RussiaToday : Business

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Business

Will we eat less?: The problem of rising food prices is expected to be one of the key points at the upcoming G8 summit in Japan. In Russia, prices have been growing around three times faster than in the EU and are likely to increase still further, according to experts.

Russian largest carmaker expands into car parts: Russia’s major automaker Avtovaz is expanding further, into the car parts industry. Its car-making division, together with Russian Technologies Corporation and investment bank Troika Dialog, plan to create an auto parts venture. The holding will be independent and may later float on the stock market.

Gas in Europe will hit $US 500 in 2008, says Gazprom chief: Gas prices to Europe could reach $US 500 per thousand cubic metres by the end of this year, up from the current $US 410, according to Gazprom's chief. Aleksey Miller says it could go even higher if oil prices continue to rise.

Russian bureaucrats' take $US 125 billion a year: Ruling party United Russia has held a special congress in Moscow to promise business leaders that it will stop interfering in their work. It follows President Medvedev's criticism of bureaucrats' influence on the Russian economy.

MySpace & MTS create exclusive wap-portal: American social network Myspace and the biggest Russian mobile operator MTS have announced a partnership. Under the agreement Myspace will create an exclusive wap-portal for subscribers of MTS.

Russia’s Power Machines sparks to life in Iraq: Russia’s leading power engineering firm has resumed equipment supplies to a huge Iraqi hydroelectric project after finance was approved by the country’s Energy Ministry. Power Machines Company is now free to supply the Iraqi Al Adaim power plant in Iraq’s north.

Ferrari plans Russian rollout: On the heels of other world automakers, Ferrari has decided to expand into the Russian market and set up its own subsidiary importer in the next 15 months.

Will Russia be Starbucks’ saviour?: The world's largest coffeehouse chain Starbucks is closing even more of its U.S. shops. Around 600 underperforming stores will shut over the next 12 months. But how will this move affect the company's business in Russia?

TNK-BP expats allowed back into Russia: The row between TNK-BP shareholders is in full swing. One of the company's owners, Viktor Vekselberg, has called an extraordinary meeting of directors next Monday. It will consider canceling the contract of CEO Robert Dudley.

Global crisis halts Russian insurance growth: In a sign that the credit crunch may be spreading, the growth of Russia’s insurance market is slowing. That shows that the more Russia integrates with world markets, the more it is affected by the fallout of the global economic crisis.

British giants to develop Russia’s Far East: Britain's Peter Hambro Mining and Aricom will invest about $US 5 BLN over the next six years developing mining, banking and infrastructure assets in Russia's Far East.

Small business gets leg-up from Russian government: Relief for small businesses in Russia may be coming, after the government discussed draft laws aimed at making it easier to launch and develop a firm.

Fortis gets $630 MLN from Russian billionaire: Russian billionaire Suleiman Kerimov has pumped more than $630 million into the Belgian-Dutch financial services group Fortis as part of its survival plan.

Soaring prices spark debate over inflation: Inflation in Russia has reached 8.7% sparking fresh debate over the future of the country’s economy. Prime Minister Vladimir Putin says higher spending must go ahead to maintain the pace of development. But Finance Minister Aleksey Kudrin argues the economy is overheating and wants to cut expenditure.

Oman plans to leave Caspian pipeline project: Oman is reportedly planning to pull out of the Caspian Pipeline Consortium which pumps oil from Kazakhstan to Russia's Black Sea coast. The sultanate’s government said it was not making enough profit from the project and wanted to sell its 7% stake. It comes as the Kremlin is set to tighten its grip on Central Asian oil supplies.

BoNY risks $US22.5 BLN in Russian fraud case: The big guns of the U.S. legal establishment have flown to Moscow to take sides in a massive money-laundering case against the Bank of New York. At stake is the reputation of America’s oldest bank, which is worried it won’t get a fair trial in Russia.

Nickel giant elects new board: The world’s bigget nickel producer, Norilsk Nickel, has elected a new board of directors. Among the new members are representatives of Rusal, which bought a stake in the company earlier this year. The new board is expected to settle differences over how the company is run.

Government eyes investment opportunities in the U.S.: Vladimir Putin says he wants to develop Russia’s Sovereign Wealth Fund by investing oil revenues abroad. At a meeting in Moscow with U.S. Treasury Secretary, Henry Paulson, he discussed bilateral trade, investment opportunities and how Russia can help solve problems with the global economy.

Putin: Fighting inflation might slow down economic growth: The Russian Prime Minister Vladimir Putin has said fighting inflation is not justified if it slows down economic growth. He was discussing the development of the Russian economy with the country's leading political party, United Russia.

Energy boss's last day at the helm: Anatoly Chubais, the former head of the state electricity monopoly RAO UES has his last working day on Monday as Unified Energy System ends its five-year transition period.

Investors await opening of Russian commodity exchange: Russia’s first commodity exchange is scheduled to open in St. Petersburg this summer. Gazprom has said it will trade gas futures on it. The company says it wants to improve the pricing system for natural gas.

Counting the cost of transportation in Russia: One of the few Russian logistics operators operating in the country, Smart Logistics Group, has opened a new warehouse facility, which it says is the largest in Europe. Though aiming to make life easier for hundreds of cargo owners, this warehouse will not offset the high cost of transport for companies working in Russia.

Pipeline access could block new Russia-EU deal: The first round of talks over a new Partnership and Co-operation Agreement between Russia and the EU will start in July. But there are a number of unresolved issues, including the Energy Charter Treaty.

New Gazprom boss to meet the neighbours: Gazprom’s new chairman, First Deputy Prime Minister Viktor Zubkov, will have his hands full in the coming months, especially when it comes to negotiating gas prices with neighbouring states.

VTB shareholders doubtful about its prospects: VTB has told its shareholders it will pay them 50% of the bank's earnings. But investors have mixed reactions on the projected performance of Russia’s second largest bank, following losses incurred after last year's IPO.

Gazprom votes in new board: Russian energy giant Gazprom has announced its new board of directors. Russian First Deputy Prime Minister Viktor Zubkov, who was elected Chairman of the Board, and Economic Development Minister,Elvira Nabiullina, are the only new faces following Friday's election.

Gazprom has cash waiting for TNK-BP gas field: Gazprom says it has the money to buy the Kovykta gas field from owners TNK-BP. The state-controlled energy giant says it will not need to borrow to make the purchase. Despite being in debt to the tune of US$ 37 billion, experts say Gazprom has enough cash for the deal.

TNK-BP’s future on the line as shareholders vote for new board: The annual general meeting of TNK-BP shareholders has taken place on Thursday in Moscow’s President Hotel. A new board of directors has been elected while three Russian members of the company had earlier asked CEO Robert Dudley to remove them from the list of candidates to the new board.

Flag sales break records: They're all over the place: flying from windows, fixed on car roofs, plastered on the walls of pubs; they're even on people’s faces. And its all thanks to the performance of Russia's footballers in Euro 2008. It's hard to recall a time when the Russian flag was more prevalent.

Half of Europe’s millionaires are Russian: Half of Europe’s millionaires are Russian, according to financial group Merrill Lynch. A report by the U.S. firm found the number of rich Russians is growing twice as fast as the global rate.

Russia rules out early cut in VAT: Russian manufacturers have long complained that Value Added Tax (VAT) in the country is too high. However, Finance Minister Aleksey Kudrin says it’s too early to talk about cutting it. His remark sparked heated discussion at a tax conference on Wednesday.

Billionaires to unite to create world metal leader?: Four Russian tycoons may soon pool their assets, creating a metals-and-mining holding company. Alisher Usmanov has invited fellow Russian metals moguls Vladimir Potanin, Viktor Vekselberg and Oleg Deripaska to merge their resources.

More tax cuts in pipeline to help oil prices stabilise: Russia's oil industry is likely to benefit from more tax cuts in the near future, according to Finance Minister Alexey Kudrin. However, he doesn’t support the ministry’s plan to reduce Value Added Tax (VAT) as he thinks it will impair the country’s budget.

Travellers pay as jet fuel suppliers line pockets: Last week the Federal Anti-monopoly Service said it was investigating the role of some oil majors in fixing prices. The service is now looking into domestic airlines and tour operators over claims that they could be raising ticket prices unfairly.

Major generator postpones greenhouse gas quotas tender: Generating company OGK-2 has abandoned plans to hold a tender for greenhouse gas quotas it gained in the framework of building two new Combined Cycle Gas Turbine (CCGT) plants.

German firm wrangles with Gazprom over gas field: Germany energy company E.On Ruhrgas is hoping to finalise an asset swap with Gazprom for 25 per cent of the Yuzhnorusskoe gas field by the end of the year. But the chairman of E.On says it may drop the idea of buying a stake in one of Russia’s larges gas fields if Gazprom rejects its new offer.

Could Gazprom intervention end TNK-BP row?: Russian labour watchdog has fined the TNK-BP CEO, Robert Dudley $US 125 for violations of the labour code. The conflict between the Russian and British shareholders, which started over the company's alleged underperformance and disagreements over its development strategy, is close to a boiling point.

Will new milk law boost Russia’s dairy industry?: Russia's dairy industry is still dependent on imports for much of its milk. The country’s government has adopted new milk regulations in an effort to promote home production. Under new standards only whole milk will be allowed to go under the label of milk.

Government urged to reduce spending: The growth in budget spending should be reduced in the future, according to Russia’s Finance Minister.

Can oil production boost bring down rising costs?: Oil producers and consumers have gathered at the Jeddah Energy Meeting where Saudi Arabia announced it could boost production - depending on consumer demand.