Today in Russian Business – Aug 28, 2008

The Russian government is to spend an extra $4.1 billion supporting agriculture through 2012 and is considering slashing meat imports. “Russia’s agriculture minister said Moscow could cut poultry and pork import quotas by hundreds of thousands of tons, hitting American producers hard and thereby raising prices for American shoppers.” Despite its markets paying a heavy financial penalty for its actions in Georgia, Russia’s international reserves rose to $581.5 billion last week after a $400 million boost. Following China’s lead, Russian steel prices are set to drop from the end of this year. German industry groups have expressed concern that Russia’s rift with the west could damage business relations. The BBC has compiled a summary of trade interests between Russia and Britain. Russia says it will not be ready to lower tariffs and liberalize trade until it has joined the World Trade Organization.