Today in Russian Business – March 28, 2012

President Medvedev has arrived in New Delhi for the two-day BRICS summit, at which the leadership of the IMF and World Bank will be discussed, amongst other matters.  The Washington Post reports that the BRICS are in fact considering creating their own alternatives to the global banking powerhouses: ‘[b]ut experts cautioned that a lack of unity in foreign policy could undermine their goal’.  Anders Aslund explains in the Moscow Times why he believes Russia is lost within the emerging market entity.  The World Bank’s biannual economic report has found Russia’s economic recovery to be ‘sluggish’ and its level of investment insufficient.  The FT says that the report also notes that if Russia wants to capitalize on WTO membership, it is imperative that its business climate improve.  In the Moscow Times, Kim Iskyan explains why Vladimir Putin will never oversee for the privatization of Sberbank and VTB, to the detriment of Russia’s economy as whole.  In a mammoth sovereign offering, Russia will raise $7 billion in Eurobonds, the largest offering from an emerging market since at least 2000.  Ria-Novosti reports that the number of ‘corruption violations’ revealed in Russia last year increased almost 40% at a tally of 310,000, but less cases reached courts than in 2010.  Catherine Belton in the FT explores how First Deputy Prime Minister’s Igor Shuvalov’s purchase of Gazprom shares exposes systemic cronyism in Russian industry.  The gas monopoly has apparently restricted management bonuses in accordance with a new order made by President Medvedev.   Sanctions against Iran, the rising price of raw labor and the possibility that the government will lift restrictions on utilities tariffs are apparently all likely to have a negative impact on the financial health of Russia’s steelmakers.  News from the country’s largest steelmaker Evraz confirms the pessimistic outlook.