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Today in Russian Business – June 26, 2012

Opposition activist Alexei Navalny has been elected to the board of state-controlled airline Aeroflot.  Georges Ugeux from the Huffington Post wonders if it is really possible for Russia to improve its corporate governance record.  Ruchir Sharma, head of emerging markets at Morgan Stanley Investment Management has warned that the drop in global oil prices marks the end of the ‘commodity supercycle’, which will have a sharp detrimental effect on Russia.  Ex-finance minister Alexei Kudrin has lamented that the amount of money used to cover the Pension Fund’s deficit is robbing infrastructure of necessary funds.  The Finance Ministry reportedly wants to withdraw special budgetary privileges given to the republic of Chechnya.  Steel producer Severstal has apparently seen ‘strong demand’ for its plan to buy back 170 million shares.  If Prime Minister Medvedev has his way, farmers may soon lose their subsidies from domestic fertilizer producers.