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Today in Russian Business – March 11th, 2009

The financial crisis has had particularly damaging effects on Russia’s monocities – company towns with undiversified economic bases, which are ‘a source of considerable social tension’, says Bloomberg.  Finance Minister Alexei Kudrin says Russia’s reserve fund should be able to cover budget deficits for two and a half years, after which point the state may seek to borrow on external and domestic markets.  He also suggested that next year’s budget could be scrapped.  Russia’s $22.5 billion lawsuit against the Bank of New York Mellon has been adjourned during settlement negotiations.  Russian automotive sales are likely to drop 36% this year.  The Russian doll is the latest casualty of the faltering economy.