Today in Russian Business – Oct 29, 2010

Canadian auto parts maker Magna says its new plant in Kaluga (which will supply parts to Volkswagen, Skoda, Renault and Peugeot) demonstrates its belief in the potential of Russia’s automotive market.  Interest rates have not changed in five months, reportedly due to concerns about economic recovery.  Deputy Prime Minister Sergei Ivanov’s admission that counterfeit spare parts entering Russia from former Soviet republics are threatening flight safety seems unlikely to inspire investor confidence.  The European Commission has initiated legal action against four of its own members in an attempt to regulate what it says are unequal fees charged by Russia for flights over Siberia.