[Again, my apologies for the late posting of this news blast, as I'm covering all the bases on my own today... - Best, James]TODAY:  The United States sells even more arms during a recession, Gorbachev's towering ego, more gas spats between the Kremlin and Kiev, Khodorkovsky talks about jail for life, the Pikalyovo virus spreads, Deripaska doesn't want Opel, and a EU human rights commissioner gets the state-approved tour of Chechnya.Russia and Ukraine are at each other's throats again over natural gas, with the Kremlin accusing Kiev of attempting to alter the contracts.  In a televised meeting with Gazprom's Alexei Millar, President Dmitry Medvedev said "As far as an idea of an advance payment for tariffs, then ...

The chairman of the German government-backed trust designed to oversee the sale of Opel has said that GM cannot afford to keep control of the European unit, as it needs to focus on its fortunes stateside.  According to the New York Times, the company's Vice President maintains that it wishes to sell but that certain questions remain.  The president of AvtoVAZ, Boris Alyoshin, has resigned.  Russia plans to create a holding company to put together the state's stakes in the country's two biggest car makers, Avtovaz and Kamaz.  Car manufacturer Gaz is adapting to the conditions of a low-demand market, says its CEO.  The Moscow Times reports that the number of consumers planning to buy a car within the next year has doubled to 6%.  VTB has acquired rights to a controlling stake in developer Don ...

The Financial Times has an interesting one on Magna's gamble (as a Trojan horse for Russia) to snap up GM's interests in Opel to give the weakened Oleg Deripaska "ownership" of what would be the largest car manufacturer in the world.  Motivating this aggressive business move is not business sense, nor even elaborate geopolitical machinations to impact the German polity, but rather fears over the collapse of industry and the spread of more "Pikalyovo-like" protest events.  At least according to some people interviewed for this piece.

"If the Opel deal does not go ahead, Russia's car industry is only going to survive with the help of the state because it is just not competitive," says Elena Sakhnova, industry analyst at VTB Capital, the Russian investment bank.

Gaz and Avtovaz are significant employers

...

It was clear to many observers that the Canadian auto parts manufacturer Magna was acting partly as a front company Trojan horse to help get Russian state interests deep into Germany's industrial sector with the purchase of a majority stake in Opel from the bankrupt General Motors.  Although it appeared to be a done deal at first (thanks to Sberbank and the Kremlin pressing their client party, the SPD, to push the sale through), now it appears that Opel is taking in other offers - apparently GM feels that Magna/Sberbank group are using heavy-handed political leverage to influence the terms.  The outcome of this transaction will be very interesting in terms of illuminating Germany's future political and business ties to Russia.From the Financial Times:

Magna, with which GM signed an MoU to buy 55 per cent

...

Russia's international reserves rose $6.1 billion last week as the central bank bought foreign currency to slow down the rise of the ruble as oil prices increase.  The Moscow Times reports upon efforts to reduce Russia's dependence upon imported poultry by developing the domestic industry.  A lawsuit launched by a car dealer against the government's increase in tariffs on used cars has been rejected.  Debt-addled car manufacturer AvtoVAZ has approved a cost-cutting anti-crisis plan and the company will spend $2.54 billion from 2010 to 2012 to bolster sales.  The government continues its attempts to support the car industry; the Industry and Trade Ministry has proposed doubling the price ceiling for buying cars that could be subsidized by the government.  In the bid for Opel, carmaker GAZ reportedly has the role of 'industrial partner' in Canadian ...

Putin has revisited the proposal of a new unified property tax, which would reduce the price of costly real estate and bolster local government budgets during the crisis.  The ruble has risen to a three-month high against the dollar as oil reached over $50 a barrel.   The budget deficit has swallowed up some of Russia's oil wealth funds, which lost $13 billion in value in April.   Car manufacturer GAZ will take part in a joint bid for GM's European plants with Ontario-based car parts giant Magna.  General Motors has come to an agreement with four Russian banks to offer consumer loans for its cars at lower interest rates.  Russian Railways, Russia's biggest employer, will seek an extra $910 million in state aid as this year's losses could reach twice the amount predicted.  Vladimir Potanin has ...