Moscow Bails Out Wealthiest Oligarch ·
Russia reportedly extended a $4.5 billion loan to UC Rusal, the holding company of its wealthiest oligarch Oleg Deripaska, to help it retain the 25% stake in Norilsk Nickel that it pledged as collateral to Merrill Lynch, Royal Bank of Scotland and other western banks. (FT)
October 30, 2008
Russia
Kremlin Extends $2B Bailout To Wealthy Oligarch ·
The Russian government reportedly allowed Alfa Group, a conglomerate controlled by Russian billionaire Mikhail Fridman, to tap $2 billion from its $50 billion rescue fund to payback a bank consortium led by Deutsche Bank. A default would have forced Fridman to relinquish his 44% stake in Russia's Vimpel Communications, which he had pledged to the consortium as loan collateral. (WSJ)
Barclays Seeks Capital From Russian Banks ·
Barclays is reportedly pursuing investments from two state-backed Russian banks, VTB and Sberbank, in an effort to avoid selling equity stakes to the U.K. government to maintain capital requirements. Barclays said it plans to raise $10.43 billion from private sources. (WSJ)
China To Lend $25B To Russian Firms Hit By Credit Crisis ·
China is reportedly in talks to extend up to $25 billion to Russian oil companies hit by the credit crisis in exchange for access to 300 million tonnes of Russian oil over the next 20 years. (Reuters)
Crisis Threatens Russian Oligarchs, Businesses ·
Analysts speculate that the Russian stock market could come down "like a house of cards" in coming months if foreign creditors require Russian businesses to sell shares used as collateral for $47.5 billion in debt due to mature this year. (NYT)
OPINION Kissinger, Shultz: U.S. Should Build Common Ground With Russia ·
The United States should end the drift towards confrontation with Russia, write two former Secretaries of State, Henry Kissinger and George Schultz. They argue that isolating Russia is not a feasible long-term policy. (Washington Post)
Russia Exits Georgian Areas ·
Russian troops pulled out of the buffer zones inside Georgian territory adjacent to the breakaway regions of South Ossetia and Abkhazia, Georgian and Russian officials said. (Deutsche Welle)
Russia Suspends Trading, Medvedev Steps Fail To Reassure ·
Russia halted trading on the ruble-denominated Micex Stock Exchange until Friday and shut the dollar-denominated RTS exchange indefinitely after President Dmitry Medvedev's latest $36 billion injection into the banking system failed to halt the markets' slide. (Bloomberg)
Iceland Nationalizes Bank, Negotiates Russian Loan ·
Iceland confirmed "ongoing" talks with Russia but said reports the Russian government extended a $5.43 billion loan were "overstated." The clarification came hours after Iceland nationalized its second largest bank, Landsbanki, to stablize the financial sector. (Bloomberg)
Russia Injects $37B To Prop Up State Banks ·
Russian President Dmitry Medvedev said on Tuesday his government will pump $37 billion into state-controlled banks via five-year subordinated loans in an effort to fight off “a large scale financial crisis” that has roiled the Russian stock exchange. (FT)
Russia Says Georgia Using Terrorism To Invoke Conflict ·
Russian accused Georgia of committing terrorism to invoke a new conflict in the region but said it would comply with the agreement to pull its troop out of Georgia by Oct. 10.(Bloomberg)
Rosneft Plans $30B Investment In Russian Oil ·
Russian oil giant Rosneft plans to invest $30 billion by 2030 to develop Russian offshore hydrocarbon reserves. Rosneft's VP says development of the Arctic shelf will be the "challenge of the 21st century." (Platts)
Georgia Blast Kills Russian Soldiers ·
Seven Russian soldiers were killed when a car seized by the troops blew up in Georgia's breakaway region of South Ossetia. It's unknown whether the blast was intentionally triggered. (BBC)
OPINION: Russian Liberals Must Find Alternative To Putin ·
Liberalism has died in Russia, argues Russian academic Boris Kapustin. Instead of waiting for a severe economic crisis that can undercut Putin's authority, they need to find a compelling alternative that can resonate with the public and prompt democratic courses of action. (Moscow Times)
EU Monitors Begin Patrol In Georgia ·
The European Union deployed 200 civilian monitors across parts of Georgia. Russian troops allowed them into the buffer zone around South Ossetia despite earlier threats by Russia that it would bar them from the area. (IHT)