Today in Russian Business – Dec 5th, 2008

Russia’s foreign reserves rose $5 billion last week, signaling a departure from $12-15 billion weekly losses the reserves suffered this fall, and Vladimir Putin made sure to point it out during yesterday’s q&a.  Expectations of a more significant ruble devaluation, like the one implemented today, are ‘encouraging individuals, banks and companies to convert rubles into foreign currencies and hoard the cash.‘  Vladimir Putin promised that Russia would avoidsharp jumps‘ in the ruble, but efforts to prop up the currency are a ‘waste‘, says this article, as long as low oil prices turn investors away from commodity-led economies.  A British company is suing a Russian web entrepreneur, alleging that he stole an idea for the ‘classmates‘ website.  Russia may help build India its own spacecraft after 2015.  India will remain Russia’s main arms export destination this year, with Rosoboronexport anticipating total Russian arms exports of more than $6.2 billion.