatively important Russia’s trading partners in Southeast Asia, such as Singapore or Indonesia.

Mutual trade between Russia and India: key issues and prospects

Author: Galistcheva N.V.

The purpose of this study is to analyze mutual trade between Russia and India over the period
2000-2018, its trends and prospects. Th e author examines the current structure of Russia’s exports
to India and imports from this country. Th e article also presents statistics, viz. Grubel-Lloyd Index
that assesses the inter-industry trade between Russia and India as well as the Index of mutual trade
Th e Russia-India mutual trade is more vertical than horizontal, and it does note provide its
future sustainability. Th us facilitation of mutual trade requires development of cooperation in
scientifi c, investment and military-technical between the countries, replacement of anti-dumping
measures by respective import quotas on a reciprocal basis as well as trade in national currencies.
The article also presents statistical data on the changes in Russia – India mutual trade, 2010 - 2018.

Export Development Practices by Chinese TNCs

Author: Kalashnikov D.B.

Russia faces the challenge of increasing non-energy exports complicated by growing protectionism
in the global economy. China successfully addresses a similar issue; therefore, it is important
to study the Chinese experience. Th e study found a lowering role of foreign trade in China’s
economy and a growing importance of its companies’ overseas activities. Nevertheless, the activities
of Chinese multinational corporations are mainly aimed at promoting domestic products
on global markets, and the majority of their foreign divisions are small businesses. Compared to
traditional exports, overseas sales of MNCs have several advantages: 1) initiative in forming the
export product mix; 2) direct contact with consumers of products allowing to identify the shortcomings
of products and ways to improve it; 3) ability to organize aft er-sales service and soft ware
updates; 4) elimination of several links of resellers, thus redistributing value added in favor of Chinese
businesses; 5) expansion of demand for the related to Chinese exports products, in particular
services. Special attention is paid to the new form of MNCs - digital cross-border online trading as
it eliminates intermediaries in retail sales and provides direct access to foreign end-users resulting
in the export value added maximization.

Research reviews

Foreign trade text modality as actualization of author’s viewpoint

Author: Dyakova M. L.

Th e article highlights the ways of implicit infl uence on the target audience through the text
modality in the economic text as a particular variation of the newspaper style exemplifi ed on
the acute problem of labour force migration. Particular attention is paid to the formation of the
evaluation component to secure amplifi cation of or contrast to the information given in the text
depending on the political situation. Th e article specifi es the ways text modality is actualized.
Th e necessity of thorough text analysis with a view to improving reader’s competences and his
competitiveness for future work in a certain business sphere is stressed.

Legal status of international company under Russian legislation

Authors: Blinova Y.V., Vorokosova L.I., Zobina I.А., Chigarova A.S.

Th e article examines new Russian law concerning international companies established under
Federal Act No. 290 of August 3, 2018. Th e authors analyze special features of international companies’
legal status, in particular by comparison with European companies under the European
law. Finally, it is concluded that according to the Russian law international companies do not have
a status of a new legal entity and are considered as special legal entities but diff erent from their
European peers and Russian commercial corporate entities.


3 - 2019

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