Today in Russian Business – July 1, 2011

Bank of Moscow will receive the largest ever bailout package for a Russian bank, totaling $14 billion, most of which will be financed by the central bank.  The customs union between Russia and Kazakhstan has created a free-trade zone along their borders, designed to expand the business market and increase competition.  Russia’s largest corporations are the least involved in research and development, says a new report, with experts blaming a lack of government incentives.  President Dmitry Medvedev has pleaded with officials not to embarrass him by delaying the construction of a $1.3 billion bridge from Vladivostok to Russky Island.  The navy is to deliver a nuclear submarine to India this year, following a series of delays (construction of the Nerpa began in 1991).  Russia will reduce its holding in diamond miner Alrosa, but keep a controlling stake.  The Agriculture Minister says that EU demands for Russia to scrap import duties on meat quotas are impossible‘ to fulfill.  The grain export ban ends today, amid fears that this will lead to new shortages and falling prices.