RussiaToday : Business

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Business

Russian military driven by exports: Russia's military might was on display in Red Square on Friday, as the country paid tribute to its armed forces. The Russian defence industry is an export success, though its outlook is uncertain.

Russian chemical firm targets 5% global share: A Russian chemicals giant is aiming for a 5% share of the world production market of a resin best known for its use in laminates and plastics. EvroChem will pioneer the manufacture of melamine in partnership with the German company Lurgi – and believes it can bring costs down in Russia.

Is it time to free the rouble?: The appreciating rouble is an attractive asset for international investors. However to become a real reserve currency the rouble has to break free from Central Bank control. President Medvedev previously voiced his support for the move, but experts doubt the time for it has yet come.

Russia looks to boost economic zones: The Russian Government is slowly narrowing down applications for the special economic zones, designed to drive growth through low taxes and government investment.

Oil producers suffer from inflation hikes: Shares in Russian oil firms are in high demand, as crude oil has hit $US122 a barrel this week. But it’s not all good news for the industry. Inflation is starting to bite oil companies.

Household gas will rise 40%: Minister: The average price of household gas in Russia will increase by 40% in 2011, according to Deputy Economic Development Minister. But Andrey Klepach says prices will remain virtually unchanged until then.

$100 helicopters to beat Moscow traffic: Moscow’s notoriously heavy traffic has spurned a new industry in commuter helicopters. From next year, helicopters will run every 30 minutes from Moscow’s Vnukovo-3 airport. Ten berths are being built at the airport, linking it to the city's financial district.

Inflation slices into household budgets: With price freezes on essential food items lifted this month, Russian inflation remains high. Central banks throughout Europe say they have few answers, and finance ministries are now being called on to bring government spending under control.

Rouble will be best currency investment: Bloomberg: According to Bloomberg, the world’s biggest banks are advising the purchase of roubles, betting that Medvedev will promote a policy of strengthening the Russian currency.

Airport tariffs take off: Russia's Federal Tariff Service has redefined the way airlines will be charged for using the country's airports. This comes in the wake of rapidly growing fuel prices, which have risen by 20% since the beginning of the year.

Russia’s longest bridge opens up new energy resources: The longest railway bridge in Russia is due to be finished by 2009. The link across the Yuribey River on the Yamal Peninsula in the north-west of Siberia is probably the most challenging construction project under way in the country.

No deal! Microsoft walks away from Yahoo! bid: Microsoft has abandoned its bid to take over internet company Yahoo! after months of negotiations.

Book now! Space tourism the next big thing: A private Russian company has commissioned the Myasishchev Aerospace Bureau to design a tourist spacecraft. The bureau says it's working on a feasibility study for the spacecraft and the project is fully funded by the undisclosed firm.

Jet fuel monopolies hurting Russian airlines: The price of jet fuel is starting to be a heavy burden for Russian airlines, which pay more than their European and American counterparts.

Bentley steps up a gear in Russia: While economic uncertainty is putting a dent in the luxury car market in many countries, Russian buyers are still snapping up prestige Bentleys. The British car-maker is so confident of the Russian market, it has drawn up ambitious plans for its expansion.

Moscow’s airports battle it out: Moscow’s three international airports have long been in competition to attract client airlines. Now airlines are looking to create hubs with alliance partners, thus hoping to improve airport infrastructure.

Bidding war likely for Russia’s largest copper deposit: The closing date for bids to develop one of the world’s largest copper deposits, Russia's Udokan field, is only two weeks away. With copper prices climbing as a result of strong global demand, analysts are predicting a bidding war among some of the Russia's biggest companies.

Banks eye Russia’s National Wealth Fund: A tug-of-war is developing over Russia's newly-created National Wealth Fund, which is worth $US 32 billion. The country's Central Bank is keen to use it to build up Russian stakes in foreign firms, while some of the country's top corporate bankers want the money to be used at home.

Kyoto projects gain momentum: The global carbon credit market has nearly tripled in the last three years, according to New Carbon Finance. The market is a key part of the global effort to reduce emissions and protect the environment, as stipulated by the Kyoto Protocol.

Trade between Russia and EU held up by Lithuania: At a meeting in Luxembourg the EU countries have failed to agree on a mandate for partnership talks with Russia.

Russia’s biggest bank announces bumper profits: Russias largest bank, Sberbank, has reported net profits of $US 4.5 billion for 2007.

Russia’s WTO bid faces another stumbling block: Ukraine has thrown its support behind Russia’s accession to the World Trade Organisation. However, fellow neighbour Georgia is blocking the bid over Moscow’s support for the breakaway republics of Abkhazia and South Ossetia.

Is the economy overheating?: Monday’s interest rate hike by the Russian Central Bank is the latest move to cool what some see as an overheating economy. However, tightening money supply may lead to further pressure on the banking system.

Expensive bank loans drive firms to stock market: Russia’s stock market could take over from the banks as the principal source of corporate finance in Russia in the near future, according to the head of Federal Financial Markets Service, Vladimir Milovidov.

Hi-tech profits turn to losses: Sistema's hi-tech arm, Sitronics, has posted a fourth-quarter loss for 2007 of just over $US 46.1 million. For the same period in 2006 the company recorded a net profit of $US 24.3 million.

Ouch! Credit crisis: the worst is yet to come: Russia’s top credit rating company has accused its rivals of accepting conflicts of interest even worse than their American counterparts who are being blamed for the worldwide credit crisis.

Ukraine pays off gas debt to Russia: According to Ukraine’s Prime Minister Yulia Timoshenko, Ukraine has paid off all its natural gas debts to Russia.

Gazprom optimistic about Serbia pipeline deal: Gazprom oil subsidiary, Gazpromneft, says it remains optimistic about Russia-Serbia energy co-operation, despite several delays in the ratification of an energy agreement between the two nations.

The future of electricity: Experts have announced April 30 as the estimative day to exclude the common and preferred shares of RAO UES from market indexes due to the reorganisation of the electricity giant. The split of the monopoly and government’s promised step towards an open electricity market raises plenty of hopes as well as questions among the investors.

Rich Russian banks to buy European rivals: The purchase of major EU bank, B.M.P.S. by a Russian counterpart could mark the start of a shopping spree by the country’s cash-rich banks.

Russian oil giant to expand in the Caspian: Russia's biggest private oil company Lukoil is attempting to expand its presence abroad, with the Caspian region being among its top priorities. The oil giant plans to increase its gas output in Uzbekistan to a peak of 16 billion cubic metres in the next seven years.

Major oil company to be shared: Oleg Deripaska has said the Basic Element holding owned by him will not be the sole owner of Russneft. According to Deripaska, it will run the Russian oil company with Switzerland’s Glencore.

Outgoing Italian PM declines South Stream job offer: Italy’s outgoing PM Romano Prodi has formally turned down a top post in South Stream AG, a European gas pipeline project. During a meeting with Gazprom CEO Aleksey Miller he said 'he was flattered', but declined the proposal.

Austrian companies grab the chance to invest in Sochi: Russia has been promoting business opportunities in its Krasnodar region at a conference in Vienna this week. During the event, the Austrian builder Strabag signed a $US 90 MLN contract to renovate the Adler Airport near Sochi.

Snobs flock to new Russian mag: Russia’s elites and super-rich oligarchs are constantly looking for new ways to flaunt their wealth. Soon they’ll have a magazine, aptly named Snob, to help them.

Aluminium giant buys into world’s largest nickel producer: Russian billionaire Mikhail Prokhorov has sold his 25% plus one share in the world's largest nickel and palladium producer Norilsk Nickel to the aluminium giant Rusal, headed by Oleg Deripaska.

Russia shores up banking system: Russia’s Ministry of Finance has sought to safeguard the country’s banking system by pouring $ US 752.7 million into commercial banks.

Russia’s Severstal buys into American rival: Severstal, Russia’s top steel producer, has increased its stake in the US-based steel mill SeverCorr to 85%.

Russia’s RTS extends trading hours: The head of Russia's RTS stock exchange, Roman Goryunov, has confirmed to RT that it will launch evening trade in futures and options. The longer hours are the latest bid by the RTS to grab more of the futures market.

Russia lures foreign banks: Russia is proving an attractive haven for foreign banks - both large and small. Montenegro's financial group Atlas has chosen Russia to open its first foreign bank affiliate. A.B.M. Bank will focus on Russian residents who invest in Montenegro's real estate and tourism markets.