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Today in Russian Business – August 27, 2009

Prime Minister Putin has proposed revamping the financing structure for the Sochi Olympics as a state corporation model has not proved to be wholly workable, favoring a return to the previous model used, the federal targeted program.  Inflation in Russia reached 8.1% in January-July.  Retailer Magnit’s profits have skyrocketed from $65.9 million last year to $117.9 million this year, exceeding analyst predictions as its discount stores attract bargain hunting shoppers.  Central Bank data has shown that interest rates on loans to Russian companies hit a nine-month low in July.  The BBC reports on North Korean laborers working in difficult conditions in a forest in Russia’s Far East for the Russian Timber Group, a company run by British businessman Peter Hambro and a Russian partner.  An article in the Washington Post suggests that GM’s prevaricating over the sale of Opel stems from a persistent Cold War anxiety about handing over American technology to a a consortium largely financed by a Russian company which is state owned.