Russia's effort to promote a demographic revival may be working. Tatyana Golikova, Russia's minister of health and social development minister said Friday that 1.6 million babies were born in the country last year in 2007, the highest number of births since 1991. According to the McClatchy-Tribune news service, the birth total for 2007 was up by 122,750 from 2006. Last January, Russian legislators approved incentives to encourage Russians to have more children.

And maybe some good news for those of you flying to Russia for an adoption. British Billionaire Richard Branson--the man behind Virgin Atlantic--unveiled plans to start an airline in Russia. According to Bloomberg, Branson is holding talks with a discount carrier called Sky Express and may reach an agreement in two months, with service to start a year later. But it could be a big undertaking, even for as accomplished an airline operator as Branson: Russia has more than 160 airlines now. Moscow would like to see them merge with Russia's leading carriers, Aeroflot and OAO AirUnion.

In financial news, Russia has created two huge investment funds to hold income from its energy sales. The New York Times says the move gives Russia a $32 billion investment pool. Russian officials will allow one of the funds to invest in foreign stocks and bonds. Russian Deputy Finance Minister Dmitry V. Pankin told the Times that the fund would serve purely economic goals. "What are they worried about, foreign investment coming to their country?", Mr. Pankin said of Western critics, according to the Times. "They should not worry, they should hope."

One of those is apparently worrying is Alan Greenspan, the former chief of the U.S. Federal Reserve. According to the Interfax news service, Greenspan remarked at the World Economic Forum in Davos that there were "legitimate concerns" about the role of sovereign wealth funds investing in global financial markets. Greenspan was also fretting about Russia's double-digit inflation rate, which he said is hurting Russia's economy. Russia's inflation rate was 11.9% for 2007, and Moscow forecasts a rise of 2.3% to 2.4% for January.

It looks as if a key Russian businessman is saying "no thanks" to an investment from the United States. Alexander Zanadvorov is the owner of giant Seventh Continent grocery store chain. According to Reuters, Zanadvorov and his former business partner had signed a deal last September to sell the chain to a U.S.-based investment fund, TPG Capital. But in November, Vladimir Gruzdev sold his stake to Zanadvorov, who now controls nearly 75% of the company. And he has apparently called the sale off.

In energy, Russia and the U.S. struck a deal on Friday that will allow U.S. nuclear reactor operators to buy more Russian-enriched uranium for fuel, under a trade deal signed by the two countries late on Friday. According to Reuters, the U.S. government had been limiting Russian uranium trade over worries that the price of the Russian fuel would undercut that of its chief U.S. competitor, USEC.

Meanwhile, a Russian Energy Department official is indicating that two of the country's plutonium-producing reactors may be closed ahead of schedule. If the reactors, located in the Siberian town of Seversk, were closed this summer it would be six months ahead of the planned date and a major milestone in efforts to reduce nuclear weapon systems. According to the Associated Press, Russia has agreed to get rid of 34 metric tons of excess weapons-grade plutonium, but it still makes about 1.2 metric tons of plutonium in three other Siberian reactors every year.

And finally, as the U.S. nears its so-called Super Tuesday presidential primaries, Russia's own, very short, presidential campaign is getting reading to begin, the BBC notes. Russia's election will be held March 8; Dmitry Medvedev, the candidate chosen by President Vladimir Putin, is favored to win.

Image credit: Lisa Solonynko at Morguefile.com.