Today in Russian Business – Aug 11, 2008

The Russian stock market has hit a two-year low on the back of conflict in Georgia. “Some saw the slide toward war as a good excuse to dump Russian risk altogether.” Georgia has been praised by foreign investors, “who contrasted its efforts to reassure them over the crisis with those of Russia.” The fighting will stall Israeli-Georgian investments, and Georgia’s Black Sea port of Poti, 51% owned by the United Arab Emirates-based Ras Al-Khaimah Investment Authority, has been damaged by Russian bombing. A Russian billionaire has broken a world record by splashing out €500 million on a villa on the French Riviera, “fueling local worries that the invasion of Russian money on the Côte d’Azur is getting out of hand.” Deutsche Bank has earned more from investment banking fees in Russia in the last 10 years than any other bank.