Russia

Russia 100218Basic Political Developments

· RIA: France expects Russian decision soon on buying Mistral warship - "The company is interested in cooperation with Russia. Now we are waiting only for a political decision. We believe we'll receive an answer from Moscow soon," Benoit de la Bigne, a DCNS executive, said.

· Focus: Missile defense not a threat to U.S.-Russia "reset"

INCLUDEPICTURE "http://www.focus-fen.net/Images/space.gif" \* MERGEFORMATINET - "We still have a long way to go. Skepticism in Russia is still deeply entrenched. And we've seen it in public statements in recent weeks. But we'll continue to engage," Vershbow said.

· Reuters: Missile defense not a threat to U.S.-Russia "reset" - Alexander Vershbow, assistant defence secretary for international security affairs, said that Washington had not asked Bulgaria to host any missile shield elements so far. He added that Moscow knew last year Romania was a possible site.

· Itar-Tass: Russia-US START talks enter home stretch – Tauscher: Speaking at a disarmament conference in Alexandria, Virginia, on Wednesday, she said some “principles and elements” remained to be agreed. Russian Ambassador to the United States Sergei Kislyak, who spoke after Tauscher, said he agreed “almost with every word” she had said.

· The Hill: START is key to reducing the nuclear threat - By Matthew Rojansky and James. F. Collins

· Kyiv Post: Belarus waiting for Russia's decision on low altitude radar system - "The program was drafted as a follow-up to documents on the establishment of a common air defense system of the union state," Anatoly Vankovich, head of the security, defense and crime resistance commission of the Parliamentary Assembly of the Russia-Belarus union, told the press in Minsk on Feb. 17.

· Russia Today: Countries look to benefit from Customs Union - Slowly but steadily the Customs Union between Russia, Kazakhstan and Belarus is taking shape. In addition, it is becoming an attractive trade zone for its neighbors, including Tajikistan, Kyrgyzstan and Ukraine.

· Ferghana.ru: Russian diplomat: The loan, allocated to Kyrgyzstan, is not used according to its purpose - $450 million loans, provided to Kyrgyzstan by Russia under the agreements, reached in February of 2009, have not been used according to its purpose, Vitalyi Skrinnik, the first secretary at the Russian Embassy in Bishkek, informed Eurasianet.

· RIA: U.S. okays Russia's intention to help Mexico fight drug criminality

· Sakaal Times: MiG 29 to be inducted today - The fourth generation Russian-origin jet fighter aircraft, MiG-29K, which would be used for carrier-based operations, would be formally inducted into the Indian Navy on Friday in presence of Defence Minister A K Anthony on Friday.

· Interfax: Primorye sanitary services reject poultry shipment from U.S.

· President.lt: Russian President Medvedev speaks out for closer relations with Lithuania - "I am grateful for the invitation to the celebrations of the 20th Anniversary of the Reestablishment of Independence of the Republic of Lithuania. I would like to extend my congratulations on this anniversary and to wish you and the people of Lithuania every success," President Medvedev wrote in his message of congratulations.

· News.az: NATO slams Russia-Akhazia agreement - “We insist that Russian military troops pulled back to the territory they occupied before August 8, 2008. Besides, international observers should be admitted into the conflict zones,” Romero said.News.az: Georgia to demand billions from Russia for Abkhazia, South Ossetia

· Financial Times: Moscow tightens grip on Abkhazia

· Expert Club: Abkhazia removes restrictions for Russians to buy real estate

· The Moscow Times: Government Raises Foreign Aid 4-Fold - "Russia allocated $800 million from the federal budget, according to preliminary estimations, in order to provide aid to developing countries," Kudrin said Wednesday. "Meanwhile, $220 million were allocated for these purposes a year earlier."

· Interfax: Russian religious organizations likely to gain right for state help

· The Moscow Times: Kremlin Hosts U.S. Innovation Team

· Itar-Tass: US authorities file new charges against RF citizen Viktor Bout

· CBS: New Charges for "Merchant of Death"

· Interfax: Christopher Bryant: Our intent towards Russia is entirely peaceful - British Minister of State for Europe Christopher Bryant has given an interview with Interfax in which he discussed EU-Russian and British-Russian visa arrangements, criticized Russia’s new military doctrine, and pledged not to stand in Ukraine’s way to the European Union.

· Interfax: Russian Muslims set up Supreme Coordinating Council

· RFE/RL: British Lawmaker Praises Human Rights Groups In Chechnya

· The Moscow Times: Yamal Governor To Leave Office

· Russia Today: Climate chaos continues: who’s at fault? - “Russia is not an environmentally friendly country at all. Polls have shown that most people – 60% – agree with us, which means it's important to understand that every environmental initiative has a price. I asked whether they are ready to pay, let's say a thousand dollars a year, for a better environment, and most people say no.”

· Reuters: At least one dead in Russia mine collapse - One person was killed on Thursday when part of a potash mine collapsed near the Urals mountains city of Perm, said a spokesman for the mine's owner, Uralkali

· AP: Quake rocks China-Russia-North Korea border region

· Reuters: Powerful quake hits near China-Russia border

· Wharton.upenn: Taking the 'R' out of BRIC: How the Economic Downturn Exposed Russia's Weaknesses - The shortcomings of Russia's ruling political and business elite are by now well known. What's more, the warning signs of more economic trouble ahead are growing -- for example, the increasing rate of non-performing loans on Russian banks' balance sheets. Experts say that strong leadership would be required now to stabilize the financial situation and, more than anything, to encourage foreign investment and management expertise to help steady Russia's economy. But the prospects of that happening soon are slim. For the time being, according to Henisz, "the path forward is looking a little darker" for Russia.

· Russia profile: The Villain of the Villa - Is the Latest Attack on Moscow’s “Illegal” Construction Conscientious Enforcement of the City Laws and Protection of the Urban Environment or a Cynical Land Grab?

National Economic Trends

· BNE: Central Bank considering interest rate cut - CB First Deputy Chairman Alexei Ulyukayev in an interview with Interfax today February 18, 2010 said that Russia's stable macroeconomic situation may permit the Central Bank to cut its refinancing rate.

· Reuters: Russia c.bank buys $1.4 bln as rouble firms-dealers

· Reuters: Russia c.bank moves floating rouble band to 34.95

· Cbonds: Moscow set to review Eurobond placement option no earlier than 2011

· Market Watch: Russia gears up for its first foreign bond sale since 1998

· Interfax: Banks have 525.0 bln rbs on CBR correspondent accounts on February 18

· The Moscow Times: No More Bailouts for Banks

Business, Energy or Environmental regulations or discussions

· Bloomberg: Gazprom, Norilsk Nickel, Polyus Gold: Russia Stock Preview

· Bloomberg: Hong Kong’s Exchange Sees Up to 10 Russian IPOs in Coming Years

· Bloomberg: Rusal Falls for Fourth Day, Declines 30% Since Hong Kong IPO

· VTB: RusHydro prepares to re-launch two units at Sayano HPP as early as next week

· RenCap: Alfa Bank agrees GAZ Group debt restructuring

· Bloomberg: PPF Buys 50% of Eldorado From Founder Yakovlev, Vedomosti Says

· Prime-Tass: INTERVIEW: Euroset aims for higher margins, stronger customer loyalty

· VTB: Russian government to consider tax benefits for Russian software producers

· Trading Markets: Rosbank-Societe Generale Vostok merger agreed upon

· Fitch Ratings Upgrades Russian Diamond Producer ALROSA to ‘B+’

· The Moscow Times: Polyus’ Capital Spending

· Alfa: Polyus seeks partners for Yano-Kolimskaya

· PR Log: Eight Russian Brands Included In World’s 500 Most Valuable Brands - Sberbank has reinforced its position as Russia’s Most Valuable Brand according to an annual survey of the world’s 500 most valuable brands published by Brand Finance plc, the world’s leading brand valuation consultancy.

· Reuters: EBay CEO says open to Russia JVs, acquisitions

· The Moscow Times: Sberbank’s Kyoto Tender

· Bloomberg: Russian Investor Barred From Saab Provides Financing for Spyker

· Bloomberg: Firestone Flees Moscow ‘Mafia’ Police as Browder Affair Widens

· The Moscow Times: RenCap Taps Blackrock Exec for Funds

· Stuff.co.nz: Kiwi returns to revive his Moscow bank

Activity in the Oil and Gas sector (including regulatory)

· VTB: Federal Anti-Monopoly Service develops new rules for accessing crude pipelinesPortfolio.hu: Surgut receives bid for 21% stake in Hungary's MOL – paper

· Financial Times: Moscow raises environmental heat on TNK-BP

· Telegraph: Russia to seize Kovytka gas field from BP venture

· UpstreamOnline: TNK-BP to invest $180m in Venezuela

· Reuters: Novatek plans to ship LNG via Arctic Ocean

· BarentsObserver: Timan-Pechora oil more important for Lukoil

· WSJ: Russian Pipeline Raises Competition in Asia - Newly Built ESPO Feeds Siberian Crude to Growing Markets in the East, Putting Arab Producers on Defensive

· Rigzone: Matra Recommences Appraisal Drilling in Russia

· Rigzone: Tatneft Implements Corrosion Protection Project

Gazprom

· Novinite: Romania Tells Russia It Wants to Be Part of South Stream

· RIA: Gazprom receives South Stream documents from Romania

· Reuters: More Romania, Gazprom gas storage talks in March

· Barentsobserver: Shtokman LNG can be re-routed to Europe

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Full Text ArticlesBasic Political DevelopmentsRIA: France expects Russian decision soon on buying Mistral warship

http://en.rian.ru/world/20100218/157926635.html

12:0918/02/2010

French naval shipbuilder DCNS said on Thursday it expected to receive a final answer from Russia soon on buying a Mistral-class helicopter carrier.

"The company is interested in cooperation with Russia. Now we are waiting only for a political decision. We believe we'll receive an answer from Moscow soon," Benoit de la Bigne, a DCNS executive, said.

The Russian military earlier announced that it was considering buying one of the Mistral-class amphibious assault ships, worth 400-500 million euros (around $540-$675 mln), and potentially building three or four vessels of the same class in partnership with the French naval shipbuilder DCNS.

A Mistral-class ship is capable of transporting and deploying 16 helicopters, four landing barges, up to 70 vehicles including 13 battle tanks, and 450 soldiers. The vessel is equipped with a 69-bed hospital and can be used as an amphibious command ship.

Many Russian military and industry experts have questioned the financial and military sense of the purchase.

Russia's current arms procurement program through 2015 does not provide for the construction or purchases of large warships, so the acquisition of a French warship is more likely under a new program, through 2020, which has yet to be developed.

The executive also said that India was displaying interest as well in buying a Mistral-class warship.

NEW DELHI, February 18 (RIA Novosti)

Focus: Missile defense not a threat to U.S.-Russia "reset"

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http://www.focus-fen.net/index.php?id=n210518

18 February 2010 | 09:07 | FOCUS News Agency

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Washington. Alexander Vershbow, assistant defense secretary for international security affairs, said that Washington had not asked Bulgaria to host any missile shield elements so far. He added that Moscow knew last year Romania was a possible site."So we don't believe that this was as big a surprise as it has sometimes been portrayed," he told Reuters.Vershbow said Washington would continue to "lay down the facts" to convince Moscow that its missile defense plans were not aimed at Russia, and instead focused on countries like Iran."We still have a long way to go. Skepticism in Russia is still deeply entrenched. And we've seen it in public statements in recent weeks. But we'll continue to engage," Vershbow said.

Reuters: Missile defense not a threat to U.S.-Russia "reset"

http://in.reuters.com/article/worldNews/idINIndia-46255820100217

Thu Feb 18, 2010 5:10am IST

By Phil Stewart

WASHINGTON (Reuters) - The United States has a long way to go before Russia overcomes deeply entrenched scepticism of its missile defence plans, but that does not threaten efforts to "reset" relations, a Pentagon official said on Wednesday.

Moscow has repeatedly demanded clarification from Washington as U.S. missile defence plans in Europe take shape, voicing surprise at Romania's February offer to host interceptor missiles.

News that Bulgaria expressed a willingness to also play a role further raised alarms.

Alexander Vershbow, assistant defence secretary for international security affairs, said that Washington had not asked Bulgaria to host any missile shield elements so far. He added that Moscow knew last year Romania was a possible site.

"So we don't believe that this was as big a surprise as it has sometimes been portrayed," he told Reuters.

Vershbow said Washington would continue to "lay down the facts" to convince Moscow that its missile defence plans were not aimed at Russia, and instead focused on countries like Iran.

"We still have a long way to go. Scepticism in Russia is still deeply entrenched. And we've seen it in public statements in recent weeks. But we'll continue to engage," Vershbow said.

Asked what the U.S. might be able to do differently to assuage Russia, Vershbow said: "I don't think we have any new techniques. We will continue to engage, lay down the facts, try to address the Russian arguments on a substantive basis."

U.S. President Barack Obama rolled out a revised European missile defence strategy in September that focuses more on Iranian short- and medium-range missiles. U.S. officials have expressed hope that Russia might eventually play a role in the strategy.

Russia's most powerful politician, Prime Minister Vladimir Putin, and other officials have questioned the strategy and called it an obstacle to a successor to the 1991 START nuclear arms reduction pact, under negotiation for months.

COOPERATION ON IRAN

Vershbow rejected the argument, advanced by some analysts, that tensions over Obama's anti-missile system jeopardize efforts to reset relations with Moscow that were often strained under the Bush administration.

"While I think there are concerns that the Russians may raise going forward ... we don't think this is a threat to the reset," he said.

"There is a lot of good things going on in the bilateral relationship. So it's still a work in progress. But I think the reset worked and now we're trying to build a more cooperative, substantive relationship," Vershbow said.

He pointed to increased cooperation in a number of areas, including Iran, as Washington pushes for tough new sanctions over Tehran's nuclear program.

Russia -- which wields a veto in the United Nations Security Council -- has been deeply disappointed by Tehran's refusal to send uranium abroad for enrichment in Russia. The Kremlin said on Tuesday that Iran could face harsher measures if it failed to dispel fears about its nuclear program.

The United States has expanded land- and sea-based missile defence systems in and around the Gulf, in what Vershbow called "a deterrent, a potential defence against Iranian attacks."

"And I think this takes on new importance as the international community's efforts to persuade Iran to accept a political solution to the nuclear issue are running into difficulties and we're moving toward the pressure track, and in particular towards the preparation of (sanctions)," he said.

(Editing by Philip Barbara)

Itar-Tass: Russia-US START talks enter home stretch – Tauscher

http://www.itar-tass.com/eng/level2.html?NewsID=14836075&PageNum=0

17.02.2010, 22.00

WASHINGTON, February 17 (Itar-Tass) -- The U.S.-Russian talks on a new strategic arms reduction treaty (START) have entered the home stretch, Undersecretary of State for Arms Control and International Security Ellen Tauscher said.

Speaking at a disarmament conference in Alexandria, Virginia, on Wednesday, she said some “principles and elements” remained to be agreed.

Tauscher said the talks were on the home stretch and expressed confidence that the negotiating teams were working hard.

Russian Ambassador to the United States Sergei Kislyak, who spoke after Tauscher, said he agreed “almost with every word” she had said.

“Mind you, the nearer the talks to the end, the more significant every little detail becomes,” he said.

The Hill: START is key to reducing the nuclear threat

http://thehill.com/opinion/op-ed/81321-start-is-key-to-reducing-the-nuclear-threat

By Matthew Rojansky and James. F. Collins - 02/16/10 04:55 PM ET

The debate about a new nuclear arms control agreement between the United States and Russia has devolved into a tug-of-war in Washington between those who call it an essential first step toward global nuclear disarmament, and others who fear constraining American capabilities in a dangerous world.

With Presidents Barack Obama and Dmitry Medvedev expected to sign a final document within weeks, and ratification required to bring the treaty into force, the U.S. Senate is set to become ground zero in a contest between those on opposite sides of the administration’s broader nuclear agenda.

But arguments from both hawks and doves have missed an urgent point: that without a new treaty, Washington will be unable to manage the risks associated with Russia’s vast nuclear arsenal, which still poses the single greatest existential threat to the United States.

With around 4,000 deployed nuclear warheads, a staggering 1,000 tons of weapons-grade nuclear material, hundreds of deployed ballistic missiles and thousands of experts with the knowledge to construct such systems from scratch, Russia is still potentially the world’s nuclear supermarket. Agreements governing these arsenals are essential to preventing the many national security nightmares of nuclear proliferation to rogue states and terrorist groups from becoming realities. To protect America, we must agree to, and verify, limits on what the Russians have, know how they are using it, and take adequate steps to ensure that devastating weapons and dangerous materials remain safe from terrorist theft.

As of Dec. 5, 2009, when the 1991 START agreement expired, we lack any enforceable, verifiable treaty to provide that level of information. We need a new treaty in force not only to plug holes left gaping by the old treaty’s expiration, but also to increase our security by imposing further limits on what new nuclear weapons the Russians can develop and deploy.

A successor to START would likely lower the maximum number of deployed strategic nuclear warheads allowed to between 1,500 and 1,675 on each side — still enough to destroy the world many times over, but far below the 6,000 allowed under the old treaty. Strategic delivery vehicles — missiles, bombers and nuclear missile submarines — will be further cut from 1,600 to around 800. Reducing Russia’s nuclear arsenal and taking missile launchers in both countries off alert reduces the likelihood of accidental nuclear war, keeping Americans safer.

Verified and permanent reductions in the Russian nuclear arsenal will dramatically reduce the number of targets for potential theft or diversion of nuclear technology to terrorists. Over the past two decades, the U.S. has invested at least $10 billion to ensure security for Russian and former Soviet nuclear material, technologies, facilities, and individual experts under the auspices of the “Nunn-Lugar” Cooperative Threat Reduction and other bilateral and multilateral programs.

These programs have helped to deactivate over 7,500 former Soviet nuclear warheads, destroy over 2,000 missiles, and eliminate over 1,100 missile launchers. But without a comprehensive U.S.-Russian arms control agreement in place, steps like these could be totally nullified by production of new nuclear materials, weapons and launchers without any U.S. or international monitoring.

Even after a new treaty enters into force, the U.S. and Russia will possess the world’s largest nuclear arsenals by a wide margin. And as long as nuclear weapons exist, leaders across the political spectrum concur, the U.S. must maintain the world’s strongest, safest and most reliable arsenal. Yet in addition to reducing the size of the threat itself, a new agreement would be beneficial for increasing regular engagement between the U.S. and Russia on strategic issues, which will help build mutual understanding, and avert needless suspicion and conflict.

Two decades after the end of the Cold War, Americans and Russians are increasingly intertwined in global financial and energy markets, and we share immediate and vital national security interests in preventing terrorism, state failure and drug trafficking throughout the Eurasian region.

Yet our communication on security issues has been in dangerous decline for the past decade. In a sense, this should come as no surprise, since the most recent comprehensive U.S.-Russian security treaty was actually signed by the United States and the Soviet Union, which no longer exists.

Any “reset” that puts U.S.-Russian relations on a more productive footing will depend first and foremost on forging a durable bilateral agreement to replace START. Arms control is not in itself a solution to U.S.-Russian tensions, or a guarantee of security from the nuclear terror threat, but if history is any guide, it is where we must begin.

Rojansky is executive director of the Partnership for a Secure America. Collins is director of the Russia and Eurasia program at the Carnegie Endowment for International Peace, and served as U.S. ambassador to Russia from 1997 to 2001.

Kyiv Post: Belarus waiting for Russia's decision on low altitude radar system

http://www.kyivpost.com/news/russia/detail/59808/

Today at 10:03 | Interfax-Ukraine

Moscow, February 18 (Interfax-AVN) - The draft program of building a low altitude radar system on the western border of the Russia-Belarus union state has been okayed by the Belarusian side and submitted to the Russian Defense Ministry for consideration.

"The program was drafted as a follow-up to documents on the establishment of a common air defense system of the union state," Anatoly Vankovich, head of the security, defense and crime resistance commission of the Parliamentary Assembly of the Russia-Belarus union, told the press in Minsk on Feb. 17.

He said that by now the draft program has been coordinated with the Belarusian side. Vankovich voiced hope that its authorization by Russian colleagues and adoption by the union Cabinet will not take much time.

Meanwhile, chief of the radio-radar troops of the Air Force and Air Defense of Belarus Igor Nasibiants said: "The question [of drafting the program] was thrashed out at the recent Moscow meeting of the defense ministers of Belarus and Russia."

He said that a joint team of Belarusian and Russian experts worked on the issue in Belarus this month. "The draft program has been submitted to the Russian defense minister for consideration," he said.

Russia Today: Countries look to benefit from Customs Union

http://rt.com/Business/2010-02-18/countries-benefit-customs-union.html/print

18 February, 2010, 10:51

A new common market is forming on Ukraine's borders and those of the EU. A customs union between Russia and its neighbors will cut business costs and make the region more attractive to investors.

Slowly but steadily the Customs Union between Russia, Kazakhstan and Belarus is taking shape. In addition, it is becoming an attractive trade zone for its neighbors, including Tajikistan, Kyrgyzstan and Ukraine.

Yaroslav Lissovolik, Chief Economist at Deutsche Bank, said the union is based on existing unions.

“Essentially, I think Russia’s efforts in terms of the formation of the Customs Union, in terms of building this single market with some of the CIS, are meant to replicate the experience with the EU.”

Central to Russia's trading relationship with Ukraine is gas. The country is one of the biggest importers of Russia’s blue fuel, and the transit of Russian gas through Ukraine would be one of the trickiest issues on the negotiating table.

Russia might offer Ukraine cheaper gas under a customs union which could bring benefits for Russia too, says Aleksandr Nazarov, an analyst at IFC Metropol.

“It’s just the diminishing of risks about transit through Ukraine. Probably it would lead to the cancellation of the construction of the South Stream pipeline, because Russia, Gazprom will think that transit risks are minimal.”

Apart from gas, it would open the Russian market to Ukrainian goods and encourage foreign investment, says Deutsche Bank Chief Economist Lissovolik.

“For a lot of the international majors, for a lot of the large foreign companies, Ukraine is seen not just as a very large market to explore and to develop, but also as a springboard for penetration into the even larger Russian market.”

An expanded and integrated single market with a combined population well over two hundred million would be of great interest to the EU and China and would change the existing import-export patterns.

If successful, the union could provide a platform for another of Moscow’s long-cherished desires: to make the rouble the regional currency – similar to the euro.

Ferghana.ru: Russian diplomat: The loan, allocated to Kyrgyzstan, is not used according to its purpose

http://enews.ferghana.ru/news.php?id=1578&mode=snews

18.02.2010 12:24 msk

Ferghana.Ru

$450 million loans, provided to Kyrgyzstan by Russia under the agreements, reached in February of 2009, have not been used according to its purpose, Vitalyi Skrinnik, the first secretary at the Russian Embassy in Bishkek, informed Eurasianet.

According to Skrinnik, Kyrgyz authorities used money to establish a fund, "issuing credits to others to make money". He did not specify the manager of this fund. "Here we had misuse of the money, of $450 million," he said. Perhaps, the diplomat is speaking about Kyrgyzstan’s Development Fund, the structural unit of Central Agency for Development, Investment and Innovation (CADII), headed by Maxim Bakiev, the son of Kyrgyz President.

Victor Kharchenko, the press-secretary of Russian Embassy in Kyrgyzstan, informed Ferghana.Ru that the statement of Skrinnik was his personal opinion. "Vitalyi Mikhailovich manages the cooperation programs with compatriots; therefore, I am not going to confirm his viewpoint", Kharchenko said. He also informed the session of Kyrgyz-Russian intergovernmental commission will be held soon that will consider issues, related to the loan, and make decisions on economic component of the partnership.

We were not able to reach Skrinnik since he is currently not in Kyrgyzstan.

It has to be mentioned that the decision to offer financial aid to Kyrgyzstan was announced on February 3, 2009 in Moscow by the leaders of two countries: Kurmanbek Bakiev and Dmitry Medvedev - $150 was allocated to support state budget, $300 million was offered as preference loan and over $2 billion was offered for joint investment project in hydropower sector. On March 30 Kyrgyzstan received $150 million. On April 30 Ferghana.Ru reported the transfer of another $300 million to the National Bank of Kyrgyzstan.

Russia promised to supply $1.7 billion lax credit to Kyrgyzstan at 0.75% per year for the construction of Kambarata-1 hydropower plant. In August the parties established joint stock company that would receive funds from Russia. According to the plan, Kyrgyz side should have prepared the feasibility study of the project by the end of 2009 that would ensure not only energy security of Kyrgyzstan but also net export of electricity. During October visit to Bishkek Sergey Naryshkin, the Head of Russian Presidential Administration, said that Kyrgyzstan was not catching up on Kambarata-1 project implementation terms.

Signing $2 billion agreement with Russia, Kyrgyz leader Kurmanbek Bakiev promised to shut down the US airbase in Kyrgyzstan. The observers reported Russian lobby although Kyrgyzstan said it was independent in such decision making. Half a year later, the airbase was renamed into Transit Shipment Center to support anti-terrorist operations in Afghanistan. Therefore, American soldiers remained in Kyrgyzstan. Allegedly, the reason is that Russian government is being slow in transferring the promised money. Another reason could the fact that Uzbekistan strongly opposes the construction of Kambarata-1 hydropower station.

Meanwhile, in December of 2009 Russia’s envoy to Kyrgyzstan, Valentin Vlasov, informed Komsomolskaya Pravda that all arrangements on $1.7 billion loan remain in force.

RIA: U.S. okays Russia's intention to help Mexico fight drug criminality

http://en.rian.ru/world/20100218/157921859.html

03:5618/02/2010

The United States has no objections to Russian-Mexican joint efforts to fight drug trafficking in the Latin American state, US State Department spokesman Mark Toner has said.

Russia has reiterated its readiness to help Mexico fight the drug criminality, a major woe for the U.S. neighbor. The joint U.S.-Mexican Merida Initiative with the same goal has been widely criticized. Critics say the project has yielded no significant results despite huge investments.

Answering the journalist's question on how the U.S. views Russia's initiative, Toner said there were no grounds for anxiety.

"I mean, Mexico is a close neighbor, friend, partner with the United States. I would just say it's welcome to pursue bilateral relationships with any country it wants to, including Russia," he said.

When asked on whether the strengthening of ties between Russia and Mexico would affect U.S.-Russian relations, Toner said "no, I don't believe so."

Merida Initiative is a security cooperation between the United States, Mexico and Central American states aimed at combating the drug trafficking, transnational crime and money laundering. The assistance includes training, equipment and intelligence.

Mexico has been the main hub for drug trafficking from Latin America to the U.S., with annual drug supplies estimated at around $40 billion. Some 45,000 servicemen have been involved in anti-drug operations at the border between the two countries.

In his New Year's speech, Mexican President Felipe Calderon declared fighting drug crimes in Mexico the government's top priority for 2010.

WASHINGTON, February 18 (RIA Novosti)

Sakaal Times: MiG 29 to be inducted today

http://www.sakaaltimes.com/SakaalTimesBeta/20100218/4730704287749017809.htm

Special Correspondent

Thursday, February 18, 2010 AT 02:25 PM (IST)

MUMBAI: The fourth generation Russian-origin jet fighter aircraft, MiG-29K, which would be used for carrier-based operations, would be formally inducted into the Indian Navy on Friday in presence of Defence Minister A K Anthony on Friday.

 

The induction ceremony would be held at INS Hansa, Dabolim, Goa, Defence Ministry officials said on Thursday. These aircraft would now be based in INS Hansa and would be used on board Admiral Gorshkav, the Soviet-era aircraft carrier, which is expected in more than a year's time. The carrier would subsequently be named Vikramaditya.

 

The first batch of three MiG-29K aircraft of the Indian Navy were received in December at INS Hansa Goa. A total of 16 aircraft have been contracted from MiG RAC.

 

The presence of an aircraft carrier in the inventory of any Navy provides tremendous reach, flexibility and certainly power. Its ability to cover vast distance with its integral air helps it to exercise sea control whilst at the same time it ensures air cover to the other units in company. The aircraft carrier is certainly an instrument of diplomacy as well.

Interfax: Primorye sanitary services reject poultry shipment from U.S.

http://www.interfax.com/newsinf.asp?id=147683

VLADIVOSTOK. Feb 18 (Interfax) - The Primorye veterinarian and phytosanitary control authorities have returned to the United States 47.2 tonnes of poultry of uncertain quality supplied to an Ussuriysk company, assistant head of the territorial veterinarian and phytosanitary control department Viltay Salenko told Interfax on Thursday.

"Veterinarian certificates confirming the origin, quality and safety of the poultry did not have the exports stamp of the U.S. Department of Agriculture's Food Safety and Inspection Service (FSIS)," he said.

"The two containers of chicken quarters were returned from the Vladivostok seaport to the exporter," he noted.

It is prohibited to import food of uncertified quality to Russia in keeping with the Federal Law on Food Quality and Security, Salenko said.

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President.lt: Russian President Medvedev speaks out for closer relations with Lithuania

http://www.president.lt/en/press_center/press_releases/russian_president_medvedev_speaks_out_for_closer_relations_with_lithuania.html

Thursday, February 18, Vilnius - Russian President Dmitry Medvedev congratulated President Dalia Grybauskaitė on the approaching 20th Anniversary of the Reestablishment of Lithuanian Independence and invited her for a bilateral visit to Russia at a time convenient to her.

"I am grateful for the invitation to the celebrations of the 20th Anniversary of the Reestablishment of Independence of the Republic of Lithuania. I would like to extend my congratulations on this anniversary and to wish you and the people of Lithuania every success," President Medvedev wrote in his message of congratulations.

The Russian president expressed his regrets that he would not be able to participate in the March 11 festivities in Vilnius due to his pre-arranged international engagements. He delegated Mr. Igor Levitin, Russian Transport Minister and Russian Co-Chairman of the Lithuanian-Russian Intergovernmental Commission, to represent Russia at the commemorative events.

"It is with warmth that I recall our short but fruitful conversation in Berlin. I hope to meet you in the near future and I invite you to visit the Russian Federation at a time convenient for you. I believe that we will be able to discuss a whole range of issues topical for Lithuanian-Russian relations and project the ways to making our bilateral cooperation more dynamic," President Medvedev wrote.

Commenting on Dmitry Medvedev's letter of congratulations on the anniversary of Lithuania's re-independence, President Dalia Grybauskaitė said that it was an important step made by Russia in shaping good neighborly relations with Lithuania.

"I favorably assess the fact that Russian President Dmitry Medvedev extended congratulations to Lithuania on both the Restoration of Lithuanian Statehood of February 16 and the Reestablishment of Lithuanian Indpendence of March 11. Lithuania's interest is to maintain well-wishing relations based on mutual benefit and respect with all the neighboring countries. A bilateral working visit would present a good opportunity to discuss issues of importance to Lithuania with the President of Russia and possible options for the development of bilateral economic and cultural cooperation," President Grybauskaitė said.

Press Service of the President

News.az: NATO slams Russia-Akhazia agreement

http://www.news.az/articles/9424

Thu 18 February 2010 | 07:11 GMT

NATO slams agreement signed between Medvedev and Baghapsh.

The North-Atlantic Treaty Organization (NATO) has slammed the agreement signed on February 17 between Dmitry Medvedev, Russian Federation’s President and Sergey Baghapsh, separatist leader of Georgia’s one of two breakaway regions of Abkhazia on stationing of Russian military bases across Abkhazia’s territory.

Carmen Romero, Deputy NATO Spokesman claimed that the transatlantic military alliance considered the document as illegal. Romero added that the NATO’s attitude remained unwavering regarding the issue.

“We insist that Russian military troops pulled back to the territory they occupied before August 8, 2008. Besides, international observers should be admitted into the conflict zones,” Romero said.

1TV.GE

News.az: Georgia to demand billions from Russia for Abkhazia, South Ossetia

http://www.news.az/articles/9420

Thu 18 February 2010 | 06:26 GMT

Georgia intends too sue Russia for dozens of billions of damage.

Georgia intends too sue Russia for dozens of billions of damage, which, as Tbilisi believes, Moscow inflicted with its actions in Abkhazia and South Ossetia in 1990s and later.

The guilt of Russia of not only August 2008 events, but also provoking Georgian-South Ossetian and Georgian-Abkhazian conflicts after disintegration of the USSR, is planned to be proved in international courts.

The amount of the damage is ordered to be calculated by the parliamentary Commission for Territorial Integrity Restoration, headed by Shota Malashkhia - The Vremya Novostey. He says that a state commission will be established soon to check the calculations and then submit claims and deal with the due intentional organisations.

According to the MP, the tentative sum for damage up to 1998 amounts USD 20 bn. "For the later period, up to nowadays, the additional sum will be no less," Malashkhia said. The sum of compensation includes supposed damage from activities of Russian companies in Abkhazia and South Ossetia. Claims on the loss of property by Georgian refugees will be sent to the European Court for Human Rights.

Georgia Times

Financial Times: Moscow tightens grip on Abkhazia

http://www.ft.com/cms/s/0/2053ab72-1be0-11df-a5e1-00144feab49a.html

By Isabel Gorst in Tbilisi

Published: February 17 2010 23:07 | Last updated: February 17 2010 23:07

Russia signed a package of military and economic deals with Abkhazia on Wednesday that will tighten Moscow’s grip on Georgia’s breakaway region

Georgia said the agreements were “illegally signed by an occupying power and a puppet regime”.

Russia’s defence ministry signed an agreement to build a military base in Abkhazia, formalising the presence of troops stationed in the region after a five-day war with Georgia in August 2008.

The Kremlin recognised Abkhazia and

out' of South Ossetia" \t "_blank" South Ossetia, Georgia’s other rebel region, as sovereign states after the war, drawing international condemnation.

Abkhazia and South Ossetia have been internationally isolated since the war, and dependent on Russia for economic aid and security.

Speaking at the signing ceremony on Wednesday, Dmitry Medvedev, the Russian president, said the agreement “laid the foundation for Abkhazia to develop as an independent state”.

Sergei Bagapsh, the Abkhaz leader, said Russia was Abkhazia’s “closest partner”.

Russia also agreed a package of economic deals with Abkhazia that pave the way for Russian companies to take control of strategic transport infrastructure on the region’s Black Sea coast.

State-owned Russian Railways plans to lease the Abkhaz railroad, providing a crucial link between stone mines and tourist resorts in the region and southern Russia. Other Russian companies are negotiating to take control of a port and airport near Sukhumi, the Abkhaz capital.

The Kremlin said Russia would modernise a Soviet-era military facility at Gudauta in Abkhazia and deploy 1,700 soldiers at the base. Russia also agreed on Wednesday to step up naval co-operation with Abkhazia to improve security and communications in the Black Sea.

Russia’s navy began patrolling the Abkhaz coast last year after Georgia captured a Turkish cargo vessel approaching the Abkhaz port of Sukhumi.

Eka Tkeshelashvili, the head of Georgia’s Security Council, said the agreement was a “dangerous signal that Russia was very seriously planning to bolster its military presence in Georgia and the Black Sea region”.

Russia is expected to sign a deal to build a military base in South Ossetia, Georgia’s other breakaway region, next month.

Mr Medvedev said Moscow would eventually restore relations with Tbilisi, although not while Mikheil Saakashvili, the Georgian president, was in power.

Mr Bagapsh said Mr Saakashvili’s “arms were up to the elbows in blood”, and that he should be punished for war crimes.

Expert Club: Abkhazia removes restrictions for Russians to buy real estate

http://eng.expertclub.ge/portal/cnid__3565/alias__Expertclub/lang__en/tabid__2546/default.aspx

18/02/2010 11:27

The puppet authorities in Abkhazia have decided to amend the law on real estate, which will allow citizens of Russia to buy land and buildings in Abkhazia on the same conditions as nationals of this region. That was reported by Kommersant newspaper with reference to the head of economic department of Abkhazia Kristina Ozgan.

It is planned to introduce this law into the Parliament in the coming months. Earlier Russians could only register a house or apartment on the Black Sea in the name of a "citizen of Abkhazia", which often led to property-related conflicts.

We should remind that we have already written on the pressure of the Kremlin to repeal this law when articles aimed at "protecting the property rights of Russians" appeared. In his article "Georgian fate of Russians in Abkhazia" representative of the Club of Experts Irakli Tskitishvili noted appearance of publications in the Russian media about violations of property rights of the Russian population of Abkhazia. "Taking care of Russian citizens' properties is one the components of this policy. The Kremlin will try every way to force Bagapsh to repeal the law that prevents Russian citizens from taking roots in Abkhazia. This is a purpose the articles published in Russian press serve". In the same article, the author suggested that articles in the Russian media had been written in order to put pressure on Abkhazian leader Bagapsh ahead of his visit to Moscow and that the matter would be discussed at his meetings with Russian leadership. Today's information of Kommersant newspaper absolutely confirms the above suggestion.

Thus, we can say that with authorization given to citizens of Russia to buy property in Abkhazia begins era of ousting of Abkhazian ethnic group from this territory and their complete extermination that has been a goal of the Russian Empire for centuries.

The Moscow Times: Government Raises Foreign Aid 4-Fold

http://www.themoscowtimes.com/business/article/government-raises-foreign-aid-4-fold/400017.html

18 February 2010

By Alex Anishyuk

The government nearly quadrupled the amount of aid that it gave to poor countries in 2009, Finance Minister Alexei Kudrin said Wednesday, bringing Russia closer to its OECD peers in terms of foreign development assistance.

"Russia allocated $800 million from the federal budget, according to preliminary estimations, in order to provide aid to developing countries," Kudrin said Wednesday. "Meanwhile, $220 million were allocated for these purposes a year earlier."

In 2007, then-President Vladimir Putin signed a framework document that called for the country to increase its participation in international development assistance programs and outlined several key points that the country intended to follow.

According to the document, Russia's policy on international development assistance was to be carried out through grants, debt relief, loans and technical assistance for countries developing national institutions such as health and education.

In 2007, Russia wrote off 90 percent of $11.3 billion of Afghanistan's Soviet-era debt and more than $20 billion of debt from poor African countries.

Although not all sovereign donors managed to maintain their level of foreign aid during the last year and a half, "the world managed to keep financing in accordance with the approved indices," Kudrin said.

In 2008, international donors spent $119.7 billion on aid programs, according to the Organization for Economic Cooperation and Development.

Kudrin said international aid has more than doubled since 2003, growing from $53 billion to $121 billion in 2009.

The UN Millennium declaration, a protocol of intentions behind international donation programs, aims to halve the proportion of those who suffer from hunger and those with incomes below $1 a day by the year 2015, as well as to achieve a significant improvement in the lives of at least 100 million people who live in slums by 2020.

Although Russian assistance through international financial institutions and UN agencies increased almost 20-fold to an estimated $800 million in 2009 from $47 million in 2003, the country still falls short of the sums donated by other developed countries.

According to OECD data, the top five donors in 2008 were the United States, which gave $26 billion or 0.18 percent of gross national income; Germany ($13.9 billion or 0.38 percent of GNI); the United Kingdom ($11.4 billion or 0.43 percent of GNI); France ($10.9 billion or 0.39 percent of GNI); and Japan ($9.3 billion or 0.18 percent of GNI). The $800 million Russia donated in 2009 would put it at an estimated 0.05 percent of GNI.

Interfax: Russian religious organizations likely to gain right for state help

http://www.interfax-religion.com/?act=news&div=6945

Moscow, February 17, Interfax – The United Russia members introduced amendments to the presidential draft on NGOs support to secure right of religious organizations for state help.

Religious organizations will also obtain the socially oriented status. The State Duma Committee on Public Associations and Religious Organizations will consider amendments on February 19, the second reading is planned for February 26, the Vedomosti paper reported on Wednesday.

The amendments aim at stimulating charitable activities of religious organizations. Having them adopted, parishes of the Russian Church would be able to get money allocated by the government for prevention of abortions and support of young families on priority basis, it would be easier for them to get premises, member of the United Russia parliament faction Sergey Markov said.

The law did not envisage privileges for all religious organizations, the Patriarchate’s legal adviser Ksenia Chernega stressed. According to her, parishes involved in charities, helping the poor and homeless are first to get support.

The Moscow Times: Kremlin Hosts U.S. Innovation Team

http://www.themoscowtimes.com/news/article/kremlin-hosts-us-innovation-team/400062.html

18 February 2010

By Rachel Nielsen and Anatoly Medetsky

A U.S. delegation of White House officials, technology executives and social media enthusiasts arrived in Moscow on Wednesday for a weeklong visit with their Russian counterparts to discuss innovation.

Formally, the meetings are an extension of the Bilateral Presidential Commission, created by the Kremlin and the White House in July. The “Innovation Delegation” — including the heads of Internet powerhouses Twitter and eBay — is here to speak with government, corporate and civic leaders about social media and civic issues, said a spokesman for the U.S. Embassy in Moscow.

“That’s what this group is all about — using social media for the public good,” said Jonathan Korach, deputy press attache at the embassy.

But the high-power group arrives just as Russian officials are revving up efforts to bring in foreign investment, technology and brainpower.

No less a figure than Prime Minister Vladimir Putin has taken over the government’s commission on modernization, Vladislav Surkov, the Kremlin’s first deputy chief of staff and a longtime advocate of modernizing the economy, said in an interview to Vedomosti published Tuesday.

Additionally, President Dmitry Medvedev hosted a meeting in Tomsk last week with some of Russia’s top business leaders, whom he called on to invest in new technology.

The 13-member U.S. delegation met top Kremlin officials including Surkov on Wednesday and was slated for a host of meetings throughout the coming week.

Communications and Press Minister Igor Shchyogolev will meet the group Thursday, along with Yandex chief executive Arkady Volozh and Valery Zubakha, head of the Electronic Government project at state telecoms operator Rostelecom, ministry spokeswoman Yelena Lashkina said.

Korach, the U.S. Embassy spokesman, said the delegation would also meet officials from the Education and Science Ministry and the Health and Social Development Ministry.

Delegation member Jason Liebman, the chief executive of how-to video company Howcast Media, wrote on his Twitter page Wednesday evening that he was “just leaving kremlin after a great two hour brainstorm with vladislav surkov and arkady dvorkovich.”

In his interview with Vedomosti, Surkov made waves with his statement that “consolidated power is the instrument of modernization.” Dvorkovich is Medvedev’s top economic aide and another prominent modernization advocate in the Kremlin.

The visit is being spearheaded by Jared Cohen, a technology whiz with Secretary of State Hillary Clinton’s policy planning staff, and Howard Solomon, the Russia director for the National Security Council.

Executives in the group include Jack Dorsey, founder of the microblogging web site Twitter; Padmasree Warrior, chief technology officer at networking giant Cisco Systems; and John Donahoe, CEO of eBay, whose arrival coincided with a Kommersant report that the Internet auction site was launching a Russian-language version.

The delegation also includes officials from Mozilla, EDventure, the Social Gaming Network and the New York Academy of Sciences.

Another delegation member — the world’s most-followed Twitter user, Ashton Kutcher — asked his 4.5 million fans what Russian phases he should know for the trip.

One user suggested the Russian Internet meme “Preved Medved,” which is based on a picture of a bear interrupting a love-making couple in the wilderness.

The phase, a distorted version of “Hello Bear,” has enjoined added success since the tech-savvy Medvedev — who has his own video blog — took office in 2008.

The U.S. delegation is scheduled to fly to the Siberian city of Novosibirsk on Thursday night, said Yevgeny Savin, director of the Unova.ru, an innovation news web site, who is familiar with the group’s itinerary.

The Novosibirsk leg will probably to include meetings with Kendrick White, general director of venture investment firm Marchmont Capital Partners, which is based in Nizhny Novgorod. White told The Moscow Times that he planned to tell the delegation that “there is tremendous technology opportunity here, but there’s very little smart money.”

He will also recommend that Russia develop a number of “innovation clusters,” such as his adopted town of Nizhny Novgorod.

The idea has long been kicked around in the government, but previous efforts have had little success. Medvedev disbanded the Federal Agency for Special Economic Zones in October, just three years after its creation.

But the Kremlin is planning to create a new research and development center, which it has dubbed the Russian Silicon Valley.

During his meeting with business leaders last week, Medvedev said it would be a “city of the future, which must become the largest test site of the new economic policy.” Surkov said in his interview that it would need to attract the best of the best, like Soviet-era scientific centers.

State Duma Deputy Ilya Ponomaryov, a member of the Duma’s Information Policy Committee, said on his blog that the world’s “IT gurus” would meet with Novosibirsk regional officials, stop by an advanced secondary school and spend an evening at the city’s drama theater.

They also will get together with young innovation companies based in a research center outside the city, including the Siberian Center for Pharmacology and Biotechnology, Uniskam, Alekta and Data East, Ponomaryov said. They will also hold a round table with the regional entrepreneurs.

Unova’s Savin said the U.S. officials and business leaders would return to Moscow on Sunday for meetings with Russian businesspeople and social-networking web sites.

Savin said he was organizing a round table discussion Monday at the request of the delegation, with the session to be dedicated to venture funding.

Russian Venture Company director Igor Agamirzyan will take part with representatives of web projects such as Actio.tv, Iii.ru, Tutu.ru and Kupivip.ru, Savin said.

“These kind of visits are not for immediate goals,” Savin said. Business executives “will make their own judgments and will build their Russia-related business based on what they saw.”

Itar-Tass: US authorities file new charges against RF citizen Viktor Bout

http://www.itar-tass.com/eng/level2.html?NewsID=14836733

18.02.2010, 04.27

NEW YORK, February 18 (Itar-Tass) - The US authorities have filed new charges against Russian citizen Viktor Bout whose extradition to the United States from Thailand they are seeking. Attorney of the US Southern District of New York Preet Bharara said on Wednesday that the charges are brought against Bout and his “accomplice” Richard Ammar Chichakli for “conspiring to violate the International Emergency Economic Powers Act (IEEPA) stemming from their efforts to purchase two aircraft from companies located in the United States, in violation of economic sanctions which prohibited such financial transactions.” The indictment unsealed also charges Bout and Chichakli with “money laundering conspiracy, wire fraud conspiracy and six separate counts of wire fraud, in connection with these financial transactions.”

The indictment says that In connection with the purchase of these aircraft and services relating thereto, Bout and Chichakli electronically transferred more than 1.7 million US dollars through banks in New York and into bank accounts located in the United States. They did so through a number of front companies, whose assets were also owned and controlled by Bout, in order to evade the UNSC’s sanctions regime and the IEEPA prohibitions. Upon the discovery that Chichakli was connected to Samar Airlines, the US Treasury Department blocked the funds that had been transferred into the bank accounts of the US aviation companies.

On Tuesday, Bangkok's criminal court finished an additional hearing of the case over extradition to the United States of Viktor Bout. Thai judges denied the opportunity to the United States to attach to the case the letter from Colombia’s Foreign Minister Jaime Bermudez.

NEW YORK, Feb. 17, 2010

CBS: New Charges for "Merchant of Death"

http://www.cbsnews.com/stories/2010/02/17/cbsnews_investigates/main6217408.shtml

Federal Prosecutors File New Charges against Suspected Notorious Arms Dealer held in Thailand

By Pat Milton

(CBS)  A Federal grand jury in New York has indicted Viktor Bout, a Russian businessman accused of being the world’s most prolific arms dealer on new charges stemming from his alleged operation to sell weapons to terrorist organizations.

The updated indictment against Bout, dubbed the “Merchant of Death” follows a Thai court’s decision last year to reject a request by the United States to extradite Bout to face gun running charges in New York’s Southern District. Bout remains in a Bangkok prison pending an appeal by the Thai government of the court’s ruling which would allow Bout to walk free.

“Viktor Bout allegedly made a career of arming bloody conflicts and supporting rogue regimes across multiple continents, even using the U.S. banking system to secretly finance a private fleet of aircraft,’’ said Manhattan U.S. Attorney Preet Bharara, in announcing the new charges including money laundering and wire fraud.

Bout who was sought by U.S. officials for more than a decade was arrested in a Bangkok hotel in 2008 allegedly while brokering a multi-million dollar deal to sell weapons to Colombian rebels to kill Americans in what turned out to be a sting operation masterminded by agents of the U.S. Drug Enforcement Administration. Bout is suspected of supplying guns to fuel just about every military conflict in the world since the 1980s, from Colombia to Iraq.

The latest indictment by a New York grand jury unsealed Wednesday charges Bout and an American associate, Richard Chichakli, with conspiring to violate international sanctions aimed at stopping the flow of weapons to armed conflicts in Africa. Chichakli’s whereabouts is unknown.

The 43-year-old Bout allegedly emerged as an international weapons trafficker following the collapse of the Soviet Union in the 1990s. As part his alleged illegal operation, he assembled a huge fleet of air cargo planes capable of transporting weapons and military equipment across the globe. His air cargo company had a reputation of flying almost anything anywhere.

Bout is believed to have been the inspiration for the 2005 movie “Lord of War” starring actor Nicholas Cage who played a charismatic and dangerous Russian arms dealer. He reportedly rented his planes to the movie’s producers for use in the film.

Bout has repeatedly denied the allegations against him and has vehemently fought extradition to the United States.

DEA Acting Administrator Michele Leonhart said the new indictment illustrates “the extraordinary breadth of Bout’s deadly criminal enterprise.’’

February 17, 2010

Interfax: Christopher Bryant: Our intent towards Russia is entirely peaceful

http://www.interfax.com/interview.asp?id=147631

British Minister of State for Europe Christopher Bryant has given an interview with Interfax in which he discussed EU-Russian and British-Russian visa arrangements, criticized Russia’s new military doctrine, and pledged not to stand in Ukraine’s way to the European Union.

Question: Let me ask you quite a general question. How would you describe the current state of relations between the UK and Russia. What steps have the two countries yet to make towards each other after the Litvinenko affair?

Answer: Well, we have had an embassy here for nearly 500 years, and it has been a very long relationship with Russia, and very strong trading links for many centuries as well. So, I think though there are a couple of issues which are difficult between us, nonetheless Russia and the UK are both on the Security Council of the United Nations and are key, major economies of the world, and on the whole range of issues it is important that we work together. And we do work together. And for stability, for economic prosperity and for ensuring that there is a peaceful world. So, I feel [we have strong relationship] as it happens. This is not my first visit to Moscow, I’ve twice before. I came in 1987 and 1997 and now. So, I seem to come to Russia every ten years.

Q.: So, in ten years we will have a chance to see you again.

A.: Well, I hope that we are going to win the general election in the UK and in which case I’d like to come much more regularly. I think that part of my job as minister for Europe, which includes Russia, and I think we should hope to have, you know, annual meetings really. In fact, some of you that I might be seeing in Moscow this time I’ve already met in the UK, we had meetings before Christmas, and the London Afghanistan conference as well.

Q.: Mr. Bryant, how will you characterize the coordination of Britain and Russia efforts to overcome the economic crisis?

A.: Well, this has been one of the things where we have worked very closely together and Gordon Brown last year in the G20 conference in London was very keen to work with Russia to make sure that we had similar packages, because we knew that with each of the countries in the world, all the major economies suffering some of the same problems. We needed to have what we call a fiscal stimulus in the UK, you called it something slightly different, but basically it was the same thing which is putting money into the economy and to protect people from unemployment and further collapse of the economy.

The challenge now is both in the UK and in Russia to see what exit strategy we have, because we put all this extra money in big deficits in Russia and in the UK. And we are going to have to start cutting that deficit we would have halved it in the next four years. But I think if all the countries in the world can coordinate their actions to cut those deficits then that would be more effective.

Q.: And would you assess the current investment climate in Russia? Do you think there are some restrictions here against foreign businesses?

A.: Lots of British businesses do a lot of work here, and not just in oil and gas, though that’s a large part what we do: BP, Shell and others. A lot of law firms do business here as well. And I met with the managing director of JCB the other day, the construction firm, and they do a lot of business here as well. But I think there is an issue for Russia about, if you want to make an investment in a country you want to make sure that you’re not going to have to pay bribes to people, and that if make you that investment it is yours and that you not going to suddenly have it taken off you by the government, and that the staff who are working for you are going to be safe and secure, and that the criminal justice system is fair and decent. And there are challenges. I think that everybody accepts that, President Medvedev said himself that these are areas Russia needs to change. Not least because otherwise there is a danger that Russia will rely more and more and more on one industry which is oil and gas.

Q.: And if I am not mistaken there is an issue now whether license for the Kovykta field, which BP controls, will be renewed. What you heard about this?

A.: That one is new to me. Sorry, no I don’t know about that. Nobody’s mentioned it to me.

Q.: Mr. Trutnev from the ministry which is responsible for oil, gas and other mineral resources is going to recall the license.

A.: Well, when it feels to investors that government is making capricious decisions, then investors get very worried about making future investments. That is very true. And you have many natural resources in Russia. But you can’t get them out and sell them to people without investment from the rest of the world. And that is a really important part of making sure that Russia’s economy survives.

Q.: What are British companies’ capabilities at the Shtokman field?

A.: The Shtokman field. Again I don’t know about the Shtokman field. I am not an expert on oil and gas. The department that works most closely between the UK [and Russia] on all of these issues is the energy department in the UK and the department for business with Peter Mandelson. He paid a visit here last year. I think he is quite well-known here.

Q.: Ok, so, let me ask you another question about visa regime between Britain and Russia. Does Britain plan to restart the talks on visa-facilitation regime between our two countries. Because if I am not mistaken a lot Russian citizens, especially businessmen have problems with getting British visas, as well as Britons who work here and have business have problems extending their work visas. So what do you think about this?

A.: I am not sure there is that much of a problem. 130,000 Russians get visas to come to the UK every year. We do not say ‘no’ to a higher number here than anywhere else in the world. We don’t have lots Russian hanging around in Britain at the end of their visas and not coming back. But I can’t see us [Britain] changing the visa regime at the moment.

Q.: Why? What is the reason?

A.: Because I think it works quite well as it is. I think that’s we’ve not detected any major problems for business at either end. There are lots, as I’ve said already, lots of Russian coming to the UK, there are lots of British people coming to Russia. And I know there is one element that Russia changed first, and we matched it, which was in terms of official visits and it is just a single-visit visa that we provide, but it was Russia to decide that first, and so now we mirror that.

Q.: How soon in your opinion would Russia and the EU switch to visa-free travel?

A.: I think it will take quite a long time myself. I know that my Spanish colleagues are keen to have talks with Russia at the moment and that’s excellent but you know there are issues with organized crime in Russia and the last thing we want to do in the European Union or in the UK is make it easier for organized crime to flourish because there is an open visa arrangement. And I think while the Spanish want to move fast some other countries will want to move much more slowly on these issues. And if Russia could prove that it didn’t have these issues with organized crime then that would make life much easier.

Q.: But not in the nearest future?

A.: I can’t see it happening. But, as you know, Britain has a slightly different [regime], we are not in the Schengen zone within the European Union, so the Schengen countries take a slightly different attitude. I know that several European countries are much more reluctant to have an open visa arrangement with Russia than for instance Spain is.

Q.: In this connection I would like to go to Ukraine. How do you assess the election campaign there? Do have some questions related to this? And do you still advocate Ukraine’s membership in the EU and NATO?

A.: It seems to be an open election, hotly contested. And we would be perfectly happy to work with whoever won in Ukraine. Our Prime Minister Gordon Brown has already congratulated Mr. Yanukovych. And it’s a very interesting turnaround for him personally over the last 10 years. And I’ve met several politicians from Ukraine. And it is clear that a lot of have an ambition to join the European Union, and we wouldn’t stand in their way. But in the end it will be a choice for Ukraine, whether it wants to make all the changes that it has to. My biggest worry is actually about the economy in Ukraine, because they are going to need an IMF loan, they have made some rash promises about they’re going to increase expenditure on the public sector and they are going to have to sort these issues out before the world can look to an IMF fund. I think that it was good that Russia and Ukraine this year came to a better understanding over gas, so we didn’t have gas switched off all over Europe. And we need to maintain those kind of strong links.

Q.: Do you think Ukrainians should have a referendum on Euro-Atlantic prospects?

A.: Well that’s for Ukraine to decide. But the one thing I would say to Russia is just because a country like Ukraine has an ambition to join the European Union or join NATO doesn’t mean that it is suddenly becoming anti-Russian. It is not a choice. I think you can be pro-Russia and pro-Europe. And if there is one thing I wish my Russian counterparts understood better it was that we have no intent against Russia, and the European Union doesn’t. We want to work with Russia. It is one of the things that we talk about, foreign affairs, with all my other counterparts in the EU. We talk about how we can improve our relations with Russia all the time.

And so, for instance, when recently the Russian cabinet produced a new military doctrine, which said that the biggest threat to Russia was NATO and the lowest threat was international terrorism. But this is clearly untrue; NATO has no intent against Russia. I don’t think any Russian soldier has been involved or will be involved in any action against NATO, whereas, you know, Russians have died from international terrorism. There have been many incidents in the last few years. So, I would challenge Russia and say: no, you are wrong on this.

Q.: How would you comment on the recent news items concerning Romanian and Bulgarian desire to have elements of the American anti-missile system?

A.: Well, I think that it is a decision for them. But again I say, I know it is very cold here, but I don’t believe in a Cold War. The Cold War is long dead. And the United Kingdom was the first country to recognize Soviet Russia, and I think it was in 1924 when we had a very brief labor government in 1924, it only lasted seven or eight months, but our intent towards Russia is entirely peaceful. We want to trade with Russia, we want to be good friends, we want to cooperate on international issues. One of these is coming up is Iran, where I think a lot of people here are as just worried about the Iranian intent as we are.

Q.: Will Britain call to sanction against Iran in the nearest future in the Security Council?

A.: Yes. I mean, the European Union already has a series of sanctions against Iran, and we’ve worked very closely with Russia and the E3+3 group. And I am sure that there will be a move for further sanctions in the near future through the UN. Some of the things we’ve heard again in recent weeks in Iran are very worrying. I fully support Iran’s right to have a nuclear energy program, but I don’t want any more countries to have a nuclear weapon. We should in business in trying to limit the number of nuclear weapons in the world and limit the number of countries with nuclear weapons, and that’s one of the things the Americans and Russians are trying to work together on. And so are we as another nuclear power.

Q.: What do you expect from Russia in this connection?

A.: To agree with me.

Q.: Will you try to talk about this issue…

A.: Well I’m not seeing the ministers here who are in charge of Iranian policy. But I know that is one of the things that is ongoing discussion between the UK and Russia. As [UN] Security Council members we would bound to be amongst the countries that are most significant in making that decision.

Q.: Let me ask you about Georgia. Will Britain continue giving economic and military aid to the current Georgian leadership? And has London changed its position towards the conflict in the Caucasus in August, 2008?

A.: No. We saw the Tagliavini report, as confirming what we believed which was that there had been some initial problems on the Georgian side, but that Russia overreacted. And we believe that the Sarkozy-Medvedev agreement should be fully implemented, and that means that Russian troops should be withdrawing, they should already have withdrawn. I will be urging my counterpart for that to happen as soon as possible. We don’t support Abkhazia and South Ossetia splitting off from Georgia, we believe in the geographical integrity of Georgia. And I will be urging my Russian counterparts to support that. We will see where I get.

Q.: Good luck.

Interfax: Russian Muslims set up Supreme Coordinating Council

http://www.interfax-religion.com/?act=news&div=6950

Moscow, February 18, Interfax – Representatives of three centralized Islamic organizations of Russia agreed to establish the Supreme Coordinating Council of Russian Muslims.

Representatives of the Central Muslim Board of Russia, the Council of Muftis of Russia and Coordinating Center of Muslims of the North Caucasus at the session of joint working group in Moscow chaired by Petersburg Mufti Jafar Ponchayev unanimously supported CMBR head Talgat Tajuddin as he proposed setting up the Supreme Coordination Council of Russian Muslims without forming a legal entity, an Interfax-Religion correspondent reports.

“Recognizing absolute necessity to unite Muslim Ummah (community – IF), the working group considers inacceptable and impossible to set up a one religious Muslim organization at the present moment,” the working group said in its statement conveyed to journalists.

The participants unanimously rejected the idea of convening All-Russian Muslim Congress and electing a “Muslim Patriarch.”

The working group recommends that the Supreme Council should be co-chaired by four persons from each centralized Islamic organization. At the same time, three co-chairmen will chair the proposed Council. The participants mention that three Islamic leaders: Mufti Tajuddin, head of Russian Council of Muftis Ravil Gainutdin and CCMNC head Ismail Berdiyev would be appointed now. However, other muftis can be elected to these posts in the future.

The working group participants recognize as non-legitimate the session of another working group on uniting Muslims held in the Council of Muftis on February 2, 2010.

RFE/RL: British Lawmaker Praises Human Rights Groups In Chechnya

http://www.rferl.org/content/British_Parliamentarian_Praises_Human_Rights_Groups_In_Chechnya/1960722.html

February 17, 2010

GROZNY, Chechnya -- A British member of Parliament on a fact-finding trip to Chechnya has praised the work of Russian human rights groups and Chechen NGOs investigating disappearances and abductions, RFE/RL's North Caucasus Service reports.

Lord Frank Judd told RFE/RL the purpose of his visit is to evaluate the situation in Chechnya in terms of freedom, human rights, and "accountable democracy." He declined to comment on the political situation in the republic but did say that people who are "disillusioned, oppressed, and disgruntled" because of the way they are treated by their government are potential recruits for the Islamic insurgency.

Judd described the reconstruction of Grozny's infrastructure as "very impressive," but added that thousands of Chechens remain homeless.

Judd served for years as the rapporteur for Chechnya for the Parliamentary Assembly of the Council of Europe (PACE). He resigned that position in March 2003 to protest the referendum on a new Chechen Constitution, which he argued was premature.

Russian NGOs that monitored the vote estimated turnout at around 10 percent.

The Russian authorities claimed that 85 percent of voters took part.

Judd's British delegation is scheduled to meet today and February 18 with Chechen government officials, possibly also with Chechen Republic head Ramzan Kadyrov.

The Moscow Times: Yamal Governor To Leave Office

http://www.themoscowtimes.com/news/article/yamal-governor-to-leave-office/400018.html

18 February 2010

The Moscow Times

The governor of the gas-rich Yamal-Nenets autonomous district, Yury Neyelov, said Wednesday that he would step down after his third term ends in March.

Neyelov, 58, who has run the region in Western Siberia since 1996, told reporters Wednesday that he has already asked President Dmitry Medvedev not to submit his candidacy for another term.

“I have made a deliberate decision not to wait until my fate is decided,” Itar-Tass quoted Neyelov as saying.

“On Feb. 12, it was exactly 16 years that I have led the district. That’s more than three terms. The president of Russia made a fundamental decision to renew the governors corps, so that governors don’t lead the regions for more than three terms,” Neyelov said, Interfax reported.

Neyelov’s name was earlier included on a list, compiled by ruling party United Russia, of potential governors for the region following the end of his term next month. The list, which was submitted to Medvedev for review, includes Neyelov's deputy, Viktor Kazarin; a local district head, Dmitry Kobylkin; and the head of a Gazprom partner company, Igor Fyodorov, who studied law with Medvedev at the same university in Leningrad.

Meanwhile, regional parliaments in Krasnoyarsk and the Jewish autonomous region confirmed new governors Wednesday, the regional governments reported on their respective web sites.

Lev Kuznetsov, a 44-year-old former executive at Norilsk Nickel, was confirmed as the Krasnoyarsk governor, while Alexander Vinnikov, 54, was approved as the Jewish autonomous region's new governor. Vinnikov had previously served as mayor of the regional capital, Birobidzhan.

Medvedev proposed the candidacies of both men.

Kuznetsov replaces former Norilsk CEO Alexander Khloponin, whom Medvedev promoted last month to head the newly created North Caucasus Federal District, while Vinnikov replaces Nikolai Volkov, 58, who had held the post since 1991.

Russia Today: Climate chaos continues: who’s at fault?

http://rt.com/Top_News/2010-02-18/climate-change-debate-marketing.html/print

18 February, 2010, 07:14

As the debate over climate change heats up and some scientists continue to maintain that global warming is caused by humans, others are claiming it is all part of a clever marketing scheme.

Head of National Energy Security Fund Konstantin Simonov said to RT, “The global warming theme is a fine opportunity to sell goods with an ecological margin. I mean you come to a shop and see expensive merchandise. You ask: Why so expensive? They reply: Friend, it's ecologically clean merchandize. Purchase it and you will save the planet. And this sort of thing is happening everywhere.”

He also believes that much of the greenhouse gas debate is just that – hot air – with governments posturing in one direction, but acting in another.

“Take the US position: We have a new administration and we will work for ecology. Where is it? Have they joined the Kyoto Protocol? No. Did they save the Copenhagen summit? No. Obama took the PR cream off, but the paper remained unsigned,” Simonov adds.

However, people who are for clean energy say that pursuing green technology such as wind farms is more important now than ever.

Valery Vasilyev, head of Eco-friendly Company, notes that the existing installations make it possible to save electric power and “teach people how to use power the right way.”

“If they save, then less thermal-plant production is needed. This kind of symbiosis, the use of several sources of power – wind, solar, atomic, thermal, hydro – is rather effective and makes it possible to save fuel and natural resources,” Valery Vasilyev added.

Whether or not green technologies are developed, the argument still remains as to whether humans have actually had a major impact on the climate in general or if it's just a naturally re-occurring phenomenon which has happened throughout the ages.

John Christie, climatologist from the University of Alabama says human activities “really don’t change the entire global climate.”

On the other hand, Valery Kokorin, WWF representative, believes man is responsible for huge increases in carbon-dioxide gas – the driver of global warming.

“The temperature is just a symptom of illness. The main reason is CO2 concentration; the anthropogenic increase of CO2 concentration. It is completely proven!" insists Valery Kokorin.

Scientists may argue, but the question remains: Is the general public ready to change their lifestyle simply for the idea of a cleaner planet?

Russian TV producer Sergey Nadezhdin has his own view on the matter:

“Russia is not an environmentally friendly country at all. Polls have shown that most people – 60% – agree with us, which means it's important to understand that every environmental initiative has a price. I asked whether they are ready to pay, let's say a thousand dollars a year, for a better environment, and most people say no.”

Reuters: At least one dead in Russia mine collapse

http://in.reuters.com/article/governmentFilingsNews/idINLDE61H06A20100218

Thu Feb 18, 2010 12:07pm IST

YEKATERINBURG, Russia, Feb 18 (Reuters) - One person was killed on Thursday when part of a potash mine collapsed near the Urals mountains city of Perm, said a spokesman for the mine's owner, Uralkali (URKA.MM).

One person died in the accident and the mine has been evacuated, spokesman Alan Basiyev told Reuters. The accident is not expected to have any significant effect on production, he said. (Reporting by Natalya Shurmina; Writing by Conor Humphries; Editing by Guy Faulconbridge)

AP: Quake rocks China-Russia-North Korea border region

http://www.google.com/hostednews/ap/article/ALeqM5gdspdDB0WaMv_An4A-NvHB_DwmCwD9DUB3000

(AP) – 3 hours ago

BEIJING — A magnitude 6.7 earthquake rocked the region where China, Russia and North Korea meet Thursday, the U.S. Geological Survey said. There were no immediate reports of damage or injuries.

Though area residents said they did not feel the quake, office towers in Beijing — about 770 miles (1,240 kilometers) away from the epicenter — swayed slightly for about a minute.

The quake occurred 335 miles (540 kilometers) below the earth's surface.

With earthquakes centered deep underground, sometimes those close to the epicenter don't feel it while people further away notice some shaking, said the duty officer at the Seismological Bureau of Yanbian Korean Autonomous Prefecture in northeast China's Jilin province. He refused to give his name as is common among Chinese officials.

The Korea Earthquake Research Center said there was no damage in North or South Korea and that quakes occur in that region about once a year.

The USGS said the epicenter was on the Russian coast along the Sea of Japan, 61 miles (98 kilometers) west-southwest of Vladivostok, about 70 miles (110 kilometers) east of China's Yanji city in Jilin province.

Reuters: Powerful quake hits near China-Russia border

http://www.reuters.com/article/idUSTRE61H0ET20100218

Wed, Feb 17 2010

SINGAPORE (Reuters) - An earthquake of magnitude 6.7 hit near the China-Russia border on Thursday, but its epicenter was extremely deep and there were no immediate reports of casualties or damage.

The quake, which occurred at 0113 GMT, was centered midway between the Russian city of Vladivostok and Chongjin, North Korea's third largest city. It struck at a depth of 563 km (350 miles), the U.S. Geological Survey said.

The Pacific Tsunami Warning Center put the coordinates at 42.7 north and 130.9 east. It said there was no danger of a tsunami.

Early estimates put the magnitude at 6.9. The USGS later put the figure at 6.7, a powerful quake but one with effects on the surface likely to be minimized by the extreme depth.

"As far as we know, there have been no reports of damage," an official at China's national seismological bureau told Reuters.

"There have been no reports of any damage here. Everything is calm," a spokesman for Russia's Emergencies Ministry in the Far East city of Vladivostok said by telephone.

"Since the earthquake was 560 km underground, there shouldn't have been much damage," Ham Young-mo at South Korea's National Earthquake Center said.

North Korea's official news agency carried no immediate reports on the quake.

(Additional reporting by Reuters Moscow, Beijing, Seoul and Tokyo bureaux; Writing by Nick Macfie; Editing by Jerry Norton)

Wharton.upenn: Taking the 'R' out of BRIC: How the Economic Downturn Exposed Russia's Weaknesses

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2430

Published: February 17, 2010 in Knowledge@Wharton

Last June, when Russia's president, Dmitry Medvedev, gathered fellow BRIC heads of state -- Brazil's President Luiz Inácio Lula da Silva, India's Prime Minister Manmohan Singh and China's President Hu Jintao -- in the central Russian city of Yekaterinburg for the group's first-ever leaders summit, he called for those present to "create the conditions for a fairer world order ... a multi-polar world order."

Medvedev's rhetoric is a giveaway to how, at least in some quarters, the BRIC concept, first put forward in 2003 by analysts at investment bank Goldman Sachs, has evolved from one of economic shorthand to one of political posturing, primarily against American superpower dominance. In a similar gesture, Medvedev dedicated significant air time at the summit to calling for a diversification of world reserve currencies away from the dollar -- a point about which China, which holds some $2 trillion in dollar-denominated reserves, remained silent.

Ever since BRIC was first postulated as a way to group those large, fast-growing emerging markets that, at the time anyway, were expected to be the main engines of world economic growth in coming years, observers have wondered which other countries might have BRIC characteristics. Certainly, there is an ever-growing list of countries being promoted for their BRIC-like qualities to attract international business and investment interest. Goldman Sachs, in a 2005 follow-up to its first BRIC report, put forward its so-called "N11" -- or Next 11 -- group of BRIC aspirants, including Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey and Vietnam.

But now many experts question whether the once promising BRIC label has begun to lose its luster -- especially in the case of Russia. Last year, Russia's economic performance was the worst among the BRIC economies by a large measure: For the whole of 2009, its real GDP is expected to have declined by at least 8% and some quarters by more than 10%. That compares to Brazil's smaller real GDP decline of 5.5%, while China's and India's GDPs grew by 8.3% and 6.5%, respectively. Russia's performance is even worse when compared to 2008, which takes into account the bursting of the oil-price bubble in the middle of that year.

Oil and Other Risks

Russia is the world's largest producer of oil and gas, which is the primary source of its power but also a significant source of economic risk. According to Witold Henisz, a management professor at Wharton, oil and gas are "both a blessing and a curse" for the country. Unlike other major emerging economies, such as Korea, Russia hasn't had to aggressively seek its revenue. And because it has never made a clean break from its feudal past, economic -- and political -- power lies in the hands of a few. This has reverberated throughout the country, Henisz says, bringing with it a "tendency toward centralization, control and coercion."

Although the severity of Russia's economic decline has been due to several factors, Ira Kalish, director of global economics at Deloitte Research, says that the obvious beginning was the bursting of the oil-price bubble in mid-2008. This sharply curtailed export revenues and made the country's foreign debt obligation loom much larger than it had when oil prices where heading toward $150 a barrel. Then the worldwide credit crunch squeezed the government's debt position even further and, in turn, percolated into Russia's domestic financial sector, leaving several large institutions in need of bail-outs. Rising interest rates to support a collapsing ruble completed the vicious cycle, leading to even tighter credit and further declines in foreign currency reserves.

Still, while oil prices fell by more than 70% from their 2008 peak, they recovered during 2009 to an average price for the year that was above that