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Today in Russian Business

Tax authorities have opened a tax-fraud case against a subsidiary of the Ostankino Meat Processing Plant, which could give them ammunition to convict hundreds of companies still believed to be using off-the-book payment schemes as a method of tax evasion. The Ministry of Economic Development and Trade has revised its three-year federal budget to 2011, raising its inflation forecast for 2008 to 9.5%. Meanwhile, industrial inflation in Russia in recent months remains “extremely high” compared to the growth of consumer prices. Dmitry Medvedev says accelerating inflation is a price Russia is paying for becoming a member of “the club of global economic powers.” A subsidiary of Altimo, the telecoms arm of Russian private equity group Alfa, has filed a $1 billion lawsuit against Norway’s Telenor. Aricom Plc, a London-based producer of iron ore and titanium, agreed to buy two mining licenses near existing projects in Russia for $80 million in cash and shares to boost reserves. Asset managers who are focused on Eastern Europe and Russia expect “to win more international business as investors look for the next emerging-markets story.