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Basic Political Developments Medvedev to make statement on US ABM - President Dmitry Medvedev is due to
make a statement later today to enumerate Russia’s tit-for-tat for a deployment of the US ABM system in Europe. The RIA-Novosti news agency quotes a high-ranking Kremlin source as saying that the Russian leader’s statement will be broadcast today in the afternoon.
o Russia to retaliate for US ABM deployment in Europeo Russia has every opportunity to respond to U.S. missile defense, experts
say Russia ready to assist Western Sahara settlement - Russia is ready to assist the
Western Sahara settlement, the Foreign Ministry said on Tuesday in comment on a Moscow meeting of Deputy Foreign Minister Gennady Gatilov and the Algerian ambassador.
United States halts cooperation with Russia on CFE arms treaty Transdniestria talks to begin in Vilnius Nov 30 - Lavrov
o Russian troops should be withdrawn from Transnistria: Moldovan president
European missile-defense system could spoil Euro-Atlantic dialogue – Lavrov Luxembourg, Russia Ink DTA Amendment - During a recent visit to Moscow,
Luxembourg’s Finance Minister Luc Frieden and Finance Minister of the Russian Federation Anton Silouyanov signed an amendment to the existing bilateral agreement between Luxembourg and Russia, designed to avoid double taxation and to prevent tax evasion in the area of taxes on wealth and on income.
Philippine-Russian Business Council formed - For the Philippines, she said, the development should translate to more tourists, more trade, and more investments from Russia. This should also further open the Russian economy for more exports from the Philippines.
Kazakh Agriculture Ministry denies a Russian ban on Kazakh wheat import - Earlier Kazakh and Russian media reported about prohibition of import of Kazakh wheat by Russia referring to its multi-weed content. "However, the quarantine examination into grains did not reveal any weed in Kazakh wheat," the ministry said.
Saakashvili: Jeers for Putin Mean 'Beginning of End for Authoritarian Rule in Russia'
Georgia will never join Russian-Kazakh-Belarusian economic union – Saakashvili Deputy Minister: Caspian littoral states likely to reach agreement on Caspian Sea
status soon - "There is great progress in many issues of the text of Convention on the status of the Caspian Sea," Khalafov told Trend in Astana on Wednesday. "We were able to reach agreement on many issues. The negotiation process is progressive in nature, many issues are coordinated, and an agreement is likely to be reached on the text of the Convention in the near future."
Iran, Russia agree to connect Persian Gulf railroad to Europe - Visiting Managing Director of Railways of Islamic Republic of Iran Abdolali Saheb Mohammadi
held talks with his Russian counterpart Vladimir Yakunin on issues of mutual interest here on Saturday.
TAJIKS SUBJECT TO COURT RULINGS WIILL BE DEPORTED FROM RUSSIA - ROMODANOVSKY
Estonian pilot set free by Tajik court, to leave for St Petersburgo Pravda: What was the point for Tajikistan to arrange scandal with Russia?
- Hopefully, in the future Russian diplomats will pay attention to the wrongful acts committed with their fellow citizens from the outset, not only in Tajikistan but in any other country. Hopefully, they will not wait six months until the court proceedings start, or until the media will be filled with publications and reports. Protection of the citizens is the matter of national prestige. Otherwise, other countries will continue to wipe their feet at the Russian citizens and the country as a whole.
FMS banishes 8 thousand migrants from Moscow since autumn – source: “While from beginning of the year to September we banished 4,000 migrants, but from September 9 to early November – over 8,000,” Romadanovsky said. “Thus, we have cleaned Moscow a bit.”
o Foreigners commit just 3.4% of all crimes in Russia - FMS chief Migrants will have to learn Russian - There is a new problem, we have been facing
lately, the Moskovsky Komsomolets writes. Russia’s clients suddenly lost a possibility to speak to a plumber, who comes to repair a pipe, or to a cashier who makes a mistake in a receipt. The reason is that this specialist may have a command of Kyrgyz or Tajik, but the client does not speak any of those languages.
Turkish workers claim being kept by force at construction sites in Chechnya - - About 400 Turkish construction workers, who build the Grozny-City and several other major facilities in Chechnya, have published on the Internet a video, where they are calling for help, the Izvestia writes.
New Ukrainian-Russian JV to start making rocket engines in 2012 - – Small rocket engines, such as the R95 used in air-to-land guided missiles, are to be produced by a Russian-Ukrainian joint venture with production facilities in Dubna (Moscow region, Russia) starting in 2012.
Russia’s Holding MRSK OAO to Buy Stake at E.ON Bulgaria - According to Kommersant’s source MRSK OAO is interested in acquiring 100% of E.ON’s assets in Bulgaria
PM Putin to address Russian parliament - "Vladimir Putin will go to the Russian Duma where he will take part in the last plenary session (before the election)," spokesman Dmitry Peskov said. "The aim is to address the deputies and to thank lawmakers for their work and cooperation with the government, especially during the rather difficult period because of the economic crisis," Peskov said.
Implementation of prez plans to be continued - Plans for the social development of the country that are being made public by the President and the Prime Minister are no election-campaign rhetoric and they are of systemic long-term nature, head of the Kremlin administration Sergei Naryshkin said in an interview published in Rossiiskaya Gazeta on Wednesday.
Naryshkin refutes speculations about Kremlin administration - government staff Right-wing forces in Russia lack strong leader – Kremlin official
Medvedev signs free legal assistance law - President Medvedev has signed a law on free legal assistance, which obliges public officers to render free legal consultations to Russian citizens and to assist socially unprotected people in drafting complaints as well as to represent them in court.
ESA specialists succeed in creating relationship with RF Phobos-Grunt Russia May Join NASA-European Mars Mission After Losing $163 Million Probe ISS crew to escape space junk Vladimir Putin communist caricatures attacked Just Russia TV ad banned for stirring ‘social strife’ Russian Diplomat Caught Drunk Driving In Poland At 15 Times Legal Limit Russian-Armenian businessman is killed with Pistol Parabellum Russian Press at a Glance, Wednesday, November 23, 2011 Moscow movie theatres refuse to show documentary about Khodorkovsky Forbes
lists the nation’s highest-paid execs - VTB first deputy head Yury Solovyev came in first – Forbes estimated the former VTB Kapital president’s compensation package at $25 million. The second place-getter was Bank Moskvy president Mikhail Kuzovlev at $15 million, while third place was taken by Sistema finance corporation president Mikhail Shamolin at $10 million.
Celebrity restaurant fad takes hold in glossy Russia - Andrei Konchalovsky, a veteran director known in the West for his Hollywood movies, such as "Runaway Train" and "Tango and Cash," opened the art-deco style Yornik restaurant with his wife Yulia Vysotskaya earlier this month.
Gabala on Russia's radar as MDS talks fizzle - "The two sides discussed the procedure of joint work to prolong till 2025 the lease contract for the Gabala radar," Kovalchyuk said. "It was agreed to step up work with the aim to agree and prepare for signature within tight deadlines a document that would formalize the agreement between Russia and Azerbaijan on the issue."
The Hidden Problems of the EurAsian Union – by George Plaschinsky is an associate analyst at the Centre for European Transformation in Minsk.
Mirror Image - Will United Russia’s Poor Image Reflect on Putin? Waiting for Russia's Next Move on Iran – by Mark Hibbs War may break out in the Caspian Sea - Competition for gas deliveries to Europe
may develop into an armed clash in the Caspian Sea, because the division of its territory continues to be the subject of international disputes, Nezavisimaya Gazeta writes.
A most wanted man: 5 years on, search still strong for Litvinenko killer
National Economic Trends Finance Ministry: Gov't ready to tackle global downturn Finance Ministry anticipates second crisis wave, cuts domestic borrowing plans GDP advances in October Russian Foreign Direct Investment Rises 43% in First Nine Months RTS Futures Climb as Brent Spurs Gazprom ADRs Higher: Russia Overnight Russia’s farmers harvested over 97 mln tons of grain in bunker weight
Surpassing the G-8 - Russia surpasses developed countries in economic growth and inflation Elena Kukol
Business, Energy or Environmental regulations or discussions Russian markets -- Factors to Watch on Nov 23 MICEX Group to approve stock options program by year's end Highland Gold buys back mine stake from Kazzinc Fortum eyes energy generation assets RosCap taps $2bn loan Otkritie targets major private pension fund Aeroflot to consider buying Airbus planes worth $2.25 bln-report Polymetal offers 531.15 rbls per share in buyback PMTL aims to buy out Polymetal minority shareholders Severstal and NMDC to ink JV pact on December 16 MTS, VimpelCom May Bid for Ukrainian 3G Company, Vedomosti Says Private investors in Sochi-2014 Olympics desperate to see returns United Grain and Dalport to Put $160M in Pacific Terminal Russia's Renova may build manganese sinter plant in South Africa
Activity in the Oil and Gas sector (including regulatory) Japanese companies may join Sakhalin-III project - Japanese companies may join
the Sakhalin-III gas project off Russia's Pacific Coast as part of a large energy deal, which Russia and Japan plan to sign in the next twelve months, a Japanese government source said on Wednesday.
Gazprom MVM May Build Hungarian Part of Gas Pipeline, Vilaggazdasag Says Gazprom, Bavaria discuss prospects for joint gas generation Gazprom - Beltransgaz deal details Gazprombank goes on roadshow with potential Eurobond Shtokman tax breaks will come – Total
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Full Text Articles
Basic Political Developments
Medvedev to make statement on US ABM http://english.ruvr.ru/2011/11/23/60876304.html
Nov 23, 2011 11:32 Moscow Time
President Dmitry Medvedev is due to make a statement later today to enumerate Russia’s tit-for-tat for a deployment of the US ABM system in Europe. The RIA-Novosti news agency quotes a high-ranking Kremlin source as saying that the Russian leader’s statement will be broadcast today in the afternoon. Russia and NATO have agreed to cooperate on the Euro-ABM project during their Lisbon summit in November 2010. But the talks reached a deadlock due to the US refusal to offer legal guarantees that the system to be deployed will not be aimed at Russia’s deterrent forces. Nor did Dmitry Medvedev’s meeting with Barack Obama in Honolulu on the 12th of this month help make progress in the talks on the issue.
(RIAN)
Russia to retaliate for US ABM deployment in Europehttp://english.ruvr.ru/2011/11/23/60871030.html
Nov 23, 2011 10:29 Moscow Time
President Dmitry Medvedev is due to make a statement shortly to enumerate Russia’s tit-for-tat for a deployment of the US ABM system in Europe. This came in a report by the RIA-Novosti news agency with reference to a high-ranking Kremlin source. Russia and NATO have agreed to cooperate on the Euro-ABM project during their Lisbon summit in November 2010. But the talks reached a deadlock due to the US refusal to offer legal guarantees that the system to be deployed will not be aimed at Russia’s deterrent forces.
(RIAN)
GOOGLE TRANSLATION
http://ria.ru/defense_safety/20111123/495638531.html
Russia has every opportunity to respond to U.S. missile defense, experts say
MOSCOW, November 23 - RIA Novosti. Russia in response to the U.S. refusal to provide assurances not being directed missile could increase the rate of release of new SS-24 "Yars", to provide equipment of nuclear warheads, missile systems "Iskander-M" to be placed in the Kaliningrad region, as well as to provide the commanders of military districts right make independent decisions on the use of tactical nuclear weapons in wartime, said a member of the Presidium of the Public Council under the Ministry of Defense Minister Igor Korotchenko.
Earlier, a senior Kremlin source told RIA Novosti that in the near future, Russian President Dmitry Medvedev will announce measures in a statement that Russia would take in response to U.S. deployment of missile defense system in Europe. Russia and NATO have agreed to collaborate on the project EUROPRO summit in November 2010 in Lisbon, but negotiations have stalled due to U.S. refusal to provide legal guarantee of not being directed against the Russian-deployed deterrent force…
22:43 22/11/2011ALL NEWS
Russia ready to assist Western Sahara settlement
http://www.itar-tass.com/en/c154/278868.html
MOSCOW, November 22 (Itar-Tass) — Russia is ready to assist the Western Sahara settlement, the Foreign Ministry said on Tuesday in comment on a Moscow meeting of Deputy Foreign Minister Gennady Gatilov and the Algerian ambassador.
“Russia confirmed its adherence to the promotion of a fair, lasting and mutually acceptable political solution, which will ensure self-determination of the people of Western Sahara in compliance with the principles and goals of the UN Charter,” the ministry said.
“The interlocutors discussed topical aspects of Russia-Algeria interaction at international organizations, primarily the UN,” the ministry said. “They also pondered the current situation in North Africa and the Middle East.”
“Russia confirmed its wish for the exclusively political settlement of problems in a number of regional countries with the broad dialog devoid of any external interference,” the ministry said.
United States halts cooperation with Russia on CFE arms treatyhttp://en.rian.ru/mlitary_news/20111123/168957689.html
06:45 23/11/2011
WASHINGTON, November 23 (RIA Novosti)
The United States has curbed its cooperation with Russia on the Conventional Forces in Europe (CFE) treaty, State Department spokeswoman Victoria Nuland said on Tuesday.
The restriction means that the United States will no longer exchange information on conventional weapons and troops with Russia four years after Russia stopped implementing the treaty in 2007.
“Today the United States announced in Vienna, Austria, that it would cease carrying out certain obligations under the Conventional Armed Forces in Europe (CFE) Treaty with regard to Russia,” Nuland said in a statement.
“This announcement in the CFE Treaty's implementation group comes after the United States and NATO Allies have tried over the past 4 years to find a diplomatic solution following Russia’s decision in 2007 to cease implementation with respect to all other 29 CFE States,” she said.
“Since then, Russia has refused to accept inspections and ceased to provide information to other CFE Treaty parties on its military forces as required by the Treaty,” she said.
The original CFE Treaty was signed in 1990 by 16 NATO countries and six Warsaw Pact members and came into force in 1992. The treaty set equal ceilings for each bloc on five key categories of conventional armaments and military hardware, including tanks, combat armored vehicles, artillery, assault helicopters and combat aircraft.
The CFE Treaty played a crucial stabilizing role during the breakup of the Soviet Union and its satellite states in Eastern Europe. However, later the document became largely outdated and irrelevant amid large-scale changes in the military and political environment.
The treaty was updated in 1999, but NATO members states refused to ratify it citing the fact that Russia was keeping troops in Georgia and the breakaway Moldovan region of Transdnestr as a pretext.
Russia imposed a unilateral moratorium on the CFE treaty in December 2007, citing concerns over NATO's eastward expansion, U.S. missile defense plans for Europe, and the refusal of alliance members to ratify the adapted treaty. Moscow has repeatedly said it will resume its participation in the CFE if NATO member states ratify the adapted treaty.
Nuland also said her country will continue implementing the treaty and carrying out all “obligations with all States Parties other than Russia, including not exceeding the numerical limits on conventional armaments and equipment established by the Treaty."
"We will resume full Treaty implementation regarding Russia if Russia resumes implementation of its Treaty obligations,” she said.
“The United States remains firmly committed to revitalizing conventional arms control in Europe. In order to increase transparency and consistent with our longstanding effort to promote stability and build confidence in Europe, the United States will voluntarily inform Russia of any significant change in our force posture in Europe,” she said.
11:19Transdniestria talks to begin in Vilnius Nov 30 - Lavrovhttp://www.interfax.com/news.asp
November 23, 2011 10:54
Russian troops should be withdrawn from Transnistria: Moldovan president http://www.focus-fen.net/index.php?id=n264867
23 November 2011 | 09:05 | FOCUS News AgencyHome / WorldChisinau. Moldova’s Acting President Marian Lupu raised the issue about the withdrawal of the Russian troops from the Transnistria during his meeting with Russian Foreign Minister Sergey Lavrov, Interfax reports.“Moldova is a neutral country and the Russian troops on its Transnistrian territory should be withdrawn,” Lupu said.Marian Lupu confirmed the strategic character of the relations between Moldova and Russia and backed the further development of the political dialogue between the two countries on all levels, pointing at the dynamic development of the trade-economic ties.
European missile-defense system could spoil Euro-Atlantic dialogue – Lavrovhttp://www.interfax.com/newsinf.asp?id=289357
CHISINAU. Nov 23 (Interfax) - The creation of a European missile-defense system is a problem that is most likely to spoil the relations between the Euro-Atlantic states, Russian Foreign Minister Sergei Lavrov said.
"If we try to single out one problem that is most capable of poisoning the atmosphere of the Euro-Atlantic dialogue, then certainly, this will be the unilateral plans to deploy parts of the U.S. global missile-defense system in European states under the NATO aegis," he told the alumni of the International Free University in Chisinau on Tuesday.
"These plans are being implemented with no consideration for Russia's legitimate concerns, thus undermining the principle of indivisibility of security," Lavrov said.
"The dialogue on this subject has stalled, with the parties' positions being far from one another," he said.
The search for mutually acceptable solutions to this problem will continue, but Russia still insists on obtaining reliable guarantees that the European missile-defense system will not target Russia and also demands to be allowed to make sure that the parameters of the
systems being deployed are consistent with the stated goals, the Russian foreign minister said.
"Otherwise, it can turn out that instead of strengthening the security of the U.S. and those European countries, which cooperate with it in this project, the opposite will happen - the weakening of the global and European security and stability," Lavrov said.
kk jv
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Luxembourg, Russia Ink DTA Amendmenthttp://www.tax-news.com/news/Luxembourg_Russia_Ink_DTA_Amendment____52629.html
by Ulrika Lomas, Tax-News.com, Brussels23 November 2011
During a recent visit to Moscow, Luxembourg’s Finance Minister Luc Frieden and Finance Minister of the Russian Federation Anton Silouyanov signed an amendment to the existing bilateral agreement between Luxembourg and Russia, designed to avoid double taxation and to prevent tax evasion in the area of taxes on wealth and on income.
The double taxation agreement (DTA) between the two countries was signed in Moscow on June 28, 1993.
During the course of the visit, Luxembourg’s Finance Minister Frieden held talks with his Russian counterpart Silouyanov as well as with the Deputy Finance Minister of the Russian Federation Sergey Dmitrievich Shatalov.
Commenting on the latest signing, the Luxembourg government explains in its release that the amendment was in response to efforts on the part of Luxembourg to improve provisions contained in the treaty. The government notes that the amendment reduces the tax levied on dividends from 10% currently to 5%.
As part of his latest visit to Moscow, Luc Frieden also met with President of the Central Bank of Russia Sergey Ignatiev as well as with various business leaders.
Philippine-Russian Business Council formedhttp://www.sunstar.com.ph/manila/business/2011/11/23/philippine-russian-business-council-formed-192137
Wednesday, November 23, 2011
THE Chamber of Commerce and Industry of the Russian Federation has formally approved the formation of the Russian-Philippine Business Council (RPBC), opening more trade and economic opportunities for Filipino entrepreneurs early this month.
The RPBC then signed a memorandum of agreement with the Philippine Russian Business Assembly (PRBA), which is its counterpart in the Philippines.
Honorary Consul of the Russian Federation in the Philippines Armi Lopez Garcia and president of the Philippine Russian Business Assembly said “this historic MOA signing of cooperation between the RPBC and the PRBA is a proof of the commitment of both countries to strengthen economic and cultural ties between Russia and the Philippines.”
“This strategic alliance will work hard for the business and trade development between Russia and the Philippines," Consul Garcia added.
For the Philippines, she said, the development should translate to more tourists, more trade, and more investments from Russia. This should also further open the Russian economy for more exports from the Philippines.
Approval of the formation of the Russian-Philippine Business Council last November 9 made the RPBC the 68th business council created under the Chamber of Commerce of the Russian Federation, said George Petrov, vice president of the Russian Federation's commercial and trade department.
"The RPBC will assist in the development and strengthening of mutually advantageous bilateral economic relations to businesses giving primary attention to medium-sized businesses," said Petrov.
He said the formation of the RPBC was approved because of the growing trade and economic relations between Russia and the Philippines.
"Bilateral trade turnover has considerably increased if you compare 2009 to 2010. Growth in comparison with 2009 has exceeded 80 percent. As for this year, bilateral trade turnover has exceed $713 million. It is expected that by the end of the year, goods turnover between Russia and the Philippines will pass the $1 billion mark," said Petrov.
He said growing interest from both countries in investing in transport, communications, tourism, food, telecommunications, energy and power are healthy signs of more vibrant economic relations in the future.
According to the Department of Trade and Industry (DTI), Russia shows a strong potential as a market for finished goods from the Philippines.
Data from the Bureau of Export Trade Promotion showed that Philippine exports to Russia increased by 15 percent to $39.09 million in 2009 from $33.92 million in 2008.
Top Philippine exports to Russia in 2009 were aircraft parts, desiccated coconut, carrageenan, lighters, personal care products, and banana chips.
According to the DTI, there is a steady demand for spare parts with 2.5 million Russians using imported cars. Consumption is also likely to increase for canned products, frozen crabmeat, and a range of processed seafood products including canned, pickled, bottled or smoked items.
Snack foods will also become an increasingly important part of Russia’s food culture, with particular emphasis on value-added products. The demand for more ship vessels in Russia is an opportunity for the thriving Philippine shipbuilding industry that services major shipbuilders like Tsuneishi and Hanjin.
Olga Kharlamov, first secretary of the Ministry of Foreign Affairs, said the creation of the RPBC and the MOA signing between the RPBC and the Philippine Russian Business Assembly (PRBA) is another fruitful result of the 35-year diplomatic relations between Russia and Philippines.
Kharlamov expressed hope that the PRBC will further contribute to the strengthening of political, business and diplomatic ties between the two countries. (PR)
Kazakh Agriculture Ministry denies a Russian ban on Kazakh wheat importhttp://en.trend.az/capital/business/1960705.html
23 November 2011, 12:42 (GMT+04:00)
Azerbaijan, Baku, Nov. 23 / Trend E. Kosolapova/
Kazakhstan's Agriculture Ministry denied media reports about a ban on Kazakh wheat import by Russia, Kazakhstan Today reported.
"The reports about ban on Kazakh wheat imports by Russia are wrong," the Ministry of Agriculture said. "Rosselkhoznadzor [Russian Federal Service for Veterinary and Phytosanitary Surveillance] did not impose any ban on import of Kazakh wheat."
Earlier Kazakh and Russian media reported about prohibition of import of Kazakh wheat
by Russia referring to its multi-weed content
"However, the quarantine examination into grains did not reveal any weed in Kazakh wheat," the ministry said.
According to Rosselkhoznadzor offices in Krasnodar region and Adygea Republic, carriages with Kazakh grain were not returned to Kazakhstan and were re-exported in the right destination - to Turkey.
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Saakashvili: Jeers for Putin Mean 'Beginning of End for Authoritarian Rule in Russia'http://www.civil.ge/eng/article.php?id=24174
Civil Georgia, Tbilisi / 22 Nov.'11 / 21:17
‘I am sure their days are numbered’; Russia ‘wants Georgia to be its slave’; ‘Some Georgian politicians miss licking Russian soldiers’ dirty underwear’; ‘Russian Church declared a crusade for restoration of Soviet Union’;
The boos and whistles that greeted Russian Prime Minister, Vladimir Putin, when he stepped into the ring at Olympiysky Stadium in Moscow after a martial arts fight on Sunday, signaled “the beginning of the end for the authoritarian rule in Russia,” President Saakashvili said.
“You’ve seen how Putin was whistled. This is the beginning of the end for the authoritarian rule in Russia. I am sure that their days are numbered,” Saakashvili said while speaking in a televised meeting with cabinet ministers in Kutaisi on November 22.
“For Georgia today it is very important to keep the pace of development, because in Russia there also are a lot of well-disposed people – not in the Kremlin or its satellite organizations – who are delighted with our reforms,” he said.
Saakashvili said that top goal for the Russian leadership “is to topple the government” of Georgia. “Russia will even make a deal with devil – in or outside of Georgia – to achieve this,” he said.
Saakashvili made the remarks while commenting on an announcement by rating agency Standard & Poor's, which has raised Georgia’s sovereign-credit rating one notch to BB-, pointing to the country’s strong growth prospects.
“Raising Georgia’s credit rating in these conditions… means that Georgia has overcome what others would not have overcome; Georgia has accomplished actually something impossible,” Saakashvili said.
He said that in four-five years the process of Georgia becoming “a new Hong Kong, a new economic tiger of the world and the economic, cultural, tourism and political center of this region” would become irreversible.
During the same televised cabinet sitting, Saakashvili also said that in the past Russian military barracks were located on the place where now new development projects were underway in Kutaisi, where Russian soldiers “were hanging their dirty underwear.”
“Some Georgian politicians miss licking that underwear; but that’s not what the Georgian people want. We want to go where our future will be protected,” he said without naming any of the Georgian politician.
“You know that the Russian [Orthodox] Church has declared a crusade for restoration of the Soviet Union, that means, for putting an end to Georgia’s independence,” he said, apparently referring to remarks by head of the Russian Orthodox Church, Kirill, who said last week that the collapse of the Soviet Union was negative.
He said that Russia “wants Georgia to be its slave.” “So if someone wants to follow this path, let them take a one-way ticket for Kutaisi-Moscow flight,” Saakashvili said. “We will have such flights from Kutaisi – we will send there forever those politicians who want to be with them [Russia] and we will receive from there Russian tourists, who will gradually replace Russian tanks and Russian soldiers here.”
November 23, 2011 12:20
Georgia will never join Russian-Kazakh-Belarusian economic union – Saakashvilihttp://www.interfax.com/newsinf.asp?id=289405
TBILISI. Nov 23 (Interfax) - Georgia will never join the Eurasian economic union being set up by Russia, Kazakhstan and Belarus, Georgian President Mikheil Saakashvili said.
"Russia's current leaders morbidly hate the Georgian people. It's not that they hate Saakashvili personally. They hated [former Georgian President Eduard] Shevardnadze before, and they will hate Georgian presidents to come. This is an instinct produced by imperial thinking. And this thinking is not an attribute of Russian leaders alone. The Russian church has declared a crusade to restore the Soviet Union, meaning, for the slow-
witted ones, to terminate Georgia's independence," Saakashvili said in Kutaisi on Tuesday.
"The matter is not about their wish to hang the Georgian leader by some part of his body," Saakashvili said, apparently referring to rumors that Russian Prime Minister Vladimir Putin had threatened to hang Saakashvili by the balls in a private conversation with his entourage soon after the 2008 armed conflict in South Ossetia.
"I would be glad to send all parts of my body to them [Russian leaders] if only they returned at least some parts of our territory to us. But the matter is not about me. They want to have Georgia as a country of slaves, and therefore our road to them is closed. And if some of our politicians want to go to them, go ahead, but forever," Saakashvili said.
va jv
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Deputy Minister: Caspian littoral states likely to reach agreement on Caspian Sea status soonhttp://en.trend.az/news/politics/1960663.html
23 November 2011, 12:31 (GMT+04:00)
Kazakhstan, Astana, Nov. 23 / Trend K.Konyrova /
The Caspian littoral states are likely to reach an agreement on the text of the Convention on the Caspian status in the near future, Azerbaijani Deputy Foreign Minister Khalaf Khalafov believes.
"There is great progress in many issues of the text of Convention on the status of the Caspian Sea," Khalafov told Trend in Astana on Wednesday. "We were able to reach agreement on many issues. The negotiation process is progressive in nature, many issues are coordinated, and an agreement is likely to be reached on the text of the Convention in the near future."
Khalafov is attending the 30th meeting of the Ad Hoc Working Group on the Convention on legal status of the Caspian Sea, which is underway in the capital of Kazakhstan."The parties have the will and desire to resolve all issues regarding the Caspian Sea's status, there are similar positions, and we are optimistic on the coordination the text as a whole," Khalafov said.
Unresolved issues on the text of the Convention are not an obstacle to the implementation of energy transportation projects, as there is both local and international understanding, he said.
Russia and Kazakhstan signed in July 1998 an agreement on the delineation of the northern part of the Caspian Sea to exercise sovereign rights for subsoil use.
Kazakhstan and Azerbaijan signed an agreement on the delineation of the Caspian Sea on Nov. 29, 2001, and Feb. 27, 2003.
Kazakhstan, Azerbaijan and Russia signed an agreement on the delineation of adjacent sections of the Caspian Sea on May 14, 2003.
In November 2003, the Caspian countries signed the Framework Convention for the Protection of the Marine Environment of the Caspian Sea.
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Iran, Russia agree to connect Persian Gulf railroad to Europe http://www.irna.ir/ENNewsShow.aspx?NID=30670178
Moscow, Nov 19, IRNA – Visiting Managing Director of Railways of Islamic Republic of Iran Abdolali Saheb Mohammadi held talks with his Russian counterpart Vladimir Yakunin on issues of mutual interest here on Saturday.
The meeting was held on the sideline of Russian Railway Conference currently underway in Moscow.
The two sides underlined the need for linking Bandar Abbas to Europe via Russia.
Iranian and Russian officials described the move as a valuable step towards fostering Tehran-Moscow railroad transportation and completion of North-South corridor.
The current visit to Moscow of the Iranian Railways chief is taking place at the invitation of his Russian counterpart to participate in the Russian Railway Conference.
The second Russian Railway Conference opened in Moscow on Friday. The event will be wrapped up on Sunday.
The congress is intended to address several issues including improvement of the railway
infrastructure, soliciting new investment, strengthening public-private partnerships, development of a network of express trains and high-speed rail routes, and introduction of advanced information technology to rail transport.
More than 3,000 officials and railway experts from Russia and 15 regional and world countries are participating in the event.
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11:22TAJIKS SUBJECT TO COURT RULINGS WIILL BE DEPORTED FROM RUSSIA - ROMODANOVSKY
http://www.interfax.com/news.asp
11:38 23/11/2011ALL NEWS
Estonian pilot set free by Tajik court, to leave for St Petersburg
http://www.itar-tass.com/en/c154/279182.html
DUSHANBE, November 23 (Itar-Tass) — Estonian pilot Alexei Rudenko leaves for St.Petersburg by plane on Wednesday, a Russian Embassy official told Itar-Tass. Rudenko, together with his colleague, Russian pilot Vladimir Sadovnichy, was set free by the Khatlon region court on Tuesday.
"Alexei is accompanied by Estonian consul in Kazakhstan and Tajikistan Margus Solnson," political advisor to the Russian ambassador to Tajikistan Dmitry Kabayev said, explaining that Rudenko was taking a shortcut to Estonia.
Solnson and Kabayev attended the final session of the court in the town of Kurgan-Tyube.
Vladimir Sadovinichy will fly to Moscow on Thursday morning.
"At present, Sadovnichy, his son Vladimir and friend Alexander Sukhorukov -- who arrived from the Russian capital -- are on the premises of the diplomatic mission," Russian envoy to Tajikistan Yuri Popov said.
The pilot's health is satisfactory. Sadovnichy might speak at a news conference on Wednesday afternoon, the envoy added.
On Tuesday, the appeals board of the Khatlon district court in Tajikistan overturned the guilty verdict for two pilots of the Rolkan company, sentenced to 8.5 years for violating Tajik air space. The pilots were set free in the courtroom.
The commanders of An-72 crews flew food supplies for NATO forces in Afghanistan. The planes belonged to the Rolkan company registered in an offshore zone on the Virgin Islands.
After the expiration of the contract, they flew to the Tajik town of Kurgan-Tyube, having obtained preliminary permission for border crossing from the republic's aviation authorities.
However, when both planes were still in flight, the pilots received a message saying that permission to land had been denied.
They had no technical opportunities to return to Kabul’s airport, and the pilots, in order not to risk the lives of the crews, requested emergency landing.
After the landing, Tajik secret services detained them, and on May 12, they were charged with violation of rules of international flights, contraband and illegal border crossing in collusion with a group of persons.
On November 8, the Kurgan-Tyube court sentenced them to 10.5 years in a maximum security penitentiary, but the effective presidential amnesty commuted the jail term to 8.5 years. The amnesty is effective until December 1.
The pilots called the verdict "absurd," while their lawyer Boboyev characterized the court's conclusions as based on "versions and suppositions."
The trial caused a public stir, and evoked a negative reaction from the Russian society and leadership.
A week after the trial, Tajik Prosecutor Sherkhom Salimzoda said the verdict was "too harsh," expressing the hope that "taking into account the exceptional nature of the case in exceptional circumstances, the penalty could be meted out below the lowest limit."
What was the point for Tajikistan to arrange scandal with Russia?http://english.pravda.ru/russia/politics/23-11-2011/119715-tajikistan-0/
23.11.2011
In Tajikistan, a decision has been made on the appeal regarding the sentence for two Russian pilots accused of smuggling. Russian citizen Vladimir Sadovnichy and his colleague from Estonia Alexei Rudenko were released from custody.
The story has been ongoing for several months. Until March of 2011, two AN-72 aircraft that belonged to Rolkan Investments Ltd and operated by Sadovnichy and Rudenko were engaged in the delivery of humanitarian aid to Afghanistan. By the spring their contract has expired, and the pilots were going to fly to Russia through Tajik airspace. Without permission of the authorities of Tajikistan such flight would be impossible.
However, while approaching the airport of the Tajik city of Kurgan-Tube the air traffic controller suddenly announced that the aircraft did not have a permit to fly through the Tajik territory. The plane did not have sufficient fuel to return to Kabul. Even if they did have the fuel, they would have to seek a special permission because otherwise the NATO forces would have every right to bring down the airliner. They had to land in Kurgan-Tube, where the pilots were immediately detained by the National Security Committee of Tajikistan.
Then things took a nasty turn. The pilots were put in jail, charged with illegal border crossing, violating international flight rules and smuggling. The charges were more than strange. First, the issues of the flights of aircraft chartered by international missions are solved in advance. Accordingly, the violation of flight rules and illegal border crossing are unlikely to have taken place. As for smuggling, they had nothing but an old engine.
Different theories of what have happened emerged. One of them had to do with the fact that the Tajik authorities wanted to exchange pilots for the family members of one of the local high-ranking officials who are serving long sentences in Russia for the distribution of heroin. The second theory was that the Tajiks needed an aircraft An-72, and decided to "pocket" it in this original way. In any case, the legal grounds for the detention of the pilots were very loose.
In this situation, many questions were raised about the work of the Consulate of Russia in Tajikistan. It did not manifest itself until October 6 when the court of Kurgan-Tube began the process and the prosecutor asked that the pilots were sentenced to 15 years in prison on a very dubious charge. Sadovnichy fell ill in jail. Trying to justify their behavior, the diplomats said they acted quietly, not wanting to hurt the pilots. However, such an explanation did not look very convincing.
"The situation developed this way largely because the issue of pilots in distress was ignored. Perhaps, just because they did not want to interfere. This proves once again that in many respects in our development we are moving by inertia of previous years, when the fate of each individual person did not cause much concern of a seemingly large and strong, as were are positioning ourselves, at least in words, power. This trend must be resolutely stopped, "said in an interview with Pravda.Ru Konstantin Zatulin, a Russian diplomat, MP of State Duma, director of the Institute of CIS and Baltic.
Only when on November 8 the court sentenced Sadovnichy and Rudenko to 8.5 years in prison and nearly all the media reported it, the diplomats began fussing and brought the case to the attention of all senior leadership in Russia. Dmitry Medvedev instructed to work out all the possible channels for rescuing the captives. Foreign Minister Sergei Lavrov spoke several times with his Tajik counterpart Hamrokhon Zarifi. Russian Ambassador Yuri Popov in Dushanbe twice discussed the topic of the release of the pilots with President Emomali Rahmon.
In parallel, by a decision of the Federal Migration Service (FMS) hundreds of Tajik guest workers were deported from Moscow. The authorities started talking about the fact that the percentage of crimes committed by Tajik citizens in Russia is very high. The head of Rospotrebnadzor Gennady Onishchenko asked to consider banning the entry at all migrant workers from Tajikistan due to the fact that they are infected with many dangerous diseases.
In addition, there have been considerable discussions in Russia about the introduction of visa regime with Tajikistan and imposing a special tax on bank transfers to this country. The fate of the property belonging to the Tajik leadership located on the territory of Russia was also discussed. Given the fact that transfers from Russia account for half of Tajik GDP, Rakhmonov and his staff could not but listen to the demands coming from Russia.
Now not only the pilots' defenders but also prosecutors appealed the sentence of Sadovnichy and Rudenko. When November 22 meeting of the court began in the Khatlon region, the prosecution tried to save face and make it look like the charges have not been dropped but the pilots have been released. They employed a pretty clever scheme.
The prosecutor asked the court to recognize the pilots as guilty of violating the air space, which means two years in prison. For the violation of flights they would be sentenced to one and a half years, but by partial addition the general term of punishment came up to 2.5 years. Sadovnichy and Rudenko have already served six months, and those who had two years in jail left are subject to amnesty. As a result, the pilots were released.
Russia, albeit late, stood up for its citizens (Rudenko was protected by Estonia). A very significant role in the happy end of this story was played by an enormous attention drawn to the process by the media. In many ways it was the media that made the Russian diplomats move and work properly. The country's leadership has shown that it can pay attention to the troubles of its citizens overseas, regardless of the positions of these citizens.
Hopefully, in the future Russian diplomats will pay attention to the wrongful acts committed with their fellow citizens from the outset, not only in Tajikistan but in any other country. Hopefully, they will not wait six months until the court proceedings start, or until the media will be filled with publications and reports. Protection of the citizens is the matter of national prestige. Otherwise, other countries will continue to wipe their feet at the Russian citizens and the country as a whole.
Vadim Trukhachev
Pravda.Ru
12:48 23/11/2011ALL NEWS
FMS banishes 8 thousand migrants from Moscow since autumn - source
http://www.itar-tass.com/en/c154/279300.html
MOSCOW, November 23 (Itar-Tass) — Russia’s Federal Migration Service /FMS/ built up since autumn its work on banishing of illegal migrants, and from September through to November it has turned out 8,000 people, the service’s Director Konstantin Romadanovsky said on Wednesday.
He explained that on September 9, the migration question was on the agenda of the meeting with Moscow’s Mayor Sergei Sobyanin and the police officials.
“While from beginning of the year to September we banished 4,000 migrants, but from September 9 to early November – over 8,000,” Romadanovsky said. “Thus, we have cleaned Moscow a bit.”
He explained that during his meeting with Russia’s president on November 10, he had reported to him results of that work.
November 23, 2011 12:48
Foreigners commit just 3.4% of all crimes in Russia - FMS chiefhttp://www.interfax.com/newsinf.asp?id=289415
MOSCOW. Nov 23 (Interfax) - The Federal Migration Service (FMS) has dismissed reports about a growing number of crimes committed by foreign migrant workers.
The share of crimes committed by foreigners in the total crime picture is insignificant, FMS Director Konstantin Romodanovsky told journalists in Moscow on Wednesday.
"The migrant crime rate remained the same at 3.4%," the FMS chief said.
Some people do not see the difference between foreign and internal migrants, Romodanovsky said. Internal migrants are people from other Russian cities and towns.
kk jv
(Our editorial staff can be reached at [email protected])
13:05 23/11/2011RUSSIAN PRESS REVIEW
Migrants will have to learn Russian
http://www.itar-tass.com/en/c142/279315.html
MOSCOW, November 23 (Itar-Tass World Service) - Russia’s State Duma has approved in the first reading addendums to the Law “On legal status of foreign citizens in the Russian Federation,” which make migrants obliged to present documents proving their basic command of the Russian language as they get employed in trade, house maintenance and service sectors. This law will favour lowering inter-national conflicts.
Migrants will have to prove the command of the Russian language in advance, that is prior to their entering the territory of Russia, and besides, they should have a document proving the knowledge, the Komsomolskaya Pravda writes. At the same time, a state document on completion of education until September 1, 1991 in the territory of the former Soviet Union or in the territory of Russia following September 1, 1991 may be a proof of knowledge of the Russian language. Another legal proof will be a certificate about passing a test in the Russian language, issued in compliance with requirements of Russia’s ministry of education. According to the requirements, an applicant should be able to read simple texts from different sources, to write a short letter, a greeting, to give a summary of a source-text using given questions.
There is a new problem, we have been facing lately, the Moskovsky Komsomolets writes. Russia’s clients suddenly lost a possibility to speak to a plumber, who comes to repair a pipe, or to a cashier who makes a mistake in a receipt. The reason is that this specialist may have a command of Kyrgyz or Tajik, but the client does not speak any of those languages.
Now this linguistic conflict will be solved.
By the way, “command of the Russian language is not only an obligation for a migrant, but also a protection from possible violation of his or her rights,” the State Duma
stressed. “Besides, this measure will favour promotion of the Russian language in the CIS space, and will lower risks of social tension in the society.” Russia is not a pioneer in the approach of the kind: many countries receiving migrants massively have a norm, where migrants should know the state language. The list of countries includes for example the USA, Germany, Australia or New Zealand, the newspaper concludes.
13:06 23/11/2011RUSSIAN PRESS REVIEW
Turkish workers claim being kept by force at construction sites in Chechnya
http://www.itar-tass.com/en/c142/279316.html
MOSCOW, November 23 (Itar-Tass World Service) - About 400 Turkish construction workers, who build the Grozny-City and several other major facilities in Chechnya, have published on the Internet a video, where they are calling for help, the Izvestia writes. They claim that for several months they have been hostages in Chechnya: they are not receiving wages and the armed security keeps them at construction sites. Chechnya’s authorities and Turkish diplomats try to settle the situation.
The video clip shows the workers who say that in early summer of 2011 they were recruited for work at Chechnya’s major construction sites in Grozny, Gudermes and Argun. Turkey’s Penta Company with headquarters in Ankara is the contractor, the newspaper reports.
First of all, workers from Turkey were sent to build the Grozny-City – a complex of skyscrapers in Chechnya’s capital. The complex was opened with fanfare in October of the current year. The construction workers claim that in the beginning, the employer paid them properly, but payments’ delays began in two months already. Having waited for the wages for two months, the workers announced an ultimatum: they are ready to stop all the work if the debt is not covered. The construction’s managers reacted strangely to the demand: they send armed guard to the construction site, which did not allow the workers to leave the site.
Turkey’s 380 workers were in captivity. They began complaining over phones to their relatives, and later on published on the Internet their address to Turkey’s authorities. Turkey’s foreign ministry confirmed to the Izvestia that they had received the message from their citizens and were trying to clear out the situation.
Chechnya’s authorities learned about the problems of the Turkish workers from the Izvestia’s reporter. The government of the republic called for the contractor, which employed the foreigners. As yet, there are no proofs of the conflict with the workers. “We have not found proofs for captivity of the workers by the armed guard at the construction sites,” Ramzan Kadyrov’s administration told the newspaper. “What we are facing are
difficulties with sending workers to Turkey – some foreigners had problems with documents. Anyway, the hiring company should be responsible for the people.”
The Penta Company told the newspaper that the Turkish workers had blown up the scandal themselves. “They are behaving like children: just a little debt and they run to complain,” the company’s representative at Grozny, Elshan, told the Izvestia. “Believe me, they are fine – they have hot meals, live in hostels.” According to Elshan, most workers already now have an opportunity to return to Turkey.
New Ukrainian-Russian JV to start making rocket engines in 2012 http://www.ukrainianjournal.com/index.php?w=article&id=13563
Journal Staff Report
MOSCOW, Nov. 22 – Small rocket engines, such as the R95 used in air-to-land guided missiles, are to be produced by a Russian-Ukrainian joint venture with production facilities in Dubna (Moscow region, Russia) starting in 2012.
"The JV is being created not only to service and repair the R95 rocket motors, but also to produce new ones," Board Chairman of Vladimir Klimov-Motor Sich JV, Anatoly Sitnov.
He said that the JV in Dubna would be ready to start SKD assembly of the new motors in 2012.
23.11.2011 10:17Russia’s Holding MRSK OAO to Buy Stake at E.ON Bulgaria
http://www.publics.bg/en/news/6378/Russia%E2%80%99s_Holding_MRSK_OAO_to_Buy_Stake_at_E_ON_Bulgaria.html
According to Kommersant’s source MRSK OAO is interested in acquiring 100% of E.ON’s assets in BulgariaRussian state-owned company Holding MRSK OAO is among the candidates for the state’s 33% stake at E.ON Bulgaria, Kommersant daily reported. Another candidate is electricity distribution company CEZ.
According to Kommersant’s source MRSK OAO is interested in acquiring 100% of E.ON’s assets in Bulgaria. E.ON have declined to comment on this information, Kommersant further informed. If the deal becomes reality, this would be MRSK OAO's first foreign asset.
PM Putin to address Russian parliamenthttp://af.reuters.com/article/energyOilNews/idAFL5E7MN0AE20111123
Wed Nov 23, 2011 7:46am GMT
MOSCOW Nov 23 (Reuters) - Russian Prime Minister Vladimir Putin will address the lower house of parliament on Wednesday at its last session before an election, his spokesman said.
Putin's ruling United Russia party is expected to win the Dec. 4 parliamentary election although it is unclear whether it will retain all of its 315 seats in the lower chamber, the State Duma.
"Vladimir Putin will go to the Russian Duma where he will take part in the last plenary session (before the election)," spokesman Dmitry Peskov said.
"The aim is to address the deputies and to thank lawmakers for their work and cooperation with the government, especially during the rather difficult period because of the economic crisis," Peskov said.
Putin's protege, President Dmitry Medvedev, is leading the ruling party into the parliamentary election. If the party does well, Putin has lined up Medvedev to become his prime minister after the March presidential election.
Polls show the party is likely to win the election although it is unclear if it will retain the more than two thirds of seats it needs in the 450-seat chamber to push through constitutional amendments.
The Communist Party has 57 seats. The nationalist LDPR party has 40 seats and the Just Russia party has 38 seats. (Reporting by Gleb Bryanski, Writing by Guy Faulconbridge, Editing by Timothy Heritage)
06:39 23/11/2011Top News
Implementation of prez plans to be continued
http://www.itar-tass.com/en/c32/279010.html
MOSCOW, November 23 (Itar-Tass) — Plans for the social development of the country that are being made public by the President and the Prime Minister are no election-campaign rhetoric and they are of systemic long-term nature, head of the Kremlin administration Sergei Naryshkin said in an interview published in Rossiiskaya Gazeta on Wednesday.
"The attention of the State to matters concerning the social development of the country is not of election-campaign character eithr but is a priority which, I am sure, will be maintained subsequently as well," he said.
"Throughout the past decade the President and the Government made decisions in the interests of developing, first of all, the social welfare sector, for the benefit of less-protected sections of the population: pensioners, veterans, children, families with many children, and so on," the presidential administration chief recalled.
Naryshkin pointed out that social directionality would also keep on in the event of contraction of oil and gas revenue, in particular. "I believe that a decline in oil prices if they are not out-of-limit, will not become critical for the Russian economy," he said.
"The government and other bodies of authority have already learned to function effectively under conditions of recessional phenomena: the world economic downturn of 2008-2009 showed that we are quite capable of drawing up and implementing such an anti-recession program that would make it possible to get out of any situation with the least outlay," Naryshkin emphasized.
02:15 23/11/2011ALL NEWS
Naryshkin refutes speculations about Kremlin administration - government staff
http://www.itar-tass.com/en/c154/278950.html
MOSCOW, November 23 (Itar-Tass) — Head of the Kremlin administration Sergei Naryshkin has refuted speculations about an alleged antagonism between the presidential administration of the Russian Federation and the government staff.
"I am stating quite definitely that there has been no antagonism if only because there is no ground for thatt,"Naryshkn said in an interview published in Rossiiskaya Gazeta on Wednesday.
"The government staff and the presidential administration are two entities that ensure the work of the two top state-power institutions; the President and the Government are working concertedly, on the basis of a common programme and relying on a common political platform," he added.
"Such rumours are being spread by people who wish to appear, in the eyes of those around them, as informed persons having special sources of information," Naryshkin believes. "Going wrong are sorry experts and sorry journalists; there may be also other, far more selfish reasons," he added.
The head of the presidential administration acknowledged that a difference in approaches does happen to arise in the Kremlin and the Government House.
"Really, with regard to some definite matters, differing points of view can arise in the government stfaff and the presidential administration, but that cannot be referred to as antagonism," he said. "The availability of differing points of view is a normal and even positive phenomenon in any (kind of) work, including administrative one," Naryshkin pointed out.
08:21 23/11/2011ALL NEWS
Right-wing forces in Russia lack strong leader – Kremlin official
http://www.itar-tass.com/en/c154/279032.html
MOSCOW, November 23 (Itar-Tass) — Russia’s right-wing forces lack a strong leader, the head of the Kremlin administration, Sergei Naryshkin, said in an interview with the Rossiyskaya Gazeta newspaper on Wednesday.
“It is obvious that the right-wing flank does not have enough efficient and responsible leaders. Unfortunately,” Naryshkin said, calling that a subjective factor.
“You will agree that the political landscape in the country is shaped first of all on the basis of those political moods that exist in the society,” he noted. “The weakness of these moods explains a relative inexpressiveness of the right wing of the political field,” the Kremlin official stressed.
At the same time, he dismisses the possibility that lift-wing forces will get the majority of votes at the upcoming parliamentary election, due on December 4. “You and I, we don’t believe fantastic forecasts,” he said. “But the main thing is that I am confident the Communist Party of the Russian Federation (CPRF) itself does not want the development of the situation under this fantastic scenario,” he added.
“In my opinion, there is only one political force in the country at the moment, which is not afraid of responsibility for the present and the future development of the country, and is capable to take this responsibility,” Naryshkin stressed.
Medvedev signs free legal assistance lawhttp://en.infosud.ru/legislation_news/20111123/257583422.html
11:28 23/11/2011
MOSCOW, November 23 - RAPSI. President Medvedev has signed a law on free legal assistance, which obliges public officers to render free legal consultations to Russian citizens and to assist socially unprotected people in drafting complaints as well as to represent them in court.
The law is expected to come into force on January 15, 2012.
Pursuant to the current legislation, free legal assistance must be provided to poor and disadvantaged people.
Those lawyers, who will render free legal services, are expected to be paid by appropriate bars.
12:30 23/11/2011Top News
ESA specialists succeed in creating relationship with RF Phobos-Grunt
http://www.itar-tass.com/en/c32/279285.html
MOSCOW, November 23 (Itar-Tass) — Specialists of the European Space Agency (ESA) have succeeded in creating relationship with the Russian spacecraft, Phobos-Grunt, which is currently on the low earth orbit.
“We succeeded in creating relationship with the spacecraft. But till now there have been no information, head of the ESA Moscow Office Rene Pischel told Itar-Tass on Wednesday.
“At present, we are working further with our Russian colleagues in order to decide what will do farther,” Pischel said.
The second stage of a Zenit launch vehicle, which carried the 5-billion-ruble Phobos-Grunt interplanetary research rover towards Mars on November 9, may fall down at 9:33 p.m. Moscow time plus-minus eight hours, the U.S. Strategic Command said.
According to the preliminary forecast, the stage fragments may fall over the Himalayas.
The U.S. Strategic Command still forecasts the fall of Phobos-Grunt fragments for November 26. A deviation of one or two weeks is possible.
The rover was lifted off Baikonur with a Zenit-2SB rocket at 00:16 a.m. on November 9. It was put to a low orbit from where the rover was supposed to fly to Mars. For a still unclear reason the engine did not turn on. Attempts to contact the rover have been taken to no avail.
The rover stays on a low orbit “and seems to live its own life ignoring commands from the Earth,” a Russian aero-space industry expert said. “The station’s orbit is not declining, and that is surprising. It seems the rover is orienting by the Sun and its engines keep the rover in orbit. The fuel leak as a possible reason for the basically steady orbit is not an option, because the rover levels its orbit from time to time,” he said.
Federal Space Agency press secretary Vitaly Davydov said on Tuesday that the cause of the off-normal situation was still unknown. “Unfortunately, we have no telemetric data. We simply do not understand what is going on there. The most interesting is that the rover’s flight is not erratic,” he said.
Davydov thinks that Phobos-Grunt fragments may tumble down in a period from late December through February. The possible area in which the fragments may fall over will become know a day in advance, he said.
The rover’s total weight is 13,505 kilograms, including 7,150 kilograms of highly toxic fuel in the booster, 1,050 kilograms of fuel in the flight module and 135 kilograms of fuel in the landing capsule. The rover carries a spectrometer with two gamma emission sources using cobalt 57. Space Research Institute Director Lev Zelyony said the sources were not dangerous due to their tiny size.
The Phobos Grunt launch has been delayed repeatedly since 2009. The vehicle was supposed to reach Mars and spend several months in orbit to choose the best place for landing on Phobos. A landing capsule was due to separate and to reach the moon surface for collecting relic substance, which, in the opinion of scientists, might have formed planets of the solar system. The samples were to be taken to the Earth.
An automatic station was supposed to stay on Phobos to continue the study and to monitor the local climate and circumplanetary space. The station was due to test prospective technologies of Martian flights.
Also, Phobos Grunt was supposed to bring a Chinese micro-satellite to the Martian orbit and joint experiments will be held. The Chinese satellite Yinghuo-1 (or Firefly Light-1) was planned to be placed on Martian orbit within the framework of the joint Russian-Chinese Mars exploration agreement signed in 2007.
In all, Phobos Grunt is carrying over 20 research instruments.
The Soviet Union began its Martian program in October 1960. There were two launches in 1960 and three more in 1962. Four launches were abortive, and only Mars 1 went to space on November 1, 1962. However, contact with it was lost.
Two automatic interplanetary stations, Mars 2 and Mars 3, were launched in May 1971. Mars 2 delivered a capsule with the Soviet state emblem to Mars. The landing vehicle of Mars 3 touched down on December 2. Nevertheless, no information was collected. Four Mars vehicles came to the Martian orbit in 1974, and Mars 6 landed in the Mars southern hemisphere.
Two Phobos rovers were launched in July 1988 for studying Mars and its moon. The first one was lost on the way to Mars and the other reached the Martian orbit. In two months of its work Phobos 2 transmitted information about temperature fluctuations on the Martian surface and 38 images of Phobos.
The latest Martian mission in November 1996 failed. Mars 96 could not reach the designated orbit and was lost. It was an international project.
In all, 20 domestic rovers were sent to Mars since October 1960 and twelve of the missions flopped.
Russia May Join NASA-European Mars Mission After Losing $163 Million Probehttp://www.bloomberg.com/news/2011-11-23/russia-may-join-nasa-european-mars-mission-after-losing-163-million-probe.html
QBy Ilya Arkhipov and Lyubov Pronina - Nov 23, 2011 8:41 AM GMT+0100
Russia may accept an invitation to join U.S.-European space missions to Mars after suffering the “heavy blow” of losing a $163 million space probe bound for the second-closest planet to Earth.
Russia is talking to NASA and the European Space Agency about participating in two Mars expeditions, in 2016 and 2018, according to Vladimir Popovkin, who heads Russia’s space agency, Roscosmos. It may send exploration equipment along with the missions, or assist with the rocket that launches the ships into space, he said yesterday in an interview in Moscow.
“Missions to distant planets will become more and more international,” Popovkin said. “We’ll see what degree of participation we’re offered. We prefer the first option.”
Europe’s debt crisis is weighing on global growth, cutting funding for space projects in the U.S. and giving Russia “a window of opportunity” to join international missions, according to Yuri Karash, a member of the Russian Academy of Cosmonautics.
As well as this month’s malfunction to the Mars-bound Phobos-Grunt probe, Russia lost its most powerful telecommunications satellite and a cargo-supply ship destined for the International Space Station in August.
Mars Mission
The National Aeronautics and Space Administration and the ESA are working on the ExoMars Trace Gas Orbiter mission to be launched in 2016 for arrival at Mars nine months later. The mission aims to demonstrate entry, descent and landing technologies for future trips to the planet.
Russia and Europe may also launch an unmanned expedition to Jupiter by 2020, Popovkin said. Russia continued talks on cooperation with the ESA after the Phobos probe, built by Moscow-based NPO Lavochkin, got stuck in low-Earth orbit following its Nov. 9 launch, he added.
Russia will welcome help from NASA and the ESA to bring Phobos into a higher orbit, Popovkin said, adding that a window of opportunity to send the craft to its destination ended Nov. 19 and will re-open in about two years.
Russia may also partner China on manned space exploration in five to seven years, Popovkin said. For now, it’s working to create a craft for a crew of six people that will cost more than 10 billion rubles ($321 million) to develop and should be ready by 2020.
Investment Boost
The new vessel may benefit from increased investment in space exploration. Russia may spend 2 trillion rubles on its program between 2016 and 2025 as it eyes a manned mission to the moon, Popovkin said. Spending in 2012 should rise by 50 percent to 150 billion rubles an may double by 2015.
Unlike 50 years ago, when beating the U.S. into space marked a geopolitical victory in the Cold War, Russia is focusing on the commercial, technological and scientific aspects of space travel. President Dmitry Medvedev has named aerospace among five industries the government plans to nurture to help diversify the economy of the world’s largest energy supplier away from resource extraction.
Over the next decade, Russia will focus on the moon, with a manned mission planned for 2020-2025, Popovkin said. A manned Mars expedition may be possible after 2030, he added.
“The only way for Russia to develop state-of-the-art space technologies and keep its competitiveness in space is to focus on deep-space exploration,” said Karash, from the Academy of Cosmonautics.
Rocket Failure
The commercial space market was $267 billion in 2010, according to Popovkin, who said Russia may increase its share to as much as 20 percent by 2015 from 3 percent now.
“This will be telecommunications satellites, remote sensing, cartography and surveying services,” he said.
Russia is seeking to diversify its commercial space activities, which mainly involve transporting satellites and equipment for others. It controls 40 percent of the market for space launches, Popovkin said. By year-end he estimates Glonass, a rival to the U.S. Global Positioning System, will be fully operational, with 24 satellites.
Popovkin was appointed this year by President Dmitry Medvedev, who fired his predecessor after a Proton-M rocket failed to deliver three navigation satellites into orbit for Glonass.
To contact the reporter on this story: Ilya Arkhipov in Moscow at [email protected]
To contact the editor responsible for this story: Balazs Penz at [email protected]
ISS crew to escape space junkhttp://english.ruvr.ru/2011/11/23/60871201.html
Nov 23, 2011 10:30 Moscow Time
The ISS crew will have to take shelter in the Soyuz spacecraft later today if reports of the approaching space debris are confirmed, NASA says.
Experts say that a 10-centimeter fragment of a Chinese weather satellite which was destroyed during a trial of anti-satellite weapons in 2007 will fly by in close proximity to the station at about 12.00 Moscow time.
If all calculations confirm that the fragment will fly too close, the crew will have to escape in the Soyuz half an hour before, experts.
RIAN
Vladimir Putin communist caricatures attackedhttp://en.ria.ru/russia/20111123/168961277.html
10:45 23/11/2011
MOSCOW, November 23 (RIA Novosti)
Authorities in the central Russian city of Nizhny Novgorod have accused the communist KPRF party of illegally using the image of Prime Minister Vladimir Putin in its cartoon election leaflets.
The leaflets contain a character bearing “a 100-percent resemblance” of the Russian premier, Alexander Ivanov, the deputy head of the city’s election committee, told Kommersant daily.
“You could also recognize representatives of other political parties in the cartoon,” he said, pointing to caricatures of Sergei Mironov of A Just Russia and Vladimir Zhirinovsky of the right-wing Liberal Democratic Party.
The committee asked police to decide if the cartoon breached Putin’s image rights since the 59-year-old had not granted KPRF permission for such use.
Putin earlier allowed the ruling United Russia party to use it, although it is President Dmitry Medvedev who heads the party’s list of candidates in next month’s general election.
KPRF said it would challenge the move because permission is only required for the use of photographs, while a caricature is a “collective image in which everybody is encouraged to see whatever they wish.”
It is “an initiative of local bureaucrats who want to take the propaganda material out,” said KPRF’s senior lawyer, Vadim Solovyov.
Putin’s spokesman Dmitry Peskov said it was a “matter for the lawyers.”
Just Russia TV ad banned for stirring ‘social strife’http://www.themoscownews.com/politics/20111123/189225110.html
by Yulia Ponomareva at 23/11/2011 09:59
An election campaign ad for Just Russia has been yanked off TV for stirring up “social strife,” prompting the party’s officials to accuse the authorities of double standards.
In the left-of-center party’s ad, an elderly woman gets frustrated when she realizes that the extra pension money she’s received has to go to pay higher utility bills.
Actress Rimma Markova, a Just Russia member, is then shown saying: “They have raised it by three kopeks, while prices have grown by 200 rubles. This is just derogatory. They’ve ground people down. I’ll fight for you!”
Instructions to TV channels
The Central Elections Commission responded by banning the ad from appearing on the Rossiya national TV channel, and on several regional channels, RIA Novosti reported Just Russia officials as saying.
In a letter to TV channels, the elections commission said the ad had been pulled for inciting “social strife and hatred towards people that make decisions about pension amounts and utility prices,” Just Russia officials quoted the letter as saying.
The party’s campaign chief Oleg Mikheyev said: “So far, the ad has been banned on the national Rossiya channel and on local channels in about 15 regions where it ran.”
Sexy campaign ad
United Russia billboard ads in Moscow have mimicked election commission ads so closely that many voters have mixed them up. Meanwhile, in a recent United Russia TV ad, titled: “Let’s do it together!” a young woman is shown pulling a young man into a polling booth for what appears to be a sexual encounter.
Mikheyev said the Just Russia ad ban may well be a reaction to a flurry of complaints by the party about United Russia’s campaign tactics.
“In the Volgograd region alone, we have filed over 160 complaints against United Russia,” Mikheyev said. “The elections commission either sees no violation of the law, or takes forever to consider our complaints.
“[Vladimir] Churov should understand that he’s the head of the Central Election Commission of the Russian Federation, not the Central Election Commission of United Russia.”
Russian Diplomat Caught Drunk Driving In Poland At 15 Times Legal Limit http://www.huffingtonpost.com/2011/11/22/russian-diplomat-drunk-driving-poland_n_1108333.html
First Posted: 11/22/11 03:29 PM ET Updated: 11/22/11 05:55 PM ET
This Russian diplomat may have had more than a few too many.
The Moscow Times reports that an unidentified diplomat was pulled over near Gdansk, Poland after acting "strange," according to a police spokesperson. (h/t Fark.)
The diplomat was tested for alcohol and found to have a blood alcohol level of 0.3 percent, which, as The Register points out, is 15 times the legal limit in Poland, which requires drivers to maintain a blood alcohol level of no more than 0.02 percent. The legal limit in the United States is 0.08 percent, according to the Insurance Institute for Highway Safety. The diplomat was driving a BMW, according to the AFP.
The Register's Joe Fay writes that the diplomat is lucky to be alive.
"At that level, most people would have trouble even recognizing an object as a car never mind driving one," he writes.
Even though the diplomat allegedly broke Polish law, he was not detained because he has diplomatic immunity, the Times reports. The paper notes that the incident was reported to the Polish Foreign Ministry.
The AFP assures its readers that the diplomat was not allowed to drive himself home. A chauffeur was called to take him away.
Russian-Armenian businessman is killed with Pistol Parabellum
http://news.am/eng/news/82970.html
November 23, 2011 | 11:59
SAINT PETERSBURG. – A criminal case is launched in connection with the murder of Armenian businessman Davit Terteryan, in Saint Petersburg, Russia, RIA Novosti News Agency informed.
Saint Petersburg General Investigation Department assumes Terteryan was shot at least four times with a Luger pistol, which is also known as Parabellum, RBC Saint Petersburg, reported.
Unidentified men shot Davit Terteryan, at least four times on Tuesday evening, while he was in his Mercedes. And although he was shot, he was able to get home, but he later died in the ambulance.
According to the media, Davit Terteryan owned restaurants and a furniture manufacturing facility. He was also known among the criminal circles.
Russian Press at a Glance, Wednesday, November 23, 2011http://en.rian.ru/papers/20111123/168959727.html
09:04 23/11/2011
A brief look at what is in the Russian papers today
POLITICS
In a timely pre-election triumph for the Kremlin, Tajik authorities on Tuesday bowed to pressure from Moscow, releasing from prison a Russian pilot jailed on murky charges earlier this month.
(The Moscow Times, Kommersant)
The election committee of the Nizhny Novgorod Region on the Volga banned the regional branch of the Communist Party from distributing comics depicting Prime Minister Vladimir Putin without his consent.
(Kommersant)
The Federal Drug Control Service proposed restoring criminal responsibility for drug abuse.
(Kommersant)
ECONOMY & BUSINESS
The Finance Ministry is expecting a second wave of the crisis. This year’s budget surplus of around 200 billion rubles ($6.4bn) will be used to cut domestic borrowings in the future.
(Vedomosti)
The Transportation Ministry said the available funds are only enough to repair available roads and build new toll roads.
(Vedomosti)
SOCIETY
Prime Minister Vladimir Putin has called to clear the market of dubious transportation companies.
(Rossiiskaya Gazeta)
On Tuesday, President Dmitry Medvedev signed into law a bill that legalizes paid medical services in state facilities. Critics say it's a step toward abolishing free health care in the country.
(The Moscow Times)
Prime Minister Vladimir Putin on Tuesday mocked the amount of funding provided to athletes to cover their daily expenses in training camps, saying the money would be hardly sufficient to buy matches.
(The Moscow Times)
IT
The Odnoklassniki social network will open access to 105 million profiles of its users to web search engines. It expects the move to raise the number of its users.
(Kommersant)
SCIENCE
The Federal Space Agency (Roscosmos) admitted the failure of the Phobos-Grunt mission.
(Kommersant)
For more details on all the news in Russia today, visit our website at http://en.rian.ru.
12:10 22/11/2011RUSSIAN PRESS REVIEW
Moscow movie theatres refuse to show documentary about Khodorkovsky
http://www.itar-tass.com/en/c142/278158.html
Kommersant writes about the problems facing distributors of a documentary about Khodorkovsky, by German film director Cyril Tuschi. According to the newspaper, the beginning of its demonstration, scheduled for December 1, was practically disrupted: 19 out of 20 Moscow movie theatres refused to show it. According to Olga Papernaya, art director of CineClub stock company, which owns the right to the film, only one movie theatre, Eldar, is willing to show the film, starting from December 1.
“We received a distribution certificate for the film in September 2011 and held talks with many movie theatres and film distribution networks. A preliminary agreement on the distribution of the Khodorkovsky film was received,” Papernaya told Kommersant. “When the time came for signing contracts, our partners refused to do that. The refusals were made verbally, so we can only guess what was the reason.”
Kommersant writes that analysts of the film market refused point-blank to comment on the situation with the demonstration of the Khodorkovsky film. “You should understand it by yourself,” said one of them, who spoke on conditions of anonymity.
“I certainly do not see the hand of the Kremlin here,” Alexander Rodnyansky, a film director, the author of the notorious film about neo-fascists entitled “Russia-88,” which did not reach demonstration either, told The Kommersant. “Most probably, the owners of movie theatres are overly cautious, in order to avoid problems. The electoral campaign is going on, and anything may happen.”
Forbes lists the nation’s highest-paid execshttp://www.themoscownews.com/business/20111123/189225355.html
by Nathan Toohey at 23/11/2011 10:45
Forbes magazine has released its 2011 annual wages survey for top local executives. As in previous years, the leading business spheres include oil and heavy industries. The very highest-paid executives, however, came from the finance industry. VTB first deputy head Yury Solovyev came in first – Forbes estimated the former VTB Kapital president’s compensation package at $25 million. The second place-getter was Bank Moskvy president Mikhail Kuzovlev at $15 million, while third place was taken by Sistema finance corporation president Mikhail Shamolin at $10 million.
Crisis over
Using data provided by headhunting firms, Forbes included companies with a minimum turnover of $100 million a year. The business magazine came to the conclusion that the executive employment market had, on the whole, returned to its pre-crisis levels, with the exception of the construction industry.
“There is a feeling that the second wave of the crisis has past,” Forbes quoted Andrei Filippov, partner at Horton International executive search company, as saying. “In any case there won’t be the nightmare as it was in 2008.”
Black gold and heavy metals
On average, presidents or general directors of oil and gas companies earned $2.77 million, up 20 percent from a year ago, which made it the leading industry in terms of compensation. Top managers holding similar positions in heavy industry came next, earning $1.42 million, up 7 percent. Commercial banks came third with an average $1.41 million for top managers.
National projects
The report noted a trend towards top executives taking positions in organizations working on national projects such as the Sochi Olympics, the APEC summit, Skolkovo and the development of the Northern Caucasus. On these projects alone the government is planning to spend 540 billion rubles, the magazine reported.
Celebrity restaurant fad takes hold in glossy Russiahttp://in.reuters.com/article/2011/11/22/us-russia-restaurants-celebrity-idINTRE7AL1P720111122
Tue, Nov 22 2011
MOSCOW (Reuters) - Celebrity restaurants, long a fixture of New York and London, are now a confirmed Russian fad with the recent opening of a Moscow venue by a home-grown filmmaker raising the tally of eateries and bars backed by artists, actors, socialites.
Andrei Konchalovsky, a veteran director known in the West for his Hollywood movies, such as "Runaway Train" and "Tango and Cash," opened the art-deco style Yornik restaurant with his wife Yulia Vysotskaya earlier this month.
This followed the September opening of Chemodan, an eatery inspired by Siberia's hearty cooking and owned by Oleg Menshikov, an actor famous for his role in the 1994 Oscar-winning film "Burned by the Sun."
The venues give the celebrity restaurant fad a local flavor and follow a wave of importing famous restaurants that have already made their names elsewhere, such as Nobu.
Vadim Irushkin of Restaurants Rating, a restaurant booking and information company based in Moscow, said the trend is visible, but that celebrities are not always the sole owners.
"Big restaurant companies (also) invite famous people to be the 'first faces'," he said, citing the Russian socialite and reality TV show host Ksenia Sobchak's Byblik (Bagel) and old-time rock-pop singer Grigori Leps's karaoke bar, Leps Bar.
Those ventures are backed by the restaurant company The Ginza Project, which is also behind dozens of so-called "concept" restaurants in Moscow.
"We get a lot of requests to book tables in such places, because many people are interested in the dolce vita lifestyle," Irushkin said. "Sometimes people don't think about the food in these restaurants, it is more about being seen than anything else."
GLOSS, GLITTER AND GOLD
Moscow, one of the world's most expensive cities where dining out can cost more than an average monthly mortgage bill in the rest of the world, is very much about showing off.
Gloss, glitter and gold are not only regular themes for the fashion-conscious Muscovites, but often dictate the decor of spaces, public and private alike.
Increasingly saturated, however, with restaurants, bars and cafes, the fight for customers is getting tougher, with owners seeking to differentiate their places.
Menshikov, the owner of Chemodan (Suitcase) describes his restaurant as a "gastronomic theater" guided by 19th century Siberia. Konchalovsky's Yornik (a sly trickster) is a glossy but somber affair of tomb-grey walls, low lighting and a scattering of second-hand books.
The 74-year-old filmmaker, who rejects talk of a celebrity-restaurants trend, chose the photographs of the all-male "yorniki" on the walls: Ernest Hemingway, paunchy with a rifle, Anton Chekhov and futurist poet Vladimir Mayakovsky.
"I just wanted a place for people who like good food, where they can read," he told Reuters at the restaurant's launch.
The menu was supervised by his wife, Vysotskaya, an actress and a famous local television chef, who described it as "Russian food with a European slant."
On the menu is her creation, "gretchotto" - risotto made with buckwheat porridge - a staple of Russian cupboards.
Gretchotto is cooked with white wine and chicken stock, but vinaigrette and mascarpone have been added to lighten the dish.
Russia's largest casual dining chain operator Rosinter, estimates the country's dining market value this year at 550 million roubles ($17.64 million), with Moscow's share at 40 percent of the total.
(Reporting by Jennifer Rankin,; editing by Lidia Kelly)
Gababa on Russia's radar as MDS talks fizzle http://rt.com/politics/russia-gabala-radar-azerbajain-us-021/print/
Published: 23 November, 2011, 13:52Edited: 23 November, 2011, 13:55
As the war of words over the European missile defense shield rages on, Moscow is laying plans to modernize the Gabala radar station in Azerbaijan which is a part of its early warning system, Russian Defense Minister Anatoly Serdyukov has said.
The Soviet-built radar station, which is operated by Russian Space Forces, is capable of detecting missile launches as far away as the Indian Ocean and is “vital and useful” to national security, Serdyukov stressed.
"Increasing the capacity of the Gabala Radar Station is vital and useful for the Russian early-warning system. It is also important because of the Iranian [missile] program, although we prefer not to link it directly," the minister told journalists, adding, "We need this station."
Russia’s lease on the radar station expires in 2012 and Moscow wants to extend its contract with the Azeri government until 2025.
Admitting that the radar facility requires extensive modernization, Serdyukov also mentioned that Baku is looking to increase Russia’s rent payments on the facility.
"I don't think our Azerbaijani partners have any objections. The question is money," the minister noted. "They want to dramatically raise the rent.”
Azerbaijan’s Deputy Foreign Minister Araz Azimov said that the current lease payment is incommensurate with the value and importance of the radar, while exposing Azerbaijan to unspecified “threats and risks.”
“The attitude of governments – including Russia – to such facilities being sited in other countries gives grounds to say that it is necessary to raise payments several times,” said the Azeri official.
Russia disagrees, however, saying the newly-designed radar station that Russian envisions for the site would require far less territory, water and electricity. This would dramatically lower environmental concerns associated with the older radar system.
“We would like to have it as it is but considerably reduce the territory we are leasing,” he said. “We do not need such vast territories and so many engineering networks for a station of the new type. We will not consume so much water and electricity," explained Anatoly Serdukov.
In June 2007, the then president, Vladimir Putin, made an offer to deploy elements of the US missile defense shield in Azerbaijan, using the Gabala Radar Station jointly with Russia. Putin’s offer came following the US announcement that it was planning to deploy components of the missile shield in Poland and the Czech Republic to defend against possible missile attacks from “rogue states.”
According to the press secretary of the Russian Defence Minister, Irina Kovalchyuk, Russia and Azerbaijan are going to extend the Gabala lease contract until 2025.
"The two sides discussed the procedure of joint work to prolong till 2025 the lease contract for the Gabala radar," Kovalchyuk said. "It was agreed to step up work with the aim to agree and prepare for signature within tight deadlines a document that would formalize the agreement between Russia and Azerbaijan on the issue."
The Gabala Radar Station is a Daryal-type bistatic phased-array early warning radar. Its construction began in 1976 and it was finally commissioned in 1985. The radar's surveillance sweep covers an area of up to 6,000 kilometers (3,730 miles).
The Hidden Problems of the EurAsian Unionhttp://belarusdigest.com/story/hidden-problems-eurasian-union-6623
Published: 23 November 2011
On 18 November presidents of Belarus, Kazakhstan and Russia met in Moscow and launched the Single Economic Space. They also signed the Treaty on the Eurasian Economic Commission.
If three countries ratify these acts in the near future, on 1 July, 2012 the Customs Union’s Commission will be abolished and all its powers will be transferred to the Eurasian Economic Commission.
The Eurasian Union founders use the European integration experience as a model. However, it is hardly possible that they will form a harmonious union because of a number of political, economic and civilizational problems.
How is it supposed to function?
The main governing bodies of the Single Economic Space (SES) will be the Supreme Eurasian Economic Council of heads and prime ministers and the Eurasian Economic Commission. The Commission will also be the first major supranational institution in the post-Soviet space.
If any member country violates international agreements or the Commission’s decisions, the Commissions’ Board can bring an action against this state in the EurAsEC Court located in Minsk. Nevertheless, it is still unclear how widely its decisions will be implemented given that Russian state institutions are often reluctant to follow decisions of another supranational structure – the European Court on Human Rights.
The Commission staff will be shaped in proportion to the state’s share in distribution of the customs duties so it will be consisted of 84% Russian citizens, 10% Kazakh citizens and 6% Belarusian citizens. Therefore, Russian citizens will dominate the Commission. The Commission's first chairperson will be Russian minister of industry Victor Khristenko.
It should be noted that member countries are not planning to speed up integration on the level of parliaments, regions, business associations, youth and civil society though it is often a crucial point for approval of the integration process by societies.
Real Aims or Demagogy?
The main aim of the SES is to create a common market of goods, services, capital and labour. In order to achieve it, the Commission was given 175 functions in different spheres, including industry, transport, energy, agrarian sector as well as natural monopolies and competition. Nevertheless, the interstate agreements do not specify the exact content of these wide powers. It means that most likely they will be hotly debated in the future. It took the European Law system over 50 years to develop and mature and it
is naïve to hope that 2-3 years will be enough for the Eurasian Union’s legislation to adopt legislation in these important areas.
Given the importance of ‘champion enterprises’ such as MAZ and Belkali for Belarus or Gazprom for Russia, it is still unclear how the states can agree on regulation of these enterprises by some supranational institutions, especially when they are governed not by economic, but political logic. Previously Russian authorities had an experience of imposing different decisions on gas and oil companies in order to achieve some political aims and assert itself as the ‘energetic superpower’.
Member states claim that they want to pursue the coordinated macroeconomic and currency policy and to limit the level of external public debt and inflation. However, given the weak rule of law in Belarus, Kazakhstan and Russia, it is difficult to posit that all provisions of the agreements will be complied by member states.
Prospects of the Eurasian Integration
The states plan to introduce a common defense space based on the CSTO as well as the single currency of the Eurasian Union. Alexander Lukashenka said that Russian rouble could play this role, but from Nazarbayev’s point of view, it should be a new currency. Actually, it is almost impossible that Russia will drop its rouble and will agree to emission centers outside Russia. Thus the situation with the single currency can reach a deadlock very soon as was the case many times before in case of the Union State of Belarus and Russia.
On 18 November Victor Khristenko said in his interview to Russia Today that Tajikistan and Kyrgyzstan can join the SES in the near future. This may sound good to the Russian voters, but in practice these countries are quite poor and not so important in the regional context to make the Union more attractive for further candidates.
Medvedev stated that the future Eurasian Union will avoid eurozone problems, but it is hardly so, given the fact that Russian economy plays even a bigger role of locomotive in the new Union as the Germany in the European Union. There is a high probability Russia will have to lend and invest large amount of money into neighbouring economies for the maintenance of coordinated macroeconomic indicators.
Decisions of the Commission will be based on consensus which means that coordination of positions of Belarus, Russia and Kazakhstan will take a long period of time. Especially because the Belarusian presidential administration is not ready for economic reforms and even clashed with its own government on this issue two weeks ago.
Implications of the new Wave of Integration for Belarus
Belarus should pragmatically approach participation in the Eurasian Union and use its opportunities to reach its own ends, including modernization of enterprises and conducting of market reforms. A shift to common policies can further the process of
Belarusian modernization due to the forced adaptation to modern norms and regulations that are used by Russia as a consequence of cooperation with the WTO, the USA and the European Union.
Despite popular objections, participation of Belarus in the SES does not contradict its participation in the EU Eastern Partnership or development of relations with Western countries. Moreover, the SES constituent agreements stipulate that the WTO norms are of higher legal force than trilateral agreements.
It is symbolic that Russian president Dmitry Medvedev was going to leave for Bali to take part in the East Asia Summit next day after signing agreements with Belarusian and Kazakh counterparts. Russia does not retreat from the world market into the Eurasian integration, and there is nothing that would prevent Belarus from doing the same, except the lack of imagination.
Participation the Eurasian Union may help Belarusian authorities to reduce social tension and improve its hard socio-economic situation in the near-time outlook if Russia agrees on the substantial cut in hydrocarbons prices. Its decision will be known on the 25 of November during the session of the Union State’s Supreme State Council. According to influential Russian daily Vedomosti, natural gas prices for Belarus in 2012 can be halved to 150 dollars per 1000 cubic meters with following decrease to the level of internal Russian prices in 2013.
What is the Future of the Eurasian Union?
To sum up, founders of the Eurasian Union refer to a large extent to the EU experience and set similar aims, mechanisms and institutions. However, weak legal culture, absence of proper democratic mechanisms as well as differences in the economic structure of three countries and their economic interests cast doubt on the future of all agreements.
Today it is difficult to say whether this new Union will stand the test of time or will be used by Russian politicians to increase their popularity in Russia and by Belarusian authorities as yet another rent-seeking opportunity.
George Plaschinsky
George Plaschinsky is an associate analyst at the Centre for European Transformation in Minsk.
Mirror Image
Will United Russia’s Poor Image Reflect on Putin?
http://russiaprofile.org/politics/49657.html
By Dan Peleschuk Russia Profile 11/22/2011
As United Russia’s popularity drops steadily ahead of the Duma elections on December 4, it threatens to drag with it the popularity of the man who helped build the very system over which it dominates: Prime Minister Vladimir Putin. And as he gears up to almost certainly reclaim the presidency in March, the vote may prove to be the first true test of his own popularity since the public disclosure of his renewed presidential ambitions.
Sunday night saw a truly unprecedented moment in Putin-era Russia. As he walked into the ring at Moscow’s Olympic Stadium to congratulate the Russian victor of a mixed martial arts match, Putin was greeted with a resounding wave of catcalls, boos, and the odd unfriendly comment. The event sparked a firestorm of commentary in the media and, above all, in the Russian blogosphere. Though many are still debating whether the audible teardown was meant for Putin or the American opponent, it was nevertheless edited out on most state television broadcasts and provoked a wave of speculation which earlier would have seemed unlikely.
Since his announcement in September that he would seek a third presidential term, certain parts of the Russian population have been rife with growing discontent, particularly the urban, educated youth. Sometimes quiet and sometimes not, the disenchantment has appeared in many forms. On Sunday night, it was booing; earlier this fall, it was a widely circulated doctored image of Putin as Soviet leader Leonid Brezhnev – a humorous, albeit revealing, take on Putin’s intent to rule for another potential 12 years.
The upcoming elections to the Duma may be the first real litmus test for not only United Russia’s image, but for Putin’s as well. Some observers, however, remain measured about just how much damage the party’s sliding popularity can do to the man himself. Valery Fyodorov, general director of the state pollster VTsIOM, told Kommersant on November 18 that the population’s confidence in Putin has not collapsed, but has instead steadily declined over time, from as high as 70 percent in 2008 to as low as 44 percent this year.
United Russia, meanwhile, is quickly losing steam. As it racks up electoral violations and finds itself caught in one scandal after another ahead of the elections, analysts warn of the real possibility that the party may lose its constitutional majority – that is, if the poll numbers accurately reflect what happens on voting day. And it’s a trend that is not lost on Putin, as he has frequently attempted to posture himself as a man above party politics.
Experts noted hesitancy on the prime minister’s part to associate himself with United
Russia amidst a period of dropping ratings for the party. Olga Mefodyeva, an analyst at the Center for Political Technologies, pointed to a contrast between a few years ago, when both United Russia’s and Putin’s ratings reached their peak, and today, when people are growing more disappointed with the ruling party. “It’s possible that [now] either Putin is very careful about granting his image to United Russia, or he simply doesn’t use this outlet,” she said.
Other experts said that despite United Russia’s downturn in popularity, Putin has retained much of the authority he has always enjoyed. “Realistically, United Russia has no particular authority or image on its own – people vote for it because it is Putin’s party,” said political analyst Vladimir Pribylovsky of the Panorama Information and Research Center. “If Putin were to tell people to vote for whatever unknown party, they would still vote that way.”
Nevertheless, it’s an interesting time for the most powerful man in Russia. Much of his strongman image was molded by his assertiveness after Russia’s chaotic 1990s and the rapid centralization of power in the years that followed. And during the past few years, he has consciously planted himself in the spotlight as the consummate man’s man – taking to horseback in the mountains, piloting helicopters to dampen the flames in forest fires. Yet now, after Russia has regained much of its stamina on the world stage and has perhaps grown tired of his PR stunts, other experts wonder whether Putin’s image – and, by extension, his political authority – is beginning to weaken.
Writing in Vedomosti recently, political analysts Mikhail Dmitriev and Stanislav Belanovsky noted how the Kremlin’s decision to bring Putin back has inadvertently damaged both his and President Dmitry Medvedev’s image, as there is no longer a tandem to draw broader appeal. “Putin’s brand has suffered much less, but he ended up all alone now, face to face with the problems of his political ageing and the inability to appeal to both social poles,” they wrote. “The job swapping has weakened the prospects for changes within the upper echelons of state power and the chance for a dialogue between the authorities and society.”
Waiting for Russia's Next Move on Iranhttp://carnegieendowment.org/2011/11/22/waiting-for-russia-s-next-move-on-iran/7nzn
Mark Hibbs Q&A, November 22, 2011
The board of governors of the International Atomic Energy Agency (IAEA) admonished Iran by a large majority last week and urged Tehran to resolve outstanding issues over its nuclear program. But the board stopped short of calling for harsher sanctions firmly opposed by both China and Russia. The resolution came ten days after the release of a
new IAEA report documenting that Iran has carried out activities relevant to the development of nuclear weapons.
In a Q&A, Mark Hibbs says that Iran is unlikely to cooperate with the IAEA in any significant way to address the questions raised in the IAEA’s report. In the coming months, Washington will need to walk a fine line to maintain pressure on Iran while trying to prevent the crisis from escalating out of control. The United States may see Russia’s commitment to diplomacy as a potential opportunity. This will depend on forthcoming talks among Russia, Iran, and other countries on a roadmap for a diplomatic resolution to the crisis.
How significant is it that all five permanent members of the United Nations Security Council backed the resolution passed last week by the IAEA board of governors?
Does the resolution turn up the pressure on Iran?
Did the United States want a tougher resolution on Iran?
Why are China and Russia taking issue with the IAEA’s latest report and seemingly against stronger measures to contain Iran’s nuclear ambitions? Do the two countries share the West’s view that a nuclear-armed Iran would threaten global peace and security?
What interests do China and Russia have in Iran?
What happens next on the diplomatic front with Iran? How did Iran react to the resolution and the IAEA report?
Has Russia revealed a game plan for negotiating a resolution of the crisis? What position will the United States take?
How significant is it that all five permanent members of the United Nations Security Council backed the resolution passed last week by the IAEA board of governors?
The fact that Britain, China, France, Russia, and the United States all sponsored the resolution on Iran made it virtually certain that it would pass with overwhelming support in the IAEA’s 35-member board. And that’s exactly what happened. Two states—Cuba and Ecuador—objected and one state—Indonesia—abstained, but the rest voted in favor.
For the United States and other Western countries, this approach marked a return to something like consensus decision-making in the board. As proliferation issues in recent years increasingly polarized board members along North-South lines, Western states
began taking non-consensus decisions, breaking with the tradition established over the last half century.
In June, for example, the board passed a Western-sponsored resolution condemning Syria, but it was opposed by China and Russia. The resolution brought Syria’s noncompliance with IAEA safeguards to the attention of the UN Security Council, but China and Russia were against imposing sanctions on Syria.
Since the middle of this year, a few Western states, notably Britain and France, aimed to pass an IAEA resolution that could lead to further sanctions against Iran. But by early October it was clear to the Western group that China and Russia would oppose such a resolution. Western states had also encouraged Yukiya Amano, the IAEA’s director general, to report to the board the information the IAEA had compiled suggesting that Iran’s nuclear program included activities to support the development of nuclear weapons. When Amano submitted that report earlier this month, China and Russia firmly objected to it.
Western states aiming to pass a resolution on Iran based on the report therefore had to make a choice: accept a weak resolution that everyone would agree to or take the risk that a tougher text would be opposed by China and Russia, demonstrating that two of the five Security Council veto powers didn’t agree on the significance of the IAEA’s weapons-related findings. Opposition from China and Russia to a resolution would have also been likely to trigger "no" votes by many developing and non-aligned countries on the board.
Does the resolution turn up the pressure on Iran?
Not directly. If Iran chooses to dangle carrots in front of the IAEA and then doesn’t actually cooperate, Tehran has a chance to avoid tougher actions. One Western diplomat quipped after the IAEA meeting that under Amano’s predecessor, Mohamed ElBaradei, “the language of IAEA reports on Iran was weak and our resolutions were tough. This time it’s the other way around.”
China and Russia negotiated hard over language in the resolution to ensure it affirmed “continued support for a diplomatic solution” to the Iran crisis and underscored Iran’s right to the peaceful use of nuclear energy—a right some Western leaders have asserted Iran has forfeited. Significantly, the resolution does not specifically call on Iran to address Amano’s weapons-related findings, it does not threaten Iran with additional sanctions, nor does it set a deadline for Iran to address questions raised by the IAEA.
Indirectly, there will be more pressure on Iran. The near-unanimous support for the IAEA resolution is one reason. Separately, threats made by Israeli officials this month will be leveraged by the Security Council’s permanent members to try to convince Iran that it is in its best interest to agree to a negotiated solution.
Did the United States want a tougher resolution on Iran?The United States strongly urged Amano to report to the board on Iran’s nuclear weapons-relevant activities and hoped the board would pass a follow-up resolution. Partly a consideration of the politics of a coming election year, President Obama does not want to be seen by Congress and his Republican opponents as failing to show resolve on Iran. At the same time, however, the United States favored a common approach at the IAEA that would include all five Security Council permanent members. This approach was designed to secure a resolution with near unanimous support from the board and one that would not play into the hands of politicians—in European capitals as well as on Capitol Hill—who seek dramatic sanctions against Iran that might escalate the crisis and potentially damage the U.S. economy.
Why are China and Russia taking issue with the IAEA’s latest report and seemingly against stronger measures to contain Iran’s nuclear ambitions? Do the two countries share the West’s view that a nuclear-armed Iran would threaten global peace and security?China and Russia understand that a nuclear-armed Iran would be destabilizing and threatening and that Tehran would thereafter be more aggressive in intervening in political conflicts in the Middle East and Central Asia. It’s possible that both China and Russia withdrew support from the Western position at the IAEA because of differences over more strategic issues. But both countries have strategic and economic interests compelling them to seek a resolution to the crisis whereby Iran would afford the IAEA the access it needs to determine whether its nuclear program is solely for peaceful use and then express confidence that it is. Given Iran’s track record of deception and failure to declare activities, that’s a tall order and it would require Iran to give the IAEA virtually unrestricted access to personnel and locations in Iran. If this happened, however, Security Council sanctions against Iran could be lifted, permitting China and Russia to go back to business as usual with Iran as increasingly important strategic and trading partners. In the boardroom, Iran’s ambassador to the IAEA, Ali Asghar Soltanieh, vowed that Iran would never stop uranium enrichment. China and Russia do not believe that Iran needs to and they share the view that pressing Iran to publicly admit that it previously engaged in nuclear weapons-related research and development is counterproductive because it stands in the way of a discreetly negotiated solution.
What interests do China and Russia have in Iran?Both countries have an interest in checking the influence of the United States in the Middle East and Central Asia, and have been developing strong strategic relationships with Iran.
Iran is an observer in the Shanghai Cooperation Organization, a body where Russia and China have cooperated to combat terrorism and regional separatist movements, shared intelligence, conducted joint military exercises, and aim to negotiate a regional trade pact. Russia is a major supplier of conventional arms to Iran, and according to one unofficial estimate has lost perhaps $20 billion in cancelled military equipment sales to Iran due to international sanctions. Russia also has ambitions to export more nuclear power reactors to Iran and this commerce will also likely be blocked as long as Security Council sanctions are in place. For both countries, Iran is a major partner in energy projects. Russia and Iran are members of an organization, the Gas Exporting Countries Forum, set up in 2001 and dedicated to establishing a natural gas producers’ cartel. China might now be Iran’s single biggest trading partner on the strength of steadily growing imports of natural gas and petroleum products in recent years. If the Security Council applied more nuclear-related sanctions against Iran, they might hit Iranian banks financing bilateral trade with both Russia and China and therefore inhibit China’s energy fuel imports from Iran. China may now be more reliant on oil from Iran than the United States is on oil from Saudi Arabia.
What happens next on the diplomatic front with Iran? How did Iran react to the resolution and the IAEA report?As anticipated, Iran harshly attacked Amano’s report reiterating that it was based on falsified Western intelligence information. Separately, Iran provided member states answers to 20 questions that were raised by the IAEA in Amano’s report, disputing the IAEA’s conclusions. In the boardroom, Soltanieh announced that the 2007 “work plan”—the agenda of issues that the IAEA and Iran agreed must be resolved—was closed, that the IAEA should resume routine safeguards inspection in Iran, and that Iran would not attend a meeting held this week by Amano to discuss a possible nuclear weapons free zone in the Middle East. In late October, Iran told the IAEA it would agree to discuss outstanding issues surrounding the allegations of weapons-related nuclear work and that Iran would meet with the IAEA’s leading verification official in Iran soon. But after the release of Amano’s report and the board meeting, expectations for a visit are low. Iran will not do anything suggesting that it is reacting to the resolution. A joint meeting might take place shortly before the next IAEA board meeting in March, but that may depend on talks between Russia and Iran. Otherwise there is little optimism that Iran and the IAEA will make any significant progress before the next routine board meeting in March.
Has Russia revealed a game plan for negotiating a resolution of the crisis? What position will the United States take?Not yet. In August, Russian Foreign Minister Sergei Lavrov floated to Iran a plan described by the media as a “step-by-step” approach to gradually lift nuclear sanctions against Iran. Details have not been revealed. In collaboration with other states on the IAEA board and the Security Council, Russia may suggest a roadmap where Iran would need to commit itself to limit uranium enrichment to the low level needed for producing fuel for civilian power reactors and confine the work to perhaps one or two locations in Iran. Tehran would probably have to implement the IAEA’s Additional Protocol, giving the IAEA far greater access to sites and personnel in the country to make a judgment whether all of Iran’s nuclear activities are for peaceful use. Without Iranian cooperation, the IAEA has not been able to make that judgment since 2003. With the U.S. presidential election ahead, Obama has no political freedom to lead the way on Iran. Based on what Russia proposes, the United States could be willing to negotiate a package that would be acceptable to the Security Council’s permanent members, Germany, and Iran. The United States, however, would remain in the background. The United States, Britain, and Canada already imposed new sanctions on Iran this week that build on the sanctions already in place. President Obama would likely support additional sanctions against Iran—affecting Iranian financial activities, for example—but not approve dramatic measures that would criminalize Iran’s central bank and Iran’s petroleum sector and thereby increase oil prices—this could have little effect on Iran’s nuclear resolve but harm the U.S. economy.
12:10 22/11/2011RUSSIAN PRESS REVIEW
War may break out in the Caspian Sea
http://www.itar-tass.com/en/c142/278163.html
Cmpetition for gas deliveries to Europe may develop into an armed clash in the Caspian Sea, because the division of its territory continues to be the subject of international disputes, Nezavisimaya Gazeta writes. Last Monday Kazakh President Nursultan Nazarbayev described the prospect of the building of the Trans-Caspian Pipeline (TCP) from Turkmenistan to Azerbaijan as “very vague.” Russian experts openly warn that the ignoring of Moscow’s stand may lead to armed confrontation, similar to the 2008 clash with Georgia. Meanwhile, the European Union demands that Russia should not put up obstacles on the way of the building of TCP, threatening to retaliate with hampering the implementation of the South Stream project.
Azerbaijan and Turkmenistan say that TCP will be built on the territory of their national sectors. This is why other Caspian littoral countries cannot dictate to Baku and Ashkhabad what they should and should not do in their territorial waters, the newspaper writes. Bsides, all the Caspian countries are already producing oil and gas in their sectors of the Caspian Sea. Moscow insists, however, that the division into national sectors was unofficial, and since the five countries have not signed a framework document on the legal status of the Caspian Sea, none of them has the right to lay a gas pipeline on the bed of the Caspian Sea, even on the territory of their so-called ‘national sectors.’
Guenter Oettinger, EU Commissioner for Energy, said that if Russia resorted to threats, it would face serious problems. He served notice that if Moscow hampered the building of TCP, Europe would not allow it to build the South Stream gas pipeline, which is a rival to Nabucco.
Some Russian experts are of the opinion that Moscow can defend its stand, using not only diplomatic means. Mikhail Alexandrov, head of the department at the Institute of CIS Countries, told Nezavisimaya Gzeta that he had warned high-ranking EU diplomats for several months about a possibility of the use of force. “This happened once at a dinner in the German embassy, in the presence of Pierre Morel, EU special representative for Central Asia. I tried to explain to him that the West underestimated Moscow’s resolve to prevent the building of gas pipelines across the Caspian Sea. The reasons for that are not so much economic, as military-political,” Alexandrov said.
It is true that Moscow cannot permit the violation of the legal regime of the Caspian Sea, established by the agreements with Iran, because it could lead to a legal anarchy in the region, including the appearance of military bases of third countries, the expert believes. The building of TCP will mean de-facto the recognition of the division of the Caspian Sea into sectors. This is absolutely unacceptable for Russia, and it will have to take action, similar to the operation for the compelling of Georgia to peace. “This time it will have to compel Ashkhabad and Baku to observe international law, probably, with the help of air strikes, if they do not understand any other language. Remembering what NATO did in Yugoslavia, Afghanistan, Iraq and Libya, Russia has no barriers, moral or legal ones, for the use of force in the Caspian Sea,” Alexandrov believes.
“From the legal point of view, Russia is absolutely right, and Iran shares its stand. Kazakhstan remains neutral, because it will not become a major gas exporter. There is one more player on that market, which is often forgotten, and it is China. China does not need TCP either. At present it purchases gas from Turkmenistan at a low price, but if plans of gas deliveries to Europe are put into effect, Ashkhabad may raise the gas price, which Beijing will not like,” said Konstantin Simonov, director-general of the National Energy Security Foundation.
A most wanted man: 5 years on, search still strong for Litvinenko killerhttp://rt.com/news/litvinenko-polonium-case-continues-971/
Published: 23 November, 2011, 08:01Edited: 23 November, 2011, 11:24
Former Soviet KGB agent Aleksandr Litvinenko died a slow, torturous death in London on November 23rd 2006 – poisoned by radioactive polonium. The case is still open – and a definite thorn in relations between Russia and the UK.
The original suspect in the case, Russian politician and former security officer Andrey Lugovoy, has diplomatic immunity and cannot be prosecuted. Numerous requests by the British have been rejected by Russia for constitutional reasons– and in turn, Britain refuses to hand over the evidence they’ve gathered on Lugovoy so that Russia can conduct its own investigation.
And as author and Russia expert Martin McCauley told RT, the impasse must be overcome. “This is unfortunately the key barrier to improved relations between Moscow and London. And in the interests of both governments, it would be very welcome if this case could be solved”, McCauley said. “You can’t do anything with Lugovoy, he’s beyond prosecution – so if you’re going to move the case forward, you have to find somebody else who doesn’t have immunity and build a case against him.”
It would seem that the British authorities have, in fact, found that somebody else – Lugovoy’s former colleague Dmitry Kovtun. He was at the Millennium Hotel where Litvinenko was allegedly poisoned, and later German police found traces of polonium in his Hamburg apartment. But even back then, the trail went cold. And as Kovtun himself told RT, he is ready to present his side of the story.
“I’ve already been a suspect once in this case”, Kovtun said. “I’m ready for all possible developments in the case. I’m just glad I will have the chance to defend my innocence, to state my side. Both mine and Lugovoy’s positions in this case are unshakable –and we will prove it in court”.
For his part, the Russian parliamentarian will not attend the hearings – but has agreed to give evidence via videofeed. He has welcomed the new stage of the investigation, claiming that a lot of new information is coming out; information he previously drew attention to – and was denounced for. Lugovoy also stated that the best way to solve the case would be to figure out exactly who stood to gain from Litvinenko’s death. He himself has a number of thoughts on the matter.
“[Exiled Russian tycoon] Berezovsky, because Litvinenko was informed about how he received political asylum and he had told me about it more than once. And looking at Berezovsky’s deceitfulness, it’s entirely possible. Second, of course, the British secret service”, Lugovoy told RT. “I’m not saying they prepared the killing, you can expect anything from these boys, but they were close by, and I say again, Litvinenko wasn’t working independently. And third, and this is only his word, he said he was helping the Spanish police to fight the Russian mafia, gave them some sort of information from that time”
The Litvinenko saga has definitely impacted relations between Britain and Russia. The accusations, negotiations and open case files definitely loosened ties between the two – but recently, it seems, a new page is slowly being turned. Prime Minister David Cameron visited Moscow earlier this year and talked openly about the case; business ties are strong. But the case still remains a permanent fixture; a peripheral ghost, demanding closure.
It is not just political and legal interests, however. With all the media attention and unsolved status, the story was deemed perfect for the big screen. British director Rupert Wyatt is rumored to shed some light on the case – or at least the script, based on a book about the former KGB agent’s life and death. What will come first – the opening of ‘Londongrad’ or the closing of Litvinenko’s case – is anybody’s guess.
National Economic Trends
Finance Ministry: Gov't ready to tackle global downturn
http://www.rbcnews.com/free/20111123115246.shtml
RBC, 23.11.2011, Moscow 11:52:46.The Russian government is ready to face a deteriorating international economic environment, acting Finance Minister Anton Siluanov said at a financial forum organized by "Vedomosti" newspaper.
The federal budget is expected to run a 0.4% surplus in 2011, Siluanov noted, adding that it would be used to downsize domestic borrowing in 2012.
However, Russia's economy could see a slower growth rate if the global economy falls into a downtrend, Siluanov went on to say, arguing that if the price of oil falls below $93, the government would have to tap the Reserve Fund to cover the deficit.
Moreover, the government has set aside over RUB 300bn (approx. USD 9.6bn) to support key enterprises and vulnerable segments of the population over the next three years, he said.
Finance Ministry anticipates second crisis wave, cuts domestic borrowing plans
http://www.bne.eu/dispatch_text17938
bneNovember 23, 2011
The Finance Ministry is planning to use this year's budget surplus to cut domestic borrowing in 2012, anticipating a liquidity squeeze on banks, according to acting finance minister Anton Siluanov. The government will reduce domestic borrowing by around0.3-0,4% of GDP, the estimated budget surplus for the year, Siluanov said as quoted by Vedomosti. Total budget surplus for the first ten months of 2011 was 3.2% of GDP. The 2011 budget planned a deficit of 3.6% GDP.
GDP advances in October
http://www.rbcnews.com/free/20111123120404.shtml
RBC, 23.11.2011, Moscow 12:04:04.Russia's GDP rose 5.6% year-on-year in October, the Economic Development Ministry said in a monitoring report.
Agriculture output made the biggest contribution to GDP growth, the ministry said. Processing industries, construction and trade also registered a rise in output amid high investment demand.
GDP grew 4.3% in January-October, Economic Development Minister Elvira Nabiullina said on November 22. Seasonally adjusted GDP went up 0.9% month-on-month in October.
Russian Foreign Direct Investment Rises 43% in First Nine Monthshttp://www.bloomberg.com/news/2011-11-23/russian-foreign-direct-investment-rises-43-in-first-nine-months.html
QBy Scott Rose - Nov 23, 2011 9:00 AM GMT+0100
Russian foreign direct investment jumped 43 percent to $11.7 billion in the year through September compared with the same period a year ago, with finance, manufacturing and mining receiving the most capital.
Total foreign investment, including loans and flows into securities markets, soared 180 percent in the first nine months to $134 billion, the Federal Statistics Service in Moscow said today in an e-mailed statement.
The government expects inflows to reach between $60 billion and $70 billion soon, Prime Minister Vladimir Putin said in July. Exxon Mobil Corp. formed an alliance with OAO Rosneft, the country’s biggest oil producer, in August to drill in the Arctic, with the partners planning to spend an initial $3.2 billion exploring Russia’s offshore deposits.
The Kremlin set up the Russian Direct Investment Fund to co-finance international investment and last month won $1 billion in backing from China’s sovereign wealth fund, the first foreign commitment to the Russian private-equity vehicle.
The financial industry received the largest amount of investments in the first nine months, attracting $65.7 billion, followed by manufacturing and mining. The Netherlands was the largest foreign investor in the period, followed by Cyprus, Germany and the U.K.
To contact the reporter on this story: Scott Rose in Moscow at [email protected]
To contact the editor responsible for this story: Balazs Penz at [email protected]
RTS Futures Climb as Brent Spurs Gazprom ADRs Higher: Russia Overnighthttp://www.bloomberg.com/news/2011-11-22/rts-futures-rise-as-brent-spurs-gazprom-higher-russia-overnight.html
By Leon Lazaroff and Halia Pavliva - Nov 23, 2011 5:35 AM GMT+0100
RTS stock futures climbed as Brent crude advanced the most in two weeks, propelling gas producer OAO Gazprom (OGZPY) to its first gain in five days as rising commodities bolster prospects for the world’s largest energy exporter.
Futures on the dollar-denominated index expiring in December increased 0.2 percent to 141,760 by 2:50 p.m. yesterday in New York. The Bloomberg Russia-US 14 Index of Russian companies traded in the U.S. jumped 1.5 percent, the most in more than a week, to 92.66, led by a 9.1 percent surge in OAO Mobile TeleSystems (MBT), Russia’s largest mobile operator. Gazprom, the world’s biggest gas producer, advanced 1.7 percent.
Brent, which underpins Russia’s Urals crude blend, lost 1 percent as of 4:19 a.m. in London. It jumped 2 percent yesterday, boosting Gazprom, which indexes its price to oil. High prices for Brent will probably ensure Russia, which gets about 40 percent of its revenue from energy sales, balances its 2011 budget, said Tom Furda, director of Russian equity sales at Auerbach Grayson & Co.’s Moscow-based brokerage partner UralSib Financial Corp.
“As long as oil holds up, we’re not going to get a major collapse in Russian equities,” Furda said by phone in New York yesterday. “Yet until there’s a catalyst to get people excited about the equity picture, specifically more confidence about the U.S. and European markets, we’re not likely to have a big upturn either.”
The MSCI Emerging Markets Index (MXEF) sank as much as 1.2 percent today after data showed China’s manufacturing may have contracted this month, ahead of separate figures that may show European manufacturing and services shrank and U.S. durable goods orders fell. Hong Kong-traded shares of United Co. Rusal (486), the world’s biggest aluminum company, lost 4.3 percent as of the city’s 12 p.m. trading break.
Iran Sanctions
American depositary receipts of Gazprom rose to $10.90 after the company’s shares on Moscow’s Micex (INDEXCF) index fell 0.3 percent to 169.09 rubles, or the equivalent of $5.44. One Gazprom ADR represents two ordinary shares.
Brent for January settlement sank $1.10 to $107.93 a barrel on the London-based ICE Futures Europe exchange today after yesterday’s $2.15 increase. Crude oil gained yesterday for the first time in four days as new sanctions against Iran and protests in Egypt raised concern supplies will be disrupted. Prices in New York climbed 1.1 percent to settle at $98.01. Urals crude added 1.5 percent to $108.71.
The U.S. joined the U.K. and Canada in expanding measures aimed at thwarting Iran’s nuclear program by targeting the nation’s central bank and oil industry with sanctions intended to cut the regime off from international financing. In Egypt, the government offered to resign amid four days of rallies and protests.
Sustained Rally
ADRs of OAO Lukoil (LUKOY), Russia’s largest non-state oil producer, fell 0.4 percent to $52.93 after shares rose 0.5 percent on the Micex to 1,651.40 rubles, or $53.11.
Brent would have to top $125 a barrel to sustain a rally in Russian equities, Furda said.
“Temporarily, oil remains an anchor,” he said. “But if oil itself is anchored, then Russian stocks don’t move up.”
The Standard & Poor’s 500 (SPX) Index retreated 0.4 percent to 1,188.04 yesterday after a Commerce Department report showed the U.S. economy expanded less than previously estimated in the third quarter. Gross domestic product climbed at a 2 percent annual rate from July through September, less than the 2.5 percent pace that was the median estimate of 81 economists surveyed by Bloomberg.
Beating Estimates
Mobile TeleSystems surged the most since Oct. 5 in New York, rising $1.26 to $15.18, after Moscow brokerage Renaissance Capital reiterated its “hold” recommendation on the ADRs, with a price target of $18.80.
The company’s financial results exceeded analysts’ expectations even as net income fell 25 percent in the third quarter to $362 million, Renaissance analysts led by Moscow- based Alexander Kazbegi said in a report e-mailed yesterday. Revenue rose 13 percent to $3.27 billion in the period, Moscow- based MTS said in a Nov. 21 statement.
MTS may jointly bid with VimpelCom Ltd. (VIP) for a third- generation mobile service in Ukraine, Vedomosti newspaper reported, citing an unidentified person close to a Ukrainian cell-phone company.
Yandex, Norilsk
Yandex NV, operator of Russia’s most popular Internet search engine, gained 1.7 percent to $20.06, the highest level since Nov. 11, a day after falling the most in seven weeks. A ban on divesting stock bought in the company’s initial public offering ended on Nov. 21.
The Standard & Poor’s GSCI index of 24 raw materials gained 1 percent to 648.26 as palladium futures for December delivery climbed 2.6 percent to $601.15 an ounce. Russia is the world’s largest exporter of palladium and nickel.
OAO GMK Norilsk Nickel (NILSY) ADRs rose the most in two days in New York after the Interfax newswire reported that the world’s largest producer of the metal may purchase shares in another buyback program. Norilsk climbed 2 percent to $16.46 after shares in Moscow fell 1.8 percent 5,125 rubles, or $164.93. One Norilsk ADR represents one-tenth of an ordinary share.
Norilsk may buy back shares at market price to cancel stock purchased in a $4.5 billion program that ended in Oct. 28, Interfax said, citing Andrei Klishas, the company’s president.
Airbus Order
The Market Vectors Russia ETF (RSX), a U.S.-traded fund that holds Russian shares, increased 1 percent to 28.06, while the Bank of New York Mellon Russia ADR Index jumped 6.9 percent to 764.60, the biggest one-day advance in seven weeks.
OAO Aeroflot, Russia’s biggest air carrier, is considering a $2.25 billion contract to buy 30 Airbus 320 airplanes, Vedomosti newspaper reported today, citing unidentified people familiar with the matter at both companies. Aeroflot slid 0.6 percent to 49.72 rubles in Moscow.
The 30-stock Micex rose for the first time in five days yesterday, adding 0.8 percent to 1,401.91. The RTS gained 0.4 percent to 1,431.13.
The Micex has lost 17 percent in 2011 and trades at 4.4 times analysts’ earnings estimates for member companies. That compares with a 19 percent slide for Brazil’s Bovespa (IBOV) index, which trades at 10 times estimated earnings, according to data compiled by Bloomberg. The Shanghai Composite Index (SHCOMP) trades at 11.4 times estimated earnings, and the BSE India Sensitive Index (SENSEX) has a ratio of 13.7.
The RTS Volatility Index, which measures expected swings in the index futures, dropped for the first time in four days, falling 3.6 percent to 53.86 points.
To contact the reporters on this story: Leon Lazaroff in New York at [email protected]; Halia Pavliva in New York at [email protected]
To contact the editor responsible for this story: David Papadopoulos at [email protected]
21:02 22/11/2011ALL NEWS
Russia’s farmers harvested over 97 mln tons of grain in bunker weight
http://www.itar-tass.com/en/c154/278816.html
ST. PETERSBURG, November 22 (Itar-Tass) — Russia’s grain harvest in the bunker weight is estimated at 97.5 million tonnes this year, Agriculture Minister Yelena Skrynnik told a rural youth forum in the Pushkin district of St. Petersburg on Tuesday.
“The aforesaid amount will be sufficient to meet the domestic and export demands in grain. The latter indicator is estimated at about 25 million tonnes,” she said, reaffirming that this year Russian farmers gathered record high harvests of sugar beet, sunflower, rapes and soy beans.
In Skrynnik’s words, export is the point of growth for the industry.
“Russia has powerful reserves for agricultural development, which is able not only to guarantee domestic [food] security, but also to become the world’s biggest food exporter,” the minister said.
“We hope that we can guarantee export of VAT-products [meat and milk], but not only of grain,” Skrynnik added.
Proceeding from earlier reports, the country’s grain net harvest is estimated at 92-93 million tonnes this year, Russian First Deputy Prime Minister Viktor Zubkov told last Friday.
The abnormally hot weather of 2010 severely damaged grain harvest, as a result of which last year’s grain harvest was at 60.9 million tonnes.
As of November 1, 2011, the country’s grain harvest in the bunker weight (or before cleaning and drying) slightly topped 97 million tonnes.
This year, the government helped the Russian agrarians to overcome consequences of the financial and economic crisis and the drought of 2009-2010, Zubkov said back then. In particular, farmers gathered 48 million tonnes of sugar beet. About 5.2 5.5 million tonnes of granulated sugar will be produces of the harvest, which will make it possible not to import raw sugar.
Besides, Zubkov stressed that the budget assistance to the agricultural sector grew by more than 50 percent in 2008-2011. “It was disbursed 635.5 billion roubles [USD 1 = RUB 31.06] to farmers in the period under review, instead of the targeted funds of 421.3 billion roubles,” he said.
In 2012, the government plans to keep all effective assistance measures for agriculture, the first deputy prime minister said. In particular, 3.5 billion roubles will be assigned for the development of animal-breeding programs. Subsidies for investment loans will go up by seven billion roubles to reach 52 billion roubles. Representatives of the small business in the rural territories will receive 6.3 billion roubles, which is 400 million roubles more than in 2010.
Surpassing the G-8http://rt.com/politics/press/rossijskaya-gazeta/growth-inflation-economics-russia/en/
Published: 23 November, 2011, 09:18Edited: 23 November, 2011, 09:21
Russia surpasses developed countries in economic growth and inflation Elena Kukol
Russia has taken the top ranking for having the most rapid economic growth among the G8 countries, reports Rosstat. But despite its apparent achievements in curbing the rising prices, Russia has managed to hold on to its “anti-leadership” on inflation.
Experts interviewed by Rossiyskaya Gazeta (RG) note that next year, our country will have a difficult time consolidating the gains of economic growth, and do not hide their fears concerning inflation.
In the third quarter, the national GDP increased by 4.8%, while the German economy gained only 2.6% and the US and French economies – 1.6%. However, we are significantly lagging behind the growth rates of the “global economy’s engines” – China and India – where GDP growth amounted to 9.1% and 8.1%, respectively. But when it comes to inflation (7.2%), our country continues to surpass not only the developed states, where inflation fluctuates between 5.2% in Great Britain, 2.2% in France, and 0% in Japan, but even the Celestial Empire, which has recently been actively struggling against the risks of “overheating” its economy and has been able to keep inflation at 6.1%.
In these recent months, we have been celebrating one and the same factor, which is the main source of economic growth – an extremely favorable external environment and the high price of raw materials, says general director of FinExpertiza, Agvan Mikaelyan. Therefore, we cannot claim this as being our personal accomplishment. Next year, we should not expect the national economy to repeat its “heroic achievements”, says RG’s interlocutor. “Following problems in Europe and the United States, we will at least see stabilization of oil prices and a reduction of energy consumption,” predicts Mikaelyan. “Economic growth rates will be modest, ranging between 3% and 3.5%, salaries will be fixed.” But if the second recession develops in an adverse scenario, the Russian economy could make a harder landing than that of the developed states. In 2008, GDP in most of these countries was reduced slightly, while in Russia, it collapsed by nearly 8%, recalls Mikaelyan.
The main contribution to economic growth in the third quarter was made by construction – the Development Center at the Higher School of Economics presents the details of the Rosstat statistics. But growth was achieved mainly due to a number of large, unique buildings and facilities that have not been made operational in a long time, specifies Natalia Akindinova, director of the Center. And for now, she says, there is no reason to believe that the accelerated growth rate is sustainable. It is too closely linked to individual facilities and sectors, the situation in the industrial sector is unstable, a continuing outflow of capital is evident, and the Finance Ministry has not shown any particular interest in supporting growth, Akindinova says, listing the risks. Since July, the average monthly growth rate in the industrial sector, with seasonal adjustments, has been only 0.12% comparing to 0.4% in the first six months of the year – the slowdown in the key economic sector is evident, notes her colleague, Valery Mironov. In 2012, with the current price of oil and against the background of the problems in Europe and the US, he predicts sluggish growth of industrial production and the economy in general. He does not believe that they will remain at the same level.
Neither are experts particularly optimistic regarding inflation. It is already returning to its “normal” level, indicate the Development Center representatives. In October, prices rose by 0.5% after the summer’s deflation and zero level inflation in September. The rapid rise in the price of durable non-food items, which began in March, is alarming, write experts. The reason, in their opinion, has been devaluation, which took place in August-September, and recovery of demand. This year, however, we are likely to continue seeing record-low inflation rates, suggests Mikaelyan. But that will be a result of the outflow of speculative capital, and not a rise in production, notes the expert. Meanwhile, in his
opinion, strategically, low inflation is even more important than economic growth. If inflation steadily declines to 5%, the cost of lending resources will fall to 8-10% – then there will be a chance to modernize, and create an incentive for savings and investment, he says.
Business, Energy or Environmental regulations or discussions
Russian markets -- Factors to Watch on Nov 23http://in.reuters.com/article/2011/11/23/russia-factors-idINL5E7MN03620111123
Wed Nov 23, 2011 11:31am IST
MOSCOW, Nov 23 (Reuters) - Here are events and news stories that couldmove Russian markets on Wednesday. You can reach us on: +7 495 775 1242 STOCKS CALL (Contributions to [email protected]): Chris Weafer, Troika Dialog: "Although facing an opening drop, markets areunlikely to see any significant additional moves until fresh news from Europeand the U.S. becomes available later today." Promsvyazbank: "General background and key external factors have beennegative for Russian stock market today in the morning. We expect to see amostly downside movement in Russia's most liquid names against this background." Olma: "Renwed downward correction in the RTS index is possible today at thebeginning of the trading session following a fall in world's indices."
EVENTS (All times GMT): MOSCOW - Russian President Dmitry Medvedev chairs Security Council meeting MOSCOW - Russia's leading business daily Vedomosti holds its Financial forumwith acting Finance Minister Anton Siluanov along with mid-sized banks'executives attending. LINK: www.vedomosti.ru/events/ffr11/ MOSCOW - Russian statistics service publishes weekly inflation data MOSCOW - EBRD's chief economist Erik Berglof to hold a news conference MOSCOW - Russian precious metals miner Polymetal International mayannounce a buy back share price BAKU - Ministers and top officials from Central, East and South Asia to meet
in the Azeri capital of Baku to mark 10th anniversary of the Central AsiaRegional Economic Cooperation IN THE PAPERS : Russia's flagship airline Aeroflot will consider on Wednesday anoffer for the purchase of 30 Airbus 320 aircraft worth $2.25 billion, Russianbusiness daily Vedomosti reported citing Aeroflot and Airbus sources. The paper also runs an interview with co-owner and director general ofRussia's top drug retailer Pharmacy Chain 36.6. Russian power distribution company MRSK eyes a stake at E.ONBulgaria EAD, Kommersant business daily says citing unidentified sources. TOP STORIES IN RUSSIA AND THE CIS : TOP NEWS: US to stop sharing data with Russia under arms pact Tajik court frees pilots as Russian ties strained Russia says new US sanctions on Iran unacceptable COMPANIES/MARKETS: Sibur: weak China demand weighs on chemicals prices Russia stocks up slightly, cbank and taxes help rouble Gazprombank to test market for dlr Eurobond-source Vozrozhdenie says Kogan wants control RusHydro gets 40 bln rouble loan from Sberbank Vozrozhdeniye Q3 profit seen at 482 mln rbls Acron 9M profit up on high fertiliser demand AFI Development Q3 earnings boosted by revaluation MMK mulls bid for Australia's Flinders ECONOMY/POLITICS: Russia economic growth in Oct highest so far in '11 ENERGY: Norway launches offshore oil drive at Russian border ANALYSIS-Don't bet on big fall in oil COMMODITIES: Russia can be leading beet producer, hurdles remain Med Crude-Urals edges up, Iran a worry TNK-BP to load extra 140K T of Urals in Nov-trade Russia to build new grain terminal in far East MARKETS CLOSE/LATEST: RTS 1,433.0 +0.13 pct MSCI Russia 762.0 +1.1 pct MSCI Emerging Markets 898.5 -1.2 pct Russia 30-yr Eurobond yield: 4.573/4.542 pct EMBI+ Russia 310 basis points over
Rouble/dollar 31.0501 Rouble/euro 42.0075 NYMEX crude $96.92 -$1.08 ICE Brent crude $108.15 -$0.88 For Russian bank balances see For Russian company news, double click on Treasury news Corporate debt Russian stocks Russia country guide All Russian news Scrolling stocks news Emerging markets top news Top deals European companies
(Moscow Newsroom)
November 23, 2011 09:33
MICEX Group to approve stock options program by year's endhttp://www.interfax.com/newsinf.asp?id=289344
MOSCOW. Nov 23 (Interfax) - The board of directors of CJSC MICEX will consider a stock options program for the management of the MICEX Group before the end of this year, group head Ruben Aganbegian told Interfax.
"The exchange's human resources committee has already considered the issue of the options program, it remains for the board of directors to make a decision," he said.
The options program will initially extend to 50 key executives of the group, Aganbegian said.
"Setting aside up to 5% of CJSC MICEX shares for the options program was discussed with shareholders and the board of directors taking into account that the program is being launched for many years into the future, not for one time," Aganbegian said.
The boards of merging exchanges MICEX and RTS earlier authorized the MICEX Group to borrow 4 billion rubles, which MICEX said were needed to buy CJSC MICEX shares for its stock options program.
Aganbegian said the loan has not been obtained yet.
The loan was to be obtained by LLC MICEX Finance, which is owned by CJSC MICEX. Sources said earlier that MICEX Finance would use part of the loan to pay off a loan from CJSC MICEX that was used in May to buy RTS shares from investment bank KIT
Finance (RTS: CITB). Some of the money was also earmarked to buy shares in CJSC MICEX that the latter acquired in a mandatory buyback offer to shareholders opposed to the merger with RTS.
RTS and MICEX shareholders signed a frame agreement on June 29 to merge the exchanges. Shareholders approved RTS' merger into MICEX at extraordinary general meetings on September 5, and the Federal Anti-Monopoly Service approved the deal on September 9. The legalities of the merger are scheduled for completion by December 19.
Vp
(Our editorial staff can be reached at [email protected])
Nov. 23, 2011, 4:01 a.m. EST
Highland Gold buys back mine stake from Kazzinchttp://www.marketwatch.com/story/highland-gold-buys-back-mine-stake-from-kazzinc-2011-11-23
By Alex MacDonald
LONDON -(MarketWatch)- U.K.-listed Russian gold producer Highland Gold Ltd. said Wednesday that it has signed an agreement to buy back shares owned by Kazzinc, its joint venture partner, in the Novoshirokinskoye or Novo mine in Eastern Siberia, Russia for $110 million.
Of the $110 million, $47 million will be paid to purchase Kazakhstan-based integrated zinc producer Kazzinc's 48.3% share in the Novo mine which produces gold, silver, lead and zinc, while another $63 million will be paid to Kazzinc to cover for the latter's share of intercompany debt.
The transaction is expected to close before year-end, subject to approval by Russian anti-monopoly authorities and completion of definitive legal documentation.
The deal will result in Highland Gold's stake in Novo increasing to 96.6%.
The deal marks a reversal of a 2006 transaction when Highland sold a 48.3% interest in the project to Kazzinc in order to develop the project jointly.
It was determined at the time that the project would be economically viable if a solution could be found to sell the gold-rich lead flotation concentrates that would be produced by the mine on the international metal market.
Kazzinc is a major fully integrated zinc producer, created in 1997 when three of eastern Kazakhstan's main metals companies merged. Glencore International PLC owns 50.7% of Kazzinc's shares and plans to increase its stake to 93% in a $3.2 billion deal.
Fortum eyes energy generation assets
http://www.rbcnews.com/free/20111123132449.shtml
RBC, 23.11.2011, Moscow 13:24:49.The Russian subsidiary of Finnish energy corporation Fortum operating in the Urals and Western Siberia is looking to acquire power generation assets in Russia, Fortum's First Deputy CEO Sergey Chizhov said at the conference "Russian Power: Finance and Investment," held by the Adam Smith Institute in Moscow.
The power company intends to focus on the regions where it already has a footprint and could consider buying hydropower plants, Chizhov noted, adding that the company has not yet negotiated any deals with RusHydro, the major player in the segment.
However, Fortum does not expect to acquire power grid or sales operators, Chizhov went on to say.
RosCap taps $2bn loan
http://www.rbcnews.com/free/20111123110720.shtml
RBC, 23.11.2011, Moscow 11:07:20.Bank Rossiysky Capital (RosCap) has contacted a USD 2bn loan with Citibank, RBC Daily reports. The loan matures in March of 2014 and will be allocated to corporate and retail lending, RosCap explained. The loan was co-signed by the state Deposit Insurance Agency.
RosCap is currently being restructured by the Deposit Insurance Agency, which sank a total of RUB 16.2 (approx. USD 512m) into the troubled bank, which had found itself on the verge of bankruptcy amid the economic crisis.
Otkritie targets major private pension fund
http://www.rbcnews.com/free/20111123105031.shtml
RBC, 23.11.2011, Moscow 10:50:31.Otkritie Financial Corporation has entered into a deal to purchase a major Russian private pension fund NPF Elektroenergetiki (NPFE) for RUB 4.5bn-5bn (approx. USD 145m-161m), a source close to the deal told RBC Daily. The parties are expected to announce the deal before the end of 2011.
The country's largest bank Sberbank also planned to buy NPFE last year, but the fund demanded an excessive price, about 20% of its assets, which amounted to RUB 37bn (approx. USD 1.19bn) at that time, the source said.
In 2010, NPFE tripled its pension savings under management to RUB 9.5bn (approx. USD 306m), reserves rose to RUB 26.3bn (approx. USD 847m) and assets currently total RUB 47bn (approx. USD 1.51bn).
Aeroflot to consider buying Airbus planes worth $2.25 bln-reporthttp://in.reuters.com/article/2011/11/23/aeroflot-airbus-idINL5E7MN01L20111123
10:29am IST
MOSCOW, Nov 23 (Reuters) - Russia's flagship airline Aeroflot will consider on Wednesday an offer for the purchase of 30 Airbus 320 aircraft worth $2.25 billion, Russian business daily Vedomosti reported citing Aeroflot and Airbus sources.
It said the possible order for the planes would likely be placed via Rostekhnologii, or Russian Technologies, a corporation which groups most of the state-owned defence enterprises.
Aeroflot was not immediately reachable for comment on the report.
Aeroflot, which historically has bought the bulk of its fleet from Airbus, has favoured arch rival Boeing more recently as its preferred supplier.
The company, which was set up in 1923 as the Soviet national airline, embarked on a campaign to renew its fleet last year after the state merged fragmented aviation assets into its flagship carrier. (Reporting by Vladimir Soldatkin; Editing by Vinu Pilakkott)
Polymetal offers 531.15 rbls per share in buybackhttp://af.reuters.com/article/metalsNews/idAFL5E7MN04Y20111123
Wed Nov 23, 2011 6:21am GMT
Russian precious metals miner Polymetal International, which recently secured a premium listing on the London Stock Exchange, on Wednesday offered to buy its shares at 531.15 roubles per share.
Polymetal last month raised 491 million pounds ($780 million) in a share sale and is now on the verge of joining the FTSE 100 index.
It must now buy out a total of 16.7 percent of shares in the Russia unit, including 8.6 percent held as treasury shares, in the final stage of the transformation.
PMTL aims to buy out Polymetal minority shareholders
http://www.rbcnews.com/free/20111123112506.shtml
RBC, 23.11.2011, Moscow 11:25:06.PMTL Holding Limited, a subsidiary of gold and metal producer Polymetal, has filed a mandatory offer with the Federal Financial Markets Service to purchase up to 66.7m shares in Polymetal at RUB 531.15 (approx. USD 17.1) per share from its minority shareholders.
The offer is part of a restructuring deal involving the transfer of a majority of Polymetal's shares to a newly established holding Polymetal International. At the first stage, Polymetal was expected to swap its ordinary shares and Global Depositary Receipts for Polymetal International's shares at a one-to-one ratio, but only 83.3% of the company's shareholders accepted the offer.
Severstal and NMDC to ink JV pact on December 16http://www.steelguru.com/indian_news/Severstal_and_NMDC_to_ink_JV_pact_on_December_16/237127.html
Wednesday, 23 Nov 2011ET reported that Severstal and NMDC, India's largest iron ore miner, plan to sign their joint venture pact for the proposed USD 3 billion steel plant in Karnataka, on December 16, when Prime Minister Manmohan Singh is scheduled to visit Moscow.
Mr Rana Som CMD of NMDC told ET that "We hope to sign the JV agreement on December 16 in Moscow.”
He added that "The Russian side is very keen to finalize the joint venture. However, in addition to the shareholders agreement, we have to complete loads of other requisite paperwork by that time.”
Two teams of officials from NMDC and Severstal which is controlled by Russian billionaire Mr Alexei Mordashov are busy finalizing the legal and supply issues that need to be resolved before signing the agreement. As per the initial agreements, NMDC will provide the iron ore linkage, while Severstal will bring in coking coal.
The joint venture agreement was initially scheduled to be completed later, but now they want to finalize the JV during the PM's visit. The joint venture between NMDC and Severstal is being widely seen as an extension of the global battle between the Russian major and its traditional rival, ArcelorMittal.
(Sourced from ET)
MTS, VimpelCom May Bid for Ukrainian 3G Company, Vedomosti Sayshttp://www.businessweek.com/news/2011-11-23/mts-vimpelcom-may-bid-for-ukrainian-3g-company-vedomosti-says.html
November 23, 2011, 1:14 AM EST
By Halia Pavliva
Nov. 22 (Bloomberg) -- OAO Mobile TeleSystems, Russia’s largest mobile-phone operator, may jointly bid with VimpelCom Ltd. for a third-generation mobile service company in Ukraine, Vedomosti newspaper reported, citing an unidentified person close to a Ukrainian cell-phone company.
MTS and VimpelCom’s Ukrainian unit ZAT Kyivstar GSM are considering a joint offer for a VAT Ukrtelecom subsidiary that has a 3G license, the newspaper said, citing an unnamed person close to VimpelCom.
--Editor: Emma O’Brien
To contact the editor responsible for this story: David Papadopoulos at [email protected]
Private investors in Sochi-2014 Olympics desperate to see returns http://en.rian.ru/world/20111123/168962412.html
11:34 23/11/2011
MOSCOW, November 23 (RIA Novosti) – Private investors may never see a return on their investments to build facilities for the Winter Olympic Games in the Russian
southern city of Sochi in 2014, a federal government official and top managers of the firms participating in the Sochi-2014 project were quoted by Vedomosti business daily as saying on Wednesday.
Investments in the construction of projects for the Sochi Olympic Games are loss making because calculations were wrong, which means the final bill increased 300 percent, Vedomosti quoted one of the managers as saying.
Another top manager said it was essentially state corporation Olympstroy that had not provided investors with infrastructure they needed in time forcing them to build it at their own expense, while the federal government official said it was not Olympstroy that was to blame for higher costs, but additional requirements of the International Olympic Committee.
Russian state corporation Vnesheconombank which finances the project has provided 87.7 billion rubles, or $2.8 billion of credits, compared with a total of 145 billion rubles necessary for the projects. There are five investors participating in the building projects for Sochi-2014 Olympics, including three Russian tycoons - Oleg Deripaska, Vladimir Potanin and Ahmed Bilalov.
United Grain and Dalport to Put $160M in Pacific Terminal 23 November 2011The Moscow Times
State-owned United Grain Company said Tuesday that it agreed with privately held Dalport to invest up to 5 billion rubles ($160 million) to build a grain terminal on the Pacific coast.
Under their memorandum of understanding, the terminal at the Vostochny port, near Nakhodka, will export up to 5 million tons of grain. They plan to start construction next year and complete the work by 2014.
"We see the potential of the Siberian and Far East federal districts to increase production and export of quality Russian grain," United Grain's chief executive Sergei Lyovin said in a statement. "But the existing infrastructure to handle grain in the Far East doesn't meet either the capacity of Russian growers or the demand of the dynamically developing Asian markets."
In order to increase eastbound exports, Russia also needs to build new silos and purchase grain ships, he said.
Southeast Asian countries are among "priority destinations" for the company to increase its exports, the company said recently. Russia's grain exports may reach at least 40 million metric tons by 2020, it said.
The company aims to raise cereal exports to 16 million tons in 2015.
United Grain plans six grain silos in Siberia with a total capacity of 1.5 million to 1.8 million tons a year, Aram Gukasyan, the company's deputy chief, said in the earlier statement.
The government created United Grain in March 2009 to increase exports and regulate the domestic market through purchases and sales. Russia now plans to sell a stake in United Grain to private investors and might eventually give up all ownership of the company.
President Dmitry Medvedev signed a decree on Nov. 7, which was published in the government's Rossiiskaya Gazeta, to sell a stake of 50 percent minus one share within six months of that date.
The government may relinquish all ownership of United Grain by 2017 under its privatization program, company spokesman Viktor Krupenin said, Bloomberg reported.
Read more: http://www.themoscowtimes.com/business/article/united-grain-and-dalport-to-put-160m-in-pacific-terminal/448389.html#ixzz1eW3Lxoye The Moscow Times
Russia's Renova may build manganese sinter plant in South Africa http://www.youtube.com/watch?v=vYzAFXxI_u0
MiningWeekly
Uploaded by MiningWeekly on Nov 22, 2011
Russian company Renova is considering the integration of its South African
Activity in the Oil and Gas sector (including regulatory)
Japanese companies may join Sakhalin-III projecthttp://en.rian.ru/world/20111123/168962225.html
11:28 23/11/2011
MOSCOW, November 23 (RIA Novosti)
Japanese companies may join the Sakhalin-III gas project off Russia's Pacific Coast as part of a large energy deal, which Russia and Japan plan to sign in the next twelve months, a Japanese government source said on Wednesday.
"There is a possibility that Russia and Japan will make such a deal within a year. We are working on it," the source said.
Prime Minister Vladimir Putin ordered the government in March to expedite the implementation of the Sakhalin-III project to help Japan meet its energy demand after a 9.0-magnitude earthquake and tsunami triggered a nuclear crisis in the country.
The gas resources of the Sakhalin III project are estimated at some 1.4 trillion cubic meters. Most of them are concentrated in the Kirinsky block.
Gazprom holds licenses for the Kirinsky, Ayashsky and Vostochno-Odoptinsky blocks within the project and for the Kirinskoye gas and condensate field.
The other parnters in the project are Russian top oil producer Rosneft and China's Petroleum and Chemical Corporation (Sinopec), which are jointly developing the Veninsky oil and gas block.
Gazprom
MVM May Build Hungarian Part of Gas Pipeline, Vilaggazdasag Sayshttp://www.bloomberg.com/news/2011-11-23/mvm-may-build-hungarian-part-of-gas-pipeline-vilaggazdasag-says.htmlQBy Andras Gergely - Nov 23, 2011 8:15 AM GMT+0100
Hungarian state-owned electricity wholesaler MVM Zrt. may build the country’s section of the South Stream natural gas pipeline after getting a government mandate to assess the project, Vilaggazdasag reported.
The Development Ministry and MVM are negotiating with OAO Gazprom about extending Hungary’s Russian gas import contract beyond its 2015 expiry date, and the pipeline may be used to transport gas purchased under the contract, the newspaper said, without citing anyone.
MVM is expanding in the natural gas market; it plans to start new turbines at its Bakonyi power plant as early as this year and has been in talks to acquire the Hungarian gas units of Germany’s EON AG, the newspaper reported.
To contact the reporter on this story: Andras Gergely in Budapest at [email protected]
To contact the editor responsible for this story: Gavin Serkin at [email protected]
November 23, 2011 12:09
Gazprom, Bavaria discuss prospects for joint gas generationhttp://www.interfax.com/newsinf.asp?id=289395
MOSCOW. Nov 23 (Interfax) - Gazprom (RTS: GAZP) CEO Alexei Miller and Bavarian Prime Minister Horst Seehofer have discussed possibilities for implementing joint projects in the area of gas generation, Gazprom said in a press release.
"The participants in the meeting considered the prospects for developing Russian-German cooperation in the energy sphere. They also continued the dialog on possibly implementing joint projects in the area of gas generation in Bavaria," the press release said.
Of the 16 states in Germany, Bavaria is the largest in terms of land area. It also possesses the largest economic and scientific potential and leads the country in economic growth. Bavaria's most developed industries include machine building, electrical engineering, energy and chemicals.
Eb
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Gazprom - Beltransgaz deal details
http://www.bne.eu/dispatch_text17938
VTB CapitalNovember 23, 2011
News: According to Kommersant, MinEnergo has prepared a draft law that might be
signed on 25 November stipulating a minimum margin for Beltransgaz of USD 15.95/mcm. This margin implies growth in line with inflation through 2031, and not less than USD 11/mcm thereafter. The income tax rate for the company is to be decreased from the usual 24% to 18%. Kommersant also writes that in 2010 Beltransgaz reported net losses of USD 1bn and the paper’s unofficial sources speculate that the company is highly leveraged. To recap, Gazprom is planning to acquire 50% of Beltransgaz for around USD 2.5bn.
Our View: Beltransgaz’s profitability is highly dependent on domestic gas prices in Belarus and the cost of purchased gas. Were domestic prices to remain constant throughout 2012 and the discount for gas purchased from Gazprom be as planned (around USD 150/mcm), that would shift approximately USD 3bn of profit from Gazprom to Beltransgaz. In light of the planned acquisition, this might be justified as the tax regime in Belarus is more favourable. However, this scenario would make little sense for Belarus and we expect Belarus gas prices to decrease following the reduction of Gazprom prices. The news in itself is neutral for the company, but we remind investors of the price that Gazprom pays for the government’s political goals.
Gazprombank goes on roadshow with potential Eurobond
http://www.bne.eu/dispatch_text17938
RencapNovember 23, 2011
Yesterday (22 November), Debtwire reported that Gazprombank (GPB) is arranging a series of investor meetings next week. According to the agency's sources, GPB is looking to issue a dollar-denominated Reg S bond following the roadshow, with no further details on the potential size. GPB's existing bonds are trading at about a 470-bpt spread to dollar swaps (5.7-5.8% YtM depending on maturity), i.e. approximately 150 bpts over their pre-crisis level, or at around a 100-bpt spread to Sberbank paper.
We think GPB is unlikely to tap the eurobond market at the cost of paying a high premium to the secondary market.The primary market for major Russian issuers is mainly focused on short-term commercial paper or non-dollar issues targeting a particular investor base, and GPB's most recent CHF350mn two-year issue (with a coupon of 4.375%) is an example. For banks, syndicated loans are an additional refinancing option that remains available and economically attractive for borrowers in unfavourable market environment.
Shtokman tax breaks will come – Totalhttp://www.barentsobserver.com/shtokman-tax-breaks-will-come-total.4988186-16178.html
2011-11-23 When the tax breaks are in place, a final investment decision will be made by the end of this year or early next year.
- We do everything so that it takes place by the end of the year or at the start of next year. The answer of the Russian authorities to our requests regarding tax conditions will be a factor for the final investment decision. But I don’t expect them to refuse, says the head of Total’s exploration and production division Yves-Louis Darricarrere interviewed by Dow Jones Newswires.
Darricarrere says the project is both “technically challenging” and “expensive” and therefore is tax breaks critical for the partners in order to make a positive investment decision.
At a Norwegian, Russian business seminar in Moscow earlier in November, Shtokman partner Statoil said it even clearer:
- The project as it is today is not commercially viable, Jan Helge Skogen said. He is head of Statoil in Russia. A Russian government guarantee of tax breaks for the Shtokman gas field is urgently required if a final investment decision in the project is to be made before the end of the year as planned, BarentsObserver reported.
Such tax breaks plan will most likely be put on the table by the Russian Government during December. The comprehensive package of tax breaks and other benefits for the companies operating on the Arctic shelf is now in pieplie.
Total’s Yves-Louis Darrucarrere says they are ready to hand contracts for the offshore part of the project. - As for the onshore part of the project, we should be in a similar position by the end of the year, he said in the Dow Jones Newswires interview.
French Total is partner with Norwegian Statoil and Russia’s Gazprom in the Shtokman Development AG. The company will be the owner and operator of the project infrastructure during Phase 1 — for a period of 25 years from the start of field production.
