Russia



Russia 111202Basic Political DevelopmentsRussia to build Ghana’s first nuclear power plant - A Daily Graphic publication sighted on the Energy Ministry’s website December 1, 2011 said, the nuclear plant, undertaken by the Ghana government in collaboration with the International Atomic Energy Agency (IAEA), is expected to be completed by 2020 with a medium-size reactor also expected to be completed by 2018.Japan parliament opposition against nuke coop agt with Russia - Ratification of the agreement on cooperation with Russia in the sphere of peaceful use of nuclear energy has faced unexpected resistance from the opposition parties in the parliament of Japan.GOP Lawmaker Blocking Obama's Pick for Russia EnvoyObama Moscow Envoy Nominee Blocked - But according to a source in Congress who requested anonymity, Republican Senator Mark Kirk, from the state of Illinois, has placed what's known as a "hold" on McFaul's nomination.Russian missile cruiser Varyag returns home after Pacific trip - During the tour, the task force visited the port of Maizuru in Japan, the U.S. Mariana Islands and paid a four-day visit at the Canadian port of Vancouver. It also took part in the Pacific Eagle-2011 exercise with the U.S. Navy.Bal-E missile system to defend Russia coast of Caspian Sea - “During the 2012 training year the rocketeers of the Caspian Flotilla will perform at least three rocket launches on sea surface targets imitators,” Gorbul said.Russia to build improved sub of Borei-A class next year Russian ship to supply Argentine stations - The MV Vasily Golovnin has left the Russian Far Eastern port of Vladivostok on an expedition to deliver polar researchers and equipment to Argentina’s Antarctic stations Esperanza, San Martin, Marambio, Orcadas and Petrel.Russia’s Vasily Golovnin ship leaving for Antarctica expeditionInterview by Russian MFA Spokesman Alexander K. Lukashevich to RIA Novosti in connection with the forthcoming participation of the Russian Foreign Minister Sergey Lavrov in the Bonn International High Level Conference on Afghanistan [Link]Russia, Europe Agree on Overflights - "From Jan. 1, 2014, any charges EU airlines have to?pay for?flying over Russian territory will be cost-related and?transparent. They will not discriminate between airlines," the?EU said in?an e-mailed statement.Ukraine Gets Third 6-Month Extension on $2Bln VTB Loan Russia reminds death sentence exists in democratic countries - “There is a number of advanced democracies which preserve (capital) punishment for very grave crimes and not very grave crimes,” foreign ministry spokesman Alexander Lukashevich said commenting on the death sentence passed in Belarus to two organizers of a terrorist act in Minsk metro in April that killed 15 people and injured scores of others.Road accident wounding Sverdlovsk governor to be investigatedPatriarch Kirill fears all Christians could leave Arab world - "One of the most symbolic tendencies of our time is a mass exodus of Christians from the Middle East and North Africa, caused by an unprecedented increase in violence against religious minorities in the region," Patriarch Kirill said at a meeting with international conference participants in Moscow.Ingushetia MPs seek alcohol ban on Thursdays, Fridays Homosexuality bill can be passed at federal level – Kozak: Lawmakers should consider putting forward the bill banning homosexual and pedophile propaganda at the federal level, Deputy Prime Minister Dmitry Kozak said.Russia wants 800 million euro from FIFA for 2018 World Cup - Russia wants to get 800 million euro from FIFA for the 2018 World Cup but the association so far agreed to provide 600 million, Russian Sport Minister Vitaly Mutko said after a meeting with FIFA President Sepp Blatter and General Secretary Jerome Valcke on Thursday.Austrian football fans beaten in Moscow get no major injuriesRussian Press at a Glance, Friday, December 2, 2011Medvedev urges voters to elect ‘viable parliament’Address by Dmitry MedvedevFour polling stations for Duma elections to be opened in CanadaRamzan Kadyrov urges Chechnya to take part in parliamentary pollsSlowly but Surely - The Duma Elections Will Promise No Great Surprises, But Analysts Are Taking the Long View Reforms in Russia: Going in circles for 20 years - RIA Novosti economic commentator Vlad GrinkevichRussian Opposition Parties Unite In Udmurtia - More than 1,500 activists from several opposition parties united to rally in the central Russian city of Izhevsk ahead of parliamentary elections on December 4, RFE/RL's Russian Service reports.Young people leaving Russia to "escape Putin" - By Benedikt von Imhoff and Ulf MauderRussian Authorities Pressure Elections Watchdog - The organization, Golos, has already posted reports of more than 4,500 violations of election law in the prelude to the voting on Sunday. Golos receives financing from Western governments, including the United States, and some Russian officials have suggested that the organization’s real aim is to incite an Arab Spring-type revolution in Russia. Russian soldiers to be woken with 'pleasant music' ahead of elections - Russian soldiers are to be woken with "pleasant music" before they go to vote on Sunday in parliamentary elections, and will be encouraged to watch state television. TV censorship crosses time zones in Putin's Russia - By SOFIA JAVED Our Friends the Russians - The Kremlin picks a fight with America in time for elections.Can Russia Help Us Withdraw From Afghanistan? - By DOV S. ZAKHEIM and PAUL J. SAUNDERSBase-less: new Kyrgyz president wants US outKyrgyzstan: Russia Multiplying Citizenship Hurdles'No reason for divorce' - NATO’s Deputy Assistant Secretary General talks about relations with RussiaRussia should forget ‘old granny Europe’ - Political scientist Aleksandr Rahr advises Moscow to take a closer look at the 2020 model of Europe??National Economic TrendsRuble Weakens for Second Day Against Dollar After Urals Crude Oil RetreatsBanks have 645.6 bln rbs on CBR correspondent accounts on December 2.Russia has major reserves, further privatization – good sourceTEXT-Fitch: Most Russian government funding utilised by state banksBusiness, Energy or Environmental regulations or discussionsRussian markets -- Factors to Watch on Dec 2Gazprom Gains on Dividend as RTS Futures Rise: Russia OvernightPolymetal okays share purchase offer Inter RAO ups stake in OGK-2 Bank St. Petersburg net profits surge 150% to 5.638 bln rubles for 9MBank St. Petersburg Q3 net profit down 8 percentRostelecom to reshape retail operations Rostelecom, Yota ink 4G deal AvtoVAZ November sales down 17 percentSiemens closes sale of Power Machines stake to Mr MordashovFAS APPROVES UNILEVER-KALINA DEALMagnit secondary offering priced at $85/shareMagnit retailer sets price per share for SPO at $85EBRD lends $100 million to Russia’s FESCOHigher Dividends Expected Across Russia, Gas Prices - Kingsmill Bond, chief Russia strategist at Citigroup Inc., talks about investing in Russia and the increase in gas prices.Activity in the Oil and Gas sector (including regulatory)Urals tastes better for Europeans - Russia could gain on rising tension between the Western powers and Iran. UPDATE 1-Russia Nov oil output at post-Soviet record highTABLE-Russia Nov oil output stable at post-Soviet record highTABLE-Russian Nov gas production up 12.5 pct vs OctTurkey to Extend Russian Gas Contract Via Western Line to JuneTurkey intends to preserve gas supplies via Blue Stream pipelineRosneft hinting Norwegian partnerLess Russian oil around the coast of NorwayGazpromRussia's Gazprom Neft seeks to buy seven fuel stations in BulgariaGazprom Climbs to Highest in Two Weeks on Dividend ReportGazprom, RWE discuss joint ventureGazprom Says Not Involved in Croatian Corruption CaseMarket Council also against Gazpromenergoholding and IES Holding merger------------------------------------------------------------------------------------------Full Text ArticlesBasic Political DevelopmentsRussia to build Ghana’s first nuclear power plant last updated at Friday, December 2, 2011 9:09 AMRussian technocrats will build Ghana’s first nuclear power plant as preparatory works are underway, officials at the Ghana Atomic Energy Commission (GAEC) have said.A Daily Graphic publication sighted on the Energy Ministry’s website December 1, 2011 said, the nuclear plant, undertaken by the Ghana government in collaboration with the International Atomic Energy Agency (IAEA), is expected to be completed by 2020 with a medium-size reactor also expected to be completed by 2018.Speaking at a one-day seminar on IAEA Project Planning for Sustainable Development Programme in Accra, the publication cited Prof Benjamin Nyarko, Deputy Director-General of GAEC, saying a team led by the Minister of Energy, Dr Joe Oteng-Adjei, visited Russia recently and met with some experts in the field of nuclear energy to discuss details of the plant.The project is aimed at developing a long-term comprehensive energy supply plan for Ghana.By Ekow Quandzie11:07?02/12/2011ALL NEWSJapan parliament opposition against nuke coop agt with Russia, December 2 (Itar-Tass) — Ratification of the agreement on cooperation with Russia in the sphere of peaceful use of nuclear energy has faced unexpected resistance from the opposition parties in the parliament of Japan.Together with similar agreements concluded with the governments of Vietnam, Jordan and South Korea, it was approved on Friday by the lower house Foreign Affairs Committee. After that it was planned to put the four documents to the vote at the plenary meeting of the parliament deputies.However, the opposition Komeito party, which demands radical revision of Japan’s policy in the nuclear sphere after the accident at the Fukushima-1 nuclear power plant, has unexpectedly opposed ratification. This group has allied relations with the leading opposition force - the Liberal Democratic Party. As a result, it also demanded to postpone the ratification, although within commissions in had voted in favour of the approval of the agreements. The parliament is currently engaged in active consultations on this matter between the ruling Democratic Party and the opposition.The agreement with Russia on cooperation in the nuclear energy industry sphere was signed in Tokyo in May 2009. Both house of the Russian Federal Assembly ratified it in December last year. In Japan, however, this process has been delayed for various reasons - including, most recently due to Tokyo’s doubts concerning the country’s nuclear industry development prospects after the accident at the Fukushima-1 nuclear power plant. Influential industrial and political circles that referred to the danger of loss of markets and undermining international confidence in Tokyo are seeking ratification of the document.The agreement with Russia has a term of 25 years with the possibility of automatic extension. It is called upon to create a legal framework for cooperation, in particular, in the exploration and development of uranium deposits, design, construction and operation of light water reactors, radioactive waste processing and nuclear safety. The agreement contains provisions relating to the transfer of nuclear materials, equipment and technology.Before the crisis, the government led by the Democratic Party of Japan regarded exporting the country’s nuclear technology, especially to fast-growing economies, as one of the most promising ways to generate economic growth, the Kyodo news agency reported. Prime Minister Yoshihiko Noda told the lower house panel that the government is seeking the parliamentary passage of the accords as necessary domestic procedures have already been completed in Jordan, Russia, South Korea and Vietnam. He said those countries are still hoping to have Japan's cooperation even after the nuclear crisis -- which has yet to be brought under control.Noda said diplomatic relations must be taken into account with regard to the four accords as well as others Japan began negotiating prior to the crisis, including with Brazil, India and Turkey, according to Kyodo. As for new agreements, Noda said the government must examine how Japan can cooperate for the peaceful use of nuclear energy taking into account the findings on the Fukushima accident.To date, Japan has concluded bilateral nuclear accords with seven countries -- Australia, Britain, Canada, China, France, Kazakhstan and the United States -- and the European Atomic Energy Community.A vote on the four nuclear accords in a lower house plenary session, which was initially due to take place on Friday, has been rescheduled for next week. If all goes smoothly, they will come into force early next year after also being approved by the opposition-controlled House of Councillors during the current parliamentary session, which will end December 9 unless extended.GOP Lawmaker Blocking Obama's Pick for Russia EnvoyPublished December 02, 2011Associated PressWASHINGTON – ?A Republican lawmaker is blocking President Barack Obama's nominee to become ambassador to Russia over suspicions that the U.S. might provide Moscow with sensitive missile defense information.The administration says it has no current plans to provide such data. But it says the assurances sought by Sen. Mark Kirk are so broad, they would prevent any substantial cooperation on missile defense.The dispute with Kirk further complicates the Obama administration's efforts to get U.S.-Russian relations back on track at a time of increased tensions over missile defense.It also has political overtones ahead of next year's elections. The administration considers improved relations with Russia, including the signing of a major arms reduction treaty, to be one of the big foreign policy successes of Obama's presidency. Republicans have accused Obama of granting too many concessions to Russia and getting little in return.Kirk is holding up the nomination of Michael McFaul, a senior adviser to Obama on Russia. In an interview with The Associated Press, Kirk said he wants written assurances that the United States will not provide Russia with any currently classified information on the missile defense system.Kirk said he is particularly concerned that the administration could offer Russia data on the speed of interceptors planned for Europe in order to ease Russian fears that the system could knock out Russian ballistic missiles.He said he also is concerned about Russia's "record of espionage and cooperation and dialogue with Iran." He said that precise data on the interceptor speeds could help Iran evade the U.S. defenses.The administration says that while it is not considering such an offer, it does not want to limit its options by ruling out any exchange of sensitive information they say would be essential for any substantial missile defense cooperation."In the future, some classified information exchange may benefit the United States," said White House spokesman Tommy Vietor in a statement.U.S. missile defense plans in Europe have been one of the touchiest subjects in U.S.-Russian relations going back to the administration of Obama's predecessor, George W. Bush. The U.S. insists its missile interceptors are aimed at countering a threat from Iran, but Russia says it believes they would target its missiles.One of Obama's earliest moves to ease tensions was the administration's 2009 announcement that it would revamp Bush's plan to emphasize shorter-range interceptors. Russia initially welcomed that move, but has more recently suggested that the new interceptors could threaten its missiles as the U.S. interceptors are upgraded.U.S. talks with Russia over missile defense cooperation have nearly broken down. Russia recently threatened to target missiles at the U.S. missile defense systems in Europe and just commissioned a radar in Kaliningrad, near the Polish border, capable of monitoring missile launches from Europe and the North Atlantic.Read more: , December 02, 2011 Obama Moscow Envoy Nominee Blocked . Congressional sources tell RFE/RL that approval of President Barack Obama's nominee for ambassador to Russia is being blocked by a senator from the opposition Republican Party.The nomination of Michael McFaul, who served on Obama's National Security Committee and was his top Russia adviser, was approved by the Senate Foreign Relations Committee on November 29.But according to a source in Congress who requested anonymity, Republican Senator Mark Kirk, from the state of Illinois, has placed what's known as a "hold" on McFaul's nomination.The lawmaker is reported among those concerned that the Obama administration is planning to share classified missile defense data with Moscow.A full vote by the Senate to confirm McFaul is now indefinitely delayed.McFaul had previously had the support of both Obama's Democratic Party and the Republicans. But some Republicans who disagree with Obama's "reset" policy with Moscow are now objecting to McFaul's appointment.Obama has the option of appointing McFaul ambassador without the Senate's approval in what's known as a "recess appointment," when Congress is not in session later this month.During a Congressional recess in December 2010, Obama bypassed senators' holds to appoint Matthew Bryza as the U.S. envoy to Azerbaijan.Russian missile cruiser Varyag returns home after Pacific trip 02/12/2011VLADIVOSTOK, December 2 (RIA Novosti)A Russian Pacific Fleet's task force, led by the missile cruiser Varyag, returns to its home base in Vladivostok on Friday, the fleet's spokesman said.The task force, which also includes the Irkut tanker and a salvage tugboat, set sail for a tour-of-duty in the Pacific on September 20.“The solemn meeting of the vessels will take place at the Zolotoi Rog [Golden Horn] Bay,” the spokesman said.During the tour, the task force visited the port of Maizuru in Japan, the U.S. Mariana Islands and paid a four-day visit at the Canadian port of Vancouver. It also took part in the Pacific Eagle-2011 exercise with the U.S. Navy.Varyag, the flagship of the Russian pacific Fleet, is a Slava class missile cruiser designed as a surface strike ship with some anti-air and ASW capability. The sixteen SS-N-12 Sandbox nuclear-capable supersonic anti-ship missiles are mounted in four pairs on either side of the superstructure, giving the ship a distinctive appearance.NATO experts have dubbed Russian combat ships of this class "the killer of aircraft carriers," as they can launch 1,000 kg of high-explosives or a tactical nuclear warhead to a range of 300 miles.09:38?02/12/2011ALL NEWSBal-E missile system to defend Russia coast of Caspian Sea, December 2 (Itar-Tass) – The Bal-E modern coastal missile system (CMS) has entered service in the coastal missile unit of the Caspian Flotilla formed this year.Spokesman for the Southern Military District Colonel Igor Gorbul told Itar-Tass that “specialists of the Kaluga-based Typhoon plant are currently tuning the radar equipment and consolidating the entire system of the complex control into a single network.” “During 2011 part of the battalion’s officers underwent training at special courses at the plant,” he said.The Bal-E mobile coastal missile system with the X-35 type antiship missile was developed on the order of the Russian Navy in the late 1990s and adopted for service in 2008. The system consists of a self-propelled command control and communications centre, self-propelled launchers, a transport and reloader machine and communications vehicle, a total of- up to 11 special vehicles.The coastal missile system is capable of hitting targets at ranges up to 120 kilometres at any time and under any weather conditions. The time of deployment after a march - 10 minutes, cruising range - 850 kilometres, ammunition - 64 missiles, the number of missiles in one salvo - 32.The firepower of a Bal-E squadron is able to foil the fulfilment of a combat mission of a major naval strike group, an amphibious unit, or a potential enemy convoy. The squadron’s launchers can be set at hidden positions at a distance of 10 kilometres from the coast.“During the 2012 training year the rocketeers of the Caspian Flotilla will perform at least three rocket launches on sea surface targets imitators,” Gorbul said.The Bal-E mobile coastal missile system is designed: to control straits and territorial waters; to protect naval bases, other coastal installations and infrastructures; to defend coastline in probable landing approach areas. The missile system can conduct combat actions, providing fully autonomous after-launch missile guidance in fair and adverse weather conditions, by day and night, under enemy fire and electronic countermeasures.The Bal-E CMS is a mobile weapon system, based on the MAZ 7930 chassis, comprising: up to two self-propelled command, control and communications (C3) posts; up to four self-propelled launchers with the Kh-35E (3M-24E) type anti-ship missiles in transport-launch containers (eight TLCs on a standard launcher); up to four transport-reload vehicles intended for preparing the next salvo.The C3 post provides target reconnaissance, designation and optimal distribution between launchers. Active and passive high-precision radar channels allow the system to implement flexible target acquisition strategies, including covert ones. The launchers and transport-reload vehicles can be deployed in covered positions in the depth beyond the coastline. In this case neither covertness of their combat positions nor man-made and natural obstacles in the direction of fire will limit combat employment of the system.The system can conduct both single and salvo fire from any launcher, with the capability of receiving current information from other command posts and external reconnaissance/target designation data sources. A salvo can include up to 32 missiles. One such salvo can thwart a combat mission carried out by an enemy naval attack group, a landing force or a convoy. The system can fire the next salvo in 30-40 minutes thanks to its transport-reload vehicles. Combat management of the Bal-E assets is based on digital data transmission, automated communications, message processing and ciphering with guaranteed security.The system is equipped with night vision, navigation, survey and positioning aids enabling it to rapidly change its firing positions after completing the assigned mission, and relocate to a new combat area. The system can be deployed in the new position within 10 minutes. An integrated coastal defence system combining the Bal-E CMS, offshore patrol vessels with the Uran-E ship-borne missile systems and missile-carrying combat aircraft armed with the Kh-35E (3M-24E) unified anti-ship missiles, would be able to perform diverse operational and tactical tasks at minimal costs thanks to a single missile maintenance and repair system.The system’s structure and exact numbers of the C3 posts, launch and transport-reload vehicles are defined according to customer requirements. The MAZ-7930 self-propelled chassis can be replaced with other types of chassis (it can also be proposed for the light-configuration Bal-E CMS with enhanced agility and off-road capacity).The Bal-E CMS has a considerable potential for upgrading. Employment of additional target designation assets, such as radar picket helicopters or remotely piloted aerial vehicles, allows the system to increase its target detection range and precision. The Bal-E CMS can be equipped with passive interference systems to considerably enhance its invulnerability to enemy guided weapons in duelling situations. Other upgrading options are also considered.Russia to build improved sub of Borei-A class next year 2, 2011 10:38 Moscow TimeRussia will get down to building a nuclear submarine of an improved Borei-A class next year. Three subs of the Borei class are due to be commissioned shortly, namely the Yuri Dologrukiy, the Alexander Nevsky and the Vladimir Monomakh. In all, eight subs of this class are due to be built. The Yuri Dolgorukiy nuclear sub will be armed with the Bulava missile, which is scheduled to be test fired for the last time next year. After that, the Defence Ministry will pass the missile into service.(RIAN)Russian ship to supply Argentine stations 2, 2011 11:55 Moscow TimeThe MV Vasily Golovnin has left the Russian Far Eastern port of Vladivostok on an expedition to deliver polar researchers and equipment to Argentina’s Antarctic stations Esperanza, San Martin, Marambio, Orcadas and Petrel.The ship will first call at Penang, Malaysia, where it will take the Kamov Ka-32 helicopter onboard.It will then sail to Buenos Aires to take the polar equipment.?This is Vasily Golovnin’s fifth voyage to the Antarctic coast.The expedition will last till March next year.TASS11:59?02/12/2011ALL NEWSRussia’s Vasily Golovnin ship leaving for Antarctica expedition , December 2 (Itar-Tass) — Russia’s diesel-electric ship Vasily Golovnin will again deliver to Argentine stations in Antarctica polar shifts and equipment. On Friday, the vessel is leaving Vladivostok beginning a long-term expedition, which will last until March 2012.Head of the press centre of Far East Shipping Company (FESCO) Tatyana Kulikova told Itar-Tass that this year the ship will deliver equipment, gear, fuel, and shifts of polar explorers to the Esperanza, San Martin, Marambio, Orcadas and Petrel stations.However, before sailing to the coast of Antarctica, the Vasily Golovnin ship will call at the Malaysian port of Penang and take on board the KA-32 helicopter. Then the ship will travel to Buenos Aires where it will load on board supplies for the Antarctic stations.It will be the fifth voyage of the Vasily Golovnin to the shores of Antarctica. Earlier this year, the ship sailed in a 76-day expedition, during which it delivered to Argentine polar stations 4693.4 tonnes of cargoes and 899 tonnes of fuel. The ship’s unloading over the shore of the Antarctic stations was carried out by the KA-32 helicopter.Today FESCO Transportation Group is the largest integrated private company, providing wide range of transportation services and logistical solutions. It combines advantages of own maritime rail and motor transportation, stevedore service in own port's terminals in the biggest ports of Russia and CIS countries as well as wide net of representatives all over the world, according to the company website. Group’s business assets include various types of modern, fast and safe vessels, own park of diversified rolling-stock, own main-line and diesel-locomotive shunters, freightliners container equipment, water surface and on-land terminal complexes.Interview by Russian MFA Spokesman Alexander K. Lukashevich to RIA Novosti in connection with the forthcoming participation of the Russian Foreign Minister Sergey Lavrov in the Bonn International High Level Conference on Afghanistan [Link]1904-02-12-2011, Europe Agree on Overflights 02 December 2011The Moscow TimesThe?European Union and?the Russian government announced the?settlement Thursday of?a long-running dispute about how airlines are charged for?flights over Siberia."From Jan. 1, 2014, any charges EU airlines have to?pay for?flying over Russian territory will be cost-related and?transparent. They will not discriminate between airlines," the?EU said in?an e-mailed statement.The?agreement contained in?letters exchanged by?Economic Development Minister Elvira Nabiullina and?two European Commission officials will enter into?force on?Jan. 1, 2012, after the?expected approval of?Russia's WTO accession on?Dec. 16.The?EU estimates that charges for?flying over Siberia currently cost European airliners $320 million a?year as part of?a Cold War-era agreement meant to?compensate state carrier Aeroflot for?supposed lost business on?the route.The?European statement did not mention the?details of?the agreement. Andrei Rozhkov, a?transportation analyst at?Metropol, said he believed the?agreement was that existing European flights would cease to?yield royalties in?2014, while new flights started in?the intervening period would be exempt.The?European Commission has complained that the?charges breach EU and?international competition law, and?even threatened legal action against EU member states that have agreed to?pay them."For Aeroflot, it means that they will lose about $400 million a?year starting from?2014, and?that could make the?company unprofitable in?terms of?net income," Rozhkov said.An?efficiency drive at?the Russian flag carrier means that it could well maintain profitability in?operating costs, however, he said.A?spokeswoman for?the Economic Development Ministry asked for?questions submitted by?e-mail. The?e-mail had not been answered by?late Friday.Read more: The Moscow Times Ukraine Gets Third 6-Month Extension on $2Bln VTB Loan 02 December 2011BloombergUkraine's government won a?third six-month extension of?a $2 billion loan from?VTB Group, Russia's second-largest bank, to?ease its effort to?finance the?state budget deficit, its Finance Ministry said.The?original six-month loan, granted in?June 2010, has an?interest rate of?6.7 percent. The?government won its first six-month extension in?December 2010 and?had an?option for?more time, according to?the agreement."In spite of?the deterioration of?the global economic and?financial situation, which raised Ukraine's borrowing costs and?limited access to?capital markets, the?loan was prolonged at?the same financial terms," the?Kiev-based ministry said Thursday in?a statement on?its web site. The?extension was signed Wednesday, the?ministry said.In?July 2010, Ukraine agreed to?a $15.6 billion loan from?the International Monetary Fund, its second bailout in?two years, as the?global financial crisis hurt its economy. The?fund has already released $3.4 billion in?two tranches, helping the?government cover the?budget gap and?boost foreign currency reserves. The?third installment, which was expected in?March, was frozen after Ukraine failed to?raise household utility prices to?help balance the?budget."This is somewhat disappointing" because another lump-sum payment is due in?June, Tim Ash, head of?emerging market research at?Royal Bank of?Scotland in?London, said in?an e-mail. "This creates an?even bigger debt service lump-sum payment at?that point in?time."The?loan comes as Ukraine is seeking to?reduce the?natural gas price it pays to?Russia and?hopes to?sign a?new fuel accord by?year-end. It wants to?cut the?price to?about $230 per 1,000 cubic meters of?gas from?$400 it pays now.Should the?talks fail, the?price may jump to?$485 in?the first quarter of?next year, Deputy Prime Minister Serhiy Tigipko said on?Nov. 25.Read more: The Moscow Times 00:55?02/12/2011ALL NEWSRussia reminds death sentence exists in democratic countries, December 2 (Itar-Tass) —— Russia reminded on Thursday that death sentence exists not only in authoritarian Belarus, but also in democratic countries.“There is a number of advanced democracies which preserve (capital) punishment for very grave crimes and not very grave crimes,” foreign ministry spokesman Alexander Lukashevich said commenting on the death sentence passed in Belarus to two organizers of a terrorist act in Minsk metro in April that killed 15 people and injured scores of others.Belarus is the only European country to retain capital punishment. Russia is observing a moratorium on it.“We discuss with Belarussian partners any issues, including human rights. The problem of capital punishment is acute not only because of the Belarussian decision,” Lukashevich said adding “a complex answer shall be given to the problem by all countries which took on various international commitments in the humanitarian sphere.”On Wednesday a court in Belarus sentenced to death Dmitry Konovalov and Vladislav Kovalyov, both 25, who were also found guilty of 2005 explosions in their home city of Vitebsk and another bomb attack at Independence Day celebrations in Minsk in 2008.08:21?02/12/2011ALL NEWSRoad accident wounding Sverdlovsk governor to be investigated, December 2 (Itar-Tass) —— The road accident, which injured Sverdlovsk Governor Alexander Misharin and killed another man, occurred at 8.30 p.m. local time (6.30 p.m. Moscow time) on December 1.Volga, Skoda and Mercedes collided at about 9 p.m. local time (7 p.m. Moscow time) on the Yekaterinburg-Serov highway near the town of Krasnouralsk, a senior aide to the chief of the department for public relations of the regional branch of the Investigative Committee Alexander Shulga told Itar-Tass. Three people were injured. “The Volga driver died instantaneously and is being identified. The Mercedes driver and Misharin got various bodily injuries, particularly the governor broke the leg, both of them were taken to the hospital in the neighbouring town. Two people in the Skoda car were not injured, the investigators are interrogating them,” Shulga said. During the search at the road accident site the traffic was closed. The traffic was resumed now.Misharin, who is being treated at the Krasnouralsk central hospital, is estimated to be in moderately severe condition, particularly he broke his leg. The doctors did not confirmed or rejected this report, but refrained from giving detailed information, offering the journalists to get in touch with the chief doctor or head of the regional government Anatoly Gredin.A criminal case was opened over the road accident for violation of the traffic rules that entailed the death of a person through negligence, the press service of the Sverdlovsk regional branch of the Investigative Committee said. “The scope of investigative actions is being taken to find all details of the road accident. The investigation in the criminal case continues,” the press service reported.Chief of the Sverdlovsk regional branch of the Investigative Committee Valery Zadorin noted that the cars clashed in a head-on collision and were substantially damaged. The cars were brought to the regional traffic police department and sealed off in the car boxes. “The investigators will examine these cars later. It is clear so far that the airbags were activated in both cars. The governor was sitting on the right backseat. It is still unclear whether he was fastened with the safety belt,” Zadorin said. The detectives do not have the information at what speed the cars were driving. “Naturally, the braking path was measured, but the conclusions about the speed will be made later. According to the preliminary theory, the car of the governor was moving on the correct lane at the moment of the road accident. The car was skidded on the middle of the road as a result of the collision,” Zadorin said, noting that the details will be made public, when the doctors will permit to speak with the governor and his driver.Some malfunction in the car and the bad weather are considered as the reasons behind the road accident, Zadorin said. A slippery road was reported at this section of the highway and a heavy snowfall hampered the visibility, he said. “While we were driving for about 200 kilometres to the road accident site, we saw some more road accidents,” he said. The preliminary reason for the road accident to be named within three days, he underlined.02 December 2011, 13:14Patriarch Kirill fears all Christians could leave Arab world, December 2, Interfax - Patriarch Kirill of Moscow and All Russia has expressed concern over an upsurge of violence against Christian minorities in the Middle East and North Africa."One of the most symbolic tendencies of our time is a mass exodus of Christians from the Middle East and North Africa, caused by an unprecedented increase in violence against religious minorities in the region," Patriarch Kirill said at a meeting with international conference participants in Moscow.The Middle East is the cradle of the world's three key religions, which "historically explains the presence of followers of each there," he said.However, ongoing events make the possibility of Christians being squeezed out of this region "quite realistic," he added.Christians have become "hostages of big politics", and their situation is growing much worse as a result of foreign intervention in the affairs of the region's states, the head of the Russian Orthodox Church said."The term christianophobia has been present in the political vocabulary only for the past few years. It is not accidental because, as observers have noted, it is the Christians who are becoming the most persecuted religious group in the world today," he said.Driving Christian minorities out of the region will open the door to "extremism preachers, who will create an unknown enemy's image quite successfully," Patriarch Kirill said."We again call for the creation of a viable mechanism to protect the rights of Christians and Christian communities, which could be developed through open dialogue involving representatives of other religious communities," he said. Ingushetia MPs seek alcohol ban on Thursdays, Fridays 02/12/2011MAGAS, December 2 (RIA Novosti) – Lawmakers of Ingushetia’s outgoing parliament voted for the first reading of a bill to ban alcohol sales in the predominantly Moslem Russian republic on Friday, the local government’s spokeswoman said.Lawmakers said their decision sought to prevent traffic accidents and poisonings with poor quality alcohol.“We will have to elect local and central parliament to begin with and then about two weeks later deputies of the new legislature will vote on the bill in the second and third readings,” the spokeswoman said, adding that the law would be most likely adopted.The republic of Ingushetia will be electing members of the local and central legislatures and the federal Russian parliament on December 4 together with the rest of the country.Alcohol sales in Ingushetia are presently allowed from 10 to 22 every day.Media reports said Ingush President Yunus-Bek Yevkurov attended the parliamentary hearings on Friday and welcomed the bill as an important move. He called for tougher control over alcohol sales, saying products should be certified and retailers provided with licenses.“Uncertified people in this business sell dodgy alcohol, which causes poisoning and leads to conflicts,” he said, adding that lawmakers would also have to decide on punishment for violators. Yevkurov cited police statistics that alcohol intoxication was one of the main reasons behind traffic accidents. “We are in a secular state and the republic’s population is made of a diversity of religions and ethnicities. We cannot stamp on people’s rights but we can somehow try to prevent the situation from running out of control,” he said.In neighboring Moslem-dominated Chechnya, alcohol is sold just once a week from 8 to 10 a.m.02 December 2011, 13:12Homosexuality bill can be passed at federal level – Kozak. Petersburg, December 2, Interfax - Lawmakers should consider putting forward the bill banning homosexual and pedophile propaganda at the federal level, Deputy Prime Minister Dmitry Kozak said."Probably, we should consider this topic at the federal level," Kozak told a press conference in St. Petersburg on Friday.Any propaganda regarding non-conventional sexual relations is "an abominable thing to do," he said.For his part, governor of St. Petersburg Georgy Poltavchenko said that if this bill is passed, "it will serve for the good of public morals." "There is nothing more abominable than propaganda regarding such things," he said.On November 16, the St. Petersburg Legislative Assembly approved on first reading a bill imposing administrative liability for homosexual and pedophile propaganda among minors. In presenting the bill, author Vitaly Milonov said the bill must be passed to protect children from destructive information.03:34?02/12/2011ALL NEWSRussia wants 800 million euro from FIFA for 2018 World Cup, December 2 (Itar-Tass) —— Russia wants to get 800 million euro from FIFA for the 2018 World Cup but the association so far agreed to provide 600 million, Russian Sport Minister Vitaly Mutko said after a meeting with FIFA President Sepp Blatter and General Secretary Jerome Valcke on Thursday.“We estimate the budget at 800 million euro, but so far we agreed on 600 million with FIFA,” he told Tass and specified the amount is intended for the lease of stadiums, broadcasts, team accommodation and travel, etc. It does not include investments into infrastructure.FIFA earmarked 500 million euro for the latest World Cup in South Africa which cost a total of 1.2 billion euro. But Mutko said the rules have changed since then and the host country no longer receives proceeds from sponsorship, advertising and ticket sales.“All money goes to FIFA, therefore we lawfully insist on compensation,” Mutko said.He said discussions with FIFA would continue. “I believe we shall find a compromise amount and approve the budget by the end of the year,” Mutko said and described the meeting as “positive”.The sport minister said early next year FIFA will inspect all Russian cities bidding for the right to host 2018 World Cup and the final list of stadiums will be approved by October. It will include 11 cities and 12 stadiums. At present 13 cities and 15 stadiums are bidding.08:45?02/12/2011Top NewsAustrian football fans beaten in Moscow get no major injuries, December 2 (Itar-Tass) —— Football fans of Austria’s Sturm beaten at the hotel in north-eastern Moscow overnight to Friday got no major injuries, a source in law enforcement agencies told Itar-Tass, noting that two football fans were injured.“After the medical aid was given to them they were checked out from the hospital,” the source said. He noted that beaten Austrian football fans were drunken and “gave contradictory testimony” over the reasons for the brawl. “One of them claimed there were five attackers, the second one said there were 100 attackers,” the source said.“The police detained two suspected attackers hot on their traces. They are drunken and cannot give any testimony,” the source said.Lokomotiv Moscow defeated 3-1 Austria’s Sturm in a Europa League group stage match in Moscow on Thursday evening. The Austrian football fans were beaten in a fistfight after one hours a.m. Moscow time at the Borodino Hotel in Rusakovskaya Street in the Sokolniki district of Moscow.Russian Press at a Glance, Friday, December 2, 2011 02/12/2011POLITICSThe opposition candidate in the South Ossetian presidential elections, Alla Dzhioyeva, who claims to have won the November 27 runoff vote that was later annulled, said on Thursday no agreement has been reached with the authorities(Vedomosti, Rossiiskaya Gazeta)As Sunday's State Duma vote draws near, the plot thickens. A string of incidents this week has led observers to believe that the Kremlin is extremely nervous about the waning popularity of the country's leaders, manifested in dwindling support for United Russia(The Moscow Times)ECONOMY & BUSINESSThe first HD-785-7 monster dump truck, strong enough to carry the equivalent of 45 adult hippopotamuses, rolled off the production line at Komatsu's factory (The Moscow Times)OIL & GASBelarus has received $2.5 billion from Russian gas export monopoly Gazprom from the sale of the remaining 50-percent stake in the national gas pipeline operator Beltransgaz(Vedomosti)Russia's largest private oil company LUKoil will invest $48 billion in its operations in 2012-2014, including $13.9 billion next year under its new strategy over the next ten years(Vedomosti)ITWebsite of Russian daily Kommersant was subjected to a lengthy attack of hackers(Vedomosti)WORLDThe European Union on Thursday called on Belarus to join the rest of Europe in prohibiting capital punishment(Nezavisimaya Gazeta)SOCIETYThe number of motor vehicles in Moscow has grown by 600,000 since the start of the year, Mayor Sergei Sobyanin said(Rossiiskaya Gazeta)Despite Russian President Dmitry Medvedev’s efforts to fight corruption, its level in Russia remains extremely high, with the country ranking 143rd out of 182 countries in Transparency International's 2011 Corruption Perceptions Index published on Thursday(Rossiiskaya Gazeta)Russians are among the most dissatisfied in the world with their health and well-being, having great distrust for the healthcare system and deep concerns about their environment(The Moscow Times)Against a backdrop of two years of declining book sales in Russia, 250 publishing companies and literature unions from 20 countries have assembled in Moscow this week for the 13th International Book Fair Non/fiction(The Moscow Times)ACCIDENTSAlexander Misharin, the governor of Russia’s Sverdlovsk Region, was severely injured in a traffic accident after his car collided with two other cars(Rossiiskaya Gazeta)For more details on all the news in Russia today, visit our website at News line, December 2Medvedev urges voters to elect ‘viable parliament’ Dmitry Medvedev has urged Russian voters to come to the polls on Sunday and elect a viable parliament with politicians who will abide by the interests of the citizens and national interests. In a televised address to the nation on Friday, Medvedev stressed all the necessary conditions have been created for free and equal competition of the seven political parties participating in the State Duma elections. The president himself heads the election list of the ruling United Russia party.Address by Dmitry Medvedev 2, 2011, 04:00 Fellow citizens, compatriots, and friends,This Sunday, December 4, Russia goes to the polls to elect the State Duma. Seven officially registered political parties are taking part in this election. In accordance with our laws, they have received the conditions needed for fair and free competition. I hope you have had the chance during the campaign to judge for yourselves not only the different parties’ programmes, but also their actual acts, as most of them are represented in the current parliament.I want to stress the point that elections are one of the highest manifestations of democracy. Your personal participation in this election will decide what our new Russian parliament will look like. Every adult citizen of our country has the right to come to the polling station and freely cast their vote for the political party of their choice.?People perform many of the truly good, right, and important acts in life not out of obligation, but out of a sense of responsibility, the call of their heart, moral considerations, and the awareness that only we ourselves can make our lives better. No one else can do it for us.Do something right and important – come to cast your vote in the parliamentary election and decide who will represent you in the State Duma, our highest representative body. Electing the new parliament is our chance to have a big impact on the way the federal authorities in general will work over the coming years, and decide the fate of many needed economic and social development measures, health and education reforms, measures to combat corruption and crime, and measures to protect our country against external threats.?How much time will you spend coming to vote? Not much. Half an hour, perhaps, an hour? But this hour will decide what kind of parliament we live with for the next five years. This hour will decide whether we have a parliament riven by irreconcilable differences and unable to actually decide anything, as has sadly been the case in our past, or whether we have an effective law-making body in which the majority of members are responsible politicians capable of making real improvements to our people’s lives and guided by the interests of the voters and the country.Friends, our citizens’ direct and free participation in elections is one of Russia’s indisputable achievements of these last decades. People’s power is fully realised on election day. I am sure that, together, we will build a truly modern and highly developed Russia that offers us a comfortable environment for life. I therefore call on you to make the right choice on December 4. Vote for those who you believe will look after your interests, understand the economy, have experience in overcoming crisis situations, are capable of defending our homeland and preserving it for our children, understand you well, and speak to you the truth.??Vote for those you believe in. Vote for Russia’s future!December 2, 2011, 04:00 11:30?02/12/2011ALL NEWSFour polling stations for Duma elections to be opened in Canada, December 2 (Itar-Tass) — Russians, who are staying in Canada, will be able to cast ballots at four polling stations on the day of the elections to the Duma. They will be opened in Ottawa, Toronto, Monteal and Vancouver, Andrei Varlamov, head of the consular department of the Russian embassy in Canada, told Itar-Tass.“During preparations for the voting a special note was forwarded to the Canadian Foreign Ministry, and the Canadian officials gave their consent to the organisation of voting on the territory of diplomatic missions,” he said. According to his information, premises for the voting are ready. Russian nationals will be able to exercise their constitutional right after the presentation of the Russian internal passport or the passport for foreign travel.The voting will begin at 08.00, local time (the difference with Moscow time is nine hours) and will end at 20.00. When the polling station is closed in Vancouver, on the Pasific coast, it will be 08.00 of December 5, in Moscow. After the end of vote counting, the ballot papers will be sent to the Russian Foreign Ministry.Ramzan Kadyrov urges Chechnya to take part in parliamentary polls will hold parliamentary polls and elections of Chechen autonomous authorities on December 4. It is a very important and responsible step to make, which will determine the path of the republic. As Russian citizens, the Chechens want a sustainable, peaceful, prosperous states, Kadyrov’s message says, Grozny-Inform reports.The republic overcame many challenges in the last years. There were problems and failures, rises and falls. The elections should protect citizens from political risks and guarantee growth of prosperity and security in Russia.The civil position will determine the country’s development and what future awaits. People are responsible for moral and religious upbringing of the new generation, which directly depends on the political situation in the country.In his message, Kadyrov expressed confidence that the citizens of Chechnya would show political maturity and patriotism. Together they will make the right choice, resulting in Russia’s strengthening and sustainable and dynamic development of Chechnya.Slowly but Surely Duma Elections Will Promise No Great Surprises, But Analysts Are Taking the Long View By Andrew Roth Russia Profile 12/01/2011 The days are dwindling down to the elections, and no one has really decided yet what to expect from them. It is unlikely that we will see an electoral revolution in Moscow – the most exciting thing that may happen is United Russia losing its constitutional majority, and only real question for the elections is how far United Russia’s polling numbers have dropped in recent months. While experts are maintaining realistic expectations as to the results of this round of elections, they are seeing a larger trend: the Kremlin may be able to maintain control through these elections, but the clear trend is moving away from the political stability of the past decade.In recent weeks there has been growing evidence and discussion of United Russia’s slipping popularity among Russians. Besides the growing popularity of the ”party of crooks and thieves” moniker and mixed reactions to what many saw as Putin being booed at a recent MMA title match at Olympisky Stadium, there is a real sense, at least in Moscow, that the vitriolic but muted distaste for United Russia is starting to come out into the open. Despite that, leading analysts said in some of their last predictions before this Sunday’s elections that Russia is unlikely to see anything close to a major change in the electoral makeup in the coming Duma.A key issue here is that most people in Russia see very few real alternatives among the opposition – and in particular among the systemic opposition, those parties that are capable of actually crossing the seven percent threshold for substantial representation in the coming Duma: “The reality is that Vladimir Putin remains head and shoulders the most popular political figure in the country. Most of the opposition, such as it is, is all if not endorsed, then at least officially engaged. They have a dialogue. They know what their place is, and they do play a role. But they play the role of supporting cast. And there’s really no opportunity for them to move meaningfully into a powerbroker kind of position, because that’s dominated by Putin and those who are close to him,” said Carnegie Endowment Russia specialist Matt Rojansky told journalists yesterday.? In the past, the opposition has been simply too fractions, and remains too fractions, to actually turn itself into a respectable force. Firstly there is the fact that many in the opposition themselves remain weak opponents of the regime: the Liberal Democratic Party of Russia, for instance, has been loathe to criticize the regime since its inception. An unnamed source in the election committee took those allegations one step further today in the Moscow Times, saying that deals had been made between representatives of the Kremlin and the heads of several of the systemic opposition parties, where the latter granted their loyalty to the ruling party in exchange for strong representation in the Duma – the charges, whether valid or not, can only give greater credence to beliefs that there may be large-scale voter fraud this Sunday. While United Russia’s opposition remains weak, however, society itself is becoming increasingly polarized between an urban class that is increasingly anti-administration and the pensioners and other groups that don’t necessarily love Putin, but fear change, argued Kommersant FM correspondent Konstantin von Eggert. “I am certain that next comes a period of growing unrest and confusion, in which the two Russias I described will be jostling to control the future of the country. Predictions here are a messy and risky business, but I’d venture one: stability, which in Russia was precarious even in the best of times, is over,” wrote Von Eggert. “The December 4 Duma elections, as well as the March presidential ones, will be the last ones the Kremlin will be able to control.”This was similar to a point that Rojansky made – that Russia hasn’t really hit the point where one would expect to see significant changes, and that the dissatisfaction with the government remains confined to a small group of people. There is movement, he noted, but that frustration still hasn’t been brought to a boil. “This is very much important as a prelude to March of 2012, the Putin return to the presidency,” he said, also bringing attention to an increasingly destabilized political arena: “I think we’re looking at a sort of mid-term timeline for things to become relatively more unstable in Russia.”Reforms in Russia: Going in circles for 20 years collapse of the Soviet Union: 20 years on00:58 02/12/2011RIA Novosti economic commentator Vlad GrinkevichRussia has been carrying out economic reforms for 20 years now, which is enough time to sum up the results. Regrettably, they are not very optimistic. Russia has managed to do away with its planned economy but the price it had to pay for this was deindustrialization. As a result, it has left the club of advanced countries and has started drifting towards peripheral states – suppliers of raw materials for the global economies.Two decades after the start of these reforms, economists are still trying to establish whether Russia had any alternative. This question is all the more relevant now that there is a demand for drastic transformation in the Russian economy.The burden of wrecked reformsPractically all economists agree that by the beginning of the 1990s the Soviet economy was badly in need of reform. Speaking at the November 24 round table, “Twenty Years of Economic Reforms: Achievements and Missed Opportunities” at the Komsomolskaya Pravda Publishers, former Central Bank CEO Viktor Gerashchenko said, “People were aware of the need for reform, but there were few people who were ready to carry them out.”There were attempts at this, to be sure. From the latter part of the 1980s and until 1991, several groups of economists were working on models for radical economic reforms. However, a lack of resolve on the part of the Soviet leadership and squabbles related to nomenclature frustrated these plans from materializing.Andrei Gorodetsky, deputy director of the Russian Academy of Sciences (RAS) Institute of Economics, recalls, “We had been working on reforms since 1984. The whole package of documents was ready. The reforms were about to be launched but a letter from two members of the Academy (Leonid Abalkin and Stanislav Shatalin) to Mikhail Gorbachev prompted a sharp turn from radical economic reform to what they called financial stabilization… All our work went down the drain!”Meanwhile, the time for carrying out normal, deep and well thought-out reforms was desperately running out. The fall of oil prices in the late 1980s and the political crisis were carrying the Soviet Union to the point of no return, beyond which radical reforms become inevitable.The sad story of liberalizationAdvocates of neo-liberal reforms use an absence of alternatives to explain the tough actions of the Yegor Gaidar Government in 1991-1992, and blame the rough economic consequences on the blunders of the Soviet leadership on the eve of reforms.Former Economy Minister Andrei Nechayev comments, “Price liberalization was very painful and unpopular but there was no alternative.” He believes the Valentin Pavlov Government had already freed wholesale prices de facto. Under the circumstances, retail prices could only be curbed with budget subsidies. But the problem was that 60% of the budget was financed through emissions. “If you can’t control retail prices, you have to let them go,” Nechayev summed up.Price liberalization had large-scale consequences. In 1992, inflation in Russia amounted to 2,500% whereas in Eastern European countries it was incomparably lower.Igor Nikolayev, director of the FBK Strategic Analysis Department, explains this gap by the fact that Soviet Eastern bloc countries had started price liberalization a year or two before. Moreover, their economies had a private sector and prices were free on certain goods anyway.Other experts believe that hyper inflation was a result of systemic blunders. “The price system that we had [in the U.S.S.R.] could not have been cured by liberalization,” Gorodetsky insists. “What caused our commodity markets to explode? Prices jumped up while customs tariffs remained at the level of 0.001% of the costs. This kind of tariff system could not regulate anything. It was completely unable to guarantee the economic safety of the domestic markets and this produced the expected results.” Gorodetsky is convinced that liberalization was inevitable, but being unprepared, it put the brakes on further reforms. “It didn’t even matter whether we needed liberalization or not. What mattered was that we did a bad job, as usual. We tried to counter the effects of this liberalization throughout the 1990s,” he said.No excuseSome steps taken during the period of reforms had even more serious consequences for the nation. Even advocates of liberal reforms sometimes describe privatization of state property as “dirty and unfair.”Who is to blame for it? There is no clear answer to this question. Nikolayev recalls that the decision on voucher privatization was made in the middle of 1991 but it was a huge mistake to carry it out against the backdrop of hyperinflation. “Understandably, vouchers turned into worthless papers that were bought up. Such privatization was doomed to be dirty and unfair.”The second stage of privatization raises even more questions. “If the voucher privatization was in some way justified, shares-for-loans auctions had no excuse at all,” Nikolayev said bluntly. “We will be in the grips of this privatization for a long time to come.”The trouble is that unfair privatization has engendered deep mistrust between people and business, and trust is “a major socio-economic category” in the economy.Boris Kagarlitsky, director of the Institute of Globalization and Social Movements (IGSO), suggests that the success of reforms be judged by their beneficiaries.Who stood to gain?“The winners were the part of the nomenclature that saw the resolution of their problems in the transition to capitalism, and resolved them,” Kagarlitsky said. “The party-and-economic bureaucracy successfully transformed into the bureaucratic bourgeoisie.”He believes that the development of reforms was predetermined by this nomenclature not in the 1990s or the end of perestroika but a decade earlier. “In fact, it was the Leonid Brezhnev leadership that made this decision, probably without even comprehending the aftermath, when they re-oriented the Soviet economy to oil exports in the mid 1970s. Everything else was minor details,” Kagarlitsky sums up.This is a bold version but in a way it answers the question as to why the Russian economy still needs drastic reforms.The views expressed in this article are the author’s and may not necessarily represent those of RIA Novosti.December 01, 2011 Russian Opposition Parties Unite In Udmurtia , Russia -- More than 1,500 activists from several opposition parties united to rally in the central Russian city of Izhevsk ahead of parliamentary elections on December 4, RFE/RL's Russian Service reports.?Demonstrators at the two-hour gathering on Izhevsk's Central Square held flags and banners of the Communist Party, the Patriots of Russia, Yabloko, and A Just Russia.?The leader of A Just Russia's regional branch in Udmurtia, Viktor Shudegov, told RFE/RL that Udmurtia is the only region in Russia where all opposition parties have managed to unite on the eve of parliamentary elections.?Though rare, a similar cooperation agreement between five opposition parties has reportedly also been signed in the republic of Daghestan.?"We will do everything to eliminate the monopoly of the ruling [United Russia] party," Shudegov said.??Sergei Shchukin, leader of the local branch of Patriots of Russia, told people at the rally that all of the opposition parties must maintain their coalition until the elections to Udmurtia's State Council scheduled for next year.Read more in Russian hereRadio Free Europe/Radio Liberty ? 2011 RFE/RL, Inc. All Rights Reserved. people leaving Russia to "escape Putin" Benedikt von Imhoff and Ulf Mauder Dec 2, 2011, 6:06 GMT Moscow - Russian Prime Minister Vladimir Putin's expected return to the presidency horrifies 27-year-old Alexei. 'When that happens, I will emigrate,' the computer specialist says. Many young Russians feel the same way. With parliamentary elections coming up on Sunday, anger and doubts about the leadership are rife. Observers even speak of an 'escape from Putin.' 'We are being lied to from A to Z,' gripes 32-year-old Oksana who, like many others, did not want her real name published. Oksana has a lot of worries - unfair elections, lack of opportunity, high inflation, corruption, rising food prices and sinking salaries. Above all, it is the fear of being governed for even longer by the power team of Putin and current Kremlin boss Dmitry Medvedev, without hope of change, which is pushing educated young people to leave Russia. Medvedev is the leading candidate for his and Putin's United Russia party in the parliamentary elections, while Putin is seeking the presidency in the March presidential election - meaning the two would switch jobs. In an October survey by the Levada opinion research centre, 22 per cent of those questioned said they wanted to emigrate - twice as many as at the end of the Soviet Union. About 1.5 million of Russia's 140 million people have left the country in recent years, experts estimate. Emigration is now seen as a serious problem, and the government is taking countermeasures. The danger of a brain drain is well recognized, said Andrei Nikitin, head of the Moscow Agency for Strategic Initiatives. The agency is tasked with helping educated people who have doubts about the Russian system, Nikitin told dpa and other media. 'Extra structures must be created so that young and interested people with perspectives can carry out their ideas and proposals,' Putin himself said recently, commenting on the role of the agency he created. Medvedev took the same line and promised greater modernization: 'The problem is that we have to create the conditions to work in the homeland.' Nikitin said Russia is trying to entice emigrants back home, with programmes such as a rebate on training costs for civil servants. One of the state's model projects is the new Skolkovo innovation and technology centre near Moscow, where Russia's best minds are meant to move modernization forward. But many more scientists would rather try their luck abroad. The loss of scientists is having a noticeable impact on research, the newspaper Kommersant said. Biologists, mathematicians and physicists complain about poor social conditions in Russia, oversized bureaucracy and the opaque allocation of research money in a corrupt scientific community. 'Among those who have the chance to work abroad, 100 per cent leave the country,' biologist Ilya Kolmanovsky told Kommersant. 'I do not want my child to grow up in this country,' says Alexander, from Moscow. But the 37-year-old does not have the money to emigrate, so he withdraws into his family life. Over the weekend, he heads for the family's little dacha, or second home, in the countryside. It's not the permanent escape he's hoping for, put perhaps it's the next best thing. December 1, 2011Russian Authorities Pressure Elections Watchdog ELLEN BARRYMOSCOW — With parliamentary elections only days away that are expected to reflect dwindling public support for Vladimir V. Putin’s party, Russian prosecutors have opened a case against the country’s only independent election monitoring organization. The organization, Golos, has already posted reports of more than 4,500 violations of election law in the prelude to the voting on Sunday. Golos receives financing from Western governments, including the United States, and some Russian officials have suggested that the organization’s real aim is to incite an Arab Spring-type revolution in Russia. Pressure on Golos, an 11-year-old group whose name means “vote” in Russian, began mounting last Sunday, when Mr. Putin attacked “so-called grant recipients” that he said were interfering with elections on behalf of foreign governments. “Judas,” he said, “is not the most respected biblical figure among our people.” The accusations became specific this week, when lawmakers from three parties appealed to the federal prosecutor to investigate Golos. Blistering attacks appeared in several pro-government news outlets. In one article, a leader of Mr. Putin’s party, United Russia, likened Golos to a group announcing that “we got money from Al Qaeda, and now we want to see how elections in Tatarstan are going.” The mood at Golos’s Moscow office was jumpy on Thursday. Grigory A. Melkonyants, the organization’s deputy director, said he was worried that the group’s 3,000 monitors would be excluded from polling stations, and that they might even be in danger, after Mr. Putin’s use of the word “Judas.” He said it was possible that Golos would be shut down by the authorities before Sunday. “We cannot predict what will happen tomorrow, or what will happen in an hour,” Mr. Melkonyants said. “This is already an open war that they have declared on us, and the overwhelming weight is on their side.” A letter delivered by prosecutors on Thursday said that one of Golos’s most popular features — an online “map of violations” where people can post reports — violates a Russian law against publishing data, especially polling results, during the five days before voting. This is an administrative violation punishable by a fine of up to 100,000 rubles, or about $3,200. The letter also accuses Golos, which has been preparing for Sunday’s election for years, of “dissemination of rumors under the guise of trustworthy reports, with the goal of defaming a party as well as its individual members.” Though United Russia, which now has a commanding majority in Parliament, faces no powerful competitors in the election, opinion polls suggest that it will lose 50 to 60 seats, reflecting growing weariness with leadership that has not changed in a decade. State officials at all levels have been told to guard against significant losses. Meanwhile, amateur observers are pushing back, using the Internet to expose violations that include offers of cash and threats to cut off financing. Dmitri Merezhko, Golos’s communications director, said that events this fall — including the collapse of a pro-business party, Right Cause, and Mr. Putin’s announcement that he will run for president again, after a stint as prime minister and two previous terms as president — “ignited something in the most active part of the public.” “Maybe someone thinks we are the reason,” Mr. Merezhko said, referring to Golos. “But we are not the reason.” Golos’s critics in the Russian government say its work is tainted by the money it receives from two American agencies, the National Endowment for Democracy and the United States Agency for International Development. A promotional video clip for a report scheduled to be broadcast on Friday on the NTV channel, owned by the Russian energy giant Gazprom, features images of suitcases stuffed with $100 bills juxtaposed with footage of Golos’s leaders as a portentous voice asks, “Who is behind these ‘independent observers?’?” A pro-government blogger has posted what appears to be paperwork showing that Golos received $92,653 from the United States government for the month of February. Russian officials have invoked the memory of the 2004 Orange Revolution in Ukraine, which many people here believe was propelled by American agents. Maksim Rokhmistrov, one of the three lawmakers who signed the appeal to the prosecutor, said he was worried that Golos’s reporting could provoke civil unrest. “A girl dances with the guy who takes her to dinner, as they say,” Vzglyad, a daily newspaper, quoted Mr. Rokhmistrov as saying this week. “The question of maintaining stability in the state worries everyone at election time. No one here wants to see the beginning of our own Egypt, or our own Libya.” Mr. Melkonyants has given a number of interviews with the news media since the critiques began to appear, arguing that the foreign financing does not compromise Golos’s objectivity or violate any Russian law. He told the radio station Ekho Moskvy that much of Golos’s money came from European donors like the Helsinki Committee and the European Commission. He said Golos had submitted to rigorous audits by Russian tax authorities and the Ministry of Justice, and had repeatedly tried to secure financing from the Russian government but had been refused. Mr. Melkonyants is scheduled to appear in a Moscow courtroom on Friday at the request of prosecutors. Though every election monitoring mission has come under pressure from government officials, “it has never been so high in my memory,” he said, adding that he could not blame Golos’s partners for keeping their distance now. “There is no need to say that they are cowards,” he said. “Believe me, all of us — including the political parties — we’re all in a situation that is not simple, not simple at all.” Russian soldiers to be woken with 'pleasant music' ahead of elections soldiers are to be woken with "pleasant music" before they go to vote on Sunday in parliamentary elections, and will be encouraged to watch state television. 10:05PM GMT 01 Dec 2011The country's one-million strong military is a traditional stronghold Vladimir Putin's ruling United Russia party, which is expected to see its parliamentary majority cut and will be counting on the military vote. Scattered across Russia, the military can make or break a party's performance, especially in the scarcely populated Siberian and Far East regions. Officials at the Defence Ministry visited barracks across Russia before elections, according to Izvestia newspaper, advising officers to feed soldiers with a "celebratory breakfast" before letting them go off to the polls. Izvestia, citing unnamed sources, said no orders were given, only suggestions. Both Defence Ministry and army spokesmen were unavailable to comment on Thursday. State TV is dominated by coverage of the Kremlin and the country's top leaders. A poll published last week showed United Russia was likely to receive 252-253 places in the 450 seat parliament, down from the 315 it currently holds. In what has been seen by some analysts as an attempt to court the military vote, Moscow has promised to boost defence spending to 20 trillion roubles (?414bn) through 2020. While some soldiers may vote for the nationalist-minded Liberal Democratic Party of Russia, which polls show as gaining the third largest number of votes in Sunday's vote, most will back United Russia, analysts say. "The army is a well-controlled, conservative, patriotic institution, and Putin is seen as a (security forces officer) who impresses officers and embodies the understanding of a professional soldier and a good leader," said Mikhail Barabanov, editor-in-chief of CAST's Moscow Defence Brief magazine. TV censorship crosses time zones in Putin's Russia SOFIA JAVED The Associated Press 12:06 p.m. Thursday, December 1, 2011 MOSCOW — On a recent Sunday evening, television viewers in Russia's eastern regions watched as a young Chechen man with a bandaged bloody nose described the details of his torture by Chechen special police.But viewers in Russia's west never got to hear his story. By the time they tuned in to the news program some seven or eight hours later, the report had been replaced with 10 minutes of ads.Censorship across time zones has become an established practice on national television networks, which under Russian leader Vladimir Putin were all brought under Kremlin control. Controversial or sensitive programs are shown in full to audiences in the Far East, Siberia and the Urals, but are often edited before they reach viewers in Russia's western regions, where 70 percent of the population lives.Sometimes, the programs are canceled altogether.Increasingly, however, the uncut programs are quickly posted on the Internet, where they are discussed and spread through Russia's thriving blogosphere by a growing number of Russians unhappy with Putin's rule.As many as 80 percent of Russians still rely on television as their main news source, which explains the Kremlin's reluctance to ease its hold. But Internet use is growing dramatically and the free exchange of critical information is beginning to chip away at the Kremlin's ability to influence public opinion.Russia now has the highest number of Internet users among 18 countries in Europe, with market research company comScore Inc. recording 50.8 million unique visitors to the Internet in September. In the same month, Russia had the fifth most engaged social networking audience in the world, with the average user spending 9.7 hours a day on popular social networking sites.The percentage of Russians using the Internet is still low by European standards but it has been growing steadily.The journalists who produced the report on Chechnya knew what they were risking. They warned their sources even as they were filming that the story might show only in the east, if it made it to the airwaves at all. When the report was pulled, they immediately posted it on YouTube, and by the next day the video had been seen by more than 300,000 people across the country.The report, belying the Kremlin's portrayal of growing stability in Chechnya, came at a sensitive time as Prime Minister Putin prepares to reclaim the presidency in March elections. A key test for Putin comes Sunday, when his party faces a national vote to keep its majority in parliament.But such censorship attempts may be backfiring."I presume, in the end, more people actually watched it than would have had it run properly," said Tatyana Lokshina, a researcher for Human Rights Watch who has worked extensively in Russia's restive North Caucasus region, which includes Chechnya.Lokshina said the wide audience the report attracted on the Internet was unlikely to have gone unnoticed by the Kremlin."The Kremlin censors are becoming more and more aware of the scandal potential of online media and social networks and blogs, and how if they make a rash decision to kill a certain sensitive story, there will be consequences," she said.The censoring of the Chechnya report caused a minor scandal and was covered by Russian newspapers and some international media organizations.The Kremlin has tolerated the criticism proliferating on the Internet and also in Russia's non-governmental media. Some of the most biting attacks have come from a burst of creative political satire that followed Putin's announcement in September that he and President Dmitry Medvedev planned to switch jobs next year.So far, however, the political cartoons, lively debates and critical reports posted online have largely served to let off steam among what is a growing but still relatively small portion of the population.The Internet "may be a vehicle of critical opinion, critical analysis, of even exposure of wrongdoing and abuse of authority, but it is not a vehicle of political mobilization or political organization," said Masha Lipman, a scholar at the Carnegie Moscow Center.Russians do not want a revolution like those that brought down regimes in the Middle East and North Africa, and they have little appetite for political activism, she said.Most Russians still prefer the political stability that Putin promises and they still get their news from television."The people who pull reports off the air, they don't care about the Internet," said journalist Andrei Loshak. "They understand that there is an audience for the Internet, and there is an audience for television that is much more important. And with them it's a separate conversation."Loshak had a 25-minute documentary film pulled off the air in 2008 after it had been shown in the Far East. The film touched on a sensitive issue under Moscow's mayor at the time, although it never mentioned him by name. Loshak posted the video online but otherwise decided not to raise a fuss for fear of losing his job.In the same way, the report on abuses in Chechnya was apparently considered to reflect too negatively on the Kremlin. Putin has backed Chechen leader Ramzan Kadyrov, whose brutal rule has brought a semblance of calm after years of war, but rights activists claim that his forces are responsible for disappearances, torture and extrajudicial killings."You just can't touch such issues right now, especially during elections," veteran television executive Anatoly Lysenko said in an interview published in the newspaper Kommersant. "There are things we simply cannot show."___December 01, 2011 12:06 PM EST Copyright 2011, The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.DECEMBER 2, 2011Our Friends the Russians Kremlin picks a fight with America in time for elections.One of the foreign policy priorities of the Obama Administration was to "reset" relations with Russia. How's that working out?Dmitry Medvedev, the placeholder for Vladimir Putin in the presidency, gave one indication last week. He declared that Russia may deploy "strike forces" and aim mid-range Iskander missiles at Europe. He also threatened to pull out of the 2010 New Start arms accord, which is supposed to be the hallmark achievement of the "reset."The excuse for Mr. Medvedev's tantrum is the long-planned missile defense shield for Europe. Once deployed in 2020, it's designed to stop a limited number of missiles from Iran and doesn't diminish Russia's nuclear deterrent. The Obama Administration scaled back the shield to please Russia in 2009, and with Russian agreement in return for the U.S. signing up to New Start, but now apparently that's not enough.On Tuesday Mr. Medvedev opened a new Russian early-warning radar in the Kaliningrad enclave between Poland and Lithuania and said: "When they tell us—'It's not against you'—I would like to say the following: 'Dear friends, the radar launched today isn't against you either. But it's for you and for fulfilling the tasks we have set.'" Moscow's ambassador to NATO this week amplified this message by threatening to close the transport route through Russia that the U.S. and its allies use to supply troops in Afghanistan. This so-called northern corridor was another touted achievement of the "reset." Then there's Russia's veto of a Security Council resolution to sanction Syria and its continuing arms sales to the regime of Bashar Assad. Moscow also resists putting any new pressure on Iran's nuclear bomb makers.Seen rationally, the Russian obsession with the imaginary enemy to the west is strange. Russia's security challenges loom larger from the Islamic south and the Chinese east. America and Europe would be the natural partners for a less paranoid and less repressive Russia.But the Kremlin is preoccupied with its own political survival, especially with elections coming. So it plays the nationalism card. Duma deputy Sergei Markov declared this week that "some forces in the West" are trying to stop "Putin from becoming president again" by funding democracy groups. What's probably bothering the regime more is declining public support at home. Mr. Putin's decision to take the presidency back, announced in September, hasn't gone as smoothly as he hoped. Many Russians have recoiled at the thought of another decade-plus of Putinocracy. Last week, at a mixed martial match, Mr. Putin was serenaded with boos and chants of "go away!" The rebuke was unprecedented and became an instant YouTube hit. Mr. Putin's United Russia party dominates the media and will keep a majority in the Duma in this weekend's parliamentary elections, and Mr. Putin will stroll back into the presidency in the spring. But the lesson for the U.S. concerns the limits of friendship with an authoritarian government that has no interest in being a strategic partner with the West.December 1, 2011Can Russia Help Us Withdraw From Afghanistan? DOV S. ZAKHEIM and PAUL J. SAUNDERSWashington AMERICA’S relations with Pakistan have been steadily deteriorating ever since a Navy Seals team killed Osama bin Laden near Islamabad in May. Matters became still worse in September, when Adm. Mike Mullen, former chairman of the Joint Chiefs of Staff, accused Pakistan’s intelligence agency of supporting an attack on the American Embassy in Kabul. And on Saturday, the relationship hit a new low when a NATO airstrike mistakenly killed two dozen Pakistani soldiers, and Pakistan retaliated by shutting down supply routes to Afghanistan that crossed its territory. Instead of relying heavily on Pakistan as a supply corridor, the United States should expand its cooperation with Russia, which has been playing an increasingly important role in military transit to and from Afghanistan. This would serve as both a hedge and a warning to the generals who control Pakistan. True, this proposal might seem ironic, as Afghanistan was the site of a nearly decade-long struggle between the United States and the Soviet Union toward the end of the cold war. (During that time, America cooperated with Pakistan to support Afghan mujahedeen fighting the Soviets.) But working with Russia today is in fact the key to preventing the United States from becoming a hostage to Pakistan’s dysfunctional politics and its ambitions in Central Asia. Expanding transit routes into and out of Afghanistan is a critical American national interest, and it would improve security for NATO forces while signaling that Washington was not beholden to Islamabad. It might also cause Pakistan to reassess its policy of providing sanctuary and support to terrorist networks operating against American forces. ? In the last two years, the Northern Distribution Network through Russia and Central Asia has evolved from a peripheral component of American wartime logistics to the principal path for non-combat supplies into Afghanistan. These routes — which traverse Russia, Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Latvia, Azerbaijan and Georgia — carry approximately 52 percent of all coalition cargo into Afghanistan. And under a 2009 air transit deal with Russia, 225,000 Americans have traveled there through Russian airspace on more than 1,500 military flights. These northern routes are far less dangerous than the supply routes that go through Pakistan, where militants often attack American and NATO convoys. As the Obama administration’s surge in Afghanistan draws to a close and we begin to reduce our military presence there, these routes will become even more significant. Indeed, the United States might be able to draw down its forces from Afghanistan safely, rather than subjecting American convoys to attacks while passing through Pakistan. Negotiations to withdraw American forces from Afghanistan through Russia will not be easy; thus far, Moscow has allowed only the shipment of non-combat supplies. Nevertheless, Russia agreed earlier this year to let certain types of armored vehicles cross its territory into Afghanistan, and Washington should pursue further cooperation. Facilitating the American drawdown from Afghanistan would allow Russian leaders to make an important contribution to regional security; successful American-Russian cooperation, with help from other countries along the northern routes, could also help maintain regional stability. Russia remains deeply conflicted about America’s wider role in Central Asia. ?However, the prospect of an American withdrawal has helped a number of Russian officials appreciate the security benefits of the American presence there. Indeed, during a Nov. 11 meeting outside Moscow, Prime Minister Vladimir V. Putin of Russia stated clearly that NATO played a “positive” role in Afghanistan and expressed concern about the consequences of a premature withdrawal. Many Americans forget that Mr. Putin was the first world leader to call President George W. Bush after the 9/11 attacks to offer his assistance, and Moscow quickly agreed to permit American bases in the former Soviet republics of Central Asia to support the war effort in Afghanistan. And even before 9/11, during the Clinton administration, Mr. Putin proposed United States-Russian cooperation against the Taliban; Washington turned down the offer for political reasons — a mistake we should not repeat. Critics may worry that relying on the northern routes to supply our troops in Afghanistan and withdraw them as we reduce our presence there will make the United States overly dependent on Russia. But because of Afghanistan’s location, we have no choice but to depend on others for access to its territory. The choice is between Pakistan on one hand, and Russia and Central Asian nations on the other. And Russia, unlike Pakistan, has not hosted militants who are killing Americans on the battlefield. Dov S. Zakheim, an under secretary of defense from 2001 to 2004, is vice chairman of the Center for the National Interest, where Paul J. Saunders is executive director. Base-less: new Kyrgyz president wants US out: 2 December, 2011, 09:28Edited: 2 December, 2011, 09:28 Newly-elected Kyrgyz President Atambayev says he will shut down the key US military base in the country. Former President Bakiyev wanted to do the same, but changed his mind a year before a major uprising ousted him from power.The Manas Airbase was opened in Kyrgyzstan in 2001, after the US-led coalition invaded Afghanistan and the need to supply the contingent with fuel, weapons and manpower arose. According to Pentagon reports, 15,000 troops and 500 tonnes of military cargo pass through the base every month. Some 1,200 of personnel are stationed there.However Manas has become the focus of controversy over the decade of its existence. On several occasions Kyrgyz police investigated crimes allegedly committed by Americans, but could not prosecute them because US troops stationed abroad are legally immune. The local population also complains that the transport planes coming to and from the airport cause much damage to the environment, reports RT’s Oksana Boyko.“I watch the US planes come and go several times a day. I know their schedule. The noise is disturbing, but I sort of got used to it. What’s really bad is that they are killing nature, the fields and the crops. And people’s health is getting worse too,” a local resident told RT.Yet another concern us that America’s enemies?– which there seem to be plenty of?– could target Kyrgyzstan for its hosting the Manas base.Then-President Kurmanbek Bakiyev tried to shut down the base in 2009. The corresponding law passed the parliament, and American soldiers were to leave the site in several months. However, the Pentagon agreed to raise the rent threefold, and Bakiyev’s government circumvented the law it had only just sponsored by re-naming the “Manas Military Base” as the “Manas Transit Center”.A year later, the regime was ousted by angry protestors on allegations of corruption, some related to payments from the US base.This year Kyrgyzstan elected a new president. Almazbek Atambayev is the first person to have assumed the office in a peaceful manner, rather than by overthrowing the previous government. During his election campaign, Atambayev had on several occasions announced that once the rent contract for Manas expires in 2014, it will no longer function as a military facility. He cited security concerns as the motive for the decision.However his predecessor Roza Otunbaeva, who came to power after Bakiyev’s government fell, urged not to jump to conclusions during her recent visit to the US. She said the fate of Manas will largely depend on the situation in Afghanistan. “Let’s wait and see what happens in 2014,” she said.The new Kyrgyz government will have a strong bargaining point in two years’ time, when the issue is laid on the table before the new American administration. But how strong it will be depends on how much they will need the base in Kyrgyzstan. Many political experts say America will under no circumstances withdraw its presence from the region, but will try to remain flexible regarding in which Central Asian countries to keep its troops. Kyrgyzstan is just one option.As for the Kyrgyz population, in addition to toxic fuel allegedly dropped on their fields, they get other things from Manas. Bazaars in capital Bishkek have been selling used military gear and accessories for years to great profit. So at least the vendors would be happy to have Americans stay after 2014.Kyrgyzstan: Russia Multiplying Citizenship Hurdles by: EurasiaNetDecember 2, 2011By Chris RickletonRelations between Bishkek and Moscow are on the upswing with the inauguration of a pro-Russian president in Kyrgyzstan. Even so, Kyrgyz labor migrants in Russia are facing a new challenge.Almazbek Atambayev took the presidential oath on December 1, and, in his inaugural address, he called for greater interethnic harmony. He also emphasized that his administration will work to strengthen ties with Russia. “Of course, our strategic partner is Russia,” he said.The new hassles faced by labor migrants indicate that underlying tension in the Kyrgyz-Russian relationship will not dissipate anytime soon. Long accustomed to a relatively painless citizenship-application process, Kyrgyzstanis now must contend with new rules that require more paperwork and a much longer wait, with less freedom of movement. At home, frustrated migrant groups are again calling for a dual-citizenship agreement with Moscow, but Bishkek has little leverage to negotiate with its powerful neighbor, particularly at a time when xenophobia in Russia seems to be growing.On October 24, Moscow announced that citizenship applications from citizens of Belarus, Kazakhstan and Kyrgyzstan would no longer fall under a “simplified” three-month process. New applications are expected to take a year, during which applicants cannot leave Russian territory.Kyrgyzstan’s economy is deeply dependent on its migrant laborers. Though officials admit their figures are unreliable, they say as many as 700,000 Kyrgyzstanis work abroad, the overwhelming majority in Russia. In late October, a Foreign Ministry official said migrants sent home over $1 billion in 2010, equivalent to roughly 22 percent of Kyrgyzstan’s GDP.For years, migrant groups have lobbied Bishkek to formalize a dual-citizenship agreement with Moscow. Without this, migrants who hold two passports fall into a legal gray area and become vulnerable to Russia’s increasingly thorough Federal Migration Service. Many Kyrgyz activists also hope that codifying dual citizenship would pave the way for bilateral arrangements to improve social protection and streamline burdensome, ever-changing travel and work regulations.“Dual citizenship would help solve many of the most important problems our migrants face,” says Kadyrbek Busurmankulov, chairman of Zamandash, a migrant-support group in Bishkek. “Currently our migrants contribute to social funds [which pay pensions and medical benefits] in Russia … but find it difficult to receive pensions and welfare unless they stay there and become citizens. This makes them less likely to return and invest in Kyrgyzstan.”For all the talk of dual citizenship, Bishkek is in a poor place to make demands, says Jomart Ormonbekov, a former Kyrgyz diplomat who now teaches international politics at the American University of Central Asia. “If there is political will in Russia, this [a dual-citizenship agreement] will be pushed through,” Ormonbekov told . “As it is, it is difficult for the Kyrgyz side to negotiate because Kyrgyzstan is such a small country.”Russia’s steady population decline makes it reliant on labor migration to keep its economy on an even keel. But according to Russian statistics, Kyrgyz nationals account for less than 4 percent of foreigners in the country. Such a small group has little leverage.The Kremlin appears unlikely to commit to any long-term bilateral agreement that would hinder its ability to “play the migration card” in diplomatic relations with its former satellites, said Ormonbekov. Recent events in neighboring Tajikistan serve as a warning for Bishkek: When Moscow felt snubbed by Dushanbe’s decision to jail a Russian pilot, Russian authorities quickly started rounding up migrants for deportation.Many Central Asians feel that racism, increasingly strong in Russia, is the main reason for the more stringent citizenship requirements. Parliamentary elections this month and presidential elections in March mean Russian politicians want to look tough on migration. In general, said Ormonbekov, Moscow has a “selective approach” that favors “Moldovans, Ukrainians and others that share the Slavic culture and religion, and who look less like outsiders in terms of appearance.”In April the chief spokesman of Russia’s Federal Migration Service, Konstantin Poltoranin, told the British Broadcasting Corp that many of the country’s non-Slav guest workers fail to assimilate into Russian society and that, over the longer term, “the fate of the white race is at stake.” Though Poltoranin was fired for his comments, he caused panic among many Kyrgyz migrants.“That was scary,” recalled 27-year-old Sayid Nurbekov, who works seasonally as a bricklayer in Novosibirsk and returns to Kyrgyzstan each winter. Fearing a shift in official attitudes, Nurbekov and nine others with whom he shared accommodations applied for Russian citizenship in May, receiving it by the end of the summer.“ This way, when I return next year, I won’t have any headaches,” Nurbekov said.His choice was prudent. According to the Kyrgyz Embassy in Moscow, the increase in the number of documents now required to obtain citizenship has made Kyrgyzstanis vulnerable to scams, with criminals posing as middlemen charging up to $1,000 dollars to “fix” Russian citizenship, RFE/RL reported on November 2.A representative of Russia’s Federal Migration Service at the Russian Embassy in Bishkek refused ’s request for comment.At home, political figures and advocacy groups are pressing Bishkek to do more to lighten the bureaucratic load on their nationals in Russia. Kubanychbek Isabekov, a candidate in the recent presidential elections, made the issue a central part of his electoral campaign.Kyrgyz lobbying groups have little power, because decisions on dual nationality and citizenship applications are entirely up to Moscow, said Nurdin Tynaev, head of the Center for Citizens of the Kyrgyz Republic Employed Abroad at the Ministry of Labor, Employment and Migration. “Our constitution already allows citizens to hold two passports, but for true dual citizenship, an agreement must be struck with a foreign government,” Tynaev explained. “Forcing the government of a foreign country to make changes favorable to [our citizens] in its migration regime – this we unfortunately cannot do.”Chris Rickleton is a Bishkek-based journalist.'No reason for divorce': 2 December, 2011, 12:26Edited: 2 December, 2011, 12:35 NATO’s Deputy Assistant Secretary General talks about relations with RussiaNATO Deputy Assistant Secretary General for the Public Diplomacy Division, Stefanie Babst, has visited Russia. She is the first high-ranking NATO official to travel to the country after Dmitry Medvedev’s recent harsh statement on missile defense. In an interview with Kommersant’s ELENA CHERNENKO, Ms. Babst explained why we should not exaggerate the implications of disagreements on this issue.??? Kommersant: How did NATO react to President Dmitry Medvedev’s recent statement on missile defense?Stefanie Babst: In the last 10-15 years, there have been many high and low points in Russia-NATO relations. Meanwhile, Russia has often identified a single topic – which is currently missile defense – that was a main concern. Nevertheless, we have taken president Medvedev’s recent statement seriously. There is only one way we can respond: we intend to adhere to the decisions, which were made a year ago at the summit in Lisbon, where all of the 28 Alliance members agreed that we are facing real missile threats, to which we need a real response. But I would like to stress that our system is completely defensive and not directed against Russia. At the same time, we had decided to “reset” our relations and strengthen cooperation with Russia. This proposal remains in effect. In addition to missile defense, NATO and Russia share many common interests in security. Nevertheless, in terms of missile defense, I hope that the day will come, when we can reach an acceptable solution for all.? K: What did you mean when you spoke about the connection between the statement on missile defense and the domestic context?? SB: You will soon hold parliamentary and presidential elections. At such times, high-ranking officials and politicians often make loud statements that are mainly addressed to the domestic audience. That it something politicians do in many countries, and not only Russia.K: Are you saying that President Dmitry Medvedev’s statement was intended for “domestic consumption”?SB: I carefully followed what was said by Russian experts on this issue, and many of them came to this conclusion. Either way, however, the message has been sent. And it was heard in the NATO headquarters. NATO’s secretary general has already issued a statement on this matter.? K: It was surprisingly reserved.? SB: Did you expect him to puff up and beat his chest? (Laughs). But seriously, as was already noted by the secretary general, during Russian Deputy Defense Minister Anatoly Antonov’s meetings with representatives of NATO member states in Brussels, absolutely all NATO members supported the idea of continuing the dialogue and cooperation on missile defense with Russia. No one said: “Excuse me, I changed my mind”.? We want to move forward and deepen our cooperation with Russia in this and other areas. At the same time, we believe it is impossible to build a strategic partnership with someone while continuing to point fingers at them. I see this as an inconsistency. In this sense, we hope that the rhetoric, which we faced in recent days, will subside, and we can get back to work.K: How do you see the image of the Alliance in Russia?SB: I not only follow the press, but opinion polls as well; and I can gladly say that most Russian citizens would like Russia to become a part of the Euro-Atlantic structures. And I would be very surprised if any 20-year-old Russian would say that he would like to continue living in isolation. Russia’s young people also want to study in Utrecht or Rome, they want to move freely around the world and choose their place of residence. They want to be a part of the larger European structure. And NATO – is a part of that structure.? At the same time, I am perfectly aware that, for some political forces in Russia, NATO is an enemy, or at least an organization that is easy to present as an enemy, so as to accuse it of all the sins possible. But I don’t believe that the majority of Russian citizens share this opinion. I think that most Russian citizens do not share nationalist and isolationist ideas.? K: You mentioned one inconsistency in Russia-NATO relations – missile defense. But Moscow sees other inconsistencies, such as that NATO does not want to cooperate with the Collective Security Treaty Organization.SB: In politics, just like in everyday life, everything is built on reciprocity. If one side complains about a detail that it finds completely unsuitable, and that side is ready to disregard everything that has already been achieved due to that one disagreement, I find that counterproductive. In all honesty, I completely fail to understand Russia’s obsession with one sphere of cooperation and the neglect for the things that we have accomplished in other areas. I was sitting with secretary general Rasmussen at the Lisbon summit, and I perfectly remember how president Medvedev talked about the “reset”. Why are we then constantly continuing to question out relations and the value of our partnership??? It’s the same as questioning your marriage on a daily basis. Perhaps one of the spouses does not like one detail, but that’s no reason for divorce. We need to come to terms with the fact that we won’t come to an agreement on certain issues. And that’s normal. The main thing is for us to continue practical cooperation in all areas, where accord has been reached.Russia should forget ‘old granny Europe’: 2 December, 2011, 12:46Edited: 2 December, 2011, 12:56 Evgeny Shestakov Political scientist Aleksandr Rahr advises Moscow to take a closer look at the 2020 model of Europe??He was flattered when, instead of calling him a German, which would have been correct according to his passport, one Russian newspaper called him a German-Russian political scientist. Aleksandr Rahr looks at the purpose of his role as director of the Berthold Beitz Center under the German Council on Foreign Relations as a “mediator” between Russia and Germany. He does not consider this word, which is often used in trade, shameful.? On Thursday, Rahr became a highly-valued honorary professor at Moscow’s Higher School of Economics. In his inaugural speech, the renowned scholar and author of hundreds of articles and six books, spoke about trade, which has brought relations between Moscow and Berlin to a new level. In particular, he spoke about the famous project designed by German diplomacy, titled “Change through rapprochement”.? ?“In Western political science,” explained Rahr, “disputes over what brought down the Soviet Union continue – whether it was Reagan’s arms race or the soft, but not less effective, Ostropolitik, which softened Soviet domestic policy”. In his speech, Rahr attempted to address five key issues affecting bilateral relations between Germany and Russia, which provide an assessment of the missed opportunities and mistakes, committed by the EU in relation to Moscow. These failures have meant that today, it is impossible to find a person in the West, who seriously believes in the previously-popular project of a Common European Home from the Atlantic to the Pacific.??? On the contrary, according to Rahr, in the last decade, certain “dogmas” have emerged in Western European politics. “Ideas of freedom, social equality, and individualism have formed into a militaristic ‘liberal ideology”. Russia could have been accepted into some common European association 20 years ago, but only as a junior partner. Of course, such “largesse” did not suit Moscow, and in 2005-2008, the world could have once again found itself in the midst of a new Cold War.?? The disregard for Russia’s interests, which continues to prevail in the West, and the US and EU’s constant refusal to return to Moscow its traditional status as one of the great European powers, says the German-Russian political scientist, are paving the way for new conflict in the future. Western Europe stubbornly refuses to see the reality which, according to Rahr, is that Europeans will only be able to meet future challenges together with Russia.? In Europe, argues the expert, there isn’t a single country other than Germany, that understands the level of Russia’s importance for Europe’s stability. Today, it is in Berlin’s interests to build a new Europe together with Russia, not in isolation from it. Moscow ought to take a closer look at the Old World. “Not today’s old granny Europe,” says Rahr, “but the European Union of 2020”. Russia should not put relations with Europe on the back burner, when it manages temporarily to establish a good dialogue with the United States. That is how the ruling German elite, clearly offended, perceives the situation when it sees Moscow forget about its potential allies in Europe and listen to the positive signals from Washington.? The crisis will change Europe: in the future, the main role will be played by Germany, which is currently carrying the heavy burden of rescuing its neighbors. If Germans were to elect a chancellor today, it would be a representative of the Social Democratic Party, which advocates the development of so-called “Eastern Policy”. When there is a change of power in Germany, argues Rahr, “a window of new opportunities” will open for Moscow. He is confident that a time will come when Russia will offer the European Union a concept of joint solutions to the economic problems facing the Old World. “The first talks on this subject could be conducted in a “troika” format: Berlin-Moscow-Paris, which has not convened for a whole six months,” says the political scientist. The honorable professor at the Higher School of Economics suggests the next meeting should be initiated by the Russian leaders.National Economic TrendsRuble Weakens for Second Day Against Dollar After Urals Crude Oil Retreats Jack Jordan - Dec 2, 2011 8:17 AM GMT+0100 The ruble weakened for a second day against the dollar after Urals crude, Russia’s main export earner, dropped yesterday. The Russian currency lost 0.2 percent to 30.806 per dollar as of 10:28 a.m. in Moscow, the biggest fall since Nov. 24. That pared its gain in the week to 2.3 percent. The ruble was little changed at 41.485 per euro, leaving it steady at 35.5956 against the central bank’s target dollar-euro basket. Urals dropped 1.3 percent to $109.52 a barrel yesterday after French President Nicolas Sarkozy said the euro area would risk “exploding” if members fail to converge on fiscal policies. The EU is Russia’s largest trading partner. Russia’s $3.5 billion of bonds due 2020 yielded nine basis points, or 0.09 percentage point, more at 4.672 percent. The yield on the country’s only ruble Eurobond, due in 2018, climbed 17 basis points to 4.476 percent. To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@ To contact the editor responsible for this story: Gavin Serkin at gserkin@ December 02, 2011 09:15Banks have 645.6 bln rbs on CBR correspondent accounts on December 2.. December 2 (Interfax) - Russian banks have 645.6 billion rubles on correspondent accounts in the Central Bank as of December 2 including 447.5 billion rubles for Moscow banksThe balance on December 1 was 735.5 billion rubles and 532.6 billion rubles, respectively.Banks had 181.1 billion rubles on deposit accounts in the Central Bank on December 2 against 219.9 billion rubles on previous day.10:00?02/12/2011ALL NEWSRussia has major reserves, further privatization – good source, December 2 (Itar-Tass) —— Russia has major reserves and to the question where to take money Sberbank President German Gref said that “further privatization is a good source.” “This is very big money, which can be yielded in the years to come,” he said with confidence in an interview with the Komsomolskaya Pravda newspaper.However, “it is inadmissible to spend the budget revenues from state property sale for current expenditures,” Gref believes. “These revenues should be invested in new investment projects. So, we will create permanent sources of tax revenues, and they can be spent for anything,” he said.Russia has almost no debts, the minimal budget deficit, but “you forgot about the capital outflow,” as “we are ranked in the second hundred of countries in the figures of the investment climate,” Sberbank president recalled.Gref noted that Strategy Partners Group, a Sberbank daughter company, and the Davos Economic Forum have conducted a survey and set 12 priorities, in which Russia needs some changes. “The top priority is the quality of work of the institutions. The judicial system, state agencies, services and law enforcement agencies. The second priority is the infrastructure. The quality of roads, ports, railways, communication lines, electric power lines. The third priority is macroeconomic stability. On the one hand, we have the one, but the positive effect of no debts and the minimal budget deficit is minimized with the dependence from the oil prices. The fourth priority is the quality of pre-school and school education. The fifth priority is the condition of higher education. The sixth priority is the health care system,” he pointed out. “There are six more factors of competitiveness, which push our economy downward, but should lay a basis for growth,” Gref said.“The demographic decline is one more serious global challenge that we are facing,” he remarked. “Starting from 2012 we will witness a sharp decline of workers in economy and the growth in the number of pensioners. With such demographic situation the countries rarely succeed to show a good economic growth rate,” he stressed.Gref, who headed the Ministry of Economic Development and Trade in 2000-2007, said that for him “freedom is one of the most important values, particularly in the expression of his thoughts.” He recalled that “during his work in the government he had never concealed his point of view,” but “the then president Vladimir Putin did not shut the mouth to us and did not make us say something else that we did not believe in.”TEXT-Fitch: Most Russian government funding utilised by state banks, Dec 1 2011(The following statement was released by the rating agency)Dec 01- Fitch Ratings says in a report published today that state-owned banks have accounted for a majority of the recent increase in the sector's short-term borrowing from government institutions. Fitch notes that to a large extent these facilities were used to fund growth, while sector liquidity remains manageable. However, the agency notes the increased dependence on state funding and somewhat weaker asset/liability maturity profiles of some institutions, in particular JSC Bank VTB (VTB, 'BBB'/Stable).At 1 November 2011, the volume of funding provided to the Russian banking sector by the Central Bank of Russia (CBR), the Ministry of Finance and regional governments exceeded RUB2.6tn (8.4% of sector liabilities). This is a large number in itself, and also a major increase from RUB1.2tn (4.2% of sector liabilities) at 1 July 2011, giving rise to investor concerns about the liquidity positions of Russian banks. Strong demand for liquidity persisted in November, although this was mostly refinancing of previously raised volumes, in Fitch's view, and the current structure of the sector's government borrowing is therefore likely to be similar to that at November 1.A review conducted by Fitch of public disclosures of its 55 rated Russian banks indicates that state-owned banks accounted for a high 84% and 88% of borrowing by rated banks from government institutions at 1 November and 1 July respectively, compared with their 55% share of system assets at end-Q311. Fitch-rated privately-owned banks contributed only 11% of the borrowing at 1 November (compared to their 28% share of assets), while foreign banks accounted for 5% (16% of assets). As a result, government funding made up an estimated 11.6% of the reviewed state-owned banks' liabilities at 1 November, but only 8.4% at private banks and 5.2% at foreign banks.Fitch believes the main reason for the borrowing increase were the efforts of a few banks, in particular VTB, to continue lending to the corporate sector, while the latter faced more limited capital markets access and banks experienced slower deposit growth. The increase in government funding between 1 July and 1 November (RUB1.2tn) was close to the difference between the growth of sector loans (RUB2.4tn) and deposits (RUB1.2tn) during the same period.Liquidity clearly tightened in H211, but Fitch does not believe that to be a sign of heightened stress. Rather, this seems to have been driven by strong corporate credit demand and lower than expected government budget spending, while some banks' attempts to earn margin on the interbank market may also have contributed to their borrowings from the CBR. The absence of any marked deposit outflow, or of conversion of ruble deposits into FX-denominated ones, supports this view.Although state funding is not of an emergency nature, Fitch is somewhat concerned that such significant borrowing has taken place in a currently relatively stable economic environment. However, Fitch believes that in a severe liquidity squeeze - not a base case expectation at present, but something which cannot be ruled out, given global market instability and the economy's oil price dependence - the Russian authorities would take further measures to support system liquidity.To this end, CBR's First Deputy Chairman, Alexei Ulyukaev, has said that repo funding could increase to RUB2tn, compared to the soft RUB1tn limit currently in force, in case of need. Furthermore, the CBR has recently lowered the rating level for assets eligible for repo refinancing to 'B-' from 'B+' and, if necessary, the CBR could also once more roll out unsecured funding as was seen in Q408. At present, Fitch views these as pro-active precautionary measures, rather than a sign that a significant number of Russian banks are currently experiencing liquidity stress.The full report, titled "Russian Banks' Government Borrowings: Mainly Utilised by State-Owned Banks; Liquidity Manageable", is available on .Business, Energy or Environmental regulations or discussionsRussian markets -- Factors to Watch on Dec 2 Dec 2, 2011 12:38am EST MOSCOW, Dec 2 (Reuters) - Here are events and news stories that couldmove Russian markets on Friday. You can reach us on: +7 495 775 1242 STOCKS CALL (Contributions to moscow.newsroom@): Chris Weafer, Troika Dialog: "Equities are marginally lower whilecommodities are a little better. One-month Brent is back above $109 p/bbl,copper is 20 basis points better and gold is at $1,744.9 per ounce, a gain of 30basis points. The dollar-euro rate is unchanged from yesterday's level at$1.346. All of which suggests a stable opening for Moscow's bourses this morningwhile the rouble should benefit from the better oil price." OLMA: "Strong movements are unlikely this morning as external backgroundlooks uncertain. Closing day's levels will much depend on U.S. labor market datadue at 17.30 Moscow time" EVENTS (All times GMT): MOSCOW - Russia's Energy Ministry publishes monthly oil and gas statistics; ST. PETERSBURG - PM Putin visits Baltic shipyard in St Petersburg; MOSCOW - Bank St Petersburg to report Q3 earnings under IFRS; MOSCOW - President Dmitry Medvedev chairs his Security Council meeting; IN THE PAPERS : Sweden's IKEA is suspending plans to build more large stores inRussia, Vedomosti business daily reports citing Per Wendschlag, head of thecompany's Russian business. TOP STORIES IN RUSSIA AND THE CIS : TOP NEWS: PREVIEW-Putin's party set to lose ground in Russia INSIGHT-In Russia, nationalists turn on Putin COMPANIES/MARKETS: Citi appoints Slavinskiy to head CIS banking unit Russian stocks extend gains, rouble down TABLE-Russian cellphone penetration 155.5 pct in Oct POLL-Russian stocks set for post-election rally Gazprom to cut investments, up dividends - IFAX Russia's Cherkizovo Q3 net profit rises 18 pct LUKOIL targets 3.5 pct annual output growth Rusagro Q3 profit hit by cane sugar market turmoil Nomos Bank Q3 net misses forecast on trade loss Russia Novatek buys regional gas distributor ECONOMY/POLITICS: Russian wine ruling to hit EU exports-Italian lobby Russia warns West over Iran tension INTERVIEW-Russians tire of Putin-opposition leader Putin, Medvedev pledge public sector cash before vote Putin's United Russia looks to soldiers for votes INTERVIEW-Putin must open up Russia to avoid turmoil IMF sees no Belarus loan talks this year ENERGY: Russia Dec diesel export ex-Primorsk to jump -sources EU, Russia say third package conflict can be solved Gazprom sees significant progress in Ukraine talks COMMODITIES: Norilsk executive sees palladium deficit in 2012 Urals strong, Iran oil sanctions delayed MARKETS CLOSE/LATEST: RTS 1,547.9 +0.1 pct MSCI Russia 829.1 +0.6 pct MSCI Emerging Markets 954.8 -0.5 pct Russia 30-year Eurobond yield: 4.318/4.261 pct EMBI+ Russia 281 basis points over Rouble/dollar 30.7450 Rouble/euro 41.4875 NYMEX crude $100.05 -$0.15 ICE Brent crude $109.33 +$0.34 For Russian bank balances see For Russian company news, double click on Treasury news Corporate debt Russian stocks Russia country guide All Russian news Scrolling stocks news Emerging markets top news Top deals European companies (Compiled by Vladimir Sldatkin)Gazprom Gains on Dividend as RTS Futures Rise: Russia Overnight 02, 2011, 1:11 AM ESTBy Leon Lazaroff and Halia Pavliva Dec. 2 (Bloomberg) -- OAO Gazprom climbed to a two-week high in New York and Russian stock futures advanced on speculation the gas export monopoly will reserve about $6.5 billion a year for dividends and as expanding U.S. manufacturing boosted the outlook for global energy demand.American depositary receipts of Gazprom, the world’s largest natural gas producer, jumped for a fourth day, while futures expiring in December on the dollar-denominated RTS index rose 0.1 percent to 154,755 by 2:50 p.m. in New York yesterday. The Bloomberg Russia-US 14 Index of Russian companies traded in New York was little changed at 100.49. OAO Mobile TeleSystems slid for the first time in five days after the company’s mobile- phone subscriber numbers in Russia dropped the most since at least 2008.Gazprom, which accounts for 16 percent of the benchmark Micex index, is budgeting about 200 billion rubles ($6.5 billion) a year for dividends starting 2012 through 2014, Interfax reported, citing an unidentified person familiar with the plan. That would make the 2012 cash dividend 6.40 rubles a share, the highest payment to shareholders since at least 2005. The U.S. Institute for Supply Management’s factory index increased to 52.7 in November, the fastest pace of growth in five months, data released yesterday showed.“Gazprom is now a dividend story, and that’s quite a bit different from what people have always thought it was,” Bruce Bower, a partner at Moscow-based hedge fund Verno Capital, which manages more than $150 million in Russia, said by phone yesterday. “For some time, you didn’t see Gazprom’s free cash flow, but now you’re getting rewarded to be a minority shareholder.”Trimming InvestmentsGazprom ADRs climbed 2.7 percent to $11.81, the highest level since Nov. 16. The company’s shares in Moscow added 3.4 percent to 181.40 rubles, or the equivalent of $5.90. One Gazprom ADR represents two ordinary shares.The Moscow-based company is paying a dividend of 3.85 rubles this year, and paid 36 kopeks in 2009, the lowest in data compiled by Bloomberg back to 2005. Gazprom may also trim planned investments in 2012 by 33 percent to 800 billion rubles, according to Interfax. Gazprom spokesman Sergei Kupriyanov wasn’t available to comment on the report when contacted in Moscow yesterday.“Investors hope that Gazprom is finally turning its face to them and has started planning substantial dividends,” Sergey Vakhrameev, a senior analyst at brokerage IFC Metropol, said by phone from Moscow.U.S. UnemploymentUnited Co. Rusal, the world’s largest aluminum producer, sank 3.3 percent to HK$5.54 in Hong Kong as of 11:44 a.m. local time. The MSCI Asia Pacific Index dropped 0.4 percent before a U.S. government report that may show the nation’s unemployment rate held at 9 percent last month, according to a Bloomberg economist survey.The RTS Index in Moscow was little changed yesterday at 1,547.85, and the 30-stock Micex Index gained 0.4 percent to 1,505.27, the highest level since Nov. 8. The RTS Volatility Index, which measures expected swings in the index futures, dropped 1 percent to 48.17 points, declining for the third day this week.The Market Vectors Russia ETF, a U.S.-traded fund that holds Russian shares, lost 1.3 percent to $30.80, while the Bank of New York Mellon Russia ADR Index dropped 2.6 percent to 827.17, falling for the first time in five days.By the end of 2012, the RTS will gain 39 percent to 1,980 and the ruble-denominated Micex will advance 32 percent to 1,850, analysts led by Konstantin Chernyshev, Vyacheslav Smolyaninov and Dmitry Dudkin at UralSib Financial Corp. in Moscow wrote in a report e-mailed yesterday.Russian Economy“We like the telecom sector, electricity generators, strong retail operators and inexpensive commodity producers that promise high dividends in 2012,” the analysts said in the report.Russia’s gross domestic product will probably grow more than five times faster than the European economy in 2012, according to UralSib’s estimates. Russia’s $1.5 trillion economy may expand 2.8 percent next year, according to the bank.“Everywhere there is a concern about global economic growth slowing and Russia seems to be protected,” Alan Webborn, a banking analyst at Societe Generale SA in London said by phone yesterday.Russian subscribers for Mobile TeleSystems, the nation’s biggest mobile-phone operator, fell the most since at least 2008 in October, decreasing 1.1 percent to 105 million, according to data released by Moscow-based Advanced Communications & Media advisory yesterday. The company’s ADRs snapped a four-day advance, sliding 3.8 percent to $16.63, the biggest drop since Nov. 9.Lukoil FallsMTS stock on the Micex rose 1 percent to 213.17 rubles, or the equivalent of $6.93. One ADR equals two ordinary shares.VimpelCom Ltd., the country’s third-largest mobile carrier by subscribers, fell 0.8 percent to $11.82 in New York.OAO Lukoil dropped the most in almost two weeks in U.S. trading after Russia’s second-largest oil company said it will boost spending to revive output growth. Lukoil’s ADRs declined 2.5 percent to $54.80, the biggest intraday slide since Nov. 21.The Moscow-based company plans to invest $48 billion between next year and 2014 and aims to spend more than 70 percent of the $13.9 billion earmarked for next year to halt declines at West Siberian fields and ramp up the West Qurna-2 project in Iraq, Vagit Alekperov, Lukoil’s chief executive officer, told reporters yesterday in Moscow.Lukoil shares in Moscow fell 1.1 percent to 1,704.50 rubles, or the equivalent of $55.41, One ADR equals one ordinary share.RusHydro RecommendationCrude for January delivery on the New York Mercantile Exchange sank 0.2 percent to $100.04 a barrel in after-hours trading, extending yesterday’s 0.2 percent drop. Brent oil for January settlement fell 1.4 percent to $108.99 on the London- based ICE Futures Europe exchange. Urals crude, Russia’s chief export blend, lost 1.3 percent to $109.52. Oil and natural gas contribute about 17 percent of Russia’s GDP.ADRs of OAO RusHydro, Russia’s largest renewable energy producer, jumped 3.4 percent to $3.97, a three-week high, after JPMorgan Chase & Co. reiterated its “overweight” recommendation on the stock while cutting the price target on its Moscow-traded shares by 30 percent to 1.54 rubles. RusHydro’s Micex shares gained 2 percent to 1.22 rubles, or 4 cents. One ADR equals 100 ordinary shares.The Micex has lost 11 percent in 2011 and trades at 5.3 times analysts’ earnings estimates for member companies. That compares with a 16 percent slide for Brazil’s Bovespa index, which trades at 10.5 times estimated earnings, according to data compiled by Bloomberg. The Shanghai Composite Index trades at 11 times estimated earnings, and the BSE India Sensitive Index has a ratio of 14.--With assistance from Anna Shiryaevskaya and Zoya Shilova in Moscow, Ksenia Galouchko in New York and Darren Boey in Hong Kong. Editors: Emma O’Brien, Marie-France HanTo contact the reporters on this story: Leon Lazaroff in New York at llazaroff@; Halia Pavliva in New York at hpavliva@To contact the editor responsible for this story: David Papadopoulos at papadopoulos@Polymetal okays share purchase offer , 02.12.2011, London 12:36:35.The board of directors of gold and metal producer Polymetal approved a mandatory offer by its subsidiary PMTL Holding Limited to purchase up to 66.7m shares in Polymetal at RUB 531.15 (approx. USD 17.2) per share from its minority shareholders, Polymetal said in a statement.??????The offer is part of a restructuring deal involving the transfer of a majority of Polymetal's shares to a newly established holding Polymetal International, which had its shares listed on the London Stock Exchange in November 2011. At the first stage, Polymetal was expected to swap its ordinary shares and Global Depositary Receipts for Polymetal International's shares at a one-to-one ratio, but only 83.3% of the company's shareholders accepted the offer. Inter RAO ups stake in OGK-2 , 02.12.2011, Moscow 12:10:00.Russian electric power export and import operator Inter RAO UES has increased its voting stake in power generating company OGK-2 to 5.7% from 2.4%, Inter RAO UES said in a report today.??????The stake was increased following the takeover of genco OGK-6 by OGK-2, which was completed on November 1 to form the country's largest thermal power producer with installed capacity of 17,869 MW. December 02, 2011 10:14Bank St. Petersburg net profits surge 150% to 5.638 bln rubles for 9M. Dec 2 (Interfax) - Bank St. Petersburg (RTS: STBK) saw its net profits calculated to International Financial Reporting Standards (IFRS) soar 150% year-on-year to 5.638 billion rubles for January-September, the bank interest income was up 14.2% at 10.335 billion rubles.The bank's credit portfolio grew 11% to 203.366 billion rubles over the nine months.Bank assets increased 12% to 305.819 billion rubles.Cf(Our editorial staff can be reached at eng.editors@interfax.ru)Bank St. Petersburg Q3 net profit down 8 percent ESTMOSCOW, Dec 2 (Reuters) - Bank St. Petersburg , one of the largest non-state listed lenders in Russia, posted an 8 percent fall in third-quarter net profit, due to trading losses and accumulation of reserves.Profit fell to 1.1 billion roubles ($36 million), compared with a forecast for 1.0 billion in a Reuters poll in which the bank's income was seen pressured by euro zone financial woes."The third quarter was not easy both for the economy as a whole and for the bank as financial markets weathered a situation in Europe," director Alexander Savelyev said.In the first nine months, Bank St Petersburg's net profit rose 145 percent to 5.6 billion roubles. ($1 = 30.75 roubles) (Reporting by Oksana Kobzeva; Writing by Andrey Ostroukh; Editing by Dan Lalor)Rostelecom to reshape retail operations , 02.12.2011, Moscow 10:47:06.Russian national telecommunications operator Rostelecom intends to register a subsidiary that will roll out a retail chain under the operator's own brand in 2012, RBC Daily reported today, citing the company's press office.??????The operator intends to open flagship stores in Moscow, St. Petersburg, and Yekaterinburg and is looking to develop a shop-in-shop model. It will shut down stores with a low profit margin and team up with partners in the regions. Up to 1,500 of Rostelecom's stores will be run by franchisees.??????Currently, Rostelecom has over 2,000 stores under its own brand and about 1,000 stores under the brands of interregional telecommunications companies that have been integrated into Rostelecom. Rostelecom, Yota ink 4G deal , 02.12.2011, Moscow 13:00:41.Russia's incumbent telecommunications operator Rostelecom and Scartel, a mobile operator providing services under the Yota brand, clinched an agreement for joint development and utilization of wireless 4th generation networks, Rostelecom said in a statement.??????Under the terms of the agreement, Rostelecom will be able to use Yota's wireless networks as a Mobile Virtual Network Operator (MVNO) and to install equipment on Yota's infrastructure, while the latter will gain access to Rostelecom's wire channels.??????The deal will help both companies to roll-out 4G networks at a faster pace, and to reduce capex, as well as operating costs, Rostelecom's CEO Alexander Provotorov said. ??????Earlier, Russia's second largest mobile operator MegaFon had signed a similar agreement with Yota. AvtoVAZ November sales down 17 percent ISTMOSCOW, Dec 2 (Reuters) - AvtoVAZ, Russia's biggest carmaker, said domestic sales fell 17 percent in November.AvtoVAZ, 25 percent owned by French group Renault, said on Friday it sold 42,028 Ladas, down from sales of 50,858 in November 2010 that included cars produced by its subsidiaries.The year-to-date figure was up 13.4 percent at 535,215 units. (Reporting by Vladimir Soldatkin; Editing by Dan Lalor)Siemens closes sale of Power Machines stake to Mr Mordashov, 02 Dec 2011Interfax reported that Siemens has closed the sale of its blocking stake in Power Machines to Mr Alexei Mordashov's Highstat Ltd, the Russian company's core shareholder.The cost of the deal was not disclosed.The sale of the 25% + 1 share is part of a deal for Siemens and Power Machines to create a joint venture to produce gas turbines, on which an agreement was also signed on December 1.The Federal Antimonopoly Service has cleared Highstat to buy 29.731% of Power Machines and consolidate 100% of the company. Siemens told Interfax that the FAS gave clearance for the sale in November.Siemens will own 65% of the gas turbine joint venture and Power Machines will have 35%. Investment in the project will be EUR275 million.Highstat now owns 95.3% of Power Machines and is required by law to offer to buy the remaining shareholders out.The joint venture will be based at LLC Interturbo, which the partners have owned since 1991, and which will be re-named LLC Siemens Gas Turbines Technology. Initially, the joint venture will produce the E and F class 168- and 292-megawatt turbines at existing facilities. A new manufacturing complex will be built by 2014.Power Machines builds and supplies equipment for hydropower, thermal energy, and nuclear power stations, as well as power stations with combined steam-to-gas cycles. It has production assets in the Leningrad and Pskov regions, in St. Petersburg and Kaluga.Siemens had turnover of EUR1.3 billion in Russia in the financial year ended September 30 and orders worth EUR 2.6 billion.(Sourced from Interfax)FAS APPROVES UNILEVER-KALINA DEAL 2, 2011Newswires report that Unilever has received permission from the Federal Antimonopoly Service (FAS) to acquire 100% of Kalina. Approval was received on November 14, a month after the deal was announced. To recap, Unilever is acquiring 82% of Kalina, valuing 100% of the company's equity at R21.5 bln (around $697 mln at the current exchange rate). The valuation is based on 5.2 mln outstanding shares in circulation (excluding 18.6% of quasi-treasury shares held on the balance sheet of Kalina's subsidiary). This returns a price of R4,098 ($132.9) per share. ?The company expects the acquisition to be completed by year end followed by the buyout offer to Kalina's minority shareholders. The following is what we think the supposed time frame may look like.Magnit secondary offering priced at $85/share ESTMOSCOW, Dec 2 (Reuters) - Magnit , Russia's largest food retailer by stores, said on Friday it priced a secondary share offering at $85, as it hopes to raise $350 million.The Krasnodar, southern Russia-based retailer will issue 10.81 million new shares, it said, increasing its share capital by 12 percent.Magnit plans to spend a record $1.8 billion opening at least 50 hypermarkets and up to 1,000 convenience stores this year, with bank loans and domestic bonds being the main financing instruments.Chief executive and controlling shareholder Sergei Galitskiy said in May the company was also considering other options than debt instruments. (Reporting by Vladimir Soldatkin; Editing by Dan Lalor)Magnit retailer sets price per share for SPO at $85 02/12/2011MOSCOW, December 2 (RIA Novosti)Russian grocery store chain Magnit has announced the price for an additional issue of shares in terms of its Secondary Public Offering at $85 per share, the company said on Friday.The company may raise around $919 million from the SPO. Magnit plans to use the raised funds to expand its hypermarkets chain, develop logistic business and implement its 2012 capital expenses program of $1-1.4 billion.Morgan Stanley and Russia's VTB Capital are acting as the coordinators and bookrunners of the issue.Magnit comprises 4,767 stores as of September 30, 2011, including 4,593 convenience stores, 76 hypermarkets and 98 cosmetics stores.EBRD lends $100 million to Russia’s FESCO$100_million_to_Russia%E2%80%99s_FESCO/02/12/2011 02:39 (01:00 minutes ago) The FINANCIAL -- A long-term EBRD loan of US$ 100 million to FESCO, one of the leading integrated transportation operators in the Russian market, will fund the first phase modernisation of commercial infrastructure in the port of Vladivostok and other priority logistics projects. The Vladivostok project is vital for expanding freight traffic along international transit routes running through the Russian Far East.The Bank’s seven-year loan will enable FESCO to upgrade the Vladivostok commercial seaport, a major infrastructure hub in this important region, as well as the company’s intermodal container operations. The aim is to turn Vladivostok into a modern, clean and efficient port focused on handling high-value and environmentally friendly cargo, particularly in containers. Most of the port infrastructure in the Russian Far East was built over 50 years ago and the current lack of adequate port and inland container terminal facilities have created bottlenecks which hinder the growth of export-import flows through Russia’s gateways.As one of the few companies on the Russian market which owns facilities at every stage of the logistics chain, including shipping, railways and port facilities, FESCO’s strategy is to provide a single-service intermodal transportation system for its customers, particularly in the container market. In August 2008 the EBRD acquired a 3.7 per cent equity stake in FESCO, whose shares are listed on MOSCOW ’s MICEX and RTS exchange.Higher Dividends Expected Across Russia, Gas Prices . 2 (Bloomberg) -- Kingsmill Bond, chief Russia strategist at Citigroup Inc., talks about investing in Russia and the increase in gas prices. He speaks from Moscow with Linzie Janis on Bloomberg Television's "Countdown." (Source: Bloomberg)Activity in the Oil and Gas sector (including regulatory)Urals tastes better for Europeans: 2 December, 2011, 11:30Edited: 2 December, 2011, 11:30 Russia could gain on rising tension between the Western powers and Iran. France intends to ban oil imports from Iran following the storming of the British Embassy in Tehran at the weekend. ?The conflict over Iran’s nuclear programme has already pushed Russian crude to a rare premium over North Sea Brent. Since Russian oil is widely consumed by European refineries on the Mediterranean it could become the only alternative if Iran comes off the market according to Natalia Beales from Platts.UPDATE 1-Russia Nov oil output at post-Soviet record high EST(Adds record winning streak in Urals, background on duty cut, Saudi competition)* Main Russian grade in record run vs benchmark* Strong margins for grade* Duty cut yields sustained output gainMOSCOW, Dec 2 (Reuters) - Oil output in Russia, the world's top crude producer, stayed at a post-Soviet high of 10.34 million barrels per day (bpd) in November, encouraged by a record rally in its Urals-blend crude and sustained by a recent duty cut which boosted export profits.Urals crude been enjoying a premium to North Sea crude BFO- for more than a month now, its longest ever winning streak against the global benchmark.The diesel-rich grade has been supported by strong refining margins in Europe and fears of a loss in Iranian supplies if new sanctions against rival producer Iran were to cut supplies to key consumer nations in the European Union.That threat receded on Thursday, but Urals retained its premium to the benchmark..Russian production first reached the 10.34 bpd mark in October on the duty cut, granted under a reform known as "60-66" designed to boost export economics for crude and some high value products.The same month, output flagged in Saudi Arabia, its rival for the top spot.Russia's daily natural gas production increased to 2.02 billion cubic metres (bcm) last month from 1.80 bcm in October. (Reporting by Olesya Astakhova; writing by Vladimir Soldatkin)TABLE-Russia Nov oil output stable at post-Soviet record high Dec 2, 2011 8:40am GMTMOSCOW, Dec 2 (Reuters) - MOSCOW, Dec 2 (Reuters) - Oil output in Russia, theworld's top crude producer, stayed at a post-Soviet high of 10.34 million barrels per day (bpd) in November, Energy Ministry data showed on Friday. Exports via pipeline monopoly Transneft rose by 6.3 percent to 4.52 million bpd from 4.25 million bpd in October. The following oil production and export data were supplied by Russia's Energy Ministry. Volumes are in millions of tonnes and show the monthly and year-to-date totals. Percentage change figures are based on daily volumes. OIL AND CONDENSATE PRODUCTION TRANSNEFT EXPORTS Pct change vs Pct change vs Nov 11 Oct 11 Nov 10 YTD Nov 11 Oct 11 Nov 10 YTD Rosneft 9.455 -0.2 1.4 104.731 4.853 1.7 7.6 53.903 LUKOIL 6.910 -0.4 -5.1 78.180 2.371 10.2 -2.9 21.797 TNK-BP 6.042 -0.5 2.2 66.435 3.101 10.4 27.8 26.826 Surgutneftegas 5.004 -0.2 0.8 55.612 2.148 -0.8 25.7 24.623 Gazprom Neft 2.499 -0.2 1.5 27.525 1.254 12.7 2.2 11.569 Slavneft* 1.488 0.0 -0.8 16.543 0.0 n/a n/a 0.0 Tatneft 2.155 0.0 0.1 23.968 1.017 -2.3 -26.8 14.323 Gazprom 1.262 2.9 11.1 13.234 0.040 -21.6 -20.8 0.415 Bashneft 1.254 -0.1 4.0 13.809 0.300 3.3 11.1 3.299 Russneft 1.149 -1.5 4.3 12.458 0.384 -15.5 -22.6 5.090 Novatek 0.340 0.6 6.5 3.751 0.0 n/a n/a 0.0 Small producers 3.523 1.1 8.3 37.547 0.729 4.2 31.2 7.195 PSA operators 1.239 3.2 -7.0 13.877 0.129 3.3 n/a 1.342 TOTAL OUTPUT 42.319 0.0 0.9 467.668 Total Russian exports through Transneft 16.325 4.2 5.6 171.669 including Caspian pipeline 0.0 n/a n/a 1.285 Transit through Russia: from Azerbaijan 0.294 280.5 0.0 1.833 from Kazakhstan 1.669 14.7 14.0 17.744 Belarus production 0.137 0.4 n/a 1.495 TOTAL TRANSNEFT THROUGHPUT 18.489 6.3 7.4 192.884 Routes other than Transneft* 1.867 1.4 -20.1 22.292 NOTES: * Slavneft is half owned by TNK-BP Holding and Gazprom Neft ** Some companies export crude by sea tankers, filling them at ports close to offshore oilfields, or by rail, therefore bypassing Transneft, the Russian crude oil pipeline monopoly. Russia used to export up to 1 million bpd of crude oil by alternative means such as rail and river, but volumes dropped significantly in 2005 due to very high crude oil export duties. (Reporting by Gleb Gorodyankin)TABLE-Russian Nov gas production up 12.5 pct vs Oct Dec 2, 2011 8:44am GMTMOSCOW, Dec 2 (Reuters) - MOSCOW, Dec 2 (Reuters)- Russian natural gas production rose in November to 2.02billion cubic metres (bcm) per day from 1.80 bcm per day inOctober, Energy Ministry data showed. Gas production by Russian gas export monopoly Gazprom rose to 1.52 bcm per day from 1.35 bcm per day in theprevious month. It was down 2.2 percent from November 2010levels. The following are production details by company for themonth and the year to date in billions of cubic metres. Percentage changes from previous months are based on dailyproduction. Pct change vs Nov 11 Oct 11 Nov 10 YTD Gazprom 45.497 12.4 -2.2 461.433 Novatek 4.647 0.8 26.0 48.415 Other gas firms 1.657 10.7 -15.3 16.950 PSA operators 2.262 6.5 7.5 22.411 Oil firms, 6.673 27.2 32.9 58.950 of which: LUKOIL 1.377 5.8 7.2 14.550 TNK-BP 1.049 2.8 3.7 11.131 Slavneft 0.073 0.2 1.0 0.770 Rosneft 1.054 6.9 11.0 10.662 Surgutneftegas 1.108 3.6 3.7 11.821 Gazprom Neft 1.709 163.3 357.2 7.469 Tatneft 0.068 3.5 5.3 0.739 Bashneft 0.040 2.0 5.6 0.408 Russneft 0.196 371.5 24.4 1.400 Total Russian output 60.736 12.5 2.5 608.159 (Reporting by Gleb Gorodyankin)Turkey to Extend Russian Gas Contract Via Western Line to June 01, 2011, 7:10 AM ESTBy Steve Bryant Dec. 1 (Bloomberg) -- Turkey extended a contract to buy Russian natural gas through a western pipeline to June 5, according to a cabinet decision published today in the Official Gazette in Ankara.Turkey is encouraging non-government companies to agree with OAO Gazprom to import gas through the pipeline, replacing the state gas distributor, Botas Boru Hatlari ile Petrol Tasima AS. The energy market regulator on Nov. 23 gave 26 Turkish and international companies 10 days to make contracts with Gazprom in order to win import licenses.Botas didn’t renew its 25-year contract with Gazprom to import 6 billion cubic meters of gas a year after failing to secure a price cut earlier this year. The pipeline runs via Ukraine, Moldova, Romania and Bulgaria.Turkish Energy Minister Taner Yildiz is visiting officials in Russia today, according to state news agency Anatolia.--Editors: Torrey Clark, Rob VerdonckTo contact the reporter on this story: Steve Bryant in Ankara at sbryant5@To contact the editor responsible for this story: Andrew J. Barden at barden@Turkey intends to preserve gas supplies via Blue Stream pipeline December 2011, 19:34 (GMT+04:00)Azerbaijan, Baku, Dec. 1 / Trend R. Hafizoglu /Turkey will continue getting gas from Russia via "Blue Stream" pipeline, Turkish Minister of Energy and Natural Resources Taner Yildiz was quoted by Turkish newspaper "Zaman" as saying.He said that the Turkish side intends to discuss the issue of gas supplies through this pipeline during his visit to Russia (date of the visit is not specified)."Perhaps, the Turkish private sector will be interested in buying Russian gas through the Blue Stream," he said. There will be no problems in this issue."Botas informed Russian Gazprom in October 2011 that it will prolong one of the agreements to supply Russian gas. The Turkish company's letter said that this happened due to the fact that the agreement on the proportions of the desired discount was not reached.Turkey is the second largest importer of Russian hydrocarbon resources. Along with the "Western route", it gets gas via the Trans Black Sea gas pipeline "Blue Stream".Turkey has three contracts on gas supplies from Russia.Do you have any feedback? Contact our journalist at agency@trend.azRosneft hinting Norwegian partner Russia’s largest oil-company is looking for partners in the former disputed area of the Barents Sea.- Working with companies that have information on this area makes sense. Norway has already been engaged in geological exploration of its (earlier) disputed areas, says Rosneft’s CEO Eduard Khudainatov quoted by?RosBuisnessConsulting.State own Rosneft has no former experience in Arctic offshore drilling, but?signed an agreement with US ExxonMobile in August for joint development the company’s fields in the Kara Sea. The two companies will?start seismic mapping of their joint blocks in the Kara Sea in 2013.Rosneft is particularly looking for three areas in the earlier disputed part of the Barents Sea and has filed applications to Russia’s Federal Subsoil Resource Management Agency.Last week,?BarentsObserver reported that Rosneft has got three bids for field licenses further east in the Barents Sea turned down because of objections from the Ministry of Defence.Russia reached a maritime border line agreement for the Barents Sea with Norway in 2010. Just a few minutes after the agreement went into force in July this year, the first Norwegian seismic vessels started geological research in the area. 11.500 line-kilometers of seismic shooting were conducted from July to mid-September this year, as previously reported by?BarentsObserver.? The seismic research in the Norwegian part of the area will continue next summer.The Barents border line treaty contains provisions on how Norway and Russia are to cooperate on exploiting any transboundary petroleum deposits that could be discovered in the Barents Sea. This paragraph in the maritime border treaty actually paves way for a tighter cooperation between national oil-companies from the two countries to jointly explore this new part of the Barents Sea.Rosneft is state-own and Norwegian oil major Statoil is partly state-own.? For Rosneft, flirting with Statoil makes good sense. The Norwegian company already has Barents Sea experience at its Sn?hvit natural gas project outside Hammerfest and Statoil is already a partner with Gazprom in the Shtokman Development AG.According to?Voice of Russia, today at least 15 fields in the Barents, Pechora and Kara Seas have been discovered and are being prepared for exploitation which has led to a new phase of Arctic cooperation by Russia with foreign partners.In addition to the fields in the Kara Sea, Rosneft has one license for drilling in the Pechora Sea. The South Russky bloack is estimated to hold 21.5 billion tons of oil equivalent, the company informs at their?portal.Text: Thomas NilsenLess Russian oil around the coast of Norway Both the number of tankers and the total amount of oil products from harbours in Northwest Russia to the European market have decreased in 2011. More of the oil is heading to the Asian markets via the Northern Sea Route.Over the first 11 months of this year, 255 tankers with a total 11,2 million tons of petroleum have sailed in transit around the coast of Norway. With only one month to go this year, the amount will not reach last year’s 14,8 million tons.It is the Norwegian Coastal Administration that publishes the statistics of oil transport from Russia passing outside Norway’s Arctic coast. From their Vessel Traffic Service in Vard? all tankers are monitored as they enter Norwegian sector of the Barents Sea and all along the coast towards the south. Between 15 and 30 tankers are sailing the route every month. Except August, the number of tankers has been fewer in all months this year compared with 2010. In November, 18 tankers come from Murmansk and six tankers come from Arkhangelsk.Russian oil companies uses both Murmansk and Arkhangelsk for reloading of oil-products, either coming by rail from Siberia or with smaller tankers from the terminals in Varandey and Vitino. In Murmansk, it is normal to see hundreds of rail-wagons waiting reloading to tankers along the Kola bay.An expert that has made comprehensive reports about Russian oil shipment in the north is Alexei Bambulyak, General Manager of Akvaplan-Niva’s Russian desk. He says to BarentsObserver that the decrease of oil shipped from Russia through the Barents Sea in 2011 was predictable.- The reason for slight decrease in oil transportation was Varandey and, actually, not the terminal itself neither infrastructure, but overestimation of Yuzhno-Khylchuyu oil field reserves, says Alexei Bambulyak. The production at the oil field decreased much earlier than expected and since that field is the main supplier of oil to Varandey, the export decreases correspondingly. Varandey is located in Nenets Autonomous Okrug on the coast to the Pechora Sea.- As for other terminals, they work rather stable. Moreover, we see increase of activities in Arkhangelsk comparing to 2010. The terminals in Murmansk are working on the same scale as before and the Vitino terminal is working with gas condensate on the same level as before, says Bambulyak.While oil transport is decreasing around the coast of Norway, this summer has shown a multiply increase in transport along the Northern Sea Route towards the markets in Asia. During the five months sailing season this year, nine large tankers with a total of 600.000 tons of gas condensate from NOVATEK have sailed the Northern Sea Route. That is more than eight times more oil than during the 2010 season. Other companies have also shipped oil from Murmansk to Asia via the Arctic route.It remains to see if this shift in markets will grow more in the years to come. Russia is currently expanding the capacity to ship out more oil from its harbours in northwest.- Lukoil is building a pipeline with an annual capacity of 3 million tons from the Kharyaga oil field to Varandey; and further on, Trebs and Titov large oil fields in Nenets AO will be put on stream, says Alexei Bambulyak.In his 2011 status report on oil transport from the Russian part of the Barents Region, Bambulyak has together with Bj?rn Frantzen demonstrated that the overall capacity of the terminals shipping oil and gas for export along the northern coast of Russia and Norway can reach 100 million tons in a five year perspective. If so, that is nearly ten times as much oil as in 2011.GazpromFri, Dec 02 2011Russia's Gazprom Neft seeks to buy seven fuel stations in Bulgaria Neft, a unit of Russia's gas company Gazrpom, plans to buy a further seven petrol filling stations in Bulgaria, Capital Daily said on November 30 2011.In November, it was reported that the company was planning to acquire seven filling stations in the country through NIS Petrol, a subsidiary of Gazprom Neft's Serbian unit Naftna Industrija Srbije. At that time, the company asked Bulgaria's competition regulator to approve the acquisition of the fuel stations.NIS Petrol has now filed a similar request to gain contril over the other seven fuel stations.Gazprom Neft has so far declined to provide details about its future operations in Bulgaria. Market sources claim that the company targets to have 70 filling stations by end-2013.According to Andrei Delchev, chairperson of the Bulgarian Petrol and Gas Association, Gazprom aims to capture an eight per cent share of the country's retail fuel market.Gazprom Climbs to Highest in Two Weeks on Dividend Report Ksenia Galouchko - Dec 1, 2011 10:33 PM GMT+0100 OAO Gazprom (OGZPY) rose to a two-week high in New York after Interfax said that Russia’s gas export monopoly plans to set aside about 200 billion rubles ($6.5 billion) a year in 2012 through 2014 to pay dividends. Gazprom’s American depositary receipts climbed 2.7 percent to $11.81 at the close of trading in New York, the highest level since Nov. 16. Interfax cited an unidentified person familiar with the Russian gas producer’s budget plans. “Investors hope that Gazprom is finally turning its face to them and starts paying more substantial dividends,” Sergey Vakhrameev, senior analyst at IFC Metropol, said by phone from Moscow. “Gazprom doesn’t usually pay large dividends. Their dividend yields are historically very low.” Gazprom added 3.4 percent to close at 181.40 rubles on Russia’s Micex index. One Gazprom ADR is equal to two ordinary shares. To contact the reporter on this story: Ksenia Galouchko in New York at kgalouchko1@ To contact the editor responsible for this story: David Papadopoulos at papadopoulos@ Gazprom, RWE discuss joint venture: Dec. 1, 2011 at 8:12 AMMOSCOW, Dec. 1 (UPI) -- German energy company RWE and Russian natural gas giant Gazprom announced they've discussed the potential for a joint venture in the energy sector.Alexei Miller, chief executive officer at Gazprom, met with RWE Chief Executive Officer Jurgen Grossmann at Gazprom headquarters in Moscow."The parties discussed potential establishment of a joint venture in the energy sector," Gazprom said in a statement.The companies in July signed a memorandum of understanding to team up for European gas- and coal-fired power technology.In August, Andrei Chernoshchekov, an official at Gazprom's foreign economic department, said RWE could get gas under "competitive prices" through a joint venture with RWE for new power plants in Benelux countries, Germany and Great Britain.Both sides had argued, along with Germany's largest utility company E.ON, over gas prices. Gazprom links the price to oil, a mechanism the Germany companies had challenged.RWE suffered recent economic setbacks in part because of a German decision to scrap nuclear power.Read more: Says Not Involved in Croatian Corruption Case Edith Balazs - Dec 1, 2011 5:19 PM GMT+0100 OAO Gazprom (GAZP), Russia’s gas export monopoly, wasn’t related to two Cyprus-based affiliates at the time they were allegedly involved in a bribery case that led to the trial of former Croatian Premier Ivo Sanader, a Gazprom official said. Hungarian weekly Heti Valasz wrote in an article published today that Gazprom was linked to companies that allegedly paid a 10 million-euro ($13.5 million) bribe to Sanader when Croatian refiner INA (INARA) Industrija Nafte d.d was partially sold by the government. “Gazprom Group has no relation to the events described in the article of the Hungarian newspaper Heti Valasz,” the official said, who declined to be identified because of corporate policy. Croatian prosecutors are accusing Zsolt Hernadi, chief executive officer of Hungarian refiner Mol Nyrt. (MOL), of paying the bribe to Sanader for a controlling stake in INA through two companies, Hangarn Oil Products Trading Ltd. and Ceroma Holdings Ltd. The two are controlled by Gazprom through Atlas Alpha Services Ltd. and Potassa Holdings Ltd., Heti Valasz reported. “The companies mentioned in the media report only became affiliated to Gazprom after the alleged facts in October 2011,” the official said. “Gazprom bears no responsibility whatsoever for any activities undertaken by these companies before this date.” Commenting on the Hungarian article, Croatian prosecutors said they have been acquainted with the ownership records of the two Cyprus-based companies. These findings have no impact on the Sanader case, the Office for Suppression of Corruption and Organized Crime said today in a statement on its website. To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@ To contact the editor responsible for this story: James M. Gomez at jagomez@ Market Council also against Gazpromenergoholding and IES Holding merger 2, 2011RBC Daily reports that Market Council experts are also against the potential merger of the power assets of Gazpromenergoholding and IES Holding, thus supporting the Federal Antimonopoly Service (FAS). Previously, the FAS had announced that it would veto the merger or force the merged entity to sell a part of its assets to avoid an overly high market concentration. Currently, both the antimonopoly watchdog and the Market Council are seriously worried about the impact of the merger on the power market because it would result in the emergence of a very large player with an extremely high market share, particularly in several free flow zones. Moreover, Russia’s Minister of Economic Development Elvira Nabiullina previously opposed the merger of the GenCo assets belonging to Gazprom and IES Holding.It was announced that the FAS would reach a final decision on this issue by the end of December 2011. Also, in the event that the merger would not be approved by the FAS, both IES and GEH would consider the second option of selling part of their assets to avoid an overly high market concentration. Inter RAO, Rosenergoatom and Eurosibenergo were mentioned as potential candidates.We believe this development will have a NEUTRAL effect on the share prices of the GenCos related to Gazprom and IES for several reasons. This is not the first negative announcement, as the government and FAS had already stated their opposition to this deal. Secondly, this announcement once again demonstrates that the government authorities still do not have a common view on the deal. We share the government’s worries about the consequences of this large merger for the liberalized electricity market. ................
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