Russia: Fattening up a Cash Cow for the Kremlin

Canada's LionOre Mining International issued a statement May 8 saying that Russian Norilsk Nickel's $5.3 billion acquisition bid was "superior" to the $4.6 billion bid from Swiss mining group Xstrata. The Russian company's giant bid, coming on the heels of a management change, is the first of its kind by Norilsk Nickel — but it is unlikely to be the last. The Kremlin is expected eventually to solidify its control over Norilsk Nickel and, by the time it does, Norilsk Nickel may be even larger and richer — giving the Kremlin an even stronger hand in this particular commodity market.