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Press review: Tokayev meets with Putin and Russians holding bitcoin tightly in wallets

Top stories from the Russian press on Friday, February 11th
Kazakh President Kassym-Jomart Tokayev and Russian President Vladimir Putin Mikhail Klimentyev/Russian Presidential Press and Information Office/TASS
Kazakh President Kassym-Jomart Tokayev and Russian President Vladimir Putin
© Mikhail Klimentyev/Russian Presidential Press and Information Office/TASS

Vedomosti: Kazakh president seeks to boost economic development with Russia’s help

Kazakhstan’s President Kassym-Jomart Tokayev has held a meeting with Russian leader Vladimir Putin in Moscow for the first time after the January unrest in the Central Asian country. Tokayev thanked Russia for sending the bulk of the Collective Security Treaty Organization’s peacekeeping forces to help resolve the January crisis. The parties inked agreements on cooperation between the Kazakh authorities and a number of Russian technical universities, while Kazakh state companies signed accords with the Russian Ministry of Digital Development, Communications and Mass Media, the Ministry of Education, the Rosatom State Nuclear Energy Corporation, the Roscosmos State Space Agency and the Transmashholding locomotive and rail equipment manufacturer, Vedomosti writes.

Kazakhstan and Russia will continue practical cooperation under Tokayev, Director of the Center for Eurasian Studies at Moscow State Institute of International Relations Ivan Safranchuk emphasized. The expert is confident that all the projects that already are on the table will be implemented. "For Tokayev, cooperation with Russia is undoubtedly a good way to strengthen his position," the analyst said.

Tokayev’s visit to Moscow should not be viewed as an attempt to gain more external legitimacy, it is more likely aimed at getting economic and infrastructural assistance, Director of the Information and Analytical Center for the Study of Social and Political Processes in the Post-Soviet Space Darya Chizhova pointed out. The reason is that the situation in Kazakhstan remains difficult because even the elimination of armed groups doesn’t mean that the systemic crisis is completely over.

Tokayev needs to solve a large number of social and economic problems, particularly related to the education and electricity sectors. The poor state of the country’s power grid became clear when Central Asia was hit by a massive blackout on January 25, the expert added. "Agreements with technical universities stem from the country’s pressing need for specialists, including industrial managers," Chizhova noted.

 

Izvestia: Why Kiev launched inflammatory drills

Ukraine decided to hold unscheduled military drills simultaneously with joint Russian-Belarusian exercises. For ten days, the unmanned aerial vehicles and missile systems that the country received from NATO will be tested along the borders of the Union State of Russia and Belarus and the Donbass republics, Izvestia notes.

"The thing about the drills is that the troops are deployed in combat formation. They can be used both for training and for waging a war. The experience of local conflicts after World War II shows that many of them started under the guise of drills," military expert Yury Knutov pointed out.

"The worst part is that Washington and, partially, [Ukrainian President] Zelensky himself are interested in raising tensions. His approval rating is so low that he is unable not only to run for a second term but probably, complete his first one. <...> This is why Ukraine may ignite a conflict any time," Knutov said.

According to political analyst Rostislav Ishchenko, "if the Americans decide to stage a provocation and start a war, they will do it." "As for Kiev, I don’t think it will ever go for it because it’s afraid. But if it comes to that, the United States won’t ask questions, won’t ask for advice and won’t inform anyone. It may just happen that the Ukrainian people will wake up one day to find out that they are at war [with Russia]," the expert noted.

"The goal of these activities is to demonstrate [Ukraine’s] professed resolve to fight back. However, as we all understand, they remain part of an information war and neither help Kiev solve specific problems nor have an impact on the actual military and strategic situation. But in terms of propaganda, attempts are being made to achieve some goals in response to demands from some part of Ukrainian society and Western countries," political expert Denis Denisov stressed.

 

Nezavisimaya Gazeta: March may prove to be turning point in battle against pandemic

More and more countries are announcing plans to lift coronavirus restrictions, including vaccine passports. Experts expect the month of March to be a turning point, Nezavisimaya Gazeta writes.

Denmark was the first European Union member to lift all coronavirus restrictions earlier in February. Sweden, Norway, Finland, the Czech Republic and the United Kingdom are also on the way towards easing their restrictive measures. Outside the EU, there also are countries who are easing anti-Covid rules. The United Arab Emirates’ authorities plan to gradually remove almost all restrictions.

There are economic and political reasons for such moves, department chief at Univer Capital Andrey Vernikov noted. "The economic reason is that authorities in developed countries are concerned about rising inflation rates, which are particularly driven by gaps in logistics chains. If the coronavirus regulations are lifted, the logistics situation will improve and it will have a positive impact on the final price of goods," he explained. The political aspect is that the restrictions are highly unpopular.

"The steps that European authorities are taking stem from two circumstances. First, the new coronavirus variant is expected to work like a vaccine so the pandemic will turn into a mild seasonal illness. Second, developed countries are overwhelmed with people’s accumulated fatigue and frustration," Scientific Director at the Institute of Regional Problems Dmitry Zhuravlev explained. "The lifting of restrictions will stimulate economic development and ease social tensions as long as it does not lead to another wave of the pandemic," the expert added. This goes for the entire world and Russia in particular.

 

Kommersant: Russians in no hurry to play the market with virtual currencies

Russian investors prefer to store virtual currencies rather than gamble on the market with them, as up to 60% of their crypto wallets remain in a "dormant" state, Kommersant writes, citing a report by the MEXC cryptocurrency exchange. According to market players, the reason is that cryptocurrencies are viewed first and foremost as a long-term investment tool, though tough market regulations also have a role.

Director of the Alfacash cryptocurrency exchange service Nikita Soshnikov points out that the share of "dormant" Bitcoin wallets has been growing for a year and a half and Russia ranks in the top five on this score.

According to ENCRY Foundation founder Roman Nekrasov, a strategy aimed at simply having long-term cryptocurrency assets has been gaining popularity in the world for the past few years. Nekrasov believes that there are many Russians among the so-called early Bitcoin adopters who became interested in the virtual currency in the first five years of its existence and don’t intend to sell.

The question of cryptocurrency regulation remains open in Russia. The government and the Central Bank are expected to hammer out a bill on digital currency circulation in the country by February 18. In addition, the Ministry of Finance is considering a transition period in terms of taxes on incomes from cryptocurrencies.

Meanwhile, experts interviewed by the newspaper believe that even after the bill turns into law, Russians won’t rush to reveal their cryptocurrency assets. EXANTE Leading Strategist Janis Kivkulis emphasized that in Russia, cryptocurrencies "will remain an iceberg, nine-tenths of which is hidden from sight."

 

Vedomosti: Russia’s vaccine exports rise 20-fold in 2021

Russia’s vaccine exports reached $1.42 bln last year, Vedomosti writes, citing statistics from the Federal Customs Service. In 2020, Russia gained only $72 mln by exporting this kind of medications, which means that vaccine exports have increased 20-fold.

Before the Sputnik V coronavirus vaccine, Russia mostly exported medications to prevent yellow fever and the flu, Development Director at the RNC Pharma analytical company Nikolai Bespalov said. The supplies of these vaccines are stable and a possible rise hardly exceeds 10-20% in money terms. It is Sputnik V that accounts for 96.5% to 97% out of the $1.42 bln worth exports.

The main barrier that hinders Russian exports is the delay in international organizations’ approval of Sputnik V. The World Health Organization still has not authorized the jab. So far, 71 countries have approved Sputnik V. Argentina, Mexico, the United Arab Emirates and Kazakhstan are the top five countries for its import, accounting for 60% of sales. All these countries except the UAE have already launched their local production of Sputnik V.

Apparently, demand for coronavirus vaccines has not peaked yet because new mutations are making people get booster shots, which boosts demand, including in regions where vaccination rates are quite high, Bespalov noted. Sputnik V sales will continue to grow but it doesn’t mean that most supplies will come directly from Russia because overseas production facilities have been put into operation, the expert added.

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