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Basic Political Developments
• Israel Today: Russia won't sanction Iran, US urges Israel not to attack
• INN: Netanyahu to Meet with Putin Tuesday
• Ynet: Medvedev not behind Iran sanctions yet
• The Moscow Times: Netanyahu Courts Russia on Iranian Nukes
• Reuters: Israel asks Russia for Iran "sanctions with teeth"
• Russia Today: Iran and Palestine tied up in Netanyahu’s Moscow talks
• Itar-Tass: US not to deploy missile defence in Black Sea – Tauscher
• Prime-Tass: Feb 17: Russian President Dmitry Medvedev to meet with Abkhazia’s President Sergei Bagapsh in Moscow
• Georgia Times: Sepratist leader to sign agreement in Moscow - The leader of the Abkhazian puppet regime, Sergey Baghapsh arrives in Moscow today to sign a bilateral agreement with the Russian president Dmitry Medvedev regarding resumption of flights between Russia and the occupied region. Baghapsh will also sign an agreement on a Russian military base in Abkhazia during the visit.
• RBC: Russian, Greek PMs to discuss oil and gas projects
• Reuters: Greece to raise Russian pipeline supply issue
• Itar-Tass: Medvedev to meet Papandreou to discuss econ issues
• Russia Today: Greek PM visit to focus on gas
• The Moscow Times: Russia, CIS Largest Buyers of Greek Property Last Year
• GEO TV: Russian FM talks about Iran fuel swap in Guatemala
• Itar-Tass: Lavrov to visit Mexico on final leg of CentAm tour Tue
• Prague Monitor: Press: Klaus, Zeman might be lobbying for Lukoil - The main sponsor of Zeman's new Party of Citizens' Rights (SPO) is Martin Nejedly, the representative of Lukoil in the Czech Republic. Moreover, Zeman's traditional cooperator and lobbyist Miroslav Slouf openly says he promotes Lukoil's interests in the Czech Republic, Respekt notes.
• 24.kg: Russia to allocate $30M to poor countries
• Saba News: Two Russian planes laden with foodstuffs for IDPs arrive this week
VTB: Vladimir Putin to head Commission on High Technology and Innovation
• Russia Today: Russia to get western quality roads
• .ru: Prime Minister Vladimir Putin meets with Kazakhstani President Nursultan Nazarbayev
• Barentsnova: Driving into Russia gets easier - In particular, starting Feb 25 a foreigner will have to fill in the passenger customs declaration only; vehicle import certificate becomes cancelled. Besides, Russian customs will not have to register foreign vehicles temporarily present in the Russian Federation.
• The Moscow Times: Justice Minister Decries Corruption, Pushes Reforms
• Interfax: New bill drafted to put curbs on missionary activities with minors
• BarentsObserver: Murmansk ecologists support Baikal protests
• RIA: Over 50,000 people left without water in Russia's Urals
• BarentsObserver: Northern fleet vessel continues pirate hunt
• RIA: Russian police to buy French armored vehicles - business daily - VBL vehicles cost on average 250,000 euros ($340,000). They are considered outdated by France's armed forces and police and are being replaced with PVP vehicles, Kommersant reported.
• PIB: Enhanced economic engagement between India and Russia to Boost Bilateral Cooperation: Anand Sharma
• Russia Today: Russia faces tough competition at India’s DefExpo 2010
• Sindh Today: India turning to Russia for small arms post-26/11 attacks
|Defpro: Rosoboronexport at Defexpo India International Exhibition 2010 |
• RFE/RL: What The Soviets Got Right In Afghanistan - By Jean MacKenzie
• RFE/RL: Activists Say North Caucasus Civilians Targeted
• NY Times: Russia’s Version of Four Deaths Disputed
• Financial Times: Putin should beware aftertaste from Kiev poll
• Guardian: Litvinenko's widow says Russian authorities obstructing murder inquiry
• Moscow News: Baltic Pipeline, timber tariffs seen as linked - Finland's decision last week to give its final environmental approval to the Nord Stream gas pipeline came as Russia signalled a concession on another key issue for its Nordic neighbour - a further delay in imposing prohibitive export tariffs on raw timber.
• Expert Club: Will Moscow invite Nauru to take part in Victory Day celebrations?
National Economic Trends
• Interfax: Business-lending dips 1.2% in Dec, 0.3% for 2009 – CB
• The Moscow Times: January Industrial Output Up 7.8%
• RenCap: January sees unusually steep drop in Russian industrial production
• Bloomberg: Russia’s Bad Debt Creates ‘Significant’ Risk, Bank Group Says
• The Moscow Times: Officials Eye Lower Mortgage Rates
• The Moscow Times: Retail Deposits Continue Upward Trend
• Russia wage arrears up in Jan, but well off peaks
Business, Energy or Environmental regulations or discussions
• Reuters: Russian markets -- Factors to Watch on Feb 16
• Stock Markets Review: Russian stock market daily morning report (February 16, 2010, Tuesday)
o Gazprom protected its rights on the former regime of customs procedures for gas. By the results of 2009 LUKOIL expects the net profit to be at the level of 7 bn USD.
o Gazprom Neft provided data on selling products in 2009.
o In the current year Surgutneftegas will keep the extraction at the level of 2009.
o Evrosibenergo might conduct IPO in Hong Kong this year.
o In 2010 MMC will build up the output by 27%.
o AvtoVAZ decided it is time to raise the prices.
• The Moscow Times: Law Loosening Certification Regulations Goes Into Effect
• Israeli Diamond: Diamond giant Alrosa reviews 2009's performance
• UniCredit: Zoloto Kamchatki may IPO end of this year
• RenCap: Construction of Mechel's Elga rail link gets under way
• Bloomberg: Fiat’s Russian Unit to Make 150,000 Jeeps a Year, Vedomosti Says
• UniCredit: CTC Media TV ad time sellout is up 20%-30% yoy to almost 100%, price hikes possible in 2H10
• Bloomberg: Blavatnik Has ‘Wherewithal’ for U.S. Media Deals Including MGM
Activity in the Oil and Gas sector (including regulatory)
• UniCredit: China seeks to double the volume of Russian oil supplied through East Siberian link
• Reuters: LUKOIL raises its forecast for 2009 net profit
• Bloomberg: Rosneft Rises on Speculation Export Tax Relief May Be Extended
• Reuters: Russia's Bashneft sees 2010 crude output up 8 pct
Gazprom
• Reuters: Russia's Gazprom Neft sees 2010 oil output up 3 pct
• UPI: Gazprom builds East Russia ties - Russian gas giant Gazprom met with Japanese executives to discuss bilateral ties to advance gas projects in eastern Russian, the energy monopoly announced.
• Focus: Gazprom to sell Bulgarian electricity
• RenCap: Gazprom resolves its largest dispute with Russian customs; positive for working capital
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Full Text Articles
Basic Political Developments
Tuesday, February 16, 2010
Israel Today Staff
Israel Today: Russia won't sanction Iran, US urges Israel not to attack
Russian President Dmitry Medvedev on Monday resisted pressure from visiting Israeli Prime Minister Benjamin Netanyahu to join other world powers in imposing "severe and paralyzing" sanctions on Iran.
Netanyahu had hoped to impress upon Medvedev that time has run out for more gentle diplomatic efforts, considering how close Iran is today to producing a nuclear weapon.
Officials in Netanyahu's entourage who spoke to the Israeli media tried to put a positive spin on the meeting's outcome, insisting that regardless of a firm commitment by Medvedev to oppose Iran's nuclear program, they are sure the Russian leader will ultimately do the right thing.
Netanyahu also brought up Russia's sale of an advanced anti-aircraft missile system to Iran, after Russian defense officials on Sunday defended providing the Islamic Republic with such a weapon. The S-300 air defense system would make it all the more difficult for Israel to militarily intervene in Iran's nuclear program, if it becomes necessary.
Meanwhile, visiting US Chairman of the Joint Chiefs of Staff Adm. Mike Mullen told his Israeli hosts that he continues to view a military strike on Iran's nuclear facilities as a very bad idea.
Mullen suggested that the consequences of such action would be just as bad as Iran obtaining nuclear weapons.
INN: Netanyahu to Meet with Putin Tuesday
Reported: 09:07 AM - Feb/16/10
() Prime Minister Binyamin Netanyahu is scheduled to meet with Russian Prime Minister Vladimir Putin on Tuesday. They are expected to discuss Israel's concern over Iran's nuclear development program and the supply of Russian anti-aircraft defenses to the Tehran government.
On Monday, Netanyahu told Russian President Dmitry Medvedev that Russia needs to support sanctions with teeth against the nuclear program, which continues to bring the Islamic Republic closer to making an atomic weapon.
Ynet: Medvedev not behind Iran sanctions yet
Netanyahu meets Russian leader to discuss Iranian nuclear issue, sale of S-300 missiles, and Shalit
Roni Sofer
|Published: |02.16.10, 08:24 / Israel News |
Despite the complacency expressed by Prime Minister Benjamin Netanyahu's entourage after his meeting with Russian President Dmitry Medvedev, it remains unclear whether Russia will support a move to impose more sanctions on Iran for its nuclear program.
A senior official with the prime minister's delegation to Russia said Monday evening that Medvedev will be judged on the Iranian issue according to the outcomes.
"The prime minister has clarified, as he has to other leaders, that this is the time to impose strict and paralyzing sanctions on Iran," the official said.
"But the states responsible for this, including Russia, will be judged on this according to the outcome. Our feeling after the meeting with Medvedev and before the meeting with Prime Minister Vladimir Putin is good – but we will see how this pans out." The meeting with Putin is scheduled for Tuesday.
In addition to the Iranian nuclear issue, Israel has for a number of years been lobbying in Moscow against the sale of S-300 anti-aircraft missiles to the Islamic Republic.
Netanyahu said he trusts Medvedev will "behave in a way that will ensure stability in our region" despite talk that Moscow has already signed a contract promising their delivery to Iran.
However the delegation is currently predicting that Medvedev will prevent the sale of missiles, which could damage attempts at bombing Iran's nuclear facilities from the air.
Netanyahu also relayed to Medvedev information about peace talks with the Palestinians. He said that for now the US was brokering the talks, but that Russia may be able to intervene at a later point.
"The prime minister urged Russia to be a catalyst and enter Abbas into negotiations without preconditions," the senior official said.
The meeting also focused on kidnapped soldier Gilad Shalit, for whose release Netanyahu explained a German mediator was in charge. He said Israel was still waiting for an answer from Hamas and that the government would not improve its latest offer.
"Russia, because of its history, has extensive connections with all of the relevant parties in the Middle East," the official said. "The prime minister believes Russia can help promote the release of Gilad Shalit."
In general, the delegation's impression was that Netanyahu received a warm welcome in Russia and that the issue of security was stressed, with entire streets in Moscow closed off to allow the prime minister to proceed unhindered.
The Moscow Times: Netanyahu Courts Russia on Iranian Nukes
16 February 2010
By Nabi Abdullaev
Israeli Prime Minister Benjamin Netanyahu on Monday renewed his call for "crippling sanctions" against Iran over its nuclear program and praised Russia for "understanding" the need to prevent the Islamic republic from developing nuclear capabilities.
Netanyahu and President Dmitry Medvedev met in the Kremlin to discuss possible sanctions, which Netanyahu said must focus on fuel imports and exports.
"I can say that Russia definitely understands there is a need to prevent Iran from obtaining nuclear weapons and it understands that steps must be taken," Netanyahu said, The Associated Press reported. "I trust what I heard from the president of Russia, whose decisions are driven by concerns of regional stability."
Medvedev had not publicly commented on his meeting with Netanyahu as of Monday evening.
Russia and China, who both have veto power on the UN Security Council, have been reluctant to support U.S.-backed sanctions against Iran and have acted to water them down.
Senior Russian officials have repeatedly spoken of the need to prevent Iran from becoming a nuclear power, which they say would spark an arms race in the region and eventually ruin nonproliferation efforts. The officials say, however, that there is no direct evidence that Iran is pursuing an atomic bomb.
Late last year, however, Medvedev said Russia might support tougher sanctions against Iran over Tehran's refusal to cooperate with international efforts to halt Iran's work on uranium enrichment, which can lead to the acquisition of weapons-grade fissile material.
Iranian President Mahmoud Ahmadinejad, who has called for the destruction of Israel, announced last week that Tehran had begun enriching its uranium to the 20 percent level, saying it would be used in medical equipment. He added that Iran has the technical capacity to enrich uranium to 80 percent. Weapons-grade uranium is at the 90 percent level or higher.
The secretary of the Russia's influential Security Council, Nikolai Patrushev, said it was "doubtful" that Iran would enrich its uranium to 20 percent for peaceful purposes and that Russia might agree to tougher sanctions.
Meanwhile, in a move highlighting the ambiguity of Moscow's policy toward Iran, Patrushev's deputy, Vladimir Nazarov, told reporters Sunday that Russia "must implement" a 2005 contract with Iran to supply powerful S-300 air defense systems.
Deployment of the S-300, which can engage and destroy not only aircraft but short- and medium-range cruise and ballistic missiles as well, would dramatically increase the cost of a possible pre-emptive Israeli strike against Iranian nuclear facilities.
It would also make it nearly impossible for Israel to carry out such strikes without the support of the United States, military analysts say.
Washington and Tel-Aviv have called on Moscow not to deliver the S-300s to Iran, and the deal has been suspended. Netanyahu reportedly flew to Moscow for a brief secret visit in September to convince Medvedev not to sell the systems to Tehran.
Netanyahu on Monday would not say whether a possible Israeli military offensive was discussed in his meeting with Medvedev, though he said an international consensus is forming on the increasing threat posed by Iran, the AP reported.
"There is a growing understanding about the Iranian threat and the need to stop them from developing a nuclear weapon," he told the AP. "The gaps between the leading countries is getting smaller and smaller."
Iran's ambassador to Russia, Seyyed Mahmoud Reza, told Ekho Moskvy radio Monday that Russia should fulfill the contract for the S-300s and that Russian support for sanctions would seriously impact bilateral relations.
U.S. Secretary of State Hillary Clinton said Monday that Washington is now focused on gaining international support for sanctions "that will be particularly aimed at those enterprises controlled by the Revolutionary Guard, which we believe is in effect supplanting the government of Iran," the AP reported.
The Revolutionary Guard is paramilitary structure whose leaders are prominently represented in the Iranian ruling elite.
Sanctions being pushed by the United States and its allies include the freezing of assets linked to the Revolutionary Guard, travel bans for certain Iranian officials, cutting gas imports to Tehran, and an arms trade embargo.
Reuters: Israel asks Russia for Iran "sanctions with teeth"
Tue Feb 16, 2010 2:24am IST
By Joseph Nasr
MOSCOW (Reuters) - Israeli Prime Minister Benjamin Netanyahu on Monday asked Russian President Dmitry Medvedev to punish Iran by backing "sanctions with teeth" against the Islamic Republic's energy sector.
Netanyahu, who met Medvedev in the Kremlin, is trying to harden the resolve of major powers for additional sanctions against Tehran, which the West suspects is trying to make a nuclear bomb.
"What is needed now is very tough sanctions that can influence this regime and severe sanctions that will considerably and convincingly harm the import and export of oil," Netanyahu told reporters in Moscow after the meeting.
"President Medvedev heard from me my position about the need for sanctions with teeth. They can bite only if they have teeth. Diluted sanctions don't work," Netanyahu said. A spokeswoman for the Kremlin declined to comment.
Iran, the world's fifth-largest oil exporter, said last week it could now enrich uranium to more than 80 percent purity, close to levels that would be needed for a nuclear bomb, though Tehran denies trying to make atomic weapons.
Israel, seeing a mortal threat, has hinted it could attack Iran's nuclear facilities pre-emptively if it deems international diplomacy a dead end. The United States on Monday denied it was preparing to attack Iran.
Until recently, Russia had resisted calls by the United States and major European powers for additional sanctions on Iran, but Russian officials have in recent days indicated that Moscow could support a tougher stance.
URANIUM DEAL
Russia -- which wields a veto in the United Nations Security Council -- has been deeply disappointed by Tehran's refusal to send uranium abroad for enrichment in Russia, a deal Moscow hoped could allay Western fears.
Foreign Minister Sergei Lavrov said in Guatemala on Monday that the offer for enrichment abroad "remains in force and we very much hope that Iran will accept it," the Itar-Tass news agency reported.
He said there were various ways it could be implemented, but "they do not change the essence of the offer."
In Washington, a National Security Council spokesman also called on Iran to accept the deal.
"The door remains open for Iran to accept the practical, fair, and responsible proposal put forth by the IAEA last fall that would enable Iran to meet its medical humanitarian needs as well as build international confidence in Iranian intentions," spokesman Mike Hammer said.
Russia has trade ties worth $3 billion annually with Iran -- just under double its trade turnover with Israel -- and is putting the finishing touches to Iran's long-delayed nuclear power station in Bushehr.
"Russia certainly understands there is a need to prevent Iran from acquiring nuclear weapons and it understands that certain steps must be taken against it," Netanyahu said.
Neither Medvedev nor Prime Minister Vladimir Putin has publicly commented on the Iranian situation for weeks.
China joined Russia in weakening previous sanctions resolutions and has been a weak link in the current push.
After his talks with Medvedev, Netanyahu met about 30 Russian Jewish community leaders.
"Prime Minister Netanyahu told us that the world expects China to agree to sanctions," Pinchas Goldschmidt, chief rabbi of Moscow and chairman of the Brussels-based Standing Committee of the Conference of European Rabbis, told Reuters by telephone.
According to Goldschmidt, Netanyahu said that his Kremlin talks were "very warm" and that "Russia now seems to understand the great danger (of Iran) more than it did before".
Israel has repeatedly asked Russia to scrap a contract to sell an air defence system known as the S-300 to Iran. Netanyahu said he had received assurances from Medvedev that Moscow understood the seriousness of the issues.
"I trust what I heard from President Medvedev on this issue. I know that on this issue Russia is guided by considerations of regional stability," he said. He will meet Putin on Tuesday.
The truck-mounted S-300, which can shoot down hostile missiles or aircraft up to 150 km (90 miles) away, could help Iran thwart any attempt by Israel or the United States to bomb its nuclear facilities.
Russia Today: Iran and Palestine tied up in Netanyahu’s Moscow talks
16 February, 2010, 08:04
Israel has reportedly asked Russia to support “sanctions with teeth” in order to help deal with Iran's controversial nuclear program.
Israel's Prime Minister Benjamin Netanyahu has been discussing the Iranian problem with President Medvedev during his visit to Moscow. After the first day of talks there has been no official response from Russia yet.
The official story is that Benjamin Netanyahu has come to Russia to promote bilateral relations. Unofficially, it is thought that the real reason is whether or not Russia will support a fourth round of sanctions against Iran.
The Israeli Prime Minister was set to try to get Russia on Israel’s side on the issue of Iranian uranium. The Islamic Republic so far has remained unrepentant when it comes to its nuclear program. Just recently it claimed it is expanding it. Several days ago, Iranian President Mahmoud Ahmadinejad stated that his country is now capable of enriching uranium to up to 20 per cent, which is just a step from getting technology for reaching the 90 per cent enrichment level necessary for production of nuclear weapons.
Emily Landau from the Institute for National Security Studies in Tel-Aviv said the international community should impose, in Hillary Clinton’s terms, “crippling” sanctions on Iran to return Iran to serious negotiations.
“As long as Iran does not feel any pressure from the international community it has no reason to negotiate seriously because it is bent on achieving a military capability for the regional influence that it would gain thereby,” Landau told RT.
”Therefore, Iran’s calculation needs to be changed and sanctions, and other forms of pressure, have a role in changing their cost/benefit analysis of the status quo,” she said.
Benjamin Netanyahu may be demanding from Russia to ban nuclear co-operation with Iran by saying that the republic is not a reliable partner, in which Russia has so far remained unconvinced.
While Israel is pressing for tough sanctions against Iran, it is widely assumed that it itself is a nuclear power. Irina Zvyagelskaya, Vice President of the Center for Strategic and Political Studies calls it a “double standard”:
“International policy in general is a double standard policy, everybody knows it, but in case of Israel the main goal is to preserve their nuclear monopoly in the region. That is why Israel was against Iraqi attempts to create a nuclear reactor. And there are other indications that it’s very important for Israel to remain the lone nuclear power in the area.”
Russia has been backing Iran in its aspiration to peaceful nuclear energy.
What is more important, Russia is against any form of military action against Iran.
Russia remains committed to relying on the IAEA, the International Atomic Energy Agency, which is the main authority for the nuclear energy in the world.
Moscow has repeatedly made it clear that it wants a diplomatic solution of the Iranian issue. However those voices supporting sanctions against Iran are only getting louder in Russia.
“Iran is definitely a very important issue, we’re definitely very much concerned about the recent developments there and my personal opinion as a Russian politician is that Russia should be stronger in its approach towards Iran and should support at least economic sanctions, though not military actions, against Iran,” said Konstantin Kosachev, the head of Russia’s State Duma Foreign Affairs Committee.
Meanwhile, the timing of Israeli Prime Minister’s visit to Moscow is really special because he has come to Moscow on the heels of Hamas leader Khaled Mashaal, who arrived in Moscow last Monday for discussions with Russian Foreign Minister Sergey Lavrov on a new plan for negotiations between Israeli and Palestinian leaders. Shortly before that, Palestinian leader Mahmoud Abbas visited Russia for talks with President Dmitry Medvedev.
The fact that all parties of the Middle East conflict chose Moscow demonstrates that Russia is becoming the major peace broker in the region, which the world is taking notice of. It shows that Russia is willing to engage all parties of the Middle East peace settlement, something the US has failed to do so far.
The Palestinian knot
The story line hasn’t changed much over the decades – Israel and the Palestinians as far apart as ever, despite the hands-on involvement of American presidents from Carter to Obama. But for all the peace summits and road-maps, none have got very far.
Trying to solve the Middle East peace process is an attractive goal for any world power. But it would seem that many American diplomats have perhaps overestimated the willingness of Arab countries to make concessions to Israel. And for Israel, in turn, to implement a complete freeze on Jewish settlements on disputed lands.
After the Soviet Union cut relations with Israel in 1967 following the Six Day War, Washington was left to control the game as it desired.
“Russia was too busy with domestic affairs and economic challenges to really perform an important role in negotiations here, and at the time the US felt very powerful as it won the Cold War and it didn’t want to share the glory of mediation and negotiation with other participants,” Professor Eytan Gilboa from Bar-Ilan University told RT.
Ghassan Khatib has spent most of his life campaigning for Palestinian-Israeli dialogue.
He was a delegate to the Madrid Conference in 1991 – which the US and Soviet Union jointly sponsored to try to break the deadlock – and attended talks in Washington that year.
He says the main reason for the lack of progress has been America’s bias towards Israel, which he believes works both ways, adding “I believe that Israel is selective in its international relations. They insist on a solo American role in the peace process because they are comfortable with the American approach to the peace process and they discourage others like Russia and Europe from taking part in international efforts and they try to encourage a relationship with Russia on other issues, such as the Iranian threat, because they believe Russia can play a role in this regard.”
That is precisely why many believe Israeli Prime Minister Binjamin Netanyahu is visiting Moscow.
He is expected to ask the Russian leadership to ban any weapons deals with Iran, and not to provide any nuclear know-how to Tehran.
In turn, his promise would be Israeli participation in any Russian-sponsored Middle East peace initiative.
Peter Stegney, Russian ambassador to Israel, said: “We are trying to help to reach direct dialogue between the sides because we believe that a comprehensive, viable and just solution might be reached in the framework of direct talks. The sides of the conflict have to decide what the terms of such an agreement are.”
Russia has dialogues with Israel’s foes – Hamas, Hezbollah and Iran – putting it in a unique position to act as go-between. But not everyone believes that that makes Moscow the ideal mediator.
“Iran and its allies are committed to preventing a settlement with Israel and Russia does not have the leverage on Iran to change that," notes Dr Jonathan Rynhold from Begin-Sadat centre for Strategic Studies.
As far back as several years ago, Moscow first proposed holding a Middle East conference involving all the parties to try to finally find peace.
Itar-Tass: US not to deploy missile defence in Black Sea – Tauscher
15.02.2010, 21.35
WASHINGTON, February 15 (Itar-Tass) --The United States has no plans to deploy missile defence elements in the Black Sea, Undersecretary of State for Arms Control and International Security Ellen Tauscher told foreign journalists, including Itar-Tass, on Monday.
“The Russians have been consistently advised as to what the phased adapted approach is and what the plans are for the four pieces of the timetable since the announcement was made by President Obama in mid-September,” she said.
“And my Russian counterparts were informed that I was going to be in Romania and that the President was going to offer Romania the opportunity to host phase 2 in 2015 - the land-based SM-3 site. And we have a Ballistic Missile Defense review and the Russians have been consistently briefed on it as our NATO allies,” Tauscher said.
She said the U.S. had no plans to deploy Aegis ships and there are no sea-based missile defence elements in the Black Sea.
Prime-Tass: Feb 17: Russian President Dmitry Medvedev to meet with Abkhazia’s President Sergei Bagapsh in Moscow
Georgia Times: Sepratist leader to sign agreement in Moscow
The leader of the Abkhazian puppet regime, Sergey Baghapsh arrives in Moscow today to sign a bilateral agreement with the Russian president Dmitry Medvedev regarding resumption of flights between Russia and the occupied region.
In addition, Baghapsh will also sign an agreement on a Russian military base in Abkhazia during the visit.
This is the first visit after the so-called inauguration of the puppet leader. Bagapsh was sworn in for a second term on February 12, 2010 after his victory in last December`s elections.
Along with Medvedev, Baghapsh will meet with the prime minister and the patriarch of Russia during the visit to Moscow.
Rustavi2 2010.02.16 12:40
RBC: Russian, Greek PMs to discuss oil and gas projects
RBC, 16.02.2010, Moscow 10:50:31.During today's meeting in Moscow, Russian Prime Minister Vladimir Putin and his Greek counterpart Yeoryios Papandreou are expected to pay close attention to the implementation of large-scale joint projects in the construction of the South Stream gas pipeline and Burgas- Alexandroupolis oil pipeline. The projects' realization, based on the mutual interests of countries supplying energy resources, transit countries and end consumers, will not only ensure energy security in Europe, but also strengthen cooperation and understanding between Russia and the European Union.
Putin and Papandreou, who is in Moscow for a working visit, are also scheduled to discuss a wide range of pressing international matters, including Russia-EU and Russia-NATO relations, the settlement of the Cyprus matter, and the future cooperation of the Black Sea Economic Cooperation (BSEC) members.
The talks are also expected to reinstate the high level of bilateral relations between Russia and Greece and spur further collaboration in various sectors of economy.
Reuters: Greece to raise Russian pipeline supply issue
Tue Feb 16, 2010 8:38am GMT
MOSCOW, Feb 16 (Reuters) - Greece will ask Russia if it still has enough oil to fill a long-delayed pipeline to the port of Alexandroupolis, a senior Greek energy official told Reuters before talks in Moscow.
"The key question is whether there is oil," Greek Deputy Energy Minister Yannis Maniatis told Reuters in an interview late on Monday.
Prime Minister George Papandreou was due to meet Russian President Dmitry Medvedev and Prime Minister Vladimir Putin on Tuesday.
Maniatis said Greece would like Russia to stick to the South Stream gas project rather than boosting gas transit via Ukraine.
"South Stream will ensure bigger energy security in Europe," he said, adding that the government wanted to extend Russian gas import contracts by 10 years or more beyond their expiry date in 2016 and possibly buy larger volumes. (Reporting by Dmitry Zhdannikov and Conor Sweeney; editing by Guy Faulconbridge)
Itar-Tass: Medvedev to meet Papandreou to discuss econ issues
16.02.2010, 01.22
MOSCOW, February 16 (Itar-Tass) - Russian President Dmitry Medvedev is planning to meet with Georgios Papandreou, Prime Minister and Minister of Foreign Affairs of the Hellenic Republic, here on Tuesday.
A Kremlin high official has told Itar-Tass that the upcoming talks will deal with the development of political dialogue and trade-and-economic cooperation between the two countries.
The official said, "Special attention will be devoted to matters concerning trade-and-economic cooperation". He believes that "Notwithstanding the trade turnover marked decrease caused by the global financial downturn (in 2009, this indicator, according to preliminary data, was $2,400 million), there are good prospects for an intensification of mutually beneficial partnership between Russia ad Greece". Russia and Greece currently participate in the construction of the South Stream gas pipeline and the trans-Balkan oil pipeline Burgas-Alexandroupolis.
To Greece, which experiences an unprecedented financial downturn, the economy at the present moment is problem number one. State deficit in that country towards the end of 2009 accounted for almost 13 percent, which was three times as much as had been planned.
Early this month Papandreou announced the introduction of austerity measures. The European Union (EU) and other countries are worried lest Greece problems should have a negative effect on the entire Euro Area, right up to collapse of that currency.
Nevertheless the Greek Premier, while in Russia, is to discuss not only economic subjects. A Russian presidential administration official also said, "Medvedev and Papandreou will discuss the state of cultural and humanitarian contacts". "Progressive dynamism has been traditionally characteristic of this area (of cooperation): an active dialogue is being maintained through civil societies, and inter-church contacts develop," the Kremlin official explained.
It is also planned to touch upon the set of international problems, including the course of discussion on the Russian initiative aimed at working out a European Security Treaty, Russia-EU and Russia-NATO relations, and subjects concerning a settlement of a number of regional conflicts.
Papandreou arrives in Moscow at the invitation of Prime Minister Vladimir Putin. "This will be Papandeou's first trip to Russia as the Greek head of the government, formed after aw in at the early parliamentary elections in October 2009 by the Panhellenic Socialist Movement party," the Kremlin official recalled.
The official said, "At the forthcoming meeting the sides are to consider topical aspects of the development of the political dialogue, based on the Joint declaration, dated December 9, 2004, on a further deepening of the relations of friendship and all-round interaction between the Russian Federation and the Hellenic Republic, and the Joint Action Plan for 2010-2012".
Russia Today: Greek PM visit to focus on gas
16 February, 2010, 10:31
Greek Prime MinisterGeorgios Papandreou is in Moscow for a two-day visit, and expected to meet Russian president Dmitry Medvedev, and Prime Minister Vladimir Putin on Tuesday.
While Greece's debts and parlous budgetary position is topping the headlines – the key item on the agenda for the Moscow talks is expected to be natural gas.
Greece is a key part of the Bourgas-Alexandropoulis pipeline which will carry the fuel from the Black to the Aegean Sea. The Greek PM told journalists in Moscow he expects the construction to begin within six months.
Greece is also involved in the Gazprom-led South Stream pipeline, and the imports almost all of its natural gas from Russia.
But the financial crisis dealt a heavy blow to bileteral trade between Russia and Greece – it fell 80 % last year, after reaching $7 billion in 2008.
Analysts say Russia is not expected to take part in the EU-organised bailout of the Greek government. But Sergey Khestanov, Executive Director at Finam Management says the Greek debt crisis could have a silver lining for European trade in making European exports more competitive, which could help the economic turnaround of Russia’s largest trade partner.
“The competitiveness of European industry rises as the Euro exchange rate declines. This is quite positive for manufacturers. Germany is first among them, as the world's second larger exporter. This process will balance itself – on one side, Greek troubles are hurting the euro; on the other the exchange rate helps European countries.”
The Moscow Times: Russia, CIS Largest Buyers of Greek Property Last Year
16 February 2010
Vedomosti
Buyers from Russia and the Commonwealth of Independent States were the most active foreign property buyers in Greece last year, according to a joint report released by international agency Gordon Rock and Sea-Homes Real Estate & Construction.
According to their research, 80 percent of foreign property buyers in Greece were from the CIS, with most coming from Russia, Ukraine, Kazakhstan and Armenia. The buyers were most interested in property on the island of Crete, the report said.
Before the financial crisis — in 2006 and 2007 — more than 40 percent of potential buyers from the region were interested in property on Crete, a figure that fell to 35 percent in 2009. A considerable amount of demand, 21 percent of potential buyers, shifted to the Chalkidiki Peninsula, which is attractive for its good prices and quality, the report said.
Of the buyers from Russia and the CIS, 60 percent were interested in economy-class properties (costing up to 150,000 euros, or $204,000). Thirty percent were seeking business-class real estate (150,000 euros to 350,000 euros), while the remaining 10 percent wanted elite properties costing more than 350,000 euros, the report said.
The report also noted that the mortgage market had improved for Russian citizens. Banks began offering them up to 70 percent of the purchase price under 10-year mortgages at 8 percent interest, provided that they offered property in Russia as collateral.
GEO TV: Russian FM talks about Iran fuel swap in Guatemala
Updated at: 0950 PST, Tuesday, February 16, 2010
GUATEMALA CITY: Russian Foreign Minister Sergei Lavrov says only nuclear fuel swap proposition sent to Iran was the one put forward by the International Atomic Agency (IAEA) last October.
"Last October the International Atomic Agency (IAEA) proposed a nuclear fuel swap for Iran, that is how is Russia and France made the agreement under guarantees of the International Atomic Agency on behalf of Russia and the United States," said Lavrov while on an official visit to Guatemala.
Russia also said the countries had simply confirmed their support for a proposal brokered by the International Atomic Energy Agency (IAEA) to send much of Iran's low enriched uranium abroad, a local news agency said.
Washington and its allies fear Iran wants to acquire nuclear weapons, and are lobbying for new United Nations sanctions, but Tehran says its aims are purely peaceful.
Iran originally accepted a plan to send 75 percent of its low-enriched uranium (LEU) to Russia and France, where it would be converted into special fuel for a Tehran reactor that makes isotopes for treatment of cancer patients. For big powers, the key point of the plan was to reduce Iran's LEU reserve below the quantity needed for a nuclear bomb, if enriched to a high level.
But Iran later said it wanted fresh fuel for the reactor before it would agree to ship any enriched uranium stocks to Russia and France, and then only in small, gradual amounts.
President Mahmoud Ahmadinejad said last week that Iran was now able to enrich uranium to more than 80 percent purity, close to levels experts say would be needed for a nuclear bomb, although he denied it had any such intention.
After signing bilateral accords, Lavrov met with Guatemalan President Alvaro Colom.
Lavrov visited Cuba last week and said newly warmed relations between Cold War allies Russia and Cuba had become a "truly strategic association after he launched a visit to the island his country kept afloat for 30 years.
Russia has said renewing ties with Cuba is part of an effort to strengthen its economic and political interests in Latin America. Lavrov also visited Nicaragua at the weekend and will visit Mexico on Tuesday.
Itar-Tass: Lavrov to visit Mexico on final leg of CentAm tour Tue
16.02.2010, 05.58
GUATEMALA CITY, February 16 (Itar-Tass) - Russian Minister of Foreign Affairs Sergei Lavrov is about to complete his tour of Central American countries. On Tuesday he travels from Guatemala to Mexico for an official visit to meet with the country's leadership and discuss prospects for broader and stronger bilateral interaction, and to attend the opening of a Russian Language Center at the National Polytechnical Institute.
The programme for the visit provides for the Minister's meetings with Mexican President Felipe de Jesus Calderon Hinojosa, as well as talks with his Mexican counterpart Patricia Espinoza Castellano on a wide range of topical problems of world politics and bilateral agenda.
It is noteworthy that the Russian Foreign Minister visits Mexico in the year of the 120th anniversary of the establishment of Russo-Mexican relations.
Russian Foreign Ministry spokesman Andrei Nesterenko pointed out that the visit is intended "to promote a further strengthening of the political dialogue between our two countries, and practical headway in mutually beneficial cooperation in various fields."
"People in Russia regard Mexico as a state that is traditionally friendly to us, and as earnest and trusted partner in the international arena. Our relations are one of the main orientations of Russia's foreign policy in Latin America region," Nesterenko emphasized.
"Russia and Mexico are brought together by striving to exercise democratic principles in practice in efforts to settle international problems of current concern, and strictly observe international law, primarily the United Nations Charter, and strengthen the central role of the UN and the UN Security Council as the universal instrument for the maintenance of peace and settlement of conflict situations," the diplomat pointed out.
"Both countries agree that a serious threat to universal security is posed by such phenomena as international terrorism, separatism, and religious extremism. Moscow and Mexico City are interested in establishing an effective interaction in the interests of counteracting new threats and challenges of our times, first of all the trafficking of narcotics, and transnational organized crime," Nesterenko said.
"Our two countries devote appreciable attention to the problems of overcoming the global financial and economic downturn and with this end in view actively interact in a multilateral format in the interest of reforming international financial institutions, and raising the efficiency of regulation and transparency of the financial sector," the Russian Foreign Ministry spokesman added.
"Our cultural and humanitarian contacts are notable for traditional dynamism," Nesterenko went on to say. "Days of Russia in Mexico and Days of Mexico in Russia (festivals) are held on a regular basis, and a wide experience has been gained in exchanges of cultural treasures. Many Russian scientists work in Mexico on a contractual basis; joint research projects are being implemented, and Mexican specialists are trained in Russian institutions of higher learning"
Special attention at Lavrov's upcoming talks will be devoted to the stimulation of bilateral trade-and-economic contacts. Priority tasks at the present stage are to increase and diversify goods turnover, look for new progressive forms of mutually beneficial cooperation, specifically in the fields of energy, oil and gas sector, and in the removal of artificial barriers that hinder trade.
On Tuesday, Lavrov is to attend a ceremony marking the opening of a Russian Language Center at Mexico's National Polytechnical Institute, and meet with compatriots and alumni of Russian higher learning establishments.
As a result of the visit, the Foreign Ministers of the two countries are to sign a joint statement.
Prague Monitor: Press: Klaus, Zeman might be lobbying for Lukoil
ČTK |
16 February 2010
Prague, Feb 15 (CTK) - Czech President Vaclav Klaus and former prime minister Milos Zeman may be influential lobbyists of the Russian Lukoil oil company, Jaroslav Spurny and Ondrej Kundra write in the latest issue of the weekly Respekt out yesterday.
The main sponsor of Zeman's new Party of Citizens' Rights (SPO) is Martin Nejedly, the representative of Lukoil in the Czech Republic. Moreover, Zeman's traditional cooperator and lobbyist Miroslav Slouf openly says he promotes Lukoil's interests in the Czech Republic, Respekt notes.
Soon after information on SPO's Russian sponsors appeared in the media, Klaus officially met Zeman at Prague Castle, the weekly recalls.
It is known that the Russian editions of Klaus's books are financed by Lukoil and that Klaus secretly met Lukoil head Vagit Alekperov twice in the past 18 months. One of the Klaus-Alekperov meetings was held in November 2008 when Lukoil announced its expansion to the Czech Republic, Respekt points out.
When the daily Hospodarske noviny recently asked the question whether a new political power secretly representing the economic and power interests of the Kremlin is being formed in connection to the Klaus-Zeman talks, Klaus reacted angrily but did not disperse the doubts, Respekt writes.
Zeman has been a regular participant in conferences organised by the World Public Forum (WPF) since 2005.
Former Czech intelligence head Karel Randak says it is probable that the WPF - led by Vladimir Yakunin, head of Russian railways and a close friend of Vladimir Putin - is one of the companies that Russian secret services use for establishing contacts with foreign politicians and promoting their interests in Europe.
Apart from Zeman, former Czechoslovak high military officer Zdenek Zbytek regularly attends WPF's conferences. Zbytek is one the Czech businessmen making the biggest trade with Russia. He founded the Club Russia group and his companies had a seat in the buildings of the Russian Embassy for a long time.
Club Russia is in fact the main lobbyist of Russian investment in the Czech Republic and Czech investment in Russia, Respekt writes.
Last year, the information that Zeman often visits the Russian Embassy leaked from the Czech BIS counter-intelligence service.
In the past four years BIS annual reports said that Russian secret services were increasingly interested in contacting Czech politicians and that they got secret information from the Czech Republic that were available to politicians, Respekt writes.
SPO spokesman said the party is not sponsored by Russia because Nejedly donated his own money to it, same as Slouf and Zbytek. But the business activities of all three men are almost completely dependent on trading with Russia, the weekly writes.
Like Zeman, Klaus may seem as a clear pro-Russian lobbyist, too.
Klaus repeatedly claims that the European Union threatens the sovereignty of the Czech Republic yet he has never mentioned Russian expansive politics or commented on Russian official statements that Central Europe is an area of Moscow's strategic interest, the weekly writes.
In the 1990s Klaus supported the oil and gas deliveries from Russia. He advocated the Russian intervention in Georgia and criticised the allied military operations in Kosovo. He also had contacts with Moscow Mayor Yuri Luzhkov whom Czech police suspected of ties to Russian organised crime and whose wife invested enormous sums of money in the West Bohemian spa town of Karlovy Vary.
Ivan Langer, Klaus's former colleague from the Civic Democratic Party (ODS), says Klaus is grateful to people who supported him and helped him in his career. "It is just a coincidence that these people have links to Russia or that they are even Russian politicians like Luzhkov," Langer told Respekt.
When Klaus was forced to resign as prime minister over ODS party financing in 1997 he allegedly found out who really supported him and feels their debtor. Among those who met him when a part of the ODS attacked him was the party's sponsor Vaclav Jachim representing the huge Interconex company that was then suspected of links to Russian mafia and former Russian and Czech secret police.
Czech experts mostly take a reserved stance on the SPO, however, which is to help Zeman return to politics after several years in retirement.
"The party may not be a big security risk since it does not hide its contacts. On the other hand, it is a problem when there is a party in parliament that advocates the interests of a non-transparent partner," said Jiri Schneider, from the Prague Security Studies think tank.
"When politicians set clear rules for the sale of strategic companies, a few MPs supporting the interests of a private firm cannot change this," Petr Kratochvil, from the Prague Institute for International Relations, said.
But reality is different in the Czech Republic, Respekt writes.
The former coalition government of Mirek Topolanek (January 2007- May 2009) clearly declared that it does not want to let Russian companies to own Czech strategic companies but then it gave Lukoil a licence for the deliveries of 20 percent of jet fuel for the Prague international airport without a tender.
At present, Lukoil controls over one-third of the orders for the Prague airport and more than of the deliveries for the CSA national air carrier, Respekt writes.
TOP 09 leader Karel Schwarzenberg considers it a serious problem if the SPO entered parliament.
"This would directly threaten the country's security, especially as we know that Russia's main interest is the strengthening of our dependency on it," Schwarzenberg said.
24.kg: Russia to allocate $30M to poor countries
16/02-2010 08:56, Bishkek – News Agency “24.kg”, By Daniyar KARIMOV
Russia is currently considering the possibility of allocating up to $30 million to poor countries, including Kyrgyzstan, for strengthening of financial management potential, RIA Novosti reported.
Reportedly, Moscow will conduct government presidium session on Tuesday. Cabinet of ministers will consider over 10 questions including the initiative being launched by the World Bank on strengthening of financial management in Eastern Europe and Central Asia (countries with low income level - Kyrgyzstan, Tajikistan, Moldova and Armenia).
The order is entrusted to the Russia Ministry of Finance to carry out payments of financial contribution at the expense of the Federal budget up to $30 million, the official source pointed out.
Saba News: Two Russian planes laden with foodstuffs for IDPs arrive this week
[15/February/2010]
SANA'A- MOSCOW, Feb. 15 (Saba)- The first Russian plane carrying foodstuffs and aid presented by the Russian government will arrive on Tuesday to help relieve the displaced people due to Saada and Harf Sufian's rebellion.
Director of the Executive Unit of Displaced People Camps Management Hashim al-Hamly told Saba that the other plane will arrive on Friday, making clear that the two planes will unload foodstuffs for children, tents, sugar and mobile electricity generators and highly valued these humanitarian assistances.
On the other hand, Yemen ambassador to Moscow Mohammed al-Hilaly expressed appreciation for the Russian government for this aid, considering this incident an embodiment of the strong relations of Yemen and Russia.
He praised the Russian supportive stances for Yemen's independence, unity, stability and its rights to protect its sovereignty.
AM/AM
VTB: Vladimir Putin to head Commission on High Technology and Innovation
VTB Capital, Russia
February 16, 2010
- Prime Minister enters President Dmitry Medvedev's 'modernisation' domain - this area of state activity to see increasing activity in the future
News: Vedomosti reports that Prime Minister Vladimir Putin will personally head the Commission on High Technology and Innovation which had been headed by Sergei Ivanov since its creation in 2008. Putin is likely to be officially appointed on 4-5 March.
Our View: Until now, aspects of modernising Russia (including innovations) were considered the sole domain of President Dmitry Medvedev. The fact that Putin will be actively involved suggests that the priority assigned to this national project has now been changed to the highest level.
We believe this could be a positive development. Putin's authority will in our view help the strategic management of the innovation process and control over it, especially given the scope of the programme (according to Medvedev, the initial budgets of just the state-owned companies for the innovation programmes is close to RUB 620bn). This would likely help to promote high growth rates.
Russia Today: Russia to get western quality roads
16 February, 2010, 10:58
First Deputy Prime Minister Sergey Ivanov has told RT that Russia will get - quote “Western quality” roads starting this year, but drivers will have to PAY to use them.
Ivanov claimed no government in the world is spending as much to modernize its economy, and denied that money is being wasted.
“One of Russia’s weaknesses is the quality of its roads. Starting with the new Moscow to St. Petersburg motorway this year, a new technology to bind cement will create roads no worse than in Europe or the US. But this will be toll roads only, because the government doesn’t have the money to pay for tens of thousands of kilometres in new construction.
It currently takes longer to drive from the capital to Sheremetyevo Airport than fly to Lisbon. The new Moscow to St. Petersburg route will unblock the Moscow ring road and fully solve the Sheremetyevo transport crisis.
$10 billion is being spent through the Russian Nanotech Corporation on specific science projects that will come to market. That’s more than any other country in the world.
I don’t agree our spending in the crisis has been ineffective. We’re subsidising loans for all kinds of industry. If our banking system had collapsed, there wouldn’t be anything to subsidise.”
15 February 20:13
.ru: Prime Minister Vladimir Putin meets with Kazakhstani President Nursultan Nazarbayev
They discussed the integration of the post-Soviet area—in particular, the recently established Customs Union; Russian-Kazakhstani economic contacts, which were “making decent progress despite all crises,” as Mr Putin said; and the outcome of the Ukrainian presidential poll.
Transcript of the beginning of the talk:
Vladimir Putin: Mr Nazarbayev, allow me greet you in Moscow once again. As far as I know, you have a long and informative talk with President Dmitry Medvedev yesterday.
We have many themes to discuss. The Customs Union has been set up with your tremendous contribution. It has been working since January 1, and the Customs Committee has overtaken a part of national duties. It is, in fact, the first-ever supranational agency in the post-Soviet area.
Though its duties are rather limited, they concern a sensitive sphere. Our experts are working actively to make the Customs Union implement its entire potential since July 1. We have started the creation of a united economic environment.
All these are landmarks in our cooperation, and I congratulate all partners on it. I use the present occasion to thank you for many years' efforts. I remember how staunchly you were promoting these ideas and initiating relevant processes. Now, you have brought them to final success. It is a major event in the post-Soviet area.
Kazakhstan is chairing the OSCE this year. I wish it every success. We had many questions to ask about OSCE practice these last years.
A post-Soviet country has never before chaired this international organisation. We all count on Kazakhstan to help it gain a universal scope that befits it, and delve into the matters it has been intended for. The OSCE will be a good rostrum for discussing problems of security, which is its main theme, and also of promoting and strengthening democracy in the post-Soviet area and Europe-wide.
In this connection, I think, we should congratulate Viktor Yanukovych on his victory in the Ukrainian presidential poll, which the Central Election Commission has officially announced today.
Nursultan Nazarbayev: We should call him together.
Vladimir Putin: Yes, let us congratulate him. I remember the quasi-revolution of 2005 in Ukraine. Its leaders made use of popular discontent and eagerness for a change. Their hopes and expectations were frustrated. Even at that time, when a third round was appointed though neither the Constitution nor other legislation envisaged it, one clearly saw that it would not bring any good results because there is no way to strengthen democracy without compliance with the law.
The events of the preceding months were no surprise to me when the leaders of the Orange movement gave a slap in the face of its own political sponsors by conferring the title of Hero of Ukraine on Stepan Bandera, who not merely collaborated with the Nazis but instigated atrocious massacres of Jews and Poles.
We hope hard times are over for the Ukrainian nation, which we all regard as fraternal, and we will be able to establish normal interstate relations, draw economic plans, strengthen socially-oriented partnership, and suggest joint work in the integration fields in which Ukraine was involved, though not so actively as it promised when you and we agreed on initial steps toward the Customs Union in this very place.
Nursultan Nazarbayev: Yes, that's what I have just wanted to remind you.
Vladimir Putin: There is another event, the anniversary of the Soviet pullout from Afghanistan. People from all former Soviet republics fought and died there. People from Kazakhstan were certainly wounded or killed there, too.
Nursultan Nazarbayev: Yes, very many. We have many monuments to fallen soldiers.
Vladimir Putin: As for economic matters, I had a telephone conversation with your prime minister. He called two days ago. We discussed our economic partnership. Our economic contacts are making decent progress despite all crises. We will have an opportunity to discuss them today, among other topics.
Nursultan Nazarbayev: Mr Putin, thank you for sparing the time for this meeting. We often have telephone talks but have not met in person for quite a long time, and we have much to discuss.
I, too, wanted to start from what you have just said. The four of us gathered here at Novo-Ogaryovo on your initiative. But then, the united economic environment has always been my own brainchild. I came on the eve of Defender of the Fatherland Day in 2004 to suggest close integration between Russia and Kazakhstan. You said then: "Let us talk it over. We will invite Mr Kuchma and Mr Lukashenka, and discuss it, the four of us." We talked here about the united economic environment, and even signed a memo and issued instructions. However, certain developments reversed our progress later.
Now, I want to stress that you have not merely supported me as the initiator. I know that, in your heart of hearts, you approve these initiatives to re-integrate the post-Soviet area, and that the countries that want integration are integrating.
Every time I revisit Novo-Ogaryovo I recollect the arguments of 1991 on the drawing and signing of the Union Treaty, which later proved abortive.
I think we will certainly talk about the Customs Union. All relevant agreements have been made, and the Customs Code approved. It will enter into force on July 1.
A EurAsEC meeting has been appointed for the day before to evaluate our readiness. I talked it over with President Dmitry Medvedev yesterday. As I see it, our achievements and the bidding to work on for the united economic environment in 2011-2012 is what we have been striving for together, and what I have always insisted on.
There is no alternative to integration, as the global economic crisis has shown. We are neighbours, and one cannot choose neighbours. God granted our forefathers to live here together, and our scions will live here after us. It is the leaders' duty to pass on to future generations the sense of friendly unity, and traditional cultural and emotional closeness. Our nations will benefit from this friendship. I am convinced of that.
We can really send our best regards to Viktor Yanukovych in the presence of the press today. He had our support at the time you mentioned, too. We can say that we look forward to more frequent meetings, and we hope for more profound understanding because Ukraine is Ukraine, and we are aware of its role in the post-Soviet area, Europe and the world.
Ukraine deserves to become a country whose population will be glad to live there. As for the economic crisis, it is a challenge we all share: there is trade to develop, and transport corridors to build. We are establishing a huge number of joint ventures. Russian companies have invested about four billion in Kazakhstan.
There are some problems concerning the joint use of the Baikonur space centre. It can certainly perform when shared by Russia and Kazakhstan. There are other aspects of bilateral partnership-nuclear industries and technologies. They imply ambitious, long-term efforts. As I am meeting with you and the Russian president at the beginning of this year, I think we are synchronising our watches as we always do. We are neighbours, and our close and confidential partnership is going on. We will also meet this year on the 65th anniversary of the victory in World War Two. We have received your invitation already.
You and I have established a tradition of annual regional meetings whose venues are set in Russia and Kazakhstan alternately. We will have such a meeting this year, too. Such meetings are reliable tools of unity.
As you know, entangled economic processes are also on in the other member countries of the Collective Security Treaty Organisation. We can discuss all those problems together. Thank you for the time you have spared me. I wish you health, and every success to the Russian nation.
Vladimir Putin: Thank you.
Barentsnova: Driving into Russia gets easier
2010-02-16
February 25, there come new rules for entering Russia on a personal car.
New regulation of the Russian Gvt introduces simplified rules for foreigners driving into Russia on a personal vehicle. The rules concern customs clearance of the goods transported into Russia for personal use, inform federal customs authorities on their web-site .
In particular, starting Feb 25 a foreigner will have to fill in the passenger customs declaration only; vehicle import certificate becomes cancelled. Besides, Russian customs will not have to register foreign vehicles temporarily present in the Russian Federation.
Presently, the procedure for foreign vehicles is performed in two documentation steps. Step 1: filling in two copies of passenger customs declaration; step 2: registering the car in the vehicle import certificate.
Anyway, the new rules do not cancel the tax-free period for using a foreign car in Russia. As earlier, it is allowed to bring in your car for up to one year without paying customs duties and taxes.
Noteworthy, that travelers from Byelorussia (since July 1, 2010) and Kazakhstan (since July 1, 2011) will not have to fill in any vehicle-related documents due to the Customs Union between the countries.
The Moscow Times: Justice Minister Decries Corruption, Pushes Reforms
16 February 2010
By Alexander Bratersky
Justice Minister Alexander Konovalov said Monday that the country's prison system is rife with corruption and that prison workers are supplementing meager salaries by extracting bribes from the incarcerated.
Corruption in the Federal Prison Service is in "full bloom," with poorly paid prison personnel taking bribes in exchange for early paroles, meetings with friends and relatives and arranging transfers to different facilities, Konovalov told a news conference.
“The work that [prison authorities] are doing is not the most pleasant, and many of them deserve to have monuments erected to them during the life time," Konovalov said. "But there is no black or white, because many of those people are also involved in corruption."
Konovalov, a protege of President Dmitry Medvedev, has publicly spoken of the need to weed out corruption and abuses in the country's justice system. He has backed legislation allowing for house arrest rather than jail for suspected petty offenders, as well as the abolition of pretrial detention for white-collar crimes.
The prison service, which falls under the auspices of the Justice Ministry, has faced increasing criticism since the November death of lawyer Sergei Magnitsky in pretrial detention at a Moscow jail.
Konovalov on Monday addressed the case of Magnitsky, who worked as outside counsel for the investment fund Hermitage Capital, which has had numerous conflicts with law enforcement authorities in recent years.
Hermitage claims that Magnitsky was jailed as retribution for uncovering massive theft of state funds by powerful law enforcement officials. His friends and family say prison authorities and investigators ignored his deteriorating health and denied him proper medical care, resulting in his death of heart failure at age 37.
“The state is taking certain steps to ensure that the situation with Magnitsky will never be repeated,” Konovalov said.
Addressing the government minister later Monday, Konovalov called the prison system's legal basis "seriously outdated."
Konovalov told reporters that a drive for reforms in the justice system is linked to Russia's recent ratification of Protocol 14 of the European Convention on Human Rights, which would allow the European Court of Human Rights in Strasbourg to consider a backlog of complaints, many from Russia.
Many Russians see the Strasbourg court as their last hope to find justice after losing battles in domestic courts. The Strasbourg court has criticized Russia for delaying payments of compensation to victims, which Russia is required to do as a signatory to the convention on human rights.
Konovalov said a law regulating these payouts will be sent to the State Duma for consideration next month, promising that money awarded in domestic courts will be "a bit smaller" than in the European court but higher than current payouts.
“The standards of Russian justice should come close to the standards of European [justice],” Konovalov said.
The Justice Ministry has also drafted a bill on compensation for the victims of counterterrorist operations, though Konovalov said he expects resistance from the Finance Ministry over the size of the awarded sums.
Interfax: New bill drafted to put curbs on missionary activities with minors
Moscow, February 16, Interfax - A bill has been drafted to put curbs on missionary work conducted by religious groups with minors in Russia, the Justice Ministry has announced.
"A bill amending the Law on the Freedom of Conscience and Religious Organizations and the Code of Administrative Offenses has been developed and will be submitted to the government," the ministry said in a press release.
The bill aims to give a legal definition of the term 'missionary activities' and to put curbs on religious organizations' missionary work with regards to minors.
In addition to this, the bill limits missionary activities which involves offers of material, social and other benefits for the sake of drawing citizens to religious organizations.
BarentsObserver: Murmansk ecologists support Baikal protests
2010-02-16
A wave of protests all round Russia calls for the government to reverse the plans to reopen the Baikalsk Paper and Pulp Mills.
Large rallies were held in many Russian cities on Saturday, including Murmansk. The demonstrators gathered signatures for a petition asking President Dmitri Medvedev to cancel Prime Minister Vladimir Putin’s decree allowing the plant to restart and by that pollute the lake Baikal.
Another slogan was calling for the resignation of Vladimir Putin. During the demonstration in Murmansk the ecologists collected 300 signatures protesting the reopening of the Baikal plant.
The pollution of the Lake Baikal has been one of the main environmental battles in Russia since the 1960ties.
In January, the police raided the offices of the environmental group Baikal Wave, a move that the environmentalists said was likely prompted by their protests against the reopening of the pulp and paper mill.
Last week, BarentsObserver reported that Russian environmental groups face an increased pressure from different authorities.
RIA: Over 50,000 people left without water in Russia's Urals
10:5516/02/2010
Over 50,000 people in Russia's Perm Region are without water for a second day on Tuesday after a tributary of the Volga was contaminated with an unidentified substance.
On Monday morning a filtration plant in the city of Krasnokamsk reported that water in the river Kama, which supplies the city, smelled of paint.
Water supplies to the city were subsequently cut off and 1,300 houses, 26 kindergartens, 15 schools and 4 medical centres were affected. Local authorities supplied water tanks to residents.
The regional head told journalists on Tuesday that the water supplies would be restored by this evening. However, authorities warned residents that the water could not be used for drinking or cooking due to the high concentration of harmful substances in it.
The cause and exact location of the contamination have yet to be identified.
PERM, February 16 (RIA Novosti)
BarentsObserver: Northern fleet vessel continues pirate hunt
2010-02-15
The destroyer Admiral Chabanenko will carry on with the patrol in the waters around the Horn of Africa until further notice.
Admiral Chabanenko is normally based in the Russian Northern fleet’s main port in Severomorsk on the Kola Peninsula. The destroyer joined Russia’s anti-piracy mission off the Horn of Africa in November last year.
Read also: Northern fleet vessels fight pirates
A Navy official says to Interfax that Admiral Chabanenko now will extend its presence hunting for pirates. In addition to the Northern fleet destroyer, Russia has three other naval vessels engaged in its anti-piracy mission.
It is not state how long Admiral Chabanenko will stay in the African waters.
RIA: Russian police to buy French armored vehicles - business daily
10:1416/02/2010
Russia's police force is holding talks with France's Panhard General Defense on the purchase of VBL light armored vehicles, a Russian business daily reported Tuesday.
Kommersant reported that Russia's Interior Ministry was following the example of the Defense Ministry, which is considering whether to buy a $600-750 million Mistral-class amphibious assault ship from France. Buying arms and military equipment abroad is unusual for Russia, traditionally proud of its own weapons and military equipment.
While experts say Russia already has domestically-made armored vehicles of the same class, Panhard chief executive Christian Mons said the Russian police are interested in the VBL vehicles' enhanced characteristics, including its maneuverability.
VBL vehicles cost on average 250,000 euros ($340,000). They are considered outdated by France's armed forces and police and are being replaced with PVP vehicles, Kommersant reported.
MOSCOW, February 16 (RIA Novosti)
PIB: Enhanced economic engagement between India and Russia to Boost Bilateral Cooperation: Anand Sharma
Tuesday, February 16, 2010
|Shri Anand Sharma, Union Minister of Commerce and Industry, during his meeting with Mr. Sergei Sobyanin, Deputy Prime |
|Minister and Mr. Victor Khrihtenko, Minister of Industry & Trade, Russia here today, referred to the strategic |
|relationship that exists between the two countries and expressed confidence that the bilateral cooperation in trade and |
|other areas will continue to register healthy growth. The Russian side evinced keen interest in seeking cooperation from |
|the Indian pharma companies. Shri Sharma informed that Indian companies have strength in the pharma sector especially in |
|the generic area. “Our pharma sector companies are already engaged with Russia and more and more companies are looking |
|forward to having joint ventures with their Russian counterparts”, Shri Sharma said. He further referred to the ongoing |
|cooperation in space, metallurgy and fertilizers and hoped that the enhanced economic engagements in these areas would |
|further boost bilateral cooperation among the two countries. The meeting was attended by Shri Rahul Khullar, Commerce |
|Secretary; Shri R.P. Singh, Secretary, Department of Industrial Policy & Promotion and senior officials from both the |
|countries. |
| |
|The bilateral trade between India and Russia during 2009-2010 (Apr-Dec) was of the order of US $ 2188.12 million. The |
|major items of export by India are drugs, pharmaceuticals & fine chemicals, tea, transport equipments, machinery and |
|instruments, coffee, cotton yarn fabrics, made-ups, manufactures of metals etc. The major items of import by India are |
|petroleum, crude and products, fertilizers (manufactured), iron & steel, non-ferrous metals, silver, transport |
|equipments, coal, coke, briquettes, synthetic & reclaimed rubber newsprint etc. |
| |
|The cumulative Foreign Direct Investment (FDI) inflows from Russia during 1991-92 (August-March) to 2009-10 |
|(April-December) was US $ 455.61 million. The major sectors which attracted FDI inflows from Russia include: |
|telecommunications, services sector, automobile industry, food processing, hotel & tourism etc. |
Russia Today: Russia faces tough competition at India’s DefExpo 2010
16 February, 2010, 11:02
The world’s top arms producers have descended on New Delhi with their eyes on lucrative contracts up for grabs at India’s main arms fair.
India has been spending big on weaponry imports in recent years and with more than 600 companies present, India's number one supplier, Russia, is facing tough international competition. Russia has had arms contracts with India worth around $1.5 billion each year, but ties between the countries’ arms industries do not stop there as Moscow strives to stay on top.
Ever since Nikita Khrushchev advised India to “shout across the Himalayas if you ever need us,” military cooperation between India and Russia has rarely lost momentum. In the 21st century, this relationship has manifested in the joint development of new weaponry, with both countries expected to sign a contract within a month to manufacture a fifth-generation jet fighter.
An economic slowdown and recession may have hit the globe, but there are no signs of it visible at DefExpo 2010. Held every two years in New Delhi, all the top global weapons manufacturers attend the event, because the $11 billion that India spends every year on foreign military supplies is up for grabs.
The Minister of State for Defense of India believes that the atmosphere in India is now more and more conducive to attracting foreign investment in defense research and development. “We’re looking for partnerships and co-development arrangements and formation of joint venture in critical technical areas,” said Dr. Pallam Raju, and concluded that the “defense expo, which is a one-stop shop, is an ideal platform for doing business in defense.”
Leading the pack is Russia, India's top defense supplier with deals estimated at $1.5 billion annually. In recent years, it has faced tough competition from the US and Israel. However, Moscow is increasingly moving towards closer cooperation with India on new weapons systems.
”India is the number one partner for the Russian defense industry, since it is not only the volume that is exported, it is also the quality of the equipment and scientific technical potential that we put in India’s industrial military complex within this cooperation,” shared Victor Komardin, Deputy Director General of Russia’s Rosoboronexport arms corporation.
One of the biggest success stories is the Brahmos, the only supersonic cruise missile in the world. Both countries are equal partners in this project, contributing their own areas of expertise.
”We are very strong in guidance technology and software,” states Dr. Sivathanu Pillai, CEO of Brahmos Aerospace, “whereas Russia is very strong in propulsion and cruise missile technology. So having technology available in both, and respecting each other in trust, we formed a joint venture.”
The world is at India’s doorstep, keen to sell its weaponry, but for the Indian military it seems the preferred weapons of choice are Russian, and the wide range of equipment and armaments that they are collaborating on underlines the special relationship that India and Russia share.
Sindh Today: India turning to Russia for small arms post-26/11 attacks
February 16th, 2010
By Sandhya Sharma
New Delhi, Feb.16 (ANI): Russia, a longstanding defense partner of India, is reportedly in talks with New Delhi for small arms manufacture.
India is looking toward Russia for small weapons like the sniper rifle, submachine gun and grenade launchers.
Leonid Nikolay Skofenko, the head of KBP Instrument Design Bureau in India, told ANI that ‘Automatic grenade launcher system ‘AGS 30’ was enquired by the NSG under direct sales.
He added that “NSG had already used this automatic grenade launcher in the past during the Mumbai terror attacks, but at that time, they had taken it from the army.”
Now, they are planning to acquire it directly from Russia, he said.
The KBP Instrument Design Bureau claims that this arming device and fire control handles are designed so as to provide easy firing at any elevation angles.
It is for the first time that one man is able to carry the grenade launcher and the mount. The rate of fire per minute is 400 rpm.
“Earlier, we had supplied this to the Border Security Force (BSF) and the Central Reserve Police Force (CRPF) under a contract in August last year. Now, under the option clause, we would supply the automatic grenade launcher to the NSG and the Indo-Tibetan Border Police (ITBP),” Skofenko said.
The company will bid for the tender for the ‘Sniper Rifle’, he said.
He told ANI that “NSG has floated the tender for sniper reliefs and we are pitching for our OSV-96”
It’s a 12.7mm Sniper rifle which is “designed to engage various targets, including lightly armoured
vehicles at a distance of upto 1800m”.
It’s foldable design and that makes the rifle easy for carrying . The unique feature of this rifle
is that it is fitted with a collimating day sight and its is possible to fire the rifle with a night sight. Skofenko also elaborated that ‘it pentrates through the wall,’ Skofenko said.
‘The MOD and MHA has called for its trials. The navy’s MARCO(spl forces of navy) are also interested in this. So, we would be supplying this to the Navy too,’ he added.
Skofenko added that GM 94, Magazine grenade launcher is also what their company is bidding for the NSG for accomplishing operations of police forces.
The Magazine grenade launcher has different types of grenades (air fuel explosive , smoke , non lethal etc) and allows police to accomplish various missions.
The GM – 94 is effective inside the buildings during assaults in confined spaces of any volume. Its is also possible to fire with butt folded when is its used as a carrying handle.
The Russian arms company Izhmash, which is also attending the Defence Expo in India, is here with the latest AK assault rifles.
Andrey Baryshnikov of Izhmash told ANI: ‘we are making a move to sell AK-101 to AK 104 Kalashnikov riffles to India. These are technological advanced rifles as compared to AK-47 and AK-56 (Chinese). He also added that We are making a proposal to Indian the government that we can produce these rifles in India under license system.”
“Around 60 countries, including Thailand, Vietnam and Indonesia are using their AK rifles. Russia does not sell weapons to Pakistan,” he added.
He also added that they are looking for a partner in India and are looking for joint ventures with Indian companies. (ANI)
[NF]
|Defpro: Rosoboronexport at Defexpo India International Exhibition 2010 |
| |
|16:52 GMT, February 15, 2010 | |
|The Defexpo India International Exhibition is the major venue for arms exporters in the Asian Pacific Rim. The exhibition takes | |
|place biennially in New Delhi under the auspices of the Indian Ministry of Defence and Confederation of Indian Industry. This | |
|year’s exhibition is organised by the Defence Exhibition Organization of the Indian Ministry of Defence. | |
| | |
|Since the first Defexpo in 2000 Russian defence enterprises have always been participating in these displays of land and naval | |
|defence systems, offering the best products of the Russian defence industry. | |
| | |
| | |
|Years of strategic partnership | |
| | |
|Russia is a long-standing dependable strategic partner of India. The history of military technical cooperation between the two | |
|countries starts in November 1964 when the first agreement on the delivery of the MiG-21 aircraft to India was signed, later on | |
|followed by light tanks and helicopters. For a long period of time India has been taking up almost one third of the Russian arms| |
|exports. As a result, arsenals of the Indian military services have been up to 70% complete with Soviet/Russian-origin weapons. | |
|Total amount of the Russian military sales for the entire period of the military technical cooperation between the two countries| |
|has reached 50 billion US dollars. | |
| | |
|Since then our countries have been constantly strengthening their strategic partnership, developing new forms and directions of | |
|mutually advantageous cooperation. Even though India is now actively diversifying its arms acquisitions, it still remains | |
|Russia’s major strategic partner. In fact, during the last three years our country has won 75% of all finalised Indian tenders. | |
| | |
|Among major projects being implemented these days, one can find the T-90S tank and Su-30MKI aircraft licensed production, and | |
|delivery to the Indian Air Force of the Mi-17 type military transport helicopters. Russian enterprises are implementing the | |
|Indian orders on delivery of the MiG-29K/KUB ship-based fighters and Ka-31 radar picket helicopters. | |
| | |
|The Russian-Indian Military Technical Cooperation Programme in 2001-2010 is nearing its completion. The new Military Technical | |
|Cooperation Programme for the period of up to 2020 has been signed during the recent visit to Moscow of Indian Prime Minister | |
|Manmohan Singh. No similar document has been signed yet by India with any other major arms exporter. | |
|In recent years the new trend becomes more and more pronounced, showing increased participation of the Indian industry in the | |
|development and production of Russian military equipment procured for the Indian Army and Navy. Our bilateral cooperation is now| |
|transitioning to a qualitatively new level: from deliveries to India of Russian finished military-purpose products to joint | |
|research and development, Russian-origin technology transfers and organisation of licensed production in India. This answers | |
|strategic interests of both states. | |
| | |
|“Confidence is the major factor in our relations with India, - says Victor Komardin, the deputy director general of the | |
|Rosoboronexport federal state unitary enterprise and head of its delegation at the Defexpo India 2010 exhibition. Despite the | |
|exacerbated competition we maintain traditions of trusted and mutually advantageous cooperation by offering the best | |
|Russian-made weapons and defence equipment to our Indian partners. This year’s exhibition in New Delhi will be another proof of | |
|it.” | |
| | |
| | |
|Naval systems | |
| | |
|Currently Rosoboronexport is offering to foreign customers over 50 projects of combatants, submarines and boats: from missile | |
|destroyers to patrol vessels to midget submarines. | |
| | |
|Last year naval systems accounted for 14% of all Rosoboronexport’s foreign sales. At present naval systems are taking up a | |
|substantial share of the export orders amounting to more than 6 billion US dollars. | |
| | |
|At Defexpo India 2010, Rosoboronexport promotes Project Amur 1650 up-to-date submarine. This is a new generation submarine | |
|having vast export potential. The submarine can operate in all regions of the world ocean, and deliver missile attacks against | |
|underwater, surface and land-based targets. It passes final testing in Russia and is planned for commissioning soon. This | |
|submarine features many types of its weapon systems and technologies that have proved their worth in operations on the latest | |
|modifications of the Kilo-class submarines. | |
| | |
|Naval specialists will be able to get detailed information on Project 11356 frigate popular among importers. The ship’s design | |
|incorporates leading-edge technologies proven in operations onboard Russian Navy’s ships. Its diverse modern weapon systems | |
|include the Club-N antiship missile system with 8 missiles in vertical launchers, 100-mm A-190E versatile artillery mount, | |
|short- and medium-range air defence missile systems, as well as antisubmarine and electronic warfare systems, Ka-28 and Ka-31 | |
|shipborne helicopters. The frigate is distinguished by high speed, excellent sea-going qualities, powerful two-shaft gas-turbine| |
|main machinery, and stealth design features. | |
| | |
|Project 20382 corvette is an effective means of fighting with submarines, surface ships, and air attack systems. Its hull is | |
|designed on stealth technology principles. The corvette is well armed for carrying out assigned operational tasks. Similar | |
|Project 20380 Steregushchiy ship has been recently built on the Russian Navy’s order, entered into service and used in combat | |
|duty missions. | |
| | |
|Project 21632 Tornado missile/artillery boat can operate autonomously or within a naval task force, successfully countering | |
|enemy surface ships. It is especially well suited for patrolling the maritime state border and exclusive economic zone, | |
|escorting and protecting convoys. The project’s platform has been taken as a basis for the design of a ground forces fire | |
|support ship and a patrol vessel, both featuring effective and powerful ship-based weapons and up-to-date equipment. | |
| | |
|Project 12200 Sobol and Project 12150 Mangust patrol boats represent a series of well-armed fast attack craft enjoying equally | |
|good export prospects. | |
| | |
|Russian naval systems also include a wide range of coastal integrated underwater, surface and airspace surveillance systems. | |
|These systems can be adapted to interact with existing customer sensors, integrating them into a single system with multi-level | |
|command and control posts. The Podsolnukh-E over-the-horizon radar is a unique element of such coastal situation awareness | |
|system. It provides sea-surface and airspace surveillance in a +120°-wide sector within a range of up to 450 km. | |
| | |
| | |
|Army weapons and equipment | |
| | |
|Russia’s arms exports for Land Forces and Air Defence are characterised by the following figures: Land Forces come second with | |
|19.7% (after Air Force) and Air Defence is fourth with 13.3% (after Navy). | |
| | |
|The Rosoboronexport’s exposition showcases a wide nomenclature of defence export products intended for land forces employment | |
|taking due account of potential customers’ requirements. | |
| | |
|The BTR-80 and BTR-80A armoured personnel carriers are designed to transport troops and provide fire support to motorised | |
|infantry units. The vehicles can be employed both by land and marine forces. | |
| | |
|It makes no doubts that specialists and guests to the exhibition will be attracted to the upgraded BMP-3M highly manoeuvrable | |
|infantry combat vehicle. It is armed with the 100-mm smoothbore gun/missile launcher, 30-mm automatic cannon and 7.62-mm machine| |
|gun integrated in a single weapons module. | |
| | |
|Visitors also will be able to familiarise themselves with the T-90S missile/gun main battle tank which features small | |
|dimensions, reduced weight and low observable profile, as well as advanced gun/missile launcher armament, active and reactive | |
|armour protection. The T-90S is considered to be one of the world’s best tanks to date. | |
| | |
|Land forces’ artillery systems will be traditionally represented by promotional materials on multiple rocket launch systems, | |
|upgraded self-propelled guns and howitzers, antitank guided weapons, reconnaissance and combat control systems. | |
| | |
|The Rosoboronexport’s exposition secures a prominent space for multiple rocket launch systems and a wide range of projectiles | |
|for them. These systems are in great demand in many regions over the world as a powerful and highly effective means capable of | |
|suppressing enemy forces and assets at a range of 20 to 90 km. The exposition features the 9A52-4 Smerch multiple rocket launch | |
|system mounted on the Kamaz truck with the removable or fixed containers. Its combat vehicle is equipped with the automated fire| |
|control and guidance system (ASUNO), as well as air conditioning system. | |
| | |
|The exposition contains promotional materials on self-propelled and towed artillery systems, including the 152-mm Msta-S | |
|self-propelled howitzer coupled with the automated fire control and guidance system, 120-mm Nona-M1 mortar, and others. | |
| | |
|Military specialists will have the opportunity to see a plethora of general-purpose and close-combat infantry weapons, such as | |
|well-known types of grenade launchers (hand-held RPG-7V1 and RPG-27, automatic AGS-30), machine guns (Pecheneg, PKM, RPK, and | |
|others), PDM-A Shmel-M new-generation flame throwers, SVD and SVDS sniper rifles, and, of course, Kalashnikov assault rifles of | |
|the so called hundredth series, namely AK-101, AK-102, AK-103, AK-104. | |
| | |
|Air defence experts will be attracted to the upgraded Pechora-2M air defence missile system (ADMS). The upgrade has its | |
|technical and tactical characteristics notably improved, and enjoys some entirely new capabilities. The system’s engagement | |
|envelope has been substantially extended (up to 32 km - in range) and target kill effectiveness increased by replacing vintage | |
|components and signal processors with new up-to-date analogues and improving ballistic flight characteristics of the | |
|surface-to-air guided missile. The “Pechora-2M” ADMS upgrading programme aims at extending the system’s service life up to 15 | |
|years at least. | |
| | |
|In the family of famous air defence weapon systems having high export capacities one will find the Buk-M2E multi-channel | |
|medium-range and Tor-M2E short-range air defence missile systems. The two weapon systems are designed to defend vital | |
|administrative, military and industrial installations against enemy air attacks, including those with precision-guided | |
|munitions, in most demanding operational environment. | |
| | |
|“During Defexpo India 2010 we are going to meet and have discussions with our traditional foreign partners in military technical| |
|cooperation, as well as with new potential customers willing to buy Russian-made weapons and military equipment”, noted Victor | |
|Komardin. - We are confident that this display of weapons and military equipment for Land Forces and Navy will open up a new | |
|phase of Russia’s mutually advantageous cooperation with India and other states in the region.” | |
| | |
|You are welcome to the Russian Exposition at the DEFEXPO INDIA 2010 International Exhibition! Visit us in Hall 18 (second floor)| |
|at Stand U18.40 where you can obtain all available information on Russian-made land and sea combat systems offered for export. | |
| | |
|For media attention: Please visit our stand (No. U18.40) on 16 February 2010, at 11 a.m. for press briefing organised by the | |
|Rosoboronexport’s delegation. | |
|RFE/RL: What The Soviets Got Right In Afghanistan | |
| | |
| | |
|February 15, 2010 | |
| | |
|By Jean MacKenzie | |
|Last summer I was invited to a friend's summer home outside of Kabul for a "picnic." After negotiating unfamiliar roads and a | |
|series of dodgy villages where my fair hair and pale skin excited quite a bit of notice, we arrived at a dusty farm with a small| |
|stone house. | |
| | |
|I was escorted to the back patio, where about 15 middle-aged men were already ensconced. My heart sank when I saw the gathering | |
|-- it could have been a Taliban council, judging by the assorted beards and turbans on display. | |
| | |
|I was the only foreigner, as well as the only female: my friend's mother and sisters were firmly relegated to the kitchen. They | |
|were not even allowed to serve the food -- such are the rules of the traditional Pashtun household. Women do not mix with men | |
|outside their immediate family. | |
| | |
|I was excepted from the rule -- foreign females are honorary members of a "third sex" -- not quite men, but not exactly women, | |
|either. I gulped, tried a weak smile, and came out with my few phrases in Dari and Pashto, Afghanistan's two official national | |
|languages. The men nodded politely, but I could tell they thought, as I did, that it was going to be a long afternoon. | |
| | |
|Suddenly I decided to try Russian, a language in which I am proficient, thanks to more than a decade spent in Moscow. | |
| | |
|Almost before the first long syllables of "zdravstvuite" (hello) were out of my mouth, the men began to stir, laugh, and | |
|respond. All of them, without exception, were fluent in Russian -- they had all been educated at various respected institutions | |
|of the former Soviet Union. There was a lawyer from Kyiv University and an engineer from Leningrad State. There was an historian| |
|from Moscow, and even a language teacher from the Pushkin Institute, where I had also spent a year. | |
| | |
|In no time we were fast friends, swapping stories of dorm life, favorite foods, beloved haunts. They even offered me a drink -- | |
|what I had thought was a pitcher of water turned out to be some of the vilest home brew I've tasted since my student days. | |
| | |
|Russian Memories | |
| | |
|These men were the intellectual elite of their generation, a middle class created by the Soviet attempts to forge a cadre of | |
|sympathizers. Exactly 21 years ago today, General Boris Gromov walked out of Afghanistan into Soviet Uzbekistan over the ineptly| |
|named "Bridge of Friendship," and the legacy of the Soviet period is still keenly felt. And not all of it is negative. | |
| | |
|Exact data is hard to come by, but during their nine years in Afghanistan the Soviets sent tens of thousands of Afghans to | |
|colleges and universities in major Soviet cities. They built schools, roads, hospitals, and they brought in professionals to | |
|staff them. | |
| | |
|At the same time, the war caused unimaginable hardship in many parts of Afghanistan: over 1 million Afghans were killed and more| |
|than 5 million -- a third of the population -- were displaced. | |
| | |
|But while we want to attach a great big minus sign to the Soviet invasion and an even bigger plus sign to the U.S.-led operation| |
|that toppled the Taliban, it is just wishful thinking to imagine that Afghans see a clear, qualitative difference between the | |
|Russian occupation and the U.S. presence. | |
| | |
|Veteran journalist Dan Rather recently appeared on "The Daily Show," having just returned from Kabul. "The Afghans know that the| |
|Russian came for conquest; we came to help," he said, with no apparent irony. | |
| | |
|It's been almost 30 years since Rather was hanging around with the mujahedin, and, with no disrespect intended, I think he's a | |
|bit out of touch. | |
| | |
|'Infidel Invaders' | |
| | |
|During the five years I've spent in Afghanistan, I've spoken to hundreds of Afghans. They come in all shapes, sizes, and | |
|political persuasions. I have met some who swear that things were better when the Soviets were here -- although perhaps they are| |
|just being ornery. I have spoken to many more who lump us all together as "infidel invaders." | |
| | |
|Those who are willing to damn the Russians while giving the United States a pat on the head are few and far between. And most of| |
|them are the fighters who reaped the benefits of U.S. largesse during the jihad. | |
| | |
|In the 1980s, the United States poured money and weapons into Afghanistan to contain and defeat its nemesis, the Soviet Union. | |
|In the process we nurtured our own enemies: Osama bin Laden got his start during the mujahedin years, hiding in the Afghan | |
|mountains and dreaming of jihad. | |
| | |
|The Taliban, too, were committed mujahedin, mercilessly targeting the infidel occupiers -- much as they are now, as a matter of | |
|fact. Except that then they were doing it on our dime. | |
| | |
|The United States will soon surpass the Soviet tenure in Afghanistan. This is our ninth year of conflict. One has to wonder what| |
|our legacy will look like 20 years from now. | |
| | |
|The Soviet Legacy | |
| | |
|The number of killed and displaced is a mere fraction of the horrific Soviet total, which is all to the good. But the | |
|contribution we have made to Afghanistan's infrastructure is also minimal. We take a handful of scholars each year in various | |
|programs; we have built a few schools and a sprinkling of clinics. We have spent hundreds of millions of dollars in a vain | |
|attempt to disarm the militias, only to begin rearming them over the past year. | |
| | |
|We have tried, and failed, to build up the Afghan police; we've had limited success with the Afghan Army. Nevertheless, we are | |
|committed to "Afghanization" -- handing over the fight to the indigenous security forces, just as the Soviets did in 1986-89. | |
| | |
|Afghan and international specialists warn that we are following in the path of the Soviet Union. The Afghan war contributed | |
|substantially to the demise of the seemingly unshakable monolith. | |
| | |
|When Dmitry Rogozin, Russia's ambassador to NATO, recently urged the alliance to stay the course in Afghanistan, one could | |
|almost hear a hollow chuckle from the general direction of Moscow. | |
| | |
|Perhaps the United States should take some advice from its own State Department, which circulated this memo on Afghanistan in | |
|1986: "The Soviets thus far have made little progress -- primarily because most Afghans reject any form of outside domination," | |
|it warned. "Most Afghans are scandalized by the sexual equality promoted by the Soviet media and the widespread consumption of | |
|alcohol in the Soviet Union." | |
| | |
|Now the shoe is on the other foot, but the reality of the situation has not changed. | |
| | |
|Don't be fooled by rhetoric. Our brave words about liberating the Afghan people sound increasingly absurd given the recent, | |
|badly flawed presidential election, runaway corruption, and growing insurgency. Communism and democracy may sound like opposites| |
|to us, but to the Afghans, they are just buzzwords used by invaders. | |
| | |
|Perhaps we should listen to Rogozin and Gromov after all, who contributed a joint op-ed to "The New York Times" last month: "We | |
|are not sending our own troops to Afghanistan," the two men wrote. "We have been there before and we did not like it." | |
| | |
|Jean MacKenzie has lived in and written on Afghanistan for the past five years. She is now the Kabul correspondent for "Global | |
|Post." The views expressed in this commentary are the author's own and do not necessarily reflect those of RFE/RL | |
| | |
|RFE/RL: Activists Say North Caucasus Civilians Targeted | |
| | |
| | |
|February 15, 2010 | |
|A Russian rights group has cast doubt on Kremlin claims that four civilians killed in weekend operations against rebels in the | |
|North Caucasus were victims of crossfire. | |
| | |
|In a report based on witnesses' accounts, Memorial said the four had been abducted, tortured, and killed. | |
| | |
|Memorial's Alexander Cherkasov said local rights activists had photos showing the victims with multiple gunshot or knife wounds.| |
| | |
| | |
|Russian authorities had no immediate reaction to the report. | |
| | |
|Over the weekend, authorities said four civilians had accidently come under attack in a nearby forest during a large-scale | |
|operation that killed at least 20 militants in Ingushetia, a region bordering Chechnya. | |
| | |
|Ingushetia's leader Yunus-Bek Yevkurov apologized for their "unfortunate deaths" and gave the families compensation money. | |
| | |
|Unofficial Islamist website , citing relatives and local witnesses, said that 14 civilians had been killed | |
|during last week's clashes, mostly teenagers who were picking wild garlic in a forest. | |
| | |
|compiled from agency reports | |
| | |
|February 16, 2010 | |
|NY Times: Russia’s Version of Four Deaths Disputed | |
| | |
| | |
|By REUTERS | |
|MOSCOW (Reuters) — Memorial, a Russian group that advocates for human rights, said Monday that four civilians who were killed | |
|during recent operations against Islamist militants in the North Caucasus region had not been accidentally caught in a | |
|cross-fire, as Russian authorities have contended. | |
|Memorial said in a report that the four had been abducted, tortured and killed, a conclusion that the organization said was | |
|based on interviews with witnesses. The four civilians had multiple gunshot or knife wounds, which Aleksandr Cherkasov, a | |
|director of Memorial, said had been photographed by local human rights activists. | |
|The Kremlin, which views the militant Islamist insurgency in the North Caucasus as Russia’s biggest domestic political problem, | |
|had no immediate comment on the report. | |
|The authorities said over the weekend that the four people had accidentally come under attack in a forest during a large-scale | |
|operation by security forces that killed at least 20 militants in Ingushetia, a region bordering Chechnya. | |
|Ingushetia’s leader, Yunus-Bek Yevkurov, who narrowly survived a suicide bomb attack last year, apologized on Saturday for what | |
|he called the victims’ “unfortunate deaths” and gave their families compensation money. | |
|But Mr. Cherkasov said Monday, “They are not, as authorities claimed, the victims of cross-fire.” | |
|Violence has increased during the past year in Chechnya, the scene of two bloody separatist wars since the mid-1990s, as well as| |
|in Ingushetia and Dagestan. | |
|They are the most troubled regions of Russia’s North Caucasus, where Islamist militancy and anger at the government overlaps | |
|with the activity of criminal groups and clan and ethnic rivalries. Kremlin critics contend that heavy-handed actions by | |
|security forces have helped fuel the violence. | |
|An unofficial Islamist Web site, , citing relatives and local witnesses, said Monday that 14 civilians had been | |
|killed during the clashes last week, most of them teenagers who were picking wild garlic in a forest. The Web site cited local | |
|witnesses and relatives of the dead in its report. | |
|Russian security forces, in particular the OMON riot police, were accused by the European Union and human rights groups of | |
|serious abuses during the two Chechen wars, accusations that the security forces disputed. | |
|The newspaper Moskovsky Komsomolets, in an uncharacteristic criticism of the government, reported on Monday: “It’s simple: | |
|Destroy militants with disregard for peaceful citizens. As it always is and always has been.” | |
|Imram Ezhiev, a Chechen human rights activist and head of the Society of Russian-Chechen Friendship, said in an interview from | |
|Grozny, the Chechen capital, “Forces kill civilians regularly, but it is rare for authorities to admit to it.” | |
|Financial Times: Putin should beware aftertaste from Kiev poll | |
| | |
|By Stefan Wagstyl in London | |
|Published: February 15 2010 23:06 | Last updated: February 15 2010 23:06 | |
|For Vladimir Putin, the results of the Ukrainian presidential election are sweet. But the Russian prime minister should savour | |
|the success of Viktor Yanukovich with some care – there may yet be a strange aftertaste. | |
|At first lick, there should be nothing to disturb Mr Putin. President Viktor Yushchenko, Kiev’s pro-west champion, has been | |
|comprehensively beaten, losing in the first round with barely 5 per cent of the vote – a humiliation for the Nato-supporting | |
|Orange Revolution hero. | |
|Mr Yanukovich, who overcame Yulia Tymoshenko in Sunday’s final round, is the most Russia-friendly of the top candidates, even if| |
|his sympathies are outweighed by dependence on his real masters, Ukraine’s industrial billionaires. | |
|To add spice for Mr Putin, this is the same Mr Yanukovich, who lost in 2004 when he was Moscow’s publicly backed candidate. The | |
|gaffe-prone former convict is not exactly the ex-KGB colonel’s best mate. But he owes the Kremlin a few favours. | |
|Mr Yanukovich’s victory will probably not mark any dramatic Russia-oriented shift in foreign policy. The big change came in | |
|2008, when Nato decided against extending membership to Ukraine (or Georgia) for fear of offending Russia. The point was rammed | |
|home during the Georgia war. For Mr Yushchenko, who had earlier discovered that the European Union did not want Ukraine as a | |
|member either, it was the end of a dream. | |
|Subsequently, Kiev took a more balanced approach. With Mr Yushchenko in retreat, Ms Tymoshenko, as prime minister, developed | |
|relations with Mr Putin at the same time as promoting EU integration. With Mr Yanukovich there will be a bit more Russia in the | |
|mix but the two-track policy will remain in place. | |
|Yet beneath the surface there are hidden dangers for Mr Putin. The most important challenge of the Orange Revolution was not the| |
|threat of Ukraine breaking away from Moscow and joining the west. This was unlikely, given the myriad ties between the two | |
|countries. And if events ever had moved in that direction, Russia had powerful tools at its disposal, such as fomenting | |
|separatism in Crimea. | |
|What really disturbed Mr Putin was the Orange Revolution’s potential political influence on Russia. It was a democratic | |
|challenge, albeit indirect, to his authoritarian structures. With protesters overthrowing leaders at around the same time in | |
|Georgia and Kyrgyzstan it was possible to believe liberalisation was sweeping the former Soviet Union – and that the ultimate | |
|target could be Russia. | |
|In the event, the new regime in Kyrgyzstan proved little different from the old. In Georgia, Mikheil Saakashvili, president, | |
|allowed himself to be drawn into a disastrous war. In Ukraine, as Mr Putin never ceased to point out, the Orange Revolution was | |
|followed by chaos. | |
|The circumstances of the Orange Revolution – the protests, the blatant foreign involvement by Russia and the west and the | |
|subsequent turmoil – made it easy for Moscow to portray democracy as a mess. But this time it could be different. If Mr | |
|Yanukovich can create a stability – a big if – and generate economic recovery – an even bigger if – it will be harder for Mr | |
|Putin to argue Russia has nothing to learn from Ukraine. | |
|This is not an issue for today. Even though Russians are angry with the recession, there are no threats to Mr Putin’s grip on | |
|power. Recent demonstrations in the Kaliningrad region and sporadic protests elsewhere do not change the picture. And no one | |
|looks to Kiev for advice. | |
|But who knows about the future? Mr Putin and his protégé, President Dmitry Medvedev, do not run a totalitarian state but an | |
|authoritarian system in which some argument is tolerated. Every so often, there is a note of real dissent. Last week, Sergei | |
|Mironov, speaker of the federation council (parliament’s upper house), attacked the government’s economic policies and was | |
|promptly slapped down by Mr Putin’s United Russia party. He retorted: “Does United Russia think that opposition and criticism is| |
|dishonest? In a civilised society, this is the duty and aim of the opposition.” Could Ukraine one day serve as an example of | |
|such a “civilised society”, even in Russian eyes? | |
|Guardian: Litvinenko's widow says Russian authorities obstructing murder inquiry | |
| | |
|Marina Litvinenko a witness for oligarch Boris Berezovsky in libel battle over who was behind poisoning of ex-spy in London | |
|guardian.co.uk, Monday 15 February 2010 17.59 GMT | |
|Helen Pidd | |
|The widow of Alexander Litvinenko, the former Russian spy who was poisoned with a radioactive isotope in 2006, appeared at the | |
|high court in London today to dismiss as "propaganda" claims that her husband's billionaire friend and benefactor was behind the| |
|murder. | |
|Marina Litvinenko also accused the Russian authorities of keeping her "in limbo" by obstructing the investigation into her | |
|husband's death as she appeared as a witness for the Russian oligarch Boris Berezovsky in his libel battle with a man called | |
|Vladimir Terluk. Berezovsky, a fierce critic of the Kremlin who claimed asylum in the UK in 2003, alleges that Terluk, under the| |
|pseudonym "Pyotr", accused him of being behind Litvinenko's killing on a Russian TV show in 2007. | |
|Terluk denies that he is Pyotr but yesterday alleged that Litvinenko had bullied him into making a false confession about being | |
|a Russian KGB assassin ordered to murder Berezovsky. This confession was then used to bolster Berezovsky's successful asylum | |
|claim by showing that he had a real fear of persecution, he said. | |
|At part of Berezovsky's asylum case in 2003, Litvinenko, then still alive, testified that Terluk had told him that he had been | |
|ordered to reconnoitre Bow Street magistrates court, where Berezovsky was due to appear, and see how easy it would be to kill | |
|the Russian oligarch. | |
|"The purpose of this was to see whether it would be possible to take in unexamined pens and cigarettes and to see if there was | |
|some place within the premises where someone posing as a journalist would be able to get sufficiently close to Berezovsky to | |
|drip fluid from the pen on to his clothing or shoe and then light a cigarette, blowing smoke in the direction of the fluid," | |
|Litvinenko testified, according to papers submitted to the high court today. | |
|"The introduction of smoke could be a catalyst for a poison of some sort," he added. The court has already heard that Berezovsky| |
|considered Litvinenko one of his "most trusted friends in London". He provided the Litvinenkos with accommodation when they fled| |
|to London from Russia after Litvinenko turned whistleblower and said that he had been told to assassinate Berezovsky. Asked by | |
|Berezovsky's barrister, Desmond Browne QC, whether she had grounds to suspect that Berezovsky was party to her husband's murder,| |
|Marina Litvinenko said: "No, I do not." | |
|"I knew that the accusation against Boris was propaganda but I knew others in the Russian-speaking community would be likely to | |
|swallow that propaganda," she said in her witness statement. | |
|She told the court: "In the months following the death I followed every aspect of the police investigation. I remain in limbo as| |
|the Russian authorities have obstructed the course of justice and have refused to extradite Andrei Lugovoi, whom the British | |
|Crown Prosecution Service named as the man they wished to charge with the murder." The case continues. | |
|Moscow News: Baltic Pipeline, timber tariffs seen as linked | |
| | |
| | |
| | |
|15/02/2010 | |
|Anna Arutunyan | |
| | |
|Finland's decision last week to give its final environmental approval to the Nord Stream gas pipeline came as Russia signalled a| |
|concession on another key issue for its Nordic neighbour - a further delay in imposing prohibitive export tariffs on raw timber.| |
| | |
|Speaking at an environmental summit in Helsinki on Feb. 10, Prime Minister Vladimir Putin urged Finland to approve the pipeline | |
|and accept that gas, "not dried manure," would be the commodity keeping their homes warm for the next 30 years. | |
|Then, asked by a Finnish journalist whether Russia would hike timber tariffs - a measure that could cripple the Finnish timber | |
|processing industry - Putin said he would "consider further prolongation" of the current levels. "We don't want to do anyone any| |
|harm," Putin said. "We just want to do good for ourselves." | |
|The approval for Nord Stream - the last in a series of environmental checks ordered by Baltic littoral states - paves the way | |
|for pipeline construction to begin as soon as April, and brings closer to fruition Russia's cherished dream of a direct export | |
|route for its gas to Europe that bypasses Ukraine and Belarus. | |
|Once construction is completed, testing of the pipeline could start as soon as the end of next year. | |
| | |
|'Rhetoric changed' | |
|Russia's decision to hold off on a prohibitive timber export tax last autmn was integral in pushing the Finns to agree to Nord | |
|Stream, said Chris Weafer, chief strategist at Uralsib. | |
|"Finland was the most vocal in voicing objections to the Nord Stream proposal, raising specific environmental issues and making | |
|clear that they would block the programme," Weafer said. "The rhetoric changed as soon as Russia agreed to suspend ... [higher] | |
|timber tariffs." | |
|Experts agreed that while the arguments for resolving the two issues stood separately on their own merits, clearly some link was| |
|being made by both countries. | |
|Environmental campaigners appear to have been mollified by the ecology checks carried out into the pipeline, even though before | |
|they had voiced concern that it could stir up decades of accumulated dirt from toxic dumping, sewage, oil spills and even the | |
|remnants of chemical weapons in one of the world's most polluted seas. | |
| | |
|Ecology concerns met | |
|"Taking a route that is closer to Finland's border means that there will be less negative impact [on the seabed]," said Alexey | |
|Knizhnikov, WWF Russia's oil and gas environmental policy officer. "As ecologists, we can't call any project environmentally | |
|sound. But it's a fact that [the danger] of the pipeline has been minimised." | |
|In his Helsinki speech, Putin said that 100 million euros had been spent on reducing the environmental impact of the pipeline, | |
|even when the danger of pollution was "speculative". | |
|Knizhnikov expressed hope that other projects in Russia could be checked as thoroughly. | |
| | |
|Hikes in duties | |
|But timber tariffs still appeared to be the key to the trade-off. | |
|When Russia announced in 2007 that it would raise export tariffs on unprocessed timber to boost Russia's its domestic processing| |
|industry, the issue became a major point of friction with Finland, a major importer and processor of Russian timber. | |
|By April 2008, the duty on raw timber had been raised to 15 euros per cubic metre, and it was slated to go up to a prohibitive | |
|50 euros by Jan 1, 2009. | |
|The increase in tariffs prompted foreign companies to look into new investment projects inside Russia, but the results were | |
|limited - due to difficulties with red tape and corruption. | |
|After a meeting with Finnish Prime Minister Matti Vanhanen in November 2008, Putin agreed to postpone bringing in the | |
|prohibitive 50-euro tax for a year. In the autumn of 2009, it was postponed again until 2011. | |
| | |
|Lobbying just one factor | |
|Finland's lobbying was just one of the factors in persuading Russia to forgo the export tariffs, experts said. Another problem | |
|was that the Russian timber industry, already very export-oriented, was dealt a serious blow by the economic crisis, as a number| |
|of companies who planned to open processing plants put their projects on hold. | |
|"Russia does not have the capacity to process large volumes of timber," said Olga Deulina, senior analyst at Lesprom Network, a | |
|timber industry consultancy. Due the crisis, raw timber exports fell by 40 per cent in 2009 - another reason why it is not | |
|feasible to increase timber duties. | |
|Nevertheless, the decision to hold off the increase came as a shock to many in the industry, Deulina said, because they had | |
|already begun to restructure their production with the export tariffs in mind. | |
|"It seems then that the decision was not very timely," Deulina said. | |
|Experts differ on how influential the timber lobby could have been, many calling the industry one of the murkiest in Russia. At | |
|least one senior official, Khabarovsk Governor Vyacheslav Shport, spoke out against raising export duties in September 2009. | |
|Theoretically, another opponent could have been Ilim Group, Russia's largest timber holding, said Vladimir Pribylovsky, a | |
|political analyst with the Panorama think tank. Ilim's chief, Mikhail Zingarevich, is reportedly close to President Dmitry | |
|Medvedev, who worked as general counsel to Ilim Pulp in the 1990s, Pribylovsky said. | |
| | |
|Power plays | |
|Weafer, of Uralsib, said that the timber industry could see a lot of power plays in the near future. "No one has emerged with a | |
|dominant role, and there is no clear leader. ... Until that's agreed, we cannot see a development plan," he said. That is why it| |
|was obvious that Nord Stream would take priority over something as long-term as timber tariffs. | |
|Officials at the European Commission said they still saw Russia's current export tariffs as too high. | |
|"The EU does not consider it valid to use protectionist measures... to stimulate foreign direct investment," John Clancy, | |
|spokesman for Trade Commissioner Karel De Gucht, said in an e-mailed reply. "A permanent solution on the future trade conditions| |
|in wood products remains one of the few outstanding issues for the accession of Russia to the WTO." | |
|Expert Club: Will Moscow invite Nauru to take part in Victory Day celebrations? | |
| | |
| | |
|16/02/2010 11:40 | |
|Irakli Tskitishvili | |
|On May 9th a traditional parade dedicated to Victory Day will be held on the Red Square in Moscow. It is also traditional that | |
|it is hosted by first persons of Russia. There will be military and civil parade on the Red Square and thus Russia once again | |
|will celebrate victory over Fascism in the Great Patriotic War. | |
|Russian leadership solved a problem quite diplomatically. They invited to the parade heads of the CIS countries and | |
|representatives of those countries that share joy of this victory over fascism and would be willing to come to Moscow". Georgia,| |
|of course, is not a member of the CIS and accordingly its leadership has not been invited to the parade. And this is the | |
|diplomatic side of the matter. | |
|There is also another undiplomatic, cynical and hard side characteristic of Russia. As Head of the Presidential Property | |
|Management Department of the Russian Federation Vladimir Kozhin says Russia does not intend to send an invitation to the | |
|Georgian President to participate in celebrations of dedicated to the 65th anniversary of the victory in the World War II. | |
|"As to the Head of Georgia nobody expects him and nobody is going to invite him" – directly announced Kozhin cynically, | |
|undiplomatically and brusquely. | |
|He also said that despite the fact that Georgian President will not be invited "veterans living in Georgia will take part in the| |
|celebrations in Moscow". | |
|Probably this statement of Kozhin aroused positive response in many "Georgians". Especially in those who signed an agreement | |
|with the devil itself to fight against Mikhail Saakashvili. They do not care that it's not about a person of Mikhail Saakashvili| |
|but the President of Georgia - a head of the country where they live and work but work for what and for whom let people judge | |
|about this. | |
|The Kremlin once again tried to separate from each other the President of Georgia and its people. After Russia carried out | |
|aggression against Georgia and annexed 20 % of its territories the main goal of the Kremlin leadership became to set Georgian | |
|people against their leadership that they failed to replace through military force. | |
|It's not the first time in the Georgian history that enemy is using Georgian citizens to conquer this country. The same was | |
|happening from ancient times, during attacks of Ottomans, Mongols or Russians. A fortress falls from inside they say in Georgia | |
|and Russia that had dominated over Georgia for 200 years knows this very well. Accordingly, it is looking for new Sergo | |
|Orjonikidzes among us who would be ready to "present" Russia with Georgian lands like it was done with Sochi. | |
|The Kremlin sees the only way to achieve its goals in Georgia by creating or finding forces in Georgia that it can rely on. | |
|Starting from the August war Russian leadership has been trying its best to divide Mikhail Saakashvili and Georgian population. | |
|It always tries to drive a wedge between them. In its every statement the Kremlin notes that it really likes Georgian culture, | |
|Georgian hospitality, Georgian table, and in general, everything Georgian. The only thing it does not like is Mikhail | |
|Saakashvili. So Moscow is saying that facts of kicking Georgians out of Russia, compiling lists of children in schools and | |
|prohibiting Georgian children to study, massacring Georgians and carrying out their ethnic cleansing in Abkhazia and South | |
|Ossetia by Russian occupants is manifestations of a great love that have connected Georgia and Russia for over 2000 years. The | |
|only person who stands in the way to this love is Georgian President who was elected by the people - people that Russia has been| |
|mercilessly massacring. Iron logic – nothing to say more. The saddest thing is that even today there are people who fall for | |
|this. | |
|As to the victory in the World War II Russian leadership "forgets" that it were them who drove Meliton Kantaria - a resident of | |
|Sukhumi and a person who put a flag of victory over Reichstag building - out of his home. They don't say anything about the fact| |
|either that a son of Meliton Kantaria until today cannot see his mother who is stuck in the occupied territory. Was not it | |
|"achievement" of their bombs that more than 2000 war veterans were killed and died in Abkhazia? | |
|One way or the other, Moscow is not expecting or inviting us to the celebrations. The Kremlin thinks that it is playing a big | |
|game and thus is inviting "big players" from Europe to its party in order to once again show them its armament and | |
|diplomatically "wink" at them as to what would happen to them in case they would go against them. We will probably see the | |
|puppet "theatre" with participation of representatives of Abkhazia, Tskhinvali, Transnistria and Nagorny Karabakh separatist | |
|regimes in the red Square sitting on honourable positions. It is interesting to know if Moscow invites to this celebration their| |
|comrades from terrorist organization of Hamas and Nauru – a tiny country "enriched" by bargaining of recognition of independence| |
|and guano trade?! | |
National Economic Trends
Interfax: Business-lending dips 1.2% in Dec, 0.3% for 2009 – CB
MOSCOW. Feb 16 (Interfax) - Russian bank loans to non-financial organizations decreased 156.1 billion rubles, or 1.2%, to 12.542 trillion rubles in the month of December, the Central Bank reported.
For 2009 as a whole, only January, April, and November showed growth in the ruble value of banks' combined credit portfolio. It increased 6.9% in January, from 12.510 trillion rubles - or by 32 billion, equivalent to $1 billion. The portfolio expanded 34.2% in 2008 and 51.5% in 2007.
Combined loans to private borrowers in 2009 decreased in eleven months out of twelve, the exception being January (+0.5%). Over the past year, this portfolio contracted by 443.4 billion rubles, or by 11.0%, to 3.574 trillion rubles. It had grown 35.2% in 2008 and 57.8% in 2007.
Cf
The Moscow Times: January Industrial Output Up 7.8%
16 February 2010
Bloomberg
Industrial production expanded in January for a third month, the State Statistics Service said Monday, signaling that a recovery in domestic demand may help tug the country out of last year’s record economic downturn.
Output at factories, mines and utilities jumped 7.8 percent, the biggest increase since April 2008, from a year earlier after a 2.7 percent gain in December, the service said. Nonseasonally adjusted monthly output fell 20.4 percent in January, which began with a 10-day holiday period.
Growing exports, government stimulus spending and companies’ efforts to stabilize inventories stoked a factory rebound after output contracted for 12 consecutive months after October 2008.
“The recovery will be largely linked to external demand, but domestic factors are becoming more prominent,” said Olga Naidenova, an economist at Otkritie Financial, before the release. Government spending late last year and its anti-crisis program, which reached 1.2 trillion rubles ($39.7 billion), helped boost output in January, she said.
Manufacturing expanded last month for the first time since September as new orders increased and companies fired staff at a slower pace, according to VTB Capital’s Purchasing Managers’ Index. The domestic market was a “key driver” of demand as new export orders expanded “only marginally,” VTB said.
Industrial production may expand 2.8 percent this year, and fixed capital investment may rise 2.9 percent, the government said in a Dec. 30 report. Output shrank 10.8 percent in 2009, and capital investment fell 17 percent, the statistics service said.
Improving global sales, higher prices for raw materials and leaner inventories are prompting companies including coking coal producer Raspadskaya to raise prices and Rosneft to ramp up production. Russian Railways, the rail monopoly, said average daily cargo volumes climbed 17 percent in January from a year earlier.
Rail cargoes may rise 3.7 percent this year after tumbling 15 percent in 2009 from the previous year, Russian Railways chief executive Vladimir Yakunin told Prime Minister Vladimir Putin on Feb. 3. Railroads account for about 85 percent of Russia’s cargo transport, excluding pipelines.
The pickup in industrial output has yet to boost hiring. Manufacturers cut jobs for a 21st consecutive month in January even as the rate of job losses was the second slowest in the past 17 months, according to VTB Capital’s purchasing managers index. The jobless rate rose in December to 8.2 percent from 8.1 percent in November.
Wage arrears jumped 15.5 percent in January after a 29.4 percent drop in December.
Lending to companies declined 0.3 percent in January as banks curtailed loans on concern that borrowers won’t be able to repay debt, the central bank says. The bank has cut interest rates 10 times between April and December to spur lending.
RenCap: January sees unusually steep drop in Russian industrial production
Renaissance Capital, Russia
Tuesday, February 16, 2010
Yesterday (15 Feb), Rosstat issued industrial production data for January, indicating a 20.4% MoM contraction, while the low-base effect was reflected in growth of 7.8% YoY. Seasonally adjusted, extraction declined 0.4% MoM and manufacturing 2.4% MoM, and only electricity generation demonstrated a positive change (2.0% MoM). The slump is largely down to Russia's manufacturing sector, where production traditionally drops in January due to the long holiday period.
Our current estimates indicate that the industrial recovery is far from stable, with extraction and manufacturing having fallen for the second consecutive month (seasonally adjusted). Moreover, we think an increase in budget expenditures in Nov-Dec 2009 prevented the figures from showing a deeper slump.
At the same time, the January figures do not look entirely representative to us. Rosstat had announced that basic year for the calculation was changed from 2002 to 2008, but a retrospective recalculation of the industrial production index will be undertaken in 2Q10. According to national accounts and their production side presentation, the contribution of manufacturing and electricity generation to industrial production significantly declined from 2002 (by 6.6 ppts overall). We think that after the revision, industrial production in 2009 will be up from the current estimate as manufacturing was the main contributor for last year decline.
Nevertheless, the real sector remains fragile, and manufacturing PMI indicates that final demand has only just started recovering (for the first month since September). We think if weekly inflation (to be published on Wednesday) is in the range of 0.1-0.2%, the Central Bank of Russia will have another signal for new rate cuts and further easing to stimulate the real sector.
Bloomberg: Russia’s Bad Debt Creates ‘Significant’ Risk, Bank Group Says
February 15, 2010, 12:22 PM EST
By Maria Levitov
Feb. 15 (Bloomberg) -- Russia’s non-performing bank assets may become a “significant destabilizing factor” for the financial industry, the Association of Russian Banks said.
Overdue loans may increase to as much as 20 percent of total lending in the first half, from about 12 percent to 13 percent at the end of last year, the Moscow-based association said in an e-mailed report today. ARB’s membership includes the nation’s top 30 banks, including OAO Sberbank, Russia’s biggest lender.
The central bank has warned that credit risks and the possibility of an equity market bubble are the main threats to Russia’s economic recovery. Non-performing consumer loans stood at 6.2 percent in December, according to Bloomberg calculations based on data released by the central bank today. Banks are responding by reining in lending, to avoid swelling losses.
Total bank loans to companies declined 1.2 percent in December from the previous month, while retail loans fell 0.3 percent in the period, Bank Rossii said.
Central bank data underestimate the size of on non- performing debt because they don’t include the principal due, Olga Ulyanova, an analyst with Moody’s Investors Service in Moscow, wrote in a note today. Moody’s estimates that 20 percent of outstanding loans at the end of 2009 are “problem loans,” she said.
The banking system needs to set aside between 1.25 trillion rubles ($41 billion) and 3 trillion rubles to cover its bad debt, according to the Association of Russian Banks’ report.
The Finance Ministry probably won’t recapitalize banks using ruble debt in the first six months, Deputy Finance Minister Tatiana Nesterenko said on Feb. 12. The government had previously planned to allocate 100 billion rubles to inject additional capital into banks via the ruble bonds.
--Editor: Tasneem Brogger.
To contact the reporter on this story: Maria Levitov in Moscow at +7-495-771-7719 or mlevitov@;
To contact the editor responsible for this story: Chris Kirkham at +44-20-7673-2464 or ckirkham@
The Moscow Times: Officials Eye Lower Mortgage Rates
16 February 2010
By Irina Filatova
Driven down by looser monetary policy from the Central Bank, mortgage rates have fallen more than 4 percentage points from their high during the crisis, but government officials are fighting a public campaign for the rates to decline even lower.
The average fixed mortgage rate for loans denominated in rubles has fallen to a post-crisis low of 15.8 percent, down from a high of 20 percent in June, according to calculations by mortgage broker Kreditmart.
Mortgage rates shot to 20 percent from a pre-crisis low of 13 percent after the Central Bank tightened monetary policy as the world financial crisis struck Russia, hoping to curtail a massive exodus of capital. After raising its refinance rate from a pre-crises low of 10 percent to a high of 13 percent in December 2008, the Central Bank began loosening its purse strings in April, gradually dropping the rate back to 8.75 percent in December.
President Dmitry Medvedev said Thursday that the mortgage rate might fall back to its pre-crisis level or even reach the low of 6 percent to 8 percent.
"I think that [a rate of] 10.5 percent to 11 percent for our country would be normal. But something closer to 6 percent to 8 percent is considered optimal throughout the whole world," he said at a meeting with students in Tomsk.
He didn't give a time frame for the change, but Finance Minister Alexei Kudrin said last week that interest rates in general could decrease to 10 percent over the next 2 to 3 years because of a falling inflation rate.
"Only by means of cutting inflation can we lower the interest rate in the end, and that's happening now. Inflation is decreasing, that's why I think that we'll come back to the rate of 10 percent over 2 to 3 years," Kudrin said in Tomsk Thursday.
Inflation was 8.8 percent in 2009, and the government expects that it won't exceed 7.5 percent this year.
But government pressure for cheaper mortgages may be misplaced, said Oleg Repchenko, director of the IRN.ru real estate portal.
"People need cheap apartment prices rather than low mortgage rates," he said, adding that a mortgage rate of 6 percent to 8 percent in Russia was possible in the long term only if the government could find cheap money to subsidize mortgages.
Prime Minister Vladimir Putin said last week that a high level of government financing was a necessary condition for mortgage rates to decrease.
The government has allotted 40 billion rubles ($1.3 billion) of the total of 250 billion rubles appropriated in the budget this year to support mortgage, he said.
But Repchenko said cheap mortgage loans might negatively affect the real estate market.
"As the mortgage becomes cheaper, more people will start thinking of buying an apartment. The growing demand may cause prices to increase, and as a result housing may become even less affordable than it was before the mortgage appeared in Russia," he said.
The Moscow Times: Retail Deposits Continue Upward Trend
16 February 2010
Reuters
Retail deposits are set to continue growing — after a record jump in 2009 — and the share of foreign currency accounts will continue to fall as the economy recovers, the state Deposit Insurance Agency said Monday.
Retail deposits grew by 27 percent or 1.58 trillion rubles ($52 billion) last year — the biggest increase in recent years — the agency said, adding that "this points to a recovery of trust in the banking system and an increase in savings activity among the population."
Retail deposits were crucial for Russian banks as the global financial meltdown has effectively closed public debt markets from the second half of 2008 while Russians rushed to take their money out of banks and change rubles into dollars or euros as the national currency was devalued.
But the ruble exchange rate stabilized in early 2009, while the economy started to recover that summer from its first recession in a decade and — with most banks managing to survive the crisis — Russians gradually started to put their money back into bank accounts.
The agency estimated that this year, deposits could grow by 1.50 trillion rubles to 1.65 trillion rubles ($50 billion to $55 billion), while the share of foreign currency holdings could gradually fall to 23 percent to 25 percent by the start of 2011 from 28 percent as of Dec. 1, 2009.
Almost half of the 520 billion rubles that was put into banks in the final 1 1/2 months of the year — when people received year-end bonuses — was placed in current accounts or on demand deposits.
"In the [event] of falling interest rates on deposits, some of this money may in the near future move to the stock market or the real estate market," the agency said.
The data also showed that Russians remained wary of small banks, with the 30 largest ones accounting for 79.3 percent of all deposits. State-controlled Sberbank saw its share of deposits fall slightly to 49.4 percent from 51.8.
Russia wage arrears up in Jan, but well off peaks
MOSCOW, Feb 15 (Reuters) - Russian wage arrears edged up in January, but still posted their second smallest reading in the past 15 months, data showed on Monday, in further proof that the economy is on a slow but steady recovery path from recession.
Wage arrears stood at 4.12 billion roubles ($136.6 million) on Feb. 1, affecting 200,000 people, the Federal Statistics Service said.
That represents a 15.5 percent increase on the month, but is still half as much as was owed in wages at the height of the crisis in mid-2009, when they were a key cause of social unrest with some 500,000 people affected.
Arrears peaked at 8.78 billion roubles on June 1, 2009, and the situation then started to improve again in tandem with the first shoots of recovery in the broader economy.
Over half of the wage arrears are in the manufacturing sector, which has been hard hit by the slump in domestic demand, the data for January showed.
Most of the arrears -- 83 percent -- were accumulated in 2009, while 14 percent date back to 2008 or even earlier.
Wage arrears had been on a downward trend since the previous recession finished in 1999. But they started to pick up in 2008, when the slump in world demand for commodity and energy exports hit Russia, while the global credit crunch and a devaluation of the rouble put further strain on companies' finances.
(Writing by Toni Vorobyova; editing by Dmitry Sergeyev and Stephen Nisbet) ($1=30.16 Rouble) Keywords: RUSSIA WAGES/
(antonina.vorobyova@; Tel: +7495 7751242, Reuters Messaging: antonina.vorobyova.@)
Business, Energy or Environmental regulations or discussions
Reuters: Russian markets -- Factors to Watch on Feb 16
MOSCOW, Feb 16 (Reuters) - Here are events and news stories that could move Russian markets on Tuesday.
You can reach us on: +7 495 775 1242
STOCKS CALL (Contributions to moscow.newsroom@):
OTP Bank: The external background is neutral today. We expect the market to open flat, with activity likely to resume after the U.S. market opening.
Troika: The Russian equity market rebounded from a two-month low on Monday; crude is up slightly today; stocks are up in Japan on better than expected earnings reports. We are opening our prices up 0.5 percent.
EVENTS (All times GMT):
MOSCOW - Greek Prime Minister and Foreign Minister George Papandreou will meet Russia's leaders.
MOSCOW - Israeli Prime Minister Benjamin Netanyahu will meet Russian counterpart Vladimir Putin -1300.
MOSCOW - Prime Minister Vladimir Putin will chair cabinet meeting -1400.
MOSCOW - President of Georgia's breakaway region of Abkhazia, Sergei Bagapsh, will arrive on official visit.
KIEV - Ukraine's Parliament is expected to vote on the date of Viktor Yanukovich's inauguration.
MOSCOW - Russia's Finance Ministry to place up to 100 billion roubles of temporarily free budget funds in four-month deposits at commercial banks at a minimum bid rate of 7.25 percent.
MOSCOW - Russia's central bank to hold an auction for five-week collateral-free loans for commercial banks, with 5 billion roubles on offer at a minimum bid rate of 11.25 percent.
MOSCOW - The Economist Conferences holds the 12th Russia Business Roundtable.
IN THE PAPERS:
Business daily Vedomosti reports that Russian oil trading heavyweight Gennady Timchenko will invest into construction of a business terminal at the Moscow's Sheremetyevo airport.
Kommersant writes that ecologists from the Russian office of the World Wildlife Fund have ceased cooperation with Olympstroy after the state corporation responsible for coordination of the Olympic construction in Sochi repeatedly ignored its proposals.
Mangrove Capital Partners and ABRT are talking to LexisNexis and ProQuest on the sale of Russian Internet search engine Quintura for up to $100 million, Kommersant writes.
TOP STORIES IN RUSSIA AND THE CIS: TOP NEWS:
• ISRAEL ASKS RUSSIA FOR IRAN "SANCTIONS WITH TEETH"
• MISSILE THREAT SIGNALS U.S./RUSSIA RESET STRAINS
• MEDVEDEV INVITES UKRAINE PRESIDENT-ELECT TO MOSCOW COMPANIES/MARKETS:
• RUSSIA'S DERIPASKA EYES POWER UNIT LISTING-SOURCES
• RUSSIA TYCOON MULLS HONG KONG IPO OF GOLD ASSETS
• GAZPROM NEFT SEES 2010 OIL OUTPUT UP 3 PCT
• LUKOIL IMPROVES 2009 INCOME OUTLOOK
• SURGUT EYES FLAT 2010 OIL OUTPUT
• SBERBANK INCREASED JAN PROFIT 3-FOLD
• IKEA SACKS TWO EXECUTIVES OVER RUSSIA BRIBES ECONOMY/POLITICS:
• RUSSIA OUTPUT SURGES IN JAN, HELPED BY BASE EFFECT
• TABLE-RUSSIA JAN INDUSTRY OUTPUT UP 7.8 PCT YR/YR
• RUSSIA WAGE ARREARS UP IN JAN, BUT WELL OFF PEAKS
• BELARUS CUTS RATES FOR 2ND TIME IN 3 MONTHS
• BELARUS DETAINS 40 ETHNIC POLISH ACTIVISTS ENERGY:
• RUSSIA TO CUT MARCH OIL EXPORT DUTY TO $253.6/T
• RUSSIA JAN BALTIC COAL EXPORTS FALL - SOURCES COMMODITIES:
• RUSSIAN GRAIN PRICES DECLINE FOLLOWING WORLD TREND
MARKETS CLOSE/LATEST:
RTS 1,377.1 +0.08 pct
MSCI Russia 760.8 +0.87 pct
MSCI Emerging Markets 925.7 +0.10 pct
Russia 30-year Eurobond yield: 5.431/5.391 pct
EMBI+ Russia 202 basis points over
Rouble/dollar 30.1300
Rouble/euro 41.1400
NYMEX crude $74.52 +$0.39
ICE Brent crude $73.10 +$0.59
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Keywords: RUSSIA FACTORS/ (maria.kiselyova@, +7 495 775 12 42, Reuters Messaging: maria.kiselyova.@)
Stock Markets Review: Russian stock market daily morning report (February 16, 2010, Tuesday)
By Veles Capital
The new week started for the Russian share market with cautious purchases, which seemed to be reasonable after almost a week-long reduction. At the same time the foreign background was relatively contradictive. On one hand, the oil prices were under pressure of the data on fuel supply in the U.S. On the other, the European exchange indices were climbing up against the background of good report by Air Liquide, and also the corporate news from British Airways and Iberia Lineas Aereas. Besides, the alarms on PIG states’ economies eased up. As a result, FTSE, DAX and CAC40 added about 0.5% during the day. Finally the positive trend was indicated on behalf of the futures for the American indices, Along with that the trade volume was not at high levels, which was due to a day-off in the U.S. At the same time the principal activity was focused on the shares of Sberbank and Gazprom. The volume of deals on the other shares was insignificant.
Main news
Gazprom protected its rights on the former regime of customs procedures for gas.
In the quarter report for 4Q 2009 Gazprom announced having attained cancellation of a number of customs rules and decisions valid earlier, which provided indirect loss in terms of increase of working capital and freezing overpaid customs duties.
By the results of 2009 LUKOIL expects the net profit to be at the level of 7 bn USD.
Net profit of LUKOIL in 2009 by US GAAP formed about 7 bn USD versus 9.144 bn USD within 2008, imparts the detailed press-release by the Russia Today TV channel referring to the interview with the head of LUKOIL Vagit Alekperov.
Other news
- Gazprom Neft provided data on selling products in 2009.
- In the current year Surgutneftegas will keep the extraction at the level of 2009.
- Evrosibenergo might conduct IPO in Hong Kong this year.
- In 2010 MMC will build up the output by 27%.
- AvtoVAZ decided it is time to raise the prices.
The Moscow Times: Law Loosening Certification Regulations Goes Into Effect
16 February 2010
The Moscow Times
A law went into force Monday allowing producers of food, alcohol and cosmetics to bypass earlier requirements to receive an official certification of quality.
The law, signed by the government on Dec. 1, allows producers to write their own declaration that the products meet the government's health and safety standards. The move is intended to ease the bureaucratic burden on business, allowing producers to vouch for their goods based on their own research or verification from a laboratory of their choosing.
Prime Minister Vladimir Putin said the share of producers required to receive state certification will drop from 78 percent to 54 percent. This will not only "debureaucratize the procedure," he said, but should result in savings for business of about 700 million rubles ($23 million), Interfax reported.
Producers who violate state regulations will be fined by the Federal Consumer Protection Agency from 20,000 rubles to 300,000 rubles, depending on the severity of the violation and potential threat to health or safety, Vedomosti reported. Extreme cases could result in two years' imprisonment.
Businessmen are optimistic about the change and are confident that the measures won't result in a drop-off in quality control.
"Those who have been striving to produce quality goods will continue to do so, regardless of whether they need a certification or not," said Nikolai Ostarkov, managing director of Delovaya Rossia, a business lobbying group.
"Those who tried to sell poor quality products could just buy certificates before. There was a whole corrupt system," he said, adding that the main issue now is to ensure that the liberalization is real: "If it's the exact same procedure controlled by the same authorities, the change will be in name only."
Israeli Diamond: Diamond giant Alrosa reviews 2009's performance
[pic]16.02.10, 10:48 / Mining [pic]
Russia's largest diamond company Alrosa held an executive board meeting last week in order to review the unaudited production results and financial performance of the Alrosa mining and processing divisions for 2009.
According to the diamond company's statement, the technical and performance indicators of the processing plants and dredges met all the target parameters, and the aggregate rough diamond output by the Alrosa Group amounted to $2.264 billion
The agenda also included the presentation of a feasibility study for the mining and processing project at the Lomonosov Mine and the OJSC Severalmaz development prospects prepared by Yakutalmaz Research & Design Institute. The expected life of the project is 17 years. According to Alrosa projections, in 2010-2026 the total of 54.8 million tons of ore will be processed.
A feasibility study for construction of another processing plant, with a capacity of 3 tons of ore per annum, was also introduced. The plant is to be commissioned in Q4 2013 and is expected to attain its design capacity in Q1 2015.
UniCredit: Zoloto Kamchatki may IPO end of this year
Unicredit
February 16, 2010
Zoloto Kamchatki, a 71,000oz pa gold miner controlled by Viktor Vekselberg, could hold an IPO in 4Q10, the businessman announced yesterday. Although we like the timing of the potential placement, as gold prices are seasonally highest in second half of the year, the small size of the company could result in a significant discount to bigger peers
RenCap: Construction of Mechel's Elga rail link gets under way
Renaissance Capital, Russia
Tuesday, February 16, 2010
Event: According to Prime-Tass, Permdorstroy has started building a 200 km rail link between Mechel's Elga coal deposit and the Trans-Siberian Railway. The project envisages the construction of 194 bridges, and the railway will have turnover capacity of 25mn tpa of coal. Mechel and Permdorstroy signed the project agreement in late Jan 2010, and the link is scheduled for completion in Sep 2010.
Action: Positive for Mechel, in our view.
Rationale: The project's schedule is in line with Mechel's plans to start production at the Elga deposit in 2011. We have previously noted that Mechel may revisit its plans to build a 25mn tpa capacity coal terminal in Russia's Far East. Overall, Elga remains the largest coal deposit in Russia with proven coal reserves of 2.7bnt. The Elga project is focused on supplying coking and thermal coal to Asian markets, including China and Japan which currently face supply shortages. The Elga deposit secures a shorter transportation shoulder to the Far East and the Chinese border than the Kuznetsk coal basin. Mechel is targeting the production of 15mn tpa of coal at Elga in 2014-2015, although the exact split between thermal and coking coal remains a key unknown parameter of the project.
Boris Krasnojenov
Bloomberg: Fiat’s Russian Unit to Make 150,000 Jeeps a Year, Vedomosti Says
By Maria Ermakova
Feb. 16 (Bloomberg) -- Fiat SpA’s Russian venture with OAO Sollers plans to produce as many as 150,000 Jeep sport-utility vehicles a year, Vedomosti reported, citing analysts who participated in a conference call with the company.
To contact the reporter on this story: Maria Ermakova at mermakova@
Last Updated: February 16, 2010 01:27 EST
UniCredit: CTC Media TV ad time sellout is up 20%-30% yoy to almost 100%, price hikes possible in 2H10
Unicredit
February 16, 2010
Topic: The sellout ratio of Russian TV channels' GRP inventory (the contacts with the audience they offer to advertisers) is up 20%-30% yoy to almost 100%, according to Andrey Brayovich, the head of Aegis Media, one of the largest ad agencies in Russia. In an interview with Kommersant, Brayovich said Gazprom Media, the second biggest middleman on the TV ad market, has already hinted at a price hike in 2H10, and he believes that Video International (VI) might follow suit.
He also believes that after the new advertising law comes into force in 2011 (capping the market share of a single media sales house at 35%) the most probable configuration of the local TV ad market will be a shift from current duopoly (VI and Gazprom Media holding about 90% of the market) to a four-way split: Channel One, VGTRK (channels Russia 1, Russia 2, Russia K, Russia 24), NTV+TNT, and CTC Media would be the new centers, with smaller channels choosing to cling to one of them as long as they stay under the 35% cap. Brayovich is confident that VI will stay in the market, given its professionalism.
Our view: The views of an industry insider, coming on top of earlier reports that TV ad prices were staying flat in 1H10, make our 2010 TV ad market forecast start to look too conservative.
We may have overestimated the power of advertisers and underestimated the abilities of channels and sales houses to defend prices: we believed that the sellout would increase to 100% in 2010, but this increase would come at the expense of certain discounts. We currently forecast the TV ad market to decline by 5% in RUB terms to RUB 104bn (and grow by 1% in USD terms to USD 3.5bn), although the risk appears to be increasingly on the upside.
Conclusion: We currently rate CTC Media Buy with a 12M TP of USD 22.4, but we plan to revise our model following the company's presentation of its 2009 US GAAP results on 26 February.
Bloomberg: Blavatnik Has ‘Wherewithal’ for U.S. Media Deals Including MGM
By Ronald Grover
Feb. 16 (Bloomberg) -- Billionaire industrialist Len Blavatnik, a bidder for Metro-Goldwyn-Mayer Inc., is interested in U.S. entertainment assets to take advantage of Hollywood’s retreat from independent movies, according to his top media adviser.
Blavatnik’s Access Industries “is well capitalized and has the financial wherewithal to be on the short list of potential buyers for major entertainment properties,” Stewart Till, chief executive officer of the company’s Icon film distribution business in London, said in an interview. New York-based Access is a second-round bidder for MGM, two people with knowledge of the situation said on Feb. 3. Till declined to comment on the auction.
Access Industries could use assets from Hollywood, the world’s film capital, to complement its U.K.-based Top Up TV, which broadcasts cable channels on digital spectrum, and the Russian TV production company Amedia. In November, Blavatnik bought the U.K. distribution arm of Mel Gibson’s Icon Group, gaining international rights to the actor’s work, and a film library that includes “Driving Miss Daisy” and “Dances with Wolves.”
“As larger studios close down specialty divisions like Miramax and Paramount Vantage, there is a gap for a domestic distributor with a certain attitude, much leaner headcounts and the ability to make films for a reasonable budget,” said Till, who was president of Polygram Filmed Entertainment in the 1990s.
Access Industries also has interests in real estate, natural resources and telecommunications. Its media properties are beginning to work together, Till said. Icon recently agreed to help finance and distribute a movie starring Gibson called “How I Spent My Summer Vacation” and is in talks to air its movies on Top Up TV, he said.
Interested Parties
Management of Los Angeles-based MGM, which put itself up for sale in November after falling behind on $3.7 billion in debt, has briefed Access Industries on the studio’s activities, said three people with knowledge of the situation, who declined to be identified because the talks are private.
Executives also are making presentations to other second- round bidders, the people said. The interested companies include Lions Gate Entertainment Corp., the independent film studio, Warner Bros. parent Time Warner Inc., John Malone’sLiberty Media Corp. and Elliott Management Corp., which is working with film financier Ryan Kavanaugh. Officials for the companies declined to comment.
The bidders are seeking MGM’s 4,100-film library, including “James Bond” movies. The studio, founded in 1924, sold many of its early pictures such as “The Wizard of Oz” prior to a $5 billion buyout in 2005 by private equity firms led by Providence Equity Partners and TPG.
‘Hot Tub Time Machine’
MGM released one movie in 2009, and plans three this year, including the “Hot Tub Time Machine” in March, according to film researcher Box Office Mojo in Sherman Oaks, California.
Till, who says he advised Blavatnik on last year’s Icon purchase, plans to expand Icon’s current distribution operations in the U.K. to Germany, Spain and Italy, and is focused on expansion in the U.S. as well.
Any deals must “fit into our overall strategy” and be available at “appropriate prices,” Till said.
Mike Sitrick, a spokesman for Blavatnik, 52, wouldn’t comment on whether his client is also interested in the Miramax library that the Walt Disney Co., the world’s largest media company, is considering selling. The Ukrainian-born U.S. citizen is part owner of TNK-BP, the Russian venture of BP PLC, and was reported to be worth $5 billion last year by Forbes magazine.
At Polygram, Till said he oversaw production of moderately priced films such as “Four Weddings and a Funeral” and “The Usual Suspects.” From 2002 to 2006, he was CEO of United Pictures International, which distributed movies outside the U.S. for Paramount Pictures and Universal Studios, according to a biography provided by his spokesman.
MGM Auction
Icon has discussions with Amedia on distributing English- language films in Russia and intends to advertise its films on Perform, which distributes sports programs on TV, mobile phones and online sites. Access Industries holds a “substantial stake” in Perform, according to its Web site.
Matthew Harrigan, an analyst with Wunderlich Securities, estimated last month that MGM is worth $1.6 billion to $1.7 billion. When the studio put itself up for sale in November, creditors were seeking at least $2 billion, people with knowledge of the situation said then.
Providence, based in Providence, Rhode Island, has a 29 percent stake in MGM, while TPG, based in Fort Worth, Texas, has 21 percent. Sony Corp., the owner of Columbia Pictures, and Comcast Corp., the largest U.S. cable TV company, each own 20 percent. DLJ Merchant Banking Partners has 7 percent, and Quadrangle Group owns 3 percent.
To contact the reporter on this story: Ronald Grover in Los Angeles at rgrover@;
Last Updated: February 16, 2010 00:13 EST
Activity in the Oil and Gas sector (including regulatory)
UniCredit: China seeks to double the volume of Russian oil supplied through East Siberian link
Unicredit
February 16, 2010
Topic: China may seek to double the volumes supplied by Russian oil companies through ESPO in order to satisfy the growing demand for crude and feed the planned Tyanzin refinery, Kommersant writes, citing CNPC. The 15mn tons of oil currently planned for annual delivery to China from ESPO through Skovorodino could then be directed to other regions of the country.
Our view: We believe the statements further underline the need to continue the current duty holiday for East Siberian upstream projects, whose development does not make economic sense without them. We expect the announcement to be used as an additional argument in the ongoing debate inside the government over the structure and length of the duty holiday.
Conclusion: We continue to see the tax holiday as a key tool to allow the companies to recover their initial investments, and believe it will remain in place, likely matched against the total saving of start-up costs to develop the new fields.
Reuters: LUKOIL raises its forecast for 2009 net profit
Mon Feb 15, 2010 8:40pm IST
MOSCOW, Feb 15 (Reuters) - LUKOIL (LKOH.MM), Russia's second biggest oil producer, increased its 2009 net profit forecast to around $7 billion from a previous forecast of $5-6 billion and said it hoped 2010 will be better.
"For the crisis-hit 2009 year net income totalled $7 billion. The result is satisfactory. It will allow us to invest in projects we launched last year. And 2010 will definitely be better," the company's head Vagit Alekperov told state television channel Russia Today.
The 2009 net figure would still be 23 percent less than the $9.1 billion earned by the company in 2008 as oil producers around the world battled falling prices and global recession-hit demand.
LUKOIL, 20 percent owned by U.S. oil major ConocoPhillips (COP.N), was expected to report 2009 financials in late March or early April.
Net income is set to exceed profit at Russia's largest crude producer, Rosneft (ROSN.MM), which earned $6.4 billion in 2009. (Reporting by Katya Golubkova; Writing by Vladimir Soldatkin, Editing by John Bowker and Dan Lalor)
Bloomberg: Rosneft Rises on Speculation Export Tax Relief May Be Extended
February 15, 2010, 05:01 PM EST
By Jason Corcoran
Feb. 15 (Bloomberg) -- OAO Rosneft, Russia’s largest oil company, climbed to the highest level in a week on speculation a government group may propose extending tax relief for some oil fields in eastern Siberia.
The stock rose as much as 1.9 percent and was 1 percent higher at 225 rubles at 2:42 p.m. in Moscow.
The group, set up by Finance Minister Alexei Kudrin and Igor Sechin, deputy prime minister and Rosneft chairman, is analyzing East Siberian oil fields and the effect they have on the government budget. Rosneft has dropped 10 percent since Vedomosti reported Jan. 26 that Kudrin wanted to end tax exemptions on some oil fields in the region where the company’s Vankor oilfield, the country’s largest oil development, is located.
“The meeting today could produce positive catalysts for Rosneft,” said Vadim Mitroshin, senior oil and gas analyst at Otkritie Financial Corp in Moscow. “We would be watching Sechin’s remarks carefully for comments on tax relief and a timeframe for extending it.”
Rosneft may save as much as $3.3 billion this year with the extension of tax exemptions, according to Otkritie estimates.
--Editors: Stephen Kirkland, Alex Nicholson
To contact the reporter on this story: Jason Corcoran at +7-495-771-7734 or Jcorcoran13@
To contact the editor responsible for this story: Gavin Serkin at +44 20-7673-2467 or gserkin@
Reuters: Russia's Bashneft sees 2010 crude output up 8 pct
Tue Feb 16, 2010 8:22am GMT
MOSCOW, Feb 16 (Reuters) - Russian mid-sized oil firm Bashneft (BANE.RTS), owned by holding company Sistema (AFKC.MM), plans to raise its crude production by around 7.8 percent this year, Bashneft said on Tuesday in its quarterly report.
The company, which was bought out last March by Sistema, said it plans to increase oil output to 13.195 million tonnes in 2010 due to faster greenfield development.
Sistema, whose main asset is Russia's top mobile operator, MTS (MBT.N), paid $2.5 billion for control of Bashneft and five other energy firms in which it already owned blocking stakes of up to 30 percent.
This month, Sistema has also applied to the Federal Antimonopoly Service for permission to buy up to 49 percent in mid-sized oil company Russneft. [ID:nLDE61B1S0]
Bashneft needs additional crude to feed its refineries. (Reporting by Anton Doroshev; writing by Vladimir Soldatkin; Editing by Hans Peters)
Gazprom
Reuters: Russia's Gazprom Neft sees 2010 oil output up 3 pct
Mon Feb 15, 2010 3:25pm GMT
MOSCOW, Feb 15 (Reuters) - Gazprom Neft (SIBN.MM), the oil arm of Russia's energy giant Gazprom (GAZP.MM), expects to increase crude output in Russia by 3 percent for the second straight year in 2010 to 48.6 million tonnes (973,330 barrels per day).
The forecast, which the company gave as part of its report to Russian accounting standards on Monday, compared to a 3.5 percent rise last year to 47.88 million tonnes.
The company secured control over mid-sized oil company Sibir Energy in 2009, and also controls Serbian oil monopoly NIS.
In December, the firm's Deputy head Boris Zelberminst said the company expected its overall output to rise to 140.000 tonnes a day, translating into 1.02 million bpd, allowing the company to become Russia's fifth firm to reach the landmark level. [ID:nGEE5B0113]
Also last year, a Gazprom Neft-led consortium also won the rights to develop huge Badrah oilfield in Iraq. (Reporting by Katya Golubkova; writing by Vladimir Soldatkin, Editing by John Bowker)
UPI: Gazprom builds East Russia ties
Published: Feb. 15, 2010 at 8:40 AM
MOSCOW, Feb. 15 (UPI) -- Russian gas giant Gazprom met with Japanese executives to discuss bilateral ties to advance gas projects in eastern Russian, the energy monopoly announced.
Alexander Ananenkov, the deputy chief executive at Gazprom, welcomed pipeline manufacturer Itochu Corp. Managing Director Toru Nomura to Gazprom headquarters in Moscow to discuss projects in eastern Russia, ITAR-Tass reports.
Gazprom said both sides discussed the gas transportation network Sakhalin-Khabarovsk-Vladivostok specifically.
Gazprom in 2009 said it would focus a significant amount of its investment efforts on developing the resource potential in the east.
Plans are in the works for a gas pipeline from Sakhalin Island to onshore facilities at Vladivostok, Russia's largest port city on the Pacific Ocean, through the Far East with an annual capacity of 1.1 trillion cubic feet.
Gazprom said the favorable geological conditions were a key reason to focus on the resource potential in the region.
Sakhalin-Khabarovsk-Vladivostok work begins in July, Gazprom said.
Focus: Gazprom to sell Bulgarian electricity
[pic][pic][pic]16 February 2010 | 04:50 | FOCUS News Agency [pic][pic][pic]
Sofia. Gazprom Marketing & Trading, a UK-registered wholly-owned subsidiary of the Gazprom Group, will most probably sell electricity generated in Bulgaria, the Standart daily disclosed. It is expected that it will be issued a license from the State Energy and Water Regulatory Commission (SEWRC) today. It applied for a license in August 2009. Gazprom Marketing & Trading is currently operating on the market in the UK, France, Germany and other EU members.
RenCap: Gazprom resolves its largest dispute with Russian customs; positive for working capital
Renaissance Capital, Russia
Tuesday, February 16, 2010
Yesterday (15 Feb) Gazprom, in its Russian regulatory filing (4Q09 quarterly report), disclosed that its largest dispute with the Federal Customs Service (FCS) has been resolved. The conflict began in Apr 2009, when the FCS changed the procedure for export gas customs clearance and requested Gazprom to submit additional paperwork before accepting its final customs declarations. Gazprom delivers gas sold to European customers to their respective pipelines rather than on the Russian border, previously a two-step procedure was in place, with Gazprom initially submitting an interim declaration (when gas crosses Russian border) and later on a final declaration when gas is off-taken by the customer in Europe. The natural gas export duty is 30% of the contract price.
In Apr 20009, the FCS started requiring final declarations to be supported by transfer certificates signed by European customers at gas metering points located along the Russian border on the key export pipelines, which was clearly not feasible. Without this paperwork, the FCS refused to accept final declarations, which, for Gazprom, meant the necessity to pay in full customs duties based on interim declarations (and, we understand, often there was an inability to credit past advances paid under interim declarations against current payables for final declarations). Because gas is pumped continuously and not in separate batches and is not earmarked for individual customers when it crosses the border, the contract prices may differ. We understand it was Gazprom's practice to specify reasonably high prices in interim declarations to ensure that the FCS does not suspect manipulation or misreporting. Gazprom estimated in its 4Q09 report that over Apr-Dec 2009, in excess of RUB60bn was overpaid. This also had negative implications for the release of underground storage gas and Gazprom's ability to obtain VAT rebates on exported volumes.
As reported yesterday, the FCS cancelled its Apr 2009 mandate on 3 Feb 2010, reverting to the previous procedure. We earlier noted that on the back of these developments, Gazprom's working capital was boosted by approximately $2bn (click here to view Gazprom: Key credit-relevant messages from investor day in our 8 Feb 2010 Fixed Income Daily Snapshot). We do not expect a one-off rebate from the federal budget on overpaid amounts, but we do think they will be credited against future export duty payables. We expect this component of Gazprom's working capital to normalise in 1H10, creating an additional flow of cash to the company.
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