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Russia 110217Basic Political DevelopmentsRussian envoy questions the worthiness of prosecuting Sudanese president - The Russian special envoy to Sudan Mikhail Margelov said on Wednesday that his government does not see any use of insisting on prosecuting president Omer Hassan Al-Bashir who is wanted by the International Criminal Court (ICC) on charges of war crimes and genocide he allegedly orchestrated in Darfur.King of Spain to visit Russia Feb 24-25Vladimir Putin and Eduard Kokoity, discussed the restoration of South Ossetia - Kokoity also said the work of Russian "Green Berets", which helps to protect the Ossetian-Georgian border. Recently, they are equipped with three gates, fully equip them with modern technology.SECOND REGIMENT OF S-400 TRIUMPH AIR DEFENSE SYSTEMS TO BE DEPLOYED TO SHIELD MOSCOW IN MARCH - DEFENSE MINISTRY?AEROSPACE DEFENSE SYSTEM TO BE CREATED IN RUSSIA BY END OF YEAR - DEFENSE MINISTRYFour S-400 air defense systems to be deployed to shield Moscow in 2016-2020Russia to start building new air defenses by 2014 - The S-500 air defense system will be able to track and destroy ballistic missiles with ranges of up to 3,500 kilometers.Russia to Deploy Second S-400 Missile around Moscow Region - "The hand-over ceremony for the second S-400 will take place at the state firing range in Kapustin Yar from February 16 to 19," said Col. Vladimir Drik, spokesman for Russian Defense Ministry. Medvedev, Pope to discuss religious ties in Vatican - A Russian diplomatic source told RIA Novosti that a meeting between the head of the Russian Orthodox Church, Patriarch Kirill, and the Pope now appears "more realistic" than it did several years ago.Medvedev to visit Vatican to discuss interconfessional dialogueRussia, Italy sign agt on air freight transit to Afghanistan via Russia - The Rome agreement allows Russia’s airspace to be used as the so-called “northern corridor” that passes through Slovenia, Croatia, Hungary, Ukraine, Kazakhstan, Uzbekistan, and Turkmenistan, and is the most effective and economical route for material and logistical support to the Italian contingent in Afghanistan and serves as an alternative to the air route through the United Arab Emirates,” the Italian Foreign Ministry said in a communique. Russia, Italy ink several accords during Medvedev's visit Over 30 Italian cos in talks to participate in Russia’s SkolkovoSvetlana Medvedev speaks about VeniceKremlin: Russian-Italian talks - Talks between Dmitry Medvedev and President of Italy Giorgio Napolitano were held in Rome.Biden to visit Russia - The upcoming dates of this spring's visit by U.S. Vice President Joseph Biden and his wife Dr. Jill Biden have finally been set. They will visit Finland, Russia and Moldova during the week beginning March 7, 2011, says an official announcement by the White House. U.S., Russia to begin data exchange under New START in March - officialRussian specialists to inspect U.S. nuclear missiles U.S. to expand civilian nuclear cooperation with Russia - officialU.S. ready to discuss further arms reduction with Russia - officialRussia’s Regional Development Minister Viktor Basargin to visit Estonia, until February 18BELARUS AUTHORITIES SEEK TO TRIGGER ANTI-RUSSIAN SENTIMENTS USING SITUATION SURROUNDING TWO DETAINED RUSSIANS - RUSSIAN FOREIGN MINISTRYArmenia-Russia Relations: Deputy MFA listens to opposition party concerns - Deputy Minister of Foreign Affairs of Russia Grigoriy Karasin was in Armenia this week to discuss a broad agenda of Russian-Armenian relations. Besides meeting with representatives of the executive authorities, he also met with representatives of the legislature, including the opposition Heritage Party. RF border guards did not use weapons to stop transgressor ship - “The transgressor ship did not respond to inquiries, did not react to the legitimate demands of the border guard authorities to stop, the vessel was heading to the exit from the exclusive economic zone of the Russian Federation,” the Sakhalin coast guard department of Russia’s Federal Security Service (FSB) reported on Thursday. Russia to develop disputed Kuril IslandsRussia, China firms to jointly farm scallops off Japan-claimed isleChina's Trade Center Begins Operation in Russia - Speaking at a press conference, chamber chairperson Cai Guiru said about 70 percent of the construction of the center has been completed and 28 Russian enterprises have signed contracts with the center and stationed in the quarter.Slovenia and Russia commit to over 30 joint projects in many sectorsFirst An-148 deliveries to commence from 2012 summer - The first shipments of the Ukrainian-Russian Antonov-148 regional passenger jets to India may start in the summer of 2012. This information was made available at the just concluded AeroIndia 2011 air show at Bangalore.Belarus asks Russia for $9bn loan to build 2400 MW nuclear plantRussian hydro power to Finland, Norway - Northwest Russian electricity generator TGC-1 in 2010 exported a total of 1,3 TWh to Finland and Norway.Why Russia’s Agreement With Germany’s Rheinmetall Matters - From 2 Russians aboard sunk boat in Vietnam – EmbassyPutin to visit Krasnodar TerritoryRussian govt to discuss demographic policy concept up to 2025Bright minds talk modernization in SiberiaPutin killed democracy, opposition leader says - “Putin looks like a young Mubarak. He believes that his future will be better than Mubarak‘s future. I don’t think so,” said Mr. Nemtsov, who was speaking at a press conference at the European Parliament in Strasbourg, France.Domodedovo blast suspects convoyed to Moscow -"The suspected accomplices of Magomed Yevloyev, who committed the terrorist attack at Domodedovo, were convoyed to Moscow, where investigators have already started to work with them," the source said.Two blasts rock Dagestan’s KizlyarThe 8th inter-regional exhibition “Business in Dagestan-2011” to take place in Makhachkala Conflict in Dagestan Approaches the Level of Civil War – by Valery DzutsevMuslim Headdresses Test Faith, Tolerance - After twin attacks by?female suicide bombers killed 40 people in?the Moscow metro last March, media reports warned that women sporting a?Muslim headdress in?public may face verbal or even physical attacks.Marked as a terrorist - Those labeled "black widows" after last spring's metro bombing find it difficult to go on with their lives, especially as terrorist attacks continue.Europe's ATV-2 space freighter heads to ISS17 ? Search at Inteko related to embezzlement of 13 bln rubles from Bank of Moscow - Interior MinistryRussian police raid real estate tycoon's officeSearch of Inteko office is act of pressure - Baturina (Part 2)Auditing Chamber exposes major financial violations in MoscowMoscow Prosecutor suspends extremist Movement Against Illegal ImmigrationSobyanin says he needs time to win 'relaxed' Moscow's trustSobyanin admits Moscow has few mosquesMoscow does not need gay pride parades – SobyaninRussian Press at a Glance, Thursday, February 17, 2011Jailed Oil Tycoon Khodorkovsky Is ‘Perfect Martyr’: Interview Roman Abramovich declares assetsKandinsky, forgery and Israeli connection - Did a talented Israeli gang manage to create a pseudo-new work of art by world renowned Russian painter Wassily Kandinsky, present it at a museum in Moscow without the con being exposed and then nearly sell it at an astounding price to an Italian collector?National Economic TrendsRussian rouble at new 9-month high on rising oilWeekly inflation slows to 0.2% Russia to auction off Dagestan Airlines on ThursdayBusiness, Energy or Environmental regulations or discussionsBRIEF-Moody's:Russian banks' profitability likely to be restoredRussian banks' sound profitability likely to be restored in 2011 Russian Central Bank Annuls Rabobank’s Operating License LONDON — Russian Railways plans to?sell at?least ?1 billion ($1.6 billion) of?bonds this year, becoming the?first Russian issuer in?the British currency since 2007, and?will start presentations to?potential investors within the?next two months, chief executive Vladimir Yakunin said Wednesday, adding that the?company has no plans to?borrow in?Asian currencies. (Bloomberg)Vneshekonombank is seeking an?unsecured loan of?$1.5 billion to?$2 billion for?more than three years at?a lower interest margin than the?150 basis points negotiated by?Sberbank for?a three-year deal in?December, three people with knowledge of?the situation said Wednesday. (Bloomberg)Bank of Moscow Owners May Sell Stake at Auction, Vedomosti Says Shareholders of Bank of Moscow may auction their stakes Tycoon Kerimov becomes largest individual shareholder of VTBRussia tycoon Kerimov buys into VTB, eyes Sberbank-paperLebedev Sells Bank Stake to Son to Guard Assets, Kommersant Says Orascom CEO: Merger will not go through if not approved in March Russia's Solway confirms $3 bln nickel smelter investment in IndonesiaRusal Trails Alcoa With Owner’s $12.8 Billion Snub to Investors Baisarov buys 20% of Russian Copper Co (Part 2)AvtoVAZ Chooses Novolipetsk Steel Over Severstal, Vedomosti Says Russian car market seen 6th largest by 2020 – reportCherkizovo planning to build meat-processing plant in Kaliningrad region Serbia’s state-run drugmaker Galenika announced plans to build a plant south of MoscowThe Kremlin vs. Big Pharma - Usually, companies outsource to save money. But that doesn't explain the recent decision by some of the world's biggest drug makers to build factories in Russia. Building a factory in Russia is more expensive than most anywhere else.Activity in the Oil and Gas sector (including regulatory)SECHIN SUGGESTS RAISING THRESHOLD FOR PETROLEUM PRODUCT TRADING ON BOURSES TO 15% OF VOLUMES PRODUCED BY INDIVIDUAL REFINERIES?RUSSIAN OIL COS FINED OVER 15 BLN RUBLES IN FIRST AND SECOND WAVES OF INVESTIGATIONS - FAS CHIEF?PUTIN DEMANDS THAT PUBLIC SECTOR ORGANIZATIONS BUY FUEL ON EXCHANGES?PACE OF DECLINE IN FUEL PRICES ABSOLUTELY UNACCEPTABLE - FAS CHIEFPACE OF DECLINE IN FUEL PRICES ABSOLUTELY UNACCEPTABLE - FAS CHIEFRostechnologii's Shugayev could join Rosneft board of directorsTotal joins the queue outside Rosneft's boudoirAlliance Oil boosts its reserves base by 21% GazpromEni and Gazprom sign new agreementsGazprom Neft in Slovenia Gazprom: Nord Stream deliveries will not result in drop in gas transit across Ukraine and BelarusGazprom gives pipeline access to all independent gas producers - MillerPipeline ensures necessary gas supply – by Sergei Kuprianov------------------------------------------------------------------------------------------Full Text ArticlesBasic Political DevelopmentsRussian envoy questions the worthiness of prosecuting Sudanese president 16, 2011 (WASHINGTON) – The Russian special envoy to Sudan Mikhail Margelov said on Wednesday that his government does not see any use of insisting on prosecuting president Omer Hassan Al-Bashir who is wanted by the International Criminal Court (ICC) on charges of war crimes and genocide he allegedly orchestrated in Darfur.Margelov made the remarks to Itar-Tass news agency following a meeting he held with ICC prosecutor Luis Moreno-Ocampo in the Hague today.He further said that the South Sudan referendum that took place last month demonstrated the willingness of Bashir to reach compromises for the sake of normalizing the situation in the country and make it conform with international standards of democracy.Nearly 99% of Southern Sudanese voters opted for the creation of their own state separate from the North. The ruling National Congress Party (NCP) head by Bashir announced its recognition of the outcome, a step which earned the Sudanese leader praise by the international community despite the outstanding warrant for him.The Russian senator also said that mechanisms for executing the arrest warrant for Bashir remain unclear. However, he fell short of calling for a UN Security Council (UNSC) resolution deferring the indictment as demanded by Sudan and the African Union (AU).Margelov was quoted by the news agency as saying that he agreed with Ocampo on coordinating their steps on the matter of the warrant.This month Sudanese ambassador to the United Nations called on the UNSC to reward Bashir by dropping the charges against him.Russia has voted in favor of UNSC resolution 1593 in March 2005 referring the situation in Darfur to the ICC even though the veto wielding member is not a signatory to the court.The Russian envoy will travel to Sudan this week to take part in the meetings of P-5 special envoys along with the European Union for talks on Darfur hosted by UNAMID.U.N. officials where U.N. officials estimate that as many as 300,000 people have died since 2003 but Khartoum puts the death toll at 10,000.(ST)In Russian: of Spain to visit Russia Feb 24-25, February 17 (Itar-Tass) - King of Spain Juan Carlos I will pay a working visit to Russia on February 24-25 at the invitation of RF President Dmitry Medvedev, the Kremlin press service reported on Thursday. Queen Sofia will arrive together with Juan Carlos I. “On February 25, the two heads of state will take part in the opening ceremony of the Prado in the Hermitage exhibition that will give a start to the Year of Spain in Russia and Year of Russia in Spain events,” the Kremlin press service noted. “The exhibition of the treasures of the Prado Museum at the State Hermitage will open the Year of Spain in Russia, and the corresponding exhibition in Madrid will conclude the events of the year,” Hermitage Director Mikhail Piotrovsky announced earlier. The Prado in the Hermitage (25 February to 29 May 2011) will present in Saint Petersburg a group of 66 paintings from the Spanish, Italian and Flemish Schools that will allow Russian visitors to appreciate the historical and artistic importance of the Prado’s collections. At the end of this year, the Prado will present Treasures from the Hermitage (8 November 2011 to 26 March 2012) with 170 items (including classical art, decorative objects, paintings, sculptures and drawings) loaned from the Hermitage. They will in turn reveal the variety and breadth of that museum’ s collections, which run from the 5th century BC to the 20th century. GOOGLE TRANSLATIONVladimir Putin and Eduard Kokoity, discussed the restoration of South Ossetia consequences of the Georgian invasion of South Ossetia mostly eliminated. The first stage of recovery is complete. The president of the republic, Eduard Kokoity said at a meeting with Russian Prime Minister Vladimir Putin. Prime Minister asked how are the restoration work. South Ossetian leader said that the assistance that Russia has allocated enough that they were going at a good pace. Renovated or rebuilt about 800 buildings - mostly houses, kindergartens, schools, health clinics. Now we come to the forefront of socio-economic transformation. Kokoity also said the work of Russian "Green Berets", which helps to protect the Ossetian-Georgian border. Recently, they are equipped with three gates, fully equip them with modern technology.02/17 11:03 ? SECOND REGIMENT OF S-400 TRIUMPH AIR DEFENSE SYSTEMS TO BE DEPLOYED TO SHIELD MOSCOW IN MARCH - DEFENSE MINISTRY? 11:02 ? AEROSPACE DEFENSE SYSTEM TO BE CREATED IN RUSSIA BY END OF YEAR - DEFENSE MINISTRY 11:36 ? Four S-400 air defense systems to be deployed to shield Moscow in 2016-2020 to start building new air defenses by 2014 17/02/2011Russia will start serial production of its next-generation missile system in 2014, an aerospace defense chief said on Thursday.The S-500 air defense system will be able to track and destroy ballistic missiles with ranges of up to 3,500 kilometers."[The S-500] is currently in development. By 2014, it should enter into serial production," aerospace defense strategic commander Lt. Gen. Valery Ivanov said."This system will be able to defend territories at heights of up to 50 kilometers," he added.Russia's aerospace defense troops currently use S-300 and S-400 systems.More air defenses will be deployed around the capital Moscow, Ivanov said.KAPUSTIN YAR, February 17 (RIA Novosti)Russia to Deploy Second S-400 Missile around Moscow Region ??? 2011-02-17 05:43:49 The strategic command of Russia's Space Defense Forces has received its second unit of S-400 Triumph missile systems and would deployed the system in the surrounding region of Moscow, local reports said on Wednesday. So far, the forces have already deployed a unit of S-400 at Electrostal, a city near Moscow. "The hand-over ceremony for the second S-400 will take place at the state firing range in Kapustin Yar from February 16 to 19," said Col. Vladimir Drik, spokesman for Russian Defense Ministry. "The system uses a range of missiles, optimized for engaging ballistic and cruise missiles and hypersonic vehicles," Drik said. The S-400 system consists of two divisions, as each contains eight launch points. Every launch points could blast four missiles. The system, developed on the basis of S-300 missile system, has a maximum range of up to 400 km at an altitude of 40,000 to 50,000 meters.Medvedev, Pope to discuss religious ties in Vatican President Dmitry Medvedev will meet with Pope Benedict XVI for the first time on Thursday to discuss bilateral and religious ties, his aide Sergei Prikholdko said.The sides will discuss global affairs and cooperation within the framework of various international organizations.The aide to the Russian president also said the president and the Pontiff will discuss dialog between the Russian Orthodox and Roman Catholic churches.A Russian diplomatic source told RIA Novosti that a meeting between the head of the Russian Orthodox Church, Patriarch Kirill, and the Pope now appears "more realistic" than it did several years ago.He did not say, however, when or where such meeting would take place.Neither Pope Benedict nor his predecessor, Pope John Paul II, visited post-communist Russia.MOSCOW, February 17 (RIA Novosti)Medvedev to visit Vatican to discuss interconfessional dialogue, February 17 (Itar-Tass) -- Russian President Dmitry Medvedev will visit the Vatican on Thursday, February 17, for talks with Pope Benedict XVI and Secretary of State Cardinal Tarcisio Bertone. Medvedev’s wife, Svetlana, will accompany him during the visit. “This will be the first visit to the Holy See by a Russian leader since the establishment of full-fledged diplomatic relations in 2009,” presidential aide Sergei Prikhodko said. He recalled that Russia had raised the level of its representation in the Vatican to embassy. “The biggest part of the discussion will focus on philosophical matters,” the aide said. Among the topics for discussion he named “cooperation in international organisations, interaction between scientific and educational institutions, and work with young people”. “Medvedev and Benedict XVI will dwell specifically on the development of interconfessional dialogue,” Prikhodko said. He said that relations between the Russian Orthodox Church and the Roman Curia might also be discussed. A source in the Russian delegation told Itar-Tass that “prospects fore a meeting between the patriarch of the Russian Orthodox Church and the Pope are more real than several years ago” and “the atmosphere is also more conducive”. Russia has noted that “the dialogue between the two Churches has intensified and become more regular”, “reproaches can no longer be heard” and “Pope Benedict XVI is less politicised than John Paul II”, the source said. “During negotiations Russia and the Holy See plan to synchronise their watches on foreign policy issues, taking into account the closeness of their positions based on the priority of international law and moral principles in interstate communication,” Prikhodko said. The leaders will discuss “a new architecture of European security and bilateral interaction in international organisations such as the U.N., the Council of Europe, and the OSCE”, he said. “The heads of state will discuss cultural events to be held this year, specifically the lending of Michelangelo Merisi da Caravaggio’s painting “The Entombment of Christ” from the collection of the Vatican museums for an exhibition in Moscow, and the holding of the exhibition “Faberge. Holy Images” in the Vatican museums,” the aide said. As an example of good coordination between Russia and Italy on matters of culture and civilisation, Prikhodko mentioned the Lautsi v. Italy case, in which Russia acted as a third party in support of the Italian claim. In this case a parent (Mrs Soile Lautsi) successfully claimed that Italy’s administrative law requiring display of the crucifix in every State school classroom violated the right of parents to “to ensure [their children’s education] in conformity with their own religious and philosophical convictions” (Article 2 of Protocol 1 to the Convention, which the Court read in conjunction with Article 9). The sides will discuss the situation in light of the decision of the Grand Chamber of the European Court of Human Rights regarding the verdict in the case to be announced one of these days. Russia, Italy sign agt on air freight transit to Afghanistan via Russia, February 17 (Itar-Tass) -- Russian Foreign Minister Sergei Lavrov and Italian Defence Minister Ignazio La Russa have signed an inter-governmental agreement on air transit of arms, ammunition, military hardware, property and personnel via Russia in connection with Italy’s participation in the international reconstruction efforts in Afghanistan. The signing ceremony was held on Wednesday evening as part of Russian President Dmitry Medvedev’s visit to Italy. Lavrov, who had a short meeting with his Italian colleague Franco Frattini, is a member of the delegation accompanying the president. The Rome agreement allows Russia’s airspace to be used as the so-called “northern corridor” that passes through Slovenia, Croatia, Hungary, Ukraine, Kazakhstan, Uzbekistan, and Turkmenistan, and is the most effective and economical route for material and logistical support to the Italian contingent in Afghanistan and serves as an alternative to the air route through the United Arab Emirates,” the Italian Foreign Ministry said in a communique. The agreement will supplement the document signed during the seventh round of Russian-Italian inter-governmental consultations in the Russian Black Sea resort city of Sochi on December 3, 2010, which concerned railway transit. La Russa thanked the Russian government for cooperation and stressed the highest level of understanding and bilateral relations. Russia, Italy ink several accords during Medvedev's visit , 17.02.2011, Moscow 10:58:16.Russia and Italy have concluded several agreements during President Dmitry Medvedev's ongoing visit to Italy, the Russian president's press service announced.??????Russian oil company Gazprom Neft has signed an agreement to buy half of Italian energy company Eni's stake in the Elephant oil project in Libya. In addition, Russia's Vnesheconombank and Italian bank Cassa Depositi e prestiti have signed a memorandum of understanding.??????Apart from that, the Russian and Italian governments have concluded an agreement on the transit of Italian arms, military equipment and personnel across Russia's airspace to Italian troops in Afghanistan. Medvedev has also discussed with Italian Prime Minister Silvio Berlusconi pressing international problems, including revolutions and public unrest in certain Middle Eastern countries, as well as humanitarian and cultural cooperation, the press service said. Over 30 Italian cos in talks to participate in Russia’s Skolkovo, Feb 16 (PRIME-TASS) -- Over 30 Italian companies, including energy companies Eni and Enel, are in talks to participate in programs at Russia’s Skolkovo research and development center, Russian tycoon Viktor Vekselberg, the head of the project, told ITAR-TASS Wednesday.The Skolkovo research and development center, currently being created in the Moscow Region, has been touted as the Russian version of the U.S.’ Silicon Valley by the Russian government. End 16.02.2011 20:22Svetlana Medvedev speaks about Venice 17, 2011 08:40 Moscow TimeA center for the study of Russian culture and art will open in Venice in early March. This was reported by the Russian president's wife, first lady Svetlana Medvedev, at a meeting with Education Minister Maria Stella Jelmini of Italy.According to First Lady of Russia, "the city is inextricably linked through?character names with?cultural heritage of Russia, for example prominent names which figure in the city's history such as Igor Stravinsky and Joseph Brodsky have made it?a permanent outpost of Russian culture."Russian-Italian talks 16, 2011, 19:00 Rome Talks between Dmitry Medvedev and President of Italy Giorgio Napolitano were held in Rome.The Presidents gave special attention to cooperation in the humanitarian sector and to cultural cooperation between Russia and Italy, particularly the upcoming Year of Russian Culture and Language in Italy and Year of Italian Culture and Language in Russia, which will include over 500 planned events.Another topic during the talks was bilateral cooperation in security, gas and nuclear energy, and the financial sector.In addition, the sides exchanged views regarding current issues on the international agenda such as global security and the situation in North Africa and in the Middle East.Following the talks, Dmitry Medvedev and Giorgio Napolitano made press statements.Press statements following Russian-Italian talksPRESIDENT OF THE ITALIAN REPUBLIC GIORGIO NAPOLITANO (retranslated): Good afternoon, everyone,It was my great pleasure to meet with the President of the Russian Federation, Mr Medvedev, in an ever-stronger spirit of friendship.First, he and I finalised the programme for the Year of Russian Culture and Language in Italy, which will formally open today. This programme will include a rich variety of very interesting events, covering a range of areas. We perceive the development of cultural relations to be an extremely important aspect for expanding economic, diplomatic, and all other relations between our countries.Further today there will be meetings with the Government of Italy and we will oversee the signing of documents and important agreements concerning energy resources security and financial relations between our nations.We recognise that these issues of prime importance – including for international cooperation – go beyond our bilateral relations. And here, we are referring to the issues that will be discussed at the next G20 summit in Paris where we will channel our attention and utmost efforts toward overcoming the situation resulting from the global financial crisis that erupted throughout our planet in 2008.We also exchanged views on the role of cooperation between the Russian Federation and Europe, as well as between Russia and NATO. We talked about the NATO-Russia summit, which was held last month and which became a significant new move forward in the succession of step-by-step implementation of a transparent common anti-missile defence programme.As for Europe and the hardships that have affected the euro, I expressed my opinion and certainty that euro gains are inevitable and that Europe will not take any steps backward with regard to the euro. It can and must only take steps forward on the path toward integration – toward a more integrated, united Europe that can play an important role on the global arena and which needs maximum cooperation with the Russian Federation, because the challenges and threats ahead of us in many areas, concerning many matters, are common.We also discussed recent events on the international arena focusing on Tunisia, Egypt, and the overall picture we are seeing today in Northern Africa, which is also influencing the Middle East. We want to find joint solutions to these problems as well.We believe that many nations should follow the path declared by President Medvedev with regard to the Russian Federation, the path of modernisation and rule of law. Modernising economy, ensuring its consolidated growth, improving social fairness while respecting personal rights – all these are key aspects in overcoming or anticipating and preventing the tensions we are observing in certain countries today.Finally, during my conversation with President Medvedev, I was delighted to advise him that several days ago, the Cabinet and I signed a document on extending invitations to 68 heads of state and government to take part in celebrating the 150th anniversary of Italy’s reunification. This celebration will take place on June 2 in Rome and I have invited heads of state to attend it. It coincides with our national holiday, Republic Day.I very much hope that President Medvedev will accept my invitation and find time in his schedule to spend a day participating in our celebration devoted to this important event. It would be a very important step, allowing us to further strengthen cooperation and friendship between our two countries.Thank you, Mr President.PRESIDENT OF RUSSIA DMITRY MEDVEDEV: Colleagues, ladies and gentlemen,President Napolitano in his opening remarks spoke about practically everything we have been dealing with. He gave a very accurate and detailed report, which simplifies my task of course, though I would be happy to go once more over the subjects we discussed and the main positions we expressed.What did President Napolitano and I talk about? We noted that relations between Russia and Italy are not just very important in themselves, but are strategic for the European Union as a whole and its individual members to build a solid foundation for their ties with Russia. Italian businesspeople are very active in coming to our country, and our trade ties have increased substantially last year, as we both noted, and this is a sign that, first, European countries are emerging from the crisis, and second, mutual interest in developing joint business remains high.Three important documents will be signed soon, and the President and I both agree that these three documents reflect the diversity of our cooperation, while at the same time showing the main outlines for work together.What are these three documents? I will anticipate events a little here. First of all, there is our security cooperation and the document in this area on military transit to and from Afghanistan. This is without question one of the important areas in which Russia is working together with all of the European countries, and now Italy is joining in this cooperation with us too on the basis of a separate agreement.Second, there is our energy sector cooperation, which also serves as a foundation for developing cooperation in other sectors too. In this respect we have some decent results. We would like to continue developing our ties in trading gas and other energy sources, and in the nuclear energy sector. This is also one of the symbols of our cooperation.Finally, cooperation in the financial sector is also important, especially at a time when countries are emerging from the crisis period. President Napolitano said just before that the last few years were very difficult for the European Union. This applies equally to other countries as well. We are very pleased that the European Union found the strength to bolster its policies and adopt a consolidated line, helping the countries that ran into difficulties and preserving the euro as a common currency. ?As I have said in the past, I think that having the euro as one of the global reserve currencies has helped other countries too, which do not use the euro as a means of payment, to overcome the crisis and its consequences, and is an important part of the global efforts to fight financial problems.We exchanged views on how we view post-crisis development. We spoke about what needs to be done to make the next G20 summit, which will take place in France, a success, and ensure that its decisions are transformed into concrete action.We talked about global security, and also about the chain of events that are still unfolding in the Middle East and Africa. These are complex problems of course. Our position is that the conflicts taking place there and the events that are unfolding must all be resolved on the basis of these countries’ own laws and in respect for their constitutions and the basic rights and freedoms enshrined in their legal systems.We also discussed our work in an area it gives us great pleasure to develop, namely, the Year of Russian Culture and Language in Italy, and the Year of Italian Culture and Language in Russia. This is a big project that encompasses more than 500 events, some of which have already begun, with others still to come. I hope that many Italians will be able to visit the exhibitions and concerts that will take place in Italy, and that Russians will take part in the events that Italy will organize in our country. This is certainly a very positive event and a good area of work. ??I note that this is not just about culture but also about promoting the study of our respective languages. I read the memos available and saw that around 30,000 people in Italy are studying Russian, and around 40,000 people in Russia are studying Italian. This is maybe not such a big number, but it is not a small number either. I hope that these events will encourage more people to study Russian and Italian.The last thing that the President mentioned was an anniversary date coming up in Italy. I want to thank the President for his invitation to take part in celebrating the 150th anniversary of Italy’s reunification. I think this will be an excellent event. In any case, to judge by the faces of the journalists in the press pool accompanying the Russian president, our people welcome this event with great interest. It will certainly be of interest to all who love and appreciate Italy, and there are a great many such people in our country.Once more, I want to thank President Napolitano for the invitation.Biden to visit Russia 17, 2011 08:25 Moscow TimeThe upcoming dates of this spring's visit by U.S. Vice President Joseph Biden and his wife Dr. Jill Biden have finally been set. They will visit Finland, Russia and Moldova during the week beginning March 7, 2011, says an official announcement by the White House. In Moscow, Joe Biden will continue the work of "resetting" US-Russian relations, with an emphasis on ensuring the continued prosperity of both countries. Previously it was reported that Biden's visit would take place in preparation for an official visit to Russia by Barack Obama.U.S., Russia to begin data exchange under New START in March - official 17/02/2011The United States and Russia will hold their first information exchange on nuclear stockpiles under the New START treaty on March 22, a U.S. assistant secretary of state said.The previous such exchange between the world's largest nuclear powers was held in July 2009, when the START 1 agreement was still in force, said Rose Gottemoeller, Assistant Secretary of State for Arms Control, Verification and Compliance.Under the new arms control deal, which replaces the expired START 1 agreement, the sides are to hold their first information exchange within 45 days after it came into force on February 5. Data exchanges are to be held every six months.The treaty will provide the U.S. with a "comprehensive picture about lifecycle of Russian strategic forces," and the Russian side "will have the same," Gottemoeller said."Notifications of this treaty will be much more extensive in the number of ways and details. One particular feature of the notification is more details than in past," the U.S. official added."We will be using a unique identifying number to sign each missile, sea launcher, intercontinental missile, groundbase system or bomber," she went on. "They will have unique identifier that will be included in all notifications about their movement, deployment status."She also said that the U.S. prepares for a visit by Russian inspectors to its nuclear objects, which is to be held in April.The new treaty on strategic arms reduction, signed in April by the presidents of Russia and the United States, Dmitry Medvedev and Barack Obama, trims nuclear arsenals of both nations to a maximum of 1,550 nuclear warheads, down from the current ceiling of 2,200. The treaty was ratified by the parliaments of the two states late last year.MOSCOW, February 17 (RIA Novosti)Russian specialists to inspect U.S. nuclear missiles 17, 2011 10:12 Moscow TimeA group of Russian military specialists will be visiting nuclear missiles sites in the United States shortly as part of mutual inspections tours stipulated by the new Strategic Arms Reduction Treaty. It was signed last April and came into force on February 5. The new START commits both sides to regularly exchanging data about the number and location of their nuclear warheads. A White House spokeswoman has said the inspections could begin in April.U.S. to expand civilian nuclear cooperation with Russia - official 17/02/2011The United States will continue to expand its civilian nuclear cooperation with Russia, including reactor development and security of radioactive materials, a top U.S. nuclear official told RIA Novosti.Thomas D'Agostino, U.S. Under Secretary for Nuclear Security and also head of the National Nuclear Security Administration, said the two states have been having "wonderful cooperation" on the issue."Relations with [Russian state nuclear corporation] Rosatom and whole Russian nuclear establishment have been fantastic," he said. "Nothing but great things I could say about relations with Russia. Because of we recognize the importance having and maintaining the security of materials."The U.S. official told RIA Novosti on the sidelines of a nuclear conference that ties would continue to improve as the 123 Agreement moves forward.The long-stalled U.S.-Russian Agreement for Cooperation in the Field of Peaceful Uses of Nuclear Energy, also known as the U.S.-Russia 123 Agreement, signed for 30 years, came into force on January 11. It lays legal framework for cooperation in nuclear research, production and trade, and both sides see it as contribution to non-proliferation regime."As you probably know our Deputy Secretary Daniel Poneman met [Rosatom head] Sergey Kirienko and we continue very active relationship and dialog. That's the forum in the nuclear security space, there we work together both in reactor development and in all the security issues, and we move forward," D'Agostino saidHe said the creation of bilateral commissions on different aspects of nuclear energy "has allowed a very active dialog" between Russian and U.S. officials.The U.S. has agreements, similar to the 123 Agreement, with many other states, but the deal with Russia was long been stalled over political controversies. The agreement with Moscow was submitted to Congress by former President George W. Bush but recalled following Russia's armed conflict with Georgia in August 2008.It was resubmitted by President Barack Obama in May 2010 in a bid to "reset" relations with Russia.WASHINGTON, February 17 (RIA Novosti)U.S. ready to discuss further arms reduction with Russia - official United States is ready to discuss further arms reduction efforts with Russia, including tactical nuclear weapons, a high-ranking State Department official said.President Barack Obama said in a message to the Senate early this month his country expects to hold talks with Russia on tactical nuclear weapons (TNW) within a year after the New START arms reduction treaty comes into force."We can seek deeper nuclear reductions and we are committed to seeking deeper nuclear reductions with Russia, including in strategic, non-strategic, and non-deployed weapons," Under Secretary of State for Arms Control and International Security Affairs Ellen Tauscher said.Tauscher also said that the creation of European missile defense system and ratification of the Comprehensive Nuclear-Test-Ban Treaty (CTBT) also remained priorities for the U.S."Ratifying the CTBT would bolster our credibility as we work to stop others from developing nuclear weapons and testing them," she said.Russia's ambassador to the U.S., Sergei Kislyak, said nuclear non-proliferation remained one of the vital tasks on the Russian-U.S. agenda."By signing and ratifying the strategic arms reduction treaty we proved our ability to cooperate on non-proliferation issues," he said."We have extensive international and bilateral agenda. And the arms reduction treaty is a good start," the Russian ambassador added.When ratifying the New START deal with Moscow in December, the U.S. Senate adopted a resolution obligating the government to start bilateral talks on cutting the TNW stockpiles - landmines, artillery shells and short-range missiles. Washington says Moscow has a larger number of these systems.Russian Deputy Foreign Minister Sergei Ryabkov said January 29 that it is too early to discuss limiting TNW with the United States because Russia needs to see the way the U.S. fulfills the undertaken commitments.WASHINGTON, February 16 (RIA Novosti)Russian calendar: Key events for February 17’s Regional Development Minister Viktor Basargin to visit Estonia, until February 1812:09BELARUS AUTHORITIES SEEK TO TRIGGER ANTI-RUSSIAN SENTIMENTS USING SITUATION SURROUNDING TWO DETAINED RUSSIANS - RUSSIAN FOREIGN MINISTRY | 17.02.11 | 12:44 Armenia-Russia Relations: Deputy MFA listens to opposition party concerns Naira HayrumyanArmeniaNow correspondentDeputy Minister of Foreign Affairs of Russia Grigoriy Karasin was in Armenia this week to discuss a broad agenda of Russian-Armenian relations. Besides meeting with representatives of the executive authorities, he also met with representatives of the legislature, including the opposition Heritage Party. This unlikely choice for the interlocutor is perhaps connected with the fact that it is representatives of Heritage who have openly linked Armenia’s socio-economic failures and even foreign-policy problems with the excessively close relationship with Russia. It is symptomatic that shortly after the top Russian diplomat’s arrival, on Tuesday, the Constitutional Court issued a ruling recognizing last year’s agreement between Yerevan and Moscow to extend the term of the Russian military base in Armenia as corresponding to the country’s Constitution, [paving the way for its ratification]. In August 2010, during Russian President Dmitry Medvedev’s state visit to Armenia, the two sides signed a protocol on extending the lease on the Russian military base in Gyumri from 25 to 49 years. In addition, the protocol provides for the expansion of the framework of the base’s geographical and strategic responsibility, essentially meaning that “protecting the security of Armenia” will be part of the base’s duties.The subject of Armenia’s relations with Russia has been given particular attention also in connection with the initiative of the Government of Armenia to remove the ban on foreign-language schools (synonymous for many in Armenia to restoring Russian-language education in secondary schools) and the expansion of the activities of the Russian organization, Rossotrudnichestvo, under whose program thousands of Armenians have already left for Russia’s chosen remote provinces for migrant work and further assisted naturalization. These initiatives have triggered an active public debate in Armenia raising the question of whether this policy is part of Russia’s “colonization” plan. Varied opinions have been voiced, and frequently include concerns of whether Armenia’s reliance on Russia threatens sovereignty. In particular, during the Russian deputy foreign minister’s meeting with the Heritage faction, it was pointed out that Russia’s policy on the acquisition of property in Armenia is widespread, whereas its investment policy is at an undesired level. The participants of the meeting expressed their views about Russia’s role in handling escalating tensions and militarization in the region, about the need for cooperation of the two countries’ delegations in international organizations. Environmental issues were also raised. In particular, members of the Heritage faction noted that a joint state-run Armenian-Russian enterprise, without considering public opinion, has been conducting the exploration of uranium deposits in Armenia, which adversely affects the environment. The same day, Armenia’s Minister of Energy and Natural Resources Armen Movsisyan said that Armenia is working to maintain the importing price for Russian natural gas at its current level. Movsisyan also said because of the rise in the gas prices from April 2010 its consumption in Armenia has significantly fallen. The Armenian minister gave assurances that the Russian side -- in this particular case gas giant Gazprom -- approaches Armenia’s proposals “with understanding” and that the negotiations proceed in “a warm and friendly atmosphere.”RF border guards did not use weapons to stop transgressor ship, February 17 (Itar-Tass) - Russian border guards have said that when they spotted an unmarked vessel in the area of the Smaller Kuril Archipelago on February 15 they gave signals used in international legal practice. “The transgressor ship did not respond to inquiries, did not react to the legitimate demands of the border guard authorities to stop, the vessel was heading to the exit from the exclusive economic zone of the Russian Federation,” the Sakhalin coast guard department of Russia’s Federal Security Service (FSB) reported on Thursday. “Signals with the use of pyrotechnics adopted in international legal practice were given for attracting the attention and stopping the transgressor vessel. Weapons were not used,” the Sakhalin coast guard department noted. The Russian border guards sent information about the transgressor ship to the headquarters of the First District of the Japanese Maritime Security Agency. A joint investigation has been launched into the fact of finding an unmarked vessel in the area of the Smaller Kuril Archipelago. On Wednesday, the Japanese authorities said they intended to thoroughly investigate reports that Russian border guards allegedly fired illuminating projectiles at an unidentified vessel in waters off the Smaller Kuril Archipelago, where it was staying illegally. Inspectors of the Japanese Maritime Security Agency, after questioning of 20 captains of fishing vessels from Hokkaido, which could potentially be in the area of the incident for poaching, as well as checking on-board satellite navigation and positioning systems, arrived at the conclusion that none of these ships was present in the firing zone at the specified time. The Japanese authorities believe that most probably, a vessel not owned by Japanese fishing companies was involved in the incident, and intend to further continue probing into its circumstances. According to the Kyodo news agency, Russian border control authorities in Sakhalin on Thursday admitted firing a flare Tuesday at a boat of unknown nationality travelling near an islet group claimed by Japan. The latest announcement came a day after a border control official said the authorities did not shoot flares or anything else at any Japanese vessels travelling near the Habomai islet group held by Russia. In Tokyo, Japan’s top government spokesman Yukio Edano told a press conference, “We do not have any information indicating that it was a Japanese vessel.” The Russian authorities said Thursday they found a boat that had entered its exclusive economic zone in waters southeast of the Habomai islets at around noon Tuesday and fired the flare demanding it stop for inspection. The boat ignored the demand and fled toward Hokkaido, they said. After the incident, the Russian authorities reported the matter to a local Japan Coast Guard office in Hokkaido and the two parties are currently conducting a joint investigation into the case. Russia to develop disputed Kuril Islands 13:33:30BEIJING, Feb.17 (Xinhuanet) -- The Russian Fisheries Agency says the country will continue to exploit waters around the disputed Kuril Islands, which are referred to by Japan as the Northern Territories. A high ranking official from the Russian agency says the country is seeking to promote foreign investment in these areas.The deputy head of the Russian Fisheries Agency- Alexander Savelyev says nobody can prevent Russia from fishing in its territorial waters. He also says the country is open to investment in the waters around the Kuril islands by companies from other Asian countries.Alexander Savelyev, Deputy Head of Russian Fisheries Agency, said, "In the last two years, Russian businessmen built fish processing plants full of the most modern processing equipment imported from Canada and the Netherlands, which you cannot find either on Hokkaido or in Alaska. This makes us very optimistic. As a matter of fact, when I'm talking about the upcoming booming investments, I mean first of all the investments and the interests of the Russian businesses in this region."During a visit to Moscow last week, Japan's Foreign Minister Seiji Maehara warned attempts to attract investment by other Asian nations to the chain of disputed islands would complicate Tokyo's already tense ties with Moscow.Seiji Maehara, Japanese Foreign Minister, said, "Investment into the Northern Territories from a third country do not comply with the position of Japan, it complicates the situation. I would like to emphasize that."Russian President Dmitry Medvedev infuriated Tokyo in November by making the first visit by a Kremlin leader to the islands. His trip provoked a storm of protests from Tokyo.The dispute over sovereignty is largely concerned with the somewhat ambiguous San Francisco Peace Treaty between the Allied Powers and Japan inked in 1951.The territorial dispute is preventing the two countries from signing a postwar peace treaty.(Source: CNTV)Russia, China firms to jointly farm scallops off Japan-claimed isle (Kyodo) -- Russian and Chinese fisheries companies are planning to set up a joint venture to farm scallops off the island of Shikotan, a Russian Fisheries Agency official said Wednesday.The plan for the joint venture on Shikotan, one of four Russian-held islands off Hokkaido that are claimed by Japan, was disclosed after the revelation Tuesday of an agreement between other Russian and Chinese fisheries companies to farm sea cucumbers off the disputed island of Kunashiri.Tokyo believes its acceptance of third-country investments in the disputed islands would effectively mean recognizing Russian control and would encourage what it describes as Russia's unlawful occupation of Japanese territory.Tokyo and Moscow have long been at odds over the islands of Etorofu, Kunashiri and Shikotan as well as the Habomai islet group, which were seized by the Soviet Union following Japan's surrender in World War II on Aug. 15, 1945.The islands are known in Japan as the Northern Territories and in Russia as the Southern Kurils.(Mainichi Japan) February 17, 2011UPDATED: February 17, 2011 China's Trade Center Begins Operation in Russia 70 percent of the construction of the center has been completed and 28 Russian enterprises have signed contracts with the center 视频播放位置下载安装Flash播放器The Greenwood International Trade Center, financed by China Chengtong Development Group, has began operation in Moscow, the Chinese Chamber of Commerce in Russia announced here on Wednesday.Speaking at a press conference, chamber chairperson Cai Guiru said about 70 percent of the construction of the center has been completed and 28 Russian enterprises have signed contracts with the center and stationed in the quarter.The Greenwood will be put into full operation three months later, Cai said.He stressed the trade center, the largest Chinese investment project in Russia, is expected to be built as a China brands trade center in the largest scale and highest grade.The Greenwood would not only serve as a platform for Chinese products to enter the Russian market, but also help build the " Made-in-China" brand image in Russia, Cai said.Ling Ji, minister counselor for economic and commercial affairs at the Chinese embassy to Russia, told the press conference that total trade volume between China and Russia in 2010 hit $55.45 billion, increasing by 43.1 percent over the previous year.Sino-Russian trade has rebounded to the pre-crisis level, Ling said, adding that China's non-financial direct investment to Russia has surged more than 70 percent in last year.Against such a backdrop, the two countries should pay more attentions to China's investment to Russia's real economy, Ling noted.Oleg Schwartzman, CEO of Russian Financial Groups, said he believed the trade center would draw more high-tech enterprises from both countries and become an innovation platform to facilitate those enterprises.The Greenwood covers an area of 200,000 square meters, with a total construction area of 132,600 square meters.(Xinhua News Agency Feburary 17, 2011)Slovenia and Russia commit to over 30 joint projects in many sectors - 17.02.2011Russia and Slovenia intend to carry out 30 projects in different fields, Minister of Communications and Mass Media Igor Shchegolev said after Wednesday’s session of the inter-governmental commission on trade, economic, scientific and technical cooperation.?Shchegolev is co-chairman of the commission.?“We’ve signed a programme of cooperation. The programme includes 30 projects in different fields. In addition, this year special attention will be riveted to cooperation in the field of cutting edged technologies, scientific exchanges. Much attention will be paid to the implementation of the South Stream project,” Shchegolev said.?According to the minister, the sides are discussing a possibility to ease visa travel formalities in order to expand tourism interaction. According to Rostourism, the flow of Russian tourists continues to increase every year. Over 10,000 Russian citizens visited Slovenia last year.?A Slovenian representative said the country was ready to contribute to visa free travel inside the EU. Slovenia is also ready to compile visa documents directly in travel agencies that will help reduce the term for issuing visas, he said.First An-148 deliveries to commence from 2012 summer February 2011The first shipments of the Ukrainian-Russian Antonov-148 regional passenger jets to India may start in the summer of 2012. This information was made available at the just concluded AeroIndia 2011 air show at Bangalore.Indian carriers have firm orders for eight passenger version and 10 cargo versions of these aircraft in addition to eleven options."The first An-148 planes may be delivered to India as early as next summer. As a condition for this, the validation of the An-148 type certificate is taking place in India. At the meetings which took place during the air show, the parties spoke about the establishment of a centre for aircraft maintenance and the system of after-sale servicing," an Antonov statement said.Discussions with Indian representatives also took place about the development of the An-178 transport aircraft, An-148VIP and An-168 ABJ planes, the press service said. The possibility of marketing the An-74 aircraft in the Southeast Asia market was also looked at as well as the possibility of the An-74MP (marine patrol) version of the aircraft being offered for a possible Indian Navy tender. Ukrainian delegates held talks with heads of Indian enterprises, including the Hindustan Aeronautics Ltd (HAL) and the Tata Group, ministries, agencies, airlines of India and other countries of Southeast Asia as well as representatives of the Indian Air Force.Antonov expects to sell 200 aircrafts in Indian market in the next 15 years.Belarus asks Russia for $9bn loan to build 2400 MW nuclear plant: Feb 17, 2011 Belarus has asked Russia for a government loan of $9bn for a period of 25 years for the construction of a 2400 MW nuclear power plant.According Belarus’ First Deputy Prime Minister Uladzimir Syamashka, Belarus expects to receive deferment of repayment until the plant is completed, that is, until 2017. The loan is to be spent for the construction of both the plant and the necessary infrastructure.A loan agreement may be signed at a meeting of the Council of Ministers of the Belarusian-Russian Union State in March.The nuclear power plant, which is to have a generating capacity of around 2400 MW, is to be built in the Hrodna region near the Lithuanian border.The construction of the plant by a Russian company would cost some $6bn, Russian Prime Minister Vladimir Putin said following talks with his Belarusian counterpart, Mikhail Myasnikovich, in Moscow on January 20."Russia is ready for the implementation of the project," Putin said, noting that Moscow was ready to provide Belarus with a loan for funding the project. ?Atomstroiexport, a subsidiary company of Russia's Nuclear Energy State Corporation (Rosatom), was earlier selected by the Belarusian government to be the prime contractor.Russia initially agreed to provide a $6bn tied loan for the nuclear power plant project, but Minsk wanted the loan to be untied and amount to $9bn.While meeting with Belarusian First Deputy Prime Minister Uladzimir Syamashka in Minsk on January 25, Rosatom head Sergei Kiriyenko said that the construction of the first unit of the Belarusian nuclear power plant was expected to be completed in 2017, and that a loan agreement between the finance ministries of the two countries would be signed no later than June.The plant’s foundation pit will start being excavated in September and the excavation work should be largely over before the end of the year, Kiriyenko said.Russian hydro power to Finland, Norway Russian electricity generator TGC-1 in 2010 exported a total of 1,3 TWh to Finland and Norway.The Territorial Generating Company No 1 (TGC-1) – one of the biggest electricity generators in Northwest Russia, in 2010 increased its exports to the neighboring states with 1,2 percent to a total of 1,3 TWh, reports with reference to RIA Novosti.Between 400-500 GWh of the export to Finland comes from the Lesogorskaya and Svetogorskaya Hydropower Stations in Leningrad Oblast. In addition, Finland also buys power from the Kaitakoski station in the Pasvik River, the border river between Russia and Norway, RIA Novosti writes.TGC’s exports to Norway come from the Borisgleb station, also that located in the Pasvik River.In addition to the hydropower, Finland also buys nuclear power from Russia, partly from the Kola Nuclear Power Plant in Polyarnye Zori, Murmansk Oblast.Text: Atle StaalesenWhy Russia’s Agreement With Germany’s Rheinmetall Matters 17, 2011 | From Russian Defense Ministry officials signed a contract on February 9 with German private defense firm Rheinmetall to construct a combat training facility for Russia’s military on the Mulino base. Russian defense officials have also offered for Rheinmetall to manage the “support, repair and modernization of military equipment.” Although Rheinmetall is not a part of the German government, the company’s defense sector is Europe’s top supplier of military technology and security equipment for ground troops. The financial and technical details of the contract have not yet been finalized, but it is clear that the planned training center will be engineered to train brigade-size units, which equates to thousands of Russian troops. The agreement is significant because Rheinmetall is the first foreign company to construct such a training facility in Russia, and the German company has a sobering history. In August 1944, Nazi politicians met with German industrialists—one of whom represented Rheinmetall—to plot the future resurrection of German Nazism. But the primary significance of the deal lies in its indication of a quickly warming relationship between Moscow and Berlin. Stratfor noted on Wednesday that Russian-German military cooperation is a source of concern for some other countries: [T]his deal is bound to make the states located between Russia and Germany—particularly Poland and the Baltic states—nervous. To these countries, Russian-German military cooperation of any kind will have the undertones of inter-war cooperation between the German Weimar Republic and the Soviet Union, which allowed Germany to secretly build up its military despite limitations imposed by the Versailles Treaty. These sort of deals are not forgotten in Central Europe, and any deal—no matter how profit-driven or innocuous it may be—will invite careful scrutiny from Germany’s eastern nato allies and could further weaken the binds holding the alliance together. These states are right to be concerned. Germany and Russia have been at odds with each other throughout history. The periods of cooperation between them, such as were initiated by the 1922 Treaty of Rapallo and the 1939 Molotov-Ribbentrop Pact, were based on mutual strategic necessity in the lead-up to major conflicts. In June of 2009, Trumpet columnist Brad Macdonald wrote this: History is consistent on this point: Germany and Russia are not close friends, and any appearance that they are is a harbinger of conflict …. [T]he formation of a Russian-German axis is currently one of the most significant and underrated trends on the world scene! … Unlike America, the Kremlin is well aware of European history and sees that Germany has restored itself as the dominant power and natural leader of Europe. By forging closer ties with Berlin, the Russians are getting on good terms with the political, military and economic entity that will determine Europe’s future. History makes plain where a warming Russo-German relationship will lead. If a peace pact results, it will indicate that one or both sides are gearing up for another imperialistic campaign. To learn more about the prophetic significance of the warming relationship between Russia and Germany, read “Russia’s Attack Signals Dangerous New Era.” ? 2 Russians aboard sunk boat in Vietnam – Embassy 17, 2011 11:27 Moscow TimeThe Russian embassy in Vietnam has confirmed that there were two Russians aboard a tour boat that sank in the Ha Long Bay in northern Vietnam. There were between 25 and 30 people aboard the sunken boat, according to various sources, among them tourists from Japan, Italy, the United States, Australia, Germany, the Netherlands, Sweden, France and Switzerland. At least 12 people died and 15 others were rescued. The rescue operation continues. One of the world’s most scenic travel hubs, the Ha Long Bay has more than 3,000 islands and attracts up to 3 million tourists annually.Putin to visit Krasnodar Territory, February 17 (Itar-Tass) -- Prime Minister Vladimir Putin will make a working trip to the Krasnodar Territory on Thursday, where he will see how his instructions on the elimination of consequences of the October 2010 flood in the Tuapse District are being fulfilled, the government press service reports. In October 2010 the flood in the Tuapse District strongly damaged 1,491 houses. 250 houses were totally destroyed and were found not liveable. A total of 7,500 people were affected by the natural calamity; 17 of them died and six were reported missing. The flood damaged 267 social facilities and engineering communications, 74 automobile roads, 58 passage and 27 automobile bridges, 99 communal and cultural facilities. An approximate value of the damage done was 2.5 billion roubles. The government press service reminded that Putin had visited the flood-stricken areas on October 22. He had promised the rebuilding of the destroyed houses on the money from the federal budget and ordered the payment to flood victims of 150,000-rouble allowances, 125,000 roubles for the repair of dwellings and another 10,000 roubles for urgent needs. The families of the dead will receive one million roubles each. The federal centre rendered financial assistance to the budget of the Krasnodar Territory amounting to 1.6 billion roubles for the elimination of consequences of the natural calamity. According to the government press service, “by today the flood victims have been given new dwellings in the Dzhuba and Novomikhailovskoe populated localities. 44 cottages and three apartment houses – a total of 118 flats – were built in the town of Dzhuba. 16 cottages and an apartment house were built in Novomikhailovskoe. All the dwellings were given to the people, whose houses had been destroyed by the flood. Playing grounds for children and sports grounds were created in the new residential areas. Commenting on the restoration of the engineering infrastructure, a representative of the press service said that “about all the water intake facilities, trunk waterways, sewage pumping substations and collectors, boiler rooms, supports of power transmission lines, transformer substations, gas and electricity distribution networks have been restored. The transport infrastructure is functioning normally.” Putin will visit on Thursday Secondary School No.30 of the Tuapse district, which was also seriously damaged by the flood. 49 million roubles were spent on its rebuilding. By today all the damaged structures have been restored and fitted with equipment worth six million roubles, which were allocated from the territorial budget, the government press service reports. Russian govt to discuss demographic policy concept up to 2025, February 17 (Itar-Tass) -- The presidium of the Russian government will meet on Thursday, February 17, to discuss a demographic policy concept up to 2025. An unprecedented amount of money – more than 1,600 billion roubles – will be earmarked for this purpose in the next five years, including 876 billion roubles in 2011 and in the projected period of 2012-2013. “The implementation of the programme will make it possible to stabilise the population at 142 million by 2015” and “life expectancy should reach 70 years”, the government said. This indicator was 69 years in 2010. “By the end of 2015, the birth rate should grow by 30 percent from 2006,” the government said. Minister of Economic Development Elvira Nabiullina will present amendments to the law on energy saving and energy efficiency that postpone the mandatory use of gas meters in private households until 2015. Minister of Health and Social Development Tatyana Golikova will propose funding for the treatment of Russian bobsledder Irina Skvortsova who was seriously injured during a competition in Germany. Defence Minister Anatoly Serdyukov will present amendments allowing army personnel and their families abroad to receive free medical aid in their units’ medical institutions. Minister of Natural Resources Yuri Trutnev will speak on the Water Strategy up to 2020. Industry and Trade Minister Viktor Khristenko will present a draft law on computation of time that streamlines the application of law in this field. Agriculture Minister Yelena Skrynnik will report on amendments to the regulation on her ministry, and Deputy Transport Minister Sergei Aristov will put forth amendments to the regulation on the Federal Service for Transportation Supervision. Emergencies Minister Sergei Shoigu will propose budget appropriations to Tyva, Stavropol Territory, Leningrad region, and Altai Territory for dealing with the consequences of natural calamities. Bright minds talk modernization in Siberia 17, 2011 10:44 Moscow TimeA forum involving almost 2,000 scholars and businessmen from Russia and abroad has opened in Krasnoyarsk, Siberia, to address economic modernization in the aftermath of the global financial crisis and discuss ways to improve the?investment climate in Russia. ?Putin killed democracy, opposition leader says p.m., Wednesday, February 16, 2011STRASBOURG, France | Prime Minister Vladimir Putin killed democracy in Russia and replaced it with a mafia state, opposition leader Boris Nemtsov charged on Wednesday.Mr. Nemtsov, a former deputy prime minister of Russia, compared Mr. Putin to a younger version of Hosni Mubarak, the Egyptian president ousted last week after three decades in power.“Putin looks like a young Mubarak. He believes that his future will be better than Mubarak‘s future. I don’t think so,” said Mr. Nemtsov, who was speaking at a press conference at the European Parliament in Strasbourg, France.“Putin killed the democratic state in Russia. He built a corrupted mafia state, but he killed the democratic state,” added Mr. Nemtsov, who served as deputy prime minister under President Boris Yeltsin.Domodedovo blast suspects convoyed to Moscow at 11:09 | Interfax-Ukraine Moscow - All of the people accused of helping arrange the January 24 explosion at Moscow's Domodedovo Airport have already been convoyed to the Russian capital, except for Bashir Khamkhoyev, who is suspected of acting as a messenger for North Caucasus militant leader Doku Umarov, a source in law enforcement services told Interfax on Feb.17. "The suspected accomplices of Magomed Yevloyev, who committed the terrorist attack at Domodedovo, were convoyed to Moscow, where investigators have already started to work with them," the source said.Khamkhoyev is still being held in a jail in the North Caucasus, he said.Doku Umarov has been accused of masterminding the Domodedovo Airport bombing.The explosion at Domodedovo Airport occurred at the international arrivals section on January 24. The bomb with a power equivalent to about five kilograms of TNT, filled with metal parts and attached to the suicide bomber's body, blew up. As a result 36 people were killed and more than 100 injured.The Russian Investigative Committee opened a criminal case on charges of terrorist attack, murder and arms trafficking.The Domodevo terrorist attack perpetrator was Yevloyev, a native of Ingush village of Ali-Yurt.A court in Ingush capital Magas ordered to arrest Akhmed and Fatima Yevloyev, the terrorist's siblings, on suspicion of their assistance to the suicide bomber.The court in Magas also arrested Umar Aushev, who lives in the same village as the bomber, suspecting him of taking Yevloyev from the village to Nazran two days before the Domodedovo attack.The fourth arrestee is Ingush resident Khamkhoyev, who, as investigators believe, is one of the gang leaders in Ingushetia's Sunzha district. Read more: blasts rock Dagestan’s Kizlyar, February 17 (Itar-Tass) -- As a result of two blasts which occurred in one of the shops of the city of Kyzlyar, one man is wounded. As sources at the city's law enforcement bodies told ITAR-TASS, “two blasts occurred at the shop ‘Ideal’ in Tsiolkovsky Street; the first blast occurred at 00.10 Moscow time on Thursday, another blast occurred twenty minutes later; the shop’s guard was brought to hospital with injuries.” According to the preliminary information, the blasts occurred inside the shop, the building is seriously damaged. An investigation team, which included representatives of the Interior Ministry, the Prosecutor’s Office and the Federal Security Service, left for the site of the incident. The 8th inter-regional exhibition “Business in Dagestan-2011” to take place in Makhachkala , 11:27Makhachkala, February 17, 2011. The 8th inter-regional exhibition “Business in Dagestan-2011” will take place in Makhachkala on March, 17 - 19. It is also planned to hold the 5th republican specialized exhibition “The government order – 2011” and the Days of Stavropol Krai in the Republic of Dagestan.Representatives of more than 80 enterprises, organizations and firms of the republic and others regions will participate in the exhibition.Heads of the republic, heads of the republican ministries and departments, administrations of cities and districts, representatives of business circles of the Republic of Dagestan, of the North Caucasian Federal District and other regions of Russia will take part in the inter-regional exhibition.In addition, conferences, seminars, presentations will be held.We would remind you that more than 10000 persons visited the exhibition “Business in Dagestan-2010” and “The government order – 2010”.Enterprises from Moscow, St. Petersburg, Moscow Oblast, Rostov Oblast, Omsk Oblast, Lipetsk Oblast, Stavropol Krai, Krasnodar Krai, the Chechen Republic participated in the exhibition in 2010.Conflict in Dagestan Approaches the Level of Civil War 17, 2011Valery DzutsevOn February 14, a double suicide attack took place in the Dagestani village of Gubden. Two servicemen were reportedly killed and 20 others were injured in the attack. First, a female suicide bomber attacked a local police station early in the evening (RIA Novosti, February 14). Later that evening, a car loaded with explosives tried to approach a police checkpoint in the same village and exploded during a shoot out between its driver and policemen and Russian interior ministry servicemen (riadagestan.ru, February 14).Within hours of the attack, police sources said that Vitaly Razdobudko and his wife Maria Khorosheva, both ethnic Russian converts to Islam, were the suicide bombers. The suicide attack was supposedly designed to be a prologue to an all-out insurgent assault on Gubden. The attack seriously disrupted life in the settlement, as its electricity was cut while Russian and Dagestani security forces dug in to thwart a possible incursion by the rebel forces (lifenews.ru, February 14). On February 15, investigators confirmed they were looking into the possibility that ethnic Russian Islamists participated in the attack but denied the bombers had been identified. Meanwhile, one of the servicemen wounded in that attack died (gazeta.ru, kavkaz-uzel.ru, February 15).The scale and scope of the conflict in Dagestan increasingly resemble a civil war. While the insurgents cannot rival the government forces in terms of weaponry and ability to fight in open combat, the rebels are carrying out psychologically damaging attacks with suicide bombers across Russia. Islamism has firmly become the matrix of the insurgency in a republic with the most ingrained and ancient Islamic tradition in the North Caucasus.The ethnic Russian converts to Islam Vitaly Razdobudko and Maria Khorosheva first came to public attention in the wake of the attack at Moscow’s Domodedovo airport on January 24. Russia’s security forces initially stated that Razdobudko, aided by the so-called Nogai Jamaat, perpetrated the bombing at the airport, which killed 36 people. This version of events was subsequently dropped and the Domodedovo attack was eventually blamed on a young Ingush man. Now Razdobudko and his girlfriend have unexpectedly resurfaced in Dagestan.Gubden is a Dargin village in Karabudakhkent district of Dagestan, which is situated south of Makhachkala and west of Izberbash, a resort city on the Caspian Sea. The district has plains and mountainous areas and is known for its vibrant and volatile Islamic community, which regularly challenges the official establishment. Gubden is the home village of Magomedali Vagabov, a Dagestani insurgent leader who was killed in August 2010. The current leader of the Dagestani insurgency, Ibragimkhalil Daudov, who became leader following Vagabov’s death, also comes from this village. Daudov, who was in the Soviet army and participated in the invasion of Afghanistan, joined the Dagestani insurgency along with his three sons. His wife Zavzhat reportedly accidently blew herself up in Moscow on December 31 while preparing a suicide attack (gazeta.ru, February 15).It is quite baffling as to why the Russian security services are so persistently trying to bring charges against ethnic Russians who are supposedly Islamists. Following the attack at Domodedovo airport, Gazeta.ru conducted thorough research on the alleged suspects. It turned out that local police in Stavropol region and Dagestan had learned about Razdobudko from the news. The head of the Neftekumsk city police in Stavropol region, where Vitaly Razdobudko had reportedly lived, told the website: “We never had such a person in our database and he never lived here” (gazeta.ru, January 27).One possible reason for Razdobudko’s rise to prominence in the statements of the Russian security services is that the latter are trying to temper anti-Caucasian sentiment among ethnic Russians. This task may seem to be all the more relevant to the security services after Russian nationalists staged massive anti-Caucasian protests in Moscow last December. Since the continual terrorism threat in Russia seems to come solely from the North Caucasus, many ethnic Russians may grow impatient both with the inability of the Russian government to deal with the issue and with North Caucasians as such. As the protests in Moscow showed, Russian nationalists could easily overwhelm the state’s ability to control the situation.Meanwhile, a real or make-believe internationalization of the conflict in the North Caucasus seems to be underway. On February 10, Russian news agencies reported that two insurgents of Kazakh origin surrendered to police in Makhachkala, Dagestan’s capital. The Kazakh embassy in Moscow denied there was any evidence of Kazakh citizens’ participation in the conflict in the North Caucasus. While Russia’s Investigative Committee also did not confirm this information, news spread on February 11 about a group of four to five “Kazakh terrorists” who had infiltrated the North Caucasus in a car (time.kz, February 12).With suicide attacks becoming more and more routine in Dagestan as well as the rest of the North Caucasus, Dagestan’s official Islamic clergy have come up with a proposal to establish a “Shahid’s [Martyr’s] Day” on February 9. The Islamic leaders stated that 24 members of the official Dagestani clergy had died in attacks since 1998 (ndelo.ru, February 11). Now the official Islamic establishment in Dagestan appears to be predisposed to acquire their own Shahids as they plan to prepare to recognize those who die in suicide attacks and in other fighting as “Shahids.” This step is likely to cause even more division in Dagestani society and more polarization between official and unofficial Islam, thereby exacerbating the unfolding civil conflict.Source: Headdresses Test Faith, Tolerance February 2011By Alexandra OdynovaAfter twin attacks by?female suicide bombers killed 40 people in?the Moscow metro last March, media reports warned that women sporting a?Muslim headdress in?public may face verbal or even physical attacks.The warnings were far from?baseless, as several hate-related incidents took place hours after the?bombing. One saw angry passengers throwing two scarf-wearing women off a?metro train.Attacks associated with radical Islamists make wearing a?hijab — the?piece of?female attire that covers the?head and?is obligated by?the religion — an?everyday challenge for?female Muslims in?Moscow.But most who make the?decision to?follow Islam's guidelines put up with occasional harassment — and?rights activists say Muscovites may actually be growing more tolerant toward women in?hijabs."I've been wearing a?headscarf for?four years now, and?in the?beginning it was quite a?novel experience," Dana Akhilgova, a?20-year-old Moscow student, said in?an interview with The?Moscow Times."It was drawing attention, and?there were people who even stopped talking to?me," she said.But Akhilgova said she has no regrets because she eventually learned to?"take it easier," and?unfaithful old friends were replaced by?new, "even better ones."A spokeswoman for?the Russian Council of?Muftis, Gulnur-Khanum Gaziyeva, said that "in Russia, the?attitude has recently become more negative to?women wearing the?hijab because Islam is often associated with terrorism."But Gaziyeva admitted that she personally did not feel any pressure."The police don't stop me, and?people around me don't insult me," Gaziyeva, who wears a?hijab and?a long-sleeve dress, told The?Moscow Times. "I believe that a?lot depends on?my own inner attitude."The number of?attacks on?hijab-wearing women are limited to?"a few cases a?year," said Alexander Verkhovsky, head of?the Sova xenophobia watchdog."Most of?the attackers are not radicals, but just mentally unbalanced individuals," Verkhovsky said.Gaziyeva and?Akhilgova also said people who react inappropriately to?the hijab are driven by?stereotypes, often generated by?the media. Gaziyeva added that "terrorism has no nation and?no religion."For a?Muslim woman, wearing a?hijab means modesty, as she is supposed to?only show her hair to?her husband, not to?strangers, Gaziyeva said. "For a?Muslim woman hijab means inner freedom," she said. An early wave of?hate and?suspicion toward women in?headscarves was triggered by?a 2003 attack at?a rock festival in?Moscow's Tushino airfield, where two suicide bombers blew themselves up in?a crowd, killing 16.But the?bombers actually wore no hijabs and?even sported short skirts, witnesses said.After the?March metro blasts, the?media circulated a?photo of?one of?the bombers, the?17-year-old Dzhanet Abdullayeva, standing in?a forest with a?machine gun and?wearing a?black hijab. But the?other attacker, Mariam Sharipova, described as Slavic-looking, was bare-headed in?the only publicly available photo of?her.Sova watchdog's Verkhovsky said the?metro bombings were followed by?a certain surge in?intolerance toward women with an?"Islamic" appearance. Even one native of?Armenia, a?Caucasus-located but predominantly Christian country, was reportedly attacked.But there was less violence than after the?2003 Tushino blasts, he said. "Maybe people are getting used to" women in?headscarves, Verkhovsky said.Last week — shortly after another suicide bombing carried out by?a male killed 36 in?Domodedovo Airport — a?Moskovsky Komsomolets reporter traveled around Moscow in?a niqab, which is a?more austere variation of?an Islamic headdress that covers not just the?hair, but the?face as well, leaving only a?slit for?the eyes.Some metro passengers were scared off by?the niqab, while others reacted aggressively, shouting insults and?forcing the?guard accompanying the?reporter to?interfere, the?newspaper said.But the?harsh reaction may be due to?the fact that the?niqab belongs to?the Arabic tradition and, unlike the?hijab, is very rare in?Moscow."Most women wearing niqabs in?Moscow are from?abroad, and?they are always accompanied by?their husbands," Gaziyeva said.Recent clashes over headscarves in?Western Europe may also contribute to?the negative attitude to?the hijab in?Russia, she said.France has banned hijabs in?schools nationwide in?2004, and?several German provinces have also introduced restrictions on?wearing headscarves in?public. Limitations are under consideration by?several other European countries, and?polls indicate high public support for?the move.But the?strict niqab is much more popular among the?Muslim population of?Europe than the?hijab.The Russian Constitution guarantees freedom of?expression of?national and?cultural identity. There is no ban on?the hijab in?Moscow, though some precedents are to?be found in?regions with a?higher percentage of?Muslim populace.In the?Stavropol region, which borders on?the North Caucasus, the?administration of?the local Pyatigorsk State Linguistic University introduced dress code recommendations for?students and?personnel, advising to?avoid "bare feet, undressed bellies and?aggressive religious features," including the?hijab.The rules caused a?public scandal and?were denounced as unconstitutional by?local law enforcement agencies. Pyatigorsk police chief Savely Airapidi was quoted by?RIA-Novosti as saying, "I think that it's illegal, we can't set a?ban. It's the?same as banning short skirts."In Tatarstan, a?stronghold of?moderate Islam, the?head of?the town of?Novosheshminsk, Vyacheslav Kozlov, reportedly banned headscarves in?January, Islamnews.ru reported. Local Muslim groups staged a?rally in?Kazan last Friday to?protest this and?other pressure attempts.Last year, a?woman working in?a car dealership in?Kazan was forced to?resign over a?headscarf after two years at?the job, Rossiiskaya Gazeta reported. The?woman refused to?work without a?hijab, which her bosses said was scaring off the?clients.Bans and?restrictions may seem a?lesser evil compared with the?threat of?attack from?an ill-advised Islam hater in?a city like Moscow."My parents are very afraid for?me," Moscow student Akhilgova admitted.But she said that despite all hazards, she will stick to?her decision to?wear a?hijab.She admitted experiencing "several unpleasant incidents" over the?headscarf, but described them as insignificant."There were cases like after the?metro attacks, when I saw people running away from?me across the?wagon," Akhilgova said. "But at?the same time, there were people who gave me a?seat."Marked as a terrorist 16, 2011Anna NemtsovaThose labeled "black widows" after last spring's metro bombing find it difficult to go on with their lives, especially as terrorist attacks continue.Zaira, a petite woman living in Makhachkala, the bustling capital of the Russian Republic?of Dagestan, recently gave birth to a boy. But outside her home, people think of her as a potential killer, not a mother. On a recent trip to a grocery store, she said, customers pointed and said, “Here comes the martyr.”The young woman says she prefers to stay at home -- "locked between the four walls" of her apartment rather than confront the accusing looks of strangers in this largely Muslim region of southern Russia.What has turned into a public nightmare for Zaira began last spring after two women also from Dagestan blew themselves up on the Moscow subway, killing 40 and wounding more than 100 passengers.They shared more than geography with Zaira. Like her, their former husbands were slain insurgents who had battled Russian forces in the?North Caucasus. Because a number of?suicide bombers?targeting?Moscow?have been the wives of dead rebels, they have been dubbed "black widows" by the Russian media.?After the attack, Russian newspaper Komsomolskaya Pravda published the photographs of 22 actual and potential "black widows," with personal information such as the districts where they lived.The first portrait on the list was of one of the?Moscow Metro bombers. The headline said: "1,000 widows and sisters of Dagestan guerrillas help terrorists."Zaira’s picture was among the 22, an unmistakable accusation that she was a?potential suicide bomber, someone to be feared and watched. ?"How reckless of them to put me on that list!" said Zaira, in a recent interview. "If I wanted to commit a terrorist attack, I would have not lived openly in Dagestan’s capital. I would not have enrolled my son in school."In the last decade, Russia’s security agencies have tended to label all fundamentalist Muslims--called Wahhabis by the police, even though they do not always accept that term themselves--as terrorist suspects. And the police have engaged in sometimes brutal tactics in an attempt to suppress a violent insurgency, according to?human rights activists. "Your house gets burned, and you and your family may “disappear” or be murdered," said Tatyana Lokshina, of the Moscow office of?Human Rights Watch. "Brutal methods and the lack of free space for alternative opinion or religious views push youth into the underground."Lokshina said that when the list of the so-called Wahhabi widows was released to the newspaper by police officials, nobody cared much about the women’s rights, or the effect such a branding might have on their lives.?It was just another tactic in a dirty conflict, she said.But police insist they are fighting a deadly enemy across the?Caucasus.?Last week, they arrested another young woman and alleged "black widow" in the Russian republic of Ingushetia. Fatima Yevloyeva, 22, was a sister of Magomed Yevloyev, the suspected?suicide bomber?who recently struck at Domodedovo airport, killing 36 people in the arrivals area.Investigators say Fatima had traces of explosives on her hands; allegedly she helped her brother to build the bomb. Fatima’s husband, a suspected insurgent, was killed last summer.Last year, Dagestan led Russia in the number of terrorist attacks: 68 people died and 195 were injured in 112 attacks, five of them committed by suicide bombers. Human Rights Watch reported 20 abductions and 8 murders of fundamentalist Muslims by the police in Dagestan in the last six months of 2010.According to deputy prosecutor general Ivan Sydoruk, there were twice the number of terrorist attacks in 2010 than in 2009 in the entire?North Caucasus."To?reform Islam in Russia, the authorities need to make an effort to listen to all religious leaders, and not just to the loyal ones," said Lokshina. "The development of civil society institutions that would protect human rights is the solution to Dagestan’s partisan war."Gennady Gudkov, a member of parliament and deputy head of the security committee, said legislators need new political power to oversee counter-terrorism efforts by the country’s security services. Gudkov complains that parliament has no control over the National Anti-Terrorism Committee, the main agency charged with leading the campaign against terrorism, and can’t even get basic information about what the Committee is doing. ?"We deputies are not allowed to investigate the Committee’s work," he said. "So it is a big secret what methods they are using to fight terrorism. We have no idea."And the case of Zaira suggests that some of those methods may be counter-productive.?Since her first husband was killed in the mountains six years ago, Zaira said she has tried everything to move on and build a new life. She remarried, had another baby and got a job.?All of that collapsed with the newspaper list. Zaira lost her job as a cleaner at a store. ?She said she took her 8-year-old son out of a secular school, and enrolled him in a private religious school, after a teacher beat him for being a Wahhabi. The police, she said, frequently question her.?"We wish we could fit in," she said. "But we are being pushed out."Europe's ATV-2 space freighter heads to ISS 17/02/2011The European Space Agency's said it launched a second Automated Transfer Vehicle, the Johannes Kepler, from the Kourou space center in French Guiana on Thursday.The Ariane 5 carrier rocket carrying the spacecraft lifted off at 00:50 Moscow time (21:50 GMT Wednesday).Johannes Kepler is expected to dock directly and autonomously with Russia's Zvezda module to deliver cargo, propellant and oxygen to the orbital station. It can carry about 7.5 metric tons of payload.The first ATV, Jules Verne, was launched in 2008, delivering about 4.5 metric tons of food, fuel and equipment to the ISS. It also performed practice demonstration manoeuvres during its mission.MOSCOW, February 17 (RIA Novosti)02/17 11:06 ? 02/17 11:17 ? Search at Inteko related to embezzlement of 13 bln rubles from Bank of Moscow - Interior Ministry police raid real estate tycoon's office 3:52 a.m. EST, February 17, 2011MOSCOW (Reuters) - Russian police armed with machine guns on Thursday raided the Moscow offices of Inteko, a real estate firm owned by the wife of Moscow's former mayor, one of Russia's richest developers, the Interfax new agency reported."All workers at Inteko were gathered in one room and locked inside," an unnamed worker at the company said. "They're not explaining to us what is happening."Yelena Baturina, wife of former Moscow mayor Yuri Luzhkov, who was fired late last year after a public confrontation with President Dmitry Medvedev, has seen her wealth nearly halve to $1.1 billion, according to Finans magazine.The search was linked to a probe into suspicions of embezzlement of 13 billion roubles ($443.7 million), said Irina Dudukina, a spokeswoman for the investigative committee of the Interior Ministry.February 17, 2011 11:49Search of Inteko office is act of pressure - Baturina (Part 2). Feb 17 (Interfax) - Yelena Baturina, head of the Inteko company and wife of ex-Moscow Mayor Yuri Luzhkov, thinks that the current search in the Inteko office is unfounded."I am absolutely positive that this search has nothing to do with us or the Bank of Moscow. This is nothing but an order to press us," she told Interfax by phone.It was reported earlier that a search was under way at the Moscow office of the Inteko construction company belonging to Yelena Baturina, the wife of former Moscow Mayor Yury Luzhkov."All Inteko employers have been told to gather in one room and locked up. We are not allowed to use mobile phones or photo or video devices to shoot the developments, and nobody has explained what is going on", a source with the company told Interfax.The people wearing OMON uniforms have blocked all entrances to and exits from the office. "About five people, who seem to lead the operation, are working at the company's accounting department, where they are probably seizing documents," he said.Interior Ministry spokesperson Irina Dudukina said that the Russian Interior Ministry's Investigative Committee conducted search in relation to the embezzlement of 13 billion rubles from Bank of Moscow.te dpAuditing Chamber exposes major financial violations in Moscow, February 17 (Itar-Tass) -- The Auditing Chamber of Russia has exposed financial violations in Moscow in 2010 to the sum of 217 billion roubles, as well as facts of the misuse of money to the sum of over eight billion dollars, Sergei Stepashin, President of the Auditing Chamber, said on Thursday at an expanded meeting of the collegium of the Investigation Committee, which summed up the results of the work in 2010. For the sake of comparison, he said that the amount of financial violations in the country in general was 483 billion roubles, and the amount of the misuse of financial resources was two billion roubles. Moscow Prosecutor suspends extremist Movement Against Illegal Immigration 11:21The Moscow Prosecutor's office has suspended the activities of the public nationalist organization Movement Against Illegal Immigration (Rus. DPNI). The Prosecutor’s Office found its activities extremist. ? February 16, the Moscow City Prosecutor's Office served the chairman of the National Council DPNI Vladimir Ermolaev with its decision on admission of DPNI an extremist organization. The decision was signed by the Prosecutor of Moscow, Yuri Semin, on February 11. ? "The Moscow Prosecutor's Office has decided to suspend the activities of the interregional public organization Movement Against Illegal Immigration until the Moscow City Court reviews the application to ban the activities of this association”, runs the decision. ? Besides, the decision was sent to the Moscow City Court. The Prosecutor's Office requests the court to declare DPNI an extremist organization. ? DPNI intends to appeal the decision to suspend its activities in court.17 February 2011, 10:15Sobyanin says he needs time to win 'relaxed' Moscow's trust Andy Potts at 17/02/2011 11:11Moscow is more relaxed than other European capitals, according to mayor Sergei Sobyanin.But he admitted that while he liked the city, he had a long way to go to persuade its inhabitants to put their faith in his leadership.“I do not think there is a lot of trust in me,” he said in an extended interview broadcast on Ekho Moskvy.“But there is an advance and the hope is that Moscow will change for the better. I, along with Muscovites, hope for this.“To be credible, so show some real progress, takes a couple of years.”?Immigration alertThe riots on Manezhnaya Ploshchad last December have been the single biggest event in the city since Sobyanin took charge, and he admitted that there were problems with extremism and immigration.But he argued that this was a social problem more than a political one, saying that most of the rioters were “disorderly teenagers” manipulated by radical groups, Newsmsk.ru reported.“The level of extremism is much higher than it was three or five years ago,” he said. “This matter must be dealt with seriously, especially in schools and in the home.”However he warned that there was a serious problem with illegal immigration in Moscow, which he believes the city shares with the rest of Europe.“There is no single European country which can effectively solve this problem,” he said. “I couldn’t work out where I was when I went to the French capital and saw people with ‘non-Parisian’ skin colour.”The solution for Moscow’s immigration worries should be bridging the wage gap between illegally imported cheap labour and their Russian equivalents.“The strongest motivation for using migrants is the huge difference in salaries between Muscovites and the newcomers,” he said, adding that increasing penalties for employing illegal migrants would be an effective measure.?Freedom of speech, not free votesThe mayor rejected claims that he was free from public scrutiny in the city’s media, while promising to reopen Triumfalnaya Ploshchad as soon as possible and allow opposition groups to rally there.“We have an opinion that there is no freedom of speech in Russia or in Moscow, but I do not agree with this,” he said. “I could use the example of your radio station [Ekho Moskvy] to say that you pick up existing problems in the city.“This also applies in the other media. Putting a ‘squeeze’ on this information is highly unlikely.”However, free elections for mayors and regional governors are also highly unlikely with the recently appointed city boss dismissing claims for elections as “a fetish”.He added that it was not an effective mechanism if a governor could be re-elected indefinitely.And underlining his aversion to running for election he insisted that he would not be running for president, despite agreeing to head the Moscow branch of United Russia.He was also unwilling to decide at this stage whether he should feature on the party’s list for the upcoming parliamentary elections.?Outlining his visionSince taking office in October Sobyanin has kept a fairly low media profile, particularly compared with his predecessor Yury Luzhkov who regularly gave in depth interviews to TV-Centr, the city-owned broadcaster.And his actions, most notably initiating a cull of kiosks, replacing huge swathes of top management and running into criticism over city snow drifts, have not won him a great deal of affection from residents.Wednesday’s two-hour slot on radio station Ekho Moskvy represented a rare chance to hear what the mayor wants to see in the city in the future.And that includes more restrictions on building in the historic centre of the city, but no immediate plans to move the Peter the Great statue or persevere with the “inefficient” fourth ring road.He also rejected proposals for a congestion charging zone following London’s model and restated his pledge to upgrade the metro to solve the city’s transport problems.Sobyanin admits Moscow has few mosques, February 17, Interfax - Moscow Mayor Sergey Sobyanin has said he could not say when a new mosque could be built in the capital."Mosque construction will be carried according to the relevant procedure, with urban development plans and design documentation. Apart from that, there will have to be public hearings," Sobyanin said in an interview with the Ekho Moskvy radio station.There are few mosques in the city, he said."Religious buildings are a very complicated issue. We are trying to pay more attention to it. Of course, we must take into account residents' opinion, however, I agree: mosques are scarce," Sobyanin added.Asked when another mosque will be built in Moscow, Sobyanin said: "I cannot say for sure."17 February 2011, 10:06Moscow does not need gay pride parades – Sobyanin, February 17, Interfax - Moscow Mayor Sergey Sobyanin has said that he doesn't support the idea of gay pride parades and similar events being held in the capital."I have my own attitude towards this issue. I believe Moscow does not need this," he said in an interview with the Ekho Moskvy radio station on Wednesday.Russian Press at a Glance, Thursday, February 17, 2011 17/02/2011A brief look at what is in the Russian papers todayPOLITICSPresident Dmitry Medvedev said Russia would seek to strengthen its partnership with Italy in the energy sector(The Moscow Times, Vedomosti, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta)Egypt-inspired protests spread to Libya, where protesters are demanding the release of a jailed lawyer. At least 14 people were injured in clashes in the country's second largest city, Benghazi(Kommersant, Nezavisimaya Gazeta)The European Parliament may adopt a resolution on laws and human rights in Russia on Thursday(Kommersant)METALS & MININGThe world's biggest aluminum producer, UC RusAl, is returning to the ruble debt market for the first time since 2005 as yields drop to record lows.(The Moscow Times)OIL & GASRussia's state environmental watchdog confirmed that concerns voiced by the World Wildlife Fund about a Rosneft-BP joint project in the Russian Arctic are well-founded. The fund says that oil and gas deposits partially lie on environmentally protected areas(Kommersant)Belarus is seeking to review its price for Russian gas for 2012, with graduate growth on the current level only after three years. Minsk says an agreement has already been reached, while Moscow is cautious on the issue(Vedomosti)TELECOMS & ITRussia's largest cell phone operator, MTS, will begin selling Glonass-compatible smartphones in April, a month later than initially announced. Though the device is less technically advanced than the iPhone, experts say the new handset could easily outsell it in Russia(The Moscow Times)The U.S. authorities consider freedom of the Internet one of its top foreign policy priorities and are ready to allocate $25 million to support "bloggers and internet activists" in countries with authoritarian regimes(Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta)BANKING & FINANCEMore than 10 investors spent over $100 million each on VTB shares during the bank's recent float, deputy president Herbert Moos said. The top spenders include Italy's Generali, China Investment Corporation and U.S.-based TPG Capital(The Moscow Times)SOCIETYThe State Duma will debate a draft law which would impose fines on bribe takers calculated according to the sum of their bribe(Izvestia, Vedomosti, Nezavisimaya Gazeta, Kommersant, Rossiiskaya Gazeta)Russia may adopt a law to guarantee gender equality, Health and Social Development Minister Tatyana Golikova said. She said that the Russian legislation has "no single mechanism for prevention of gender discrimination"(Izvestia)The government said on Wednesday that 14,000 people died because of a record heat wave last summer, prompting "the country's leading scientists" to look for ways to mitigate the effect of extreme climatic conditions on the mortality rate(The Moscow Times)Police at Moscow's Kievsky Station detained four alleged terrorists on Wednesday, though the suspects apparently only planned to take a train to Chisinau, Moldova, not stage an attack(The Moscow Times, Kommersant, Rossiiskaya Gazeta)Newly unearthed paperwork confirms that an illegal gambling group sponsored overseas vacations of Moscow region's top prosecutors and their families, the Russian Investigative Committee said(The Moscow Times, Vedomosti, Kommersant, Rossiiskaya Gazeta)RELIGIONTalks between Russian President Dmitry Medvedev and Pope Benedict XVI may bring the heads of the Russian Orthodox and Catholic churches closer to holding their first meeting(The Moscow Times, Kommersant)SPORTRussian heavyweight Alexander Povetkin may hold a bout with David Haye for the WBA title this May(Kommersant)Jailed Oil Tycoon Khodorkovsky Is ‘Perfect Martyr’: Interview by Catherine HickleyFeb. 17 (Bloomberg) -- “Khodorkovsky,” a documentary about the former billionaire chief of Yukos Oil Co., grabbed headlines even before its premiere at the Berlin Film Festival when thieves stole it from the director’s Berlin apartment. It was the second attempt to steal the movie, according to Cyril Tuschi, who has been working on it for five years. Funded by German television, the film portrays Mikhail Khodorkovsky, 47, as a man who has evolved, as the press release puts it, “from a perfect socialist to a perfect capitalist and finally, in a Siberian prison, becoming a perfect martyr.” Tuschi scored interviews with Khodorkovsky’s first wife, his mother, his son, accomplices and the man himself, who has been in jail since 2003 and has been sentenced to stay there until 2017. They paint a picture of a charismatic, authoritative Russian who ran afoul of another charismatic, authoritative Russian. Tuschi, 42, says it was the man and the dynamics of his relationship with Vladimir Putin that drew him. “Maybe it’s a romantic projection, but I saw through Khodorkovsky that people can change,” Tuschi said in an interview in Berlin. He said he still hasn’t heard anything from police investigating the break-in. His film skates over the murky 1990s, an era when Khodorkovsky was becoming Russia’s richest man, founding a bank called Menatep, grabbing stakes in companies, and, along with other oligarchs, pushing the government to create a regulatory and tax framework that benefited them. Yukos Transformation At the beginning of the last decade, he changed tack, transforming Yukos, then Russia’s second-largest oil producer, into a global operation. He attracted foreign investors, adopted U.S. accounting standards and Yukos shares soared. Yet he also began supporting parties that opposed Putin and sought to break the state’s monopoly on oil pipelines. In short, he challenged Putin’s authority. Tuschi’s film shows footage from a meeting between Putin and business leaders in 2003. Khodorkovsky asked a question about corruption at the Kremlin. Putin snarled back that Yukos’s taxes needed examining. Interviewees say that may have been the moment Putin snapped. Yukos was hit with a $3.4 billion tax bill that year. Khodorkovsky landed in jail, where he’s serving time for fraud and tax evasion. In December last year, he got a second conviction, this time on charges of oil embezzlement. Tuschi interviewed him after that verdict from a cage in the court. Impossible Theft Laughing at the “absurdity” of the ruling, Khodorkovsky says it would be impossible to steal the quantity of oil he was accused of taking. Asked why he didn’t flee Russia before his arrest in 2003, he shrugs. “Naive ideas about justice?” he says. Interviewees speculate on why Khodorkovsky didn’t flee, as some of his business partners did. The most interesting theory comes from Christian Michel, a former Khodorkovsky adviser. He says the one-time billionaire may want to “redeem himself” through jail time to be in a position to forge a political career when he finally emerges. U.S. Secretary of State Hillary Clinton said after Khodorkovsky’s second verdict that it “raises serious questions about selective prosecution -- and about the rule of law being overshadowed by political considerations.” Different Perceptions Yet in contrast to the outrage of Western observers and Russian expatriates, Tuschi’s film shows ordinary Russians accusing Khodorkovsky of robbing their country and welcoming his imprisonment. Why are perceptions of the former oligarch so different at home and abroad? “Russian people were brought up with the sense that all rich people are bad, being rich is a sin,” Tuschi says. That seems too simple. One shadow hanging over the film and never really explored is Putin’s insinuation that Khodorkovsky was implicated in the 1998 murder of Nefteyugansk mayor Vladimir Petukhov. Why wasn’t Khodorkovsky charged with murder if Putin is so convinced he was involved? “Maybe because they don’t have enough evidence,” said Tuschi. “Or maybe they fear that if they bring up stuff from this time then they will all drown in it, all Russia’s elite.” Or maybe Putin is holding something in reserve. Khodorkovsky’s lawyer Yury Schmidt said on Jan. 13 that he “wouldn’t be surprised” if prosecutors file murder charges against his client, even if it’s “irrational.” For more information on the Berlin Film Festival, go to . (Catherine Hickley is a writer for Muse, the arts and leisure section of Bloomberg News. Opinions expressed are her own.) To contact the writer on the story: Catherine Hickley in Berlin at chickley@. To contact the editor responsible for this story: Mark Beech at mbeech@. Last Updated: February 16, 2011 19:00 ESTRoman Abramovich declares assets Abramovich, the Russian oligarch, has declared his assets for the first time in more than a decade, disclosing that he has 16 properties, seven cars, 22 bank accounts, six companies, and one football club. By Andrew Osborn, Moscow 7:00AM GMT 17 Feb 2011 The 44-year-old businessman and owner of Chelsea Football Club made the declaration as part of a campaign to run for re-election as a local MP in Chukotka, a remote region in Russia's far east which he used to run on the Kremlin's behalf.The disclosure is part of President Dmitry Medvedev's anti-corruption drive as he pushes all politicians to declare their assets.Mr Abramovich's declaration listed seven properties in Britain, two in the United States, three in France, and four in Russia. They are known to include two houses in Lowndes Square, Belgravia, which are together estimated to be worth up to ?150 million; a house in the South of France once used by Edward VIII and Wallace Simpson which he is thought to have spent ?30 million; his main Moscow residence, two properties in Aspen, Colorado together worth ?30 million, and a luxurious residence in the Caribbean worth ?56 million.The publicity-shy tycoon also disclosed that he owned seven cars, mostly a mixture of high-end Mercedes and BMWs that would altogether cost an estimated ?650,000 to buy new. On top of that, he said he had the equivalent of ?71.78 million in cash spread across 22 separate bank accounts and a further ?25.48 million tied up in shares. Including Mr Abramovich's industrial business empire, his total net worth is estimated at ?11 billion, making him Russia's fifth richest man according to Finans magazine.The estimated value of Chelsea, the Premier League champions and FA Cup holders stands at ?402.19 million, according to Forbes magazine. In 2003, he bought the club for ?140 million.A spokesman for Mr Abramovich's asset management company Millhouse said he hoped the list would clear up any misunderstandings about the businessman's wealth. "It is a very complete declaration and hopefully this will put to rest rumours about other assets that have nothing to do with him," the spokesman, John Mann, said. But in a country where the gap between the haves and the have-nots is yawning and the average annual wage is just over the equivalent of ?5,000, details of Mr Abramovich's wealth accumulation are likely to stir resentment. Mikhail Gorbachev, the last leader of the Soviet Union, singled out Mr Abramovich for particular criticism in an interview with the Novaya Gazeta newspaper on Wednesday. "They (the ruling classes) are rich and debauched," he said. "Their ideal is to be something close to Abramovich. I scorn this idea. I am ashamed of this rich debauchery. I am ashamed for us and the country." Mr Abramovich's declaration is a vast improvement on his 1999 filing in which he claimed he had earned just ?254, 865 the previous year, owned no property, and was the proud owner of an old Lada. His latest declaration for some reason made no mention of his collection of private jets and yachts. Analysts said Mr Abramovich's decision to continue on as a local MP for Chukotka was motivated by a desire to show the Kremlin that he is continuing to put something back into the country that has made him so rich. Kandinsky, forgery and Israeli connection painting exposed as Israeli forgery after gang exhibits work of art in museums evades capture and nearly manages to sell it for €3 millionMenachem Gantz Published:?02.17.11, 07:52 / Israel CultureDid a talented Israeli gang manage to create a pseudo-new work of art by world renowned Russian painter Wassily Kandinsky, present it at a museum in Moscow without the con being exposed and then nearly sell it at an astounding price to an Italian collector?A few months ago, three Italians met with a wealthy art loving businessman in Milano Italy and offered him the chance to purchase an unknown painting by Kandinsky called 'K19' which was supposedly painted in 1919. Kandinsky is one of the 20th century's (1866-1944) most famed Russian painters. His paintings include 'The Blue Rider' and 'Composition 8'. The businessman was excited about the painting and even agreed to pay €3 million ($4.09 million) for it. But his growing fears that the painting was a forgery led him to approach the authorities. The Milano police department launched an investigation during which they discovered that the painting wasn't a forgery of an existing Kandinsky, rather a painting he had never created. Milano police believe that the gang members ordered the painting in 2008 from an Israeli artist of Russian origin who created the work of art in the style of Kandinsky's work. So far, three Italians and three Germans have been arrested over the affair. Milano police suspect that in addition to the man responsible for the forgery, two additional Israelis are involved in the con. The investigation revealed that this is the work of a sophisticated gang: After the fake work of art was completed, it was displayed in a Moscow museum without the museum's management noticing that they had a forgery in their midst. It was then exhibited in a German gallery where the gang had another trick up their sleeve: They purchased the painting from the gallery and only then did they approach the Italian businessman. Apparently the Israeli forger is more than just a con-artist: It took art experts in Paris three months to be convinced that the painting was in fact, a forgery.National Economic Trends17 Feb, 2011, 02.34PM IST,REUTERS Russian rouble at new 9-month high on rising oil: The Russian rouble firmed on Thursday, approaching a nine-month high versus the dollar as oil rebounded from an 11-week low. Brent crude oil traded at its highest level since 2008 at $104.11 a barrel, promising higher budget revenues and stronger economic growth for Russia, the world's top crude producer. The unrest in the Mideast pushed Russia's Urals export blend up past the $100 per barrel mark for the first time since the 2008 pre-crisis peak. As the euro-dollar cross strengthened, the dollar lost nearly 0.3 percent against the rouble reaching 29.23 roubles at 0718 GMT, while the euro added 0.4 percent and traded at 39.65. "If trading volumes are significant (because of expensive oil and upcoming taxes), the basket quotes may fall," said Andrey Mishko from Nomos Bank. Against the basket, comprised of 0.55 dollars and 0.45 euros, used to guide the exchange rate policy, the rouble lost 5 kopecks to 33.94. "By the end of today's trading, the euro will fall against the dollar, prompting sales in the currency basket," said Anton Zakharov, analyst at Promsvyazbank. He said this will keep the rouble on the rise, trading within a band of 33.98-33.82 against the basket.Weekly inflation slows to 0.2% CapitalFebruary 17, 2011According to Rosstat, weekly consumer inflation slowed to 0.2% in the period 8-14 February. Consumer inflation has hit 2.9% since the start of the year, implying that the annual CPI is approximately 9.7-9.8% at the moment. A detailed breakdown shows that a number of state non-monetary measures (including state grain interventions and investigations into fuel price setting) have already had an impact on the CPI, with gasoline prices unchanged and other food items slowing the inflationary pace. We are not sure that these data have set a new price trend and will have a significant impact on Central Bank of Russia (CBR) decisions. The CBR has recently been focusing on inflation in the non-food segment and monetary pressures in this segment, rather than headline inflation. Nevertheless, CBR Chairman Sergey Ignatiev has previously remarked that the CBR hoped for inflation to decelerate as a result of non-monetary actions - and this is what is happening now. Hence, it is likely that any increases during the CBR meeting in February will be less hawkish.Russia to auction off Dagestan Airlines on Thursday Russian Federal Agency for State Property Management will hold an auction on Thursday to sell 100% of shares in Dagestan Airlines at an initial price of 790 million rubles ($26.77 million), the agency said in a statement.The agency closed the bid book on February 10. The bid increment is set at 8 million rubles, the agency said.Dagestan Airlines' short-term debt amounted to 442.444 million rubles, including 273.926 million rubles in accounts payable as of September 30, 2010, the company's balance sheet showed.The company runs a fleet of 11 aircraft. HYPERLINK "" \t "_blank" One of its Tu-154M airliners was destroyed in a crash on December 4 at Moscow's Domodedovo airport after an engine failure.MOSCOW, February 17 (RIA Novosti)?Business, Energy or Environmental regulations or discussionsBRIEF-Moody's:Russian banks' profitability likely to be restored Feb 17, 2011 1:51am EST Feb 17 (Reuters) - Russian banks* Moody's: Russian banks' sound profitability likely to be restored in 2011.Russian banks' sound profitability likely to be restored in 2011 'sFebruary 17, 2011Following a decline in loan-loss charges, improved loan growth and stabilising net interest margins, Russian banks' net profits are likely to improve in 2011, says Moody's Investors Service in a Special Comment. The report explores the sector's profits in light of declining credit costs, examines the current trends and presents Moody's profit outlook for the sector in 2011. In the report, Moody's also notes that the ratings of Russian banks continue to be constrained by a number of key credit weaknesses and any improvement in profitability alone is not likely to lead to upward rating movement. Moody's says that the anticipated improvement in the banks' bottom-line performance contrasts with the difficult 2009 and marginally positive 2010. During these two years, very high credit costs continued to impair Russian banks' bottom-line performance. "Profitability improvements are most likely to stem from a contraction in cost of credit risk," explains Semyon Isakov, a Moody's Assistant Vice President, Analyst and author of the report. "Moody's expects Russian banks to report a return on average assets of above 2% for 2011, which is on par with pre-crisis levels. Declining loan-loss provisioning charges will be the main cause of this, because in Moody's view, banks have bolstered their loan-loss reserves to levels commensurate with the impairments in their loan portfolios," adds Mr Isakov. Moody's report notes that credit charges are likely to decrease to 100-200 basis points (bps) of gross loans in 2011, compared with 200-400 bps in 2010 and a very high 500-700 bps in 2009, given the recession and global financial crisis. In addition, Moody's outlook on the earnings performance of Russian banks is underpinned by the assumption that banks will, on average, be able to maintain recurring earnings power (pre-provision earnings/average assets) of 4% in 2011. "We expect pre-provision income to stabilise at the level reported in Q3 2010, because the recovering growth in gross loans, accelerating inflation and stabilising loan rates should underpin net interest margins; these margins account for over 70% of the sector's revenues," explains Mr Isakov. Moody's also notes the high correlation between the performance of the Russian banking system and the health of the domestic economy. As a result, the sector is vulnerable to external shocks, particularly as Russia is highly sensitive to fluctuations in global commodity prices. Although Moody's main scenario envisages a return to profitability, exposure to event risks continues to constrain the ratings assigned to Russian banks.Russian Central Bank Annuls Rabobank’s Operating License Paul AbelskyFeb. 17 (Bloomberg) -- Russia’s central bank annuled the operating license of Rabobank Groep NV’s local unit, Bank Rossii said on its website today. To contact the editor responsible for this story: Paul Abelsky at pabelsky@ Last Updated: February 17, 2011 02:24 ESTFor the Record February 2011LONDON — Russian Railways plans to?sell at?least ?1 billion ($1.6 billion) of?bonds this year, becoming the?first Russian issuer in?the British currency since 2007, and?will start presentations to?potential investors within the?next two months, chief executive Vladimir Yakunin said Wednesday, adding that the?company has no plans to?borrow in?Asian currencies.(Bloomberg)Vneshekonombank is seeking an?unsecured loan of?$1.5 billion to?$2 billion for?more than three years at?a lower interest margin than the?150 basis points negotiated by?Sberbank for?a three-year deal in?December, three people with knowledge of?the situation said Wednesday.(Bloomberg)Bank of Moscow Owners May Sell Stake at Auction, Vedomosti Says Henry MeyerFeb. 17 (Bloomberg) -- Bank of Moscow shareholders including Chief Executive Officer Andrei Borodin plans to offer their 40 percent stake in the lender at auction, Vedomosti reported, citing an unidentified person familiar with the matter. The sale may take place this month, the Moscow-based newspaper said today. The city of Moscow, which controls the lender, has plans to sell its stake to state-run VTB Group. To contact the reporter on this story: Henry Meyer at hmeyer4@ To contact the editor responsible for this story: Brad Cook at bcook7@ Last Updated: February 17, 2011 00:41 ESTShareholders of Bank of Moscow may auction their stakes CapitalFebruary 17, 2011Event: Today (17 February) Vedomosti reported, citing unidentified sources, that Bank of Moscow CEO Andrei Borodin plans to sell his stake in Bank of Moscow in a public auction. Borodin and Lev Alaluev, another top manager at Bank of Moscow, control a combined 20.3% stake. According to Vedomosti's sources, Stolichnaya Strakhovaya Gruppa, which owns 17.3% of Bank of Moscow, may also sell its stake via a public auction, but this has yet to be discussed by its board of directors. The shareholder structure of Stolichnaya Strakhovaya Gruppa (25% + one share - City of Moscow; 25% - Bank of Moscow) suggests that the bank's management should have a vote there. Action: Moderately negative for VTB, in our view. Rationale: Although we think the acquisition of the City of Moscow's stake (46.5%) in Bank of Moscow by VTB is likely to happen, as the City of Moscow appears to favour VTB as a buyer, a public auction for other stakes in the bank could boost its price, which may be negative for VTB as a bidder. VTB plans to acquire 100% of Bank of Moscow by YE13. Svetlana KovalskayaTycoon Kerimov becomes largest individual shareholder of VTB 17/02/2011Russian senator and tycoon Suleiman Kerimov has bought $500 million worth of shares in Russia's second largest bank, VTB, the Vedomosti business daily said on Thursday."Kerimov's representative confirmed that the businessman's two funds acquired a stake of more than 1.5% in VTB, worth $500 million," Vedomosti said. "He also said Kerimov used his own funds to acquire the shares."The tycoon applied to buy 5% in VTB shares, but got less than he expected, sources close to the deal told Vedomosti.The paper wrote that Kerimov would continue his participation in the government's privatization program, which includes a 7.6% stake of the country's top bank, Sberbank. Kerimov will bid for the whole stake during the sale, which is to start in the second half of the year.MOSCOW, February 17 (RIA Novosti)Russia tycoon Kerimov buys into VTB, eyes Sberbank-paper Feb 17, 2011 7:07am GMT* Suleiman Kerimov buys $500 million stake in VTB -Vedomosti* Gold, potash tycoon now bank's largest private shareholder* Russia raised $3.3 billion in VTB 10 pct stake sale* Kerimov also to bid for Sberbank stake, Vedomosti sourcesMOSCOW, Feb 17 (Reuters) - Russian tycoon Suleiman Kerimov bought $500 million worth of shares of Russia's second largest lender VTB (VTBR.MM), business daily Vedomosti reported on Thursday, to become the bank's largest private shareholder.Last week Russia raised $3.3 billion in the sale of a 10 percent stake in the lender, the first state-owned company to participate in the country's largest privatisation drive since the collapse of the Soviet Union.Two of the billionaire's funds, including the Swiss Millennium Group, bought over a 1.5 percent stake in the bank for $500 million, Kerimov's representatives told the paper, adding he used his own funds for the purchase.Kerimov, who controls potash miners Uralkali (URKAq.L) and Silvinit (SILV.MM) and Russia's largest gold miner, will also bid for the full 7.6 percent stake in Russia's largest lender, Sberbank (SBER03.MM) that the government plans sell in the second half of 2011, Vedomosti wrote citing investment banking sources.Italy's Generali (GASI.MI) and U.S. private equity firm TPG Capital [TPG.UL] also bought VTB shares worth $400 million. [ID:nWLA4560] (Writing by Jessica Bachman; Editing by Mike Nesbit) Lebedev Sells Bank Stake to Son to Guard Assets, Kommersant Says Henry MeyerFeb. 17 (Bloomberg) -- Russian billionaire Alexander Lebedev sold 15 percent of his National Reserve Bank to his son Evgeny, Kommersant reported, citing the elder Lebedev. Alexander Lebedev sold the stake as part of a bid to safeguard assets from Russian government officials after raids at his bank in Moscow, the Moscow-based newspaper said, without citing anyone. Evgeny Lebedev lives in London, has U.K. citizenship and runs the Independent and Evening Standard newspapers. To contact the reporter on this story: Henry Meyer at hmeyer4@ To contact the editor responsible for this story: Brad Cook at bcook7@ Last Updated: February 17, 2011 00:50 ESTOrascom CEO: Merger will not go through if not approved in March CapitalFebruary 17, 2011Event: Yesterday (16 February), Reuters reported that Orascom Telecom's CEO, Khaled Bichara, has announced that Wind Telecom does not intend to complete the merger with VimpelCom if the deal is not approved at VimpelCom's EGM (scheduled for 17 March), as the merger process has dragged on for too long. According to Bichara, the company would like to clear up all of the concerns surrounding the deal and finalise it quickly, whereas Telenor's injunction may prevent a fast and successful completion. Action: If the deal falls apart, we think it will create positive sentiment for the stock. However, we believe the chances that Telenor will block the deal at the EGM are low. Telenor's request for an injunction threatens the deal, as the approval process may drag on. Rationale: Telenor has recently commenced arbitration to protect its pre-emptive rights in the merger. The company's request for an injunction is a major stumbling block for VimpelCom's other major shareholder, Alfa, as it may delay the deal and prevent its completion. The court is due to hear Telenor's request on 25 February, which will be the next important event. VimpelCom, on a standalone basis (excluding Wind Telecom), trades at 3.6x EV/EBITDA 2011E, a very attractive valuation, in our view. We think the chances of Alfa getting the deal approved are high, as it needs just 28% of minorities to vote in favour if all minorities participate in the vote. Ivan KimRussia's Solway confirms $3 bln nickel smelter investment in Indonesia Feb 17, 2011 9:23am GMT(Adds details) JAKARTA Feb 14 (Reuters) - Russia's Solway Group on Thursday confirmed plans to build an Indonesian nickel smelter with the capacity to produce 50,000 tonnes of the metal a year. "We expect to start production in 2014," said Vasily Tsarev, consulting partner for Solway in Indonesia, adding that capacity could be expanded to 80,000 tonnes. Hatta Rajasa, Indonesia's chief economic minister said on Monday that the Russian firm planned to invest $3 billion to build the smelter on Halmahera island in eastern Indonesia, a sign of growing interest by investors in the country's mineral processing industry. The firm will feed the plant with nickel ore from its concession on the same island, which has confirmed resources of 50 million metric tonnes ore, said Tsarev "But resources can range between 110-115 million tonnes when we do further exploration," he said, adding the firm is looking to acquire nickel mines on Sulawesi island. Indonesia currently produces ferro-nickel from three smelters operated by Aneka Tambang, and nickel-in-matte from smelters operated by PT Inco Tbk , a unit of Brazil's Vale . French's Eramet , the world's sixth-largest nickel producer, has a nickel project on Halmahera in a joint venture with Indonesian state miner PT Aneka Tambang Tbk . Aside from the nickel smelter, privately owned Solway plans to build a 400 MW coal-fired power plant which will be used to power the smelter, said Tsarev. The firm will burn low-quality coal with heating value 5,000-5,500 kcal/kg for the power plan which will be supplied by its coal concession in West Papua, he said. Indonesia, the world's top exporter of tin and thermal coal, is keen to increase revenue from the mining sector. Under a new mining and coal law, miners must by 2014 carry out a minimum of processing before exporting, including on nickel. Indonesia's mining sector attracted 53 trillion rupiah or $6 billion in bank financing up to September 2010, versus the 14 trillion rupiah that banks loaned to the industry in 2006, central bank figures show, despite uncertainties over the country's new mining law. Foreign direct investment as a whole is growing into Southeast Asia's biggest economy, as investors eye its mineral wealth, booming domestic consumption and increased stability, despite concerns over rampant corruption, red tape and inadequate infrastructure. (Reporting by Fitri Wulandari and Rieka Rahadiana) Rusal Trails Alcoa With Owner’s $12.8 Billion Snub to Investors Ilya KhrennikovFeb. 17 (Bloomberg) -- United Co. Rusal, the biggest aluminum producer, is trailing Alcoa Inc. and all other peers as billionaire founder Oleg Deripaska snubs shareholders’ pleas to end a two-year battle for control of OAO GMK Norilsk Nickel. Rusal, trading at about 6.5 times estimated 2011 earnings, has the lowest valuation on that measure among its five main peers, with Alcoa at about 12.3 times earnings and Aluminum Corp. of China Ltd. at 11.9 times, Deutsche Bank AG data show. Moscow-based Rusal has also lagged behind Alcoa’s share gains since the Russian company listed in Hong Kong on Jan. 27, 2010. Chief Executive Officer Deripaska, who rebuffed two offers last year for Rusal’s 25 percent holding in Norilsk, received a sweetened $12.8 billion bid last week from the nickel company to buy back most of its stake. Deripaska rejected that price in an interview with CNBC. The holding’s market value has risen 56 percent in a year to $11.4 billion, almost half Rusal’s value. “A sale of the Norilsk Nickel stake at a premium to the market may prove to be the best outcome for UC Rusal, putting the company in a solid net cash position and opening the door to development opportunities, both organic and through M&A,” Marat Gabitov, an analyst in Moscow at UniCredit SpA, said in a note. Investors in Rusal’s initial public offering a year ago, including billionaire Li Ka-shing and New York hedge-fund manager Paulson & Co., saw the stock tumble as much as 38 percent before recovering. Rusal’s 21 percent gain since its listing compares with a 30 percent jump for Alcoa. While the rebound was helped by an increase in Norilsk’s value, Rusal would do best to sell the stake, according to some analysts. Let Battle Commence “Rusal has benefited from its premiums from Norilsk but if it were to sell its stake at a premium, then that would also be well received by investors,” said Helen Lau, a Hong Kong-based analyst at UOB-Kay-Hian Ltd. “The key issue now is the company’s relationship with Norilsk.” Deripaska has been embroiled in a dispute over control of Norilsk with fellow shareholder Vladimir Potanin since 2008. The battle has also drawn in Rusal investors including Glencore International AG and Mikhail Prokhorov, who favors a sale, and Trafigura Beheer BV, which agreed to buy 8 percent of Norilsk. Rusal investor and Chairman Viktor Vekselberg also sought to maintain talks with Norilsk over the stake in the face of opposition from his CEO, Interfax reported Jan. 24. Rusal said in an e-mailed statement on Feb. 11 that its board would consider the latest offer received from Norilsk. HYPERLINK "" Maria Uvarova, a Norilsk spokeswoman, and Vera Kurochkina, a spokeswoman for Rusal, declined to comment further. Higher Bid Norilsk, the largest nickel and palladium producer, on Feb. 11 raised its bid to buy back its shares to $12.8 billion for a 20 percent stake, from $12 billion for 25 percent. That followed talks in late December when Deripaska demanded $16 billion, a person with knowledge of the matter said Jan. 19. Glencore, the biggest commodity trader and Trafigura rival, may not be awarded any contracts by Norilsk, said the person, declining to be identified because the talks were private. By holding out, Deripaska has forced Norilsk to offer about $3.5 billion above the odds for Rusal’s stake, a transfer of value from the nickel producer to the billionaire’s company, said Dmitry Smolin, an analyst at UralSib Capital in Moscow. Rusal would be able to pay off all its debt and still have about $1 billion in cash as a result, he wrote in a Feb. 14 note. Rusal May Soar “Norilsk made a beneficial proposal to Rusal,” Prokhorov said yesterday in an e-mailed statement, adding that his Onexim Group will support the deal. “The situation has obviously come to a dead-end, so one of the parties should take the decision to sell.” Rusal, valued at about HK$198 billion ($25 billion) based on prices in Hong Kong, could increase to as much as $35 billion should it sell out of Norilsk, Prokhorov said Dec. 23. The billionaire owns 17 percent of the company. Deripaska on Jan. 27 said he expects Norilsk’s market value to surge to at least $70 billion this year. That would boost the value of Rusal’s stake to $17.5 billion and add to a buyback’s cost. He also said Rusal’s debt will fall within four years. “Debt will be so insignificant, it won’t be worth mentioning,” he said in an interview in Davos, Switzerland. Rusal’s net borrowings fell to below $12 billion as of Sept. 30 after almost doubling to as much as $16.6 billion following the company’s purchase of Norilsk shares in 2008. “Though many investors were first skeptical about Rusal, the company has been aggressively repaying its debt,” said Alexandre Starinsky, a fund manager at Atria Advisors Ltd. in Moscow, with $300 million in assets including Rusal IPO shares. “Rusal performed well due to rising aluminum prices and its cost leadership based on access to cheap electricity.” Catch Up Of the 23 analysts who track Rusal surveyed by Bloomberg, 17 rate the stock a “buy,” five a “hold” and one a “sell.” Part of the attraction for investors is the potential for Rusal’s market valuation to begin to catch up with its peers should the company resolve the battle over Norilsk’s ownership. Rusal trades at just over half the price-to-earnings ratio of Alcoa and Aluminum Corp. of China Ltd., the Russian company’s closest rival on the Hong Kong Stock Exchange, according to Deutsche Bank’s latest figures, sent by e-mail on Feb. 15. The ratios, prepared before Norilsk’s most recent offer, were 20 times for Alumina Ltd., 18.6 times for India’s National Aluminium Co. and 13 times for Norsk Hydro ASA. “Rusal’s decision to stick with the Norilsk stake has been curbing its development,” Vladimir Zhukov, an analyst at Nomura International Inc., said in Moscow. “Some of its investors are questioning the rationale. Selling this stake would enable Rusal to eliminate completely its debt and unlock significant organic growth potential.” To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@. To contact the editor responsible for this story: Amanda Jordan at ajordan11@. Last Updated: February 16, 2011 16:01 ESTFebruary 17, 2011 11:29Baisarov buys 20% of Russian Copper Co (Part 2). Feb 17 (Interfax) - Ruslan Baisarov has bought a 20% stake in No. 3 Russian copper producer Russian Copper Company (RCC), the company said.Baisarov will join RCC's board of directors, it said.A source said with knowledge of the transaction told Interfax that Baisarov paid around $500 million for the stake.PrAvtoVAZ Chooses Novolipetsk Steel Over Severstal, Vedomosti Says Brad CookFeb. 17 (Bloomberg) -- OAO AvtoVAZ, Russia’s largest automaker, will buy most of its steel from OAO Novolipetsk Steel, or NLMK, instead of OAO Severstal, Vedomosti reported, citing two unidentified people familiar with the matter. AvtoVAZ decided to cut purchases from Severstal over a price dispute, the Moscow-based newspaper said today. To contact the reporter on this story: Henry Meyer at hmeyer4@ To contact the editor responsible for this story: Brad Cook at bcook7@ Last Updated: February 17, 2011 00:34 ESTRussian car market seen 6th largest by 2020 – report | Thu Feb 17, 2011 8:21am IST MOSCOW (Reuters) - Russian car market may become the world's sixth-largest by 2020, up from tenth currently, selling 4 million cars a year, on the back of foreign partnerships, modernisation and more local production, a consultancy said.The market, which halved in 2009 in Russia, tailing off the other growing emerging markets, is projected to grow at an 8 to 14 percent annual rate and reach pre-crisis yearly sales volumes of 3 million cars by 2013, Boston Consulting Group (BCG) said in a statement."The Russian automobile industry has been the roller coaster of the BRICs ...for the past 18 months, but now it is firmly back on track," Ewald Kreid, head of the Industrial Goods practice in BCG's Moscow office, said in the note.The group expects Russia to overtake Germany by 2018 as the largest market for passenger cars and light commercial vehicles in Europe, BCG consultants said in the note.The market is now recovering, with Russia's government expecting near 15 percent growth in its car market this year, around half last year's.Some 70 percent of the 2010 growth came from the government's cash for clunkers programme, initiated to help Russia's flagship carmaker AvtoVAZ cope with the crisis.It boosted AvtoVAZ's Lada brand sales 3.7 percent, and will continue to fuel the sector's growth in the first half of 2011.The sales of passenger and commercial cars rose 30 percent to 1.91 million in 2010 from 2009 levels, but still fell 34 percent short of the pre-crisis 2008 sales, according to the Association of European Businesses (AEB). (Reporting by Nastassia Astrasheuskaya; editing by Louise Heavens)Cherkizovo planning to build meat-processing plant in Kaliningrad region BankFebruary 17, 2011Cherkizovo Group plans to build a meat-processing plant with total investment of ~RUB545m, which will allow the company to receive resident status in the free economic zone and therefore should enjoy a favorable tax regime. The first production line, with annual capacity of 3,600 tons and total investment of RUB315m, is expected to be completed by summer 2011. Should the project prove to be successful, the company can add another production line with annual capacity of 5,400 tons and total investment of RUB230m. Though this project, after reaching full operating capacity, will increase the group's total meat-processing capacity by only ~4%, we treat it as a POSITIVE development, as it will strengthen Cherkizovo's market position in the Kaliningrad region, which the company entered at the end of last year.Serbia’s state-run drugmaker Galenika announced plans to build a plant south of Moscow Week - 17.02.2011Serbia’s state-run drugmaker Galenika announced plans to build a plant south of Moscow to boost sales on the Russian market. Construction of the 28 million-euro ($37.8 million) plant in the city of Obninsk will begin by May and should be completed in 18 months, said Galenika in a statement posted on its website today. General Manager Nenad Ognjenovic signed an agreement with the authorities in the Kaluga region.Wednesday, February 16, 2011The Kremlin vs. Big Pharma, companies outsource to save money. But that doesn't explain the recent decision by some of the world's biggest drug makers to build factories in Russia. Building a factory in Russia is more expensive than most anywhere else.Kai Ryssdal: We're about to tell you a story about the pharmaceutical industry. If it were set here in the United States, you'd know how it'd go. It'd be a story about the approval process for new drugs or whether doctors can take money from drugmakers.But we're going to Russia, where the government's promising to spend billions of dollars on health care. Since the Soviet Union collapsed, Russia's one of the few countries where life expectancy significantly declined and health problems increased, even as the economy grew.In a series of stories, our health care correspondent Gregory Warner will look at how the new money might reshape the Russian health care economy and what Western companies will do to get their hands on some of it. He starts us off in a small Russian city that's courting big drug makers.Gregory Warner: I used to do a lot of driving around post-industrial towns in upstate New York, reporting on the economy. And, at first, my tour of Yarolslavl, Russia, feels quite familiar: the shuttered factories, the fields of grazing cows.I've taken a four-hour train ride from Moscow to get here. I'm touring the city with Eugene Solovjev. a former director of public relations for the Yaroslavl region. He hands me a glossy brochure he assembled.Eugene Solojev: Presentation book of Yaroslavl region.It represents the city he envisions. "Yaroslavl," it says, "The Capital of Advanced Pharmaceutics."Solojev: By Russian and in English!This bilingual booklet is based on some brochures he picked up at a conference in Buffalo, N.Y., some years ago. Like Buffalo, he says, Yaroslavl is pinning its economic revival on the health care industry.Solojev: New pharmaceutical and high technology industry.Apparently, it's working. We come to a stop in a field of bulldozers, hard hats and steel girders. It's a factory being built by Nycomed, the European drugmaker, for $100 million. This factory will create hundreds of jobs when it's built, and tax income for the city. The winding road we took here will be a four-lane highway.What's less clear is how this factory benefits Nycomed. Jens Salatski is the project manager, a German engineer. He rattles off all the reasons that building a factory in Russia is so expensive.Jens Salatski: You need other heating, other heat insulation.The winters are brutal, utility hookups a challenge, infrastructure non-existent, and if you think that labor would be cheaper here because of all the unemployment.Salatski: That's not correct, unfortunately.Warner: So how much would this project be in Germany? A similar size?Salatski: Oh I think cheaper. Cheaper.So why is Nycomed building a factory here? And why are pharmaceutical giants like Pfizer, Novartis, Astra Zeneca and GlaxoSmithKline all expanding their manufacturing operations in Russian cities like this one? Big drug companies have been doing business in Russia for two decades without setting up shop here.I put these questions to Yuriy Krestinsky, the founder of HYPERLINK "" \o "" \t "_blank" Pharmexpert, one of the most widely read trade publications about the Russian drug industry.Yuriy Krestinsky: What I can explain? If you construct your factory in Russia, you will have better conditions for your business activity in this country!Better conditions. Let's stop there for a minute, and just consider this anecdote for what it's worth: About a year ago, the pharmaceutical company Novo Nordisk got a visit at its Moscow office, from the Federal Antimonopoly Service. The FAS charged Novo Nordisk with refusing to sell drugs through Russian distributors. An antitrust violation punishable by millions of dollars in fines.Novo Nordisk had what it thought was a good defense. Those distributors did not have refrigerators.Gennady Shirshov: It's about the cold chain issue.Gennady Shirshov heads a coalition of drug manufacturers in Moscow. The details of the cold chain issue get complicated, but basically, to get your drug distribution license in Russia, you don't have to guarantee to keep the drugs refrigerated during transport. Novo Nordisk didn't deal with those distributors because it didn't want its insulin to be corrupted.Shirshov: Because safety comes first!Warner: But not according to the FAS.Shirshov: That's their opinion!Warner: But their opinion is pretty important though, right?Shirshov: Yeah, but we are a real democracy, by the way. No no, this is a serious business, this is a serious business.It's a big business. The Russian drug market is growing at 20 percent a year. And where there's profit there's compromise. Novo Nordisk announced it would build a factory in Russia. No one can say for sure whether the timing of that announcement was tied to the ongoing investigation of the company. The Moscow office of Novo Nordisk declined to comment. But Shirshov says that many companies are bowing to government pressure to invest here.Shirshov: If you want to, like, highlight what I'm saying in one word, it's about product.Warner: It's about product.Shirshov: You want your product to be here, at whatever cost. So sooner or later they will make peace with the government initiative in some way.There are ways besides building a factory.Shirshov: Like establishing a lab. Or helping to establish a R&D branch of a university and this will be viewed as a localization thing.The Federal Antimonopoly Service declined my request for an interview. The only official who would talk to me on the record was one who stands to gain a lot from this factory building boom: the deputy governor of Yaroslavl, Viktor Kostin. He's learned out how to tap the mutual self-interest of both pharmaceutical businesses and Russia's government, to benefit his region.I caught up with the deputy governor at the Sheremetyevo airport in Moscow. He spends a lot of time on the road courting investors. From his well worn carry on bag he pulled out a pamphlet -- the same one I was shown on my factory tour -- the 'capital of advanced pharmaceutics' brochure.Victor Kostin: The Russian pharmaceutical market is growing rapidly and the market is very attractive to foreign companies. These 'confusions' that happened in the past will be resolved in the nearest future. And the solution will be positive for pharmaceutical business.With that, the deputy governor tucked the brochure back in his suitcase and rose to catch his flight. There was a drug company in Israel awaiting his visit.In Russia, I'm Gregory Warner for Marketplace.Activity in the Oil and Gas sector (including regulatory)02/17 12:21 ? SECHIN SUGGESTS RAISING THRESHOLD FOR PETROLEUM PRODUCT TRADING ON BOURSES TO 15% OF VOLUMES PRODUCED BY INDIVIDUAL REFINERIES? 12:20 ? RUSSIAN OIL COS FINED OVER 15 BLN RUBLES IN FIRST AND SECOND WAVES OF INVESTIGATIONS - FAS CHIEF? 12:19 ? PUTIN DEMANDS THAT PUBLIC SECTOR ORGANIZATIONS BUY FUEL ON EXCHANGES? 12:18 ? PACE OF DECLINE IN FUEL PRICES ABSOLUTELY UNACCEPTABLE - FAS CHIEF 12:20 ? Rostechnologii's Shugayev could join Rosneft board of directors joins the queue outside Rosneft's boudoir 17, 2011Total has jumped into the line of international majors jostling to get into Rosneft's boudoir since the state-company announced a tie-up with BP that will start with a project to explore offshore deposits in the Arctic. The French company's point man in Russia, Pierre Nerguararian, told reporters on Wednesday that talks are underway over joint development of fields above the Arctic circle in the Barents Sea, as well as in the warmer climes of the Black Sea, with Rosneft. Europe's third largest energy company is already partnered with Gazprom in the Barents Sea on the giant Shtokman gas field. It also lost a bid for the Val Shatsky field in the Black Sea to US rival Chevron. "We are looking at the Black Sea, but it could also be cooperation in the Barents Sea," Mr. Nerguararian said, according to the Wall Street Journal. "We like the Black Sea, so maybe there is an opportunity with Rosneft there." A Rosneft spokesman confirmed contact between the two companies, but said talks are still at a preliminary stage.Rosneft has enjoyed a remarkable opening six weeks to the year, having already announced a $1bn deal with ExxonMobil to develop deposits in the Black Sea in addition to the BP tie-up. The Russian oil champion is in need of both cash to power long term projects and expertise in offshore drilling, as the bulk of Russia's new deposits moves towards more inhospitable environments. Meanwhile, it emerged last week that Royal Dutch Shell is discussing an asset swap with Gazprom which would see it swap LNG assets towards South East Asia - a region with a hugely growing appetite for energy - and expertise in exchange for wider rights to blocks off Sakhalin island."The interest in offshore fields is accelerating," Valery Nesterov, an oil and gas analyst at Troika Dialog, told Bloomberg. "Russia's activity in the Arctic has had some sort of domino effect, which has boosted interest in the area."Alliance Oil boosts its reserves base by 21% CapitalFebruary 17, 2011Event: Alliance Oil (AOIL) reported yesterday (16 February) that its 2P reserves have increased 21% to 638.3mn bbls, while 3P reserves have increased 29% to 978.8mn bbls. The growth is mainly attributed to development and exploration activity in the Timan Pechora region, in particular at the Kolvinskoye field, where the company added 85.5mn bbls (to 239.3mn bbls), contributing 76% to overall 2P reserve growth. The Kolvinskoye field now accounts for 37% of AOIL's total % changes RC2P reserves base. Volga Urals and Kazakhstan boosted their 2P reserves by 35mn bbls (27% of the gross increase in 2P reserves). The company expressed confidence in its ability to reach its 90kbpd production target in 2012 and to increase production beyond that level thereafter. Action: The announcement is positive for AOIL, in our view. Rationale: The organic growth in reserves is evidence of strong exploration and development results. However, we note that the Timan Pechora basin remains a fairly challenging region compared with the traditional West Siberian basin. A few companies, including LUKOIL, have faced challenges in the past trying to develop the fields in Timan Pechora, and sometimes this has led to reserve write-downs. So it remains to be seen how quickly and to what extent AOIL can boost production from its reserves base, although generally the reserves base growth looks encouraging to us. Ildar DavletshinGazpromEni and Gazprom sign new agreements CEO Alexey Miller and Eni CEO Paolo Scaroni, in the presence of the President of Russian Federation, Dmitry Medvedev and Italy’s Prime Minister, Silvio Berlusconi, today signed an agreement which paves the way for the future handover to Gazprom of the 50% of Eni’s stake (33,3%) in the consortium developing the Elephant oilfield in Libya, located in Libya’s south-western desert some 800 km from Tripoli.The value of the stake to be handed over by Eni to Gazprom is around 170 million dollars. The agreement will be signed in the competent sees and then submitted to the approval of Libyan authorities.At the same time, Eni and Gazprom signed an agreement which binds both parties to sign within February 28 the gas sale agreement (GSA) for the gas which will be produced in the Siberian fields of Severenergija, the company participated by Gazprom, Eni and Enel.Today’s agreements are part of the strategic partnership signed between Eni and Gazprom in 2006 which envisages the commitment of both parties to jointly develop project in the entire gas chain. In the framework of this partnership, both parties launched South Stream pipeline project started and Eni entered Russia’s upstream sector.Gazprom Neft in Slovenia February 2011Gazprom Neft and?Slovenia's Petrol plan to?meet in?March and?sign an?agreement for?the formation of?a joint venture to?sell petroleum products in?Slovenia and?other countries, said Communications and?Press Minister Igor Shchyogolev, who is the?Russian head of?an intergovernmental commission between the?two countries.Documents on?Russian-Slovenian cooperation in?energy will be signed this March. Gazprom Neft hopes to?enhance its position on?the Serbian, Bulgarian and?Romanian retail markets through its proposed venture with Petrol.(Interfax)Gazprom: Nord Stream deliveries will not result in drop in gas transit across Ukraine and Belarus at 09:59 | Interfax-Ukraine Rome - The beginning of natural gas deliveries along the Nord Stream pipeline will not signify the reduction of gas transit along other routes, particularly via Ukraine and Belarus, Gazprom Chief Executive Officer Alexei Miller has said. "That is not so. These deliveries [along Nord Stream] will be conducted under new contracts," he told Russian journalists in Rome on Wednesday.He reminded them that the construction of Nord Stream is expected to end in May after which test deliveries will begin."These will be deliveries under long-term contracts," he said.He said the gas will be acquired by traditional Gazprom partners in Europe. Read more: gives pipeline access to all independent gas producers - Miller 16/02/2011Russian gas export monopoly Gazprom has given access to its gas transportation system to all independent gas producers, the company's chief Alexei Miller said on Wednesday.Russian Prime Minister Vladimir Putin last week ordered the government and Gazprom to work on allowing access to pipelines for independent producers. He said it was necessary for long-term contracts for the infrastructure of facilities."How can they invest and build if they are not sure of gas supplies?" Putin said."We have given access to the gas transportation system to all independent suppliers," Miller said adding that issues that may arise during the work process would be solved.ROME, February 16 (RIA Novosti)Pipeline ensures necessary gas supply: February 17 2011 02:50 | Last updated: February 17 2011 02:50From Mr Sergei Kuprianov.Sir, Mikhail Korchemkin (Letters, February 11) questions the economic rationale of Gazprom’s Sokhranovka-Oktyabrskaya pipeline. Mr Korchemkin misses a number of relevant points.The fact that Gazprom constructed a pipeline that circumvents Ukraine to bring Russian gas to Russian consumers in the south of the country is by no means uneconomic. First, the return on investment is more than convincing – 12 per cent a year. Second, Mr Korchemkin’s suggestion that Gazprom could save money by sticking to a transit system that is not always reliable reflects a rather short-sighted view that disregards the interests of Gazprom’s shareholders and customers.The gas transit crises in early 2006 and especially in 2009, when Ukraine shut down its transit system, preventing Russian gas from reaching our European customers, made clear how exposed Gazprom – and Europe – were to transit risks in third countries. The three weeks of shutdown in 2009 cost our company $2bn. Ensuring security of gas transit by investing in the diversification of our supply routes, be it through the South Stream project, or the Sokhranovka-Oktyabrskaya pipeline, is not only economically sound, but absolutely necessary.Finally, following Mr Korchemkin’s logic, the European Union’s political drive to support the construction of new pipelines and interconnectors on the national energy markets would also qualify as “uneconomic”. I wonder whether he would be equally critical of these multibillion programmes with uncertain economic perspectives and lack of guaranteed supplies?Sergei Kuprianov,Spokesman,OAO Gazprom,Moscow, RussiaCopyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from and redistribute by email or post to the web. ................
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