Russia - WikiLeaks
Russia 100326
Basic Political Developments
• Prime-Tass: Russian calendar: Key events for March 26
o Russian Prime Minister Vladimir Putin to meet Lithuanian Prime Minister Andrius Kubilius in Moscow
o Meeting of CIS council of ministers in Moscow
o Agriculture ministers of BRIC countries to meet in Moscow
o Mineral Resources Agency to auction licenses for two hydrocarbon fields in Orenburg Region
o Shtokman Development board to approve final schedule of first phase of Shtokman field development
o May 8: Unofficial CIS summit in Moscow
o May 9: Leaders of CIS and other countries to take part in celebration of 65th anniversary of Victory Day in Moscow.
• RIA: Russia, IAEA to sign deal on international nuclear fuel reserve bank - Russia's state-run nuclear power corporation Rosatom and the International Atomic Energy Agency (IAEA) will sign next week an agreement on the creation of an international nuclear fuel reserve bank, a Russian respected business daily said on Friday.
• Fars: Russia: Bushehr N. Power Plant Launch on Track - Russia underlined that the nuclear power plant that it is building in Iran's southern city of Bushehr will start operations at the agreed time.
• NEI: Rostov 2 starts up - The second unit at Russia’s Rostov (Volgodonsk) nuclear power plant has started up. The unit was synchronized to the grid on 18 March after reaching 35% capacity.
• Ukrainian News: Hryschenko Goes To Russia For CIS Foreign Ministers Council Meeting
• Itar-Tass: Russia to give Abkhazia credit of 700 mln rbls - The work on giving Abakhazia a credit of 700 million roubles for additional capitalization of the Abkhazian Central Bank has been actually concluded, Russian Prime Minister Vladimir Putin said during a working meeting with President Sergei Bagapsh of Abkhazia on Friday.
• RFE/RL: Anticorruption Protest Held In North Ossetia - The protesters, who are members of the Law Prevails Over Power organization, also demanded the restoration of social allowances and other compensation that have been abolished.
Civil.ge: MPs in Dispute over Direct Flights with Russia - After allowing three charter flights in mid-January, Russia turned down the Georgian Airways’ request to resume regular flights saying that it was up to the aviation authorities of the two countries to negotiate the issue. The Russian Transport Ministry said it was up to Tbilisi to come out with the initiative to start talks.
Panorama.am: Nalbandyan and Lavrov talk on resolution of NKR conflict based on Madrid principles
• Public Radio of Armenia: Armenia, Russia FMs discuss Karabakh settlement
• Panorama.am: Nalbandyan says treaty should define excluding subordination of one principle to another
• RBC: Ukraine to pay for March gas supplies in full
• RBC: Russia ready to discuss gas price reduction for Ukraine
• Wall Street Journal: Ukraine Offers Russia Gas Deal - Ukraine, seeking gas price cut, says Russia could help run pipeline
• Russia Today: “Russia-Ukraine gas contract profitable” – Putin
• Itar-Tass: Russia remains interested in Ukraine's gas transportation system
• Reuters: UPDATE 1-Russia, Ukraine edge closer on divisive gas deal - Putin says "no issue is closed"; Russia needs reasons to revise gas prices; Russia may invest in Ukraine pipeline network; Ukraine will pay for March gas, but opposes contract; Countries to look again at "sore points" in business
• Jamestown: New Team in Kyiv Sets Stage for Gas Consortium With Russia
• Moscow Times: Ukraine’s Premier Wants ‘Clean Slate’
• People’s Daily: State Councilor urges enhanced scientific cooperation with Russia
• Itar-Tass: Upcoming Obama-Medvedev phone call likely to complete START deal
• Politico: START announcement expected Friday - The White House is planning to announce a new START treaty with Russia on Friday, two sources say.
• Washington Post: U.S., Russia 'close' on new nuclear arms treaty - Sen. John McCain (Ariz.), a key Republican voice on foreign policy, said this week there would be no GOP cooperation on anything in Congress because the Obama White House had "poisoned the well" with its health-care effort.
• RFE/RL: After Delays, New START Pact Might Bring Fringe Benefits
• Foreign Policy: Giving Putin His Due - Sidelining the Russian prime minister will do little to help President Dmitry Medvedev -- or the White House.
• Moscow News: International partnership on ‘e-government’ - Russia's race for hi-tech development has taken another American-sponsored step as politicians and businessmen resurrected the hot line for a conference on innovation.
• Itar-Tass: Russia needs new modern military archive – Medvedev
• RIA: Russia may unveil new 'super-tank' in summer 2010 - Russia's new main battle tank (MBT), the T-95, could be exhibited for the first time at an arms show in the Urals Region this summer, the developer and future manufacturer of the tank has said.
• BarentsObserver: Less Russian Generals - The number of generals in the Russian forces has been reduced from over 1200 to nearly 700, the Joint Staff reports. According to General of the Army Nikolay Makarov, Russian officers now have to do service in the troop forces to make it to the rank of General, Interfax reports.
• RIA: Russia to ease immigration rules to draw in specialists, investment - Russia is poised to ease immigration restrictions for highly-qualified foreign specialists in a bid to encourage the free flow of trade and investment in the country, a Russian business daily said on Friday.
• Gazeta.kz: Customs Union Commission of Kazakhstan, Russia, Belarus coordinated mechanism of transfer of import duties - "The committee members made the decision on the mechanism of transfer and distribution of import customs duties (other duties, taxes and tax collections having equivalent action) was accepted. According to the decision, the sum of import customs duties for each party have been distributed as follows: Belarus - 4.70 %, Kazakhstan - 7.33 %, the Russian Federation - 87.97 %."
• Gazeta.kz: Shuvalov does not exclude further trade disputes between Belarus, Russia and Kazakhstan
• Gazeta.kz: Deputies of Kazakhstan and Russia study question of simplification of rules of stay of citizens in territory of two countries
• Today.az: Russian Foreign Ministry: Russian language to spread in Azerbaijan
• : FYROM to initiate duty free trade with Russia - FinMin Stavreski announced conditions for return of Russia's clearing debt to FYR Macedonia, amounting to US$ 60 million, would mature by May.
• RIA: Three police injured in Chechnya blast - Three police officers were injured when an explosive device detonated in Chechnya, a police source told RIA Novosti on Friday.
• Voice of Russia: Moscow police neutralize major rob gang - All of the bandits arrested are Georgians who were illegally staying in Russia.
• Itar-Tass: Russia’s Far East launches tsunami center - The center will monitor the sea across the whole Pacific coast of Russia through dozens of stations located in Primorye region, on Sakhalin and Kamchatka Peninsula.
• BBC: Russian appeal of 'weather control' - Standing by an open hatch on a Russian military plane high up in the sky is tricky to do.
• RIA: Russia detains 2 foreign trawlers over illegal fishing - The Russian Coast Guard said on Friday it had detained two Cambodian-flagged fishing vessels near the island of Sakhalin in Russia's Far East on suspicion of poaching fish and crab.
• RFE/RL: Opposition Groups In St. Petersburg Agree To Cooperate - Yabloko political bureau member Boris Vishnevsky told RFE/RL that the main idea of the agreement is to coordinate all activities that are working toward the "return of democracy" to St. Petersburg.
Moscow Times: High-Speed Sapsan Has Locals Up in Arms - The Nevsky Express, which travels along that route, was the target of two terrorist bombings in 2007 and 2009. But after the launch of the new high-speed Sapsan train, travelers are finding that they have become targets of a different group: disgruntled locals.
• The Moscow Times: Customs to Work 24 Hours - The Federal Customs Service said Thursday that it would begin processing international mail around the clock next week to clear out a growing backlog of deliveries.
• Moscow Times: Cost of Bribes More Than Doubles in ’09 - The average cost of a bribe more than doubled last year, the Interior Ministry's economic safety department said Thursday, although experts say the figures may be on the low side.
• Itar-Tass: Criminal case instituted over attack on Shatura town mayor
• Russia Today: “Putin cares more about what he is doing than about how and when” – PM spokesman: Prime Minister Vladimir Putin's press attache, Dmitry Peskov, spoke with RT about the Premier’s attitude towards protocol, his team’s plans and Russia’s handling of the global economic crisis.
• Moscow Times: Dmitry Gets No Respect - Having established that Medvedev enjoys little respect among bureaucrats, Kulistikov asked, “Between you and reality are an army of bureaucrats. What are you going to do so that your decisions are implemented in the regions and not turned into a parody of themselves?” - By Michael Bohm
• Russia Profile: Assault on the Fourth Estate - As Liberal Media Figures Are Targeted by a Mysterious Smear Campaign, Hope for the Russian Press’ Integrity Came From a Conservative
• Reuters: PRESS DIGEST - Russia - March 26
o KOMMERSANT
o Belarus has filed a case against Russia for high duties on imported oil products from Russia, the paper reports.
o Workers of the Ford Motor Co (F.N) assembly plant in Vsevolozhsk went on strike on Thursday, demanding their salaries be increased by 25 percent, the paper reports.
o Russia's car maker Avtovaz (AVAZ.MM) will pay its 38 billion roubles ($1.28 billion) debts by mid-april, the daily says.
o VEDOMOSTI
o Russia may ease migration rules to attract foreign investors and specialists to modernise the country, the paper says.
o Russia will create a low-enriched uranium reserve in Irkutsk, which will controlled by the IAEA, the daily writes.
o GAZETA
o Russian veterinary watchdogs will inspect every car with an animal heading from Moscow to the suburbs in order to prevent the spreading of rabies, the daily says.
o VREMYA NOVOSTEI
o Russian businessman Andrei Lebedev has bought British newspaper The Independent for one pound, the paper says.
o TRUD
o The daily runs comments by Russian politicians, experts, artists on the 10th anniversary since Vladimir Putin was elected President in 2000.
• Moscow Times: Today in Vedomosti
o Greece Might Get IMF Help
o Internet Scams on the Rise
o Crisis Doubles Difficulty for Russian Business
• Russia Today: 26 March, 2010 in Russian Newspapers
o Vedomosti: A portrait of the beloved CEO
o Kommersant: Comedy named the price for laughter
National Economic Trends
• Prime-Tass: Russia's central bank to cut refinancing rate to 8.25% Mar 29
• Reuters: Russia c.bank cuts rates for 12th time in a year
• Bloomberg: Russia Cuts Rate 12th Time in a Year to Contain Ruble (Update1)
• Cbonds: Narrow monetary base rises Rub 39 bln
• Reuters: Russian rouble at new highs ahead of expected rate cut
• CommodityOnline: Russia to increase gold export by 13 percent
• Moscow Times: List of Strategic Enterprises May Be Reduced to 200
• Bloomberg: Russia to Keep 75% Plus Share of Shipper Sovkomflot (Update1)
Business, Energy or Environmental regulations or discussions
• Reuters: Russian markets -- Factors to Watch on March 26
o Troika: The Russian equity market was volatile yesterday. U.S. equities slid due to the disappointing treasury auction; crude is little changed; markets in Asia are trading higher. We are opening our prices varied, from flat to up slightly.
o Uralsib: The afternoon collapse in U.S. equities and the retreat to the relative safety of the U.S. dollar will again provide a very nervous backdrop for all global markets andcommodities today. Equities will remain in a sideways track until Greece's debt problem is finally resolved.
o EVENTS [RU-DIA] (All times GMT):
o SOCHI - Russian President Dmitry Medvedev chairs a meeting on sports issues.
o MOSCOW - Russian Prime Minister Vladimir Putin will meet Lithuanian counterpart Andrius Kubilus -0800.
o MOSCOW - Meeting of the foreign ministers of the CIS -0800.
o MOSCOW - Meeting of agriculture ministers of Russia, Brazil, India and China (BRIC), followed by a news conference at 1000.
o MOSCOW - A Moscow court to hold a hearing of a lawsuit by Josef Stalin's grandson against Ekho Moskvy radio -0700.
o IN THE PAPERS [PRESS/RU]:
o Russian oil exports from East Siberia will stay duty-free this year, but a tax may be levied in 2011 costing Rosneft (ROSN.MM), Surgut (SNGS.MM) and TNK-BP (TNBPI.RTS) over $2 billion, Vedomosti daily reports.
o Kommersant writes that Russian holding company Sistema (SSAq.L) is suing Russia's Sigma Capital Partners over a 32 percent stake in the Volga region telecoms operator SMARTS, to prevent its sale to state holding company Svyazinvest.
o TOP STORIES IN RUSSIA AND THE CIS [RU-NEWS]:
o TOP NEWS:
o Russia, Ukraine edge closer on gas deal
o Russia sees East Siberia oil duty from 2011
o Russia says may support Iran nuclear sanctions
o COMPANIES/MARKETS:
o Russian rouble gains again, nears 14-mth highs
o Russian companies' Feb loan rates at 18-m low
o VTB sees AvtoVAZ repaying 10 bln roubles
o Court orders Russian zinc plant to stop, clean
o Rio Tinto may swap Russia Norilsk for Onexim
o Russia may privatise 25.1 pct of TGK-5 this yr
o Russian Railways cuts Eurobond price guidance
o Wimm-Bill-Dann to pay divs for '09, not 2007-8
o ECONOMY/POLITICS:
o Russia aims at less "archaic" privatisation
o Russian gold/fx reserves rise to $448.2 bln
o Belarus picks leads for maiden Eurobond
o Belarus eyes China projects worth $10 bln
o Russia: French warship deal must include arms
o Russia jails officers for spying for Georgia
o ENERGY:
o Belarus sues Russia over oil products duty
o Russian refinery maintenance in March, April
o COMMODITIES:
o BRIC AgMins to discuss food security in Moscow
o Peru, Venezuela buy 50,000 T Russian wheat
• Moscow Times: Stricter Rules Eliminating Transfer-Pricing Schemes - Transfer-pricing schemes, under which Russian coal firms dodge taxes by selling output below market price to offshore resellers, are slowly disappearing because of state pressure and tighter corporate governance.
• Moscow Times: Domestic Gas to Lose Subsidies - The government will stop subsidizing domestic gas prices by 2014 as Gazprom seeks to profit from sales at home to help fund new fields and pipelines, Gazprom said Thursday.
• Bloomberg: Russian Zinc Plant Shut by Court on Pollution, RIA Novosti Says
• Moscow Times: For the Record
o Belarus hired BNP Paribas, Deutsche Bank, Royal Bank of Scotland Group and Sberbank for a debut eurobond offering this year as the country seeks to bolster its finances after export revenue tumbled. (Bloomberg)
o Mechel is warning clients about possible fraud by people purporting to act on behalf of its Mechel Service subsidiary with no authorization. (Bloomberg)
o Renaissance Capital, the commercial banking arm of Renaissance Group, is selling $225 million of three-year bonds, according to a banker with knowledge of the transaction. (Bloomberg)
o Ukraine’s antitrust body started an investigation into 15 oil companies, including UkrTatNafta, TNK-BP, Concern Galnaftogaz, and LUKoil’s Ukrainian units, accusing them of overcharging. (Bloomberg)
o Protek, a drug wholesaler, may sell as much as 15 percent of its shares for $300 million in an initial public offering in May, Vedomosti said, citing unidentified people familiar with the plans. (Bloomberg)
• TradingMarkets: Russo-Indian Telco Sistema Shyam Aims For Profit By 2012
• Ecommerce Journal: eBay has fully launched in Russia
• Russia Profile: Big Breaks for Big Business - The New Bill May Ease the Tax Burden on Large Holdings, but Smaller Firms Will Still Suffer from the Exacting Transfer Pricing Rules
Activity in the Oil and Gas sector (including regulatory)
• Reuters: Russia could see East Siberia oil duty from 2011-report
• Upstreamonline: Russian oil ‘duty free till 2011’
• BarentsObserver: More Arctic fields for Gazprom, Rosneft
• Cisoilgas: Energy efficiency: Russia’s hidden reserve
Gazprom
• Interfax: Gazprombank, Credit Agricole to help NOVATEK select Yamal liquefied gas partners
• Dow Jones: Gazprom Urges Market Pricing For Gas Sales In Russia –Vedomosti
• The Financial: Gazprom Links Natural Gas Price For Ukraine With Volumes Of Imports To Ukraine
• Financial Times: Energy: Progress frozen - Gazprom has spent heavily on developing infrastructure to serve its Bovanenkovo gas field, but production has been pushed back and its planned 400m tower in St Petersburg has yet to be started
------------------------------------------------------------------------------------------
Full Text Articles
Basic Political Developments
Prime-Tass: Russian calendar: Key events for March 26
Russian Prime Minister Vladimir Putin to meet Lithuanian Prime Minister Andrius Kubilius in Moscow
Meeting of CIS council of ministers in Moscow
Agriculture ministers of BRIC countries to meet in Moscow
Mineral Resources Agency to auction licenses for two hydrocarbon fields in Orenburg Region
Shtokman Development board to approve final schedule of first phase of Shtokman field development
May 8: Unofficial CIS summit in Moscow
May 9: Leaders of CIS and other countries to take part in celebration of 65th anniversary of Victory Day in Moscow.
RIA: Russia, IAEA to sign deal on international nuclear fuel reserve bank
12:0326/03/2010
Russia's state-run nuclear power corporation Rosatom and the International Atomic Energy Agency (IAEA) will sign next week an agreement on the creation of an international nuclear fuel reserve bank, a Russian respected business daily said on Friday.
Russia earlier proposed establishing international reserves of low-enriched uranium (LEU) to ensure stable fuel supplies to IAEA member countries in case of an emergency, including "insurmountable political difficulties."
IAEA representative Dana Sacchetti told Vedomosti that the agreement on the creation of the nuclear fuel reserve bank in the East Siberian city of Angarsk - one of the largest Russian uranium enrichment complexes - is due to be signed in Vienna on Monday by Rosatom's head Sergei Kiriyenko and the IAEA Director General Yukiya Amano.
While she did not specify the volume of the investment in the project, she said that the expenses would be covered by the Russian government.
Russia proposed in 2007 the creation of a nuclear center with LEU reserves in Angarsk, 5,100 km (3,170 miles) east of Moscow, to enable countries to develop civilian nuclear power without having to enrich their own uranium. The IAEA Board of Governors approved the establishment of a nuclear fuel reserve bank in November 2009.
Russia will recompense its expenses only if one of the IAEA members has problems with fuel supplies due to unforeseen circumstances.
The bank will support countries such as Vietnam, Indonesia, Egypt, Morocco and the UAE, which do not want to create their own nuclear fuel cycle, but want to build nuclear power stations and to be guaranteed a fuel supply.
Russia has pledged to give access to the reserves "to any IAEA member country that honors its non-proliferation commitments."
Iran may be also included in this list if it gives up its plans for enriching uranium or puts it under the full control of the IAEA.
However, the bank will not extend to the Bushehr nuclear power plant in southwestern Iran, which is already under IAEA guarantees. Russian fuel has also already been supplied to Bushehr, whose first reactor should be launched this summer.
Russia signed a contract with Iran in February 1998 for the completion of the plant.
Russia's state-run nuclear power corporation Rosatom said also this month that Russia would provide by the end of 2010 the first batch of low-enriched uranium for an international nuclear fuel reserve bank under the control of the UN nuclear watchdog.
MOSCOW, March 26 (RIA Novosti)
|News number: 8901060102 | |
|13:35 | 2010-03-26 | |
|Fars: Russia: Bushehr N. Power Plant Launch on Track | |
| | |
| | |
|TEHRAN (FNA)- Russia underlined that the nuclear power plant that it is building in Iran's southern city of Bushehr will start | |
|operations at the agreed time. | |
Russian Foreign Ministry Spokesman Andrei Nesterenko said on Thursday that Bushehr nuclear power plant will come on stream based on schedule.
Addressing a press conference, Nesterenko brushed off the US media claims that the power plant will be operational with delay, saying that it will definitely be operational once executive operations on it are over.
He said the electricity generated by the power plant will enter Iran's power cycle too.
He criticized the US papers' false claims on operation of Bushehr nuclear power plant and said they do not reflect realities.
Russia has been building the nuclear facility in Iran since 1994. The start-up of the station, originally scheduled to be completed in 1999, has been delayed on several occasions.
Western corporations began the construction of the Bushehr facility in the 1970s. However, following the 1979 Islamic Revolution in Iran, the Western companies reneged on their commitments and pulled out of the project due to political pressure from Washington.
Iran then turned to Russia to complete the project. In 1992, Tehran and Moscow signed a deal to complete the construction of the nuclear power plant.
|NEI: Rostov 2 starts up |
| |
|25 March 2010 |
The second unit at Russia’s Rostov (Volgodonsk) nuclear power plant has started up. The unit was synchronized to the grid on 18 March after reaching 35% capacity.
Rostov 2 is the first nuclear power plant to be completed in Russia during the last five years. It is a 1200MWe, Russian VVER-1200 reactor. The construction and now start-up of Rostov 2 is seen as a major milestone in Russia as it signifies the return to “serial construction” of nuclear power plants in the country.
Commissioning of the unit began on 19 December 2009, when the first heat-emission assembly was installed and criticality was attained. By Christmas, all of its 163 fuel assemblies were loaded up. Operation began on 22 January 2010 when the unit reached minimum controlled power level (about 1%). From 20 February the capacity of the unit was gradually increased from 1 to 35%, a level at which the plant can produce steam to power the turbines and run in the normal mode of operation.
Going forward the power will be gradually increased. When it reaches a capacity level of 50%, around May, it will begin a pilot phase of commercial operation. After reaching its nominal capacity (100%) Rostov 2 will begin commercial operation. This is expected in October 2010.
Ukrainian News: Hryschenko Goes To Russia For CIS Foreign Ministers Council Meeting
(09:54, Friday, March 26, 2010)
Foreign Affairs Minister Kostiantyn Hryschenko went to Moscow, Russia on a working visit to take part in a meeting of the Commonwealth of Independent States' foreign ministers council, reads a statement made by the foreign ministry press service.
In course of the visit Hryschenko will have a number of bilateral meetings with heads of CIS foreign ministries.
In particular, he is planned to lead talks with foreign affairs ministers of Kyrgyzstan Kadyrbek Sarbaev, of Belarus Sergey Martynov, of Azerbaijan Elmar Mamedyarov, of Kazakhstan Kanat Saudabaev, of Armenia Edward Nalbandian.
As Ukrainian News earlier reported, Minister Hryschenko went to Russia on March 16 and 17 for a working visit.
Itar-Tass: Russia to give Abkhazia credit of 700 mln rbls
26.03.2010, 10.40
NOVO-OGARYEVO (near Moscow), March 26 (Itar-Tass) -- The work on giving Abakhazia a credit of 700 million roubles for additional capitalization of the Abkhazian Central Bank has been actually concluded, Russian Prime Minister Vladimir Putin said during a working meeting with President Sergei Bagapsh of Abkhazia on Friday.
According to the Russian prime minister, “in the shortest possible time, specialists will finish the work on organizing this plan.” Putin specified that the credit will be given with a privilege period of four years and a privilege interest rate. The credit is to be given for ten years.
RFE/RL: Anticorruption Protest Held In North Ossetia
March 26, 2010
VLADIKAVKAZ, Russia -- An organization representing active and retired police officers held a protest against corruption in the North Ossetian capital, Vladikavkaz, RFE/RL's Russian Service reports.
The protesters, who are members of the Law Prevails Over Power organization, also demanded the restoration of social allowances and other compensation that have been abolished.
They say that large-scale unemployment and other social problems are the direct consequence of official corruption.
An unnamed member of the group told RFE/RL on March 23 that the main purpose of the protest is to remind society that remaining silent only encourages corrupt officials to continue violating the law.
The organization said it will hold protests every month.
|Civil.ge: MPs in Dispute over Direct Flights with Russia |
| |
|Civil Georgia, Tbilisi / 26 Mar.'10 / 12:17 |
Lawmakers briefly debated on March 26 about what Tbilisi’s stance should be on resumption of direct flights with Moscow.
A lawmaker from Christian-Democratic Movement (CDM), Nika Laliashvili, asked ruling party MPs why the Georgian transport administration was not sending a request to the Russian counterpart agency on resumption of direct flights between the two countries.
CDM, a leading party in the parliamentary minority, called on the authorities earlier this month to use the same practice of talks with Russia via the Swiss mediation, which was used in case of reopening border crossing point between the two countries and engage in talks on resumption of direct flights.
But lawmaker from the ruling party, Akaki Minashvili, responded that it was Russia which suspended the flights and it was up to Russia to submit a request for resumption of flights.
“For Georgia the priority is de-occupation and we should at first speak about de-occupation,” he said. “Those willing to take flight to Moscow are able to do that via third countries.”
MP from ruling party, Mikheil Machavariani, who is vice-speaker of the parliament, said: “There will not be three ‘international flights’ from Moscow into Georgia – Tbilisi, Sokhumi, Tskhinvali.”
Authorities in breakaway Abkhazia said efforts were underway to arrange direct Moscow-Sokhumi flights. There is no airport in Georgia’s another breakaway region of South Ossetia.
MP Giorgi Targamadze, the CDM leader, said that it remained unclear for him why the authorities were refusing to take “a rational approach”.
“Sending one paper [of request] to the Russian transport administration via the Swiss embassy will not destroy the state.”
We are talking about rational approach. If the Georgian authorities were in talks through the Swiss mediation with Russia and if it is justified, then why those Georgians living in Russia should be left without attention? It is the duty of the Georgian authorities to take care not only for those living in Georgia, but also for those Georgians living in Russia.
After allowing three charter flights in mid-January, Russia turned down the Georgian Airways’ request to resume regular flights saying that it was up to the aviation authorities of the two countries to negotiate the issue. The Russian Transport Ministry said it was up to Tbilisi to come out with the initiative to start talks.
Russia cut direct air flights with Georgia in October, 2006, following spy row between the two countries. The flights were restored in late March, 2008, but were again suspended after the August war.
Panorama.am: Nalbandyan and Lavrov talk on resolution of NKR conflict based on Madrid principles
11:11 26/03/2010
Armenian Foreign Minister Edward Nalbandyan had a meeting yesterday with his Russian counterpart Sergey Lavrov, Armenian MFA PR department reported.
According to the source a few bilateral, regional and international issues have been discussed during a warm and cordial talk.
Armenian and Russian FM-s have had a comprehensive talk related to the resolution of Nagorno-Karabakh conflict based on Madrid principles. Both ministers underscored that the conflict’s peaceful resolution has no alternative.
Edward Nalbandyan visited Armenian Embassy to Moscow and had a consultation with Embassy staffs. The issues of top priority of Armenian foreign policy have been discussed at the meeting.
Public Radio of Armenia: Armenia, Russia FMs discuss Karabakh settlement
26.03.2010 11:41
On March 25 the Foreign Minister of Armenia, Edward Nalbandian, participated in the non-official meeting of the Foreign Ministers of the Collective Security Treaty Organization.
The CSTO Foreign Ministers discussed the process of implementation of the decisions of the Collective Security Council, the coordination of the foreign policy of the member states, the support for Kazakhstan’s initiatives in the OSCE and the promotion of common priorities. The Ministers touched upon the situation in Afghanistan, attaching importance to the efforts towards reinforcement of stability.
Minister Nalbandian had a meeting with his Russian counterpart Sergey Lavrov. A number of bilateral, regional and global issues were discussed.
Ministers Nalbandian and Lavrov discussed the process of settlement of the Karabakh issue on the basis of the Madrid Principles, stressing that there was no alternative to the peaceful resolution of the issue.
While in Moscow Edward Nalbandian visited the Armenian Embassy and held consultations on Armenia’s foreign policy priorities.
Panorama.am: Nalbandyan says treaty should define excluding subordination of one principle to another
11:02 26/03/2010
Armenian Foreign Minister Edward Nalbandyan who is currently paying working visit to Moscow attended the foreign ministers’ informal summit of CSTO.
CSTO FM-s discussed the implementation processes of CSTO decision, confronting of foreign policy of CSTO member states, supporting of OSCE ruling Kazakhstan’s initiatives and other related issues. Afghanistan condition has been also referred to in the summit underscoring those efforts aimed to secure stability, Armenian MFA PR department reported.
Armenia’s Nalbandyan released a speech signifying CSTO improving image in the international arena; as its best evidence is CSTO-UN cooperation resolution to be adopted by the UN.
Regarding the drafting of European Security Treaty project, Edward Nalbandyan said: “Armenia finds it timely and important Russia’s initiative where the principle of stable security is defined. The treaty should define equality of all the international rights and excluding of subordinating one principle to another.”
RBC: Ukraine to pay for March gas supplies in full
RBC, 26.03.2010, Moscow 10:46:48.Ukraine is poised to pay before April 7 for Russian gas supplies in March 2010, "whatever it takes," Ukrainian Prime Minister Nikolai Azarov announced following a meeting with his Russian counterpart Vladimir Putin. Azarov indicated that Ukraine would pay for gas, even though it considered terms of the existing agreement to be quite unfavorable for the country.
He stressed that Ukraine would continue fulfilling its obligations.
RBC: Russia ready to discuss gas price reduction for Ukraine
RBC, 26.03.2010, Moscow 10:29:41.Russia is ready to discuss a potential decrease in the price for gas for Ukraine, Russian Prime Minister Vladimir Putin announced on Thursday. He indicated that Russia considered the parameters of the existing agreement with Ukraine as unprofitable and wrong. The agreement "was born in pain, scandals and costs for Russia, Ukraine and the EU," Putin stated. He noted, that the parties were able to reach a compromise, however, and agree on the transition to the market pricing for gas and gas transit.
"The agreement takes into consideration the interests of Ukraine and Russia, and it is accepted in the world and has proven to be effective," the PM noted. At the same time, he indicated that he had agreed with his Ukrainian counterpart Nikolai Azarov that there would be not off-limits topics, and it would be right to discuss cooperation in the energy sector. With this in mind, the parties will try to find a compromise, but it may take about a month, according to Putin.
MARCH 26, 2010
Wall Street Journal: Ukraine Offers Russia Gas Deal
Ukraine, seeking gas price cut, says Russia could help run pipeline
By RICHARD BOUDREAUX and JAMES MARSON
MOSCOW—Ukraine offered Russia a share in the management of a network of pipelines that carry Russian gas westward across its territory, a move that could head off midwinter price disputes and gas cutoffs that at times leave European homes without heat.
As the two countries' prime ministers met on Thursday to open talks on the offer, Russia indicated it would consider giving Ukraine what it wants in return: a lower price for its own gas imports.
"We agreed that no issue is closed to us," Russian Prime Minister Vladimir Putin told reporters after a meeting with his Ukrainian counterpart, Mykola Azarov.
Mr. Putin called the two countries' gas contract "balanced" and profitable for Russia but agreed it could be reviewed.
"If we aim to reconsider the price, the question is what we will get in return," Mr. Putin said. "It would be fair to consider our relations in the energy sphere as a whole."
Officials of both countries say tough negotiations lie ahead, despite warmer ties ushered in by Ukraine's election last month of President Viktor Yanukovych, who is friendlier toward Moscow than his predecessor. Mr. Yanukovych takes over after years of sparring between the Kremlin and pro-Western leaders of Ukraine's 2004 Orange Revolution.
Those tensions led to three "gas wars" between Russia and Ukraine and disruptions of supplies to Europe, which gets about one-fifth of its gas through Ukraine.
Russian officials welcomed Mr. Yanukovych's election while defending a 10-year gas pricing agreement that he has vowed to undo. The 2009 accord phased out subsidies and now obliges Ukraine to pay European prices, $305 per 1,000 cubic meters, for Russian gas.
It is a burden that Mr. Yanukovych says Ukraine's economy, which shrank 15% last year, cannot bear.
Mr. Yanukovych is seeking a one-third reduction in that price, which would save Ukraine about $3 billion a year. He campaigned on the promise that he could achieve a lower price by giving Russia a stake in its pipeline network.
The plan would bring in Russia's gas monopoly OAO Gazprom and a European company, as yet undesignated, to pay for upgrading the network.
Each company would get a one-third share of a management consortium that would operate the pipelines under a Ukrainian government concession.
Russia and Ukraine explored a similar arrangement in 2002, but the idea died when the Orange Revolution leaders came to power and balked at giving Russia control of the Ukrainian pipelines.
In reviving the idea, Ukraine's new leaders have emphasized that the state would retain ownership of the pipelines. But the issue of Russian influence is sensitive in a country mindful of its long domination by Moscow.
"Handing over management of the gas-transport system is the same as handing over management of Ukraine," said former Prime Minister Yulia Tymoshenko, who lost the election to Mr. Yanukovych.
Such opposition in Ukraine makes Russian officials wary, said Alexander Burgansky, head of oil-and-gas research at Renaissance Capital in Moscow. "They have a huge interest in Ukraine's pipelines, because they want to make sure their customers in Europe get their gas," Mr. Burgansky said. "But they are cautious because Ukraine proved in the past to be an unreliable partner."
Valery Yazev, Russia's deputy parliament speaker and also Gazprom's chief lobbyist, said the company was interested in managing Ukraine's pipelines but was reluctant to agree to price reductions that would cause the company to incur losses.
—Jacob Gronholt-Pedersen in Moscow contributed to this article.
Write to Richard Boudreaux at richard.boudreaux @
Russia Today: “Russia-Ukraine gas contract profitable” – Putin
25 March, 2010, 22:54
Gas agreements with Ukraine are well-balanced and reflect the interests of both Kiev and Moscow, Prime Minister Vladimir Putin said Thursday after talks with his Ukrainian counterpart Nikolay Azarov.
“Moscow finds the gas contract fair and profitable,” Putin said.
“As a result of long negotiations, we found a compromise solution suggesting a changeover to market principles of pricing of both gas and its transits,” he added.
During the talks, the prime ministers also discussed creating a consortium for the modernization of Ukraine’s gas transit system. Putin said Russia is even ready to invest money in it. The idea of gas consortium first arose under former Ukraine president Leonid Kuchma and back then Russia was positive about the issue.
The Ukrainian premier said he also supports the idea:
“We are going to openly discuss all issues. I’ve always been positive about gas consortium,” he said.
Itar-Tass: Russia remains interested in Ukraine's gas transportation system
25.03.2010, 23.36
NOVO-OGARYOVO, near Moscow, March 25 (Itar-Tass) - Russia is prepared to invest in the reconstruction of Ukraine's gas transportation system, Russian Prime Minister Vladimir Putin told reporters here Thursday.
He indicated that although Russia is implementing the Nord Stream and South Stream pipeline projects, which bypass the Ukrainian territory, it is ready to get engaged in the modernization of transit pipelines in Ukraine.
Putin admitted that "other gas projects reduce our interest towards joint work on Ukrainian gas transportation networks but we still have some."
"If it gets the shape of a fruitful dialogue then we're ready to work on this and to invest in reconstruction," he said. "This may be a subject of Russian-Ukrainian talks already in the very immediate future."
He said Russian investment in the pipelines would mean “more supplementary mechanisms for greater throughput of gas to Western customers.”
“We’ve invested big enough political resources and are prepared to invest impressive financial resources,” Putin said. “This isn’t our project only because Germany, the Netherlands and Poland are getting involved in it in addition to Russia.”
“Agreements have been made to supply gas precisely through this system,” he said.
“We’re getting down to the final phase of construction of the pipeline system,” Putin went on saying. “Building of the submerged part of the pipeline will begin next year and the whole system /Nord Stream/ will be completed sometime next year, while the throughput of gas to European customers will begin sometime in 2012,”
Reuters: UPDATE 1-Russia, Ukraine edge closer on divisive gas deal
Fri Mar 26, 2010 2:15am IST
* Putin says "no issue is closed"
* Russia needs reasons to revise gas prices
* Russia may invest in Ukraine pipeline network
* Ukraine will pay for March gas, but opposes contract
* Countries to look again at "sore points" in business (Adds details, quotes after meeting)
By Darya Korsunskaya
MOSCOW, March 25 (Reuters) - Russian Prime Minister Vladimir Putin on Thursday invited compromise with Ukraine on gas trade issues that divide the ex-Soviet neighbours, telling his Ukrainian counterpart on Thursday that "no issue is closed."
Putin told Ukrainian Prime Minister Mykola Azarov, who was visiting Moscow for the first time since his appointment, that he was prepared to consider lower gas prices for Kiev and to invest in a consortium to manage Ukraine's pipeline network.
Putin, however, said there was nothing wrong with the 10-year gas supply deal struck with Azarov's predecessor, Yulia Tymoshenko, at the beginning of last year. Ukraine says prices are too high.
"If you raise the question of revising prices, we need to understand why," Putin told a news conference at which Azarov was also present. "We agreed that no issue is closed to us."
European consumers, reliant on safe passage of Russian gas via Ukraine for a fifth of their supplies, are keen to avoid a repeat of a dispute in January 2009 that cut off deliveries to homes and businesses for nearly three midwinter weeks.
The election of Viktor Yanukovich as Ukrainian president in February raised hopes in Moscow that ties between the ex-Soviet neighbours could be rebuilt after years of frosty relations with Ukraine's former pro-Western leaders.
Yanukovich and Azarov have both said cutting Russian gas prices was a top priority in supporting a Ukrainian economy savaged by the economic crisis and that they are prepared to change legislation that forbids privatisation of its pipelines.
That would allow Russia and the European Union to co-manage and upgrade the outdated system, and possibly allow Kiev to persuade Moscow not to build the expensive South Stream pipeline to bypass its territory.
Putin said the construction of South Stream, as well as the Nord Stream pipeline under the Baltic Sea, would inevitably lead to a decline in Russia's interest in the Ukrainian gas pipeline network.
"But there is still some interest," he said. "If there is constructive dialogue, we are prepared to participate and even to invest money. This is a subject for discussion."
Both prime ministers said Azarov had not asked for lower gas prices in exchange for access to Ukraine's pipeline network.
'SORE POINTS'
Azarov said Ukraine would meet its April 7 deadline to pay in full for deliveries of Russian gas in March, even though his government was opposed to the terms of the current deal.
"We will fulfill what is not, in our view, a very fair agreement," he told the news conference. He also pledged to find a way to compensate Russian gas export monopoly Gazprom (GAZP.MM) for any losses incurred should the price be lowered.
Azarov added that his government would take a fresh look at any "sore points in relation to Russian business." Putin earlier highlighted the need for cooperation not only in the gas sector, but in metallurgy, petrochemicals, telecoms and agriculture.
"It's imperative that we remove the many obstacles and barriers to Russian business in Ukraine," he said. Neither prime minister referred to specific instances.
Kommersant business daily reported earlier on Thursday that Moscow was seeking a revision of the property shake-up that took place during the leadership of former Ukrainian President Viktor Yushchenko, when many Russian oligarchs lost assets in Ukraine.
One of the key rows involves Russian mid-sized oil firm Tatneft (TATN3.MM), which sued Ukraine for around $1 billion over lost crude oil and the ownership rights to a major Ukrainian refinery. [ID:nLM234211] (Writing by Robin Paxton; editing by Jim Marshall)
Jamestown: New Team in Kyiv Sets Stage for Gas Consortium With Russia
March 25, 2010
Vladimir Socor
Ukraine’s new government, built around the Party of Regions, has re-empowered some key Ukrainian protagonists of gas “schemes” with Russia from past years (Naftohaz Ukrainy Management Change Indicates Turn to Russia, EDM, March 24).
Yulia Tymoshenko‘s government succeeded in ridding Ukraine of those schemes at the beginning of 2009. The Tymoshenko government started shifting the focus of Ukraine’s energy policy from Russia to the European Union. However, the advent of President Viktor Yanukovych, with a Donetsk industry-dominated government, has restored some of Gazprom’s pre-2009 (and indeed pre-2004) allies to power and influence in Kyiv.
Fuel and Energy Minister Yuriy Boyko and the gas trader and industrialist Dmytro Firtash are leading figures in this group from the industry side, closely associated with Presidential Administration head Serhiy Liovochkin and the Chairman of the Ukrainian Security Service (SBU) Valery Khoroshkovsky (Dzerkalo Tyzhnia, March 13).
This group seems set to play a key role in shaping Ukrainian relations with Russia in the energy sector under the new authorities. Sharing the Ukrainian gas transit system with Gazprom through an international consortium, in return for discounted prices on Russian gas, is a centerpiece in this policy. Yanukovych and Prime Minister Nikolai Azarov’s government have announced this objective and appointed the new team to execute this policy at the Fuel and Energy Ministry and Naftohaz Ukrainy.
Liovochkin had previously served in the presidential administration under Leonid Kuchma in 2002-2004. At that time, Liovochkin helped arrange the RosUkrEnergo scheme with Boyko and Firtash (Kyiv Post, February 25, 2010). A top-rated bureaucrat, young and fluent in English, Liovochkin is expected to be tasked with preparing Yanukovych’s visits to the West, notably the president’s hoped-for trip in April to Washington.
SBU chairman Khoroshkovsky is regarded as an ally of Boyko, Firtash, and Liovochkin in a tightly-knit group (Ukraiynska Pravda, March 13, 19). Reputed to be among the wealthiest businessmen in Ukraine, Khoroshkovsky is Firtash’s partner in the Independent TV corporation and the top-rated Inter TV channel (“Ukraine’s first button”). Yanukovych elevated Khoroshkovsky to SBU chairman after Yushchenko had appointed him deputy secretary of the National Security and Defense Council, then deputy chairman of the SBU. Khoroshkovsky and Firtash provided a connecting link in the informal alignment of Yushchenko and Yanukovych against the Yulia Tymoshenko government (Ukraiynska Pravda, March 12; Dzerkalo Tyzhnia, March 13).
Leading the opposition after her narrow loss in the presidential election, Tymoshenko has cautioned “all foreign partners” that transferring the Ukrainian gas transit system to a consortium in any form would contravene Ukrainian law, Kyiv’s interests, and European integration goals. Noting that such a consortium would mainly benefit oligarchic interests associated with Yanukovych’s team, Tymoshenko warns that “this government is not eternal,” and a subsequent government would cancel any such consortium (Interfax-Ukraine, March 22).
Ukrainian legislation indeed precludes any form of alienation of the gas transit system. The law goes into great detail to list all possible forms of alienation, including consortium, and bans them. Tymoshenko authored this law in 2007 as opposition leader during the second Yanukovych government. The Party of Regions went along with this legislation in the Verkhovna Rada at that time (EDM, February 7, 2007).
What has changed since that time is, first, the removal of corrupt “supply schemes” by the Tymoshenko government and its shift to commercial pricing in January 2009, by negotiation with Russian Prime Minister Vladimir Putin (who had earlier colluded with RosUkrEnergo). The Tymoshenko government had recognized that gas sector reform is a key to Ukrainian European integration goals. Second, the economic crisis means that Gazprom can no longer enrich favored traders in Russia and Ukraine through special pricing. And third, the cheap Turkmen gas that once enabled those schemes is no longer available.
What has remained constant, however, is the requirement of discounted Russian gas, to sustain inefficient Ukrainian steel and chemical industries for post-crisis recovery. With neither Gazprom nor Turkmenistan available to bear the costs, these are to be downloaded on Ukraine itself, by sharing out its gas transit system with Gazprom.
Yanukovych and the government portray such a consortium as tripartite, Ukraine-Russia-Europe. In reality, there is no designated European party to such a consortium. Suppositions in the past have centered on certain German and Italian companies that are allied with Gazprom. Nor can the Boyko-Firtash team and the Party of Regions be expected to promote Ukrainian and European integration interests ahead of group interests through such a consortium. The only certainty is that Gazprom would dominate the proposed consortium, notwithstanding any European presence in it for window dressing.
Source:
Moscow Times: Ukraine’s Premier Wants ‘Clean Slate’
26 March 2010
By Anatoly Medetsky
Ukrainian Prime Minister Mykola Azarov, seeking to revise a gas contract with Russia, called for the two sides to forget the legacy of Ukraine's previous government during talks Thursday with Prime Minister Vladimir Putin.
“Perhaps, we must forget what happened between our countries over the past five years, turn the page and start our relations from a clean slate,” Azarov said in his opening remarks.
He was referring to the five-year presidency of Viktor Yushchenko, during whose tenure relations between the two countries were tested by several gas wars and other political feuds.
The current government, under President Viktor Yanukovych, who ousted Yushchenko in February elections, wants to repair the rift between the two neighbors as part of an effort to steer the economy out of its nosedive, Azarov said.
“We will do everything to rebuild our cooperation and our joint projects,” he said.
Azarov said he brought new proposals for Russia, possibly referring to a plan that would see operational control over Ukraine's giant gas pipeline network handed over to a consortium including Ukrainian energy firm Naftogaz, Russia's Gazprom and European Union energy firms.
Ukrainian officials, including Yanukovych, have repeatedly floated the idea in past weeks. Even so, Azarov didn't even mention gas during his introductory speech.
“We may … reach some agreements soon; sign them and show that we don't simply exchange proposals but work constructively,” he said.
Putin, receiving his counterpart in the Novo-Ogaryovo residence outside Moscow, was quick to note that this was Azarov's first foreign trip as prime minister.
“It's very pleasant. It's a good sign,” he said, before lamenting that the trade between the countries had decreased over the past few years. It is possible, he said, to restore previous trade levels or even raise them to new heights.
Afterward, the talks were continued behind closed doors and were still ongoing Thursday evening. Ukraine's new government believes that the current gas trade contract is charging an unfairly high price on imports from Russia.
Earlier Thursday, Gazprom urged Ukraine to store up enough gas during the summer to ensure smooth westward transit during the winter, the company said in a statement after its chief Alexei Miller met Azarov. About 80 percent of Gazprom's exports to Europe traverse Ukraine.
Opposition parties in Kiev promised a tough fight over the gas consortium plan, describing it as harmful to national security. A Ukrainian opposition lawmaker said there would be riots if the government handed some of the authority over the country's pipelines to Gazprom.
“If the government attempts to trade away Ukraine's independence, sovereignty and national interests, including strategic national assets, our people will be strong enough … to stand up for everything Ukrainian,” said Ostap Semerak, a senior member of the Yulia Tymoshenko Bloc, named after its chief, the former prime minister. “Radical methods of resistance, including physical defense of gas pipelines, are not ruled out.”
People’s Daily: State Councilor urges enhanced scientific cooperation with Russia
14:40, March 26, 2010
Visiting Chinese State Councilor Liu Yandong urged China and Russia to step up their cooperation on science and technology here on Thursday.
Since the establishment of Sino-Russian relations of strategic cooperation and partnership, the two sides have achieved great progress in scientific and technological cooperation, which has become an important part of bilateral ties, Liu said while touring Kurchatov Institute, a leading Russian scientific research institute.
Bilateral cooperation in science and technology bears great potential and broad prospects, she said, adding that enhanced cooperation in those fields would benefit the advancement of both countries' complementary technological advantages and healthy economic development.
Liu hoped the two countries will make joint efforts to push forward scientific and technological cooperation in a better and faster manner and enrich the Sino-Russian relations of strategic cooperation and partnership.
As one of Russia's leading research institutions, Kurchatov Institute has many strong and solid scientific and research strengths in such fields as nuclear energy, basic physics, nanotechnology, biology and information technology. And over the past few years it has conducted fruitful cooperation with China, Liu noted.
China is ready to further strengthen its cooperation with Russia in areas like the use of nuclear energy, astronautics, environmental science, energy saving and nanotechnology, she said.
She called on both Chinese and Russian scientists to work together for new contributions to the social and economic development of the two countries as well as the technological advancement of all mankind.
Experts with Kurchatov Institute expressed willingness to coordinate more closely with China in high-tech fields and contribute to deepening the Russia-China strategic relations of cooperation and partnership.
Liu, also chairwoman of the Chinese organizing committee for the "Year of Chinese Language," attended its opening ceremony held in the Kremlin on Tuesday evening.
Invited by Deputy Prime Minister Alexander Zhukov, Liu arrived in Moscow on Sunday afternoon.
Source: Xinhua
Itar-Tass: Upcoming Obama-Medvedev phone call likely to complete START deal
26.03.2010, 01.14
WASHINGTON, March 26 (Itar-Tass) -- The United States hopes the new strategic arms reduction treaty with Russia will be wrapped up during an upcoming telephone conversation between Presidents Barack Obama and Dmitry Medvedev.
“We’re hopeful to have a call with President Medvedev in the next few days and hope that we can wrap up a new treaty on the next call,” White House spokesman Robert Gibbs said on Thursday.
He stressed Obama “has been enormously involved personally in moving this process along”.
“The two Presidents last spoke on the 13th of March and we think we’re moving toward good progress on something that will be important for the American people,” Gibbs said according to a transcript posted on the White House website.
Asked whether the call on March 13 was a breakthrough, Gibbs said “it certainly helped move a number of issues along.”
“I think if we get a START deal done, it will demonstrate a strong partnership between the United States and Russia being able to address not just the problems of nuclear security in their two countries, but the deadly spread of nuclear weapons throughout the world,” Gibbs said referring to international efforts to resolve the Iranian nuclear problem.
March 26, 2010
Politico: START announcement expected Friday
The White House is planning to announce a new START treaty with Russia on Friday, two sources say.
Both POTUS and National Security Advisor Jim Jones told visitors to the White House Wednesday that the announcement will be made Friday, with the signing ceremony in early April in Prague, a former senior official said. An administration nonproliferation official told another source the White House will announce the new strategic arms reduction treaty with Russia Friday.
Sen. Dianne Feinstein (D-Calif.), chairman of the Senate Intelligence Committee, congratulated Obama on reaching a deal on START in a statement Thursday.
“I congratulate the President on reaching agreement on the most significant arms-reduction treaty in decades," Feinstein said in a press release. "This is a major step toward realizing President Obama's vision of a nuclear-free world, a vision shared by a predecessor, President Ronald Reagan. And I want to acknowledge the hard work of Rose Gottemoeller, the lead treaty negotiator, and of Undersecretary of State for Arms Control Ellen Tauscher."
Feinstein's office said she was referring to a report Wednesday in the Washington Post.
Posted by Laura Rozen 01:40 AM
Washington Post: U.S., Russia 'close' on new nuclear arms treaty
By Michael D. Shear
Friday, March 26, 2010; A07
A day before the long-standing U.S. nuclear arms treaty with Russia was due to expire in December, White House spokesman Robert Gibbs told reporters that the presidents of the two countries had spoken that morning.
"In the event that we don't finish or conclude negotiations, which seem unlikely to be concluded in the next 24 hours, there will be a joint statement from the two presidents," Gibbs announced.
"The statement is out. The Kremlin has already gone out with a statement," a reporter piped up.
A flustered Gibbs repeated that a statement would be issued if a deal couldn't be reached. But an hour later, the White House sent out a statement from both presidents, expressing their commitment to continue talks.
This week, the Russians appeared to catch the White House off guard again. An unnamed spokesman declared Wednesday that the United States and Russia had reached a deal on a new arms reduction treaty and that "all documents related to the new treaty have been agreed upon."
Gibbs would say only that the two sides are "close" to an agreement.
President Obama and President Dmitry Medvedev are slated to talk Friday to conclude the deal.
For a White House that prides itself on communication discipline and strategic precision, both jump-the-gun moments by the Russians had to be frustrating.
"They like to control the message," said one lobbyist who is in close contact with senior White House officials on the subject of arms control. "That's good for them because it means they control the message. But they can only walk and chew gum so much."
White House officials were preparing for a Friday announcement, said the lobbyist, who spoke on the condition of anonymity because the agreement had not been formally acknowledged.
"These guys have to get their talking points, their background papers; they have to line up their experts," the lobbyist said. "It's a situation where some Russian diplomat spoke a day earlier than he was supposed to."
Coordination on communications strategy appears not to be high on the priority list for the Russians. But both governments have found it difficult to corral others on behalf of a particular rollout plan.
Hints of an agreement had leaked earlier Wednesday, when the Czech foreign ministry confirmed that it had been asked -- and had agreed -- to host a signing ceremony in Prague in early April.
Once the agreement is officially announced and the treaty is signed, the political focus in the United States will shift to the Senate. The likelihood of the treaty's ratification there could depend on the political environment in Washington.
Sen. John McCain (Ariz.), a key Republican voice on foreign policy, said this week there would be no GOP cooperation on anything in Congress because the Obama White House had "poisoned the well" with its health-care effort.
McCain later backed off that statement, telling the Hill newspaper, "If it's in the national interest and there's something that requires us to work together -- a national emergency, something that we think will help the country -- sure."
Whether McCain and his fellow Republican senators, including Jon Kyl (Ariz.) and Richard G. Lugar (Ind.), agree to work with the administration toward ratification could help decide if the treaty becomes a reality.
March 25, 2010
RFE/RL: After Delays, New START Pact Might Bring Fringe Benefits
by Brian Whitmore
It took nearly a year for Russia and the United States to complete a new strategic arms pact as the two sides got bogged down in endless haggling, posturing, and political deadlock.
But now that Moscow and Washington are finally on the verge of signing a new Strategic Arms Reduction Treaty (START), experts are saying the fringe benefits of the pact could be well worth the wait.
"If you go back and look at U.S.-Russian and U.S.-Soviet relations over the past 30-40 years, whenever you have had progress on arms control, it has tended to have had a broader impact on the broader relationship," says Steven Pifer, a former State Department official who specializes in arms control issues and Russian affairs.
"Now sometimes that impact may be short-lived, but it tends to give a boost," he said.
Officials in Washington and Moscow said on March 24 that the two sides have reached an agreement to reduce their deployed strategic warheads by more than one-quarter and their launchers by one-half.
U.S. President Barack Obama and his Russian counterpart Dmitry Medvedev are scheduled to speak by telephone on March 26 to iron out the final details. Officials say preparations are being made for a signing ceremony in Prague in early April, around the first anniversary of a speech Obama gave in the Czech capital calling for drastic reductions in global nuclear arsenals.
The hope in Washington, Pifer says, is that the arms agreement "will lead to greater Russian help on issues of concern" to the United States, such as securing Moscow's assistance in preventing Iran from acquiring nuclear weapons and maintaining the Kremlin's continued cooperation in allowing NATO to transport equipment across its territory to Afghanistan.
Aleksandr Golts, a Moscow-based defense analyst, says with the new treaty, such cooperation is now more likely.
"I didn't think it was a good idea to begin the reset in Russian-American relations with the START treaty because this puts us somewhat in a Cold War-type environment. But the fact that they successfully completed the treaty creates the possibility for cooperation in many other spheres, including Afghanistan and Iran," Golts says.
The Reset’s Payoff
Today, just one day after news of a breakthrough on START became public, Russian Foreign Ministry spokesman Andrei Nesterenko said Moscow was open to lending its support to a new round of UN sanctions on Tehran.
"If there is no visible progress in this direction, then we do not exclude the possibility of putting additional pressure on the Iranians by means of sanctions," Nesterenko said. "However, it is our view that such sanctions must be aimed exclusively at achieving nonproliferation goals rather than suffocating the country financially and economically."
Pifer says in recent months, Russia, which has a veto-wielding seat on the UN Security Council, has become increasingly open to supporting sanctions against Iran, a move which it had staunchly opposed in the past.
"I think the Russians are responding somewhat to the changed U.S.-Russian relationship," Pifer says, adding that the new approach "may be part of the payoff of [the] reset" policy.
"Now, the Russians, in the end, are not going to be willing to go as far as we would like them to go. But they are prepared to go farther than they were six months or a year ago, and that's a good development," Pifer says.
After meeting with Obama on the sidelines of the UN General Assembly in September, Medvedev said sanctions against Iran might be "inevitable." And at a press conference with French President Nicolas Sarkozy in Paris earlier this month, Medvedev said he was open to "smart," targeted sanctions to prevent Iran from acquiring nuclear weapons.
Despite the more cooperative tone, Russia has not been shy about going its own way on Iran at times. During a visit to Moscow last week by Secretary of State Hillary Clinton, Russian Prime Minister Vladimir Putin announced that a Russian-built reactor at Iran's Bushehr nuclear power plant would begin operations this summer.
Greater Credibility
If the signing of a new START treaty happens as planned in early April, it will come shortly before the White House hosts a conference on nuclear security in Washington. It will also fall before a conference to review the Nuclear Nonproliferation Treaty in New York in May.
Analysts say having a signed START treaty in hand for those events will help Obama achieve his goal of strengthening the NPT by giving UN weapons inspectors greater authority.
"This is going to strengthen the administration's hand,” Pifer says. “They are going to go to the NPT review conference in May and say 'we are doing our part. We're reducing nuclear weapons.' They are going to have greater credibility to tighten up the nonproliferation regime."
"It's not going to persuade the North Koreans or the Iranians to back off their programs,” Pifer adds. “But what it should help to do is to create more barriers by giving the International Atomic Energy Agency greater inspection rights, which creates more barriers for nuclear aspirants."
U.S. and Russian negotiators have been working to secure a new START treaty for nearly a year, replacing the one signed by U.S. President George H.W. Bush and Soviet leader Mikhail Gorbachev in 1991.
The two sides missed a December 5 deadline, when the old pact expired. Key sticking points included disagreements over verification procedures and Russian attempts to link U.S. plans for a missile-defense system in Europe to the START treaty.
In the end, Russia relented on the missile-defense linkage and settled for nonbinding language in the treaty's preamble noting the relationship between offensive weapons and missile defense.
Analyst Golts says Moscow's unsuccessful attempts to bring missile defense into the START talks amounted to little more that political posturing.
"The negotiations had a political character. Since Russia sees missile defense as something that will increase U.S. influence in Europe, it tried to argue that missile defense threatened Russia's nuclear potential. This is not true and every specialist knows this," Golts says.
According to media reports citing unidentified U.S. officials, the treaty will cut deployed strategic warheads to 1,550 from the current 2,200 within seven years. It would also cut launchers to 800 from the current 1,600.
Pifer says Moscow is pleased with the agreement because its ageing nuclear arsenal is being reduced by attrition as old weapons are not being replaced at the rate they are being decommissioned.
"The Russian strategic numbers are going down,” Pifer says. “The treaty is important to Moscow, including to the military, because it's the vehicle by which they insure that U.S. forces come down in parallel. We're in a much better position to keep a larger force if we wanted to."
Pifer continued: "This is the treaty that assures that Russia is a nuclear superpower on par with the United States at a time when strategic nuclear weapons are Russia's main, if not only, claim to superpower status."
Foreign Policy: Giving Putin His Due
Sidelining the Russian prime minister will do little to help President Dmitry Medvedev -- or the White House.
BY PAUL SAUNDERS | MARCH 25, 2010
Jamie Fly and Gary Schmitt are right to ask questions about the role that the relationship between President Barack Obama and Russian President Dmitry Medvedev plays in U.S. policy toward Russia and U.S.-Russian relations. But the administration's greatest failing thus far in working with Moscow is not the relationship between Obama and Medvedev; it's between Obama and Vladimir Putin.
The prime minister "is still calling the shots" in Russia, as Fly and Schmitt write, and it is difficult to envision how the United States can hope to improve relations with Russia in a sustainable way without Putin on board. Putin's public listing of Moscow's grievances as Secretary of State Hillary Clinton looked on last week clearly suggested that he isn't.
Unfortunately, the Obama administration appears to have made scant effort to engage the prime minister. Obama's statement that Putin had "one foot in the old ways of doing business and one foot in the new" while en route to Moscow for his first summit there in July 2009 didn't help, especially when coupled with his more positive statements about Medvedev. The White House had already passed up an opportunity for dinner with Putin during the trip so that the president could eat with his family in a restaurant. So at their breakfast meeting the following morning, Putin complained for 45 minutes about American policy. The commission announced at the summit to manage U.S.-Russian relations had no role for Russia's prime minister, and no other mechanism seems to exist.
This isn't just a White House problem. Secretary Clinton (who said that Putin "doesn't have a soul" when campaigning for president, prompting Putin to reply in kind that "at a minimum, a state official must at least have a head") reportedly didn't try to coordinate her October 2009 trip to Russia with Putin's office and as a result didn't see him -- he went to China to sign a major energy deal instead. Just a few weeks later, when asked by Tom Brokaw whether she would prefer to see former Soviet President Mikhail Gorbachev in power in Russia rather than Putin, Clinton said, "I kind of like President Medvedev myself," and then praised Medvedev's statements on human rights and democracy.
The administration may argue, correctly, that Medvedev is the elected president of Russia, that Putin had something to do with bringing Medvedev into that role, and that it's most appropriate for the two presidents to work together. The administration may also argue that the Russian Constitution clearly gives the president control over foreign-policy -- though hopefully the lawyers in the U.S. government (starting with Obama) would recognize the difference between de jure and de facto authority in Moscow today. And, of course, the administration may argue that Medvedev's statements are more attractive than Putin's and that he represents a new generation of leaders with new aspirations.
But none of this explains what seem to be almost gratuitous slaps at Putin. What logic there is in trying to strengthen Medvedev's role is automatically and immediately undercut by coupling efforts to work with and praise the president with public criticism of and diminished attention to his powerful prime minister. This is the true flaw in the Obama administration's policy toward Russia.
The danger in this policy is twofold. First, emphasizing Medvedev while appearing to undermine Putin is unlikely to improve U.S.-Russian relations or to get America what it needs and wants from Moscow. Medvedev can sign a new arms-control treaty, but it is the Russian State Duma that must ratify it. The Duma is weak and subject to considerable influence from the executive branch; however, it is Putin, not Medvedev, who wields that influence through his leadership of the United Russia party that dominates the legislature. Duma Speaker Boris Gryzlov's statement that the body might not ratify a new treaty if it does not link arms control to missile defense could be viewed as a warning not only to the United States but also to Medvedev. Implementing any Iran sanctions that Medvedev might accept would likewise fall to Putin.
Second, criticizing Putin -- notwithstanding his faults -- won't help Medvedev and actually may hurt him. Even if one accepts that Medvedev would be preferable to Putin as Russia's top leader -- uncertain in view of Fly and Schmitt's fair assessment that the president's talk is so far not much more than talk -- Medvedev's future still depends heavily on his prime minister. If Putin announced tomorrow that he has firmly decided to run for president in 2012, Medvedev would stand little chance in that election and would have even less influence between now and then. That Putin has not made this simple statement creates political space for Medvedev and others -- but giving the impression that Washington is trying to ease Putin out could quickly obliterate it if he changes his mind.
It is very tempting in the capital of the sole superpower to think that we Americans can stage-manage domestic politics in other countries to suit their preferences. Unfortunately, whether in Russia, Iran, or elsewhere, not everyone reacts to U.S. statements and actions the way Americans think they should. There may be a case for trying to bolster Medvedev, but doing it too publicly and at Putin's obvious expense could be quite costly to U.S. interests, especially if Putin returned to power resenting apparent U.S. attempts to facilitate his retirement. This is not endorsing Putin or his leadership; on the contrary, it is recognizing the realities of Russian politics. Washington-Moscow relations are complicated enough; entangling them in Russia's complex and unpredictable political system is a mistake.
Moscow News: International partnership on ‘e-government’
25/03/2010
Ed Bentley
Russia's race for hi-tech development has taken another American-sponsored step as politicians and businessmen resurrected the hot line for a conference on innovation.
The discussion focused on Russia's "e-government" as the Kremlin seeks to attract leading brands - and, more importantly, their technology - to the country.
"The Minister of Telecommunications (Igor Shchyogolev) said we would like to share your (US) experience, the ways you have implemented e-government systems in your country and technology which could help us," said Natalya Kaspersky, chairperson of Kaspersky Lab.
American firms will be looking for a quid pro quo from the discussions, seeing opportunities to cash in on both heavy government spending and Russia's developing market.
"There are plenty [of opportunities] and in this case it was ‘e-government' ... Cisco have had a lot of experience in it, and it is a chance to enhance our technological partnership with the Russian government," said Mikhail Pakhomov, government relations manager of Cisco in Russia and the host of the conference.
E-government is expected to be based around cloud computing - a buzzword in technology circles, that has yet to catch on elsewhere - aimed at giving both the public and bureaucrats better access to the state.
"[The] development of ‘an electronic government' will raise the transparency of activity of state officials and will lead to a decrease in corruption," said Yekaterina Romanovskaya, spokeswoman for Icon Private Equity.
It will start on a small scale level, creating a permanent forum for key players in Russia's modernisation drive."In the coming months we will have a web tool where every participant can exchange documents and opinions," said Pakhomov.
In recent years, discussions on information technology between the two countries waned as the political relationship deteriorated towards the end of the Bush era.
Participants agreed that these talks were an extension of the two countries tentative push at the political "reset button", focusing on opening the dialogue on areas of mutual interest that will lead to stronger relations.
"The principle was to establish a connection between the two countries and understand how we could work together to find joint projects," said Kaspersky, who participated in the discussions.
While government was the focus of Tuesday's discussions, firms will also be looking to make a buck on Russia's innovation drive, which is being pushed by both Prime Minister Putin and President Medvedev.
Hot on the heels of Tuesday's telebridge, the Global Technology Forum, which started on Wednesday at Stanford University in the US, is giving both businesses and government a chance to extend discussions.
Russia has sent a high profile delegation as it seeks to up its modernisation credentials, including VTB Capital CEO Yury Solovyov and Elvira Nabiullina, the minister for economic development.
Domestic firms will be expected to follow the government's lead, adopting technology and expertise from the US and the newly anointed head of Russia's answer to Silicon Valley has already stepped up.
Viktor Vekselberg announced Tuesday that the project could appoint a foreign manager while smaller firms are also looking for American capital and experience.
"It is very important for Russian companies to adopt the successful experience of American colleagues, as many innovations they try to introduce have already been successful in the West," said Romanovskaya.
Stopping sky-high spending
Part of the discussions focused on cloud computing, which is thought by many to be the future of providing services over the Internet.
So far penetration has reached 10 per cent of Internet users, allowing them to access corporate databases, software and technology through the web.
"Cloud computing, alongside an increase of broadband penetration in Russia, could have significant economic benefits, especially in the small and medium business sector," said Romanovskaya.
As far back as the 1990s there were hopes that cloud computing would dominate the Internet, but it has failed to get off the ground for a number of reasons, including fears over privacy.
"The topic is more a fashion than a real trend," said Kaspersky. "[Firstly], clients and service providers often have directly opposite targets [and] the second reason is security."
Itar-Tass: Russia needs new modern military archive – Medvedev
26.03.2010, 00.08
VOLGOGRAD, March 26 (Itar-Tass) -- Russia’s President Dmitry Medvedev said on Thursday that it is necessary to have a new modern military archive.
“I believe it is very important to organise a professional military archive,” he said.
“It should keep records not only of the Great Patriotic War, which is a must, but materials of other military events, too. The Defence Ministry has much information to place in the archive,” he said at a meeting with the WW II veterans in Volgograd /former Stalingrad/.
It is important that this work should be done “professionally, so that no cheaters get involved,” he said. “It is important that everyone interested in the history of the Great Patriotic War could use archived materials.”
This archive should be organised on a new basis, Medvedev said.
“It is not possible nowadays to just store newspapers, orders and whatever other documents - the reality has changed,” he said. “Even you, our dear veterans, should have access to archivalmmmmmmm information without even leaving your houses.”
The president said that the access to the archival information should be provided at a regular request, of course if requested documents are public.
The participants in the meeting discussed how to preserve monuments to the Great Patriotic War. The president told the defence ministry and the local authorities to make a list of monuments in the region to be repaired without delay.
The Motherland monument on the Mamayev Kurgan was a separate topic in the discussion. /Mamayev Kurgan, a hill overlooking the city of Volgograd once known as Stalingrad, is the site of the Motherland Statue, a commemoration of one of the worst battles in human history, the Battle of Stalingrad./ The president said that two years earlier when he had visited Volgograd, he saw the monument in a very poor condition, and then money for its restoration was allocated.
“It is extremely important that the memorial complex gets regular financing to keep it in good condition,” Medvedev said, adding that all necessary restoration works would be ongoing.
The veterans who took part in the meeting asked the president to have true and correct models of the tanks to be used in the Stalingrad Battle Panorama museum. Presently the tanks in the exposition do not correspond to the models that took part in the real battle.
The president said that there is a special museum of tanks in Kubinka /not far from Moscow/ and asked the defence ministry to decide whether it would be possible to send over some exhibits from that museum to Volgograd.
“Please see if there is a T-34 or a KV in the museum,” he said. “If at least one tank may be available, I believe, this would be a good gesture.”
RIA: Russia may unveil new 'super-tank' in summer 2010
00:3626/03/2010
Russia's new main battle tank (MBT), the T-95, could be exhibited for the first time at an arms show in the Urals Region this summer, the developer and future manufacturer of the tank has said.
The development of the new tank dubbed "Item 195" began at the Uralvagonzavod design bureau in the early 1990s. Russia will become the first country in the world to have the 5th-generartion MBT if the military commissions the vehicle.
"The work on the project has been conducted for many years. If the government gives us a 'green light' we will exhibit the tank at the [Russian Expo Arms 2010] arms show in Nizhny Tagil this summer," general director of the Uralvagonzavod plant Oleg Siyenko told RIA Novosti in an exclusive interview.
"I cannot disclose the characteristics of the tank, but I can assure you that we have met all the requirements put forward by the military," he said.
According to unofficial sources, the T-95 will feature better firepower, maneuverability, electronics and armor protection than Russia's latest T-90 MBT or comparable foreign models.
It will weigh about 55 tons and its speed will increase from 30-50 kph to 50-65 kph (19-31 mph to 31-40 mph).
The new tank may be equipped with a 152-mm smoothbore gun capable of firing guided missiles with a range of 6,000-7,000 meters.
In contrast to existing designs, the gun will be located in a remotely-controlled turret to improve 3-men crew survivability.
Meanwhile, the T-90 MBT, developed in the 1990s on the basis of the T-72B tank, will be the backbone of the armored units until 2025, according to the Russian military.
Russia currently produces up to 100 T-90 MBTs annually and plans to have at least 1,500 vehicles in service with the Ground Forces.
MOSCOW, March 26 (RIA Novosti)
BarentsObserver: Less Russian Generals
2010-03-26
The number of generals in the Russian forces has been reduced from over 1200 to nearly 700, the Joint Staff reports.
According to General of the Army Nikolay Makarov, Russian officers now have to do service in the troop forces to make it to the rank of General, Interfax reports.
Read also: Every fifth officer will be dismissed
- We have reduced the number of generals in the Defense Ministry’s central office, in the main commissariats and in headquarters, including the Joint Staff, General Makraov said in an interview.
Commanders of brigades with over 3000 soldiers still have the rank of General.
RIA: Russia to ease immigration rules to draw in specialists, investment
11:5126/03/2010
Russia is poised to ease immigration restrictions for highly-qualified foreign specialists in a bid to encourage the free flow of trade and investment in the country, a Russian business daily said on Friday.
Russia's Economic Development Ministry has recently drafted a federal law easing the county's immigration regulations after repeated calls from President Dmitry Medvedev.
A government official told Vedomosti that Russia's main goal at the moment is to try to attract the "best brains" to a country which, as part of the Soviet Union, dominated science for decades, saying that "modernization without an intelligent workforce is impossible."
"We have already tried out this mechanism with France. Russia has signed an agreement with it on preferential treatment for highly-qualified specialists, directors, members of their families and accompanying colleagues," Oleg Artamonov, head of Russia's Federal Migration Service, said.
He added that optimizing the country's visa and migration regime, which many see as a hangover from the Soviet era, is the key to drawing in top scientists and investors.
Evgeny Reizman, a partner of the international law firm Baker & McKenzie, agreed with Artamonov, saying that "investment from abroad is to some degree hindered by immigration barriers."
The Economic Development Ministry's proposals would annul immigration and work permit quotas for foreign specialists, while also reducing the lengthy bureaucratic procedures which have put many a bright brain off moving to Russia.
"When people see how the migration authorities are treating them, their desire to work in Russia rapidly wanes," Vedomosti quoted Sergei Guriyev, rector of a Moscow economy school, as saying.
While it often takes up to two years to supply and process all the necessary documentation, the officials vow to reduce the 'bureaucratic drag' to just less than a month.
The ministry has also proposed granting foreign specialists extended work permits that would cover all of Russia's regions in a bid to replace present regulations that force non-Russian specialists to apply for only one-year work permits in specific regions.
The authorities expect to bring the new regulations in as soon as January 1, 2011.
MOSCOW, March 26 (RIA Novosti)
Gazeta.kz: Customs Union Commission of Kazakhstan, Russia, Belarus coordinated mechanism of transfer of import duties
13:45 26.03.2010
text: "Kazakhstan Today"
Almaty. March 26. Kazakhstan Today - The Customs Union Commission of Kazakhstan, Russia, Belarus has coordinated the mechanism of transfer of import duties to budgets of three countries, the agency reports citing the newspaper Kommersant.
"The committee members made the decision on the mechanism of transfer and distribution of import customs duties (other duties, taxes and tax collections having equivalent action) was accepted. According to the decision, the sum of import customs duties for each party have been distributed as follows: Belarus - 4.70 %, Kazakhstan - 7.33 %, the Russian Federation - 87.97 %."
According to the newspaper, these standards have been calculated, including, proceeding from volume of import from the third countries. Customs payments will be transferred in each country to the special accounts in national currency. The system will start to work in a test mode from April 1.
[pic][pic]
Gazeta.kz: Shuvalov does not exclude further trade disputes between Belarus, Russia and Kazakhstan
11:06 26.03.2010
text: "Kazakhstan Today"
Almaty. March 26. Kazakhstan Today - First Vice Premier of Russia, Igor Shuvalov, during the international conference 'Technical Regulation-2012: tools for formation of the uniform economic space' said that he does not exclude further trade disputes between Belarus, Russia and Kazakhstan, despite creation by the three states of the Customs Union and the uniform economic space, the agency reports citing the Belarus news agency BELTA.
"Barriers between three states will be eliminated, but at each state, in the limits of the Customs Union and the uniform customs space, will have a possibility to undertake protective measures, in particular, concerning subsidizing of some branches of the economy," I. Shuvalov said.
"There will be disputes, but they should be solved in a civilized way."
Vice Premier of Belarus, Andrey Kobyakov, said that there will be created a supra national system in the Customs Union and the uniform economic space, which will allow solving disputes in a civilized way.
Gazeta.kz: Deputies of Kazakhstan and Russia study question of simplification of rules of stay of citizens in territory of two countries
12:23 26.03.2010
text: "Kazakhstan Today"
Astana. March 26. Kazakhstan Today - The deputies of Kazakhstan and Russia are studying the question of simplification of rules of stay of the citizens in the territory of two countries. The session participants of the Eighth Inter Parliamentary Commission between Majilis of Parliament of Kazakhstan and the State Duma of Federal Assembly of Russia stated, the agency reports.
According to the Majilis deputy, Kayrat Sadvakasov, at the joint commission, last year, "two Presidents of Kazakhstan and the Russian Federation assigned the corresponding bodies to work on the question of increase of duration of stay of citizens of Kazakhstan in territory of the Russian Federation and citizens of Russia in the territory of Kazakhstan without registration for 30 days."
He reminded that now the citizens of two countries are allowed to stay in the territory of another country without registration for only three days.
Today.az: Russian Foreign Ministry: Russian language to spread in Azerbaijan
26 March 2010 [10:06]
The Russian language is becoming more popular in Azerbaijani schools, but unlike before now studying the language will be optional, Foreign Ministry spokesman Andrei Nesterenko said at a briefing in Moscow.
"The Azerbaijani Education Ministry provides support and equipment for Russian cabinets. If the project is successful, then the number of the pilot schools may be increased in the future," he added.
He said the Russian Embassy and representation of the Russian cooperation center in Azerbaijan also support such projects.
"Courses where teachers will refresh their Russian language skills will be organized in Baku and other cities. These projects will be conducted in close cooperation with the Azerbaijani Education Ministry," he said.
: FYROM to initiate duty free trade with Russia
FYR Macedonia will initiate liberalization of commodities exchange with Russia through signing of a free trade agreement, announced Finance Minister Zoran Stavreski at Wednesday's business meeting of the Macedonia-Russia Chamber of Commerce titled "Russian Federation - Permanent Challenge for Macedonian Economy", held on occasion of its 5th anniversary.
FinMin Stavreski stressed duty-free commerce was in the interest of both countries, hoping that Russia would support the initiative.
"The Chamber aims at establishing contacts with Russian companies for intensive penetration at the country's market. It represents an enormous potential for FYR Macedonian export, primarily in the sectors of agriculture and construction. Therefore, it is significant to initiate the exemption of FYR Macedonian commodities from customs duties, an issue we will put forward at the next session of the Mixed Macedonian-Russian Commission", stressed Stavreski. According to him, there are expectations for intensification of cooperation in the opposite direction, mainly in energy, mining and other sectors.
He announced conditions for return of Russia's clearing debt to FYR Macedonia, amounting to US$ 60 million, would mature by May.
"The Macedonian side is ready for signing of the agreement on regulating the clearing debt. Due to changes of the Russian chairperson, the meeting may be delayed for 2-3 weeks, but we expect the issue to be closed by the end of May", added Stavreski.
Russian ambassador to FYR Macedonia Vladimir Solotsinsky told FYR Macedonian companies to look for partners beyond Moscow and the surrounding region. According to him, the most important challenges in bilateral commercial relations remained the enormous commercial imbalance, which created deficit in FYR Macedonia's economy, as well as diversification of Russian export to FYR Macedonia.
Source: Vlada.mk,
RIA: Three police injured in Chechnya blast
08:5226/03/2010
Three police officers were injured when an explosive device detonated in Chechnya, a police source told RIA Novosti on Friday.
The explosion occurred on Thursday afternoon in the Russian republic's Vedensky district.
The investigation into the incident is ongoing. The source gave no details on the seriousness of the officers' injuries.
Russia's mainly Muslim North Caucasus republics, especially Chechnya, Dagestan and Ingushetia, have seen an upsurge of militant violence lately, with frequent attacks on police and officials.
The Kremlin has pledged to wage "a ruthless fight" against militant groups but has also acknowledged the need to tackle unemployment, organized crime, clan rivalry and corruption as causes of the ongoing violence in the region.
MOSCOW, March 26 (RIA Novosti)
Voice of Russia: Moscow police neutralize major rob gang
|Mar 26, 2010 10:22 Moscow Time |
Moscow police have neutralized a criminal gang that targeted cash messengers and people leaving banks or currency exchange centers with large amounts of money. The group has committed over 15 armed robberies over the past year and a half. After all of the criminals were identified, which took several months, police proceeded to arrest them in a sting operation on Thursday. All of the bandits arrested are Georgians who were illegally staying in Russia.
Itar-Tass: Russia’s Far East launches tsunami center
26.03.2010, 03.03
VLADIVOSTOK, March 26 (Itar-Tass) -- The Russian Far East opened a tsunami center in Vladivostok on Friday that will decrease the warning time from half an hour to one minute.
The center will monitor the sea across the whole Pacific coast of Russia through dozens of stations located in Primorye region, on Sakhalin and Kamchatka Peninsula.
The press service of the regional weather service told Tass the tsunami center is operating in a test regime so far to streamline computer software.
In the 20th century 5-meter high tsunami hit Russia’s Far East four times causing major damage. However scientists warn 10-meter high waves may threaten the eastern coast of Primorye region because of major earthquakes close to the western coast of Japan.
BBC: Russian appeal of 'weather control'
By Katia Moskvitch
BBC
Standing by an open hatch on a Russian military plane high up in the sky is tricky to do.
Even more so when your job is to "seed" clouds, shovelling chemicals outside to cause rain.
These seeded clouds never make it to Moscow, where millions are enjoying a nice sunny holiday.
Or where guests might be dancing at a wedding under the clear blue sky.
Some might think that controlling the weather sounds a bit like science fiction.
But military pilot Alexander Akimenkov doesn't think so.
He seeded clouds over Moscow on important state holidays for many years. He says that the Russians use two different methods to try to chase the rain away.
"Either there's a special machine that spits out silver iodide, dry ice or cement into the clouds, or a hatch opens and a guy with a shovel seeds the clouds manually," he explains.
"As soon as the chemicals touch the cloud, a hole appears. It becomes bigger and bigger, and it either rains right there and then, or, if the clouds aren't very dense, they disperse without any precipitation."
The Russian government has used methods of rain prevention since the Soviet times, seeding clouds on major celebrations three times a year - Victory Day, City Day and, more recently, Russia Day.
There are also private companies that for some $6,000 per hour say they can guarantee sunshine on your wedding day - or for any other private party.
HOW CLOUD SEEDING WORKS
• 1. Silver iodide is fired into cloud using flares on planes or from the ground
• 2. Water droplets then attach to these particles
• 3. They fall as snow if surface temperatures are below or near freezing, or as raindrops at warmer temperatures
• 4. Heat released as the droplets freeze boosts updrafts, which pull more moist air into the cloud Despite the use of the cloud seeding technique, many scientists remain sceptical of its effectiveness
Many ecologists agree that these techniques, also used in many other countries for irrigation purposes, do not pose much threat to the environment or people's health, as the period of active influence on the clouds is very short.
But when Moscow's mayor Yuri Luzhkov suggested to to make it snow in winter just outside the capital and therefore save more than $10m on snow-removal costs, many felt the city authorities were going a bit too far.
Even if the idea might appeal to Moscow drivers, tired of constant traffic jams - especially bad in snowy conditions - it has stirred concerns among local ecologists.
"Millions of tonnes of snow diverted from Moscow will create chaos in the areas where it is forced to fall and might even lead to the collapse of bridges and roofs," said Alexey Yablokov, one of Russia's leading environmentalists and former ecological advisor to President Boris Yeltsin.
Besides, a lack of snow in Moscow will cause multiple problems in the capital itself, he said.
"Why do we need snow in Moscow? Snow on the ground helps the roots of trees to survive during severe frosts. If there's no snow, lots of vegetation - trees, bushes - will die.
"Snow also cleans the atmosphere very effectively. If there's nothing to clean the Moscow atmosphere, many people will die - there will be tens or even hundreds of additional deaths," explains Mr Yablokov.
'Groundless' concerns
But Valery Stasenko from Roshydromet - the Federal Service of Hydrometeorology and Environmental Monitoring - calls these concerns groundless.
"It is stupid to say that there won't be any snow in Moscow. If there is some five centimetres of it, it's absolutely fine, but there is a limit when all the transport just stops," he said, adding that the aim of winter cloud seeding would not be to get rid of snow, but to control its level, not letting it go over this maximum limit.
The planes will be out only occasionally, said Stasenko, to prevent major snowfalls that happen on average three or four times a month. This way it will cost a lot less than using snowploughs that are out most days of the winter.
"Besides, the idea didn't come to the Moscow mayor from nowhere, it is based on facts. In the early 1980s, back in the Soviet times, there was a special service that dealt with decreasing snow precipitation over Moscow. It stopped working during perestroika when money became scarce," explained Stasenko.
"Some eight to 10 airplanes equipped with an active influence on the atmosphere technology had to find clouds with the most precipitation and spray them with crystallising chemicals.
"Not all water vapour in the atmosphere turns to precipitation, and for the snow to fall, water vapour should concentrate on ice crystals first. This way we were making snow fall before it reached Moscow and these works decreased the amount of snow in the capital by 20, 30 and sometimes 40%."
Ecology threat
And even though this winter is over and the snow in Moscow will soon disappear naturally, scientists at the Central Aerological Observatory of Roshydromet have been working for months trying to come up with new, improved techniques of winter cloud seeding.
They refused to explain the essence of their work. And this secrecy raises important environmental concerns, says a climate specialist from the Russian Academy of Sciences department of Earth Sciences, Nina Zaitseva, who believes that even with raincloud seeding, much amounts to luck and coincidence.
She is sceptical about the current research and the state's past or present ability to effectively seed winter clouds.
"I don't think there will be good results - dry substances are not able to have any noticeable reaction with ice particles. But if they decide to seed winter clouds with a liquid, they should first and foremost think about the ecological consequences," said Dr Zaitseva.
Regardless of the Moscow authorities' final decision on snow cloud seeding, Russia remains one of the few nations where weather control is more than using anti-hail cannons and battling droughts.
So if you want to visit Moscow and don't fancy rain, go there on one of the three precipitation-free holidays.
And if you want to ensure your wedding day is dry - it might just be possible to make it happen.
[pic]
RIA: Russia detains 2 foreign trawlers over illegal fishing
06:3826/03/2010
The Russian Coast Guard said on Friday it had detained two Cambodian-flagged fishing vessels near the island of Sakhalin in Russia's Far East on suspicion of poaching fish and crab.
The first vessel, the Jae Su, was spotted by a patrol boat in the Russian exclusive economic zone off the southern coast of the island on Wednesday night. The ship attempted to escape and stopped the engines only after warning shots had been fired.
"The search of the vessel revealed about a metric ton of live crab, four tons of frozen pollack and a ton of frozen herring on board. The crew failed to provide documents verifying the legality of the catch," said Irina Shebeko, a spokeswoman for the regional Coast Guard.
The second vessel, the Mariner, was detained by the same patrol boat three hours later. The ship also attempted to flee but surrendered after a short chase without warning shots.
The crewmembers of both trawlers are mainly Russians.
The ships have been taken to a nearby port of Korsakov for further investigation, Shebeko said.
Russia banned exports of live crab in 2007, but large quantities are still smuggled out of the country, primarily to Japan and South Korea.
The Russian Coast Guard service is actively involved in fighting illegal fishing in Russia's territorial waters. Last year at least 20 boats, including many foreign vessels, were detained by the service.
YUZHNO-SAKHALINSK, March 26 (RIA Novosti)
RFE/RL: Opposition Groups In St. Petersburg Agree To Cooperate
March 25, 2010
ST. PETERSBURG -- Several Russian opposition groups in St. Petersburg signed a cooperation agreement today, RFE/RL's Russian Service reports.
The St. Petersburg branches of the opposition Yabloko party, the United Civil Front, the Russian People's Democratic Union, and the Solidarity movement signed the agreement.
Yabloko political bureau member Boris Vishnevsky told RFE/RL that the main idea of the agreement is to coordinate all activities that are working toward the "return of democracy" to St. Petersburg.
According to the pact, the opposition groups will conduct joint activities such as holding protests, issuing statements, and possibly participating jointly in elections.
Mikhail Reznik, the Yabloko leader in St. Petersburg, told RFE/RL that the agreement is open to other political groups to join.
Moscow Times: High-Speed Sapsan Has Locals Up in Arms
26 March 2010
By Alex Anishyuk
Traveling by train between Moscow and St. Petersburg can be perilous.
The Nevsky Express, which travels along that route, was the target of two terrorist bombings in 2007 and 2009. But after the launch of the new high-speed Sapsan train, travelers are finding that they have become targets of a different group: disgruntled locals.
The Sapsan train, which had its maiden trip in December, has provoked the outrage of those who live near the railway, many of whom are venting their anger by pelting the passing train with rocks and ice. Locals say the new train causes huge inconveniences for them, and they point to two fatal accidents in which the train has already been involved.
A man was killed in December when he was struck while sitting on the edge of a train platform in the Tver region, and in February, a woman died when she was hit while trying to cross the train tracks at the Obukhovo station in St. Petersburg.
The police are currently investigating nine cases of vandalism against the train, which zips along the track at a snappy 250 kilometers per hour, a source with the police in the Northwest Federal District told RIA-Novosti earlier this month.
One of the vandals caught throwing ice at Sapsan was detained in January and identified as Mikhail Samartsev, 35, from the village of Leontyevo in the Tver region. Samartsev, who has a criminal record, said his motive for attacking the high-speed train was anger, precipitated by an incident in which he was knocked off his feet by a blast of air as the train passed.
Locals are also angry because Russian Railways, the country's state-owned railway monopoly and the operator of Sapsan, did not consult them before canceling a number of commuter and long-distance trains, causing massive inconveniences for many in the region.
Russian Railways, known as RZD, played down the complaints, saying the company had done its best to accommodate all parties.
"There have been minor cancellations, and we did our utmost to keep the trains of different price segments operational," a spokeswoman said, asking not to be named in line with company policy.
"Besides, Sapsan isn't the only cause of schedule changes. Trains are canceled because of railway repairs and other reasons. Sapsan is only eliciting such an interest among the public because it is a new, high-profile project."
Four round trips for commuter trains on short routes between Moscow and St. Petersburg have ceased running as of Dec. 18, according to data provided by RZD, while 81 or 82 round trips, depending on the day of the week, are still active daily.
Three long-distance trains were canceled, including the inexpensive and popular Yunost train, long used by students because of the 350 ruble ($11.80) ticket price. An economy-class ticket on the Sapsan is currently available for 2,408 to 3,596 rubles, depending on the time of the departure.
"The train schedule is changing every day, and many people find it difficult to travel to Moscow, where they work, and back," said Anton Stamplevsky, head of the local Yabloko party.
"Until recently, people had to walk a long distance to get to the Zalineiny district [of the city of Tver] just in order to cross the railway because of the new barriers installed to avoid accidents. The situation has improved, however — people are now allowed to cross through the terminal without paying for the ticket."
"The number of commuter trains was reduced and the schedule was altered in a very inconvenient way," said Lyudmila Vorobyova, first secretary of the Communist Party's Tver regional committee.
Things could get worse with the start of the dacha season in May, she said.
But for many, it's not just the inconvenience caused by the new train, but a matter of principle. Local residents are furious that the government chose to buy an imported product, rather than support local industry, Stamplevsky said.
In 2006, RZD acquired eight Velaro high-speed trains for 276 million euros ($368 million) from Germany's Siemens and signed a 30-year, 354-million-euro contract to maintain them. In addition, the company is considering building a new Moscow-St. Petersburg route, for which it may acquire 20 high-speed trains from France's AGV, RZD's senior vice president Valentin Gapanovich said last month.
"We have several train maintenance enterprises in the region, including the major ones located in Tver and Torzhok, which have been out of work, and workers there don't get paid," Stamplevsky said, adding that vandalism was often the only option for many who want to draw attention to regional problems.
"I think these 'Robin Hoods' who hurl stuff at trains are people who are stuck in these small villages across the region, being unemployed for years without any hope of earning a decent living," he said.
Local residents commute to Moscow and back in tightly packed commuter trains, and they see the comparatively luxurious Sapsan as the cause of their problems, Vorobyova said.
"Most people in the Tver region cannot afford to travel on the Sapsan, and therefore it is perceived as a bourgeois means of transport, which causes the hate," she said.
Travelers aren't at any particular risk from the projectile rocks and ice, but if residents decide to start firing guns at the train, such an attack could be deadly, Dmitry Pegov, RZD's head of high-speed transport, told Izvestia earlier this month.
The vandalism comes after two major terrorist bombings of the Nevsky Express train, which travels along the Moscow-St. Petersburg route: one in August 2007, in which 30 people were injured, and another in November 2009, in which 28 people were killed and 90 were injured.
In December, Prime Minister Vladimir Putin allocated 1 billion rubles in subsidies to improve security on the route. The Transportation Ministry suggested setting up security posts every 20 kilometers of the route, in addition to the existing CCTV monitoring system.
The RZD spokeswoman would not comment on the new security measures, saying the plans were confidential.
The Moscow Times: Customs to Work 24 Hours
26 March 2010
The Moscow Times
The Federal Customs Service said Thursday that it would begin processing international mail around the clock next week to clear out a growing backlog of deliveries.
The service's central customs administration reached an agreement with Russian Post and with the Press and Communications Ministry to put a Moscow customs post that handles mail on a 24-hour work schedule, the administration said in a statement Thursday.
Complaints have been mounting since the beginning of the year that packages sent from abroad often take as long as several months to be delivered, forcing some foreign vendors to curtail their deliveries to Russia. Russian Post and the customs service have each held the other responsible for the delays.
Popular online auction site eBay advised its users to avoid mailing orders through Russian Post earlier this month. Separately, on Thursday, the company launched a Russian-language interface of its "international trade center" at ebayrussia.ru. The site offers prices denominated in rubles and customer support in Russian.
Moscow Times: Cost of Bribes More Than Doubles in ’09
26 March 2010
By Alex Anishyuk
The average cost of a bribe more than doubled last year, the Interior Ministry's economic safety department said Thursday, although experts say the figures may be on the low side.
The cost of an average bribe last year reached more than 23,000 rubles ($780), up from 9,000 rubles in 2008, the department said in a statement posted on its web site.
The ministry registered 7,856 cases of bribery involving state agencies in 2009, an increase of 10.2 percent from the year before. Of those cases, a total of 2,351 people were prosecuted for corruption last year, a rise of 14.9 percent, the statement said.
But corruption is likely to level off this year, as the department already has registered a decline in the number of corruption cases since January.
"[There's been] a 7 percent decline. It's not a global victory, but it shows that the measures taken in 2009 are working," said Alexander Nazarov, deputy head of the Interior Ministry's economic safety department.
President Dmitry Medvedev declared war on corruption after assuming his post in 2008, creating the Anti-Corruption Council and calling on it to draft legislation to protect businesses from corrupt bureaucrats and to guarantee judicial independence.
Medvedev signed a national plan to combat corruption in 2008 and last year signed new anti-corruption legislation, which includes statutes barring officials from accepting gifts worth more than 3,000 rubles ($100) and forcing them to inform state bodies if they plan to join companies in which they may have vested interests.
But the Interior Ministry statistics involve mostly low-profile crimes, and they aren't very helpful in understanding the total amount of corruption in the country, said Yelena Panfilova, head of Transparency International Russia.
"The statistics published by the Interior Ministry don't cover the whole scope of corruption-related crimes — bribery is just a part of the problem," she said. "It would be more helpful if the Prosecutor General's Office offered some statistics on abuse of power by high-ranking officials."
In fact, the average bribe would be much larger if the economic safety department tackled high-ranking people within the law enforcement agencies, said Kirill Kabanov, chairman of the National Anti-Corruption Committee.
If the authorities went after higher-ranking officials, the size of the bribes they would find "would stun both journalists and the public," he said.
And while the Kremlin's anti-corruption campaign is a good start, it won't be enough to put a dent in the real corruption problem.
"[Medvedev's] main accomplishment is speaking openly about it and calling for action," Kabanov said. "But it looks like the officials on the lower levels don't hear him."
Russia was ranked 146th in Transparency International's worldwide corruption rating in 2009, slightly improving from 147th place, where it was in 2008, the organization said.
Itar-Tass: Criminal case instituted over attack on Shatura town mayor
26.03.2010, 10.25
MOSCOW, March 26 (Itar-Tass) -- A criminal case was instituted over the attack on Shatura town mayor Valery Larionov, spokeswoman for the Moscow regional investigation department of the Prosecutor General’s Office Investigation Committee Yulia Zhukova told Itar-Tass on Friday.
“The criminal case was instituted under Article 318 Part 2 of the Criminal Code for the use of violence dangerous for the life and health of a statesman,” she noted.
Valery Larionov drove up at about 18.30 Moscow time on Thursday evening to his house in the village of Levoshevo, the Shatura district, two bandits came up to him and started beating him up. “The son ran up for help to his father, and the attackers were trying to escape. The mayor and his son detained an attacker. He is a 31-year-old local resident with previous convictions. The second attacker managed to escape, but he was identified. The search operation for him is underway,” Zhukova said.
According to her, the detectives are investigating all possible theories behind the attack – from personal hostile relations to professional activities.
Meanwhile, sources in the law enforcement agencies noted that, according to preliminary reports, an attacker is a member of an organized criminal group, and the attack was linked with the previous job of an official, who was engaged in land property management in the Shatura district.
It is ten years to the day since Vladimir Putin was first elected Russian president.
His second term finished two years ago but, as Prime Minister, he remains at the heart of Russian politics.
Russia Today: “Putin cares more about what he is doing than about how and when” – PM spokesman
Published 26 March, 2010, 10:34
Prime Minister Vladimir Putin's press attache, Dmitry Peskov, spoke with RT about the Premier’s attitude towards protocol, his team’s plans and Russia’s handling of the global economic crisis.
It is ten years to the day since Vladimir Putin was first elected Russian president.
His second term finished two years ago but, as Prime Minister, he remains at the heart of Russian politics.
RT: Well, you know, it still worries the Americans.
DP: Well, we have the IAEA international body. This is the only responsible body, responsible for sector of nuclear energy, and compliance is total.
So, construction of Busher is going on and it’s going to be completed this year. And, certainly, these are planned activities. They have nothing to do with traveling schedule of leaders of other states or the state secretary of the United States.
RT: You know, Western media also speculates that Russia’s United Aircraft Corporation is to take part in the Pentagon tender for tankers’ aircraft supplies. Pentagon hasn’t confirmed this. Is Russia going to take part in this tender?
DP: No, Russia is not going to.
RT: Now, let’s talk about trade and economy, about Russia and China, two huge countries, two neighbors. It’s a bit odd that Russia’s main trading partner is Europe. The reason I am asking is whether there’s a possibility that China may replace Europe; that all Russian exports will end up in China, including oil?
DP: Well, it’s very hard to imagine that all Russian oil ends up in China, or China is, let’s say, an overwhelming trade partner. And the reason is very simple. Russia traditionally was looking in both directions. Certainly, we are trying to diversify routes of deliveries of natural hydrocarbons, natural resources not limiting us only with Western direction, but also try to take advantage, well, of demand that we see in the Far East, that we see in China.
This will and is balancing to a great extent the trade balance of our country and this will continue.
But definitely China is traditionally our privileged partner. Prime Minister Putin met the deputy chairman of China, and what we witness now is really political will, coming from Beijing, to broaden our cooperation, and in exchange, we certainly try to demonstrate and are demonstrating a totally reciprocal attitude.
RT: Well, then Russian citizens have their assets converted into dollars, partially in dollars. How justified is that considering the current state of the US economy, which is far from being perfect?
DP: Actually, the global economy is still far from being perfect. Let’s not forget that only one year ago we were all in a disastrous situation. Some countries managed to withstand the consequences in a better shape, some not.
I would rather say that Russia is among the countries that managed relatively smoothly. Yes, we had a greater decline and a greater shrinkage of economy in comparison with other BRIC countries. This is true, but at the same time we were, let’s say, sophisticated, economically sophisticated, enough not to allow negative social consequences to occur and not to allow decrease in the living standards of the population. Well, savings in dollars? Savings in euros? We know that Europe is also shaking economically.
RT: Well, do you have any further plans for diversification?
DP: Well, the Ministry of Finance proved to be a very wise investor. During the crisis they avoided any loss in their investments, in their international assets. And on the contrary, they managed to gain some profit. So, let’s avoid speaking in favor of one currency because the volatility in rates will continue for a certain period.
RT: Now, the government has made huge investments into the Russian economy during the crisis time. But even the premier said that not all the money was used properly and efficiently. What went wrong? How come the funds allocated once again fell into the hands of inefficient managers?
DP: Don’t forget that crisis management is a process of a very rapid reaction. You have to act very rapidly responding to changing global environment, economic domestic environment. And that was done by the government.
Unfortunately we don’t see the necessary level of growth of credit portfolio of the banks. So, they don’t give enough credits despite the fact that they were supported by the government. The conditions are not suitable. And, thus we cannot speed up economy as it is desired. Well, at the same time we know that some times we still see difficulties, let’s say, rather connected with bureaucracy.
So, it’s day-to-day business, it’s day-to-day problems. And that’s why some mistakes, some – let’s say – less-efficient responses for measures that were taken are inevitable. That’s why crisis management cannot be in automatic mode. It can only be in a manual mode.
RT: Now, Premier Putin is going to Katyn, which is the scene of the mass murder of thousands of Polish prisoners of war, and primarily military officers, who were killed by the Soviet NKVD. Russia has officially apologized for this crime of 1940. Nevertheless, in Poland, this historical fact is often used as political manipulation or speculation. Is this going to go forever?
DP: We sincerely hope that it is not. That was really a huge tragedy, but not only of Polish people, but also of the Soviet people. Let’s not forget that beneath the bodies of Polish officers, bodies of Soviet people were found. They were also destroyed, murdered by regime of Stalin.
RT: What is there to be done for this issue to become subject of discussion between historians rather than politicians?
DP: It’s just to exclude any attempts of politicizing on this issue from diplomatic and political practice. Also, it’s to exclude this issue from set of instruments of domestic affairs. Sometimes, for the sake of domestic situations, it used to be used in Poland. Certainly, we don’t think that this is appropriate practice.
We think that we, both Russians and the Poles, have to keep the memory of those dead and rather use this memory as a uniting factor, as a factor opening new perspectives for our two peoples, for interaction between the two countries being very close and historical neighbors.
RT: Protocol – it’s kind of a tricky thing and it’s kind of a ritual that Vladimir Putin over the last decade has, a couple of times maybe, stepped away from it. Can you, maybe, recall one instance when he made you nervous or made you smile?
DP: Putin is very pragmatic and much more he cares about what he is doing and not about how and when he is doing that. He cares about the real outcome, not about the process.
And sometimes he doesn’t care about protocol at all. Sometimes he prefers not to listen to a man of appropriate level for him.
RT: So, what do you do in these cases when he doesn’t care about protocol?
DP: Well, our job is to create conditions for his comfortable work, to assist. So we are trying to comply with his demands.
Moscow Times: Dmitry Gets No Respect
26 March 2010
By Michael Bohm
NTV chief Vladimir Kulistikov took a well-aimed pot shot at Dmitry Medvedev during a live televised meeting between the president and the general directors of the country’s top three television stations on Dec. 24. Kulistikov said that while listening to Medvedev’s state-of-the-nation address in November, he had been struck by how many senior officials in the audience displayed an “amazing, complete indifference” to what Medvedev was saying. During the speech, Kulistikov said, some whispered among themselves, while others played with their cell phones.
Having established that Medvedev enjoys little respect among bureaucrats, Kulistikov asked, “Between you and reality are an army of bureaucrats. What are you going to do so that your decisions are implemented in the regions and not turned into a parody of themselves?”
What prompted the snide remark is unclear, but the question proved prescient. Last week, Medvedev called governors and ministers to a meeting and ordered them to show more respect. He complained that many of his presidential orders — 38 percent in total last year — go unfulfilled. He grumbled about getting the runaround, of being inundated with legendary
otpiski, or written excuses, which Russian bureaucrats have craftily used for centuries to buy time or explain away why this or that order was not fulfilled on time — or not fulfilled at all.
The meeting marked the first of its kind to be shown on television. Medvedev clearly had intended to use the gathering — a video conference — to publicly chew out his subordinates, hoping to show that he is a tough boss a la his mentor, Prime Minister Vladimir Putin. But it backfired miserably.
“Discipline is lame,” Medvedev complained. “It is necessary to value presidential orders. They have to be rigorously fulfilled. Whoever doesn’t fulfill them can take a hike.”
The biggest problem is that Medvedev plays an unconvincing tough guy. And the more Medvedev tries to act tough, the weaker he looks.
Medvedev’s height of 162.5 centimeters has little to do with it because Putin is not that much taller. More important, Medvedev is perceived as too much of a “smart kid” and wonk — the “Blogger in Chief,” as his opponents like to call him.
When Putin dresses down oligarchs and Olympic bureaucrats or threatens to send a “doctor” to Mechel owner Igor Zyuzin “to clean him out,” it is very convincing. Just look at the stiff, serious and sometimes petrified faces of others present when Putin performs one of his tongue-lashings. No one would even think of sending a text message during one of Putin’s meetings.
The arrest of former Yukos CEO Mikhail Khodorkovsky in 2003 certainly helped Putin establish his image as a tough boss, showing everyone he can put the money where his mouth is. Putin shows once again what has always been said about Russia: You have to be a tough to be an effective manager or leader in the country; otherwise, subordinates will walk all over you. The old Russian saying “If you are feared, you are respected” certainly applies to both Medvedev and Putin.
Several weeks ago, when Medvedev caught two Kremlin aides chit-chatting during a government meeting with business leaders, he said, “Are you chatting again? You do this at every meeting.”
Even one participant during last week’s video conference, Irkutsk Governor Dmitry Mezentsev, was shown on camera signing papers brought to him by his assistant during the meeting. It is a safe bet that Mezentsev was among the guys sending text messages during Medvedev’s state-of-the-nation address.
Medvedev struggled to get respect even during his pre-presidency days as first deputy prime minister and Gazprom chairman. “Medvedev has such a weak personality that he would be raped by lobbyists right on his table on the second day of his presidency, and Putin knows this,” Mikhail Delyagin, a former government economic adviser, told The Moscow Times as speculation swirled that Putin in fall 2007 might support Medvedev as his preferred successor.
In the end, you can’t help but sympathize with Medvedev. He is conscientious, hardworking and appears to be honest. He is trying hard to gain respect and push through his reform and modernization programs against all odds, including some of Putin’s eminence grises who are determined to undermine Medvedev’s authority at every step. After all, Putin’s inner circle has a direct, financial interest in making sure that Putin returns to the presidency in 2012. The stakes are too high, and they don’t want to take any risks.
The late American comedian Rodney Dangerfield had a great one-liner: “I get no respect. The way my luck is running, if I was a politician I would be honest.” Sounds like Rodney and Dmitry might have something in common.
Michael Bohm is opinion page editor of The Moscow Times.
March 25, 2010
Russia Profile: Assault on the Fourth Estate
By Tom Balmforth
Russia Profile
As Liberal Media Figures Are Targeted by a Mysterious Smear Campaign, Hope for the Russian Press’ Integrity Came From a Conservative
Over the last week, three prominent liberal opposition figures, including one top journalist, have been framed in compromising Internet videos, involving cocaine and a beautiful model-cum-secret services “collaborator,” opposition members said. The opposition has been a recent headache for the ruling elite after a weekend of Russia-wide protests. But media harassment is not only directed at liberals. Izvestia’s star conservative columnist, Maksim Sokolov, on Monday tendered his resignation after censorship of his mildly critical article about the Russian government’s much-vaunted answer to the Silicon Valley.
Last week an amateurish smear campaign against Dmitry Oreshkin, a political analyst who writes for the liberal papers, Ilya Yashin, an opposition activist, and Mikhail Fishman, the chief editor of the liberal Russian Newsweek, kicked off with a video posted first on YouTube and then quickly uploaded to all the pro-Kremlin youth movement sites. The clumsily edited video supposedly captures the three liberals bribing themselves out of an encounter with the notoriously corrupt traffic police. Footage is then interspersed by several phone interviews with the liberals, in which Yashin argues that people who give bribes are “also participating in crime.”
“It’s a very strange video…Specialists say that even without a trained eye, it’s clear that the video is fake,” said Mikhail Melnikov, Russia analyst for the Moscow-based Center for Journalism in Extreme Situations. The video has so far had 18,500 hits, which apparently only whetted the authors’ appetites, and the mystery entrapment artists upped the ante on March 22 with a new film billed as the sequel, this time posted on Nakanune.ru, a news site from Yekaterinburg. “Liar 2” catches Fishman in an apartment snorting cocaine before moving off-screen with a pixilated half-naked young woman before returning onscreen, now also naked, to snort some more.
Fearing he too would fall victim of spiraling dirt-digging, Yashin yesterday wrote on his blog that he actually recognized the apartment where Fishman was filmed, as the place where a former girlfriend, along with her friend, had taken him, and together tried to seduce him. When the girl finally emptied a bag of cocaine onto a table, Yashin, sensing foul-play, simply left the flat, getting away with it. Writing yesterday, Yashin said he knew the pixilated half-naked woman, as Katya Gerasimova: “she works in a modeling agency called Progress, and she collaborates with the secrets services.”
Yashin argued that “the authorities and the special services have declared a fully-fledged dirt war on the opposition.” But Andrei Soldatov, an independent expert on the security services, said it’s hard to determine who is actually behind the videos. “Because this was all filmed in a special flat, not in Fishman’s home, it’s extremely difficult to define who might be behind this thing. It’s quite easy to do this in a flat. You don’t need any secret recording devices,” said Soldatov. “That’s why I can’t say it’s definitely FSB, or the Interior Ministry. Some youth groups, such as Nashi, and Molodaya Gvardiya, are capable of this kind of thing,” he said.
Last year the FSB was thought to be responsible for publishing similarly compromising material (known as “kompromat” in Russian) on two Western diplomats, but Soldatov said this time there were important differences in technique that suggested the Russian secret services were not involved. Whereas the kompromat was published on state-owned Web sites in last year’s case, this time it appeared on youth movement sites, and not on Komsomolskaya Pravda and Informatsiya.ru, said Soldatov.
The timing of the anti-opposition smear videos is significant, given the recent spate of anti-government protests. “These people – Fishman, Oreshkin, Yashin – they are specialists, democrats, who are doing something positive for our society,” said Melnikov. “The videos look very much like a provocation against these people, as well as Newsweek Russia.”
Although today Russia’s opposition remains fragmented, protests have gained prominence. Opposition popularity has been buoyed by recent government price hikes on utilities and electricity bills, as well as public discontent localized around the Irkutsk region in riposte to legal amendments passed by the government allowing pollutants to be once again pumped into Lake Baikal. Last Saturday, 3,000 gathered in Kaliningrad as part of Russia-wide anti-government protests dubbed the “Day of Wrath,” which saw as many as 20,000 take to the streets, and as many as 70 arrested in Moscow.
The complicity of government agencies in the smear campaign is contestable, but hounding of the liberal opposition has become routine. Opposition demonstrations slated for the end of the March, which have been taking place on the 31st of every month that has one, will likely be ended prematurely in a series of arrests, as their precursor demonstrations have been. “At the moment, the federal and regional powers are worried by the fact of a consolidating opposition,” said Melnikov. “There’s this sense of apprehension. It worries them because protest groups exist – these are real groups. Leaders can appear, an organization could appear which can lead the protest movement, which is grass-roots at the moment. There are many protest groups, demonstrations going on, but the press doesn’t write about it,” Melnikov said.
But for those despairing about the state of Russia’s press, a shining example of journalistic rigor came from the most unexpected of quarters – Russia’s state-owned Izvestia newspaper. Its star conservative columnist Maksim Sokolov on Monday tendered his resignation after censorship was imposed on an article of his which criticized the government’s plans for a hi-tech industry region based in Skolkovo, in imitation of the Silicon Valley in the United States.
It was unclear whether Sokolov’s dissatisfaction had been building up for a while and this was simply the last straw, or whether his criticism of the Kremlin’s plans for a Russian Silicon Valley simply touched a sensitive nerve. Less than a week ago Dmitry Medvedev revealed that the hi-tech region was to be located at Skolkovo, not far from Moscow, and this morning the Kommersant daily reported that Russian billionaire Viktor Vekselberg would run it. Even Vladislav Surkov, the president’s first deputy chief of staff, better known as the “grey cardinal” of today’s regime, emerged from the deepest, darkest corridors of power to give a rare interview – which was devoted exclusively to the Skolkovo project.
Why Sokolov actually walked out on Izvestia is not clear, but Melnikov said he was like a ray of hope for Russia’s media. “People always say that our country has corrupt, sell-out journalism, and a servile press, and to some extent that’s right. But there have always been reputable, honorable journalists – conservatives or liberals. For them, professional quality is the most important. It seems to me that these people maintain optimism in Russian journalism in the hardest times, when it is so difficult to have a professional journalistic ethic,” said Melnikov.
Reuters: PRESS DIGEST - Russia - March 26
Fri Mar 26, 2010 1:21pm IST
MOSCOW, March 26 (Reuters) - The following are some of the leading stories in Russia's newspapers on Friday. Reuters has not verified these stories and does not vouch for their accuracy.
KOMMERSANT
kommersant.ru
- Belarus has filed a case against Russia for high duties on imported oil products from Russia, the paper reports.
- Workers of the Ford Motor Co (F.N) assembly plant in Vsevolozhsk went on strike on Thursday, demanding their salaries be increased by 25 percent, the paper reports.
- Russia's car maker Avtovaz (AVAZ.MM) will pay its 38 billion roubles ($1.28 billion) debts by mid-april, the daily says.
VEDOMOSTI
vedomosti.ru
- Russia may ease migration rules to attract foreign investors and specialists to modernise the country, the paper says.
- Russia will create a low-enriched uranium reserve in Irkutsk, which will controlled by the IAEA, the daily writes.
GAZETA
gzt.ru
- Russian veterinary watchdogs will inspect every car with an animal heading from Moscow to the suburbs in order to prevent the spreading of rabies, the daily says.
VREMYA NOVOSTEI
vremya.ru
- Russian businessman Andrei Lebedev has bought British newspaper The Independent for one pound, the paper says.
TRUD
trud.ru
- The daily runs comments by Russian politicians, experts, artists on the 10th anniversary since Vladimir Putin was elected President in 2000.
Moscow Times: Today in Vedomosti
Greece Might Get IMF Help
By Alexei Alexeyev
No countries in the eurozone are still opposed to involving the IMF in the rescue plan for the Greek economy.
Internet Scams on the Rise
By Yulia Arakcheyeva and Mikhail Overchenko
Fraudsters are increasingly attacking Russians. As well as the “Nigerian emails” they try to extract information and money using cell phones and bank cards.
Crisis Doubles Difficulty for Russian Business
By Natalya Kostenko
The crisis year was doubly difficult for Russia's businesses: Administrative pressure and corruption became even more intense.
Russia Today: 26 March, 2010 in Russian Newspapers
Vedomosti: A portrait of the beloved CEO
Grigory Milov
Russian CEOs have an underdeveloped competence level related to motivation and education of staff, say experts of RosExpert, a consulting company, basing their argument on a detailed analysis of decision making styles of CEOs of Russia’s largest companies.
In many managerial competencies, Russian managers are no worse than their foreign colleagues, say the researchers. Russians are highly intelligent, focused on deep expertise, capable of interpreting and analyzing complex information, quickly adapt to changes and prove to be effective in stressful situations. But, the list of their shortcomings was rather lengthy as well, note RosExpert specialists.
Kommersant: Comedy named the price for laughter
Sergey Sobolev
Last year the company earned $52 million.
If it weren’t for the crisis, Comedy Club Production’s 2009 profits would have been 35-55% higher, says the company’s owner, Artur Dzhanibekyan.
Comedy Club Production (CCP), producer of programming that is aired on the TNT channel, “Comedy Club”, “Nasha Russia” (“Our Russia”), “Uboinaya Liga” (“The Lethal League”) and others, had for the first time ever revealed its financial indicators: its profit margin was at 10% with revenues of 52% million. Two years ago, the company asked auditors to assess its cost and learned that it is valued at $155 million; today, its price is higher, says co-owner of CCP, Artur Dzhanibekyan.
National Economic Trends
Prime-Tass: Russia's central bank to cut refinancing rate to 8.25% Mar 29
MOSCOW, Mar 26 (PRIME-TASS) -- The board of directors of the Central Bank of Russia (CBR) on Friday approved cutting its refinancing rate to 8.25% on March 29 from 8.5% currently, the CBR said.
The central bank said its other rates would also be cut by 0.25 percentage points.
The refinancing rate will now be at its lowest level since 1992.
The central bank said the rate cut was intended to promote credit expansion, trigger a rise in domestic demand, and stem an inflow of speculative capital.
The CBR said it could afford to cut the rates because of lower inflation.
The CBR has been gradually cutting the refinancing rate since April 2009.
End
26.03.2010 12:05
Reuters: Russia c.bank cuts rates for 12th time in a year
|2010-03-26 08:46:08 GMT (Reuters) |
MOSCOW, March 26 (Reuters) - Russia's central bank on Friday unveiled its 12th monetary easing in a year, cutting the benchmark refinancing rate by 25 basis points to 8.25 percent as it seeks to support fragile economic growth.
"Despite certain positive changes in the dynamics of macroeconomic indicators pointing to a resumption of economic activity, this process remains not sufficiently stable," the central bank said in a statement.
"At the same time, the rate cuts from the Bank of Russia, by limiting the stimulus for short term capital inflows should help balance the domestic currency market."
Analysts had expected a 25-50 basis point refi rate cut this month.
(Writing by Toni Vorobyova; editing by John Stonestreet)
Bloomberg: Russia Cuts Rate 12th Time in a Year to Contain Ruble (Update1)
March 26, 2010, 4:42 AM EDT
(Adds ruble in fifth paragraph.)
By Maria Levitov
March 26 (Bloomberg) -- Russia’s central bank cut its main interest rates for the 12th time in less than a year to resuscitate lending and contain the ruble’s gains as the economic recovery stutters.
Policy makers lowered the refinancing rate by a quarter of a percentage point to a record low 8.25 percent and reduced the repurchase rate charged on one- and seven-day central bank loans to 7.25 percent from 7.5 percent, effective March 29, Bank Rossii said in a statement today. It last cut rates a quarter- point on Feb. 19.
The bank is lowering borrowing costs as signs appear that a recovery has lost momentum following a record contraction in 2009. Industrial production expanded at a slower pace in February and bank loans continued to shrink even as lending conditions eased last quarter. Unemployment and slack demand for credit are holding back a rebound, Andrei Kostin, head of VTB Group, Russia’s second-largest bank, said on March 2.
“The authorities are likely to continue cutting rates as long as lending rates remain elevated, access to credit limited and inflationary pressures subdued,” said Natalia Novikova, an economist at Citigroup Inc. in Moscow. “This goes along with the central bank’s two main objectives, stimulating credit in the economy and containing hot money.”
The ruble was little changed against the dollar, gaining less than 0.1 percent to 29.5245 at 11:33 a.m. in Moscow after the decision. Against the euro the Russian currency was 0.2 percent weaker at 39.4698.
Bank Rossii is set to narrow the interest-rate corridor by cutting the refinancing rate by 1 percentage point or 1.5 points, the repo rate by half a point and keeping the deposit rate unchanged in the first half, Citi predicted on March 15.
Ruble Strength
The repo-rate cut would also be aimed at containing the ruble’s strength, which may hurt domestic producers, Novikova said. The ruble has gained more than 17 percent against the dollar since early February 2009 as Urals oil, Russia’s chief export blend, rose to as much as $80.52 a barrel on January 6.
The economy expanded an annual 3.9 in February and shrank a seasonally adjusted 0.9 percent on a monthly basis, Deputy Economy Minister Andrei Klepach said on March 22. Growth is set to pick up next month, he said.
Bank lending has been hurt by “a lack of stable growth in the real economy and weak demand for borrowing, as well as relatively high credit risks,” Bank Rossii said on March 1.
Corporate loans declined 0.3 percent in February and haven’t grown in March after shrinking in January, Interfax reported on March 17, citing Gennady Melikyan, first deputy chairman of the central bank.
‘Marginal Changes’
“All the indicators showed only marginal changes, thereby supporting our opinion that industrial production is stagnating and that the loosening of monetary conditions has yet to improve the situation in the real sector,” Anton Nikitin, an analyst at Renaissance Capital in Moscow, said in a note on March 9.
Industrial output advanced 1.9 percent in February, less than the 6.6 percent expected by 12 economists in a Bloomberg survey and after a 7.8 percent jump in January.
“Evidence that recovery in manufacturing has stalled should add to the already substantial set of arguments for the Russian central bank to lower rates further, as inflation is falling and ruble is under increased pressure to appreciate,” Anna Zadornova, a London-based economist at Goldman Sachs Group Inc., said in a March 17 research note.
Russia has lagged behind other central banks in easing monetary policy and will trail them as regulators reverse rate cuts, Bank Rossii said in January.
Global Banks
Australia, Norway, Israel and Vietnam have raised rates since the peak of the global crisis. China and India have increased reserve requirements for banks to avoid stoking unsustainable lending growth, while the U.S. Federal Reserve raised the rate charged to banks for direct loans, signaling an end to emergency measures to supply liquidity to financial markets.
Russian inflation has ebbed, leaving room for rate cuts. Price growth slowed to an annual 7.2 percent in February from 8 percent in January, the lowest rate in nearly 12 years.
There is no risk in the “foreseeable future” of quickening inflation or consumer-price growth exceeding the official forecast, the central bank said last month. Inflation may decelerate to between 6.5 percent and 7.5 percent in 2010, the government said in a Dec. 30 report.
The “substantial slowdown” in inflation calls for deeper rate cuts, Vladimir Osakovsky, an economist at UniCredit SpA in Moscow, said in an e-mailed note on March 5. The central bank may cut the benchmark rate by a cumulative 100 to 125 basis point in the first half, which is “one of the key factors that should keep ruble appreciation in check,” he said.
More than a 80 percent increase in Urals crude since the end of 2008 has boosted the Russian currency’s appeal. The higher relative interest rate makes it a favorite carry trade.
The ruble may strengthen as much as 20 percent in the next three years, the Economy Ministry’s Klepach said on March 16, urging the central bank, which says it wants to shift to an inflation targeting regime next year, to do more to counter currency gains.
Slowing inflation means that “the central bank will have a window of opportunity to wield a more effective monetary policy,” Sergei Ulatov, an economist at the World Bank in Moscow, said on March 24.
--With assistance from Paul Abelsky and Lyubov Pronina in Paris. Editors: Chris Kirkham,
To contact the reporter on this story: Maria Levitov in Moscow at mlevitov@
To contact the editor responsible for this story: Chris Kirkham at ckirkham@
26.03.2010 - Banki.ru
Cbonds: Narrow monetary base rises Rub 39 bln
The PR department of the Central Bank of the Russian Federation reported that as of March 22, 2010 the narrow monetary base amounted to Rub 4,617.4 bln vs. Rub 4,578.4 bln a week earlier. This means the national monetary base grew Rub 39 bln on the week.
The narrow monetary base includes ready cash put by the Bank of Russia into circulation (taking into account cash balances held at lending institutions) and balances held on CBR accounts for mandatory reserves on funds borrowed by lending institutions in the national currency.
2010-03-26 08:41
Reuters: Russian rouble at new highs ahead of expected rate cut
MOSCOW, 26 March (Reuters) - The Russian rouble continued its almost daily trend of setting new highs on Friday, hitting fresh multi-month peaks ahead of widely expected rate cuts by the central bank.
By 0741 GMT, the rouble firmed to its highest mark since late December 2008 at 33.92 against the euro-dollar basket -- only 2 kopecks short of the last presumed -- but yet to be tested -- level of the central bank's interventions.
The rouble struggled to test this level again as some investors preferred to lock in profits near the lower boundary of the basket floating band, ahead of the weekend and a new month, said a dealer at a major foreign bank in Moscow.
The regulator keeps the rouble within a floating band and allows it to move gradually, shifting the lower boundary by 5 kopecks after each $700 million of interventions. Since mid-February, the central bank made 22 such steps, bringing the band to 33.90-36.90, dealers say.
The latest rouble firming came before the widely expected central bank's decision to cut interest rates -- a policy move that's already priced in, dealers and analysts said .
Oil prices, which are still above $80 per barrel cast a positive impact on the rouble, ensuring new capital inflows into Russia.
Russia Equity Funds have already absorbed $1.2 billion this year, comparing to net outflows of around $80 million during the same period in 2009, the latest EPFR data showed.
Against the euro, the rouble hit another new 15-month peak at 39.34, and was modestly down versus the dollar at 29.51. (Reporting by Andrey Ostroukh; Editing by Lidia Kelly)
(andrey.ostroukh@, +7 495 775 1242)
CommodityOnline: Russia to increase gold export by 13 percent
MOSCOW (Commodity Online) : Russia’s Gold Producers Union said the country may increase gold exports by 13 percent to 30.5 metric tons (980,000 ounces) in 2010 after nine straight years of gains in international prices for the precious metal.
At the same time, Russia’s gold production will grow less than 1 percent to 207 tons, after an 11 percent jump last year, because of lower ore grades, Union said in statement.
Earlier, Russian Gold Industrialists Union said, country’s gold output in the first quarter of this year is expected to decline by 10 percent from the 31.39 tones produced in the first three months of 2009.
A monthly statement issued by the industry lobby did not provide the reasons behind the expected decline. It said Russia produced 17.54 tones of gold in January and February 2010, without providing a comparison for the same period a year ago.
Moscow Times: List of Strategic Enterprises May Be Reduced to 200
26 March 2010
Combined Reports
The Economic Development Ministry said Thursday that the list of companies deemed "strategic," and therefore ineligible for privatization, may be reduced to 200 from 441.
The number of joint stock companies on the list will be cut to 41 from 211, while the state unitary enterprises would be cut to 159 from 230, said Alexei Uvarov, head of the ministry’s property department.
President Dmitry Medvedev is seeking to reduce the government’s role in the economy and lure more investment from abroad by selling stakes in companies that no longer need state support. Medvedev told officials in November to reduce the number of state enterprises to an “optimal level” by 2012.
The Economic Development Ministry expects to raise more than 100 billion rubles ($3.4 billion) by selling assets in 2010, including 13 percent of insurer Rosgosstrakh and 25 percent of power utility TGK-5, according to the ministry.
The “crown jewel” of the enterprises that can now be sold is Sovkomflot, the nation’s biggest shipping company, Uvarov said. Major state-owned companies such as Aeroflot and Channel One will not be sold off, however.
The ministry also said it was in talks with “all major banks” about advising on asset sales and may submit to the government for approval next month a list of which ones to hire.
JPMorgan Chase, Bank of America Merrill Lynch and UBS are among the banks vying for contracts to advise on the privatization program.
The government needs to hire banks “that understand the best time to put assets on the market,” Uvarov said. “We’re trying to find new mechanisms of privatization that are less archaic than before, with flexible market mechanisms,” he said.
Russia’s last major asset sale was in 2007, when VTB Group, the country’s second-largest bank, raised $8 billion in the biggest initial public offering of that year. Oil producer Rosneft’s IPO a year earlier raised $10.6 billion.
(MT, Bloomberg)
Bloomberg: Russia to Keep 75% Plus Share of Shipper Sovkomflot (Update1)
March 26, 2010, 4:37 AM EDT
(Adds Economy Ministry comment in second paragraph.)
By Maria Levitov
March 26 (Bloomberg) -- Russia won’t sell more than 24 percent of OAO Sovkomflot, the nation’s biggest shipping company, the Economy Ministry said.
“The government is interested in keeping its presence in such an important and successful company as OAO Sovkomflot,” the Moscow-based ministry said in an e-mailed statement today. “At the same time, the government understands that it is reasonable to offer some Sovkomflot shares to the market.”
Russia will keep 75 percent plus one share of Sovkomflot in the list of “strategic enterprises” that can’t be sold, according to the statement.
The government cut to 41 from 211 the number of companies on its strategic list of enterprises, which must still be approved by the presidential administration, Alexei Uvarov, the Economy Ministry’s property department chief, said yesterday. Sovkomflot is the “crown jewel” of the enterprises whose shares may be sold, he said.
President Dmitry Medvedev wants to make state resources more efficient and boost revenue by selling stakes in companies that no longer need state support. Medvedev told officials in November to reduce the number of state enterprises to an “optimal level” by 2012.
--Editor: Patrick G. Henry
To contact the reporter on this story: Maria Levitov in Moscow at mlevitov@
To contact the editor responsible for this story: Chris Kirkham at ckirkham@
Business, Energy or Environmental regulations or discussions
Reuters: Russian markets -- Factors to Watch on March 26
Fri Mar 26, 2010 7:18am GMT
MOSCOW, March 26 (Reuters) - Here are events and news
stories that could move Russian markets on Friday.
You can reach us on: +7 495 775 1242
STOCKS CALL (Contributions to moscow.newsroom@):
Troika: The Russian equity market was volatile yesterday. U.S. equities slid due to the disappointing treasury auction; crude is little changed; markets in Asia are trading higher. We are opening our prices varied, from flat to up slightly.
Uralsib: The afternoon collapse in U.S. equities and the retreat to the relative safety of the U.S. dollar will again provide a very nervous backdrop for all global markets and
commodities today. Equities will remain in a sideways track until Greece's debt problem is finally resolved.
EVENTS [RU-DIA] (All times GMT):
SOCHI - Russian President Dmitry Medvedev chairs a meeting on sports issues.
MOSCOW - Russian Prime Minister Vladimir Putin will meet Lithuanian counterpart Andrius Kubilus -0800.
MOSCOW - Meeting of the foreign ministers of the CIS -0800.
MOSCOW - Meeting of agriculture ministers of Russia, Brazil, India and China (BRIC), followed by a news conference at 1000.
MOSCOW - A Moscow court to hold a hearing of a lawsuit by Josef Stalin's grandson against Ekho Moskvy radio -0700.
IN THE PAPERS [PRESS/RU]:
Russian oil exports from East Siberia will stay duty-free this year, but a tax may be levied in 2011 costing Rosneft (ROSN.MM), Surgut (SNGS.MM) and TNK-BP (TNBPI.RTS) over $2 billion, Vedomosti daily reports.
Kommersant writes that Russian holding company Sistema (SSAq.L) is suing Russia's Sigma Capital Partners over a 32 percent stake in the Volga region telecoms operator SMARTS, to prevent its sale to state holding company Svyazinvest.
TOP STORIES IN RUSSIA AND THE CIS [RU-NEWS]:
TOP NEWS:
* Russia, Ukraine edge closer on gas deal
* Russia sees East Siberia oil duty from 2011
* Russia says may support Iran nuclear sanctions
COMPANIES/MARKETS:
* Russian rouble gains again, nears 14-mth highs
* Russian companies' Feb loan rates at 18-m low
* VTB sees AvtoVAZ repaying 10 bln roubles
* Court orders Russian zinc plant to stop, clean
* Rio Tinto may swap Russia Norilsk for Onexim
* Russia may privatise 25.1 pct of TGK-5 this yr
* Russian Railways cuts Eurobond price guidance
* Wimm-Bill-Dann to pay divs for '09, not 2007-8
ECONOMY/POLITICS:
* Russia aims at less "archaic" privatisation
* Russian gold/fx reserves rise to $448.2 bln
* Belarus picks leads for maiden Eurobond
* Belarus eyes China projects worth $10 bln
* Russia: French warship deal must include arms
* Russia jails officers for spying for Georgia
ENERGY:
* Belarus sues Russia over oil products duty
* Russian refinery maintenance in March, April
COMMODITIES:
* BRIC AgMins to discuss food security in Moscow
* Peru, Venezuela buy 50,000 T Russian wheat
MARKETS CLOSE/LATEST:
RTS 1,507.4 -0.51 pct
MSCI Russia .MIRU00000PUS 817.2 +0.13 pct
MSCI Emerging Markets .MSCIEF 991.3 +0.14 pct
Russia 30-year EurobondRU011428878= yield: 5.003/4.949 pct
EMBI+ Russia 11EMJ 146 basis points over
Rouble/dollar RUBUTSTN=MCX 29.5201
Rouble/euro EURRUBTN=MCX 39.3925
NYMEX crude CLc1 $80.93 +$0.40
ICE Brent crude LCOc1 $80.03 +$0.42
Moscow Times: Stricter Rules Eliminating Transfer-Pricing Schemes
26 March 2010
Reuters
Transfer-pricing schemes, under which Russian coal firms dodge taxes by selling output below market price to offshore resellers, are slowly disappearing because of state pressure and tighter corporate governance.
"It's a bit of a surprise that the government allowed it to continue for so long," said a Moscow-based fund manager who holds both steam and coking coal companies in his portfolio.
The change could mean good news for investors in the sector, as increased transparency attracts more money to Russian coal shares.
Coal sales practices have come under greater scrutiny since Prime Minister Vladimir Putin's public rebuke of Mechel in a separate pricing dispute in July 2008. The New York-listed coking coal miner's shares quickly plunged by more than a third.
The Audit Chamber then opened a separate probe into transfer pricing, reporting last July that 80 percent of the country's 100 million metric tons of annual export sales were made via transfer pricing schemes, analysts from UralSib bank wrote.
Since then, miners have curbed practices such as large-scale exports to offshore tax havens.
Kemerovo regional governor Aman Tuleyev said last month that most producers had also moved their trading operations back to Siberia's Kuznetsk Basin, or Kuzbass, giving local authorities greater control over their activities.
"The first step towards solving this problem has already been taken — 80 percent of the trading houses have moved from Moscow to the Kuzbass, and the coal companies should be praised for this," Tuleyev said.
He said transfer pricing cost his region about 1.7 billion rubles ($57.3 million) in lost tax revenues annually.
Legislators are now discussing tax changes that will allow the government to clamp down on transfer pricing, a spokeswoman for the Duma said, while market forces also play a role: Coal barons are cleaning up balance sheets to attract prospective investors to planned share sales.
Transfer pricing became commonplace among natural resources firms in the 1990s, when they took advantage of the gap between domestic and international prices to sell output to offshore trading houses at a steep discount to global prices.
Transfer pricing rules in place since 1999 say tax authorities can impose additional taxes if a local transaction price differs from the market price by more than 20 percent.
Artificially low Russian prices allowed the practice to continue in the coal sector through trading companies based in countries such as Cyprus and Switzerland. As a result, domestic miners often posted losses or small gains, while the offshore traders recorded hefty profits thanks to lower tax rates abroad.
Cyprus continues to receive an outsize quantity of Russian coal trade, though deals to the offshore haven declined to 4 million metric tons in 2009 from 17 million metric tons in 2008, coal information agency Rosinformugol said.
Most Russian coal majors, including Mechel and leading thermal coal producer SUEK, are affiliated to Switzerland-based traders. Kuzbassrazrezugol, Russia's No. 2 steam coal player, sells through an Austrian partner, KRUtrade.
Denis Nushtayev, an analyst with Metropol, said KRUtrade appears to be making purchases close to market prices after years of buying at a steep discount.
In the first nine months of 2009, the average dollar price at which Kuzbassrazrezugol sold its coal from Baltic Sea ports declined by 9 percent, compared with an industry average of 54 percent, Metropol said in a report dated Nov. 25.
"This is a clear indication that transfer pricing between KRUtrade and Kuzbassrazrezugol was at least partially eliminated," the bank's analysts wrote.
In an interview last month, Kuzbassrazrezugol director Vasily Yakutov said: "We do not engage in any transfer pricing. We sell coal for the full price."
Shares in Kuzbassrazrezugol have risen more than 60 percent on the RTS exchange since it issued nine-month results in November, as investors welcomed surging profits. The wider market has risen less than 3 percent in the same period.
Analysts say investors favor miners with transparent balance sheets, as they present fewer risks. Initiating coverage of Kuzbass Fuel Company, UBS praised the company's relatively high transparency, with "no transfer pricing risks."
Demands for greater transparency could also prompt SUEK to change its reporting practices should it proceed with plans for an initial public offering later this year.
"They issue separate results for the three mines that make up SUEK Krasnoyarsk, and do not consolidate those results into one clear statement," the fund manager said. "There are too many questions right now and they need to clean that up."
The company has yet to release any financial data for 2009 on its web site. A company spokesman said in an e-mailed statement that SUEK does not use any transfer-pricing schemes.
Moscow Times: Domestic Gas to Lose Subsidies
26 March 2010
Bloomberg
The government will stop subsidizing domestic gas prices by 2014 as Gazprom seeks to profit from sales at home to help fund new fields and pipelines, Gazprom said Thursday.
Export and domestic prices will start to converge next year and reach parity, excluding transportation costs, by 2014, Gazprom said in an e-mailed statement.
Gazprom exports about a third of its output to Europe, which generated 59 percent of its revenue last year, according to a presentation to investors in February. The state-run gas export and pipeline monopoly aims to increase the share of sales in Russia, where power plants are the biggest consumer, in total revenue to 38 percent in 2014 from 23 percent last year.
“Gas prices must increase if we want to improve production profitability and maintain output volumes,” Alexander Krasnenkov, board chairman at Northgas, a Gazprom-controlled gas producer, said in an interview. “Production costs at mature fields aren’t high, but output is falling. These volumes need to be replaced, while new output will be more expensive because drilling and construction costs are rising, and we often have to create new infrastructure.”
Wholesale domestic price averaged 1,970 rubles ($66.70) per 1,000 cubic meters last year, according to the February presentation’s preliminary estimates. That compares with an average of $296 that Gazprom charges European customers.
Russia had initially planned to bring domestic gas prices in line with export prices by 2011, before deciding on a three-year transition period.
Gazprom made its first profit from gas sales at home last year, which was estimated at about 70 billion rubles ($2.4 billion) in the February presentation. The company, which supplies about a quarter of Europe’s gas needs, expects 2009 revenue from exports to exceed $40 billion. Full-year 2009 earnings under international accounting standards haven’t been published yet.
Bloomberg: Russian Zinc Plant Shut by Court on Pollution, RIA Novosti Says
By Ilya Khrennikov
March 26 (Bloomberg) -- OAO Electrozinc, one of two zinc plants in Russia, was ordered by an arbitration court to suspend operations for air pollution, RIA Novosti said.
Residents of Vladikavkaz in southern Russia had held a series of protests against the plant, the news service reported late yesterday. Viktor Belimov a spokesman for the plant’s owner, billionaire Iskander Makhmudov’s Ural Mining & Metallurgical Co. in Verkhnaya Pyshma, declined to comment by phone when called by Bloomberg News.
To contact the reporter on this story: Ilya Khrennikov at ikhrennikov@
Last Updated: March 26, 2010 02:49 EDT
Moscow Times: For the Record
26 March 2010
• Belarus hired BNP Paribas, Deutsche Bank, Royal Bank of Scotland Group and Sberbank for a debut eurobond offering this year as the country seeks to bolster its finances after export revenue tumbled. (Bloomberg)
• Mechel is warning clients about possible fraud by people purporting to act on behalf of its Mechel Service subsidiary with no authorization. (Bloomberg)
• Renaissance Capital, the commercial banking arm of Renaissance Group, is selling $225 million of three-year bonds, according to a banker with knowledge of the transaction. (Bloomberg)
• Ukraine’s antitrust body started an investigation into 15 oil companies, including UkrTatNafta, TNK-BP, Concern Galnaftogaz, and LUKoil’s Ukrainian units, accusing them of overcharging. (Bloomberg)
• Protek, a drug wholesaler, may sell as much as 15 percent of its shares for $300 million in an initial public offering in May, Vedomosti said, citing unidentified people familiar with the plans. (Bloomberg)
TradingMarkets: Russo-Indian Telco Sistema Shyam Aims For Profit By 2012
Posted on: Fri, 26 Mar 2010 03:21:18 EDT
NEW DELHI, Mar 26, 2010 (AsiaPulse via COMTEX) --
Russian mobile major Sistema, which offers MTS brand of CDMA mobile services in partnership with Shyam Telecom (BSE:517411) in India, is hoping to be EBIDTA positive (be profitable) by the end of 2012.
"We are hoping to become EBIDTA (earnings before interest, depreciation, tax and amortisation) by 2012-end or early 2013," president and chief executive of Sistema Shyam Teleservices Ltd, Vsevolod Rozanov told PTI.
The company obtained its pan-India license for mobile services in March 2008.
Telenor, a new GSM operator which operates in India under the Uninor brand name had said it would achieve EBIDTA break- even in three years, with operational cash flow (OCF) break- even in five years from the launch.
SSTL operates with stiff competition from established CDMA players like Anil Ambani's Reliance Communication (BSE:532712), Tata Teleservices (BSE:532371). It has roughly one per cent marketshare now.
Rosanov said SSTL should be able to cover all the 22 circles by end of the year. At present, it has 4 million subscribers from 11 circles.
Though the company does not give projections on future subscriber acquisitions, Rosanov said by the time a company becomes EBIDTA positive one needs to have roughly 30 million subscribers. Most of that will be from the voice.
To reach the net profit level, he said the key variable is successful data service.
SSTL has tied up with more than 200 operators across 90 countries to offer SMS services to its customers.
Ecommerce Journal: eBay has fully launched in Russia
March 26, 2010 - 4:21am
Online marketplace company eBay has at last opened its local website for Russian users. The ecommerce giant has launched the system of international shopping eBay International Market (eIM). The company has translated not only the searching and lot interface into Russian, it also translated customer support and personal user area.
According to eBay officials the eIM system has been initially tested in Russia, Czech Republic, Denmark, Greece, Norway and Sweden since 2009. Over the 6 months of the operation the number of international orders in these countries has increased by 50% while the registrations rose 60%.
Meantime the popularity in Russia is even more. The number of orders here increased 120% while the registrations rose 140%.
It should be noted that the company converts all the prices into rubles including the shipping costs.
March 25, 2010
Russia Profile: Big Breaks for Big Business
By Tai Adelaja
Russia Profile
The New Bill May Ease the Tax Burden on Large Holdings, but Smaller Firms Will Still Suffer from the Exacting Transfer Pricing Rules
Too-big-to-fail Russian companies may soon get one more reason to celebrate: a new law on a consolidated taxpayer regime is in the offing. This week, Russia’s Ministry of Finance completed work on a draft bill to introduce a consolidated taxpayer regime, which could bolster holdings wanting to ease the profit tax burden and provide them with an alternative to transfer pricing rules. The bill, which is currently being reviewed by the Justice Ministry, is expected to be submitted to the State Duma within weeks.
If the bill passes all legislative hurdles it will substantially simplify Russia’s horse-and-buggy tax codes by treating a group of wholly owned or majority-owned companies, such as Gazprom or Rusal, as a single entity for tax purposes. Under a consolidated tax regime, a holding company should be able to pay reduced tax on profits by citing losses of an entity within the group, which can then be used to reduce taxable profits for the whole group.
Many countries including the United States, France, Australia and New Zealand have already adopted a tax consolidation regime with varying degree of modification. And countries like the United Kingdom, which has no such regime, have a system of group relief that allows for the profits of one group of companies to be reduced by the losses of other companies within the group.
Legislators are already deliberating over the transfer pricing bill, which regulates transactions within a group of companies, after several futile attempts by the Ministry of Finance to bring the regulation in line with international standards. Tax experts say that both the draft bill on a consolidated taxpayer regime and the new transfer pricing regulations must be approved together “because there are many cross-references in both.” Both bills are expected to become effective on January 1, 2011.
Transfer pricing rules were first introduced in Russia in 1999, but experts have since criticized the “arm’s length” concept as immature, saying its lack of clarity contributed to the infamous Yukos tax evasion case that eventually led to the downfall of the oil giant. “The transfer pricing rules affect not just transactions within multinationals, but also business operations within resident holding companies, especially those dealing with the exploration of natural resources,” said Andrei Tikhonovsky, the deputy director of the Committee on Taxation within the Russian Committee of Industrialists and Entrepreneurs (RSPP). “The RSPP will be asking for a two-year transition period before the law could become fully operational,” he said.
Coming at a time of economic downturn, the new law on a consolidated taxpayer regime can give a fillip to holding companies by defining a level playing field and jumpstarting recovery and growth through possible profit tax reductions, tax experts said “Even in this period of economic downturn, the law can be useful for such big taxpayers because it would allow them to consolidate both the losses and profits of various entities in the same group,” said Roman Bilyk, Senior Associate at Baker & McKenzie law firm. “If some entities within a group experience bad time and make losses, such losses can be offset within the same group by applying the new rules on consolidated taxpayer regime.”
The Finance Ministry said the new regulation could benefit as many as ten to 20 large Russian holdings with assets over 1 trillion rubles ($33.9 billion). "One of the key advantages for the group of companies consolidated for tax purposes is that losses in one group company can be used to reduce the taxable profits within the group. At the same time, any losses incurred by participants prior to the creation of a consolidated taxpayer [regime] will be ‘lost’ for tax purposes. In addition, any losses incurred by a consolidated taxpayer participant in transactions with other participants will also be ‘lost’ after exiting the group,” said Natalya Kuznetsova, a partner in the International Taxation Services Department at PricewaterhouseCoopers in Russia.
“Another advantage could be that transactions between companies consolidated for tax purposes could be done without triggering profits tax. The consolidated taxpayer regime does not cover Russian VAT. Therefore participants of a consolidated group will have to account for Russian VAT on their intra-group transactions, provided these are subject to Russian VAT,” Kuznetsova added.
In anticipation of the new law, some holding companies, including Rusal and TNK-BP, are already positioning themselves to gain strategic advantages that the new bill offers, Tikhonovsky said. TNK-BP’s spokeswoman Marina Dracheva said that while the company’s policy does not permit comments on draft bills, the company certainly welcomes any measures taken by the government to help the industry to develop. “Since the crisis started, the government has moved to adjust various regulations affecting the way business is conducted, with a view to facilitating transactions,” Dracheva said. “We would certainly welcome any legislation that will help the development of our greenfields [projects] in Siberia and those located in other remote areas.”
Rusal press office declined to comment, citing the company's rules that forbid comments on unconcluded government bills.
But the Russian Union of Industrialists and Entrepreneurs, the country's largest business lobby, has strongly criticized the draft bill, saying that its high financial threshold would make the law benefit only a handful of companies while leaving others vulnerable to the more draconian transfer pricing rules. “We indeed believe that the plank is too high. Only about five or maybe ten companies can expect benefits from the bill. That means that all other companies will fall under the transfer pricing regulation, which would create big problems for those companies wanting to determine market prices within a holding company,” Tikhonovsky said.
One other contradictory aspect of the new bill, he said, is that financial institutions such as banks and insurance companies can form a consolidated holding company even while the high threshold effectively trumps them. “With a possible exception of Sberbank, we would never have such holding companies,” Tikhonovsky said. “Meanwhile, all other companies – banking, investment and insurance companies – are affected by the sweeping transfer pricing rules.” The lobby group said that it is working in tandem with the Ministry of Economic Development to push for amendments to the draft bill, in order to make the new regime more applicable to not-too-big companies willing to consolidate, Tikhonovsky said.
In addition to the 1 trillion rubles worth of assets, the draft bill stipulates that revenues of companies that decide to form a consolidated group must not be less than 100 billion rubles, and tax assessment for the year must be no less that 15 billion rubles. Other stringent measures include a requirement that consolidation will only be possible if there is at least 90 percent direct or indirect ownership relationship between the companies forming the group “The draft bill on consolidated taxpayer regime contains very strict criteria. It will apply to a very small number of the largest companies such as Gazprom, major oil and gas companies and metallurgical companies,” Bilyk said. “Since the idea of the draft bill is to ensure that many companies can come out of the transfer pricing regulations for the domestic intragroup transactions by consolidating, establishing a very high threshold is not the right approach.”
A new consolidated regime would benefit domestic companies only if they have the opportunity to become a holding company, Bilyk said. “This is why the criteria should be less stringent, allowing the new tax regime to apply to more taxpayers to avoid applying transfer pricing rules to them.” Bilyk noted however that by limiting the number of taxpayers potentially eligible for the consolidated taxpayer regime, the Ministry of Finance probably wants to test the waters, hoping eventually to relax the rules when the law proves workable. “A consolidated taxpayer regime is going to require much more human resources and administrative efforts from the tax authorities to implement,” Bilyk said. “This may explain why the Finance Ministry prefers to tread more cautiously at the initial stage.”
Activity in the Oil and Gas sector (including regulatory)
Reuters: Russia could see East Siberia oil duty from 2011-report
Fri Mar 26, 2010 6:11am GMT
MOSCOW, March 26 (Reuters) - Russian oil exports from East Siberia will stay duty-free this year, but a tax may be levied in 2011 costing Rosneft (ROSN.MM), Surgut (SNGS.MM) and TNK-BP (TNBPI.RTS) over $2 billion, Vedomosti daily reported on Friday.
The business newspaper quoted a government official and an oil company source as saying the proposal was discussed at a working group between ministries and business representatives but has yet to be reviewed by the finance and energy ministers.
A final decision on duties for East Siberian oil is one of the most eagerly awaited by the Russian stock market this year as it can either spur or depress the stock price of companies concentrating on the region.
A total of twenty-two fields in the region, including state-run sector leader Rosneft's giant Vankor deposit, last year won exemption from paying export duties - a key source of budget revenues for the world's largest oil producer.
But the finance ministry is concerned that the tax break will drain billions of roubles from state coffers.
It has proposed that the zero duty rate be replaced by a uniform levy on excess profits or other taxes while the energy ministry has insisted on keeping the current scheme.
The ministries have to agree by April 15 on the duty that will be applied in May, Vedomosti wrote. (Reporting by Maria Kiselyova; Editing by Michael Urquhart)
Upstreamonline: Russian oil ‘duty free till 2011’
Russian oil exports from East Siberia will stay duty-free this year, but a tax may be levied in 2011, a local newspaper reported.
News wires 26 March 2010 08:10 GMT
The change could cost major producers Rosneft, Surgut and TNK-BP over $2 billion, the Vedomosti daily reported today, according to Reuters.
The business newspaper quoted a government official and an oil company source as saying the proposal was discussed at a working group between ministries and business representatives but has yet to be reviewed by the finance and energy ministers.
A final decision on duties for East Siberian oil is one of the most eagerly awaited by the Russian stock market this year as it can either spur or depress the stock price of companies concentrating on the region.
A total of twenty-two fields in the region, including state-run giant Rosneft's giant Vankor deposit, last year won exemption from paying export duties - a key source of budget revenues for the world's largest oil producer.
But the finance ministry is concerned that the tax break will drain billions of roubles from state coffers.
It has proposed that the zero duty rate be replaced by a uniform levy on excess profits or other taxes while the energy ministry has insisted on keeping the current scheme.
The ministries have to agree by 15 April on the duty that will be applied in May, Vedomosti wrote.
Published: 26 March 2010 08:10 GMT | Last updated: 26 March 2010 08:10 GMT
BarentsObserver: More Arctic fields for Gazprom, Rosneft
2010-03-25
The two state-controlled companies Gazprom and Rosneft expect federal authorities to give them another 14 licenses to offshore hydrocarbon fields, the Russian Ministry of Natural Resources confirms.
Talking to journalists in St. Petersburg this week, Deputy Minister of Natural Resources Sergey Donskoy said that Gazprom now is applying for 7-8 new field licenses, while Rosneft applies for 5-6 licenses.
The applications are now handled by the Agency of Mineral Resources (Rosnedra) and there is “very small chances” that the companies will not get their applications approved, news agency RBK reports.
Mr. Donskoy did not specify in which parts of the country’s shelf the fields are located.
According to current Russian legislation, only state companies with offshore experiences are entitled to own offshore field. That paves the way for Rosneft’s and Gazprom’s exclusive right to develop the country’s shelf.
Read more - RBK.ru
Cisoilgas: Energy efficiency: Russia’s hidden reserve
By Adam Newman | 03/24/10 - 17:02
Calls for energy efficiency and environmental friendliness in the Russian oil and gas sector once again dominate headlines this week. Russian oil majors may be world leaders in terms of production volumes, but this week's visit by President Dmitry Medvedev to Western Siberia, country's key oil producing region, has highlighted the fact that outdated technology and old soviet equipment still stand in the way of making efficient use of Russia's huge hydrocarbon resources.
At a meeting of the Commission for Modernization and Technological Development in Khanty-Mansiysk, Medvedev pointed out that Russia's further development and competitiveness rests upon two concepts - energy efficiency and energy conservation, and improvements in these directions must be a strategic and a long-term goal. He also proposed using foreign technology and expertise to promote energy efficiency in Russia, inviting foreign specialists and businessmen for that purpose, ITAR-TASS reports. "We cannot and must not use only Russian research and ideas", Medvedev said. "Exclusive reliance on one's own resources has never brought success. We must draw experienced and highly qualified experts and businesses from around the globe."
Prior to the meeting Medvedev took part in the ceremony of launching a new gas turbine power plant at Priobskoye oil field operated by RN-Yuganskneftegaz, a subsidiary of Russia's largest oil company Rosneft. Being constructed in less than eight months, this 315 MW power station runs solely on associated petroleum gas (APG) which was previously burned in flare stacks and is the largest power station of its kind in Russia. It's precisely the rational utilization of APG that Russian government considers as a major step towards energy conservation in the oil and gas sector.
Billions up in flames
Gas flaring during oil production is harmful to both - the ecology (due to CO2 emissions released into the atmosphere) and the economy. According to a recent report by the Accounts Chamber of the Russian Federation, seven largest oil companies (Rosneft, LUKOIL, TNK-BP, Gazprom Neft, Russneft, Bashneft and Slavneft) flared 19.96 bcm of gas in 2009 which equals annual gas consumption of Austria, Czech Republic and Switzerland combined. At domestic gas prices this figure translates into 38.3 billion rubles (or US$1.3 billion) of lost revenues but quickly becomes US$5.7 billion when using the average price of Gazprom's gas exports to Europe. Clearly, utilizing this gas can result not just in vast emission cuts, but also in increased gas sales.
In order to reverse the situation, at the beginning of last year Russian Prime Minister Vladimir Putin signed a decree setting the target of 95 percent APG utilization by 2012. As a result, a number of companies announced major investment and modernisation programmes in order to meet this target. Surgutneftegas, the country's fourth-largest oil producer, is currently leading the way. According to its president Vladimir Bogdanov, 50 out of company's 55 oilfields already have 95 percent APG recovery rate but further 8.1 billion rubles (US$270 million) is to be spent in 2010 to reach the magic figure on all fields by 2011.
Tatneft has also developed and approved a programme of action for the rational utilization of APG up to 2013, which targets 97.8 percent APG recovery in 2010. Rosneft and LUKOIL with much lower APG utilization rates (approximately 68 percent and 80 percent respectively) also plan major development programmes to meet the deadline.
Even though these efforts are encouraging, the question remains whether all Russian companies will be able to reach the 95 percent target in two years time. Recently, German Khan, Executive Director at TNK-BP, also pointed out that the APG utilization law does not consider greenfield structures. "It is not always economically viable to set up an APG utilization infrastructure at the initial stage of operation of such fields due to their process and subsurface specificities", he said recently, arguing the need for an amendment to the law.
Gazprom
March 26, 2010 11:47
Interfax: Gazprombank, Credit Agricole to help NOVATEK select Yamal liquefied gas partners
MOSCOW. March 26 (Interfax) - NOVATEK (RTS: NVTK) has brought Gazprombank and Credit Agricole CIB on board as consultants in the selection of foreign partners for the Yamal LNG (liquefied natural gas) project, a NOVATEK spokesman told Interfax.
NOVATEK has already received indicative project proposals from a number of Western companies, he said. The company plans to determine who its partners will be before the end of the year.
Initial projects are that gas extraction and LNG production at the Yuzhno-Tambeiskoye deposits under Yamal LNG could begin in 2016, the company spokesman said.
In May of last year, NOVATEK struck a deal to buy 51% of the stock in Yamal LNG from oil trader Gunvor's owner Gennady Timchenko for $650 million. Yamal LNG holds the license to the Yuzhno-Tambeiskoye deposits, which has C1+C2 (Russian classification) reserves of 1.26 trillion cubic meters of gas and 51.6 million tonnes of gas condensate.
The company also secured a three-year option on another 23.9% of shares, which it plans to use to attract partners into the project.
Gazprombank holds the blocking stake in Yamal LNG. However, a governmental foreign-investment oversight commission approved the purchase of the blocking interest in the project by structures associated with Pyotr Kolbin, co-owner with Timchenko of the trader Surgutex.
Cf
Dow Jones: Gazprom Urges Market Pricing For Gas Sales In Russia –Vedomosti
DOW JONES NEWSWIRES
Russian monopoly OAO Gazprom (GAZP.RS) hopes to begin in 2011 a three-year process to align prices of natural gas sold to domestic customers with those of exports, business daily Vedomosti reports Friday.
Gazprom has long complained that state subsidies to customers within Russia keep gas prices artificially low and that it needs to make domestic and international sales "equally profitable."
On Thursday, it presented a plan at a meeting with Russia's Energy and Economic Development ministries and the Federal Tariff Service.
To reach its goal of market-priced sales at home, Gazprom wants to phase in a subsidy-reduction formula from 2011 through 2013, company spokesman Sergei Kupriyanov told Vedomosti. The formula would likely be based on export taxes charged to the company's European customers, he said, with domestic prices starting to rise next year and reach parity with export prices, excluding transportation costs, by 2014.
"In order for the formula to start to work as we want, it was made clear that in 2014 we will get to equal profitability, and that we could take that into account in contracts with consumers," Kupriyanov said.
Representatives of the Energy Ministry and the tariff service said their agencies hadn't received Gazprom's draft proposal, Vedomosti says, while the Ministry of Economic Development didn't respond to the newspaper's request for comment.
Newspaper Web site: vedomosti.ru
|The Financial: Gazprom Links Natural Gas Price For Ukraine With Volumes Of Imports To Ukraine |
| |
|26/03/2010 10:56 (00:42 minutes ago) |
|The FINANCIAL -- Russia's Gazprom gas monopoly links the natural gas price for Ukraine with the volumes of imports to Ukraine . |
Ukrainian News learned this from a statement by the press service of the Cabinet of Ministers of Ukraine concerning the results of a meeting between Prime Minister Mykola Azarov and Gazprom CEO Aleksei Miller.
"Aleksei Miller noted in particular that the gas price for Ukraine will depend, among other things, upon the volumes of imported gas," reads the statement.
In other respects the press release of the Cabinet of Ministers is virtually the same as a statement made by the press service of Gazprom.
It reads that Azarov and Miller discussed the course of execution of the long-term contracts on gas supplies and the transit of Russian gas via Ukraine and the prospects for the development of the bilateral cooperation in the gas sector.
The sides also considered a question of sufficient natural gas supplies into the Ukrainian underground gas storage facilities, so as to secure reliable transit of the Russian natural gas to Europe during the 2010/2011 winter season.
Participating in the meeting was also Ukrainian Fuel and Energy Minister Yurii Boiko and Gazprom Deputy CEO/Gazpromexport director general Alexander Medvedev.
As Ukrainian News earlier reported, the effective gas contracts envisage that the import natural gas price is pegged to the quotations for fuel oil and gas oil from Platts.
The import gas price for Ukraine changes each quarter.
Gazprom has said the Naftohaz Ukrainy national oil and gas company takes less natural gas than provided by the gas supply contract.
Ukraine planned to import 27 billion cubic meters of natural gas in 2010.
Financial Times: Energy: Progress frozen
By Catherine Belton and Isabel Gorst
Published: March 25 2010 20:13 | Last updated: March 25 2010 20:13
| |
|Gazprom has spent heavily on developing infrastructure to serve its Bovanenkovo gas field, but |
|production has been pushed back and its planned 400m tower in St Petersburg (depicted above) has yet to |
|be started |
Last April, far above the Arctic Circle, on a peninsula so remote that locals call the mainland “earth”, Vitaly Arefyev watched workers drill through the tundra. Their efforts were part of a drive by Gazprom, Russia’s state-controlled energy giant, to develop a gas field large enough to supply Europe’s needs for decades to come.
“Gazprom is ready to start producing as soon as Europe is ready,” Mr Arefyev, who had run the vast Bovanenkovo gas field since 1992, proclaimed sat the time. “The question is whether the world is ready for us.”
Less than a year on, it seems the world is ready to wait. Many of the workers building Bovanenkovo back then have since been transferred; work is still going on but much of the field lies in limbo, a symbol of a shift in global gas markets that has transformed a looming shortage into a glut.
Gazprom has gone from pretensions of global dominance when Alexei Miller, its chief executive, predicted it would become the world’s most valuable company with a capitalisation equivalent to $1,000bn (€750bn, £671bn), to battling to survive in a market where buyers, not suppliers, call the shots. “It is wake-up time for Gazprom,” says one gas industry executive in Moscow. “The argument for rapidly growing demand has gone.”
As Russia’s gas export monopoly, Gazprom was the most potent and best-known expression of the country’s resurgence under Vladimir Putin – former president, now prime minister – who consolidated political and economic power through state-controlled industrial giants. But now questions are being raised about whether the country’s biggest company can adapt to a global drop in demand that kicked in as the economic crisis hit, sending energy prices down.
The uncertainty over its future position is being fuelled by a surge of liquefied natural gas coming into Europe, mostly from Qatar, while US markets are becoming self-sufficient through the development of alternative shale gas. Inside Russia it is facing pressure, too, as Igor Sechin, the powerful deputy prime minister, moves in. “Sechin is reviewing the structure of the gas industry and he looks to have Putin’s backing,” says another senior industry executive.
Battered on all fronts, Gazprom has delayed the launch of both Bovanenkovo and another flagship project, the vast Shtokman gas field in the Arctic, to 2012 and 2016 respectively. To add insult to injury, last month it was forced to renegotiate export contracts with leading European energy groups to offset competition from cheaper LNG. While Gazprom says it is confident demand for Russian gas will return by 2013, some believe bigger blows are yet to come: the downward pressure on revenues is set to increase with spot prices set to fall further this summer, while shale gas could one day be produced in Europe too. “This is the beginning, not the end,” says Jonathan Stern of the Oxford Institute of Energy Studies.
How the government deals with Gazprom could ultimately influence Russia’s entire course. During Mr Putin’s presidency it became a tool for exerting Russian clout in a series of politically tinged stand-offs with neighbouring Ukraine – demonstrating the country’s power as a provider of about one-quarter of the European Union’s gas needs. In a bid for even greater muscle, the company began working on North Stream and South Stream, two pipelines that bypass Ukraine, and sought to lock in central Asian gas with contracts to buy the fuel at market price for years to come.
But this empire building is in question as Gazprom grapples with lower revenues even as it heads into an era when it must increase investment not just on challenging fields such as Bovanenkovo as its existing production falls but on the long-promised pipelines. “The chasm opening up between what Putin wants to use Gazprom for and what Gazprom can actually deliver is more fundamental than we ever thought,” the senior gas industry executive says.
The pressure on Gazprom, where net income is expected to have fallen 23 per cent last year, threatens to squeeze ever harder the finances of the Russian state, for which the company has provided about 8 per cent of budget revenues. The changes in the gas market are “an important signal for Russian policymakers to consider diversifying the economy now, before it is too late”, says Fatih Birol of the International Energy Agency, the west’s watchdog on the sector.
Gas flows across Europe
FT interactive graphic: Schematic map showing gas movements across Europe
Ever since Mr Sechin became deputy prime minister in charge of the energy industry, pressure has been mounting on Gazprom to cede more of the domestic market to independent gas producers. Mr Sechin, who also serves as chairman of Rosneft, a state oil major that has long been eyeing the gas industry, supports a government proposal for legislation that would force Gazprom to cede its pipeline monopoly and grant independent access to the network, people familiar with the situation say.
That effort stalled after the financial crisis hit. But Rosneft and Novatek, another independent producer seen as close to Mr Sechin, have been making gains in the domestic gas market as Gazprom production falls, freeing up capacity in the pipeline network. The growth of Novatek, now Russia’s second-largest gas producer, could signal bigger changes.
It is not yet clear whether the rise of Novatek – where output grew in volume by more than 11 per cent last year even as that of Gazprom fell 18 per cent – is part of a Putin strategy to boost competition in order to increase Gazprom’s efficiency or a distribution of assets among the clans who jostle for Kremlin influence. “It might look messy but they are creating another big independent to rival Gazprom. Putin likes to keep tension among the clans. It is almost Stalinesque,” says one industry executive. “Will the government go for increased competition like with Novatek, will it be a restructuring of Gazprom, will there be a change in some of Gazprom’s management, or further industry consolidation?” he asks. The only thing that is clear is that “if nothing happens, there will be a further demise”.
BOVANENKOVO GAS FIELD
‘Not one rouble, not one brick, belongs to anyone but Gazprom’
The Bovanenkovo gas field on the remote Yamal peninsula in Russia’s far north exemplifies the country’s transition from communism, through the chaos of the 1990s, to state-dominated capitalism under the leadership of Vladimir Putin, writes Catherine Belton. It is a story intimately bound up with the evolution of Gazprom, the field’s owner, from monolithic Soviet ministry to Russian export monopoly.
One of the largest fields in the world, with 4.9trn cubic metres of reserves, Bovanenkovo is a key part of Russia’s strategic significance as a supplier of more than 25 per cent of Europe’s gas needs. The field is today considered a mother lode of the Continent’s supplies.
It was a different story in the first days of development in 1987, when engineers from the mighty Soviet ministry of gas camped out and began drilling. As the old order crumbled and the ministry was transformed into Gazprom, funding trickled away – along with the local police and all but 200 staff.
They were tense times. Vitaly Arefyev, then chief engineer at the Gazprom affiliate that runs the field, had to deal not only with bandits who, he says, periodically turned up in his office but also with disputes among the workers. All this as well as guarding the billions of roubles worth of equipment. Far above the Arctic Circle and surrounded by water that froze in winter and was only partly navigable in summer, logistics were also a problem. Mr Arefyev recalls that in 1996 he arranged for a nuclear submarine idling in the port of Arkhangelsk to deliver 4 tonnes of sugar.
In the 1990s, Mr Arefyev oversaw the drilling of 65 wells with minimal funds. “We had to make sure construction was continuing and people’s lives were looked after,” he says. “Thanks to Gazprom, we managed through the storm of political change in the 1990s, and none of the property was handed over. In Yamal, not one rouble, not one brick, belongs to anyone but Gazprom. I had to do this for them.”
However, since Gazprom decided three years ago to prioritise the field’s development and began pouring in tens of billions of roubles to update the infrastructure, these wells have been mothballed.
Though investment has returned, and the police with it, the technical challenges remain just as vast. To ship gas from the field, a pipeline must yet be laid beneath the icy waters of the Baydaratskaya bay. To keep the earth – several metres of layered tundra and ice – cold enough to stop buildings from collapsing into the ground in summer, engineers must bury “freezer” rods in the ground.
It is no surprise that the Gazprom workers who pioneered Bovanenkovo’s development in the face of such challenges are local heroes. But the field’s fate will continue, as it has always done, to depend on diktat from Moscow and on the tides of global gas markets far beyond its control.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- causes of the civil war ms mayberry
- chapter 1 objects
- russia wikileaks
- submission dr203 royal australian armoured corps
- aiken high school njrotc
- international acclaim for martin rees s our final hour
- spell of intrigue
- latin derivatives
- all hell s breaking loose on the higher intellect
- hawaii s big six judy vorfeld
Related searches
- 10 facts about russia s history
- facts about russia for kids
- videos about russia for kids
- learn about russia for kids
- map of russia for kids
- russia kids learning tube
- russia for kids printables
- information about russia for kids
- russia and central asia map
- german soldiers in russia ww2
- china and russia warn us
- iran china russia news