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Basic Political Developments
• RIA: Russian-U.S. nuclear arms talks continue in Geneva
• AFP: Russia and US to resume nuclear reduction talks
• RIA: Russia to do its best to sign arms cuts deal with U.S. by Dec.
• Russia Today: Vienna talks could break Iran’s nuclear deadlock
• BBC: Talks for deal on Iranian uranium - Russia, France and the US are to hold talks with Iran to try to finalise an agreement on sending Iranian uranium abroad for enrichment.
• Reuters: Clinton says agrees with Russia on Iran steps
• AFP: Russia ready to help Iran fight terror: Medvedev - Russia is ready to help Iran fight “terrorism”, President Dmitry Medvedev said Monday, in a letter of condolence to his Iranian counterpart Mahmoud Ahmadinejad after a deadly attack on an elite force.
• Trend.az: Azerbaijan, Russia, Iran to discuss North-South railway project in Tehran - "At present, negotiations are underway. There are still no exact results and dates. But, the meeting of working groups is scheduled for Nov.1-4 in Tehran," Azmammadov said.
• Sudan Tribune: Russian envoy to meet JEM rebels - Russian special envoy to Sudan, Mikhail Margelov, would meet the leader of the rebel Justice and Equality Movement in a bid to establish contacts with all Darfur stakeholders.
• Itar-Tass: Russia ready to make all effort to promote Middle East settlement - On Monday, the Russian special presidential envoy will round off his visit, during which he visited Lebanon and Syria. In Beirut he will meet with speaker of the Lebanese parliament Nabih Berri and acting Prime Minister Fouad Siniora.
• RIA: Russia's foreign minister to attend EU-Russia meeting - The talks are expected to focus on the preparations for the EU-Russia summit, scheduled for November 18 in Stockholm, as well as on a new partnership and cooperation agreement between Russia and the European Union.
• RIA: Energy projects to be discussed in Belgrade – Medvedev
• B92: Medvedev on Kosovo, cooperation
• RIA: No resolution of Kosovo issue without Serbia – Medvedev
• Blic.rs: Medvedev arrives with hundred officials
• Reuters: PREVIEW-Focus shifts to economy as Medvedev visits Serbia
• B92: Dačić on Medvedev's "historic visit"
• Itar-Tass: Medvedev to hold meeting on state-of-the-nation address preps - Russian President Dmitry Medvedev will hold a meeting with the government and the presidential administration devoted to the preparations to an annual state-of-the-nation address to the Federal Assembly on Monday, the Kremlin press service told Itar-Tass.
• Itar-Tass: Anti-corruption struggle in Russia to be long – Medvedev
• Arab News: Russian stand on Gaza lauded - “We people in Saudi Arabia and the Arab World in general appreciate the Russian stance with regard to the rights of Arabs and its support for the Palestinian struggle in regaining their legitimate rights and to create an independent state with Jerusalem as its capital,” said Al-Tayyib, director of the Saudi Foreign Ministry’s branch in the Western Region
• Haaretz: [pic]Russians deal Lieberman 'slap' by endorsing Goldstone
• The Jerusalen Post: 'UNHRC vote may affect Moscow parley'
• ABC.az: EurAsEC Anti-Crisis Fund to hold first session in an upcoming month
• Bloomberg: Libya to Buy $1 Billion of Russian Combat Planes, Interfax Says
• Domain-: Russia allotted Haripur as site for nuclear reactor park news [pic]19 October 2009
• : S Korea, Russia to jointly review cause of satellite launch failure
• The Japan Times Online: Kremlin cajoling Hatoyama
• RFERL: Russian Black Sea Fleet Objects To Ukrainian Checks
• Bloomberg: Hermitage Asks Russia to Investigate $381 Million Tax Refunds
• The Washington Post: Investment firm dares to cry corruption in Russia - British company outlines tax fraud's many accomplices
• Telegraph.co.uk: Russia jails sawmill foreman for largest 'tax fraud' in country's history
• NY Times: For Potential Owner, a Background Check Worthy of the K.G.B.
• The Moscow Times: Deripaska Denies Involvement in Spanish Money Laundering
• Reuters: Deripaska denies links to firms probed by Spain
• APA.az: Large-scale terror attack prevented in Ingushetia
• Upstreamonline: Russian pipeline intact after bomb attack
• RIA: Russian police kill 4 gunmen, deter terror attack North Caucasus
• Reuters: Four killed in south Russia attacks
• Ynet : 4 killed in south Russia attacks
• Times Online: Chechen terror family chief turns on sons
• RIA: Two transporter trucks with stolen Lexus cars detained in Russia
• RIA: Russia's Trans-Baikal Region reports 91 swine flu cases
• WSJ: Russia Worries About the Price of Oil, Not a Nuclear Iran - By Garry Kasparov
• The Seoul Times: U.S. Appeals to Extradite Russia's Alleged "Merchant of Death"
• The Moscow Times: RT to Decide Ren-TV’s News Programming
National Economic Trends
• : PM Vladimir Putin says CBR plans to gradually narrow scope of FX interventions
• Bloomberg: Russia Bonds May ‘Crowd Out’ Company Debt, Bank of America Says
• : Russia looks to raise $18bn - Russia is to launch its first international bond in a decade to bolster its public finances and take advantage of the surge in demand for emerging market debt
• Risk Center: October 19: Commentary - Russian Outward FDI and Its Policy Context
Business, Energy or Environmental regulations or discussions
• Bloomberg: AvtoVAZ, Gazprom, Lukoil and OAO TMK: Russian Equity Preview
• VTB Capital: Kudrin: state banks can lend at 8-12% to corporate
• Public-Private Partnerships to step into funding gaps
• VTB Capital: Russian Power Generation: Inter RAO: Loading up Acquisitions
• Reuters: UPDATE 1-Petropavlovsk 9-month gold output jumps 29 pct
• ShareCast: Petropavlovsk output lower in latest quarter
• Steel Guru: Recession reports - Russian steel sector recovery by 2015
• Interfax: Norilsk Nickel posts net profit of $439 mln in H1, beating forecast
• : UPDATE 1-Norilsk, BHP plan to mine Russian coal from 2015
• Barentsobserver: Norilsk-Nickel will open coal mine
• Your Metal News: Evraz Acquires Carbofer Metall in Russia
• The Moscow Times: MMK Buys Control of Belon
• M&C: Swiss firm ABB says working in Russia getting more expensive
• Reuters: UPDATE 1-Amur gets approval for Maly Krumkon reserves
• Bloomberg: Nissan May Make Small Sedans With AvtoVAZ From 2012, Kyodo Says
• Russia Today: Cheap gas helping fertilizer producers plan for longer term
• The Moscow Times: TMK Loses $204M In H1, Sales Slump
Activity in the Oil and Gas sector (including regulatory)
• WSJ: Venezuela,Russia,Iran Seek To Replace Dlr Pricing Of Oil-Report
• Reuters: LUKOIL says Conoco has no plans to sell stake-Ifax
• Reuters: LUKOIL, Conoco up output target in Iraq W.Qurna bid
• WSJ: UPDATE: Lukoil Submits New Bid For Iraqi Oil Field-Official
Gazprom
• This Day Online: Oando Signs MoU with Gazprom on Gas Devt
• : Gazprom in tie-up with Nigerian company
• Telegraph.co.uk: Gas compnay Gazprom on brink of sealing tax breaks
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Full Text Articles
Basic Political Developments
RIA: Russian-U.S. nuclear arms talks continue in Geneva
09:3519/10/2009
MOSCOW, October 19 (RIA Novosti) - The next round of Russian- U.S. consultations on a replacement for the Strategic Arms Reduction Treaty (START 1) will be held on Monday in Geneva.
START 1, signed in 1991 and due to expire on December 5, is the bilateral basis for Moscow and Washington's nuclear disarmament.
Russian President Dmitry Medvedev said in an interview ahead of a visit to Serbia this week that Russia was doing its utmost to agree on a new treaty.
"We are doing everything necessary to achieve the signing of a relevant document by December," he told Serbia's Vecernje Novosti.
Medvedev and his U.S. counterpart Barack Obama agreed in July in Moscow on the outline of a deal to replace START 1, including cutting their countries' nuclear arsenals to 1,500-1,675 operational warheads and delivery vehicles to 500-1,000.
The drafting of the new pact was one of the key themes of talks held in Moscow during last week's visit of U.S. Secretary of State Hillary Clinton, and the negotiating teams worked on specific language during meetings in Geneva earlier this month.
The Russian delegation is headed by Anatoly Antonov, director of the Foreign Ministry's Department of Security and Disarmament, while the U.S. team of negotiators is led by Assistant Secretary of State Rose Gottemoeller.
The START 1 treaty obliges Russia and the U.S. to reduce nuclear warheads to 6,000 and their delivery vehicles to 1,600 each. In 2002, a follow-up agreement on strategic offensive arms reduction was concluded in Moscow. The document, known as the Moscow Treaty, envisioned cuts to 1,700-2,200 warheads by December 2012.
AFP: Russia and US to resume nuclear reduction talks
(AFP) – 13 hours ago
MOSCOW — Russia and the United States resume talks Monday in Geneva to thrash out a new agreement on limiting their nuclear arsenals, amid signs they are moving towards an accord.
Negotiators from the former Cold War foes come together for the latest meeting in negotiations aimed at replacing or renewing the 1991 Strategic Arms Reduction Treaty (START), a cornerstone of arms control between the two countries.
Washington and Moscow agreed earlier this year to reach a new nuclear deal to succeed START, which was hammered out in the dying days of the Soviet Union and expires on December 5.
Monday's talks are the seventh round in the marathon negotiations.
The process is an attempt to reach agreement between two countries whose relations were severely tested under the administration of the former US president George W. Bush.
Efforts to forge a new nuclear disarmament pact are also in line with a pledge made by US President Barack Obama in April during a speech in Prague to work towards a world free of nuclear weapons.
The last round of talks, which ended on October 2, lasted an unprecedented two weeks, compared to earlier sessions which lasted only three or four days.
Negotiations have so far been shrouded in secrecy, but Russian Foreign Minister Sergei Lavrov last Tuesday indicated they were going in a positive direction.
"We have made substantial movement forward," Lavrov said at a joint press conference in Moscow with visiting US Secretary of State Hillary Clinton.
Russia and the United States are committed to continuing their efforts to get the job done by the December 5 deadline, the minister said.
Several days earlier, Russian President Dmitry Medvedev said the chances of reaching a deal by the deadline were "not bad".
"We have given our negotiators the task of finishing a deal in time. I think the chances are really not bad," Medvedev said in a interview with Russia's Channel One state television network.
He also praised the new US president for being more interested in disarmament than his predecessor, George W. Bush, saying that with the new administration "there is definitely a chance to reach a deal."
Medvedev also cautioned it would be "necessary to show wisdom on both sides", however.
The negotiations had been complicated by US plans to deploy missile defence facilities in Poland and the Czech Republic, which Moscow viewed as a threat.
But America's decision to scrap the project last month -- which was thought up by the previous US administration -- should be a boost to the anti-proliferation talks, according to analysts.
At a Moscow summit in July, Medvedev and Obama agreed to reduce the number of nuclear warheads in Russian and US strategic arsenals to between 1,500 and 1,675 within seven years.
They also agreed to cut the number of ballistic missile carriers to between 500 and 1,100.
RIA: Russia to do its best to sign arms cuts deal with U.S. by Dec.
04:1719/10/2009
MOSCOW, October 19 (RIA Novosti) - Russia will do its best to sign a new strategic arms reduction treaty with the United States by December, President Dmitry Medvedev said prior to his visit to Belgrade scheduled for Tuesday.
"Talks to work out a new, legally binding Russian-American agreement to reduce and limit the strategic offensive armaments are currently being held in Geneva," he told Serbian online publication Vecernje Novosti.
"We are doing everything necessary to achieve the signing of a relevant document by December," Medvedev said.
Medvedev and his U.S. counterpart Barack Obama agreed in July in Moscow on the outline of a deal to replace the 1991 Strategic Arms Reduction Treaty (START 1), which expires on December 5, including cutting their countries' nuclear arsenals to 1,500-1,675 operational warheads and delivery vehicles to 500-1,000.
The START-1 treaty obliges Russia and the U.S. to reduce nuclear warheads to 6,000 and their delivery vehicles to 1,600 each. In 2002, a follow-up agreement on strategic offensive arms reduction was concluded in Moscow. The document, known as the Moscow Treaty, envisioned cuts to 1,700-2,200 warheads by December 2012.
Moscow and Washington have been involved in a series of closed-door talks to prepare a new arms reduction deal until December. Both sides have expressed hope that the new agreement would be signed before the expiration of the current treaty.
Russia Today: Vienna talks could break Iran’s nuclear deadlock
19 October, 2009, 09:46
Major nuclear powers are to enter talks with Iran on how to supply its reactor with enriched uranium. Instead of enriching its own uranium, Tehran could soon be handing the responsibility over to other nations.
This could involve sending Iran's nuclear materials to France and Russia to be enriched up to safe levels.
If the negotiations are successful, an agreement might help to finally end the international dispute over Iran’s nuclear programme.
Iranian uranium
After talks in Geneva earlier this month between the six world powers and Iran, Tehran agreed in principle to allow some of its uranium to be enriched in France and in Russia’s Angarsk plant in Siberia.
This would be turned into fuel and then be shipped back; a plan which Moscow says has many advantages.
“It is cheaper and more convenient to enrich the uranium in Russia, where the technology is available and has been proven for decades,” points out analyst of the Institute for World Economy and International Relations Aleksandr Pikayev. “The uranium will be of better quality and Iran will only gain from that.”
And while Iran gains from better quality fuel, the plan will also dampen down Western fears that Iran’s nuclear facilities are not for peaceful purposes
It will make use of the country’s existing stockpile of low enriched uranium, ending speculation that Iran has enough to build an atomic bomb.
Iran claims it has uranium with only a concentration of around 4% – well short of the 80%-90% needed to make nuclear weapons.
Despite this, and Iran's denial of intending to build a bomb, Western powers and the UN’s nuclear watchdog the IAEA, want to ensure they keep a close eye on Iran’s facilities. Russia says it is crucial that all parties are involved.
The head of committee of directors of Russia’s “Atompromresursi” Andrey Cherkasenko ponders says that “This plan can only happen with the consent of the IAEA and with several countries engaged in the operation. The uranium can be enriched in Russia, but further production of the fuel will need to be done in a third country, like France.”
Crucial talks in Vienna
It is hoped that the details can be hammered out during Monday’s meeting, which is being seen by all sides, including Iran, as a test to see if further cooperation can actually be achieved.
Washington has already warned it wants significant progress and if that doesn't happen it will again push for international backing of tougher sanctions.
Moscow has ruled out this option in favour of dialogue with Iran – but all that depends of whether Tehran is ready to talk.
BBC: Talks for deal on Iranian uranium
Russia, France and the US are to hold talks with Iran to try to finalise an agreement on sending Iranian uranium abroad for enrichment.
Iran agreed in principle to have some uranium shipped out of the country at talks in Geneva earlier this month.
Monday's meeting in Vienna, hosted by the International Atomic Energy Agency (IAEA), is seen as a test of the diplomatic process now under way.
Western powers say Iran is seeking a nuclear weapon, a charge Iran denies.
It says its nuclear programme is for purely civilian, peaceful purposes.
Under the arrangement western negotiators say was reached in Geneva, Russia and France would treat low-enriched Iranian uranium and turn it into fuel rods for a research reactor in Tehran.
BBC Tehran correspondent Jon Leyne reports from London that in theory this is a deal that could suit everyone.
Iran would have the fuel it needs, tacit acknowledgement of its right to enrich uranium, and no new sanctions, while the West would get a guarantee that Iran's existing stockpile will not be diverted to make nuclear bombs.
But the talks in Vienna have many details to resolve, our correspondent says, and it is still unclear that Iran is willing to see the uranium it has already enriched taken out of its control.
Abolfazl Zohrehvand, an aide to Iran's lead nuclear negotiator Saeed Jalili, was quoted as saying that under the current proposal, only enrichment above 5% would be done outside Iran.
"The importance of this is that Iran will retain the techniques and technology of enrichment... and we will keep our sites and research centre," he said, according to the Irna news agency.
"It is possible that in certain circumstances we will need uranium enriched to 63%, which we will buy under the supervision of the IAEA or indeed we will do the enriching ourselves."
Last month, the revelation of a second uranium enrichment plant in Iran further raised Western fears that Iran was trying to develop nuclear weapons.
The Iranian government has said it will allow IAEA inspectors into the site, thought to be near Qom.
The Iranian media has reported that the talks in Vienna could run into Tuesday.
Reuters: Clinton says agrees with Russia on Iran steps
Mon Oct 19, 2009 1:15pm IST
BERLIN (Reuters) - The United States and Russia agree they must consider further steps against Iran if they are unable to reach a diplomatic solution to its nuclear programme, U.S. Secretary of State Hillary Clinton said in a newspaper.
Clinton failed to win specific pledges from Moscow for tougher sanctions against Iran during a visit to Russia last week, but she said in the interview that there was broad agreement with the Kremlin on how to proceed.
"We have agreed to make diplomacy the priority with Iran. But if we are not successful, we will consider other steps," Clinton said in the interview, which was conducted by Newsweek's Russian edition and appeared in German daily Die Welt.
She described her talks with Russian leaders as "very constructive" and said the two countries were in "full agreement" on the way forward.
Clinton also said it was positive that Russia had not followed through on plans to deliver high-grade S300 air defence missiles to Iran.
"Until now they have not delivered any rocket systems to Iran. We see this as a good sign," she was quoted as saying.
Her comments were translated from the German by Reuters because Die Welt was not immediately able to provide an English transcript.
Clinton also reiterated that Washington was ready to cooperate with Moscow on missile defence after U.S. President Barack Obama scrapped his predecessor George W. Bush's plan to put parts of an anti-missile system in eastern Europe.
"On the question of the missile shield, we are very open to cooperation with the Russians. We have made this clear to them. We believe that a joint missile defence would make sense," Clinton said.
(Writing by Noah Barkin)
AFP: Russia ready to help Iran fight terror: Medvedev
(AFP)
19 October 2009, 11:43 AM
MOSCOW - Russia is ready to help Iran fight “terrorism”, President Dmitry Medvedev said Monday, in a letter of condolence to his Iranian counterpart Mahmoud Ahmadinejad after a deadly attack on an elite force.
“The fight against the threat of terrorism and the extremism — wherever it comes from — requires all countries to join their forces,” Medvedev said.
“We are ready to cooperate with the Islamic Republic of Iran to counter these threats,” he added.
His statement came after a suicide bomber killed 49 people in southeastern Iran on Sunday, including top commanders of the elite Revolutionary Guards.
The bombing targeted one of the Islamic republic’s most prestigious institutions in a hotbed region of Sunni insurgency against the Shiite Muslim regime.
Medvedev said he had learned of the attack with “indignation” and condemned “this new evildoing by extremists”.
Russia has itself seen a spate of militant attacks this summer in the predominantly Muslim North Caucasus, where the Russian government has been long struggling to put down a low-level Islamist insurgency.
Moscow has the strongest ties to Iran of any major world power and is seen as a crucial player on the international standoff over its nuclear programme.
Trend.az: Azerbaijan, Russia, Iran to discuss North-South railway project in Tehran
19.10.2009 10:56
Azerbaijan, Baku, Oct. 14 / Trend Capital E.Ismayilov /
Azerbaijani, Iranian and Russian working groups will meet in Tehran on Nov.3-4 under the North-South project, Azerbaijani State Railway Office Head Nadir Azmammadov said on Oct.14.
"At present, negotiations are underway. There are still no exact results and dates. But, the meeting of working groups is scheduled for Nov.1-4 in Tehran," Azmammadov said.
The North-South transport corridor envisages unified railway transportation from Europe to India and Southeast Asia via Russia, Azerbaijan and Iran. According to preliminary estimates, the project will cost over $400 million and much work should be done in Iran, which has no rail link to the border with Azerbaijan. Certain work worth about $35-40 million should be conducted in Azerbaijan.
The work to be conducted in Azerbaijan envisages constructing about 8.5 kilometers railway station to the Astara station (Azerbaijan), having a wheel pair change system, border and customs infrastructure. It is also necessary to build a border railway bridge. However, this project will be implemented on a parity basis with Iran.
It is forecasted goods transportation via this corridor will be 5 million tons per year in the first stage and further it is planned to increase to 10-15 million.
Sudan Tribune: Russian envoy to meet JEM rebels
Monday 19 October 2009 04:35.
October 18, 2009 (LONDON) — Russian special envoy to Sudan, Mikhail Margelov, would meet the leader of the rebel Justice and Equality Movement in a bid to establish contacts with all Darfur stakeholders.
The move came after the organization of a workshop in Moscow earlier this month to discuss ways to end the six-year conflict in Darfur attended by Sudan’s envoys from permanent members of UN Security Council, African Union, Arab League and European Union.
JEM Spokesperson Ahmed Hussein Adam confirmed to Sudan Tribune that the Russian envoy has asked to meet with JEM leader Dr. Khalil Ibrahim saying they would soon fix a date for the meeting.
"We received a demand from Mr. Maragelov and we welcome the move. In the upcoming days we will arrange a meeting with Dr. Khalil Ibrahim."
"We welcome this initiative because we believe Russia as a member in the UN Security Council has to listen to all the parties and not deal only with the government," he added.
Margelov was quoted by Russian state media in the closing session of the experts’ workshop as saying that a peace settlement in the largest country in Africa "depends on joint and coordinated efforts of all parties engaged in the conflict".
However, the rebel group had slammed the meeting saying they were not consulted and Moscow did not make any efforts to hear their point of view on the resolution of the conflict.
The permanent members of the UN Security Council committed themselves to support the efforts done by the mediation in Doha to end Darfur conflict. All the other permanent members including China met with rebel groups to listen to their point of view.
(ST)
Itar-Tass: Russia ready to make all effort to promote Middle East settlement
19.10.2009, 00.17
BEIRUT, October 19 (Itar-Tass) -- Russia “is ready to make all effort to promote the peace process between the Arabs and Israel, Russian special presidential envoy in the Middle East and Deputy Foreign Minister Alexander Saltanov said after the consultations in Damascus. Saltanov noted that he discussed “in detail and confidentially” with Syrian Foreign Minister Walid Mualem the situation in the region and prospects for resuming the peace talks.
“Russia and Syria share the position that mediating efforts should be intensified in order to give a fresh impetus to the Middle East settlement,” the high-ranking Russian diplomat said. According to Saltanov, his consultations in Damascus were also devoted “to further development and broadening of cooperation between two friendly countries in various spheres.”
On Monday, the Russian special presidential envoy will round off his visit, during which he visited Lebanon and Syria. In Beirut he will meet with speaker of the Lebanese parliament Nabih Berri and acting Prime Minister Fouad Siniora.
RIA: Russia's foreign minister to attend EU-Russia meeting
03:1819/10/2009
BRUSSELS, October 19 (RIA Novosti) - Russian Foreign Minister Sergei Lavrov will attend a meeting of the EU-Russia Permanent Partnership Council in Brussels on Monday, a ministry spokesman said.
Carl Bildt, the foreign minister of current EU president Sweden, EU foreign policy chief Javier Solana, and European Commissioner for External Relations and European Neighborhood Policy Benita Ferrero-Waldner will also attend the meeting.
The talks are expected to focus on the preparations for the EU-Russia summit, scheduled for November 18 in Stockholm, as well as on a new partnership and cooperation agreement between Russia and the European Union.
The current Russia-EU agreement expired in late 2007, but was automatically extended. In early October, the sixth round of talks on the new agreement took place in Brussels.
The previous Russia-EU summit took place on May 21-22 in Russia's Far Eastern city of Khabarovsk. Russia-EU summits are held twice a year - once in Russia and once in the country holding the European Union's rotating presidency.
The Foreign Ministry spokesman said Moscow is also expected to discuss a visa-free regime between Russia and the EU, adding it was one of the goals of the Russia-EU strategic cooperation.
The agenda of the talks will also include Russia-EU economic cooperation and a range of international issues, such as Medvedev's initiative to develop a European security treaty and Iran's nuclear problem.
Meetings of the EU-Russia Permanent Partnership Council are a key platform for discussions between Russia and the European Union.
A PPC meeting on environmental protection will take place in Moscow on November 10, and another meeting, to focus on freedom, security and justice, is scheduled for December 2 in Stockholm.
RIA: Energy projects to be discussed in Belgrade – Medvedev
06:4519/10/2009
MOSCOW, October 19 (RIA Novosti) - The implementation of joint Russian-Serbian energy projects is to be discussed among other issues in Belgrade, the Russian president said prior to his visit on Tuesday to Serbia's capital.
"During the upcoming talks, we expect to discuss in detail the plans to implement large-scale joint projects, including in the energy industry, as well as in the spheres of transport, cultural, humanitarian, scientific and technological cooperation," Dmitry Medvedev told a Serbian newspaper.
Last week, Russian energy giant Gazprom and Serbia's state gas company initialed an agreement to set up a joint venture to develop a Serbian underground gas depot. The agreement was part of a bilateral governmental deal on cooperation in the oil and gas sector sealed between the two countries in 2008.
"In other words, serious work is ahead to strengthen, through joint efforts, the foundation of our cooperation as well as to contribute to a fuller uncovering of its rich potential for the long term," Medvedev told Vecernje Novosti.
Medvedev also said Russian-Serbian relations are based on long-lasting traditions, adding that he hopes "further progress" will be made in developing interstate cooperation and that "the brotherly ties between the nations" will strengthen.
Serbian President Boris Tadic was quoted by national media on Saturday as saying Medvedev's visit to Belgrade will help deepen Russian-Serbian ties. Moscow supports Belgrade's view that Kosovo, which unilaterally declared its independence in February 2008, is an indivisible part of Serbia.
Medvedev's trip to Serbia, during which he will attend celebrations to mark the 65th anniversary of the liberation of Belgrade from Nazi forces, will be the first visit to the country by a Russian head of state since Vladimir Putin visited in 2001.
B92: Medvedev on Kosovo, cooperation
19 October 2009 | 09:26 | Source: Tanjug, Večernje novosti
MOSCOW -- Russian President Dmitry Medvedev, due to arrive in Belgrade tomorrow, says that he considers the visit to be very important.
The president told Belgrade daily Večernje Novosti in an interview that he counts on further development of cooperation between the two countries.
"Serious work is ahead to strengthen, through joint efforts, not only the foundation of our cooperation, but also to spur a better uncovering of its rich potential for the long term," Medvedev was quoted as saying.
Addressing the issue of Kosovo, where ethnic Albanians in February 2008 unilaterally declared secession that has been rejected both by Belgrade and Moscow, he told the newspaper that "no one must claim that the Kosovo issue has been solved, without Serbia having the last word".
"Russia is taking part in the solving of the Kosovo question according to a formula that has been harmonized with our Serb colleagues a long time ago: Belgrade comes up with initiatives, and we consistently support it. Considering the complicated nature of the problem, this approach is proving to be efficient," he continued.
"Despite the efforts by the protectors of Kosovo's independence, they will not manage to present it as an irreversible process, to close the issue. We believe that it must be proven step by step that, after all, there is alternative to legal arbitrariness," the president was quoted as saying.
He continued to state that "unfortunately, during the last decade, which has become critical in the history of solving the problem of Kosovo, many tragic mistakes were made, some of which were knowingly allowed to happen as part of a plan to introduce unilateral solutions to international practice."
Medvedev also spoke about his forthcoming visit to Serbia, to say that he expect plans to implement big joint energy, transportation, cultural, humanitarian, science and technology projects to be studied in detail.
"This is the first visit by a Russian president to Serbia after the country returned to the international arena as an independent, sovereign state. However, we are not building our relations from the beginning. We already have a very rich experience of cooperation based on centuries-long traditions and mutual attachment of our peoples. We are linked through common goals and mutual pragmatic interests."
Reminding that he would be arriving in Belgrade on the 65th anniversary of the city's WW2 liberation from Nazi German occupation, Medvedev said this was an event of great significance, "rich with common historic memories and joint pride at the courage of our fathers and grandfathers who won a victory over fascism."
RIA: No resolution of Kosovo issue without Serbia – Medvedev
02:1619/10/2009
MOSCOW, October 19 (RIA Novosti) - No one is entitled to settle the issue of Kosovo's independence without Serbia having its say, the Russian president said ahead of his Tuesday visit to Belgrade.
"Despite attempts by Kosovo independence defenders to present it as an irreversible process, [they] will not be able to close the issue. We believe it is necessary to prove, step by step, that there still is an alternative to legal arbitrariness," Dmitry Medvedev told a Serbian newspaper.
"And without Serbia's last word, no one can state that the Kosovo issue has been resolved," he told Vecernje Novosti.
Serbian President Boris Tadic was quoted by national media on Saturday as saying Medvedev's visit to Belgrade will help deepen Russian-Serbian ties. Moscow supports Belgrade's view that Kosovo is an indivisible part of Serbia.
Medvedev's trip to Serbia, during which he will attend celebrations to mark the 65th anniversary of the liberation of Belgrade from Nazi forces, will be the first visit to the country by a Russian head of state since Vladimir Putin visited in 2001.
Preparations for Russia President’s visit
Blic.rs: Medvedev arrives with hundred officials
Author: E. B. | 19.10.2009 - 08:55
The president of the Russian Federation Dmitri Medvedev is coming to Belgrade tomorrow together with about one hundred of associates, ministers and most significant business people. Their goal is to give boost to the signed gas arrangements.
The presidential plane is to land on Belgrade airport at about 11.35 CET while official greeting with national anthems shall take place in front of Serbia Palace in New Belgrade. Serbian Government led by the Prime Minister Mirko Cvetkovic shall wait to meet President Medvedev.
The Russian President shall first talk with his Serbian host President Boris Tadic alone with talks between delegations of two countries to follow. Six inter-state agreements are to be signed. Medvedev shall be accompanied by Russian Foreign Minister Sergei Lavrov, Minister for extraordinary situations Sergei Shoigy (he has already arrived in Belgrade), ‘Gazprom’ President Sergei Mueller, ‘Russian Railways’ Director Vladimir Jakunin, directors of ‘Moscow Bank’, ‘Lukoil’…
The two presidents shall address the journalists and after that go to the Cemetery of Liberators of Belgrade. There the ceremonial guard and veterans from the WWII shall be waited for them.
After lunch hosted by Serbia President, Dmitri Mdevedev is expected to appear in Serbia Parliament at about 16.00 CET and address the deputies. At the cocktail hosted by Parliament Speaker Slavica Djukic Dejanovic the deputies shall be given the opportunity to ask questions to President Medvedev.
The academy at ‘Sava Center’ begins at 18.00 CET at which Presidents of Serbia and Russia shall address the guests. After that the high Russian delegation shall be heading to Belgrade airport to fly back to Moscow.
Reuters: PREVIEW-Focus shifts to economy as Medvedev visits Serbia
Sun Oct 18, 2009 9:02pm IST
* Medvedev-Tadic talks focus on economy, 1 bln euro loan
* Kosovo not on the top of the agenda
By Aleksandar Vasovic and Gordana Filipovic
BELGRADE, Oct 18 (Reuters) - Russian President Dmitry Medvedev visits Serbia on Tuesday to discuss a promised one billion euro loan and aiming to strengthen Moscow's economic influence in the EU hopeful which already has an IMF deal.
Medvedev's one-day visit will aim to shift the focus from the two countries' traditional political ties, based on historic cultural and religious links, to more pressing economic issues.
Since 2003, Serbia has attracted almost $12 billion in foreign direct investments but Russia's contribution has been modest, with the country ranking 19th in the list of investors.
Belgrade asked Moscow for the 1 billion euro ($1.5 billion) loan in July, and aims to use about 350 million euros to cover its budget deficit in 2010 -- which it has agreed with the International Monetary Fund to curb -- with the rest for transport development.
Serbia has yet to find out the cost of the loan from Russia, although Prime Minister Mirko Cvetkovic has expressed optimism that the interest rate would be favourable.
"The Russian loan seems like a good deal; it looks better in some aspects than the one with the IMF," a government official told Reuters condition of anonymity. "We will be able to spend Russian money on jobs, to boost spending and local industry," he said.
Serbia must keep its budget deficit within 3.5 percent of GDP next year to comply with a 3 billion euro deal with the IMF. Belgrade will open talks with the IMF on Oct. 26 on further tranches of the loan, which it took during an economic crisis.
However, the ruling coalition of pro-Western parties and the Socialists, has made it clear that close ties with Russia would in no way hamper Serbia's goal of joining the European Union.
"(Russian) Foreign Minister Sergei Lavrov told us several times that Belgrade will be even more valuable as an ally if it joins the (EU) bloc," the government official said.
Serbia signed a Stabilisation and Association Accord with the EU last year, the first step towards membership. However, the Netherlands has blocked its implementation because of Belgrade's failure to arrest and hand over to the U.N. war crimes tribunal Bosnian Serb army commander Ratko Mladic.
SLAVIC MOTHERLAND
Medvedev will meet Serbian President Boris Tadic and other key officials plus top Serbian Orthodox clergy on Tuesday, and he will also address parliament.
Many Serbs still consider Russia their Orthodox Christian and Slavic motherland, a feeling revived after NATO's 1999 bombing to expel Serb forces from Kosovo.
"Russian backing was always of enormous value," Foreign Minister Vuk Jeremic said, adding that Medvedev's visit would reinforce "centuries-long friendship between Serbia and Russia".
Russia, a veto-wielding member of the U.N Security Council opposed the 2008 independence of Kosovo, Serbia's former southern province. But the issue is unlikely to dominate.
"Kosovo will likely not be on the top of the agenda as Russia has already done enough by not recognising it," said Zoran Dragisic, a lecturer with the Belgrade's School of National Security.
In 2003 Russia withdrew its peacekeeping contingent from the NATO force deployed to Kosovo in 1999, and has since shown no interest in restoring its military presence in the Balkans.
"That pullout indicated that Serbia is no longer in Russia's military focus and I expect such a Kremlin strategy will persist," Dragisic said. "The economy is Russian strongest weapon now."
FOCUS ON ENERGY
As Deputy Prime Minister, Medvedev led a Russian delegation to sign an energy deal with Serbia last year.
Under this deal, Gazprom (GAZP.MM: Quote, Profile, Research) said it would develop an arm of the South Stream pipeline, allowing Russia to bypass Ukraine via Turkey, Bulgaria and Serbia for piping gas to western Europe and to avoid persistent energy rows with Kiev.
"The development of the South Stream will make Serbia attractive for investors because of its stable energy supplies and reserves," Petar Skundric, Serbia's Energy Minister said in an interview with the Vecernje Novosti daily.
Russian investors are also considering building a gas-fuelled power plant and a 200 million euro-worth improvement of heat-generating plants in Belgrade, Skundric said.
(Editing by David Stamp)
B92: Dačić on Medvedev's "historic visit"
18 October 2009 | 15:30 | Source: B92, Tanjug
BELGRADE -- Ivica Dačić said in Belgrade on Sunday that Russian President Dmitry Medvedev's visit will be important for political, economic and police cooperation.
The Serbian first deputy premier and interior minister spoke two days ahead of Medvedev's arrival here, to say that the political aspect of the visit is very important because Serbia and Russia have a number of topics and subjects where their positions coincide, including on Kosovo.
"This above all concerns [our] territorial integrity and what we are doing internationally to dispute the unilaterally declared independence of Kosovo and Metohija," Dačić told reporters at the opening of an exhibition to mark EU Anti-Trafficking Day.
Dačić, who is at the helm of the ruling Socialists (SPS), today also spoke about local elections in Belgrade's Voždovac municipality, scheduled for December 6, to tell his fellow Socialists that they must present themselves to the citizens "in the right way and work in the citizens' interest, because they will work in the interest of the party in that way".
SPS – founded and led by Slobodan Milošević until his death – was Serbia's ruling party throughout the 1990's. They returned to government last year after eight years in the opposition.
The party meeting in Voždovac was organized to mark "the 65th anniversary of the WW2 liberation of Belgrade, the 19th anniversary of the founding of the SPS branch in that municipality, and the start of the election campaign".
According to Dačić, the party went through "different periods in the past years", and added that it "remains dedicated to its fundamental principles". He listed those principles as "freedom, equality and social justice".
The minister also reminded of the principles that the current ruling coalition was based on, and said those were state and national interests, EU integration, economic development, "but along with social justice", and fight against crime and corruption.
"Those are the fundamental principles to build a modern, democratic, whole and united Serbia, that will be an EU member, but that will guard her state and national interests, and that will be economically developed, but socially just country."
High ranking SPS official and Belgrade Assembly President Aleksandar Antić also spoke to say that the party will "always be reminding of the value of the anti-fascist tradition", adding that "everyone in Serbia should join those forces who are marking and highlighting those values".
Itar-Tass: Medvedev to hold meeting on state-of-the-nation address preps
19.10.2009, 01.35
MOSCOW, October 19 (Itar-Tass) -- Russian President Dmitry Medvedev will hold a meeting with the government and the presidential administration devoted to the preparations to an annual state-of-the-nation address to the Federal Assembly on Monday, the Kremlin press service told Itar-Tass.
Medvedev reported about this meeting under preparation last week. “As for the key ideas (of the national address), I intend to meet with the administration and officials of other agencies, as well as the government, and we will just discuss those proposals that we have, what may be included and what have already been achieved by the administration together with the government,” the president said. “This work is going on, and on the whole I am satisfied with its progress; I believe that the idea to hold this discussion prior to the Address turned out to be constructive,” he added.
Speaking on the discussion, the president meant that the Kremlin is studying actively proposals made by political parties, business community and civil society. “The opposition always offers interesting ideas, that is the way the opposition is, and the ruling party passed to me a flash card with its proposals (during a meeting in the previous week),” he said. “Many proposals are coming from parties and other public organisations, business and common people; all of them are coming in the administration. I am just looking personally through many proposals, when examining proposals coming to my site or during the information exchange in the live journal,” the president noted.
“The most important thing now is certainly to select those ideas that can be included in a National Address, as the National Address is not a document without size, even those proposals that can be realized will not certainly be included in the National Address, but we will obligatorily take them into account in the future,” Medvedev said.
Meanwhile, the date of a presidential state-of-the-nation address is not announced yet. “The work is in full swing, but it is premature to speak about the date of a national address,” spokeswoman for the Russian president Natalia Timakova said on Thursday.
The annual presidential state-of-the-nation address to the Federal Assembly is not only the right, but also the duty of the president, under the Russian Constitution. The national address spells out president’s position on the major trends of home and foreign policy in the current year and in the near future, as well as informs about the important decisions taken by the president under his constitutional powers. The national address is the major program document of the Russian authorities and gives to the society proper guidelines regarding the problems being prioritised, according to the president, and their solution. The document is usually devoted to the domestic situation in the country by two-thirds and to international problems – by one-third.
Dmitry Medvedev has made his first presidential state-of-the-nation address to the Federal Assembly on November 5, 2008. The 2009 national address will be the second for Medvedev and the 16th one in the modern Russian history.
The presidential state-of-the-nation address to the Federal Assembly is pronounced at a joint meeting of both houses of Russian parliament and is not discussed. The address lasts for about an hour. Members of the government, the chairmen of the Constitutional, Supreme and High Arbitration Courts, the Prosecutor General, the chairman of the Central Elections Commission, chairman of the Audit Chamber, members of the State Council, the Public Chamber and the heads of the major confessions are also invited in the Kremlin.
Itar-Tass: Anti-corruption struggle in Russia to be long – Medvedev
19.10.2009, 06.53
MOSCOW, October 19 (Itar-Tass) -- The anti-corruption struggle should not turn into routine and a short-lived campaign, Russian President Dmitry Medvedev said in an interview with the Serbian newspaper Vecernje Novosti on Sunday. He urged not to expect quick results.
“The political will of the country’s leadership is quite determined,” Medvedev noted. “The anti-corruption struggle should not turn into routine or boil down to a short-lived campaign,” the president believes. “The result will not achieved soon, but the most important thing is to fulfil consistently all that is planned, not to retreat and to create the atmosphere of antagonism against corruption in the society,” the president pointed out.
Medvedev believes that one of the main barriers for the anti-corruption struggle in Russia is “technological underdevelopment.” “The development of the information society, a higher quality and ‘transparency’ of so-called public services, many of which should be provided in the electronic form, can change the situation not least of all,” the president elaboarated. “The accessibility of information about the operation of state agencies for people, the minimization of the direct communication between an official and a citizen – hamper ‘the chain’ of a corruption conspiracy,” he noted.
“Certainly, it is not the only way of the anti-corruption struggle,” Medvedev added, recalling that the major measures were formulated in the National Anti-Corruption Plan. “The emphasis is placed on preventive measures, and we have already created the necessary legal framework in this issue, particularly on a basis of the best international experience,” he said.
“I believe that all these measures will certainly bring some results, including those (measures) recently taken for the control over income and property declarations of public servants,” the president said.
|Monday 19 October 2009 (01 Dhul Qa`dah 1430) |
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Arab News: Russian stand on Gaza lauded
Muhammad Humaidan I Arab News
JEDDAH: The director of the Saudi Foreign Ministry’s branch in the Western Region Muhammad Al-Tayyib has commended the Russians for supporting the Goldstone Report on the Israeli military offensive in Gaza last winter, which was approved by UN Human Rights Council (UNHRC) on Friday.
Al-Tayyib made his observation at the opening of a forum the Saudi-Russian Business Council, held at the headquarters of the Jeddah Chamber of Commerce and Industry (JCCI) on Sunday.
“We people in Saudi Arabia and the Arab World in general appreciate the Russian stance with regard to the rights of Arabs and its support for the Palestinian struggle in regaining their legitimate rights and to create an independent state with Jerusalem as its capital,” said Al-Tayyib.
“I should, on this occasion, laud the vote by Russia in UNHRC supporting the report that condemns Israel for committing crimes in its latest war in the Gaza Strip.”
Emphasizing the growing economic relations between Saudi Arabia and Russia, Al-Tayyib said businessmen of both countries have ample opportunities to initiate more joint ventures.
Dignitaries including the Russian Federation’s Ambassador and Extraordinary Commissioner in Saudi Arabia Victor Kodravetsev, Deputy Director of Investment Management and Cooperation Tatania Gavliva, Permanent Representative of Russian Federation in the Muslim world Kamil Ishakov and other members of the Russian business delegation attended the function.
The delegation members in their speeches stressed the need to step up cooperation between the two countries in all areas.
More than 100 Russian businessmen and industrialists demanded their Saudi counterparts to cooperate in opening joint markets and setting up huge projects.
They also expressed their readiness to bring Russian economic products and new opportunities to Jeddah. Several agreements and protocols of cooperation between businessmen of both countries were also signed in the forum.
They also discussed possible ventures in areas such as energy, metal products, petrochemical industries, environment protection and nanotechnology, in addition to the banking, investment, agriculture and water management sectors.
The balance of trade between the two countries stood at SR3.89 billion last year according to figures supplied by the JCCI. While petrochemicals were the major item of Saudi export to Russia, barley products, iron and steel, electrical appliances also topped the list of Russian products imported to the Kingdom.
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Haaretz: [pic]Russians deal Lieberman 'slap' by endorsing Goldstone
By Barak Ravid, Haaretz Correspondent
Israel relayed a sharply worded protest to the Russian government following Russia's vote in favor of adopting the Goldstone report at the Human Rights Council in Geneva Friday, according to senior Foreign Ministry officials in Jerusalem.
Foreign Minister Avigdor Lieberman suffered a personal blow by the Russian vote, which went against the promises he received from his Russian counterpart, Sergey Lavrov, days prior to the vote at the United Nations body.
Russian officials clarified that Moscow would oppose any discussion of the Goldstone report by the UN Security Council, Israel Radio reported on Sunday night.
Russia's envoy to Israel met over the weekend with Foreign Ministry official Pinchas Avivi to hand him a letter of clarification from Lavrov about Russia's vote at the Human Rights Council, according to Israel Radio.
Sources at the Foreign Ministry, however, said that the Russians' behavior was tantamount to a "slap in the face for Lieberman," whose policy has been based on a "strategic dialogue" with Russia.
Notwithstanding his disappointment, Lieberman was careful not to attack the government in Moscow publicly. Other countries who were critical of Israel, such as Sweden, Norway, Turkey and China, were slammed by Lieberman.
However, Lieberman opted to keep a low profile, as he did earlier this year when Lavrov met with senior figures from Hamas. His office also refused to comment on this report.
Following the vote in Geneva Friday, the Russian government sought to appease Israel and Lavrov sent a message to Lieberman clarifying the Russian stance in the vote. However, a source in the Foreign Ministry said that Lieberman refused to accept the Russian's message.
In the end the message was relayed by the Russian ambassador to Israel to the deputy director for Euro-Asian affairs at the Foreign Ministry, Pini Avivi.
During the meeting with the Russian ambassador, Avivi relayed Israel's protest on its vote with regards to the Goldstone report. He said that "you could have joined the group of countries who voted against or abstained," adding that "we were very hurt by your behavior, especially following the assurances you had given us on the matter."
The Russian ambassador said that he had been asked by Lavrov to relay a series of messages regarding the Russian vote. He said that Russia voted in favor because it had no choice, and went as far as to blame the European Union.
"We sought to moderate the wording of the resolution but we failed because of the stance of Western countries," the Russian ambassador claimed.
He also said that even though Russia supported the resolution on the adoption of the Goldstone report, it opposes the transfer of the matter to the Security Council or the commencement of legal action at the International Criminal Court at The Hague. The Russian diplomat added that Moscow believes that "Israel should investigate itself," and reiterated that the most important things is for "the peace process not to be damaged."
The Russian ambassador also charged that the Goldstone report contains statements that "are unsubstantiated and are subjective."
Senior Foreign Ministry officials said that Lieberman had been personally insulted by the Russian vote. Since the release of the Goldstone report a month ago, Lieberman spoke some 10 times with Lavrov and asked that Moscow not support the report.
Prime Minister Benjamin Netanyahu also spoke prior to the vote with President Dmitry Medvedev.
Senior Israeli officials said that other Russian figures relayed to Israel positive messages on the issue, and had even made promises on not voting in favor of the report.
Oct 19, 2009 1:20 | Updated Oct 19, 2009 7:20
The Jerusalen Post: 'UNHRC vote may affect Moscow parley'
By HERB KEINON AND TOVAH LAZAROFF
Russia's long-desired and oft-delayed Moscow conference on the Middle East may be in jeopardy as a result of Friday's endorsement by the UN Human Rights Council of the Goldstone Commission report accusing Israel of war crimes, government officials said on Sunday.
Russia, along with India and China, all voted against Israel at Friday's meeting that sent the report to the UN General Assembly.
One official said the Moscow conference may be in peril now, not because Israel is trying to punish Russia, but rather because the diplomatic process - as Prime Minister Binyamin Netanyahu warned - would be harmed as a result of the Palestinian Authority's pushing the Goldstone Report forward.
"This is not a threat, just a statement of fact," the official said.
Following its vote on Friday, Moscow delivered a letter directly from Foreign Minister Sergei Lavrov saying that while it voted for the resolution, Russia opposed referring the issue to the Security Council, from where it could theoretically be sent to the International Criminal Court.
Deputy Foreign Minister Danny Ayalon, when asked on Sunday about the Moscow conference idea, told The Jerusalem Post that the Russian vote "does not help promote it."
Russia has been trying for nearly two years to put together a Middle East conference as a follow up to the November 2007 Annapolis conference, but so far to no avail. Israel had up to now not objected, but just wanted to ensure that the timing was right and that the meeting would be more than just a photo opportunity.
The Middle East Quartet, made up of the US, Russia, the EU and the UN, reaffirmed at its meeting last month its call for a conference in Moscow.
A spokesman for Foreign Minister Avigdor Lieberman, meanwhile, would not comment when asked whether Lieberman would protest the Russia or Indian votes in a matter similar to the way he expressed displeasure on Saturday night for the Chinese vote, by not attending an event put on by the Chinese Embassy to mark 60 years of Communist rule.
The spokesman would not verify that Lieberman boycotted the event, only confirming that Lieberman had not shown up, and that he was indeed angry at Beijing's vote.
Ayalon, speaking of the Chinese and Russian votes, said: "This is very disappointing. We are going to check this through diplomatic channels with these countries. Russia and China are very serious countries which we respect and appreciate. We do not understand why they would vote against their own interests."
Israel had in recent days expressed to the Russians the belief that if Israel could be taken to task for defending itself against terrorists, the same could happen to Russia, which faces its own terrorist threats.
A number of ministers voiced anger and frustration before Sunday's cabinet meeting both at the vote and at the Palestinian Authority for pushing the Goldstone Report forward.
Finance Minister Yuval Steinitz told reporters that Friday's vote was part of an effort, "to a certain degree, anti-Semitic, to say that what is permitted for the US in Afghanistan, for Russia in Chechnya, and also for Turkey in northern Iraq is forbidden for Israel in defending itself from Gaza.
"We will not cooperate with this. Jews will not again be led like lambs to slaughter."
Steinitz said the Jewish state had the "right and obligation to defend its citizens, no less than the US, Russia or Turkey."
He also said that if the PA continued to attack Israel in various international forums, then Israel should think twice about continue calling at these same forums for donors to continue supporting the PA.
"We cannot continue to put forward the other cheek," he said.
Interior Minister Eli Yishai went even further, saying "it is impossible to continue negotiations, when on one side they [the PA] are talking, and on the other hand they are denying our right to defend ourselves."
In contrast, Defense Minister Ehud Barak released a statement on Sunday night saying that Israel was a strong, sovereign, developed state whose strengths far outweighed its weaknesses, and which would continue to pursue negotiations with the Palestinians.
"We have a supreme responsibility to work on the basis of our strength to achieve peace," he said. "And first of all, to join hands with the American administration, to put together an agreement to restart negotiations as soon as possible, even if the conditions are not perfect and we are asked to make difficult decisions."
Senior officials in the Foreign Ministry, meanwhile, took a very "cup is half full" attitude when weighing the results of Friday's vote, saying it was significant and important that with the exception of Russia, not one European country voted for the resolution.
Instead, Hungary, Italy, the Netherlands, Slovakia and Ukraine joined the US in supporting Israel, while Belgium, Bosnia and Herzegovina, Norway and Slovenia abstained, and Britain and France did not vote.
Foreign Ministry spokesman Yigal Palmor said there was a moral victory in that the European, democratic countries didn't vote for the motion, and that it passed on the "strength of such beacons of human rights as Djibouti, Saudi Arabia and Cuba."
Ministry officials noted that in the "twisted logic" inside the UN, an abstention is considered to be a vote for Israel, while an actual vote for Israel is usually the domain of only the US, the Marshall Islands, Micronesia, and - recently - Canada.
"This vote broke traditional patterns," one official said, even noting positively that Britain and France were present, but did not vote - a sign, he said, that they did not view the whole exercise as a fair one.
Nevertheless, Ayalon termed the French and British approach as "puzzling."
"I think it would have been better for them to make a clear statement," he said.
Regarding the Chinese, Indian and Russian votes, one official said that these countries generally voted against Israel in international forums, explaining to Israel privately afterward that this was the necessary "lip service" they must pay to the Arab bloc in return for having ties and strong military and diplomatic relations with Israel.
Regarding the negative votes of all Latin American countries on the Human Rights Council - with the exception of Mexico and Uruguay - one official said that this reflected clearly and accurately the left-wing orientation of South and Central America.
Argentina, Bolivia, Brazil, Chile, Cuba and Nicaragua all voted against Israel.
Ayalon, meanwhile, said that Israel was in a "very uphill battle," and "will fight tooth and nail to ensure that all decent countries stay together. Although though they [Arab countries and their supporters] have the numbers, they certainly do not have the plurality of all decent countries."
ABC.az: EurAsEC Anti-Crisis Fund to hold first session in an upcoming month
Baku, Fineko/abc.az. The Eurasian Economic Community (EurAsEC) member CIS countries keep on preparing for activation of the Anti-Crisis Fund they are forming.
A member of Eurasian Development Bank’s Board, Vladimir Yasinsky says that the member countries are finishing legalization of the agreements on Fund’s activities.
“Russia is completing procedures for transfer of required finances to the Fund that can hold its first session in the near month,” Yasinsky said.
EDB was appointed the managing company of the $10 bn Fund, including $7.5 bn to be provided by Russia, $1 bn by Kazakhstan and the rest by other participating countries.
Bloomberg: Libya to Buy $1 Billion of Russian Combat Planes, Interfax Says
By Brad Cook
Oct. 19 (Bloomberg) -- Libya plans to buy more than $1 billion of Russian combat planes from Russia, including at least 16 Sukhoi fighter jets, Interfax reported, citing an unidentified Russian official.
The contracts will be signed either this year or in the first part of 2010, the news service cited the official as saying.
Last Updated: October 19, 2009 01:20 EDT
Domain-: Russia allotted Haripur as site for nuclear reactor park news [pic]19 October 2009
New Delhi: Russian state-owned nuclear power equipment and service export monopoly, Atomstroyexport, has been awarded the contract to build India's first nuclear power station at Haripur in West Bengal. Senior officials of the Nuclear Power Corporation of India Ltd said that civil construction activities may be expected to commence by 2010.
Haripur is located in the East Midnapore district of West Bengal and atleast two 1,000 MW capacity reactors are expected to be built here. Construction, according to NPC officials is expected to be complete in five years. They also said that depending on site potential an additional two to four reactors may come up at Haripur.
The government's decision to allot Haripur to Russia has now been followed up with a decision to allot two sites to US companies -one in Gujarat and another in Andhra Pradesh.
French nuclear power major Areva has already been allotted the Jaitapur site in western Maharashtra where it will put up reactors of 1,600 MW capacity.
Atomstroyexport is already helping in the construction of two 1,000 MW reactors at Kudankulam in Tamil Nadu, which are in advanced stages of construction.
NPC officials have said that they consider Haripur to be a good site because it met all technical criteria for selection and also because it had a relatively low population density.
India currently has 17 operating nuclear reactors with an installed capacity of a little over 4,100mw nuclear electricity, with six reactors under construction. These include the 500mw prototype fast breeder reactor.
NPC hopes to add 6,000 MW to 8,000 MW of installed nuclear electricity capacity through these four new sites between 2015 and 2016.
: S Korea, Russia to jointly review cause of satellite launch failure
2009-10-19 13:37 BJT
SEOUL, Oct. 19 (Xinhua) -- South Korean and Russian officials will meet to determine causes of a failure in sending a satellite, carried by a jointly developed space rocket, into the target orbit in August, according to local media.
The failure review board will meet in Moscow on Oct. 29, the Ministry of Education, Science and Technology said on Monday.
South Korea launched its first space rocket, the Korea Space Launch Vehicle-1 (KSLV-1), on Aug. 25, but the satellite failed to enter its target orbit after successfully separating from its carrier rocket.
Local media reported that during the 10-minute flight, the space rocket underwent brisk two-step separations, and the satellite it carried also ignited and got off the second stage as planned. However, the satellite separation was made 36 km higher than its target altitude.
Experts later found that one of the two firings did not separate from the top of the second stage rocket after launching from South Korea's Naro Space Center.
Monday, Oct. 19, 2009
SENTAKU MAGAZINE
The Japan Times Online: Kremlin cajoling Hatoyama
Russia seems to be stepping up efforts to build closer ties with Japan through cracks in Tokyo's alliance with the United States, even as it tries to resolve the thorny Northern Territories issue on terms favorable to Moscow.
Japan is in danger of playing right into the hands of Russia unless the new government of Prime Minister Yukio Hatoyama and his Democratic Party of Japan establish firm diplomatic policies toward the colossal neighbor.
Shock waves spread to Washington after The New York Times on Aug. 27 published an article written by Hatoyama, who at the time was leading the DPJ to a general election victory. His article was somewhat critical of so-called American-led market fundamentalism and hinted that Japan should be less reliant on the U.S. and work closer with its Asian neighbors.
On Sept. 3, only three days after the general election and before he was officially named prime minister, Hatoyama was visited by two ambassadors: One, understandably, was John V. Roos of the U.S., and the other, somewhat surprisingly, was Mikhail M. Bely of Russia.
Russia's intention in taking full advantage of the DPJ's foreign policy shortfall initially was apparent behind Bely's praise of Hatoyama for the latter's "foresight" with regard to the beginning of a multipolar world.
Ever since the Soviet days, Russia's policy toward Japan has been based on the principle of separating political issues from economic matters. While seeking Japanese economic cooperation, Moscow has refused to budge an inch on the most controversial political subject: Japan's demand for the return of four islands off the coast of Hokkaido, which have been under Russian occupation since the closing days of World War II.
More often than not, Moscow showed some signs of making concessions on the territorial dispute while asking for economic cooperation from Japan, but once an economic deal appeared imminent, Japan ended up looking at the short end of the stick as Russia returned to an uncompromising stance.
As recently as last May, when Prime Minister Vladimir Putin came to Tokyo, he successfully signed a nuclear energy cooperation agreement with his Japanese counterpart. But upon his return to Moscow, Russia unleashed a broadside against Tokyo's policy toward Moscow.
When Ambassador Masaharu Kono presented his credentials to Putin late in May, the latter bitterly attacked a newly amended Japanese law that labeled the four northern islands as an integral part of Japan. In July, Putin suspended shipments of humanitarian aid goods from Japan to those living on some of the islands. Then, in August, Sergei M. Mironov, speaker of the Upper House of the Russian Parliament, visited the islands to impress Japan with Russia's sovereignty claim.
With Hatoyama now at the helm of government, it appears most likely that Russia will concentrate its tactics on the prime minister himself. One reason is that no politician in Japan has a closer relationship with Russia than he does. In 1956, his grandfather, Ichiro, who was prime minister at the time, signed the Japan-Soviet Joint Declaration providing for the restoration of bilateral diplomatic relations. Moreover, the current prime minister is said to have close personal ties with important figures like Sergey Y. Naryshkin, chief of staff of the Russian government, and Moscow Mayor Yury Luzhkov. Hatoyama's son, Kiichiro, lives in Moscow with his family, studying at the University of Moscow.
All of these factors provide the Russian government with easy access to Hatoyama.
Another factor prompting Moscow to exert greater influence on the new Japanese prime minister is the Hatoyama government's fundamental posture of drafting basic diplomatic principles without relying on bureaucrats. Since the DPJ's election campaign manifesto makes little mention of the territorial dispute or other matters related to Russia, Hatoyama is in a position to exercise a free hand. This means that Moscow may have to deal only with Hatoyama, rather than, as in the past, with Foreign Ministry bureaucrats and ruling party politicians.
The recent tough stand taken by Russia toward Japan is also viewed against the background of what Moscow regards as its success in getting U.S. President Barack Obama to abandon the plan to build a missile defense system in Eastern Europe. Russian military experts have said that Moscow's threat to deploy missiles in the Russian exclave of Kaliningrad played a role in persuading Obama to back off.
One Russian diplomatic source said that, on the strength of winning concessions from the U.S., Russia would adopt even a tougher stand than in the past against Japan. This could be interpreted as meaning that Moscow will press Hatoyama to agree to the return of only two of the four disputed islands — a proposal that Japan has steadfastly rejected.
It appears unlikely, however, that Moscow will play up the controversial territorial issue in its early dealings with Hatoyama. A more likely scenario would be to commend the new Japanese prime minister for his pro-Russian stance as an initial step in driving a wedge between Japan and the U.S. For that purpose, Russia will probably campaign for creating a multilateral security arrangement in Asia, as it has done in Europe. Hatoyama's pet theme of establishing an "East Asian Community" would be a perfect fit for such a scheme.
Russia has already begun its approach to Hatoyama and his government, as evidenced by the prompt call on the prime minister by Ambassador Bely. Following their meeting, Andrei Nesterenko, spokesman for the Russian Foreign Ministry, told reporters that Moscow hopes that Hatoyama "will make the right decision like his grandfather."
President Dmitry Medvedev, too, said bilateral problems could be resolved only if both sides show readiness to compromise. This is interpreted as a suggestion that Japan should agree to the return of only two of the four disputed islands in the spirit of the joint declaration signed by Hatoyama's grandfather.
With Kremlin having started its cajole-Hatoyama campaign, the DPJ now faces the urgent task of clarifying its Russia policy if only to prevent Japan from playing right into the hands of Moscow.
This is an abridged translation of an article from the October issue of Sentaku, a monthly magazine covering Japanese political, social and economic scenes.
RFERL: Russian Black Sea Fleet Objects To Ukrainian Checks
October 18, 2009
KYIV -- Russian Black Sea Fleet commanders have raised objections to spot checks of their military vehicles by Ukrainian traffic police, RFE/RL's Ukrainian Service reports.
After two unsanctioned convoys carrying missiles drove through Sevastopol this summer, Ukrainian authorities began checking Russian naval convoys for proper documentation.
According to Ukrainian-Russian agreements, Ukrainian authorities must be notified of all movements and maneuvers by the Russian Black Sea Fleet and show documents allowing permission for such movements.
Military sources told RFE/RL that the Russians have once again recently moved a convoy of equipment without proper permission from Ukrainian authorities.
In recent days the Russian fleet has built a large tent camp between two villages near Sevastopol. Ukrainian military sources say military equipment is being transported to this camp at night.
The Russian Black Sea Fleet has reportedly moved 12 of its missile systems to the newly built tent camp.
Bloomberg: Hermitage Asks Russia to Investigate $381 Million Tax Refunds
By Alex Nicholson and Denis Maternovsky
Oct. 19 (Bloomberg) -- Hermitage Capital Management, the $1 billion U.K. hedge-fund firm run by William Browder, is asking Russian prosecutors and government officials to probe a string of what it says are “fraudulent” tax refunds.
The Russian authorities should conduct an investigation into the “theft” of as much as 11.2 billion rubles ($381 million) of taxes paid to the Russian budget, Hermitage lawyers wrote in an Oct. 13 letter to Russian government agencies, including the Audit Chamber and Prosecutor General’s Office, as well as to news organizations. The money has been stolen by a “criminal group” comprising Russian businessmen and state officials since November 2006, according to the letter.
Hermitage, founded in 1996, was once the largest foreign owner of Russian stock. Browder, 45, has been barred from the country since 2005 for threatening “the security of the state, public order or public health.” The Interior Ministry said Oct. 9 that it is seeking Browder’s arrest abroad on charges that he evaded taxes worth more than 500 million rubles.
The charges are “fabricated” and a response to Hermitage implicating “certain Interior Ministry officials” in the theft of budget money, the fund, which posted a video on YouTube presenting Browder’s position, said on Oct. 9.
In an earlier refund case, Hermitage lawyers alleged that a complex series of transactions and legal cases were used to siphon a 5.4 billion-ruble refund in the second half of 2007, on taxes Hermitage had paid.
No Comment
“Hermitage has discovered that those involved in the complex fraud against them may also be behind earlier, additional, large-scale frauds that resulted in a further 5.8 billion-ruble theft from the Russian Treasury,” bringing total losses of the Russian budget to 11.2 billion rubles, Brown Rudnick LLP lawyer Neil Micklethwaite wrote in the letter.
Spokesmen for the Audit Chamber, central bank, Tax Service and Finance Ministry, which were sent the letter last week, declined to comment when reached by Bloomberg News on Oct. 16. Calls to their offices yesterday weren’t answered.
The case involved filing “fraudulent tax refund requests,” which, following approval by Moscow tax authorities, were paid into Universal Savings Bank, a Moscow-based commercial lender which filed for voluntary liquidation in June 2008, Micklethwaite wrote in the letter.
To contact the reporters on this story: Alexander Nicholson in Moscow at anicholson6@; Denis Maternovsky in Moscow at dmaternovsky@
Last Updated: October 18, 2009 18:59 EDT
The Washington Post: Investment firm dares to cry corruption in Russia
British company outlines tax fraud's many accomplices
By Philip P. Pan
Monday, October 19, 2009
MOSCOW -- Hermitage Capital Management, once the largest foreign investor in the Russian stock market, is escalating its campaign to force the Kremlin to punish officials suspected of stealing $230 million from the government last year, saying in a new complaint that the same people have bilked the Russian treasury out of another $230 million.
The document, delivered Friday to Sergei Stepashin, head of the state audit authority, bolsters evidence previously presented by the London-based firm implicating a host of police officials, bankers, judges and lawyers in a massive fraud remarkable even by standards in Russia, where official corruption is widespread.
Businesses here rarely go public with such specific allegations of corruption for fear of angering high-level officials and closing off commercial opportunities. But Hermitage has mounted an unusually stubborn campaign to shame the Kremlin into taking action, releasing YouTube videos in English and Russian this month that have been viewed more than 50,000 times. It has also obtained subpoenas in New York seeking to follow the trail of the stolen funds through Western banks.
Its latest complaint accuses several bureaucrats in two Moscow tax agencies of involvement in the crime and lists more than 30 suspicious tax refunds issued by the agencies between 2006 and 2008, as well as the account numbers of the recipients.
Hermitage's U.S.-born chief executive, William F. Browder, was expelled from Russia in 2005, and the firm sold its Russian assets and relocated to London soon afterward. But criminals later seized control of its Russian holding companies and used them to obtain a fraudulent tax refund of $230 million, Hermitage says.
When the firm reported the scheme, the authorities ignored its complaint and went after its lawyers, several of whom fled the country. One, an accounting specialist named Sergei Magnitsky, was arrested and is awaiting trial on what his defenders say is a trumped-up tax-evasion case. Russia's Interior Ministry has also said it wants to pursue charges against Browder.
The ministry has acknowledged the $230 million theft, but it assigned officials implicated by Hermitage to handle the case and has prosecuted only one suspect, a sawmill employee whose name appeared on some of the fraudulent documents.
In the latest complaint, which Hermitage provided to reporters, the firm says two subsidiaries of the well-known Russian investment firm Renaissance obtained nearly $110 million in fraudulent tax refunds in 2006 and lists eight other bank accounts that received $120 million more in suspicious refunds. Renaissance has denied any knowledge of or involvement in the alleged fraud, saying it had sold the companies.
The complaint also identifies 10 tax officials in Moscow whose names appear in documents approving or covering up the transfers. Reached by phone, one of the key officials, Olga Tzyimai, a department chief in Moscow Tax Authority No. 28, declined to comment and referred questions to the agency's press service, which did not respond to questions.
Telegraph.co.uk: Russia jails sawmill foreman for largest 'tax fraud' in country's history
Russian authorities have attempted to draw a veil over the largest alleged tax fraud in the country's history by convicting a sawmill foreman of the vastly complex financial crime and sentencing him to five years in jail.
By Philip Aldrick
Published: 7:54PM BST 18 Oct 2009
Viktor Markelov has pleaded guilty to "fraud by prior collusion by a group of persons and in an especially large amount" in a Moscow court, after the case was brought to the authorities' attention by Hermitage Capital Management, the hedge fund battling to expose corporate corruption in Russia.
According to the verdict, Mr Markelov, 42, "a foreman for deliveries of lumber from sawmill DOZ-160", used three former Hermitage subsidiaries to reclaim RUB5.41bn (£106m) of capital gains taxes paid by the hedge fund in a highly complex fraud. He will serve five years "in a correctional colony ... with no fine". There is no mention of any attempt to recover the lost taxes in the verdict or pursue other conspirators.
Mr Markelov's sentence was reduced from 10 years after the court took "into consideration personal information". It omitted to mention that he had previously been sentenced to two-and-a-half years for manslaughter.
Hermitage, the biggest foreign investor in the Russian stock market until 2006, has claimed that the sophisticated fraud could only have been committed with the collusion of senior figures in the nation's law enforcement agencies and tax offices.
Bill Browder, the founder of Hermitage, has stepped up his campaign against Russian corruption by posting his allegations on YouTube.
NY Times: For Potential Owner, a Background Check Worthy of the K.G.B.
By RICHARD SANDOMIR
Published: October 18, 2009
The roster of N.B.A. owners features a United States senator, a shopping-mall magnate, an Internet entrepreneur, a chemist, a cruise-ship operator and a founder of Amway. Will a billionaire Russian oligarch be next?
Mikhail D. Prokhorov would be not only the first Russian oligarch to own a major American sports team but also the first non-North American to buy a controlling stake in one since Hiroshi Yamauchi, the president of Nintendo, acquired the Seattle Mariners in 1992.
Prokhorov reached an agreement last month with the Nets’ principal owner, Bruce C. Ratner, to pay $200 million for 80 percent of the team and 45 percent of the proposed arena in Brooklyn that is the showpiece of Ratner’s Atlantic Yards development.
But to complete the deal, Prokhorov will have to win the approval of at least 23 of the N.B.A.’s 30 owners, which may not be easy, even for a tycoon who capitalized on Russia’s shift of state enterprises to private ownership in the 1990s. On Wednesday, he will try to make a positive impression on some of the owners during a meeting of the league’s advisory and finance committee in Manhattan.
Like any prospective owner, Prokhorov will be investigated by the N.B.A. and a security firm that specializes in risk management. They will try to ascertain his net worth, debts, character, associates, personal history and integrity. The process is designed to rule out inappropriate buyers who lack financial clout or present public-relations risks to the league.
Commissioner David Stern, who has led the league’s efforts to export its brand for decades, said, “We have a very extensive, stringent, some would say, invasive, but I wouldn’t, process for vetting the character and financial capacity of all owners.” With Prokhorov, he added, “We may have to look wider at our sources, but it’s the same route you travel, just a little longer.”
But experts in the oligarchy and corporate risk-management said it would not be easy because public records from Prokhorov’s world are scarce or incomplete, Russian bank records are difficult to examine, and news media reports are not always reliable.
Mike Ackerman, a former C.I.A. senior operations officer who is the president of the Ackerman Group, a security firm, said the league would have to accept a certain amount of ambiguity in order to approve Prokhorov.
“When we vet Russian joint-venture partners for our clients, I tell them there is no black and white in Russia, it’s all gray,” he said. “Information can be had, but you have to be prepared to accept the grayness.”
Russian oligarchs are an unusual group of capitalists by Western standards.
David E. Hoffman, the author of “The Oligarchs: Wealth and Power in the New Russia,” said that men like Prokhorov emerged from a business climate that had “no rule of law, a lot of shadiness, a lot of violence and coercion.”
The league’s investigation may never yield as complete a picture of Prokhorov as it would an American buyer. All the same, N.B.A. owners will have to decide whether the cash infusion for the Nets is worth taking a risk on a charismatic billionaire willing to bail out a franchise that has lost nearly $400 million in five years under Ratner.
The investigation is expected to tap into Russian police, military, diplomatic and intelligence sources, some from the former K.G.B., as well as his partners, competitors and customers.
“You need people on the ground to do field work, who can get you the information about his reputation and associates,” said Howard Safir, the chairman of SafirRosetti, an investigations firm owned by the Global Options Group, and a former New York City police commissioner. “You have to do the shoe-leather work.”
Prokhorov is known as much for his wealth as a metals investor as for his image as a playboy. He was detained by the French police in 2007 on suspicion of making prostitutes available to his guests at a lavish party in the ski resort of Courchevel. He was released and never charged. But the incident is believed to have forced him to sell his 26 percent stake in the Norilsk nickel mine. The timing of that sale, before the global financial crisis hit with its full force, elevated Prokhorov to the top of Russia’s rich list.
The league is likely to also look at a dispute last year that prompted minority shareholders in the utilities Prokhorov controls to protest to Russia’s president, Dmitri A. Medvedev, about the buyouts they say he avoided offering and the political influence he was alleged to have used. It also may examine Prokhorov’s role as the president of the Russian Biathlon Union; during his tenure, three athletes have tested positive for blood doping.
A league’s goal in investigating a prospective owner is to avoid the embarrassment of approving one whose financing is dubious or whose character is suspect. In 1997, the N.H.L. approved John Spano as the owner of the Islanders, but his deceit about his net worth exposed a fraud that earned him a nearly six-year sentence in federal prison.
Bill Daly, the N.H.L.’s deputy commissioner, said the screening of buyers was now “significantly more difficult to circumvent.”
But, he said, the league does not want its vetting to be so onerous that it scares off qualified buyers “who may not want to deal with hassles.”
Leagues do not reject many prospective buyers in a vote by owners. They prefer to eliminate those who fail to meet their requirements in early stages of consideration. Last week, Rush Limbaugh was ousted from a group seeking ownership of the St. Louis Rams before his name made it to N.F.L. owners.
But not everyone whose bid reaches a vote by a league’s owners gets through. The N.B.A. rejected a group of investors led by the boxing promoter Bob Arum that sought the Minnesota Timberwolves in 1994, a decision that led each side to sue the other.
Last summer, the chairman of the N.H.L.’s board of governors, Jeremy Jacobs, said James L. Balsillie “lacked the good character and integrity” to own the bankrupt Phoenix Coyotes.
Prokhorov is immersed in the N.B.A.’s process, which requires that he file an application that details his life and finances. He has to agree to authorize his banks to verify his net worth. A security firm, which the league declined to name, will investigate him and produce a report that will go to the league’s lawyers and financial officers and could cost roughly $50,000. A report totaling several dozen pages will be forwarded to the advisory and finance committee, which will present its recommendation to all 30 owners.
“It usually takes six weeks to two months, sometimes faster, sometimes longer,” said Russ Granik, a former deputy commissioner who is the vice chairman of Galatioto Sports Partners, an investment bank and equity firm.
Granik said that merely being a foreign oligarch should not disqualify him from consideration.
Stern cited as a precedent the numerous foreign owners, including a Russian oligarch, Roman A. Abramovich, and several Americans, now in the English Premier League. James Fenkner, a director of Red Star Asset Management, a specialist emerging-market fund that has been investing in Russia since 2005, has been critical of Prokhorov’s business practices but said he thought the N.B.A. would approve him.
“He’s not the worst offender in a system that was set up to benefit a few insiders,” he said. “He’s played the system well. He’s very charismatic, very captivating. I’d be surprised if he’s seen as anything but a colorful owner.”
Andrew E. Kramer contributed reporting from Moscow.
The Moscow Times: Deripaska Denies Involvement in Spanish Money Laundering
19 October 2009
Oleg Deripaska has not received any request from Spain for testimony in a money-laundering investigation and has told Russian law enforcement that he is willing to answer any questions they may have, his spokesman said Sunday in an e-mailed statement.
The spokesman said Deripaska never had any relation to the companies mentioned in the media reports. “We consider any concerns which the Spanish authorities might have to be misplaced and expect this matter to be resolved shortly,” the statement said.
Spanish daily El Mundo reported Sunday that Judge Baltasar Garzon would visit Moscow in early December to look into the alleged laundering of 4 million euros through Russian mafia in Spain from 2001 to 2004.
(MT)
Reuters: Deripaska denies links to firms probed by Spain
Mon Oct 19, 2009 8:49am BST
MOSCOW, Oct 19 (Reuters) - Russian tycoon Oleg Deripaska denied any connections to firms that are being probed by Spanish officials over money laundering, and said he had asked Russian prosecutors to contact Spanish authorities about the allegations.
The statement from Deripaska, issued late on Sunday, follows a report in Spanish newspaper El Mundo saying that Spanish High Court Judge Baltasar Garzon plans to travel to Moscow to interview Deripaska in connection with a money laundering case.
"We wish to make clear that Mr Deripaska has not received any communication from the Spanish authorities concerning this matter," the statement said.
"Some time ago Mr. Deripaska received information that his name had been mentioned by a witness in a Spanish money laundering case. He asked the Russian Prosecutor General to check this information with the Spanish authorities and to communicate to them his readiness to answer any questions they might have," the statement said.
The statement said that Deripaska understood from the Spanish press that the authorities were seeking his testimony because of alleged links between him and various companies which are subject of the investigation.
"In fact, Mr. Deripaska has no such links with these companies, a fact which has already been confirmed by judgments issued in other proceedings," the statement said.
Garzon, best known for his attempt to extradite former Chilean dictator Augusto Pinochet, has already called several times for investigations into mafia links and money laundering allegations against other Russian officials and businessmen, according to Spanish media.
Deripaska's main legal battlefield outside Russia is London, where a court of appeal ruled in July that Russian entrepreneur Michael Cherney may sue Deripaska in Britain over a disputed stake in Deripaska's Russian aluminium company UC RUSAL. [ID:nLV428673].
RUSAL, the world's largest aluminium producer, is having tough talks with Russian and Western banks to restructure $7.3 billion of debt [ID:nLI262829].
Investors are watching eagerly for the completion of the talks as RUSAL is considering an initial public offering of its stock in Hong Kong before the end of this year. [ID:nHKG255026] (Reporting by Dmitry Zhdannikov, + 7 495 775 12 42)
APA.az: Large-scale terror attack prevented in Ingushetia
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[ 19 Oct 2009 11:36 ] [pic]
Nazran – APA. Large-scale terror attack was prevented in Ingushetia, APA reports. A car loaded with explosives was found outside Ingushetia Interior Ministry. The sappers exploded the car by remote control. No one was injured. The blast was heard even far beyond Nazran.
Upstreamonline: Russian pipeline intact after bomb attack
Wire service
An explosion injured a man but did not damage gas pipeline yesterday in a series of attacks on Russia’s southern regions.
The bomb exploded as a man tried to plant it under the gas pipeline, tearing off his arms at the wrists, Itar-Tass news agency reported citing local security officials..
Four militants were killed in the latest series of attacks in the volatile North Caucasus over the weekend.
A series of suicide bombs and attacks on police and security forces in Chechnya, where Russia has fought two separatist wars since the mid-1990s, and the two neighbouring regions of Ingushetia and Dagestan, have shattered a few years of relative calm in the region, Reuters reported.
Monday, 19 October, 2009, 06:51 GMT | last updated: Monday, 19 October, 2009, 06:59 GMT
RIA: Russian police kill 4 gunmen, deter terror attack North Caucasus
09:4619/10/2009
MAKHACHKALA/ROSTOV ON DON, October 19 (RIA Novosti) - Four suspected militants were killed, several detained and a terrorist attack prevented in Russia's volatile North Caucasus regions overnight.
Police killed three gunmen in a shootout in Dagestan's Khasavyurt region bordering Chechnya. The shooting broke out during a routine document check, when men inside the car opened fire and were killed by return fire, local police said on Monday.
No casualties were reported among the police.
Police said two assault rifles, a pistol, two hand grenades and other ammunition were found in the car.
Another suspected militant was killed in Chechnya's Achkhoi-Martan district during a police operation, and two other gunmen were arrested, a police source said.
In Ingushetia, bomb disposal experts blew up a car loaded with explosives and left near a bus stop in the center of Nazran, the republic's largest city, a local Interior Ministry spokesman said.
"The car was parked near a bus stop on Sunday evening," he said. "Field engineers cordoned off the area and destroyed the bomb by blowing up the car."
The spokesman said police were determining the type and power of the bomb, adding the explosion was heard far outside the city. An investigation has been launched.
Russia's mainly Muslim North Caucasus republics, especially Chechnya, Dagestan and Ingushetia, have seen an upsurge of militant violence this year, with frequent attacks on police and officials.
Reuters: Four killed in south Russia attacks
Mon Oct 19, 2009 11:42am IST
MOSCOW, Oct 19 (Reuters) - Four militants were killed in two separate gun battles in Russia's volatile North Caucasus while bombs went off in both the capital of a third region and under a gas pipeline, Russian news agencies reported on Monday.
Violence has surged in the South Russian regions with the latest violence in three of the most volatile, Dagestan, Chechnya and Ingushetia, raising questions about the Kremlin's ability to keep control of the mainly Muslim area.
In Dagestan, three men were shot dead on Sunday night when they opened fire on security forces after their car was stopped in the Khasavyurt region, RIA news agency reported.
Three guns, grenades and ammunition were found in the vehicle and the men were suspected members of a militant group RIA reports, quoting local law enforcement officials.
A bomb also exploded as a man tried to plant a bomb under a gas pipeline in the same region earlier on Sunday night, which did not damage the pipeline, but did injure the bomber, ITAR-TASS news agency reported.
"As a result of the ... explosion, the bomb tore off his arms at the wrists," Tass reported, quoting local security officials.
In Chechnya, one militant was reported killed and two detained in a shoot-out with security officials early on Monday, RIA reported.
In another incident, no one was hurt when a bomb went off close to a police checkpoint in the Ingush capital Magas on Monday morning, RIA reported.
A series of suicide bombs and attacks on police and security forces in Chechnya, where Russia has fought two separatist wars since the mid-1990s, and the two neighbouring regions of Ingushetia and Dagestan, have shattered a few years of relative calm in the North Caucasus.
Analysts see a danger of the area descending into open civil war, fuelled by Islamist militancy, clan rivalries, corruption, poverty and brutal law enforcement. (Reporting by Conor Sweeney; Editing by Charles Dick)
Ynet : 4 killed in south Russia attacks
|Published: |10.19.09, 08:14 / Israel News |
Four militants were killed in two separate gun battles in Russia's volatile North Caucasus while bombs went off in both the capital of a third region and under a gas pipeline, Russian news agencies reported on Monday.
Violence has surged in the South Russian regions with the latest violence in three of the most volatile, Dagestan, Chechnya and Ingushetia, raising questions about the Kremlin's ability to keep control of the mainly Muslim area. (Reuters)
From The Sunday Times
October 18, 2009
Times Online: Chechen terror family chief turns on sons
Mark Franchetti in Grozny
AT the sight of his son on the television screen, dressed in a camouflage jacket and cradling an AK-47 assault rifle, Buhari Barayev was overcome by emotion. Tears welled as the young terrorist declared that he had taken hundreds of innocent people hostage and would die a martyr unless the Kremlin halted the war in Chechnya.
It was the first time Barayev had seen the interview I conducted with his son Movsar during the Moscow theatre siege seven years ago. I had flown to Grozny, the capital of the Russian republic of Chechnya, to show it to him.
Movsar, who led about 40 heavily armed Chechen terrorists, had captured more than 800 theatre-goers. Two days after I entered the building to speak to him, he and his gunmen were dead, killed by Russian special forces. At least 129 hostages also died.
“I’m proud of my son — he died a martyr for his country,” said Barayev, who lost 25 relatives, including two brothers, in Chechnya’s wars with Russia. “But taking innocent people hostage was a mistake. I didn’t support that. It was a wrong and pointless act that would achieve nothing. However, that’s no reason to stop loving him. He acted out of despair.”
Barayev, 56, has devoted most of his life to the cause of an independent Chechnya. But in a remarkable change of heart, he has switched sides to become a vocal supporter of Ramzan Kadyrov, the ruthless, pro-Kremlin president of Chechnya.
The 33-year-old president, who is fiercely loyal to Vladimir Putin, the Russian prime minister, personally telephoned Barayev in Austria, where he had spent 10 years in exile, to ask him back and guarantee his safety.
Kadyrov, whose security forces have been repeatedly accused of abducting, torturing and murdering his opponents, greeted Barayev as an old friend in Grozny and drove him to his home for a banquet. He gave him a Volga car and is said to be helping him financially.
“Kadyrov is a man of his word and I trust him,” said Barayev. “I now realise that he has achieved in Chechnya what we always dreamt of. I became disillusioned with the rebel cause because it brought only death, suffering and empty promises.”
His decision has split his family. Islam, his youngest son, who stayed in Austria, has denounced it. Chechen rebels have branded him a traitor.
Barayev remains defiant. “I lost a son and much of my family for Chechnya’s battle for freedom. How dare anyone call me a traitor?” he said.
“I love my country and this is where I want to die. Kadyrov has turned it round and I urge any young militants still fighting to accept that they’re wrong. Life has never been better here. They should lay down their arms.”
Barayev’s defection is a propaganda coup for Kadyrov, who kept a lion cub as a pet before he took over as president in 2007. Wooing men like Barayev, who had called Putin “a criminal” and Russia “a heartless country”, is part of his drive to convince militants to rally behind his regime.
There is a longstanding tradition of warlord families changing sides in Chechnya. The president’s much feared security force, the Kadyrovsti, is made up of former rebels who fought the Russians before switching allegiance.
Similarly, Kadyrov and his father Akhmad, a former president who was assassinated five years ago, opposed Russia in the first Chechen war between 1994 and 1996, but sided with Putin when he launched the second conflict in 1999.
In return Putin gave him de facto control of Chechnya and turned a blind eye to the alleged brutality of the regime. Former rebels have been coerced into loyalty to Kadyrov, often by kidnapping their relatives. Money and positions of power have also been offered.
Kadyrov’s policy of granting amnesties has raised eyebrows in Moscow, especially among Russian veterans who are angry at seeing their former enemies being rewarded.
To them the Barayevs remain one of Chechnya’s most infamous terrorist families. Others back Kadyrov’s policy because it has reduced rebel numbers to fewer than 1,000 men.
Kadyrov claims he wants to reunite the Chechen people. Sceptics say he takes pleasure in watching his former enemies bow to his rule. “He loves hearing those who once called him a traitor sing his praises — he gets a kick out of it because it demonstrates his power,” said one.
There is no evidence to suggest that Barayev was forced to return. My interview was filmed by a cameraman for one of Kadyrov’s cabinet ministers, making it difficult to judge how freely Barayev spoke. He said he could not talk without an official present. “I am, after all, the father of Russia’s No 1 terrorist. I’m sure you understand.”
Grozny, which suffered the heaviest bombing in Europe since the second world war, has been largely rebuilt under Kadyrov. The city has the biggest mosque in Europe — an extravagant symbol for a country with a population of just over 1m.
No form of dissent is tolerated. Although Kadyrov himself denies any involvement, those who speak risk death. In July gunmen abducted and executed Natalia Estemirova, Chechnya’s most prominent human rights campaigner.
A month later the head of a children’s charity and her husband were found dead in the boot of their car.
Barayev confessed that he is afraid, but not of Kadyrov’s gunmen. Instead, he said, he feared a revenge attack by either Russians or Chechen militants.
It was Barayev’s younger brother, Arbi, who made the family a watchword for terror when, aged 21, he became a field commander during Chechnya’s first war.
“He was very tough,” Barayev recalled. “For him there was only one aim — to die a martyr. He was fanatical.”
After the Russian army left Chechnya in defeat, the republic fell under the militants’ control for three years. It became one of the most dangerous places on earth, plagued by kidnapping, arms running and bloody infighting among its warlords.
Arbi, who commanded 600 men, is said to have played a part in the kidnapping and beheading of four British mobile phone engineers in 1998. Barayev, who brought up Arbi when their mother died, vehemently denied it.
Barayev’s son Movsar became one of Arbi’s closest lieutenants. When Putin launched the second war, Barayev, who never took up arms against the Russians, decided to flee.
Certain that he would die in exile, he packed a small bag of Chechen soil, which he planned to have sprinkled over his grave. His brother and son stayed behind to fight.
Arbi was killed by the Russians in 2001. In 2002 Movsar, 25, by then a well-known rebel figure, was chosen to lead the terrorist group that staged the theatre siege.
His father last spoke to him by satellite phone shortly before the attack.
“He was in the woods with his unit,” recalled Barayev. “He sounded sick and I told him to join me in Azerbaijan to get medical help. He scolded me and said, ‘I’ll die here.’ Those were his last words to me.
“Eight weeks later a neighbour told me that Movsar was on television. When I saw him and heard what had happened I understood at once that it was over. My son would be killed. I was shocked.”
Movsar had been sent by Shamil Basayev, Russia’s most infamous terrorist, whose men later staged the Beslan school siege in North Ossetia that ended with the death of 333 hostages, most children. He was killed by an explosion in 2006.
When I met Movsar during the Moscow siege he betrayed no emotion as he explained he had come to die.
Russian special forces later pumped a powerful gas into the theatre and shot him with the other terrorists.
I asked Barayev what his son and brother would think of his backing for Kadyrov. He paused before replying. “They’d be angry,” he said.
“They’d strongly condemn my decision and I’d never manage to convince them that I’m right. But after all this suffering, one has to know how to accept defeat with dignity.”
RIA: Two transporter trucks with stolen Lexus cars detained in Russia
19:1518/10/2009
VOLGOGRAD, October 18 (RIA Novosti) - Traffic police in the Volgograd Region to the southeast of Moscow have detained two car transporter trucks with two stolen Lexus cars, a police spokesman said Sunday.
The transporter trucks also carried a dozen other cars and were bound from Moscow to the Russian North Caucasus republic of Dagestan.
"During a check at the Gorodishchensky police checkpoint... the documents for two Lexus cars were found to be fake, while the cars were registered as stolen from their owners in Moscow ten days ago," the spokesman said.
The spokesman said the car delivery driver offered the police 100,000 rubles ($3,400) to cover up the affair, but was arrested and now faces up to three years in prison and a fine.
Expensive cars stolen in Moscow and other Russian cities are often taken to the volatile republics of Chechnya, Dagestan and Ingushetia, and the instable situation in the region, which has seen an upsurge of militant violence this year, as well as connections of local residents, prevent carjacking cases from being solved.
RIA: Russia's Trans-Baikal Region reports 91 swine flu cases
09:5919/10/2009
CHITA, October 19 (RIA Novosti) - The number of confirmed swine flu cases in Russia's Trans-Baikal Region has grown from 59 to 91 over the weekend, Russian consumer watchdog Rospotrebnadzor said on Monday.
The first cases of H1N1 virus in the region were registered on October 3. Several schools have been closed and put under quarantine in the regional capital, Chita.
"There are 41 children among the total of confirmed cases including 32 pupils," the statement said, adding that 11 people with confirmed virus had recently returned from China.
As of Monday, there have been at least 902 confirmed cases of swine flu in Russia, with no reported deaths. Russia's top doctor, Gennady Onishchenko, said on Friday that 562 of Russia's reported cases of the virus involved people who had become infected whilst traveling abroad.
According to the World Health Organization, as of October 11 there had been more than 399,000 laboratory confirmed cases of H1N1 influenza throughout the world, with over 4,735 deaths.
OCTOBER 18, 2009, 7:18 P.M. ET
WSJ: Russia Worries About the Price of Oil, Not a Nuclear Iran
The Obama administration's foreign-policy goodwill has yet to be repaid in kind.
By GARRY KASPAROV
Last Wednesday in Moscow, the remaining illusions the Obama administration held for cooperation with Russia on the Iranian nuclear program were thrown in Secretary of State Hillary Clinton's face. Stronger sanctions against Iran would be "counterproductive," said Russian Foreign Minister Sergei Lavrov, just days after President Dmitry Medvedev said sanctions were likely inevitable. This apparent inconsistency should remind us that Mr. Medvedev is little more than a well-placed spectator, and that Prime Minister Vladimir Putin, who discounted sanctions in a statement from Beijing, is still the voice that matters.
This slap comes after repeated concessions—canceling the deployment of missile defenses in Eastern Europe, muted criticism of Russia's sham regional elections—from the White House. Washington's conciliatory steps have given the Kremlin's rulers confidence they have nothing to fear from Mr. Obama on anything that matters.
And nothing matters more to Mr. Putin and his oligarchs than the price of oil. Even with oil at $70 a barrel, Russia's economy is in bad straits. Tension in the Middle East, even an outbreak of war, would push energy prices higher. A nuclear-armed Iran would, of course, be harmful to Russian national security, but prolonging the crisis is beneficial to the interests of the ruling elite: making money and staying in power.
The Obama administration's foreign policy has directed a great deal of optimism and good will toward friends and foes. Such a cheery outlook is commendable as long as it does not clash with reality. Unfortunately, there were several clashes in the past week.
On Wednesday, a top Russian security chief, Nikolai Patrushev, said in an interview in Izvestia, one of the main Kremlin propaganda papers, that Russia was planning to reshape its policies on nuclear force to allow for pre-emptive strikes and use in regional conflicts. Since it cannot be a coincidence that this news leaked while Mrs. Clinton was still in Moscow, it can be considered a response to Mr. Obama's talk of a world without nuclear weapons and rescinding the deployment of missile defenses.
Also last week, Lt. Gen. Vladimir Shamanov was cleared of wrongdoing for dispatching a squad of his paratroopers to interfere with the criminal investigation of a firm owned by his son-in-law. Transcripts of the general's phone calls demonstrating his involvement were published in Novaya Gazeta newspaper, the last print outlet critical of the Kremlin. But this was not enough to cause trouble for this idol of the second Chechen war, where his forces were repeatedly accused by Human Rights Watch and other organizations of atrocities against civilians.
Then there was the spectacle of Russia's regional elections. They were as fraudulent and superfluous as every election under Mr. Putin's reign, with real opposition candidates barred and the ruling United Russia party receiving its predetermined majority. This time the fraud was too blatant even for Kremlin-allowed opposition party leaders Alexander Zhirinovsky and Gennady Zyuganov, who loudly protested results that have moved Russia to the verge of a one-party dictatorship. Mr. Medvedev asserted that the elections had gone perfectly well. Meanwhile, the U.S. statement expressed the usual concerns and quoted President Medvedev's own words on the importance of free and fair elections—as if he would be shamed by them.
From the shameless expect no shame. And from a corrupt and criminal regime, expect no changes unless real consequences are put on the table. With Russia, this would mean going after Mr. Putin's coterie of oligarchs and hitting them where it hurts: their privileges and their pocketbooks. If the European Union and the U.S. started canceling visas and prying into finances, they would find the Kremlin far more interested in sanctions against Iran. Mr. Putin has used human rights and democracy as bargaining chips because these things matter to the West and not to him. Until the game is played for stakes with value to the Kremlin, it's a one-sided contest.
If the U.S. is serious about preventing Iran from getting a nuclear weapon, then Mr. Obama must get to the point and state the penalties unequivocally. Repeating over and over that it is "unacceptable" has become a joke. For more than 10 years a nuclear North Korea was also "unacceptable." If Mr. Obama says the U.S. will do whatever it takes to prevent Iran from attaining a nuclear weapon, then we will see if Tehran blinks. At a minimum, the White House should publicly promise that any attack on Israel with weapons of mass destruction will be treated as an attack on American soil and urge NATO to make a similar commitment.
Like many Russians, I was encouraged by Mr. Obama's inspirational speech in Moscow last July, but he must know there is more to statesmanship than printing money and making speeches. Inflated rhetoric, like inflated currency, can lead to disaster. The goodwill bubble Mr. Obama is creating will burst unless there are real results soon.
Mr. Kasparov, leader of The United Civil Front, is a contributing editor of The Wall Street Journal.
News Analysis
The Seoul Times: U.S. Appeals to Extradite Russia's Alleged "Merchant of Death"
Monday, October 19, 2009
| |
By Richard S. Ehrlich
Bangkok Correspondent
BANGKOK, Thailand — Newly obtained documents, prepared by the U.S. Drug Enforcement Administration (DEA), portray an elaborate sting operation to capture alleged weapons trafficker Viktor Bout in Bangkok, and America's current appeal to extradite him to New York.
But the documents, made public last week, do not confirm that Mr. Bout had access to the weapons, or where the arms and ammunition were located.
Mr. Bout, a Russian citizen, has been dubbed "The Merchant of Death" for his long years as an alleged international weapons dealer involved in illegal and legal transfers.
The U.S. indictment said when Mr. Bout was in Bangkok last year, he "agreed to provide the FARC [Colombian rebels] with millions of dollars worth of weapons to be used, among other things, to kill nationals of the United States in Colombia" who are "officers and employees of the United States" on "official duties."
U.S. Deputy Attorney General David Ogden said in Bangkok on October 13 that he told Thai officials Mr. Bout "stands charged with extremely serious crimes against Americans."
The U.S. case against Mr. Bout fell apart in August when Bangkok's Criminal Court dropped all charges against him.
The Thai judge said Bangkok "does not have the authority to punish actions done by foreigners against other foreigners in another country."
The newly released documents are from America's desperate appeal, which is winding its way through Thailand's justice system.
The documents do not deal with the previous judge's decision about Thai jurisdiction over punishing foreigners acting against other foreigners outside of Thailand, and instead focus on demanding Mr. Bout be extradited.
Mr. Bout, 42, was arrested in March 2008 in a Bangkok hotel, during a U.S.-led sting operation, and remains caged in a Bangkok prison.
He has denied all charges of wrongdoing.
The DEA's "rebuttal affidavit" and "evidence" were displayed online last week by the Federation of American Scientists (FAS), a Washington-based group founded in 1945 by scientists who developed the world's first atomic bombs.
"Documents provided to the Federation of American Scientists, by the U.S. Attorney's Office for the Southern District of New York, provide additional details about the case against alleged arms trafficker Viktor Bout, but many important questions remain — publicly — unanswered," FAS said.
The scientists appeared concerned about sophisticated weapons allegedly mentioned by Mr. Bout, and their possible availability on the international blackmarket.
The documents include photocopies of items purportedly seized from Mr. Bout in Bangkok when he was arrested.
"Exhibit 1" in the "Bout Rebuttal Affidavit in Support of Extradition," dated February 17, 2009, is an e-mail from "Agregatum Mobile" through , to "Amigo" — also known as "bogotazo32" — at which reads:
"Buenos Dias! This is e mail we can use for communication Best Regards Friend of Andrew."
The DEA said "records maintained by the e-mail service provider of the e-mail address" indicated it was actually from Mr. Bout to a U.S.-paid DEA "confidential source" who Mr. Bout naively trusted.
Transcripts of written, telephone, and conversation communication appear vital to the U.S. case against Mr. Bout.
In sworn affidavits, the DEA describes nicknames, coded language, wiretapped phone conversations, and furtive e-mails to and from Andrew Smulian and others as secretive messages about Mr. Bout's alleged intentions in Bangkok.
Mr. Smulian was later jailed in the U.S. after his arrest on charges of being Mr. Bout's colleague in crime.
The documents include "pamphlets on Soviet-era cargo planes that Bout, in Bangkok, allegedly recommended for delivering weapons to the FARC," and "a map of South America that Bout reportedly used in discussions about the locations of American radar stations."
An intriguing document, "Exhibit 5," is described by the DEA as "notes handwritten by Bout during the meeting regarding the details of the weapons deal" in Bangkok.
"The notes include short-hand references to various weapons, including 'AA' or anti-aircraft, believed to be a reference to Igla missiles; 'AK-47' [assault rifles]; 'UAV' unmanned aerial vehicle; 10,000,000 '7,62 x 54' ammunition used in Russian Dragunov sniper rifles and PKM machine guns; RPG-7 and RPG-22 rocket launchers; and 'AG-17,' presumably a reference to the AGS-17 30mm automatic grenade launcher," FAS said.
"Some of the notes are more cryptic, including references to 500 '60 mm', 200 '82 mm' and 40 '120 mm.' Presumably, these are references to mortars since 60mm, 82mm and 120mm are all common calibers for mortar bombs," FAS said.
The DEA said it also seized a computer memory stick from Mr. Bout, which revealed technical military documents describing a missile.
"It appears that missile on offer was the AT-4 Spigot, a wire-guided Russian missile system that has a maximum range of 2,000-2,500 meters and can penetrate up to 400-460mm of armor, depending on the type of missile used," FAS said.
FAS said the documents they received, from the "United States of America vs. Viktor Bout" case, do not confirm if Mr. Bout or his colleague "actually had access to the weapons that they allegedly promised to deliver to the FARC," which Washington considers a terrorist group.
"This question is particularly important in regards to the 100 shoulder-fired, surface-to-air missiles," which can shoot down military and commercial planes.
It was also unclear where the weapons were located, despite allegations some were available in Bulgaria, FAS said.
The Moscow Times: RT to Decide Ren-TV’s News Programming
19 October 2009
The Moscow Times
State-controlled RT television will take over news programming at Ren-TV and Petersburg Channel 5 starting next year, ending the two channels’ independent and sometimes critical news coverage, Kommersant said Friday.
Ren-TV’s news team will also move to a building occupied in part by RT on Zubovsky Bulvar, near the Park Kultury metro station, where news for broadcast on both channels will be produced, Kommersant said, citing sources close to the channels’ owner, National Media Group.
Ren-TV was the last independent national television station until it was taken over by Kremlin-friendly Bank Rossiya in February 2008, but the station’s journalists have continued to provide some of the most critical reporting available on Russian television.
National Media Group is controlled by Bank Rossiya, whose largest shareholder is billionaire Yury Kovalchuk, a close ally of Prime Minister Vladimir Putin. Kovalchuk created National Media Group in February 2008 when Bank Rossiya, Severstal, Surgutneftegaz and insurance group Sogaz pooled their assets in Ren-TV and Channel 5.
RT, called Russia Today when it was launched as an English-language news channel in 2006, aims to provide the state’s point of view on Russian news.
National Economic Trends
19.10.2009 - PRIME-TASS via Banki.ru
: PM Vladimir Putin says CBR plans to gradually narrow scope of FX interventions
In the mid term the Central Bank of the Russian Federation plans to gradually narrow the scope of interventions it carries out on the FX market, Russian Prime Minister Vladimir Putin noted at a meeting devoted to economic issues, Prime-TASS wired.
According to him, he talked about this issue with the CBR chairman. Putin pointed out this should give the economy new incentives, translating into lower credit rates and the refinancing rate, additional conditions to rein in inflation. “However, presently — also participants of economic activities point our attention to this — as the ruble’s firming rates have its advantages and disadvantages," Putin said.
At present, as the prime minister thinks, one can talk about positive macroeconomic trends in the Russian economy. Russia has a favorable trade balance and international reserves are on the rise, reaching $418.7 bln as of October 9.
What’s more, inflation slowed down substantially, remaining virtually flat over the past few weeks. “Market players do not see reasons for steep fluctuations and devaluation," Putin noted adding the Russian ruble is firming its positions.
Bloomberg: Russia Bonds May ‘Crowd Out’ Company Debt, Bank of America Says
By Denis Maternovsky
Oct. 19 (Bloomberg) -- Russia’s planned sale of government bonds may make it difficult for the nation’s companies to borrow from international lenders next year, according to analysts at Bank of America Merrill Lynch.
The country may sell $13 billion of foreign-currency debt in early 2010 and “this large issuance could significantly crowd out the market for corporate borrowers, especially lower- quality names,” New York-based analysts Jane Brauer and Ali Bastani wrote in a note to investors.
Russian companies have been relying on local banks and ruble bond sales for their financing since the credit crisis cut access to international funds. Just $10.6 billion of foreign- currency bonds have been sold by companies this year, half the amount raised in the same period of 2008, according to data compiled by Bloomberg
The government is turning to international investors for the first time since it defaulted on domestic debt in 1998 as it seeks to plug a budget deficit that’s forecast to be 6.8 percent of gross domestic product next year. Foreign-currency bonds will be sold no earlier than February, Deputy Finance Minister Dmitry Pankin said this month.
To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@
Last Updated: October 19, 2009 03:30 EDT
: Russia looks to raise $18bn
By David Oakley in London
Published: October 18 2009 20:23 | Last updated: October 18 2009 20:23
Russia is to launch its first international bond in a decade to bolster its public finances and take advantage of the surge in demand for emerging market debt
Russia, which most recently issued a bond aimed at international investors in 2000, last week signalled plans to raise up to $18bn in dollar-denominated securities in the first quarter of next year as the cost of borrowing for emerging market sovereign issuers fell sharply.
Emerging market sovereign bond yield spreads have narrowed to 290 basis points over US Treasuries, the international benchmark for debt, from 700bp in early March. Russian spreads have narrowed to 240bp from 750bp in March.
Demand for riskier assets, such as emerging market securities, since the start of the rally in equities seven months ago has driven spreads lower.
Emerging market international sovereign bond issuance has soared to $50bn since the turn in the markets in March, according to Dealogic. There was little issuance at the start of the year and only one emerging market deal in 2008 after the collapse of Lehman Brothers in September.
Even countries in central and eastern Europe, such as Hungary and Lithuania, which were considered big risks earlier in the year because of their weak economies, have been able to tap the capital markets.
Paul Biszko, senior emerging market strategist at RBC Capital Markets, said: “Russia has had its first budget deficit this year since 1999, and it needs to make sure its finances are in order.
“[Officials] have said they want to issue almost $60bn in international bonds over the next three years, although they may need to raise much less should the oil price hold up.”
A Russian banker said: “Although Russia still has a lot of foreign exchange reserves, it needs to raise money to improve its infrastructure. It is also the right climate for an international bond.”
Russia has more than $400bn in foreign exchange reserves but has spent $200bn to prop up the rouble since August last year, when economic fears were prompted by the Georgia conflict and drop in the oil price.
Russia will run budget deficits over the next three years, making policymakers nervous of becoming too complacent over public finances, which could be hit again should oil prices come under pressure.
Russian officials will be in London early next month to gauge demand for the bonds.
Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from and redistribute by email or post to the web.
Risk Center: October 19: Commentary - Russian Outward FDI and Its Policy Context
Location: London
Author: Andrei Panibratov and Kalman Kalotay
Date: Monday, October 19, 2009
Because of a rapid expansion of its multinational enterprises (MNEs) abroad, Russia now has the second largest stock of outward foreign direct investment (OFDI) among emerging economies ($203 billion in 2008), behind Hong Kong (China) ($776 billion), but ahead of Brazil ($162 billion), China ($148 billion) and India ($62 billion). Between 1995 and 2007, Russia�s OFDI stock was growing more rapidly than the OFDI stock of the other emerging economies mentioned. However, as a result of the global financial crisis, a sharp downward revaluation of Russian assets held abroad reduced Russia�s lead vis-�-vis other large emerging economies by the end of 2008.
Few dozens of large firms account for a significant part of Russian assets abroad, including such behemoths as Gazprom, Lukoil, Sberbank, AFK Systema, Norilsk Nickel, Evraz, Rusal, and Severstal. The majority of Russian MNEs operate in four major industries: oil and gas, metallurgy, finance, and telecommunications. Despite the concentration of OFDI among a limited number of large MNEs, the total number of Russian firms investing abroad probably exceeds 1,000.
The dynamism of Russian OFDI has weakened lately, in part due to the onset of the global economic and financial crisis. In the first quarter of 2009, it fell by 15% (from $16 billion to $13 billion) on a year-to-year basis. The sharp downward revaluation of Russian assets held abroad in 2008, too, could indicate major problems at the international affiliates of Russian MNEs, although reliable reports on eventual downsizings or closures are impossible to find for the moment. It seems that, despite their mounting difficulties, the financial crisis has not stopped Russian companies� international expansion altogether. Some large transactions were announced in the first quarter of 2009, such as Surgutneftegaz�s purchase of 21% of the shares of Hungary�s MOL from the Austrian oil company OMV. In some other cases, such as Severstal�s purchase of the Canadian coal-mining firm PBS, the crisis has even benefited the buyer: it has cut down the prices of foreign assets that Russian companies intended to acquire.
One impediment to Russian investments abroad is the perception in certain countries that Russian MNEs are more subject to political interference than their peers from other countries. One case of putative political antagonism concerned the aforementioned Surgutneftegaz-MOL case. MOL is seen as strategic by the Hungarian Government, and although the transaction went through, it was a source of political concern in Hungary. Anxieties about Russian OFDI have also been expressed by authorities in other European countries, such as the Czech Republic, Poland, and Spain. While some of those concerns are over security or possible political interference, others relate to other factors common to emerging-market OFDI generally, such as the quality of corporate governance or actions that do not meet professional standards.
What Russian direct investors lack perhaps the most is a carefully thought out government policy that recognizes the economic benefits of OFDI, and convinces potential host countries that Russia�s Government will eschew political interference in Russian MNE operations. It could also support Russian OFDI in a systematic way, as is the practice of many other countries, especially in promoting investment in developing countries (political risk insurance, support for pre-investment studies, etc). This situation may be changing as President Medvedev has recently announced his intentions to support outward investors from Russia.
The full report can be downloaded from: vcc.columbia.edu/documents/FDIProfile-Russia.pdf The views expressed here are those of the authors and do not necessarily reflect the opinions of their respective institutions.
Authors - Andrei Panibratov, Associate Professor, Graduate School of Management, Saint Petersburg State University, and Kalman Kalotay, Economic Affairs Officer, United Nations Conference on Trade & Development.
This briefing is provided as general information, and does not constitute definitive advice or recommendations. Any views expressed in the above articles are those of the author concerned and do not necessarily reflect the views of Capco or any other party. Capco has not independently verified any facts relied upon in any of the comments made in any of the articles referred to. Please send any comments or queries to Shahin Shojai (shahin.shojai@). Shahin Shojai is the Editor of The Capco Institute journal ().
Business, Energy or Environmental regulations or discussions
Bloomberg: AvtoVAZ, Gazprom, Lukoil and OAO TMK: Russian Equity Preview
By Denis Maternovsky
Oct. 19 (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 declined 1.8 percent to 1,317.07. The dollar-denominated RTS Index fell 1.8 percent to 1,408.68.
OAO AvtoVAZ (AVAX RX): Russia’s biggest automaker plans to invest about 240 million euros ($357 million) with partners Renault SA and Nissan Motor Co. to revamp production and make five new vehicles from 2012, spokesman Igor Burenkov said. More details will be given on Oct. 19, he said. The shares fell 0.7 percent to 15.34 rubles.
OAO Gazprom (GAZP RX): The country’s natural gas export monopoly is close to agreeing tax breaks in customs and mineral extraction as part of discussions with several foreign companies about developing Siberian fields, Deputy Chairman Alexander Medvedev told the Sunday Telegraph. The stock fell 2.5 percent to 191.23 rubles.
OAO Lukoil (LKOH RX): Iraq will hold a second round of bidding in December to develop its oil fields, a government official. Russia’s biggest private oil company and Houston-based ConocoPhillips will jointly bid for the West Qurna-1 field, which was not awarded during the first round in June. Lukoil shares declined 1.1 percent to 1,910.75 rubles.
OAO TMK (TRMK RX): Russia’s largest pipemaker may not continue as a going concern after posting a net loss in the first half as its debt exceeds assets by almost $1 billion, auditors Ernst & Young said. The company said it has a “realistic plan of action” to handle the situation. The shares fell 3 percent to 134.49 rubles.
To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@
Last Updated: October 18, 2009 22:00 EDT
VTB Capital: Kudrin: state banks can lend at 8-12% to corporate
VTB Capital
October 19, 2009
current rate stand at 14% - only best borrowers to benefit - margins pressure not to be that high - neutral for the banks
News: Last Friday, the Minister of Finance, Alexey Kudrin stated that state banks are ready to provide loans to corporate borrowers at 8-12% interest rates, depending on the credit quality of the borrower. According to Kudrin, at present, state banks offer loans at 14% interest rate in roubles. Our View: We view the news as neutral for banks. Our understanding is that only the best borrowers can get rates around 12% in the horizon of couple of months, as liquidity remains ample and inflationary pressures remain muted. However, the 8% target would only be possible, if inflation keeps moderating and the re-financing rate is to be continuously brought down to cheapen funding for banks. As for the broader client base, we believe the rates will remain elevated for them, given still high risks in the economy, hence we expect the dilutive effect on margins not to be that high and we believe that it is priced in by the market. For instance, Sberbank's average cost of funding stands at 5.4%, therefore, should rates decline to 12% it would imply narrowing the spread to roughly 7%, which is in line with longer term NIM that Sberbank aims to maintain. We currently model Sberbank's NIM to contract 50bp in 2H09 and another 50bp next year. Dmitry Dmitriev
Public-Private Partnerships to step into funding gaps
19 October, 2009, 06:51
Russia's government will pass a law next year which guarantees the rights of investors in public-private partnerships. It hopes the move will attract funds to rescue companies threatened by bankruptcy.
Public-private partnerships in the West have been constructing the likes of hospitals, schools and roads for more than 40 years. Investors build or run the infrastructure, for a share of the profits. Some P3s have proved lucrative for private partners, some disastrous. But Russia now wants them to kick-start investment, according to Evgeny Glumov, Head of PPP support, at Vegas Lex.
“A federal law next year will for the first time lay out investor rights in P3s. That should bring funds into all parts of the economy.”
Aleksey Savelyev, Deputy CEO, Financial and Organizational Consulting, says new private money is the only thing that will save many firms from going to the wall.
“For companies brought to their knees by the crisis, P3s are a last hope.”
Demand for fresh finance at the moment is vast, and desperate.
Top business daily Kommersant has 4 pages of news, and 27 pages of bankrupt firms selling their assets. Safes, tractors, railway lines are all for sale. Despite spending more of its reserves in the crisis than any other nation, the government needs private cash to rebuild the country.
Russia remains fairly unattractive for investors. Last week saw a year's best 188 million dollars of inflows to national funds. That's two and half times less, than rival emerging economies like Brazil.
VTB Capital: Russian Power Generation: Inter RAO: Loading up Acquisitions
VTB Capital
October 19, 2009
Prime Minister, Vladimir Putin has approved transferring all state-owned stakes in electricity companies to Inter RAO (including those owned by FSK and RusHydro, as a result of the UES breakup and the state-owned: 26% stake in OGK 5 and TGK 5 as well as the 40% stake in Irkutskenergo), Kommersant reports this morning. In order to acquire those stakes, Inter RAO has to issue new shares that will be swapped with the stakes owned by FSK, RusHydro and the State. The swap terms and its further details have yet to be clarified.
We think the news corresponds to Inter RAO's extensive acquisition strategy. The news has also supported the view that Inter RAO enjoys state support and may become the focus of the sector's partial consolidation in the post-reform landscape. We think that based on this move, Inter RAO will take a big step forward towards in reaching its long term strategic goal of becoming a major player on the electricity market.
Swap terms to be the key issue for Inter RAO's valuation. We think that the swap would be arranged at market prices, as it is the simplest way of finding a compromise between Inter RAO's interests and its counterparties. In that case, the transaction would be value creative for Inter RAO, as in most cases the fair value of the stakes to be acquired is above market levels. On the other hand, these assets will not be taken as a free gift, and IRAO will buy them using its new shares as payment.
FSK and RusHydro, on the one hand, will have to report paper losses as the balance value of the stakes they now have to give to Inter RAO, is higher than the market valuation. On the other hand, they will receive Inter RAO stock, instead of the basket of different assets and could capitalise should Inter RAO's share price potentially surge later on.
Overall, if the swap is conducted on market terms, Inter RAO's charter capital will roughly triple. Additionally, its market cap will grow from USD 2.5bn to USD 7.6bn. The state and state-affiliated companies will control 90% of Inter RAO, assuming that minorities fail to exercise pre emptive rights.
We note, however that one of Inter RAO's long term goals, is to sell part of its shares to a foreign utility. We think that once the swap has been completed, the state will have a good opportunity to proceed with.
We stress that IRAO stock may suffer technical holds in trading from mid-November until the end of 2009.
We maintain our bullish view on the story in long run and reiterate our Buy recommendation for the stock.
Reuters: UPDATE 1-Petropavlovsk 9-month gold output jumps 29 pct
Mon Oct 19, 2009 7:34am BST
* Confident of meeting FY target of 500,000 oz of gold
* 9-month output rose to 346,200 ozs helped by Pioneer mine
* 2nd production line at Pioneer successfully commissioned
(Adds details)
LONDON, Oct 19 (Reuters) - Russian miner Petropavlovsk (POG.L: Quote, Profile, Research), formerly Peter Hambro Mining, said its gold production for the first nine months rose 29 percent and that it remained on track to meet its full-year target of 500,000 ounces.
London-listed Petropavlovsk, Russia's third-biggest gold producer, said nine-month output rose to 346,200 ounces helped by significantly higher output from its Pioneer mine.
It said a second production line at Pioneer was successfully commissioned in September and is processing 135,000 tonnes per month of ore.
Cash operating costs for the nine months were in line with the group's forecast.
In April, Petropavlovsk re-acquired iron ore miner Aricom and the combined group began trading on the London Stock Exchange's main market.
(Reporting by Julie Crust; editing by Paul Hoskins)
ShareCast: Petropavlovsk output lower in latest quarter
Mon 19 Oct 2009
LONDON (SHARECAST) - Russia-focused gold miner Petropavlovsk, the new name for Peter Hambro Mning, remains on track to produce 500,000 ounces of gold this year even though output fell in the three months to September.
Total production in the three months to September dropped to 123,600 ounces from 124,300 ounces this time last year. Total production for the year so far is 346,200 ounces, up from 268,900 in the first nine months of 2008.
The group's total attributable gold production for the nine months ended September 2009 increased by 29% compared to the same period in 2008 mainly due to the significant increase in production at the Pioneer mine, the statement said.
Pokrovskiy and Pioneer mines' combined year-to-date gold production increased by 36% to 301,500oz compared to the same period in 2008.
'The success at Pioneer is a strong signal that the plans at Malomir and Albyn can be achieved. In the meantime I am pleased to reaffirm our 500,000oz target for 2009 gold production,' chairman Peter Hambro added.
Steel Guru: Recession reports - Russian steel sector recovery by 2015
Monday, 19 Oct 2009
According to the data issued by the Ministry of Industry and Trade of Russia, the Russian metallurgical industry is expected to reach its pre crisis output level only in 2014 to 2015.
According to the data in question, in 2009 production in the Russian metallurgical industry is expected to decrease by 15% to 17% however, if current state support measures had not been implemented, the extent of the drop could have been 2.5% greater.
Due to the state support measures undertaken by the Russian government to support the domestic metallurgical industry during the period of crisis, the additional output volume in 2009 will amount to 1.1 million tonnes. The main measures in question include the increase of import duties on some types of steel products, the decrease of import duties on scarce types of raw materials, the acceleration of VAT compensation, exclusive railway transportation tariffs for export transportation, the zeroing of import duty on manufacturing equipment, state guarantees, and the refinancing of accounts payable.
The Ministry of Industry and Trade of Russia said that with the help of the support measures, in the current year it has been possible to preserve 1,400 jobs and to complete MMK main investment project i.e the construction of its plate mill 5000.
(Sourced from SteelOrbis)
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Interfax: Norilsk Nickel posts net profit of $439 mln in H1, beating forecast
MOSCOW. Oct 19 (Interfax) - MMC Norilsk Nickel (RTS: GMKN) posted a
net profit of $439 million in the first half of 2009 under International
Financial Reporting Standards (IFRS), down from the profit of $2.682
billion in the first half last year, according to the company's earnings
statement.
Nonetheless, the profit was higher than the consensus forecast of
$355.4 million among analysts surveyed by Interfax.
: UPDATE 1-Norilsk, BHP plan to mine Russian coal from 2015
Published: 18 Oct 2009 16:54:02 PST
* To mine Syradasai deposit in the Arctic
* Initial annual output 8 million tonnes
* Output could rise to 12-15 million tonnes/year
* Processing plant, power plant, port also planned
MURMANSK, Russia, Oct 16 - Norilsk Nickel plans to start mining coal with BHP Billiton in the Russian Arctic from 2015, the first production to result from a three-year-old alliance between the mining giants.
BHP Billiton, the world's largest miner, will join Norilsk in developing the Syradasai deposit in a project that could eventually produce as much coking coal for the steel industry as Russian market leader Mechel produced last year.
Nikolai Matyushenko, deputy director for production development in Norilsk's transport department, said on Friday the project envisaged construction of a processing plant and power station at the deposit.
"From 2015, we intend to mine 8 million tonnes and then to increase it to between 12 million and 15 million tonnes," Matyushenko told reporters on the sidelines of an investment conference. He was referring to annual production.
The Syradasai deposit is about 100 km (63 miles) from the port of Dikson on the Kara Sea, even further north than Norilsk's Arctic nickel, copper and palladium mines.
Matyushenko, who declined to say how much would be invested in the project, said the joint venture partners planned to build a shipping terminal capable of handling vessels with capacity of around 70,000 deadweight tonnes.
Mechel produced slightly more than 15 million tonnes of coking coal in 2008, although it also has plans to increase this total significantly by launching the massive Elga deposit in the far eastern republic of Yakutia.
Raspadskaya, Russia's second-largest coking coal miner, produced 9.4 million tonnes last year, although output was severely hampered by the financial crisis. Quarterly output has since returned to pre-crisis levels.
Russia's other main producer of coking coal in the Arctic is Severstal, the country's largest steel maker, which operates mines in the former Gulag city of Vorkuta.
Barentsobserver: Norilsk-Nickel will open coal mine
2009-10-18
The production starts in 2015 with eight million tons and during the next years it will increase up to 15 million tons annually.
The Syradasai coal deposit is located about 100 km from Dixon on the Kara Sea coast, reports Reuters. The deposits will be jointly developed by Norilsk-Nickel and BHP Billiton.
In comparison, the Russian state owned company Arktikugol extract some 100 000 tons of coal annually from its mine in Barentsburg on Svalbard.
The port will be developed to receive boats up to 70,000 dwt. The nearest bigger reloading terminal for coal will be Murmansk.
Your Metal News: Evraz Acquires Carbofer Metall in Russia
Monday, Oct 19, 2009
Group S.A. (LSE: EVR) (“Evraz”) announces the closing of the deal with Carbofer Group for the acquisition of Carbofer Metall, one the largest Russian steel distribution networks, which Evraz and Carbofer Group was discussing at the time of Evraz’s 1H2009 results announcement.
The acquisition is in line with Evraz’s plans to increase direct sales of its steel products to end customers in Russia.
Carbofer Metall is a Russian network of six steel trading companies having 35 steel service centres located all over the country. In 2008, it shipped 1.2 million tonnes of long products and generated revenues of US$1.07 billion. Evraz sold approximately 25% of its construction products produced in Russia through Carbofer Metall in 2008.
Source: Evraz
The Moscow Times: MMK Buys Control of Belon
19 October 2009
Reuters
Magnitogorsk Iron & Steel Works, or MMK, bought control of Siberian coal miner Belon on Friday, doubling its stake to 82.6 percent to secure stable raw material supplies for the country’s largest steel mill.
MMK said in a statement that supplies from Belon’s mines would provide the bulk of its coking fuel needs, ending the company’s isolation as the only Russian steel major without control of its own coal resources.
It did not disclose the purchase price.
The Federal Anti-Monopoly Service approved the deal earlier Friday.
“This transaction brings MMK’s self-sufficiency in strategically important input materials to a new level,” Viktor Rashnikov, MMK’s majority owner and chairman, said in the statement.
Magnitogorsk is Russia’s third-largest steel maker, after Severstal and Evraz Group, and operates the country’s largest single steel plant. Unlike its peers, MMK was required until now to buy its coking coal on the open market — an advantage when raw material prices are low, but increasingly costly when they rise.
MMK has gradually built up its stake in Belon after first entering the Novosibirsk-based miner as a minority shareholder. It already owned 41.3 percent before buying out its partner, Belon chief executive Andrei Dobrov, on Friday.
Reuters data showed that an 82.6 percent stake in Belon would be worth $682 million at current prices. MMK would therefore have paid half of this amount, $341 million, to double its stake if it paid market price.
Magnitogorsk now owns 100 percent of Onarbay Enterprises, which in turn owns 82.6 percent of Belon Group. The other 17.4 percent of Belon’s stock is in free float.
The deal was announced after markets closed in Moscow. Belon closed down 1.9 percent, in line with a 1.8 percent drop on the wider MICEX Index.
MMK said it would continue to implement Belon’s investment program. The miner produced 5.5 million tons of coal last year, including 2.9 million tons of coking coal, and posted a net profit of $124 million. Belon is also a steel trader.
M&C: Swiss firm ABB says working in Russia getting more expensive
Business News
Oct 19, 2009, 7:48 GMT
Geneva - Swiss engineering firm ABB said Monday that it was reassessing its business model in Russia, owing to the 'challenges of doing business' in that country.
The cost of operating in Russia was said to be on the rise, including the impact of changing tax structures, a statement said. Third-quarter accumulated profits were expected to see a related increase in tax charges.
The company expects to announce net third quarter income of approximately 1 billion dollars.
This was also expected to be impacted by a recent European Commission decision, which found the company was involved in anti- competitive activity, resulting in a fine of nearly 50 million dollars.
ABB, which works in power and automation technologies, releases its third quarter results later this month.
Reuters: UPDATE 1-Amur gets approval for Maly Krumkon reserves
Mon Oct 19, 2009 4:07am EDT
* Amur shares jump 28 pct, have jumped 5,500 pct this year
* Kun-Manie reserves estimated at 171,296 tonnes of nickel
* By-product reserves also approved
(Adds details, share price)
LONDON, Oct 19 (Reuters) - Amur Minerals Corp (A7L.L: Quote, Profile, Research, Stock Buzz) said Russia approved the reserve estimate for Maly Krumkon, part of the exploration company's flagship Kun-Manie nickel copper project, lifting the group's shares as much as 28 percent.
Reserves for three deposits within Kun-Manie are estimated at 171,296 tonnes of nickel and 47,023 tonnes of copper on a JORC basis.
Cobalt, platinum and palladium by-products have also been approved for all three deposits by Russia's State Committee on Reserves.
Shares in Amur have soared more than 5,500 percent this year and were up 17 percent at 9.65 pence at 0757 GMT.
(Reporting by Julie Crust; editing by Victoria Bryan)
Bloomberg: Nissan May Make Small Sedans With AvtoVAZ From 2012, Kyodo Says
By Finbarr Flynn
Oct. 17 (Bloomberg) -- Nissan Motor Co., Japan’s third- largest automaker, may make small sedans in Russia from 2012 in partnership with OAO AvtoVAZ, Kyodo News said.
Yokohama-based Nissan and AvtoVAZ may produce 70,000 vehicles a year at a factory in central Russia, Kyodo said, citing an official at AvtoVAZ, Russia’s biggest carmaker.
AvtoVAZ said yesterday it plans to invest about 240 million euros ($358 million) with Nissan and Renault SA to revamp production and make five new models. AvtoVAZ will introduce two Renault models, one Nissan model and two under its own Lada brand starting in 2012, according to Igor Burenkov, a spokesman for the Russian carmaker.
Renault, whose Chief Executive Officer Carlos Ghosn also heads Nissan, paid $1 billion for 25 percent of AvtoVAZ in 2007 and is discussing its role in a recovery plan with other shareholders, including the Russian government.
A phone call to Nissan’s head office outside regular business hours today wasn’t answered.
To contact the reporter on this story: Finbarr Flynn in Tokyo at fflynn3@
Last Updated: October 16, 2009 22:18 EDT
Russia Today: Cheap gas helping fertilizer producers plan for longer term
19 October, 2009, 08:14
Fertilizer Sales will fall next year, according to the industry's international trade body. But the introduction of cheaper products means business is booming for some.
In troubled times everyone is searching for ways to save money. That’s why sales of nitrogen fertilizers which are cheaper than the rest, are holding up despite falling demand in the fertilizer industry. Mikhail Korovkin, a foreman at a fertilizer plant in central Russia believes business hasn’t been hurt that much.
“We haven’t really felt the crisis. Unloading is continuing at pretty much the same rate.”
Russian fertilizer companies are able to retain competitive pricing mainly because of cheap gas. It comprises up to 80% of the end cost of fertilizers, but Vladimir Bespalov, analyst at VTB Capital, warns this advantage can be lost quickly.
“Domestic gas prices will go up, and this will erode their competitive advantage. So, they need to develop new value added products to be competitive on international markets in the future. Exports represent a large portion of sales of domestic fertilizer producers.”
In an effort to support the industry, the state, earlier this year, abolished export duties.
Russian company, EuroChem, one of the world’s top ten fertilizer producers, has launched the production of calcium-ammonium nitrate, which has a stricter safety standard and can be sold in Europe. Technical Director at Eurochem, Aleksandr Tugolukov, says that means higher margins.
“We’re switching from far-away low-margin markets to the more profitable European one. There we’ll be earning at least an extra hundred dollars per tonne.’
The Moscow Times: TMK Loses $204M In H1, Sales Slump
19 October 2009
Combined Reports
TMK, the country’s largest producer of steel pipes for the energy sector, swung to a first half net loss of $204 million and said Friday that while domestic demand would recover this year, U.S. sales would not.
The company’s auditors said there were doubts about TMK’s ability to “continue as a going concern” after it posted the loss and current liabilities exceeded assets by nearly $1 billion.
“Uncertainty and instability” in global markets have hurt the company in “all of its operating segments,” auditors Ernst & Young said in TMK’s first half results. TMK said it has a “realistic plan of action” to handle the situation.
Company spokesman Alexei Sotskov referred to a section of the report where the auditors said “the management has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future” as well as a “realistic plan of action.”
But TMK, which became a major player in the U.S. market with the $1.25 billion purchase of IPSCO’s assets there last year, doesn’t expect the investments to bear fruit until next year.
“As long as such a high level of inventories remain on the ground and gas prices remain depressed, we don’t expect to see a significant demand recovery before the second quarter of 2010,” the company said.
The pipe maker, controlled by Dmitry Pumpyansky, also said adjusted earnings before interest, taxation, depreciation and amortization totaled $113 million in the first half, compared with $408 million a year earlier, and were below the $124 million forecast in a Reuters poll of analysts. But the net loss beat estimates, as analysts had predicted a $227 million deficit.
New orders at steel pipe makers dried up after oil prices plummeted from sky-high levels near $150, forcing global energy majors to postpone most new projects.
First half sales totaled $1.48 billion, down 38 percent from $2.37 billion a year ago. Net debt at the end of the first half was $3.56 billion, up 16 percent from the end of 2008.
The company did not provide any financial guidance, but it scheduled a conference call for Monday.
TMK’s first half sales in the domestic market, which accounted for 68 percent of revenues, declined to $814 million from $1.06 billion last year. In addition, the situation is improving in TMK’s core market, where sales of oil and gas as well as other pipes are expected to show a “visible recovery” in the second half of 2009.
TMK’s aggressive expansion into the U.S. market did not pay any dividends in the first half, where average selling prices slumped 20 percent from the July-December period last year.
Revenues amounted to $286.5 million, but TMK did not publish a year-earlier comparative figure.
The IPSCO acquisition was partly responsible for TMK’s sizeable debt burden, but it has increased the share of its long-term debt to 46 percent as of June 30, compared with 31 percent at the end of 2008.(Reuters, Bloomberg)
Activity in the Oil and Gas sector (including regulatory)
OCTOBER 19, 2009, 2:00 A.M. ET
WSJ: Venezuela,Russia,Iran Seek To Replace Dlr Pricing Of Oil-Report
MOSCOW (Dow Jones)--Russia, Venezuela and Iran have proposed replacing the dollar as the currency for oil transactions, Venezuelan President Hugo Chavez was quoted as saying by a Prime-Tass report.
"We have discussed this matter within OPEC, and several countries, including Venezuela, Russia and Iran, have also proposed this idea," Chavez said in Bolivia Saturday, according to the report.
On Oct. 6, the Independent newspaper reported that a number of the world's biggest oil producing countries were planning to denominate oil transactions using a basket of their own currencies instead of the dollar.
The report was refuted by top officials from several countries, including Russian Deputy Finance Minister Dmitry Pankin.
Newspaper Web site: prime-tass.ru
-By Moscow Bureau, Dow Jones Newswires; +7 495 937 8445
Reuters: LUKOIL says Conoco has no plans to sell stake-Ifax
Mon Oct 19, 2009 1:25am EDT
MOSCOW, Oct 19 (Reuters) - ConocoPhillips (COP.N: Quote, Profile, Research, Stock Buzz), has no plans to sell its stake in partner LUKOIL (LKOH.MM: Quote, Profile, Research, Stock Buzz) so far, the head of the Russian oil major was quoted as saying on Monday.
"I met ConocoPhillips' President last week and we have discussed the issue... Neither the board of directors (of Conoco) nor the management have so far considered selling the stake," Interfax agency quoted Vagit Alekperov, the head and co-owner of Russia's No. 2 oil producer, as saying.
Conoco said earlier in October it will cut its 2010 capital budget by 12 percent and sell off $10 billion in assets in the next few years to improve its financial position. [ID:nN07511529]
Conoco's statement has ignited speculation regarding the assets it could sell and analysts said it could halve its 20 percent stake in LUKOIL. [ID:nL8506826] (Reporting by Dmitry Sergeyev; Editing by Hans Peters)
Reuters: LUKOIL, Conoco up output target in Iraq W.Qurna bid
Sun Oct 18, 2009 3:09am EDT
ISTANBUL, Oct 18 (Reuters) - A consortium of LUKOIL (LKOH.MM: Quote, Profile, Research, Stock Buzz) and ConocoPhillips (COP.N: Quote, Profile, Research, Stock Buzz) has a submitted a higher oil production target in their bid to develop the first phase of Iraq's West Qurna oilfield, an industry source said on Sunday.
The group had previously put forward an output target of 1.5 million barrels per day (bpd), below the target of a rival consortium led by U.S. firm Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz), which had proposed a target of 2.1 million bpd. (Reporting by Simon Webb; Writing by Mohammed Abbas: Editing by Alex Richardson)
OCTOBER 18, 2009, 5:08 A.M. ET
WSJ: UPDATE: Lukoil Submits New Bid For Iraqi Oil Field-Official
(Adds comment, more details.)
ISTANBUL (Dow Jones)--Competition is hotting up for rights to develop one of Iraq's largest oilfields after Russia's oil giant Lukoil (LKOH.RS) submitted this weekend an improved offer and accepted the government's production sharing terms, an official said.
"Lukoil submitted Saturday a new proposal for West Qurna-1," an Iraqi oil official involved in negotiations with international companies told Dow Jones Newswires Sunday.
Lukoil is competing against Exxon Mobil Corp. (XOM) for the field, the official said.
Iraq is offering international oil companies a rare chance to gain a foothold in one of the world's largest deposits of crude at a time when few opportunities exist for private investors to exploit Middle East oil. In the Middle East, the industry is mainly controlled by state oil companies.
Lukoil is said to have raised the production plateau for the West Qurna-1 field in its new proposal and the company expects a decision by the Iraqi oil ministry on Monday or Tuesday, an industry official, with knowledge of the matter, said.
The Russian company is partnering ConocoPhillips (COP) in the bid. Lukoil is now the second international oil company after Exxon to accept Baghdad's $1.90 a barrel payment fee for West Qurna, the most sought-after field in the country's first postwar petroleum round held at the end of June this year.
Senior officials from Iraq's oil ministry started Sunday a two-day workshop in Istanbul briefing representatives from around 30 international oil companies, including the world's biggest majors, about new oil and gas fields open for auction in December.
Officials familiar with the proposals say Lukoil has raise its production plateau for West Qurna-1 after Exxon set a rate of 2.1 million barrels a day.
"The ministry is expected to give an answer to Lukoil's new proposal either Monday or Tuesday," the industry official said.
The Iraqi cabinet Friday ratified a deal with BP PLC (BP.LN) and China National Petroleum Corp., or CNPC, to develop Rumaila, Iraq's largest producing oil field, in southern Iraq. Final signature of the $15 billion contract is expected to be within few days, Iraqi oil ministry officials said.
Iraq has also awarded recently the giant Zubair oil field in southern Iraq to a consortium led by Italy's Eni.
-By Hassan Hafidh; Dow Jones Newswires; + 962 799 831 831; hassan.hafidh@
Copyright (c) 2009 Dow Jones & Co.
Gazprom
This Day Online: Oando Signs MoU with Gazprom on Gas Devt
By Ejiofor Alike, 10.19.2009
Oando Plc has announced the signing of a Memorandum of Understanding (MoU) with Russia’s energy giant, Gazprom to jointly develop projects in multiple sectors of Nigeria’s oil and gas industry.
Head of Corporate Communications of Oando Plc, Mr. Meka Olowola, said in a statement at the weekend that under the MoU, Oando and Gazprom agreed to collaborate in the development of oil and gas infrastructure in Nigeria and the entire Gulf of Guinea.
According to the statement, the Group Chief Executive of Oando Plc, Mr. Wale Tinubu, said the collaboration was another significant milestone for Oando in its commitment to attain world-class gas solutions delivery in sub-saharan Africa.
“The Gazprom partnership will provide the leverage to further accelerate our gas development programme, with us providing local technical expertise driven by the experience of developing pipeline infrastructure and our excellent execution capabilities, whilst Gazprom brings its wealth of experience as Europe’s largest gas operator, an arrangement that will redefine the oil & gas industry and bolster local capacity,” Tinubu said.
“This is also consistent with Oando’s strategic diversification programme, which mitigates the company’s exposure from today’s economic climate and provides diverse revenue mix for the company thereby enhancing shareholder value,” he added.
Gazprom is a globally renowned energy player with vast experience in exploration, production, transportation and refining of oil, gas and other hydrocarbons.
Oando is Nigeria’s foremost energy group with investments and subsidiaries spanning the energy entire value chain, including exploration and production; oilfield services; gas and power; international supply and trading and marketing.
: Gazprom in tie-up with Nigerian company
By Tom Burgis in Port Harcourt
Published: October 19 2009 02:26 | Last updated: October 19 2009 02:26
Gazprom, Russia’s state-controlled gas group, has formed an alliance with one of Nigeria’s leading petroleum companies, advancing its increasingly significant interests in energy-rich West Africa.
The partnership will see Gazprom and Lagos-based Oando “collaborate in the development of oil and gas assets and infrastructure in the West African sub-region and the Gulf of Guinea,” the Nigerian group said in a statement on Sunday.
The companies did not put a figure on the amounts they might spend together but both have recently committed billions of dollars to tapping the region’s under-exploited energy potential.
Nigeria’s vast oil reserves have been exploited for half a century but much of its gas stocks – among the world’s largest – remains untapped.
The government of Umaru Yar’Adua, president, has designed a “gas masterplan” aimed at using more of the bounteous reserves to address Nigeria’s chronic electricity shortages.
In June Gazprom announced a $2.5bn joint venture with Nigeria’s state-owned oil company to explore and develop natural gas resources.
Gazprom has signalled its willingness to participate in a grand project to build a gas pipeline from Nigeria, across the Sahara, to Europe, for which capital costs are estimated at $10bn.
The Russian group’s strengthening ties to sub-Saharan Africa’s biggest energy producer have alarmed European groups and governments. Gazprom already exerts pressure over European states increasingly dependent on Russian gas for power.
In Oando, which is fast expanding from its base as a refined fuel products importer and marketer into producing, refining and transporting oil and gas, Gazprom has found one of Nigeria’s most ambitious energy companies.
Earlier this month it won a $1bn contract to harness gas from the deepwater Jubilee oilfield in Ghana, one of the region’s most prospective oil developments.
The company is in the midst of a 200bn Naira capital raising to fund expansion and acquisitions that Wale Tinubu, chief executive, told the Financial Times in August could turn the group into an “African major”.
Nigeria’s petroleum sector is dominated by western groups led by Royal Dutch Shell and Total of Europe and ExxonMobil and Chevron of the US.
But in recent months the government has shown its willingness to forge new relationships, inking the Gazprom agreement and holding talks with CNOOC, one of China’s big three state-owned energy companies, over its proposals to buy as much as one-sixth of Nigeria’s crude reserves.
Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from and redistribute by email or post to the web.
Telegraph.co.uk: Gas compnay Gazprom on brink of sealing tax breaks
Gazprom, the world's biggest gas producer, is on the brink of finalising substantial tax breaks in customs and mineral extraction duties as part of talks with several foreign oil majors about developing its Siberian fields.
By Rowena Mason
Published: 7:45PM BST 17 Oct 2009
Alexander Medvedev, deputy chairman of Gazprom and director-general of exports, said the Russian state-owned group would invest more next year than the last three years but finding foreign partners to work in the country's Yamal region is a "strong priority".
"The Russian government is preparing all the necessary measures to be applied," Mr Medvedev said, in an interview with The Sunday Telegraph. "There are many different measures including lower customs duty, taxes on mineral extraction and other conditions. It will be finalised in the near future."
The gas producer, majority owned by the Russian state, is already in talks with Spanish oil company Repsol and is believed to have shortlisted Shell and Total as part of its drive to bring Western money into the region.
Gazprom's approach to foreign investment is a considerable change of strategy. Only three years ago, Shell, the world's biggest oil company, was forced to give up control of the giant Sakhalin development, handing over half of its interest to Gazprom after a dispute over costs and the environment.
TNK-BP, the joint venture between BP and four Russian oligarchs, was forced to transfer Kovykta, another giant gasfield, to Gazprom. The then president Vladimir Putin also imposed laws restricting foreign ownership of energy assets. However, Gazprom's turnaround comes after Mr Putin, now Russia's prime minister, invited 10 foreign oil majors, including Royal Dutch Shell, Total, of France, and E.ON, of Germany, to Siberia last month in an attempt to woo their expertise and capital.
Gazprom estimates that the Sakhalin island gas field contains 16 trillion cubic metres – 10 times the size of the UK's remaining North Sea reserves – but will need £100bn of investment for it to reach its potential output.
Analysts have speculated that Russia's mellowing towards Western oil majors in recent months has been caused by a dramatic 22pc drop in output from 550 bcm in 2008 to between 450 this year, because of depressed demand.
Although Gazprom claims its investment will rise next year, its capital expenditure for 2009 has dropped by 17pc to Rbs761bn ($25.4bn) and borrowing is up by $6.8bn. But Mr Medvedev insisted that Gazprom's finances have not been badly hit by the recession and a decline in demand in Europe and Russia for natural gas. "This slowdown is only a temporary one. It gives us more time to prepare for future growth."
Gazprom has been making slow progress in developing the energy-rich Yamal peninsula in Siberia, where it hopes to find enough resources to double gas exports by 2030. "Yamal is our major source of future upstream resources, where we have 50pc of all Gazprom development," he said.
Mr Medvedev, who would not answer questions about Russia's volatile energy partnership with the Ukraine that led to tightening global supply last winter, said Europe could not afford to ignore the potential of Russia both as a place for investment and as a major exporter. He said the planned Nord Stream pipeline through the Baltic Sea and South Stream pipeline through the Black Sea to the Baltic states and Italy, are the best answer for stabilising Europe's energy security, bypassing Ukraine. EDF, the French nuclear power company, is already in talks about taking a minority stake in the South Stream project, as Gazprom tries to hit ambitious targets to have the pipeline ready by 2015 and Nord Stream by 2012.
But the European Union, anxious about the dependence on Russian gas supply, is sponsoring a rival pipeline through Turkey called Nabucco. Mr Medvedev said Gazprom was relaxed about the threat of Nabucco, which has yet to sign any deals about a supply sources.
The Sakhalin fields, where Gazprom hopes to produce more liquefied natural gas (LNG), is part of the company's drive to achieve a greater balance between pipeline and storage gas. Under pressure from rival LNG suppliers, such as Qatar, Gazprom is targeting a 20pc share of the storage gas market over the next decade, allowing it to transport gas further afield.
Mr Medvedev said. "LNG gives us a huge opportunity to expand into other countries. We will be a major player in the LNG market in 2020 but it is no threat to pipeline gas."
Gazprom is also hoping to expand in the UK, where it has operations in Manchester and Kingston, in southwest London, mostly supplying small and medium-sized businesses.
"Our goal is to get 10pc of the UK market," Mr Medvedev said.
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