Today in Russian Business – August 12, 2009

In the last quarter GDP fell by 10.9%, the most since 1995, prompting ‘slump‘ headlines.  The New York Times however reports optimism among analysts, one of whom says ‘it is very likely that Russia has bottomed out and that recovery has started’.  Baby food producer Wimm-Bill-Dann will open a $500 million plant in Tbilisi in September.  A spokeswoman says: ‘we hope that our Caucasian milk… will help improve relations between Russia and Georgia’.  Apparently Russia may face a deficit in dairy products this autumn as small dairies face bankruptcy.  General Motors will apparently not reopen the sale process for Opel and will choose a buyer between its two remaining bidders.  Reuters reports on how the mining of gold, a commodity which has weathered the recession well, has resumed in some of the most remote Gulag-scarred parts of Russia.  MTS mobile phone operator has announced a rise in sales and a higher than expected quarterly net profit.  Bloomberg has a very different take on the company’s fortunes, referring to second-quarter profit falling by 15% and demand stalling.