Today in Russian Business – July 24, 2009

Top bankers have recommended that the Central Bank cut its interest rates by as much as 5 percentage points.  The Economics Ministry has announced that GDP is 9.6% down on this time last year and has warned that at the beginning of 2010 there may be a second wave of the financial crisis.  Apparently the ministry is preparing for a $102.7 billion budget deficit next year and may cut its 2010 sovereign borrowing plans by over 50%, favoring to shore up budget deficit with oil wealth funds.  The Central Bank has made a blacklist of 2,600 bankers who, following involvement in penalized financial institutions, will need special permission to return to executive level in the sector.  Moscow Mayor Yury Luzhkov is intractable on the plight of recently made redundant Chinese workers from Cherkizovsky Market, saying ‘it is not our job‘ to help them find new work.  The Russian Union of Industrialists and Entrepreneurs has proposed to clamp down on Internet-based telephone services such as Skype and Zebra Telecom.  Engineers and technicians from KD Avia airlines are undertaking a sit-in to demand $8.5 million worth of wage arrears.