Russia - WikiLeaks
Russia 100226
Basic Political Developments
• Naharnet: Lebanon, Russia Sign Military Cooperation Memo… No Mention of MiG 29s - Local media had said Suleiman would be raising the possibility of the MiG fighter jets being replaced by other hardware better suited to the needs of the Lebanese army.
• Interfax: Patriarch Kirill plans visits to Syria, Lebanon in November
• Itar-Tass: Medvedev talks by phone with Merkel on plans for Ve-Day celebratn
• RBC: Medvedev and Merkel discuss pressing matters
• RBC: Russia 'politically' ready for visa-free travel with EU
• Itar-Tass: Gaddafi praises achievements in development of Chechnya - Libya’s leader Muammar Gaddifi has praised the achievements of Russia's leadership and Chechen President Ramzan Kadyrov in the development of the Chechen Republic. He was speaking at a meeting with Kadyrov in Benghazi /Libya/ on Friday, the press service of the Chechen president said on Thursday.
• Globa and Mail: Medvedev likely to attend closing ceremony - "It's necessary for the top-level official to be here," said Alexander Bardin, Russian consul in Vancouver. "My private opinion is that he will be here."
• RIA: Russia presents Olympic university project in Vancouver
• Prague Monitor: Russian President to open exhibition at Prague Castle in 2011 - Russian President Dmytry Medvedev in person is to open an exhibition from the Kremlin collections to be held at Prague Castle, the Czech presidential seat, in late 2011, Kremlin Museum director Yelena Gagarina told CTK Thursday.
• Gazeta.kz: Kyrgyzstan applied for $160 million credit in EurAsEC Anti-Crisis Fund
• Expert Club: Russian base in Gudauta will be completed in 2010 - Colonel General Alexander Postnikov noted that "fourth military base in Tskhinvali and Java has already been established, seventh military base in Gudauta will be established by the end of this year".
• Novinite: Russia Eyes 80% in Bulgaria Belene Nuclear Project
• Russia-InfoCenter: Rosatom triggered Baltic NPP construction
• RFE/RL: Russia Starts Work On Baltic Nuclear Plant - Deputy Prime Minister Sergei Ivanov took part in the ceremony in the Neman district, along with Kaliningrad Governor Georgy Boos, and Sergei Kiriyenko, the chief of the national nuclear-energy corporation, Rosatom.
• Pravda: Private Nuclear Power Plant To Be Built in Russia - Prime Minister Putin signed a decree to build a nuclear power plant in the Kaliningrad region. The Baltic Nuclear Power Plant is expected to become Russia’s first NPP built with the participation of private and foreign capital.
• RIA: Topol M missiles to be shown at Victory Day parade on Moscow's Red Square
• Itar-Tass; 3 Topol-M missile launchers to take part in May 9 VE-Day parade
• Telegraph: Russia's Sukhoi stealth fighter tested - Russia's state-owned Sukhoi aviation company has flight tested a fifth-generation fighter jet, the PAK FA. The plane is thought to incorporate stealth technology and comes with air-to-air, air-to-surface, and air-to-ship missiles, as well as twin 30mm cannon.
• The Moscow Times: Russian Pulls OSCE Candidacy
• Jamestown: Moscow Finds US Non-Strategic BMD Plans Threatening
• Itar-Tass: Over 66,000 are in hiding from Russian justice abroad – official
• Itar-Tass: Sobyanin to head 2010 all-Russia census commission
• The Moscow Times: 9 Handed Lengthy Sentences in Racist Murders
• BBC: Russia jails neo-Nazi murderers - A court in Moscow has sentenced nine members of a neo-Nazi skinhead gang to prison terms of up to 23 years.
• Russia Today: Russia’s top file sharing website under fire
• Itar-Tass: Russian businessman files documents for obtaining The Independent
• Washington Post: The end seems near for the Putin model
• Russia Today: 26 February, 2010 in Russian Newspapers
- Izvestiya: Russia will help Lebanon with the MiG
- Rossiyskaya Gazeta: The official term - Next year, special corrections facilities may appear in the country where non-violent offenders will be able to repent their offences before society with labor.
Nezavismaya: Bush’s legs will correct Jackson and Vanik - The U.S. Congress is preparing to abolish the scandalous trade restrictions
• The Moscow Times: Today in Vedomosti
- New Traffic Fine Payment System on the Cards
- Federal Tax Service Promises More Transparency
• Reuters: PRESS DIGEST - Russia - Feb 26
- KOMMERSANT
- Russia will deploy its tactical Iskander missiles in the Leningrad region this year, according to a senior military official.
- German household appliances retailer Media Saturn Holding GmbH, a unit of Metro AG (MEOG.DE), is said to be in talks with Russian electronics and white goods retailer M.Video (MVID.MM), the daily reports.
- Russia's Federal Customs Service wants to review tax duties on natural gas in order to toughen state control over gas exports, the daily says.
- VEDOMOSTI
- Russia's metals giant Norilsk Nickel (GMKN.MM) may spend $1 billion -- or half of the company's 2009 net profit -- on dividend payout, the daily reports.
- Russian gas export monopoly Gazprom (GAZP.MM) will invest up to $199 billion in developing gas fields in the frozen Yamal Arctic region to ensure the production of 310-363 billion cubic meters of gas by 2035, a senior Gazprom official is quoted as saying.
- ROSSIISKAYA GAZETA
- About 300,000 prisoners will be released from jails on amnesty on the eve of Victory Day, the daily says.
- Russian prosecutors filed 2,500 requests last year abroad seeking their assistance in the investigation of criminal cases, Deputy Prosecutor General Alexander Zvyagintsev says in an interview.
- VREMYA NOVOSTEI
- A special commission is considering Russia's proposal to supply Lebanon with a dozen MiG-29 fighters but may decide in favour of choosing different models, the Lebanese president says in an interview.
- IZVESTIA
- Russia is planning to launch the first reactor of its new nuclear power plant in the Baltic Kalingrad region by 2016 even if it fails to attract foreign investors to the project, head of Rosatom Sergei Kiriyenko is quoted as saying.
- The owner of Russky Standart bank and vodka company, Rustam Tariko, was detained at Moscow's Sheremetyevo airport for allegedly smuggling diamonds, the daily says, citing his female companion who had failed to declare diamonds she had while crossing the border.
• Interfax: Moscow press review for February 26, 2010
- VEDOMOSTI:
- The Federal network company (FSK) has increased its stake in TGK-11 (RTS: TGKK) from 0.43% to 27.45%
- Nornickel (RTS: GMKN) can already afford to pay dividends, said its main shareholders, Rusal and Interros.
- KOMMERSANT:
- Enel is going to change the management structure of its Russian asset, Enel OGK-5" (RTS: OGKE).
- Severstal (RTS: CHMF) plans to take over British gold producer Crew Gold, which exploits fields in Guinea, by paying about $395 million for the company.
- Russian state uranium production company "Atomredmetzoloto" (ARMZ) got a chance to surpass China's CNNC in the struggle for the biggest Mongolian uranium field Dornod.
- Germany's MediaSaturn Holding (ТМ Media Markt), Europe's biggest trader in household appliances and electronics, is negotiating the purchase of Russian chain M.Video (RTS: MVID)
• Focus: Comments in Russian press on Viktor Yanukovych’s swearing-in ceremony
National Economic Trends
• Interfax: Natural Resources Ministry forecasts gold and iron ore output in Russia increase by 25% by 2030
• Itar-Tass: Russia’s quota for foreign workers cut by half – Rostrud
• Russia Today: Unemployed await jobs rebound as economy turns corner
• Reuters: TABLE-Russia monetary base rises to 4.56 trln rbls
Business, Energy or Environmental regulations or discussions
• Bloomberg: Lukoil, Rostelecom, CTC Media: Russian Equity Market Preview
• Bloomberg: Norilsk May Pay $1 Billion in Dividends for 2009. Vedomosti Says
• Reuters: UPDATE 1-Russia's Severstal adds gold assets as IPO looms
• Reuters: UPDATE 1-Russia's VTB sells $1.25 bln 5-yr LPN at par
• Bloomberg: Russia’s Alfa Bank Said to Plan Bond Sale in U.S. Dollars
• Steel Guru: Russian domestic market remains important for Norilsk Nickel
• Bloomberg: Metro’s Media Markt in Talks to Buy M.video, Kommersant Says
• Reuters: UPDATE 1-Metro denies report about plans to buy M.video
• BarentsObserver: Russian shipbuilders worried about Shtokman delay
• BFN: AFI Development issues Q4 profits warning
• Bloomberg: Kremlin Plan for Finance Hub Backfires With IPO Rule, Citi Says
• Financial Times: Antonov rails at 'prejudices'
• RIA: Cirque du Soleil to invest up to $50 million in Russia program
Activity in the Oil and Gas sector (including regulatory)
• Interfax: Export duties on oil as of March set at $253.6 per tonne, zeroed rate on Eastern Siberian oil extended (Part 2)
• Itar-tass: Oil era not to end in coming decades – Shafranik
• Itar-Tass: Europe to need Russian gas for years to come-Shafranik
• Itar-Tass: Energy Ministry to submit program on exploration of Russia’s north
• Steel Guru: GDF Suez to ink Nord Stream MoU on March 2
• Reuters: RLPC-Russia's Tatneft asks banks for $2 bln loan-bankers
• BNE: First oil shipment planned for Northern Sea Route
Gazprom
• B92: “South Stream according to plan” - All activities related to the realization of the “pan-European project South Stream”, as far as Serbia's participation is concern, are going as planned.
• UpstreamOnline: Germany and UK cut Russian gas demand
• Reuters: Gazprom 2009 exports to Germany down 17.5 pct-source
• VTB: Gazprom asks for tax holidays at Yamal
• BarentsObserver: 199 billion USD investments in Yamal
• Financial Times: Gazprom in contract shake-up
• The Moscow Times: Gazprom Mulls Creation of Rival to Novatek
• Wall Street Journal: Cracks Show in Gazprom's Pipeline
• The Moscow Times: Customs Service Fires New Salvo at Gazprom
------------------------------------------------------------------------------------------
Full Text Articles
Basic Political Developments
Naharnet: Lebanon, Russia Sign Military Cooperation Memo… No Mention of MiG 29s
President Michel Suleiman has met Russian President Dmitry Medvedev in Moscow in the first ever visit by a Lebanese head of state to Russia where he signed a memorandum on bilateral military cooperation.
Medvedev, whose country is keen to preserve influence in the Arab world that dates back to Soviet times, described the visit as a "landmark event" in relations between Moscow and Beirut.
Suleiman, who in turn labeled the visit as historic, hailed Medvedev for his support of Lebanon.
He said the two sides had discussed signing a long-term military cooperation agreement.
"It is a framework agreement and is planned to be signed in the near future," said the head of Russia's military-technical cooperation agency, Mikhail Dmitriyev.
There was no mention, however, of past promises by Russia to deliver 10 MiG-29 fighter jets as a gift for the Lebanese military.
The issue of MiG-29s had been discussed by Lebanese defense minister Elias Murr and his Russian counterpart in December 2008.
Under the plan, the MiG-29s would be modernized before being handed over to Lebanon and the cost of transport of the warplanes would be paid for by the Russian defense ministry.
Local media had said Suleiman would be raising the possibility of the MiG fighter jets being replaced by other hardware better suited to the needs of the Lebanese army.
Beirut, 26 Feb 10, 10:05
26 February 2010, 10:00
Interfax: Patriarch Kirill plans visits to Syria, Lebanon in November
Moscow, February 26, Interfax - Patriarch Kirill of Moscow and All Russia has announced his plans to visit Syria and Lebanon in November this year.
"According to a tradition, I, as a newly elected Patriarch, will have to make a visit to the Patriarchate of Antioch. My visit to Syria and Lebanon is planned for November this year," Patriarch Kirill said at a meeting with Lebanese President Michel Suleiman at the Christ the Savior Cathedral in Moscow.
The Patriarch said he was looking forward to the visit to Lebanon, as he had been to that country several times and knows it well.
"I am prepared to do my best to facilitate the development of Lebanon's relations with Russia, Ukraine, Byelorussia and other countries making up the canonical territory of the Russian Orthodox Church," Patriarch Kirill said.
The Patriarch has called for developing Russia's pilgrim ties with Lebanon and other countries in the Middle East.
"Hundreds of thousands of Russians come to the Middle East for pilgrimage. This number could reach a million in the near future," he said.
The Patriarch regretted that Lebanon is not part of these pilgrimage tours and called for making consolidated efforts to make Lebanese holy sites accessible to believers from Russia.
He thanked the Lebanese authorities for kind treatment of Russians living in that country and expressed his special gratitude to the Beirut municipality for allotting a plot of land for a Russian cemetery.
The Patriarch also said that, although "not everything is well" in the Middle East now, the Russian Orthodox Church is making significant efforts to help the local population overcome the existing conflicts, divisions, and problems.
Itar-Tass: Medvedev talks by phone with Merkel on plans for Ve-Day celebratn
25.02.2010, 22.52
MOSCOW, February 25 (Itar-Tass) -- Russian President Dmitry Medvedev discussed by phone with German Chancellor Angela Merkel the upcoming celebration of the 65th anniversary of Ve-Day in Moscow, at which heads of foreign states will be present, the Kremlin press service reported on Thursday.
“Dmitry Medvedev and Angela Merkel, in the framework of regular exchange of opinions, discussed topical matters of the bilateral and multilateral agenda of the day,” the press service reports. “Attention was given, specifically, to organizational aspects of functions in Moscow to celebrate the 65th anniversary of the Victory over fascism, which a large number of heads of foreign states expressed the wish to attend, says the report.
“When international topics were discussed, the parties dwelt on cooperation in promoting progress in the solution of such problems as the Middle East settlement, Iran’s nuclear problem, the global climate change, and others. Prospects for contacts in the bilateral and multilateral formats were also discussed during the conversation,” the Kremlin press service notes.
RBC: Medvedev and Merkel discuss pressing matters
RBC, 26.02.2010, Moscow 10:48:09.Russian President Dmitry Medvedev and German Chancellor Angela Merkel held a telephone conversation on Thursday to discuss pressing issues concerning bilateral cooperation, the Russian leader's press office reported today. Medvedev and Merkel paid special attention to the organization of the official celebration ceremonies to mark the 65th anniversary of the Nazi defeat, in which the leaders of many countries have already expressed a strong desire to participate.
While on the topic of international affairs, Medvedev and Merkel discussed providing support to promote progress in settling such issues as the Middle East peace talks, the Iranian nuclear program, and global warming, among other things. They also discussed the future of cooperation in bilateral and multilateral formats.
RBC: Russia 'politically' ready for visa-free travel with EU
RBC, 26.02.2010, Moscow 11:42:42.Russia is 'politically ready' for visa-free travel with the European Union, Russia's envoy to the EU Vladimir Chizhov stated in an interview for the Echo of Moscow radio station. He added that it was now up to Brussels to decide on the matter.
Chizhov indicated that the EU's position stemmed from political reasons, noting that some of the union's new members had joined the organization to be as far away from Russia as possible, and, thus, allowing visa-free travel was the last thing they wanted.
Itar-Tass: Gaddafi praises achievements in development of Chechnya
26.02.2010, 02.12
GROZNY, February 26 (Itar-Tass) -- Libya’s leader Muammar Gaddifi has praised the achievements of Russia's leadership and Chechen President Ramzan Kadyrov in the development of the Chechen Republic.
He was speaking at a meeting with Kadyrov in Benghazi /Libya/ on Friday, the press service of the Chechen president said on Thursday.
Kadyrov is in Libya on an official visit at Gaddafi's invitation.
The Libyan leader emphasized the federal centre’s support for the economy and its efforts in providing stability and order in the republic.
Kadyrov thanked Gaddafi for the invitation and said it was a great honour for him to take part in the celebration of the Prophet Muhammed's birth anniversary together with outstanding religious and political leaders.
Gaddafi addressed an audience of 10,000 Libyans taking part in the celebration in these words:
“A long while ago we advised the Chechen people to make a decision in favor of their presence in Russia. In those days we were sure that was the best and the most correct path for Chechnya’s people to follow. Russia is a strong and mighty country. How could one even think of quitting it? On the contrary, it is important to do everything to make it a strong and economically prospering country. It is much better to be a Muslim people within a mighty country than to try to build a week independent republic. Russia is proceeding along a democratic track. The leaders of that country have declared their support for the Muslims. Chechnya’s President Ramzan Kadyrov is an example of how a Muslim can make use of one's chance to become a strong and wise politician and an outstanding statesman. We wish the Chechen people peace and stability inside Russia.”
After the celebration and joint prayer Gaddafi gave a festive banquet for the heads of state and government and religious figures.
Globa and Mail: Medvedev likely to attend closing ceremony
The Globe and Mail
By Jane Armstrong, The Globe and Mail Posted Friday, February 26, 2010 2:07 AM ET
VANCOUVER - Will he or won't he? For weeks, the speculation was that Russian President Dmitry Medvedev planned to visit the Vancouver Games, perhaps take in a hockey game - especially if Canada and Russia were to play in the men's final - then stay for the closing ceremonies.
That storyline was dashed Thursday by Russia's loss to Canada in the quarter-final on Wednesday night. Reports circulated that the President, disappointed with Russia's ouster, would skip the Games altogether.
But a Russian diplomat said he believes Mr. Medvedev will attend the closing ceremonies on Sunday, noting it's good optics for the Russian leader to be there when the Olympic flag is passed to Russia. The resort city of Sochi will be the host of the 2014 Winter Games.
"It's necessary for the top-level official to be here," said Alexander Bardin, Russian consul in Vancouver. "My private opinion is that he will be here."
Russia's hockey loss to Canada was disappointing, Mr. Bardin said, but added: "Sport is sport."
Russia's media wasn't as diplomatic. It thrashed the Russian hockey team for its 7-3 loss with headlines such as: "The Red Machine runs into a Maple Tree," and "Nightmare in Vancouver."
The Russian news service Ria Novosti also reported that Russian visitors are leaving Vancouver early in disgust. Russia's disappointing performance at the Vancouver Games has been the subject of intense discussion and soul-searching, similar to Canada's angst over its failure to meet the goal that it would top the medal standings.
With just three days left in competition, Russia has won 13 medals and stands in fifth place behind Canada. That's a comedown from the Communist era, when the Soviet Union often topped the standings and dominated sports such as figure skating and biathlon.
Russian Olympic swimming champion and IOC member Alexander Popov said his country has a lot of work ahead if it hopes to improve its standings by 2014. He blamed a lack of will in Russia and the failure to rebuild the country's sports machine after the Soviet Union collapsed in 1989.
"There should be more professional pride," the athlete said Thursday after participating in a news conference to announce a new sports management-focused university in Sochi.
"It doesn't exist. It has disappeared," he continued. "We need to develop new systems. The former Soviet system was destroyed and the new one was not built."
Mr. Popov said he watched the Canada-Russia game, and thought his countrymen were outplayed. "Canada played extremely well and we couldn't match it." he said, adding that the Russian players "played the best that they can do at the moment."
RIA: Russia presents Olympic university project in Vancouver
08:1026/02/2010
Russia presented an Olympic University project on Thursday in Vancouver.
The university is to become a center to train staff for future Olympic Games, including the 2014 Winter Olympics in the Russian southern resort city of Sochi.
It will be founded by the sport ministry, the Sochi 2014 organizational committee, Russia's Olympic Committee and the Interros company - the project's key investor.
The university is due to officially open February 25, 2013, a year before the Sochi Olympics. Its first students are to be accepted six months prior to the date.
Russian Prime Minister Vladimir Putin as well as Interros head Vladimir Potanin will oversee the university's activities.
VANCOUVER, February 26 (RIA Novosti)
Prague Monitor: Russian President to open exhibition at Prague Castle in 2011
ČTK |
26 February 2010
Moscow, Feb 25 (CTK) - Russian President Dmytry Medvedev in person is to open an exhibition from the Kremlin collections to be held at Prague Castle, the Czech presidential seat, in late 2011, Kremlin Museum director Yelena Gagarina told CTK Thursday.
President Vaclav Klaus said during his visit to Moscow last October that he would like to show the Kremlin treasures to the Czech public.
"The idea will come true at the end of December, 2011," Gagarina said, adding that the exact date would depend on the plans of Klaus and Medvedev who would jointly open the exhibition.
Last Russian president to pay visit to the Czech Republic was Vladimir Putin in March 2006.
Since then Klaus in his capacity as Czech president has paid three visits to Russia. Moreover, he stopped in Omsk, Siberia, with a mission of Czech businesspeople during his trip to Asia.
Tibor Opela, spokesman for Czech embassy in Moscow, said Klaus might participate in the May celebrations of the Victory in Moscow. However, Klaus has not yet received an official invitation, Opela added.
Gagarina, daughter of first Soviet cosmonaut Yuri Gagarin, has been preparing the exhibition. She recently visited Prague and discussed the project with the Prague Castle Office.
Her deputy Zelfira Tregulova said that valuable items from the tsar's court in the 16th and 17th centuries would be exhibited in Prague.
The exhibition is also to present English and German silver items from the 16th century, tzar's weapons as well as some personal belongings of Tsar Peter the Great from the Kremlin collections.
Moscow recently hosted an exhibition on Habsburg Emperor and Czech King Rudolf II (1552-1612) who lived in Prague. However, most of the presented artifacts were from the collections in Vienna and Sweden.
Gazeta.kz: Kyrgyzstan applied for $160 million credit in EurAsEC Anti-Crisis Fund
[12:43] 26/02/2010, "Kazakhstan Today"
Almaty. February 26. Kazakhstan Today - Kyrgyzstan has applied for the $160 million credit of the EurAsEC Anti-Crisis Fund. The Minister of Finance of the Russian Federation, Alexey Kudrin, informed, following the results of the session of the fund's council, the agency reports citing RIA RosBusinessConsulting (RBC).
"The application has been directed for consideration of the expert group at the fund and in the Eurasian Development Bank that will be subsequently brought to be discussed at the session of the Council of the EurAsEC Anti-Crisis Fund," the Minister said. He said the application will be considered for 2 - 3 months.
The Minister of Finance of the Russian Federation informed that the next session of the Council of the EurAsEC Anti-Crisis Fund will take place on April 1, 2010. The session participants will consider the applications for the credits and the current issues of the work of the fund.
Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Armenia signed in June, 2009 in Moscow the contract on establishment of the EurAsEC Anti-Crisis Fund for the purpose of assistance to further deepening of integration of the economy of the state-participants, maintenance of their economic and financial stability, and overcoming of the negative consequences of the world financial and economic crisis.
Expert Club: Russian base in Gudauta will be completed in 2010
26/02/2010 12:11
This year occupants intend to finish equipping its bases in Abkhazia. This was announced by Commander-in-Chief of Land Forces. Colonel General Alexander Postnikov noted that "fourth military base in Tskhinvali and Java has already been established, seventh military base in Gudauta will be established by the end of this year". The structure of both bases will be equated to formations, personnel of each base is up to 4 thousand people. They are not fully deployed in the occupied regions - part of the seventh and forth military bases are deployed on the territory of Russia.
Novinite: Russia Eyes 80% in Bulgaria Belene Nuclear Project
Energy | February 25, 2010, Thursday
Russia can manage to grab a whopping 80% stake in the planned 2,000 megawatt Belene nuclear plant on the Danube River in Bulgaria in exchange for a EUR 1,9 B loan, according to reports.
“There is an option for the Bulgarian state to buy out that share, but if Sofia decides not to take advantage of it, Moscow will build the nuclear power plant and acquire a majority stake in it,” the Russian newspaper Kommersant reported.
Russia proposed last week to extend funding to Bulgaria for the construction of the stalled project until Sofia finds a strategic investor, even without corporate or state guarantees.
According to Bulgarian Energy and Economy Minister Traicho Traikov in exchange for the offer the Russian side can hold no more than 15-20% of the plant, while the remainder of the loan will be paid by electricity sales.
The minister confirmed that the government has abandoned plans to cut its shares from 51% to 20-30% and will aim to keep a 50% stake in the multi-billion nuclear project, which has stalled over lack of funding.
During last week's visit to Sofia, Russian Energy Minister Sergei Shmatko and Sergei Kiriyenko, head of the Rosatom state nuclear corporation, announced that Rosatom, which controls Atomstroyexport contracted by Sofia to build Belene, was ready to extend a loan and become a shareholder in Belene plant.
Bulgaria's new center-right government, which has put the Belene under review due to rising costs, came up with the idea to hire a new consultant after German utility RWE walked out of the project due to funding problems and Sofia decided to redesign it to attract new investors.
Belene nuclear power plant may turn out to be the Russia's first wholly-owned nuclear power plant abroad, according to Kommersant.
The newspaper cites Sergei Kiriyenko as saying that the project is profitable and construction works should start quickly to prevent losses.
“Should Bulgaria fail to find a new investor and secure financing, Moscow is ready to continue the construction works and pay for them,” the Russian newspaper says, citing sources close to the ongoing negotiations.
The article cites analysts, according to whom the Russian side adopts the role of a bank, which extends loans to companies on the condition of acquiring shares if the loan is not refunded.
Russia-InfoCenter: Rosatom triggered Baltic NPP construction
25.02.2010
Russia is launching first NPP project open to foreign investors – the Baltic nuclear power plant in the Kaliningrad Region. The ceremony to celebrate the begging of the construction works took place on the 25th of February.
The head of the Russian atomic corporation Rosatom believes the foreign companies interested in purchasing energy from the NPP will be motivated to invest in the project. If no companies are interested, the first power unit is scheduled to start operation in 2016. Anyway, Rosatom will hold 51% in the project.
The total capacity of the Baltic NPP will amount to 2300 MW – this will turn the Kaliningrad Region into an exporter of energy.
source:
lenta.ru
RFE/RL: Russia Starts Work On Baltic Nuclear Plant
February 25, 2010
(RFE/RL) -- Russian officials today laid the foundation stone of a new nuclear power station in Russia's westernmost region, Kaliningrad, which is sandwiched between Poland and Lithuania.
Deputy Prime Minister Sergei Ivanov took part in the ceremony in the Neman district, along with Kaliningrad Governor Georgy Boos, and Sergei Kiriyenko, the chief of the national nuclear-energy corporation, Rosatom.
The site of the planned nuclear plant, located just 20 kilometers from Lithuania's border, has been a cause of concern for local residents and ecologists, for whom memories of the 1986 catastrophe at the Ukrainian nuclear plant of Chornobyl remain fresh.
More than 300,000 people were evacuated in the wake of the disaster from areas in Ukraine, Belarus, and Russia. It also spread a cloud of radiation across much of Europe.
Chornobyl's long-term health effects are still unclear, but the United Nations has predicted it will ultimately cause some 4,000 extra radiation-related deaths in the most affected areas.
Aleksei Yablokov, an environmentalist, academician, and former President Boris Yeltsin's science adviser, tells RFE/RL's Russian Service that despite safety advances since the incident, nuclear power plants remain extremely dangerous.
"It's been said that nuclear power plants are like nuclear bombs that generate electricity. Any of them can explode," Yablokov says. "Not like an atomic bomb, of course, but with huge repercussions like Chornobyl. Even if the damage is 10 times less than Chornobyl, it would be a tragedy for millions of people."
Lack Of Public Participation
But Rosatom says the project is fully safe and in conformity with European standards. Company spokesman Sergei Novikov says that nuclear safety has advanced dramatically since Chornobyl and the authorities plan to keep the public informed about the new plant.
This is a completely different type of reactor than the one at Chornobyl," Novikov says. "In order to keep people educated about this we will open a new information center in Kaliningrad even before the first block will be ready for use in 2016."
Apart from raising concerns about safety issues at the proposed plant, environmentalists are troubled by the delivery of nuclear fuel to Kaliningrad and by plans to deal with the resultant spent nuclear fuel.
Rashid Alimov, member of the nongovernmental organization ECOperestroika, tells RFE/RL that the information provided on the project does not properly address the issue.
"There was only one phrase saying that the waste would be sent to reprocessing plants" in Russia proper, Alimov says. "The only way to ship nuclear waste is by train [via] Lithuania. And the only sea route is by the Baltic Sea, which is also very dangerous."
A survey by the "Kaliningrad ekspress" newspaper showed that 43 percent of residents opposed the plant, while 26 percent said they supported it but had safety concerns.
Alimov says the public's opinion is not sufficiently taken into account. "We cannot say that information [about the project] is inaccessible, but there is a lack of public participation, or possibilities to have some influence on decision making," he says.
Exporting Electricity
Russian Prime Minister Vladimir Putin signed a resolution on building the two-unit, 2.3 gigawatt Baltic Nuclear Power Plant in September 2009.
The first block is set to become operational in 2016 and the second one in 2018. Each generating unit will have an output capacity of 1,150 megawatts. The estimated cost stands at more than $6 billion.
It's hoped the new plant, which is expected to supply power to Kaliningrad with excess power being exported into the European market, will reverse the Russian territory's precarious dependence on energy imports.
Kaliningrad faces an energy crisis in the coming years with the shutdown last December of the last reactor in operation at Lithuania's Ignalina nuclear power station, combined with Polish plans to scrap coal-fired power generation.
Kaliningrad is also facing isolation as the three Baltic states are to be integrated in the Nordic countries' electricity market as the Baltic Nuclear Power Plant is to go online.
It is the first such project to be open to foreign capital, but it is not yet clear which companies will participate.
Earlier this month, Lithuanian President Dalia Grybauskaite said her country was not interested in joining the project, saying it also had plans to build its own new nuclear power plant.
RFE/RL's Russian Service contributed to this report. With agency reports
Pravda: Private Nuclear Power Plant To Be Built in Russia
25.02.2010
Prime Minister Putin signed a decree to build a nuclear power plant in the Kaliningrad region. The Baltic Nuclear Power Plant is expected to become Russia’s first NPP built with the participation of private and foreign capital.
The Baltic Nuclear Power Plant is to be built in the Nemansky district of the Kaliningrad region, the website of the Russian government said Wednesday.
Russia’s nuclear corporation Rosatom coordinated the construction of the plant with the Ministry for Nature and other interested departments, the message posted on the official website said.
News agencies previously reported that Putin signed a decree to allocate funds for the construction of nuclear power plants. It was also reported that Putin harshly criticized Russian energy companies and their owners for delays in fulfilling obligations within the scope of investment programs, Interfax reports.
“Today I signed the decree to allocate 53 billion rubles for the construction of nuclear power plants,” Putin stated Wednesday.
The prime minister stressed out that several Russian energy companies did not execute the state-funded work on which they had been contracted.
“OGK-2 – Mr. Potanin is the chief shareholder, TGK-2 – Mr Lebedev is the prime shareholder, TGK-4 – Mr. Prokhorov is the main shareholder, the Complex Energy Mystem – Mr. Vekselberg,” Putin said naming the companies and their owners who can be referred to as Russia’s richest people.
Putin reminded that the new owners of the Russian energy system assumed serious obligations to invest in the development of the nation’s industry after the reform of the energy giant RAO UES (United Energy System). A part of the obligations were secured with additional issue of shares. The volume of the attracted funds totaled 450 billion rubles. It was the state money, which was provided during the reform for the development of the electric power industry, as Putin said.
“Nevertheless, only 270 billion of the amount were spent on the implementation of investment projects. Sixty-six rubles were used to maintain companies’ activities, to purchase various non-profile assets, which had nothing to do with the electric power industry. Frankly speaking, those funds were used speculatively,” Putin stated.
RIA: Topol M missiles to be shown at Victory Day parade on Moscow's Red Square
04:5626/02/2010
Russia's new Topol M missile system will for the first time be shown at the Victory Day parade on May 9 on Moscow's Red Square, a spokesman for the Strategic Missile Forces said.
Earlier Topol M predecessors — Topol missile systems — were shown at Victory Day parades in downtown Moscow.
Col. Vadim Koval said three Topol M launchers were brought to Alabino near Moscow early on Friday.
The three-stage Topol M (SS-27 Sickle B) is a solid-propellant, silo-based or road-mobile intercontinental ballistic missile (ICBM). It has a maximum range of 11,000 km (6,800 miles).
On May 9, 2009, a military parade involving over 9,000 personnel, 103 sophisticated tracked and wheeled military vehicles, as well as 69 aircraft and helicopters was held on Red Square as Russia celebrated Victory Day.
Victory Day marks the final surrender by Nazi Germany to the U.S.S.R. in WWII, often referred to as the Great Patriotic War in Russia and other states in the former Soviet Union.
The 2009 parade was largely a rehearsal for this year's event, when Russia is to mark the 65th anniversary of the victory in the Great Patriotic War.
The first Victory Parade was held on Red Square on June 24, 1945 on the order of the then-Supreme Commander-in-Chief, Joseph Stalin.
MOSCOW, February 26 (RIA Novosti)
Itar-Tass; 3 Topol-M missile launchers to take part in May 9 VE-Day parade
26.02.2010, 10.52
MOSCOW, February 26 (Itar-Tass) - Three autonomous missile launchers of the cutting-edge Topol-M ground mobile missile system will for the first time in military parades’ history take part in the May 9 VE-Day military parade in Moscow’s Red Square.
Spokesman for the Russian Strategic Missile Forces (RVSN) Colonel Vadim Koval told Itar-Tass that the “personnel and military equipment of the Teikovo missile formation stationed in the Ivanovo region are commissioned from the RVSN to take part in the May 9 military parade on Red Square.”
“Three autonomous launchers of the cutting-edge ground mobile missile system Topol-M will for the first time in the national military parades’ history participate within a mechanised convoy in the parade on Red Square,” the RVSN official specified. “This early morning the parade crew’ s convoy ended a march from the permanent base to the Alabino settlement in the Moscow region. The march started on Thursday, the route is more than 400 kilometres long,” he said. “During the march the personnel of the parade crew displayed high march skills,” Koval noted.
Earlier, in the period from January 18 to 30, the training and control exercises were held in the Teikovo missile formation with the personnel of the RVSN combined parade crew. “Also in January-February the preparation of the equipment for the military parade and installing of dummies of launch barrels on the parade military equipment was conducted,” he said.
The Teikovo missile formation has in service the Topol and Topol-M missile systems. “In 2009 the rearmament of the second regiment of the Teikovo missile formation with the Topol-M ground missile system was completed,” Koval noted. “The programme of the Topol-M system deployment is synchronised in time with the gradual decommissioning of its predecessor – Topol-M,” he added.
Thus, according to Itar-Tass calculations, at present the RVSN has in service a minimum 18 mobile launchers of the Topol-M system.
According to the RVSN representative, in the creation of the Topol-M mobile missile system a complex of measures was taken with the aim of considerable economising of funds, including by means of the use of the same missile as in the silo-based system. “This made it possible to apply the system of development verification with 3-4 times reduced volume of tests,” Koval noted.
The Topol-M mobile and silo-based missile systems are designed by the Moscow Institute of Thermal Technology under the leadership of chief designed Yuri Solomonov.
The Topol-M is a cold-launched, three-stage, solid-propellant, silo-based or road-mobile intercontinental ballistic missile. The missile’ s length is 22.7 m and the first stage has a body diameter of 1.9 m. The mass at launch is 47,200 kg, including the 1000 ~ 1200 kilogram payload. Topol-M carries a single warhead with a 550 kT yield but the design is compatible with MIRV warheads. According to chief designer Yuri Solomonov, the missile can carry four to six warheads along with decoys. Its minimum range is estimated to be 2,000 km and the maximum range 10,500 km. It has three solid rocket stages with inertial, autonomous flight control utilizing an onboard GLONASS receiver. It is reputed to have the highest accuracy of any Russian ICBM with a CEP of 200m.
The Topol-M may be deployed either inside a reinforced missile silo, which is reported to be able to withstand a direct nuclear hit or from a launcher mounted on the MZKT-79921 16-wheeled transporter-erector-launcher. This mobile launcher is capable of moving through roadless terrain, and launching a missile from any point along its route. The designation for the silo-based Topol-M missile is believed to be RS-12M2, while the mobile version is RS-12M1.
The first stage has three rocket motors developed by the Soyuz Federal Centre for Dual-Use Technologies. This gives the missile a much higher acceleration than other ICBM types. It enables the missile to accelerate to the speed of 7,320 m/sec and to travel a flatter trajectory to distances of up to 10,000 km.
As a solid propellant design, the missile can be maintained on alert for prolonged periods of time and can launch within minutes of being given the order.
According to Russia, the missile is designed to be immune to any current or planned US missile defence system. It is claimed to be capable of making evasive manoeuvres to avoid a kill by terminal phase interceptors, and carries targeting countermeasures and decoys. It is shielded against radiation, EMP, nuclear explosions at distances over 500 metres, and is designed to survive a hit from any laser technology.
One of the Topol-M’s most notable features is its short engine burn time following take-off, intended to minimize satellite detection of launches and thereby complicate both early warning and interception by missile defence systems during boost phase. The missile also has a relatively flat ballistic trajectory, complicating defence acquisition and interception. The Washington Times reported that Russia has conducted a successful test of the evasive payload delivery system. The missile was launched on November 1, 2005 from the Kapustin Yar facility. The warhead changed course after separating from the launcher, making it difficult to predict a re-entry trajectory.
Telegraph: Russia's Sukhoi stealth fighter tested
This online supplement is produced and published by Rossiyskaya Gazeta (Russia), which takes sole responsibility for the content.
Heiner Klemm, Russia Now
Published: 6:27PM GMT 25 Feb 2010
Russia's state-owned Sukhoi aviation company has flight tested a fifth-generation fighter jet, the PAK FA. The plane is thought to incorporate stealth technology and comes with air-to-air, air-to-surface, and air-to-ship missiles, as well as twin 30mm cannon.
Set to enter service in 2015, Sukhoi's PAK FA is designed to compete with America's F-22 Raptor, the only other fifth-generation fighter plane in production. The Raptor's $146m (£94m) price tag meant that President Barak Obama cancelled orders for more Raptors in October last year.
Sukhoi won a tender to build the PAK FA in 2002, replacing similar projects to build a fifth-generation jet fighter that had been discussed since the late Eighties.
The jet will have a speed of 1,250mph and a range of up to 3,500 miles, according to information released by Sukhoi.
"This is a great success of both Russian science and Russian design. This achievement rests upon a co-operation team comprising more than 100 of our suppliers and strategic partners," Sukhoi chief Mikhail Pogosyan said.
He added that the plane – along with its fourth-generation fighters – would "define Russian Air Force potential" for decades to come.
"Sukhoi plans to further elaborate on the PAK FA programme, which will involve our Indian partners.
"I am strongly convinced that our joint project will excel against its Western rivals in cost-effectiveness and will… gain a significant share of the world market," Pogosyan said.
Even after the Cold War, Russia continues to produce state-of-the-art arms and has seen exports of military equipment soar in recent years. While still far from challenging America's lead, Anatoly Isaikin, director general of Russian arms exporter Rosoboronexport, says that Russia's contract portfolio rose to £20.5bn from £14bn over the year in 2009.
The state hopes to use the arms industry as a hub around which to build a competitive hi-tech industry.
The Moscow Times: Russian Pulls OSCE Candidacy
26 February 2010
Mikhail Fedotov, secretary of the Union of Journalists, has withdrawn his candidacy for the post of Europe’s ombudsman for press freedom at the Organization for Security and Cooperation in Europe, Interfax reported Thursday.
That leaves Dunja Mijatovic, director of broadcasting at the Communications Regulatory Agency in Bosnia and Herzegovina, as the OCSE's sole candidate.
Last year, Oleg Panfilov, the long-serving head of the Moscow-based Center for Journalism in Extreme Situations, withdrew as a candidate for Georgia.
Fedotov said he had decided that it was more important to defend a free media in Russia and he would head the Center for Journalism in Extreme Situations because Panfilov has moved to Georgia, Interfax reported.
Jamestown: Moscow Finds US Non-Strategic BMD Plans Threatening
[tt_news]=36082&tx_ttnews[backPid]=7&cHash=45c04f458a
Publication: Eurasia Daily Monitor Volume: 7 Issue: 38
February 25, 2010 04:14 PM Age: 7 hrs
Category: Eurasia Daily Monitor, Home Page, Military/Security, Russia, Featured
By: Pavel Felgenhauer
Russian officials – the Foreign Minister Sergei Lavrov and the Chief of the General Staff, First Deputy Defense Minister Army-General Nikolai Makarov – have told journalists that a nuclear arms control agreement to replace the 1991 START treaty that expired on December 5, 2009, “is almost 100 percent ready” (Interfax, February 17). Makarov insists that the new draft treaty is balanced and “will not undermine Russian defenses.” However, Makarov added that the final negotiations are not easy, since US Ballistic Missile Defense (BMD) plans are causing concern (RIA Novosti, February 24).
This month, Romania announced that it is ready to agree to a US request to deploy so called theater BMD interceptors on its territory after 2015. Moscow intimated that it is “concerned by Romania’s decision” and demanded clarification (RIA Novosti, February 5). Later, Bulgaria announced it is considering possibly deploying US theater BMD interceptors on its territory. Lavrov demanded explanations from Washington and expressed bewilderment: “How must we understand this, first a Romanian surprise, then a Bulgarian one?” According to Lavrov, Washington replied by stating that the potential BMD deployments in Romania and Bulgaria are part of the modified US plan to defend Europe against missile attack, announced by President Barack Obama last September, when he scrapped previous arrangements to deploy Ground-Based Interceptors (GBI’s) in Poland and a BMD radar in the Czech Republic (RIA Novosti, February 14).
Unlike the strategic GBI’s, the missiles intended for possible deployment in Romania and Bulgaria will either be Standard Missile 3 (SM-3) interceptors developed for the US Navy with the Aegis system, or land-based Terminal High Altitude Area Defense (THAAD) interceptors. SM-3 and THAAD missiles have been developed to neutralize medium-range ballistic missiles and cannot intercept Russian Intercontinental Ballistic Missiles (ICBM’s). Iran, North Korea, China and other nations have medium-range ballistic missiles, but Russia does not. Under the 1987 treaty on Intermediate Range Nuclear Forces (INF) both Russia and the US eliminated all land-based missiles with a range of 500 kilometers (km) to 5,000 km. It would seem that the deployment of non-strategic BMD in Romania and Bulgaria does not threaten Russia.
Initially, Moscow expressed “concern.” Sergei Rogov, a government nuclear arms control expert and the director of the government-controlled Institute of USA and Canada Studies in Moscow, while denouncing “American unilateralism” in declaring its new BMD deployment plans, also called for calm. According to Rogov, there is “no need to panic,” since the deployment of theater BMD in Romania and Bulgaria does not pose an immediate threat and Russia has previously endorsed the idea of deploying non-strategic BMD in Europe, while opposing strategic BMD (Nezavisimaya Gazeta, February 19). Nevertheless, Rogov’s argument did not carry weight in Moscow. Former President George W. Bush’s plans for a limited strategic BMD deployment in the Czech Republic and Poland did not actually threaten Russia, but Russian political and military leaders deliberately created a standoff. The same process appears to be unfolding with the potential Romanian and Bulgarian BMD deployment plans.
The US Ambassador to Russia, John Beyrle, told Interfax that the Russian government “knows well” Washington’s plans to deploy BMD and that they were discussed “on numerous occasions.” According to Beyrle, US BMD will not interfere with the START follow-on treaty (Interfax, Febrauary 18). The Russian Foreign Ministry Spokesman, Andrei Nestorenko, in turn announced, “There are no ballistic missile threats to Europe, so we do not understand why they need to deploy any BMD” (mid.ru, February 19). Of course, Moscow is implying that any BMD in Romania or Bulgaria is aimed at Russia.
Alexander Pikayev, a former fellow at the Carnegie Endowment Center in Moscow and now a government employed expert, announced that Russia may respond to a launch of a BMD interceptor with a nuclear attack on Romania, believing it is not an interceptor, but a ballistic missile aimed at Russian territory. According to Pikayev, debris from a successful US BMD intercept could contaminate the territory of Moldova or any other country. “The US is probably planning to deploy hundreds of BMD interceptors in Europe and this may reverse any nuclear disarmament agreement between Moscow and Washington,” stated Pikayev. If a follow-on START is signed, the Russian parliament will add amendments to the treaty that will link its implementation to US BMD deployment (Interfax, February 19).
Moscow’s main complaint is that Russia was “not consulted” about the potential BMD deployment in Romania and Bulgaria (RIA Novosti, February 24). Moscow has for some time insisted that the West must first secure Russian approval before deploying any weapons in former Russian-dependent nations like Romania, Bulgaria, or Poland, no matter whether it is BMD or any other system (EDM, January 21). The recently announced bilateral agreement between Washington and Warsaw to deploy a US military base with a battery of Patriot missiles less than 55 km from the border of the Kaliningrad region has enraged Moscow. Makarov declared that the Patriot deployment in Poland will not be involved in BMD, “but will threaten Russia, since this complex is aimed to defend against air force attacks they expect most probably from Russia, though we never announced such intent.” Makarov added that Russia will be forced to take “adequate measures” (RIA Novosti, February 24). Russia itself has reinforced its air defenses in Kaliningrad by deploying additional S-300 missiles, with two S-300 divisions deployed only 5 km and 17 km from the Polish border (Kommersant, January 25). Lavrov last week summed up the present state of US-Russian relations: “I will not say we are enemies, and I will not say we are friends” (Ekho Moskvy, February 19).
Itar-Tass: Over 66,000 are in hiding from Russian justice abroad – official
26.02.2010, 05.06
MOSCOW, February 26 (Itar-Tass) -- Tens of thousands of 66,000 wrongdoers wanted in Russia for various offences are in hiding in different countries around the world, Russia’s Deputy Prosecutor-General Alexander Zvyagintsev told the government-published daily Rossiiskaya Gazeta in an interview.
“Over 66,000 people are on the international lists of wanted offenders. They were put there at Russia’s initiative. The list has grown that long over the many years Russia has been involved in the international mechanisms of the search for criminals within the framework of Interpol and the CIS. In cooperation with the Interior Ministry we arrange for their international search and, once they have been tracked down, take measures using Foreign Ministry resources to secure their detention,” Zvyagintsev said.
According to the senior official, last year alone the Russian Prosecutor-General’s Office dispatched over 500 requests to other countries for the extradition of suspects.
“An absolute majority of such requests goes to the CIS countries,” Zvyagintsev said.
Last year other countries made decisions in favor of the extradition of 289 accused persons to Russia.
“Escapees of means usually select industrialized countries with liberal legislations. Many ask for asylum ostensibly for political reasons for the sole purpose of gaining immunity from extradition to the Russian judiciary,” Zvyagintsev said.
“The greatest number of runaway offenders is in Israel and Britain. Incidentally, the latter’s capital is quite often referred to as Londongrad. As you may have guessed, it is a shelter not for ordinary pickpockets, but persons of means,” he remarked.
The list of countries where escapees tend to take refuge grew considerably of late. Ever more often they set eyes on some exotic countries, with which Russia has no extradition agreements. For instance, Russia had to request extraditions on the condition of reciprocity from such countries as Guyana, Trinidad and Tobago, Cambodia and Nicaragua.
“On the list of those extradited there are accomplices to both high- and low-profile criminal cases. For instance, Spain has extradited one Gasayev, held responsible for serial killings, and also several persons involved in the theft of three fishing boats. The Czech Republic has extradited one Burshtein, charged with the theft of 20 million dollars, and Germany, a man wanted for intentional bankruptcy and embezzlement of one billion rubles.
Alongside the CIS member-states such countries as Germany, Spain, France, the Czech Republic, Poland, Switzerland, Italy and Austria agreed to act on extradition requests most often over the past three years.
Itar-Tass: Sobyanin to head 2010 all-Russia census commission
26.02.2010, 09.23
MOSCOW, February 26 (Itar-Tass) - Sergei Sobyanin, Russian Vice-Premier and chief of government staff, has been appointed to chair a government commission for the holding of an all-Russia population census in 2010. Presidential aide Oleg Markov has been appointed as deputy chairman of the commission.
The government press service announced on Friday that a respective instruction had been signed by Prime Minister Vladimir Putin.
The Moscow Times: 9 Handed Lengthy Sentences in Racist Murders
26 February 2010
The Moscow Times
A Moscow court on Thursday sentenced a group of young men to lengthy prison terms after convicting them of committing a series of racist murders.
The Moscow City Court sentenced nine men aged 17 to 22 to prison terms ranging from six to 23 years after convicting them of committing six murders, all motivated by ethnic hatred, over the past two years, RIA-Novosti reported.
A jury earlier acquitted the nine defendants of committing five other murders and one attempted murder, and cleared three additional defendants of all counts, Interfax reported.
Five suspects in the case were never found by investigators.
According to investigators, the young men formed a skinhead gang called Beliye Volki, or "White Wolves," on Hitler's birthday in April 2008. The gang's leader, Alexei Dzhavakhishvili, 18, is the son of a Georgian citizen but considers himself a Russian, Interfax said.
Lawyers for the defendants will appeal their sentences, Interfax reported.
BBC: Russia jails neo-Nazi murderers
By Artyom Liss
BBC News, Moscow
A court in Moscow has sentenced nine members of a neo-Nazi skinhead gang to prison terms of up to 23 years.
The gang members, most in their late teens, were found guilty of a string of brutal and very public murders.
The skinheads targeted people of Central Asian origin and posted videos of their attacks on the Internet.
Russia has seen a surge of racially-motivated attacks in recent years. In 2009 alone, neo-Nazis are believed to have killed more than 70 people.
'Wrong accent'
The nine neo-Nazis called themselves "The White Wolves".
They sought out Central Asian migrants, and attacked them in Moscow's back streets.
They clubbed some of their victims to death with wooden planks and killed others by repeatedly stabbing them with knives and screwdrivers.
In one case, a glazier from Kyrgyzstan was stabbed 73 times, as the gang members shouted "Russia for the Russians!" and filmed the murder on their mobile phones.
The jury heard the gang was responsible for at least 11 killings, possibly even more.
And so - after five months of deliberations - came the prison terms: Twenty-three years for the gang leader and up to nine years for the others - the maximum prison term allowed in Russia for underage criminals.
Human rights activists have welcomed the sentencing.
They admit that the police are now cracking down on skinhead gangs.
But even so, last year alone, dozens were killed, and hundreds injured simply for not looking Slavic, and for speaking with a foreign accent.
Russia Today: Russia’s top file sharing website under fire
26 February, 2010, 06:40
Russian prosecutors have shut down Russia's most popular file sharing website for alleged violation of copyright laws. Still, despite looming legal charges, its owners resumed operations under a new address.
When users recently logged onto Russia's largest torrent tracker, all they found was an empty page. It has been shut down by its provider following orders from the police. The charge: helping to distribute pirated software.
Torrent tracking websites do not contain illegal materials, but enable their users to swap files with each other – often in breach of copyright.
Although other sites abroad have been sued, this is the first time one has been closed in Russia. The reaction throughout the web community has been outrage.
“This out-of-the-blue decision is proof of the incompetence of our police. What was done was utterly illegal – you have to have a decision from the court before you can just cut off a website,” said editor of Hacker magazine, Nikita Kislitsyn.
Further, more than a thousand users have formed their own protest movement.
“This is an alarm bell. Today it has happened to a torrent website, but tomorrow it could be anyone,” said Yury Romanov from the Community for Legal Exchange of Information.
However, one of Russia's leading film directors, Yuri Grymov, has a different view.
“Piracy takes away ninety percent of our profits. It has destroyed cinema in this country and we can't finance the films we want as a result. It is high time the government did something about pirates,” Grymov said.
Despite the police action against them, the owners of torrents.ru have simply registered under a different domain name, taking their database and clients with them.
This means that the latest Hollywood releases can still be downloaded through a torrent at a moment's notice. RT asked surfers at a Moscow internet cafe if the closing has had an impact on their web use.
“The old site simply had a link to the new one. I have resumed downloading films,” one user said.
“I have heard about it, but so what? There are loads of other torrent websites. I don’t care,” said another person.
The proprietors of torrents.ru say they will fight to return their long-standing domain name. In the meantime, other torrent websites are in the dark over their future.
Itar-Tass: Russian businessman files documents for obtaining The Independent
25.02.2010, 23.03
LONDON, February 25 (Itar-Tass) -- Russian businessman Alexander Lebedev has made an important step towards purchasing The Independent.
Thursday, Lebedev and the INM company that owns the British newspaper at present, filed an application for the purchase with the Office of Fair Trading.
This agency that is called upon to defend the rights of consumers in the domestic British market, as well as to supervise the observance of fair competition rules should pass its verdict on selling The Independent to the Russian business captain before April 26.
Experts say the filing of the application means Lebedev and the INM have reached an agreement of principle on the terms and form of purchase of the highly respected daily.
Washington Post: The end seems near for the Putin model
By Anders Åslund
Friday, February 26, 2010; A25
A recent week in Moscow left one clear impression: The Putin model of crony state capitalism is dead.
For years, the structure that Vladimir Putin crafted looked invincible, with its steady, high growth rates and effective, mild repression. But the system only distributed ample oil rents to the elites and the ordinary people, creating neither moral nor economic value.
Today the bill is due. In 2009, Russia's gross domestic product plunged 7.9 percent, even though Moscow had the world's third-largest international currency reserves. Russia performed the worst among the Group of 20 leading global economic powers. And as Russian elites realize that the Putin model has failed, opposition to the government is mounting.
At a business conference in Moscow this month, the suave first deputy prime minister, Igor Shuvalov, faced suggestions that the juggernaut of emerging economies in Brazil, Russia, India and China is being reduced from BRIC to BIC because of Russia's poor performance. Questioned about responses to the global economic downturn, Shuvalov defensively claimed that Russia's actions had been successful. But the numbers do not show this.
Russia's problem is larger than day-to-day constraints. Its public finances are in good shape; its current account is sound. But during Putin's second term as president, from 2004 through 2008, a substantial renationalization of business took place, spearheaded by his confiscation of the Yukos oil company. Much of Russia's economy is now dominated by monopolistic state corporations such as Gazprom, Russian Railways, Russian Technologies, Transneft, Rosneft and a handful of banks. They are run by Putin confidants who are close friends from his days in the KGB.
These big state corporations accounted for much, if not all, of the decline in Russia's GDP last year. They are a black hole of inefficiency. Their leaders do not know how to run a company, which leads to poor financial results, huge state subsidies, miserable services and enormous corruption.
When oil prices were high enough to keep the circus going, elites did not complain. The government's tactics in the Yukos case, including fabricating charges against former company chairman Mikhail Khodorkovsky, had taught them to keep quiet, and besides, they were doing very well financially. Today, however, corruption spurred by state corporations is causing Russia to lag behind other countries.
Putin and his state capitalism are clearly to blame. The state sector expanded during his time in power, according to the European Bank for Reconstruction and Development; it became more corrupt, according to Transparency International; Russia became less competitive, according to the World Economic Forum; the business environment grew worse, according to the World Bank. Russia is so corrupt that it has failed to expand its road network since 2000. Such facts were known in recent years, but only because Russian elites feel the effects are people speaking up.
A cacophony of elite voices are offering critiques, to the point that 2010 already bears some resemblance to 1987, the year Mikhail Gorbachev's glasnost policy of openness came to life. Igor Yurgens's Institute of the Contemporary Development, which is chaired by none other than Russian President Dmitry Medvedev, has taken the lead with a full-fledged call for Western liberalism, advocating the dissolution of the Interior Ministry and the FSB, successor to the KGB. On Feb. 18, Medvedev followed its cue and sacked 17 police generals. In December, the old Kremlin courtier Gleb Pavlovsky even called on Putin to retire, saying the prime minister is obsolete.
Surprisingly, one of the most important forces acting against Putin is Vladislav Surkov, the eternal political deputy chief of the presidential staff. Another shock came when authorities allowed more than 10,000 people -- an enormous rally by Russian standards -- to demonstrate in the western city of Kaliningrad on Jan. 30, even though the protest was directed against Putin and the regional governor. Surkov's subordinate overseeing domestic politics in northwestern Russia was instantly sacked, a rare event in Putin's Russia. The buzz on the Moscow grapevine is that Putin accused Surkov of having allowed the protest to take place.
Russians are becoming less afraid than in recent years and are even ashamed of their prior cowardice. Those jumping on the bandwagon include the respected finance minister, Alexei Kudrin, who publicly criticized Putin's United Russia party, and Sergei Mironov, the Putin loyalist who chairs the Russian Federation Council.
Although Medvedev is widely deprecated domestically and abroad, it can be a gift to be underestimated. The president has criticized state corporations, law enforcement and corruption in public, providing openings for others to fill in, and he offers an alternative platform of power.
Put another way, Russia is finally experiencing a thaw in the middle of winter.
Anders Åslund is a senior fellow at the Peterson Institute for International Economics and most recently the author of "Russia's Capitalist Revolution."
Russia Today: 26 February, 2010 in Russian Newspapers
Izvestiya: Russia will help Lebanon with the MiG
Yesterday began the first in the entire history of bilateral diplomatic relations with an official visit of the President of Lebanon, Michel Suleiman, to Russia. Following talks with Dmitry Medvedev it became known that the countries plan to sign a military-technical cooperation agreement in the near future. Moreover, Moscow and Beirut share a similar position on the stabilization of the situation in the Middle East
Suzanna Farizova
“Throughout centuries, Russia has always sided with our nation during all the difficult situations which Lebanon had lived through,” said Michel Suleiman after the talks. “I would like to express my hope that Russia will continue to be on Lebanon’s side – in which I have no doubt – and support us in the decisions on those fateful issues, which continue to stand before our nation.”
Rossiyskaya Gazeta: The official term
Pavel Krasheninnikov: 300,000 people will be given amnesty on Victory Day
Vladislav Kulikov
Next year, special corrections facilities may appear in the country where non-violent offenders will be able to repent their offences before society with labor.
Meanwhile, time served in a pre-trial detention center will be counted toward the total sentencing time according to a favorable coefficient. Say, if a person is sentenced to a penal colony settlement, then a day in a pre-trial detention center will be counted as two days. In a typical colony, on the other hand, a day and a half will be counted as one day.
Nezavismaya: Bush’s legs will correct Jackson and Vanik
The U.S. Congress is preparing to abolish the scandalous trade restrictions
Anastasia Bashkatova
The U.S. Congress is ready to begin the abolition procedures of the scandalous anti-Russian Jackson-Vanik amendment, which limits U.S.-Russian trade and hinders Russia’s accession into the World Trade Organization (WTO). This was announced yesterday in Washington by the head of the State Duma Foreign Affairs Committee, Konstantin Kosachev. Some Russian experts explain America’s leniency with the rigid position of Moscow, which chose the Customs Union with Belarus and Kazakhstan over further negotiations with the WTO, as well as – the ban on America’s chlorinated poultry imports, which came into force in early 2010. Experts believe that the Russo-American war over chicken and abolition of the amendment – are elements of one large political and economic war.
The Moscow Times: Today in Vedomosti
New Traffic Fine Payment System on the Cards
By Vera Kholmogorova
A new card is proposed for Russian car owners, to collect more fines for the traffic police.
Federal Tax Service Promises More Transparency
By Yulia Govorun
At the end of 2010 taxpayers will be able to get access to Federal Tax Service information on how their taxes are calculated.
Reuters: PRESS DIGEST - Russia - Feb 26
Fri Feb 26, 2010 1:10pm IST
MOSCOW, Feb 26 (Reuters) - The following are some of the leading stories in Russia's newspapers on Friday. Reuters has not verified these stories and does not vouch for their accuracy.
KOMMERSANT
kommersant.ru
- Russia will deploy its tactical Iskander missiles in the Leningrad region this year, according to a senior military official.
- German household appliances retailer Media Saturn Holding GmbH, a unit of Metro AG (MEOG.DE), is said to be in talks with Russian electronics and white goods retailer M.Video (MVID.MM), the daily reports.
- Russia's Federal Customs Service wants to review tax duties on natural gas in order to toughen state control over gas exports, the daily says.
VEDOMOSTI
vedomosti.ru
- Russia's metals giant Norilsk Nickel (GMKN.MM) may spend $1 billion -- or half of the company's 2009 net profit -- on dividend payout, the daily reports.
- Russian gas export monopoly Gazprom (GAZP.MM) will invest up to $199 billion in developing gas fields in the frozen Yamal Arctic region to ensure the production of 310-363 billion cubic meters of gas by 2035, a senior Gazprom official is quoted as saying.
ROSSIISKAYA GAZETA
rg.ru
- About 300,000 prisoners will be released from jails on amnesty on the eve of Victory Day, the daily says.
- Russian prosecutors filed 2,500 requests last year abroad seeking their assistance in the investigation of criminal cases, Deputy Prosecutor General Alexander Zvyagintsev says in an interview.
VREMYA NOVOSTEI
vremya.ru
- A special commission is considering Russia's proposal to supply Lebanon with a dozen MiG-29 fighters but may decide in favour of choosing different models, the Lebanese president says in an interview.
IZVESTIA
izvestia.ru
- Russia is planning to launch the first reactor of its new nuclear power plant in the Baltic Kalingrad region by 2016 even if it fails to attract foreign investors to the project, head of Rosatom Sergei Kiriyenko is quoted as saying.
- The owner of Russky Standart bank and vodka company, Rustam Tariko, was detained at Moscow's Sheremetyevo airport for allegedly smuggling diamonds, the daily says, citing his female companion who had failed to declare diamonds she had while crossing the border.
February 26, 2010 09:59
Interfax: Moscow press review for February 26, 2010
MOSCOW. Feb 26 (Interfax) - The following is a digest of Moscow newspapers published on February 26 Interfax does not accept liability for information in these stories.
VEDOMOSTI:
The Federal network company (FSK) has increased its stake in TGK-11 (RTS: TGKK) from 0.43% to 27.45%. FSK received a stake that TGK's former owner, RAO UES, sold to Mikhail Abyzov's Group E4, Alexander Stroinov, head of the TGK-11 Capital Management Department, told Vedomosti; until recently, according to CMD, the register holder, FSK held just 0.43% in TGK-11. A contract for the sale and purchase of 28.47% in TGK-11 was signed by RAO and E4 back in May 2008, with Abyzov offering 5.88 billion rubles for the control stake. He was expected to settle payments with FSK (RAO's successor) before October 2009. But E4 failed to pay for the shares and now the package is back to FSK, Stroinov said. Neither FSK, nor E4 commented on the deal. ("Confusion among shareholders")
Nornickel (RTS: GMKN) can already afford to pay dividends, said its main shareholders, Rusal and Interros. The partners are now discussing the size of dividends, several sources close to both sides said. Nornickel's consolidated net profit in 2009 was about $2 billion, company chief Vladimir Strzhalkovsky announced recently. Rusal believes that Nornickel can easily pay to its shareholders up to $1 billion, said two sources close to the company. There is no final figure yet, the sources told Vedomosti. ("$1 billion for shareholders")
KOMMERSANT:
Enel is going to change the management structure of its Russian asset, Enel OGK-5" (RTS: OGKE). After reorganization, the company's executive director will manage not only power plants but also Enel's stakes in Rusenergosbyt and Severenergia. Besides, for the first time a Russian energy company's general director will be a foreigner: by May Anatoly Kopsov will have been replaced by his deputy Enrico Viale. (page 12, "Italians will land at OGK-5")
Severstal (RTS: CHMF) plans to take over British gold producer Crew Gold, which exploits fields in Guinea, by paying about $395 million for the company. The price is high, but the purchase will allow Severstal to increase its own gold production by at least one third, analysts said. (page 12, "Severstal overestimates Guinean gold")
Russian state uranium production company "Atomredmetzoloto" (ARMZ) got a chance to surpass China's CNNC in the struggle for the biggest Mongolian uranium field Dornod. Ulan-Bator cancelled Canadian company Khan Resources' license for Dornod operations. In February, CNNC was able to outbargain ARMZ' offer to buy Khan, but the worth of this company without the uranium license has fallen significantly. (page 12, "Atomredmetzoloto" approaches Mongolia")
Germany's MediaSaturn Holding (ТМ Media Markt), Europe's biggest trader in household appliances and electronics, is negotiating the purchase of Russian chain M.Video (RTS: MVID). Retailers have already signed an agreement on the exclusivity of talks (bans each party to hold similar talks with anyone else), while Deutsche Bank, the buyer's consultant, is due to submit a preliminary estimate of the M.Video value in March. Analysts estimate the Germans could pay over $1 billion. (page 9, "M.Video hits the MediaSaturn orbit")
Focus: Comments in Russian press on Viktor Yanukovych’s swearing-in ceremony
[pic][pic][pic]26 February 2010 | 09:23 | FOCUS News Agency [pic][pic]
[pic]
On Thursday Ukraine got a new head of state when the winner in the February 7 presidential elections Viktor Yanukovych, leader of the Party of Regions, was sworn in, Vremya Novostey daily writes.
The swearing-in ceremony of the fourth Ukrainian president took place in the Verkhovna Rada in the absence of the MPs from the Bloc of Yulia Tymoshenko. PM Tymoshenko, who lost the elections by 3.5% but did not admit her defeat, did not attend the ceremony. Neither did Ukraine’s first and third presidents – Leonid Kravchuk and Viktor Yushchenko. The inauguration was attended by the country’s second head of state, Leonid Kuchma, who pronounced Viktor Yanukovych his successor as early as in the previous elections in 2004.
Viktor Yanukovych’s swearing-in ceremony disproved the myth that while he is president Ukraine will become estranged from Europe and will draw closer to Russia, Kommersant daily writes.
The day of the swearing-in ceremony saw an important event – the European Parliament adopted a resolution confirming Ukraine’s right to EU membership and addressed the European Council, asking it to give the European Commission mandate to draft a road map for a visa-free regime with Ukraine. The move showed to the new Ukrainian authorities that the European doors are open for them. Political scientists say the absence of the Russian president from the ceremony and the presence of senior European politicians have only strengthened Ukraine’s course towards European integration.
In his speech during the ceremony Yanukovych promised to unite the country and called on the MPs to unite around him in the name of Ukraine’s prosperity, Rossiyskaya Gazeta reports.
The new president spoke about the collapsed economy, corruption and need of technical development. The ceremony costs some USD 250,000, says the new head of the presidential administration. It is not clear where the money came from after Tymoshenko’s government flatly refused to pay for the ceremony.
National Economic Trends
February 26, 2010 11:55
Interfax: Natural Resources Ministry forecasts gold and iron ore output in Russia increase by 25% by 2030
MOSCOW. Feb 26 (Interfax) - The Ministry of Natural Resources forecast that production of iron and gold ore should increase by 25% by 2030, according to the strategy for the geological sector's development until 2030, which the ministry plans to present to the government in April 2010.
Factoring in innovative development in the Russian economy, gold production in 2010 could come to 210 million tonnes in 2010, in 2020 - 220 tonnes and in 2030 - 250 tonnes.
Production of iron ore should go up by 25% from 77.2 million tonnes in 2008 to 97.9 million tonnes in 2030.
According to the ministry's forecast, the increase in production of non-ferrous metals will come between 18% for nickel and 300% for base metals. Production of copper by 2030 could increase on average by 30%, zinc - 50% and lead - 38%.
Ih
Itar-Tass: Russia’s quota for foreign workers cut by half – Rostrud
26.02.2010, 11.39
MOSCOW, February 26 (Itar-Tass) - Russia’s quota for foreign workers in 2010 comprises 1.944 million, down almost by half as compared to 2009, the head of the federal labour and employment service, Yuri Gertsiy, told a meeting of the service’s expanded collegium on Friday.
The reserve of the quota totals 583,307 workers, he said.
Gertsiy recalled that in 2009 the Russian government approved the quota for 3.977 million foreign workers, including the reserve of 1.988 million.
Rostrud noted that undoubtedly, lower quota is caused by the the crisis and the growth of unemployment in Russia.
Russia Today: Unemployed await jobs rebound as economy turns corner
26 February, 2010, 11:18
President Medvedev says the blight of unemployment is still the biggest economic issue the country faces, despite the release of data showing annualised 5% GDP growth in January.
The GDP data came in the wake of employment figures showing that, in the same month, the number of Russians out of work had soared to its highest level since last March. Since the beginning of the year nearly 25,000 additional people have found their way onto the jobless register, bringing the total number out of work to more than two-and a quarter million people.
Moscow's employment administration says a total of 62,600 people were officially registered as jobless at the end of last week. At the same time, the city has over 168,000 vacancies. But some recruiters say many open positions are offering half the pay they were two years ago.
Unemployment benefits in the capital are the equivalent of about $80 a month. That's $200 less than the cost of living.
Finam analyst, Maksin Klyagin, doesn’t believe the problem will significantly worsen, despite the January unemployment increase, but also says that the jobs rebound last spring reflected government action to stave off larger scale industry layoffs.
“The seasonal factor is in play for the first 3 months of the year. The situation will stable out after this period. Of course macroeconomic factors are in play and influence the job market. But we don't see the conditions for any sort of collapse. It's important to point out that last spring the tendency of shrinking unemployment rates, that picked up, was due in part to government support for the country's job market.”
In the immediate wake of the global financial crisis, fiscal concerns drove some Russian companies to layoff employees. But the easing of credit access concerns, coupled with a rebound in commodity prices – particularly oil – has driven a rebound in recruitment activity amongst specialised and professional occupations, putting Russia at the forefront of European new recruitment. Luc Jones, partner at Antal Russia, sees the employment market becoming very competitive.
“Companies are realizing, okay, maybe sometimes we actually cut a little too deeply a year or so ago, and now it's time to start getting good people back in. Previously, graduates wanted silly money just because they graduated from a prestigious school. Now what we see is that it's a definite reality check. People are having to take unpaid or low-paid work within an organization in order to gain that experience.”
The economics ministry projects economic growth for 2010, but with unemployment remaining a weak link – and the government has warned the number of people out of work could jump to 2.4 million this year.
2010-02-26 09:20
Reuters: TABLE-Russia monetary base rises to 4.56 trln rbls
MOSCOW, Feb 26 (Reuters) - Russia's monetary base rose to 4.56 trillion roubles on Feb. 24 from 4.48 trillion roubles on Feb. 15, the central bank said on Friday.
It provided the following details.
Date monetary base
(bln roubles)
2010
Feb 24 4,563.2
Feb 15 4,483.4
Feb 8 4,420.0
Feb 1 4,403.1
Jan 25 4,479.2
Jan 18 4,482.5
Jan 11 4,716.0
Jan 1 4,716.0
2009
Dec 28 4,487.6
Dec 21 4,353.0
Dec 14 4,246.4
Dec 7 4,154.7
Nov 30 4,103.5
Nov 23 4,157.7
Nov 16 4,133.8
Nov 9 4,081.3
Nov 2 4,049.7
Oct 26 4,101.6
Oct 19 4,095.9
Oct 12 4,047.0
Oct 5 3,988.3
Sept 28 4,026.8
Sept 21 4,055.4
Sept 14 4,039.3
Sept 7 3,990.9
Aug 31 3,976.4
Aug 24 4,078.6
Aug 17 4,076.5
Aug 10 4,023.5
Aug 3 3,985.7
July 27 4,059.6
July 20 4,083.6
July 13 4,055.8
July 6 3,986.6
June 29 3,988.4
June 22 4,007.3
June 15 3,975.8
June 8 3,883.5
June 1 3,857.4
May 25 3,893.9
May 18 3,871.7
May 12 3,848.2
May 4 3,820.2
April 27 3,820.9
April 20 3,825.7
April 13 3,772.0
April 6 3,710.1
March 30 3,729.8
March 23 3,759.6
March 16 3,751.5
March 10 3,741.4
March 2 3,715.9
Feb 24 3,781.8
Feb 16 3,741.2
Feb 9 3,707.5
Feb 2 3,755.4
Jan 26 3,896.1
Jan 19 4,066.2
Jan 12 4,218.7
Jan 1 4,391.7
2008
Dec 29 4,283.1
2007
Dec 24 4,016.6
2006
Dec 25 3,002.0
NOTE - Monetary base comprises cash in circulation and commercial banks' deposits at the central bank.
To see more detailed historical data on Russia's monetary base you can go to cbr.ru/eng/main.asp Keywords: RUSSIA BASE/ (Moscow Newsroom, +7495 775 1242, moscow.newsroom@)
Business, Energy or Environmental regulations or discussions
Bloomberg: Lukoil, Rostelecom, CTC Media: Russian Equity Market Preview
February 26, 2010, 12:37 AM EST
By Maria Kolesnikova
Feb. 26 (Bloomberg) -- The following shares may have unusual price changes in Russian trading. Stock symbols are in parentheses and prices are from the previous close unless otherwise noted.
The 30-stock Micex Index fell 2.1 percent to 1,306.46. The dollar-denominated RTS Index declined 2 percent to 1,373.11.
OAO Lukoil (LKOH RX): Crude oil fell the most in three weeks as U.S. jobless claims and manufacturing orders trailed forecasts, stirring concern that the global economic recovery may falter and crimp energy-demand growth. Russia’s largest non- state oil producer fell 1.1 percent to 1,548.55 rubles in Moscow.
OAO Rostelecom (RTKM RX): Russia’s dominant long-distance company won nine out of 10 tenders for radio frequencies for the WiMax mobile data standard in the country’s southern regions, Interfax reported. Rostelecom fell 3.5 percent to 142.02 rubles.
CTC Media Inc. (CTCM US): The Russian television network may report fourth-quarter earnings. CTC shares rose as much as 1.8 percent in New York trading.
--Editor: Glenn J. Kalinoski
-0- Feb/26/2010 03:00 GMT
To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@.
To contact the editor responsible for this story: Gavin Serkin at gserkin@.
Bloomberg: Norilsk May Pay $1 Billion in Dividends for 2009. Vedomosti Says
By Maria Ermakova
Feb. 26 (Bloomberg) -- OAO GMK Norilsk Nickel, Russia’s largest mining company, may pay $1 billion in dividends for 2009, ending two years without a payout, Vedomosti reported, citing unidentified people familiar with the matter.
Norilsk’s board, which includes representatives of billionaires Vladimir Potanin and Oleg Deripaska, will vote on the proposal next month, the Moscow-based newspaper said.
To contact the reporter on this story: Maria Ermakova at mermakova@
Last Updated: February 26, 2010 00:38 EST
Reuters: UPDATE 1-Russia's Severstal adds gold assets as IPO looms
Thu, Feb 25 2010
* Severstal to bid 1.10 NOK/shr for Crew Gold
* Russian co already holds 26.6 pct of gold miner
* Crew Gold shares jump 12.6 percent in Oslo
* Analyst says Severstal could raise $1.5 bln via gold IPO
(Adds details, analyst quotes, background)
By Alfred Kueppers
MOSCOW, Feb 25 (Reuters) - Russian steelmaker Severstal said it will bid for a majority stake in Oslo and Toronto-listed Crew Gold , which some analyst say could be floated as a separate unit later this year.
The Russian steel and mining group said on Thursday it had raised its stake in Crew Gold to 26.6 percent by acquiring an additional 145.3 million shares in the company, and will offer 1.10 Norwegian crowns per share for the rest.
"At the moment I think they are trying to strengthen their position in gold," Uralsib analyst Dmitry Smolin said. "Crew Gold could add up to 33 percent to their current production."
The offer values Crew Gold, which has mining and exploration projects in Guinea, west Africa, at about $400 million.
Deutsche Bank analyst Olga Okuneva noted that the Toronto and Oslo-listed company also has about $319 million of debt.
"We calculate that Severstal will need around $290 million to buy out the remaining 73.4 percent stake in Crew Gold," she wrote in a note.
Severstal said it will provide more details on the formal offer within two weeks.
"We are required to make this offer under Canadian law, as we have exceeded the 20 percent threshold," Nikolai Zelenski, CEO of Severstal Gold, told Reuters. He said the offer is twice Crew Gold's share price at the start of the year.
While a full takeover will add to Severstal's $7.9 billion debt pile, analysts said the acquisition could make the company's gold mining business more attractive to investors should it proceed with plans to spin off and list the unit.
Severstal said in 2007 it could list, sell or continue to hold its gold business, although its representative said on Thursday the company is not currently preparing for an initial public offering of its gold business. (Editing by David Holmes) ($1=5.983 Norwegian Crown)
Reuters: UPDATE 1-Russia's VTB sells $1.25 bln 5-yr LPN at par
Fri Feb 26, 2010 2:37am IST
(Updates with background, comment, adds byline)
By Daniel Bases
NEW YORK, Feb 25 (Reuters) - VTB (VTBR.MM), Russia's second-biggest lender, sold $1.25 billion worth of five-year loan participation notes on Thursday at par, taking advantage of reviving economic conditions, a source at one of the lead managers told Reuters.
The deal brought a coupon of 6.465 percent, putting it 412.3 basis points above comparable benchmark U.S. Treasuries or mid-swaps plus 385 basis points. Mid-swaps is a measure of interest between fixed and floating rates.
VTB, one of Russia's major corporate borrowers, has tapped the market for the first time this year and managed to tighten the price for its five-year debt from initial price guidance of 400-420 basis points over mid-swaps.
While the deal was sold at par, the bank did scrap plans to offer a 10-year tranche of paper.
Lead managers of the deal are Deutsche Bank, JPMorgan and VTB Capital.
State-controlled VTB has raised the funds nearly a month ahead of a possible placement of Russia's first sovereign Eurobond in over a decade [ID:nLDE6141DA].
"The current market conditions are the best since the very beginning of the global financial meltdown," Nikolay Podguzov, an analyst at Renaissance Capital said.
"VTB has no liquidity problems at all. Maybe the bank plans to actively restart lending in dollars," he added.
VTB, which is likely to show net loss for 2009, has been hit hard by the crisis as rising provisions for bad loans have eaten into its income.
But this year VTB plans to return to profitability, while the central bank expects Russian banks' lending portfolio to grow by 20 percent in 2010 after a flat 2009.
Nevertheless investors remain cautious about prospects of emerging markets, including Russia, despite recent signs of the economy reviving from the first recession in a decade -- conditions which may have prompted VTB to scrap plans for a possible 10-year Eurobond issue alongside the 5-year paper.
"At the moment, dollar investors don't want longer duration in emerging markets. Just today VTB scrapped the 10 year tranche," Jonathan Mann, director of emerging markets debt at F&C investments told a Euromoney conference in London.
VTB has said it plans to diversify its funding base, considering possible selling of samurai bonds and Islamic bond, or sukuk, to widen the range of its borrowing facilities beyond its usual Eurobond transactions. [ID:nLDE60K13E] (Additional reporting by Dmitry Sergeyev in Moscow and Sebastian Tong in London; Editing by Kenneth Barry)
Bloomberg: Russia’s Alfa Bank Said to Plan Bond Sale in U.S. Dollars
February 26, 2010, 12:40 AM EST
By Shelley Smith
Feb. 26 (Bloomberg) -- Alfa Bank plans to sell bonds denominated in U.S. dollars, according to a person familiar with the matter.
The bank hired JPMorgan Chase & Co. and UBS Investment Bank to arrange meetings with bond investors in Asia and Europe, said the person, who declined to be identified before a public announcement.
Alfa Bank will meet investors in Singapore March 2, Hong Kong March 3, London March 4 and Zurich and Geneva March 5, the person said.
Link to Company News:{1007Z RU CN }
To contact the editor responsible for this story: Shelley Smith at ssmith118@
Steel Guru: Russian domestic market remains important for Norilsk Nickel
Friday, 26 Feb 2010
Mr Victor Sprogis deputy director general of Norilsk Nickel, during the VII Krasnoyarsk Economic Forum, said that the domestic market remains important for MMC Norilsk Nickel.
He added that "Russian market still remains a top priority to us in the entire product range. The copper consumption in Russia is quite high, up to 20% to 25% of the total company's production. Sales of nickel depend on the stainless steel production. It is still relatively small. Nevertheless, the market is stable. Volumes of consumption in Russia in the near future will depend on the dynamics of industrial production."
According to Mr V Sprogis, Europe is still the main sales market to Norilsk Nickel due to geographical location. Nevertheless, the company sells it's metals in the US and Asian markets taking it as one of priorities. In particular, in China, sales rose double from 30,000 to 60,000 tonnes.
(Sourced from metalinfo.ru)
Bloomberg: Metro’s Media Markt in Talks to Buy M.video, Kommersant Says
By Maria Ermakova
Feb. 26 (Bloomberg) -- Metro AG’s Media Markt/Saturn electronics division is in talks to buy M.video, a Russian retailer, Kommersant reported, citing unidentified people familiar with talks.
Deutsche Bank AG is advising Media Markt on the talks, according to the newspaper.
M.video, Russia’s second-largest electronics retailer, is valued at $1.1 billion, Kommersant said, citing Natalia Smirnova, an analyst at UniCredit SpA in Moscow.
To contact the reporter on this story: Maria Ermakova in Moscow at mermakova@
Last Updated: February 26, 2010 00:32 EST
Reuters: UPDATE 1-Metro denies report about plans to buy M.video
3:23am EST
* Newspaper says Media Saturn in talks to buy M.video
* Metro denies report
* M.video shares rise 13 pct, Metro shares up 0.3 pct
(Adds comment from Metro)
MOSCOW/FRANKFURT, Feb 26 (Reuters) - German retailer Metro denied a newspaper report on Friday that its consumer electronics business, Media Saturn, is in talks to buy Russian electronics retailer M.video .
Russian daily Kommersant reported, citing unnamed sources close to M.video, the first official estimates of the deal might be known in March. The paper said, citing analysts, that Media Saturn may pay more than $1 billion for the deal.
A spokesman for Metro said: "We are denying this report."
Metro, the world's third-largest retailer behind Wal-Mart und Carrefour , had said in January that it plans to raise its investment budget this year to drive growth in Eastern Europe and Asia. [ID:nLDE6090HC]
M.video's 2009 sales rose 3.6 percent to 83.3 billion roubles ($2.77 billion), the company reported in January [ID:nLDE60O0B8].
M.video shares rose 12.7 percent in Moscow, while Metro shares were up 0.3 percent in Frankfurt.
BarentsObserver: Russian shipbuilders worried about Shtokman delay
2010-02-26
The three-year postponement of the Shtokman project causes concern in the Northwest Russian shipbuilding industry, leader of the United Shipbuilding Corporation Roman Trotsenko told PM Vladimir Putin in a meeting this week.
Mr. Trotsenko maintained that the project postponement not only affects the joint Russian-Korean construction of two Shtokman rigs, but also causes concern regarding the construction of LNG carriers.
The company leader urged Prime Minister Putin to open up for more operations on the shelf, under the precondition that it will be Russian companies and their Russian suppliers developing the fields.
Putin in his response confirmed that Russian companies will get the jobs, but at the same time stressed that the shelf development will have to be synchronized with the market demands, a transcript from the meeting posted at the government website reads
BFN: AFI Development issues Q4 profits warning
2010-02-26 08:05:32
Business Financial Newswire - Russia and the CIS property firm AFI Development has issued a profit warning for its fourth quarter results.
The company says that based on preliminary indications, it believes the fair value of its portfolio of investment properties and investment properties under development will be reduced.
This is expected to lead to the company recording an impairment in its financial statement for the fourth quarter of 2009 of around US$225m.
The impairment mostly reflects a decrease in the value of the company's two major developments - Mall of Russia and Tverskaya Zastava - and stems from changes to exit yields and profit margins and from extending the completion dates.
The company believes that as a result of the loss for the fourth quarter of 2009, it will record an insignificant profit or loss for the year 2009.
Story provided by Business Financial Newswire
Bloomberg: Kremlin Plan for Finance Hub Backfires With IPO Rule, Citi Says
February 26, 2010, 2:59 AM EST
By Ilya Khrennikov
Feb. 26 (Bloomberg) -- Kremlin efforts to turn Moscow into a global financial center may backfire as companies planning share sales move abroad to skirt rules meant to boost trading volumes on local bourses, Citigroup Inc. said.
Russian enterprises seeking to tap a wider pool of investors have little choice but to sell shares in “special purpose vehicles” registered overseas, given new regulations that limit the amount of stock a company can list outside the country, said Irackly Mtibelishvily, chairman of banking for Citigroup in Russia and the Commonwealth of Independent States.
“In practice, the rules imply that a private Russian company planning an IPO would only be able to sell 5 percent of its shares outside the country in the form of depository receipts,” Mtibelishvily said in interviews in Moscow.
President Dmitry Medvedev has made efforts to turn Moscow into a commercial rival to London and Hong Kong a priority for the government. Last week, he gave Prime Minister Vladimir Putin until May 1 “to develop and implement measures to create favorable conditions” to achieve that goal, according to documents posted on the Kremlin’s Web site.
Russian companies are seeking to sell more than $20 billion of shares this year, the most since 2007, to help repair balance sheets after the country’s deepest recession on record, according to Renaissance Capital, the Moscow-based brokerage half-owned by billionaire Mikhail Prokhorov. Those plans are complicated by rules requiring most shares sold via IPOs to be listed on either the Micex or RTS stock exchanges in Moscow, limiting the appeal for international investors.
‘Insider Trading’
“Investors feel comfortable with GDRs, while ordinary Russian shares, in their perception, carry too much risk,” Mtibelishvily said. “High transaction costs, an unstable ruble and insider trading,” are among those perceived risks, he said.
Billionaire Oleg Deripaska avoided the problem by registering his aluminum company, United Co. Rusal, in Jersey. That allowed Rusal to sell common stock directly to investors as opposed to global depository receipts. Rusal last month became the first “Russian” company to list in Hong Kong, raising $2.24 billion selling 10.6 percent of its stock.
Depositary receipts, nominated in dollars or euros and backed by ordinary shares held abroad, have been Russian companies’ favorite tool for luring equity financing from abroad since the Soviet Union fell in 1991. Investors hold 25.4 percent of OAO Norilsk Nickel, Russia’s largest mining company, and 22.2 percent of OAO Gazprom, the biggest energy producer, via proxy stocks, according to the companies’ Web sites.
Potanin, Prof-Media
Billionaire Vladimir Potanin, Norilsk’s largest shareholder, is planning to skirt the IPO rules by selling in London as much as 30 percent of his Moscow-based media company, Prof-Media, via a Cyprus-registered entity, said Andrei Bougrov, chairman of Prof-Media and managing director of Potanin’s Interros Holding Co.
Russia’s largest food retailer and second-largest steelmaker, X5 Retail Group NV and Evraz Group SA, aren’t subject to the regulations introduced by the Federal Financial Markets Service on Jan. 1 because they are registered in the Netherlands and Luxembourg, respectively.
The new rules also cap at 25 percent the amount of shares that can be held in the form of depositary receipts for a company already listed on a foreign exchange, down from 75 percent in 2003.
Prokhorov, Kerimov
To get around restrictions, OAO Polyus Gold, controlled by billionaires Mikhail Prokhorov and Suleiman Kerimov, is considering a so-called reverse takeover by its KazakhGold Group Ltd. unit, which is registered in Jersey. That would give Polyus access to a bigger group of investors while complying with domestic regulations, said two officials at the Moscow-based company who declined to be identified until a decision is made.
Such protectionist measures contribute to the premium investors are willing to pay for proxy stocks traded outside of Russia and not subject to domestic legislation, said Citigroup’s Mtibelishvily.
OAO Wimm-Bill-Dann, for example, the dairy producer part owned by Danone of France, is worth $3.8 billion based on the price of its New York-traded shares, or 80 percent more than its RTS value. Likewise, the London-traded shares of AFK Sistema give billionaire Vladimir Yevtushenkov’s holding company a value of $12.3 billion, versus $7.82 billion on the Russian bourse.
The RTS said it isn’t bothered by the price discrepancy between common and proxy stock, which it attributed to investors being unaware of cuts in transaction costs and improvements in settlement procedures. The head of the Federal Financial Market Service, Vladimir Milovidov, declined to comment on the regulatory changes, as did Micex spokesman Nikita Bekasov.
“The Russian market provides all the opportunities for a successful IPO,” RTS Chief Executive Officer Roman Goryunov said by e-mail. “We expect Russian bourses to handle 30 to 40 percent of all the IPOs planned for 2010,” Goryunov said.
--Editors: Brad Cook, Torrey Clark.
To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@
To contact the editor responsible for this story: Simon Casey at scasey4@
Financial Times: Antonov rails at 'prejudices'
By Andrew Ward in Stockholm
Published: February 26 2010 02:00 | Last updated: February 26 2010 02:00
When Spyker Cars completed its audacious acquisition of Saab Automobile this week, saving the Swedish carmaker from closure, one man was conspicuously absent from the celebrations.
Vladimir Antonov, the former chairman and biggest shareholder in Spyker, was forced to leave the company as a condition of General Motors selling Saab to the Dutch boutique sports carmaker.
GM has not commented on Mr Antonov's departure but Victor Muller, Spyker chief executive, confirmed to the Financial Times that the Russian investor had been barred from ownership of Saab, without specifying why or by whom.
It was initially thought that GM might be concerned about potential leakage of intellectual property to Russia. But reports later surfaced in the Swedish media that the main concern was alleged ties between Mr Antonov and organised crime.
Mr Antonov, who heads the Moscow-based Convers banking group, has denied having any criminal connections and labelled the allegations as "surreal" and "false horror stories".
He says it was the Swedish government that forced him out after threatening to block the Saab deal because of his involvement. Stockholm has neither confirmed nor denied his account of events.
"The main aim of those who should have been worried about Saab's survival . . . [was] to ensure the exclusion of this 'evil' Russian investor," Mr Antonov wrote in a recent article in the New York Times.
The case has highlighted the sensitivity surrounding Russian investment in western companies four months after GM pulled out of a deal to sell its European Opel unit to a consortium including Russia's Sberbank, amid concerns over intellectual property and other issues.
"It is obvious that European business has strong prejudices against investors from Russia," wrote Mr Antonov in the New York Times. "There is a fear of Russia itself, of the increase of the influence of Russian businesses in the international marketplace."
Mr Antonov sold his 29.9 per cent stake in Spyker to Mr Muller this week to allow the Saab deal to close. Mr Muller told the FT he was sorry Mr Antonov had been pushed out, describing him as "a great friend and a great shareholder".
The Russian, a keen car enthusiast, has helped bankroll Spyker, founded a decade ago, as it tries to build itself into a rival to Ferrari, Lamborghini and others in the niche market for high-performance "super cars". Now, the company is aiming to break into the mainstream car industry through its acquisition of Saab .
In spite of being forced to relinquish his stake, Mr Antonov has not severed all ties with Spyker. He revealed last week that he was providing tens of millions of dollars in loans to Tenaci Capital, an investment company owned by Mr Muller, to help finance the Saab deal.
Mr Muller refused to confirm this, citing confidentiality agreements, but said GM and the Swedish government knew the identity of all Spyker's financial backers and were comfortable with the arrangements.
Mr Antonov has appointed a team of outside investigators to audit his business affairs in an effort to clear his name, with the aim of eventually returning to Spyker as a shareholder.
He warns that European countries risk becoming "victims of their own narrow-mindedness" if they miss out on Russian capital because investors are scared away by the threat of "humiliating procedures and public slander".
Mr Muller says he would welcome Mr Antonov back to the company but warns it is out of his hands. "He cannot become a shareholder of Saab-Spyker unless GM agrees to it," he says. "I hope he will be able to get his reputation restored and that one day he will be able to return to Spyker."
gm
RIA: Cirque du Soleil to invest up to $50 million in Russia program
07:4626/02/2010
Canada's internationally renowned Cirque du Soleil plans to expand its activities in Russia, investing $30-50 million and creating a permanent show in the country, the vice chairman of the circus's Russian office said Thursday.
The Cirque du Soleil made its first performance in the Russian capital last fall.
Craig Cohon said in Vancouver's Russia House that three shows — in Moscow, St. Petersburg and Kazan — are planned.
Guy Laliberte, the founder of the Cirque du Soleil, paid about $35 million for his 12-day stay as a space tourist on the International Space Station in 2009.
The circus was founded in 1984. Over 80 million people have attended its performances. Its office in Russia was opened in 2009.
VANCOUVER, February 26 (RIA Novosti)
Activity in the Oil and Gas sector (including regulatory)
February 26, 2010 10:57
Interfax: Export duties on oil as of March set at $253.6 per tonne, zeroed rate on Eastern Siberian oil extended (Part 2)
MOSCOW. Feb 26 (Interfax) - The export duty on oil in Russia as of March 1, 2010 will decrease from $270.7 per tonne to $253.6 per tonne, according to a Russian government decree signed February 24 and published in Rossiiskaya Gazeta.
In addition, the zeroed custom on oil from Eastern Siberia is being extended.
The duty for light petroleum products will be lowered from $194.7 to $183.2 per tonne and on heavy petroleum products, from $104.9 to $98.7 per tonne.
Exports duties on liquefied natural gas will continue to increase, up an additional 23% to $80 after a 40% increase in February.
Itar-tass: Oil era not to end in coming decades – Shafranik
26.02.2010, 10.25
LONDON, February 26 (Itar-Tass) --The oil era will not end in the coming decades, Yuri Shafranik, President of the Council of the Russian Union of Oil and Gas Producers, has said in an exclusive interview with Itar-Tass in London after his report at the British Royal Institute of International Affairs (Chatham House). He believes the “oil peak”, in the form in which it is described by Western analysts, is hardly probable.
“Naturally, a peak and a recession will come some day, but not in the form of ‘up and down.’ Some day energy production will be stabilised, and not because of oil, but because of other energy sources, like shale gas, liquefied gas, nuclear and hydrogen power engineering … Those energy sources will occupy their niches, because they offer no competition to oil. No one will lay a gas pipeline to tents of skin and bark, in which people live in the tundra, or to highland villages. Other energy sources will be used there. This is why I have long preferred the idea of stabilized oil production to the idea of an oil peak.”
According to Shafranik, some fluctuations will take place in the stabilised oil production anyway. “Expenditures on oil production are growing, which will bring about some reduction of oil output. When we develop less expensive technologies, oil output will go up. When the generation of atomic, hydrogen or other energy grows, a smaller amount of oil will be needed. If the demand for natural or liquefied gas grows, the situation will be the same. All the attempts to intimidate people by the talk about the oil peak are the result either of insufficient professionalism, or of excessive imagination,” he said.
“I began to work as an oilman in Samotlor in 1974. That time a discussion was also going on about how long we shall be able to use the oil reserves. Some people believed oil reserves would be depleted soon. During the years that have elapsed since that time, especially during the past 20 years it turned out that prospected oil reserves are greater than the oil reserves which are being developed. This means there would be no oil hunger in the world in the coming decades,” Shafranik continued.
“It is true that hydrocarbons are getting more and more expensive. Enormous investments are needed, because oil is extracted from the depth of six, seven kilometres or more. This is why I am of the opinion that the time of cheap oil is over, but the oil era will not end in the coming decades. This is a fact,” he said.
Itar-Tass: Europe to need Russian gas for years to come-Shafranik
26.02.2010, 11.17
LONDON, February 26 (Itar-Tass) -- Despite all alternative technologies, Europe will need Russian gas for a long time to come, Yuri Shafranik, President of the Council of the Russian Union of Oil and Gas Producers, has said in an exclusive interview with Itar-Tass after he made a report at the British Royal Institute of International Affairs (Chatham House).
“The greatest amounts of gas are delivered by gas pipelines, but the production of liquefied gas is developing, offering competition to the traditional natural gas. Of course, this competition does not make us happy. Nevertheless, gas consumption in Europe will continue to grow. The only problem is the dynamics of that growth,” Shafranik said. In his opinion, “the growth will not be great, because Europe is taking effective measures for introducing energy saving technologies and is confidently mastering other energy sources, including alternative ones. And still, Europe will need our gas for a long time to come. This is why the Nord Stream and South Stream pipelines, which are a supplement to the existing ones, are quite promising projects.”
“So far as Nord Stream is concerned, all problems connected with it have been settled. All i’s have been dotted, and all t’s have been crossed. We may start building the gas pipeline and putting it in operation. This, however, does not remove from the agenda the need for starting a new dialogue with the present Ukrainian leaders on entirely new approaches to gas transit. If full legal, economic, corporate and financial understanding is reached, Ukraine is sure to profit from it, because its pipelines will be used at full capacity. Russia and Europe will profit from it too. So far as South Stream is concerned, it will certainly enhance the reliability of Russian gas deliveries to Europe,” Shafranik continued.
At the same time, he called attention to the prospects opening up by the idea of the Russia – Turkmenistan – Iran gas axis, of which he spoke on many occasions. “Those three countries are the main operators on the gas market of Eurasia. They have all reasons, and even historic obligation, to pursue a common policy in establishing participants in gas production, the amount of gas to be produced, the directions of gas transportation, and, which is especially important, gas prices. It is important to develop the existing contacts and cooperation between our countries on a mutually advantageous basis,” Shafranik said. “The putting into effect of the gas axis doctrine could become the key factor of the economic development of Turkmenistan. It is a very important factor for the development of the Russian economy too. The idea could become a stabilising factor for the world economy.”
Itar-Tass: Energy Ministry to submit program on exploration of Russia’s north
25.02.2010, 18.36
MOSCOW, February 25 (Itar-Tass) - Russia’s Energy Ministry will submit a program for comprehensive development of deposits of the Yamalo-Nenets Autonomous District and the north of Krasnoyarsk Territory until 2020 to the government for consideration until March 31, said Sergei Erke, who heads the Ministry’s oil and gas exploration department.
The estimated reserves of the Yamalo-Nenets Autonomous District and the north of the Krasnoyarsk Territory comprise 2.8 billion tonnes of oil and 1.2 billion tonnes of gas condensate, he told Itar-Tass on Thursday after a State Duma meeting on exploration of Russia’s north.
Under the program the growth of hydrocarbon reserves in the Arctic region will total 78 million tonnes of oil, up to 35.7 million tonnes of gas condensate and up to 10 billion cubic meters of associated gas (with utilization rate of 95 percent) by 2020.
The total demand for investments makes up 3.2 trillion roubles.
The region will create new jobs – 45,000 jobs in the oil and gas sector, 55,000 – in the construction sector and up to 1 million jobs – in the adjacent areas.
In 2011 the Purpe-Samotlor oil pipeline with the annual capacity of 45 million will be commissioned. In 2012 the Zapolyarnoye field (Gazprom), the Vankor field (Rosneft) and the Samburg (ENI) will be launched.
Participants in the roundtable meeting recommended the government to submit amendments to Russia’s Tax Code on the introduction of a zero rate of subsoil tax and a zero customs duty on all types of equipment and goods that have no analogues in Russia.
At the same time they stressed the need for ensuring environmental security and preserving the traditional lifestyle of indigenous peoples of the North.
[pic][pic]
Steel Guru: GDF Suez to ink Nord Stream MoU on March 2
Friday, 26 Feb 2010
Reuters reported that France GDF Suez will sign a deal with Russian gas monopoly Gazprom on March 2nd on taking a 9 percent stake in the Nord Stream gas pipeline.
GDF Suez has been in talks for over a year to take a stake in the pipeline being built by Gazprom and German utility E.ON which will carry 55 billion cubic meters of gas annually from Russia to Germany via the Baltic Sea from 2012.
The source said "GDF Suez will sign a MOU on March 2nd which will be quite specific as it has agreed on all the conditions."
The signing of the MOU will take place during an official visit of Russian President Mr Dmitri Medvedev on March 2nd.
Reuters: RLPC-Russia's Tatneft asks banks for $2 bln loan-bankers
Thu Feb 25, 2010 6:56pm IST
LONDON, Feb 25 (Reuters) - Russian oil firm Tatneft (TATN3.MM) has issued a term sheet to banks proposing a pre-export financing loan of up to $2 billion that will refinance a deal signed in 2008, banking sources close to the deal said.
BNP Paribas, acting as letter of credit bank; Unicredit, which is facility and security agent; and documentation agent WestLB are coordinating the proposed financing, one of the sources added. Tatneft told Reuters it is considering the different options to raise funding, but declined to comment on the coordinating banks.
It is the second Russian syndicated loan to emerge this year, following Gazprom Neft's (SIBN.MM) appointment earlier this week of Bank of Tokyo-Mitsubishi-UFJ, Natixis and Societe Generale to arrange a $1 billion, five-year pre-export financing. [ID:LDE61M22M]
As reported in January, Tatneft has been in talks with lenders to refinance a $2 billion loan signed in April 2008 that was used to construct a refinery and petrochemical complex in Nizhnekamsk, in the Republic of Tartastan. [ID:LDE60C228]
Tatneft's most recent loan was a $1.5 billion pre-export deal that signed in November last year, which was also used for the refinery. [ID:nLD51584].
That loan, secured on oil exports, was split between a three-year tranche that pays 585 basis points (bps) over LIBOR and a five-year tranche that pays 685 bps.
The original $2 billion, 25-month senior secured loan from 2008 was guaranteed by Tatneft and the International Petro-Chemical Growth Fund (IPGF). It paid a margin of 165 bps over LIBOR and included a six-month extension option. [ID:L29896149].
Tatneft is controlled by the regional administration of the Republic of Tatarstan. (Reporting by Christopher Mangham; additional reporting by Anton Doroshev in Moscow; Editing by Greg Mahlich)
BNE: First oil shipment planned for Northern Sea Route
Combined reports
February 26, 2010
Sovcomflot intends to carry out a trial shipment of oil from the Varandey terminal in Nenets through the north coast of Siberia to Japan this summer, according to Barents Observer.
Lloyd's List reports that Sovcomflot will send one of its purpose-built 70.000 dwt ice-classed shuttle tankers to Japan with oil loaded at the Varandey terminal on the Pechora Sea coast.
Sovcomflot is Russia's largest shipping company and has been shipping oil from the offshore offloading ice-resistant terminal at Varandey since 2007.
The shipment with crude oil planned for this summer will be the first ever oil tanker to sail the entire Northern Sea Route from Northwest Russia to Asia. Sovcomflot operates three special purpose built tankers for ice-covered waters for the shipment of oil from the Varandey terminal. These tankers, built in 2007, 2008 and 2009 have the capability to break through 2.5 m thick ice without icebreaker assistance, according to Barents Observer
Sovcomflot is also planning to carry out its first test shipping of LNG through the Northern Sea Route. Last week BarentsObserver reported that Russian gas producer Novatek said they are planning to test the Northern Sea Route for huge LNG tankers in cooperation with Sevcomflot. The planned test shipment will go from the yet-to-be-built LNG plant on the Yamal Peninsula to the Asian markets via Siberia's northern coast.
The offshore loading terminal at Varandey is situated 22 km offshore and the waters around is ice-covered most of the year. On January 24th this year, the terminal marked that the first 10 million tons of crude oil shipment was completed, according to the website of Sovcomflot.
Gazprom
B92: “South Stream according to plan”
26 February 2010 | 09:21 | Source: B92
BELGRADE -- All activities related to the realization of the “pan-European project South Stream”, as far as Serbia's participation is concern, are going as planned.
his is according to Serbia's Energy Minister Petar Škundrić, who also said that unrelated to the planned Russian natural gas pipeline, “a national gasification plan is being implemented”.
“We are securing all the necessary conditions to have a high degree of energy stability and security when it comes to supplying Serbia with this fuel.”
Škundrić said that it was along these lines that a decision was made to build new underground gas storage of Banatski Dvor.
“Phase one has practically been finished, the company with the strategic partner, Gazprom, was formed, and conditions are here to start the second phase, of reaching the desired capacity of 800 million cubic meters of natural gas in that facility,” said the minister.
UpstreamOnline: Germany and UK cut Russian gas demand
Germany, the biggest importer of Russian gas, cut its purchases from Russia's Gazprom by 17.5% last year, while exports to the UK were slashed by 65%, a source at the Russian gas export monopoly said.
News wires 25 February 2010 14:08 GMT
In 2009, Gazprom exported 31.4 billion cubic metres to Germany and 7.3 Bcm to the UK, the source told Reuters.
Most other European countries also sharply reduced their gas purchases in the face of the global economic crisis.
Published: 25 February 2010 14:08 GMT | Last updated: 25 February 2010 14:11 GMT
Reuters: Gazprom 2009 exports to Germany down 17.5 pct-source
Thu Feb 25, 2010 7:25pm IST
MOSCOW, Feb 25 (Reuters) - Germany, the biggest importer of Russian gas, cut its purchases from Gazprom (GAZP.MM) by 17.5 percent last year, while exports to Britain were slashed by 65 percent, a source at the Russian gas export monopoly said.
In 2009, Gazprom exported 31.4 billion cubic metres to Germany and 7.3 bcm to Britain, the source told Reuters on Thursday. Most other European countries also sharply reduced their gas purchases in the face of the global economic crisis. (Reporting by Anton Doroshev; Writing by Toni Vorobyova; Editing by Dmitry Sergeyev)
VTB: Gazprom asks for tax holidays at Yamal
VTB Capital
February 26, 2010
negotiations are at an early stage - if introduced, would be more beneficial for NOVATEK
News: Gazprom estimates that it will need to invest up to USD 200bn over the next 15 years to develop Yamal and that doing so would only be economically effective were the government to introduce tax holidays and customs facilities for the gas produced in the region. Under current legislation, developing the Yamal gas fields would give an IRR of up to 7.5%, while if the suggested tax holidays and customs facilities were introduced, the IRR would be 13.3%.
Our view: As Gazprom representatives mentioned during the Investor Day, the company is going to start production at Yamal in 2012 with initial well flows at 500-700mcm per day. Introducing tax holidays and customs benefits might decrease the risk of the Yamal gas field development being delayed. At the same time, we believe that a preferential tax at Yamal, if introduced, would be more advantageous for NOVATEK, as taxes (namely, the Mineral Extraction Tax) comprise a higher share in its total costs than in Gazprom's.
BarentsObserver: 199 billion USD investments in Yamal
2010-02-25
Gazprom plans to invest between up to 199 billion USD in the Yamal Peninsula over the next 25 years, a company representative said Thursday.
Gazprom representative Vasily Savchenko in a round table conference in the State Duma Thursday said that the company estimates its total investments in the Yamal Peninsula to between 165 and 199 billion USD over the next 25 years.
Gazprom is currently in the process of developing the first field in the gas-rich peninsula. The Bovanenkovo field is to be in production in year 2012.
Read more - RIA Novosti
Financial Times: Gazprom in contract shake-up
By Catherine Belton in Moscow and Ed Crooks in London
Published: February 25 2010 23:06 | Last updated: February 25 2010 23:06
Gazprom, Russia’s gas export monopoly, has renegotiated some contracts with European customers for a three-year “crisis” period, according to Alexander Medvedev, deputy chief executive.
Gazprom has agreed changes to gas contracts with European energy groups to allow up to 15 per cent of sales to be linked to gas prices on the spot market, which are about 25 per cent cheaper than the oil-linked prices specified in long-term contracts.
It emerged on Thursday that GDF Suez of France had renegotiated its contracts with Gazprom, alongside Eon of Germany and Eni of Italy.
However, Mr Medvedev told the Financial Times on Thursday that the basis of the company’s business in long-term oil-linked contracts “remains the same”. He indicated more than 10 per cent but less than 15 per cent of sales had been affected by the change to the pricing formula.
“Every three years we have the right to look at prices, and what we have done today is just for a three-year period including 2010. We are sure that in three years the situation will be back on track. There is no danger in the mid- to long-term.”
A shift away from oil-linked long-term contracts has been seen as a serious threat to Gazprom’s revenues and investment plans.
Weak demand and strong supplies of gas have meant that prices in spot gas markets in the US and UK have been well below oil-linked prices, which have improved following the doubling of the price of crude from its low point below $33 per barrel last year.
New gas supplies formed by the development of previously uneconomic US reserves such as shale gas, and new facilities to export liquefied natural gas in Qatar and elsewhere, mean many analysts expect spot gas prices to remain weak for years.
Low spot gas prices have prompted European energy retailers to push for more flexible pricing by Gazprom, which provides about 25 per cent of the EU’s gas.
Eon said on Thursday: “Sub-volumes will no longer be pegged to the oil price but to the gas price on spot markets. This gives Eon Ruhrgas the flexibility to adapt its offers for customers.”
Mr Medvedev also insisted Gazprom would retain “take or pay” clauses in its contracts, which levy penalties on buyers for gas they do not take. “We have reallocated certain obligations from the crisis period to a future period, but we are not losing volumes overall,” he said.
Christof Rühl, chief economist at BP, the EU’s largest oil and gas group, argues in an article in the journal Foreign Affairs that but for long-term contracts with Gazprom, Europe could further reduce reliance on Russia by increasing LNG imports.
The Moscow Times: Gazprom Mulls Creation of Rival to Novatek
26 February 2010
By Irena Reznik and Yelena Mazneva / Vedomosti
Gazprom, concerned by Novatek's partnership with oil trader Gennady Timchenko, is considering swapping part of its stake in the company for 51 percent of Sibneftegaz, which it could then merge with Nortgaz and Purgaz to create a third major Russian gas producer.
Gazprom and Gazprombank are discussing a buyout deal or exchanging assets, a source close to the bank's management and two officials at Gazprom-controlled companies told Vedomosti. An asset under consideration is 51 percent of Sibneftegaz, the remaining 49 percent of which is controlled by Itera.
The bank received the Sibneftegaz stake in 2006, but it had originally been planning to sell it on to Gazprom. The gas giant, however, has been busy with other acquisitions since then, including power companies, Gazprom Neft and Sakhalin-2. But now the deal with Gazprombank is back under consideration.
Throughout 2009, Gazprom was working on a preliminary valuation of Sibneftegaz. But like before, the state company is not willing to pay in cash, which is why the companies are discussing various asset swaps, said the source close to Gazprombank's management. For example, the source said, a number of Gazprom managers have proposed handing over to the bank shares in Novatek, since Gazprom has just 19.4 percent — not enough to control Russia's No. 2 gas producer.
Additionally, it would be beneficial for Gazprom to consolidate Sibneftegaz's production and reserves, said an official from a Gazprom-controlled company. For Gazprombank, however, Sibneftegaz is a problem asset because it is just developing, still requires investment and is currently losing money. After Timchenko stepped up his presence in Novatek — he now controls 18.2 percent and could raise his stake to 23.4 percent — the company began competing with Gazprom, the source said.
Gazprombank, on the other hand, could earn stable dividends from a stake in Novatek, which is one of Russia's most profitable energy companies. It pays out more than 30 percent of its profit in dividends, including 7.65 billion rubles ($255 million) for 2008.
Novatek has a market capitalization of $17 billion, annual production of more than 30 billion cubic meters and reserves of about 2.5 trillion cubic meters, according to Russian classifications. Sibneftegaz's proven reserves are 400 bcm, and it expects to produce 10 bcm of gas this year.
If it were valued using Gazprom's multipliers, Sibneftegaz could be worth about $2.5 billion, said Artyom Konchin, an analyst at UniCredit Securities. Thus, Gazprombank's stake would be enough to get about 7.5 percent of Novatek.
To date, however, deals with Sibneftegaz shares have valued the company at far less. In 2006, Gazprombank bought control of the company for $131 million, and in September 2009, Itera purchased a 21 percent stake for $132 million — valuing all of Sibneftegaz at $628 million.
All three sources told Vedomosti that no decisions on an asset swap had been made. But Sibneftegaz chairman Alexander Krasnenkov, a former senior executive at Gazprom, has said a deal between the gas giant and Gazprombank could come as soon as March, Prime-Tass reported, citing an interview in Gazprom's corporate magazine.
When the deal is reached, Sibneftegaz could be merged with two other small gas companies: Purgaz and Nortgaz, Krasnenkov said. Then Russia would have a new major player on the gas market that could potentially have an IPO, he added.
If combined, the three companies' planned production volumes for 2010 would be about 29 bcm, or nearly 80 percent of Novatek's forecast output.
Gazprom controls Purgaz and Nortgaz. Itera has 49 percent stakes in Sibneftegaz and Purgaz, while businessman Farkhad Akhmedov has 49 percent of Nortgaz. Krasnenkov said the idea had been discussed with Akhmedov and Itera chairman Igor Makarov, and both supported it.
Akhmedov declined comment, but a source close to him confirmed that the idea was discussed. But no decisions were made, and a potential decision is far off, both that source and a source close to Itera said.
Spokespeople for Itera, Gazprombank and Gazprom declined comment.
Nonstate pension fund Gazfond owns 50 percent plus one share in Gazprombank, while Gazprom owns 41.3 percent.
FEBRUARY 26, 2010
Wall Street Journal: Cracks Show in Gazprom's Pipeline
By LIAM DENNING
General Winter, Russia's great hero, blunted the ambitions of Napoleon and Hitler. He is struggling to fend off Europe's natural-gas buyers.
Russian gas company Gazprom agreed to change how it sells gas to German utility E.ON, it emerged this week. Gazprom supplies a quarter of Europe's gas, mostly under long-term contracts linking the price to oil products. Gazprom has just agreed to link a small percentage of the price to spot prices, E.ON said. Spot gas can be had for a third less than contracted gas this year, according to Citigroup.
Recent cold weather may have helped Gazprom limit the amount of gas it had to link to spot prices. But three bigger forces are working against the company.
Recurring disruptions centered on Ukraine have forced Europe to diversify supplies. JBC Energy expects Europe's capacity to import liquefied natural gas from multiple sources to hit 7.7 trillion cubic feet by 2015, equivalent to about a third of forecast demand.
Recession, meanwhile, has cut European demand. Thane Gustafson, senior director at IHS Cambridge Energy Research Associates, said demand may not recover to prerecession levels until 2014.
The third blow to Gazprom comes from across the Atlantic. The unlocking of unconventional reserves like shale gas has transformed the U.S. supply picture and looks set to hold prices down there for years. Liquefied-natural-gas cargoes destined originally for the U.S. are being diverted to Europe, reducing spot prices there and making Gazprom's oil-linked gas unattractive.
The minimal upfront impact on Gazprom's earnings shouldn't blind investors to the long-term implications. The stock's appeal rests largely on two pillars: Gazprom's perceived stranglehold on an isolated European market and its ability to eventually raise domestic prices to higher export prices.
This week's news puts a crack in both of them.
Write to Liam Denning at liam.denning@
The Moscow Times: Customs Service Fires New Salvo at Gazprom
26 February 2010
By Anatoly Medetsky
The Federal Customs Service indicated Thursday that it was ready to continue its export-duty duel with Gazprom, proposing new rules that could be used to force the gas export monopoly to disclose its pricing for foreign clients.
The changes would base export duties on volumes delivered rather than prices declared by Gazprom, which the customs service argues would increase transparency. The state-run company, however, has said the proposal would decrease its revenue — and as a result, the cash it pays into the federal budget.
The announcement shows that pressure on Gazprom from various government agencies is not yet abating, even as the world's largest gas producer has reguarly proven its resilience to new regulation.
Earlier this month, Gazprom fended off an attempt by the Federal Customs Service to make it declare exact volumes and prices before gas supplies crossed the boarder, winning a favorable government decision after an almost yearlong battle in court.
Last week, Federal Anti-Monopoly Service chief Igor Artemyev said the competition watchdog would rework proposals making it easier for other gas producers to get fair access to Gazprom's sprawling pipeline network, after the gas giant's success in proving that the previous effort was inadequate.
“It's anyone's guess how it will end,” a source at Gazprom Export, the subsidiary handling exports, told The Moscow Times, referring to the latest dispute.
Gazprom now pays a 30 percent duty on the sales price for each of its particular contracts, which are confidential and hard to verify independently, Vladimir Ivin, head of the service's analytical department, said Thursday on the sidelines of a conference.
The customs service wants the payments to be determined by an adjustable duty on volume, similar to how crude oil deliveries are taxed, he said, without specifying the unit of volume or the currency.
The government set the crude export duty at $270.70 per metric ton for February, an amount based on the market prices over the time from mid-December to mid-January.
The service's new proposal, which is being considered in the government, would make collection of gas payments more transparent because customs officials can easily take stock of outbound flows, Ivin said.
“They can report whatever they want,” he said, referring to Gazprom's price statements, Interfax reported. “But they are hard for us to verify. It's easier to measure the volume. There is a gauge for that."
Gazprom said in its fourth-quarter earnings report that a volume-dependent duty, which would apply as the gas crosses the border, would reduce its revenues and what it pays in duties. The company was apparently referring to the fact that it charges a higher price when it hands over gas to the customers at a foreign destination than at the border.
The report also said there was no “objective” way of calculating the size of the duty.
Further complicating the calculation of a volume-based duty, Gazprom said this week that it would take European spot prices into account in contracts with its clients there, breaking from the previous policy of basing export rates exclusively on the price of a basket of oil products with a lag of six to nine months.
The Gazprom Export source said Thursday that customers vary from country to country in how they measure the volume of supplies, which would create confusion for commercial settlements.
“Measurements of one and the same amount of gas in different reference temperatures … may vary by more than 10 percent,” the source said, adding that some European countries measure gas at 0 degrees Celsius, while others operate at 25 degrees Celsius. “That's why it is inaccurate — both from the prospective of commerce and physics — to state that a gauge reading would be comprehensive.”
It would be untenable to determine the size of a duty, measured in rubles or another currency, because — unlike oil — most of the gas in Europe is traded outside exchanges, which makes the price confidential, analysts said.
“Only Gazprom knows the price with 100 percent accuracy,” said Alexander Nazarov, an analyst at the investment company Metropol.
Enforcement of the new way of collecting the duty would likely require the Federal Customs Service to seek disclosure of the sensitive information from Gazprom, said Maxim Moshkov, an analyst at UBS in Moscow.
“It's not a constructive position,” he said. “There are no options but to trust Gazprom.”
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- 10 facts about russia s history
- facts about russia for kids
- videos about russia for kids
- learn about russia for kids
- map of russia for kids
- russia kids learning tube
- russia for kids printables
- information about russia for kids
- russia and central asia map
- german soldiers in russia ww2
- china and russia warn us
- iran china russia news