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E I report click to get to the page ctober B P I R P-S S www.eurint.ch 3 2 8 4 5 6 7 9 !∞ kraine oldova ilk oad ussia E e spirit of Deauville Published every two wees I E !™ N Valentina Matvienko and the ruling circles of Saint Petersburg O Vladimir Potanin makes progress in his struggle with Oleg Deripaska E General Makarov criticizes the GRU Sukhoi ghter jets for South Sudan? D Moscow and Caracas strengthen economic co-operation F Gennady Timchenko checkmates Gazprom over Yamal A Alstom strengthens its positionv in Russia E South Stream: Gazprom and the Bulgarian stumbling block G Collateral damage from Mezhprombank collapse B Vyacheslav Volodin moves up Dmitry Medvedev to attend Davos Forum G Ukraine caught between Russian pressure and European hopes K Maksat Idenov turns up at ENI A IPO expected for KazMunaiGaz T Russia encourages Ashgabat to look towards its southern neighbours A Kyrgyzstan: All roads lead to Moscow I Teheran deepens relations with South Caucasus States C Baku-Yerevan arms race continuesv Armenian and Azerbaijani parties discuss Nagorno- Karabakh F Russia and Europe resume discussions over “frozen” Transnistria dispute

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E!"#$%"&' !e spirit of Deauville

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N(#)$%*+ Valentina Matvienko and the ruling circles of Saint PetersburgO'",&%-.+ Vladimir Potanin makes progress in his struggle with Oleg DeripaskaE/-'0+"1( General Makarov criticizes the GRUSukhoi "ghter jets for South Sudan?D"2'$3&-4 Moscow and Caracas strengthen economic co-operationF$-0+ Gennady Timchenko checkmates Gazprom over YamalA'(%# Alstom strengthens its positionv in Russia

E5(%,4 South Stream: Gazprom and the Bulgarian stumbling block

G$1(%53(5# Collateral damage from Mezhprombank collapseB(."5! #.( +-(5( Vyacheslav Volodin moves upDmitry Medvedev to attend Davos Forum

G&+ Ukraine caught between Russian pressure and European hopes

K&6&*.+#&5 Maksat Idenov turns up at ENIA'(%# IPO expected for KazMunaiGazT0%*3(5"+#&5 Russia encourages Ashgabat to look towards its southern neighboursA'(%# Kyrgyzstan: All roads lead to MoscowI%&5 Teheran deepens relations with South Caucasus StatesC&0-&+0+ Baku-Yerevan arms race continuesvArmenian and Azerbaijani parties discuss Nagorno-Karabakh

F$-0+ Russia and Europe resume discussions over “frozen” Transnistria dispute

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E!"#$%# I&'())%*(&+( report B!"#$%"" & P'(#)#*" I$ R!""#+ & P'")-S',#%) S)+)%"www.eurint.ch

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Mikhail Khodorkovsky

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Prosecutors have asked for a !"-year sentence for the former boss of Yukos, who has been in prison since #$$% serving an &-year sentence for tax evasion. The verdict of the second Khodorkovsky-Lebedev trial is not expected for several weeks.

!e spirit of DeauvilleOvershadowed  by  French  political  and  social  issues,  the  

summit  in  Deauville,  on  October  18  and  19,  that  brought  together  French  President  Nicolas  Sarkozy,  German  Chan-­‐cellor  Angela  Merkel  and  Russian  President  Dmitry  Medve-­‐dev,  was  a  diplomatic  event  of  great  importance.    Although  

from  the  discussions,  one  may  nevertheless  draw  some  conclusions  from  what  took  place  in  Normandy  last  week.

of  relations  between  Russia  and  the  rest  of  Europe,  and  on  the  European  security  architecture  (which  is  really  Eur-­‐asian).    The  decisions  that  might,  or  might  not,  be  made  will  commit  our  nations  for  many  long  years  to  come.    In  the  wake  of  the  failed  opportunities  of  1992  and  2001,  we  

order  between  Vancouver  and  Vladivostok.    Secondly,  Nicolas   Sarkozy   and  Angela  Merkel  have  

decided  to  give  their  support  to  Dmitry  Medvedev,  who  

from  what  it  was  in  the  years  2004-­‐2008,  one  that  is  more  open  to  the  future.    For  all  that,  the  show  of  unity  between  France  and  Germany  should  not  blind  one  to  the  fact  that  these  countries  have  their  own  eastern  agendas  and  pri-­‐orities  that  do  not  necessarily  coincide  with  each  other’s,  whether  it  be  on  NATO,  nuclear  issues,  antimissile  defence,  or  relations  between  the  European  Union  and  Russia.    Par-­‐is’  concern  is  not  to  give  up  in  relation  to  Berlin,  especially  on  matters  regarding  the  economy  and  investments.

Although  not  invited  to  Deauville,  the  United  States  did  not,  of  necessity,  disapprove  of  the  trilateral  summit.    It  is  not  as  wary  of  Sarkozy  and  Merkel  as  it  was  of  Jacques  Chirac,  Gerhard  Schroder  and  Vladimir  Putin  in  2003.    Yet  the  initiatives  that  these  two  friends  of  America  may  take  could  potentially  go  a  lot  further  than  the  positions  taken  

It  is,  however,  still  too  early  to  measure  the  real  im-­‐pact  of  the  Deauville  summit.    Many  questions  remain.    Can  Paris  and  Berlin  still  lead  the  rest  of  the  European  Union?    How  far  are  Sarkozy  and  Merkel  ready  to  go?    The  question  also  applies  to  Dmitry  Medvedev.    Then  there  are  serious  uncertainties.  In  Russia,  this,  of  course,  would  be  the  election  in  2012.  It  would  surely  not  make  matters  easier  if  Putin  were  to  return  to  the  Kremlin.    And  in  the  United  States,  the  return  of  the  Republicans  to  the  White  House  would  certainly  compromise  the  detente  initiated  by  Obama  in  2009.

Arnaud  Dubien

The Russian government announced late October that it wants to allocate two billion dollars for research in the Antarctic. Russia has 've permanent stations on the icy continent and wants to boost its scienti'c presence there.

T*# +&,-$#

G'&!, -.

The secretary of the Union of Journalists, who is a former Russian ambassador to UNESCO and author of the !((% federal media law, has been appointed head of the Presidential Council for Civil Society Institutions and Human Rights, replacing Ella Pam'lova.

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The Russian deputy and businessman, who has been on the run for several weeks, has had his parliamentary immunity lifted by the State Duma at the request of the General Prosecutor’s O)ce. Egiazaryan is suspected of embezzlement and fraudulent dealings, in particular with regard to renovation work on the Hotel “Moskva .

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Mikhail Fedotov

Ashot Egiazaryan

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Valentina Matvienko and the ruling circles of Saint PetersburgThe   fact   that   Saint   Petersburg   na-­‐tives  are  everywhere  within  the  fed-­‐eral   institutions   in  Moscow  has   led  one,  paradoxically,  to  lose  sight  of  the  power  plays  taking  place  in  the  “north-­‐

Valentina  Matvienko  was   elected  governor  of   the   city   in  2003.    In  December  2006  Vladimir  Putin  nominated  her  to  continue  at  her  post.    She  has  long  found  support  from  her  old  network  of  contacts  from  the  Komsomol,  the  communist  youth  

secretary  for  Leningrad  in  the  early  1980s.    However,  since  2009,  another  clan,  originally  linked  to  the  banker  Vladimir  Kogan  and  represented  by  Mikhail  Oseevsky  and  Yuri  Molcha-­‐nov,  the  expense  of  the  governor’s  old  po-­‐litical  associates,  while  a  third  group,  with  ties  to  the  security  services,  re-­‐mains   in  place.    Matvienko,  whose  mandate  will  not  be  renewed  when  it  expires  at  the  end  of  2011,  is  paying  a  heavy  price  for  turning  against  Dmi-­‐try  Medvedev’s  former  law  professor,  Nikolay  Kropachev,  who  has  mean-­‐while  been   appointed   rector  of   the  University  of  Saint  Petersburg.

The  fall  of  the  Lobko  clan.    The  

inextricably   linked  to  Viktor  Lobko.    Born  in  1943  in  Belarus,  Lobko  came  into  regular  contact  with  Valentina  Matvienko  at   the  Komsomol   in   the  1970s  and  played  a  decisive  role  in  her  rise  to  power  in  Leningrad  in  the  mid-­‐

dle  of  the  1980s.    As  governor,  she  returned  the  favour  by  appointing  Lobko  deputy  governor  and  head  of  her  admin-­‐istration.    Lobko  was  an  unrivalled  apparatchik  who  helped  his  protégé  put  several  of  her  allies  in  key  posts.    Some  of  these  include  Oleg  Virolaynen,  who  was  appointed  dep-­‐uty  governor  in  charge  of  housing,  energy  and  transport,  Alexander  Vakhmistrov,  nominated  as  deputy  governor  in  charge  of  the  building  sector,  and  Alexander  Prokho-­‐renko,  president  of  the  Saint  Petersburg  Committee  for  External  Relations,  a  post  long  held  by  Vladimir  Putin,  and  Alexey  Sergeev.

However,  in  conformity  with  orders  from  the  Kremlin,  Matvienko  was  obliged  to  dismiss  Lobko  in  January  2009.    This  was  soon  followed  by  the  dismissal  of  several  of  his  

close  associates,  including  Vakhmistrov  and  Deputy  Gov-­‐ernor  Alexander  Polukeev.    Matvienko  was  considerably  weakened  by  these  changes  and  found  herself  having  to  deal  with  a  group  that  has  longstanding  ties  to  Vladimir  Putin.    This  is  not  the  case  for  the  governor  herself.    Her  support  on  the  federal  level  came  from  former  Prime  Min-­‐ister  Yevgeny  Primakov,  who  helped  her  rise  to  power  in  the  1990s.

The  Kogan  network.    In  2003,  at  the  time  when  Val-­‐entina  Matvienko  succeeded  Vladimir  Yakovlev  (whom  Putin  never  forgave  for  having  beaten  Anatoly  Sobchak  in  the  1996  municipal  elections),  a  man  by  the  name  of  Vladi-­‐mir  Kogan  was  one  of  the  most  prominent  businessmen  in  Saint  Petersburg.  He  was  a  member  of  Putin’s  entourage  and  known  to  have  close  ties  to  Alexey  Kudrin  and  Ser-­‐gey  Stepashin,  the  former  head  of  the  security  services  and  today  head  of  the  audit  chamber.    At  the  time,  Kogan  was  the  head  of  Promstroybank,  which  he  sold  in  2004  to  the  State-­‐owned  bank  Vneshtorgbank  (VTB).      He  suc-­‐ceeded  in  putting  several  of  his  right-­‐hand  men  in  the  City  Hall.    Both  Mikhail  Oseevsky,  who  was  appointed  deputy  

Vladimir  Blank,  who  presides  the  Committee  for  Industrial  Policy  in  the  municipal  assembly,  are  former  Promstroybank  execu-­‐tives.    Kogan  also  has  ties  to  the  deputy  governor  in  charge  of  investments,  Yuri  Molchanov,  who  was  in  charge  of  in-­‐ternational  relations  at  Leningrad  University  at  the  start  of  the  1990s.    Mulchanov  gained  the  trust  of  Vladimir  Putin,  whom  he  recommended  to  Sobchak  upon  his  return  from  the  GDR.    Yuri  Molchanov  also  has  very  close  ties  to  the  current  speaker  of  the  senate,  Sergey  Mironov,  with  whom  

-­‐tion  company  in  the  early  1990s.    Today,  Oseevsky  and  Mol-­‐chanov  are,  without  a  doubt,  Valentina  Matvienko’s  most  

administration  since  June,  having  succeeded  Vakhmistrov.The  ineradicable  Chekists.    In  2003,  Vladimir  Putin  

the  City  Council.    At  the  time,  Andrey  Chernenko  was  the  

He  was  appointed  to  head  the  Federal  Migration  Service  in  2004  and  was  replaced  by  Valery  Tikhonov,  the  former  second  in  command  of  FSO,  who  is  still  deputy  governor  in  charge  of  public  security.

Valentina  Matvienko  is  not  a  favourite  of  Dmitry  Med-­‐vedev’s,  who  knows  that  she  favoured  Sergey  Ivanov  as  

most  of  her  allies  in  the  City  Hall  in  order  to  stay  at  her  post  until  the  end  of  her  mandate.    One  may  venture  to  guess  that  her  succession  at  the  end  of  2011  will  result  in  at  least  as  fascinating  an  intrigue  as  the  one  surrounding  Yuri  Luzhkov’s  replacement  at  Moscow’s  City  Hall.

N)$*%&+,

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Valentina Matvienko

Viktor Lobko

Yuri Molchanov

Mikhail Oseevsky

Valery Tikhonov

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