fbpx

Today in Russian Business – September 24, 2009

The FT reports that Russia and China have warned that the impact of the financial crisis is far from over.  The cabinet has approved a 2010 draft budget, with major cuts on managing government ministries, which may see officials forced to reduce spending by 20% on their cars, phones and offices.  Next year will see an apparent record amount of spending on pensions, a 46% increase, amounting to 10% of the GDP.  The Prime Minster has warned against mechanical’ cuts in spending, fearing that a sense of financial drought could prolong the downturn.  Gaz group has apparently signed a debt-restructuring agreement with 21 domestic and foreign banks.  Avtovaz is planning to make 27,600 employees redundant.  Hasbro has opened an office in Moscow, hoping to see their cut of the huge toy market ‘grow significantly’.  Eyebrow-raising tactics are being used by utility companies collecting debts, reports the Moscow Times.  Chinese and Russian investors plan to open a new, 10,000-square-meter complex in Moscow, the first of its kind since the closing of Cherkizovsky Market.  Mikhail Prokhorov has been successful in his bid for the New Jersey Nets, purchasing a slam-dunking 80% of the NBA team.