Today in Russian Business – September 13, 2010

An inability to reach Western corporate governance standards means that Russia will continue to be a ‘pariah market’ for foreign investors, says an article in Reuters.  ‘Everybody hates the damn place’ concurs Jim O’Neill, the new chairman of Goldman Sachs Asset Management, but can low investor expectations be an advantage in themselves?  Vladimir Putin has announced that the reorganization of Rusnano into a joint-stock company will allow it to acquire assets belonging to foreign-owned companies, and thus access technology which the firm needs.  ‘Even if Russia develops a new, innovative product, it has to market it. Marketing is hardly Russia’s strong point, as the country’s appalling image testifies’, worries this op-ed.   A New York Times editorial argues that ‘Russia’s misguided decision to ban exports of wheat for the next 12 months‘ could lead to a food shortage.  Is the government’s prediction of a sufficient harvest over-optimistic?  The Wall Street Journal seems to think so.  Raiffeisen Zentralbank Austria’s possible involvement in accepting proceeds from the defrauding of Hermitage Capital is the subject of this article in the FT.