Russia 100416

Basic Political Developments Itar-Tass: New START agt with Russia to promote ABM development-Pentagon -

The new Strategic Arms Reduction Treaty (START) signed with Russia not only sets no obstacles for the creation of the American anti-ballistic missile (ABM) defence system, but on the contrary, lifts the earlier restrictions, Director of the Pentagon’ s Missile Defence Agency (MDA) Lieutenant General Patrick J. O’Reilly said in the US Congress on Thursday.

RIA: BRIC develops into powerful decision-making force – Medvedev - The BRIC (Brazil, Russia, India, China) group is gradually becoming a global force capable of making concrete decisions, Russian President Dmitry Medvedev said on Friday.

Itar-Tass: Medvedev praises BRIC format - Russian President Dmitry Medvedev said on Thursday the BRIC group uniting Brazil, Russia, India and China has developed into “a full-fledged mechanism both for coordinated effort and concrete decision-making”.

Russia Today: BRIC countries have an “interesting and productive” dialogue – Medvedev

RIA: Russia, Brazil discuss Iranian nuclear program - "The discussion focused on international issues, including the Iranian nuclear program," Natalia Timakova said… Medvedev said possible sanctions against the Islamic republic "should ensure nuclear nonproliferation rather than punish the Iranian nation."

Itar-Tass: Medvedev, Hu discuss major economic projects - “The leaders discussed enhanced cooperation, including on key international issues. Besides, the talks focused on interaction in BRIC and SCO formats, on the promotion of major economic projects, regional cooperation, intensive humanitarian exchanges and youth contacts,’ Medvedev’s foreign policy aide Sergei Prikhodko told reporters.

Xinhua: Chinese, Russian presidents meet on bilateral relations - Despite some impact on bilateral trade by the global economic crisis, the quality of bilateral economic cooperation between China and Russia has improved, with trade structure optimized and significant progress achieved in energy sector cooperation.

Russia Today/Vedomosti: To Argentina, with helicopters - The first Russian leader to visit Argentina, Dmitry Medvedev, urged to restore the commodity turnover rate, which had fallen by one-third. So far, however, a contract for only €20 million was signed.

Itar-Tass: Canadian foreign minister to visit Moscow April 18-19 – FM MID.ru: Russian MFA Spokesman Andrei Nesterenko Interview to RIA Novosti

on the Upcoming Visit to Moscow by Lawrence Cannon, Minister of Foreign Affairs of Canada

Medvedev expected to visit Kiev April 21 for talks with Yanukovych Itar-Tass: Medvedev to visit Ukraine next week to meet with Yanukovich Interfax: Russia ready to discuss possible cut in gas prices for Ukraine –

Medvedev: Russia is ready to discuss the possibility of reducing the price of

natural gas it sells to Ukraine, Russian President Dmitry Medvedev said in Brazil, where he attended the second official BRIC summit (Brazil, Russia, India and China) on Friday.

Lenta.ru: Medvedev's first visit to Ukraine will take for gas talks Abc.az: Azerbaijan and Russia added issue of water use to border delimitation

matter Actmedia: Ukrainian press: If Romania gets Maikan Island, Russia will raise

territorial demands from Ukraine KYRGYZSTAN

o Itar-Tass: Russia to cooperate only with legitimate Kyrgyz govt – pres: "We are ready to provide humanitarian aid, but we will implement major interstate projects only if we realise that the new legitimate government is ready to cope with them," the president said.

o Interfax: Police surround house where Bakiyev brother reportedly iso Itar-Tass: New Kyrgyz govt gets Bakiyev’s resignation lettero RIA: Kyrgyz scenario may repeat in other states – Medvedevo RIA: President Medvedev hopes 'negative scenario' in Kyrgyzstan avertedo Reuters: UPDATE 1-Russia's Medvedev sees end to Kyrgyzstan turmoilo RUVR: Medvedev cautions CIS countries against pursuing Bakiyev’s

policy POLISH PLANE CRASH

o Reuters: Volcanic ash may force delay in Polish funeral - "If this (volcanic ash) could affect events and if some participants are not able to arrive, then such an option (delay) could be considered," Jacek Sasin, an official in the president's chancellery, told RMF FM radio.

o Thenews.pl: Pilot was not under pressure to land, says investigatoro RIA: Kaczynski's plane hit trees far from runway – IAC

RIA: Russian cruiser passes Suez Canal on mission in Indian Ocean RIA: Russian warship escorts another convoy in Gulf of Aden BNS: Russia puts off launch of its new nuke attack sub Aviation Week: First India MRO For Russian Aircraft Opens Indian Express: Commodore's links with Russian woman established: Navy probe

- Defence Minister A K Antony on Friday said a Navy inquiry has established a senior officer's connections with a Russian woman, but it was yet to be probed whether the link had influenced the price hike of the Admiral Gorshkov aircraft carrier.

Moscow Times: Russia's New Place in NATO - By Dmitry Trenin AP: Russia to enhance Olympic security after attacks - Sochi is less than 200

miles west of the volatile regions of Ingushetia, Chechnya and Dagestan, where authorities are fighting a deeply entrenched Islamist insurgency. Officials attribute the recent terrorist attacks across the country to suicide bombers from Dagestan.

Moscow Times: Russia to Join WTO Alone - Russia may abandon its plans to join the World Trade Organization in a joint bid with Kazakhstan and Belarus, First Deputy Prime Minister Igor Shuvalov said Thursday, recanting a plan that many experts said was doomed from the start.

Itar-Tass: Duma to proclaim amnesty for war veterans

Echo Moskvy: 16.04.2010 09:05: The State Duma will consider today a package of bills to reform the Ministry of Internal Affairs

Lenta.ru: Medvedev agreed not to discriminate against policemen RBC: In Chechnya, in a series of explosions three members of the Defense

Ministry killed Earthtimes: At least three soldiers dead in Russian anti-terror action Moscow Times: Nashi Celebrates Fifth Year With Kremlin Support Wall Street Journal: Russian Official Demands More U.S. Adoption Oversight Moscow Times: Novaya Gazeta Warned - Novaya Gazeta has been reprimanded

by the federal media watchdog for publishing an article allegedly inciting ethnic hatred, deputy editor Sergei Sokolov said Thursday.

ICELAND ASH CLOUDo RBC: A cloud of ash stopped the work of several airports in RF o Itar-Tass: Kaliningrad airport closed for flights over Iceland ash cloudo Itar-Tass: Ash cloud erupted by volcano in Iceland reaches Kola Peninsula

RIA: Is Russia selling out Iran? - Russian President Dmitry Medvedev's criticism of Iran during his recent visit to the United States came as a pleasant surprise for the Western and Israeli press. Medvedev said, "Iran is causing some problems", adding that "the most important thing now is for us to find evidence of what their nuclear program is." – by Dmitry Babich

Middle East Media Research Institute: Syrian Government Daily: U.S., Israel behind Moscow Bombings

National Economic Trends Reuters: Russian rouble at fresh highs, as c.bank steps away Interfax: Industrial output up 0.1% in March compared with Feb – Nabiullina Moscow Times: Industrial Output Rises More Than Expected Cbonds: Russia cuts US Treasuries investments 3.2% to $120.2 bln in February Moscow Times: Trend of Crediting Interest to Ruble Bank Accounts

Business, Energy or Environmental regulations or discussions Bloomberg: Lukoil, Gazprom, Polyus: Russian Equity-Market Preview Bloomberg: Rusagro Valued at Up To $1.67 Billion Before IPO, Vedomosti Says Reuters: Russkoye Morye sets IPO price at low end: source Bloomberg: Russian Fertilizer Maker PhosAgro Considers $1 Billion IPO Reuters: BRIEF-VimpelCom announces results of U.S. exchange offer Reuters: Telenor says "very close" to closing Alfa deal Reuters: Farimex drops Russian court case against Telenor S&P: Russia-Based Renaissance Financial Holdings Ltd. Rated 'B+/B'; Outlook

Negative JoongAng Daily: Posco announces Zaporizhstal bid - According to Posco, it is

one of the bidders for the Ukrainian steelmaker, which also produces iron ore. Other bidders include Arcelor Mittal and OAO Severstal of Russia.

Alibaba: Severstal invests $685 million in Russian division's key projects

Sheremetyevo International Airport handled 28.5 percent more passengers in the first three months of the year compared with the same period in 2009, the firm said Thursday. (Bloomberg)

Evraz Group may raise debt in North America to help fund its Canadian and U.S. assets, president Alexander Frolov said, Kommersant reported. (Bloomberg)

Bloomberg: KamAZ Had Net Loss of 3.4 Billion Rubles in 2009 After Profit Moscow Times: Production of Classic Ladas to Double in May Reuters: Steel baron Vladimir Lisin tops Russia rich list

Activity in the Oil and Gas sector (including regulatory) Bloomberg: Shmatko Says Gas Exporters ‘Concerned’ About Europe Spot

Market Oil and Gas Eurasia: Ukrainian Transit Tariff for Russian Gas Set to Rise Moscow Times: State May Sell Oil Fields Apa.az: Paris to host the 10th Anniversary CIS Oil & Gas Summit Oil and Gas Eurasia: Irkutsk to Fill VSTO With 23 Million Tons of Oil by 2025 Oil and Gas Eurasia: TNK-BP to Invest $300 Million in Saratov Refinery Bloomberg: Repsol to Sell Stake in Russia’s Alliance, El Economista Says

Gazprom Dow Jones: Gazprom, Qatar Discuss Joint LNG Project At Northern Field Gulf Times: Gazprom CEO calls on Emir Trading Markets: Gazprom might invest in Danish Dong Energy Kyiv Post: Gazprom: Rate for gas transit through Ukraine to increase to $2.84-

$2.88 per 1,000 cubic meters UPI: Kiev, Moscow gas talks strictly bilateral Sofia Echo: Squabble Stream - Since Prime Minister Boiko Borissov took office

in July 2009, Bulgaria has come under relentless pressure from Russian officials to speed up work on construction of joint energy projects. On South Stream, in particular, the talks have stalled repeatedly over a number of sticking points.

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Full Text Articles

Basic Political Developments

Itar-Tass: New START agt with Russia to promote ABM development-Pentagon

http://www.itar-tass.com/eng/level2.html?NewsID=15031374

16.04.2010, 10.57

WASHINGTON, April 16 (Itar-Tass) - The new Strategic Arms Reduction Treaty (START) signed with Russia not only sets no obstacles for the creation of the American anti-ballistic missile (ABM) defence system, but on the contrary, lifts the earlier

restrictions, Director of the Pentagon’ s Missile Defence Agency (MDA) Lieutenant General Patrick J. O’Reilly said in the US Congress on Thursday.

He took part in hearings that were held in the Armed Services Committee of the House of Representatives and focused on the Obama administration’s 2011 National Defence Authorization Budget Request for Missile Defence Programmes.

The Department of Defence, in particular, would like to get for these purposes 9.9 billion US dollars. A Republican Congressman Michael Turner touched upon the issue of the interrelation between the strategic offensive and defensive weapons that was fixed in the START on Russia’s demand. He said that he is still worried that such a link may potentially result in the US self-restriction of activities related to missile defence.

O’Reilly said that in actual fact, the new agreement, compared with the old START, liquidates restrictions on the development of ABM systems. He said the United States conducts many tests of antimissiles over the Pacific Ocean. And the previous treaty prohibited to the US side to use for this purpose target missiles launched from planes and ships. There are no such restrictions in the new treaty.

According to O’Reilly, the use of such targets will cut the costs linked with the tests of interceptors designed to destroy medium- and intermediate-range missiles.

He said that the new START also allows to display much more flexibility regarding the flight range of the tested antimissiles. In the past the tests were limited by 1,000 kilometres, he explained. Now it is allowed to test the interceptors on targets at a distance of 2,000, 3,000 and 4,000 kilometres. The new treaty does not limit it in any way, the official noted.

The Republican lawmakers had from the very start insisted that the new treaty should not contain clauses that would impede the missile defence system development. They warned Obama that otherwise the document will face major difficulties in the process of its ratification in the US Senate. The Republicans believe that in the conditions when, as the US intelligence claims, Iran and North Korea are strengthening their missile potential, Washington should not have its hands tied regarding the creation of antimissiles and their deployment closer to the countries from which the corresponding threat emanates.

START was a bilateral treaty between the USA and the USSR on the Reduction and Limitation of Strategic Offensive Arms. The treaty was signed on 31 July 1991 and entered into force on 5 December 1994. It barred its signatories from deploying more than 6,000 nuclear warheads atop a total of 1,600 ICBMs, submarine-launched ballistic missiles, and bombers. START negotiated the largest and most complex arms control treaty in history, and its final implementation in late 2001 resulted in the removal of about 80 percent of all strategic nuclear weapons then in existence. Proposed by US President Ronald Reagan, it was renamed START-1 after negotiations began on the second START treaty, which became START-2.

The treaty expired 5 December 2009, but currently remains in force indefinitely pending agreement on a successor, since Russia and the United States failed to reach agreement on a new pact until the deadline.

START-2 followed START-1 and, although ratified, the treaty has never entered into force. The historic agreement started on June 17, 1992 with the signing of a ‘Joint Understanding’ by the presidents. The official signing of the treaty by the presidents took place on January 3, 1993. It was ratified by the US Senate on January 26, 1996 with a vote of 87-4. However, Russian ratification was stalled in the Duma for many years. It was postponed a number of times to protest American invasion of Iraq and military actions in Kosovo, as well as to oppose the expansion of NATO.

On April 14, 2000 the Duma did finally ratify the treaty, in a largely symbolic move since the ratification was made contingent on preserving the ABM Treaty, which it was clear the US was not prepared to do. START-2 did not enter into force because the Russian ratification made this contingent on US Senate ratifying a September 1997 addendum to START-2 which included agreed statements on ABM-TMD demarcation. Neither of these occurred because of US Senate opposition, where a faction objected to any action supportive of the ABM Treaty. On June 14, 2002, one day after the US withdrew from the ABM Treaty, Russia announced that it would no longer consider itself to be bound by START-2 provisions.

The treaty was officially bypassed by the SORT treaty, agreed to by Presidents George W. Bush and Vladimir Putin at their summit meeting in November 2001, and signed at Moscow Summit on May 24, 2002. Both sides agreed to reduce operationally deployed strategic nuclear warheads to 1,700 from 2,200 by 2012.

RIA: BRIC develops into powerful decision-making force – Medvedevhttp://en.rian.ru/russia/20100416/158602959.html

07:3516/04/2010

The BRIC (Brazil, Russia, India, China) group is gradually becoming a global force capable of making concrete decisions, Russian President Dmitry Medvedev said on Friday.

The leaders of the four leading emerging powers have gathered in the Brazilian capital to discuss ways to improve of the current global economic and political situation and strengthen their cooperation.

"The BRIC format is becoming fully-developed. It allows us not only to coordinate our efforts but also to make concrete decisions," Medvedev told a news conference after the summit.

Medvedev said that although the summit had been scaled back due to a devastating earthquake in China, which forced Chinese President Hu Jintao to go home earlier than planned, the leaders managed to discuss a wide range of political and economic issues on the global agenda.

In a six-page joint statement, the four increasingly influential countries praised the key role of the G20 group of leading world economies in efforts to overcome the global financial crisis and urged a broader use of local currencies in global and regional trade.

The document also includes the BRIC group's consolidated position on energy security, climate changes and the fight against terrorism.

The countries agreed to hold the next BRIC summit in China in 2011.

BRASILIA, April 16 (RIA Novosti)

Itar-Tass: Medvedev praises BRIC format

http://www.itar-tass.com/eng/level2.html?NewsID=15030665&PageNum=0

16.04.2010, 05.33

BRASILIA, April 16 (Itar-Tass) -- Russian President Dmitry Medvedev said on Thursday the BRIC group uniting Brazil, Russia, India and China has developed into “a full-fledged mechanism both for coordinated effort and concrete decision-making”.

“We shall continue to coordinate our work and I am sure the results we achieved today will be implemented,” Medvedev said after the BRIC summit, which he described as “very interesting and productive”.

“Negotiations confirmed that our relations are developing along all guidelines,” he added.

The president said the leaders discussed economic recovery after the financial crisis and the creation of a more fair and democratic world system.

“The adopted joint statement reflects our common approaches to the problems. We discussed how to counter other global challenges, such as terrorism, organized crime, and drug trafficking,” Medvedev said.

Chinese President Hu Jintao said BRIC leaders have agreed that China will host their next summit.

Russian Vnesheconombank, China Development Bank, Brazilian National Bank of Social and Economic Development, and the Export-Import Bank of India signed a seven-

page memorandum on the sidelines of the summit that envisages the creation of a common interbank system to finance high-tech, innovation and energy saving projects.

The memorandum is the first practical BRIC document that promotes efficient financial provision of trade, economic and investment cooperation of the four countries.

The Memorandum says its aims are “to create mechanisms to promote all-round long-term cooperation between the parties in order to simplify and support trans-border transactions and joint projects, to enhance trade and economic relations among BRIC businessmen, create instruments to provide financial and banking services to investment projects in the sphere of interests of the parties, and consider the possibility of creating a common interbank system to achieve the mentioned aims.”

Russia Today: BRIC countries have an “interesting and productive” dialogue – Medvedevhttp://rt.com/Politics/2010-04-16/medvedev-speaking-bric-summit.html/print

16 April, 2010, 05:49

The largest emerging economies - known as the BRIC - wrap up a series of meetings in Brasilia. Brazil, Russia, India and China put their heads together to figure out how to withstand the aftermath of the global crisis.

Other topics on the agenda of the discussions included global challenges like creation of a more fair and democratic world system, as well as fighting terrorism, organized crime and drug trafficking.

“Our main goal today was bolstering our cooperation in tackling the aftermath of the economic crisis, supporting the international financial institutions and creating a more democratic and fair international system in general,” Medvedev told his BRIC counterparts.

Summing up the summit, Medvedev described it as "very interesting and productive," while Chinese President Hu Jintao said BRIC leaders have agreed that China will host their next summit.

On the sidelines of the summit, Russia’s Vnesheconombank, the China Development Bank, Brazil’s National Bank of Social and Economic Development, and the Export-Import Bank of India signed a memorandum that envisages the creation of a common Interbank System.

Its main aim will be financing high-tech, innovation and energy-saving projects.

RIA: Russia, Brazil discuss Iranian nuclear programhttp://en.rian.ru/russia/20100416/158601909.html

05:3616/04/2010

The Iranian nuclear issue was one of the main topics discussed by the Russian and Brazilian leaders on Friday, the Russian President's press-secretary said.

Russian President Dmitry Medvedev and Brazilian President Luiz Inacio Lula da Silva met in the capital of Brazil on the sidelines of the BRIC (Brazil, Russia, India, China) summit.

"The discussion focused on international issues, including the Iranian nuclear program," Natalia Timakova said.

Western powers suspect that Iran's nuclear program is aimed at making weapons, while Tehran claims it needs enriched uranium for civilian energy purposes.

The United States, France and Britain have called for new harsher economic measures against the Islamic Republic following Iran's move to enrich uranium to 20%. Tehran has so far defied three sets of UN sanctions.

Russia, Brazil and China insist on maintaining dialogue with Iran about its nuclear program and trying to avoid sanctions, although they admit that Tehran "must show some flexibility on the matter."

Russian President Dmitry Medvedev has recently said sanctions against Iran "at a certain point... can become inevitable" as "Iran has still not reacted to constructive compromises it was offered," though he himself "wouldn't like to see sanctions imposed."

Medvedev said possible sanctions against the Islamic republic "should ensure nuclear nonproliferation rather than punish the Iranian nation."

BRASILIA, April 16 (RIA Novosti)

Itar-Tass: Medvedev, Hu discuss major economic projects

http://www.itar-tass.com/eng/level2.html?NewsID=15030604&PageNum=0

16.04.2010, 04.33

BRASILIA, April 16 (Itar-Tass) -- Russian President Dmitry Medvedev and his Chinese counterpart Hu Jintao discussed major economic projects and regional cooperation at their meeting on Thursday on the sidelines of a BRIC summit.

“The leaders discussed enhanced cooperation, including on key international issues. Besides, the talks focused on interaction in BRIC and SCO formats, on the promotion of major economic projects, regional cooperation, intensive humanitarian exchanges and youth contacts,’ Medvedev’s foreign policy aide Sergei Prikhodko told reporters.

He said the meeting was “open, productive and trustworthy”.

Medvedev had to change his schedule to meet Hu who cut short his stay in Brasilia because of a devastating earthquake back home.

“I would like to express sincere condolences in connection with a devastating earthquake in China. Unfortunately, such calamities always result in human casualties and major damage,” Medvedev told Hu and expressed Russian readiness “to provide aid and assistance to China in any form and in any scope.”

Hu thanked Medvedev for changing his schedule in order to meet him and said he was leaving for home shortly.

The leaders of Brazil, Russia, India and China (BRIC) arrived in Brasilia for a two-day summit, however a strong quake in China that killed over 760 people forced Hu to cut short his trip while the summit program was shortened to one day.

Xinhua: Chinese, Russian presidents meet on bilateral relationshttp://news.xinhuanet.com/english2010/china/2010-04/16/c_13253492.htm

2010-04-16 05:10:13

BRASILIA, April 15 (Xinhua) -- Chinese President Hu Jintao met his Russian counterpart Dmitry Medvedev Thursday in Brasilia to discuss bilateral ties and other important issues of common concern.

It was the first meeting between the two leaders since they met on the sidelines of the Economic Leaders' Meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Singapore last November.

Hu and Medvedev were meeting on the sidelines of a summit of BRIC nations, namely Brazil, Russia, India and China.

At the BRIC summit slated for Thursday, leaders of China, Brazil, Russia and India will discuss the global economy and financial situation, reform of the international financial system, climate change and cooperation among the four countries.

In recent years, China and Russia have strengthened their strategic cooperative partnership with enhanced mutual political trust, and fruitful cooperation in all sectors. The countries also have had close interaction and coordination in dealing with international and regional affairs.

Last year witnessed the celebration of the 60th anniversary of diplomatic ties between China and Russia, as well as the hosting of the "Year of Russian language" in China,

which brought about new breakthroughs in the Sino-Russian strategic partnership of cooperation.

Despite some impact on bilateral trade by the global economic crisis, the quality of bilateral economic cooperation between China and Russia has improved, with trade structure optimized and significant progress achieved in energy sector cooperation.

"Relationship with Russia is one of the priorities of China's diplomacy. The two countries have enjoyed mutual support on issues that concern each other's core interests," Chinese Foreign Minister Yang Jiechi said at a press conference on March 7.

Last year, the two countries signed a series of important cooperation agreements covering oil, natural gas, coal, electricity, nuclear energy and high-speed rail, said Yang, adding that the relevant cooperation projects are now well underway.

"We expect the China-Russia oil pipeline project to be completed by the end of this year and the pipeline will enter into operation next year. Moreover, the two countries are also committed to promoting cooperation between China's northeast region and Russia's Far East and eastern Siberia region," the minister said.

Russia Today/Vedomosti: To Argentina, with helicoptershttp://rt.com/Top_News/Press/eng.html

By Natalia Kostenko, Aleksey Nikolsky and Polina Khimshiashvili

The first Russian leader to visit Argentina, Dmitry Medvedev, urged to restore the commodity turnover rate, which had fallen by one-third. So far, however, a contract for only €20 million was signed.

President Dmitry Medvedev met with Argentinian businessmen on Wednesday afternoon, and spent the evening speaking with the President of Argentina, Cristina Fernandez de Kirchner.

During his meeting with the businessmen, he urged the Argentineans to intensify cooperation in order to restore the commodity turnover rate, which had fallen by one-third due to the crisis, as well as to follow Russia’s example of modernizing the economy. According to data from the Ministry of Economic Development, total turnover in 2009 amounted to $1.36 billion (in 2008 it was $2 billion). Russia’s exports fell by one-third to $203.2 million, mainly due to a decreased demand for Russian fertilizer (a 7.2-fold reduction), and a 3.1-fold reduction of petroleum product supplies. The import of wine, milk and medical products also declined. Only meat supplies have increased.

Practically not a single Argentinean proposed any initiatives. They are frightened by Russia’s corruption rate, lack of transparency in the business sector, and an unjust court system, is how one Ministry of Economic Development official explained it to

Vedomosti. Medvedev proposed creating joint enterprises in agricultural and pharmaceutical sectors.

Currently, cooperation in the energy field remains a priority. According to the agreement signed by Rosatom and the Argentinean government, the state-owned corporation will take part in the tender for the construction of a new nuclear power plant. Fifty percent of the equipment must be produced in Argentina, but even that will attract several billion dollars worth of investment, according to Medvedev’s estimates. According to the President of Rosatom, Sergey Kirienko, the construction of a single nuclear power plant power-generating unit is estimated at $4.5 billion.

The only contract that was signed in Medvedev’s presence was for Rosoboronexport’s supply of two Mi-171E helicopters, valued at €20 million, to the Argentinean Ministry of Defense: it is expected they will be used for an Antarctic program. Rosoboronexport had also offered to supply air defense weapons and military equipment. Argentina has not been purchasing equipment from Russia in the past.

Russia aims to regain its influence in South America, which it lost after the collapse of the Soviet Union. And if this makes anyone unhappy, “so be it,” said Medvedev during his visit’s final press conference. The United States should not be threatened by this, he added. “We are nobody’s backyard,” Kirchner said, agreeing with her guest.

U.S. influence in the region has, in theory and in practice, diminished in the last 10-15 years, and more so after the economic crisis of 2001-2002. Argentina’s major investor is Spain, ahead of the United States. Meanwhile, last year China became Brazil’s main trade partner, noted Petr Yakovlev of the Institute of Latin America. But he notes that we should not expect to see a higher supply rate of Russian arms to Argentina; this is not a priority sector for the country.

Itar-Tass: Canadian foreign minister to visit Moscow April 18-19 – FM

http://www.itar-tass.com/eng/level2.html?NewsID=15028578&PageNum=0

15.04.2010, 15.27

MOSCOW, April 15 (Itar-Tass) - Canadian Foreign Minister Lawrence Cannon will make a working visit to Moscow on April 18-19, Foreign Ministry spokesman Andrei Nesterenko said on Thursday.

“The Canadian foreign minister is expected to have talks with his Russian colleague Sergei Lavrov. The ministers will exchange views on key international, regional and bilateral issues. The visit is designed to facilitate further strengthening of a political dialogue between the two countries and practical promotion of mutually beneficial cooperation,” the Russian diplomat stressed.

According to Nesterenko, Russia considers Canada “one of the important partners at the international arena”. “The level of contacts between the two countries increases permanently. The political dialogue between the two countries is regular and confident. The common position on key problems creates a firm base for this,” he added.

“Russia and Canada favour the democratic and multi-polar world order in compliance with the norms of international law and the interests of peoples of the two countries,” Nesterenko emphasised. “We share the need to strengthen the U.N. authority as a universal mechanism to ensure peace and strategic stability,” the spokesman said.

MID.ru: Russian MFA Spokesman Andrei Nesterenko Interview to RIA Novosti on the Upcoming Visit to Moscow by Lawrence Cannon, Minister of Foreign Affairs of Canadahttp://www.ln.mid.ru/brp_4.nsf/e78a48070f128a7b43256999005bcbb3/d42b8f5747aa3be1c325770700217605?OpenDocument

487-15-04-2010

Question: Canadian Foreign Minister Lawrence Cannon will pay a working visit to the Russian Federation on April 18-19. How in this regard do you assess the state of Russian-Canadian relations at this stage?

Answer: Russia regards Canada as an important partner in the international arena. The level of contacts between the two countries has steadily increased. Bilateral political dialogue, including by top leaders, senior officials and ministers, has been regular and confidential. A firm foundation for this is the similarity or identity of our states’ positions on most key issues of our time, which enables working closely on ways to address them within the UN and other international organizations. Russia and Canada are in favor of creating a democratic multipolar world based on the principles of international law, respect for sovereignty and consideration of the legitimate interests of all countries, and share a belief in the need to strengthen the authority of the UN as a universal mechanism for preserving peace and strategic stability.

Evidence of increased contacts between the two countries in international forums was the meeting of Russian President Dmitry Medvedev and Canadian Prime Minister Stephen Harper on the sidelines of the APEC summit held in Singapore on November 15, 2009.

Russia and Canada have significant opportunities for comprehensive expansion of bilateral cooperation, especially in view of the positive stable dynamics of the growth of trade, economic, scientific and technological ties in recent years.

Question: During his stay in Moscow, Cannon is scheduled to have talks with Russian Foreign Minister Sergey Lavrov. What issues will they discuss?

Answer: At the talks the parties will touch on a number of issues relating to the further deepening of bilateral relations, including the improvement of visa practices and international adoptions. In addition, they plan to discuss current issues of cooperation in the Arctic and the North. Well-coordinated joint action in this area is among the most important aspects of bilateral relations between our states: Russia and Canada intend to reaffirm their priorities in this area, as well as the need for closer cooperation and coordination of further actions of the two countries.

Considerable attention at the talks will be given to current international problems. The parties will consider several questions pertaining to nonproliferation and disarmament: the signing of the new START Treaty, the Global Partnership program, and the outcome of the Nuclear Security Summit in Washington on April 12-13. In addition, they will discuss regional aspects of nonproliferation – the situation around Iran and the Korean Peninsula.

Questions of international and regional security, and the maintenance of peace and stability, will also be a central theme of discussion. There will be discussed, in particular, the prospects of bilateral cooperation within the framework of the NATO-Russia Council in the context of forming common approaches in this sector.

Middle East conflict settlement and the problems associated with post-conflict reconstruction in Afghanistan will also be discussed. Russia and Canada are interested in resolving territorial and regional conflicts in the world today and in enhancing g the overall level of security and law and order. Besides, the ministers will exchange views on the situation in the Caucasus, including Nagorno-Karabakh conflict settlement.

Preparing for meetings of leaders of the Group of Eight and the Group of Twenty will also be one of the main themes of the talks. Canada in 2010 presides over the G8 and will host a summit of this international forum on June 25-27. In anticipation of this event, the parties consider it essential to hold a substantive dialogue on the issues on its agenda.

The visit to Moscow by Canadian Foreign Minister Lawrence Cannon and his talks with Sergey Lavrov will be an important milestone in the development of relations between the two countries. They will make it possible to exchange views on topical issues for both countries, of a bilateral, regional and international character. Cooperation between the two countries in these areas is essential both for Russia and Canada and for the world community.

April 15, 2010

Medvedev expected to visit Kiev April 21 for talks with Yanukovychhttp://www.ukrainianjournal.com/index.php?w=article&id=10265

Journal Staff Report

KIEV, April 15 - Russian President Dmitry Medvedev may pay a visit to Ukraine on April 21 for talks with Ukrainian counterpart Viktor Yanukovych, a source at the Yanukovych administration said Thursday.

This will be the fourth meeting between the two leaders since March 5 as Ukraine has been seeking to persuade Russia to lower natural gas prices. Medvedev is also scheduled to visit Kiev on May 17.

Itar-Tass: Medvedev to visit Ukraine next week to meet with Yanukovich

http://www.itar-tass.com/eng/level2.html?NewsID=15030925&PageNum=0

16.04.2010, 08.22

BRASILIA, April 16 (Itar-Tass) -- Russian President Dmitry Medvedev plans to visit Ukraine next week to meet with President Viktor Yanukovich.

"We plan to hold an unscheduled meeting with Viktor Yanukovich in Ukraine's territory next week," the Russian leader told reporters.

A visit by the Russian president to Ukraine is planned for May.

"We will continue the discussion of all the issues, including security, economic relations and humanitarian issues, and we will do it not only in May during the visit, but also earlier," he added.

April 16, 2010 11:44

Interfax: Russia ready to discuss possible cut in gas prices for Ukraine – Medvedevhttp://www.interfax.com/newsinf.asp?id=159059

BRASILIA. April 16 (Interfax) - Russia is ready to discuss the possibility of reducing the price of natural gas it sells to Ukraine, Russian President Dmitry Medvedev said in Brazil, where he attended the second official BRIC summit (Brazil, Russia, India and China) on Friday.

"This topic has not been closed. Discussions continue. We are ready for them," Medvedev said.

"We have managed to sort out the gas issue," the Russian president said.

"Another thing is that our Ukrainian partners believe is that, given the current economic situation in Ukraine, the existing gas prices are too heavy a burden for the country. But we are open to discussions on this issue," he said.

Russia and Ukraine are discussing other issues today, Medvedev said.

"I hope that we will continue discussing all issues, including security, ways to promote trade and business relations, as well as humanitarian affairs," he said.

tm mj

GOOGLE TRANSLATIONLenta.ru: Medvedev's first visit to Ukraine will take for gas talks

http://www.lenta.ru/news/2010/04/16/gas/

The first visit of Russian President Dmitry Medvedev on Ukraine could be held on April 21, although so far only planned for 17-18 May. The newspaper Kommersant says that the rush caused by the desire to Kiev to get a discount on Russian gas, which will allow the country laid out the budget in accordance with the requirements of the IMF. Meeting Dmitry Medvedev and his Ukrainian counterpart Viktor Yanukovych is likely to be held in Kharkiv. Ukraine, recall, asks Russia discount on gas for the whole year of $ 4 billion. The fact that the IMF demands that Ukraine laid out a budget deficit of 6 percent of GDP, but at current prices for gas to Naftogaz of Ukraine "will require subsidies and the budget deficit will be twice as much. Reduce the deficit Kiev necessary to get the next tranche of credit from the IMF. The

Fund should be reminded that reserved for Ukraine 16.5 billion dollars of which 10.5 billion already provided. However, the remaining amount of the IMF to provide does not agree. The next meeting of the Ukrainian authorities and the IMF to be held April 24-25, immediately after the alleged visit of Dmitry Medvedev. Ukraine has already submitted a package of Russian proposals, which is believed to Kiev, Moscow interested. Kommersant claims that Gazprom's offer to rent underground gas storage facilities in the west. Control of storage ensures the Russian concern gas supplies to Europe, providing a reserve for the winter. In addition, Ukraine promises to restore Russia's Kremenchug refinery. Prior to 2007, he oversaw the Russian "Tatneft", but then moved to the Ukrainian group "Privat". Refineries back to the state, and then based on it will be a joint venture with Gazprom Neft. Now the price of Russian gas for Ukraine is formed based on the formula established in the course of negotiations in January 2009 between the Russian Prime Minister Vladimir Putin and former Prime Minister Yulia Tymoshenko. In the second quarter of 2010 the price of Russian gas to Ukraine increased by 25 dollars to 330 dollars per thousand cubic meters. The new government expects to receive preferential prices for gas in the amount of 200-230 dollars per thousand cubic meters Earlier, Vice-Premier Sergei Tigipko said that the Ukrainian budget for 2010 will form the basis of current prices for Russian gas.

Abc.az: Azerbaijan and Russia added issue of water use to border delimitation matterhttp://abc.az/eng/news/main/44226.html

Baku, Fineko/abc.az. The main phase of a regular session of the Azerbaijani-Russian Intergovernmental Commission on State Border Delimitation & Demarcation is to be held in Baku today.

The Commission is to cover two matters – border delimitation on which the sides are going to coordinate another 5% of its length and the issue of the order of water use from the trans-border river Samur.

Deputy foreign minister Khalaf Khalafov says that a relevant intergovernmental agreement has been drafted and further talks on its coordination are underway.

Actmedia: Ukrainian press: If Romania gets Maikan Island, Russia will raise territorial demands from Ukraine http://www.actmedia.eu/2010/04/16/top+story/ukrainian+press:+if+romania+gets+maikan+island,+russia+will+raise+territorial+demands+from+ukraine+/26834

Date: 16-04-2010"We will not give our island to Romania", "Ukraine will not surrender our island to Romania", "Romania claims an Ukrainian island", "Romania raises again territorial demands on Ukraine" - only a few of the titles featured in Russian by the Ukrainian press, after deputy Ghenadi Zadirko accused Bucharest for addressing territorial demands, "targeting a small, uninhabited island, Maikan, measuring 1,500 over 800 meters, located between Chilia and Vilkovo.

"Ukraine may lose the unpopulated island on [river] Danube. Romania claims this land and the navigable neighbouring channel. If Romania is successful, this will make other regional states raise territorial aspiration on Ukraine as well. Especially when it comes to Russia", Vzgliad reads.

At the same time, Ukraine's business attaché at the UN International Court, namely ambassador Vladimir Vasilenko, believes that "for the moment, there is no reason to adjust the state border line between Ukraine and Romania".

The diplomat opinionated that this was not about territorial requests, but about an issue that surfaced following the change in the Danube's navigable sailing line. "There is a clear change in the current sailing line and, consequently, the position of some banks and islands on the navigable channel are changed", Vasilenko explained.

According to him, the issue of who owns the Maikan Island was settled by the bi-lateral agreement signed by Ukraine and Romania in 2003, which addressed the state borders regime.

"The 2003 document stipulates, among others, that in the case of hydro-geographic modifications, both parties must take measures top restore the previous situation. This is not about Ukraine's territorial requests from Romania and vice-versa, Romania's demand from Ukraine. It's about solving the situation created around this island that resulted from natural alterations. In our view, the Ukrainian view, hydro-geographical changes do not have a cardinal character. An issue regarding the ownership of the island or affecting the border line cannot be raised at the moment", Vasilenko stressed. Romanian Foreign Affairs minister' reactionCompletely unjustified statements - this is how the Romanian Foreign Affairs minister Teodor Baconschi characterised the information quoted by the Ukrainian press reading that Romania has territorial demands on the Maikan island. The 2003 Treaty clearly stipulates the principles according to which the common Danube border is drawn and allows the alteration of the ownership for some islands, should measurements indicate it, without this meaning that Romania has got territorial demands over Ukraine.

The border with Ukraine has not been updated since 1973. Currently, the Romanian-Ukrainian joint Commission is handling the issue and studies nine border documents. The Romanian representatives in the Commission are Interior Ministry, Border Police, Foreign Affairs, Transport Ministry, Environment Ministry and National Cadastre Agency staff.

"Drawing the border line must be done according to the current to the navigable sailing line, the way in which it results after the measurements and checks. The ownership of the island is established from case to case, according to their position with the sailing line. Modifying their ownership is allowed specifically by the Treaty with Ukraine. Under no circumstances can we link these issues with the Romanian party's territorial demands. The 2003 treaty sees in the first article that putting together new border documents does not represent a border revise between Romania and Ukraine", minister Teodor Baconschi said.

The minister could not say if the current sailing now can justify Romania's ownership of the Maikan Island. He argues that experts are carrying out studies and a conclusion will be drawn according to them and the situation on the ground, according to the two principles formulated by the border Treaty.

KYRGYZSTAN

Itar-Tass: Russia to cooperate only with legitimate Kyrgyz govt – pres

http://www.itar-tass.com/eng/level2.html?NewsID=15031302&PageNum=0

16.04.2010, 10.40

BRASILIA, April 16 (Itar-Tass) -- Russia is ready to provide humanitarian aid to Kyrgyzstan, but to carry out major projects only with a legitimate government that will be able to cope with them, Russian President Dmitry Medvedev noted.

"We are ready to provide humanitarian aid, but we will implement major interstate projects only if we realise that the new legitimate government is ready to cope with them," the president said.

The collapse of the political regime in Kyrgyzstan is linked with the failure to solve social and economic issues and with the fact that the system of government was formed like the previous one based on clanism, nepotism and business sharing, the system not engaged very much in settlement of other problems, Medvedev believes. It is desirable that Kyrgyzstan's new power when it is legitimately formed will be free from the negative trends, he noted.

The situation settlement has become possible with the mediation of a number of countries, the Russian leader said. "I was in talks with Kazakh President Nursultan Nazarbayev and we discussed it together with Barack Obama with common interests taken into consideration," he said. "It was done not because we want to interfere, but bloodshed must have been prevented," he believes.

It could have ended in a full-scale civil war and a split of the state in parts. "I hope it was prevented as Bakiyev handed in his resignation," he added.

Medvedev noted the situation in Kyrgyzstan completely repeated what happened in the republic a few years ago.

"Bakiyev failed to solve problems facing the country," he said.

The Russian president believes no state is fully secured against such a situation. If people are displeased with the power and if authorities make no efforts to solve people's problems, the scenario is possible wherever, he noted.

Very much in the current situation will depend on Kyrgyzstan's new power. The current leaders have yet to agree with each other and they are expected to have enough courage and authority for it, as the fate of the state is in their hands, Medvedev noted.

April 16, 2010 09:49

Interfax: Police surround house where Bakiyev brother reportedly ishttp://www.interfax.com/newsinf.asp?id=159015

JALAL-ABAD. April 16 (Interfax) - Police have surrounded a house in the village of Teyit near Jalal-Abad in southern Kyrgyzstan, where ex-President Kurmanbek Bakiyev's brother Zhanybek, the former head of the presidential body guard service, can be now.

Kyrgyzstan's interim government accused Zhanybek Bakiyev of multiple murders and of issuing the order to open fire at demonstrators in the center of Bishkek on April 7.

Women have gathered in the courtyard of the Bakiyev house, preventing police from entering the house, an Interfax correspondent has reported.

Talks are underway on Zhanybek Bakiyev and former armed presidential body guards' surrender, sources in Kyrgyz law enforcement services reported.

sd

Itar-Tass: New Kyrgyz govt gets Bakiyev’s resignation letter

http://www.itar-tass.com/eng/level2.html?NewsID=15030938

16.04.2010, 08.52

BISHKEK, April 16 (Itar-Tass) - Kyrgyzstan’s new government has received a fax letter from Kurmanbek Bakiyev in which he offers his resignation as the head of state, a source in the republic’s leadership told Itar-Tass.

“It is said in the message that Bakiyev, recognising his responsibility before the people and with the aim of preserving the state’ s unity, in accordance with the related clause of the constitution, surrenders office,” the source noted. According to him, the now ex-president had signed the resignation letter on Thursday evening, and it was received by fax by the new government’s headquarters on the night to Friday.

Bakiyev together with his family members left Kyrgyzstan at 19:00, local time (17:00 MSK) on Thursday. In a small plane he flew from the airport of the regional centre Jalal-Abad to the Kazakhstani city of Taraz. Sources in the new government told Itar-Tass that all the brothers and close associates of the ex-president of Kyrgyzstan have stayed in the republic. Former Defence Minister Bakytbek Kalyev has already been arrested. He will be taken to Bishkek shortly. Besides, the president’s brother Zhanybek Bakiyev, ex-Prime Minister Daniyar Usenov, head of the State National Security Service Murat Sutalinov and the president’s senior son Marat Bakiyev who worked in the Security Service, have been put on the wanted list for the organisation of firing at protest rally participants.

Kyrgzystan’s ousted President Kurmanbek Bakiyev has left the territory of the country as a result of efforts of the Presidents of Kazakhstan, Russia, the United States and mediatory efforts on the part of the Organisation for Security and Cooperation in Europe, the UN, and the European Union, the OSCE’s Chairman-in-Office, Kanat Saudabayev said in a special statement released Thursday night in the Kyrgyzstan capital Bishkek.

“April 15, an agreement was reached with the interim government of Kyrgyzstan and President Kurmanbek Bakiyev through the assistance of Kazakhstani President Nursultan Nazarbayev, US President Barack Obama, and Russian President Dmitry Medvedev on Bakiyev’s departure from the country,” the statement said. The document especially stressed the importance of Bakiyev’s leaving the territory of Kyrgyzstan for the efforts to bring the situation here back to normal - to restore public order and the supremacy of law.

Along with this, Saudabayev urged all the political forces in Kyrgyzstan to spearhead their efforts at maintaining stability and resolving the acutest and most pressing social and economic problems.

During a nuclear summit in Washington Russian President Dmitry Medvedev suggested Kyrgyzstan was in the throes of a civil war and that it could turn into a “second Afghanistan” if the political deadlock was not resolved. He said that “The risk of Kyrgyzstan breaking apart - into the south and the north - really exists.” On April 14, 2010, interim leader Roza Otunbayeva announced that President Bakiyev, his defence minister, as well as relatives in government and political allies would face trial over the deaths of protesters. A Kyrgyz court issued an arrest warrant for Bakiyev’s brother, eldest son and former Prime Minister Daniyar Usenov. On April 15 at a rally by Bakiyev in

front of a 1,000 supporters gunshots were heard, although Bakiyev was reported to have safely left the scene. Some claimed that the firing came from his own bodyguards in order to keep the peace and avoid a confrontation with opponents. Later in the day later Bakiyev was reported to have flown into exile to the Kazakhstani city of Taraz. It was said that he would continue negotiations on a settlement to the crisis from exile. The interim government responded to this by calling his departure a “deportation,” saying he had allegedly submitted a request to resign amid reports indicating that Baktybek Kaliyev, a former defence minister, had been arrested. The interim government also said it would seek Bakiyev’s transfer to a Kyrgyz or international court for trial at a later date. Kazakhstan, as the chair of the Organisation for Security and Cooperation in Europe, confirmed Bakiyev’s departure saying it was an important step towards preventing civil war. It added that joint efforts between themselves and Dmitry Medvedev and Barack Obama had fostered such an agreement.

Various states in the region and beyond expressed concern and called for stability in the country. International bodies like the UN, EU and the OSCE also made similar calls.

RIA: Kyrgyz scenario may repeat in other states – Medvedevhttp://en.rian.ru/russia/20100416/158603097.html

07:4616/04/2010

Russian President Dmitry Medvedev said on Friday he did not rule out the repetition of the Kyrgyz scenario in other former Soviet republics if their leaders conduct policies similar to ousted Kyrgyz president.

"In relation to the possibility of similar scenarios in ex-Soviet states or other countries - everything is possible in this world, if people are not happy with the authorities, if the authorities do not make efforts to support their people," Medvedev said at a news conference after a BRIC summit in Brazil.

"This scenario could repeat anywhere when the authorities lose their link with people," he said.

BRASILIA, April 16 (RIA Novosti)

RIA: President Medvedev hopes 'negative scenario' in Kyrgyzstan avertedhttp://en.rian.ru/world/20100416/158604224.html

09:0716/04/2010

Russian President Dmitry Medvedev expressed hope on Friday that negative political developments in Kyrgyzstan have been averted.

"I hope this scenario has been ruled out especially after the former president submitted his resignation," Medvedev said, adding that the threat of a civil war in Kyrgyzstan had been real.

An official in the interim government told RIA Novosti on Friday that President Kurmanbek Bakiyev had faxed his resignation from Kazakhstan.

At least 80 people were killed and more than 1,500 injured during violent opposition protests, which broke out in Kyrgyzstan on April 7. Bakiyev fled the capital and an interim government was formed under the leadership of Roza Otunbayeva.

Bakiyev initially refused to resign and started gathering his supporters in southern Kyrgyzstan, but on Thursday he flew to Kazakhstan, from where the two-page resignation letter was faxed on Friday morning.

Medvedev said Russia, the United States, Kazakhstan and the Organization for Security and Cooperation in Europe had worked together to mediate Bakiyev's departure.

"Our only goal was to avoid bloodshed. Unfortunately, the situation was escalating toward a full-scale civil war, and, consequently, toward the disintegration of the country," the president said.

Medvedev also said he did not rule out a repeat of the Kyrgyz scenario in other former Soviet republics if their leaders conduct policies similar to those of the ousted Kyrgyz president.

"In relation to the possibility of similar scenarios in ex-Soviet states or other countries - everything is possible in this world, if people are not happy with the authorities, if the authorities do not make efforts to support their people," Medvedev said at a news conference after a BRIC summit in Brazil.

"This scenario could repeat anywhere when the authorities lose their connection with the people," he said.

Several members of Bakiyev's family have been accused of corruption and taking millions of dollars out of state coffers.

BRASILIA, April 16 (RIA Novosti)

Reuters: UPDATE 1-Russia's Medvedev sees end to Kyrgyzstan turmoilhttp://www.reuters.com/article/idUSN1516454820100416?type=marketsNews

Thu, Apr 15 2010

(Adds quotes, background)

BRASILIA, April 15 (Reuters) - Russian President Dmitry Medvedev said late on Thursday he believed the "negative scenario" in the central Asian nation of Kyrgyzstan had been avoided through the efforts of "all the stakeholders."

"I do hope that the negative scenario was avoided," Medvedev told reporters in the Brazilian capital of Brasilia at the end of a summit of major emerging market nations, adding that political stability there was still at risk, .

He said Russia, the United States and Kazakhstan were doing their best to "suspend the negative developments" there.

Medvedev also said he would discuss the possibility of cutting Russian gas prices to Ukraine in a meeting with that country's prime minister next week.

"Our gas prices are hard for Ukraine ... but the subject (of a possible decrease in prices) is still being discussed, the subject is still open." (Reporting by Denis Dyomkin; Writing by Todd Benson; editing by Eric Walsh and Todd Eastham)

RUVR: Medvedev cautions CIS countries against pursuing Bakiyev’s policyhttp://english.ruvr.ru/2010/04/16/6496460.html

Apr 16, 2010 09:53 Moscow TimeDmitry Medvedev does not rule out that other CIS countries may also come to follow the Kyrgyz scenario, should they embark on the kind of policy that was pursued by the ousted President Kurmanbek Bakiyev. The Russian leader told reporters in the wake of the BRIC summit in Brazil that Kyrgyzstan’s new authorities should be free from their predecessors’ shortcomings, namely cronyism, nepotism, business sharing. But he also said that Russia was prepared to help Kyrgyzstan out. Yesterday Bakiyev stepped down as president of the republic and left for Kazakhstan by air.  

POLISH PLANE CRASH

Reuters: Volcanic ash may force delay in Polish funeralhttp://www.reuters.com/article/idUSTRE63F17J20100416

3:40am EDT

WARSAW (Reuters) - A huge ash cloud from an Icelandic volcano that has caused the closure of airports across northern Europe may force a delay in Sunday's funeral for

Poland's President Lech Kaczynski and his wife, an official in the presidential administration said on Friday. U.S. President Barack Obama and dozens of other world leaders are due to attend the funeral at Krakow's Wawel cathedral in southern Poland. On Friday Krakow airport was one of only two in Poland still open.

"If this (volcanic ash) could affect events and if some participants are not able to arrive, then such an option (delay) could be considered," Jacek Sasin, an official in the president's chancellery, told RMF FM radio.

Kaczynski, his wife and scores of senior Polish officials were killed in a plane crash last Saturday, plunging Poland into deep mourning.

The White House said late on Thursday Obama's weekend trip to Poland was expected to go ahead despite the ash, but U.S. authorities were keeping an eye on things.

"It's something that we are keeping an eye on. Right now, our schedule is still on. We have every intention of making it to Poland," Deputy White House Press Secretary Bill Burton told reporters.

He said he had spoken to U.S. Air Force officials, adding: "They felt confident that they'll be able to make that trip, but it's something we're watching and obviously cognizant of."

The volcanic ash cloud has caused huge disruption of air traffic across Europe, leaving hundreds of thousands of passengers stranded. It was not known how long the affected airports, including Warsaw, might have to remain closed.

Volcanic ash contains tiny particles of glass and pulverized rock that can damage engines and airframes.

Polish authorities had intended to fly the coffins of the First Couple to Krakow on Saturday afternoon after a planned memorial service in Warsaw. They are currently on public view in the presidential palace.

Apart from Obama, Russia's President Dmitry Medvedev, French President Nicolas Sarkozy, German Chancellor Angela Merkel, Britain's Prince Charles, Spain's King Juan Carlos and many other heads of state and government and royalty were due to attend the funeral.

(Reporting by Chris Borowski, writing by Gareth Jones; Editing by Elizabeth Fullerton)

Thenews.pl: Pilot was not under pressure to land, says investigator

http://www.thenews.pl/national/artykul129661_pilot-was-not-under-pressure-to-land--says-investigator.html

16.04.2010 07:47

A member of the Russian investigation team has said that there is no evidence that any of the passengers of the doomed plane that crashed last Saturday killing all 96 on board forced the pilot to land at Smolensk airport.

The Russian Interfax news agency quotes an unnamed official from the investigative team as saying: “Until now we can find no evidence that a high ranking politician on board the Tupolev plane asked to land at the airport.”

“Analysis of records of conversations of the crew has not shown that they had been under any pressure," the investigator added.

In was speculated in the aftermath of the plane crash last weekend that the pilot of the plane taking President Kaczynski and others to a WW II Katyn massacre anniversary ceremony had come under pressure from someone on board to land in Smolensk, despite atrocious weather conditions.

Yesterday the Russian Kommersant daily reported another investigator as saying that the TU-154 made an attempt to land in, not just bad but, “extreme” weather conditions.

“The risk of a crash in such weather conditions was extremely high. The pilot must have known about it but for an unknown reason and contrary to flying instructions and common sense, decided to attempt to land,” the newspaper quotes an anonymous Russian expert from the investigative commission.

 

Thick fog

According to Kommersant, Smolensk was covered with very thick fog, rising 30 metres above ground, which limited visibility to 200 to 400 metres. A plane travelling at 150 to 180 metres per second normally covers such a distance in just a few seconds, which means that the crew descended into the unknown as they approached the airport.

The newspaper claims that the pilots were not able to use an on-board navigation system, which displays flight trajectory, because the military airport in Smolensk is not equipped with the Instrument Landing System (ILS). Instead, it has a rather primitive OSP system, which shows only landmarks that a plane went past.

However, in order to use the OSP system 1,800-metre visibility is required and fog must not rise less than 120 metres above the ground.

Kommersant writes that the air control centre warned the Polish pilots and suggested diverting the plane to Minsk or Moscow but the chief pilot insisted on taking a final decision at a critical point, which for a Tu-154 is 100 metres above the ground.

“We are all guilty of this tragedy, we cannot only blame the pilots,” employees of the airport in Smolensk told the newspaper and adds that because of the bad weather conditions they should have closed the airport but were too afraid of sparking another Russian-Polish diplomatic incident.

President Kaczynski and the other dignitaries who died on board were travelling to 70th anniversary commemorations ceremony of the Katyn massacre, when over 20,000 Poles died at the hands of Stalin’s NKVD. (pg/mg)

RIA: Kaczynski's plane hit trees far from runway – IAChttp://en.rian.ru/world/20100416/158602319.html

06:4316/04/2010

The Polish president's plane, which crashed while trying to land in western Russia, hit the line of trees about a kilometer away from the beginning of the runway, the Interstate Aviation Committee (IAC) said on Friday.

A Soviet-made Tu-154 aircraft crashed last Saturday when it attempted to land at Smolensk airport in thick fog, killing President Lech Kaczynski, his wife and other 95 people on board.

"We have established that the plane had a first contact with trees about 1,050 meters from the runway and about 40-45 meters to the left of the final approach line," the IAC reported the latest results of the current investigation into the crash.

"The plane hit another tree with its left wing after 200 meters and rolled sharply to the left," the report said.

"Most of the fragments of the plane are scattered around an area about 350-500 meters away and 150 meters to the left of the runway," it said.

The IAC earlier said that the plane made only one attempt to land, denying media reports that it tried to approach the runway three or four times.

Russian investigators, experts and Polish specialists are jointly investigating the causes of the deadly crash. Polish military prosecutors, however, have opened their own investigation into the accident.

According to IAC, experts will have a rough transcription of onboard voice recordings in about a week, although the work on the least audible parts of the final conversations between the crew members could take longer.

MOSCOW, April 16 (RIA Novosti)

RIA: Russian cruiser passes Suez Canal on mission in Indian Oceanhttp://en.rian.ru/mlitary_news/20100416/158600988.html

02:3216/04/2010

The Moskva missile cruiser has passed through the Suez Canal and entered the Indian Ocean to join other Russian warships for large-scale naval exercises, a Defense Ministry spokesman said.

The flagship of the Black Sea Fleet, which has a compliment of naval infantry on board, left the Black Sea port of Sevastopol on April 9.

"The weapons and technical equipment on the ship are functioning properly and the crew is healthy," the spokesman said.

The Moskva is a Slava-class missile cruiser designed as a surface strike ship with some anti-aircraft and ASW capability.

Meanwhile, the Pyotr Veliky nuclear-powered missile cruiser from Russia's Northern Fleet has recently arrived in Syria's Mediterranean port of Tartus ahead of Russian Navy drills in the Indian Ocean.

Russia announced in 2007 that it was building up its naval presence in the world's oceans. Once one the world's most powerful navies, Russia now has few ships regularly deployed.

A Russian Pacific Fleet task force, comprising an Udaloy class missile destroyer, Marshal Shaposhnikov, a salvage tug and a tanker, is currently on an anti-piracy mission off the Somali coast.

MOSCOW, April 16 (RIA Novosti)

RIA: Russian warship escorts another convoy in Gulf of Adenhttp://en.rian.ru/mlitary_news/20100416/158600676.html

01:2916/04/2010

The Russian Udaloy class missile destroyer Marshal Shaposhnikov is escorting four civilian vessels off the coast of Somalia, a Russian Navy spokesman said.

A Russian Pacific Fleet task force comprising the Marshal Shaposhnikov, the MB-37 salvage tug and the Pechenga tanker arrived in the Gulf of Aden on March 29 to join the anti-piracy mission in the region.

The destroyer, which has two naval helicopters and a unit of naval infantry on board, has already escorted two commercial convoys comprising a total of 27 ships in pirate-infested waters off the Somali coast.

Russia joined international anti-piracy efforts in the region in October 2008. The Russian Navy has maintained a near-permanent presence off the Horn of Africa since then, with warships operating on a rotation basis.

The current task force is the fourth group of warships from the Russian Pacific Fleet engaged in the anti-piracy mission off Somalia, with the previous three task forces led by the Admiral Vinogradov, the Admiral Panteleyev and the Admiral Tributs destroyers. The Northern and Baltic fleets have also sent their warships to the region.

According to official data, Somali pirates carried out 217 attacks on commercial ships in 2009, hijacking 47 vessels and taking 867 crew members as hostages. They hijacked at least 12 ships since the beginning of 2010.

MOSCOW, April 16 (RIA Novosti)

BNS: Russia puts off launch of its new nuke attack subhttp://www.brahmand.com/news/Russia-puts-off-launch-of-its-new-nuke-attack-sub/3654/3/11.html

Last Updated: Apr 16, 2010

MOSCOW (BNS): Russia has delayed the launch of its new Graney class nuclear attack submarine, Severodvinsk, citing technical reasons.

The multi-purpose nuclear attack submarine, the first of Project 885 Yasen (Graney) class attack sub, was earlier scheduled to be floated out on May 7, 2010.

“The launch of the new Severodvinsk submarine has been delayed for technical reasons,” a source at the Sevmash shipyard which is constructing the ship, told RIA Novosti.

The vessel will be floated out for sea trials later this year, the source said. It is expected to enter service with the Russian Navy by late 2010 or early 2011.

The Graney-class nuclear attack submarines are based on the Russian Akula-class and Alfa-class submarines. Russia is presently constructing two such subs – Severodvinsk and Kazan – to replace the Soviet-era Akula class and Oscar class subs.

The new submarines combine the ability to launch a variety of long-range cruise missiles (up to 5,000 km) with nuclear warheads, and effectively engage submarines, surface warships and surface targets.

Each vessel’s armament consists of 24 cruise missiles that include the 3M51 Alfa SLCM, the SS-NX-26 Oniks SLCM or SS-N-21 Granat/Sampson SLCM, and also anti-ship missiles such as the SS-N-16 Stallion.

The vessel has eight torpedo launchers and has a water displacement capacity of 5,800-7,700-9,500 tonne in surfaced condition and 8,200-13,800 tonne in submerged condition.

Aviation Week: First India MRO For Russian Aircraft Openshttp://www.aviationweek.com/aw/generic/story_channel.jsp?channel=mro&id=news/awx/2010/04/14/awx_04_14_2010_p0-219451.xml&headline=First%20India%20MRO%20For%20Russian%20Aircraft%20Opens

Apr 14, 2010

 By Neelam Mathews mathews.neelam@gmail.comNEW DELHI

Rosoboronservice India Ltd. (ROS(I), a joint venture between Rosoboronexport of Russia and India’s Krasny Marine Services, has launched the first Aviation Division in Goa for Kamovs, Tupolevs and Ilyushin aircraft in the Indian navy inventory.

The $25 million center is expected to drastically reduce the turnaround time for aircraft that head to Russia for repairs and have often had to crimp operations as a result.

Until recently, the military — captive users of Russian equipment — have had to send aircraft equipment and engines to Russia for servicing, causing delays and operational gaps. Transportation of the equipment has added costs too.

Russian spares have also known to be poorly tabulated. Now, a warehouse stocked with spares has made the system more efficient, according to V.G. Jayaprakashan, managing director of ROS(I).

With 17 staff including engineers, the center has a large number of diagnostics. The Russian-produced Sea Dragon System, operational on the Indian navy Il-38 — used for anti-submarine warfare, with electro-optical sensors, electronically scanned radar and electronic support measures — will arrive later this year, Jayaprakashan says.

While the Indian navy has ordered eight Boeing P8-I aircraft to replace its aging fleet of eight Tupolev Tu-42s, as well as the remaining two IL-38 aircraft, the earliest delivery will be in 2013.

The aviation center will prove to be a big benefit as the navy can have maintenance on hand, one naval officer says.

Since its creation five years ago, ROS(I) has been a primary service provider to the Indian navy. The company provides services and spares for Russian-designed surface ships, submarines, missile systems and aircraft for the Indian navy, including the Kamov Ka-31 and Ilyushin Il-38.

Its services include supply of original equipment manufacturer (OEM) spares, assemblies and replacement equipment, repairs per OEM specifications, maintenance and testing of equipment, and training. 

Jayaprakashan said that in order to overcome bottlenecks in the procurement of spares, at the urging of Russia the Indian government has given proprietary article certificates (PAC) to Rosoboronservice for the products of its founding members like the Baltitsky Zavod yard, Kamov and Ilyushin.

The Russian decree that permits Rosoboronservice India to be the sole provider will go a long way toward alleviating delays. “Procedures have been streamlined and simplified and the navy has already noticed the difference,” Jayaprakashan says.

Indian Express: Commodore's links with Russian woman established: Navy probehttp://www.indianexpress.com/news/commodores-links-with-russian-woman-established-navy-probe/607305/

Posted: Friday , Apr 16, 2010 at 1135 hrs New Delhi:

Defence Minister A K Antony on Friday said a Navy inquiry has established a senior officer's connections with a Russian woman, but it was yet to be probed whether the link had influenced the price hike of the Admiral Gorshkov aircraft carrier.

The officer, Commodore Sukhjinder Singh, was in charge of the Gorshkov refit project in Russia between 2005 and 2007, and was part of the cost negotiation committee that firmed up a revised price of USD 2.33 billion for the Kiev class aircraft carrier's refit at a Russian shipyard.

"Navy has completed one part of its investigations and they have just started the second part of the investigations. The particular man (Com Singh) had some relations with the other side...a lady. That part has been established. Nothing beyond that is proved so far. Let the Navy complete the investigation," Antony told reporters.

"The Navy is taking special care to speed up the investigation (into Com Singh's liaison) As soon as the investigation is complete, we will take a decision. I do not want to jump to conclusions (before the probe is over)," he said after addressing the inaugural session of the two-day armed forces' Unified Commanders Conference here.

Antony said he had asked the Navy to speed up the investigation "as quickly as possible".

"They (Navy) are at it. Prematurely I do not want to jump to conclusions. Let them complete it (the probe)," he said.

The Navy had yesterday submitted its Board of Inquiry report into the episode that began with it receiving a set of

Moscow Times: Russia's New Place in NATO http://www.themoscowtimes.com/opinion/article/russias-new-place-in-nato/404042.html

16 April 2010By Dmitry Trenin

At the annual security conference in Munich in February, Foreign Minister Sergei Lavrov was asked what he thought of the idea of Russia becoming a member of NATO. The same question was posed to former U.S. Secretary of State Madeleine Albright.

This idea gets thrown around among top U.S. and Russian policymakers once every few years to test the political waters. The first time Russia’s membership in the alliance was seriously considered was in the early 1990s, when President Boris Yeltsin was lobbying for integration into the most prominent Western institutions. In the early 2000s, President Vladimir Putin, while not calling for outright membership, did his part to push for more cooperation with Western security structures under the banner of the joint fight against terrorism.

But much has changed since then. First, Russia’s desire for Western integration has weakened considerably. It has been replaced by a stronger desire to regain its global influence — at the very least as a regional power center — that the Kremlin hopes may some day rival NATO. Unfortunately, it doesn’t look that integration with the West will become a priority again in the near future.

Another factor is the increasing number of schisms that we are seeing among NATO members as their numbers grow. The war in Iraq and NATO’s current operations in Afghanistan demonstrate that although the United States remains the undisputed leader of NATO, its European allies increasingly pursue their own national interests or their own vision of the global situation. If Russia were to become a full-fledged member, NATO would surely become a completely dysfunctional organization, after which Washington would lose all interest in it.

In addition, Russia’s membership in NATO would be accepted very coolly by China, which would probably view this as the final stage of its geopolitical encirclement by the United States and its NATO allies. This would heighten tensions in Russian-Chinese relations and forfeit one of Russia’s greatest post-Soviet foreign policy achievements —

the establishment of stable and friendly relations between Moscow and Beijing. Few NATO members would want to get bogged down defending its new NATO member along the 4,300-kilometer Russian-Chinese border in the event of a military conflict between the two countries.

Therefore, it would be completely unrealistic to try to solve the problem of European security in one fell swoop by granting NATO membership to Russia, and presumably Ukraine, Georgia, Belarus, Kazakhstan and other states. (This “NATO” has long existed — the Organization for Security and Cooperation in Europe — and there is no sense in duplicating it.)

Since Russia’s membership in NATO is clearly a nonissue for the near future, what can be done to simply improve NATO-Russian relations? The first step would be to acknowledge that the excessive, chronic suspicions toward NATO and the United States harbored by Moscow do not strengthen European security. Moscow has an idee fixe that the West is determined to weaken Russia by any possible means, with the ultimate goal of dismembering the country and carving it into servile satellites. According to this thinking, NATO expansion, Western support of the color revolutions and U.S. plans to “encircle” Russia with its global missile defense system are all elements of  an insidious Western plot to bring Russia to its knees.

There is a second misconception that Russia, not the West, plays the evil role. This notion holds that the Kremlin dreams of restoring its lost empire by annexing or subjugating former Soviet republics — and perhaps even former Warsaw Pact countries — and once again shipping dissenters to Siberian gulags. This Russophobia was seen, for example, in the suspicious way in which the West viewed the Russia-Georgia war of 2008, the criticism heaped on President Dmitry Medvedev for his doctrine of “privileged interests” in the former Soviet republics and the Kremlin’s plan to purchase a warship from France.

These excessive anti-Western or anti-Russian views do not in any way reflect post-Cold War reality. Nonetheless, both misconceptions are deeply rooted in the psychology of certain factions in the ruling elite on both sides of the fence. Only time and painstaking work can gradually eliminate these deeply ingrained ideas. The United States should take the primary initiative in improving relations, particularly since so many opportunities were lost in the administrations of former U.S. Presidents George W. Bush and Bill Clinton. They have been more diligent in perusing a strategy of transforming the defeated superpower into an independent and respected partner of the United States.

Conversely, Russia should take practical steps toward systematically dispelling the fears of its neighbors in Central and Eastern Europe. The Kremlin has already come to realize that without good relations with Poland, it will not have normal relations with the European Union and the West as a whole. To his credit, Putin has done a lot to improve relations with Poland, including his visit to Gdansk on Sept. 1, the 70th anniversary of the start of World War II, and a week ago he joined Prime Minister Donald Tusk in a ceremony at Katyn to commemorate the Polish victims of the massacre.

It is in Russia’s interest to make Warsaw a true economic and political partner on the same level as Moscow’s relations with Berlin, Paris and other European capitals. Poland will hardly become an outspoken advocate of Russia within the European Union or NATO anytime soon, but if Warsaw adopts a more positive policy toward Russia, this could play a significant role in improving overall relations between Russia and the West. In addition, the Kremlin should set a new, positive tone toward the Baltic states. Moscow should stop treating them as outcasts and stop trying to isolate them. Russia can start by opening its government archives and creating favorable conditions for a serious discussion on issues of their common — albeit difficult and painful at times — history.

Neither the expansion of NATO — even if Russia is added — nor the European security pact proposed by Medvedev alone are capable of uniting Europe. What is needed is the creation of a common security zone encompassing all of these states in which war and the use of armed forces would be abolished. That has already been achieved within the framework of NATO and the EU. It exists de facto between Russia and most European states, including Germany.

There is one gaping hole in building this broad security framework: Russia’s strategic relationship with the United States. A good place to start would be to work together on building regional missile defense systems. The first steps were taken in 2003 under the auspices of the NATO-Russia Council, when computer-assisted joint exercises were held to develop interoperability on a future theater missile defense system. There have been many verbal overtures from both sides to continue this work, but they need to be turned into concrete projects.

Of course, simply focusing on the “Russia question” will not by itself pave the way to European security. There are unresolved conflicts in the Caucasus, Kosovo, Cyprus and Transdnestr. The parties immediately involved in those conflicts must find a way to reach a reconciliation. This could occur soon if an appropriate level of understanding and cooperation existed between the United States, the EU and Russia. The creation of a common territory for an overarching security arrangement is the most important collective project of the 21st century — a feat that, if accomplished, would be comparable in significance to the creation of NATO in the middle of the last century.

Dmitry Trenin is the director of the Moscow Carnegie Center.

AP: Russia to enhance Olympic security after attackshttp://www.google.com/hostednews/ap/article/ALeqM5gVMpjCLOydu-pYrWs0mitliA3AQwD9F3N89O0

By DAVID NOWAK (AP) – 8 hours ago

SOCHI, Russia — Russia will enhance security for the 2014 Winter Olympics following multiple suicide bombings blamed on militants from the nation's southern provinces.

Deputy Prime Minister Dmitry Kozak, the Cabinet minister overseeing preparations, sought to reassure visiting International Olympic Committee members Thursday. He said a "comprehensive plan" was under consideration to ensure "strengthened public protection measures."

Last month's twin suicide bombings in the Moscow subway killed 40 and wounded more than 120. Officials said the attacks were staged by Islamic militants based in the North Caucaus region in Russia's south. Sochi is on the Black Sea coast across the mountains from the nation's restive southern provinces.

Kozak added, however, that security would not be significantly higher than for February's Winter Games in Vancouver or the 2008 Summer Games in Beijing. He refused to elaborate on security plans.

Sochi is less than 200 miles west of the volatile regions of Ingushetia, Chechnya and Dagestan, where authorities are fighting a deeply entrenched Islamist insurgency. Officials attribute the recent terrorist attacks across the country to suicide bombers from Dagestan.

Kozak's comments came at the end of a three-day inspection of the 2014 facilities, which Russia is building from scratch, by the IOC's coordination commission.

"We know what is happening in Russia," commission head Jean-Claude Killy said during a news conference in the mountain retreat of Krasnaya Polyana, where the snow-based competition will take place.

"Those measures that are already in place will be augmented, and the position of the IOC is straightforward in this matter," he added. "We entrust these issues to the authorities of the respective countries to monitor the situation."

Killy said the IOC had met with high-ranking Russian security officers Wednesday, but would not disclose details. The IOC said last month it was confident Russian authorities will take all measures to ensure a "safe environment" for the games.

On another matter, Kozak said the luge and bobsled track will be safe even if it takes last-minute changes in the final stages of construction. Russia wants to ease concerns following the death of a Georgian luger during a practice run hours before the start of the Winter Games.

"What happened in Vancouver ... gives us cause to have a long hard think," Kozak said.

An official report into the death of Nodar Kumaritashvili will be published Monday. The IOC said the report will be shown to Kumaritashvili's family before being made public.

Report writer Svein Romstad has said no single reason explains how and why Kumaritashvili crashed at Whistler on Feb. 12.

An Austrian company hired to study the blueprints of the track confirmed it conforms to safety standards, Kozak said.

"We can implement certain corrections during construction to guarantee the track's safety 100 percent," he said.

Moscow Times: Russia to Join WTO Alone http://www.themoscowtimes.com/business/article/russia-to-join-wto-alone/404038.html

16 April 2010By Alex Anishyuk

Russia may abandon its plans to join the World Trade Organization in a joint bid with Kazakhstan and Belarus, First Deputy Prime Minister Igor Shuvalov said Thursday, recanting a plan that many experts said was doomed from the start.

The government had earlier indicated a willingness to apply for accession to the WTO as part of a customs union with Kazakhstan and Belarus, but Shuvalov said that model would be changed "due to tactical considerations, as long as the decision is approved by the leaders of the three countries of the customs union — Russia, Belarus and Kazakhstan."

Russia has been in talks to join the WTO since 1993 and is currently the only major economy that is not yet part of the organization.

In June, Prime Minister Vladimir Putin said Russia, Belarus and Kazakhstan would bid for WTO membership together. Later, both he and President Dmitry Medvedev indicated that Russia would join in whichever way was most expedient.

The idea of joining the WTO within the customs union was dubious from the start, said Alexei Portansky, an expert at the Higher School of Economics' Trade Policy Institute.

"The announcement that Russia will join the WTO along with Belarus and Kazakhstan came as a surprise last June even for the negotiators, as it contradicts the rules of this organization," he said.

The Marrakesh agreement, the 1994 document outlining WTO principles, stipulates that unified customs territories applying for membership must have full sovereignty over their trade policies, as do Hong Kong and Taiwan, and does not mention customs unions of any kind.

"It's clear that the authorities realize they made a mistake last summer and are now trying to save their reputation, by saying cautiously that there is less probability now that the accession to the WTO within the customs union will take place," Portansky said.

The initial stage of the customs union went into effect on Jan. 1 after the new organization's legal framework was finalized. The agreement allows for the establishment of a customs territory by July 1, and the final stage of the union's creation is expected to conclude on July 1, 2011.

According to an estimate by the Russian Academy of Sciences' Institute of Economic Forecasting, the customs union will add a cumulative $400 billion to the gross domestic products of the three countries by 2015.

Kyrgyzstan has expressed an interest in joining the customs union, but it is not yet clear how the overthrow of the government in the Central Asian nation may affect those plans. Putin also invited Ukraine to join the customs union last month.

Despite the change in strategy, Russia could join the WTO by year's end, Shuvalov said Wednesday at a meeting with members of the European Commission in Brussels.

“Russia hopes to complete all procedures by the end of the year. We have support from the EU and positive signals from the U.S. administration. If the U.S. gives similar support, it will take several months,” Shuvalov said, Itar-Tass reported.

The timing may be right for Russia to secure the support that it needs abroad, but first it needs to step up to the plate, Portansky said.

"Last April, [U.S. President] Barack Obama promised to help Russia join the WTO, but due to a number of pressing domestic issues in the U.S., it looks like the idea was put away for some time," he said. "We need the support of the U.S. plus our own consistency in words and actions in order to join the WTO individually."

Medvedev said Wednesday that he was counting on the Obama administration's support and reproached Obama for not yet fulfilling the promise that he made in April 2009 at the G20 summit in London to help Russia join the WTO.

"Unfortunately, there has been no result so far," Medvedev told Rossia-24.

Shuvalov said Wednesday that Russia would start lowering its customs duties in the second half so as to come in line with the levels required by the WTO.

"To start lowering the tariffs before then would be difficult, almost impossible, because it would not be easy to explain to the Russian people," he said, Reuters reported.

Export tariffs on timber, which have been raised over recent years to stimulate investment in paper production, were one of the key points of recent disagreements with the WTO. In 2008, Russia introduced import duties on automobiles to protect domestic producers.

Itar-Tass: Duma to proclaim amnesty for war veterans

http://www.itar-tass.com/eng/level2.html?NewsID=15030770&PageNum=0

16.04.2010, 07.00

MOSCOW, April 16 (Itar-Tass) -- The Russian State Duma will on Friday proclaim an amnesty timed to the 65th anniversary of the VE-Day that will concern a small number of elderly convicts.

“The amnesty will cover from 100 to 200 people,” head of the Duma legislative committee Pavel Krasheninnikov said.

It will cover World War Two veterans, concentration camp inmates, and survivors of the blockade of Leningrad.

“The proposed amnesty is a manifestation of our deep respect to the older generation that bore on its shoulders all the hardships of the war,” Krasheninnikov said.

Echo Moskvy: 16.04.2010 09:05: The State Duma will consider today a package of bills to reform the Ministry of Internal Affairs

http://www.echo.msk.ru/news/672296-echo.html

GOOGLE TRANSLATION

Initiatives in the lower chamber has written to the president.

The essence of the bills - this is an amendment to the Criminal and Criminal Procedure Code increasing the responsibility of a police officer for failure to order management, or the commission of the offense. "These initiatives are aimed at improving the Ministry of Internal Affairs and will address issues on which agency to file a claim and meet the expectations of citizens," said the head Duma security committee, Vladimir Vasiliev in an interview with RIA. Noting that the proposed consideration of the bill contains a provision on criminal liability of police officers. In the State Duma considered a very important rule, under which the commission of a crime police officer should be considered as an aggravating circumstance in reaching the verdict.

Draft laws concerning the reform of the Interior Ministry, will be considered today ish in

the first reading. At the appropriate committee believe that a number of questions for the second reading needs refinement.

Lenta.ru: Medvedev agreed not to discriminate against policemen

http://www.lenta.ru/news/2010/04/16/medvedev/

GOOGLE TRANSLATIONRussian President Dmitry Medvedev plans to extend the bill to toughen penalties for crimes committed by policemen in the personnel of other law enforcement agencies, Interfax reported. Previously, the Constitutional Court found that a bill to tighten Medvedev responsibility for crimes committed by police, discrimination against employees of the Interior on the basis of professional affiliation. The court suggested the extension of the bill and to other law enforcement agencies, including the FSB, the Federal Drug Control Service and the Prosecutor General's Office. Medvedev said that to him with such a proposal called the State Duma. "I have no objection," - he said. Also, the president noted that he was aware of heightened public attention to the crimes that are committed by law enforcement agencies. "A lot of writing on the internet about corruption among the people who wear shoulder-straps. I see these appeals," - said Medvedev. A bill to stiffen the penalties for crimes committed by the Interior Ministry was developed in the framework of the reform of the Ministry of the Interior, of which Medvedev announced the end of 2009.

RBC: In Chechnya, in a series of explosions three members of the Defense Ministry killed

http://www.rbc.ru/rbcfreenews/20100416100714.shtml

16.04.2010, 10:07:14 Grozny in Chechnya in a series of explosions killed three members of the Defense Ministry. According to the law enforcement bodies of the republic, the first explosion occurred on the eve of 9 km from the settlement Bamut Achkhoi-Martan district in the mountainous, wooded area in the course of search and reconnaissance activities. Died of his wounds deputy commander of the reconnaissance and his subordinate. Another soldier from wounds and was hospitalized. During the evacuation thundered a second explosion. From his wounds in hospital, died another person. On the fact of the explosion is under investigation.

Earthtimes: At least three soldiers dead in Russian anti-terror action http://www.earthtimes.org/articles/show/319020,at-least-three-soldiers-dead-in-russian-anti-terror-action.html

Posted : Fri, 16 Apr 2010 07:04:13 GMT

Moscow - At least three government soldiers are dead Friday following a skirmish with rebel forces in the troubled Russian republic of Chechnya.At least one other soldier was injured by booby traps reported Russian news agencies, citing government officials in Grozny, the regional capital.The operation was targeted against those who planned terror attacks in the Moscow subway last month, killing 40.Government troops engage in frequent fighting with Islamist rebels in the Northern Caucasus region, which includes Dagestan and Ingushetia. The rebels would like to break away from Russia and form a Caucasian emirate.

Copyright DPA

Moscow Times: Nashi Celebrates Fifth Year With Kremlin Support http://www.themoscowtimes.com/news/article/nashi-celebrates-fifth-year-with-kremlin-support/404052.html

16 April 2010By Alexander Bratersky

Pro-Kremlin youth group Nashi, best known for harassing ambassadors and opposition leaders, celebrated its five-year anniversary Thursday with a major show of support from the Kremlin, which said the activists remained a vital force in Russia.

Kremlin first deputy chief of staff Vladislav Surkov — who is widely believed to have organized the group while an adviser to then-President Vladimir Putin in 2005 — spoke to the raucous crowd of 2,000 delegates, as did Nashi's founding father, Vasily Yakemenko.

Created to resist revolutions like those in Georgia in 2003 and Ukraine in 2004, Nashi has taken a back seat to other youth groups in recent years as the threat of widespread public unrest dwindled.

But Surkov told members Thursday that he "would always support" them.

“If we all go on vacation, the consequences won't wait. We see what's happening in Kyrgyzstan — that means we're needed and have to be at our posts. … Those who chose for themselves the political fight will never be able to relax again," Surkov told the crowd. "I'm calling on you to remain in that fight," he said, before conveying greetings from Medvedev.

Putin said in a letter to the congress that the movement "unites people who love their motherland and are trying to make a serious contribution to the resolution of the current problems of the state and society."

Yakemenko, now director of the Federal Agency for Youth Affairs, restated the group's allegiance to Russia's two leading politicians.

“The Nashi movement is the movement of those who feel outraged and mad by the things they see around them. Our movement knows no authority except the authority of the policies of Medvedev and Putin,” Yakemenko said.

The congress, held in an ornate Moscow business center, also elected a new ruling board, in which a previously low-profile activist, Marina Zademidkova, 25, collected three times more votes than her nearest competitor, Anton Smirnov.

The State Duma's youngest member, Robert Shlegel of United Russia, known for his initiatives to restrict media freedoms, was also elected to the five-member board. Nashi will elect its new formal leader from the group on May 15.

Incumbent leader Nikita Borovikov, 29, did not run for a spot on the board.

Political expert Stanislav Belkovsky said the movement's future would depend on financing from the Kremlin. “The movement doesn’t have a solid ideological base,” he said.

Ilya Yashin, a member of the Solidarity opposition movement who is a frequent target of Nashi attacks, said the group would still come in handy as the state tries to deflect the growing "protest mood."

“It's possible that the experience of movement’s managers would be needed when people hit the streets,” the former Yabloko youth leader told The Moscow Times.

While Nashi members in the regions have also been involved in less political activities, such as charity work, the group's radical fight against the Kremlin opponents will continue to be its focus, members said Thursday.

“We thought that we have defended our sovereignty, but we shouldn't forget that they are trying to occupy us,” Borovikov said, referring to Western powers and the “agents of the ideological influence.”

He said they were behind Russian opposition leaders and liberal-leaning media, which he accused of “promoting drugs and providing a tribune to terrorists."

Before Borovikov's speech, the group was shown a 15-minute film about Nashi, highlighting its opposition to the “organizers of color revolutions” and “liberals and fascists.”

To illustrate the message, the film showed former chess champion Garry Kasparov and former Deputy Prime Minister Boris Nemtsov — both members of the Solidarity movement.

Without naming names, the film also attacked “losers” in government and the media who are trying to block the country’s modernization, a key initiative by Medvedev to close Russia's technological gap with the West.

“The task to create civil society has been completed. The new task is to defend modernization and sovereign democracy,” the film narrator said in a robotic voice.

But not all of the delegates said they supported the hard-hitting ideology, which has discredited the movement with some of the public.

“We often don’t have concrete ideas to express,” said Artyom, who asked that his last name not be used because he was not authorized to speak to the media.

APRIL 16, 2010

Wall Street Journal: Russian Official Demands More U.S. Adoption Oversight http://online.wsj.com/article/SB10001424052702304628704575186283863908968.html?mod=WSJ_World_LEFTSecondNews

By RICHARD BOUDREAUX And COREY DADE

MOSCOW—Russia demanded Thursday that the U. S. agree to a system to monitor the treatment of adopted Russian children, a week after a Tennessee woman sent her 7 year-old adopted son back to this country alone.

The Foreign Ministry spokesman, Andrei Nesterenko, said all adoptions to American families were being suspended until such an accord can be reached. But Prime Minister Vladimir Putin's office denied any change in policy.

The conflicting signals from Moscow perplexed U.S. officials working to respond to the issue and rattled some Americans currently in the process of adopting Russian children.

"We have not been informed of any suspension, and we're seeking clarification from the Russian government," said State Department spokesman P.J. Crowley.

The confusion came amid outrage in both countries over the return of the boy on a Washington-to-Moscow flight with a note from his adoptive mother saying he had psychological problems she could no longer cope with. The news stirred renewed demands here for a formal U.S.-Russia adoption agreement.

Last Friday, Russian Foreign Minister Sergei Lavrov called the case "the last straw" and said he was proposing a suspension of adoptions. Mr. Putin's spokesman said such a step could be approved only by parliamentary legislation or a presidential decree.

U.S. officials now appear open to a bilateral accord with Russia after arguing for years that the Hague Convention's international agreement on intercountry adoptions would be sufficient once Russia ratified it. The State Department plans to send a delegation led by Assistant Secretary Michael Kirby to Moscow for talks scheduled to begin next week.

"We want to discuss concluding an agreement or bilateral understanding that will help us better ensure the well-being of Russian children who are adopted into the United States," U.S. Ambassador John Beyrle said this week.

Mr. Crowley on Thursday stressed that reaching a formal agreement isn't necessarily the State Department's goal for the talks, saying the delegation wants to "strengthen our understandings with the Russian government and its agencies so that these adoptions can continue."

Mr. Nesterenko told reporters Thursday that only an agreement with "effective tools for Russian and U.S. officials to monitor the living conditions of adopted Russian children will ensure that recent tragedies in the United States will not be repeated."

Russian officials argue that the 1993 Hague agreement, which the U.S. ratified in 2008, provides ineffective controls. They want Washington to create a central authority to monitor post-placement reports on adopted Russians.

Dmitry Peskov, a spokesman for Mr. Putin, said he was encouraged by "signals that the Americans are ready for agreement." Without one, he said, "future adoptions by Americans will become much more difficult."

Hundreds of Americans are awaiting approval to adopt Russian children. Russia was the third-leading source of international adoptions in the U.S. last year, with 1,586, according to State Department figures. The 3,001 adoptions from China were the most from a foreign country, followed by 2,277 from Ethiopia.

When countries halt international adoptions "it is disheartening for families who are already in the process, waiting to adopt," said Cory Barron of Children's Hope International, a St. Louis-based adoption agency that operates in Russia.

The boy sent home last week was named Artyom when Torry Ann Hansen adopted him from an orphanage in Russia's Far East last year; she later renamed him Justin. Arriving in Moscow on April 8, he handed authorities a note from Ms. Hansen saying she had been "lied to and misled by the Russian orphanage workers" about his troubles.

Russian officials say the boy, who will be 8 years old Friday, is well-behaved and is undergoing psychological examination at a Moscow hospital.

U.S. Consul General Richard Beer told Russian officials Thursday that authorities in Tennessee were considering filing criminal charges against Ms. Hansen, a registered nurse.

In Tennessee, Bedford County law-enforcement authorities investigating the case said they have been hampered by Ms. Hansen's refusal to be interviewed. Ms. Hansen's attorney has said she will not talk with police unless she is charged. She also has declined to talk with the state Department of Children's Services, which is aiding the investigation, and an adoption agency assigned to check on the family.

Write to Corey Dade at corey.dade@wsj.com

Moscow Times: Novaya Gazeta Warned http://www.themoscowtimes.com/news/article/novaya-gazeta-warned/404065.html

16 April 2010

Novaya Gazeta has been reprimanded by the federal media watchdog for publishing an article allegedly inciting ethnic hatred, deputy editor Sergei Sokolov said Thursday.

The watchdog said a Jan. 20 article, which cited the program of ultranationalist group Russky Obraz, incited ethnic hatred, Sokolov told The Moscow Times. The program was posted on the Russky Obraz web site.

The paper will appeal the reprimand in court, Sokolov said.

By law, the watchdog can ask a court to shut down a media outlet after issuing two reprimands. This is Novaya Gazeta’s first, Sokolov said.

(MT)

ICELAND ASH CLOUD

RBC: A cloud of ash stopped the work of several airports in RF

http://spb.rbc.ru/topnews/16/04/2010/394944.shtml

Volcanic ash clouds may cover most of the Northern Hemisphere, according to specialists, volcanologists. It is reported by radio station "Mayak". Currently, Iceland, near the glacier Eyyafyallayekyul continued unabated in a volcanic eruption, the ash is violated air traffic in Europe. According to experts, if such a situation in Iceland will be maintained and further clouds of ash spread over much of the Northern Hemisphere. Meanwhile, more and more European countries are forced to close its airspace to flights because of the looming clouds of ash Icelandic volcano. In Latvia, 16 April 2010 canceled all flights from 00:00, local time (01:00 Moscow) to 18:00 (19:00 Moscow time). In turn, Poland has introduced a ban on flights in the north-eastern regions of the country. It is reported that the first flight cancellations are in Russia: the interrupted flight service between Moscow and London. Russian airline Aeroflot in connection with the closure of

airspace and airports because of volcanic ash clouds lifted a number of flights to cities in Northern Europe. In particular, the following flights have been canceled: London (Su-241 and 243), Paris (Su-249, 251, 259 and 257), Riga (Su-159) Oslo (Su-211) Copenhagen (Su-215) Stockholm (Su-219) Amsterdam (Su-229), Warsaw (Su-101) Berlin (Su-113) Frankfurt (Su-105) Hamburg (Su-125) Dusseldorf (Su-127 and 117), Munich (Su-121) Kaliningrad (Su-753). This was reported by the press office of Aeroflot. "For passengers canceled flights available hotel accommodation and meals. To fly to destinations they can, as soon as the open airspace and airports in Northern Europe" - said in a statement the airline. Under the threat of a looming cloud of ash has proved Murmansk region. According to experts, it is possible that volcanic dust will penetrate into the lower layers of the atmosphere. However, doctors claim that its concentration would not be hazardous to health. Still, people with chronic respiratory diseases recommend to stay home and have on hand with inhaler medication. By the appearance of a giant cloud of preparing and Kaliningrad. It can reach the Russian coast of the Baltic Sea in the coming hours. While the local airport reconstruction works in normal mode, reports Rossiya24. Earlier, in connection with the non-flying conditions of its air space is fully closed the United Kingdom, Denmark and Norway. Later, a number of other countries, including Finland, Germany, Belgium, the Netherlands, Sweden and Ireland have imposed restrictions on flights. Recall that the volcano, located about 150 km from the capital of Iceland, Reykjavik, near the glacier Eyyafyallayekyul, began erupting March 20, 2010, and April 14 there was a second eruption. Vulcan sleep "for 200 years. In Iceland, the evacuation of residents of the neighboring volcano settlements. Due to the high temperatures melted the nearby glacier, which resulted in local flooding. 16 April 2010.

Itar-Tass: Kaliningrad airport closed for flights over Iceland ash cloud

http://www.itar-tass.com/eng/level2.html?NewsID=15031264&PageNum=0

16.04.2010, 10.24

KALININGRAD, April 16 (Itar-Tass) -- The Kaliningrad airport Khrabrovo was temporarily closed for all flights over the coming volcanic ash cloud from Iceland, senior dispatcher of the airport information group Irina Simonovich told Itar-Tass on Friday.

She noted that the air space of neighbouring Lithuania and Latvia, over which the flights in Kaliningrad and back are made, was closed either. Though the volcanic ahs cloud is moving at the high altitude, it is dangerous for airliners all the same. Therefore, the Kaliningrad airport is temporarily closed for flights.

On Friday morning the flight from Riga was cancelled, two flights from Moscow – the evening one on April 15 and the morning one on Friday – were delayed indefinitely, as well as the flight from St. Petersburg.

Itar-Tass: Ash cloud erupted by volcano in Iceland reaches Kola Peninsula

http://www.itar-tass.com/eng/level2.html?NewsID=15031093&PageNum=0

16.04.2010, 09.53

MURMANSK, April 16 (Itar-Tass) -- An ash cloud caused by an erupting volcano in Iceland has reached the Kola Peninsula, director of the Murmansk branch of the Moscow meteorological agency Rosgidromet Yulia Gorban told ITAR-TASS on Friday.

The situation in the air space in this northern region of Russia is being followed here.

According to Yulia Gorban, “the situation is not being developed in favor of air companies engaged in air transportations to Moscow, St. Petersburg and other major cities of the country’s more southern regions.

However, the Murmansk airport, according to a report of the administration of the enterprise, works on Friday in the usual regime.

RIA: Is Russia selling out Iran?http://en.rian.ru/analysis/20100415/158599756.html

23:3015/04/2010

Russian President Dmitry Medvedev's criticism of Iran during his recent visit to the United States came as a pleasant surprise for the Western and Israeli press. Medvedev said, "Iran is causing some problems", adding that "the most important thing now is for us to find evidence of what their nuclear program is."

The Russian president went on to say that Iran either ignores the questions addressed to it or makes suggestive statements. Isn't this enough to silence critics who claim that Russia is indulging Iran's nuclear ambitions?

The problem is that some of Russia's partners in the West overestimate how much influence Russia has over Iran. After U.S. President Barack Obama called off plans to deploy elements of the missile defense system in Poland and the Czech Republic on September 17, 2009, U.S. and other Western media outlets started saying that Russia should persuade Iran to disarm in exchange. One Polish newspaper put it somewhat differently: Moscow, it claimed, promised to "sell out" its "ally in the Middle East". When the U.S. concession on its missile shield wasn't followed by any significant movement on the Russian side, many in the Western media began to criticize Moscow for its failure to reciprocate.

As it turns out, all these hopes and grievances are unfounded. Iran has never been "ours" to sell out. Since the Islamic Republic of Iran was founded in 1979, its ideology has been rooted in a rejection of the notion of "spheres of influence" for great powers, especially in Iran.

Russia's relationship with Iran looks good compared to the United States (where Iranian assets have been frozen for over 30 years and which has no Iranian embassy) or some West European countries (which get entangled in diplomatic incidents with Iran from time to time). But it would be absolutely wrong to consider Iran a Russian "ally", let alone a puppet. The only people who believe this are under the spell of the most primitive anti-Russian news sources, who see Russia as the root of all evil, including Iran's nuclear program.

Russia, like the rest of the word, does not want Iran to develop nuclear weapons. But it is not interested in waging a preemptive war against Iran, like the U.S. did in Iraq. George W. Bush launched that war in 2003 under the pretext that Saddam Hussein had nuclear weapons. But no weapons were ever found.

A military conflict in Iran could have terrible consequences for Russia. Unlike Iraq, Iran borders former Soviet republics, and there is a large Azerbaijani Diaspora in Iran. There is no need to get into the problems Russia would face if Azerbaijan were destabilized by a war in Iran.

However, Russia also wants to help the Obama administration save face. Obama has taken a pragmatic approach to Russia. He refuses to cast Russia as an enemy. In fact, relations with Russia are one of the few areas where Obama can point to some progress. On other fronts, Obama hasn't been able to make any headway. His attempts to jump start Israeli-Palestinian peace talks have resulted in a barely concealed conflict with Israeli Prime Minister Benjamin Netanyahu. The deployment of more American forces in Afghanistan has not prevented a very public rift with Afghan President Hamid Karzai. Although Karzai took back his harsh words directed as the United States after a warning

from Secretary of State Hillary Clinton, the happy days in his relationship with Washington will never return.

Contrary to what many American and East European "hawks" believe, Russia does not want Obama to fail in his mission to bring peace and stability to the world (not to be confused with Bush's "new world order"). This is exactly how Medvedev's words on Iranian nuclear program should be interpreted. The Russian president expressed his opinion in no uncertain terms: "I would not favor sanctions, however they may become unavoidable at a certain moment in the future."

Last year, Obama addressed the Iranian people with a similar offer - meet your obligations under the Nuclear Non-Proliferation Treaty or at a certain moment I will be forced to take action. So it seems that Russia is not selling anyone out, nor is it inventing anything new. It is simply trying to act in concert with the international community.

 The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.

 MOSCOW. (RIA Novosti political commentator Dmitry Babich)

April 15, 2010 Special Dispatch No.2909

Middle East Media Research Institute: Syrian Government Daily: U.S., Israel behind Moscow Bombingshttp://www.memri.org/report/en/0/0/0/0/0/0/4102.htm

Syrian columnists have written that the U.S. and Israel were behind the March 29, 2010 Moscow subway bombings, and that the two countries hoped to reap political gains from them. They denied that Islamic elements were involved in masterminding the attacks.

Following are excerpts from the columns:

"[Washington] Hoped that this Terror Operation Would Pressure the Russian Leadership to Make Many Concessions"

Ibrahim Za'ir, columnist for the Syrian government daily Al-Thawra, stated that the U.S. had carried out the attacks with the aim of forcing Russia into making concessions to help resolve the crisis with Iran, and also to push Russia into signing the arms reduction treaty: "Russian Foreign Minister Sergei Lavrov declared that regional and international elements may have been behind the criminal operation that caused... the killing of 40 innocent civilians...

"Like the innocent victims of terror operations in Moscow, Dagestan, and other places in the world, the perpetrators of these operations also did not know the political goals of the operations [that they carried out]. [These perpetrators are] young men or women, in the full flower of their youth, who have been brainwashed with hatred and whose minds have been filled with elements of religious and ideological consciousness removed from the textual context of the books [holy to] the monotheistic religions – particularly [those] of the religion of Islam [i.e. the Koran] that bans the killing of innocents.

"But the planners of the terror operations know full well how to exploit the religion to accomplish their unique goals. It is they who are the most distant from Islam and its commandments... [The fact is that] the leader of the terror operations in the Caucasus, who was killed by Russian intelligence about a month before the recent Moscow operations, was... Sa'id Buryatsky, a Russian whose real name is Alexander Tikhomirov, who was connected to several foreign intelligence networks, particularly the American CIA.

"The U.S.'s condemnation of this does not mislead us. Many terror organizations have weapons and explosives... manufactured by the U.S. and Israel, sent to them via Georgia and other countries close to the U.S.

"Against this backdrop, Russian Prime Minister Vladimir Putin's trip to Venezuela to sign 30 agreements with President Hugo Chavez can be understood. Several U.S. and Western newspapers [saw these agreements] as Russia's response to Washington, and as an indirect accusation against it, vis-à-vis the two Moscow subway bombings... [Washington had] hoped that this terror operation would pressure the Russian leadership to make many concessions in all things regarding the signing of the Strategic Missile Arms Limitation Treaty – SALT II [sic][1] with Russia not demanding that the U.S. stop its missile defense project in Eastern Europe and change its position towards Iran, and [forcing] Russia to impose harsh sanctions on Iran [in accordance with Washington's wishes]...

"But Putin's visit to Caracas, the Venezuelan capital, constitutes a clear answer from Russia that it rejects America's dictates; perhaps the signing of the SALT 2 [treaty] will not work out as Washington wishes.

"Perhaps this is the misleading behavior that the U.S. regularly uses when it employs terrorism to obtain political goals... "[2]

"It Is Inconceivable that the Israeli Mossad Does Not Play an Active Part in Events Such as [the Moscow bombings]"

In another Al-Thawra column, Sa'id Muslim wrote that the Mossad had played a part in the Moscow attacks, and that he expected Russia to expose the Israeli connection:

"[Even if] the accusations, suspicions, and evidence point to the involvement of fundamentalist elements with Islamic beliefs and affiliations, it is inconceivable that the Israeli Mossad does not play an active part in events such as [the Moscow bombings].

"The Russian authorities... must expose the ones behind the [terror] perpetrators, and how they are carried out, in order to clarify the Israeli connections and strings. [Such a revelation] will lead to proof of the connection... between the hidden goals [of these operations] and the Israeli agenda.

"I do not believe that the Russian leadership, with its expertise, qualifications, shrewdness, and caution, will fail to draw [conclusions] of this type. It doesn't require extraordinary inventiveness."[3]

Endnotes:

[1] Presumably a reference to the New Strategic Arms Reduction Treaty (New START), signed by the U.S. and Russia on April 8, 2010.

[2] Al-Thawra (Syria), April 11, 2010.

[3] Al-Thawra (Syria), April 8, 2010.

National Economic Trends

Reuters: Russian rouble at fresh highs, as c.bank steps awayhttp://www.forexyard.com/en/news/Russian-rouble-at-fresh-highs-as-cbank-steps-away-2010-04-16T063317Z

Friday April 16, 2010 05:33:06 PM GMT

MOSCOW, April 16 (Reuters) - The Russian central bank shifted the rouble's floating trading band for the 28th time since mid-February on Friday, allowing the currency to scale fresh 16-month peaks versus the basket, dealers said.

The central bank moved its floating corridor to 33.60-36.60 roubles against the euro-dollar basket from 33.65-36.65 after purchasing a total of around $700 million at the previous boundary on Thursday and Friday, dealers said.

The latest move became the second this week and the 28th in two months.

By 0629 GMT, driven by high oil prices, the rouble had climbed as far as 33.6197 versus the basket, according to Reuters data <RUS=MCX> -- its strongest since December 2008.

Trading activity was relatively calm on the MICEX exchange, with Russian exporters continuing to convert part of their dollar and euro revenues into roubles to meet impending tax payments.

(Reporting by Andrey Ostroukh; editing by Toni Vorobyova)

April 16, 2010 10:58

Interfax: Industrial output up 0.1% in March compared with Feb – Nabiullinahttp://www.interfax.com/newsinf.asp?id=159039

MOSCOW. April 16 (Interfax) - Russian industrial output rose a seasonally adjusted 0.1% in March compared with February, Economic Development Minister Elvira Nabiullina said in Moscow on Friday at a session of the international council on cooperation and investment held at the Russian Union of Industrialists and Entrepreneurs.

"The overall economic situation is such that there is a trend toward recovery, but it is currently very weak in nature. According to the latest data, industrial production rose 5.7% in March year-on-year. Seasonally adjusted industrial output was up 0.1% compared with February," she said.

jh

Moscow Times: Industrial Output Rises More Than Expected http://www.themoscowtimes.com/business/article/industrial-output-rises-more-than-expected/404053.html

16 April 2010Bloomberg

Industrial output rose more quickly in March than in the previous month as manufacturing of steam turbines and freight cars grew, the State Statistics Service said Thursday, signaling that the recovery from the country’s worst recession may be gaining momentum.

Production at factories, mines and utilities rose an annual 5.7 percent after a 1.9 percent gain in February, the service said. Nonseasonally adjusted output surged 15.3 percent from February.

Improving global sales, higher raw material prices and accelerating domestic demand are prompting companies including TMK, Russia’s largest maker of pipes for oil and gas producers, and Gazprom to boost output.

Wage increases, retail sales growth and falling unemployment suggest “domestic demand is finally rebounding,” Alexei Moisseyev, senior economist at Renaissance Capital, wrote in a note Monday. “These factors raise tentative hopes that the economic recovery may be based on more than just the export of expensive commodities.”

Manufacturing growth was “sluggish” in March, according to VTB Capital’s Purchasing Managers’ Index. Still, a decline in new orders was balanced out by a rise in output and a weaker decline in unemployment, VTB Capital said.

Manufacturing advanced for a fourth month, rising 5.1 percent in March, the service said. Electricity, gas and water output rose 5.1 percent, while mining and quarrying added 6.6 percent.

Production of freight cars last month gained 85 percent year on year, the service said. Steam-turbine production quadrupled from the same period last year. Output of video monitors and other television equipment last month rose an annual 93 percent.

Industrial output shrank 10.8 percent in 2009 and capital investment fell 17 percent, according to statistics service figures. Production began recovering this year, expanding an annual 5.8 percent in the first quarter.

16.04.2010 - RIA NOVOSTI/banki.ru

Cbonds: Russia cuts US Treasuries investments 3.2% to $120.2 bln in Februaryhttp://www.cbonds.info/all/eng/news/index.phtml/params/id/459422

RIA NOVOSTI. In February of 2010 the Russian Federation reduced cash injections into American government bonds (US Treasuries) by 3.2% to $120.2 bln, US Department of

Treasury data showed.

This means Russia has cut investments in US Treasuries for a third consecutive month, as in January Russia held $124.2 bln in these papers, $141.8 bln in December 2009 and $151.4 bln in November 2009.

Russia’s US Treasuries holdings declined 7.6% y-o-y in February.

As of February 2010 major holders of US Treasuries were China ($877.5 bln), Japan ($768.5 bln) and the UK ($231.7 bln).

US Treasuries are the main instrument of financing state debt. During auctions the instrument’s value depends on yields which in turn are determined by investors’ forecasts for further economic development of the US and the world, as a whole. Instability in the global economy tends to raise the cost of US treasuries, while in the absence of crisis trends investors prefer investments in high-risk assets offering much higher returns.

Moscow Times: Trend of Crediting Interest to Ruble Bank Accounts http://www.themoscowtimes.com/vedomosti/article/trend-of-crediting-interest-to-ruble-bank-accounts/404044.html

16 April 2010By Lyudmila Koval / Vedomosti

Ruble bank cards with interest credited on the funds that clients have in their accounts are not offered by many banks. For a few years now, they have been issued by Binbank, MKB, Russky Standart and some others. Last year Trust Bank, UralSib and Mezhprombank Plus joined in and, as of a few days ago, Agropromkredit now also offers these cards.

Income on such cards is calculated once a month, usually at a rate of 5 percent to 10 percent per annum, in rubles. For foreign currency it is less. Profitable cards have always been popular. After all, it is basically a current account with interest not much lower than that of a high-interest savings account. It can also be thought of as a demand deposit with increased income, and it is always at hand. Card owners do not need to go to the bank every time they need money, and if they need the full amount, they can withdraw it without losing any of the previously accrued income.

Card accounts are insured the same way as conventional deposits.

Interest rates on cards are always lower than on long-term time deposits but, as a rule, higher than on short-term deposits. Clients usually hold funds on their cards for on average a few months, bankers said.

Of course, unlike a conventional deposit, a card can be easily lost or left in the ATM, and card fraud has intensified in recent years. But that is another story.

Business, Energy or Environmental regulations or discussions

Bloomberg: Lukoil, Gazprom, Polyus: Russian Equity-Market Previewhttp://www.businessweek.com/news/2010-04-16/lukoil-gazprom-polyus-russian-equity-market-preview.html

April 16, 2010, 12:37 AM EDT

By Maria Levitov

April 16 (Bloomberg) -- The following shares may have unusual price changes in Russian trading. Stock symbols are in parentheses and prices are from the previous close unless otherwise noted.

The 30-stock Micex Index gained 0.3 percent to 1,530.93. The dollar-denominated RTS Index rose 0.2 percent to 1,676.27.

OAO Lukoil (LKOH RX): Crude oil fell for the sixth time in seven days as U.S. unemployment claims unexpectedly jumped to a two-month high and industrial production improved less than anticipated, signs energy demand may be slow to recover. Shares of Lukoil rose 1.2 percent to 1,764.96 rubles.

OAO Gazprom (GAZP RX): Denmark won’t sell a “larger” stake in Dong Energy A/S, the country’s state-owned energy supplier, to other companies in the sector, the Danish finance minister said in a response to a report that Russia’s OAO Gazprom would be interested in a stake. Gazprom shares rose 2.1 percent to 185.08 rubles.

OAO Polyus Gold (PLZL RX): Gold rose in New York as some investors, concerned that Europe’s debt problems may worsen, bought the metal as an alternative to holding currency. Shares of Russia’s largest producer of gold rose 0.9 percent to 1,473.57 rubles.

--Editor: Glenn J. Kalinoski

To contact the reporter on this story: Maria Levitov in Moscow at mlevitov@bloomberg.net

To contact the editor responsible for this story: Chris Kirkham at ckirkham@bloomberg.net

Bloomberg: Rusagro Valued at Up To $1.67 Billion Before IPO, Vedomosti Says http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aM9z2agfzllM

By Maria Ermakova

April 16 (Bloomberg) -- OAO Rusagro was valued at between $1.3 billion and $1.67 billion by the three organizers of the Russian agriculture holding company’s initial public offering, Vedomosti said, citing three unidentified people involved in the sale.

The road show starts April 28 and pricing may be set May 13, Vedomosti said. Renaissance Capital’s valuation range was the lowest among the three banks, while Alfa Capital Markets was the highest, the newspaper said.

To contact the reporter on this story: Maria Ermakova at mermakova@bloomberg.net

Last Updated: April 16, 2010 00:49 EDT

Reuters: Russkoye Morye sets IPO price at low end: sourcehttp://www.reuters.com/article/idUSTRE63F11S20100416

2:55am EDT

MOSCOW (Reuters) - Russia's Russkoye Morye set the price for its initial public offering at the bottom of the range and cut the size of the offering, a source close to the deal said on Friday, signaling weak demand for the seafood firm's stock.

The source said the price was set at $6 per share compared with a planned range of $6 to $8. The company was seeking to raise between $130 million and $170 million but the source said the final sum could be lower than $130 million as the company had cut the size of the offering from an initially planned 21.7 million shares.

Russkoye Morye has said the company would receive approximately half the proceeds of the offering, indicating a bumper payout for controlling investor Maxim Vorobyov.

Sources have told Reuters the company was seeking a valuation of between $412 million and $550 million, already down from early estimates of $550 million to $800 million.

Vorobyov joins a long list of Russian entrepreneurs who have tapped or are seeking to tap international and local markets for cash amid renewed appetite for emerging market assets and a commodities price rally.

Dozens of Russian companies plan IPOs this year, with some investors predicting the total raised could exceed $20 billion, approaching the record levels seen in 2007.

UC RUSAL <0486.HK>, the world's biggest aluminum producer, has already raised $2.2 billion in January via an IPO in Hong Kong.

Next week fertilizer firm Uralchem and coal miner KTK could raise $900 million in two IPOs, possibly followed by Russian drugs distributor Protek, which aims to raise up to $400 million by the end of April.

(Reporting by Olga Popova; Writing by Dmitry Zhdannikov; Editing by David Holmes)

Bloomberg: Russian Fertilizer Maker PhosAgro Considers $1 Billion IPOhttp://www.businessweek.com/news/2010-04-16/russian-fertilizer-maker-phosagro-considers-1-billion-ipo.html

April 16, 2010, 3:09 AM EDT

By Ilya Khrennikov

April 16 (Bloomberg) -- OAO PhosAgro, Russia’s largest producer of phosphate-based fertilizers, is considering a $1 billion share sale as early as July.

PhosAgro started talks with banks including Credit Suisse Group AG, Deutsche Bank AG, Troika Dialog, Renaissance Capital and VTB Capital about a possible initial public offering, Chief Executive Officer Maxim Volkov said by phone today from Moscow.

“Technically we are ready for an IPO in three months from now, but the exact timing will depend on market conditions,” Volkov said. “If the banks advise us that 2011 would be a better opportunity for a sale, we’ll wait.”

PhosAgro may have a market value of about $7 billion, making it Russia’s second-largest fertilizer maker by market capitalization after OAO Uralkali, Mikhail Stiskin, an analyst at Troika in Moscow, said by phone.

--Editors: Simon Casey, Stuart Wallace

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

Reuters: BRIEF-VimpelCom announces results of U.S. exchange offerhttp://www.reuters.com/article/idUSWLA236020100416?type=marketsNews

Fri Apr 16, 2010 2:13am EDT OAO "Vympel-Kommunikatsii"VIP.N$16.90+0.46+2.80%

12:00am GMT+0200April 16 (Reuters) - Vimpelcom (VIP.N): * Vimpelcom ltd. announces results of U.S. exchange offer * Says total of 308,309,375 ADSs were validly tendered and notwithdrawn in the U.S. offer * Says expected that more than 95% of OJSC Vimpelcom'soutstanding shares be tendered in the exchange offer * Says VimpelCom Ltd DRs will begin trading today on the NYSEon a "when-issued" basis * Says 24,697,325 OJSC VimpelCom ADSs were not tendered * Says expects shareholders Telenor ASA and Altimo Holdings &Investments will tender their shares in Russian offer * Says non-tendered OJSC VimpelCom ADSs are intended to bedelisted from the NYSE * Says will announce the final results of the exchange offer onWednesday, April 21

Reuters: Telenor says "very close" to closing Alfa dealhttp://www.reuters.com/article/idUSOSN00437620100416?type=marketsNews

2:40am EDT

OSLO, April 16 (Reuters) - Norway's Telenor <TEL.OL> said it was very close to closing a deal with Russia's Alfa Group to merger their Russian and Ukrainian mobile operators following a successful share exchange and the withdrawal of a court suit.

"We are very close to closing this deal, provided that the Farimex issue is settled at no cost to us and the closing of the Russian part of the offer on April 20," Telenor spokesman Dag Melgaard said on Friday.

"Russian bailiffs still hold our (Vimpelcom) shares in arrest, and this needs to be lifted and all proceedings cancelled. But we are very happy with these developments."

Some 97 percent of Vimpelcom shareholders agreed to exchange their shares in the Russian operator into stock in Vimpelcom Ltd -- a new entity which includes Ukrainian moblie group Kyivstar -- in a tender which ended on Thursday. A Russian part of the offer runs out on April 20, Melgaard said.

(Reporting by Wojciech Moskwa)

Reuters: Farimex drops Russian court case against Telenorhttp://www.reuters.com/article/idUSLDE6110UW20100416

1:59am EDT

MOSCOW, April 16 (Reuters) - Vimpelcom <VIP.N> investor Farimex has dropped its Russian court case against Norway's Telenor <TEL.OL>, its lawyer, Dmitry Chyorny, told Reuters on Friday.

"We decided to withdraw the suit as there has been a resolution," he said.

The news potentially opens the door for the Russian mobile group's planned merger with Ukraine's Kyivstar. [ID:nLDE63E14S] (Reporting by Maria Kiselyova; Writing by Toni Vorobyova)

6.04.2010 - Standard & Poor's

S&P: Russia-Based Renaissance Financial Holdings Ltd. Rated 'B+/B'; Outlook Negative http://www.cbonds.info/all/eng/news/index.phtml/params/id/459431

MOSCOW (Standard & Poor's) April 15, 2010--Standard & Poor's Ratings Services said today that it assigned its 'B+' long-term and 'B' short-term counterparty credit ratings to Russia-based Renaissance Financial Holdings Ltd. (RFHL). The outlook is negative.

"The ratings are constrained by high systemic and market risks in Russia and around the globe," said Standard & Poor's credit analyst Elena Romanova. "Further constraints include reduced possibilities for major business development, weakened financial performance, and poor transparency with respect to the operations of related companies outside the consolidated group."

These negative rating factors are partly offset by the group's strong capitalization, recognizable brand, good managerial flexibility, and the possibility of liquidity and funding support from the new shareholder: ONEXIM Group (not rated).

In line with our methodology for assessing nonoperating holding companies, the ratings on RFHL are based on the creditworthiness of the consolidated group. We do not differentiate the ratings on RFHL from our assessment of the consolidated creditworthiness of the operating group because we believe RFHL would draw on the full resources of the operating group in case of need. The nonoperating holding company doesn't depend on cash flows from any particular dominant operating company.

RFHL is a Bermuda-registered holding company that owns a 100% stake in a complex group of companies. In July 2009, Renaissance Capital Holdings Ltd. (B/Negative/B), the former 100% owner of RFHL, completed the sale of a 50% stake to ONEXIM, ,one of

Russia's largest private investment funds.

RFHL's business contracted 40% from year-end 2007 to Sept. 30, 2009 and profits dropped by more than 80%, owing to the downturn in financial markets. Equity sales and trading and brokerage services provided more than 80% of the group's operating revenues in 2009, highlighting a degree of revenue concentration. The group's liquidity is now stable, in our view, and capitalization has strengthened following a $500 million capital injection by ONEXIM into RFHL.

"The outlook is negative because we believe that RFHL's business and financial profile will remain hampered by a difficult operating environment," said Ms. Romanova. "Moreover, we see a risk that RFHL's capitalization could decline. In particular, we perceive a risk that aggressive dividend practices, as seen in 2009, could continue."

We could take a negative rating action if RFHL's liquidity were to deteriorate to levels that we consider inconsistent with the current rating, if its capitalization were to fall significantly, or if RFHL's proprietary risk appetite were to increase. Any new prolonged market downturn may also produce negative pressure on the ratings.

To consider an outlook revision to stable we would need to see a marked improvement of the operating environment and a clear demonstration that the group's performance is stabilizing. A further positive trigger would be evidence that the upstream of dividends and cash to the shareholders and upper levels of the group is not harming RFHL's creditworthiness.

JoongAng Daily: Posco announces Zaporizhstal bidhttp://joongangdaily.joins.com/article/view.asp?aid=2919260

April 16, 2010

Posco, Korea’s leading steelmaker, said yesterday that it has placed a preliminary bid for a controlling stake in Zaporizhstal of Ukraine.

According to Posco, it is one of the bidders for the Ukrainian steelmaker, which also produces iron ore. Other bidders include Arcelor Mittal and OAO Severstal of Russia.

“It is in the early stages at this time, and it is unclear whether we will place a formal bid,” a company official said.

Zaporizhstal plans to conduct a final bid in June. Zaporizhstal, Ukraine’s fourth-largest steelmaker, has an annual capacity of 4 million tons. The company sells steel products to Russia and Turkey.

Posco’s move is the latest in a series of mergers and acquisitions sought by the world’s fourth-largest steelmaker. In the past few years, Posco has acquired Asia Stainless Corp. in Vietnam and Taihan ST Corp. in Korea. Posco is also in talks to buy Thailand’s Thainox Stainless Plc. Posco is also seeking to acquire Daewoo International Corp., a Korean trading company focused on energy development.

Alibaba: Severstal invests $685 million in Russian division's key projectshttp://news.alibaba.com/article/detail/metalworking/100276108-1-severstal-invests-%2524685-million-russian.html

Published: 13 Apr 2010 00:24:44 PST

SteelOrbis - In 2010 the Russian steelmaker Severstal plans to spend about $685 million on key investment projects of its Russian steel division Severstal Russian Steel, reflecting its improved confidence in the market outlook.

Accordingly, within the framework of improving the company's business efficiency, a center for the implementation of the major investments projects of the Russian division started its work on April 1 this year. The center will allow Severstal to manage more effectively the processes of the implementation of investment projects, and in the future its activities are planned to be extended to the entire company.

In order to develop the competence of its main contractors, in March this year Severstal acquired a 100 percent stake in Russian developer RC Group, the main stakeholder in Metallurgremont, which is specialized in repairs of steel-producing equipment, and which is planned to be the main contractor for Severstal's large investment projects.

Metallurgremont is to complete the construction of Severstal's 250,000 mt capacity new pipe mill Sheksna Pipe Works, and also to finish construction of the second polymer coating line at Cherepovets, both of which, along with the new mini-mill in Balakovo (currently under construction), are priority projects in Severstal's investment program.

As SteelOrbis previously reported, Severstal has increased its capital expenditure program from $1 billion in 2009 to $1.4 billion in 2010.

Moscow Times: For the Record http://www.themoscowtimes.com/business/article/for-the-record/404061.html

16 April 2010 Sheremetyevo International Airport handled 28.5 percent more passengers in the

first three months of the year compared with the same period in 2009, the firm said Thursday. (Bloomberg)

Evraz Group may raise debt in North America to help fund its Canadian and U.S. assets, president Alexander Frolov said, Kommersant reported. (Bloomberg)

Bloomberg: KamAZ Had Net Loss of 3.4 Billion Rubles in 2009 After Profit http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asndZx8G.H.Q

By Ekaterina Shatalova

April 16 (Bloomberg) -- OAO KamAZ, Russia’s biggest truck maker, had a net loss of 3.4 billion rubles ($117 million) in 2009 after profit the previous year.

Sales fell 36 percent to 61.3 billion rubles, Oleg Afanasiev, a company spokesman, said by phone today from Naberezhnye Chelny in Russia’s Tatarstan region. Net debt decreased 7 percent to 17.8 billion rubles at the end of the year, he said.

To contact the reporter on this story: Ekaterina Shatalova in Moscow at eshatalova@bloomberg.net

Last Updated: April 16, 2010 02:15 EDT

Moscow Times: Production of Classic Ladas to Double in May http://www.themoscowtimes.com/vedomosti/article/production-of-classic-ladas-to-double-in-may/404045.html

16 April 2010By Alexei Nepomnyashchy / Vedomosti

In May, AvtoVAZ will assemble 45,900 Ladas, 6.8 percent more than in April. However, production of the classic Lada 2105 and Lada 2107 models will grow much more — 76.3 percent, to 17,600 units, the company said. These classics will make up 38.3 percent of AvtoVAZ’s total production.

This is the result of the cash-for-clunkers recycling program. The classic is the plant’s most popular model that is implemented under this program, and a waiting period of several weeks is already lining up for these cars.

Reuters: Steel baron Vladimir Lisin tops Russia rich listhttp://www.lse.co.uk/FinanceNews.asp?shareprice=&ArticleCode=whj1yljiwb2wym2&ArticleHeadline=Steel_baron_Vladimir_Lisin_tops_Russia_rich_list

Fri, 16th Apr 2010 07:55

MOSCOW, April 16 (Reuters ) - Steel baron Vladimir Lisin has moved to the top of Russia's rich list in a year when the number of billionaires living in the country nearly doubled to 62, Forbes magazine said in a statement on Friday. Lisin, a keen huntsman and majority owner of Novolipetsk Steel, took the top spot on the annual Forbes list of Russian billionaires, with a fortune of $15.8 billion. Mikhail Prokhorov, who topped last year's list, dropped to second with a fortune of $13.4

billion, ahead of telecoms, retail and oil billionaire Mikhail Fridman, with $12.7 billion. The top 20 richest Russians as rated by Forbes magazine in its May 2010 Russian edition, published on Friday, are as follows:

Rank Age Fortune ($ bln) Company

2010 2009

1. Vladimir Lisin 53 15.8 5.2 Novolipetsk Steel

2. Mikhail Prokhorov 44 13.4 9.5 Onexim

3. Mikhail Fridman 45 12.7 6.3 Alfa-Group

4. Roman Abramovich 43 11.2 8.5 Millhouse

5. Oleg Deripaska 42 10.7 3.5 UC RUSAL

6. Vagit Alekperov 59 10.6 7.8 LUKOIL

7. Vladimir Potanin 49 10.3 2.1 Interros

8. Alexei Mordashov 44 9.9 4.3 Severstal

9. Viktor Rashnikov 61 9.8 2.5 Magnitogorsk I&S

10. Dmitry Rybolovlev 43 8.6 3.1 Uralkali

11. Iskander Makhmudov 46 8.5 3.3 UMMC /

Kuzbassrazrezugol

12. German Khan 48 8.2 4.0 Alfa-Group

13. Vladimir Yevtushenkov 61 7.5 1.2 Sistema

14. Alisher Usmanov 56 7.2 1.6 Metalloinvest

15. Alexei Kuzmichev 47 6.5 3.1 Alfa-Group

16. Viktor Vekselberg 53 6.4 1.8 Renova, TNK-BP

17. Igor Zyuzin 49 6.4 1.0 Mechel 18. Alexander Abramov 51 6.1 4.4 Evraz Group

19. Suleiman Kerimov 44 5.5 4.3 Investments

20. Leonid Fedun 54 5.5 4.3 LUKOIL

(Reporting by Robin Paxton; Editing by Dmitry Sergeyev and

David Holmes)

Keywords: RUSSIA RICH/

(robin.paxton@reuters.com; +7 495 775 1242; Reuters Messaging: robin.paxton.reuters.com@reuters.net)

Activity in the Oil and Gas sector (including regulatory)

Bloomberg: Shmatko Says Gas Exporters ‘Concerned’ About Europe Spot Market http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aZnLL2ykBc4o

By Lyubov Pronina

April 16 (Bloomberg) -- Russian Energy Minister Sergei Shmatko said gas exporting nations are “very concerned” about the European spot market and will discuss the issue at a forum in Algeria next week.

“We expect a frank talk, an evaluation of today’s situation with what is happening now on the spot market in Europe,” he said in an interview in Brasilia, Brazil. “As I understand, colleagues are ready for such a talk. People are very concerned.

‘‘We need to analyze what is happening, how long term a trend it is,’’ he said of the April 19 meeting in Oran, Algeria. ‘‘We will discuss such things.’’

Shmatko also said that Russia and Ukraine haven’t yet agreed on a gas price.

To contact the reporter on this story: Lyubov Pronina in Moscow at lpronina@bloomberg.net

16.04.2010

Oil and Gas Eurasia: Ukrainian Transit Tariff for Russian Gas Set to Risehttp://www.oilandgaseurasia.com/news/p/0/news/7054

The tariff for which Ukraine pumps Russian gas to Europe through its pipelines will rise in the second quarter of 2010 to $2.84-$2.88 per 1,000 cubic meters over 100 kilometers, Gazprom Director of CIS Affairs Anatoliy Podmyshlaskiy said on 14 April. 

"The tariff in the first quarter of the year was $2.78, but it will rise in the second quarter another 6-8 cents", he said.Copyright 2010, Ukroil. All rights reserved. 

Last Updated: April 15, 2010 22:17 EDT

Moscow Times: State May Sell Oil Fields http://www.themoscowtimes.com/business/article/state-may-sell-oil-fields/404060.html

16 April 2010

The government may offer the Trebs and Titov oil fields for sale in one lot for at least 15 billion rubles ($517 million) in the second half of the year, Vedomosti reported Thursday, citing unidentified government officials familiar with the plans.

The value of the fields, which together form one of Russia’s biggest undistributed oil assets, may exceed 17 billion rubles, the newspaper said, citing one of the officials.

(Bloomberg)

Apa.az: Paris to host the 10th Anniversary CIS Oil & Gas Summithttp://en.apa.az/news.php?id=120139

[ 16 Apr 2010 11:51 ]

Baku. Nijat Mustafayev – APA-ECONOMICS. The Energy Exchange has achieved worldwide recognition for the organisation of high level, strategic and technical conferences within the upstream oil and gas and alternative energy sectors, on May 19-21, in Paris.

The CIS Oil & Gas Summit provides unique access to the leading decision makers from the entire CIS region: Russia, Ukraine, Kazakhstan, Azerbaijan, Turkmenistan and Uzbekistan..

The region s most established conference co-hosted by TOTAL will feature the most crucial and timely issues of the industry including updates on government regulation and policy strategies presented by the Ministries themselves, major offshore projects such as Shtokman and Sakhalin, the development of oil & gas fields in the Caspian region and diversifying transportation routes..

Azerbaijan will be represented by SOCAR’s president Rovnag Abdullayev.

16.04.2010

Oil and Gas Eurasia: Irkutsk to Fill VSTO With 23 Million Tons of Oil by 2025http://www.oilandgaseurasia.com/news/p/0/news/7059

Companies operating in Irkutsk Region could supply as much as 23 million tons of crude a year to the East Siberia-Pacific Ocean (VSTO) pipeline by 2025, Irkutsknedr Director Vladimir Nazarev said. He said forecasts show that 3.2 million tons could be supplied to VSTO in 2010, and added this figure could rise to 8-9 million tons in 2014. Navarev pointed out that when the VSTO pipeline project was being drafted, Irkutsk Region was estimated to have 235 million tons of crude reserves and four oil fields were being developed. "Today we can say with confidence that reserves total 400 million tons. in order to achieve production of 23 million tons a year and produce without hurting the subsoil deposits, we need to increase reserves to 1 billion tons" he said.Nazarev noted that a number of fields have been discovered since construction began on the VSTO: the West-Ayanskoye, Angaro-Ilimskoye, Naryaginskoye, Savastyanovskoye, Zaslavskoye and Tuturskoye. He said he was confident that another "new oil or composite field with reserves of 50-60 million tons" would be discovered on the Ignyalinskoye section.Copyright 2010, Oil and Gas Information Agency. All rights reserved.

16.04.2010

Oil and Gas Eurasia: TNK-BP to Invest $300 Million in Saratov Refineryhttp://www.oilandgaseurasia.com/news/p/0/news/7057

From 2010 to 2012, TNK-BP plans to invest $300 million into its Saratov refinery, the company reported in a news release. 70 million rubles was spent on reconstruction and modernization at the enterprise in the first quarter of 2010, or almost double the amount spent in the same quarter in 2009.TNK-BP plans a  number of investment projects for the Saratov facility in the next two years: building an izomerization unit, modernizing the diesel fuel hydrotreatment unit and sulphur unit and rebuilding rail loading racks. The company estimates this work will cost $300 million and enable the facility to produce more competitive products.From January to March 2009, the Saratov refinery processed 1.586 million tons of oil, or 60 tons more than in the first quarter of 2009.Copyright 2010, TNK-BP. All rights reserved.

Bloomberg: Repsol to Sell Stake in Russia’s Alliance, El Economista Says http://www.bloomberg.com/apps/news?pid=newsarchive&sid=asaEAS1l_AcU

By Charles Penty

April 16 (Bloomberg) -- Spanish oil company Repsol YPF SA is planning to sell its stake in Russia’s Alliance Oil Co. for as much as 70 million euros ($95 million), El Economista reported.

Repsol is also trying to sell half of an exploration block in Guinea while considering sales of small investments that it doesn’t consider strategic, the newspaper said, citing unidentified people at the company familiar with the situation.

A spokesman for Repsol, who asked not to be named in line with company policy, declined to comment on the report.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

Last Updated: April 16, 2010 02:53 EDT

Gazprom

APRIL 15, 2010, 9:32 A.M. ET

Dow Jones: Gazprom, Qatar Discuss Joint LNG Project At Northern Field http://online.wsj.com/article/BT-CO-20100415-708209.html?mod=WSJ_World_MIDDLEHeadlinesAsia

MOSCOW (Dow Jones)--Qatar has invited Russian gas giant OAO Gazprom (GAZP.RS) to participate in a project involving liquified natural gas, or LNG, the Russian company said Thursday.

Gazprom may participate in an LNG project at Qatar's Northern Field after 2014, when a moratorium on increased production at the field is lifted, Gazprom said following a meeting between the company's Chief Executive Alexei Miller and high-level Qatar officials.

Company Web site: www.gazprom.ru

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 232 9197; jacob.pedersen@dowjones.com

Gulf Times: Gazprom CEO calls on Emirhttp://www.gulf-times.com/site/topics/printArticle.asp?cu_no=2&item_no=355531&version=1&template_id=36&parent_id=16

Publish Date: Friday,16 April, 2010, at 01:17 AM Doha Time

QNA/Doha 

HH the Emir Sheikh Hamad bin Khalifa al-Thani received yesterday the chief executive officer of Russian Gazprom company Alexei Miller and his accompanying delegation at  his Emiri Diwan. The meeting was attended by HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani and HE the Deputy Prime Minister and Minister of Energy and Industry Abdullah bin Hamad al-Attiyah. Meanwhile,  HE al-Attiyah met Gazprom CEO and the accompanying delegation separately. Talks during the meeting dealt with means of enhancing relations between Qatar Petroleum and Gazprom in the energy sector. The meeting was attended by HE the Minister of State for Energy and Industry Affairs Dr Mohamed Saleh al-Sada and the Russian Ambassador to Qatar Vladimir Titorenko.

Trading Markets: Gazprom might invest in Danish Dong Energyhttp://www.tradingmarkets.com/news/press-release/ogzpy_gazprom-might-invest-in-danish-dong-energy-914852.html

 

Posted on: Thu, 15 Apr 2010 14:36:00 EDTMiami, FLA, Apr 15, 2010 (M2 PRESSWIRE via COMTEX) --

15 April 2010 - Russia's gas monopoly Gazprom OAO (MCX: GAZP) may be interested in buying part of Danish state-owned utility Dong Energy, Sergey A. Emeliyanov, deputy director general of Gazprom Export, told Danish daily Jyllands-Posten (JP).

"Why not," Emeliyanov answered when asked whether Gazprom would like to buy shares in Dong. However, the executive did not wish to further elaborate on the acquisition plans.

Gazprom, which today sells generally all of its gas via other energy companies, aims to have direct access to gas customers across Europe, according to Emeliyanov.

"Our plan is to have 10% of the European gas consumers as customers," the executive told JP.

In 2006, Gazprom and Dong signed a large gas supply agreement, which comes into force next year. Following an additional deal from last year, the Russian major is set to play an important role in Denmark's gas supply.

Dong Energy was set to Denmark's privatisation agenda back in 2004, but the financial crisis made the government postpone the planned stock exchange floatation of part of the company. Now, the initial plan seems more unlikely to come true, as the Danish parliament will discuss this month whether a sale of the company should be abandoned.

Comments on this story may be sent to

nbr.feedback@nordicbusinessreport.com

Kyiv Post: Gazprom: Rate for gas transit through Ukraine to increase to $2.84-$2.88 per 1,000 cubic metershttp://www.kyivpost.com/news/business/bus_general/detail/64071/

Yesterday at 19:28 | Interfax-Ukraine The rate for transit of Russian natural gas through Ukrainian territory in the second quarter of 2010 will increase to $2.84-$2.88 per 1,000 cubic meters over 100 kilometers, the head of OJSC Gazprom's department for operations with the near abroad, Anatoly Podmyshalsky, said during the Ukrainian-Russian Forum in Kyiv on Apr. 15.

"In the first quarter of this year, the rate came to $2.78 but it will increase by six to 10 points in the second quarter," he said.

Podmyshalsky also said that Gazprom would transport over 116 bcm of gas through Ukrainian in 2010.

It was earlier reported that natural gas transit through Ukraine to European and CIS countries came to 95.82 bcm in 2009, which is a decrease of 19.9% from 2008.

Ukrtransgaz, a subsidiary of Naftogaz Ukrainy, operates Ukraine's trunk gas pipelines and underground storage facilities.

The system's capacity at entry into Ukraine comes to 288 bcm and 178.5 bcm at exit, including 142.5 bcm to European destinations.

UPI: Kiev, Moscow gas talks strictly bilateralhttp://www.upi.com/Science_News/Resource-Wars/2010/04/15/Kiev-Moscow-gas-talks-strictly-bilateral/UPI-79001271339839/

Published: April 15, 2010 at 9:57 AM

KIEV, Ukraine, April 15 (UPI) -- No intermediaries are involved in discussions between Ukrainian state energy company Naftogaz and Russian gas monopoly Gazprom, officials in Kiev said.

The government of Ukrainian President Viktor Yanukovych is attempting to renegotiate gas contracts signed with Moscow by the previous government. Ukraine received a discount in 2009, though gas prices are set to return to a mechanism linked to crude oil prices.

Andriy Kliuyev, the first deputy prime minister of Ukraine, said there are no third parties involved in talks between the two energy companies, the National News Agency of Ukraine reports.

"There are no mediators and this is excluded," he emphasized.

In terms of pricing issues, the deputy prime minister said that all parts of the bilateral negotiations on gas were "in progress."

"All that relates to the prices, supply mechanisms, whether the formula will depend on the value of gas oil and what a coefficient will be, all this we will tell later," he added.

Ukraine's energy woes are complicated by an economy left in tatters by the global economic recession. Kiev said Wednesday it was set for further cooperation with the International Monetary Fund to help cope with its economic troubles.

Sofia Echo: Squabble Streamhttp://www.sofiaecho.com/2010/04/16/887477_squabble-stream

Fri, Apr 16 2010 10:00 CET by Alex Bivol Since Prime Minister Boiko Borissov took office in July 2009, Bulgaria has come under relentless pressure from Russian officials to speed up work on construction of joint energy projects. On South Stream, in particular, the talks have stalled repeatedly over a number of sticking points.

Despite some analysts’ concerns that Gazprom could hardly afford to spend any money on the South Stream pipeline under the Black Sea and in the Balkans at the same time that it plans to build the Nord Stream under the Baltic Sea, the Russian gas company has continuously pushed to speed up work on preparing construction.

Bulgaria was not the only laggard raising Gazprom’s hackles, however, judging by reports in Russian media.On April 9, the head of Gazprom’s international business department, Stanislav Tsygankov, openly took a shot at Italian energy firm Eni, Gazprom’s main partner in the South Stream project.

"There is nothing constructive in their approach, no tangible proof of work," Tsygankov was quoted as saying by Russian news agency Interfax. Eni failed to co-ordinate with Gazprom, thus "progress on South Stream is negligible because of the absence of adequate work from the Italian partners," he was quoted as saying.

Gazprom’s rapid damage control measures saw spokesperson Sergey Kupriyanov deny the existence of any tension between the two companies and Tsygankov himself said later in the day, as quoted by Interfax, that Gazprom expected "progress on project and a new impulse in its practical implementation."

The sudden outburst came just days before a scheduled visit by Eni chief executive Paolo Scaroni to Moscow on April 12. Following Scaroni’s trip, Eni said that it intended to speed up work on the joint venture and confirmed its full commitment to the pipeline and the partners’ intention to complete the feasibility study for the offshore section.

Reports in Russia, however, claimed that despite Gazprom’s attempt to marginalise the impact of the comments made by Tsygankov, the relationship between the two companies was terse and little progress was expected in the coming months.

Daily Vremya Novostey said, quoting an unnamed source at Gazprom, that the Russian company did not expect any progress on South Stream as long as Scaroni remained chief executive of Eni. Scaroni was scheduled to step down at the end of the year, but Gazprom had no guarantees that the management change would give the pipeline project a renewed impetus, the daily said.

Destination confirmedIn a separate development on April 9, Gazprom chief executive Alexey Miller said that there were no plans to exclude Bulgaria from the South Stream projects, as Russian media speculated in February, following meetings between Gazprom and Romanian government officials.

Although negotiations were underway concerning a branching out of South Stream that would pass through Romania, the underwater stretch of the pipeline would go ashore in Bulgaria, Interfax quoted Miller as saying.

In February, following a meeting between Romanian Economy Minister Adriean Videanu and Alexander Medvedev, the deputy chairperson of Gazprom’s management board, reports in Russian media suggested that Bulgaria’s insistence on renegotiating its current deals with Gazprom could result in a redrawing of the pipeline’s route.

Miller’s remarks came at the launching ceremony for Nord Stream, which, together with its southern twin, are meant to bypass Ukraine. Strained relations between Moscow and Kyiv have caused supply disruptions in January 2006 and January 2009, which left Bulgaria – reliant almost exclusively on supplies of Russian gas – stranded in the cold.Nord Stream is due to be completed in 2013 and South Stream is envisioned to start operation in 2015, a target that Miller described as "difficult" despite the project progressing on schedule.

Sticking pointThe main sticking point on South Stream between Gazprom and Bulgaria is the Russian giant’s insistence to treat the gas contracts renewal process as part of the negotiations on the amounts that Bulgaria would receive through South Stream. Bulgaria wants the issues examined separately and fears that bundling the issues could result in lower quantities being pumped through Bulgaria to Greece, Macedonia and Turkey, which would mean lower transit revenue for Sofia.

Following the last meeting in February, Bulgaria’s Economy and Energy Minister Traicho Traikov said that the two sides were "having talks about starting the negotiations, not the actual negotiations [on the contracts]."

On the list of Bulgarian demands, according to reports, was an increase in the transit fees – now at $1.7 for the transit of 1000 cubic metres of gas for 100km, worth about 100 million leva a year – paid by Gazprom. Traikov said in February that the fees were half the amount Gazprom pays other countries.