Today in Russian Business – May 28, 2008

The Russian Union of Industrialists and Entrepreneurs says that the country needs new legislation if it is to become a leading producer of biofuels, as “they are currently taxed the same as vodka.” Polyus Gold said that Britain’s financial watchdog was investigating whether it broke regulations when its depositary receipts jumped last week. Russia-focused private equity firm Da Vinci Capital Management is to list a fund in London this week, but the company said it would be hard to raise funds due to difficult market conditions. Russia could give regions the right to cut taxes on new cars that have lower carbon dioxide emissions. Moscow office rents almost doubled in the past year to become the second-highest in the world. “Faced with a June 1 international deadline for switching to e-ticketing and clunky Russian legislation that requires a paper trail, Russia’s major airlines have found a way to comply with both.” Evraz Group, the steelmaker part-owned by Roman Abramovich, plans to invest $1.8 billion in new Russian steel mills, seeking to boost sales of products in the country by 40%. In the first quarter of 2008, 71% of federal officials were female, because “the government is unable to compete with the private sector on the labor market.”