This ain't over... WHAT does WTO do?

[TOM4CWB]

Dear Charlie,

This should drop machinery prices at the local dealership...

Russia Today;
"Business
Send to friend | Print version December 12, 2008, 12:36
State steps up support for grain producers and agricultural machinery makers
Russia will increase import duties on farm machinery to 15% for the next 9 months to support domestic producers, and farmers will get subsidized loans only when buying locally produced farm machinery.

The government is stepping in swiftly to help prop up another Russian producer. This time it is giving a hand to agricultural machinery producers, threatened by a big drop in spending by farmers hit by the credit crisis. Prime Minister Putin says the government will slap tariffs on foreign farm machinery imports and allocate $1 Billion to subsidize loans to Russian farmers.

“I think we should support the domestic producers with a temporary 9 month measure. A new import duty of 15% will be introduced on new and used farm machinery. The budget money provided to support agriculture should only be used to buy home produced equipment.”

Local agricultural machinery producers welcomed the move, saying it would stave off a crisis in the business. Just 6 months ago, farm machinery maker Rostselmash enjoyed strong demand for its products - selling its harvesters a month before they were actually built. Now the company is cutting production in half. Russian farmers, starved of credit, are simply giving up plans to buy new machinery.

Russia’s agricultural minister, Aleksey Gordeev, said farmers’ purchasing activity is highly dependent on cheap credit.

“In the past few years we’ve seen that around 70% of farm machinery is bought with subsidized loans supported by the State.”

But farmers are struggling to pay off their current debts. Despite a record harvest low grain prices have put many farms on the verge of bankruptcy. The government has promised to rescue them, promising massive intervention on the grain market. But so far its managed to buy up just 8 million tones of grain, leaving another 20 million tonnes on the market.

Russia looks to cut crude production - mulls OPEC membership

Mortgage relief proposal looks for details"



http://www.russiatoday.com/business/news/34647

[TOM4CWB]

Interesting... Daimler dumps Chrysler... and buys what?

Russia Today;
"Business
Send to friend | Print version December 12, 2008, 17:50
Daimler shifts into gear for Kamaz stake
As the US Senate rejects the $14 Billion bailout plan for automakers, Germany's Daimler defies the sour mood. It bought a 10% stake in Russia's top truck maker Kamaz for $250 million, which could rise to $300 million depending on how Kamaz performs.
While Global automakers slam the brakes on their investment plans, Germany’s Daimler is stepping on the gas.

On Friday, Andreas Renscher, Head of Daimler Trucks, said the automaking giant will buy a 10% stake in Russian truck maker Kamaz as it seeks to seize the opportunities in the market that could soon become one of the world's largest for trucks.

“This strategic partnership has meant that we are now exploring a lot of different ideas from Kamaz. When you look to different projects, it could be light duty trucks that we can sell through Kamaz, it can up to a big cab for the existing product.”

The deal values Kamaz at $3 Billion, a hefty premium to its current market price of just about $750 million.
The stake’s seller is one of Russia’s top investment banks Troika Dialog. Its chairman Ruben Vardanyan explained the financial details of the deal.

“Daimler will pay $250 million today for 10% of the shares of Kamaz, and we have a special formula which will be accounted during the next 3 years – 2009-2011 - and depending on the results of Kamaz, by profit, by revenue, by EBITDA, we can earn up to $50 million cash to the shareholders who sold the shares today. Basically we can be paid $300 million for 10% of the shares of Kamaz."

Kamaz CEO Sergei Kogogin says that, with his company having a market share of about 30 percent in Russia, the synergy between the two companies is obvious.

“Even in the midst of the crisis, Russia’s market is one of the biggest in Europe, so fighting for its share will only intensify in the future. Daimler is the world’s largest truck maker, and we are the biggest truck producers in the country.”

Daimler is under no future obligation to raise its stake in Kamaz. But it does have the first right of refusal if and when Troika decides to sell the remaining 44 percent.

Russia looks to cut crude production - mulls OPEC membership

MMK posts 3Q 2008 Net Profit of $667 million

Lukoil posts 3Q 2008 Net Profit of $3.47 Billion"