Russian to the exits

Russian shares plunge, regulators halt trading three times

Last month, Wall Street turmoil and sliding oil prices contributed to Russia's worst stock market collapse since 1998, triggering a domestic crisis of confidence and a shortage of liquidity, or ready cash for operations. Since its May peak, the RTS has lost 57 per cent of its value.

State-controlled oil major Rosneft lost 6.6 per cent on MICEX and gas export monopoly Gazprom shed 5.8 per cent, but mining company Norilsk Nickel was the biggest bluechip loser, shedding 18.2 per cent.

Russian corporates are estimated to have $45 billion in debt due to be repaid by the end of this year at a time when refinancing debt has become much more expensive. The government earlier this week pledged a further $50 billion of refinancing money to be made available via state-owned Vnesheconombank, but analysts say it may not extend to companies deemed less critical or strategic by the state.

It is decisions like that which will prove the mettle of Chairman Paulson, or his successor.

Russian tycoon forced into Magna sale

Oleg Deripaska, regarded as Russia's richest man, has been forced to cede a 20 percent stake in Canadian car parts maker Magna International Inc. to creditors, making him one of the highest-profile Russian victims of the global financial crisis.

Russian Machines, which is part of Deripaska's enormous Basic Element holding, bought the stake last September in a $1.5 billion deal. It was one of his biggest overseas investments at the time, and involved putting up the Magna stock as collateral on the deal.

But as turmoil on Wall Street in September deepened and oil prices started to tumble, stock markets around the world suffered devastating losses, and Magna has seen its share value in Toronto more than halved.