Ruble reaches the new records again. Russian Central Bank keeps ruble emission on a leash trying to reduce inflation to pre-set 10-11%. Most of economists argue that lack of cash in the economy might cause a negative effect especially during the crisis. But fear of hyperinflation is stronger then troubles of some (most) small and midsize Russian businesses.

Today US dollar marked 29 rubles. Is dollar getting weaker or ruble got stronger? Please follow our discussion in a weekly newsletter including expert's opinions.

Russian Central Bank might regulate foreign loans to Russian commercial banks. Ru financial institutions used to borrow up to 50% of passives before the crisis. An average level amongst Russian banks was 15% in the summer of 07. Russians consider 30% foreign money in passives as a warning sign (don’t compare to trillions of US Fed debt to foreign investors…).

We foresee more RU CB defectiveness in a future but current regulations don’t show how this would affect direct investments to Ru enterprises.

Today is the 40th anniversary of the moon landing. Two and a half hour moon Aldrin's walk broke communism and the snail move toward free market economy in USSR had begun. New generation of Russian politicians must have forgotten the history and trying to restore "the centrilized economy" in Russia. Please find more in our newsletters regarding the analysis and predictions about newly formed government corporations in Russia.

Following summit in Moscow with 2 presidents, there were plenty of comments and opinions. It's nice that the presidents met and "hung-out a bit". Despite their "body language" wasn't showing a lot of personal chemistry, a pragmatic relationship could be a lot more efficient than "Putin-Bush friendship".

The times are interesting both politically and economically in Russia. Prime Minister Putin recently traveled to a small town to demand a local business pay wage arrears to employees after protests erupted. This highlights a disconnect between state and local economies, governments, and businesses which are short of cash, and the central government which still has a large surplus of cash. To highlight the dissatisfaction of Moscow, President Medvedev warned governors that failure to meet economic challenges could result in their dismissal. This is a situation well worth watching and we will keep you updated.

Russian SEC changed the rules for companies that offer IPOs on the foreign exchanges. Most of IPOs have been sold on LSE, NYSE and GSE. Russian companies could sell up to 25% of their common stock, for instance, TMK sold 14.4% in 2006, OGK-5 and TGK-5 sold 20% and 15% in 2007 respectively. Now Russian companies are allowed to distribute only up to 5%. What it means for investors? Less supply and most likely higher demand.