Today in Russian Business – June 17, 2008

Russia’s economy expanded an annual 8.5% in the first quarter, higher than economists expected, as consumer demand fueled an investment boom. Austrian builder Strabag won a €1 billion ($1.5 billion) share of a contract to build an eight-lane highway around St. Petersburg. Further evidence has emerged to suggest that troubled cosmetic chain Arbat Prestige is the target “of an illegal asset grab”. The warehouse sector is set for continued, rapid growth, according to analysts. Mikhail Prokhorov’s Onexim Group has announced that he will file a lawsuit against his former business partner, Vladimir Potanin, to defend his business reputation. Russian authorities have refused to purchase Ukrainian motors for cruise missiles. Vladimir Putin has re-appointed Vladimir Yakunin president of Russian Railways.