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Russia 110503Basic Political DevelopmentsAmbassadorial meeting of the NATO-Russia Council will be held in early July in SochiRussian diplomat: Osama bin Laden killing does not mean victory over al QaedaTalks on WTO and proceeding successfully - Georgian MFA: Georgia-Russia talks on Moscow’s WTO entry terms have moved to the stage of discussing “very serious concrete matters on substantive issues, which in itself is a positive step,” Nino Kalandadze, the Georgian deputy foreign minister, said on Monday.CIS special services to conduct large-scale anti-terror drill in KyrgyzstanCanadian observers begin flights over Russia under Open Skies TreatyRussia to deliver helicopters to Peru next week - "Three Russian helicopters will be delivered to Peru on May 9 and 10 and then sent to fight illegal drugs trafficking in the VRAE region (Valley of the Apurimac and Ene River), said Thorne to the press, according to Novosti news agency.Russia to deliver 3 combat helicopters to Peru next week - Last July, the Peruvian Defense Ministry and Russian state-controlled arms exporter Rosoboronexport signed a contract for the sale of six Mi-171Sh Hip transport and two Mi-35P Hind E attack helicopters to the South American country. The deal is estimated at $107.9 million.Nadezhda sailing ship sets for expedition to check radiation in Sea of Japan - Specialists from the Nadezhda vessel will check radiation background levels in air, water and in sea fauna at various areas of the Sea of Japan. The results, along with data from the Pavel Gordiyenko ship, will help get a clearer picture of the radiation situation after the Fukushima accident.Russia to appoint new team of Mistral deal negotiators - "New representatives will take part in the next round of Russian-French Mistral talks," the source said. "At the moment, they are receiving the necessary documentation on the contract."Russian naval ships to visit Singapore, IndonesiaRussian Ships Sail Off For Visits To Singapore And Indonesia - Among the ships are the Admiral Panteleyev destroyer and the Fotiy Krylov rescue tug, a spokesman for the Pacific Fleet told the Russian news agency Itar-Tass.Sukhoi conducts first flight of Su-35S fighter jetArmenian, Russian NGOs to unite - A Union of Armenian-Russian NGOs will be established in ArmeniaReports: Russian officer who blew whistle on US spy ring charged with high treason - Russian media said Poteyev fled to the U.S. just before the arrests were announced.Intellectual piracy rampant in Russia – report: Russia and China do not protect intellectual property rights at a sufficient level, US Trade Representative Ron Kirk announced on Monday.Chechen mufti dismisses U.S. commission's criticism of lack of religious freedom in republicRussian president legalizes order of determining terrorism threatAmendments to Russian law on countering terrorism - provides for establishing terrorist threat levels that would call for some extra moves to ensure personal, public and state security against terrorist threats. The levels are due to be determined by the President. The new law will makes it possible to timely react to the threat of terrorist attack.Search under way for militant who could be used to commit terror act on Umarov's orders (Part 3)At least 2 militants killed in police operation in Chechnya - KadyrovChechen charged with terrorism for allegedly assembling letter bomb for Danish dailyCentral Moscow blast injures police officer36 wildfires ravaging on about 500 hectares in Siberia30,000 Chechens without electricityNew Bridge for Kaliningrad - Russia and?Lithuania have agreed to?jointly fund construction of?a new bridge connecting Kaliningrad with Lithuania, Kaliningrad Governor Nikolai Tsukanov said Sunday.APEC facilities construction changes Vladivostok Gen PlanLukoil executive's daughter found dead near MoscowLukoil top manager's daughter killed shortly after disappearing – sourceFormer colleague of anti-corruption lawyer Magnitsky faces arrestYandex divulges info on Russian anti-corruption crusaderNavalny Donors Fret About FSB 'Leak' Luzhkov Applies for U.S. Visa Unknown actress earns ?23million - nearly double Angelina Jolie's wages - Larisa Belobrova, an unknown stage and film actress, has reported earnings almost double that of Hollywood star Angelina JolieApril NPP chronicle - RBMK units hiccup in Russia, a bird shuts down a reactor in Ukraine - A three-day outage at Kursk NPP; Operating load reduced at Leningrad NPPRIA Russian Press at a Glance, Tuesday, May 3, 2011Moscow Aims to Have One of World’s Top Five Militaries - Posted By Andriy TsintsirukRussia Fighting to Save Arms Sales to the Middle East - Posted By Ariel CohenRussia 'only obstacle' to peace in Caucasus - News.Az interviews Azerbaijani political scientist Vafa Guluzade, a former presidential adviser on foreign policy.High-Level Trips Underscore Serbia’s Importance to Russia - By: Stephen BlankKremlin Got Tip on Bin Laden’s Death - By Nabi AbdullaevDeath of bin Laden is a 'Dasayev moment' - While officials from the Kremlin and the foreign ministry applauded the news, some newspapers took a more sceptical line.Al Qaeda in Russia - By Ivan Yegorov Medvedev's New U.S. Role Model - It is fully possible that Obama’s decision to run for re-election inspired Medvedev to seriously consider doing the same. During an interview on Chinese television on April 12, Medvedev promised to make an official announcement about his intentions in the nearest future. By Mark FeyginNational Economic TrendsRussian Manufacturing Growth Has Largest Monthly Fall Since 2008Russian Barley Leads Grain Price Decline Last Week, SovEcon SaysRussia banks up bids for cbank repo after rate riseState's role in Russian bank sector continues to grow Business, Energy or Environmental regulations or discussionsSeverstal, Rosneft and Lukoil: Russian Stock Market PreviewRusHydro Agrees With China State Grid to Seek Hydro, Renewables ProjectsFederal Grid Gains First Day in Four After Posting 2010 ProfitRussia's FSK adjusted net profit up 63 pct in 2010Polymetal Slides 1st Day in 3 After Silver Drops Most Since 2008Petropavlovsk board seeks mandate to raise borrowing limit to $1.5 blnRussian billionaire readies an offer for Warner Music Russian company to manufacture robots in Estonia Alfa puts $1bn price tag on its 25% stake in Russia's CTC Media Activity in the Oil and Gas sector (including regulatory)Russia reimposes duty on Kyrgyz fuel importsGE Technology Helps Drive Russia Oil and Gas Industry - One of the world's leading oil and gas companies, LUKOIL, will use GE's innovative aeroderivative technology to provide additional energy for its operations in Astrakhan, Russia, continuing GE's history of growth in the region. GazpromNegotiations to amend 10 year natural gas deal start with Russians - Mr Yuriy Boyko energy minister of Russia traveled to Moscow for a meeting with Mr Alexei Miller CEO of Gazprom begin the talks. The talks are a breakthrough after Russia has been refusing to discuss even the idea of amending the agreement over the past 12 months.Gazprom To Drill First Sakhalin-3 Production Well This Year KazRosGas was defined in charge of Imashevskoye gas field------------------------------------------------------------------------------------------Full Text ArticlesBasic Political DevelopmentsGOOGLE TRANSLATIONAmbassadorial meeting of the NATO-Russia Council will be held in early July in Sochi 11:11MOSCOW, May 3 - RIA Novosti. NATO and Russia plan to hold an ambassadorial meeting of Russia-NATO Council in early July in Sochi, said Russia's permanent representative to the North Atlantic Treaty Organization, Dmitry Rogozin, on Tuesday during a videoconference with students at Moscow State Linguistic University."We hope to have this meeting is not in Brussels, the Russian Federation in Sochi, " - said the envoy.Rogozin did not specify what issues will be discussed at the meeting.Russian diplomat: Osama bin Laden killing does not mean victory over al QaedaToday at 11:37 | Interfax-Ukraine Moscow, May 3 (Interfax) - The elimination of the world's most wanted terrorist Osama bin Laden does not mean victory over al Qaeda, the deputy director of the Russian Foreign Ministry's department for general European affairs, Yury Gorlach, said in Moscow. "It is necessary to remember all the time that the liquidation of one leader does not mean victory over this entire terrorist network," he said.The Russian diplomat also advised against slowing down the pace of the counter-terrorism fight."There is no time to relax," he said. Read more: on WTO and proceeding successfully - Georgian MFA 03 May 2011 07:43 GMT | 9:43 Local TimeTbilisi hails WTO talks with Moscow.Georgia-Russia talks on Moscow’s WTO entry terms have moved to the stage of discussing “very serious concrete matters on substantive issues, which in itself is a positive step,” Nino Kalandadze, the Georgian deputy foreign minister, said on Monday.The Georgian and Russian negotiators concluded second round of the Swiss-mediated talks on April 29 and agreed to continue talks in late May.“Talks and proceeding successfully,” Kalandadze said. “[Talks] are encouraged by the both sides.”She declined to discuss the details, citing a deal with the Russian side not to speak about the concrete issues amid ongoing negotiations.Civil Georgia05/03 10:31 ? CIS special services to conduct large-scale anti-terror drill in Kyrgyzstan observers begin flights over Russia under Open Skies Treaty 03/05/2011A group of Canadian observers will begin a series of inspection flights over Russian territory under the Open Skies Treaty on Tuesday, a spokesman for the Russian Defense Ministry said."The flights will be along the route coordinated earlier with Russian specialists, who will be on board of the aircraft monitoring implementation of agreements on the use of technical equipment for the observation," the spokesman said.The C-130 Hercules aircraft being used was earlier approved and certified by international experts and specialists, including from Russia.The Open Skies Treaty, signed in 1992 at the initiative of U.S. President George H.W. Bush, established a regime of unarmed aerial observation flights over the territories of its 34 member states to promote openness and the transparency of military forces and activities.The treaty entered into force on January 1, 2002 and its regime covers the national territories (land, islands, and internal and territorial waters) of all the treaty signatory states. It is an important element of the European security structure.MOSCOW, May 3 (RIA Novosti)May 2, 2011 [ 22:53 ]Russia to deliver helicopters to Peru next week's Air Force will receive next week three Russian combat helicopters intended for military operations against drugs trafficking and terrorism, announced Defense Minister Jaime Thorne.Last July, the Ministry of Defense and Russian state-controlled arms exporter Rosoboronexport signed a contract for the sale of six Mi-171Sh Hip transport and two Mi-35P Hind E attack helicopters. The deal is estimated at $107.9 million."Three Russian helicopters will be delivered to Peru on May 9 and 10 and then sent to fight illegal drugs trafficking in the VRAE region (Valley of the Apurimac and Ene River), said Thorne to the press, according to Novosti news agency.The minister added that Peru "hopes to fulfill the contract with Russia by the end of the year and receive the remaining three helicopters." Last month Russia delivered to Peru two Mi-35P Hind E attack helicopters.Peru is one of South America's main cocaine producers along with Bolivia and Colombia. The VRAE region was declared a zone of military operations in August 2009 as fighting between the government troops and the Shining Path Maoist terrorist group intensified.Shining Path is believed to have strong ties with drug traffickers. The group is on the U.S. and EU lists of terrorist organizations.Russia to deliver 3 combat helicopters to Peru next week 03/05/2011The Peruvian Air Force will receive next week three Russian combat helicopters intended for military operations against drugs trafficking and terrorism in the South American country, Peru's defense minister said.Last July, the Peruvian Defense Ministry and Russian state-controlled arms exporter Rosoboronexport signed a contract for the sale of six Mi-171Sh Hip transport and two Mi-35P Hind E attack helicopters to the South American country. The deal is estimated at $107.9 million."Three Russian c helicopters will be delivered to Peru on May 9 and 10 and then sent to fight illegal drugs trafficking in the Valley of the Apurimac and Ene River," Defense Minister Jaime Thorne said.The minister added that Peru "hopes to fulfill the contract with Russia by the end of the year and receive the remaining three helicopters."Last month Russia delivered to Peru two Mi-35P Hind E attack helicopters.Peru is one of South America's main cocaine producers along with Bolivia and Columbia. The Valley of the Apurimac and Ene River was declared a zone of military operations in August 2009 as fighting between the government troops and the Shining Path Maoist guerilla group intensified.Shining Path is believed to have strong ties with drug traffickers. The group is on the U.S. and EU lists of terrorist organizations.MEXICO, May 3 (RIA Novosti)05:34?03/05/2011Top NewsNadezhda sailing ship sets for expedition to check radiation in Sea of Japan, May 3 (Itar-Tass) —— The Nadezhda sailing vessel of the Nevelsky State Naval University on Tuesday sailed off from the Russian Far Eastern port of Vladivostok for an expedition to the Sea of Japan (Eastern Sea) to check the radiation situation after the accident at Japan’s Fukushima nuclear plant.The mission is sponsored by the Russian Geographical Society under the same program as is performed by Pavel Gordiyenko research vessel currently on a mission in the Pacific.Specialists from the Nadezhda vessel will check radiation background levels in air, water and in sea fauna at various areas of the Sea of Japan. The results, along with data from the Pavel Gordiyenko ship, will help get a clearer picture of the radiation situation after the Fukushima accident.Nadezhda will return home in late May and then sail out for a training voyage to the settlement of Plastun in the Primorsky territory. Later on, the vessel will be repaired and upgraded as part of the program of preparations for the Pacific voyage timed to coincide with the Asia-Pacific Economic Cooperation summit in 2012.A comprehensive expedition of the Russian Geographical Society on board the research vessel Pavel Gordiyenko began on April 22. The vessel sailed off from Vladivostok to study the radiation situation near the shores of Russia's Far East. The ship will sail through the strait between the Japanese islands of Honshu and Hokkaido, along the Kuril Islands and to Petropavlovsk-Kamchatsky. Measurements of the radiation background will be made along the way and meteorological data will be gathered.Nadezhda, a three-mast sailing ship, was built at the Gdansk shipyards in 1991 to the design of sailing vessels of the early 20th century. It is a training vessels for students of nautical universities in the Russian Far East.Nadezhda’s nautical biography contains dozens of expeditions and cruises to various regions of the World Ocean. In 2003, the ship sailed off Vladivostok to carry out global cruise devoted to 200th anniversary of the first Russian around-the-world cruise performed by Ivan Kruzenshtern and Yury Lisiansky on sloops Nadezhda and Neva. Through 14 months of the cruise the ship covered about 45,000 nautical miles and visited 30 ports of 20 countries.Nadezhda is a multiple winner and awardee of international regattas.Russia to appoint new team of Mistral deal negotiators 03/05/2011MOSCOW, May 3 (RIA Novosti) - The Russian Defense Ministry will appoint a new team of negotiators to a possible $1.5 billion deal to buy Mistral-class helicopter carriers from France, a ministry source told RIA Novosti on Tuesday.Under the deal, Russia and France will co-build two Mistral-class helicopter carriers at France's shipbuilding yard at Saint Nazaire, while another two Mistrals will be built in Russia's St. Petersburg."New representatives will take part in the next round of Russian-French Mistral talks," the source said. "At the moment, they are receiving the necessary documentation on the contract."Two key negotiators - former senior Navy official Nikolai Borisov and first deputy defense minister, Vladimir Popovkin - were relieved of their duties in late April. Borisov was reportedly dismissed for "internal reasons," while Popovkin is to head Russia's federal space agency, Roskosmos.The source was unable to disclose who would sit on the new team. The contract came close to collapse last year over how much technology France was prepared to share with Russia, but the issue was ironed out at negotiations in January."The replacement of the negotiation team is just a technicality," the defense ministry source said. "The negotiation process has made great progress, and the sides are well aware of each other's stance. The question now is whether France will sell Russia ships with all systems and equipment."Mistral-class amphibious assault ships are capable of carrying up to 16 helicopters, four landing craft and 450 personnel.Russian naval ships to visit Singapore, Indonesia 3, 2011 06:52 Moscow TimeAn anti-submarine ship and a rescue tugboat from Russia’s Pacific Fleet are heading for Singapore and Indonesia. The Admiral Panteleyev and?Fotii Krylov are scheduled to reach their first destination on May 16 to take part in IMDEX-2011 international arms show. On May 20 the two ships will head for the Indonesian port of Macasar for participation in a joint anti-piracy drill with the Indonesian Navy. May 03, 2011 15:29 PMRussian Ships Sail Off For Visits To Singapore And Indonesia, May 3 (Bernama) -- A detachment of Russian Pacific Fleet ships on Monday sailed off the Russian Far Eastern port of Vladivostok for visits to Singapore and Indonesia.Among the ships are the Admiral Panteleyev destroyer and the Fotiy Krylov rescue tug, a spokesman for the Pacific Fleet told the Russian news agency Itar-Tass.The ships will reach Singapore on May 16, and will take part in the international maritime defence exhibition IMDEX-2011.In 2009 the Varyag missile cruiser called at the Singapore port for a similar mission," the spokesman said.The Russian ships will stay in Singapore till May 20 and later will set a course for Indonesia to pay informal visit to Makassar port on May 25-27. Russian and Indonesian mariners will hold scheduled joined anti-piracy drills.Recall that the crew of Admiral Anteleyev was protecting commercial shipping in the Gulf of Aden from April 27 till June 7, 2009.During a patrol off Somalia, its crew detained a group of 29 pirates with small arms, boarding ladders, navigation equipment, and large number of fired cases. Pirates were handed over to Iranian and Pakistani authorities then.-- BERNAMA05/03 12:28 ? Sukhoi conducts first flight of Su-35S fighter jet, Russian NGOs to unite Union of Armenian-Russian NGOs will be established in Armenia. A joint forum will be held in Armenia in late May to discuss establishment of the Union.Coordinator of the forum, Arsen Mkrtchyan told Aysor.am correspondent that around 170 Armenian NGOs have submitted a bid to join the Union. According to him, coordination of the activities of Armenian and Russian NGOs will help create a new format of cooperation, dictated by friendly and partner relations between Armenia and Russia.Reports: Russian officer who blew whistle on US spy ring charged with high treason The Associated Press – 15 minutes agoMOSCOW — Russian news agencies say the former Russian intelligence officer who helped U.S. authorities uncover the spy ring that included Anna Chapman has been charged with high treason and desertion.Ten so-called sleeper agents who collected information for Russia were arrested last summer and deported.Russian news agencies cited a statement Tuesday from the Federal Security Service that said the indictment of Alexander Poteyev, the officer who tipped the U.S. authorities off about the spy ring, has been passed to Moscow's main military court. The service would not confirm the charges.High treason carries a maximum of 20 years' prison under Russian law, while desertion is seven years.Russian media said Poteyev fled to the U.S. just before the arrests were announced.Intellectual piracy rampant in Russia – report News line, May 3Russia and China do not protect intellectual property rights at a sufficient level, US Trade Representative Ron Kirk announced on Monday. Kirk’s office recently updated the list of countries with a high level of intellectual piracy. This year, this list includes eight new countries, among them Canada and India. The list serves as a reminder to the governments to improve the situation with intellectual property rights protection, but it does not lead to imposing any sanctions.? Brazil, Greece, Mexico and Jamaica are among 29 countries where the protection of intellectual property rights is improving, according to the document.03 May 2011, 10:09Chechen mufti dismisses U.S. commission's criticism of lack of religious freedom in republic, May 3, Interfax - Chechen Mufti Sultan Mirzayev has dismissed conclusions by the U.S. Commission on International Religious Freedom that freedom of religion and other freedoms are violated in Chechnya."We deem it necessary to state that the right to freedom of religion guaranteed by the Russian Constitution is fully exercised in the Chechen Republic. There has not been a single fact of denial of registration of a religious association, regardless of its faith," the Chechen Muslim Board said in an official statement."While there was not a single mosque in the republic at the beginning of the 1990s, they exist in all populated areas now. The Archangel Michael Cathedral has been rebuilt virtually from bottom up in the center of Grozny. Orthodox Christian churches are also being built in other places where groups of Orthodox believers live," Mirzayev said."The republic's leadership permanently supports religious associations of Muslims and Christians. If need be, houses of worship for members of other faiths will be built," he said.The conclusions that freedom of religion is violated in Russia on the whole and in the Chechen Republic in particular "have been made without carefully examining the situation, which can only be regretted," he added. Russian president legalizes order of determining terrorism threat President Dmitry Medvedev has signed a federal law on amendments to the law on fighting terrorism, RIA Novosti reports.The law was adopted by the parliament on April 22, 2011, and approved by the Federation Council on April 27. The law sets levels of terrorism threat, which determine measures needed for protecting individuals, society and the state.The order of determining the threat and additional measures will be defined by the president.Amendments to Russian law on countering terrorism 3, 2011 11:23 Moscow TimeThe Russian President Dmitry Medvedev has signed into law the draft on making amendments to the Federal Law on countering terrorism, says the Kremlin’s press service. The draft, adopted by the State Duma and approved by the Senate in April this year, provides for establishing terrorist threat levels that would call for some extra moves to ensure personal, public and state security against terrorist threats. The levels are due to be determined by the President. The new law will makes it possible to timely react to the threat of terrorist attack.May 03, 2011 11:08Search under way for militant who could be used to commit terror act on Umarov's orders (Part 3). May 3 (Interfax) - Russian law enforcement services are searching for North Caucasus gang member Ibragim Torshkhoyev, who could be used to stage a terrorist attack on orders from militant leader Doku Umarov, a spokesman for the National Antiterrorist Committee (NAC) told Interfax."The information available to us confirms that Torshkhoyev is currently hiding in a forested and mountainous district on the territory of Chechnya," he said.Torshkhoyev, 20, hails from the city of Armavir in Russia's southern Krasnodar territory, the spokesman said."He is a member of gangs active in the North Caucasus. He may be used by Umarov to stage a terror act," he said.A Krasnodar territory police spokesman told Interfax on April 14 that measures were being taken to detain Ibragim Torshkhoyev from the city of Armavir, who could be heading to Moscow to commit a terrorist attack there.tmChechen charged with terrorism for allegedly assembling letter bomb for Danish daily The Associated Press – 14 minutes agoCOPENHAGEN — Denmark's top prosecutor has charged a Chechen-born man with terrorism for allegedly preparing a letter bomb likely intended for a Danish newspaper that published cartoons of the Prophet Muhammad.Joergen Steen Soerensen said Tuesday that Lors Doukayev wanted to "seriously frighten the population" and destabilize Denmark with the explosive device.Doukayev, a boxer born in the Russian republic of Chechnya and currently a resident of Belgium, was slightly injured while allegedly assembling a letter bomb in a Copenhagen hotel. No one else was injured.If found guilty he faces a life sentence, though generally this is reduced in Denmark to 16 years in prison.A trial is set to start May 16.At least 2 militants killed in police operation in Chechnya - Kadyrov 03/05/2011At least two suspected militants were killed in a special police operation in Russia's North Caucasus republic of Chechnya, republic's leader Ramzan Kadyrov said.Kadyrov said that a group of between seven and ten suspected militants was blocked on the border of the Vedensky and Shatoi districts during the special operation launched on Monday."We have information that two militants were killed, but the number may be higher. One of the killed militants, according to preliminary information, comes from a Middle East country," Kadyrov said.A source in the Chechen Interior Ministry said earlier that one of the law enforcers was killed and two wounded during the operation, which would resume with the daylight on Tuesday.Sporadic terrorist attacks and militant clashes are common in Russia's volatile North Caucasus republics, where Russia has held two wars against separatists in Chechnya, although the Kremlin has officially ended its military campaign against separatists and terrorists there.MOSCOW/GROZNY, May 3 (RIA Novosti)Central Moscow blast injures police officer 03/05/2011A bomb rocked a car park outside a police station in downtown Moscow on Tuesday morning, injuring one police officer.The improvised device exploded when an officer at the station on Pyatnitskaya Street discovered it in a plastic bag, Moscow's chief police spokesman told RIA Novosti. He was hospitalized with face injuries.No theory for the attack was given. Blasts at police bases and transport hubs have become a relatively common occurrence in Moscow."Investigators found pieces of metal cans, wires and a mobile phone at the scene of the blast," a police source said earlier on Tuesday.The sources said the bomb was equivalent to 50 grams TNT.Militant groups in Russia's volatile North Caucasus region have been blamed for a number of attacks on Moscow in recent years. The Russian authorities have been fighting insurgents in the region for over a decade.A suicide bomber attacked the arrivals hall in Moscow's Domodedovo airport in January, killing 37 people and injuring almost 200.MOSCOW, May 3 (RIA Novosti)06:31?03/05/2011Top News36 wildfires ravaging on about 500 hectares in Siberia, May 3 (Itar-Tass) —— Ten wildfires on an area of 201.5 hectares have been contained in the past 24 hours in Russia’s Siberian regions, while as many as 36 wildfires are still ravaging on an area of 495.5 hectares, a spokesman for the Siberian regional emergencies centre told Itar-Tass on Tuesday.The biggest fires (199 hectares) are reported in the Baikal territory, and in the republic of Tyva (159 hectares), the spokesman said. About 500 fire inspections were carried out on Monday to prevent violations of fire safety rules. A total of 650 posts, including 265 stationary ones, were installed to restrict the entry to forests. About 257 kilometers of fire lines were ploughed around settlements.According to meteorological forecasts, the weather on Tuesday will fire-risky in nine Siberian regions. “In the republics of Buryatia, Khakassia, Tyva, Altai, the Baikal, Altai and Krasnoyarsk territories, and in the Novosibirsk and Kemerovo regions controlled grass fires may spread to forests and even to populated localities,” the spokesman warned.30,000 Chechens without electricity 30,000 consumers have been left without power at Chechnya’s Shelkovsky District on the night on Tuesday. The problem was caused by an accident at the power plant, the Russian Emergencies Ministry said, RIA Novosti rmation on the power cut was registered at 04.00 (Moscow time). The sectionalizing switch broke at the Shelkovskaya power plant. Nurenergo and the Emergencies Ministry are fixing the problem.New Bridge for Kaliningrad May 2011Russia and?Lithuania have agreed to?jointly fund construction of?a new bridge connecting Kaliningrad with Lithuania, Kaliningrad Governor Nikolai Tsukanov said Sunday.The?agreement on?the bridge across the?Neman River will be signed in?June, Tsukanov said in?an interview with the?Baltic News Service.Tsukanov said the?bulk of?funding would come from?Russia, but that the?European Union was expected to?contribute "about 10 million euros" ($15 million) to?the project.(MT)09:54?03/05/2011Top NewsAPEC facilities construction changes Vladivostok Gen Plan, May 3 (Itar-Tass) — The APEC summit facilities construction has led to changes in the General Plan of Vladivostok. The amendments’ draft on Tuesday was put forward to the city residents for discussion.The General Plan for the development of Vladivostok until 2025 had been approved in 2008, when the majority of projects for the placement of APEC summit facilities were not adopted yet, the press service of the administration of the Primorsky Territory capital recalled.Today, these design solutions have been developed and approved, a number of documents adopted at the federal, regional and municipal level that make significant adjustments to the future development of the regional centre, the press service told Itar-Tass.The draft amendments, in particular, includes such key facilities as bridges over the Zolotoi Rog (Golden Horn) Bay and Bosfor Vostochny (Bosphorus Eastern) Strait, a new highway linking the local airport and the Russky Island. Specialists have taken also into account and built engineering infrastructure facilities: water supply and sewerage, purification facilities, energy and heat supply networks, the development of the communications and telecommunications systems, construction of a gas pipeline. The document also reflects the land planning projects for development in the near future.After Vladivostok residents familiarise themselves with changes in the General Plan, public hearings will be held this summer. The residents’ remarks will be taken into account in a revised document, which will be submitted to the city Duma (legislature).According to experts of the department of urban planning and architecture of Vladivostok, the currently introduced amendments to the General Plan are not the last. For example, the Russian government’s resolution envisages the creation of a special tourism and recreation economic zone on the Russky Island. Its boundaries have been preliminarily coordinated, but the composition and characteristics of its facilities have not been determined yet, therefore, the relevant amendments to the General Plan will be introduced somewhat later.Over 40 large facilities are to be built for the 2012 APEC summit in Vladivostok, including roads, bridges, hotels, water and power supply facilities. The construction of the second mini thermal power plant “Tsentralnaya” (Central) for the supply of electricity to APEC facilities has been launched on the Russky Island. In 2010, in accordance with the special federal programme, the financing of the construction work on the Russky Island amounted to 29.3 billion roubles - 4.5 times more than in 2009. The total value of the construction work was 6.5 billion roubles in 2009. The proposal put forward for Russia to hold the 2012 summit on Russky Island was confirmed at the end of the APEC Australia 2007 summit in Sydney, Australia. At a press conference in Sydney, regional governor Sergei Darkin estimated the cost of hosting the summit at 147.5 billion roubles. The construction of infrastructure serving the summit, by Darkin experts’ estimates, would aid economic development in the Russian Far East and would see more than a six-fold increase of the gross regional product by 2020.The APEC brings together 19 countries in the Asia-Pacific region and two territories - Hong Kong and Taiwan. Along with Russia this structure includes such economically important world powers such as Canada, China, Korea, Mexico, the United States and Japan. APEC is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC is the only inter governmental grouping in the world operating on the basis of non-binding commitments, open dialogue and equal respect for the views of all participants. Unlike the WTO or other multilateral trade bodies, APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are undertaken on a voluntary basis. APEC has 21 members - referred to as “Member Economies” - which account for approximately 40.5 percent of the world’s population, approximately 54.2 percent of world GDP and about 43.7 percent of world trade.APEC was established in 1989 to further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community. APEC works to create an environment for the safe and efficient movement of goods, services and people across borders in the region through policy alignment and economic and technical cooperation.The APEC Russia 2012 summit will be the 24th annual gathering of APEC leaders. Leaders from the member countries will meet on Russky Island, off the coast of Vladivostok, Russia in 2012. The summit on Russky Island will see the building of resorts, dinner and entertainment facilities, in addition to the renovation and upgrading of Vladivostok International Airport. Two giant cable-stayed bridges are currently under construction in preparation for the summit, namely the Zolotoi Rog bridge over the Zolotoy Rog Bay in the centre of the city, and Russky Island Bridge from mainland to Russky Island (will become the longest cable-stayed bridge in the world upon completion). The new campus of Far Eastern Federal University will be completed on Russky Island by 2012.Lukoil executive's daughter found dead near Moscow 03/05/2011The daughter of an executive at Russia's second largest oil producer has been found dead in the Moscow region, a police source said on Tuesday.He said the body of Viktoria Teslyuk, daughter of Robert Teslyuk, was found by the roadside near the town of Taldom, about 100 km north of Moscow "when the snow melted."The source was unable to offer an explanation for the death of the 16-year-old girl, who was reported missing on March 26.The report was confirmed by a source within Robert Teslyuk's inner circle but there has been no official comment from police or Lukoil.Robert Teslyuk is general director of the Arman oil producing company, a joint venture of Lukoil, Shell and Sinopec, based in Kazakhstan.The kidnapping of the son of Russian software tycoon Yevgeny Kaspersky made world headlines last month. The 20-year-old heir to Kaspersky's estimated $800 million wealth was released safely in a police sting operation after being held for ransom for a week.MOSCOW, May 3 (RIA Novosti)?May 03, 2011 11:52Lukoil top manager's daughter killed shortly after disappearing – source. May 3 (Interfax) - Lukoil (RTS: LKOH) top manager's daughter Viktoria Teslyuk, who has been found dead in the Moscow region, was killed briefly after she went missing, a source in law enforcement services told Interfax."Teslyuk, 16, who went missing at the end of March, was killed almost immediately after her disappearance," the source said.The first reports about Teslyuk's disappearance, which happened on March 26, were circulated on March 29.tmFormer colleague of anti-corruption lawyer Magnitsky faces arrest 03/05/2011A former colleague of martyred anti-corruption lawyer Sergei Magnitsky faces arrest for evading tax payments as the head of the Russian branch of British investment company Hermitage Capital Management.Magnitsky was jailed in 2008 after attempting to defend Hermitage Capital, once Russia's top foreign investor, against the same charges. He died in pre-trial detention.The company said in a statement on Tuesday that police were investigating Ivan Cherkasov, the former head of its Moscow branch.Magnitsky accused Russian tax and Interior Ministry officials of using Hermitage to carry out a $230 million tax fraud. He died aged 37 from acute heart failure after 11 months in a Moscow pre-trial detention facility.Magnitsky was kept in appalling conditions and was refused crucial medical treatment in what Hermitage says was an effort to coerce him to admit his role in its alleged tax evasion.Hermitage head William Browder has been barred from Russia since 2005.An official investigation, ordered by President Dmitry Medvedev, is under way. No one has been charged with Magnitsky's death.The presidential Human Rights Council said last week that the charges against Magnitsky were fabricated and had no legal basis.MOSCOW, May 3 (RIA Novosti)Yandex divulges info on Russian anti-corruption crusader(AFP) – 14 hours agoMOSCOW — Russia's top Internet portal Yandex said Monday it has been forced to divulge financial details about the country's top anti-corruption crusader to the powerful Federal Security Service (FSB).The news came just days after the fast-rising Russian Internet giant announced plans to list on New York's NASDAQ stock exchange.The popular search engine said it was approached by the FSB about financial contributions made through its Yandex Dengi (Yandex Money) service to Alexei Navalny -- a popular blogger who operates the RosPil whistleblowing website.RosPil and Navalny have used Yandex Dengi to raise about 6.2 million rubles ($225,000 dollars) for private efforts to expose corruption at senior levels of the Russian government and at some of the country's biggest state-held firms.Navalny wrote on his blog last week that some of his contributors reported receiving threatening phone calls from unnamed people -- several of them posing as reporters -- who demanded to know why they gave money to the campaign.A top Yandex official confirmed on Monday that the company had been forced to release details about both the contributors and Navalny after being approached by the FSB."We ourselves are unhappy about the situation and share our users' outrage," Yandex chief editor Yelena Kolmanovskaya told Moscow Echo radio."After our lawyers look into things, we will know what we can do about it," the Yandex official added.Navalny has recently been filing claims in court to receive sensitive financial disclosures from top Russian companies such as the state-controlled oil giant Rosneft and the Transneft oil pipeline operators.Yandex was approached by the FSB after warning in a prospectus last week that its public offering was accompanied by political risks associated with efforts by the state and various business interests to control Russian media companies.The Internet firm has not yet determined the amount of ordinary shares it plans to offer on NASDAQ or the estimated price range of the stock.Earlier Russian press reports said Yandex -- which represents Russia's main rival to Google -- intended to raise up to $1 billion through the offering.Yandex had planned to sell up to 20 percent of its shares in New York before the onset of the global 2008 global financial crisis forced it to postpone theAnalysts estimate that Yandex was worth about $3 billion before the crisis and that its value may now have climbed to $8 billion.Navalny Donors Fret About FSB 'Leak' May 2011By Alexander BraterskyThe?Federal Security Service has collected personal data on?people who donated to?whistleblower Alexei Navalny, and?the information was later leaked to?third parties, including possibly a?pro-Kremlin youth movement, bloggers said.Yandex confirmed Monday that the?FSB had requested information on?people who used its web money system to?donate to?Navalny's project, an?online watchdog monitoring murky state tenders.A company spokeswoman told The?Moscow Times that Yandex was obliged to?comply by?law. Neither the?company nor the?FSB explained why the?data were collected.But at?least three bloggers reported that they had received cell phone inquiries about their ties to?, and?the caller had cited confidential information about their Yandex.Money payments.The caller's cell phone number is listed on?the Vkontakte.ru page of?Yulia Dikhtyar, a?Voronezh-based member of?the pro-Kremlin youth movement Nashi, wrote a? HYPERLINK "" LiveJournal blogger identified as Nykolaich.The blogger, who said he was one of?those asked about his donation, posted a?screenshot of?Dikhtyar's page on?the popular social networking site.The number was out of?service Monday.The three bloggers said the?caller, who identified herself as Yulia Ivashova, had posed as a?journalist and?asked why they had donated to?Navalny. Each time, the?caller said she represented a?different regional media outlet.The caller knew details about the?personal Yandex.Money accounts and?the transactions, the?bloggers said. Prominent Internet expert Anton Nosik wrote in?his blog Monday that the?data "couldn't have been legally obtained by?third parties."Navalny confirmed that data on?contributors had been leaked to?third parties and?said he believed that the?FSB has handed over the?information to?Nashi."Instead of?conducting investigations into?corrupt officials exposed by?our work they have collected information on?our donors," Navalny said by?telephone."I could have understood if they just collected the?information for?themselves, but sharing it with Nashi passes all boundaries," Navalny said.He said he would ask the?Prosecutor General's Office to?open a?check into?the leak. Nashi, which has a?history of?harassing critics of?the authorities, has not commented on?the allegations. An?FSB spokeswoman was unavailable for?comment Monday, a?public holiday.Navalny, who made headlines last year by?leaking an?Audit Chamber report that implicated state-owned Transneft in?the embezzlement of?$4 billion, opened in?February.The web site is funded exclusively through public donations and?has raised 6 million rubles ($218,000) since its inception. It claims to?have identified rigged state tenders worth 1.6 billion rubles and?prevented the?embezzlement of?337 million rubles.Moskovsky Komsomolets claimed last week that Navalny's exposes serve his commercial interests and?target only specific companies or agencies. The?daily, which is seen as friendly with the?government, suggested that Navalny's funding came from?businesses, not grass-roots supporters, and?promised a?series of?reports on?the matter. The?initial report did not refute any of?Navalny's accusations.Luzhkov Applies for U.S. Visa May 2011Former Mayor Yury Luzhkov has applied for?a U.S. visa at?the U.S. Embassy in?Moscow, a?source familiar with the?situation said Friday."Luzhkov plans to?travel to?the United States on?a brief business visit," the?source said, without elaborating.In?February, Luzhkov requested a?British visa, saying that he wanted to?visit his daughters who are studying in?London.But Luzhkov still has not received a?reply from?the consular service, the?source said Friday, dismissing earlier unofficial reports that a?visa was granted.(Interfax)Unknown actress earns ?23million - nearly double Angelina Jolie's wages Belobrova, an unknown stage and film actress, has reported earnings almost double that of Hollywood star Angelina JolieLarisa Belobrova is said to have earned more than ?23million in 2010 while Tomb Raider star Jolie picked up just ?12million for her work last year. This has led to speculation over how the 46-year-old Russian, the widow of a murdered Mafia boss, came by the cash. Belobrova is a leading actress at a theatre in Vladivostok, east Russia, and has appeared in Russian films including 2009’s Footsteps On The Sand but is little known outside her native country. Belobrova was previously married to Igor Karpov, a gangster known as the Carp, who was shot dead by a sniper in 1998 during a power struggle for control of Vladivostok’s underground economy. She is now the wife of Sergey Darkin, governor of the Primorsky region. Before the collapse of the Soviet Union, Mr Darkin set up import-export company Rolis, called a ‘hornet’s nest of organised crime’ by the Interior Ministry in Moscow. Under Russian anti-corruption laws, Mr Darkin must publish an annual review of individual and family income and wealth. The 47-year-old said he earned about ?75,000 while his wife earned more than 300 times as much. The report has led to allegations of corruption in internet chatrooms and forums.April NPP chronicle - RBMK units hiccup in Russia, a bird shuts down a reactor in Ukraine – Nuclear power reactors in Russia and Ukraine – which operates 15 reactors, all Soviet- or Russia-built, continue to experience operational disruptions. In April, automatic protection systems and a pump malfunction stopped reactors at Russia’s Kursk and Leningrad Nuclear Power Plants (NPPs), and a unit at Ukraine’s Rovno NPP was shut down… by a bird. As of end April, 21 out of Russia’s 32 power units were in operation, two more were in reserve, and nine were undergoing maintenance. Andrei Ozharovsky, 02/05-2011 - Translated by Maria Kaminskaya A three-day outage at Kursk NPPJust as the 25th anniversary of the 1986 tragedy at Ukraine’s Chernobyl was approaching, Reactor Unit 4 at Kursk NPP – which is located in Kursk Region, in Central European Russia, and runs RBMK-1000 reactors, of the same design that exploded at Chernobyl – was shut down by the automatic protection system. According to a statement by the Russian State Nuclear Corporation Rosatom’s Crisis Management Centre, “on April 25, 2011, at 08:49 a.m., the unit, while operating at a capacity of 1,035 megawatts, was shut down by the automatic protection system actuated following a false emergency alarm.” A statement to the same effect also appeared on the website of the Russian NPP operating organisation, Concern Rosenergoatom, complete with a standard assurance that “no violations of the limits [or] terms of safe operation of Kursk NPP power units were detected. The radiation background at the NPP and on the nearby territory is unchanged.”?Reactor Unit 4 had been commissioned in 1985; its useful service life expires in 2015. The outage at Kursk lasted for three days, from 08:49 a.m. of April 25 to 09:10 a.m. of April 28. During this time, around 72?million kilowatt-hours of power was undersupplied to the grid. Operating load reduced at Leningrad NPPJust like Kursk NPP (as well as Smolensk NPP), the Leningrad station – which is located in Sosnovy Bor, near St. Petersburg – runs RBMK-1000 reactors. According to Rosatom’s Crisis Management Centre, “on April 27, 2011, at 19:42 p.m., as the unit was operating at a capacity of 1,026 megawatts, a 2PEN-2 feedwater electric pump shut down. A 20-percent reduction in operating load was performed manually at the unit in accordance with the design-basis operation algorithm. At 20:05 p.m. of April 27, 2011, a reserve 2PEN-5 pump was engaged. At 00:30 a.m. of April 28, 2011, load was restored to 1,020 megawatts.”No information about this incident was posted on Rosenergoatom’s website.The unit was operating at reduced capacity for almost five hours. The grid lost around 1?million?kilowatt-hours in undersupplied electricity.According to Rashid Alimov, a St. Petersburg-based environmentalist and co-chairman of the ecological group Ecoperestroika, incidents like this are not uncommon and testify to a lack of due control on the part of the Russian Federal Service for Ecological, Technological, and Atomic Supervision, Rostekhnadzor, which is Russia’s federal industrial safety oversight authority. “The old and dangerous reactors of Leningrad NPP are not reliable. Their useful service lives have been extended unlawfully, without proper state environmental impact evaluations. This latest incident is a consequence of Rostekhnadzor’s indulgence toward the atomic industry,” Alimov told Bellona. Birds as a nuclear event risk factorThe incident that occurred at Ukraine’s Rovno (Rivne) NPP on April 5 is more of an anecdotal variety, though there is hardly any amusement to be found in it. Ukraine, another former Soviet state, has four nuclear power plants (not counting Chernobyl). All were built either during the time that Ukraine was part of the Soviet Union or by Russia after the USSR disintegrated. Ukraine is heavily dependent on nuclear power, which accounts for almost half of all energy produced in the country.A statement with preliminary information about the incident at Rovno has been published on the Ukrainian page of the website of the State Nuclear Regulatory Inspectorate of Ukraine. The event, registered at 12:17 p.m. of April 5, 2011, was caused by the differential bus protection engaged following a malfunction at the busbar, which tripped generator circuit-breakers and a number of other electrical devices at the plant’s Unit 2 – a VVER-440 reactor of Russian make – and led to its emergency shutdown.Traces of soot were detected at the place where the malfunction occurred. An electric arc was also reported by witnesses. A ground fault is named as a possible underlying cause of the incident, likely brought on… by a foreign object dropped by a bird. In other words, a bird – something that one would hardly think a candidate for risk assessment in an industry that has to take immense safety precautions against earthquakes, plane crashes, terrorist threats, or operational errors, among other major risk factors – can essentially take a nuclear power plant out of operation.It took the unit a week to restore operating capacity after the scram.“The incident at [Rovno NPP] with a foreign object that led to the actuation of the emergency protection system and a reactor shutdown is another testimony to the fact that it is impossible to predict all potential external impacts that can affect a reactor’s equipment. Therefore, absolute safety is impossible for an NPP, even theoretically,” Artur Denisenko, energy programmes coordinator at the National Ecological Centre of Ukraine, told Bellona. “It is also symbolic that power supply [was at the time] discontinued from the two oldest reactors [in Ukraine], Reactor Units 1 and?2 of Rovno NPP, on which enormous funds were spent to extend their operational lifetimes. If old nuclear power reactors cannot be protected from foreign objects brought by birds, these reactors must be taken out of operation.” Someone flew over Kursk NPPBack in Russia, a violation of air passage regulations was registered in the area of Kursk NPP on April 27. Rosatom’s Crisis Management Centre reports this incident with an unsanctioned passage of a plane over the nuclear power plant’s premises:? “On April 27, 2011, at 12:40 p.m., a flyover of a twin-engine plane was registered over the NPP's territory, which is closed for aircraft passage. An inquiry into the incident showed that the plane had been performing a planned flight, approved in an established order, and was carrying a foreign delegation on board. While in flight, the plane deviated from its course and flew over the NPP's territory. An investigation is under way.”RBMK-running nuclear power plants in Russia are old stations. A number of alterations were made to the design after the Chernobyl tragedy, but these reactors still operate without containment vessels, which are among the main protection features of newer reactor models. But newer stations or those under construction, however, are not adequately protected against a plane crash either. And planes do fly over nuclear power plants in Russia – military and test aircraft, as well as passenger jets. That a plane crashing onto one of Kursk’s reactor buildings or an on-site spent nuclear fuel cooling pool would have caused major nuclear and radiation safety consequences is, alas, without doubt.Russian Press at a Glance, Tuesday, May 3, 2011 03/05/2011WORLDThe world's most wanted terrorist, al Qaeda leader Osama bin Laden, was shot dead in Pakistan on Sunday during a U.S. special operation(Vedomosti, Kommersant, Rossiiskaya Gazeta, Nezavisimaya Gazeta)The youngest son and three grandchildren of Libyan leader Muammar Gaddafi were killed last week during a NATO airstrike on Tripoli(Kommersant)Trials of former presidential candidates continue in the Belarusian capital of Minsk asPresident Alexander Lukashenko refuses to bow to international pressure(Nezavisimaya Gazeta)ECONOMY & BUSINESSRussia's largest Internet search engine, Yandex, which posted a 61.7% year-on-year increase in its first quarter net profit to 820 million rubles ($29.8 million), says it is worried of being consumed by a financial group or oligarch(Vedomosti)A stress-test conducted by the Russian Central Bank showed that almost a third of Russian banks are not ready for a possible recurrence of the 2008 global financial crisis(Vedomosti)Howard Schultz, the chairman and CEO of the U.S. Starbucks coffee house chain reveals how he "implemented his American dream"(Vedomosti)SOCIETYWhen the bells tolled for Prince William and Kate Middleton in London last Friday, many Muscovites were stuck in huge traffic jams out of the capital for the start of the traditional dacha season(The Moscow Times)A study conducted by popular Russian web portal Mail.ru suggests that women are more interested in loan products than men and are more likely to look for ways to avoid returning the money they have borrowed(The Moscow Times)MOSCOWGays crashed a Communist rally, ultranationalists protested migration and the president's Twitter account, the mayor got pelted with eggs, and hipsters rallied for raccoon power during unusually colorful celebrations of the May Day holiday in Moscow(The Moscow Times)The Moscow metro plans to increase its income from underground advertising up to 1.03 billion rubles (37.6 million) annually(Kommersant)CULTURERussian film and theater actor Alexander Lazarev died at the age of 74(Kommersant, Rossiiskaya Gazeta)Moscow Aims to Have One of World’s Top Five Militaries By Andriy Tsintsiruk On May 2, 2011 @ 1:30 pm In Ongoing PrioritiesMoscow recently announced [1] its aspirations to have one of the five best militaries in the world. This ambitious plan will require that Russia replace 70 percent of its military materiel with modern military equipment by 2020. Such optimistic statements are not a rare occurrence, as the Kremlin has made similar statements on numerous occasions in the past.According to Sayid Aminov, editor of the Russian air force magazine, “missile troops are the cornerstone of Russia’s defense capability.” As such, Russia’s Ministry of Defense plans to acquire 36 ballistic missiles, 20 airborne cruise missiles, 5 spacecraft, 35 jets, 109 choppers, and 21 air defense systems. Aminov also states that the Russian navy will obtain eight Borei-class nuclear submarines configured to deploy Bulava missiles. However, the plans for modernization will cost the Kremlin a quarter of the state subsidies allocated toward Russia’s defense.Nevertheless, there is a long way to go before Moscow develops and deploys professional armed forces with modern intelligence-gathering; command, control, and communications systems; and precision-guided military systems on the level of modern Western armies. These challenges are further hampered by the need to reform a Soviet-era military bureaucracy, which is plagued with corruption and opposes the necessary reforms.As noted [2] by participants in a recent Jamestown Foundation event regarding the Russian military, even though Russia’s main military focus has been NATO, it has become increasingly concerned with China’s military resurgence in the past few of years. The Chinese military exercise in 2008–2009 postulated projecting a military force 2,000 kilometers. The scope of power project suggests the Russian Federation and/or Central Asia as a target. In 2010, Russia responded with its own exercise aimed at countering a hypothetical move by China.The Russian military is focused on how China’s massive army and military modernization is surpassing Russia’s overstretched military, especially compared to those forces east of the Ural Mountains. Russia is seeking to have a military with 40 brigades in a rapid deployment mode, which will be the focus of future modernization.However, observers note that the state of conventional Russian military units in the Far East is poor and that the Kremlin continues to place heavy emphasis on tactical nuclear weapons. Russian military doctrine calls for initial strikes with tactical nuclear weapons on enemy command-and-control sites.Despite popular slogans and well-publicized efforts to reform the Russian army, the Russian media is full of allegations of rampant corruption, hazing of recruits, and human rights abuses by Russian servicemen, which continue [3] to occur on a regular basis. Yet Russia’s generals and senior military officials frequently attempt to downplay these abuses. At the same time, top political leadership in the Kremlin remains reluctant or lacks the political will to fight hazing and violations of the law by the Russian military and security forces.Not surprisingly, the conflicts in Chechnya (1994–1996, 1999–2004) and Georgia (2008) demonstrated low level of preparedness and effectiveness in Russia’s military forces. In the future, Russia’s ability to fight even limited, regional wars depends on successful modernization. Moreover, Russia’s military spending fluctuates and is dependent on revenues from energy and raw materials exports.Russia’s current military doctrine envisions military conflicts in the “near abroad”—the areas that the Kremlin considers to belong to its “privileged sphere of influence.” Indeed, Moscow claims that Russia maintains the right [4] to engage in armed conflicts on its borders or in the event of “aggression against its citizens.” In addition, in a recent report released by Russia’s security council, President Dmitry Medvedev envisioned possible future military conflicts [5] over energy resources and emphasized Russia’s need to modernize its armed forces.Rampant corruption, an obsolescent science and technology base, and poor quality of both conscripts and contract personnel—including poor physical and mental health, alcoholism, and drug abuse—pose serious obstacles to building the modern and professional army that the Kremlin is seeking to achieve. The Russian government might be throwing petro-rubles from high oil prices to fulfill its military reform aspirations, but both strategy and implementation are badly lacking. There is a long list of serious structural problems that will require long-term commitment.Andriy Tsintsiruk currently is a member of the Young Leaders Program at the Heritage Foundation.Article printed from The Foundry: to article: in this post:[1] announced: [2] noted: [3] continue: [4] maintains the right: [5] envisioned possible future military conflicts: Fighting to Save Arms Sales to the Middle East By Ariel Cohen On May 2, 2011 @ 6:30 pm In American Leadership Ambitious efforts to modernize Russia’s defense and industrial base undertaken during the Putin administration have been paying off—at least, in some cases. The Russian leadership uses arms sales for economic gain, but also as a tool of influence in the recipient countries.The Russian military-industrial complex, one of the few national industries that maintain some competitive advantage in comparison with the West, is a source of the Kremlin’s cash and prestige. Leftover stockpiles from the Soviet military past were large enough to keep Russia active in arms sales in the post-Soviet years. To capture and maintain market share, Russia sells equipment at deep discounts or fosters joint weapons development.The recent instability in the Middle East, however, is likely to have a negative impact [1] on the country’s arms sales, because in the past decade this region has been one of the most significant recipients of weapons “Made in Russia.”The government of Russia is actively engaged in assisting the export efforts of the country’s domestic arms industries in the competitive international arms market. Russia is the world’s second-largest arms exporter after the U.S. and was one of the main suppliers of weapons to Libya. To facilitate exports, in 2008, Russia forgave [2] $4.5 billion in Libya’s Soviet-era debt.In January 2010, Libyan Defense Minister Yunis Jaber signed a number of arms sale agreements [3] with Russia. These contracts were aimed at delivering combat planes, modernizing Soviet-made tanks, and launching a plant producing Kalashnikov automatic rifles in Libya. The Libyan army currently has some 4,000 units of Soviet-era armored vehicles, a large number of surface-to-air systems, and ships. Since 2005, Russia negotiated [1] numerous contracts with the Libyan government on modernization of its tactical ballistic missile force, tanks, infantry vehicles, training aircraft, and fighter jets.Following the United Nations Security Council resolution [4] from March 17, 2010, which Prime Minister Vladimir Putin criticized ex post facto (though Russia abstained from the vote), Moscow has suspended its arms contracts with the government of Colonel Muammar Qadhafi. According to estimates by the Russian state arms exporter Rosoboronexport, it lost close to $4 billion [4] in Libya alone.Russia has been actively proliferating its weapons in other Middle Eastern countries as well, especially Syria. Russia is likely to lose revenues from these contracts should Qadhafi and/or President Bashar Assad be replaced.Libya is not the only country in the Middle East where Russian arms exporters have been active. Russia’s weapons sales to Iran and Syria [5] have improved these two terror sponsors’ air defense capabilities. Russia (and China) also voted against a U.N. Security Council resolution to impose sanctions on Syria, among other things, because Moscow resents losing another weapons market.And there is more. Russia’s arms contracts with Algeria [1], yet to be fulfilled, are worth more than $17 billion. Despite EU and U.S. weapons embargoes on Sudan and Zimbabwe, Russia continues to provide [6] these unstable regimes with weaponry. Importantly, some of the customers, e.g. Algeria, chose not to expand [1]their weapons acquisitions in Russia, citing the lower quality of the Russian arms, especially the aircraft, compared to the West.As the “Arab Spring” unfolds, through meaningful carrots and weighty sticks Washington should initiate consultations with Moscow, seeking to ensure that the government of Russia avoids supplying arms to conflict zones and helps prevent destabilization in the already volatile Middle East.This blog was co-authored by Andriy TsintsirukRussia 'only obstacle' to peace in Caucasus 03 May 2011 05:58 GMT | 7:58 Local TimeNews.Az interviews Azerbaijani political scientist Vafa Guluzade, a former presidential adviser on foreign policy.Could the mandate of the OSCE Minsk Group be strengthened so that the group becomes responsible for solving the conflict, rather than negotiating a settlement?A change in the mandate is almost impossible to achieve, since it would be impossible to achieve a breakthrough in the conflict settlement regardless of whether this mission is called the Minsk Group or, for example, the Turkish-Asian, Chinese or any other group, unless Russia is mediating. In other words, these lands were occupied by Russia, which is also a nuclear power. So even if my retirement certificate is replaced with a paratrooper's, I will never be able to beat a Russian or an American soldier.Will Turkey get involved in the Minsk Group or will the OSCE pass its mediating authority to the UN?Proposals on changing the Minsk Group mandate or other initiatives envisaging Turkey’s involvement in mediation in this group or the transfer of the Karabakh conflict to the UN are useless, since Azerbaijani territory has been captured by Russia. If a simpler approach is taken to this issue, it is clear that the Karabakh conflict is a subject for a showdown between Russia and the US. This fight may last for five years and even longer. However, there are other terms that may prompt the Karabakh conflict settlement. This may happen if Russia collapses or power shifts in the country.Was former Armenian President Levon Ter-Petrosyan sincere when he said that peace between Baku and Yerevan was hampered by the "maximalist" position of the Karabakh separatists and people in their entourage?As a participant in the ongoing processes at that time, I can say that he is absolutely right. Levon Ter-Petrosyan made quite reasonable statements that Armenia has no future unless the Karabakh conflict is resolved and peace with Azerbaijan is attained. Ter-Petrosyan is a wise and brave man and his statement was a sensation.However, he made statements about the need for a rapid solution of the Karabakh conflict even earlier, in 1997. He offered to liberate six or seven Azerbaijani districts. He also proposed to leave the resolution of the current status quo for the future until relations between Turkey and Armenia were normalized, because Nagorno-Karabakh status? was a painful issue for both parties. There would be no Karabakh conflict now, if that proposal had been accepted in 1997.What do you think prevented this proposal from being accepted?Russia is against friendship between Azerbaijan and Armenia. In such an event, it would lose not only the South but also the North Caucasus. In other words, Russia is the only obstacle on the road to peace in the Caucasus. But I think this nail will be pulled out sooner or later.Is a solution to the Karabakh conflict realistic and expedient in a single package with economic projects in the region?Such approaches to the conflict settlement are unrealistic and will be of no use, since there is the fact of the occupation of land. There is the fact of impudent aggression and occupation of land. As I have already mentioned, Russia benefits from preserving this situation. For this reason, all initiatives,? or conferences on a possible solution of problems separately or in a single package are doomed to failure. So, all similar proposals and initiatives, even if they come from Azerbaijan, serve only to promote Russian occupation of Azerbaijani land.Why, then, does Russia organize meetings of the foreign ministers and presidents of Azerbaijan and Armenia?The meetings between the presidents of Azerbaijan and Armenia, organized by Russian President Dmitriy Medvedev, cannot be effective. The only thing that President Medvedev can add to the list of his contributions is restraining the parties from war. He cannot and will not want to make any settlements, since this runs counter to the geopolitical interests of present-day imperialistic Russia.What should Azerbaijan do in this situation?Azerbaijan should build a democratic state and search for reliable allies in the USA and NATO countries that will assist it in the future. The United States earlier extended similar support to Latvia, Lithuania and Estonia in organizing their prompt admission to NATO, thus freeing them from Russian pressure. Lala B.News.AzHigh-Level Trips Underscore Serbia’s Importance to Russia[tt_news]=37872&tx_ttnews[backPid]=27&cHash=fc2ee27024344854b5a20bd7514dbc04Publication: Eurasia Daily Monitor Volume: 8 Issue: 84May 2, 2011 03:39 PM Age: 1 hrsCategory: Eurasia Daily Monitor, Home Page, Foreign Policy, Economics, Russia, Europe By: Stephen BlankRussian deputy PM and Minister of Finance Alexei Kudrin.Despite the distractions of other crises the Russian government continues to plow ahead with its designs for the Balkans, particularly the intended South Stream pipeline. In its quest for renewed influence in the Balkans, Serbia has emerged as an important partner for Russia. And to signify its importance Prime Minister Vladimir Putin and Foreign Minister Sergei Lavrov both made visits to Belgrade last month. Russian objectives are clear: forestalling Serbia’s integration in the WTO and the EU and ensuring that Russia dominates its energy sector. Towards these ends Russia is prepared to pay a high price and its intentions and diplomatic arsenal were on full view during these visits.Indeed, according to the Serbian press, Putin threatened Belgrade that Russia would target it with missiles if it joined NATO and that if it joins the EU it should do so without prejudicing Russian interests –lest Russia retaliate (Belgrade Beta Week, March 20). In return, Russia would frustrate international efforts to give Kosovo full foreign recognition, e.g. membership in the UN. Putin also insisted that South Stream gas would definitely start flowing in 2015 and that Serbia should sign onto this program to benefit from those flows. He may also have tried to convince Belgrade to assent to Russia’s 2008-2009 proposals for a new European security architecture (Radio Beograd, March 22; Belgrade Beta Week, March 20). Thus, Putin was also trying to dispel doubts about the viability of South Stream that have recently arisen in Serbia. For Serbia the opening of South Stream would ensure its energy stability as it depends exclusively on Russia for natural gas. The project involves a strategic energy agreement with Russia entailing the sale of Serbia’s NIS oil monopoly to Gazpromneft and the construction of the underground gas storage facility in Bantski Dvor in Vojvodina (Belgrade Beta Week, March 23).Beyond these energy deals Putin offered to buy Serbian pharmaceuticals for gas and modernize Belgrade’s electric plants. A Russian bank and insurance company are also to open there. The deals Putin apparently offered total $10 billion and include a $800 million loan for the modernization of Serbia’s railways (Belgrade, Blic Online, March 25; Belgrade, Tanjug Domestic Service, April 15; Interfax, April 18).Putin also brought along two other “carrots.” First he announced Russia’s willingness to lend Serbia $3 billion to buy Russian fighter jets, air defense systems like the S-300 SAM, and other systems (Izvestiya Online, March 31). Russian commentators suggested that Serbia would use this loan to buy at least 12 Yak-130 trainer jets, one or two squadrons of MiG-29 light fighters with the latest avionics and one or two divisions of S-300MU2 (Favorit) SAMs, and possibly two or three battalions of T-90C tanks (Interfax, March 30; Izvestiya Online, March 31).These acquisitions could give Serbia control over the air space of Bosnia and Kosovo. Putin also completed the text of a unique Russo-Serbian agreement on strategic partnership that was revealed during Lavrov’s subsequent visit. Serbia is the only Balkan country with which Moscow has negotiated such an accord that should raise the level of cooperation between the two states across the board (Belgrade Vechernje Novosti Online, March 30). Lavrov’s visit in April followed up on these moves by working out the practical details of the strategic partnership agreement, and the economic deals negotiated by Putin, announcing accords on cultural and religious exchanges, discussions on new strategic energy projects as well as South Stream, and support for Serbia’s position on Kosovo. Lavrov also discussed current issues relating to European security (Radio Beograd, April 19; mid.ru, April 20, 2011).These visits typify Russian diplomacy in the Balkans that has effectively utilized the prospect of oil and gas deliveries and the implicit threats of shutoffs, along with the idea that each Balkan state may become a kind of energy hub and profit thereby if only they support Russian initiatives. In Serbia’s case there are also individual issues like Kosovo and the possibility of accession to the EU and/or NATO. On Kosovo, Putin and presumably Lavrov reiterated their past line of support for Serbia’s position, refusal to recognize Kosovo as an independent state. But on NATO, Putin dropped the mask and told Serbian party whips in the legislative assembly that, “NATO enlargement is absolutely against Russia’s interests. If Serbia opted for a missile shield by joining NATO, Moscow would have to respond. We would have to change our strategy toward Serbia.” This audacity shocked Serbian defense analysts who promptly denounced this effort to undermine Serbia’s own sovereign choice (Belgrade, Blic online, March 25). However, Putin’s outburst reflected standard Russian thinking that smaller countries really are not sovereign and are or should be responsive to big powers and that joining NATO involves a loss of sovereignty. Naturally such a program holds no appeal to elites bred in the traditions of Muscovite autocracy that insist on being above any kind of political constraint. We see the same manifestation of an inability to accept the sovereignty of small states throughout Russia’s policy in the CIS and perhaps this explains at least in some measure why, in fact Russia may well be losing ground in the Balkans despite all the inducements it can bring to the table and which it offered to Belgrade.Kremlin Got Tip on Bin Laden’s Death May 2011By Nabi AbdullaevVladimir Putin was the?first international leader to?call George W. Bush after the?terrorist attacks on?Sept. 11, 2001.Now President Barack Obama has returned the?favor, notifying the?Kremlin that U.S. forces killed 9/11 mastermind Osama bin Laden before making the?public announcement."We appreciate it that the?Russian authorities were sufficiently informed before the?official statement by?U.S. President Barack Obama," the?Foreign Ministry said Monday in?a brief statement.The?ministry did not elaborate on?the U.S. tip-off, and?the Kremlin made no comment about it in?a separate statement, where it pledged to?expand cooperation with the?United States in?the fight against terrorism.Russian officials have made numerous claims about al-Qaida's involvement in?the insurgency in?the North Caucasus, and?the man tipped as bin Laden's likely successor even spent several months in?a Dagestani prison in?the 1990s. But, security experts said Monday, the?link between al-Qaida and?the North Caucasus is largely symbolic, and?bin Laden's death will have little impact on?the Russian insurgency.Obama announced just before midnight Sunday in?Washington that bin Laden had been killed by?U.S. forces in?a special operation outside the?Pakistani city of?Islamabad. The?manhunt had lasted for?nearly a?decade after bin Laden claimed responsibility for?the 9/11 attacks. Despite the?late hour, thousands of?people converged on?the White House and?took to?the streets in?major U.S. cities to?celebrate the?news."The Kremlin welcomes the?serious success achieved by?the United States in?the fight against international terrorism," the?Kremlin said. "Russia … regretfully knows what al-Qaida is from?experience."The?Kremlin statement said that only unified efforts could fight global terrorism successfully and?pledged to?expand cooperation toward that end?— a?promise similar to?one made by?then-President Putin when he called then-President Bush shortly after the?9/11 attacks. The?phone call marked a?turning point in?U.S.-Russian relations at?the time.In?its statement Monday, the?Foreign Ministry likened bin Laden to?slain Chechen warlord Shamil Basayev and?the U.S. anti-terrorism operations in?Pakistan to?Russian security services' own operations in?the North Caucasus, where, it said, a?hunt continues for?al-Qaida emissaries.Konstantin Kosachev, chairman of?the State Duma's International Affairs Committee, said Monday that bin Laden had been involved in?attacks on?Russian soil. "We have grounds to?believe that Osama bin Laden was involved in?several terrorist attacks that took place in?our country," the?senior United Russia lawmaker said, without elaborating, in?a statement published on?United Russia's web site.Kosachev also warned that bin Laden's death might spur a?series of?retaliation attacks by?international terrorists.Moscow police boosted security around the?U.S. Embassy on?Monday.North Caucasus insurgents have several times attacked public venues in?Moscow, but they've never specifically targeted U.S. or other foreign buildings here. Only one U.S. citizen has died at?the hands of?Chechen rebels?— during the?2002 Nord-Ost hostage siege in?a Moscow theater.Interestingly, it was after the?Nord-Ost drama that bin Laden for?the first and?only time spoke of?North Caucasus rebels in?one of?his many public addresses, describing them as victims of?Russian aggression and?a group in?need of?assistance.The?first known links between bin Laden and?the North Caucasus conflict date back to?1995, when bin Laden offered $1,500 toward a?Kalashnikov assault rifle and?travel expenses for?each volunteer ready to?fight in?Chechnya, a?Sudanese defector from?al-Qaida told a?U.S. court in?2001.Curiously, bin Laden was often filmed and?photographed with a?Kalashnikov in?his hands or within reach. He claimed that the?Kalashnikov belonged to?a Russian soldier that he had killed while fighting the?Soviet army in?Afghanistan in?the 1980s.In?late 1996, al-Qaida's No. 2 and?the most probable successor of?bin Laden, Egyptian Ayman al Zawahiri, traveled to?the North Caucasus in?search of?a new home for?the terrorist organization after it was expelled from?Egypt and?Saudi Arabia. He was arrested in?Dagestan for?illegally crossing the?border and?spent several months in?a local prison before being expelled. After that, al-Qaida made Afghanistan its base of?operations.Following the?9/11 attacks, several reports surfaced that two of?the plane hijackers had fought in?Chechnya and?a third had told friends prior to?the attacks that he was going to?train in?an al-Qaida camp in?Chechnya or Afghanistan.Several al-Qaida operatives arrested over the?past decade, including suspects nabbed in?London in?2003 for?trying to?produce the?powerful poison ricin in?their apartment, either fought or trained in?Chechnya or Georgia's Pankisi Gorge, which is predominantly inhabited by?ethnic Chechens.Any foreign insurgent killed by?the police or security services in?the North Caucasus?— including most recently on?April 21 in?Chechnya?— is automatically labeled as an?al-Qaida representative by?Russian officials.North Caucasus-based foreign fighters, described as "members of?the roaming brotherhood of?jihadi paladins" by?U.S. researcher Brian Glyn Williams, who is an?authority on?al-Qaida's links to?Chechnya, are believed to?have first surfaced in?Chechnya in?1995. While the?small group of?foreign fighters considered Chechnya just another battlefield in?the global jihad, it quickly became a?strong force competing for?influence with the?largely secular Chechen separatists. Some of?the fighters are believed to?have fought against the?Soviet troops in?Afghanistan, just as bin Laden did.The?alliance between the?fighters, led by?the late Saudi-born Emir Khattab and?Basayev, gave Russian authorities a?pretext to?paint the?leaders of?the North Caucasus insurgency as part of?al-Qaida's global effort.In?2003, as the?second war in?Chechnya was in?full swing, then-President Putin told journalists in?Paris that al-Qaida had retained its presence in?the North Caucasus. "There are no longer al-Qaida camps in?Chechnya, but its money and?trainers remain," he said.Still, not a?single Chechen has ever been arrested outside Russia for?involvement in?al-Qaida. The?few Russian citizens arrested by?coalition forces in?Afghanistan and?then jailed in?the Guantanamo prison comprised natives of?Tatarstan, Bashkortostan and?Kabardino-Balkaria. All were later sent back to?Russia, where they were released.Andrei Soldatov, a?security analyst with the?Agentura think tank, said playing up al-Qaida's presence in?the North Caucasus helps Russian authorities pretend that they are fighting a?common enemy with the?United States and?other Western countries."This naturally allows them to?undercut foreign criticism of?the brutal anti-terrorism efforts in?the North Caucasus," he said.Enver Kisriyev, a?Caucasus expert with the?Institute of?Ethnography and?Anthropology of?the Russian Academy of?Science, concurred, saying, "Claiming to?be fighting al-Qaida allows federal and?local security officials to?often operate outside the?legal limits."Bin Laden's death will have little effect on?the activities of?North Caucasus rebels because they do not share al-Qaida's global goal of?fighting the?United States, which it sees as the?biggest enemy of?Islam, Soldatov said.Death of bin Laden is a 'Dasayev moment' Andy Potts at 03/05/2011 11:06?Russia has joined the international back-slapping over the death of Osama bin Laden – but not everybody is convinced the world’s number one bogeyman has met his end.While officials from the Kremlin and the foreign ministry applauded the news, some newspapers took a more sceptical line.?Like killing DasayevBoth the foreign ministry and Chechen leader Ramzan Kadyrov evoked the spirit of Shamil Basayev, an insurgent in the Caucasus who was killed by Russian special forces in 2006.A spokesman for the ministry said: “I would like to emphasise that this is a natural result: Bin Laden, Basayev and others like them sooner or later catch up with what they have done.”And the statement added that bin Laden’s death was “a landmark moment in the fight against international terrorism.”Kadyrov said it was “a good result”, but warned against dividing terrorists into “bad and not very bad”.He went on to make an oblique reference to Akhmed Zakayev, wanted for his role as a separatist leader and now living in London.Russia’s presidential press service also issued a statement. “Russia is one of the first countries faced with the dangers of global terrorism, and unfortunately we are no stranger to al-Qaeda.”The Kremlin also highlighted the need for global anti-terror cooperation.?Why bin Laden livesDespite the upbeat official response, Moskovsky Komsomolets warned that the death of the al-Qaeda leader did not mean an end to global terrorism.In a front-page editorial the newspaper warned that the al-Qaeda chief would be replaced and that, until a more compelling alternative could be offered to the angry youth of the Arab world, support for anti-Western terrorism would remain.“The fact is that bin Laden-ism will live and thrive until a certain anti-bin Laden spiritual leader can offer a less bloody response,” the editorial concluded.“If such a person has appeared in the Islamic world his name is still unknown. So, until then, Osama bin Laden is more alive than dead.”Al Qaeda in Russia: 3 May, 2011, 08:35Edited: 3 May, 2011, 08:35 By Ivan Yegorov Russian special services have been targeting insurgent leaders in special operations for 15 years.? Russia has suffered no less, if not more, than the US from the actions of Al Qaeda and its leader, Osama bin Laden. The average American learned about the terrorist organization after September 11, 2011, but this radical extremism had found its way into our country in the mid-1990s during the first Chechnya campaign, and peaked in the second. It was Al Qaeda that formed numerous battalions of Arab mercenaries to fight against “the infidels” in the North Caucasus. According to the Russian intelligence agencies, one of bin Laden’s first envoys was Abu Sayyaf, who personally conducted negotiations with the Chechen leadership in the 1990s. At the same time, another Al Qaeda representative, the notorious Khattab, after getting into Chechnya, immediately set up militant training camps. Meanwhile, the more dignified “Russian” militants headed for “training” in Afghanistan and Pakistan. Incidentally, the latter are still active. According to intelligence agencies, Russian Wahhabi Vitaly Razdobudko and other triggermen of the North Caucasian underground studied demolition techniques in one of these camps in Pakistan.?????????????? Relations with Al Qaeda were built not only at the level of “an exchange” of skills and militants. Meetings on the highest level were conducted. In 1997-1998, when the Taliban controlled practically the entire territory of Afghanistan, the main terrorist ideologists, Zelimkhan Yandarbiyev and Movladi Udugov, visited the country. First, they met with Osama’s righthand-man and leader of the Taliban, Mullah Muhammad Omar. And a while later, in a suburb of Kandahar, they were able to meet with “the terrible and awful” bin Laden himself. In January 2000, after another meeting with Yandarbiyev, Mullah Omar made the decision that the Taliban recognizes the independence of Ichkeria and announced the establishment of diplomatic relations with Aslan Maskhadov’s government.???? According to the head of the State Duma Foreign Affairs Committee, Konstantin Kosachev, “we have reasons to believe that Osama bin Laden was involved in a number of terrorist attacks committed in our country.” Bin-Laden’s destruction is a great political achievement by US President Barack Obama, but this event will have practically no effect on Al Qaeda’s management, says Russia’s permanent envoy to NATO, Dmitry Rogozin. In his opinion, bin Laden has long distanced himself from hands-on management and played an exclusively symbolic role. Unfortunately, in the 10 years of the search for Osama bin Laden, he and his entourage were able to socialize a new generation of young predators. Thus, in death, bin Laden will continue being the symbol of the radical extremist ideology, just as he was in life, says Rogozin.????? “This is a positive result, which has been awaited for more than 10 years. As they say, it’s better late than never; and there is hope that his death will advance the international community in the fight against terrorism,” said Chechen President Ramzan Kadyrov. At the same time, he noted that there are no guarantees that another bloodthirsty villain won’t appear tomorrow who will be promoted as the new leader of Al Qaeda and other similar organizations. And in order for this not to happen, we need to stop dividing terrorists and terrorist organizations into “bad” and “not so bad,” noted Kadyrov.?? As for the current activity of Al Qaeda emissaries in Russia, one should not assume that this activity has declined.? “The training for ‘jihad’ is being conducted through all channels, including through the uncontrolled rise in the number of trips the Muslim youth take to study abroad,” a high-ranking source in one of Russia’s intelligence agencies told Rossiyskaya Gazeta (RG). “And there, in addition to theological education, students are taught the skills of conspiracy and diversionary-subversive activity.”???? Eventually, these “students” become heads of the so-called “Islamic jamiat.” Today, in a single constituent territory, which happens to be very distant from the North Caucasus, eight organizations have been identified as being engaged in active recruitment of youth, including in universities. The recruitment of female suicide bombers is expanding. Meanwhile, according to intelligence data, followers of Hizb ut-Tahrir al-Islami and the Taliban movement, which have been banned in Russia, are trying to create new cells in several regions of the country. RG has been informed by the National Anti-Terrorism Committee (NAC) press service that last week one of the criminals who was liquidated in Chechnya has been identified as Al Qaeda’s main emissary in the North Caucasus – a Saudi Arabia native going by the nom de guerre of Moganned. According to the NAC, Moganned resided in the North Caucasus beginning in 1999, when he arrived in the Republic of Chechnya to replenish Khattab’s group from the territory of the Pankisi Gorge in Georgia.????? After the neutralization of Khattab and his successors by Russian FSB officers in 2002, Moganned de facto became the principal guarantor and “coordinator” of the monetary flow from abroad for the activities of the terrorist underground.?? The NAC notes that Moganned, together with Doku Umarov, was the most well-known figure among the criminals, was regarded as an indisputable religious authority figure and an influential field commander. According to the information obtained earlier from militants, in recent years Moganned competed with Umarov for control over the criminal underground. Practically all of the terrorist attacks with suicide bombers which took place on Russian territory within recent years were organized with his direct involvement.???? According to the Russian FSB, Moganned was planning to organize a transfer of new armed gang members from Georgia to the North Caucasus in the spring-summer of 2011 and ensure, through his subordinate militia, full control over the movement of gang members in the North Caucasus. As was reported by the NAC, Moganned, together with Umarov, was on the most-wanted list of the intelligence and law enforcement agencies. In the fall of last year, due to continuous FSB and Russia’s Ministry of Interior’s search operations, he went into hiding and was found due to the well-coordinated efforts of the republican and federal law enforcement agencies and special services.????? It should be noted that targeted elimination of separatist leaders began in April 1996 with the destruction of Dzhokhar Dudayev. Then, while speaking on a satellite telephone, he was killed by a guided aircraft missile.???? The well-known Arab terrorist Khattab was liquidated in March 2002, as a result of a cunning operation by the Russian special services. Khattab was delivered a letter from his mother, and the paper was soaked in poison.? In February 2004, in the Qatari capital of Doha, the SUV of one of the Chechen separatist leaders, Dzhokhar Dudayev’s associate and one of the apologists for radical extremism in North Caucasus – Zelimkhan Yandarbiyev – was blown up. Russia had spent three years asking, in vain, for his extradition from the Qatari authorities. Instead of extraditing him, the Qatari leadership gave Yandarbiyev political asylum – and that is considering the fact that in 2003, the UN Security Council Al Qaeda and Taliban Sanctions Committee approved Russia’s proposal to include Zelimkhan Yandarbiyev in the international list of terrorists. Immediately after the explosion, Moscow officially denied any involvement. Later, however, the Qatari court sentenced two Russians, Anatoly Belyashkov and Vasily Pokshev, to life in prison for the murder of the leader of Chechen separatists. Both of the convicts, who according to some sources were officers of the Main Intelligence Directorate, were handed over to Russia after the verdict was announced.?????????? In March 2005, in the Chechen village of Tolstoy-Yurt, another president of the self-proclaimed Republic of Ichkeria, Aslan Maskhadov, was killed. Special service officers surrounded him in one of his homes. For an hour, they tried to negotiate with Maskhadov, but he refused to surrender.???? In July 2006, as a result of a planned intelligence operation – during the purchase of a Kamaz truck loaded with weapons – perhaps the most notorious terrorist, Shamil Basayev, was killed. It should be noted that very rarely have special service officers managed to take leaders of the criminal underground alive.? They have never voluntarily turned themselves in – firing back to the bitter end or exploding themselves. One exception was the operation to capture and transfer to Moscow Salman Raduyev, an odious field commander and Dzhokhar Dudayev’s son-in-law. Last year, intelligence agencies were able to make significant headway by taking alive Ali Taziyev, also known as Magomed Yevloyev or Magas. According to the FSB, Magas had, together with Basayev, organized the attack on Nazran in 2004. Subsequently, it was discovered that he was involved in organizing the explosions on two buses in Stavropol, as well as in the kidnapping of the former Ingush President Murat Zyazikov’s relative. In 2009, the terrorist organized the explosion of the internal affairs building of Nazran, killing a large number of law enforcement officers. It was he who prepared the assassination attempt of Ingushetia’s current president, Yevkurov, who sustained serious injuries as a result. According to various reports, after Magas began to testify, supplying information on his accomplices and appearances, the criminal underground of Ingushetia suffered a severe blow – dozens of militants were destroyed and arrested.??????????? So far, the fate of the leader of the armed gang in the North Caucasus, Doku Umarov, who was also targeted in a special operation in late March, remains uncertain.? Then, as a result of a surgical air force strike and a ground operation, the terrorist base in the Sunzha District of Ingushetia, a training ground for suicide bombers, was destroyed. Among the 19 bodies of the destroyed militants, some were recognized as being Umarov’s bodyguards and one as his personal doctor. The remains of the top terrorist himself, however, were not found. However, Doku Umarov, who was not only responsible for the command, but also for the criminal ideology and who actively promoted himself online at any given opportunity, has been idle for already more than a month.Medvedev's New U.S. Role Model May 2011By Mark FeyginPrime Minister Vladimir Putin clearly had the most influence on Dmitry Medvedev in the beginning of Medvedev’s presidential term in 2008. But starting a year or so later, Medvedev’s political role model began to shift away from Putin and toward U.S. President Barack Obama when Medvedev started adopting Obama’s style, language and, most important, many of his political views. It is fully possible that Obama’s decision to run for re-election inspired Medvedev to seriously consider doing the same. During an interview on Chinese television on April 12, Medvedev promised to make an official announcement about his intentions in the nearest future. A day later, Putin said an early announcement on the 2012 race could? inhibit the work of government employees. “If we now send out some nervous signals, half of the administration and the bigger half of the government will stop working because they expect some change,” Putin said. Many analysts concluded that this disagreement was a sign of a more intense struggle among Kremlin and business clans. But for the oligarchs, who remain the only real source of power in Russia, the choice between Medvedev and Putin is not of fundamental concern. They know that either candidate will defend their main corporate interests in exchange for loyalty. Therefore, personality differences between the two leaders are largely irrelevant. Of course, Medvedev’s strong points are his young age, modernization program and his better reputation in the West. Medvedev has been more successful than Putin at exporting a liberal image of a new generation of Russians and is therefore in a better position to satisfy the oligarchs’ desire to keep their assets in the West secure, as well as helping to whitewash their own questionable reputations. Another factor in Medvedev’s favor is that Putin is showing unsettling signs of excessive narcissism and an almost obsessive desire to remain in power indefinitely. But there may be another reason to explain why Medvedev has come out of his shell in recent weeks. Medvedev, by nature, tends to be very dependent on others, a trait that was typical of the Soviet intelligentsia. He has been strongly influenced by a range of people throughout his career, from his wife, Svetlana, to his political benefactor, Putin. Incidentally, Obama has already started forming his campaign staff and starting fundraising activities. In a sense, that sets an example of the West’s commonly accepted standards for political practice that Medvedev can try to emulate. According to Medvedev’s understanding, Russia can only become a respected member on the global arena if it plays the game according to generally accepted rules, with the main principles being free and fair elections and a limit to the number of terms a leader can serve in office. One can assume that Medvedev was not particularly delighted to learn that Western diplomats compared to him Robin rather than Batman. He is also visibly frustrated by the inability to turn his proposals into reality and his powerlessness to run a proper and legitimate Western-style election campaign. His desire to play the leading role, like Obama, rather than to be perpetually cast as a sidekick will prod him into taking actions that challenge Putin’s vanity and seniority status in the tandem. Nonetheless, Putin is unlikely to put up strong resistance to Medvedev’s candidacy. This approach could win points for Putin, adding credence to the myth that he actually supports political competition. It also dovetails nicely with Medvedev’s passion for modernizing, however superficially, Russia’s political process. Instead of following Putin’s lead, Medvedev will likely try to run a Western-style presidential election campaign, replete with pseudo-debates, Internet campaign ads, fundraisers and even campaign rallies with cheerleaders.You can see Medvedev’s admiration for modernization when he shows an almost childlike delight with the Internet and techno gadgets of every type. His eyes light up when he talks about implementing a new technology or approach that would take Russia out of the “analog” 20th century and into the “digital” 21st century, with Skolkovo leading the way. Modern election campaign tactics and practices are no exception. Medvedev will seek to duplicate Obama’s own campaign as much as possible from start to finish. But these are only superficial similarities and do not reflect the fundamental difference between the two political systems. Ultimately, it will likely be just another inept attempt by Russia to copy the West. Mark Feygin, a State Duma deputy from 1993 to 1995, is a political analyst.National Economic TrendsRussian Manufacturing Growth Has Largest Monthly Fall Since 2008 Stephen Bierman - May 3, 2011 6:20 AM GMT+0200 Russian manufacturing growth slowed in April to the weakest level since November, the largest monthly drop since December 2008, after export orders declined. The Purchasing Managers’ Index fell to a seasonally adjusted 52.1 from 55.6 in March, HSBC Holdings Plc (HSBA) said in a report today, citing data compiled by Markit Economics, a financial information services company. The survey-based index indicates a contraction when below 50 and growth with a figure above 50. “A decline in new export orders is worrisome as it usually points to the direction of change in overall manufacturing growth momentum in the coming months,” Alexander Morozov, HSBC’s chief economist for Russia and the CIS said in the report. The index fell for the first time in five months, according to the report. To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@. To contact the editor responsible for this story: Will Kennedy at wkennedy3@. Russian Barley Leads Grain Price Decline Last Week, SovEcon Says Marina Sysoyeva - May 3, 2011 9:33 AM GMT+0200 Russia’s feed barley prices dropped 4.8 percent to 6,450 rubles ($236) a metric ton last week, leading grains lower, SovEcon said on its website. Third-grade wheat declined 0.9 percent to 5,675 rubles a ton and feed wheat slid 0.5 percent to 5,125 rubles a ton, the Moscow-based researcher said. Fourth-grade milling wheat and milling rye were unchanged. Sunflower seeds fell 1.4 percent to 18,050 rubles a ton. To contact the reporter on this story: Marina Sysoyeva in Moscow msysoyeva@ To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@ Russia banks up bids for cbank repo after rate rise May 3, 2011 4:31am EDT * Injects 17.1 bln roubles at first auction * Up from 9.85 bln roubles at two auctions on April 29 * Liquidity strains persist after tax payments, rate rise MOSCOW, May 3 (Reuters) - The Russian central bank injected17.1 billion roubles ($624.1 million) into the banking system atits first auction on Tuesday, doubling the amount of money onoffer to 20 billion roubles as local liquidity strains persist. Tax payments in April, which analysts said amounted toaround 450 billion roubles, and the central bank's decision toraise all main interest rates have hit market liquidity,prompting banks to seek cash at the central bank. In two auctions on Friday the central bank provided bankswith 9.85 billion roubles, marking the first set of twice-dailyone-day repo auctions since late December. Following are results of the latest auctions, provided bythe central bank on its Web site (cbr.ru): Date May 3 April 29 April 29 Session 1st 2nd 1st Amount (bln rbls) 17.12 5.30 4.55 Bids (blns rbls) 17.12 5.30 4.55 Average rate 5.52 5.35 5.39 (Writing by Andrey Ostroukh; editing by David Stamp) ($1=27.40 Rouble)State's role in Russian bank sector continues to grow Aris in Moscow May 3, 2011Already the second biggest bank in the country, Russian state-owned VTB Bank has improved its position further by taking over the Bank of Moscow, in a deal which some worry takes the state's share of Russia's banking sector to too high a level, but others say is part of a welcome bout of consolidation. On April 27, VTB said it has no plans to increase the 46.48% stake in Bank of Moscow it acquired in February for a reputed $3.5bn, but has moved to consolidate its hold over the lender by installing VTB executive Mikhail Kuzovlyov as the bank's chief after a Moscow court in April removed the previous president and major shareholder Andrei Borodin from his position. Bank of Moscow, Russia's fifth largest commercial bank, was set up in the mid-1990s as the pocket bank for Moscow's City government. However, following the ousting of Moscow mayor Yuri Luzhkov at the end of September the bank's future was thrown into uncertainty and the Kremlin made its move in November, with Deputy Prime Minister and Finance Minister Alexei Kudrin announcing that VTB was interested in buying the bank. The state bank's VTB-24 retail operation is already a leader in providing consumer credits and mortgages, but adding Bank of Moscow 500-plus branches would put VTB into a league of its own behind its sister Sberbank, which has the lion's share of Russia's retail banking business. However, the deal didn't go smoothly. At first the Bank of Moscow's management said they were willing to sell their 20.3% to VTB, but things got ugly when they bought a legal case in March to try to block VTB's purchase of a small stake in the bank from the US investment bank Goldman Sachs and then announced a rival bid for the City of Moscow's stake in the bank. Borodin then found himself implicated in a $440m corruption investigation into the dodgy loans made to a property company controlled by Luzhkov's wife and the richest woman in Russia, Elena Baturina. When he was called in for questioning in April, he fled to London and checked into hospital for treatment. A week later he agreed to sell his stake at what analysts report was below market rates. "It is clear what actually happened," one banking source tells bne. "The old management were not happy with being pushed out of the bank and were holding out for a high price for their stake – a price VTB was not prepared to pay. So the management tried to play hardball, but bit off more than they could chew." Mission creep The VTB takeover significantly increases the state's share of the country's banking sector and follows on the heels of Sberbank's takeover of Russia's leading investment bank Troika Dialog in February. Both banks have become noticeably more aggressive in building up their business following the economic crisis. Several foreign banks have already pulled out because of the growing competition; the latest was HSBC, which announced on April 26 it was abandoning a two-year drive to build up a retail operation in Russia. According to Oleg Vyugin, CEO of the private MDM Bank and former head of the Federal Financial Markets Service, state banks are preventing the growth of private banks, which thanks to their quango-like status enjoy access to significantly lower borrowing costs than the privately owned banks. "The recession was tougher for foreign banks that have only operated on the Russian market for a few years than for foreign banks that had established themselves in the early 2000s during the period of rapid economic growth. Latecomer banks were hit hardest by the recession as they failed to sufficiently increase market share to weather the crisis," says Seija Lainela, an analyst with the Bank of Finland. The Kremlin says that the increase in its share of the banking sector is temporary and that it is powerless to prevent it. "Technically, [the Bank of Moscow] deal has increased the state's share in the banking sector, but the plan is to sell the state's shares in [VTB and Sberbank] and increase the competition in the sector. The other side of the coin is the state can't restrict Sberbank's place in the market, as how can we say to the minority shareholders there is a cap on the bank's ability to compete?" Arkady Dvorkovich, economics aide to president Dmitry Medvedev, said in a recent interview with bne. Indeed, the state has been busily selling shares in both banks. VTB raised $8bn with an IPO in May 2007 by selling a 22.5% stake and sold another 10% in February raising another $3bn. The state has said that it wants to sell another 10% as soon as possible. Likewise, the government owns 60.25% of Sberbank and shortly after the purchase of Troika Dialog, Russia's National Banking Council signed off on a decision to sell another 7.58% to the public, probably later this year. Some investors are happy to see both banks growing in size and power. "On the one hand, the state is making it more difficult for private banks to operate, but on the other we are starting to see the beginning of badly needed consolidation in the banking sector. Taking over banks that are clearly not run on commercial lines but for the benefit of their owners is, all said and done, a good thing," argues Roland Nash, chief investment officer at Verno Capital. Business, Energy or Environmental regulations or discussionsSeverstal, Rosneft and Lukoil: Russian Stock Market Preview Stephen Bierman - May 2, 2011 10:00 PM GMT+0200 The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading in Moscow. The 30-stock Micex Index lost 0.5 percent to 1,741.84. OAO Severstal (CHMF RX): Russia’s largest steelmaker temporarily shut a plant in Mississippi after severe weather led to a power outage. Severstal gained 0.7 percent to 502.40 rubles. OAO Rosneft (ROSN RX): Brent crude prices dropped the most in almost seven weeks after U.S. operatives killed Al-Qaeda leader Osama bin Laden. Russia’s largest oil producer fell 1 percent to 244.19 rubles. OAO Lukoil (LKOH RX): Russia’s second-largest oil producer acquired a 50 percent stake in a Vietnamese offshore block that may hold over 180 million metric tons of oil equivalent. Lukoil fell 0.6 percent to 1,893.40 rubles. To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@. To contact the editor responsible for this story: Will Kennedy at wkennedy3@. RusHydro Agrees With China State Grid to Seek Hydro, Renewables Projects Torrey Clark - May 3, 2011 8:15 AM GMT+0200 OAO RusHydro, Russia’s largest producer of renewable energy, signed an agreement with China State Grid Corp. on possible hydropower and alternative energy projects, including investments in shares and construction, the Moscow-based company said in a regulatory filing. To contact the editor responsible for this story: Torrey Clark at tclark8@ Federal Grid Gains First Day in Four After Posting 2010 Profit Jason Corcoran - May 3, 2011 9:02 AM GMT+0200 Federal Grid Co. gained for the first day in four after the Russian monopoly for high-voltage transmission swung to a profit of 18.4 billion rubles ($672 million) last year. The stock gained 1.4 percent to 36.7 kopeks by 10:47 a.m. in Moscow. Net income adjusted for impairment charges and asset revaluation increased 63 percent to 27.9 billion rubles, the company said today in a statement. To contact the editor responsible for this story: Gavin Serkin Russia's FSK adjusted net profit up 63 pct in 2010 EDTMOSCOW, May 3 (Reuters) - Russian power grid company FSK (FEES.MM: Quote, Profile, Research, Stock Buzz) (FEESq.L: Quote, Profile, Research, Stock Buzz) said on Tuesday its adjusted net profit rose 62.6 percent in 2010 to 27.9 billion roubles ($1.02 billion).Revenue increased 29.4 percent to 113.33 billion roubles, and adjusted earnings before interest, taxation, depreciation and amortisation rose by 58.9 percent to 67.7 billion roubles.Adjusted figures do not include impairment, revaluation of fixed assets and other non-cash items. (Reporting by Anastasia Lyrchikova; writing by Maria Kiselyova; editing by Andrey Ostroukh) ($1=27.40 Rouble) Polymetal Slides 1st Day in 3 After Silver Drops Most Since 2008 Jason Corcoran - May 3, 2011 10:21 AM GMT+0200 OAO Polymetal, the Russian silver producer, slipped for the first day in three after futures on the metal plunged by the most yesterday since October 2008. Polymetal, which also produces gold, dropped 2.2 percent to 527.7 rubles by 12:05 p.m. in Moscow, poised for the steepest decline in more than a week. Silver futures plunged as much as 13 percent yesterday as CME Group Inc. raised the amount of cash that traders must deposit to trade. The metal rose 2.5 percent to $44.9063 an ounce today, still trading below the April 29 close of $47.9050. The Russian stock market was closed yesterday for a public holiday. To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@ To contact the editor responsible for this story: Gavin Serkin at gserkin@ May 03, 2011 11:31Petropavlovsk board seeks mandate to raise borrowing limit to $1.5 bln. May 3 (Interfax) - Directors at gold miner Petropavlovsk plc will ask shareholders at their AGM to sanction an increase in the borrowing limit to $1.5 billion from $700 million, the company says in materials for the AGM."The Directors believe that it would be prudent to request such a sanction by ordinary resolution to vary this restriction. The existing limit is no longer considered appropriate given the Group's development and expansion as well as its anticipated expenditure," the company said.As at December 31, 2010, the Group's total borrowings were $492.1 million, compared with $95.5 million at the end of 2009."In addition to the normal level of borrowing, the maximum amount would need to allow sufficient flexibility to provide normal liquidity headroom," the company said.It also said permission would be sought to issue new shares representing up to 66% of current issued share capital and to buy back up to 5%.Directors would have authority to allot shares up to an aggregate nominal amount of a maximum of 619,938 pounds sterling, or approximately 33% of the current issued ordinary share capital; and an additional number of ordinary shares up to an aggregate nominal amount of a maximum of 619,938, pounds, or a further 33% of the current issued ordinary share capital, but only for the purposes of a rights issue in which the new shares are offered to existing shareholders in proportion to their existing shareholdings. As a result, the directors could allot shares representing up to two-thirds of the current issued share capital pursuant to a rights issue. However, if the Directors do conduct a rights issue and the number of shares issued exceeds one-third of the issued share capital and the monetary proceeds from the rights issue exceed one-third of the Company's pre-issue market capitalisation, then, in accordance with the ABI's guidance, the Directors will all offer themselves for re-election at the Annual General Meeting following the decision to make the rights issue."The Directors will continue to seek to renew these authorities at each AGM, in accordance with current best practice. The Directors have no current plans to allot shares, except in connection with the Company's employee share schemes," Petropavlovsk said.In the event of a share issue, the directors are also requesting the right to sell outside shareholders shares, without a rights offer, with a nominal value of up to 93,930 pounds or 5% of current issued share capital.In addition, the board is asking for a mandate to buy up to 9,393,000 ordinary shares or 5% of issued capital on the LSE with the opportunity to hold these shares in treasury or cancel them."The Board has no present intention of exercising this power and the granting of this authority should not be taken to imply that any Ordinary Shares will be purchased. It is the intention of the Directors only to exercise such authority if satisfied that to do so would be in the best interests of the Company," the statement said.Petropavlovsk plc was set up through a merger between gold producer Peter Hambro Mining plc and minerals company Aricom plc in April 2009. The merger created one of the leading mining companies in Russia's Far East. Petropavlovsk spun the iron ore division off in the autumn of 2010.Pr(Our editorial staff can be reached at eng.editors@interfax.ru) Russian billionaire readies an offer for Warner Music 3rd May 2011, 3:54am GMT M&A RICHARD PARTINGTON RUSSIAN billionaire Len Blavatnik is said to be on the verge of making a binding offer for Warner music, the record label behind Madonna and Oasis, in a deal valued at more than $3bn (?1.8bn).He will lead a consortium of bidders including the Gores brothers, the US billionaire financiers, to buy the company in which he already owns an interest.Yet a late challenge to the offer could be lodged at the eleventh hour by BMG Rights Management, jointly owned by German music giant Bertelsmann and US private equity firm KKR, and Universal Music Group. The two are also said to be interested in buying British music label EMI from its creditors, Citigroup, as part of a plot to split up the assets held by both publishing firms.Russian company to manufacture robots in Estonia , 09:04Sergey Gadalov, a Russian businessman whose company Kvadrat SG manufactures robots in St Petersburg, says that he chose Narva in Estonia as a new production base since there is plenty of technically qualified people and it was easy to do things, writes ?rip?ev.“We are not doing simple assembly, our customers include Ford Motor Company, Caterpillar, Electrolux and Henke-Era,” said Gadalov who has set up ASG Robotics AS in Estonia for high-tech production in Narva with a grant from Enterprise Estonia.Gadalov added: "I have been doing business in Russia over 20 years. I am starting business in Estonia only now, but it is important to see that all state structures such as tax authority are operating properly. Things get done quickly and people here are friendlier”. Alfa puts $1bn price tag on its 25% stake in Russia's CTC Media Aris in Moscow May 2, 2011In a sign of the growth potential of Russia's advertising market, Alfa Group has slapped a $1bn price tag on its stake in the country's largest commercial broadcaster CTC Media. Russia's leading financial-industrial conglomerate Alfa said on April 28 that it's in talks to sell its 25.3% stake in CTC (pronounced “STS” – the company uses the Cyrillic version of its name in print) to Russia's National Media Group, but has first offered the stake to fellow shareholder Sweden's Modern Times Group, which is owner of 38.3% of CTC shares, at a price of just over $27 per share, or $1.07bn. That's an 18% premium to Wednesday's closing price on Nasdaq and almost double what the shares IPO'd at in the summer of 2006. Modern Times has until May 25 to respond, though analysts say it's unlikely that the Swedish firm will acquire Alfa's stake because Russian legislation restricts the stake held by foreign investors in television companies at 50%. More's the pity for the Swedes, because CEO Anton Kudryashov claims that CTC is not only the most successful commercial TV company in Russia, but the most profitable media company in the world, and it looks set to benefit from the surge in advertising spending over the coming years. "In terms of ad spend, Russia is already the ninth biggest market in the world, the fifth largest in Europe and, if current growth continues, it will be the largest in Europe as soon as 2013," Kudryashov told bne in an interview just before the news broke that Alfa is looking to sell its stake. Television is by far the most important media channel in Russia. In a country that spans half the globe, sets in the front room remain the main source of news and entertainment for millions of Russians living in the far-flung regions and the only way that multinationals can cost-effectively sell their fast-moving-consumer-goods (FMCGs) to the entire 142m strong population. The upshot is that while TV advertising typically accounts for a third of the total ad spending in the West (in the UK online ad spending recently overtook that for TV), in Russia half of every ruble spent on advertising goes on TV ads. Russia's total ad spending in 2010 was $4.2bn – more than 10 times that of Ukraine's, the second largest in the region with a third of the population – and has been growing by 25-30% a year. The crisis took the edge off this ballistic growth, when the total ad spending in Russia fell 18% in ruble terms in 2008 and by more than 40% in dollar terms, but Kudryashov reckons it will have recovered all the ground lost by the end of this year. And there's still a lot of room for growth: in the West the total amount of GDP spent on ads is typically equivalent to 1.0-1.5%. Russia's spending hit a peak in 2008 of 0.7%, but fell back to 0.5% in 2010. "The Russian market is large in size, but still immature in nature," he says. "In the West, cars and financial services are amongst the top-five biggest spenders, but in Russia these products only account for 2% of the total spend - of course this will be a major source of growth as these areas develop." All this makes CTC a valuable proposition. Nadeem Moulvi, an equity research analyst, picks CTC as one his top-10 growth stocks. He says the company should grow its profits at an annual rate of 60% compared with the 19% growth rate of the wider US broadcasting and cable TV industry. The company is debt free and has maintained a net profit margin of 24% during the past five years, he says. Pure entertainment CTC began life as a small broadcaster in St Petersburg in 1994 and only went nationwide in 1996. Things started to move fast for the company when Modern Times bought out the founders in 1999 and then brought in Alfa in 2003. This investment cycle culminated in an IPO on Nasdaq in 2006 that raised $200m, which provided the funds for a rapid expansion and a string of acquisitions including two more broadcasters – Domashny, the only channel in Russia to specifically target women, and DTV, which specialises in reality tv – as well as some production companies to produce content in-house. CTC focuses solely on entertainment, broadcasting a mix of domestically produced content - which makes up two-thirds of its programming - and international shows, targeting viewers aged 6–54, especially younger audiences. Kudryashov says the station made a conscious choice to carry no news or socially orientated programming. "News is not dangerous, but it does require a lot of coordination with the supervising authorities," says Kudryashov. "News is expensive, as you need a big staff and the state can lose money on news production, we can't." While it's hard to compete as a news broadcaster, it is easier to cater to the demand for pure entertainment. With its in-house production and extensive market research, this is where CTC has a market advantage, which allows it to capture the advertising spending. This is a crucial advantage in Russia's highly competitive TV market. There are 20 free-to-air channels, but the top five account for 68% of the audience share and 80% of the advertising revenues, says Kudryashov. By 2003, the broadcaster had built up an 11% audience share and taking into account its small channels CTC is the third or fourth largest channel in the country, reaching over 100m people and nine out of every 10 households in the country. The main challenge has been to keep up with the changing tastes of Russia's viewing audience. A year after the Soviet Union collapsed, a wave of Brazilian and Mexican soap operas appeared on Russia's airwaves and were a smash hit; shows like Mexico's telenovelas "Simply Maria" and "The Rich Also Cry" could clear the streets of Moscow for a particularly dramatic instalment. These days, tastes have become more sophisticated, says Kudryashov, and CTC either makes or buys two-thirds of its content domestically, with the rest being mostly Hollywood blockbusters. Many of the home-grown shows are adaptations of successful formulae developed overseas and transposed into a Russian cultural setting. For example, CTC bought a license to produce the sitcom "Born not pretty" based on the popular Colombian telenovela that is better known as "Ugly Betty" in the West. "Nowadays, there is more and more demand for original Russian produced content, but the problem is where to get it from. Production is not mature and there are not enough writers to create the content needed to meet the demand," says Kudryashov. Activity in the Oil and Gas sector (including regulatory)Russia reimposes duty on Kyrgyz fuel imports Report2011-05-02BISHKEK – Russia imposed a stiff new duty of US $408.30 per tonne on exports of gasoline to Kyrgyzstan effective May 1, 24.kg reported April 29. Russian officials attributed the re-imposition of the duty to the need to supply the Russian internal market. However, Russia might cancel that duty after two or three months, once supply to its domestic market stabilises, Russian Deputy Finance Minister Sergei Shatalov said, according to . About 90% of fuel and lubricating oil that Kyrgyzstan imports comes from Russia, analyst Zhumakadyr Akeneyev told 24.kg. Russia has lifted and reimposed duties on Kyrgyz purchases of fuel several times in the past year, EurasiaNet reported April 29. It cancelled those duties at the end of March. GE Technology Helps Drive Russia Oil and Gas Industry Newswire - 02 May 2011 Release date- 28042011 - HOUSTON, TEXAS and ASTRAKHAN, RUSSIA - One of the world's leading oil and gas companies, LUKOIL, will use GE's (NYSE: GE) innovative aeroderivative technology to provide additional energy for its operations in Astrakhan, Russia, continuing GE's history of growth in the region. Four GE LM6000-PF dual fuel dry low emissions (DLE) Sprint aeroderivative gas turbines will help provide heat and power for LUKOIL's operations in the region where oil and gas production is a primary industry. The project represents the first dual fuel DLE LM6000-PF units packaged from GE's Houston facility. These units use two fuels- diesel and natural gas. These new turbines will join two LM6000s that began service for LUKOIL in Astrakhan on April 26, 2011. 'The LM6000's proven track record and GE's steadfast commitment to develop innovative global energy solutions, coupled with the ability to use two types of fuel and to reduce emissions, made this a good choice for LUKOIL,' said Darryl Wilson, vice president-aeroderivative gas turbines for GE Power & Water. 'The LM6000 product heritage of nearly 1,000 installed units and 20 million operating hours with more than 99.8 percent reliability and complete operational flexibility has made it the engine of choice in its class by the energy industry over the last 15 years. We will continue to provide solutions that drive customer success and productivity.' The LM6000-PF dual fuel DLE capability gives it the capability to operate at low emission levels in gas or liquid fuels without the need for water injection. The LM6000-PF reduces CO2 emissions by 15,000 metric tons, reduces gas consumption by over 278,000 GJ, reduces NOx emissions by 360,000 Kg and saves 37,400 cubic meters of water yearly. The CO2 emissions reduction is the equivalent of removing 7,600 cars from E.U. roads and water savings is the equivalent to filling 15 Olympic-size swimming pools every year. The LM6000-PF is the second aeroderivative gas turbine to receive GE's ecomagination certification, joining the LMS100 in providing customers with additional proven frame and gas turbine technologies to meet the growing need in the world marketplace. LUKOIL is one of the world's leading vertically integrated oil and gas companies. Main activities of the company are exploration and production of oil and gas, production of petroleum products and petrochemicals and marketing of these outputs. Most of the LUKOIL's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. LUKOIL owns modern refineries, gas processing and petrochemical plants in Russia, Eastern and Western Europe, near-abroad countries. Its products are marketed in Russia, Eastern and Western Europe, in near-abroad countries and in the United States. For more than 100 years GE has been supplying equipment to develop Russia's energy infrastructure. GE Energy has had a significant presence in Russia and CIS since the early 1900s. Today more than 600 gas-turbine units, 69 steam turbines, 660 compressors, 400 of GE's reciprocating gas engines and more than 600 units of other equipment including air coolers, condensers, gas separators and pumps produced by GE Energy and GE Oil & Gas have been installed in Russia and CIS to date. This contract is the latest in a series of announcements from GE's aeroderivative business. On Nov. 17, GE announced its first contract to provide two LMS100 aeroderivative gas turbines to meet current and future energy growth in Brazil for Bertin Energia. On Oct. 7, GE announced that following the initial success of the world's first use of sugarcane-based ethanol in a gas turbine system, it has received a contract from Petrobras to convert a second unit at the site to burn this alternative fuel. That same day, the company announced that it is building a US$ 10 million facility in Petropolis, dedicated to servicing the aeroderivative and oil and gas sectors in Latin America. GazpromNegotiations to amend 10 year natural gas deal start with Russians, 03 May 2011Ukrainian Journal reported that Ukraine and Russia began formal negotiations aimed at amending the 10 year natural gas supply agreement signed in 2009 in response to Kiev’s persistent demands for lower natural gas prices.Mr Yuriy Boyko energy minister of Russia traveled to Moscow for a meeting with Mr Alexei Miller CEO of Gazprom begin the talks. The talks are a breakthrough after Russia has been refusing to discuss even the idea of amending the agreement over the past 12 months.(Sourced from )MAY 2, 2011, 4:00 P.M. ETGazprom To Drill First Sakhalin-3 Production Well This Year ISABEL ORDó?EZ HOUSTON—Russia's OAO Gazprom is preparing to drill its first production well at its massive Sakhalin-3 gas project in the Far East as part of its accelerated plans for the project, a company executive said."We are going to drill the first production well this year in the Kirinsky field and next year we are going to be able to supply the gas into the pipeline system," Vsevolod Cherepanov, Gazprom's head of gas Russia, told Dow Jones Newswires on Monday. Gazprom—the world's biggest producer of natural gas—originally planned to start production from the Kirinsky block at the Sakhalin-3 off Russia's Pacific Coast in 2014. Instead, the project will begin this year so that production will coincide with the completion of a major pipeline from Sakhalin via Khabarovsk to Vladivostok. Production from Sakhalin-3 will use that pipeline, said Mr. Cherepanov, who gave a presentation at the Offshore Technology Conference here. The project's schedule was speeded up due to increased market demand and because Gazprom wants production under way in time for the 2012 Asia-Pacific Economic Cooperation summit, Mr. Cherepanov said. The region is the leading market for liquefied natural gas, or LNG. He said some Japanese consortia, including a group led by Mitsui & Co., are in discussions with Gazprom to have some production from Sakhalin-3 going to Japan and to build LNG plants in Russia.The Sakhalin island holds vast hydrocarbon reserves and is a part of Russia's ambition to diversify energy exports away from Europe to Asian markets. Natural-gas reserves at the Sakhalin-3 project are estimated at 1.4 trillion cubic meters, of which one trillion are in the Kirinsky block. Russia is in talks with China about a long-term gas supply deal and hopes to reach a final agreement in July. In 2009, the Gazprom-led Sakhalin-2 consortium started exporting LNG to Asian-Pacific markets from Russia's first LNG plant. —Jacob Gronholt-Pedersen in Moscow contributed to this article. Write to Isabel Ordó?ez at isabel.ordonez@ KazRosGas was defined in charge of Imashevskoye gas field intergovernmental agreement on joint geological study and exploration of cross-border Imashevskoye gas field was signed in September 2010, according to which geological studies and exploration will be carried out followed by calculation of mineral reserves. As a result of a working meeting in Moscow between the CEOs of Gazprom and KazMunaiGas, Alexey Miller and Kairgeldy Kabyldin, KazRosGas was defined in charge of the Imashevskoye gas field, according to the press service of the Gazprom Company. An intergovernmental agreement on joint geological study and exploration of cross-border Imashevskoye gas field was signed in September 2010, according to which geological studies and exploration will be carried out followed by calculation of mineral reserves. The agreement came into force on January 17, 2011. “Gazprom” JSC and “KazMunayGas National Company” JSC were determined as authorized organizations for the implementation of the agreement. “Gazprom” and “KazMunayGas” created a joint enterprise, “KazRosGas”, on a parity basis and registered it in Kazakhstan in June 2002 for purchasing and marketing natural gas, as well as processing gas at Russian gas processing plants. The Imashevskoye gas condensate field is located on the border of Astrakhan and Atyrau regions. Its reserves are estimated at 129 billion cubic meters of gas and 21 million tons of gas condensate. ................
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