'We will have to take into account this style of dealing with partners in the future, though this scornful approach toward partners mainly affects the Europeans, not us':  Putin reacts to the aborted GM deal.   Finance Minister Alexei Kudrin was in London yesterday to discuss the envisaged issue of $17.8 billion in sovereign eurobonds - the selling of which is a core part of the government's deficit-reducing strategy.  A bond issue would 'be likely to draw keen interest from investors because Russia,[...] is in far better shape financially than a decade ago' says the New York Times.   Kudrin is planning changes to the budget which would see funds originally designed to recapitalize banks redirected to flagging industrial giants (such as Avtovaz) and the jobless, as the economic situation has been less harsh than expected.  In ...

Reuters has a feature on the nanotechnology surge; Rusnano head Anatoly Chubais sees the crisis as an opportunity to drive the economy away from oil and gas.  Chubais has apparently said that Russia's Moscow Bank may create an innovation market that would have a trading floor the equivalent of Nasdaq.  Bloomberg reports on how the collapse in oil and gas prices has pushed Vladimir Putin towards economic reform.  Rushydro is looking for a 10-year, $234.7 million loan to pay for some of the repairs to the Sayano-Shushenskaya power plant.  Truck maker Kamaz intends to establish two joint ventures with US company Case New Holland.  To prevent the ruble from strengthening and assist exporters, Russia's central bank reportedly bought between $750 million and $1 billion in foreign currency yesterday.  Billionaire Mikhail Prokhorov is quoted in the Moscow ...

The Russian government plans to invite Singaporean investors to buy up stakes in state-owned firms, as part of the Kremlin's privatization drive.  Potash producer Silvinit may seek a foreign company to help it develop its largest field, according to Bloomberg.  Reuters has a feature on how the Lada is being displaced as Cubans' car of choice, with the Chinese Geely CK appearing on the roads.  Lada-enthusiasts says however that the automobile will retain its 'cult status'.  Russia's biggest mobile phone operator MTS has secured two loans worth $1.96 billion from Sberbank to be used to finance investments, including a potential purchase of a 51% stake in Comstar.  Mobile phones sales fell nearly 32% in the third quarter.  Where does Telenor go from here?: Reuters predicts different outcomes of its next appeal hearing.  French prosecutors have ...

Ria-Novosti reports that first deputy prime minister Igor Shuvalov believes the path towards a customs union with Belarus and Kazakhstan is clear.  Bank of America Corp. has increased Russia's economic growth forecast for 2010 to 3.9% from 2.4%.  Citigroup Inc. estimates that Russia's economy will grow faster than previously estimated, according to Bloomberg.  Arabtec Holding has started foundation-test work on the Gazprom tower.  Sberbank may sell its stake in Opel to VEB, if a sale to GAZ Group falls through, Reuters reports.  President Medvedev has told German Chancellor Angela Merkel that he is willing to provide state guarantees for Opel investments in Russia, says Reuters.  A possible windfall for Avtovaz: the company may be assembling Nissan cars by 2012.  The Telegraph reports on tough times for the Lada.  The Times reports that Yelena ...

The Moscow Times suggests that Russia will be consigned to the sidelines in today's  G20 meeting to discuss creating a global financial architecture, as, for all of its riches, the country lags behind in industrial development.  With all of the legal and financial perils of investing in Russia - why does it still attract as many companies as it does? asks Business Week.  After being threatened with bankruptcy, Rusal apparently repaid debts worth $85.9 million to Alfa-Bank.  A delegation of Russian lobbyists intends to encourage US investors to invest in small-scale construction and timber in exchange for help in entering the Russian market.  Sberbank has acquired a 'golden share' in the search engine Yandex.  Moscow ranks 67th out of 75 world financial centers, just below Manila, Prague and Lisbon, according to a new report.  Bloomberg examines the ...

The FT reports that Russia and China have warned that the impact of the financial crisis is far from over.  The cabinet has approved a 2010 draft budget, with major cuts on managing government ministries, which may see officials forced to reduce spending by 20% on their cars, phones and offices.  Next year will see an apparent record amount of spending on pensions, a 46% increase, amounting to 10% of the GDP.  The Prime Minster has warned against 'mechanical' cuts in spending, fearing that a sense of financial drought could prolong the downturn.  Gaz group has apparently signed a debt-restructuring agreement with 21 domestic and foreign banks.  Avtovaz is planning to make 27,600 employees redundant.  Hasbro has opened an office in Moscow, hoping to see their cut of the huge toy market 'grow significantly'.  Eyebrow-raising ...

Brooklyn could soon have itself a new Russian billionaire patron, as Mikhail Prokhorov has reportedly made an offer to own the New Jersey Nets, helping real estate developer Bruce Ratner with a $700 million bond to move the team and build a new arena in the New York City borough.Prokhorov, who has been developing an increasingly well known public profile as a Russian Richard Branson (see him jump his jet ski here), announced the news on his blog.  In one translation of his statement, Prokhorov says he is interested in bringing the "technology" of the NBA business model back to Russia, to build a sustainable and profitable professional league, and to give Russia a rightful place in the world of elite U.S. sports.This move will put Prokhorov right up there next to Chelsea-owner Roman ...

Bloomberg reports that GDP will apparently shrink 8.5% this year, but the government hopes to see a return to growth in 2010.  The IMF says that Russia's economy will enjoy a 'fairly rapid recovery' in the second half of the year as a result of the government's anti-crisis measures.  The Cabinet will review final budget figures for next year that suggest spending will stay the same as this year in spite of the crisis.  The government plans to use the last of the Reserve Fund and resume borrowing for the first time in 11 years to fulfill its projections.  Not 'possible, or even beneficial' - Anders Aslund gets real about the ruble as reserve currency in the Moscow Times.  Sberbank has posted a $243.7 million net profit for January-August 2009, a 92% drop on the same ...

Economic aide Arkady Dvorkovich has complained that G20 nations are not abstaining from protectionism as promised at the April summit.  Anti-crisis measures will be upheld, Dvorkovich added, apparently contradicting the Central Bank chairman who had said that the crisis has receded enough to consider withdrawing some measures.  Diversifying Russia's economy is going to be an uphill struggle, one that has been put on the back burner by the financial crisis, argues Reuters.  A trade union at Avtovaz automaker has announced it will hold mass protests against the company's decision to enforce redundancies, according to RFE/RL.  Oleg Deripaska's GAZ Group will slash 14,000 jobs.  GAZ will get its hands on GM technology as part of the Opel deal, posing possible problems for the US carmaker's market share in Russia.  Mikhail Prokhorov may bankroll a Brooklyn basketball stadium.  ...

The Central Bank has cut its key refinancing rate to 10.5%, the sixth such cut since April.  Russia could borrow less than $18 billion abroad next year if oil prices stay high.  Finance Minister Alexei Kudrin has defended BRIC as a 'locomotive of the global economy'.  Apparently Opel will be sending less funds to Russia than initially reported: €170 million rather than €600 million.  Sberbank has insisted that the operations of Opel will not be directly influenced by the government.  Almost 5,000 Avtovaz employees face redundancy, according to ITAR-TASS.  Mikhail Prokhorov has complained that his charitable foundation has been forced to leave the city of Norilsk because of threats from 'feudal lords'.  Billionaire Alexander Lebedev has offered to give away shares in some of his firms to 'big western names' to bring them ...