Today in Russian Business – Feb 11th, 2009

Russia’s designer clothing labels are in trouble.  $13 billion worth of infrastructure projects are on hold due to a current lack of private investors, and the government is to spend $350 million of state money on buying locally made cars for officials this year, supposedly to support demand.  Prosecutors warned 70 banks against the misuse of bailout funds provided by the government, instructing not to buy foreign currency with funds intended to stimulate lending.  Russian metals and mining stocks have been on the rise for a week on signs that demand is returning to China, and last year’s arms sales totaled $8.35 billion: a post-Soviet record.