Today in Russian Business – Oct 9, 2008

‘Nationalizing banks isn’t an option for the Russian government,’ says one article. ‘If financial troubles persist, the government may take over entire industries, ranging from agribusiness to construction and retail,’ says another. State-owned Vnesheconombank (VEB) may buy a 98% stake in Svyaz Bank for a ‘symbolic sum’. Over 5,000 Muscovites have been prevented from leaving Russia this year, due to their debts. Iron ore miner Aricom began a three-day roadshow in London to raise as much as $1 billion, although the fact that it was even looking for new funds drove down its share price. The In light of Monday’s drastic losses, the RTS has been shut indefinitely. The MICEX may reopen on Friday. The head of MICEX is drawing comparisons with the US crash of 1929. ‘When the entire Russia oil and gas sector is worth less than Petrobras this has nothing to do with the market.’ But Russian shares outperformed on the London stock market. France’s Alstom will take a 25% stake in the railroad company Transmashholding. ‘If Russia’s move to lend Iceland €4 billion was designed to protect the oligarchs, it may be too late.’ The Federal Antimonopoly Service have fined three subsidiaries of mining giant Mechel almost $15.3 million for administrative violations.