Russia - WikiLeaks
Russia 091022
Basic Political Developments
• PTI News: Russia to get 1,200 kg of enriched uranium from Iran
• Bloomberg: Iran Says It’s Ready to Ship Uranium Stocks to Russia (Update2)
• : Russia To Top India’s Foreign Policy Priority
• Zeenews: Visa abuse: India assures long term permits for Russian - India has assured Russia that 700 Russian experts and technicians involved in its various civilian and defence projects, including the Kudankulam nuclear power plant, would be granted long term work permits.
• Itar-Tass: Russian, Tajik leaders to hold talks, sign joint statement
• RIA: Tajik president begins three-day visit to Russia
• Reuters: Tajik leader raps Russia on slow energy investment
• Itar-Tass: Russia-NATO Council begins regular consultations on Afghanistan
• Kyivpost: Rosoboronexport: Russia supplies NATO with NATO-standard weaponry
• The Moscow Times: Resetting NATO Relations - To better coordinate their approach toward Moscow, Western countries should pursue all possible avenues — particularly in multilateral forums such as the European Union and NATO. By Donald K. Bandler and Jakub Kulhanek
• The Jakarta Post: RI, Russia establish joint commission
• Nhan Dan: Russia eager for joint ventures with Vietnam
• Vietnam News: President meets Russia and Myanmar officials
• Apa.az: Baku hosts international conference on Caspian security
• RIA: Azerbaijani, Armenian MPs to talk Karabakh settlement in Moscow
• Public Radio of Armenia: Armenian, Azerbaijani MPs to meet at the Russian State Duma
• The Financial: Azerbaijani, Armenian MPs to talk Karabakh settlement in Moscow
• WSJ: Russia Withdraws Bank of New York Mellon Suit
• RIA: Cuban rum producers intend to increase exports to Russia
• AGI News: Berlusconi In Russia: Frattini, Meeting On Strategic Issues
• Reuters: UPDATE 1-Russia's Putin meets Berlusconi, German businessmen
• RIA: Russia's PM Putin, Italy's Berlusconi to discuss car production
• Itar-Tass: Putin, Berlusconi to discuss investment projects, trade, economic relations
• Telegraph.co.uk: Silvio Berlusconi 'snubbed King of Jordan to party with Vladmir Putin'
• ISRIA: Russia - Prime Minister Vladimir Putin met with German business leaders
• RBC: Ukraine wants gas contract changed - Ukraine has suggested to Russia, that the amount of gas set out in Ukraine's contract with Gazprom be altered, Ukrainian presidential envoy for energy security Bogdan Sokolovsky said while on his visit to Austria, Germany and Belgium
• RIA: Ukraine hopes to sign nuclear fuel contract with Russia
• RIA: Russian Pacific Fleet warships to visit Malaysian port
• The Malta Independent Online: Malta may let in Arctic Sea dry cargo ship on some conditions
• The Malta Independent Online: Russian-Ukrainian crew of Malta-flagged ship asks for assistance in paying off salaries
• Axisglobe: Large-scale exercises of Russian security services to take place in Gatchina near St.Petersburg
• Itar-Tass: Car of district criminal police chief blasted in Ingushetia
• RIA: Five injured in Chechnya suicide bombing
• Itar-Tass: Suicide bomber blasts self in Grozny; five injured
• Apa.az: New terrorist network disarmed in Bashkiria
• Interfax: Hizb ut-Tahrir cells neutralized in Bashkortostan
• Itar-Tass: Blast rips through apartment building in Kabardino-Balkaria
• Russia Today: Russian parliament threatened with a strike over salary slash
• RIA: United Russia councillor killed near Moscow
• Itar-Tass: Member of United Russia murdered in Moscow region
• RIA: The goal for 2010 conscripts - to make it to the enrollment office – By Dmitry Babich
• Euractiv: Russian 'hot air' threatens UN climate deal
• Russia Profile: Flirting with the WTO - Russia’s Latest Announcement Will Allay Concerns Voiced by WTO Head Pascal Lamy That “There Is No Energy in Moscow to Join”
• : Russia ‘will join WTO’ despite confusion
• NY Times: Oligarchs Get an Earful From Russian President
• Reuters: Stop bribing courts, Medvedev tells oligarchs
• : U.S. puts $100,000 bounty on suspected Russian crime boss
• Russia Profile: A False Alarm? - National Media Group Denies Plans to Outsource its News Production
National Economic Trends
• RIA: Russia's international reserves up $4.7 bln to $423.4 bln in week
• : Budget deficit forecast narrowed
• Itar-Tass: Duma approves 2010 draft budget
• Bloomberg: Russia Warns Reduced Access to Credit a Main Concern (Update4)
Business, Energy or Environmental regulations or discussions
• Bloomberg: Lukoil, Mechel, Polymetal, Rosneft: Russian Equity Preview
• Bloomberg: VEB Wants to Sell Stock, Bonds Bought in Crisis, Vedomosti Says
• Reuters: Russia VEB in talks with govt over portfolio –paper
• Nasdaq: Russian Customs Service Withdraws Lawsuit Vs Bank Of NY Mellon
• RBC: Russian Railways posts preliminary revenue
• Reuters: BRIEF-Russia's Polymetal Q3 gold output up 3 pct yr/yr
• Reuters: UPDATE 1-Russia's Polymetal Q3 gold output 3 pct up yr/yr
• Reuters: Norilsk wants OGK-3 power unit to sell shares-paper
• Bloomberg: Novolipetsk Seeks to Boost Steel Capacity 40% by 2012-2013
• Steel Guru: Severstal steel mills in US reach 95pct utilization
• Lawmakers urge Severstal to either reopen or sell Ohio steel mills
• Western Producer: Russia to take beef, sheep - Canadian livestock exporters are praising a deal that will pry open the Russian border, creating close to $50 million in export opportunities for beef and sheep.
• : Russia: VW Kaluga plant to add Audis
• Flexnews: Russian Retailer Dixy Plans 100 New Shops in 2010
Activity in the Oil and Gas sector (including regulatory)
• Barentsobserver: Rosneft for sale
• Itar-Tass: Ukraine proposes to reduce volume of gas purchased from RF
• Focus: Bulgarian Minister of Economy, Energy and Tourism Traicho Traikov will hold talks in Moscow with Sergey Sobyanin – a Deputy Prime Minister of Russia and leading figure in Russia’s government.
• : Russia Refutes Claims of Striking Burgas-Alexandroupolis
• OilVoice: TNK-BP Will Invest $180 Million in 2010 Into Russkoe Field Development
• : Russia Eyes New Markets as Far East Oil Reaches Terminal
Gazprom
• Upstreamonline: Gazprom mulls shale player buy
• UPI: South Stream construction in 2010?
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Full Text Articles
Basic Political Developments
PTI News: Russia to get 1,200 kg of enriched uranium from Iran
STAFF WRITER 12:18 HRS IST
Vienna, Oct 22 (Itar-Tass) Russia is to get 1.2 tons of low enriched uranium from Iran for further refinement by the end of 2009. This is what the participants in the negotiations that ended here on Wednesday count on to get fresh nuclear fuel for the research reactor in Tehran.
"The agreed text of the document fully suits the Russian side. It envisages that by the end of the year we will get 1.2 tons of Iranian uranium. The refinement level of this uranium equals 3.5 per cent. This index one has to upgrade to approximately 19.75 per cent," a well-informed source close to the Russian delegation said yesterday.
Iran counts on receiving ready fuel assemblies not later than end of 2010. The participants in the negotiations are ready to undertake all necessary efforts to this effect, the interlocutor added.
Bloomberg: Iran Says It’s Ready to Ship Uranium Stocks to Russia (Update2)
By Jonathan Tirone
Oct. 21 (Bloomberg) -- Iran said it is ready to accept a deal under which Russia would supply it with enriched uranium for a research reactor, improving the prospects for broader talks aimed at allaying Western concerns that the Persian Gulf country seeks an atomic bomb.
The United Nations nuclear agency circulated a compromise between Iran, the U.S., France and Russia on providing Iran with the fuel for the Tehran reactor during talks today in Vienna.
Under the proposal, Iran may ship some or all of the 1,500 kilograms (3,307 pounds) of low-enriched uranium at its Natanz fuel-fabrication plant. It will be further enriched in Russia and converted into fuel for the reactor, which supplies medical isotopes to more than 200 hospitals in Iran.
“We are masters of enrichment technology,” Iran’s International Atomic Energy Agency ambassador Aliasghar Soltanieh told reporters after the meeting. “We could produce the fuel for ourselves for this nuclear reactor but we have decided that we will receive the fuel from the potential suppliers willing to do so instead.”
Diplomats are trying to strike a deal to supply Iran with the fuel, while assuaging Western concerns that the country is using atomic technology for military purposes. Iran maintains its nuclear program is lawful and designed for civilian purposes such as electricity generation.
The U.S. praised mediation by IAEA Director-General Mohamed ElBaradei, saying that the draft agreement presented by by him “was a very positive step,” State Department spokesman Ian Kelly told reporters in Washington today.
Russian Role
The countries have until Oct. 23 to inform the IAEA formally whether they accept the compromise, ElBaradei told reporters after the meeting ended around 1 p.m. in Vienna.
Russia would be the “main party for the supply of fuel” under the proposal, Iran’s state-run Fars news agency cited Soltanieh as saying.
This week’s three days of technical talks followed a meeting between Iran and the leading United Nations powers Oct. 1 to try to resolve the dispute over Iran’s nuclear program. The Persian Gulf country is under three sets of UN sanctions for persisting with its atomic work.
“Everyone is aware that the transaction using Iran’s low- enriched uranium to be manufactured into fuel is a very important confidence-building measure that can defuse the crisis that has been going on for years,” said Elbaradei, who retires next month from the agency he’s led for 12 years. “The spirit here was very constructive.”
Tehran Reactor
Iran said Oct. 19 it would begin work to increase the level of enrichment in its uranium program to produce fuel for the reactor unless other countries supplied it with the material. Iran currently produces low-enriched uranium, which it says is needed for power plants, while the U.S. and some allies say it is working to make highly enriched uranium for a bomb.
Iran sent the IAEA a letter on June 2 expressing its desire to import enriched uranium for its Tehran research reactor, Soltanieh said. That original inquiry resulted in Russian and U.S. responses expressing willingness for a deal.
The proposal “reflects a balanced approach to move forward,” ElBaradei said. “If we do get an affirmative action, then I hope we can have an agreement that can be sent to the board of governors.”
“We have had very constructive discussions, intensive discussions,” Soltanieh said. “There have been proposals. We had thorough discussions on these issues. We have to thoroughly study this text and have further elaboration in capitals and will come back and reflect.”
To contact the reporter on this story: Jonathan Tirone at jtirone@
Last Updated: October 21, 2009 14:05 EDT
: Russia To Top India’s Foreign Policy Priority
Last Updated: 2009-10-22T09:29:33+05:30
External Affairs Minister S M Krishna has mentioned that India’s relation with Russia will always be given the top priority when foreign policy of India is considered. He mentioned this while holding discussion with Russian President Dmitry Medvedev on a range of international bilateral issues, including that of Afghanistan.
"We in the government have been insisting that this time-tested relationship has weathered many storms and out of which it has always emerged even stronger," Krishna said, stressing that Russia will always top India’s foreign policy priority.
Krishna was addressing the media after holding discussions with Medvedev.
"A wide range of bilateral and international issues, including Afghanistan, were discussed in the meeting with Medvedev. On all the issues we have similar views," Krishna said.
He even cited the help rendered by Russia while India was struggling for its independence.
Medvedev said the two countries had cooperated in "joint work against current threats like terrorism, narco-crime and organised crime" as well in battling the effects of the global economic crisis.
According to the Minister of External Affairs, the visits of Manmohan Singh to Yekaterinburg during June as well as the visit of Indian President Pratibha Patil during September is the indication of the extent to which India values the relation with Russia.
Zeenews: Visa abuse: India assures long term permits for Russian
Updated on Thursday, October 22, 2009, 13:38 IST
Moscow: India has assured Russia that 700 Russian experts and technicians involved in its various civilian and defence projects, including the Kudankulam nuclear power plant, would be granted long term work permits.
"We will resolve the issue (of their visas). The Russians would not need go out of India to seek change of their visa," External Affairs Minister S M Krishna, who was here on two-day official visit, told reporters before leaving for Tashkent.
The government has directed all foreigners working in India with business visa to convert its status to employment visa by October 31 or else leave the country.
The decision was aimed at ending the misuse of business visas by about 25,000 mostly semi-skilled Chinese workers but had raised concerns among Russian experts who are involved in defence and nuclear projects executed in India by the Russian companies.
During his parleys with Vice-premier Sergei Sobyanin and Foreign Minister Sergei Lavrov yesterday Krishna assured them that none of the Russian experts and technicians would have to leave India for changing the status of visa.
Bureau Report
Itar-Tass: Russian, Tajik leaders to hold talks, sign joint statement
22.10.2009, 01.33
MOSCOW, October 22 (Itar-Tass) - The stepping up of economic cooperation will top the agenda of talks between Russian President Dmitry Medvedev and Tajik leader Emomali Rakhmon on Thursday. The two leaders intend to sign a joint statement after their negotiations.
Tajikistan's Rakhmon, who arrived in the Russian capital on October 22-23, is on a state visit. "A state visit is the highest form of international contacts in the diplomatic protocol. As a rule, the head of a foreign state is received on a visit of such rank only once during his tenure," the Kremlin press service said.
"Until now, there have been no state visits in the history of Russian-Tajik relations," it said.
An official visit of Tajikistan's president to Russia took place in April 1999, when a treaty of allied interaction, oriented toward the 21st century, was signed.
In October 2004 and August 2008, the Russian president made official visits to Tajikistan.
The Kremlin believes that Rakhmon's current visit "will continue the development of regular and active Russian-Tajik political dialogue at top level," because this year alone, the leaders of the two countries met six times in different formats."
On Wednesday evening, Medvedev and Rakhmon had an informal talk in the presidential residence outside of Moscow.
On Thursday, the presidents will hold negotiations in which the delegations of the two countries will participate. An official state reception on behalf of the Russian president will take place in honor o the Tajik leader, which is a mandatory part of state visit's protocol.
"The parties are expected to consider the key issues of bilateral cooperation, determine the moves toward further development of allied relations and strategic partnership between Russian and Tajikistan," a Kremlin official said.
One of the key items on the agenda is the stepping up of economic cooperation.
The Kremlin said among the key fields of cooperation is hydroelectric power generation. The Sangtudin hydroelectric power plant is a symbol of mutually advantageous cooperation.
At present, Russian specialists are working through plans to build small and medium hydroelectric power plants on mountainous rivers of Tajikistan.
Russian companies also have projects in Tajikistan's oil and gas sector and the mining industry, on the market of telecommunications and new technologies and the traditional sectors of bilateral economic cooperation - construction, transport, production of foodstuffs and food processing.
The Kremlin noted that "Russia and Tajikistan have traditional close ties in the cultural and humanitarian fields." They are implementing several large projects. For example, the Education Ministries coordinated supplies of Russian scientific-methodological literature and fiction to Tajikistan.
Under the federal goal-oriented program "Russian Language," 25,000 books will be supplied to Tajikistan, including 8,000 to the school under the Russian-Tajik (Slav) University in Dushanbe."
The Russian World Foundation will replenish Tajikistan's libraries with works by Russian classics.
In September, a branch of Moscow's Lomonosov University was opened in Dushanbe.
The Moscow State Energy Institute and the Moscow Institute of Steel and Alloys also plan to open their branches in the Tajik capital.
Medvedev and Rakhmon will continue their regular exchange of opinions on the pressing intentional issues, including interaction within the framework of the Commonwealth of Independent States, the Eurasian Economic Community, the Collective Security Treaty Organization, the Shanghai Cooperation Organization, and coordination of efforts in counteracting challenges and threats from international terrorism, transnational organized crime, and drug trafficking.
"The development of allied relations between Russia and Tajikistan plays an important role in the strengthening of peace and security and Central Asia. The deployment of the 201st Russian military base is a serious stabilizing factor in the region," the Kremlin said.
The press service reported that the two leaders would sign a joint statement.
On the second day of the visit, October 23, the Tajik president will pay a visit to the Moscow State University, and the institute of Oriental Studies. Rakhmon is planning to meet with representatives of the Tajik community in Moscow.
RIA: Tajik president begins three-day visit to Russia
22:0121/10/2009
BARVIKHA, October 21 (RIA Novosti) - Tajik President Emomali Rakhmon began his three-day visit to Russia on Wednesday with an informal meeting with Russian leader Dmitry Medvedev at the presidential residence near Moscow.
Speaking at Barvikha, Medvedev expressed hope that the Tajik leader's visit would see a discussion of "all the issues that link our two states."
"I am sure the visit will give an impetus to our relations," the Tajik president said.
On Thursday, the two leaders will hold official talks in the Kremlin, where they could discuss the situation around a Russian military base in the former Soviet republic.
In September, the Tajik Defense Ministry denied rumors that it would charge Moscow $300 million in rent for the base, Russia's largest outside its borders, or that it could be closed.
The 201st Base has about 7,000 personnel, comprising three motorized infantry regiments, a self-propelled artillery regiment, an anti-aircraft missile regiment, and a combat helicopter group.
Reuters: Tajik leader raps Russia on slow energy investment
Wed Oct 21, 2009 3:39pm IST
DUSHANBE, Oct 21 (Reuters) - Tajik President Imomali Rakhmon has criticised Russia for being slow to deliver on its promises of energy investment in the impoverished Central Asian state, state media reported on Wednesday ahead of his visit to Moscow.
The former Soviet republic has been courted by the United States in recent months because of its role as a transit nation for supplies heading to U.S. troops in nearby Afghanistan, further fuelling decades-long Russia-U.S. rivalry in the region.
Rakhmon, due to arrive in Moscow on Wednesday, met Russia's Energy Minister Sergei Shmatko on Tuesday to discuss bilateral ties, state news agency Khovar reported.
"The progress in the implementation of bilateral agreements and agreements ... to build three medium-power hydroelectric plants has been assessed as unsatisfactory," it reported.
Rakhmon did not talk to the press after the meeting which took place behind closed doors.
Resource-poor Tajikistan suffers from an energy deficit and has insufficient funds to expand its power generation facilities.
"The speed ... at which Russia's Gazprom (GAZP.MM: Quote, Profile, Research) implements its plans to explore and develop natural gas has been deemed insufficient ... Work has started only at one of the four fields that have been given to Gazprom," Khovar reported.
The former Soviet republic has little leverage over Moscow but it hosts Russia's largest foreign military base, whose continued stay in Tajikistan was agreed in 2004 following $2 billion worth of investment pledges by Russia. (Reporting by Roman Kozhevnikov; Writing by Olzhas Auyezov; Editing by Elizabeth Fullerton)
Itar-Tass: Russia-NATO Council begins regular consultations on Afghanistan
21.10.2009, 19.58
BRUSSELS, October 21 (Itar-Tass) --The Russia-NATO Council on Wednesday began regular expert consultations on practical cooperation between Russia and the alliance in Afghanistan, Russian permanent representative to NATO Dmitry Rogozin said.
“The Council is meeting in an expanded format today at the level of ambassadors to discuss solely Afghanistan and security in that region,” he said.
“High-ranking experts from capitals have arrived specifically for the meeting, including Deputy Director of the Russian Foreign Ministry’s Second Asian Department Ali Mustafabeili, Deputy Head of the German Foreign Ministry’s Department for Afghanistan Thomas Sahnheisen, Head of the Department of South Asia and Afghanistan in the British Foreign Office Karen Piers, and Deputy U.S. Presidential Special Representative for Afghanistan and Pakistan Paul Jones,” Rogozin said.
He stressed that the meeting would “open a series of permanent contacts on Afghanistan between Russia and NATO at the ambassadorial and expert levels”.
Kyivpost: Rosoboronexport: Russia supplies NATO with NATO-standard weaponry
Today, 10:56 | Interfax-Ukraine
NATO countries buying Russian-made armaments and military hardware have acknowledged the quality of these products, Rosoboronexport Director General Anatoly Isaikin said in an interview to be published in the October 23 issue of the magazine VIP Premier.
"They buy anti-aircraft missile systems, helicopters, armor, close combat weaponry and munitions. All these armaments and hardware meet NATO standards," he said.
The deliveries are not large. "Obviously, these supplies cannot be compared with our deliveries outside of NATO, as NATO member countries mostly buy from Western producers," Isaikin said.
Meanwhile, the Russian defense sector adopts certain types of weaponry to NATO standards by request of the clients, he said.
The armies of East European states, which joined the alliance recently, still have plenty of Russian-made arms and military hardware. "These include Mikoyan MiG-29 aircraft, Mil Mi-17 and Mi-24 helicopters and anti-aircraft missile defense systems of the long, intermediate and shorter range," Isaikin said.
It is impossible to replace these armaments with new ones immediately, he remarked. "Thus, certain countries have asked us to modernize the hardware and bring it into compliance with NATO standards. We are capable of doing this modernization," he said.
The Moscow Times: Resetting NATO Relations
22 October 2009
By Donald K. Bandler and Jakub Kulhanek
Ever since U.S. Vice President Joe Biden called for pushing a “reset” button in U.S.-Russian relations, officials from both countries have been making tentative steps in that direction. Yet, the thaw in relations should not obscure the need for improvement of the overall state of relations between Russia and the West.
To better coordinate their approach toward Moscow, Western countries should pursue all possible avenues — particularly in multilateral forums such as the European Union and NATO. As for NATO, its new secretary-general, Anders Fogh Rasmussen, has declared that improving the alliance’s relations with Russia is one of his top priorities. Nevertheless, Moscow’s rapprochement with NATO still stands on rather shaky grounds.
But the window of opportunity for the alliance and Russia to sort out their differences may slowly but surely be closing. Although further NATO enlargement has been put on a back burner, the pledge made by the alliance leaders at the Bucharest summit in 2008 states that Ukraine and Georgia should be able to obtain membership eventually. In many ways, this constitutes a significant fault line in NATO-Russian relations, which is further exacerbated by the potential renewal of tensions on Georgia’s borders or in Crimea.
Steps to reset NATO-Russian relations need to be taken now. The key goal should be to construct more durable and effective building blocks for cooperation rather than to strive for quick fixes. Above all, the leaders of the alliance should make an unequivocal commitment to the NATO-Russia Council with an aim to transform it into a genuine pan-European security forum. Founded in Rome in 2002, the council has been hampered by crises of confidence, but neither NATO nor Moscow has walked away. Accordingly, we should treat the council as a primary venue for a sustained security dialogue between Russia and the alliance. The willingness to discuss even the thorniest issues on the agenda, such as the situation in post-war Georgia or arms control in Europe after the collapse of the Conventional Forces in Europe Treaty, could become instrumental in recovering lost trust. This might also prove appealing for the Kremlin leaders who have been calling for reforming the European security landscape to give Russia a larger voice on security issues in Europe.
Second, NATO and Russia should go the extra mile to intensify military-to-military cooperation. One of the apparently forgotten achievements of U.S. President Barack Obama’s July visit to Moscow was the signing of a series of military agreements to deepen bilateral exchanges and joint exercises between the two countries. NATO should utilize this blueprint and try to increase cooperation with the Russian armed forces in order to strengthen day-to-day contacts between our military forces. In addition, Russia and NATO should boost joint peacekeeping and combined training, increase intelligence sharing in the fight against terrorism, deploy joint maritime patrols and expand their cooperation in research and development with a focus on effective regional missile defenses in Europe.
Although these areas have been pursued to varying degrees of success, they should be pursued more vigorously. This would help instill a sense of cooperation and confidence in the minds of army officers and civilian leaders on both sides. Dmitry Rogozin, Russia’s representative to NATO, has repeatedly said his country would like to play a more active role in the stabilization of Afghanistan. The alliance should invite Moscow and the Collective Security Treaty Organization to participate more in aspects of cooperative international efforts such as countering drug trafficking and returning peace to war-torn Afghanistan.
NATO leaders should encourage working closely together and insist that Russia do its part in whatever new joint endeavors the alliance and Russia undertake. The current Russian leadership may ask to play a more prominent role in joint projects, but the Kremlin needs to deliver on its promises. In the meantime, the gradual increase and broadening of daily contacts between NATO and Russian officials should be encouraged because they will help build a more durable and trusting relationship.
Donald K. Bandler is a former career diplomat and special assistant to President Bill Clinton. Jakub Kulhanek is a research fellow at the Association for International Affairs in the Czech Republic.
The Jakarta Post: RI, Russia establish joint commission
Thu, 10/22/2009 12:07 PM | World
INDONESIA: Indonesia's chamber of commerce and its Russian counterpart has agreed to establish a joint business council to enhance the bilateral ties between both countries during a joint commission session that closed Tuesday.
"Indonesia and Russia discussed about bilateral ties in various sectors, such as trade, banking, energy, mining, agriculture and tourism," says a press release sent by the Foreign Ministry.
The Indonesian delegation was led by the Director General for American and European Affairs Retno L. P. Marsudi, while the Russia delegation was headed by a representative of the Indonesia-Russia Business Council, of Anatoliy I. Yarochkin.
Bilateral trade between Indonesia and Russia stood at US$1.6 billion in 2008, an increase by 114 percent from a year before. Indonesia and Russia are working on establishing cooperation between Jakarta's state oil company of Pertamina and Moscow's LukOil, Antam and RusAl, Minang Jordanindo and Chelyabinsk Tractor Plant. -JP
Nhan Dan: Russia eager for joint ventures with Vietnam
Last updated: 15:15 - October 22, 2009
Russia sees Vietnam as an important hub for its products to enter other countries in Southeast Asia and it is keen to establish joint venture companies for goods production in Vietnam , said the Russian Trade and Industry Minister.
Minister Victor B. Khristenko delivered the message to State President Nguyen Minh Triet during their meeting in Hanoi on October 21.
The Russian minister is currently here for the 13th meeting of the Vietnam-Russia Inter-governmental Committee for Economic, Commercial, Scientific and Technological Co-operation.
Both host and guest shared their joy at developments in the Vietnam-Russia relationships over the past years.
They agreed that based on the traditional political ties, the two countries’ economic, trade and investment co-operation has harvested encouraging achievements.
Besides their successes in bilateral co-operation projects in oil and gas exploration, the two countries are mulling on a possibility of carrying out co-operation projects in mechanical engineering and auto assembly industries in a third country.
President Triet told the Russian minister that Vietnam expects an increase in Russia’s investment in the country in such fields as aviation, nuclear power generation, and the development of metro system.
He appreciated the Intergovernmental Committee’s signing of a roadmap to implement a mid-term Russia-Vietnam action plan for the trade and investment sectors from now to 2012, and asked the two countries’ relevant ministries and sectors to focus efforts on deploying co-operative programmes. (VNA)
Vietnam News: President meets Russia and Myanmar officials
(22-10-2009)
HA NOI — Russia viewed Viet Nam as an important gate for its products entering other countries in Southeast Asia, said Russian Industry and Trade Minister Victor Khristenko.
Khristenko, who was talking to President Nguyen Minh Triet, said Russia was also keen to establish joint-venture production companies in Viet Nam.
The Russian minister was visiting Viet Nam for the 13th meeting of the Viet Nam-Russia Inter-governmental Committee for Economic, Commercial, Scientific and Technological Cooperation.
Besides joint success in oil and gas exploration, the two countries are considering the possibility of carrying out cooperation projects in mechanical engineering and auto assembly industries in a third country.
President Triet told the Russian minister that Viet Nam hoped for an increase in Russian investment in such fields as aviation, nuclear-power generation, and the development of a metro system.
Triet appreciated the Intergovernmental Committee’s roadmap towards a mid-term Russia-Viet Nam plan for trade and investment sectors until the year 2012.
Triet meets General
On the same day, President Nguyen Minh Triet received Chief of the General Staff of the Myanmar Armed Forces, General Thura Shwe Mann, who was paying a visit to Viet Nam at an invitation of Minister of National Defence Phung Quang Thanh.
Triet said he believed that the visit would open up a new development period in the co-operation between the armies of Viet Nam and Myanmar and contribute to improving the friendly relations between the two peoples.
He applauded the two ministries’ efforts on signing an agreement on national defence co-operation toward a practical and effective relationship on the issue.
The President said Viet Nam understood the difficulties Myanmar faced and was willing to share experience for the development of both countries.
He hoped Myanmar would successfully organise the 2010 election, overcome difficulties and challenges to build a peaceful and prosperous state.
General Thura Shwe Mann expressed his impressions on the achievements Viet Nam had gained during its Doi moi (Renewal) process and said Myanmar wished to successfully apply Viet Nam’s experience in its national construction and development.
He took the occasion to convey Myanmar Head of State Senior General Than Shwe’s invitation to President Nguyen Minh Triet to pay an official visit to Myanmar, which Triet accepted with thanks.
Previously, the General met with Minister of National Defence Phung Quang Thanh, who expressed thanks to the support of the Myanmar Government and people to Viet Nam’s previous resistance wars as well as its current national construction and defence.
He said he wished the co-operative relationship between the two armies to step up to the new height. — VNS
Apa.az: Baku hosts international conference on Caspian security
22 Oct 2009 11:58 ] [pic]
Baku. Lachin Sultanova – APA. Two-day conference on the security issues in the Caspian Sea has started in Baku, APA reports.
The delegations of Turkmenistan, Iran, Kazakhstan, Russia and Azerbaijan are attending the conference. Making a keynote speech at the conference Deputy Foreign Minister of Azerbaijan Khalaf Khalafov said this was the first meeting after the meeting concerning the discussion of the draft agreement on mutual activity and cooperation of the related bodies of the Caspian states held in Tehran in 2007. Deputy Foreign Minister said a number of decisions were passed at the Tehran meeting and it was decided to hold a conference on Caspian’s security. Khalaf Khalafov underlined that progress was made in the cooperation in the Caspian Sea. The conference continues without participation of media representatives.
RIA: Azerbaijani, Armenian MPs to talk Karabakh settlement in Moscow
03:5922/10/2009
BAKU, October 22 (RIA Novosti) - Azerbaijani and Armenian parliamentarians are set to discuss the Nagorny Karabakh conflict settlement in the lower house of Russia's parliament on Thursday, Azerbaijan's parliament said.
Five MPs from each side, as well as Azerbaijani and Armenian ambassadors to Russia and Russian presidential representative on international cultural cooperation Mikhail Shvydkoi, will take part in the meeting in the State Duma.
Nagorny Karabakh, a region in Azerbaijan with a largely Armenian population, has been a source of conflict between the former Soviet republics since the late 1980s. The mountainous province has its own government and is de facto independent.
Turkey and Armenia signed on October 10 historic accords restoring diplomatic relations and opening borders between the two countries. Turkey closed its border with Armenia in 1993 in a show of support for Muslim ally Azerbaijan, following the conflict over Nagorny Karabakh between the two ex-Soviet republics.
Public Radio of Armenia: Armenian, Azerbaijani MPs to meet at the Russian State Duma
22.10.2009 11:50
Azerbaijani and Armenian parliamentarians are set to discuss the Nagorno Karabakh conflict settlement in the lower house of Russia's parliament on today.
Five MPs from each side, as well as Azerbaijani and Armenian ambassadors to Russia and Russian presidential representative on international cultural cooperation Mikhail Shvydkoi, will take part in the meeting in the State Duma.
The Armenian delegation comprises Ara Baloyan (Republican Party of Armenia), Vardan Bostanjyan (Prosperous Armenia Party), Vahan Hovhannisyan (ARF Dashnaktsutyun), Hermine Nagdalyan (Republican Party) and Vardan Khachatryan (former Heritage party representative).
|The Financial: Azerbaijani, Armenian MPs to talk Karabakh settlement in Moscow |
| |
|22/10/2009 10:39 (00:16 minutes ago) |
|The FINANCIAL -- BAKU, Azerbaijani and Armenian parliamentarians are set to discuss the Nagorny Karabakh conflict settlement in |
|the lower house of Russia's parliament on October 22, Azerbaijan's parliament said. |
Five MPs from each side, as well as Azerbaijani and Armenian ambassadors to Russia and Russian presidential representative on international cultural cooperation Mikhail Shvydkoi, will take part in the meeting in the State Duma.
Nagorny Karabakh, a region in Azerbaijan with a largely Armenian population, has been a source of conflict between the former Soviet republics since the late 1980s. The mountainous province has its own government and is de facto independent.
Turkey and Armenia signed on October 10 historic accords restoring diplomatic relations and opening borders between the two countries. Turkey closed its border with Armenia in 1993 in a show of support for Muslim ally Azerbaijan, following the conflict over Nagorny Karabakh between the two ex-Soviet republics.
• OCTOBER 22, 2009, 4:26 A.M. ET
WSJ: Russia Withdraws Bank of New York Mellon Suit
By GREG WHITE and JACOB GRONHOLT-PEDERSEN
MOSCOW -- Russia's Federal Customs Service has withdrawn a $22.5 billion lawsuit against the Bank of New York Mellon Corp., a lawyer for the customs agency said Thursday.
As part of an out-of-court settlement, Bank of New York Mellon will pay $14 million in compensation for the trial costs, Maxim Smal said.
The lawsuit against the bank has been repeatedly adjourned, since Russia's Federal Customs Service filed the lawsuit in Moscow in May 2007. The service accused the bank of channeling funds received for exports to Russia in the late 1990s through accounts held at the bank.
The suit sought damages from the bank related to a U.S. Justice Department investigation in which a Bank of New York vice president allegedly helped to transfer $7 billion out of Russia in the late 1990s.
Write to Greg White at greg.white@ and Jacob Gronholt-Pedersen at jacob.pedersen@
RIA: Cuban rum producers intend to increase exports to Russia
10:0922/10/2009
HAVANA, October 22 (RIA Novosti) - Cuban rum producers intend to increase supplies to Russia to more than a million liters a year, a vice-president of a Cuban rum producing company said.
Cuba's current rum exports to Russia total some 30,000-50,000 boxes (270,000-450,000 liters) a year.
"Trade perspectives in Russia are promising," Juan Gonzalez, head of the Cuba Ron company, said. "Our products have a potentially large market in Russia, and we are taking steps to develop this direction [of trade]."
He added that Cuban rum producers hoped to export to Russia "hundreds of thousands of boxes" of rum in the near future.
"Supplies will certainly increase, due to the high quality of Cuban rum, familiar to the Russian consumer," he said.
According to Gonzalez, Cuba annually exports some 4 million boxes (36 million liters) of rum, including 3.4 million (30.6 million liters) of Havana Club rum, to more than 120 countries.
However, Cuban rum is not exported to the neighboring U.S., due to Washington's trade embargo on the Caribbean island. Cuban rum producers lose about $95 million annually due to the embargo, Gonzalez said.
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AGI News: Berlusconi In Russia: Frattini, Meeting On Strategic Issues
(AGI) - Rome, 22 Oct - ''There is no secrecy, it's just a meeting between friends in which foreign policy and the economy are to be discussed,'' said Franco Frattini on Silvio Berlusconi's visit to Russia, responding to questions from the opposition. The head of the Italian foreign office said that it is a visit which ''the Italian business and industrial systems should be pleased with'' since ''strategic issues'' will be spoken of, especially that of energy. Frattini said on the Omnibus talkshow on La 7 channel that ''Russia is the country considered by all to be one of the major players, indispensable for a world without nuclear weapons (Russia was the country that Obama rightly negotiated the reductions of armaments).
Russia is the country which has offered to enrich Iranian uranium -thereby solving one of the largest problems in the world today and is one of the strategic partners of the EU as well as, thanks to Berlusconi, NATO. Having direct contact with the Russian leader means that Italy is held in high esteem by Russia, and being considered highly by Russia means that here in Europe we can have an important role in the field of energy, that we can understand first hand how the Iranian nuclear dossier develops and that we can ensure Italian energy interests, both for orders and for supplies to Italian enterprises.''
Reuters: UPDATE 1-Russia's Putin meets Berlusconi, German businessmen
Thu Oct 22, 2009 12:27am IST
* Italy's Berlusconi arrives in St. Petersburg
* Berlusconi, Putin discuss joint projects
* German businessmen say want to take part in privatisation (Updates with Berlusconi arrival, adds German businessmen)
By Gleb Bryanski and Paolo Biondi
ST.PETERSBURG/MOSCOW, Russia, Oct 21 (Reuters) - Russian Prime Minister Vladimir Putin discussed joint investment projects with Italy's Silvio Berlusconi and top German businessmen on Wednesday as Russia's economic outlook brightens.
Russia, the world's second biggest oil exporter, hard hit by an economic crisis and falling commodity prices, is wooing foreign investors as it seeks to modernise the economy and reduce dependency on energy exports.
Russia views Germany and Italy as amongst its most friendly nations in the European Union. Germany is also Russia's biggest trading partner with over $60 billion in trade. Both countries are the largest European consumers of Russian gas.
"Tonight and tomorrow we will have a possibility to show you our cooperation. We are talking about cooperation with Finmeccanica (SIFI.MI: Quote, Profile, Research), about cooperation with Fiat (FIA.MI: Quote, Profile, Research)," Putin told Berlusconi during a meeting in St. Petersburg, according to comments posted on the government's website.
Italian group Finmeccanica SpA (SIFI.MI: Quote, Profile, Research) has bought 25 percent of the Russian maker of the Sukhoi Superjet 100. Car maker Fiat (FIA.MI: Quote, Profile, Research) has agreed to set up a tractor joint venture with truck maker KAMAZ (KMAZ.MM: Quote, Profile, Research).
READY TO SUPPORT
St.Petersburg Governor Valentina Matviyenko said at the meeting that after preliminary talks Finmeccanica has also agreed to start high-speed light tram production in Russia.
"I am sure you will reach an agreement about this factory. From the side of the Italian government we are ready to support this project as well as Finmeccanica, the biggest industrial group in Italy," Berlusconi told Putin.
Italian oil group ENI (ENI.MI: Quote, Profile, Research) is involved in the South Stream gas pipe project which is being built under the Black Sea and is seen as the main rival to the Nabucco pipeline, backed by the European Union and the United States.
Putin and Berlusconi will hold a telephone conference with Turkey Prime Minister Tayyip Erdogan on Thursday to discuss South Stream after Turkey gave green light to the pipeline to pass through its territorial waters.
"As far as the South Stream project in the Black Sea as concerned we are working together with ENI and are now solving issues with our Turkish partners. There is an obvious movement forward," Putin told Berlusconi.
NEW OPPORTUNITIES
Earlier on Wednesday Putin met senior figures from German companies including Siemens (SIEGn.DE: Quote, Profile, Research), Volkswagen (VOWG.DE: Quote, Profile, Research), Commerzbank (CBKG.DE: Quote, Profile, Research) and ThyssenKrupp (TKAG.DE: Quote, Profile, Research) who told him they would like to take part in the privatisation programme.
"We believe the privatisation programme that was announced a few weeks ago opens up new opportunities. We would like to offer close cooperation in this sphere," said Klaus Mangold, who heads a body on Eastern European economic relations at Germany's BDI industry association.
Russia has said it is considering privatising big companies to reduce state involvement in the economy and cover the budget deficit, expected to reach 7.7 percent in 2009.
The government has said it might sell stakes in an insurer, a shipping firm and an agricultural company for a total of $2.4 billion in 2010, but is not now considering offering more shares in its biggest oil firms or banks. [ID:nL6328764]
Mangold said Putin has agreed to go over the list of about 5,500 Russian enterprises which have been identified as urgently needing modernisation.
"First of all it is the car industry, particularly car part suppliers and sub-contractors. This is the most important task," Mangold said.
(Writing by Gleb Bryanski; Editing by Richard Chang)
RIA: Russia's PM Putin, Italy's Berlusconi to discuss car production
01:2722/10/2009
ST. PETERSBURG, October 22 (RIA Novosti) - Russia's Prime Minister Vladimir Putin is set to discuss Italy's Fiat car production in Russia with his Italian counterpart Silvio Berlusconi.
"The talk is about cooperation with Finmeccanica and Fiat. We will consider the possibility of producing cars and agricultural equipment at one of our enterprises," Putin said.
The Russian Technology state corporation and Italy's Fiat automaker are setting up a joint venture to assemble agricultural and construction equipment at a production site of Russian truck maker Kamaz in the republic of Tatarstan in line with an agreement signed on October 8 in Putin's presence.
The cooperation of Russian companies with Italian concern Finmeccanica includes projects involving Superjet 100, cellular communications, transportation projects and the modernization of Russian railroads.
Itar-Tass: Putin, Berlusconi to discuss investment projects, trade, economic relations
21.10.2009, 21.16
ST. PETERSBURG, October 21 (Itar-Tass) -- Italian Prime Minister Silvio Berlusconi arrived in St. Petersburg.
Prime Minister Vladimir Putin greeted Berlusconi at St. Petersburg’s Pulkovo Airport.
Berlusconi has arrived on a private visit, which also includes a business component, Putin’s press service said.
Berlusconi and Putin plan to discuss bilateral investment projects, trade and economic relations, as well as energy projects and cooperation with third parties.
“Tomorrow the three of us, including the prime minister of Turkey, we will have an opportunity to discuss it [South Stream], Putin said at a meeting with Berlusconi.
He recalled that Russia was cooperating with Italian ENI under the South Stream project.
Telegraph.co.uk: Silvio Berlusconi 'snubbed King of Jordan to party with Vladmir Putin'
Silvio Berlusconi has been accused of squandering a chance to help the Middle East peace process after apparently snubbing the King of Jordan in favour of a party with his old friend Vladimir Putin.
Published: 7:00AM BST 22 Oct 2009Opposition politicians have demanded to know why the Prime Minister cancelled a meeting with King Abdullah, choosing instead to fly to St Petersburg to discuss energy projects between Russia and the EU - and allegedly attend a private party in honour of Mr Putin's 57th birthday on Oct 7. La Repubblica newspaper reported that Mr Berlusconi would "carry fine wines" as a gift for Mr Putin.
The Russian Prime Minister's spokesman, Dmitri Peskov, said that it was "a private visit but with working content", the Times reports.
He denied that a party was being held at Lake Valdai, south of St Petersburg, but acknowledged that Mr Berlusconi, 73, would travel to the city. "I can't exclude that they certainly will be somehow celebrating his birthday, but it's not the main reason for the visit," he told the paper.
Pierluigi Bersani, a leader of Italy's centre-Left opposition, said he was "appalled" at Mr Berlusconi's decision to give priority to the Russian trip rather than meeting King Abdullah, who is in Rome. Mr Berlusconi telephoned the King to cancel the meeting. Aides to the Prime Minister said he was suffering from a "slight indisposition". Mr Bersani said the snub was "inexplicable".
Francesco Rutelli, a Democratic Party Senator, noted in Corriere della Sera: "Where else in the world can a government leader go on a secret trip to meet with the leader of one of the main countries in the world?" Emma Bonino, the former EU commissioner and senator for the Radical Party, said: "This is all very strange. The idea that they are going to hunt deer and talk about gas for three days seems hardly probable."
The following information has been reproduced as part of our database, it does not constitute any endorsement from ISRIA. To know the exact origin of this information, please click on 'view original source' at the end of the page.
ISRIA: Russia - Prime Minister Vladimir Putin met with German business leaders
Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon, friends, colleagues. Our meetings have become a tradition - over the past few years we have been meeting in this format - a bit smaller or larger group - nearly every year. These meetings are usually attended by the top executives of the leading German companies. I would like to thank you for the attention you have been paying to cooperation with Russia.
Germany is Russia's leading trade and economic partner. Last year, Russia-Germany trade exceeded billion. This year it will be considerably smaller because of the crisis.
However, I was pleased and even surprised to learn that in January through April German investment in the Russian economy grew 36%. It is proof that our relations have been growing despite problems in the global economy and our countries' economies. Moreover, import and export between Russia and Germany is balanced, and our relations are sufficiently diversified.
This is true of all spheres of production, including agriculture, construction, automobile manufacturing, and high technologies.
I would like to say that we not only carry on projects in all of these sectors, but also have large promising projects in mind. What practical results can we expect from this work? In practice, our joint efforts at this difficult time are helping us to preserve and even to create jobs both in Germany and in Russia.
Yesterday I attended the inauguration of a new plant in Russia, the Volkswagen car assembly plant. But we are also working hard with other large German companies, and very many of them are considering or implementing large joint projects.
You know this as well as I do, because you are implementing these projects. For our part - I am referring to the Russian Government, myself and my colleagues - we will do our best for your work here to be successful.
So, welcome. I am happy to see you here.
Dr Klaus Mangold, Chairman of the Eastern Committee of German Industry (as translated): Mr Prime Minister, please allow me, speaking on behalf of my colleagues, to express our heartfelt gratitude for this opportunity, based on the tradition that has developed over the past years, to meet with you again.
I would like to draw your attention to the fact that this is the largest German delegation that ever went abroad. My colleagues here represent the companies with an aggregate turnover of 500 billion euros, which employ 2 million people.
This meeting is evidence of our belief in future relations between Germany and Russia and of our confidence in a positive development of Russia's economy. Our investment in Russia has not decreased even in 2009, a crisis year. All of the 6,000 German companies that have come to Russia continue working here.
I am confident that there are really large projects we can work on in the future, in the infrastructure and energy sector and in enhancing energy efficiency and expanding the network of our pipelines. Yesterday, Nord Stream took a very large step forward.
The German economy views itself as Russia's natural partner in the modernisation of the Russian economy. We would also like to help our technology to be applied in Russia on a larger scale for enhancing the effectiveness and competitiveness of Russian enterprises.
A few months ago we decided to implement a large programme estimated at 500 million euros, which stipulates the financing of Russian enterprises and in particular German supplies for them. We have already started implementing this programme.
I would like to say that our banks are cooperating very well in this sphere. However, we also see the points where our efforts could be applied jointly to improve the general conditions for financing our countries' economies. Mr Prime Minister, we believe that the privatisation programme launched in Russia several weeks ago offers excellent new opportunities for promoting cooperation between Russia and Germany.
We would like to invite you to develop especially close cooperation in this sphere. I believe that it is in the sphere of privatisation that we can create the foundation for advancing our relations to a higher level with regard to economic competitiveness and technology transfers between Russian and German enterprises within joint ventures.
And last but not least, a crucial objective for us is to promote the development of small business in Russia and Germany.
We have come to Moscow for a meeting with you in order to discuss these questions. We believe in strategic partnership between the Russian economy and the German economy. I am confident - just as all of my colleagues - that we have an excellent opportunity to weather the crisis in 2009 and 2010, and the more closely we cooperate the better we can do this. Thank you.
Vladimir Putin: As for the crisis, I can tell you that the fall of Russia's GDP will be considerable, but most likely not as dramatic as we thought at the beginning of the year. But still, the decrease will be considerable.
I would like to focus on several elements you mentioned. Indeed, finance is a crucial sphere of interaction. It is true that Kreditanstalt fur Wiederaufbau and Vnesheconombank are cooperating and, on the whole, creating a safety cushion in this respect. In a word, we are working energetically.
But it sometimes seems that you don't need us - I am referring to the administration. The German Chancellor has recently done much to promote relations between our countries.
The new Government in Germany has not yet been formed, but you are working as if nothing has happened at all on the political scene. In fact, this is a very good sign. It shows that you have a national consensus with regard to the development of bilateral relations.
As for us, the Russian Government and, I am sure, the German Government will do their best to create good conditions for your work.
Dr Klaus Mangold: We are indeed trying to contribute to these efforts.
RBC: Ukraine wants gas contract changed
RBC, 22.10.2009, Kiev 10:59:09.Ukraine has suggested to Russia, that the amount of gas set out in Ukraine's contract with Gazprom be altered, Ukrainian presidential envoy for energy security Bogdan Sokolovsky said while on his visit to Austria, Germany and Belgium. In 2009, Ukraine is to buy 40bn cubic meters of Russian gas, but its demand for gas, which now stands at less than 30bn cubic meters, has slumped on account of the crisis. The amount contracted for 2010 is also too large for Ukraine given the present situation, the Ukrainian president's press office said.
While Ukraine may face penalties of up to $5.9bn, Sokolovsky divulged that the nation would not be able to pay them. He noted that although Russia's Prime Minister Vladimir Putin had waived the penalties in a conversation, Gazprom and some State Duma deputies were insisting Ukraine pay them. In his words, Russia was avoiding a written agreement on the matter.
The official also believes that a rise in tariff rates on gas transit to Western Europe to a market level would earn Ukraine from $3.5bn to $7bn. He added that the delegation had come to Vienna to explain its stance on Russia. Without what he called "normal financial terms" on gas Ukraine will not be able to ensure uninterrupted gas supplies to Austria in 2010, he concluded.
RIA: Ukraine hopes to sign nuclear fuel contract with Russia
20:0621/10/2009
ENERHODAR (Ukraine)/MOSCOW, October 21 (RIA Novosti) - Ukraine expects to sign a long-term contract for Russian nuclear fuel supplies before the end of the year, the country's deputy energy minister said on Wednesday.
The current contract with Russian state-controlled nuclear fuel supplier TVEL runs out next year.
"Our position is that it should be signed as soon as possible," Natalya Shumakova said, adding that the contract was to have been signed in October, but was delayed. She did not say why it was delayed.
TVEL Vice President Vasily Konstantinov previously blamed the delay on Ukrainian authorities.
Ukraine has four nuclear power plants with a total generation capacity of 13.835 GW, which accounts for more than half of Ukraine's total capacity.
TVEL, which currently controls 17% of the world's market of fuel for nuclear power plants, said on Tuesday it plans to increase its share to 25% by 2030.
The company supplies fuel to 76 power generating reactors and 30 research reactors worldwide.
RIA: Russian Pacific Fleet warships to visit Malaysian port
02:1622/10/2009
MOSCOW, October 22 (RIA Novosti) - A Russian Pacific Fleet task force that has been on anti-piracy patrols in the Gulf of Aden is to pay an official visit to the port of Klang in Malaysia, a spokesman for the Russian Navy said.
The task force — comprising the Admiral Tributs destroyer with two helicopters, a salvage tug, a tanker, and a naval infantry unit — has been escorting commercial ships, conducting aerial reconnaissance, and searching for suspected pirate vessels.
He said that a number of meetings were planned during the visit, including with commanders of the Malaysian Navy and the Russian Embassy staff.
Russia joined international anti-piracy efforts off Somali coast in October 2008.
Three Russian warships have so far participated in the mission — the Baltic Fleet's Neustrashimy (Fearless) frigate, and the Pacific Fleet's Admiral Vinogradov and Admiral Panteleyev destroyers.
The Pacific Fleet's warships have escorted over 100 Russian and foreign commercial ships and prevented several pirate attacks since January 2009.
The Malta Independent Online: Malta may let in Arctic Sea dry cargo ship on some conditions
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|The Arctic Sea dry cargo ship may be permitted to visit a Maltese port on some conditions, a high-ranking source close to the |
|Russian Navy staff told Itar-Tass on Tuesday. |
| |
|“Maltese authorities have recently set a number of new conditions, mostly technical and ecological, which must be met before the |
|ship is allowed to visit the port,” he said. |
| |
|“It is quite realistic to fulfil these demands,” the source noted. |
| |
|Once the formalities are settled, a Russian warship will tow the dry cargo ship to the Maltese port and pass it under control of |
|the owners. |
| |
|“The Arctic Sea escorted by the Ladny patrol ship and a towboat has been anchored several miles east of Gibraltar since late |
|September. The captain and three crewmembers stayed on board, and the detectives are gone,” the source said. |
| |
|The Russian Prosecutor General’s Office and the Malta police and maritime authorities completed investigative procedures on board |
|the ship off the shore of Las Palmas, the Canary Islands. It was planned that the ship would be transferred to the owner in Las |
|Palmas but Spanish authorities did not permit the Arctic Sea to visit the port. |
| |
|The cargo carried by the Arctic Sea had an Algerian buyer, and Russia offered to tow the ship to an Algerian port, where the ship |
|could be handed over to the owner and the cargo to the buyer. Yet Algerian authorities refused to permit that. |
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|The Arctic Sea belongs to a company of the same name registered in Malta. Solchart Arkhangelsk has a contract with the owner for |
|operation of the ship. |
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|The Arctic Sea flying the Maltese flag and operated by 15 Arkhangelsk sailors was due to bring timber from Finland to Algeria on |
|August 4. Contact with the ship was lost on July 28. It appeared later that a high-speed inflatable boat carrying eight men |
|approached the ship at 11.00 pm Moscow time on July 24. The men said their boat was out of order and embarked the Arctic Sea. The |
|crewmembers said that the men were wearing black clothes with the word ‘Policia’ imprinted on the backs. The assailants ordered |
|the crew to head for Africa and to disconnect navigation equipment. |
The Malta Independent Online: Russian-Ukrainian crew of Malta-flagged ship asks for assistance in paying off salaries
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|Sailors from the Stepanida ship, sailing under the Maltese flag, have asked the International Transport Workers' Federation for |
|assistance in receiving their salaries. |
| |
|As the ITF told Interfax-Russian Far East, the ship is currently stranded in Vietnam with a crew of 11 Ukrainians and two |
|Russians. The sailors said they have not been paid their salaries for the last several months. Currently the wage arrears to the |
|crew are about $65,000. |
| |
|The International Transport Workers' Federation has taken the situation under its control. |
| |
|The Stepanida dry cargo ship is registered in Valletta and is sailing under the flag of Malta. |
| |
|Meanwhile, the Russian Seamen's Union has posted on its web site a list of ships where currently there are wage arrears to crews. |
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|According to the list, there are delays in payments to the crews of 28 ships. The overall debt exceeds $2 million. Over 100 |
|Russians are in such a situation in seaports around the world. |
Axisglobe: Large-scale exercises of Russian security services to take place in Gatchina near St.Petersburg
21.10.2009
On October 22, exercises Atom-2009 will take place in the territory of the Petersburg Institute of Nuclear Physics named after B.P.Konstantinov in the city of Gatchina of Russia’s Leningrad region, online paper 47News reports, referring to press service of the Leningrad region main directorate of Ministry of Emergency Situations of Russia.
The purpose of the exercises is training of interaction of divisions of security forces on suppression of possible terrorist attacks and liquidation of consequences of acts of terrorism at nuclear and radioctive objects.
According to the press service, the following actions will be carried out during the exercises: elements of emergency evacuation of population; dosimetric and medical control of the evacuated population; elements of dust suppression in the zone of extreme situation; rendering pre-medical and first medical assistance to the victims; carrying out of special processing the population, equipment and personnel.
The St.Petersburg and Leningrad region Directorate of the Federal Security Service of Russia, the Main Directorate of Interior of St.Petersburg and Leningrad region, Northwest Regional Command of the Interior Troops of the Ministry of Interior of Russia, the Northwest Regional Centre of the Ministry of Emergency Situations of Russia, Emergency Centre #346 of the Ministry of Emergency Situations of Russia, the Main Directorate of the Ministry of Emergency Situations of Russia in Leningrad region and others are taking part in the exercises, 47News adds.
Itar-Tass: Car of district criminal police chief blasted in Ingushetia
22.10.2009, 11.11
NAZRAN, October 22 (Itar-Tass) - The car of district criminal police chief Isa Korigov was blasted this morning in the Ingushetia city of Malgobek, Itar-Tass learnt at the republican Interior Ministry.
The explosive device went off at a time when Korigov and his wife were taking seats at his office car near the gate of his house. As a result, both of them were wounded and were hospitalised. The driver was killed.
Medics assess the state of the wounded police chief as moderate to serious, while the state of his wife as serious, the Malgobek district hospital reported.
According to preliminary data, the explosive device yield was equal to three kilos of TNT. Law enforcers examine various versions of the crime, but the main is his service activities.
RIA: Five injured in Chechnya suicide bombing
23:1821/10/2009
GROZNY, October 21 (RIA Novosti) - Four police officers and one civilian were wounded in a suicide bombing in the capital of Chechnya, the interior minister of the Russian North Caucasus republic said Wednesday.
"Four policemen were wounded. A passerby was also injured," Ruslan Alkhanov said, adding that the terrorist had blown himself up after being detained by police.
Alkhanov also said the terrorist's identity had been established.
Russia's North Caucasus republics, in particular Chechnya, Dagestan and Ingushetia, have seen an upsurge of militant violence this year, with frequent attacks on police and officials.
Itar-Tass: Suicide bomber blasts self in Grozny; five injured
22.10.2009, 00.21
GROZNY, October 22 (Itar-Tass) - A suicide bomber blew himself up in Chechnya's capital Grozny on Wednesday evening when a police detail was approaching him. Four police officers and a civilian were slightly injured. The incident occurred in Sadovaya Street at around 21:00, near a recreation center under construction.
Chechnya interior Minister Russian Alkhanov said "none of the police officers was seriously injured."
Subsequent report said the Chechen law-enforcement bodies had identified the suicide bomber.
He is Zaurbek Khashumov, 19, a resident of Grozny, an Interior Ministry official told Itar-Tass.
According to preliminary information, Khashumov left his home two months ago, and his whereabouts have been unknown since.
A group of investigators is working at the scene.
Apa.az: New terrorist network disarmed in Bashkiria
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[ 22 Oct 2009 12:02 ] [pic]
Ufa – APA. A new network of the terrorist organization Hizbut-Tahrir was unveiled and disarmed in Bashkiria, Russia. The terrorist organization formed a secret network in Ufa, the capital of Bashkiria, involved people and made propaganda among the population, APA reports. Members of the terrorist organization were instructed about the necessity of changing government system in Russia, calling for jihad against those who are against Khilafat. They also called on people to make voluntary donations to support the organization’s activity. Several people were arrested and series of banned propaganda materials were confiscated from the houses of Hizbut-Tahrir members.
22 October 2009, 10:47
Interfax: Hizb ut-Tahrir cells neutralized in Bashkortostan
Ufa, October 22, Interfax - The Federal Security Service (FSB) department for Bashkortostan, the Interior Ministry's extremism prevention center, and the local Investigative Committee division have neutralized cells of the international religious organization Hizb ut-Tahrir, which was ruled extremist and banned by the Russian Supreme Court back on February 14, 2003.
"It has been determined that the members of the neutralized Hizb ut-Tahrir cells held a propaganda campaign among the local population, recruited Bashkir residents to take part in this organization's illegal activities, and set up clandestine cells," the FSB department for Bashkortostan told Interfax on Thursday.
"Participants in secret meetings of this terrorist organization discussed steps to change Russia's political and governance system to incorporate some of its regions into the so-called World Islamic Caliphate through both propaganda and violence, using armed jihad, that is, war against those who would resist the building of a caliph dictatorship," it said.
Itar-Tass: Blast rips through apartment building in Kabardino-Balkaria
21.10.2009, 18.33
NALCHIK, October 21 (Itar-Tass) - A blast ripped through a multi-storey apartment building in the city of Tyrnyauz in Russia’s southern republic of Kabardino-Balkaria, a source from republic’s law enforcement agency told Tass on Wednesday.
According to preliminary reports, some people were injured. The source quoted eyewitnesses as saying that a man and a woman dressed in dark clothing and carrying a submachine gun, left an apartment after the blast.
“It is not ruled out that there was a spontaneous blast of a self-made explosive device in the apartment. All versions are checked,” the source added.
Russia Today: Russian parliament threatened with a strike over salary slash
22 October, 2009, 09:40
Russian lawmakers are having a bit of trouble getting to work on Thursday morning, as their drivers threaten industrial action.
The drivers say their salaries are due to be cut three times in the next few months, and they want to sort the matter out with management.
About 60 people gathered today at the headquarters of the GEMA driving company that, apart from being a big car dealer, provides chauffeur services to the Russian State Duma, the Federal Council and other legislative and government bodies.
Apart from the fact that the drivers do not want this salary threefold slash from the beginning of 2010, they are not happy with their working conditions. They are unhappy with shifts that last 14-15 hours a day, and having to wait for a carwash every morning for up to three hours. They do not have any facilities in which to have a rest after a long working shift either.
But of course the main argument is that they insist that on Wednesday they were forced to sign an individual document for each driver which states that they would agree to work the same shifts they have now, but receive a salary which is one third of the existing one, which would be around $400 a month.
The GEMA company bosses did not appear at the gathering on Thursday morning. Nor did they say anything concrete yesterday to the drivers’ representative Anatoly Drakon, who talked to the bosses and laid down all the demands. The answer was that the drivers’ demands will be considered within two months.
After the gathering, all the drivers returned to work to get the deputies to the Duma by 10am, and they actually publicly apologized for any kind of disruptions that could happen, because they know the price of five minutes in Moscow – with its insane traffic – like nobody else.
Apparently, all the rumors that they would be blocking roads and refusing to work unless their demands are heard have nothing to do with the reality. The drivers are really happy with the publicity and the media attention they have received
RIA: United Russia councillor killed near Moscow
08:4922/10/2009
MOSCOW, October 22 (RIA Novosti) - A United Russia regional councillor was killed near Moscow on Wednesday evening, a police source told RIA Novosti on Thursday.
Grigory Nosikov, 48, was a member of the town council in Kubinka, some 60 miles west of the capital.
His body was found by his wife next to the automatic gates of their private house at 8:30 p.m. (16:30 GMT) on Wednesday. It was initially believed that he had been shot dead, but later established that he had been killed with a sharp object, the source said.
Nosikov was also the owner of the Zalesye transportation company, and police are working on the theory that his murder could have been connected to his business activities.
Itar-Tass: Member of United Russia murdered in Moscow region
22.10.2009, 10.08
MOSCOW, October 22 (Itar-Tass) - Deputy of the Kubinka urban settlement, member of the United Russia party Grigory Nosikov has been murdered in the Moscow region, Itar-Tass was told at the Moscow region’s police.
They said that the crime was committed on Wednesday at about 21:00, Moscow time in the Golovenki village of the Naro-Fominsk district. “Nosikov’s wife found her husband’s body at the gate of their private house and immediately reported to the police,” the source said. According to a preliminary version, he died of a stab wound.
A team of detectives - investigators has been formed for probing into the crime circumstances. “There are several versions of the incident under consideration, including the murdered deputy’s business activities and private vengeance as the motive,” said the police source.
RIA: The goal for 2010 conscripts - to make it to the enrollment office
19:2021/10/2009
MOSCOW. (RIA Novosti commentator Dmitry Babich) - The 2010 conscripts have a chance to enroll in a college without doing military service first.
Viktor Ozerov, head of the Defense and Security Committee at the Federation Council, announced that according to new legislation, the spring draft will end on July 1, as opposed to July 15, as last year.
What does that mean? According to the law, students are exempt from military service. Therefore, the most "dangerous" period for potential conscripts is the time when they have already graduated from school but have not yet enrolled in college. Most of the time, this period falls on the month of July, when the school graduation ceremonies are over and the university enrollment process is in full swing. Now the Defense Ministry extended the draft period until July 15, to bring in as many conscripts as possible.
According to Ozerov, in 2010 the conscripts will be able to avoid this "trap," as the two new federal laws that are being currently developed, the Law On Military Duty and the Law On Military Service, will replace the existing unified law On Military Duty and Military Service.
The idea to replace the existing law has a clear rationale - to separate the professional soldiers, who join the military voluntarily, from the conscripts, who are drafted for compulsory military service.
Based on the published drafts, the new legislation clearly elaborates the contracting rules and the rights and obligations of those serving under a contract. If successful, the legislation will finally allow the army to fill its ranks with servicemen who choose to be in the military. The issue, however, is whether the MPs will be able to adopt the new laws prior to the 2010 spring draft.
The autumn conscription, currently under way, is proceeding under the most severe rules which were approved in 2008. This affects not only vocational schools and colleges, which are left with almost no male students, but also some universities.
Military officials deny the conscripts the right to receive a second degree without fulfilling their military duty first. According to them, if a conscript had been granted a college or university deferral in 2005, for example, he cannot obtain a new deferral in 2009 or 2010. The military refer to amendments to the legislation introduced in 2008, despite the fact that a law cannot be applied retroactively.
The military have their own rationale: they are increasingly facing the demographic problem, which has its roots in the early 1990s, when the birth rate plummeted. On top of that, the term of the military service has been reduced to one year, which makes it necessary to cut the deferrals, especially for students. The army needs educated soldiers who will be able to handle modern military equipment, which requires a certain level of education. Human rights advocates, however, are concerned about the sweeping nature of the 2009 draft. They question the military's claim that they have no other reserves available to them.
"The Defense Ministry has a reserve of conscripts from previous years. These include individuals under the age of 27 who have not been drafted previously for various reasons. In addition, the army is undergoing a comprehensive reform with tens of thousands of officers being laid off," says Sergei Krivenko, the coordinator of the Citizen and the Army coalition of public organizations.
"The army is currently at a crossroads of sorts. It will either go through with the reform, bringing it to the level of privates and contracted servicemen, or the old system will be preserved, but with a significant reduction in officer corps. If the latter option prevails, this will have the most negative consequences. The officers, overwhelmed with the constant threat of being laid off, will not be able to properly handle affairs in their units," he says.
But there is a problem, which is not limited exclusively to Russia: 18-year-old men should not be left to their own devices. This results in a severe youth hierarchy, which is often enforced through violence. The reduction of the service term, unanimously approved by human rights advocates and experts alike, failed to become a panacea, including for the notorious hazing problem.
There is no such notion as hazing in the legislation; the terms it uses are "torture" and "abuse"; just as there is no such notion as "administrative resource," but "violation of voters' rights." What is essential is that individuals should be able to uphold their rights.
"Certainly, the reduction of the service term is a significant achievement," Sergei Krivenko says. "The root cause of hazing, however, does not lie in the two-year service term, but in the closed nature of military units and in the fact that servicemen are deprived of their rights, as well as in the inability to assert the rights that they have but are not aware of. As long as these problems are not resolved, the role of the 'older' servicemen will be taken on by the contract-based soldiers, for example, in the mixed conscription units."
Military justice officials insist that they have learned from their past mistakes, and that the rights of servicemen are protected. In response to my question at a press-conference in Komsomolskaya Pravda, Alexander Nikitin, a department head at the Main Military Prosecutor's Office, overseeing law enforcement in military units, said that conscripts would be given special memos listing their rights as well as telephone numbers of the closest military prosecutor's offices.
According to Nikitin, last year hundreds of criminal cases were opened for the violations of servicemen's rights. There have been cases when military prosecutors literally rescued desperate soldiers, and such cases have become more frequent recently.
Still, the main safeguard against violence is not the military prosecutors but civil monitoring of compliance with the law and the presence of people who are not indifferent to the problems of conscripts.
The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.
Euractiv: Russian 'hot air' threatens UN climate deal
Published: Thursday 22 October 2009
The European Union is wondering what to do with billions of unused pollution credits accumulated by Russia, Ukraine and other former communist states of Eastern Europe under the Kyoto Protocol as lawmakers worry about the continuity of the carbon market beyond 2012.
Environment ministers from the 27-member bloc were met in Luxembourg on Wednesday (21 October) to thrash out the position[pic] [pic] that the European Union will take to UN climate talks in December.
But as an international agreement slowly takes shape, the question of what to do with the billions of unused pollution credits accumulated during the 2008-2012 period has become the "elephant in the room" for negotiators.
"There is a lot of money involved," said the European Commission's environment spokesperson Barbara Helfferich. "We haven't clarified our position on this in detail," she told EurActiv after the ministers' meeting on Wednesday.
Kyoto legacy
Under the Kyoto Protocol, countries were granted a certain number of permits to release greenhouse gases in the atmosphere called Assigned Amount Units (AAUs), which are equivalent to one tonne of CO2.
Kyoto targets were decided based on 1990 emission levels. But in the wake of massive deindustrialisation that followed the fall of communism, Eastern European countries are now finding themselves sitting on a huge stockpile of unused pollution credits.
"The Russians have accumulated something like five billion units" during 2008-2012, said an EU diplomat from one of the large EU member states. "This is enormous," he added, saying the amount is equivalent to the effort expected from the entire EU during the upcoming 2013-2020 period.
"We have a big problem of hot air in the system," the diplomat said.
Stefan Singer, director of global energy policy at WWF, warned that the possibility for Russia and Ukraine to carry over their surplus credits after 2012 would probably "sink" international climate talks.
"This amount is more than the entire annual emissions of the EU 27 and may - if traded and sold - sink any environmental integrity of targets for developed countries," he told EurActiv.
Britain and Germany said they wanted to kill off the excess permits, arguing that they undermine the system.
Options
Russia is not the only country to have hot air problems. Ukraine for instance is expected to hoard nearly 2.2 billion units over the 2008-2012 period, according to figures circulated in European chancelleries. And the ten Central European countries that joined the EU in 2004 are expected to collect 2.2 billion in total.
EU diplomats are now working on possible solutions to the problem. One "extreme" option would be to cancel surplus carbon units after Kyoto expires, an option favoured by environmentalists.
However, such a radical option is likely to meet with fierce resistance from Russia and Eastern European states, which can argue that the units were granted under a legally-binding international treaty. Moreover, this option would be unfair to countries which have made genuine efforts to meet their Kyoto targets.
Another "extreme" solution – allowing Russia and other countries to carry over the full amount of surplus credits after 2012 – would have dramatic consequences for the EU as such a huge injection of unused credits would send the fledgling carbon market crashing down.
To prevent such an outcome, the EU diplomat said developed countries would have to tighten their objectives in order to match the transferred surpluses. "So for example, instead of reducing greenhouse gases by 35 to 40%, we would need to do 38 to 53% cuts to absorb the surplus," he said.
East West EU-divide over 'hot air'
The "hot air" issue is also creating headaches inside the European Union. This is because Eastern member states stand to lose the most from a possible decision to outlaw credit 'banking' after Kyoto.
"For example, within the European Union, the Hungarians, which have a surplus, are saying that the EU should buy up the surplus from the Community budget," the EU diplomat said.
"In the end, we will find a solution," the diplomat assured, saying that "several options" are being examined.
A middle ground could be found by requesting that a 'discount factor' be applied to surplus credits that are carried over beyond 2012. The discount factor could amount to 80, 50 or 30%, the diplomat said. Another solution would be to have the 'compensation effort' created by surplus banking borne out only by certain countries.
Overall, Europe is within its Kyoto targets but there are wide disparities internally between member states that are meeting their objectives and those that are not. The UK, which has switched from coal to gas, is on course to meet its target but – like France – only has a small surplus. Germany is expected to fall close to its Kyoto target and so is expected to be left with virtually no surplus or deficit.
"On one side you have the Mediterranean countries – Italy, Spain, Greece – which are outside their [Kyoto] target and on the other the new member states which have had de-industrialisation since the 1990s and are well within their objective," the EU diplomat said.
Positions:
Stefan Singer, director of global energy policy at WWF said any new climate treaty "must eliminate all loopholes contained in the Kyoto Protocol".
"Unless there are no much stronger target proposals on the table by developed countries such as in the range of 30% domestic reduction by 2020, WWF urges that 'hot air' is not allowed to be banked but rather used in 'Green Investment Schemes' where the credits generated from hot air are being discounted and the revenues become fully re-invested in additional emissions reductions in these countries."
In a March 2009 interview with EurActiv, Singer had already expressed concerns about Russia's position for the UN talks. "Experience tells us that Russia always comes in at the eleventh hour with some kind of ridiculous demand. And not just on climate, on all issues, because Russia has the understanding of the UN as a self-service shop."
In order to "deal with Russia," Singer said the global community should think about making trade offs. The trouble, he said, is that "no-one knows what is to be traded off against what with Russia, because Russia is very often a black box".
October 21, 2009
Russia Profile: Flirting with the WTO
By Tom Balmforth
Special to Russia Profile
Russia’s Latest Announcement Will Allay Concerns Voiced by WTO Head Pascal Lamy That “There Is No Energy in Moscow to Join”
On October 15 in Geneva, delegations from Russia, Belarus and Kazakhstan announced their intention to bid to join the World Trade Organization separately, scrapping plans to accede together as a customs union. After Russia proclaimed in June that it would seek WTO membership as part of a customs union, a complicated process which has never been done before, it was widely understood that Moscow had put its accession to the trade club on the backburner. Thursday’s decision, however, indicates Russia’s renewed interest in membership.
The ostensible reason for Russia’s dropping its joint bid is the fact that doing so would significantly complicate the accession process. Applying as a customs union requires the parties to prove that they operate according to a single, sovereign trade directive. Given that Moscow, Minsk and Astana do not answer to a single authority on trade matters, accession as a customs union would not have been simple. “I think that [Thursday’s] decision demonstrates that Russia wishes to continue at a faster rate, instead of accepting some delay,” said Natalia Orlova, the chief economist at Alpha Bank.
Russia, the largest non-member economy, has been seeking to join the trade group since 1993, and has already met a significant proportion of WTO requirements, but Prime Minister Vladimir Putin put the whole process in jeopardy in June, when he announced that Russia would now join as part of a customs union. With WTO officials left scratching their heads, the June decision not only cost Russia’s accession bid precious time, but also created the need to “restore lost faith” in its commitment to join.
The latest installments in Russia’s WTO saga have also exposed differences over public policy in the Vladimir Putin-Dmitry Medvedev tandem. When in July, president Medvedev mooted the possibility of going back to “plan a” and dropping Putin’s proposed joint accession bid only a month after it was first announced, the Financial Times was quick to discern a clash between the president and his mentor. Certainly, the recent toing and froing in Russia’s WTO policy seems to correlate with Medvedev’s and Putin’s differing world views. While on the one hand, Medvedev has championed greater dialogue and integration with the international community, notching up recent victories such as the annulment of U.S. missile defense plans, Putin generally appears to be far less interested in Russia’s integration with the rest of the world, not just from a foreign policy perspective but also from a business one.
In that it has actually made Russia’s WTO membership a possibility in the near future, Thursday’s decision carries the hallmarks of Medvedev. “The fact that the idea to join as a customs union has been dropped after a relatively short period of time, only five months or so, is perhaps an indication of Russia being in the ascendancy of Medvedev’s policy of more integration with the international community, and the championing of that over Vladimir Putin’s more inward-looking policy style,” said Tom Mundy, vice president for equity strategy at Renaissance Capital. “I think it is a fair assessment that the international community is pushing for Russian WTO membership much more than, say, Vladimir Putin is, so the fact that [the June decision] has been pulled away now probably indicates that either Medvedev is taking a stronger line with domestic-looking policies, or that there is much more of a challenge or a schism within the Kremlin than people previously thought,” he added.
Putin launched an unexpectedly early battle for the 2012 presidential elections at the beginning of October, when he said that he and president Medvedev would “figure it out between themselves who would run in 2012.” Nonetheless, WTO accession seems an unlikely issue for Medvedev to set out his stall against Putin on. Only a minority of Russians actually favor Russia’s joining the trade group, a poll by the All Russian Public Opinion Research Center (VTsIOM) revealed in June. Still, the renewed enthusiasm for WTO membership implicit in Thursday’s decision seems to belong to Medvedev’s broader policy of greater integration with the international community. President Medvedev has shown himself to be keen on formulating his own policies, which are distinct from those of his predecessor, and he has also been quite critical of the development of the Russian economy under Putin.
For Russia, accession to the WTO will mean that it will no longer be able to dictate its trade regime on a unilateral basis, instead having to conform to the regulations of the trade group. That Russia has not been a member of the WTO during the financial crisis has in fact been a blessing, since protectionist policies have been implemented in order to keep certain domestic industries afloat. For example, last year Russia raised import tariffs on vehicles in order to stimulate demand for cars made domestically.
However, Russia’s resumption of practically-minded WTO accession talks stands to greatly improve the investment climate. “Anything that shows that Russia is more willing to be integrated with the international community is good for investor appetite and tends to bring down Russia’s risk profile,” said Mundy. Coupled with recent comments from the Russian government that it wants to be less involved in private enterprise, the Kremlin’s renewed interest in WTO accession will be good news for would-be investors. “For foreign investors, this [decision] is a very powerful sign. I think just by continuing these negotiations, Russia shows that it will continue to integrate with the world economy,” Orlova concluded.
: Russia ‘will join WTO’ despite confusion
By Isabel Gorst
Published: October 21 2009 22:14 | Last updated: October 21 2009 22:14
President Dmitry Medvedev says Russia is committed to joining the World Trade Organisation despite hold-ups and confusion caused by its plans to bid for membership in partnership with Kazakhstan and Belarus.
“We will join the WTO, despite some delays connected with the formation of the customs union [with Kazakhstan and Belarus]. There is no doubt about this,” the president told a meeting of Russian businessmen in the Kremlin on Wednesday.
Russia’s negotiations with the WTO halted briefly after Vladimir Putin, the prime minister, said in June the country would join the organisation with Kazakhstan and Belarus, countries with which it is forming a customs union.
No other WTO member has negotiated entry in tandem with other countries.
The customs union, creating common tariffs and a single market of 165m people, is expected to begin operating in January.
Last week Russia, Kazakhstan and Belarus said they would pursue WTO membership separately.
But Igor Shuvalov, Russia’s first deputy prime minister, said the three countries had formed a single working group to negotiate entry and would join the WTO simultaneously and on equal terms. Russia has been negotiating WTO entry for 16 years and is the largest economy outside the organisation.
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NY Times: Oligarchs Get an Earful From Russian President
By ANDREW E. KRAMER
Published: October 21, 2009
MOSCOW — President Dmitri A. Medvedev on Wednesday used a now-traditional annual meeting with Russian oligarchs to scold them for their corporate missteps and for corruption, while also demanding that they take a more patriotic approach to conducting business affairs.
In one exchange highlighting the always delicate relationship between the Kremlin and the oligarchy, Mr. Medvedev listened as the Siberian mining magnate, Oleg V. Deripaska, explained that it now seemed all but impossible to get a fair hearing in a Russian court.
“Everybody knows you need to pay,” Mr. Deripaska said at the meeting in the Kremlin. He described the Russian judiciary as “overgrown” with mediators who solicit payments on behalf of judges.
Mr. Medvedev responded that this state of affairs should hardly come as a surprise to the oligarchs, who, after all, had been the ones doing the paying for many years. “A question arises: Who pays them, these mediators?” he said. “I suspect it is business and not somebody else that pays them.”
“This phenomenon did not appear yesterday or the day before yesterday,” Mr. Medvedev said of court corruption. He told the oligarchs to report court corruption to prosecutors.
The meeting, held in a reception hall in the Kremlin, is traditionally open to journalists for an introductory statement by the president and a comment or two from oligarchs he selects to speak, suggesting the exchanges are at least in part choreographed by the Kremlin.
Mr. Deripaska used his time first to make a jab, apparently, at Mikhail M. Fridman, whose Alfa Bank had threatened Mr. Deripaska’s aluminum smelters with bankruptcy proceedings in Russian courts. While other banks had agreed to restructure the debt, Alfa Bank had pressed ahead with its collection efforts and a threat of using the Russian courts.
Mr. Deripaska suggested this was a situation that “deserves your attention.”
In other remarks, Mr. Medvedev told the businessmen that Russia was falling dangerously behind in technology. They must invest in technological innovation or face obsolescence when Russia opens its economy to greater competition after joining the World Trade Organization, he said. “The crisis revealed the weakest side of our economy,” he said.
The richest oligarch of the group, Mikhail D. Prokhorov, was not at the meeting, but it seemed that his recent activities had not escaped Mr. Medvedev’s attention. Mr. Prokhorov, a basketball fan, announced last month he would buy the New Jersey Nets.
Oligarchs, Mr. Medvedev said, sometimes invested “in the best foreign companies in industry, finance, trade, media and even sports. And, generally, this isn’t so bad. But we, and I mean the government and the people, have a right to expect the same activity inside the country.”
Reuters: Stop bribing courts, Medvedev tells oligarchs
Wed Oct 21, 2009 2:39pm EDT
* Medvedev tells business chiefs to stop paying bribes
* At Kremlin meeting, oligarchs complain about legislation
* Tycoons ignore call for recession "exit strategy" ideas
By Dmitry Zhdannikov
MOSCOW, Oct 21 (Reuters) - President Dmitry Medvedev told Russia's richest businessmen on Wednesday to stop paying bribes after the tycoons complained to him about corruption and poor legislation.
At a meeting in the Kremlin with the Russian Union of Industrialists and Entrepreneurs, commonly known as the "oligarchs' lobby", Medvedev responded to the tycoons' complaints by criticising them for bribery.
"I suspect these are often the businessmen who are paying (bribes) to them (the courts). It is the obligation of every businessman to report (corruption) to law enforcement agencies," a visibly irritated Medvedev said during the part of the discussion broadcast on television.
The comment came in response to remarks by indebted tycoon Oleg Deripaska, once Russia's richest man, who complained about Russia's notoriously corrupt court system.
Medvedev has made the fight against corruption a priority but so far has had few concrete results.
Apart from the comment on bribes, Medvedev's second ever meeting with the oligarchs' lobby was a relatively calm one, contrasting with when Vladimir Putin was president and would ask tough questions and move stock prices with his harsh remarks.
Medvedev called on the tycoons to give ideas for "exit strategies", what Russia should do as it starts emerging from an economic slump.
Gross domestic product fell by almost 10 percent in the first half of 2009, in sharp contrast with a decade of growth fuelled by high commodities prices.
A recent rise in oil prices has given hope for renewed growth in 2010 but analysts say reliance on oil revenues has weakened the incentive for Russia to modernise its economy.
The tycoons, who received unprecedented help from the state to stay afloat and refinance debts this year, spoke little about possible "exit strategies" and instead flagged worries about legislation and disputes with each other.
Russia's fourth richest man, the oil-to-banking oligarch Mikhail Fridman, who owns major retailer X5, complained about a bill which may cap food prices and tackle regional dominance, and about a competition law which sets prison terms for breaking anti-monopoly rules.
The meeting continued behind closes doors and participants said the dialogue continued in a similar vein.
"It was a disappointment that we didn't see a clear strategy to diversify the economy," said Boris Titov from mid-sized business lobby group Delovaya Rossiya.
(Editing by Robin Pomeroy)
: U.S. puts $100,000 bounty on suspected Russian crime boss
Ian MacLeod, Canwest News Service Published: Wednesday, October 21, 2009
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The United States has placed a $100,000 bounty on the head of suspected Russian crime boss Semion Mogilevich, the alleged mastermind of the YBM Magnex scandal that defrauded investors in the Canadian company out of an estimated $650 million and undermined confidence in Canadian stock markets.
The U.S. Federal Bureau of Investigation Wednesday named Mogilevich, believed to be in Moscow, to its Top 10 Most Wanted List, alongside the likes of Osama bin Laden, and characterized him as one of the most powerful gangsters of all time.
"The FBI doesn't have the jurisdiction to charge him with other crimes taking place solely in other countries," said FBI Special Agent Peter Kowenhoven, "but open-source reporting shows him to be involved in weapons trafficking, contract murders, extortion, drug trafficking, and prostitution on an international scale."
Mogilevich faces more than 40 U.S. counts of racketeering, wire fraud, mail fraud, money laundering, and other alleged economic crimes carried out in dozens of countries around the world.
Kowenhoven described Mogilevich as a ruthless criminal.
"Victims don't mean anything to him," he said in a prepared statement. "And what makes him so dangerous is that he operates without borders. Here's a guy who managed to defraud investors out of millions without ever stepping foot in the Philadelphia area," where the Alberta-incorporated YBM Magnex International was headquartered in 1990s.
The Ukraine-born Mogilevich is believed to have controlled the bogus magnet manufacturer, which collapsed in late 1998 when it came under U.S. suspicion as an organized crime front. YBM traded only on Canadian stock markets and investors reportedly lost $635 million. The FBI contends U.S. victims lost $150 million.
YBM built up a stock market value that peaked at almost $1 billion, and was trading at $20.15 a share in March, 1998 even though regulators were aware of allegations it had links to Russian organized crime.
The Ontario Securities Commission later acknowledged it was investigating YBM even before it gave the company the go-ahead to issue millions in new shares in late 1997.
Through his extensive international criminal network, the FBI alleges Mogilevich controls extensive natural gas pipelines in Eastern Europe, and uses his wealth and power to not only further his criminal enterprises but to influence governments and their economies.
In a raid in 1998 on the company's U.S. offices, FBI agents found a treasure trove of documents -purchase orders, invoices, shipping orders, even technical drawings - everything a legitimate business would produce, according to CNN.
But there was one thing missing.
"There were no magnets," Special Agent Mike Dixon told the network Wednesday.
BEGIN OPTIONAL END
"In essence, what his companies were doing was moving money through bank accounts in Budapest and countries throughout the world and reporting these to the investment community as purchases of raw materials and sales of magnets," Dixon told CNN.
And because the firm was publicly traded, anyone owning the stock would have made a lot of money.
"And of course Mogilevich controlled large, large blocks of stock from the outset, and he made a substantial amount of money in this process," Dixon said.
He and his associates were indicted in 2003 on 45 counts of racketeering, securities fraud, wire fraud, mail fraud and money laundering.
Russian authorities arrested him last year on tax fraud charges, but because the U.S. does not have an extradition treaty with Russia, he remained beyond the reach of U.S. law enforcement. He is now free on bail.
October 21, 2009
Russia Profile: A False Alarm?
By Roland Oliphant
Russia Profile
National Media Group Denies Plans to Outsource its News Production
Last week, Russia’s liberal establishment was perplexed by the announcement of changes at REN TV and the St. Petersburg Channel Five. The two stations, lauded as the last bastions of independent broadcasting on Russian television, are undergoing restructuring, which could potentially see their news services taken over by another company. But is it a move by the state to bring to heel the last remnants of independent reporting on television, or simply a pragmatic management decision prompted by hemorrhaging advertising revenues?
The restructuring, which was reported by the Kommersant business daily last Friday, began with a reshuffle of managers at the two stations and the National Media Group (NMG), the company that owns both stations. In spring, Vladimir Khanumyan, the former director of STS Media, was made general director of NMG’s newly created television division, NMG-TV. According to a press release from the company, from October 23, Alexander Ordzhonikidze, the former general director of REN TV, will become the chief of NMG.
Business newspapers were curious about the realignment of managers, and the staff of Channel Five were so alarmed by the prospect of losing their jobs and their distinct identity as a St. Petersburg (rather than Moscow) station, that they fired off an open letter to leading politicians, including President Dmitry Medvedev, Prime Minister Vladimir Putin and the speakers of both houses of Parliament.
But outside the business and television communities, the machinations of the NMG’s top management have made fewer headlines than the claim (denied by Khanumyan) that REN and Channel Five will from 2010 no longer produce their own news, but will take it from a division of RT (Russia Today), the state-owned English language channel whose office stands opposite REN TV’s headquarters on Moscow’s garden ring.
The claim raised eyebrows because REN and Channel Five have a reputation of the last bastions of semi-independence in their news coverage. Opposition politicians are not banned, and the coverage may even on occasion be overtly critical of the authorities. RT, on the other hand, is a state financed image project dedicated to presenting the Russian government’s point of view to the English-speaking world.
It is apparently a sensitive subject. RT’s press service refused to comment on the issue, but Khanumyan simply denied the claim. “The two channels produce their own news, they always have done, and they will continue to do so,” he said. Asked whether there were any plans for RT to take over REN TV’s and Channel Five’s news production, he said “of course not.”
That was echoed by NMG’s press service, which called it a “fundamentally important point” that “Channel Five and REN TV will continue to produce their own news.” And there seems to be at least some faith in this amongst the staff. Mariana Maximovskaya, a REN TV presenter whom one journalist described as “definitely not a Putin fan,” told the liberal Novaya Gazeta that she is “absolutely sure that REN TV’s information policy will not change in the near future.”
Disquiet in the ranks
Even if Maximovskaya’s colleagues share her confidence in the stations’ continued editorial independence, however, this does not extend to other aspects of the proposed changes. Channel Five’s staff began collecting signatures for an open letter to President Dmitry Medvedev and Prime Minister Vladimir Putin protesting the changes. The text of the letter, which quickly found its way onto the Internet, reminded the recipients that Channel Five is “the oldest in Russia, broadcasting since 1938,” complained that NMG planned to replace it with “another commercial Moscow channel, and St. Petersburg will lose its voice on air,” and warned of a “social explosion” as a result of redundancies. “There will be more than a thousand professionals on the street,” warned the letter. “The television market in St. Petersburg is very narrow, and for many there no chance of employment [elsewhere].”
“The staff of Channel Five reserve the right to mass non-violent protest,” the letter concluded.
On Monday, Khanumyan tried to tackle the brewing discontent at Channel Five head-on with an Email to all employees (also promptly leaked on the Internet) in which he apologized for the confusion caused by “inaccurate and often incorrect” stories in the press and tried to answer their concerns in order.
According to Khanumyan, the move is a strategic management decision pushed for by shareholders, designed to “streamline operations and optimize the business as a whole.” And it is not, he insists, about correcting anything as detailed as a particular station’s news coverage. “The goals are firstly to get Channel Five, which is a loss-making company, to break even, and then to reach a certain level of profitability,” he said. “Some processes will be streamlined, others will be outsourced – and that is why we are talking about restructuring. It’s very important to understand the bigger picture.”
He denied that “streamlining” was a euphemism for redundancies. Rather than abandoning the Northern Capital, said Khanumyan, the plans involve building a new television center in St. Petersburg that will provide technical services to other companies, and a third television channel to fill in the local niche that the St. Petersburg-based Channel Five lost when it went national in 2006.
Channel Five’s staff pointed out that the channel had popularity comparable to the State-owned channels Sport, Kultura, and Zvezda. But even they have not been immune to the shake-up in Russia’s television sector this year. Earlier this month the state media holding VGTRK announced that it would replace its six-year-old Sport channel with a new station designed to attract what it called “young and active viewers.” The change was widely seen as a response to heavy competition from private channels for broadcasting rights to major sporting events, but Khanumyan speculated that it was prompted by the same concerns as NMG’s restructuring. “The strategy is to address the new multimedia environment in which we will be living in several years. Whoever you are, the idea is to set up a family of channels and monetize the upcoming digital era from different distribution vehicles,” he said.
So there you have it. NMG’s re-jigging of its television division is simply a matter of responding to shareholder concerns and anticipating the future developments in technology.
Fair enough. But it is too early to say whether those reassurances will assuage either Channel Five’s staff, or critics who believe NMG is trying to put the last nails in the coffin of Russian television news independence. Kommersant, for example, noted in its commentary Wednesday that Khanumyan’s letter does not deny, or even mention, the claims about RT. That’s true, but neither did the Channel Five staff in theirs.
NMG would apparently like people to believe that Kommersant’s story was nothing but speculation. The authors of the article were unavailable for comment Wednesday, but to be fair, it was rather reliant on unnamed sources, and Khanumyan made clear that “it was not based on information they got from the company’s management.” But even if the reaction it generated was unexamined, the concern was genuine. REN TV and Channel Five are hardly troublemakers, but they do have enough of a reputation for independence to have thrown the liberal press into something of a panic at the prospect of losing it. “Independence is part of the brand, it’s part of their historical reputation, and these kinds of changes could really slice the audience share. It would be absolutely illogical for us to change that; we’d lose the audience,” said Khanumyan.
Liberals hope he means it.
National Economic Trends
RIA: Russia's international reserves up $4.7 bln to $423.4 bln in week
11:1522/10/2009
MOSCOW, October 22 (RIA Novosti) - Russia's international reserves comprising gold, foreign exchange and a range of other assets grew by $4.7 billion to $423.4 billion in the week of October 9 - October 16, the Central Bank said on Thursday.
Apart from foreign currency and gold, Russia's international reserves are also composed of special drawing rights (SDRs), a reserve position in the International Monetary Fund (IMF) and other assets.
22.10.2009 - RBC
: Budget deficit forecast narrowed
Russia is likely to end the year of 2009 with a budget deficit of just 7.5-7.7 percent, in contrast to the previous forecast of 8.3 percent, Russia's Finance Minister said today when speaking to the State Duma.
“This year, we initially expected a budget deficit of 8.3 percent of GDP. Yet, we were able to somewhat bridge the gap by cutting expenditure by 0.5 percent,” the finance minister explained.
Meanwhile, if the oil price hovers at around USD 70 a barrel until the end of 2009, the deficit could be narrowed by another 0.5 percent, Kudrin added.
Therefore, the Finance Minister hopes to bring the figure down to 7.5-7.7 percent of GDP towards the end of the year.
As reported earlier, in January-September 2009, the federal budget deficit stood at RUB 1.351 trillion (approx. USD 46.28bn), or 4.7 percent of GDP. For the period from January to August, the figure made up RUB 1.18 trillion (approx. USD 40.42bn).
In January-September, some RUB 5.112 trillion (approx. USD 175.13bn) in revenue had been transferred to the budget (76.1 percent of the target revenue as approved by the federal budget law for 2009 and the planning period of 2010-2011).
Itar-Tass: Duma approves 2010 draft budget
21.10.2009, 21.59
MOSCOW, October 21 (Itar-Tass) -- The State Duma lower house of Russia’s parliament has approved in the first reading the draft federal budget for 2010 and for the projected period of 2011-2012.
The draft budget for 2010 was worked out in detail, but the budgets for the next two years have only key parameters, Russian Prime Minister Vladimir Putin explained earlier.
According to the draft federal budget for 2010, revenues are estimated at 9.89 trillion roubles (USD 1 = RUB 29.16), expenditures at 6.95 trillion roubles (it is expected, they will go up to 8.1 trillion roubles by 2012).
Therefore, the federal budget deficit is planned to be 2.94 trillion roubles in 2010, or 6.8 percent of the Gross Domestic Product (GDP).
At the same time, the document envisages that the deficit is expected to reduce to 4 percent in 2011 and to 3 percent in 2012.
The deficit will be compensated for first and foremost with Reserve Fund and National Welfare Fund money, and also with borrowings. In this case the Reserve Fund will be exhausted in 2010, but it will begin to be replenished again as of 2013.
Judging from the document, next year’s GDP will grow to 1.6 percent, and inflation will be below ten percent (in the period from December 2010 to December 2011).
The average annual exchange rate of the U.S. dollar will make up 33.9 roubles per one U.S. dollar, while the average price of the Urals blend oil will amount to 58 U.S. dollars per barrel.
Bloomberg: Russia Warns Reduced Access to Credit a Main Concern (Update4)
By Paul Abelsky and Alex NicholsonOct. 21 (Bloomberg) -- Russia’s central bank warned that reduced access to credit is one of the bank’s main concerns, signaling policy makers haven’t finished cutting interest rates.
“Stress tests show that the situation isn’t ideal,” First Deputy Chairman Gennady Melikyan told reporters at a conference in Moscow today.
The central bank has lowered the key rate seven times since it started easing policy in April even as inflation remains above 10 percent. Policy makers, who on Sept. 29 cut the key refinancing rate to 10 percent, are trying to combat restrictive lending conditions that threaten to slow a fledgling recovery in the world’s largest energy exporter.
“I don’t see any reason why they should not be cutting” rates, Ivan Tchakarov, a London-based analyst at Nomura Holdings Inc, said in an e-mailed reply to questions.
A record economic contraction may bring the inflation rate this year below the government’s target for the second time in a decade. Inflation will probably not exceed 10 percent this year, Alexei Ulyukayev, another of the bank’s three first deputy chairmen, said today.
The current level of inflation and interest rates provides a “big opportunity” to cut rates further, Ulyukayev said.
Benchmark interest rate cuts to date have yet to lead to an increase in lending, Audit Chamber Chairman Sergei Stepashin told lawmakers today.
Stress Tests
The ruble weakened 0.2 percent against the dollar to 29.1925 at the close of trade in Moscow today. Against the euro, the ruble added 0.2 percent to 43.5706.
Russia has stress tested all its banks, with results showing that some of the country’s 100 biggest lenders won’t fulfill capital adequacy requirements, Melikyan said. Capital shortages may appear within six months, he added. The central bank and the government have no plans to publish the results of the tests, he said.
Banks, and other companies, may struggle to sell debt to consolidate their balance sheets next year as investors opt to place their funds in government bonds instead, according to analysts at Bank of America Merrill Lynch. The government has announced it plans to sell as much as $18 billion in debt in 2010 to plug it’s an estimated 6.8 percent budget deficit of gross domestic product.
Problem Loans
“We don’t see serious threats to the stability of the banking system,” Melikyan said.
Credit flows have remained tight even after a fall in delinquent loans, with bad debt in September declining 2.3 percent, not including Russia’s biggest bank OAO Sberbank, Melikyan said. The decline in bad loans may not represent a sustainable trend, he added.
According to Moody’s Investors Service, “problem loans” will rise to 20 percent of total lending by the end of this year, and swell to 25 percent in 2010.
Dwindling asset quality is depleting earnings at the country’s biggest lenders.
State-controlled Sberbank’s nine-month net income fell to 8 billion rubles ($274 million) from 102.9 billion rubles in the same period last year, RIA Novosti reported on Oct. 15, citing the bank’s Chief Executive Officer German Gref. VTB Bank, also majority-owned by the government, posted a net loss of 12.4 billion rubles in the second quarter, compared with a profit a year earlier, the bank said in a statement today.
Growth, Oil
A resurgence of demand for commodities has improved Russia’s growth prospects. Oil traded in New York touched $80 a barrel yesterday, having gained almost 80 percent this year. The economy may grow as much as 4 percent this quarter after the country emerged from recession in the previous three months, Deputy Economy Minister Andrei Klepach said at the conference. Output may expand more than 2 percent next year, he added.
If the price of oil, which makes up 30 percent of the economy, remains at current levels in 2011 and 2012, this could add 0.5 to 0.8 percentage point in annual GDP growth, Klepach said.
Foreign direct investment in Russia will fall at least 10 percent this year from last year, Arkady Dvorkovich, the top economic adviser to President Dmitry Medvedev, said today.
To contact the reporter on this story: Paul Abelsky in Moscow at pabelsky@
Last Updated: October 21, 2009 11:25 EDT
Business, Energy or Environmental regulations or discussions
Bloomberg: Lukoil, Mechel, Polymetal, Rosneft: Russian Equity Preview
By Maria Ermakova
Oct. 22 (Bloomberg) -- The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close.
The 30-stock Micex Index rose 0.8 percent to 1,373.20. The dollar-denominated RTS Index added 50 points, or less than 0.1 percent to 1,446.64.
OAO Lukoil (LKOH RX): Crude oil surged above $80 a barrel in New York to a one-year high after a U.S. Energy Department report showed a greater-than-forecast gasoline supply drop. Lukoil, Russia’s largest non-state oil producer, added 0.1 percent to 1,925.90 rubles. OAO Rosneft (ROSN RX), Russia’s biggest oil company, climbed 0.7 percent to 247.34 rubles.
OAO Mechel (MTLR RX): Russia’s biggest producer of coal used in steel making reports third-quarter production. Mechel rose 0.5 percent to 519 rubles.
OAO Polymetal (PMTL RX): Russia’s largest silver producer reports third-quarter production. Polymetal declined 1.2 percent to 266.66 rubles.
To contact the reporter on this story: Maria Ermakova in Moscow at mermakova@
Last Updated: October 22, 2009 00:11 EDT
Bloomberg: VEB Wants to Sell Stock, Bonds Bought in Crisis, Vedomosti Says
By Paul Abelsky
Oct. 22 (Bloomberg) -- VEB, Russia’s state development bank, asked the government for permission to offload the domestic stocks and bonds it bought last autumn to support financial markets, Vedomosti reported.
The lender managing the Russian government’s bailout program is discussing with the Finance Ministry the future of a five-year deposit it received from the National Wellbeing Fund, one of the country’s two sovereign wealth funds, to buy Russian securities, the paper said, citing two unidentified ministry officials.
VEB had 148.6 billion rubles ($5.1 billion) from the National Wellbeing Fund invested in the stock market as of Oct. 1, Vedomosti said, citing Ekaterina Karasina, a spokeswoman for VEB. The lender used the funds to buy shares in companies including OAO Gazprom, OAO Sberbank and OAO GMK Norilsk Nickel, the newspaper said.
To contact the reporter on this story: Paul Abelsky in Moscow at pabelsky@.
Last Updated: October 22, 2009 02:08 EDT
Reuters: Russia VEB in talks with govt over portfolio –paper
Thu Oct 22, 2009 11:24am IST
MOSCOW, Oct 22 (Reuters) - Russian state bank VEB is in talks with the Finance Ministry over the fate of a portfolio of domestic equities purchased to support share prices last year, the Vedomosti daily reported citing several sources.
The newspaper on Thursday cited a source close to the bank who said it wants to sell the share package gradually next year.
However, Finance Minister Alexei Kudrin told the newspaper the fund's future rests on a number of decisions which have yet to be made.
Last year the state allocated 175 billion roubles ($5.6 billion) to VEB from its National Welfare Fund of oil windfalls to buy shares on the open market.
VEB spent 155.8 billion roubles of this money on the most liquid bonds and shares of 15 companies. It purchased 3.7 percent of Norilsk Nickel (GMKN.MM: Quote, Profile, Research), as well as stakes in Gazprom (GAZP.MM: Quote, Profile, Research), Sberbank (SBER03.MM: Quote, Profile, Research), Rosneft (ROSN.MM: Quote, Profile, Research), VTB (VTBR.MM: Quote, Profile, Research) and Surgut (SNGS.MM: Quote, Profile, Research).
The value of these shares has increased sharply since last year, creating a sizeable paper profit for the National Wealth Fund, which has been designated as the recipient for any investment gains. (Reporting by Alfred Kueppers; Editing by David Holmes)
|Nasdaq: Russian Customs Service Withdraws Lawsuit Vs Bank Of NY Mellon |
|
|withdraws-lawsuit-vs-bank-of-ny-mellon |
|MOSCOW -(Dow Jones)- Russia's Federal Customs Service has withdrawn a $22.5 billion lawsuit against The |
|Bank of New York Mellon Corp. (BK), Maxim Smal, a lawyer for the customs agency, said Thursday. |
|As part of an out-of-court settlement, Bank of New York Mellon will pay $14 million in compensation for the trial costs, Smal |
|said. |
|The lawsuit against the bank has been repeatedly adjourned, since Russia's Federal Customs Service filed the lawsuit in Moscow in|
|May 2007. The service accused the bank of channeling funds received for exports to Russia in the late 1990s through accounts held|
|at the bank. |
|The suit sought damages from the bank related to a U.S. Justice Department investigation in which a Bank of New York vice |
|president allegedly helped to transfer $7 billion out of Russia in the late 1990s. |
|-By Greg White and Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937 8445; jacob.pedersen@ |
| |
RBC: Russian Railways posts preliminary revenue
RBC, 22.10.2009, Moscow 10:25:24.According to preliminary data, the revenue of Russian Railways under RAS shrank 7.5 percent and slightly exceeded RUB 775bn (approx. USD 26.58bn) in the first nine months of 2009 compared to the corresponding period a year earlier, the company announced today. At the same time, the company saved RUB 143.2bn (approx. USD 4.91bn) thanks to the implementation of the anti-crisis program on cutting production expenses.
The company's implementation of the investment program stood at RUB 169.5bn (approx. USD 5.81bn) in January-September, or 66 percent of the annual target.
Reuters: BRIEF-Russia's Polymetal Q3 gold output up 3 pct yr/yr
Thu, 22nd Oct 2009 07:33
MOSCOW, Oct 22 (Reuters) - Polymetal:
* Q3 2009 gold output rises 3 pct year-on-year to 77,000 oz
* Jan-Sept 2009 gold output flat year-on-year at 210,000 oz
* 2009 gold output target 290,000-300,000 oz, silver 17.0-17.5 mln oz
* 2010 gold output target 350,000-370,000 oz, silver 19.0-20.0 mln oz
(Moscow Newsroom, + 7 495 775 12 42, moscow.newsroom@)
Reuters: UPDATE 1-Russia's Polymetal Q3 gold output 3 pct up yr/yr
MOSCOW, Oct 22 (Reuters) - Russian precious metals miner Polymetal said on Thursday its gold output in the third quarter of this year rose by 3 percent year-on-year to 77,000 ounces, while 9 months output was flat as 210,000 ounces.
"We delivered another quarter of solid operating performance and our production is fully in line with year-ago projections," Vitaly Nesis, CEO of Polymetal, said in a statement.
Russia's top silver producer Polymetal, sometimes spelled as Polimetall, said its silver output rose by 8 percent in the third quarter of this year from a year-ago volumes to 4.1 million ounces.
Output in 9 months of 2009 rose by 1 percent to 11.8 million ounces.
Polymetal said it targets producing 350,000-370,000 ounces of gold and 19.0-20.0 million ounces of silver in 2010. The figures do not include the Varvarinskoye project in Kazakhstan, Polymetal bought in June.
Polymetal has narrowed down its 2009 gold output target to 290,000-300,000 ounces from previous 280,000-300,000 ounces and silver to 17.0-17.5 mln ounces from previously announced 17-18 million ounces. It did not give the reason for the change.
(Reporting by Aleksandras Budrys) Keywords: GOLD RUSSIA/POLYMETAL (aleksandras.budrys@; +7 495 775 1242; Reuters Messaging: aleksandras.budrys.@)
Reuters: Norilsk wants OGK-3 power unit to sell shares-paper
Thu Oct 22, 2009 8:19am BST
MOSCOW, Oct 22 (Reuters) - Russian miner Norilsk Nickel (GMKN.MM: Quote, Profile, Research) has asked its power subsidiary, OGK-3 (OGKC.MM: Quote, Profile, Research), to sell its treasury shares and a 0.41 percent stake in Norilsk to help fund investments, a Russian newspaper reported on Thursday.
Vedomosti business daily, citing two unnamed sources close to both companies, reported that OGK-3 would consider selling the 4.14 percent of treasury stock at current market price.
The shares were worth 3.31 billion roubles ($113.4 million) as of Wednesday's close. (Editing by David Holmes) ($1=29.19 Rouble)
Bloomberg: Novolipetsk Seeks to Boost Steel Capacity 40% by 2012-2013
By Ilya Khrennikov
Oct. 22 (Bloomberg) -- OAO Novolipetsk Steel plans to increase production capacity by 40 percent to 17.5 million tons of the metal by 2012 to 2013, Anton Bazulev, a spokesman, said today at an investor conference in Moscow.
To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@
Last Updated: October 22, 2009 01:49 EDT
Steel Guru: Severstal steel mills in US reach 95pct utilization
Thursday, 22 Oct 2009
Russia Severstal announced that the capacity utilization rate of its three steel mills in US has reached 95%, that is Dear born, Sparrows Point and Columbus. From the end of May to early June this year, the capacity utilization rate of the three mills still maintained 65%-70%.
The other two mills of Severstal in US-Warren and Wheeling are still in production suspension, and Severstal is unwilling to discuss any questions about the two mills.
It is learned that Severstal purchased Ohioan Warren and Wheeling in state of West Virginia in July 2008 and August 2008 respectively, which own the plate capacity of 1 million tonnes per year and 3.1 million tonnes of HRC capacity per year accumulatively.
In addition, the annual capacity of plate from Dearborn in Michigan is about 3.6 million tonnes, the billet and plate capacity from Sparrow Point in Maryland is 3.7 million tonnes around and 3 million tonnes per year respectively and the annual production of plate in Columbus in Mississippi is about 1.5 million tonnes.
(Sourced from MetalBiz)
TribToday: Officials: Put plant to work
Lawmakers urge Severstal to either reopen or sell Ohio steel mills
By LARRY RINGLER Tribune Chronicle
POSTED: October 22, 200
State Rep. Tom Letson, D-Warren, joined two other state-elected officials Wednesday in announcing they sent a letter to Severstal North America Inc. asking the company to resume steel production at its Ohio mills or sell them to a company that will.
''We are disappointed that several Severstal North America facilities in Ohio are standing unused at a time when other companies are expressing interest in utilizing them,'' Letson, state Sen. Jason Wilson, D-Columbiana, and Rep. John Domenick, D-Smithfield, wrote in the letter. ''Our constituents feel the pain of being laid off from your plants, and all concerned would be best served by having these plants operating again and the workers again gainfully employed.''
Other idle Severstal Ohio plants are in Mingo Junction, Martins Ferry and Yorkville.
Severstal North America spokeswoman Bette Kovach reiterated in an e-mail the company's position that it's committed to the U.S. market and will restart facilities when the market returns for their products.
She noted capacity utilization for the company's three active facilities is about 95 percent, but added orders typically decline with the approach of winter.
''We will consider reactivating idle facilities when the market returns for their products and when we are sure that the demand is sustainable,'' she said.
Ed Machingo, president of the 1,000-member United Steelworkers Local 1375, said his members are upset because Severstal is sending the local mill's orders to plants in Dearborn, Mich., and Columbus, Miss., to boost their utilization.
Steelworkers are trying to address that issue because the Dearborn mill is represented by the United Auto Workers, while the Columbus facility is nonunion, he said.
Machingo also said there are parties interested in Severstal Warren but that Russia-based OAO Severstal Chief Executive Officer Alexey Mordashov refuses to sell.
''Our members are upset about this. It's a good thing our lawmakers are taking this stand finally,'' Machingo said.
He noted Trumbull County Commissioner Frank Fuda is the only local elected official who regularly visits the union hall.
Letson said the lawmakers' goal was to remind Severstal about the Mahoning Valley's ''incredible history in metalworking, that we have steelworkers eager to go back to work and that we have what we think is one of the finest continuous casting facilities in the country.''
He said he considers the area lucky to have Severstal as the mill's owner because the company knows how to make steel.
''Our intent was to be encouraging,'' he said. ''When (Severstal) maxes out its facilities, I want us to be next in line.''
Next week will mark the year anniversary of the first wave of layoffs at Severstal Warren, when about 100 United Steelworkers were idled as the economy began to slide amid the worst downturn since the 1930s Great Depression. The mill went totally silent in the spring, putting most of its 1,200-plus hourly and salaried employees out of work.
Western Producer: Russia to take beef, sheep
this document web posted: 2009-10-22
By Barry Wilson
Ottawa bureau
Canadian livestock exporters are praising a deal that will pry open the Russian border, creating close to $50 million in export opportunities for beef and sheep.
On Oct. 13 during a trip to Moscow, federal agriculture minister Gerry Ritz announced that the Russian market is now open to beef from cattle younger than 30 months. It completes an agreement-in-principle signed in the summer by trade minister Stockwell Day.
: Russia: VW Kaluga plant to add Audis
Thursday, October 22, 2009,
Volkswagen’s plant in Kaluga, Russia is reportedly preparing to add production of three Audi models to its line-up. The facility began assembling partly-finished kits of Volkswagen and Škoda brand models in November 2007. Just a few days ago the OEM held a ceremony to signal the official start of full production.
According to an Autostat report, SKD assembly of the Audi А4, А5 and Q5 will begin in mid-November, jointed by the Audi A6 and Q7 in January 2010.
Volkswagen Group Rus currently employs more than 1,800 people in Kaluga and a further 300 in the sales company based in Moscow. By the end of 2010, there will be some 3,000 workers at Kaluga.
Published on Thursday, October 22, 2009
Flexnews: Russian Retailer Dixy Plans 100 New Shops in 2010
|Source: Reuters | |
|22/10/2009 | |
Moscow, Oct 21 - Russian budget food retailer Dixy Group will open at least 100 new shops next year and hopes to increase like-for-like sales by 8 to 10 percent, Vice President Fyodor Rybasov said on Wednesday.
Dixy, which had 500 shops at the end of September, will finance the 2010 investment programme from its own revenues.
Retailers focusing on the cheaper end of the market have outperformed in Russia as consumers tightened their belts in the face of the first recession in a decade.
Although economic growth has now returned, recovery is expected to be slow.
Activity in the Oil and Gas sector (including regulatory)
Barentsobserver: Rosneft for sale
2009-10-21
The Russian government will reduce its ownership stake in oil major Rosneft before the end of the year, Russian Presidential adviser Arkady Dvorkovich confirmed.
According to Vedomosti, the sales of the Rosneft shares come as the Russian government faces a serious budget deficit. The shares will be sold before the end of the year, Interfax reports with reference to Mr. Dvorkovich.
The Russian state in Rosneft in 2006 reduced its ownership stake in Rosneft with 10 percent. The state now owns 75,16 percent of the company, the biggest oil producer in Russia.
As BarentsObserver reported recently, the Russian state also intends to reduce its control in several other companies, among them shipping major Sovcomflot.
Itar-Tass: Ukraine proposes to reduce volume of gas purchased from RF
22.10.2009, 10.03
KIEV, October 22 (Itar-Tass) - Ukraine has put forward a proposal to Russia to change the volume of natural gas purchase under the contract with Gazprom, Ukrainian president’s envoy for international energy security Bogdan Sokolovsky said in an interview to the Austrian press.
According to him, in 2009 Ukraine is to purchase under the contract 40 billion cubic metres of Russian natural gas. Due to the crisis the country’ s gas demand has dropped to 30 billion cubic metres. This volume is too big for 2010, the presidential press service reported.
“We are facing penalties worth 5.9 billion US dollars, it is very unlikely that we will be able to pay this, Ukraine has no money,” Sokolovsky noted. He said that Russia evades from signing a written agreement on the non-use of sanctions for the purchase of gas in the lower volume than stipulated in the contract.
In the view of Sokolovsky, the increase of tariffs for gas transit to Western Europe to the market level will allow Ukraine to get an additional profit of 3.5 to 7 billion US dollars.
CEO of Naftogaz of Ukraine Oleg Dubina said earlier that the gas price will be raised 70-80 US dollars for Ukraine in early 2010. Ukraine buys gas at the price of 208.12 US dollars a thousand cubic metres at present and until the end of this year, he said.
According to the preliminary calculations, the tariff for gas transit may be increased to 2.68-2.7 US dollars a cubic metre for 100 kilometres, he said, noting that the transit rate for Russia was set at 1.7 US dollars for 2009. The company head also said that the issue of fines for Ukraine’s taking less gas than planned was under discussion. He noted that Russia never was the first to say about fines.
Earlier, Bogdan Sokolovsky said the price for the Russian gas was supposed to be set at about 300 US dollars in the first quarter of 2010. Ukrainian Prime Minister Yulia Timoshenko said on September 7 that the tariffs for Russian gas transit across Ukraine would be increased 50-80 percent in 2010.
National joint-stock company “Naftogaz of Ukraine” is the state company of Ukraine concerned with extraction, transportation, and refinement of natural gas and crude oil. The company is also active in Egypt and in the United Arab Emirates. In September 2009. the Fitch Ratings of the company dropped from ‘CC’ to ‘C.’
In 2005 the company became embroiled in a dispute over the natural gas prices with Russian state company Gazprom, which was ended on 4 January 2006. In January 2009 the company was the centre of a similar conflict.
On October 24, 2008, Gazprom and Naftogaz signed a long-term cooperation deal in which it was decided that Ukraine will receive Russian natural gas directly from Gazprom and Naftogaz will be the sole importer of Russian natural gas.
Deliveries of 90 million cubic metres of natural gas per day, designed for Naftogaz were fully cut by Gazprom on 1 January 2009 at 10:00 MSK and were restored only on 13 January 2009 at 10:00 MSK after long-term agreements for gas transit and supply for 2009-2019 were signed.
On March 4, 2009 Officers of the Security Service of Ukraine (SBU) and the Alfa special police unit searched the company's headquarters in a case against officials of Naftogaz Ukrainy on embezzlement of 6.3 billion cubic metres of transit natural gas. The same day the Shevchenko District Court of Kiev banned the Security Service to investigate this case. The next day Bloc Yulia Timoshenko deputies of the Ukrainian Parliament (Verkhovna Rada) prevented a second raid. According to Valery Khoroshkovsky, first deputy chairman of the Security Service of Ukraine, the RosUkrEnergo Company and a number of Verkhovna Rada’s deputies filed in a claim against Naftogaz Ukrainy. Also on March 5, 2009 Prime Minister Yulia Timoshenko awarded the chairman of the State Customs Service Anatoly Makarenko, deputy chief of the Energy Regional Customs department Taras Shepitko, deputy chief accountant of Naftogaz Ukrainy NJSC Maria Kushnyr and director of the Judicial Department of Naftogaz Ukrainy NJSC Sergei Davydenko with decoration and honorary documents of the government of Ukraine. On March 17, 2009 a criminal case was filed against officials of the Naftogaz Ukrainy national joint-stock company on suspicion of stealing 6.3 billion cubic metres of natural gas intended for transit through Ukraine by the SBU.
The company drills for oil in the Western Desert in Egypt. On December 13, 2006, Naftogaz Ukrainy and the Egyptian General Petroleum Corporation had signed an agreement on the exploration and development of oil and gas deposits on the eastern territory of Alam El Shawish East in the Western Egyptian desert. On March 29, 2009 the company started to drill its first prospecting gas well Hamad-1 on the territory of the emirate of Al Fujairah in the United Arab Emirates (UAE). The 2005 agreement with UAE investors was signed in 2005. The term of the agreement is 29 years, including the four years of prospecting.
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Moscow, Moscow…
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22 October 2009 | 10:04 | [pic]
Focus: Bulgarian Minister of Economy, Energy and Tourism Traicho Traikov will hold talks in Moscow with Sergey Sobyanin – a Deputy Prime Minister of Russia and leading figure in Russia’s government.
It is expected the main discussion topics to be the progress for clearing positions in the joint energy projects after the meeting of Energy Minister Traikov and his Russia’s counterpart Sergey Shmatko on September 18, 2009 in Sofia.
: Russia Refutes Claims of Striking Burgas-Alexandroupolis
Energy | October 22, 2009, Thursday
Russia did not strike the “Burgas-Alexandroupolis” oil pipe line project, the Russian “Transneft” declared Thursday.
The Deputy President of the company, Mihail Barkov, said in an interview for the Bulgarian National Television (BNT) that the oil line through Bulgaria can exist without interfering with the “Samsun Djeihan” one in Turkey.
“Transneft” declined to comment on the publications in the “Russian daily “Novaya Gazeta” about the annulment of the project, but Barkov confirmed “Burgas-Alexandroupolis” is not going to be halted and is progressing according to schedule. He pointed out the Russian oil will be sufficient to fill both pipes – trough Bulgaria and Turkey, adding “Transneft” was expecting the answer of Prime Minister, Boyko Borisov, regarding Bulgaria’s participation in the project by November 1.
The future of “Burgas-Alexandroupolis” and the other Russian energy projects is expected to become clearer later Thursday after the conclusion of the negotiations between Bulgaria’s Economy and Energy Minister, Traicho Traikov with his Russian counterpart, Sergey Shmatko and the Russian Deputy PM, Sergey Sobianin.
OilVoice: TNK-BP Will Invest $180 Million in 2010 Into Russkoe Field Development
22 October 2009
TNK-BP is going to invest $180 million into development of the Russkoe field, Sergey Biryukov, head of the Russkoe project, said to the press.
Mr. Biryukov reminded that on October 8, the Board of Directors of TNK-BP approved investment of $400 million into exploration and development of fields in the Yamalo-Nenets Autonomous District and north Krasnoyarsk Krai, of which $180 million intended for the Russkoe field will be used up in 2010 and early 2011.
So far, TNK-BP has already invested approximately $100 million into development of the Russkoe field and is operating 10 wells in it, including 4 producing wells. Preparation of a project for full-scale development of the Russkoe field and corroboration of its newly prospected reserves will start after drilling and exploration of several new wells in the field. Mr. Biryukov pointed out that seismic surveys revealed promising oil production areas near the license boundaries of the Russkoe field.
In 2010, TNK-BP will test a thermal method of oil recovery enhancement based on injection of hot water and steam into the formation. Next year, the company is going to launch a new experimental setup for reducing oil viscosity immediately at the wellhead. If this setup proves to be efficient, this know-how will be applied throughput the field.
At the current stage of Russkoe field development, according to Mr. Biryukov, the essential goal is to find new technologies for recovery of hard-to-get oil from the field.
Next year, the company plans to construct a gas-fired power plant in the Russkoe field and an automobile road from the field to the federal highway than will be built in 2011. Mr. Biryukov explained that hydrocarbons are being produced now only in wintertime, because oil export from the field is currently confined to vehicular transportation on ice roads. Construction of the automobile road will allow year-round production and export of oil. Still, added he, oil production in the Russkoe field will be quite small and amount to approximately 20,000 tons in 2009 and 42,000–46,000 tons in 2010.
The head of the Russkoe project stressed that full-scale development of the field is hindered by the lack of oil transportation infrastructure in the region. For this reason, TNK-BP lays high hopes on the program of comprehensive development of fields on the Yamal Peninsula, which is expected to be approved and adopted in Q1 2010.
Apart from that, Mr. Biryukov informed that the government is now discussing plans for transferring the Vankor-Purpe pipeline currently owned by Rosneft to Transneft and further increasing the throughput capacity of this pipeline. In this case, said Mr. Biryukov, TNK-BP may build two pipelines – a Suzunsk–Vankor pipeline and a pipeline from the Russkoe field to the trunk pipeline to connect its fields in north Krasnoyarsk Krai and the Russkoe project in the Yamalo-Nenets Autonomous District to the trunk pipeline. “A decision on this issue (connection of the Suzunskoe field, one of TNK-BP’s fields in north of Krasnoyarsk Krai, to the Vankor-Purpe pipeline – ANI) is expected to be made very soon,” said Mr. Biryukov.
According to the head of the Russkoe project, if the problem of oil transportation from the Russkoe field is solved, active development of the field will start in 2011, the field will be put into full operation in 2014, and oil production will reach its peak and amount to 7.5–10 million tons of oil a year in 2012–2020.
The in-place reserves of the Russkoe field are estimated at 1.5 billion tons of oil, and its recoverable reserves amount to 410 million tons. Hydrocarbons occur 800–900 m deep. The Russkoe field is one of the largest fields in Russia. Oil from this field is characterized by high viscosity and can be used for production of high-quality jet fuel, diesel fuel, arctic low-cold-test low-sulfur lubricants, construction bitumen, road-building bitumen, and electrode coke. Development of the Russkoe field is complicated by a number of factors, especially its location in the polar region, complex geological structure, and lack of oil transportation infrastructure.
: Russia Eyes New Markets as Far East Oil Reaches Terminal
| 2009-10-22 16:26:40 Xinhua Web Editor: Hu Weiwei |
Russia's bid to diversify its energy markets by expanding into the Asia-Pacific advanced with the arrival Thursday of the first trainload of Eastern Siberian oil at the Russian seaport of Nakhodka in the Primorsky Krai.
Russia's bid to diversify its energy markets by expanding into the Asia-Pacific advanced with the arrival Thursday of the first trainload of Eastern Siberian oil at the Russian seaport of Nakhodka in the Primorsky Krai.
The 72-coach train loaded with more than 4,300 tons of crude oil set out from the Irkutsk region on Oct. 12. The oil will be transmitted via underground pipeline to Kozmino, the terminus of the Eastern Siberia-Pacific Ocean pipeline (ESPO).
Igor Demin, spokesman of Russia's oil pipeline monopoly Transneft, told Xinhua that Russia expected to ship oil to Asia-Pacific clients by year-end.
Meanwhile, the construction of the ESPO pipeline's extension to China had been carried out smoothly, said Demin, with the major part of the pipeline stretching from Skovorodino in the Amur region to the Russia-China border completed.
He was confident China would finish the laying of the pipeline section across the Heilongjiang River as well as other construction work within China on time.
The ESPO pipeline, running from Taishet in Eastern Siberia to Nakhodka, is more than 4,000 km long.
In February, Russia and China signed cooperation deals on the construction of an ESPO branch toward China and long-term Russian oil supplies to China.
The branch, which runs from Skovorodino to China's northeastern city of Daqing via China's border city of Mohe, is expected to come on line in October 2010. Russia is scheduled to export 15 million tons of crude oil to China over 20 years.
Gazprom
Upstreamonline: Gazprom mulls shale player buy
Wire reports
Gazprom said it may consider acquiring a US shale-gas producer to gain the know-how to exploit similar fuel deposits at home.
“An acquisition of a shale-producing company could make a lot of sense,” John Hattenberger, president of Gazprom’s US energy-trading unit, said.
“Russia has huge shale reserves,” he said in a Bloomberg report.
Norway’s StatoilHydro said in May that it may invest in shale formations from Europe to Asia after the purchase of a stake in Chesapeake Energy projects in the US north-east gave it access to shale-gas expertise.
After building up its Houston-based trading business in the US, Gazprom could benefit from buying gas-producing properties in the world’s largest market for the fuel, Hattenberger said.
“As the biggest producer in the world, strategically, it would make some sense,” he said. Before that can happen, Hattenberger added, “We need to walk before we run, and marketing and trading for us is a great entry and capitalises on Russian production.”
Gazprom had 338.4 billion rubles ($11.6 billion) of cash as of the end of March, according to a company filing.
Hattenberger did not identify companies or assets that could become acquisition targets for Gazprom.
Wednesday, 21 October, 2009, 21:01 GMT | last updated: Wednesday, 21 October, 2009, 21:03 GMT
UPI: South Stream construction in 2010?
Published: Oct. 21, 2009 at 12:52 PM
MOSCOW, Oct. 21 (UPI) -- Russia expects to begin construction on the South Stream natural gas pipeline by the end of 2010 following the conclusion of several government deals.
The Turkish government approved the project Monday with support from Serbia emerging the next day.
South Stream would bring natural gas from Central Asia and Russia to European markets through the Black Sea.
South Stream is one of the options for Russia to expand its European gas infrastructure. Most of the Russian gas bound for Europe travels through Soviet-era pipelines in Ukraine, and tensions between Kiev and Moscow complicate the regional energy sector.
Russia expects to start construction on South Stream shortly after it completes the necessary feasibility studies on the project in 2010, The Wall Street Journal reports.
The agreements bring South Stream closer to functionality than the Western-backed Nabucco natural gas pipeline.
A January gas crisis between Kiev and Moscow prompted Europe to push to secure its energy supplies with Nabucco. Despite political support for the project, Caspian commitments to supply gas for the project are slow to develop.
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