13.10.08
Economic News in Review
September/October, 2008
The following resource is meant to quickly introduce the reader to some of Russia's major business news for the month. Please note that we generally strive to focus on more specific, less-well-covered issues. This news review is developed via a partnership between three organizations: The School of Russian and Asian Studies, a study abroad organization which also produces several other reviews ("obzori") each month; The US-Russia Chamber of Commerce of New England, a business advocacy and networking organization which also features this obzor in its monthly newsletters; and Alinga Consulting Group, a business services company (audit, tax, accounting, payroll, legal, and HR), which also offers a monthly newsletter.
To subscribe to any of these additional news services, send us an email with "Subscribe" in the subject field and indicate which publications you would like subscribe to in the body of the email.
Government Bailout
Moscow to lend $50bn to indebted business
Russia announced new measures to stave off a liquidity crisis.
Medvedev gives Russia banks more credit to fight crisis
Russia, which has large foreign exchange reserves and is rich in oil, gas and metals, had looked among the better placed nations to withstand the global financial crisis but Moscow has been among the worst affected markets.
Russia Pledges $20 Billion for Stocks, Cuts Oil Tax
President Dmitry Medvedev pledged $20 billion to support the Russian stock market and cut oil taxes to stem the country's worst financial crisis in a decade.
Russia Halts Shares as Medvedev Funding Plan Fails to Stem Rout
The Federal Reserve, European Central Bank and four other central banks lowered interest rates in a coordinated effort to ease the economic effects of the financial crisis.
Economic Crisis Will Not Be Televised
The Kremlin recently instructed both state and privately owned television channels to avoid using words like "financial crisis" or "collapse" in describing the turmoil in Russia.
Russia Favors Stronger Regulation To Tackle Market Volatility
The Kremlin moved to employ strong regulatory methods to deal with this month's market turmoil.
Russia's Putin dismisses call to fire finmin
Russian Prime Minister Vladimir Putin brushed aside a demand by the Communist Party to sack Finance Minister Alexei Kudrin on Thursday, saying now was not the time to discuss mistakes made by economic authorities.
Russia to Start Handing Out Emergency Cash in "Days"
Russia's government will start delivering cash to banks from $186 billion of pledged emergency funds in "the next few days" as it seeks to stem the biggest financial crisis in more than a decade.
Private Sector Under Attack
Small and medium-sized businesses are throttled by rules and regulations whose sole purpose is to make it easier for officials to collect bribes.
Russia Appears Set for Shakeout
Days after the Kremlin announced a $120 billion rescue package that steadied Russian financial markets, signs emerged that the crisis is set to spur consolidation and a slew of bankruptcies.
VEB, Central Bank Roles Expanded
New laws will give Vneshekonombank the authority to grant emergency credit at a rate of LIBOR+5% to companies in place of foreign loans.
Central Bank Will Propose Reforms
The Central Bank of Russia is ready to introduce a number of bills to strengthen the banking system, RBK Daily newspaper reports.
The Undistributed Promise
Russia's three biggest banks - Sberbank, VTB and Gazprombank – will get 1.5 trillion ruble from the RF Finance Ministry. The funds will go to sustain banking system of the country.
Gov't to Loan Banks 950 Bill. Rubles
Russian president Dmitry Medvedev has announced new measures to normalize the financial market after a meeting in Moscow on the financial crisis.
State Duma Passed Bailout Plan for Russia's Companies
The lower house of the RF parliament, the State Duma, passed a bill authorizing VEB to use funds of the Central Bank of Russia (CBR) for granting credits to Russia's companies. The credits will go to pay off or service foreign loans.
VEB to Guarantee Redemption of All Corporate Debt by Year-End
If needed, the Central Bank of Russia (CBR) has been recommended to grant stabilization loans to the banks without any security. VEB will step in to sort out problems of the corporate sector; this bank will receive up to $50 billion from the CBR to refinance the loans.
Russia moves to bolster banking sector
Russia moved to bolster the country's increasingly stressed banking sector Wednesday, as the global economic turmoil deepened fears that the country could face a crisis similar to the one 10 years ago.
Banking and Debt
Russian Oil Cos. Paying Higher Interest
The largest Russian banks have raised the interest rate on credit in rubles to oil and gas companies from 7-8 percent to 11-13 percent annually. Second-echelon banks have raised their rates to 18 percent.
Foreign Debt of Russian Cos. Grows
The Russian foreign debt stood at $527.1 billion on July 1, 2008, passing the half-trillion mark for the first time, according to data published by the Central Bank.
Crisis Reached Sberbank
Sberbank CEO German Gref called on subordinates to work "in new reality" because of financial crisis.
Foreign Banks Cut Back in Russia
Foreign banks are adjusting their development plans in Russia, forcing their Russian subsidiaries to cut back regional programs, halt some forms of crediting and plan their expenses more carefully.
Acceleration with Grave Aftereffects
The September financial turmoil of Russia probably had strong internal roots, signals the regular outlook of Development Center. The analysts draw attention to the surge in credits given to the nation in July and August that was accompanied by savings' decline and give it as the key reason for this year's growth of retail.
Russian Railways to Rescue Investment Bank
RZD will pay just 100 ruble for the KIT Finance and the government will refinance its debts.
Bank Deposits Fail to Keep Pace
The deposits with the RF banks grew by 16 percent in the first eight months, but the capital outflow of the 10th percent point might have happened in September.
Putin May Boost Russia's Power as Iceland Seeks Loan
For Russian Prime Minister Vladimir Putin, the financial crisis that is costing his government $200 billion may also provide an unexpected opportunity to expand his country's influence.
Iceland Seeks To Borrow 4 Billion Euros From Russia
The government of Iceland is seeking a 4 billion-euro loan from Russia to help strengthen its foreign reserves and support its sinking currency amid the global financial meltdown.
Prokhorov Buys Half of Renaissance Capital for Half-Price
The analysts said the deal had been negotiated for more than half-year and its announcement during the financial turmoil was a mere coincidence.
Central Bank Asks about Money Laundering
The Central Bank of Russia has published a study it commissioned Deloitte & Touche CIS to make of the efficiency of efforts to combat money laundering.
S&P Downgrades Russian Banks
Standard & Poor's agency has lowered its long-term ratings outlook for seven companies in the financial sector.
Commentary on the Economy
Anders Aslund, 10 Reasons Why the Economy Will Falter
Russia has gone through a grand economic recovery, but its strength must not be exaggerated.
Economic Prognosis
Experts will answer the following questions: what will happen to the exchange rate of the dollar; where inflation in the consumer market is going; how the world oil prices will change; and how the euro and the dollar will behave in the world markets.
Dealing With Financial Crisis: The United States vs. Russia
Stock markets the world over have experienced a crush of losses and all-around volatility in recent days. Here we look at two of the most dramatic markets — those in the United States and Russia — where views of business and government could not be more different.
We need the Ruble to Prop Up the Global Financial System
As long as the dollar and the euro are free to rampage the world stage like two wounded bulls, we just have to recognize that the global market is not a true free market.
Russian economy's security cushion
As a result of market reforms in the last 15 years, Russia became integrated into the world economy. Apart from obvious advantages, this achievement sometimes brings problems.
U.S. "Irresponsibility" Led to Crisis, Putin Says
"This isn't the irresponsibility of particular individuals, it is the irresponsibility of a system that as we know had claims to leadership."
Business in Russia - slowdown but still steady growth
Although the dust from the Russian-Georgian conflict hasn't settled, a closer look at the Russian economy suggests it will continue to experience healthy growth, albeit with some deceleration.
Medvedev Says Domination of Single Economy Is Over
"Recent events confirmed that no single economy, no matter how powerful it is, can serve as a ‘megaregulator' of the world economy."
Russia Wards Off Financial Crisis, But For How Long?
Almost exactly 10 years after a devastating market crash that eradicated much of its middle class, Russia is once again in the grip of financial turmoil.
Economic Indicators
Outgoing Trade Surplus Is Real
The external surplus grew 1.7 fold to $138.1 billion in Russia in January through August.
IMF downgrades 2008 Russian GDP growth forecast to 7%
According to the IMF, GDP growth in Russia is expected to fall to 5.5% and inflation ease to 12% in 2009.
Global Crisis Didn't Affect Russia's Economic Growth
The effect of global economic crisis on Russia's economic growth was less than a percent point, president's aid Arkady Dvorkovich told the reporters.
Bank of Finland Forecast for Russia 2008-2010
Finland's Central Bank produces twice-yearly forecasts for Russian economic growth. Their latest edition was published on September 11th and predicted overall growth would be maintained at 8% for 2008 on the back of high commodity prices.
Demand for Russian Industrial Products Low Low Low
Head of the Institute's market conditions survey laboratory Sergey Tsukhlo writes that demand is falling "increasingly intensively" and industry has already been forced to cut back on production.
Efficiency Leaves Industry
Russia's Statistics Committee Rosstat reported yesterday the 40.6-percent increase in the net profits of enterprises in January through July. According to the Bank of Moscow, however, the efficiency of industrial enterprises not related to energy production or processing is going down.
Russia's Inflation at 10.6% Jan-Sept
The inflation reached 0.8 percent in September vs. the forecast of 0.4 percent to 0.6 percent. The prices grew 10.6 percent from early this year vs. the 11.8-percent annual target of the RF government, Russian Statistics Committee (Rosstat) reported.
Inflation Halted at Pre-Crisis Level
Although inflation remains at around 15 percent in the annual terms, Economic Development Ministry doesn't intend to revise the inflation outlook.
Govt Anti-Crisis Efforts to Accelerate Inflation
The anti-crisis actions of the RF government and the Central Bank of Russia may accelerate the inflation rates by a percent point or two.
Stocks and Investment
Russian business fears slowdown after market storm
The Kremlin is trying to stem the worst crisis of confidence in Russia since the 1998 financial collapse as a meltdown on world markets and concerns about political risk spooked investors, who have dumped stocks, bonds and rouble assets.
Credit Crisis: The Risk Hits Russia
Foreign investors are fleeing, bank lending is down, and growth is slowing.
Stock Exchanges Yielded to Adjustment
The defeat of the $700-billion bank bailout bill in the U.S. House of Representatives battered the markets worldwide. Russia's authorities opposed the threat by closing stock exchanges from the very morning.
Russia's Market Controlled by Emotions
Emotions are the leading factor on Russia's market today, Troika Dialog Vice President Alexei Dolgikh said in the open air of RBC-TV.
MICEX Halted for 2 Days
Russia's Federal Financial Market Service has halted the trading on MICEX floors till October 10, RIA Novosti reported. There, the index slumped nearly 14 percent in the first half-hour.
The Stock Market Flees to London
Russia's RTC and MICEX indexes were among the loss leaders falling 11.25-14.35 percent. As a result, the exchanges have been closed and trading in Russian stock has been moved to London.
Russian Companies Droop on LSE
Depository notes for Russia companies lost 10-20 percent on the London Stock Market this morning.
Investment Growth Slipping
Rosstat has released Russia's August economic indicators. They do not point to an impending economic crash, but they do show a clear tendency towards the slowing of investment growth in fixed assets.
Private Investors Rushed to Buy Underpriced Stocks
MICEX recorded the three-fold surge in opening brokerage accounts past week – the brokerage firms welcomed over 7,000 new clients.
Investor joy turns to despair
For the country, which steadily earned its tiger status on the back of a remarkable story of rising fortunes since its 1998 default and economic collapse, the past two months have come as quite a shock.
Russian markets surge as confidence returns
Prime Minister Vladimir Putin told a major investment forum he would respond to the financial crisis with market measures. Russia had enough foreign exchange and gold reserves to protect its financial system and guarantee the rouble, he added.
Russia Stocks World's Cheapest as Market Surges After Halt
Russia's RTS Index, the best performer this decade, became the world's cheapest as the government halted stock trading for two days to arrest the worst financial crisis since the nation defaulted a decade ago.
Collapse of Russian stocks: result of the global malaise, or something more?
Does sharp drop of Russia's stock markets reflect not only the global financial crisis but also political risks that investors in Russia had previously ignored?
Retreat from Moscow: Investors take flight as global fears stoke Russian crisis
Market falls driven by the flight of foreign investors then took on a much more serious momentum of their own, as domestic investors began facing margin calls on shares that they had borrowed money to buy.
Stratfor.com: Geopolitical Diary: Russia's Stock Market Woes.
While the Russian stock markets are suffering because of the uncertainty, Russia is not necessarily suffering.
Media, Technology, Advertisement
Putin Promises Moviemakers Billions
At least 4.3 billion rubles per year will be allocated annually to support the Russian film industry.
Soviet Brand Names Make Comeback
Those brands call up positive associations among many in the Russian population and reduce advertising expenses for the item to zero.
Chubais Delegated to Microcosm
Ex-CEO of RAO UES of Russia Anatoly Chubais starts today his career as the chief of state-run Rosnanotekh.
Alexander Mamut Bought Euroset for $1.25bn
This acquisition is likely to set into motion a string of deals with cellular retailers, which are eager to withdraw from the market despite that its worth may reach $9 billion this year.
Ministry Has Rights to Soviet Cartoons
Deputy Minister of Culture Alexander Golutva has written a letter to Soyuzmultfilm informing it that it owns the rights to all animated films made by the studio before August 3, 1992.
Ads Down, Income Up on Russian TV
The advertising time per hour on Russian television was reduced from 12 to 9 minutes at the beginning of this year. Ad prices rose simultaneously.
Real Estate, Tourism, Regional Development
Rift over luxury housing spotlights rich-poor divide in Russia
The smell of excrement was from a dairy farm in a village on the other side of an enormous green fence built by Agalarov. Its owners so far aren't selling.
Russian Retailers, Developers at Risk, Sharonov Says
Russia's economy is "quite vulnerable" to the global credit crisis and retailers and developers are at particular risk.
Saving Moscow from Itself
The construction politics in Moscow is criminal... and deprives future generations of Russian citizens of historical monuments.
Crisis Is Putting Brakes on Russia's Construction Boom
The global turmoil that has pummeled the stock markets and banking system is also beginning to be felt in the rest of the Russian economy, especially a real estate sector that has been soaring for more than a decade.
Kamchatka to Get the Resort Status
Russia's Kamchatka could have the status of federal resort, RF Sport, Tourism and Youth Policy Minister Vitaly Mutko said during the meeting that President Dmitry Medvedev chaired in Petropavslovsk-Kamchatsky city of the Far East, Interfax reported.
Russia a Top-10 Tourist Destination
Although international tourism continues to decline in Russia, falling 16 percent last year to the same level as ten years earlier, domestic tourism is flourishing, up 20 percent in the last year.
Kremlin.ru: Opening Address at a Meeting on the Development of Kamchatka
Without clear development guidelines, an understanding of long-term objectives, and mechanisms to achieve these goals, the situation will not change - this is obvious.
Kremlin.ru: Closing Address at the Meeting on the Development of Kamchatka
I would simply like to see our work result in a plan of action for the Far East for each of us here. All this is in our hands. And it is a feasible goal.
Moscow $2bn construction subsidy
The government of Moscow adopted a resolution to repurchase housing from commercial constructors with a discount, in order to get accounted with those who are in a queue for social housing.
Moscow Builders Halt Projects as Credit Crunch Bites
Moscow's decade-long building boom is falling victim to the global credit crunch as record high interest rates squeeze developers in the world's third most expensive property market.
Great Leap Forward
This summer I went back to Voronezh. I wanted to find out what had become of Oleg and other friends, and their hopes for change.
Auto, Aviation, Transport
Georgia Opposes Construction of Russia-South Ossetia Railway
Georgia opposes potential construction of the railway from Russia to South Ossetia, threatening that Russian Railway (RZD) will deal with international courts if the project is implemented.
Crisis Extended to Automobile Makers
The global financial crisis reached real economy. Metal producers and car makers are forced to lower the output. GAZ truckmaker stopped the production line till October 13 and KamAZ shortened a working week by a third.
Financial Crisis Questions Deal of Aeroflot and Airbus
The financial crisis may force Russia's biggest airlines Aeroflot to revise the deal for buying new Airbus jets, AFP reported with reference to Aeroflot GD Valery Okulov.
Foreign Cars Drive Downhill
September was the worst month for Russia's vendors of new foreign cars. As many as 15 brands showed the decline, including traditional leaders Chevrolet, Ford and Renault.
Rostekhnologii Sanctioned to Take Off
Russia's Federal Property Management Agency (Rosimushchestvo) signed the documents to transfer to Rostekhnologii the government's stakes in airlines of AiRUnion, while the Transport Ministry agreed on the transfer of Vladivostok Avia, Dalavia and Sakhalin Aviatrassy to it.
St. Petersburg-Helsinki Ferry Service Halted because of Crisis
The ferry service between St. Petersburg and Helsinki has been halted for indefinite time, RIA Novosti reported. Whether the ferry traffic will be ever resumed is unclear.
AvtoVAZ, Sollers to Drive to Venezuela Together
The partners count on the project to advance to the markets of Latin America, but the experts forecast that the Russians will finally sell assembly licenses to Venezuela.
Russian Railways to Get 45.5bn for St. Petersburg-Helsinki High-Speed Railway
Russian Railways will also rebuild the Oune-Vysokogornaya section, including construction of a new tunnel, Russian Railways announced.
Bombardier Derailed in Russia
One of the biggest deals ever in Russian heavy industry has been called off. The Bombardier has severed negotiation on a merger with Transmashholding, the Russian monopoly manufacturer of locomotives.
Russia Rides the German Rails
Russian Railways intends to buy 5 percent of the shares in the German Deutsche Bahn railway.
Agriculture and Food
Food Security Doctrine in Works
The need for such a doctrine is due to "the tense situation on the world food market that, experts say, may last for the next decade."
Coca Cola Sales Go Flat in Russia
The Coca Cola Hellenic Bottling Co. reported yesterday that it is lowering its forecast for sales and profit in Russia, where the company sells 17 percent of its production.
Finance Ministry Drafted Alcohol Control
Russia's Finance Ministry submitted to Prime Minister Vladimir Putin Monday a list of actions aimed at "improving the government's control over alcohol market."
Russia's Chemists Got New Claimants
The problems of Russia's fertilizer producers are aggravating in the United States.
Russia's Food Inflation at 12.2% Jan-Aug
Food prices went up 12.2 percent in Russia from January through August. Of interest is that the prices averagely stepped up no more than 3 percent in the European Union.
Russian Renaissance
Free from Soviet restraints, winemakers seek a return to quality and craft.
Labor
The VIP-Management
First time in Russia's corporate history, one of the biggest companies has acknowledged that labor conditions of its Russia's employees were worse than nonresidents had.
Requiem For Russia's Middle Class?
with global financial markets in turmoil, credit drying up, and demand falling, the small- and medium-sized businesses that are the backbone of Russia's new middle class could be in peril.
The Staff Famine Gave Way to Famine of Staff
The slowdown in salaries growth will be one of the key aftereffects for the labor market caused by the financial crisis.
The Job Market: A Place for Old Men
The average age of the Russian worker between 2000 and 2007 increased from 39.1 to 39.7 years. The number of people employed rose in the same period from 65.2 million to 70.8 million.
Urban Dwellers' Expenses Up 40%
That finding is based on 8520 residents (3000 households) in 32 cities.
Young Russia Chooses Money
Young people in Russia tend to identify the "good life" and the "wealth" notions more often than anywhere in the world.
Foreign Investment from Russia, Economic Relations
Iran Invited Russia to Domestic Markets
Teheran is interested in wider presence of Russia on domestic markets of Iran.
Russia Offers Belarus Its Ruble
Russian Prime Minister Vladimir Putin stated yesterday that he has suggested that Belarus create a "currency pool" with Russia, its partner in the Union State.
Russian Biz Apathetic to Tax Benefits
Russian companies pay much less attention to tax benefits than Western companies when they think about entering foreign markets.
Russia Calls For Joint Action On Financial Crisis
In a short video clip posted on the Kremlin's website, President Dmitry Medvedev has called for joint international action to tackle the global financial crisis.
Russia to Revise Trade Agreements with 5 States
Russia intends to revise trade agreements with five countries, including the United States.
Russia's Admission to WTO to Strip It Of Any Sense
Russia's entry into the WTO will makes of no sense the existence of that organization, the RF Agriculture Minister Alexei Gordeev announced.
Gas, Oil, Electricity
Gazprom Breaks Price Records
Russia's gas cost over $500/ths cu meters in Europe in October, which was the absolute record for Gazprom. But that record will hardly survive for long because of ailing oil prices.
U.S. Economists Say Kremlin Blocking Oil
The Russian government deliberately engineered the recent slowdown in oil production by imposing high taxes on the industry, two eminent U.S. economists contend in a new book.
Russia's oil wealth no vaccine against global crisis
While economic growth has surged upwards at rates of over seven percent in recent months, plunging stockmarkets and massive central bank intervention have told a different story, denting a feeling of immunity from wider trends.
E.ON to Pay to Gazprom by Stocks
Russia's Gazprom and German Å.ON AG have inked an agreement to jointly exploit Yuzhno-Russkoe oil and gas field.
Sechin Gains Power
Vice Premier Igor Sechin has set to mastering a new business field, the power engineering. Sechin will head the BOD of Inter RAO UES, which is expected to turn into one of the country's giants by 2015.
Gazprom, LUKOIL Biggest in Russia
Russian natural gas monopoly Gazprom has been rated Russia's biggest company in the Expert 400 rating this year. LUKOIL is in second place.
Russneft's Gutseriev Surface in Britain
Russia has sent an enquiry to Great Britain for the extradition of Mikhail Gutseriev, founder of the Russneft company accused of tax evasion and illegal entrepreneurship.
Russia's Oil and Gas Giants Seek Govt Support
Four biggest oil and gas companies of Russia – LUKOIL, Rosneft, TNK-BP and Gazprom – have addressed the government, seeking loans to pay off foreign debts, ...
A French expert speaks on energy relations between the EU and Russia
Former director of the International Energy Agency Claude Mandil is preparing proposals on energy strategy for the French chairmanship of the European Union.
Russia Ready to Host Office of Gas OPEC
Russia, Egypt, Qatar, Algeria and Iran are willing to host headquarters of gas OPEC – GECF, Interfax-AGI reported.
Gazprom Joint Venture in Bolivia
Bolivian authorities are promising Gazprom and Total 49 percent of the proceeds from the new company. Other foreigners working in the country only have received only 18 percent.
Gazprom Makes a Deal in Venezuela
The state company Petroleos de Venezuela S.A. has announced a new agreement with Gazprom concerning the Russian monopoly's first foreign project to produce liquefied natural gas.
Russia to Hike Gas Price for Armenia
Russia's gas for Armenia's clients will cost $154/ths cu meters starting from April 1, 2009 vs. today's $110/ths cu meters.
French State Co. Buys into Inter RAO
The French state company Electricite de France will become a shareholder in the Russian state OAO Inter RAO UES.
OPEC Welcomes Russia
OPEC would like to welcome Russia as its member. However, Russia hasn't officially applied for the membership.
Gazprom Injected $100m in Venezuela
Gazprom has invested over $100 million in Venezuela; the extraction of heavy crude has been specified as priority.
Venezuela's PDVSA to Control Joint Consortium with Russia
Gazprom, Rosneft, TNK-BP, Surgutneftegaz and LUKOIL will represent Russia in the oil and gas ...
Georgia Refuses Russian Electricity
Georgia has stopped importing electricity from Russia through the Salkhin high-tension power line 220, which runs through Abkhazia.
Russia Has Enough Uranium for 60yr
Russia's nuclear industry has enough uranium reserves for 60 years ahead, even with taking into account the new nuclear plants that haven't been constructed yet.
TNK-BP Board Meets Peacefully
The first meeting of the board of directors of TNK-BP Holding since the owners of the company settled their dispute at the beginning of the month.
Metals
Russian Economy Strong Despite Commodity Fallout
For the past six years, Russia's economy has boomed in large part because of soaring prices for oil and metals. Russia is strong in these areas — too strong, though, for a balanced economy.
Iron Industry Reduces Output
The financial crisis has hit the metal market of Russia. One of the country's giants, Magnitogorsk Iron & Steel Works is lowering production by 15 percent and reducing the number of employees by 10 percent starting from October.
Severstal Reduces U.S. Staff
Suffering from decline in demand caused by the global financial turmoil, Russia's steel giant Severstal intends to send 800 workers of its U.S. subsidiary, Severstal Wheeling Holding, on an unscheduled vacation, which corresponds to roughly 20 percent of the overall labor force of that company.
Crisis Reaches Steel Prices
Prices for metal products in the United States have been falling sharply since the beginning of autumn due to lack of demand in the construction sector and automaking. A similar tendency can be noted on the Russian market, although it is not yet as extreme.
Norilsk Nickel Lost ¼ of Capitalization in 2hr
Global nickel giant Norilsk Nickel of Russia shed over 24 percent on RTS October 6, having lost nearly a quarter of capitalization during two trading hours.
Rusal Presented With Buyback
In GMK Norilsk Nickel, they face another escalation of the conflict of holders – Vladimir Potanin's Interros and Rusal of Oleg Deripaska.
Other Government
Court Supports Privatization
The presidium of the Supreme Court of Arbitration has simultaneously refused to hear three cases in which the government has challenged the results of privatization and other business deals of the 1990s.
Fighting Financial Fires With Blini
There is a fundamental incompatibility between open global markets and the universal principles of tolerance and respect that govern it in the West, on the one hand, and the paranoia and aggressiveness of Russia's current leadership, with its cult of isolation and militarism and the modus operandi of street gangsters, on the other hand.
Source of Money Outflow Hasn't Drained
Under the CBR estimate, Russia's foreign exchange assets amounted to $562.8 billion as of September 26, having shown the growth first time since late August.
Russia without Development Concept, U.S. at Fault
The session of the government called by Russian Prime Minister Vladimir Putin to approve a long-term development concept for Russia through 2020 was held yesterday without approving the concept.
Russia Fails to Hold Payment Balance
The state of the payment balance signals that the government's foreign exchange assets of $560 billion will be soon spent for domestic purpose and that the economy's slowdown is almost inevitable.
Budget Surplus Tops 2 Trillion Rubles
The surplus in the Russian federal budget from January to September exceeded 2.5 trillion rubles (8.1 percent of the GDP). A year ago at the same time, the surplus was slightly over 1.6 trillion rubles.
Russia Wards Off Crash, But Fears Linger
Russia last week avoided a massive financial crisis by pumping tens of billions of dollars into its economy.
Russia's Intl. Reserves Down $9 Billion
Russia's international reserves fell almost $9 billion between August 30 and September 5 to $573.6 billion.
Kremlin.ru: Opening Remarks at Meeting with Business Community Leaders
According to President Dmitry Medvedev, "most important tasks at the moment are to protect property rights, strengthen the judicial system and address the corruption issue."
Kremlin.ru: Closing Remarks at Meeting with Business Community Leaders
Despite the active political life that never ceases in our world, the economy, fortunately, is not so highly dependent on political life. In the current situation Russia's economic policy should remain unchanged regardless of various political events.
Kudrin warns Russia to tighten its belt
According to Deputy Prime Minister and Finance Minister Alexei Kudrin, in 2009 the price of Russian oil must not go lower than $70 per barrel. If it does, the security of Russia's budget system will come under threat. This will be much more critical than the crash of the stock exchange or credit problems.
A Good First Step Toward Boosting GDP
While financial markets roiled, the State Duma approved legislation that could give the economy a boost by limiting the number and scope of official inspections of small and medium-size businesses.
Business group hopes Russia can salvage WTO bid
Russia still has a lot of work to do to join the WTO, but it is not an insurmountable list.
Corruption
Corruption, Tax Regulation Are Most Problematic for Russia's Business
The World Economic Forum released yesterday The Global Competitiveness Report 2008-2009. Russia climbed to the 51st position from the 58th place.
Corruption Findings In
Nearly every third Russian has paid a bribe and Moscow is the most corrupt region in Russia.
Russia Ranks High in Corruption
Russia ranked 147th by corruption in a survey by the Transparency International organization, on the same level as Bangladesh, Kenya and Syria.
Opening Address at the Meeting of the Anti-Corruption Council
"Corruption in our country has taken on not only massive dimensions and occurs on a massive scale, it has also become commonplace and routine, - a serious illness which affects our economy and corrupts all of society."
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