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tv   Sport  RT  July 8, 2013 10:29am-11:01am EDT

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hello and welcome to this edition of sophie and co the once economies suffering through worst turbulence since the time of the great depression an attempt to stay afloat the western states come up with some of the most radical solutions but the question is is it working. at a time of mass protest and disenchantment with the global economy save itself from its clouds gather over. its wallpapers found a. giant challenge to. the old guard is holding off protecting
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itself from the new kids on the street. how can they keep their face in the game and save their currency bottom line time is running. right cyprus beilein has by far the most unexpected twist in the latest one of events around the global economy and it directly involved russia since billions of russian money were targeted in the process and to talk about that we're joined by our guest i think about george bush russia's a deputy prime minister on economic issues i mean it's fair to say although o'neill economist ok so so we're going to talk economy now. i want you to take a look at this graph there were several media reports saying that there were about from five to thirty billion heroes russian money russian money in cyprus most humble estimation came from the man who knows he's the head of cyprus central bank so from five to thirty billion euros what's your number. well it's his depleted
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numbers but nobody else so i talked with some people put money in this. all names other people used. friends in cyprus or legal entities to two. names at the height of the auction saw i think the number is pretty big certainly higher than twenty billion dollars so one thirty billion i would i would say it's common i was assertive search is probably the right number but then again nobody knows exactly what he was or so much russian money in their wealth. was convenient as. it is more friendly i don't not far away from russia is it too easy to travel. jurisdiction is good stocks are so low and also. quite good and convenient to appear a money to destruction suppose a world to transfer money into play for services in the.
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i think the rules of the game were known for everyone not just for russian so many british people i mean a concert where using cyprus as well but again for russians it was the closest. convenient it is actually the fairest and it separates was the most popular for russian up till now yeah ok do you know how much russia last. few billion but nobody more until the whole story will go and everyone who has money in the stands and most. of the funds most of the savings of the last but the ones who are percentage that people will be able to take away. while it's still unclear. what's weird is that only thirty billion that's a lot of money ok why wasn't the russian government more proactive in saving
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securing their assets in cyprus the russian government is protecting saving the might was in the russian government should not care about saving the people who make. brought it wasn't just private savings down more so things were private most of saving so rich at some times the russian state controlled banks have subsidiary in cyprus and three you do have to be to be bank likely to be bank and. the government was very active in protecting the property or for b. to b. as the government to show shareholders to be it was about fifteen billion dollars and i think it was successful. you separate and successfully now in cyprus and the actions were lifted after a certain period of time so i think the russian government so the president were doing all the right things to protect those properties but did russian guard lose anything at all this whole similar story in the russian government didn't was because i mean. this signs of this crisis looming were coming before march and
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everyone really knew about. what the key. things that changed station dressed was the greece a lot as all european countries had to participate in saving the greece. and cyprus as well that was the usual burden on cyprus battleship and after that became clear that cyprus is in huge debt problem russia was actually helping through that through sion for cyprus giving it quite a big loan. and actually after after the crisis in cyprus i read through the decision to improve loan conditions for cyprus so that cyprus. would be pay an easier way in a few years did you personally see the signs of this looming did you think it was
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what happened the wait happened all european countries are under stress. and you are a pro. it is on the bigger threats that your service is like unprecedented. and nobody i think nobody believes you're a real big decision to pressure cyprus. if you're part of deposits i think that was not. expected by anyone any one who would buy a new normal garment but major european countries who decided that they don't want to cope cyprus anymore cyprus or so it is over it's only issue on so and so i would say for sure it was completely unexpected that the tradition for cyprus will be to. share or for the deposit base so no one was like behind the scenes warned that this was going to happen because what it was like e.u. russia summit for example i can december or january something like no one told you
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in the not happened no we are news that. cyprus is under stress of his government was the question because support from the russian government a number of occasions but we thought the cyprus issue because of similar way is the issue but i was in the way that it was real you know when this whole thing was going on and angela merkel in particular she's very adamant that cyprus doesn't talk to anyone else but e.u. members and particularly not talk to russia about you know this problem which was really weird because i mean how do you expect sappers not stuck to russia when thirty billion dollars of thirty billion euros are in spanx so therefore there was a conspiracy theory that either was going to do this anyways they were going to have the haircut done but having so much money in cyprus was like an additional extra reason to actually do it because it will also hit russian money. i know the
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arguments of for. such. nature but i think all the arguments are being taken into account when the decision is taken so i would not exclude. that german. politicians or french reputation is so we're thinking both russia's vote and they're taking the decision but i don't think that was the main argument the main argument was that cyprus. is. hurting. the mainland the fewer poor by taking part of monies that go to europe or in. cyprus. is. haven for big amounts of money cyprus will do well for its problems and they would have done it anyway i guess i think i think that the russian russian factor which i thought fuck that was not because icing on
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a cake you know maybe yeah there were also much spec yet because you hurt so much talk in the media about russian dirty russian money dirty russian money being you know i think politically for europeans was important dimensions of the russian money but i don't think that was going to for the decision makers to present this publicly it was a good argument but but not for. not for pretty much decision making right and here's a graph also going to take a look there were a lot of speculations in the western media that top top russia's reachout their money their saved in cyprus money laundering is facilitated by generous provisions for rich russians to gain separate citizenship some eighty oligarchy gain access to the entire year in this way in two thousand and eleven alone some eighty billion flowed out of russia and much of that money has been channeled through cyprus a lot of people i guess like in russia felt like it was an additional you know dicked of reason to i'm sure but i but i'm pretty sure. the. most so of those funds
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. were conducted to cyprus in the legal way with money laundering. it was not the. dividends that were paid by. legal companies public companies owners of those companies russian oligarchs but no it was not about money laundering it's about but the dream come true than russia lower taxes but it was legal but what's funny is that like you mentioned british money it's about quarter of the foreign investment in cyprus that they didn't really make such a fuss about their money being cut off was that. we weren't much more we were in a quite free library but they were doing things as well do you think cyprus is actually setting a line how we will act in the future i thought i was saying that if you were a real insight in a similar way in other countries so that will lead to disaster seems to. well it's
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for cyprus especially i mean they're trying to save its economy but considering that eighty percent of their economy is based on financial bases financial services if there's a little who's going to put money in cyprus now nobody right many years but also like and i'm thinking globally like for you were up in general could it affect the could it could could could that actually be a reason for cash outflow from europe in general so except maybe for your money and. brains so yes europe european banking system to be heard by and by the actions and people feel. believes that for this happened cyprus happens pretty portable right now. but it's time for a short break and in the second part of the show will we'll talk about the russian officer any chances don't go away.
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i'm not used to the tundra. my dear. in second grade i ran away from the boarding school to my friends to the tundra. to the tundra is just miskito that i don't know how people can live there to get there no t.v.'s in the tents how can i send my child to boarding school i won't be able to sleep at night after that. they enter
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a life without knowledge of how did you baby. they don't get that in school. what defines a country's success. faceless figures of economic growth. or a factual standard of living. speak your language. programs and documentaries in arabic it's all here on. reporting from the world talks of the r.p.
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interview intriguing story. in. arabic to find out more visit our big. welcome back to so think oh we're talking about the cyprus crisis and our guest today is russia's deputy prime minister i've got to do a college who knows a lot about economy so we're talking about the sappers fallout in the first part on a drop of that we did have has proposed to actually create russia's own offshore. i mean what's the thinking behind it i mean who's going to put money in russia not sure because russians obviously prefer to have their money saved somewhere else they use that russia can become one of the global financial centers or or accused
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regional finals and the. it was. on the table. long before cyprus crisis when the crisis. started to solve and eight across the world. and tribulations in europe in the in the united states after the action by g twenty. started to. get tough for resource that maybe russia can actually. be transferred into a better financial reduction for for the money but they're not being held in europe or the united states and they started to. be more convenient for banks for investment companies or for people. to. do people in russia. we started to reduce taxes on financial transactions on savings on division and
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that for the inflow of crypto stuff that in two thousand and ten because it's a pretty good station then money started to go back last year and this year because of flow of capital and this sort of maybe it after cyprus we can make the case that the russian banking system is one of the safest and we make that case i think so i think russian banks have a better capital position than many banks and in europe in the united states right now. explain well basically russian banks were much more conservative. as in most banks in the war. our company is. always saying that it's really difficult to get loans get credit. interest rates very high but that is one side of the story for brinks. that means that.
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they're not putting money in the risk of transactions and for people who save money in the russian banks. picture brights and banks are not to. the point that's money but when we talk about offshore it's who look would be our clients because when you put your money in banks in america and europe you automatically think that you know these are established economist and i'm going to really trust it happen tomorrow when you think the russian economy globally you don't think it's like the safest most stable economy in the world because sick people who think simply don't understand much about banking system you know they first think well i'll drive i have my money saved in a bank that has a stable economy and i mean well i think you should be pretty much a crook nobody i think is. thinking seriously including prime minister medvedev that the whole of russia can become sort of them for the worth of the whole but russia can become one of the convenient countries to war korea's
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capital and one of the countries research in percent income tax this is a key factor for individual investors low income tax. russia can surf was an extra. that can be used for. can be used by investment banks in new york banks as well also we were thinking about making forest is one of the. centers for my needs that. are being committed to in the asia pacific region as hong kong and shanghai. and the decision to reduce the corporate taxes in the forest to make this easier but again nobody is thinking seriously both to transfer and crush into the not sure. sure country and it's an idea it's a work in progress or you guys actually were not all make a subtle and all sure place. to. do this but
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we're not. we're not trying to perth various financial services in so holy in. our wall used to make so holy in the. in the three more secret i would give us the. place is clean for investments i wonder what japan will say about that i think then japan will start computer eating. even. islands and. pretty much a point of view not a political point of view. going because of the crew arlen's mean money. and trying to take quite away from russian well here's another graph let's take a look at that this crap actually shows that western european countries generate more offshore wealth than anyone else in the world pretty clear that you want so sure is down and out of existence right i mean it's only normal i think. is
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a part of for normal life and nobody's saying that should be liquidated the global economy will stop before force will cease to exist. the ideal for. international law makers is to me or force more transparent presently could be or the force because the feeling we're getting is that russia and e.u. actually want to deal sure i still think that's a wrong idea i don't want to close down assures i think it's it's wrong but people who believe that you can easily. close offshore certain things will be going much better i think everyone from jordan stands that if you will do this you should reduce taxes domestically. to four for the economy to grow. economy grows is supported by offshores taxes are lower and people are investing huge amounts of
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money from offshore since the mainland or on the quantum is and this supports the economy grows you for taxes will be put. where will they are the mainland like in russia where we have twenty percent corporate income tax eighteen percent tax etc etc you for taxes across the world will be the same level economic growth across the world with much lower interest in this surprise for dear dear friend but the gain doesn't mean that we should. support existing coffers we should treat them as normal a way to put money in but we need more transparency need to understand what's worth and i mean is the future of offshores i think it will be used in the less intensive way it will be more transparent governments will know who is holding money offshore in real try to tax more than ways to get the can can say it was the losses but the
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governments will not write to you could date overflowing and so this whole cyprus operation that we spoke about was carried out to actually keep the eurozone going to save the euro. what's going to happen to that i mean do you personally buy your us for example. part of the savings to cross russia or are you are since normal. part of frame your savings most of my wife's savings and the snow from our. financial accounts the completely transparent in our neurosis well that's it's normal there is for cation of money but most of. ourselves as to when robles not in europe but i think do you ever say if you bend the dollar at this point. about the same i would say about the same exchange rates up and down but. as far as the quality of the currency is concerned about the same us economy is bigger in the.
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years. for is stronger than the european central bank that's clear that's why still most of the final production the close of the world are in. what you are is a second. strongest currency and then because of the rising. currency in asia and china lifting capital control step step by step for year by year you are. getting stronger and stronger and to become eventually one of the reserve currency across the world. you know currency worries another huge topic but i'm going to have you on another program to talk about that right now what i want to talk to you about now shortly because we're coming to an end is brics survey is trying to create its own bank because they figured i.m.f. and the world bank aren't dealing the way they should be dealing with their business. we spoke to zuma president of south africa recently when he was in sochi
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and here's what he had to say listen to that the one crying from developing countries that is the established banks today or financial institutions are very discriminants they're not allowed in other parts of regions of the world to participate and there's been a lot of debate about the need to transform the financial institutions that exist to transform and the manner in which they they they are dealing with those that needs to be helped. they're using the rules that we established decades and decades ago the world has changed this institutions have not changed with the world they still remain. dealing with matters in the manner in which they do they would be very few countries of their would be on that would say as
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a result of them approaching these institutions they were able to grow and get out of tunnel. but first of all do you realize what he's saying. oh you know yes but. in. number year over year congress we're seeing that. but the war being better i am now for. management and source. institutions and the progress is very slow and then the idea for creation breaks for years and years and came to the table and. discussed but i would like to stress that the terms of preferences for the potential. strongly students are not. and we don't know how it will look like in twenty three to create fire but they're talking about the they're talking about where it's going to be set up and there it's actually
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a work in progress right something. right but again the. nature of the institution in what it's going to do more and most important sink not the place if you'll be lucky but so many people are broke but you see what there. will be so that it's at the but i would like to stress again but we don't know you know. how much how much pressure when contributing we don't know that either i don't know this is a really far off perspective to look for but you know take the i mean conceptually do you see how how it will be different from i.m.f. or the world bank. the key difference is. one is focused on the. developing world. and the confidence that big strong or very confused you know going to be helping cyprus or. well maybe but separating but
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not really in the second is a different kind of management program and so for. professionals from the new conference that i was in. united states but would you be like setting your own economic or political rules like i.m.f. and world bank usually do when they go into country they help them but they say you know what you need to change these things these things in order for us to help the russian position is that we should not put a new political little's are into the system reality is always more complex. because it's was a political considerations from what they can think on but again for poor financial institutions i think it is not. efficient to use a but he's got to convince reasons of decision making all right it's been great talking to you are going to thank you very much for being with us today and i will see you next time this was so i wouldn't sophie shevardnadze.
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but if china were a military superpower on par with the united states what kind of world would we would china put in to check washington's appetite for unilateral military action and manipulation of the global economy or would we miss another cold war where both beijing and washington maintained a chilly the relatively peaceful world. live
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. live. live. live live. live. live.
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live. live. the speech. she gave. her. wish. to mislead or. just say look at him a. little much. deadly
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divisions in in ship fifty one people are killed in cairo at a muslim brotherhood rally sparking fears that the country could slide into chaos we bring you every port from a hospital on the front line of the violence. in baghdad with a german's anis a whistleblower edward snowden claims american intelligence has been working hand in glove with berlin and in secret surveillance program. and of mali gears up for its post-war presidential election in the grip of a political crisis and a fragile security situation we reported from inside the west african nation struggling to return to normality.

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