Thread: What do we earn from selling oil?

Originally Posted by Romik

as people would bay imported things rather than inward more often.

Ah, now you're talking business! So, let's be practical here: say you worked hard (or not hard) and earned $10,000. You decide you want to own a car. How would you spend your money? Would you rather buy a new VAZ-produced vehicle like Kalina or a used Japanese car like Toyota or Honda? That was a rhetoric question. So, what stops VAZ from licensing say from Toyota and start mass-producing the Corolla? It would be a bit lower quality than the equivalent Japanese, for sure, but it would still be a way better than Kalina, cheaper than importing Corollas and would therefore satisfy the internal market limiting the import. Does it make sense? So, the cost of licensing and the cost of building a plant could be partially (or fully) sponsored by the Russian Government with the oil money. That was an example of a 'kind of infrastructure' I was referring to. That would also provide more local jobs spurring the GDP. So, in the end, an average Russian citizen could afford a better car for the same money. Do you think that would qualify for the definition of "richer"?

Originally Posted by Romik

They build already a lot of things, there are upcoming sport events, you know, maybe less of it would be better.

That is also some infrastructure, which is something, and they are looking for getting that money back once the Olympics is over. Which is good. However, that is a one-time action and not an infrastructure development plan that could (and should) be sponsored with the oil money.

Originally Posted by Romik

The costs of many things pricier that anywhere else in Europe.

I think Ramil had already covered that. That's mainly because of the corruption.

Originally Posted by Romik

Actually I think the more they spend the oil money the worse it can affect the Russian economy

Again, that depends what's been done with the money. If the money is calmly daydreaming in the banks, than it's worse for Russian economy, since there's no stimulus to diversify the income.

Originally Posted by Romik

The best thing I think for the economy would be to stop to sell that raw materials.

Ok, and what do you think should Russia sell?