Today in Russian Business – August 28, 2009

After a long struggle with local authorities, Ikea will resume its Russia expansion as local officials are beginning ‘to follow the different laws that exist‘ said the Swedish giant’s Russia chief.  X5 Retail group has showed that net income has increased by 87% in the second quarter from a year earlier.  The Central Bank says that it may cut interest rates again after inflation remained unchanged last week.  Putin has said that an extra $4.6 billion will be raised for the state budget in 2010.  The Finance Ministry may reduce the amount of state capital that it had planned to issue in OFZ bonds this year.  Peter Hambro Mining, which plans to change its name to Petropavlovsk, increased its first-half profit more than fivefold following rising production.  The Central Bank appears to be tentatively optimistic about its predictions for bad loans, suggesting they will rise to between 9-10% of the loan portfolio, as opposed to the 10-12% previously forecast.  Chris Weafer in the Moscow Times argues why Russia shouldn’t be celebrating just yet.  Business Week has an overview of corruption in Russia – the biggest obstacle to economic stability?