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Today in Russian Business – Oct 8, 2008

The west should react ‘cautiously but positively’ to the Kremlin’s offer to help Iceland deal with the financial crisis. Iceland denies that it could allow a Russian navy base on its land as collateral for the support. The MICEX has only seen a ‘minimal’ improvement in trading despite the government’s decision to increase its rescue package, including a $36 billion boost for banks. On the disastrous effects the crisis is having on the retail sector. Yulia Latynina says that the government’s response to the crisis is too extreme, and that it affected the elite – ‘by redistributing their business shares’ – but not the consumers. This article disagrees, citing the number of staff being laid off in various sectors. The opposition sees the country on the brink of a crisis. Rusal says it has no intention of selling its 25% share in Norilsk Nickel.