Kremlin seeks Western capital with bond issue
A RUSSIAN delegation will arrive in London this week to announce an £11bn bond issue as it seeks Western investment in its struggling economy.
Deputy prime minister Alexei Kudrin, who is also Russia’s finance minister, will meet business secretary Peter Mandelson, bringing with him senior figures from the Russian central bank and finance ministry, as well as top business people.
The bond issue will be announced when they meet on Thursday
“I’m delighted that deputy prime minister Kudrin is coming to the UK,” said Lord Mandelson. “This is an important opportunity for us to build on our strong trade relationship with Russia.”
The Eurobond issue is planned for the first quarter of next year, probably in February. It will be Russia’s first since 1998, and is intended to cover budget deficits up until 2012.
Foreign secretary David Miliband arrived in Russia yesterday. Although his brief is primarily political, one of his engagements will be hosting a business breakfast with British companies in Russia, including Deloites, HSBC and JCB.
Russia is the UK’s 12th largest export market. More than 1,000 UK companies operate in Russia, and the estimated cumulative British investment in Russia is £26.7bn.