'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 ...

According to a Reuters poll, analysts have suggested that GDP will drop by 4.7% this year and growth is unlikely to return by the end of the year.  Dmitry Medvedev has pledged to increase social spending in some areas in the 2010-2011 budget.  The Russian Deputy Prime Minister Dmitry Kozak has said that in order to support the construction industry, 12,000 apartments have been bought to house 35,000 citizens.  Rusal chairman Viktor Vekselberg has said that as part of its debt restructuring, Vneshekonombank may sell bonds convertible to stock in Rusal and Rusal may sell its $4 billion 25% stake in Norilsk Nickel.  Norilsk Nickel is looking to change the terms of debt repayments linked to the 2007 takeover of Canada's LionOre.  Communications provider Mobile TeleSystems plans to storm Russia with web connections and services hoping to ...

To derail European attempts to diversify energy suppliers, Russia would need to purchase all natural gas exports of its Caspian neighbors, Bloomberg reports.  Russia is set to build a wind farm on Russky Island by 2012.  Rushydro should come to a financial agreement with Rusal by the end of the summer over the Boguchansk electricity plant.  Surgutneftegaz will be prevented from voting in MOL's annual meeting, as the company's purchase of a stake remains unapproved by Hungary's Energy Office.  The world's biggest offshore oil company, StatoilHydro, says that Russia holds the most potential for Arctic exploration.  The company faces stiff competition in Norway's Arctic zone as Exxon Mobil Corp. and Royal Dutch Shell Plc make bids for the region.  TNK-BP is reportedly contemplating buying Kazakh oil company Zhaikmunai.  The company is also seeking a $315 million ...

The ruble has reached its highest level in two and a half months against its basket currency.  Sberbank CEO German Gref says that Russia will see a 'certain stabilization this March-April'.  VTB is to take a 75% minus one share stake in crisis-hit Dynamo football club.  Diamond producer Alrosa has said it will cut production by one-fifth this year.  A group of consumer cooperatives has announced that it plans to merge into one large company, with help from state banks.  Rosneft has repaid a $577 million loan to VEB more than six months in advance.  The Guinean Justice Ministry will contemplate legal action over Rusal's acquisition of Friguia bauxite and alumina complex.  The tender for the development of the Big Ussuri Island bridge has been won by Moscow's Financial-Organisational Consulting.  Norilsk Nickel may sells ...

blockquote“A significant amount, if not all, of the speculative attacks on the ruble are funded by the central bank itself,” said Vladimir Osakovsky, Moscow-based economist for UniCredit/blockquotepThe underlying dynamics of the current ruble devaluation are provoking more than a little consternation in Russia at the moment. In the forefront of the debate are data from Bank Rossii (the central bank) which show they lent 7.7 trillion rubles ($214 billion) in overnight and seven-day loans (secured with bonds or other collateral) in just 16 trading days last month - this was about double the 4.8 trillion rubles provided via so-called repurchase auctions in December. Over the same period the ruble lost 18 percent against the dollar. The question is, is there a connection here?/ppRussia's banking authorities now certainly seem to think there is and Kommersant reported (Friday) that policy makers planned to reduce bank loans in an attempt to limit ...

Russia’s current woes can be readily summed up in just one single variable – the value of the ruble – and this value, as we all know, is falling. Almost uncontrollably so.br /br /blockquoteThe bank’s target will be “very quickly” breached without more intervention, said Gaelle Blanchard of Societe Generale SA in London. “Right now the market is convinced it wants to see the ruble lower,” Blanchard said. “As long as the central bank gives these targets, then speculators are going to have something to aim for.”br /br //blockquoteblockquote“The market is testing whether the authorities see this band as something permanent or something that will move,” said Lars Rassmussen, an emerging markets analyst at Danske Bank A/S. “Our view is that they’ll move it because it’s not worth wasting the reserves for a band that is obviously not wide enough.”/blockquoteblockquoteFirst Deputy Prime Minister Igor Shuvalov expressed regret that the general …

strongBusiness New Europe /strongbr /br /Jason Corcoran in Moscow br /br /January 23, 2009br /br /Merrill Lynch has ousted JP Morgan Chase to take the crown as leading adviser to Russian merger and acquisitions in 2008. br /br /US bank JP Morgan narrowly beat its Wall Street rival in 2007 due to its involvement in announced deals worth $40.8bn, compared with Merrill’s $39.2bn. However, last year Merrill nudged ahead through advising on 14 deals worth $24bn compared with JP Morgan’s 12 transactions worth $19.6bn, according to statistics prepared for bne by data provider Thomson Reuters. br /br /During the year, Merrill’s most notable deals included advising steelmaker Severstal on its $775m acquisition of US steel products manufacturer Esmark, as well as Rusal, the world’s largest aluminium producer, on its taking a 25% holding in domestic rival Norilsk Nickel. br /br /Overall, fees generated from MA were well down last year, …