The first ever visit by a Russian President to Serbia has yielded another 'strategic partnership', this time soldered with a $1.5 billion loan to the debt-hit nation.  A certain diplomatic interdependence between the two countries seems to be a de facto necessity, as the Balkan state relies upon Moscow for backing in the U.N. Security Council to counter the secession of Kosovo.  For Russia, on the other hand, who vociferously opposed the bombing of Serbia by NATO in 1999, the area is 'an arena for Moscow's effort to resurrect its former status as a world power', the Washington Post suggests.A deal in Eastern Europe wouldn't be a deal without some whiff of gas.  Gazprom Neft has reason ...

Luke Harding has two pieces on Russian climate change in today's Guardian: an audio report on Northern-Siberia's seasonal shifts, and a special report on the Yamal peninsula.  Rumors abound that China, Japan, Russia and France have been in secret talks on using an alternative to the dollar for oil trading, but OPEC's Secretary General says that, even if there were to be a shift, it would be a long process, and that 'tradition' would make it difficult.  Serbian oil monopoly NIS, majority owned by Gazprom Neft, has signed a $100 million loan with Bank of Moscow on the back of Medvedev's Belgrade visit.  Italy, Russia, and Turkey, have signed a joint statement on the construction of the Samsun-Ceyhan oil pipeline linking Turkey's Black Sea coast and Mediterranean coast (the New York Times has a special report today ...

The Chief Financial Officer of VTB, Nikolai Tsekhomsky, has resigned. He will be replaced by Herbert Moos.  Microsoft claims that the Federal anti-monopoly service's probe into its activities, which has now closed, found no breach of ant-trust laws in regard to the Windows XP operating system.  The owner of Norilsk Nickel, Vladimir Potanin, has argued that the ruble must weaken to help Russia's exporters.  An article in Bloomberg suggests that the currency will fall 10% by March as the government fails to stem its deficit and continues to prioritize liquidity.  GM is unlikely to sell Opel to Magna because the carmaker is unwilling to give its intellectual property over to Russia, says the head of a pro-business group in Angela Merkel's party.  Mobile operator Megafon has posted a 4% increase in profit in the first six ...

Energy Minister Sergei Shmatko has said that Russia's gas output may fall by 18-20% this year.  Shmatko has adopted a more reassuring tone than his counterparts on the supply of gas to Europe, saying 'there are all the necessary reasons to see stable supplies . . . The problems of January 2009 will not be repeated'.  BP has said that it will nominate Pavel Skitovich, a former envoy to Uganda and Polyus CEO, for the post of CEO at TNK-BP, an appointment which should end the standoff between shareholders that has marred the company's fortunes of late.  This week Russia is expected to sign a deal to supply the US with low-enriched uranium.  Gazprom Neft is moving a step closer to a takeover of Sibir Energy as it increases its stake, making a cash offer for ...

Key News• The euro fell below $1.28 for the first time since November 2006 and the pound tumbled to a five- year low on speculation European central banks will cut interest rates as the global economy heads for recession.• Russian companies may default on almost a third of local-currency bonds as soaring borrowing costs make it ``impossible'' to refinance the debt, according to the Bank of Moscow.Key Reports Due (WSJ):No major economic indicators scheduled. 

Quotable "A major source of objection to a free economy is precisely that... it gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself. The existence of a free market does not of course eliminate the need for government. On the contrary, government is essential both as a forum for

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Russia's long-term sovereign credit rating outlook was lowered yesterday (Thursday) - to negative - by Standard & Poor's Ratings Services due to their assessment that the cost of the government's "bank rescue operation'' may increase. S&P cut their outlook from stable, a move which reflects the increased probability of a downgrade at some point in the future. Russia has committed as much as 15 percent of gross domestic product in budgetary and reserve funds to maintain banking liquidity, according to calculations made by the rating agency. At the same time S&P affirmed Russia's BBB+ long-term foreign currency and the A- long-term local currency ratings and the short-term ratings of A-2.``We expect Russian corporate and financial sector default rates to increase asdebtors' access to official funds will vary,'' S&P said in the statement.``Other uncertainties remain regarding what the economic policy response will ...