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.