President Dmitry Medvedev continues to face problems relating to an order he signed pertaining to areas of land near Russia’s borders that foreigners are not allowed to own. According to an article in Vedomosti, the Ukase also affects foreign investors who already own property near the border. The list incorporates 380 “prohibited” areas including Vladivostok, Sochi and some areas around St. Petersburg. The Finnish Ministry of Foreign Affairs has sent a diplomatic note requesting clarifications, as a significant number of Finns own property near the Russian border. It is not clear if the Ukase will apply retroactively and what the procedure would be for expropriation and compensation. Another category of the businesses that can be affected by the Ukase are Russian businessmen who own land plots near the state border through offshore corporate vehicles in countries such as Cyprus. Experts predict that the biggest issue for small and medium businesses in Russia in 2011 will be a sharp increase in taxes related to adopted amendments to the tax code. Not only are the rates of taxation are higher, but also the number of agencies that would have the right to control (read – extort bribes) has been raised dramatically.