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Today in Russian Business – July 31, 2009

A draft 2010 budget has been approved by the government, which sees large cuts in the improvement of transport infrastructure and rural development, but welfare spending prioritized.  The government is reportedly considering borrowing from the World Bank and issuing eurobonds in 2010.  IKEA has concluded talks with the government allowing it to open its mall in the Samara region, after license-related setbacks.  Moscow City Hall has denied reports that a Chinese trade center will be built to replace Cherkizovsky Market, although the Moscow government has decided to offer space to Chinese investors to employ out-of-work traders from Cherkizovsky.  Certain banks are hesitant about the gargantuan restructuring plan for Rusal.  Kamaz will suspend output in part of August.  More on the nature of the Gennady Timchenko/Economist libel case in the Guardian.  Hedge fund Hermitage Capital Management has accused Renaissance Capital of possible involvement in two alleged frauds on a grand scale, suggesting that some Western investors in Russia colluded with the authorities in laundering schemes.