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. Last Updated: 07/27/2016

Business in Brief

Probe Extended

The Associate Press

Prosecutors said they have extended an investigation into alleged funneling of millions of dollars from state-controlled Aeroflot.

The announcement Monday follows the closing of another high-profile case, the investigation into allegations that members of ex-President Boris Yeltsin’s inner circle accepted bribes from Swiss company Mabetex for contracts to renovate the Kremlin.

Prosecutors said last week they had found no evidence of a crime.

But investigators intend to press on with the Aeroflot case, the press service of the Prosecutor General’s Office said.

One focus of the case is Boris Berezovsky, whom prosecutors have accused of diverting $970 million of the airline’s profits through Swiss companies.




Paris Club: Pay Up

The Associate Press

Visiting German Finance Ministry State Secretary Caio Koch-Weser said Tuesday that Russia is capable of meeting its payments to the Paris Club of sovereign creditors.

Koch-Weser was in Moscow to discuss Russia’s proposal to swap part of its $19 billion Soviet-era debt to Germany for shares in Russian companies. Its entire debt to the Paris Club comes to $48.6 billion.

The relief expires on Dec. 31. In a letter obtained Tuesday by the Dow Jones newswires, the Paris Club demanded that Russia resume payments.

"Paris Club creditors have asked me to confirm with you that Russia will stay current on all categories of debt beginning on Jan. 1, 2001," Paris Club chairman Jean-Pierre Jouyet wrote to Deputy Prime Minister Alexei Kudrin.




Budget in Upper House

Reuters

Russia’s 2001 draft budget should sail through the Federation Council on Wednesday, news agencies quoted Deputy Prime Minister Alexei Kudrin as saying Tuesday.

The draft, Russia’s first post-Soviet balanced budget, was approved by the State Duma, the lower house, last Thursday after the government and deputies agreed on the most contentious issues in about two months of debates.

Although the upper house has the power to reject the budget, Kudrin is confident the bill will be approved.

"The budget cannot but be supported by the Federation Council," Itar-Tass quoted Kudrin as saying after a discussion with upper house members.