Russia



Russia 110427Basic Political DevelopmentsPM Putin to discuss cooperation between Russia and Sweden - He is in Stockholm today too meet with King Carl Gustaf XVI of Sweden, as well as with his counterpart Fredrik Reinfeldt… The program is scheduled to decide on the establishment of a Russian-Swedish Business Council, which will include large companies such as Volvo, Scania, IKEA, Oriflame, ABB, and Tetra Pak. Russia ready to increase fuel supplies to Europe, Asia - Putin: "After the disaster in Japan it became clear that nuclear power will not develop there... which means that the demand for hydrocarbons, first of all, natural gas... will grow," Putin said.Nord Stream undersea section to be completed in May -Putin: "I informed our colleagues that the works are coming to an end, the undersea section will be completed on May 15," Putin told a news conference in Copenhagen, after talks with his Danish counterpart.Putin’s visit was all business - Natural gas primed the political pumps for Vladimir Putin's first official visit to Copenhagen and renewed political cooperation between Denmark and RussiaNo instructions to call Security Council meeting on Libya - Medvedev's aide: Prikhodko's statement came hours after report by Libyan state-run JANA news agency that Tripoli urged Russia, a permanent Security Council member, to call the meeting.Medvedev not to convene UN Sec ConLittle progress reported on Customs Union - Ukraine and Russia on Tuesday made little progress in discussion over the Custom Union, a Moscow-led trade bloc, and focused instead on bilateral trade ahead of a summit in June.Ilham Aliyev receives Russian trade union leader - Mikhail Shmakov told Ilham Aliyev that the main aim of his visit to Baku was to attend the second conference on “Migration problems and challenges: the role of trade unions", one of the organizers of which is the International Labour Organization, state-run news agency AzerTAj reported.Azerbaijan’s head received a man who once demanded average wage of 3,500 euroRussia has successfully tested Sineva missileRussia successfully tests Sineva SLBMRussian military prepares for May 9 Victory parade - This year marks the 66th anniversary of Victory Day, and on May 9, Moscow’s Red Square will once again be the center of the celebrations… In addition, roughly 1,500 musicians and more than 100 pieces of military hardware are expected to take part in the annual parade, which will be commanded by Defense Minister Anatoly Serdyukov.Russia to build aerospace defence shield - Russia will build a national aerospace defense shield by the end of 2011, Chairman of the Federation Council Committee on Defense and Security Viktor Ozerov told reporters on Tuesday in the cosmonauts’ training center near MoscowRussia may lead global nuclear safety debate - Rosatom: Russia may become the global leader in discussions on safeguards for the atomic energy industry, the head of Russia's state nuclear corporation Rosatom said.No verdict yet for Russian pilot - Russian cargo pilot Konstantin Yaroshenko, who is standing trial in US Federal Court in New York on charges of smuggling cocaine, will have to continue waiting for a verdict, Russian RIA Novosti reported.Progress heads for ISS Moscow bank sale funds allegedly missingReason for crash of AN-148 determined - The cause of the crash in the Belgorod region, of an AN-148 was over speed while making an emergency landing. This is the conclusion reached by the Commission on Industry and Trade of Russia. Investigators name the ringleaders of Manezhnaya riot - Ironically the alleged leader of the nationalist riots was himself a foreigner, investigators say, picking out 23-year-old Belarusian national Igor Berezyuk.Reuters PRESS DIGEST - Russia - April 27kommersant.ruRussian potash minter Uralkali (URKA.MM: Quote, Profile, Research) is planning to close several factories at its Berezniki mining complex.Russia's state aviation authority, Rosaviatsia, has refused a dozen Russian carriers from increasing the number of charter flights they do to resorts in Bulgaria, Turkey, Greece, and Italy.vedomosti.ruThe offering price of the initial public offering (IPO) in early May in London of state-run Russian Helicopters ranges from $1.81-$2.38 billion, the daily reports.Thirty nine percent of Russians believe that Prime Minister Vladimir Putin will become president in the 2012 poll and 28 percent are predicting a victory for incumbent President Dmitry Medvedev, the paper reports citing a survey by the independent Levada Center.rg.ruRussia's anti-monopoly watchdog has launched checks at oil producers in almost 20 regions across the country, in connection with shortages of petrol.Russian arms dealer Viktor Bout, who was detained and will face a trial in the United State on charges of alleged weapons supplies to "terrorists" says in an interview with the daily that he is being treated in the prison like a "rabid dog".izvestia.ruThe daily suggests that petrol shortages in Russian regions could be caused by dealers who are selling petrol abroad. The amount of such exports could account for almost 10 percent total oil export, the daily says.The government is considering ways to return almost 40 million hectares of unused arable land to farmers which were lost in the last decade after being leased to business.Russia's Defence Ministry is planning to spend 1.3 million roubles on carnival costumes, the daily says citing the official site that publishes requests for state orders.kp.ruRussian tycoon Mikhail Prokhorov says in an interview that Russia's labour code should be reviewed to encourage people to work 60 hours a week against the current 40.ng.ruRussia's political analysts are forecasting political and social turmoil across the country over the next decade.RIA Russian Press at a Glance, Wednesday, April 27, 2011I’m treated like a rabid dog - Viktor Bout gives an exclusive interview to Rossiyskaya Gazeta from jail Aleksandr Gasyuk (New York) Schism in the Tandem Is Getting Larger - By Anders AslundLimits of e-politics: Why Alexey Navalny won’t win an election anytime soon - By Jenia UstinovaNational Economic TrendsRussia: letting the rouble go? - How much higher can the rouble go, now that it stands at its highest levels against the US dollar since late 2008? by Stefan WagstylBusiness, Energy or Environmental regulations or discussionsMail.ru, VTB, Gazprom, Rusal: Russian Equity Market PreviewMail.ru shareholders launch sale of 6.65 pct stakeMail.ru Group boost net profit 66% to $77.3 mln in 2010VimpelCom to float bonds worth $2bn M&A Up $46.8Bln, But Still Off Russia introduces progressive taxation for nickel Russia will peg its export tariff for?nickel — currently fixed at?10 percent — to?the metal prices on?the London Metals Exchange, according to?a government order seen by?Reuters on?Tuesday, with the?tariff set on?a quarterly basis and?applying if the?nickel price is equal or above $12,000 per ton.UPDATE 2-VTB affirms acquisition strategy, posts record Q4Russia's VTB posts 16 bln rbl fourth-quarter net profitRaiffeisen committed to Russian banking – paperRussia's Uralkali may close two plants –paperRussia's Acron says 2010 profit fell 16 pctAcron net profit down 16 pct to 6.3 bln rblsSiemens Starts on Major Train Order - German concern Siemens launched the?production of?38 of?54 Desiro (Lastochka) electric trains Tuesday for?Russian Railways at?a plant in?Germany. Cisco Will Assemble Boards in Zelenograd TELE2 B : Russia awarded 6 new GSM licensesRussian Finance Minister to Leave Alrosa Board Sweco expands in Russia – acquires infrastructure consultancies with 260 employeesKAMAZ ups 2011 targets Fortum's CEO Tapio Kuula gives interview to Vedomosti; comments on investments in RussiaActivity in the Oil and Gas sector (including regulatory)Russian regions suffer from petrol shortages - The Federal Anti-Monopoly Service has accused Rosneft and Gazprom Neft of a cartel agreement limiting fuel supply in the region. In response, the companies agreed to increase fuel supply 15% YoY in April- managers boost stakes in Rosneft - ??????Khudaynatov's stake rose from 0.0051% to 0.0295%. Larisa Kalanda increased her ownership from 0.0035% to 0.0068% and Pavel Fyodorov lifted his equity position from 0.014% to 0.0047%.ONGC gears up for Bashneft stake move - Rothchild and Citigroup will advise state owned ONGC on its attempt to buy a 25% stake in the Russian production and refining group which has a market value of USD 10.5 billion.Lukoil to invest $3.6bn in Caspian Sea field Expert: Georgian gas pipeline repair providing the transit of Russian gas to Armenia will be $800 millionArcland Energy Executes MOU with Russian Company for Kumskaya Neft.The East will be tempted with gas - The Japanese Fukushima nuclear power plant has encouraged Russia’s hydrocarbon explorers Russia running out of easy oil: state study - The annual ministry of natural resources survey painted a bleak Russian energy picture that also pointed to problems in future export rates of natural gas -- the domain of its largest and most important company Gazprom.GazpromNaftogaz Ukrayiny must pay more than $1b to Gazprom by May 7Dong teams with Gazprom in power deal - Denmark's Dong Energy will work with Russian gas giant Gazprom to explore opportunities for promoting gas-fired power generation in Europe, the companies have announced. Gazprom to explore Barents and Kara seas in Arctic ProvinceGazprom Skyscraper in Lakhta Gets New Web SiteGazprom to publish 2010 IFRS financials on April 28------------------------------------------------------------------------------------------Full Text ArticlesBasic Political DevelopmentsPM Putin to discuss cooperation between Russia and Sweden 27, 2011 08:22 Moscow TimePrime Minister Vladimir Putin will discuss trade and economic cooperation between Russia and Sweden in Stockholm Sweden.? He is in Stockholm today too meet with King Carl Gustaf XVI of Sweden, as well as with his counterpart Fredrik Reinfeldt. It is expected that during the talks the focus will be given to cooperation in the field of "green" technologies. During the lightning quick visit, which is to last less than five hours, the Russian prime minister plans to hold discussions with Swedish businessmen as well. The program is scheduled to decide on the establishment of a Russian-Swedish Business Council, which will include large companies such as Volvo, Scania, IKEA, Oriflame, ABB, and Tetra Pak. It is also expected that the Russian Skolkovo Innovation Center will receive a new resident, namely Ericsson, which plans to expand its research and development center. In addition, the parties plan to sign a declaration on partnership in the name of modernization, designed to give impetus to cooperation in high technologies.Russia ready to increase fuel supplies to Europe, Asia - Putin 27/04/2011Russia is ready to increase its oil and gas supplies to Asian and European markets to make up for growing demand, Russian Prime Minister Vladimir Putin said."We treat the situation on the global energy market with full responsibility and are ready to increase supplies to both Asia-Pacific and Europe," the Russian premier told a news conference in Denmark.Putin said the nuclear disaster at the Fukushima Daiichi nuclear power plant undermined trust in nuclear power generation worldwide, leading to increased demand of oil and gas."After the disaster in Japan it became clear that nuclear power will not develop there... which means that the demand for hydrocarbons, first of all, natural gas... will grow," Putin said."But in Europe, as we know, nuclear power generation also declines, and events in the Middle East do not improve the situation," Putin added.COPENHAGEN, April 27 (RIA Novosti)Nord Stream undersea section to be completed in May -Putin 27/04/2011The construction of the undersea section of the Nord Stream gas pipeline will be completed in mid-May, Prime Minister Vladimir Putin said.In his annual address to the Russian parliament just about a week ago, Putin said that the undersea section will be finished in July."I informed our colleagues that the works are coming to an end, the undersea section will be completed on May 15," Putin told a news conference in Copenhagen, after talks with his Danish counterpart.He said gas deliveries to European consumers are due to begin in October."For the first time we begin to deliver Russian gas to the Dutch market, with supplies of about two billion cubic meters and the possibility to increase them in future," the Russian premier said, adding that all contracts have been signed and prices agreed.The Nord Stream project, intended to deliver Russian gas under the Baltic Sea to Europe, envisages the construction of two parallel pipelines, each with a capacity of 27.5 billion cubic meters a year. The 1,224-km pipeline is designed to stretch from Russia's Vyborg near the Finnish border to Greifswald on the German coast.The project is designed to pump gas from Siberia to Europe under the Baltic Sea, bypassing East European transit countries. Russian energy giant Gazprom has already signed long-term gas supply contracts with Germany, Denmark, the Netherlands, Belgium, France and the United Kingdom.Apart from Gazprom, the project involves Germany's Wintershall Holding GmbH and E.ON Ruhrgas AG, each holding a 15.5% stake in Nord Stream AG, Dutch gas infrastructure company N.V. Nederlandse Gasunie and the French energy company GdF SUEZ S.A. with a 9% stake each.COPENHAGEN, April 27 (RIA Novosti)Putin’s visit was all business , 27 April 2011 09:03 JB News Natural gas primed the political pumps for Vladimir Putin's first official visit to Copenhagen and renewed political cooperation between Denmark and RussiaInternational business was the order of the day when the Russian prime minister arrived in Copenhagen on Tuesday with a delegation of Russia's most powerful business leaders and a priceless portfolio of Danish-Russian business agreements under his arm.Steel magnate Vladimir Lisin, who owns the company DanSteel in the town of Frederiksv?rk, Denmark, and who is Russia's richest man, led the delegation of Russian business leaders who travelled with Putin.Above and beyond high-profile meetings with Danish prime minister Lars L?kke Rasmussen and Queen Margrethe, the Russian leader and delegation paid an especially meaningful visit to A.P. M?ller-M?rsk's headquarters.Putin thanked Denmark for supporting Russia's Nordstream pipeline project, which will secure European distribution channels for Russia's natural gas.Denmark is allowing Russia to lay gas pipeline near the Danish island of Bornholm, which lies in the Baltic Sea just south of Sweden. Indeed, Stockholm was the next stop for the Russian leader and his delegation after their afternoon in Copenhagen.The Nordstream gasline will deliver Russian gas to western Europe. At the same time, Denmark will purchase a million cubic meters of gas per year through a deal between the Danish company Dong Energy and the Russian company Gazprom."As of July the gas will be in the pipeline and as soon as November it will reach the European market," Putin said at the press conference after his meeting with Rasmussen.Gazprom is Russia's largest company and the world's biggest producer of natural gas. In addition to the pipeline and gas deal, Russian vice chief of staff Jurij Usiakov said that Gazprom and Danish company M?rsk Oil plan to co-operate on oil drilling in the Arctic, reports Berlingske newspaper.During his meeting with Putin, Rasmussen expressed his belief that a closer relationship between the two countries was mutually beneficial."The Russian market is large and growing and we have more in common than one would think," Rasmussen said.Shipping giant A.P. M?ller-M?rsk opened a new container terminal in Saint Petersburg last year. Both prime ministers took part in the opening ceremony.In addition, the Russians expressed interest in building a new research park in Moscow involving Danish high-tech companies."This meeting is very significant and we hope to strengthen and establish cooperation, since Russia is an important international partner and we have shared interests," Rasmussen added.Yesterday's visit was Putin's first official visit to Denmark, and a clear sign that the strained political relationship between the two countries had softened.When Putin was president of Russia in 2002, he canceled a planned official visit to Denmark in anger about Denmark allowing a Chechen world conference to be held in Copenhagen. Denmark also refused to surrender the Chechen separatist leader Akhmed Sakajev to Russian authorities, a move which sparked a diplomatic freeze between the two countries.But that freeze thawed considerably earlier this year when Denmark and Russia agreed to cooperate on joint military exercises in the Baltic and Arctic Seas. Natural gas flowing from Russia to Denmark and western Europe promises to warm the relationship further.The Copenhagen meetings boded well for the "political and economic integration between Russia and Denmark," Putin remarked in the press conference."I cannot remember what it was that we couldn't agree about. I think that we we saw eye to eye about everything," he added dryly.No instructions to call Security Council meeting on Libya - Medvedev's aide 27/04/2011Russian President Dmitry Medvedev gave no instructions to call an emergency meeting of the United Nations Security Council for discussions on the NATO-led military operation in Libya, his aide said.NATO has been enforcing a UN resolution to protect civilians in Libya since mid-March. The alliance has stepped up airstrikes around Tripoli and four other major cities in recent days."At the moment, the president gave no instructions to initiate an emergency Security Council meeting on Libya," presidential aide Sergei Prikhodko told journalists.Prikhodko's statement came hours after report by Libyan state-run JANA news agency that Tripoli urged Russia, a permanent Security Council member, to call the meeting.Earlier on Tuesday, Russian Prime Minister Vladimir Putin sharply criticized NATO's military actions in Libya, saying the North African state was being illegally destroyed by "so-called civilized society."MOSCOW, April 27 (RIA Novosti)Medvedev not to convene UN Sec Con 27, 2011 08:27 Moscow TimeRussian President Dmitry Medvedev is not planning to convene an emergency meeting of the UN Security Council on Libya said presidential aide Sergei Prikhodko. On Tuesday, the authorities of Libya appealed to Russia to convene an emergency meeting of the UN Security Council to discuss the ongoing military operations being conducted by NATO in the country. In mid-February, a wave of popular uprisings occurred in several countries in the Middle East and North Africa and reached as far as Libya, where the local opposition has demanded the stepping down of the regime of Muammar Gaddafi, who has ruled the country for over 40 years.Little progress reported on Customs Union Staff ReportKIEV, April 26 – Ukraine and Russia on Tuesday made little progress in discussion over the Custom Union, a Moscow-led trade bloc, and focused instead on bilateral trade ahead of a summit in June.Russian President Dmitry Medvedev met his Ukrainian counterpart Viktor Yanukovych on Tuesday for the first time this year, as relations between the two countries have cooled. Medvedev and Yanukovych both visited Chernobyl nuclear power plant, the site of the world’s worst civilian nuclear catastrophe 25 years ago, to commemorate the victims.Yanukovych praised Russia for providing financial resources and technical expertise in an effort of helping to turn the site into an environmentally safe area.“Russia, as a neighbor, a partner and a friend of us is taking part in this,” Yanukovych told Medvedev. “This is very important. Thank you so much.”But Medvedev’s agenda also included negotiations on trying to persuade Ukraine to join the Customs Union, a bloc that also includes Belarus and Kazakhstan.Two weeks ago, Russian Prime Minister Vladimir Putin, during a visit to Kiev, failed to persuade the Ukrainian leaders to abandon free trade talks with the EU to join the Moscow-led bloc instead.Ukraine’s decision is crucial. Any willingness by Ukraine to join the Customs Union would most likely lead to undermining trade talks with the EU, increasing political ties between Kiev and Moscow.In the final statement after the Yanukovych-Medvedev talks, both parties have failed to mention any progress made in the discussions over the Customs Union.Yanukovych said improving trade between the two countries - to $42 billion in 2010 from $15 billion in 2009 - is “the main conclusion” of his 13-month presidency so far. He said earlier this month that the mutual trade should increase to $50 billion in 2011 if both countries agree to remove existing trade restrictions.But he also pointed to problems. “Still, we have many issues to solve,” Yanukovych said.Medvedev agreed. “The teams are working. The Russian team is ready for comprehensive discussions.”Medvedev and Yanukovych are now expected to hold their second meeting at the summit in June as part of a major push towards improving economic relations.Still, the schedule of meetings between Yanukovych and Medvedev show that relations between the two have cooled over the past four months. The two met 11 times in the course of 10 months in 2010.Besides foreign policy differences, the relations between Kiev and Moscow are overshadowed by Yanukovych’s refusal to merge national energy company Naftogaz Ukrayiny with Gazprom. The merger would give Gazprom control over Ukraine’s natural gas pipelines that carry gas to markets in Europe.In reaction, Gazprom refused to lower natural gas prices for Ukraine, which poses a threat to fledgling economic growth. (tl/ez)Ilham Aliyev receives Russian trade union leader 27 April 2011 05:50 GMT | 7:50 Local TimeThe Azerbaijani leader and the chairman of the Federation of Independent Trade Unions of Russia have discussed the role of migrant workers.Mikhail Shmakov told Ilham Aliyev that the main aim of his visit to Baku was to attend the second conference on “Migration problems and challenges: the role of trade unions", one of the organizers of which is the International Labour Organization, state-run news agency AzerTAj reported..He stressed the importance of trade unions in protecting the rights of migrant workers.Shmakov said the Federation of Independent Trade Unions of Russia and the Azerbaijan Trade Unions Confederation enjoyed fruitful cooperation and had recently signed a new agreement.President Ilham Aliyev said that migrant workers played an important role in the development of bilateral relations and cooperation within the CIS.He noted that the number of migrant workers coming to Azerbaijan was increasing as the country rapidly developed.Azerbaijan’s head received a man who once demanded average wage of 3,500 euro, Fineko/abc.az. President Ilham Aliyev of Azerbaijan has received Mikhail Shmakov, chairman of the Federation of Independent Trade Unions of Russia (FITUR) and president of the General Confederation of Trade Unions. During the meeting Shmakov stressed the significance of the forthcoming 2nd Baku conference on the theme "Migration Issues and Challenges: The Role of Trade Unions” to be organized jointly with the International Labour Organization (ILO). One of the main objectives of the event is to discuss international migration issues, and from this angle he noted the importance of labor organizations’ work aimed at protecting the rights of migrant workers.This is an important issue in the new agreement between the FITUR and the Confederation of Trade Unions of Azerbaijan (CTUA). Shmakov handed over to the Azerbaijani leader a GCTU honorary silver plaque and the golden award of the International Committee of Trade Union of Communication Workers.Shmakov also gave to President Aliyev the layout of the monument made on the occasion of the 100th FITUR anniversary.On the eve of his visit to Azerbaijan Shmakov was distinguished by phenomenal demand to the Russian government to establish the average wage in the country at the level of 3,000-3,500 euro with minimum wage of 12,000-14,000 rubles.27.04.2011 07:50Russia has successfully tested Sineva missile 27, 2011 07:42 Moscow TimeThe strategic nuclear-powered submarine of the Northern Fleet, the Ekaterinburg, completed the successful launch of the new, Sineva, intercontinental ballistic missile called. This was reported to the Interfax News Agency by a spokesman for the Defense Ministery, Igor Konashenkov. The launch took place from the Barents Sea from the fully submerged strategic nuclear submarine Ekaterinburg. The Sineva missile hit its target on the Kura proving grounds in Kamchatka as planned, said a spokesman for the Defense Ministry. According to him it was part of an exercize to verify the reliability of the naval strategic nuclear forces of Russia. The last successful launch of a Sineva missile was completed on October 28, 2010, also from the Barents Sea.Russia successfully tests Sineva SLBM 27/04/2011Russia has successfully test-fired the Sineva submarine-launched ballistic missile from a Delta-IV class submarine, a defense ministry spokesman said.The missile, lauched from the Yekaterinburg submarine, hit the designated target in time, the source said.The RSM-54 Sineva (NATO codename SS-N-23 Skiff) is a third-generation liquid-propellant submarine-launched ballistic missile that entered service with the Russian Navy in July 2007. It has a maximum range of over 10,000 km and can carry four to 10 nuclear warheads, depending on the modification.The previous Sineva test launch was held in October 2010.The Russian Navy has seven Delta-IV class submarines in service. They are all deployed in the Northern Fleet.MOSCOW, April 27 (RIA Novosti)Russian military prepares for May 9 Victory parade : 27 April, 2011, 00:25Edited: 27 April, 2011, 01:51 Russia is getting ready to commemorate the end of World War II and the defeat of Nazi Germany. This year’s first large-scale practice drill of the annual Victory Day military parade has been held in the center of Russia’s capital. This year marks the 66th anniversary of Victory Day, and on May 9, Moscow’s Red Square will once again be the center of the celebrations. On Monday evening about 20,000 soldiers and officers marched through Moscow, taking part in the first rehearsal of a massive military parade which is scheduled for May 9. Traffic in the city center was partially blocked in order to make way for tanks and heavy artillery taking part in the historic event. This year fewer machines are involved, according to organizers. In addition, roughly 1,500 musicians and more than 100 pieces of military hardware are expected to take part in the annual parade, which will be commanded by Defense Minister Anatoly Serdyukov.Two more reversals are scheduled to be held on Red Square before Victory Day, on May 3 and May 7.Russia to build aerospace defence shield KorotunApr 26, 2011 21:51 Moscow TimeRussia will build a national aerospace defense shield by the end of 2011, Chairman of the Federation Council Committee on Defense and Security Viktor Ozerov told reporters on Tuesday in the cosmonauts’ training center near Moscow. He believes that a combined aerospace defense force will cooperate more effectively with NATO’s European anti-missile defense system. Last year, President Medvedev approved a plan to merge the Space Forces created in 2001, the Air Defense Forces and also the missile attack warning and space surveillance systems into a single military force. Commenting on the issue, Viktor Ozerov said as follows:"Space Forces is a branch of the Russian army that focuses on space and ground intelligence, as well as anti-missile security. Cooperation with Russia on anti-missile defence was named among the priorities at the latest Russia-NATO summit in Lisbon. As of today, Russia and NATO member states have managed to agree on some aspects of anti-missile shield in Europe, though some difficulties remain with adjusting anti-missile systems of Russia, the US and that of NATO to each other."During the talks in the Cosmonaut Training Center outside Moscow, deputy chairman of the Russian Federal Space Agency Vitaly Davydov commented on the planned Moon and Mars missions, adding that Russia has been working on a program for the Solar system exploration through 2030. "President Medvedev asked us to present a program for space exploration until 2030. Before we start making preparations for a piloted Mars mission, we expect to launch several missions to the Moon."These manned missions may be launched from Russia’s new spaceport “Vostochny”, which is currently being built in Amur region. The first unmanned capsule is due to take off from the Vostochny in 2015, while the first piloted mission is scheduled for 2018.Russia may lead global nuclear safety debate - Rosatom 27/04/2011Russia may become the global leader in discussions on safeguards for the atomic energy industry, the head of Russia's state nuclear corporation Rosatom menting on the Russian President Dmitry Medvedev's initiative to develop an international system of safe maintenance of nuclear power plants, Rosatom chief Sergei Kiriyenko said "atomic energy has no national borders.""Solving the problems [of atomic energy industry] is indeed an international security task," Kiriyenko said. "And establishing international mechanisms to promote nuclear power industry safety... is a complex approach to this task, the approach that Russia has already demonstrated."Russian President Dmitry Medvedev said on Tuesday he would seek to discuss the proposals for increased safeguards for nuclear power generation at the G8 summit of world leaders in France next month. The proposals would include the responsibility of the countries using nuclear power, such as the timeliness of measures in case of emergency.The Russian president also called for additional safety requirements for the construction and use of nuclear facilities and greater transparency during nuclear emergencies.He said he had already sent the proposals to IAEA and heads of states, members of G8, BRICS and CIS.The future of the nuclear energy industry came into spotlight after a series of accidents at Japan's Fukushima Nuclear Power Plant, which was seriously damaged in explosions and fires in the days following the March 11 earthquake and tsunami.Fukushima's operator has since been struggling to stop radioactive leaks from the plant's crippled reactors. Almost 80,000 people living within the evacuation zone were forced to flee their homes.MOSCOW, April 27 (RIA Novosti)No verdict yet for Russian pilot News line, April 27Russian cargo pilot Konstantin Yaroshenko, who is standing trial in US Federal Court in New York on charges of smuggling cocaine, will have to continue waiting for a verdict, Russian RIA Novosti reported. Federal Judge Jed Rakoff has scheduled another hearing in the case for Wednesday. A hearing on Tuesday ended without a verdict when the jury requested further documentation. Since the trial began three weeks ago, the prosecution and defense attorneys have called six witnesses, including security officials from Liberia. According to the prosecution, Yaroshenko was involved in a criminal scheme to transport an estimated 200 kilograms of cocaine via diplomatic mail from Ghana to New York on a Delta Airlines plane. Yaroshenko was also accused of transporting drugs by air from Venezuela to Liberia and then to Ghana.? The prosecution claims Yaroshenko agreed to the deal in March 2010, at a meeting in Kiev with an informant for the US Drug Enforcement Administration. Three others from African countries are also facing trial.Progress heads for ISS 27, 2011 09:22 Moscow TimeThe Progress cargo ship will take off from the Baikonur space launch facility today to deliver food, water, clothes and presents for cosmonauts at the International Space Station. ?? Along with the usual supplies, the Progress will bring drosophilia and tomato and wheat seeds.??? The ship is to dock with the ISS on April 29th. ???? Six cosmonauts are currently working at the ISS, including three Russians – Dmitry Kondratiev, Andrei Borisenko and Alexander Samokutyaev. ?Moscow bank sale funds allegedly missing Charles Clover and Catherine Belton in Moscow Published: April 27 2011 03:03 | Last updated: April 27 2011 03:03More than Rbs100bn ($3.7bn) in revenue from the sale of a bank by Moscow’s municipal government has not appeared in the city’s budget, despite it being sold over two months ago, the bank’s former chief executive has charged.The episode threatens to embroil the Moscow city government in its first corruption scandal since the departure of its mayor, Yuri Luzhkov, last September.Andrei Borodin, former chief executive of the Bank of Moscow – Russia’s fifth largest – said he had alerted prosecutors on Tuesday to Rbs103bn in revenue missing from the February sale of a 46 per cent stake in the bank he formerly ran to VTB, the Russian state-controlled bank.A spokesperson for the city government denied that the money was missing and said it would appear in the city’s coffers “by October”. She said the delay in receiving the funds was due to legal complications involved in transferring large amounts of cash.The city government, however, earlier defended the sale of the bank without an open auction, insisting that it needed quick revenues.Mr Borodin, an ally of Mr Luzhkov, sold his 20 per cent interest in Bank of Moscow earlier this month for an undisclosed sum. He left Russia for London following the sale of the bank. Mr Borodin made the accusation about the missing money a day after Sergei Stepashin, head of Russia’s accounting chamber, told journalists on Monday it would be suing Mr Borodin for $1bn, roughly the sum he is estimated to have made with his stock sale, for abusing his office.Elena Baturina, Mr Luzhkov’s wife who owned a construction materials business, became Russia’s richest woman during the 18 years her husband was mayor. The Kremlin justified replacing Mr Luzhkov with Sergei Sobyanin, a Kremlin ally, as part of a fight against corruption.Investigators are probing allegations of the embezzlement of Rbs13bn ($433m) from Bank of Moscow in a 2009 real estate deal involving Ms Baturina. Ms Baturina and Bank of Moscow denied any wrongdoing. VTB insists that it paid the city Rbs103bn for the stake in Bank of Moscow, and for 25 per cent in the Stolichnaya insurance group, which owns 17 per cent of the bank, in February. “VTB fulfilled its obligations, as evidenced by the reduction by an equivalent sum of VTB’s capital in February,” the bank’s press office said. But Andrei Kostin, VTB president, told the Financial Times that the bank would pay for the stake using bail-out funds it received from the state government as part of a $6bn capital injection. Mr Sobyanin recently had to answer accusations of a conflict of interest similar to those faced by Mr Luzhkov when the magazine Kommersant Money on April 4 charged that his wife Irina owned a construction materials enterprise that stood to benefit from a decision by Moscow’s government to repave a quarter of the city’s sidewalks with bricks. Mr Sobyanin denied the accusation, saying his wife was “no businesswoman”.Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from and redistribute by email or post to the web.Reason for crash of AN-148 determined 27, 2011 10:24 Moscow TimeThe cause of the crash in the Belgorod region, of an AN-148 was over speed while making an emergency landing. This is the conclusion reached by the Commission on Industry and Trade of Russia. According to the commission while attempting an emergency landing the crew unintentionally brought in the aircraft up to a speed exceeding 110 kilometers per hour. This led to structural stress, the emergence of low-frequency vibrations and increased the load on the aircraft causing it to fall apart in the air. The plane crashed on March 5 in the Belgorod region. It was undergoing flight tests before being delivered to a customer. All the crew members, including four Russians and two citizens of Myanmar were killed in the crash.Investigators name the ringleaders of Manezhnaya riot Tom Washington at 27/04/2011 12:09?Prosecutors are sharpening their knives for the men accused of kick-starting the 5,000 strong race riot on Manezhnaya Ploshchad.The final version of the charges against the suspects are being finalised and are soon to be submitted to a court. Activists from Russia’s more respectable opposition movements of Strategy 31 and Another Russia are among the line up.The announcement came a day after investigators into the related case of Yegor Sviridov’s murder announced the end of their investigation.?Central figuresIronically the alleged leader of the nationalist riots was himself a foreigner, investigators say, picking out 23-year-old Belarusian national Igor Berezyuk.Berezyuk is also a prominent opposition campaigner, part of Strategy 31 and a member of Eduard Limonov’s banned National Bolshevik Party.He is being charged with inciting citizens, causing disorder and inflicting brain trauma on a police officer. Investigators also say he bribed a boy 1,500 roubles to shout nationalist slogans through a loudspeaker. The teenager, known only as Ilya K, then killed a Kyrgyz citizen on his way back from Manezhnaya, Moskovsky Komsomlets reported. Kirill Unchuk, 22, another opposition activist, is alleged to be his accomplice. Drug-dealer Ruslan Khubayev, 34, from Murmansk, and Muscovites Leonid Panin, 31, and Alexander Kozevin, 27 also stand accused. “They all face charges for their different roles and are all accused of orchestrating mass public disorder, inciting hatred or hostility, using violence against the authorities, and hooliganism,” Vadim Yakivenko, Moscow Investigative Committee spokesman, told MK. ?Parallel investigationThe Manezhnaya accusations are being drawn up hot on the heels of the Egor Sviridov murder investigation. The disorder on Manezhnaya, on the doorstep of the Kremlin, started off as a memorial rally to Sviridov. He was a Spartak fan who was killed in a brawl with Caucasian migrants. Aslan Cherkesov, accused of firing the shot from a traumatic pistol that killed Sviridov, and his alleged accomplices Akay Akayev, Khasan Ibragimov, Nariman Ismailov and Artur Arsibiyev are now familiarising themselves with the charges against them.Accusations flew soon after the case opened, saying that the suspects in the highly charged case had been released because of connections in the police force. The chief investigating officer was subsequently sacked and faces disciplinary action.PRESS DIGEST - Russia - April 27 ISTMOSCOW April 27 (Reuters) - The following are some of the leading stories in Russia's newspapers on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.KOMMERSANTkommersant.ru- Russian potash minter Uralkali (URKA.MM: Quote, Profile, Research) is planning to close several factories at its Berezniki mining complex.- Russia's state aviation authority, Rosaviatsia, has refused a dozen Russian carriers from increasing the number of charter flights they do to resorts in Bulgaria, Turkey, Greece, and Italy.VEDOMOSTIvedomosti.ru- The offering price of the initial public offering (IPO) in early May in London of state-run Russian Helicopters ranges from $1.81-$2.38 billion, the daily reports.- Thirty nine percent of Russians believe that Prime Minister Vladimir Putin will become president in the 2012 poll and 28 percent are predicting a victory for incumbent President Dmitry Medvedev, the paper reports citing a survey by the independent Levada Center.ROSSIISKAYA GAZETArg.ru- Russia's anti-monopoly watchdog has launched checks at oil producers in almost 20 regions across the country, in connection with shortages of petrol.- Russian arms dealer Viktor Bout, who was detained and will face a trial in the United State on charges of alleged weapons supplies to "terrorists" says in an interview with the daily that he is being treated in the prison like a "rabid dog".IZVESTIAizvestia.ru- The daily suggests that petrol shortages in Russian regions could be caused by dealers who are selling petrol abroad. The amount of such exports could account for almost 10 percent total oil export, the daily says.- The government is considering ways to return almost 40 million hectares of unused arable land to farmers which were lost in the last decade after being leased to business.- Russia's Defence Ministry is planning to spend 1.3 million roubles on carnival costumes, the daily says citing the official site that publishes requests for state orders.KOMSOMOLSKAYA PRAVDAkp.ru- Russian tycoon Mikhail Prokhorov says in an interview that Russia's labour code should be reviewed to encourage people to work 60 hours a week against the current 40.NEZAVISIMAYA GAZETAng.ru- Russia's political analysts are forecasting political and social turmoil across the country over the next decade.Russian Press at a Glance, Wednesday, April 27, 2011 27/04/2011POLITICSPrime Minister Vladimir Putin oversaw the signing of $775 million worth of deals in Copenhagen on Tuesday as he led a heavyweight business delegation on the first stop of a two-day tour of the region. During the press conference, the Russian president also gave detailed answers about the "crusade" on Libya and the forthcoming presidential elections in Russia(The Moscow Times, Kommersant, Rossiiskaya Gazeta, Izvestia)The French and Italian leaders called on Tuesday for the EU to reform its Schengen treaty following a dispute over a recent influx of immigrants from North Africa(Vedomosti, Nezavisimaya Gazeta, Izvestia)Russian Foreign Minister Sergei Lavrov visited the disputed Georgian republic of Abkhazia. After talks with Lavrov, the Abkhazian foreign minister said that more states would soon recognize the republic's independence, but avoided naming them(Nezavisimaya Gazeta, Rossiiskaya Gazeta)ECONOMYThe volume of mergers and acquisitions on the Russian market showed annual growth in 2010 of $46.8 billion, but no structural changes were seen in the field, which remains skewed by a few big foreign deals(The Moscow Times)VEHICLES & ENGINEERINGGermany's Siemens started production of 38 Desiro (Lastochka) trains on order from Russian Railways(The Moscow Times)POWER GENERATIONVisiting the site of the Chernobyl nuclear disaster in Ukraine, President Dmitry Medvedev said new nuclear plant safety rules must be drawn up(The Moscow Times, Vedomosti, Kommersant, Rossiiskaya Gazeta, Izvestia)Gazprom and Itochu Corp. agreed to study possible construction of an LNG plant to boost fuel supplies to Japan(The Moscow Times)REAL ESTATEThough Russia's Gazprom has agreed to shift the construction of a 400-meter skystrper in St. Petersburg from the city's historic center to a suburb, new controversies have arisen. Experts fear that the construction may aggravate traffic problems in the district and environmentalists are concerned by its effects on a seasonal bird migration route(Nezavisimaya Gazeta)TELECOMS & ITTwo men in Florida have filed a class-action lawsuit against Apple for location-based trackingon iPhones and other devices that use the latest version of Apple's mobile operating system, iOS 4.(Vedomosti)At the request of Russian rights holders, Google has started deleting links to websites offering pirated content. So far, 106 websites (446 web pages) have been deleted from search results(Vedomosti)BANKING & FINANCEThe Russian economics ministry expects the ruble to strengthen to 24-25 rubles to the dollar, the pre-crisis 2008 level, by the end of this year(Vedomosti, Izvestia)SOCIETYTwo powerful bombs targeted police buildings in Volgograd on Tudesday, but no one was injured after police were tipped off about the explosives hidden in packages(The Moscow Times, Kommersant, Nezavisimaya Gazeta)According to a survey by independent pollster Levada Center, 38 percent of Russians want Prime Minister Vladimir Putin and President Dmitry Medvedev to run together in the 2012 presidential elections. Around 19 percent want Putin to run and 12 percent want Medvedev to stay for a second term (Vedomosti)An independent commission carrying out a Kremlin-ordered inquiry into the death of Hermitage Capital lawyer Sergei Magnitsky has found that he was illegally jailed and deprived of medical care(The Moscow Times)A daring robbery followed by a car chase and gunfire saw a gang of assailants, some of whom posed as traffic cops, steal about $5.5 million on Monday not far from Moscow's Domodedovo Airport, Moscow region police said(The Moscow Times)Police have arrested the suspected kidnappers of Ivan Kaspersky, son of Yevgeny Kaspersky, the software tycoon and co-owner of Kaspersky Laboratories. According to the police, the kidnappers were surprisingly "stupid and audacious."(The Moscow Times, Kommersant, Izvestia)I’m treated like a rabid dog: 27 April, 2011, 04:37Edited: 27 April, 2011, 08:32 Viktor Bout gives an exclusive interview to Rossiyskaya Gazeta from jail Aleksandr Gasyuk (New York) Gloomy, dark sand-colored walls, and heavy metal doors of the Metropolitan Correctional Center, or MCC, located in lower Manhattan, do not leave any doubt regarding the purpose of this institution – inmates, some of whom the US authorities consider to be the most dangerous criminals, await trial in this “public institution”. Rossiyskaya Gazeta (RG) correspondent is the first Russian journalist to visit the jail and meet with the Russian businessman, Viktor Bout, who has spent already five months in solitary confinement, waiting for trial. The trial of Bout, who refused to make a deal with investigators and pleaded not guilty after being arrested in 2008 in Thailand and extradited to the US last year, starts in October if the petition of the lack of jurisdiction of the US authorities, filed by the Russian’s defense counsel, is rejected in early May.? “That’s so we know that you are not a prisoner, and will be released from here. After all, you wouldn’t want to prolong your stay here?” – prison officer, Ken Haas, tries to joke as he explains the reason for the invisible-to-the-naked-eye stamp, which is placed on the Russian journalist’s hand after a thorough examination of personal belongings. After walking through the numerous security checks and placing the stamped hand under ultraviolet lamps – only after the stamp appears in this light does security open the metals doors – we take the elevator to the fifth floor of the MCC. Here are four meeting rooms, in which the prisoners meet with their lawyers under the “watchful eye” of video cameras that record each and every word. While answering questions about Bout, Haas explains that the Russian behaves calmly and does not create any problems for the prison’s management. “In fact, only about 10% of our inmates are riotous,” Hass answers RG’s question.?????? ?In the dry official lexicon of the American penitentiary system, Bout is held under the “name plate” that reads “inmate number 91641-054, white male, 43 years old”. It is against the man with these attributes that the US authorities presented an entire “bouquet” of charges under various articles: from criminal conspiracy to murder US nationals to conspiracy to supply weapons to terrorist groups. If the Russian is proven guilty, he faces 25 years to life in prison for his “sins”.?? ?After several minutes of waiting, a convoy of three security guards escorts the handcuffed Russian into the room; he is given an hour for his interview with Rossiyskaya Gazeta.RG: Viktor, you are called one of “the most dangerous people in the world”, as well as the “Lord of War”, and the “Merchant of Death”. Where do you believe these “flattering characterizations” started, how do you perceive them, and what would you say to their authors?? Bout:This is a myth that exists by itself and has no relation to my personal life whatsoever. It was created and funds were invested into it, just like into a trademark, in order to make more money. If the US agents obtained information about me from the book, or the film with Nicolas Cage in the leading role, then I simply feel sorry for them, the country in which they work, and the people, who invented all of this. In today’s media industry, where there is no time to sit down and try to understand the situation, no one has so much as thought to investigate or at least double-check the unsubstantiated allegations, which have circulated about me. The situation, when American special agents are citing journalists, and journalists are referring to the special agents, reminds me of the anecdote about a Chukchi and a weatherman. I am being charged with organizing an arms-trade business empire; they argue that my alleged billion-dollar assets have been frozen. But show me where these assets are, if they exist?! All of the money is currently being collected by my family, in order to pay the lawyer. They say that there were airplanes in the Sharjah Airport that had delivered weapons somewhere. But are they really saying that all of the airplanes that departed from that airport belonged to me? Then show me at least one supporting document with my signature on it. There aren’t any! (According to the US Drug Enforcement Administration, the personnel of which had detained Viktor Bout in 2008 in Thailand, the airline company, belonging to Bout, was registered in the UAE – RG.)?????? RG:There are, indeed, many myths that circulate around you. But how did you really become who you are today – an owner of a major air freight business?Bout: After retiring from the army in 1991, I worked at the Union of United Cooperatives of the USSR, which was at that time headed by academician Tikhonov. This organization had a center that organized air transport, and I had studied this business in detail. Then, for a long time I worked as an air charter broker. And only in 1995 we started acquiring airplanes and creating our own airline. RG: What happened to your business after your arrest in Thailand?Bout: My business went under after “the witch hunt” had ended. By the way, the UN needs to explain how incompetent individuals were put in charge of the investigation, and the Security Council was used as an instrument in settling business disputes (according to the early 2000 investigation results on illegal arms supplies bypassing UN sanctions, which were mainly based on the reports of Belgian Johan Peleman, Viktor Bout’s airline was involved in systematic violations of the sanctions regime – RG).????? RG:During your arrest in Thailand, according to the US media reports, a gun was aimed at you – the police were ready to shoot. What did you feel at that moment? Bout: That’s true, people in civilian clothes with weapons came into the room and started yelling: “Hands up!”. What can a person feel in this type of situation? Stress.? RG:It is known that you are held in solitary confinement in 10-South block, a special section for especially dangerous criminals. What is your daily routine? What do you see from the window of your cell?Bout: I cannot see anything from the window of the jail cell, because special dimmed glass is used. The walls are painted in pale yellow, the floor is grey. This gloomy picture is slightly “brightened” by the orange suit that I was given here. By the way, my undershirt, socks, and even the towel, are also orange. As for my routine, I wake up at 5:00 in the morning, workout: exercise routine, stretch, jog in place, meditate. There is a shower in the cell, but for some reason it only has hot water, and it’s impossible to dilute it. Breakfast, which is served through the door, is sometimes brought at 6:00 or 9:00 in the morning. The same is with lunch: they can bring it at any time between 11:00 and 1:00 in the afternoon. The menu: there are almost no fresh vegetables, about once a month I am given 3-4 leaves of lettuce. In the Thai jail, I could buy fresh fruits, unlike the current jail store, which only offers Snickers, sweets, and other sugar-containing chemistry.??? RG:You were forced to spend about two years in the Thai prison, and in that time, win in court. But that did not prevent your extradition to the US. How do you compare the Thai and the American prisons?Bout: The jail in Thailand is like a zoo: you walk through the aviary under open skies, there are small ponds with fish, cats, there – inmates are connected to the outside world. But the place, where I am now, is like a psychiatric hospital: we are placed in solitary confinement, no one speaks. One could make a stretch and talk about prison comfort, if a concrete chair and a concrete bed with clasp for handcuffs can be called comfortable. In the US, this is my fifth month in solitary confinement, although even by the US standards, one should not remain in such conditions for longer than three months – doctors proved that a longer stay causes irreparable harm to health. I do not see anyone, other than my wife and lawyer. Throughout this entire time, I have been allowed to make one phone call. Newspapers are delivered sporadically, and even then they are two weeks old. If Bradley Manning (a US soldier, arrested for supplying secret information to WikiLeaks, the harsh confinement conditions of whom have sparked a major scandal in the US – RG) is held 23 hours in a cell, then I spend all 24 hours of the day in a cell. The “walks”, which I am entitled to and which are held in the neighboring cell, are not walks in my understanding.?I am treated like a rabid dog by being handcuffed and chained at the waist and feet. All of this is, of course, designed to break a person, so that he agrees to anything. In the US, there are more than 50,000 people in solitary confinement – here, this is the favored method of putting psychological pressure.?But life is an incredible thing – it does not end upon imprisonment. A person’s spirit cannot be caged, unless he, himself, choses to do so. And even while serving time in jail, a person can continue being free and rethink many, often banal, things, which there is simply no time to assess in other circumstances.? ??????? RG: Are the American prison guards treating you properly?Bout: I am not tortured, profanities are not used against me, I am not forced to sleep naked on the floor like Bradley Manning. But that does not mean that my situation is better than his. As for being proper, the Nazis had also probably behaved properly, while escorting inmates to the gas chambers in Auschwitz.? RG:What activities help you pass the time in the “public institution”? Bout: I try to read more, I’ve taken up drawing – something I have never done before. I rarely get books, and only new ones, unused by anyone else. Unfortunately, I have not gotten anything in the Russian language. Drawing helps me relax; for now, I am trying new things. But, that is not an easy thing to do, as I am forced to use an ink refill in a soft shell: I am not given pencils or paints.??? RG:What have you read while in the MCC?Bout:From what I can immediately recall, it’s books by Zecharia Sitchin “The 12-th planet”, Robert Temple’s “The Sirius Mystery”, John Loftus’s “America’s Nazi secret”, and Lester Brown’s “Plan B”. Moreover, I read the original Persian poetry texts, including, of course, Omar Khayyam. Books that I read in Thailand about applied psychology, meditation, breathing exercises, also help a lot.? RG: While enduring the harsh conditions of the American prison, whose support do you feel the most?Bout:That of my wife, brother, family and friends. Unfortunately, I am unable to send and receive letters, because all my attempts to learn how to send or receive letters, how many postage stamps are required for them to reach the addressee, have been to no avail. RG:Do you receive the necessary support from the Russian diplomats in the US?Bout: I am sympathetic to the difficult task they face. They are doing everything within their guidelines and are taking measures to help me. I can say that immediately after my extradition from Thailand, I was visited in the US by consulate staff members, who have maintained contact with me since.? RG: In case you are able to prove your innocence in the US court, will you return to your previous business – air freight, or do something else?Bout:Business – is not a river you can step into twice. But the main thing now is to get out of here. Without Russia’s support, it is impossible to overcome the machine into which I have fallen. The terms here are enormous, and if no one shows me this support, then in 20-25 years I will simply die in jail – it is impossible to last longer here. After getting into this mincing machine, I wanted to turn to the State Duma and the Russian government, as my story clearly shows the world, in which we are living: the “monopoly on democracy” passes through the ruined lives of thousands of innocent people.The irony is that, in this system, to which many innocent people are confined, if you are an honest person and do not have the opportunity to turn someone in, you are doomed.? RG:Where do you wish to be today?Bout: At home: homeland is homeland. Schism in the Tandem Is Getting Larger April 2011By Anders AslundSince his Krasnoyarsk speech in February 2008, President Dmitry Medvedev has persistently said the opposite of Prime Minister Vladimir Putin. As Dmitry Muratov, editor-in-chief of Novaya Gazeta, put it, “Medvedev represents the Internet party and Putin — the television party.” Admittedly, the low-brow television party comprises a two-thirds majority, but the Internet party represents the future and is growing fast. The differences between Medvedev’s Magnitogorsk speech in March and Putin’s address to the State Duma last week highlight how the conflict between the two leaders has come out into the open. Medvedev went out on a limb in his 10 points in Magnitogorsk, while Putin went out on the opposite limb in Duma speech. While Medvedev stands for ideas, Putin sounded like Leonid Brezhnev offering many details but without relevant comparisons and devoid of principles. Their two contemporaneous speeches offer us an excellent comparison of their declared economic policies.Putin was not only satisfied but proud of the state of the Russian economy: “I think it is our common achievement that Russia successfully avoided serious shocks that could have weakened the country, undermined its economic and human potential.” But Russia’s gross domestic product plummeted by 8 percent in 2009, more than in any other Group of 20 country, and the recovery of 4 percent in 2010 was rather feeble, particularly when you consider that oil prices were high throughout the year and that Russia had the largest stimulus package of any G20 country. Before the crisis, Putin compared Russia to the dynamic BRIC countries, but since Russia now underperforms them all he has reverted to the extinct G8. What’s more, in the old days Putin used to call Russia an energy superpower, but now he denies that the high oil price caused Russia’s growth.By contrast, Medvedev was entirely downbeat in his Magnitogorsk speech: “Until we make our country attractive for business and private initiative, we will not achieve our main goal of improving the quality of life for our people.”Medvedev attacked corruption as the main evil in the Russian economy: “Corruption continues to affect the general economic situation, maintaining a stranglehold on the entire economy, and this hold is still as strong as ever. The result is clear for all to see: Money is fleeing our economy. Not as many people believe in the possibility of doing safe and successful business in Russia as we would like.” He called for numerous actions, for example: “I instruct the Prosecutor General’s Office … to introduce a special procedure for examining complaints about state agencies’ actions or inaction that contain an allegation of corruption.” Putin mentioned corruption only in passing, as if it were only a minor irritant: “Needless to say, we must counter corruption, increase responsibility of officials and eradicate the very conditions for illegal conduct and bribery.”Medvedev’s persistent theme has been modernization and his four I’s — institutions, infrastructure, investment and innovations — from his Krasnoyarsk speech. His emphasis in Magnitogorsk lay on the necessity to improve the investment climate: “We must drastically improve the quality of the most common services for the investment community … customs, the quality of services at airports, registration procedures, visa issuance procedures, work permit procedures and postal services.” Another Medvedev phrase might have been meant as a veiled reference to Putin and his ilk: “We will have no choice but to dismiss those who continue to erect various barriers and obstacles, give preference to their friends or fail to take the required action on the basis of pretended state interests that have nothing in common with our people’s interests.” Putin does not really talk about modernization of society as such. His Duma speech was dominated by multiple measures of arbitrary state intervention and subsidies in all sectors of the economy with phrases such as “the state helped.” Putin’s economic model is dominated by state capitalism and industrial policy. For example, in amazing detail he claimed that foreign automobile manufacturers should move production to Russia and produce at least 300,000 cars a year if they want to do business in the country. Rather than enticing foreign investors with attractive conditions, Putin essentially intimidates them.One of the chasms between Medvedev and Putin is privatization. Putin is the father of state corporations and re-nationalization. He did not mention the word privatization in his lengthy speech, making evident that he opposes it. Instead, he suggests that “public-private partnerships” can be an “efficient model.” Medvedev, by contrast, criticizes big state corporations and promotes privatization at length: “We need to … stop state companies from exerting too great an influence on the investment climate. First, we should finally set and make public a timetable for privatizing large government shareholdings over the next three years. Second, we must end the practice of having government ministers responsible for regulation in particular sectors sitting on the boards of directors of companies.” Another major divide between Medvedev and Putin is pensions. According to Putin, his greatest achievement in the last year was that he increased so-called working pensions by 45 percent. At the same time, he attacked France, Estonia, Greece, Poland and Latvia for raising the retirement age or freezing pensions, indirectly stating that he is against pension reform in Russia. Medvedev, on the contrary, worries about the increase in the social security tax from 26 percent to 34 percent of the payroll and demanded the government — that is, Putin — to reverse this increase in 2012. In this way, Putin appeals to old pensioners, while Medvedev cares about entrepreneurship and economic growth.Nowhere is the difference between Medvedev and Putin greater than in their foreign policy. Medvedev has heralded the reset of Russia’s relations with the United States and many European nations, and he has persistently promoted Russia’s accession to the World Trade Organization. But Putin’s whole speech advocated protectionism, and he cheered the downgrade of U.S. debt. His bottom line was: “We must be independent and strong.” Characteristically, he did not mention the WTO, while he talked almost lyrically about the dysfunctional customs union with Belarus and Kazakhstan, which Ukraine has brushed off, much to the Kremlin’s disappointment. When directly asked about the WTO, Putin responded ambiguously: “It is a very important and a very difficult question,” worrying that Russia might not be allowed sufficiently large agricultural subsidies.One must wonder whether Putin and Medvedev are talking about the same country, and why are they in the same government? Obviously, they represent opposing philosophies. Would it not make more sense if they were running against each other in the 2012 race? And perhaps others should be allowed to run as well. After all, Medvedev and Putin both claim that Russia is a democracy and that the voters should choose their leader.Anders Aslund is a senior fellow of the Peterson Institute for International Economics.Limits of e-politics: Why Alexey Navalny won’t win an election anytime soon By Ian Bremmer Tuesday, April 26, 2011 - 4:04 PMBy Jenia Ustinova Alexey Navalny is living the blogger's dream. A lawyer by training, the 34-year-old Russian media darling is both famous and audacious. Last year he sunk the competition in a virtual election for Moscow city mayor, and the Russian and international press have since published numerous profiles about his online anti-corruption crusade. His live journal blog boasted one million unique visitors when he unveiled his report on Transneft, a government pipeline monopoly that he alleges embezzled $4 billion from government coffers. Navalny is effective, too: Transneft is currently under investigation, ordered by none other than Prime Minister Vladimir Putin. All the success has launched frenzied speculation about Navalny's political potential, with a few observers suggesting that he could rise to the presidency. Navalny is associated with what's known as the "internet party" -- a catch-all term for educated elites who use the internet regularly and are critical of the regime. The regime, in turn, is aligned with the "television party" -- a reference to the bland news coverage and extensive reportage about Putin and President Dmitri Medvedev that Russia's three state-run channels churn out. In response to the hubbub, Navalny has said that he won't participate in corrupt elections. But, as others have pointed out, he hasn't said he doesn't want to be president, only that he won't participate in elections as they are currently organized. So should the regime be concerned? After all, the stars seem to be aligned in Navalny's favor. Annual opinion polls by the well-respected Levada Center show that corruption is one of the electorate's top concerns. And the ruling tandem's ratings have been on the decline. Meanwhile, buzz is building that the Russian internet-often billed as the country's "last free speech platform" -- just might beget a viable opposition to the soft-authoritarian system currently in place. But the stats tell a different story. Russia is, and for the foreseeable future will remain, firmly in the grip of the television party. Levada finds that while 28-30 percent of Russians use the internet regularly, an overwhelming 8 in 10 watch television on a daily basis. And when it comes to current events, more than 90 percent of Russians reach for their remotes. Only 11 percent start up their computers to read the news. More to the point, a separate Levada poll found that 95 percent of Russia's self-identified internet users couldn't name a blogger whose political opinion they admired. Navalny was cited by less than one percent of the respondents. Two percent went with Medvedev and another 2 percent named Putin -- who doesn't blog. Navalny's anti-corruption crusade is flourishing on the internet, and may even bring real accountability and transparency to Russian businesses. But that hardly guarantees real-deal political success. No doubt Putin was well aware of that fact when he declared in a televised speech last week that there would be no restrictions on Russia's internet. ?Jenia Ustinova is a member of Eurasia Group's Eurasia practice.? National Economic TrendsRussia: letting the rouble go? 26, 2011 12:02 pm by Stefan Wagstyl How much higher can the rouble go, now that it stands at its highest levels against the US dollar since late 2008?The answer depends largely on the oil price. But not entirely. The Russian authorities, with an established tradition of foreign exchange market intervention,? have the capacity to keep the currency in check. But will they?? It seems not.Echoing remarks made by other officials in recent days, prime minister Vladimir Putin late on Monday made clear that fighting inflation should take top priority – even over the traditional aim of maintaining exchange rate stability.In his characteristically blunt language, he said:What comes first, what comes second: what is the horse and what is the cart? The horse — the thing that will get us out — is of course fighting inflation. And then comes everything else.It is no surprise that Putin is gunning for inflation with presidential elections due early next year. Inflation is? along with corruption, the issue that worries Russian voters the most. And prices are rising faster than planned – at? an annual rate of 9.5 per cent last month, up from a low of 5.5 per cent last July and well in excess of Putin’s own 7.5 per cent target for 2011.The central bank, which increased interest rates in February from a post-Soviet low of 7.75 per cent to 8 per cent has hinted that it will consider another hike at its meeting this Friday.Chris Weafer,? of Uralsib, the Russian bank, wrote on Tuesday:Taking into account comments made by the central bank chairman in recent weeks, it is becoming clear that not only is inflation the greater priority but that a stronger ruble is one of the mechanisms that will be used to try and contain inflation.But it’s not as easy as it looks.? The surge in oil prices above $120 a barrel for Brent, has taken the rouble to a new 30-month high against the US dollar of 27.79 on Tuesday – 8 per cent up on the year.However, most of Russia’s politically-sensitive food imports come from the European Union and against the strengthening euro, the rouble has barely moved since December and stands at 40.65.There is also the Russian business lobby to consider. As he told business leaders last week, Putin needs their support for the election campaign, whether he or president Dmitry Medevedev is the official candidate. Andrei Klepach, the deputy economy minister (whose responsibilities include manufacturing industry), warned on Tuesday that the rouble could return to pre-crisis levels – or 24-25 to the dollar with “consequences” for Russian industry.According to Reuters, Klepach told reporters on the sidelines of a conference organised by Vedomosti business daily:“We can return to 24-25 roubles per dollar — with all the consequences that brings in terms of the imports trend and the impact on manufacturing … That is the likely scenario for the end of the year in case of capital inflows and if oil prices hold around $115-120 per barrel.”However, with their eyes on the polls,? more senior officials may be paying less attention to the industry’s grumbles right now.Business, Energy or Environmental regulations or discussionsMail.ru, VTB, Gazprom, Rusal: Russian Equity Market Preview Marina Sysoyeva - Apr 26, 2011 11:00 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 (INDEXCF) dropped 0.2 percent to 1,766.28. The dollar-denominated RTS Index gained 0.1 percent to 2,033.32. Mail.ru Group Ltd. (MAIL) : The Russian Internet company released financial results for the full year 2010. Its net profit attributable to equity holders of the parent fell to $152.8 million in 2010 compared with $168.6 million in 2009. Its first-quarter sales rose 69 percent to $110.6 million, the company said in its statement. Mail.ru declined 3.1 percent to $34.84 in London. VTB Bank (VTBR RX): VTB reports its 2010 financial statement today. The bank was unchanged at 0.09306 rubles. OAO Gazprom (GAZP RX): Russian natural gas deliveries to Denmark may double from volumes contracted now, Russian Prime Minister Vladimir Putin said. Russia’s natural gas export monopoly dropped 0.6 percent to 232.52 rubles in Moscow. United Co. Rusal (486 HK): Nathaniel Rothschild, chairman of United Co. Rusal’s biggest shareholder, En+ Group, expects fellow investor Sual Partners to sell its stake in the aluminum producer. The world’s largest aluminum producer dropped 0.8 percent to HK$12.70 at the close in Hong Kong. To contact the reporter on this story: Marina Sysoyeva in Moscow at msysoyeva@ To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@ Mail.ru shareholders launch sale of 6.65 pct stakeWed, 27th Apr 2011 07:46MOSCOW, April 27 (Reuters) - Russian internet investment firm Mail.ru said on Wednesday some shareholders had launched a sale of a 6.65 percent stake on the market. The shareholders, including founders, members of management and fund Tiger Global, will place a total of 13.8 million shares -- a stake representing approximately 0.46 percent voting rights and currently worth around $480 million. The company will not receive any proceeds from the placing, Mail.ru said in a statement. JP Morgan and VTB Capital are acting as joint bookrunners for the placement. (Reporting by Maria Kiselyova, Editing by John Bowker) Keywords: MAILRU/ (maria.kiselyova@, +7 495 775 12 42, Reuters Messaging: maria.kiselyova.@)April 27, 2011 12:12Mail.ru Group boost net profit 66% to $77.3 mln in 2010. April 27 (Interfax) - Mail.ru Group boosted net profit 66% to $77.3 million in 2010 (excluding assets not controlled by the group), up from $46.5 million in 2009.EBITDA rose to $119.4 million from $67.4 million and revenue was $324.7 million, up from $197.7 million, the company said in a statement.Mail.ru's net cash position was $118.4 million as of year-end.The figures reflect the performance of Mail.ru Group's main segments (Mail.ru, Odnoklassniki and HeadHunter), which management feels is more representative than the aggregated IFRS figures.Mail.ru began including ICQ in its financials in July 2010.The indicators for social network Vkontakte (in which Mail.ru owns 32.55%) and the Qiwi payment system (21.35%) are not included in the main segments since Mail.ru management does not make strategic decisions regarding their operations.Mail.ru Group also has non-controlling stakes in Facebook (2.33%), Zynga Game Network Inc (1.41%) and Groupon Inc (4.63%).Consolidated IFRS revenue totaled $275.3 million in 2010, up from $148.3 million in 2009. Net profit amounted to $156.3 million compared with $165.7 million in 2009 (or $152.8 million and $168.6 million respectively excluding minority stakes).Revenue increased 69% to $110.6 million. Organic revenue growth (excluding ICQ) was 61%.Revenue from display advertizing rose 89.8% in the first quarter of 2011 year-on-year to $25.4 million. Context advertizing revenue was up 120% to $12.6 million. Revenue from online games increased 39% to $32 million and from Internet value added services - up 68.9% to$28.4 million.The leading shareholders in Mail.ru Group, which raised $1 billion on the LSE last October, are Alisher Usmanov (26.9% of shares including 45.4% of voting shares) and South African media holding Naspers (30.8% and 35% respectively). The free float is 18.4%.VimpelCom to float bonds worth $2bn , 27.04.2011, Moscow 10:58:06.The board of directors of Vimpel-Communications, which is part of VimpelCom, has approved a public offering of 5 bond issues worth a total of RUB 60bn (approx. USD 2.15bn), the telecommunications operator said in a statement today.??????The 1-3 series bonds are valued at RUB 10bn (approx. USD 358m) each and 4-5 series bonds are worth RUB 15bn (approx. USD 538m) each. The term to maturity is 10 years. M&A Up $46.8Bln, But Still Off April 2011By Howard AmosThe?volume of?mergers and?acquisitions on?the Russian market showed annual growth in?2010 of?$46.8 billion, but no structural changes were seen in?the field, which remains skewed by?a few big foreign deals. "The first impression of?a balanced market with a?strong share of?cross-border transaction does not reflect the?underlying deal activity," said a?report released by?the international accounting and?consulting firm KPMG.The?price tag attached to?M&A activity in?2010 was $95.6 billion, up from?$48.8 billion in?2009?— but still well shy of?the 2007 pre-crisis high of?$159.4 billion.The?three largest transactions in?2010 and?the first quarter of?2011?— VimpelCom's purchase of?Wind Investments, LUKoil's buyback of?19.2 percent of?its shares owned by?Conoco Phillips and?BP's 9.5 percent purchase of?Rosneft as part of?a $16 billion share swap?— represented about one-third of?total M&A value. The?communications and?media sector accounted for?35 percent ($33.5 billion) of?all deals, the?oil and?gas sector for?21.2 percent ($20.3 billion) and?the metals and?mining sector for?10.3 percent ($9.8 billion). However, Russia accounts for?less than four percent of?the global volume of?M&A?— and, without a?few big foreign deals, the?sphere would consist almost entirely of?domestic activity. The?KPMG report highlights that, of?the M&A activity recorded in?the first quarter of?2011, 47 percent was inbound?— foreign companies acquiring Russian assets. This is a?significant upsurge on?the 2010 figure when only 14 percent of?total activity was inbound. The?BP-Rosneft share swap, included in?the figures, however, has not been finalized and?is facing a?slew of?legal challenges from?BP's billionaire partners in?TNK-BP.KPMG said they expected M&A activity in?Russia to?continue to?grow through 2011. The?fulfillment of?the promised privatizations of?state-controlled companies will play a?significant part in?this process, the?report said. For the Record 27 April 2011 will peg its export tariff for?nickel — currently fixed at?10 percent — to?the metal prices on?the London Metals Exchange, according to?a government order seen by?Reuters on?Tuesday, with the?tariff set on?a quarterly basis and?applying if the?nickel price is equal or above $12,000 per ton. (Reuters)Russia introduces progressive taxation for nickel 27, 2011Export duty on nickel will be set on a quarterly basis. According to a government decree yesterday, progressive taxation will be introduced for nickel producers (Norilsk Nickel; GMKN - Buy), who will pay export du- ties based on a new formula linked to LME prices. The change comes into effect in a month. The tariff will be revised quarterly and will be based on average LME nickel prices for the last quarter. Currently, the export duty for nickel, as well as for copper, is fixed at 10%. The change in the ex- port duty was previously discussed by the government and generally expected by the market. New formula to raise incremental export duty to 30%. Based on the new formula, the export duty will apply if the average nickel price is above $12,000/ton. If the price ranges between $12,000/ton and $15,000/ton, the tariff will be equal to 5% of the average quarterly price. If the price is above $20,000/ton, the duty will be calculated by the formula: $20,000 will be de- ducted from the average quarterly price, the difference will be multiplied by 30% and $1,500 will be added to the result. At the current spot nickel price of $26,460/ton, the tariff would be equal to $3,438/ton - the existing tariff is $2,640/ton. Neutral impact on Norilsk; export duty on copper may follow. Given the average nickel price in 1Q11 of $26,905/ton, we expect the export nickel duty in 2Q11 (staring from May) to be set at $3,572/ton, or around 13%, versus the current 10% flat export duty. We note that new formula for the nickel export duty comes as no surprise for the market and may result in an addi- tional $150 mln in taxes for Norilsk in 2011 or around 2% of Norilsk's 2011E EBITDA of $8.0 bln, which is insignificant for the company. In our Norilsk financial model we have already incorporated an average 12% export duty for nickel in 2011 and, thus, do not expect any major changes to estimates. In our view, the government could raise the export duty on copper (currently fixed at 10%) in 2011 in order to provide additional revenues for the budget, while the introduction of an export duty on aluminium (currently none) is unlikely.UPDATE 2-VTB affirms acquisition strategy, posts record Q4 EDT* Q4 net profit 16 billion roubles vs forecast 15.75 bln* Year net profit reached 54.8 billion roubles* Says pursuing strategic acquisitions(Adds detail, analyst comment)By Katya Golubkova and Oksana KobzevaMOSCOW, April 27 (Reuters) - VTB (VTBR.MM: Quote, Profile, Research, Stock Buzz), Russia's second-biggest lender, affirmed its commitment to strategic acquisitions to strengthen market positions as it posted record fourth quarter net profit, returning to the black for the year."We have lived up to our promises, delivering a record net profit. We are also pursuing strategic acquisitions that will enable us to ... further strengthen market position across core businesses," chief executive Andrei Kostin said on Wednesday.VTB has recently bought stakes in TransCreditBank (TCB) and Bank of Moscow (MMBM.MM: Quote, Profile, Research, Stock Buzz), Russia's fifth-biggest lender, intending to increase its holdings further.VTB, which reported under international standards for the first time since it floated 10 percent of state-owned shares in February, said net profit reached 16 billion roubles ($576 million) in fourth quarter, in line with expectations.Full-year net profit was 54.8 billion roubles, after state-owned lender was in the red in all four quarters of 2009 due to high provision charges."The results are close to the market's expectations but TCB consolidation improved loan portfolio's growth and its quality," said Olga Belenkaya, an analyst with Sovlink.VTB said that the acquisition of 43.2 percent stake in TCB last year helped it to increase total gross loans by 20.2 percent to 3.06 trillion roubles."Now the market is waiting for clarity on how mergers and acquisitions will affect VTB's growth prospects," said Andrei Klapko, an analyst with Gazprombank.VTB said its net interest margin, which shows the bank's efficiency in core business, rose to 5.1 percent last year from 4.6 percent in 2009.Its non-performing loan ratio decreased to 8.6 percent of total gross loans from 9.8 percent at the end of 2009. The results were also boosted by lower provision charges for impairment of debt financial assets, which were down to 51.6 billion roubles, almost three times less than in 2009. ($1=27.79 Rouble) (Writing by Katya Golubkova; Editing by Hans Peters) Russia's VTB posts 16 bln rbl fourth-quarter net profit 27/04/2011Russia's second largest bank VTB posted a 16 billion ruble ($573.47 million) net profit to International Financial Reporting Standards in the fourth quarter of 2010 after a loss in the same period a year earlier.VTB's net profit for 2010 amounted to 54.8 billion rubles after a 59.6 billion ruble loss in 2009, the bank said in a statement.Operating income before provisions rose 32.2 percent to 221.1 billion rubles, and net interest income before provisions by 12.4 percent to 171.1 billion rubles in 2010, the bank said.VTB also received a 14.7 billion ruble income from financial investment last year compared to a 20.2 billion ruble loss in 2009.Staff and administration costs rose 24.5 percent to 95.1 billion rubles due to corporate investment business development and the expansion of the bank's retail chain.VTB's credit portfolio before provisions rose 20.2 percent to 3.1 trillion rubles. The bank's corporate credit portfolio grew by 19.4 percent to 2.518 trillion rubles while the retail credit portfolio was up 24.4% to 541.5 billion rubles.The share of non-performing loans in the bank's credit portfolio fell to 8.6 percent at the end of 2010 compared to 9.8 percent at the end of 2009.The bank said the growth of VTB's assets in the fourth quarter was due to the recent acquisition of a 43.2 percent stake in Transcreditbank.MOSCOW, April 27 (RIA Novosti)?Raiffeisen committed to Russian banking – paper ISTVIENNA, April 27 (Reuters) - Austria's Raiffeisen Bank International (RBI) RBVI.VI has no plans to wind down some of its operations in Russia, the company's chief executive was quoted as saying on Wednesday.HSBC (HSBA.L: Quote, Profile, Research), Europe's largest bank, said on Monday it would close down its retail banking operations in Russia after only two years, following similar moves by other banks including Barclays (BARC.L: Quote, Profile, Research). [ID:nLDE73O047]"In Russia you separate the wheat from the chaff," RBI CEO Herbert Stepic said in comments in Austrian daily Die Presse.It was mainly companies which entered the market in the hope of quick profits which would withdraw, he said."In contrast, we are a long-term investor," Stepic said. His bank has been in Russia for two decades and has around 200 branches there. Russia brought in around a fifth of RBI's profit last year. (Reporting by Sylvia Westall; Editing by Louise Heavens) Russia's Uralkali may close two plants –paper ISTMOSCOW, April 27 (Reuters) - Russian potash minter Uralkali's board will discuss closing several plants in its Berezniki mining complex at a board meeting on Wednesday, the Kommersant business daily reported. Sources told the paper the closure of both a chemical treatment plant and a carnalite enrichment plant, both used in the production of chloride fertilizer, could cut potash output by 270,000 tonnes per year, or around 5 percent of the company's total output in 2010. Earlier this month Uralkali said it intended to develop a plan to phase out its first mine by the end of 2012. The paper's sources said the mine is heavily flooded and therefore not very profitable. (Writing by Jessica Bachman; Editing by Clarence Fernandez) Russia's Acron says 2010 profit fell 16 pct EDTMOSCOW, April 27 (Reuters) - Russian fertiliser group Acron (AKRN.MM: Quote, Profile, Research, Stock Buzz) said net profit fell 16 percent to $207 million in 2010, as it profited from a one-off disposal in 2009, while market conditions in the current year remain favourable."In the beginning of 2011 conditions remained favourable in the global fertiliser market and we anticipate further growth in operating and financial highlights," Chairman Alexander Popov said in a statement on Wednesday.(Writing by John Bowker, Editing by Alfred Kueppers) Acron net profit down 16 pct to 6.3 bln rbls 27/04/2011MOSCOW, April 27 (RIA Novosti) - Acron, one of Russia's largest mineral fertilizer producers, posted a 16 percent fall in its 2010 IFRS net profit to 6.279 billion rubles ($207 million), Acron said on Wednesday.Acron's 2010 revenues grew by 24 percent to 46.738 billion rubles, the firm said, thanks to growth in sales and rising world prices for mineral fertilizer and sales, the firm said."Stable high demand for nitrogen and complex fertilizers in 2010 drove output and sales at the Group's companies. Our main production facilities operated at full capacity throughout 2010, and an aggressive distribution policy furthered expansion into new, rapidly growing markets in Asian and Latin America," Acron board of directors chairman Alexander Popov said in a statement.The company's EBITDA grew 42 percent year-on-year to 10.336 billion rubles, while EBITDA margin rose to 22 percent from 19 percent in 2009."EBITDA was up at all of the group's business segments, including Hongri Acron, which posted an EBITDA margin of 11%, against a loss incurred in 2009," Acron said.Acron's 2010 net debt was up 15 percent to 28.315 billion rubles due to the group's intensive investment program."In the beginning of 2011 conditions have remained favorable in the global mineral fertilizer market, and we anticipate further growth in operating and financial highlights. We will also continue implementing key investment projects to increase the shareholder value of the group," Popov added.Siemens Starts on Major Train Order April 2011InterfaxGerman concern Siemens launched the?production of?38 of?54 Desiro (Lastochka) electric trains Tuesday for?Russian Railways at?a plant in?Germany. The?order for?the shipment was submitted in?December 2009. Its value came to?410 million euros ($598 million). The?electric trains are being purchased by?Russian Railways for?transporting passengers for?the 2014 Olympics in?Sochi. Fifty-four Lastochka trains will begin operating in?2013. The?final 16 trains, the?production of?which had been included in?the preliminary contract, will be assembled in?Russia at?the Siemens and? HYPERLINK "" Aeroexpress joint venture. Initial localization of?production will come to?35 percent but will increase to?80 percent in?the future. The?total contract for?the 54 trains came to?585.9 million euros. The?Lastochka model has been adapted for?the Russian market and?can operate in?temperatures as cold as minus 40 degrees Celsius.Cisco Will Assemble Boards in Zelenograd April 2011By Olga RazumovskayaZELENOGRAD — Electronic components assembled for?global technology company Cisco Systems began rolling off a?Zelenograd assembly line Tuesday as part of?the Silicon Valley company's commitment to?invest in?Russia.Cisco has contracted with Altonika, a?small electronics manufacturer, to?complete printed circuit boards for?its virtual private network equipment — elements of?corporate networks that securely allow information transmission within a?company.The new agreement is a?part of?Cisco's pledge to?invest $1 billion in?the development of?information technologies and?entrepreneurship in?Russia over the?course of?the next 10 years.Altonika, a?company with more than 20 years of?manufacturing history that makes 4 million electronics items a?year at?its Zelenograd site, will install components on?printed circuit boards made in?Taiwan and?China and?test the?assembled units. It has invested 200,000 euros ($290,000) in?new equipment for?the Cisco project, on?top of?its existing 1 million euro budget for?equipment upgrades.Cisco Russia's general manager Pavel Betsis said cooperation with Skolkovo is at?the top of?the company's priority list.The IT giant plans to?invest in?creating a?research and?development center at?Skolkovo as well as participate in?the so-called virtual Skolkovo project, which will unite specialists, venture capitalists and?academia in?an ecosystem before the?actual city of?Skolkovo is built in?2015."We are very happy with [Skolkovo's] progress. … It has only been a?year since Skolkovo was launched, and?much more has been achieved than we even hoped for," Betsis told The?Moscow Times.The company, which sponsors a?worldwide competition for?startups to?access Cisco venture capital, opened up the?third phase of?the program to?Russian entrepreneurs starting in?November of?last year, and?received more than 2,000 applications — more than it had globally during the?first two years of?the competition, Betsis said.TELE2 B : Russia awarded 6 new GSM licenses | 02:05 amStockholm - Tele2 AB (Tele2), (NASDAQ OMX Stockholm: TEL2 A and TEL2 B) today announced that it has been awarded 6 new GSM licenses in Russia. Including those new licenses, Tele2 Russia's footprint will cover 43 regions with a total population of more than 62 million. ?Dmitry Strashnov, Market Area Director and CEO Tele2 Russia, commented: "Tele2 would like to be the regional operator of choice in Russia, helping the country's citizens to access affordable and reliable telecom services. Receiving 6 new GSM licenses is a step in the right direction and will make our Best Deal proposition available to an even larger number of consumers and businesses in the country."Russian Finance Minister to Leave Alrosa Board , 10:00 / World The long-serving chairman of the Alrosa Supervisory Board, Finance Minister Alexei Kudrin, has announced he will step down at the next Alrosa shareholder meeting scheduled for June 30.Kudrin's exit from the board has been forced by a presidential decree, issued on April 2, ordering senior Russian ministers to vacate their seats on state-owned company boards.?A press statement, issued by the Finance Ministry earlier this week, said that Kudrin is complying with the "request of the Russian President Dmitry Medvedev on April 2, 2011 for the implementation of priority measures aimed at improvement of the investment climate in the Russian Federation."?The statement said Kudrin will be leaving the boards of state-controlled VTB Bank and Alrosa, the government-owned diamond producer.?A well-informed source among Moscow diamantaires told that he believes the likely candidate for chairman of the board will be a Kudrin stand-in, namely Deputy Finance Minister Alexander Akhpolov.?Akhpolov, 55, is an Ossetian who spent much of his career in financial and tax administration in the Russian federation republic of North Ossetia. In Moscow since 2001, he has been in charge of the financial flow control and administration of the Finance Ministry.?He is not known to have had previous experience in the diamond sector.?By John Helmer in Moscow.27 Apr, 2011 09:30 CET Sweco expands in Russia – acquires infrastructure consultancies with 260 employees has acquired the Russian infrastructure consulting companies OOO IKPT and ZAO NIPI, both leading engineering consultancies in the transport sector. Through the acquisitions, Sweco has significantly advanced its position in Russia and will have a total of 360 consultants in the country.The acquisition represents a further step in Sweco's initiative to expand in Eastern Europe and Russia in the infrastructure, environmental and energy segments. Sweco now has close to 1,300 employees in Eastern Europe and Russia.“Russia represents an attractive opportunity for Sweco. The country has an extensive need to modernize its infrastructure, particularly in the transport sector. Russia has a strong growth and healthy public finances to back up the required investment’s. The acquisitions represent a major step forward for us in the Russian market,” says Mats W?ppling, CEO of Sweco.Both companies have offices in St. Petersburg, Moscow and Niznhy Novgorod. IKTP is mainly active in road design and NIPI in transportation consulting. In recent years the companies have played a leading role in several of Russia’s most important transportation projects, including a major road reform on behalf the Russian government and transportation planning in preparation for the Olympic Games Sochi.“The acquired companies are among the country’s most respected infrastructure consultancies with a solid track record of prestigious projects and strong growth. We already have strong positions in water and environment in Russia and can now offer our leading expertise in the infrastructure area, "says Jonas Dahlberg, President of Sweco Russia.The companies, which had previously been marketed together under the name RDIRDT, have combined sales of about SEK 80 million. Sweco has acquired 100 percent of the shares in both companies. Sweco has already some 100 employees within water and environment in St. Petersburg.KAMAZ ups 2011 targets CapitalApril 27, 2011Event: Today (27 April), RBC Daily reported that the management of KAMAZ plans to revise its 2011 targets and business strategy through 2020. According to the head of KAMAZ, Sergey Kogogin, the company will increase its 2011 production target to 38,300 from 31,000, and plans to raise its 2011 revenue and EBITDA forecasts. KAMAZ targets a 40% market share in 2011. Action: Positive for KAMAZ, in our view. Rationale: The company's previous sales forecast implied just 10% YoY growth, which management now views as too conservative. The upward revision (with 36% YoY growth) does not seem too bullish to us, given a solid heavy commercial vehicle sales performance (our forecast is 23% YoY growth in 2011, which we think is conservative), and KAMAZ's strong performance in 1Q11 (sales up 34% YoY). We expect changes to the company's long-term strategy to account for sales under the forthcoming cash-for-clunkers programme for trucks, which will be supportive for volumes. Ivan KimFortum's CEO Tapio Kuula gives interview to Vedomosti; comments on investments in Russia CapitalApril 27, 2011News: Fortum's CEO Tapio Kuula has given an interview to Vedomosti. The company's main investments in Russia are a controlling stake in TGK 10 and a blocking share in TGK 1. Talking about the regulatory environment, he pointed out that the regulator and political society were listening for Fortum's position and its intention to bring an efficient framework to the electricity market. He also added that they were generally satisfied with their investments in Russia, but pointed out that long-term visibility over reform is highly important. Talking about TGK 1, Fortum is quite satisfied with joint ownership with Gazprom. On the heating business, Kuula said that despite this market currently not being that profitable, he sees the sector being attractive for investment in the future. One of the reasons is the huge potential to improve efficiency. The company is now in discussion with the government and finding support for the need to invest into the heating segment and to bring the economic stimulus to do so. Our View: We think Kuula's comments emphasise the importance of visibility over reform for the sector's long-term attractiveness. We welcome the company's dialogue with the government and that it is satisfied with its investments in Russia. Meanwhile, we believe focusing on the changes required to the heating market regulation will add to TGKs' attractiveness and welcome any steps towards introducing more efficient regulation. His comments are also in line with our view that improving efficiency will uncover the big potential and bring greater profitability to heat producers (i.e. TGKs). Overall, we think Kuula's comments are generally supportive for the utilities sector and the fact that Fortum has a strong position on the market is likely to help the sector outlook. Dmitry SkryabinActivity in the Oil and Gas sector (including regulatory)Russian regions suffer from petrol shortages CapitalApril 27, 2011News: Prime Minister Vladimir Putin has ordered the respective government agencies to check why a number of Russian regions are facing shortages of fuel at petrol stations. The deficit is particularly acute in Altai Region (2.5mn people). According to the Russian Fuel Union, fuel shortages are also emerging in St Petersburg (4.6mn people), Voronezh (2.2mn people), Novosibirsk (2.6mn people), and Sakhalin (0.5mn people).The Federal Anti-Monopoly Service has accused Rosneft and Gazprom Neft of a cartel agreement limiting fuel supply in the region. In response, the companies agreed to increase fuel supply 15% YoY in April-May.Our View: The fuel shortage at petrol stations has probably arisen because of the government's attempts to limit petrol prices inflation. In January, petrol prices jumped 4.1% MoM and the government resorted to the common practice of price caps. As a result of these administrative measures, petrol prices declined 1.5% MoM in February and 0.8% MoM in March, despite the continued surge in crude oil prices.It appears that petrol price caps have become binding and oil companies are looking for ways to protect their margins (we estimate that major oil companies lost USD 1.0bn in 1Q11 due to price controls). Hence, petrol prices are likely to rise, fuelling headline inflation. We are reiterating our view that inflation risks are high: we expect it to reach 9.0% YoY in managers boost stakes in Rosneft , 27.04.2011, Moscow 11:37:37.Rosneft President Eduard Khudaynatov and two members of the management board raised their stakes in the company on Tuesday, the state-controlled oil major announced today.??????Khudaynatov's stake rose from 0.0051% to 0.0295%. Larisa Kalanda increased her ownership from 0.0035% to 0.0068% and Pavel Fyodorov lifted his equity position from 0.014% to 0.0047%.??????Rosneft launched a share buyback program on April 19. The company's subsidiary RN-Razvitiye bought $104m worth of Rosneft shares on the open market, while Rosneft increased the holdings of own shares to 9.53% from 9.42%. In the coming months, Rosneft intends to buy $100m-$200m worth of its owns shares. ONGC gears up for Bashneft stake move, 27 Apr 2011India’s Oil and Natural Gas Corporation has hired two investment banks to help it acquire a stake in Russia’s Bashneft, according to people close to the matter. Rothchild and Citigroup will advise state owned ONGC on its attempt to buy a 25% stake in the Russian production and refining group which has a market value of USD 10.5 billion.India has been leveraging on its historic ties with Moscow to secure energy assets in Russia as it struggles to compete with financially stronger Chinese oil and gas groups in the race for energy resources. Russia had been a close partner of India’s during the Soviet era but relations fell dormant between the two for more than two decades after the collapse of communism in 1991.One of the deals was a framework agreement between ONGC and Sistema which owns the stake in Bashneft that the Indian company wants to buy. It paved the way for the two companies to share equity in their Russian oil assets and consider joint operations in other countries.ONGC has a market capitalization of USD 52 billion acquired Imperial Energy, a London-listed company with most of its assets in Russia, for nearly USD 2.1 billion in December 2008. Meanwhile, Sistema which is controlled by Russian billionaire Mr Vladimir Yevtushenko has large stakes in several oil producing and refining groups in Russia including Bashneft and RussNeft.Bashneft’s oil production in 2010 hit 276,000 barrels per day. This is expected to grow after it won the tender to develop the Trebs and Titov oilfields in the Russian Arctic which have an estimated 200 million tonnes of reserves.ONGC has come under fire from India’s official auditor which questioned the group’s transparency and its ability to secure overseas assets. The Comptroller and Auditor General of India said ONGC had had a habit of expressing intentions of buying foreign assets in Vietnam, Australia and African countries and failing to follow through.The CAG added that out of 36 acquisitions, only five had been successful.(Sourced from Financial Times)Lukoil to invest $3.6bn in Caspian Sea field , 26.04.2011, Moscow 17:33:38.Lukoil intends to invest over RUB 100bn (approx. USD 3.57bn) to bring on stream its northern Caspian Sea Filanovskoye field over the next 4 years, the oil major's President Vagit Alekperov said today. The company plans to start tenders to select subcontractors for the project in May and to announce tender results by September.??????Over the next 20 years, Lukoil plans to invest over $20bn in its Caspian Sea projects, Alekperov also said. The company launched the first of its six fields in the northern Caspian Sea, the Korchagin field, in 2010. The next one, the Filanovskoye field, is expected to be commissioned in 2015. Expert: Georgian gas pipeline repair providing the transit of Russian gas to Armenia will be $800 million, April 27. /ARKA/. Repair of Georgian gas pipeline through which Russian gas transits to Armenia will be $800 million”, said Deputy Director of the Fund “Noravank” Sevak Sarukhanyan during the round table on the issues of nuclear energy. “Georgian gas pipeline is in a very poor condition and though the Georgian side modernized some sections by the program “Millennium Challenges”, necessary investments in the project are estimated $800 million for functioning in a normal regime”, said Sarukhanyan.There are some sections of the gas pipeline in the north of Georgia which pass through the gorge and are insufficiently protected. In case of damage, even by the most optimistic forecasts, their repair will need about 5 months. The current level of gas consumption in the gas storage of Abovyan city is not sufficient for gas provision to population. Gas consumption in Armenia makes in average from 6 to 12 million cubic meters daily depending on the season. Gas supply to the consumers in Armenia, if necessary, is provided at the expense of reserves of Abovyan underground gas storage station which provides regulation of seasonal and peak irregularities in the industrial consumption of natural gas, as well as major gas consumers. Gas storage, depending on the time of year, can provide fuel to the most important consumers during 1-1.5 months. “ArmRosGazprom” is a monopolist in the delivery and distribution of Russian natural gas in the Armenian market delivered by transit through Georgia. Armenian-Iranian gas pipeline is also operating in Armenia. It is planned to process Iranian gas into energy for export to Iran from calculation of 3 kWh for 1 cubic meters of natural gas. --0--27/04/2011 11:23Arcland Energy Executes MOU with Russian Company for Kumskaya Neft., Apr 27, 2011Arcland Energy Corporation (OTC: ACLY), an independent oil and gas company, is pleased to announce the execution of a Non-Binding Memorandum of Understanding ("MOU") with the Russian company ZAO Neftemontazhspetsstroi ("ZAO") to acquire a 74.99% ownership interest in Kumskaya Neft, LLC ("Kumskaya Neft") a?private?independent oil and gas exploration and production company in the Russian Federation.? The MOU facilitates the terms of the acquisition between the companies and relates to the completion of final exploration and the construction of infrastructure on the Kumskaya Neft oil and gas production project, located in the Khanty-Mansy Region of the?Russian Federation. In addition, Arcland will maintain the rights to develop, own, operate and manage a pipeline project reserved for its own oilfields and other targeted areas in the?Russian Federation. ?An updated reserve report related to the Kumskaya Neft project, prepared by Miller & Lents, is expected to be completed before the end of the second quarter 2011. ?Highlights* Proposed?acquisition?will create a joint American-Russian oil subsidiary company with two?core areas; exploration and production;*?Kumskaya Neft owns 100% of the interests in the targeted areas of exploration;* 2D and 3D seismic reports are available to delineate additional potential oil and gas structures in the targeted areas.* P10 resources of 25.17MBmm barrels of oil based on the Miller & Lents independent Reserves?Report.?Source: PR NewswireThe East will be tempted with gas: 27 April, 2011, 00:36Edited: 27 April, 2011, 08:54 The Japanese Fukushima nuclear power plant has encouraged Russia’s hydrocarbon explorers Yesterday it became known that Russia is planning to dramatically increase its gas supplies to Japan. Experts believe that the new Asian markets will significantly augment Russia’s budget, but will not eliminate the deficit.? Yesterday, Gazprom published a statement announcing its plans to construct a liquefied natural gas (LNG) production plant in Vladivostok.“This is the first sign indicating the beginning of a realignment of Russia’s gas supplies from Europe to the East,” Pavel Protasov, a senior expert at the Institute of Energy and Finance, told Trud.?? At the same time, Russia’s traditional gas supplies to Europe will increase for a certain time period.“But this increase will be negligible, while the export volume to the Asia-Pacific region is able to rise to 30% at once,” explained Valery Nesterov, an expert with Troika Dialogue. This situation is explained by the fact that the European countries have recently intensified their search for an alternative to Russian gas. In particular, the portion of shale gas – which is produced in Europe and is significantly cheaper than the gas from Russia – in Europe’s energy balance has begun to increase.?????? The changing of direction of gas flows benefits Russia not only due to the supply volumes, but also because commodity prices on the Asian market are 20% higher than on the European market.“It is estimated that, in 2020, Europe will be purchasing gas at the price of $12.1 per one Million British Thermal Units (MBTU), and Asia $13.9 per MBTU,”explained Protasov, using the acronym for the standard measurement for gas exports.Moreover, most of Russia’s raw materials are located in Siberia, which means that it is more profitable to direct them east rather than west. Over the next 10 years, once the plant in Vladivostok is constructed, pipelines to the plant are laid and marine freight service is set up, the eastward direction will bring Gazprom an annual revenue of $18 billion, at the price of $300 per 1,000 cubic meters and with the supply volume of 60 billion cubic meters of gas, says Protasov. With the proceeds from the eastern consumers – mainly Japan, China and South Korea – Gazprom will annually contribute about $5.4 billion to the Russian budget.Ukraine has no trump cards to protest? Gazprom’s entry into the eastern markets was prompted by the recent events at the Japanese Fukushima nuclear power plant. Today Japan is forced to compensate for its nuclear energy losses by purchasing liquefied gas. Yesterday Russian President Dmitry Medvedev marked the 25th anniversary of the Chernobyl accident by traveling to Ukraine, where he discussed with his Ukrainian colleague the future of nuclear energy in light of the Japanese catastrophe. ?But the presidents also touched on some of the more topical issues in their bilateral relations. It was coincidentally a year since the signing of the so-called Kharkov Agreement, in which Russia extended the lease of the Black Sea Fleet until 2035, and Ukraine received a 30% discount on gas. But it seems that this exchange no longer suits Ukraine. It is more insistent in calling for a revision of the gas contracts and establishment of discounted prices. Experts doubt that Ukraine will get concessions from Russia.“Russia has trump cards: in October-November of this year, oil will start flowing to Europe through the Nord Stream pipeline, and in the not-so-distant future, through South Stream as well. As a result, Ukraine is rapidly losing its role of an intermediary between us and Europe,” said Nesterov. At the same time, however, he believes that a price compromise between Ukraine and Russia is theoretically possible, but only under the condition that Kiev offers something substantial in return to Russia.An end to oil As for the general situation with raw hydrocarbons, analysts believe that by increasing gas exports, Russia will not be able to eliminate its current budget deficit of 4.5% of GDP (60 billion rubles) in the near future. It can only be closed by oil, provided that its prices remain high for long enough.“Russia will continue to exist primarily due to petroleum sales,” concluded Protasov.??? ?Meanwhile, with each passing year it will become increasingly more difficult to produce oil, which means that its production costs will rise. Neither are reserves unlimited. According to geologists, proven oil reserves in Russia will last only for about 70 years. But that’s not all. Recently, the Ministry of Natural Resources published a report in which it is stated that not only are oil reserves gradually diminishing in Russia, but so is the quality of deposits. In other words, small deposits – the reserves of which are insignificant and difficult to extract – are becoming prevalent in the country.Russia running out of easy oil: state study Dmitry Zaks (AFP) – 15 hours agoMOSCOW — An ominous Russian state study warned the government Tuesday that it faced a light crude oil shortage that meant it could only sustain its world-topping production rates for another 15 years.The annual ministry of natural resources survey painted a bleak Russian energy picture that also pointed to problems in future export rates of natural gas -- the domain of its largest and most important company Gazprom.But most of the problems focused on oil and its deteriorating and diminishing quality in Russia's Soviet-era wells.The detailed study said Russia was tapping its existing light crude reserves in western Siberia at alarming rates while failing to replace them with new finds in regions that sit further away from the industrial heartland.The ministry concluded that oil quality was deteriorating steadily as a result and Russia could only sustain current annual production rates of 500 million tonnes for another 13 to 15 years."Russia has less than 30 percent of oil that 'flows' -- the remaining 70 percent is very heavy, viscous and hard-to-recover," said the survey while pointing to some western Siberian fields that stood more than two-thirds empty.It added that most of the crude being produced now was of the light variety demanded on the world market -- meaning that more and more of what Russia had left over demanded extra amounts of government officials have spent years warning about too little money being invested in the development of untapped reserves in far-flung regions of eastern Siberia.Oil companies have lobbied in favour of state policies that introduce tax breaks on firms that export from newly discovered locations and invest in geological survey work.But the latest government findings show investment in new oil exploration declining by 40 percent and actual work going down nearly 50 percent.The ministry also noted that the work being done in new locations was disappointing and discovering only small traces of oil."So far, the expectations are not being fulfilled," the Russian natural resource ministry said.It further urged the government to introduce a more open licensing system that would offer private companies easier terms for oil exploration and a new tax breaks programme for field development work.Russia regained the world's top oil production ranking in the past decade and has been the world's top natural gas exporter throughout the post-Soviet era.But the latest study warned that even this lead was not safe because the world was switching to liquefied natural gas consumption while the United States and Canada were also pushing ahead with the development of shale gas.Gazprom has been forced to temporarily stall the development of its Shtokman field in the Barents Sea after discovering the United States was no longer willing to import its expected supplies.The state-run giant also reported a drop in European sales last year and the Russian ministry warned that further complications for Gazprom were likely."European consumers are increasing their liquefied gas purchases, seeking to at least partially replace the Russian pipeline supplies," said the survey."This trend is irreversible," it starkly noted.The ministry observed that the new European policy could endanger Russia's planned South Stream and North Stream pipelines -- two projects designed specifically for European markets.GazpromNaftogaz Ukrayiny must pay more than $1b to Gazprom by May 7 Staff ReportKIEV, Apr. 26 - Ukraine’s national energy company Naftogaz Ukrayiny will have to pay more than $1 billion to Russian gas giant Gazprom before May 7 for gas imported in April, a Naftogaz official said Tuesday.Ukraine is buying Russian gas at about $296 per 1,000 cu m in the second quarter of 2011, compared with $264/1,000 cu m in the first quarter.Naftogaz needs to make monthly payments to Gazprom within the first week of each next month to comply with a 10-year natural gas agreement both signed in January 2009.A failure to pay on time for Dong teams with Gazprom in power deal's Dong Energy will work with Russian gas giant Gazprom to explore opportunities for promoting gas-fired power generation in Europe, the companies have announced. News wires ?27 April 2011 03:33 GMT The cooperation will focus on promoting the use of natural gas in Europe as an alternative to coal and a complement to expanding renewable power generation capacity, Dong said in a statement. "The cooperation will combine DONG Energy's experience and capabilities in power generation with reliable and long-term gas supply from Gazprom in a joint effort to build new gas-fired power capacity in Europe," the state-owned company said. No money changed hands under the deal, a Dong spokesman told Reuters. The deal was signed during a visit to Denmark by Russian Prime Minister Vladimir Putin, who said Russia will later this year begin supplying gas to Denmark through the Nord Stream gas pipeline from Russia to Germany. Putin told a news conference in Copenhagen that the maritime part of the pipeline will be completed by mid-May, gas will go into the pipeline in July, and European customers will get their first Nord Stream gas in either October or November. Under a 2006 deal, Dong is to take delivery of 1 billion cubic metres of Nord Stream pipeline gas from Gazprom at the Danish-German border and Gazprom is to get gas from Dong in Britain from the company’s upstream position in the North Sea. In 2009 the agreement was extended to contain deliveries of 2 billion cubic metres of gas from Gazprom. Danish Prime Minister Lars Lokke Rasmussen told the news conference that the Nord Stream gas would help boost Denmark's energy security, Reuters reported. Dong Energy chief executive Anders Eldrup said the deal would strengthen Dong's long-term cooperation with Gazprom. "A strong focus on renewable energy and gas-to-power will become an important cornerstone in the transition to the sustainable energy production of the future," Eldrup said in the statement. Published:?27 April 2011 03:33 GMT ?|?Last updated:?27 April 2011 03:35 GMT Gazprom to explore Barents and Kara seas in Arctic Province 26, 2011Analysis by: Michael LynchSummaryGazprom has approved a program to develop hydrocarbon resources on the Russian continental shelf through 2030.??The company says that over 80% of? the resources are located in in the Barents, Pechora and Kara seas. A priority is development of Shtokman gas/gas condensate field. The program will use advanced engineering and technology. The program should allow Gazprom to produce over 200 billion cubic meters of gas per year and?10 million tons of oil by the year 2030. Progress report due in 2012.AnalysisThe above is an extract of? an article prepared by the Offshore staff published on line on 20 April. While Russian production today of 10.3 million bbl/day is the single largest in the world, it is?considerably lower than the 12.5 million bbl/day that the country produced during the final decade of the?Soviet Era. Russia, taken as a whole is an old petroleum province, almost as old as the U.S. Russian exports to Europe began in 1886 from fields controlled by the Caspian and Black Sea Petroleum Company (Nobel/Rothschild). A major reason for the decline?is that the supergiants Samotlor (1966) in Western Siberia and Romashkino (1948) in the Second Baku fields north of Orenburg are both in advanced decline. While the decline at Samotlor has been somewhat lessened by the ongoing redevelopment activity by TNK-BP, it is not likely to ever again produce at its peak rate of 2.6 million bbl/day. Romashkino began its decline around 1970. Official Russian crude oil reserves as of January 1, 2011 were 60 billion barrels?and this figure will be extended as new production on the continental shelf comes on line. But the facts are that if Russia is to?continue to be a major exporter of crude oil and natural gas, programs for the Arctic region must be implemented today. That is the reasoning behind the Gazprom move.??Gazprom Skyscraper in Lakhta Gets New Web Site St. Petersburg TimesPublished: April 27, 2011 (Issue # 1653)ST. PETERSBURG (SPT) — The subsidiary of Gazprom responsible for planning the ill-fated, controversial Okhta Center skyscraper has set up a new web site for its latest project in the city’s Lakhta district, Interfax reported Monday. The web site, proektvlahte.ru offers information about the new construction site, the new design for a business center with public facilities, related tenders and other project news. The site also has a section on which visitors can ask questions or express opinions. “The design of the site reflects the concept of a public business center to be built in the city’s Primorsky district on the coast of the Gulf of Finland. The concept’s major components include modernity, accessibility, and an ecological approach,” the web site says. Okhta Public and Business Center company bought a plot of land in the area for the construction of its business center, which will serve as the headquarters of Gazprom Neft. The plot covers an area of 140,000 square meters and is located between Primorskoye Shosse and the coast of the Gulf of Finland in the northwestern part of St. Petersburg. The company stated that the design for the new center will be based on the previous Okhta Center project. That project was canceled due to public protests against the construction of a 400-meter skyscraper near the center of the city. April 27, 2011 11:34Gazprom to publish 2010 IFRS financials on April 28. April 27 (Interfax) - Gazprom (RTS: GAZP) will publish IFRS financials for 2010 on April 28, the gas giant said on its web site.In 2009, Gazprom saw IFRS revenue decline 9% to 2.99 trillion rubles. EBITDA fell 26% to 1.078 trillion rubles, while net profit rose 5% to 779.585 billion rubles. ................
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