Today in Russian Business – Nov 6, 2009

‘We will have to take into account this style of dealing with partners in the future, though this scornful approach toward partners mainly affects the Europeans, not us’:  Putin reacts to the aborted GM deal.   Finance Minister Alexei Kudrin was in London yesterday to discuss the envisaged issue of $17.8 billion in sovereign eurobonds – the selling of which is a core part of the government’s deficit-reducing strategy.  A bond issue would ‘be likely to draw keen interest from investors because Russia,[…] is in far better shape financially than a decade ago’ says the New York Times.   Kudrin is planning changes to the budget which would see funds originally designed to recapitalize banks redirected to flagging industrial giants (such as Avtovaz) and the jobless, as the economic situation has been less harsh than expected.  In October Russia’s economy contracted at the slowest monthly pace in almost a year.  Mikhail Prokhorov’s stake in Rusal may increase to 19.2% as the billionaire has agreed to convert $1.8 billion in debt owed to him into shares.  Coca-Cola will delay the opening of its factory in Southern Russia, due to criticisms from Russia’s construction watchdog.  Renault reportedly says that it has no plans to increase its stake in Avtovaz.  Political risk insurance premiums are apparently on the rise, with Russia described, by Reuters, as ‘almost insurable’.