Russia - WikiLeaks
Russia 090416
Basic Political Developments
• Russia says NATO exercises in Georgia are provocation - "This is absurd and a provocation," Russia's envoy to NATO, Dmitry Rogozin, told Reuters by telephone. "I have asked the NATO secretary general ... to postpone these exercises or to cancel them."
• Russia actively contributes to stabilization in Afghanistan: FM - "We help this country to train military and civilian personnel," Lavrov said. "We pay special attention to the realization of program to educate policemen serving in anti-terror agencies."
• LIVE: Russian ambassador to the U.S. on prospects for U.S.-Russia relations - 5:30-7:00 PM EST, April 20, 2009
• ‘Time to talk tactical nuclear weapons’ - The US and Russia will come to an understanding about missile defenses in Eastern Europe, believes Daryl Kimball, Executive Director of the Arms Control Association.
• Russia waits for US reply to offer of int’l cooperation on missile defence - Russia is waiting for the U.S. response to its offer of international cooperation in the field of missile defence, Foreign Minister Sergei Lavrov said, responding to Rossiiskaya Gazeta readers to be published on April 16.
• US missiles should target Russian plants and pipelines, not cities
• U.S. scientists pinpoint new nuclear targets for President Obama
• Sen. Collins: Russia wants better US relations
• Fake Interpol agents operate in Russia - The US National Central Bureau of Interpol informed of fake offices of the organization appearing in Russia. The offices conduct their activities in various regions and even have special documents and insignia with the symbols of the international police.
• Russia believes EU seeks to use Organization of Black Sea Economic Cooperation (BSEC) members for its political ends
• Russian Orthodox Church thinks of creating pro-Orthodox group in European Parliament - Archpriest Antony Ilyin, acting representative of the Moscow patriarchate in European international organizations, has called for the creation of a group promoting Orthodox values in the European Parliament.
• Russia holds neutral position in Nagorno-Karabakh conflict: FM
• Azerbaijani Language and Culture Center opened in Moscow
• Tymoshenko Visit Set - Ukrainian Prime Minister Yulia Tymoshenko is to meet her counterpart Vladimir Putin in Moscow on April 29, the Ukrainian government said Wednesday.
• Russia will continue policy of non-interference in respect of Ukraine – FM
• UN: Limits of Norway’s Arctic seabed agreed - It is expected that the issue again will be on the agenda when Norwegian Prime Minister Jens Stoltenberg will meet Russian Prime Minister Vladimir Putin in Moscow on May 19th.
• Russia Planning Arctic Military Grouping - Russia plans to reinforce the security of its northern borders by forming a military grouping for the Arctic before 2020, tasked with protecting its economic and political interests in the region as outlined in its, "Principles of the Russian Federation State Policy in the Arctic for the Period to 2020."
• Details about the General Aoun second day in Russia - The head of the Change and Reform parliamentary bloc MP Michel Aoun is continuing his touring in Russia. He started his meetings today, with the Russian Foreign Minister Sergei Lavrov, who also stressed on the integrity of the election, proposing to send foreign missions to control the election.
• Russia: Visit to the Russian Federation of the Minister of State and for Foreign Affairs of the Portuguese Republic, Luis Amado
• Iranian, Russian deputy FMs confer on Caspian Sea status - Iran’s Deputy Foreign Minister for European Affairs Mehdi Safari held talks Tuesday with his Russian counterpart Alexei Borodavkin on the Caspian Sea legal regime.
Turkmenistan: Pipeline Spat With The Kremlin Turns Into A Political Test Of Strength
• Russia: Transcript of Remarks by Russian Minister of Foreign Affairs Sergey Lavrov at the Opening of the 25th Meeting of the Special Working Group for Defining the Legal Status of the Caspian Sea, Moscow, April 14, 2009
• Moldova's breakaway region asks Russia for loan - Moldova's breakaway region of Transdniestria has asked Russia for a loan to help ease the impact of the global economic crisis, Russia's Interfax news agency reported on Wednesday.
• Russia may change NGO laws - President Medvedev
• Grassroots Protest Movement Makes 3rd Bid for Registration
• Strict Cap Sought on Executive Salaries - A bill submitted to the State Duma on Wednesday would cap annual executive compensation at 4 million rubles ($120,000) for all state companies and at private companies that receive government aid.
• Rosatom plans to commission reactor No 1 of Baltic NPP in 2016 – Kiriyenko
• Putin Supports $1.5Bln for Rosatom - Prime Minister Vladimir Putin said Wednesday that Russia would stand by its plans to build more nuclear power reactors and promised $1.5 billion more in state money to Rosatom to support its projects at home and abroad.
• Unique noiseless grenade launcher designed to fight pirates - A state-run Moscow company, Bazalt, designed a unique system to struggle against both underwater raiders and sea pirates that attack cargo vessels navigating in small boats, Vladimir Korenkov, the director of Bazalt told Interfax.
• New superjet tested in Arkhangelsk - Russia’s new Sukhoi Superjet 100 this week arrived in Arkhangelsk for test flying. The 90-seat aircraft, which is designed to replace the ageing Tu-154 and Tu-134, will be tested under the harsh weather conditions of the Russian North.
• Four Topol launchers to take part in Moscow Victory Parade
• Russia may legalize remote electronic voting this year
• New method for fish fraud - The Russian Federal Security Service (FSB) has revealed a new method for fish fraud. Small motor boats transport fish from vessels in the Russian economic zone to shore at places where control is weak.
• Al-Qaeda activists reportedly intended to carry out series of terrorist acts in Russia
• Moscow newspaper tried to bring to light Russian Federal Protection Service’s budget and secrets of Presidential convoy
• Russian secret services exploit economic difficulties of Estonia: KaPo report
• KaPo pays attention to Russian threats to economic security of Estonia
• Estonia’s Security Police worried about Russia’s ‘unhealthy interest’ about Estonian power sector
• Russia uses compatriots, military pensioners in its political aims in Estonia, KaPo report
• Russia uses compatriots, military pensioners in its political aims in Estonia, KaPo report
• Russia lifts security regime in Chechnya: report
• Russia 'ends Chechnya operation'
• Counterterrorist operation cancelled in Chechnya (Part 2)
• MT Sergei Markedonov: Kadyrov's New Ichkeria - How much control does Moscow really hold over Chechnya? Is Chechnya proving to be a case of the tail wagging the dog? The answers to these questions throw doubt on the effectiveness of the power vertical built by Prime Minister Vladimir Putin.
• BBC: Chechen problem far from over
• DOSSIER: CHECHEN SECURITY FORCES 2000 – 2006
• SOCHI: Whipping Them Into Shape - The Long-Awaited Cull of the Candidates for the Sochi Mayoral Election Has Begun
• Nearly Half of Russians Now Blame Moscow for Economic Crisis
National Economic Trends
• Russian Ruble Gains Against Euro, Little Changed Versus Dollar
• Statistics: Russia’s industrial output falls 14.3% in Jan-Mar
• Interest Rate Regulation? - Central Bank deputy head Alexei Ulyukayev dismissed on Wednesday a proposal to regulate commercial banks' interest rates.
Business, Energy or Environmental regulations or discussions
• Russian Business Week continues in the Russian capital - A source at the Russian Union of Industrialists and Entrepreneurs told Itar-Tass that the Russian Business Week was a playground for conducting a dialogue between the power and businessmen whose aim is to find optimal solutions and overcome negative consequences in the economy.
• Business awaits new tax proposals from government - Russia won’t increase company tax in the next three years despite its budget deficit. Companies have called for tax cuts. But even the possibility of lower VAT in two years looks vague.
• Shmatko Says 3 Firms Not Investing - Energy Minister Sergei Shmatko on Wednesday accused three private companies, including Norilsk Nickel, of failing to fulfill their commitments to invest in electricity assets.
• OGK-3: 2008 RAS results: net profit up substantially
• MOESK reports weak 2008 RAS financials
• RusHydro Presells Key Plant - RusHydro said Wednesday that it has presold all the electricity for 2010 from a key hydropower plant that it is building with United Company RusAl, although financing problems have cast a cloud over the project.
• Half of BasEl Staff Fired
• Rusal Proposes Resumption of Construction at Smelters - United Co. Rusal, Russia’s biggest aluminum producer, said it’s prepared to cut 500,000 metric tons of output at existing plants to enable construction to resume at two smelters in Siberia.
• NLMK considers spinning off non-core divisions
• Raspadskaya Net Profit Rose 121%
• Alrosa Asks State to Keep Diamonds - State diamond monopoly Alrosa has asked the Finance Ministry to stop sales of the precious gem from Gokhran, the state depository, to help stabilize prices, Interfax reported Wednesday, citing a copy of the letter.
• Russian shipyard merger completed - The establishment of the United Shipbuilding Corporation is completed. A total of 33 companies in the field of ship design and shipbuilding are included in the new grand state enterprise.
• Carrefour To Open 3 Stores in '09 - French hypermarket chain Carrefour plans to open its third Russian store this fall, the company said on Wednesday.
• Russian Stocks Advance, Paced by Novolipetsk, Sberbank, VTB
• Norilsk, Nutrinvestholding, Raspadskaya: Russian Equity Preview
• Russia greenhouse gas emissions up 0.3 percent in 2007
• Military towns polluted the Barents Sea for 45 million RUB - The Federal Service for Environmental Control has demanded that the Ministry of Defence should pay a 45 billion RUB fine as compensation of damages to the environment after having released sewage into the Barents Sea.
Activity in the Oil and Gas sector (including regulatory)
• Russia's Lukoil on the Hunt after Promising Saudi Gas Discovery
• Uzbekistan: Lukoil To Slash Uzbek Gas Production At Gazprom’s Request
• Slowdown signs - Lukoil could reduce gas output in Uzbekistan
• Aladdin Oil & Gas Confirms Gas Discovery in Russia
• Salym Petroleum Development Reports Production Record in Western Siberia
• Russia's Surgut sees '09 output flat at 61 mln t
• West Siberian Resources posts 1Q09 trading update
Gazprom
• Gazprom Sets Up LNG Marketing, Shipping Unit, Lloyds List Says
• Gazprom to launch $2 bln Eurobond as early as this wk-sources - The deal, with a three-year put option, is expected to pay a 9.25-9.5 percent coupon and could be launched by the end of the week.
• Gazprom's reserves pushed to 217 bln boe
• Gazprom seek access to Sakhalin blocks - During a recent forum on the country's energy requirements, Nail Gafarov, deputy head of Gazprom's Gas, Gas Condensate and Oil Production Department, said the company was preparing geological exploration programs for the Kamchatka Krai region and offshore Sakhalin Island.
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Full Text Articles
Basic Political Developments
Russia says NATO exercises in Georgia are provocation
Thu Apr 16, 2009 3:15am EDT
By Conor Humphries
MOSCOW (Reuters) - Russia called on NATO on Thursday to cancel or postpone planned military exercises in Georgia which it said were "a provocation."
"This is absurd and a provocation," Russia's envoy to NATO, Dmitry Rogozin, told Reuters by telephone. "I have asked the NATO secretary general ... to postpone these exercises or to cancel them."
NATO said on Wednesday it would hold military exercises next month in Georgia, a former Soviet republic promised eventual alliance membership, whose territory was invaded by Russia last August.
Russia, which considers Georgia part of its traditional sphere of influence, invaded Georgia after driving back an attempt by its pro-Western leadership to retake the breakaway South Ossetia region.
"I, as Russia's official representative, consider these exercises should be canceled," he said.
(Writing by Guy Faulconbridge)
Russia actively contributes to stabilization in Afghanistan: FM
16.04.09 12:10
Russia actively contributes to stabilization in Afghanistan, war on terrorism and drug trafficking and implementing socio-economic tasks, Rossiyskya gazeta quoted Russian Foreign Minister Sergey Lavrov as saying.
"We help this country to train military and civilian personnel," Lavrov said. "We pay special attention to the realization of program to educate policemen serving in anti-terror agencies."
The situation in Afghanistan is complicated by the actions of the radical Taliban which struggles to evict foreign forces from Afghanistan and to establish Islamic state in Pakistan. Drug trafficking is one of the major source of income for Talibs. Afghanistan accounts for 91 percent of opium production.
Taliban's presence covered 54 percent of Afghani territory in 2007 according to the London-based Senlis Council analytical center. Greater part of Talibs is based in Pakistan in the zone of "independent tribes" in the North-West Frontier Province and Afghanistan.
Russia has a key role in situation in Afghanistan, he said. "We maintain close ties with Afghanistan and our international partners both in bilateral and multilateral format," he said.
Russia can help Afghanistan only within civilian framework. Russian Foreign Ministry says it will not send contingent of the Russian Armed Forces to Afghanistan.
LIVE: Russian ambassador to the U.S. on prospects for U.S.-Russia relations
Live broadcast of Russian Ambassador to the U.S. Sergei Kislyak's address to the Carnegie Council in New York on prospects for U.S.-Russia relations.
5:30-7:00 PM EST, April 20, 2009
‘Time to talk tactical nuclear weapons’
16 April, 2009, 02:06
The US and Russia will come to an understanding about missile defenses in Eastern Europe, believes Daryl Kimball, Executive Director of the Arms Control Association.
He says now is a good time for the two countries to put tactical nuclear weapons on the negotiating table – something Russia has been reluctant to do. It would be an important step towards assuring strategic stability in the years ahead, the expert believes.
Russia waits for US reply to offer of int’l cooperation on missile defence
MOSCOW, April 15 (Itar-Tass) —— Russia is waiting for the U.S. response to its offer of international cooperation in the field of missile defence, Foreign Minister Sergei Lavrov said, responding to Rossiiskaya Gazeta readers to be published on April 16.
“In the course of the discussion on the third launch area for the global missile defence, the United States did not assume obligations regarding the terms of access to the third launch area facilities by Russian officials,” the minister said.
“In addition, Poland and the Czech Republic object to our permanent presence. On the whole, the measures of ‘transparency and trust’ that were proposed to us were rather symbolic and could not help ease the Russian concerns,” Lavrov said.
“Americans have never transferred, do not transfer and will probably never transfer the right to control their strategic systems. They do not make exceptions even for the closest allies,” he said.
“Russia has proposed an alternative to the third launch area: foster international cooperation in the field of missile defence, assess missile threats and, if need be, work our joint response measures. This initiative remains in force. We are waiting for the new U.S. administration’s reply,” Lavrov said.
Russia and the United State could cooperation on missile defence and find an alternative to the proposed American third missile launch area in Eastern Europe, Deputy Foreign Minister Sergei Ryabkov said earlier.
"What is important is that we will have an opportunity to discuss an alternative [to the third missile launch area] in the form of cooperation between Russia, the U.S. and European countries in the field of missile defence," Ryabkov said.
He said Russia understood such cooperation "as joint analysis and assessment of possible threats, a search for ways to counter these threats by political and diplomatic methods".
"If an assessment of threats leads us to recognise their existence and they cannot be countered by political and diplomatic methods, we will have to see what kind of missile defence architecture is possible and what kind of interaction may be productive," the diplomat said.
Russian Foreign Minister Sergei Lavrov said U.S. missile defence in Europe directly affected Russia's strategic arsenals.
"As for missile defence, we have said publicly and explained this at the professional level many times, including through direct contacts with our overseas partners, that according to our expert and professional assessment and our deep conviction it has no relation to the Iranian nuclear problem. It is related to strategic stability and strategic parity and directly affects the strategic arsenals of the Russian Federation," the minister said.
"We expect the Obama administration to make a through analysis of the ideas and plans concerning the third launch area in Eastern Europe and hope that this analysis will fully take into account the position we have presented to the American side at the professional level with concrete facts, data and calculations," Lavrov said.
"We have agreed with the Americans to continue discussion on this issue," he said earlier.
Lavrov said the Barack Obama administration was revising the American foreign and defence policy, including in the field of missile defence. "We have heard that the U.S. Congress is debating at least three possible options of dealing with missile proliferation threats and protecting Europe from these threats. The third missile launch area in Poland and the Czech Republic is not the only option even from the viewpoint of the American expert community," Lavrov said.
"We suggest working together with the United States and European countries to solve this problem. We should make sure that we could do everything using our joint intellectual capabilities rather than going only by the decisions made in one capital," the minister said.
He stressed Russia would like the new U.S. administration to make a comprehensive review of these issues.
"We discussed missile defence and presented our position that is based on serious competent analysis. We explained that if the third missile launch area were created, this will create a risk for Russia's strategic interests and we will have to take necessary measures to respond to these threats," Lavrov said.
"At the same time, we would prefer to refrain from acting on this track, and if our American colleagues say that this system is necessary for repelling attacks from the south, the proposal put forth two years ago to organise joint missile threat monitoring remains on the table," the minister said.
US missiles should target Russian plants and pipelines, not cities
[pic]16 April 2009 | 02:35 | FOCUS News Agency [pic][pic][pic]
Moscow. USA should redirect its strategic nuclear missiles from the densely populated cities to 12 targets that are key for Russia’s economy, among them Gazprom, Rosneft, Rusala, Nornikel, Surgutneftgas, Evraz, Severstal, and even the German E.on and Italy’s Enel.
This is what a panel of experts recommended to US President Barak Obama in a report on the country’s new nuclear doctrine, Kommersant reads.
U.S. scientists pinpoint new nuclear targets for President Obama
Kommersant
The Federation of American Scientists (FAS), which includes 68 Nobel Prize winners, has published a report, "From Counterforce to Minimal Deterrence: A New Nuclear Policy on the Path toward Eliminating Nuclear Weapons."
The authors propose cutting the number of nuclear warheads to a deterrence minimum, and retargeting missiles from population centers "to a new set of targets we characterize as 'infrastructure' targets. Infrastructure targets are facilities such as oil refineries, iron and steel works, aluminum plants, nickel plants, thermal electric power plants, and transportation hubs that can be destroyed while minimizing collateral civilian casualties."
The new targets in Russia apparently include Gazprom, Rosneft, Rusal, Norilsk Nickel, Surgutneftegaz, Evraz, and Severstal, whose shareholders include Germany's E.ON and Italy's Enel.
According to the FAS, the United States has an excessive number of nuclear warheads (2,700 on combat duty and 2,500 in storage), which is potentially dangerous in case of a natural disaster.
"NATO's nuclear policy says that the role of its nuclear weapons is 'to preserve peace and prevent coercion and any kind of war,' a meaningless bluff that has been called against nuclear powers many times," the authors of the report write.
In their opinion, the U.S. needs only a few hundred nuclear warheads for "minimal deterrence" which "would reserve for nuclear weapons just one mission: To deter the use of nuclear weapons." They write that "conventional capabilities" can "augment or even replace nuclear weapons."
"If the United States abandons its counterforce capability under a minimal deterrence policy... the Russians could make some immediate changes in response."
However, Russian analysts view this precept as the main drawback of the new U.S. initiative. Leonid Ivashov, ex-chief of the Defense Ministry's main department of military cooperation, currently president of the Academy of Geopolitical Sciences, said: "The U.S. wants to negotiate a reduction of the Russian nuclear capability to a minimum, that is, a level which the U.S. ABM system would be able to neutralize."
He added that there was no parity between the two countries' conventional forces.
Sergei Rogov, director of the Moscow-based Institute for U.S. and Canadian Studies, said: "The U.S. military superiority would be absolute in a nuclear-free world."
In his opinion, the Pentagon will not be enthusiastic about the liberal scientists' proposals, and Moscow is unlikely to accept them either.
"Russia is lagging far behind in the deployment of cutting-edge precision conventional weapons, and therefore considers nuclear weapons as a deterrence instrument in both a nuclear and a large-scale conventional war," Rogov said.
Sen. Collins: Russia wants better US relations
Wed, 15 Apr 2009 19:40:10 GMT
PORTLAND, Maine (AP) Russian leaders gave three U.S. senators an earful on the Bush administration's proposed missile defense in advance of their travel to Poland and the Czech Republic, where the missile launchers and radar would have been located, Sen. Susan Collins said Tuesday.
The Russians want better relations with the U.S., but remain convinced that the so-called missile defense shield targets their country, not a potential threat from Iran, Collins said.
''They are convinced that those installations are directed at them. Despite our assurances that it's directed at the threat from Iranian missiles, they remain convinced it's a threat against them,'' she told The Associated Press by phone before departing for Poland and the neighboring Czech Republic.
Collins, a member of the Armed Services Committee, was traveling with fellow committee member Bill Nelson of Florida and committee Chairman Carl Levin of Michigan.
Missile defense was one of several topics on which Foreign Minister Sergey Lavrov and Deputy Foreign Minister Sergei Ryabkov raised concerns with the U.S. delegation. Others included NATO's expansion, climate change and Russia's treatment under the Bush administration, Collins said.
Collins described the Russians as ''consumed by a sense of grievance and resentment and a loss of power that shades their views on virtually every issue.''
''Nevertheless, I leave hopeful that they clearly want to re-establish better ties with our country,'' she said. ''I think they are having a hard time coming to grips with the fact that there's no longer two superpowers in the world, and it has been a difficult adjustment for them.''
The U.S. delegation also met with the chairman of the International Relations Committee of Russia's Duma and with a human rights activist who spent years in a Soviet prison.
But the primary focus was national security issues.
Collins said she supports missile defense but remains open to the potential sites. The issue will likely go before the Senate Armed Services Committee later this year, she said.
The Bush plan called for putting 10 missile launchers in Poland and radar dishes at a military base outside Prague. The Obama administration is reviewing the proposal.
(© 2009 The Associated Press. All Rights Reserved. In the interest of timeliness, this story is fed directly from the Associated Press newswire and may contain occasional typographical errors. )
Fake Interpol agents operate in Russia
16.04.2009
The US National Central Bureau of Interpol informed of fake offices of the organization appearing in Russia. The offices conduct their activities in various regions and even have special documents and insignia with the symbols of the international police.
Interpol agents in Russia’s Murmansk region, for example, work in the towns that are located near the borders of Norway and Finland.
They show their IDs to local officials and citizens. The IDs looked like official Interpol IDs, in blue morocco cover and with a metal badge shaped as the Interpol emblem on them. The ‘agents’ use the attributes of the international organization to either derive their own personal profit or avoid responsibilities for committing civil wrongs.
The US National Central Bureau of Interpol received similar information from Moscow, the Krasnodar region, as well as from the Tyumen and the Astrakhan regions of Russia.
Spokespeople for Interpol at Russia’s Internal Affairs Ministry said that Interpol agents use only standard IDs of Internal Affairs Ministry officers.
“They have no special badges, nor do they use special license plate numbers on their vehicles. Any ID and any badge that identifies a person as an officer of the Russian Bureau of Interpol is either a fake or a souvenir product,” an official said.
Interpol, whose full name is the International Criminal Police Organization – INTERPOL, is an organization facilitating international police cooperation. It was established as the International Criminal Police Commission in 1923 and adopted its telegraphic address as its common name in 1956.
Its membership of 187 countries provides finance of around $59 million through annual contributions. The organization's headquarters are in Lyon, France. It is the second largest intergovernmental organization; after the United Nations.
Its current Secretary-General is Ronald Noble, formerly of the United States Treasury. Noble is the first non-European to hold the position of Secretary-General. Jackie Selebi, National Commissioner of the South African Police Service, was president from 2004 but resigned on 13 January 2008, later being charged in South Africa on three counts of corruption and one of defeating the course of justice.
He was replaced by Arturo Herrera Verdugo, current National Commissioner of Policía de Investigaciones de Chile and former vice president for the American Zone, who remained acting president until the organization meeting in October 2008, and was subsequently replaced by National Commissioner of the Singapore Police Force, Khoo Boon Hui.
Russia believes EU seeks to use BSEC members for its political ends
YEREVAN. April 16 (Interfax) - The European Union is not seeking to
build relations with the members of the Organization of Black Sea
Economic Cooperation (BSEC) on an equal basis but is trying to use them
for its own political ends, Russia warned the BSEC at a ministerial
meeting in Yerevan on Thursday.
Russia said at the meeting that the BSEC members were in fact urged
to join the EU's policy in this region and that the EU is using the
tools of its new program, Eastern Partnership, exactly with this end in
mind, a source from the Russian delegation said.
Russia said this approach does not meet the organization's
interests and is dividing it depending on individual countries' desire
to develop relations with the EU.
The Eastern Partnership should not provide a negative impetus
toward building new dividing lines in Europe in general and within the
BSEC in particular, the source said.
A statement summing up the outcomes of the meeting said that its
participants considered ways to promote interaction between the BSEC and
the EU, primarily in the areas of transportation, energy, advanced
technology, and combat against organized crime.
Russia emphasized that this cooperation should be pursued
exclusively on an equal and mutually beneficial footing, taking into
account positive experience of the common European integration
processes, the document says.
16 April 2009, 12:08
Russian Orthodox Church thinks of creating pro-Orthodox group in European Parliament
Brussels, April 16, Interfax – Archpriest Antony Ilyin, acting representative of the Moscow patriarchate in European international organizations, has called for the creation of a group promoting Orthodox values in the European Parliament.
"The creation by Orthodox parliamentarians of a group promoting orthodox values in the agenda of the European parliament of the new convocation and in the socio-political life of the EU in general is an ambitious, but a realistic task," Fr. Antony told Interfax-Religion.
Several parliamentarians, including Tatyana Zhdanok (Latvia) and Slavi Binev (Bulgaria) have reached an agreement to coordinate their efforts in their direction if they get re-elected.
The priest also recalled the position of Patriarch Kirill of Moscow and All Russia on the contribution of the Orthodox civilization to the future of Europe.
"The project of European integration began as a Western project, but it can no longer continue as purely Western, especially after the accession of Bulgaria and Romania to the EU, and also taking into account the 8 million Russian diaspora in the EU countries, which is culturally connected to Russian Orthodox traditions," Fr. Antony said.
Russia holds neutral position in Nagorno-Karabakh conflict: FM
16.04.09 11:29
Azerbaijan, Baku, April 16 /Trend News, S.Agayeva/
Russia holds an absolute neutral position in the Nagorno-Karabakh conflict and is ready to support any resolution of the problem which will be accepted by both sides - Baku and Yerevan, Russian Foreign Minister Sergey Lavrov said when answering a question of readers of the "Rossiyskaya gazeta".
"Russia has never hold a unilaterally oriented position in settlement of the Nagorno-Karabakh issue," Lavrov said.
The conflict between the two South Caucasus countries began in 1988 when Armenia made territorial claims against Azerbaijan. Armenian armed forces have occupied 20 percent of Azerbaijan since 1992, including the Nagorno-Karabakh region and 7 surrounding districts. Azerbaijan and Armenia signed a ceasefire agreement in 1994. The co-chairs of the OSCE Minsk Group - Russia, France, and the U.S. - are currently holding the peace negotiations.
"We participate in settling this issue under cooperation with international community and OSCE Minsk Group. Therefore, it is incorrect to speak about "change" in Russia's participation in the Nagorno-Karabakh conflict settlement," Lavrov said.
Azerbaijani Language and Culture Center opened in Moscow
15.04.09 16:07
Azerbaijan, Baku, April 15 /Trend News/ Azerbaijani Language and Culture Center was opened at the Moscow State Linguistics University (MSLU) on April 15, RIA Novosti reported. Students, MSLU teachers, Azerbaijani embassy representatives, Russian members of parliament, representatives of Azerbaijani diaspora, rector and delegation of the Baku Slavic University attended the opening ceremony.
Azerbaijani ambassador to Russia Polad Bulbuloglu said this event is very important for the youth and students. "The old generation does not need explanation about who we are. But young generation who lives in independent states can have problems when asked the same question… We are neighbors. The youth must be brought up in the spirit of mutual respect and love," he said. "The embassy will do its utmost to develop the center."
Representative of the Azerbaijani diaspora described opening of the center as "fulfillment of a wish". The ceremony participants supported the statement.
MSLU rector Irina Khaleyeva said translators and region study specialists will receive diploma with Azerbaijani language skills in three years. The Baku Slavic University (BSU) has contributed to it. The BSU trains specialists in Russian philology with high skills. The cooperation and mutual understanding is accompanied with a deep respect.
The Foreign Ministry representative thanked Khaleyeva on behalf of Foreign Minister Sergey Lavrov. Azerbaijan and Russia maintain close relations. Humanitarian constituent is crucial to the cooperation, he said. It is impossible to imagine Moscow's future without friendship and contact between representatives of different nations. Moscow is one of the most multinational cities all over the world.
The opening of the Azerbaijani Language and Culture Center is especially important prior to Azerbaijani President Ilham Aliyev's visit to Moscow.
Tymoshenko Visit Set
KIEV -- Ukrainian Prime Minister Yulia Tymoshenko is to meet her counterpart Vladimir Putin in Moscow on April 29, the Ukrainian government said Wednesday.
They had been due to meet at the start of April, but Russia put off the talks after objecting to a Ukrainian plan to modernize its gas transport system with the European Union. (Reuters)
Russia will continue policy of non-interference in respect of Ukraine – FM
MOSCOW, April 15 (Itar-Tass) —— Russia will continue the policy of non-interference in respect of Ukraine but will defend its national interests, Foreign Minister Sergei Lavrov said, responding to questions from Rossiiskaya Gazeta readers to be published on April 16.
“The Russian policy of non-interference is a good policy, and we intend to continue this policy in respect of our brotherly people and closest neighbour,” Lavrov said.
“But this does not mean indifference or passivity. We are strongly determined to continue to consistently defend Russian interests in various forms, including in respect of our relations with Ukraine,” the minister said.
“Achieving ‘a decent level of the political situation in Ukraine’ [as one of the readers termed it] is something for the people of Ukraine to do. We sincerely hope that the Ukrainian people will succeed in solving the tasks and problems facing the country,” Lavrov said.
Limits of Norway’s Arctic seabed agreed
2009-04-16
Norway is the first Arctic nation to settle an agreement with the U.N. Commission on the Limits of the Continental Shelf in the north. Norway’s newly defined continental shelf in the north covers 235,000 km2 or three-quarters the size of mainland Norway.
The Commission on the Limits of the Continental Shelf is a United Nation body of specialized undersea geographers and hydrographers established under the 1982 Law of the Sea Convention.
As reported by earlier this week, the 23rd session of the commission started in New York last Thursday.
The recommendation by the commission is mainly the same as the Norwegian requests presented to the commission back in 2006. The adjustments by the U.N. commission were accepted by Norway.
The final results were presented by the Norwegian Minister of Foreign Affairs, Jonas Gahr Støre, at a press-conference in Oslo on Wednesday.
Huge areas
The three new areas of the Norwegian continental shelf are in the Arctic Ocean north of the Svalbard archipelago, in areas close the disputed zone Norway and Russia have in the Barents Sea, and in the Norwegian Sea between the Norwegian mainland, Iceland and Greenland. In total the area covers about 235,000 km2. The Norwegian claims presented to the U.N. commission in 2006 were 250,000 km2.
The continental shelf comprises the submerged prolongation of the land territory of the coastal State - the seabed and subsoil of the submarine areas that extend beyond its territorial sea to the outer edge of the continental margin, or to a distance of 200 nautical miles where the outer edge of the continental margin does not extend up to that distance.
North Pole
In the high north, Norway’s new continental shelf boundaries is between 84 and 85 degrees north, approx half the way between the northern edge Svalbard and the North Pole.
Foreign Minister Støre told Reuters Wednesday that in the discussion about who owns the North Pole - it's definitely not us.
According to the Norwegian newspaper Aftenposten Norway and Russia did not have competing claims for the boundaries of the continental shelf north of Svalbard.
As reported on Monday this week, Denmark - through its administration of Greenland, Canada and Russia have competing claims in the high Arctic.
Exploit resources
Agreement on shelf limits gives states the right to exploit resources on and beneath the seabed, such as oil and gas or the genes of marine organisms.
- All that remains is to incorporate the decision into Norwegian law and then the extension of our continental shelf will be effective, said Rolf Einar Fife, director of legal affairs at the Norway's foreign ministry to AFP after Wednesday's press-conferance.
Disputed zone in the Barents Sea
Since 1974, Norway and Russia have negotiated over the delineation of the 175,000 square kilometer disputed zone in the Barents Sea.
After the last common meeting between the Norwegian and Russian Foreign Ministers in Moscow in late March, wrote that Mr. Lavrov said that “significant progress” has been made in talks about the delimitation of the disputed zone in the Barents Sea. Also Foreign Minister Støre noted that the atmosphere in the talks is good.
Stoltenberg to Moscow
It is expected that the issue again will be on the agenda when Norwegian Prime Minister Jens Stoltenberg will meet Russian Prime Minister Vladimir Putin in Moscow on May 19th.
Russia Planning Arctic Military Grouping
[tt_news]=34857&tx_ttnews[backPid]=7&cHash=4d7870cefb
Publication: Eurasia Daily Monitor Volume: 6 Issue: 72
April 15, 2009 01:06 PM Age: 14 hrs
Category: Eurasia Daily Monitor, Russia, Military/Security, Home Page, Featured
By: Roger McDermott
Russia plans to reinforce the security of its northern borders by forming a military grouping for the Arctic before 2020, tasked with protecting its economic and political interests in the region as outlined in its, "Principles of the Russian Federation State Policy in the Arctic for the Period to 2020." This was adopted at a Security Council session in Moscow in September 2008, though only publicized more recently. According to this document Russia does not envisage creating either a new Military District or opening new bases, but it sets out a case for reinforcing the Federal Security Service (FSB) controlled Border Troops by establishing a coast guard service to patrol Russia's Arctic borders. While seeking to avoid any "militarization" of the Arctic, the emphasis is currently placed on developing the border infrastructure of the country's Arctic zone, and placing this under the operational authority of the FSB (Rossiyskaya Gazeta, March 30).
The necessary support grouping of general-purpose troops will be maintained in northern Russia, much as before, though the precise details of their future is under discussion within the Russian Security Council. Moscow's seriousness over this issue has been signaled by modernizing the northern Nagurskaya border outpost. Interest was first triggered amongst the United States, Canada, Norway and Denmark, after Moscow's application to the UN in 2001 aimed at substantiating its claims to part of the Arctic; while more recently this was stimulated by the high profile "planting" of the Russian flag under the Arctic seabed in 2007.
Russian officials argue, however, that despite the existence of such plans, its preferred Arctic policy is to pursue closer cooperation and avoid potential confrontation. Deputy Foreign Minister Sergey Ryabkov characterizes Moscow's position on the issue as "cautious and measured." He believes the way to defuse possible tensions in the region is through strict adherence to international law and hopes that the U.S. will ratify the convention on the law of the sea and act within its framework. In an interview with Ekho Moskvy radio on March 27, Ryabkov said:
"In my view, the Arctic is a field for cooperation between Russia and the United States. Ecology, climate, cooperation among border regions and opportunities for some economic exchanges -now, at the stage of relations being reset, the positive message should be brought to the fore. If there are any problems or difficulties -and, no doubt, there will be problems and difficulties- we shall be tackling them as they come, but they should not put us into different trajectories from the start" (Ekho Moskvy, March 27).
Russia's Arctic policy document also outlines plans to optimize the system for comprehensive monitoring of the Arctic. In this sense, a military presence is not its top priority. It describes the region as a "zone of peace," and moots the idea of international ecological cooperation. Moreover, it suggests that Russia will develop the region's natural resources, transportation and border infrastructure and the information and telecommunications environment. Geological, geophysical, hydrographic, cartographic and other work must be completed by 2010 to prepare the required materials for defining the outer boundary of Russia's Arctic zone: in other words "proving" that the undersea Lomonosov Ridge and Mendeleyev Rise are a continuation of the Russian continental shelf, and therefore part of Russian territory. The strategy aims by 2015 to formalize the outer boundary of the Arctic zone and produce a study of Russia's competitive advantages in the production and transportation of energy resources on this basis. In the third phase up to 2020, Russia's Arctic zone must become a viable and leading strategic resource for the country (Rossiyskaya Gazeta, March 30).
The main mission of the new military grouping will be "to ensure the security of the Russian part of the Arctic Ocean under various military-political situation conditions." On March 28, Lieutenant-General Vladimir Shamanov, Chief of the Armed Forces Main Combat Training and Troop Service Directorate confirmed that Russia intends to make "serious corrections" to its military policy in the Arctic. General Shamanov told Krasnaya Zvezda in June 2008 that combat training would commence for an Arctic force, largely in response to statements by the leaders of other countries casting doubt on the legitimacy of Russia's interests in the region. He also described plans to train special subunits from within a number of Military Districts as well as continuing to step up the intensity of Arctic air and naval patrols (Komsomolskaya Pravda, March 28).
However, the formation of the Arctic military grouping might not necessarily directly involve Ministry of Defense units; at least not as the lead force structure. Above all, the concept plans an FSB coast guard system for the Arctic zone. This will necessitate creating border control infrastructure, and equipping the force with expensive equipment to enable it to "control" the river estuaries on the Northern Sea route. Satellites and military aviation (strategic as well as conventional, based at Arctic airfields) supported by elements of the Northern Fleet will closely monitor Russia's Arctic zone. In a crisis, an assault force could be airlifted into an area of conflict from a nearby ground forces base.
Nonetheless, the MoD disputes reports that Russia's Arctic zone will be placed under the operational control of the FSB, arguing that, "It never has been and never will be the case in Russia where some piece of its territory is given up to one department to guard. Our North is not a private possession; all militarized departments are responsible for its security" (Komsomolskaya Pravda, March 28).
Details about the General Aoun second day in Russia.
Thursday, April 16, 2009
The head of the Change and Reform parliamentary bloc MP Michel Aoun is continuing his touring in Russia. He started his meetings today, with the Russian Foreign Minister Sergei Lavrov, who also stressed on the integrity of the election, proposing to send foreign missions to control the election.
He then met with the Patriarch Kiril, the highest Russian Orthodox, who said: It always pray for Lebanon. Earlier in the day, General Aoun had participated in the divine sacrifice, and then submitted to the Patriarch Kiril a commemorative book about Lebanon.
He then met the Chief of the External Relations of the Russian Patriarchate, Archbishop Hilarion, who sympathized with the new Lebanon and with all Christians of the Orient, pointing out that Christianity is not hostile to Islam, but a mission and a way of coexistence will all religions.
From his end, General Aoun affirmed on moving forward in order to stabilize the Christians in the Levant, in line with the openness preached by the Christian religion.
General Aoun announced on Tuesday from Russia, where he is on a brief visit, that the opposition electoral lists for the upcoming elections were "almost ready.” The Free Patriotic Movement (FPM) leader said that there was disagreement regarding only two remaining parliamentary seat. Aoun, who hold a meeting with Russian First Deputy Prime Minister Igor Shuvalov, announced that the issue would be resolved soon, recalling that his parliamentary bloc announced its lists only one week ahead of the 2005 elections.
Also on the General Aoun agenda's and his team, formed by MP Salim Aoun, former Minister Yacoub Sarraf and Amal Mr. Abou Zeid, several political and spiritual dates, lecture and press interviews, and an invitation to dinner in his honor hosted by the Lebanese Ambassador to Russia Assem Jaber.
Russia: Visit to the Russian Federation of the Minister of State and for Foreign Affairs of the Portuguese Republic, Luis Amado
Portuguese Minister of State and for Foreign Affairs Luis Amado paid a visit to the Russian Federation on April 13-15 at the invitation of Minister of Foreign Affairs of the Russian Federation Sergey Lavrov. The meeting between the heads of the foreign affairs agencies was held in the framework of a regular Russian-Portuguese political dialogue aimed at further expanding cooperation between the two countries, bilaterally and in international affairs.
During the talks between Lavrov and Amado held on April 14, the sides discussed the dynamics of the expansion of ties between Russia and Portugal in different spheres and exchanged views on the prospects for the development of trade and investment interaction in the conditions of the global financial and economic crisis. In this context they stressed the role of the bilateral Intergovernmental Joint Commission on Economic, Industrial and Technical Cooperation, whose fourth session is due to be held in Moscow in June.
The ministers discussed questions of a new European security architecture in the light of the initiative put forward by President of the Russian Federation Dmitry Medvedev to develop a European Security Treaty, and exchanged views on ways of surmounting the global financial and economic crisis. The entire range of Russia-EU relations was subjected to detailed analysis. The sides spoke for imparting to them the character of a truly strategic partnership. Diverse aspects of collaboration between our country and NATO were examined and the problems associated with WMD proliferation were touched on.
Lavrov and Amado also exchanged views on key regional problems, among them Middle East settlement, and the situation in Afghanistan and Iraq and around Iran’s nuclear program.
As acknowledged by both sides, the talks in Moscow were useful and enabled restating that on a broad range of issues the approaches of Russia and Portugal are close or coincide. The ministers agreed to continue mutual contacts. A solid program of consultations between the foreign affairs agencies of the two countries at the working level is also slated for the current year.
Iranian, Russian deputy FMs confer on Caspian Sea status
Iran’s Deputy Foreign Minister for European Affairs Mehdi Safari held talks Tuesday with his Russian counterpart Alexei Borodavkin on the Caspian Sea legal regime.
The meeting took place on the sidelines of the 25th Conference on the Caspian Sea status which started in Moscow on April 14 with the participation of deputy foreign ministers of the five countries bordering the Caspian Sea, consisting of Iran, Russia, Turkmenistan, Azerbaijan and Kazakhstan.
The Iranian and Russian officials said Caspian Sea is “a sea for peaceful activities and friendly ties” and its littoral states should avoid any military operation there.
“Any decision on the Caspian Sea issue should be made by the five littoral countries,” the two agreed upon.
Referring to the North-South Corridor project between Iran, Russia and Azerbaijan, the two called for boosting cooperation on sea transportation and bilateral relations in economic and political issues as well.
The Iranian and Russian deputy foreign ministers discussed the latest developments in Afghanistan and the Caucasus and called for ensuring peace and stability in Afghanistan and Pakistan that would be achieved by the active role the regional countries play.
The Russian deputy foreign minister for Asian affairs, meanwhile, appreciated Iran’s stance on Afghanistan at the recent international conference on that country held in Moscow.
Mehdi Safari arrived in Moscow on April 14 to participate in the 25th Conference on the Caspian Sea status.
Turkmenistan: Pipeline Spat With The Kremlin Turns Into A Political Test Of Strength
David Trilling 4/15/09
The gas-blast row between Turkmenistan and Russia shows that the geopolitical balance in the Caspian Basin energy contest may be shifting. The Kremlin, along with its energy appendage, Gazprom, now appears to lack the power and the resources to call the shots.
Ashgabat and Moscow have been engaged in an acrimonious spat since April 9, when an explosion on the CAC-4/Davletbat-Daryalik pipeline cut Turkmen natural gas exports to Russia. [For background see the Eurasia Insight archive]. At first, Gazprom officials indicated that the pipeline would be repaired within a matter of days. But almost a week later, gas still is not flowing.
Over the past few days, the pipeline dispute has transformed into a test of political strength. This could hamper the swift resolution of the matter, as any step to compromise stands to be interpreted as a sign of weakness. "They [Turkmen leaders] turned this technological accident into a very politicized event," said Dmitry Alexandrov, an analyst at Financial Bridge in Moscow.
All indicators suggest Ashgabat currently has the upper hand. Turkmen leader Gurbanguly Berdymukhamedov has sought to keep Russia on the defensive by calling for an international investigation into the pipeline explosion, as well as demanding that Gazprom pay for the repairs. "We won’t allow them to hurt our image as a reliable supplier of energy resources to global markets," Turkmen television reported Berdymukhamedov as saying.
The Turkmen accusations are closely connected with a looming battle over the gas export prices, according to Andrei Grozin, the director of the Central Asia Department at the CIS Institute in Moscow. "If Turkmenistan ends up having Gazprom pay for the repair, it will show that Gazprom recognized its fault and the Turkmen stood on their position until the end," he told EurasiaNet.
"Turkmenistan is afraid of losing prices set with Russia," Grozin continued. "In the summer or fall of 2009, prices will start going down and . . . Russia will not be ready to overpay for gas as it did before. Turkmenistan wants to get something as fast as it can."
The price that Gazprom pays for Turkmen gas is reportedly based on a formula derived from European market rates. With gas supplies now far outpacing consumption amid a global downturn, Ashgabat must brace for a substantial drop in its export revenue.
Gazprom, meanwhile, finds itself in deepening financial trouble. The conglomerate currently is burdened with a gas glut. The Interfax news agency reported that the company saw its reserves grow by 11 percent during 2008, and with demand continuing to lag, many experts foresee Gazprom’s glut continuing to expand at an alarming rate this year. The interruption in Turkmen supplies thus benefits Gazprom on several levels. First, it allows the Russian company to draw down existing reserves, and it also affords some savings. According to a recent report in the Vremya Novostei newspaper, Gazprom lost more than $1 billion during the first quarter of 2009 on gas purchase deals, in particular its Turkmen obligation.
Grozin expressed a belief that the explosion was an accident caused by poor maintenance. "We know that the ex-president of Turkmenistan [Saparmurat Niyazov] spent all the [country’s] money on building fountains and palaces instead of modernizing the gas transportation system," he said, adding that such explosions happen "approximately every six months in Turkmenistan," but are not reported.
A Turkmen political scientist with experience working on gas pipelines, speaking on condition of anonymity, concurred that such explosions were "common." The Turkmen government is notoriously lax in its upkeep and is probably responsible for the accident, he said.
He concurred Ashgabat is looking to bolster its image while locking in current prices. But the "defensive" response, he stressed, is an image game Ashgabat is playing for international and domestic consumption.
Turkmen officials are anxious to lock in a price now that maximizes their profit potential. But Gazprom no longer is in a hurry, given the expectation that prices will continue to fall. Hard pressed on all sides, Gazprom officials are also fearful of getting themselves locked into another draining deal. Underlying Moscow’s position is the belief that Turkmenistan lacks immediate export alternatives.
"Turkmenistan is not in a very powerful position and must play "games" to get what it wants," Alexandrov said.
But other experts in Moscow are sounding an alarm. Political analyst Sergei Kulikov, writing in the influential daily Nezavisimaya Gazeta on April 15, cautioned that if Moscow mismanages the dispute, Berdymukhamedov might be prepared to cancel a 25-year gas export agreement that is a critical element to Russia’s entire energy strategy.
If the Turkmen-Russian dispute drags on, Ashgabat may also feel inclined to make a firm commitment to exporting large quantities of gas via a US-backed trans-Caspian pipeline. Such a commitment could prove financially ruinous for Russia, as it would break Moscow’s stranglehold over Central Asian gas exports to Europe.
The PR factor is important to keep in mind as the pipeline dispute unfolds, Grozin said. "The goal of Turkmenistan [is to burnish] the image of the country and its leader," he said. "The image of the leader is improving due to his demonstration of power."
Editor's Note: David Trilling is the Central Asia Coordinator for EurasiaNet.
Russia: Transcript of Remarks by Russian Minister of Foreign Affairs Sergey Lavrov at the Opening of the 25th Meeting of the Special Working Group for Defining the Legal Status of the Caspian Sea, Moscow, April 14, 2009
Esteemed Colleagues, Ladies and Gentlemen,
First of all I would like to greet in Moscow the delegations of the Azerbaijani Republic, the Islamic Republic of Iran, the Republic of Kazakhstan, and Turkmenistan at the opening of this meeting of the Special Working Group for Defining the Legal Status of the Caspian Sea.
More than three years have passed since the previous meeting held in the Russian capital in March 2006. That time wasn’t wasted and was characterized by a highly intensive negotiation process: five rounds of talks on the Caspian status, a conference of foreign ministers from the five Caspian states and, most importantly, the Second Caspian Summit in Teheran.
All the meetings I’ve mentioned are not mere statistics of interstate contacts regarding the Caspian. All of them helped advance towards new international legal arrangements for the Caspian Basin and towards a new quality in relations and cooperation among the Caspian states.
A special position among the achieved results undoubtedly belongs to the Declaration that was adopted by the presidents of our countries in Teheran on October 16, 2007. It has particular significance for peace and good-neighborliness and for deeper economic cooperation in the Caspian Region. The Declaration was a sort of a code of political rules of conduct which we will adhere to until the elaboration and entry into force of a Convention on the Legal Status of the Caspian.
The framework for collaboration among the five Caspian states was substantially broadened at the summit in Teheran. It had an economic component incorporated with an eye to eventually creating an Economic Cooperation Organization in the region, along with a set of security issues providing for a collective mechanism to fight the new challenges and threats.
It is gratifying that practical steps have already been taken in carrying out the Teheran accords. In October 2008 Astrakhan hosted an intergovernmental economic conference of the Caspian states at the level of deputy prime ministers with the participation of ministers responsible for the related fields of activity. It proved so useful that the leadership of the Astrakhan Region asked me to convey to the representatives of the Caspian states gathered here its willingness to host a second such forum.
The conference in Astrakhan demonstrated the weighty potential for economic and trade cooperation in the Caspian region. This potential has obviously developed beyond the bilateral framework, so the task to consider creating a Caspian Economic Cooperation Organization that was set at the Teheran summit is quite relevant, I think. That organization would help to step up regional economic ties, to structure them better and to develop optimal formats of collaboration. I think that in preparing the next Caspian summit, which by common agreement is due to be held in Baku, we could prepare concrete proposals on the question of establishing that organization, particularly since there is the appropriate instruction from the heads of state.
We have received with satisfaction the proposal of the Azerbaijani colleagues that a meeting of experts on security issues should be held in Baku during the last 10 days of April. We will certainly take part in it together with all our partners and will endeavor to make our contribution to practical work on creating a collective mechanism to fight contemporary threats and challenges in the Caspian region. The holding of that meeting will signify the fulfillment of a second instruction of the heads of state that was given to us in Teheran. We hope that this will also constitute an important, substantial filling of the upcoming Third Summit in Baku.
Now a couple of words about the work on the Convention on the Legal Status of the Caspian; I do not want to belittle the fact that there still remain questions that need to be agreed on, but from contacts with my colleagues – ministers of foreign affairs of Caspian states – I have gathered the impression that the participants of the negotiation process are coming closer to mutual understanding on the issues that are still open, primarily those concerning delimitation of the water area across the Caspian and the demarcation of the seabed in its southern part. I am certain that your meeting will help continue efforts toward this end so as to arrive at a fully agreed text of a draft convention in the foreseeable short-term future. I am certain that the well-being and prosperity of the peoples who live on the shores of the Caspian and use its resources depend largely on the success of your work, as does our common ability by collective methods of the Caspian countries to tackle all questions on the basis of mutual respect and the consideration of the interests objectively uniting us.
UPDATE 1-Moldova's breakaway region asks Russia for loan
Wed Apr 15, 2009 7:35pm BST
(adds background, paragraphs 4,7,9-10)
MOSCOW, April 15 (Reuters) - Moldova's breakaway region of Transdniestria has asked Russia for a loan to help ease the impact of the global economic crisis, Russia's Interfax news agency reported on Wednesday.
Russia has maintained troops in Transdniestria since 1992 when they stopped fighting government forces and separatists.
About 1,200 troops remain in the largely industrial sliver of land hugging the river Dniester on Moldova's eastern border with Ukraine, despite pledges to leave.
Moldova, Europe's poorest and last Communist-run country, was wracked with post-election riots last week with analysts warning instability there made resolving the frozen conflict more difficult.
"We need working capital for industry. There is no other way out of this world crisis," the press service of Transdniestria's leader, Igor Smirnov, quoted him as saying on Tuesday.
"I think we will close this issue by the end of this month."
Emerging economies have found it increasingly difficult to borrow money in the last year due to the worldwide credit crunch, and breakaway states such as Transdniestria which lack global recognition find it more difficult than most.
In 1990, still in Soviet times, mainly Russian-speaking Transdniestria broke away from Moldova because it said it feared a possible merger between Moldova and Romania. The two countries share a common cultural and linguistic heritage.
Despite seeing its foreign exchange reserves haemorrhage as it slowed falls in the rouble currency against the global financial crisis, Russia is seen using loans to nearby states to bolster its political influence.
Officials on Wednesday began recounting more than 1.5 million ballots in Moldova in the disputed election, with the liberal, pro-Western opposition -- accused by the president of plotting a coup with the protests -- boycotting the recount [ID:nLF610458] (Writing by James Kilner and Peter Apps; Editing by Richard Meares)
Russia may change NGO laws - President Medvedev
15 Apr, 06:05 PM
Russia could amend its controversial oversight laws on non-profit (NPO) and non-governmental organizations (NGO), President Dmitry Medvedev said Wednesday at the first meeting with his new human rights council, ITAR-TASS reports. Human rights activists have been bitterly critical of Medvedev's predecessor, Vladimir Putin, who in 2006 signed a law that requires NGOs to register with the state and subjected them to increased financial scrutiny, Agence France Press commented.
"I think you have lots of questions about the legislation [about NGOs]. It is not ideal and many things can be changed in it,” Medvedev told the council.
In unusually frank comments on the work of NGOs in Russia, Medvedev admitted there were "a mass of cases where activities of NGOs have been restricted without sufficient reason."
“In the activities of NGO and NPO officials see a threat to their undivided rule,” the president is quoted as saying. He did not give further details on what changes could be made to the legislation regulating them.
The Russian Presidential Council for Assistance to the Development of Civil Society Institutes and Human Rights includes members of human rights and social NGOs, such as Elena Panfilova, Russian director of anti-corruption watchdog Transparency International, and Igor Yurgens, head of the Institute of Contemporary Development.
Grassroots Protest Movement Makes 3rd Bid for Registration
16 April 2009
By Natalya Krainova / The Moscow Times
A nationwide grassroots political movement that senior officials have portrayed as a fifth column submitted an application to be registered as a legal organization Wednesday, a day after the Justice Ministry denied its registration for the second time.
Activists for the Association of Enterprising Citizens, or TIGR, took to the streets in several cities in recent months to protests import duties on foreign used cars and high prices for gasoline, food and utilities.
Justice Ministry officials in the Far East on Tuesday refused to register the group as a legal entity because of technical mistakes in the application documents, senior TIGR member Alexei Bondar told The Moscow Times.
"There were purely technical mistakes," Bondar said by telephone from Vladivostok.
In the application, the group failed to indicate the name of a city where it wanted to open a branch, Bondar said. By law, the ministry has 30 days to consider the movement's new application.
Opposition and nationalist groups have complained in recent years that officials unfairly deny them legal status in order to keep tight control over the political landscape. Former State Duma Deputy Dmitry Rogozin, currently Russia's envoy to NATO, was twice rejected by the Justice Ministry when he tried to create a new nationalist party, Great Russia, in 2007.
Justice Ministry spokeswoman Natalya Vishnyakova said Wednesday that she had no information about the group's application because of the seven-hour time difference between Moscow and Vladivostok.
Duma deputies from United Russia and the nationalist Liberal Democrat Party have accused the movement's Vladivostok branch of receiving grants from foreign organizations and trying to destabilize the political situation in the country at their behest - a charge the group denies.
The movement was created in December, according to its web site, which gives no information about the group's founders.
The movement has branches in Moscow, St. Petersburg, Vladivostok, Nizhny Novgorod, Kaliningrad and several other cities in Siberia and the Far East.
Strict Cap Sought on Executive Salaries
16 April 2009
By Courtney Weaver / The Moscow Times
A bill submitted to the State Duma on Wednesday would cap annual executive compensation at 4 million rubles ($120,000) for all state companies and at private companies that receive government aid.
The bill takes a tougher line than the one promoted by President Dmitry Medvedev and Finance Minister Alexei Kudrin in recent weeks and raises questions about how the companies would be able to attract and keep top talent.
The bill's author, Deputy Anatoly Ivanov of United Russia, acknowledged that the legislation faced an uphill battle being passed into law.
"The government here is influenced by the power that oligarchs and executives have," he told The Moscow Times in a telephone interview.
Among the companies that have accepted state assistance are Oleg Deripaska's United Company RusAl and Mikhail Fridman's Alfa Group.
Ivanov said the bill was needed to prevent possible social unrest, noting that the gap between the salary of an executive and an ordinary employee is three times larger in Russia than in the United States.
"The difference between the two incomes gives way for tension to arise in society," he said.
Russia, however, has not experienced an outcry like that seen in the United States last month when AIG executives collected million-dollar bonuses even after their near-bankrupt company was rescued by the U.S. government.
Kudrin has suggested that companies that receive state aid should limit their bonuses for 2008 and 2009, but Ivanov said such a regulation would not be enough. His bill would impose a 100 percent tax on executive earnings that exceed 4 million rubles for a two-year period.
"Curbing bonuses and perks will not limit earnings. Executives would just be able to find income in other forms," Ivanov said.
The bill has not yet been scheduled for a first reading in the Duma.
Ivanov's proposal is significantly stricter than the 90 percent bonus tax that the U.S Senate is now considering. The U.S. tax would only target executives whose bonuses exceed $250,000 and only at firms that have received more than $5 billion in public funds.
By comparison, executives at Russian firms that have received any sort of aid as a grant or under favorable lending terms from the state would be subject to Ivanov's bill.
If passed, the bill would pertain to a very small group of people and allow Russia to meet its agreement to curb executive bonuses in line with accords reached earlier this month at the Group of 20 summit in London, Ivanov wrote in explanatory notes to the bill.
Natalya Orlova, chief economist at Alfa Bank, estimated that the tax would affect only 5 percent of staff at state corporations but up to 20 percent of all wages combined.
Yevgeny Nadorshin, chief economist at Trust Investment Bank, said the bill would gain a lot of enemies because it did not differentiate between companies that have received different types of state loans.
"It's a great problem when you begin to put everyone under a single measure irrespective of what loans they have received. I don't think this is the best way to approach the problem of high bonuses," he said.
Medvedev said at the G20 summit that he was committed to encouraging self-discipline among executives at state companies. "When things are bad for everyone, it's no time to be paying such inflated bonuses," Medvedev said. "If a company gets support from the state or belongs to the state, its management should show self-restraint."
While some recipients of state aid have been reluctant to agree to a clampdown on bonuses, others had earlier eliminated bonuses for last year. "The president has said to limit bonuses, which means we're going to limit them," VTB president Andrei Kostin said earlier this month.
Gazprombank has decided not to pay bonuses for 2008 and 2009, and AvtoVAZ's top managers also will forgo bonuses for that period.
Sberbank did pay bonuses for 2008 and has not yet decided about this year.
Rosatom plans to commission reactor No 1 of Baltic NPP in 2016 – Kiriyenko
UDOMLYA (Tver region), April 15 (Itar-Tass) —— The Russian Atomic Energy Agency (Rosatom) plans to commission the first power unit of the Baltic nuclear power plant in 2016, Rosatom Director General Sergei Kiriyenko said on Wednesday at a conference on the development of Russia’s atomic energy industry.
“The Baltic nuclear power plant that will be built in the Kaliningrad region was not envisaged by the General Plan. However, we coordinated this issue with the Russian Energy Ministry in compliance with the governmental instructions,” he said, adding, “Currently, we have reached a certain decision.”
“This region needs electricity. Its demands are colossal due to the shutdown of the Ignalina nuclear power plant [the only NPP in the Baltic region – Itar-Tass],” Kiriyenko said.
“Poland has expressed intention to build a nuclear power plant, and our closest partner Belarus has similar plans,” he said.
“However, the Baltic NPP in the Kaliningrad region is of paramount importance to us,” Kiriyenko said. “At present, our crucial task is to include the construction of that nuclear power plant into the General Plan and to reallocate the funds, which we have already received.”
In his words, Rosatom does not ask additional monies for the construction of the Baltic nuclear power plant, “because the government chartered the agency to introduce a new model for drawing direct investments, including foreign and private, for the first time in the history of the country.”
As a result, the state will hold a 51-percent stake in the new NPP and 49 percent will belong to private investors, including foreign ones, Kiriyenko explained.
“Currently, we plan to set the task of commissioning the first unit of the Baltic NPP in 2016,” the Rosatom director general said.
Putin Supports $1.5Bln for Rosatom
16 April 2009 The Moscow Times
Prime Minister Vladimir Putin said Wednesday that Russia would stand by its plans to build more nuclear power reactors and promised $1.5 billion more in state money to Rosatom to support its projects at home and abroad.
State nuclear corporation Rosatom, which is constructing nuclear plants in Iran, China, India and Bulgaria, is planning to build 26 new reactors in the country by 2030.
"The plans are difficult, intensive but realistic," Putin said during a meeting discussing the industry's development at the Kalininskaya Nuclear Power Station. "Whatever might happen, we must fulfill the task that I mentioned."
The state has earmarked 1.5 trillion rubles ($55 billion) to develop the nuclear industry through 2015. Of that amount, 73.3 billion rubles are to be spent this year, up from 51 billion rubles last year.
Rosatom chief Sergei Kiriyenko asked the government to allocate an extra 50 billion rubles for projects in the country and abroad without specifying when he wanted the money. Putin granted the request.
Kiriyenko also asked for permission to issue infrastructure bonds to raise funds for the construction of reactors in the country. The option would be an alternative to bank loans that, Kiriyenko complained, charge prohibitively high interest of at least 16 percent. Rosatom, which is short 26 billion rubles for reactor construction this year, can afford a 10 percent rate at best, he said.
Putin's reaction to the request wasn't reported Wednesday.
As he agreed to pump more state money into the nuclear industry, Putin demanded that Rosatom reduce costs.
Unique noiseless grenade launcher designed to fight pirates
16.04.2009
A state-run Moscow company, Bazalt, designed a unique system to struggle against both underwater raiders and sea pirates that attack cargo vessels navigating in small boats, Vladimir Korenkov, the director of Bazalt told Interfax.
“The first commercial offer to purchase our DP-64 reactive system appeared at the end of last year. We presented it to our potential customers at an international arms show in 1993. The system attracted a lot of interest at that time,” Mr. Korenkov said.
The DP-64 system designed by Bazalt is a grenade launcher that shoots like an assault rifle - it does not produce the jet steam backflash. The system can thus be used both indoors and on vessels: there is no danger that the jet stream could damage topsides.
A grenade launched from the DP-64 is capable of striking underwater saboteurs and all types of light surface targets at a distance of up to 500 meters. A crew can organize the all-round defense of their vessel with the help of the grenade launcher. The weapon can be installed on gun turrets and can be guided through remote control. The grenade launcher is practically noiseless.
The system comes complete with two types of grenades: the signal grenade, which marks the locations of underwater saboteurs, and the blast grenade, which is used to destroy targets. The DP-64 system can also be equipped with non-lethal ammunition to scare off pirates not to let them approach a vessel.
Mr. Korenkov said that the DP-64 grenade launcher did not have analogues in the world. It is an easy-to-handle, safe and effective weapon. Civil weapons equipped with this system will be protected against any pirate attacks.
New superjet tested in Arkhangelsk
2009-04-15
Russia’s new Sukhoi Superjet 100 this week arrived in Arkhangelsk for test flying. The 90-seat aircraft, which is designed to replace the ageing Tu-154 and Tu-134, will be tested under the harsh weather conditions of the Russian North.
A total of 15 test flights are to be conducted in Arkhangelsk Oblast and the Nenets Autonomous Okrug. –We need some bad weather, pilot Leonid Chikunov told newspaper Pravda Severa. The aircraft is to be tested under icy conditions.
Several companies have submitted orders on the new aircraft. Among them is regional company Aeroflot Nord which from next year on intends to acquire 15 new SSJ-100s. The new aircrafts are to replace the company’s ageing Tu-134s and Tu-154s. Aeroflot Nord also has a fleet of Boeing-737s.
According to Wikipedia, the first SSJ-100s will be delivered to customers the third quarter of 2009. The aircraft is a modern, fly-by-wire regional jet. It will be produced by aerospace firm Sukhoi's civil division, of which Finmeccanica of Italy owns 25 percent.
Four Topol launchers to take part in Moscow Victory Parade
MOSCOW, April 15 (RIA Novosti) - Four mobile Topol missile launchers are to take part in the Victory Parade in Moscow's Red Square on May 9, the Strategic Missile Forces (SMF) spokesman said Wednesday.
"The best crews from the SMF's seven missile divisions armed with Topol systems are being enrolled to participate in the military parade on Red Square," Col. Alexander Vovk said, adding that four launchers [with mock launch tubes] would take part.
Military parades on Red Square involving hardware were regularly held in the U.S.S.R. up to 1990. No military parades were held on Red Square from 1991 to 1994, and the May 9 parade in 1995 saw WWII veterans marching in central Moscow.
Troops resumed their participation in military parades on Red Square in 1996.
The first Victory Parade was held on Red Square on June 24, 1945 on the order of the then-Supreme Commander-in-Chief, Joseph Stalin.
On May 9, 2008, a military parade involving almost 8,000 personnel, 111 sophisticated tracked and wheeled military vehicles, as well as 32 aircraft and helicopters occurred for the first time since 1990. Four Topol launchers also took part in that parade.
Russia may legalize remote electronic voting this year
Gazeta.ru
Russia's Central Election Commission (CEC) has submitted to the Kremlin draft amendments to electoral laws, introducing a remote electronic voting option. The first vote using the new technology may be held in October.
Analysts believe the CEC may be creating an election environment that cannot be monitored.
Remote electronic voting largely refers to an election process whereby people can cast their votes over the Internet, most likely using a web browser. However, it also includes sending cellphone messages and using electronic social cards for this purpose.
In October 2008 and March 2009, the CEC experimented with these types of voting, and the results were recognized as a success.
However, critics repeatedly pointed out that the electronic system developers failed to consider many important issues that bring this type of voting into question. There are no tools to monitor the electronic voting process, no way to guarantee a single ballot casting by each voter, and no security system provided for transferring the results of the vote.
The only country that has officially introduced running national elections over the Internet is Estonia. As for SMS-voting, no one in the world has dreamed of it yet.
Analysts have brought a wave of criticism against the CEC's new initiative. Vadim Solovyev, lower house member and head of the Communist Party's legal department, said it would be hard to control the level of fraud.
"With the economic downturn at hand, voter sentiments have changed so dramatically that the usual corrections won't be enough to falsify the results. They need to invent something else now," he told Gazeta.ru.
"The electronic count system will be entirely controlled by the Kremlin and the Federal Agency for Government Communications & Information (FAPSI)," he added.
The observers institute is no longer effective at the federal elections, and in the regions it is used on the decision of local authorities, said Alexander Kynev, director for regional programs at the Foundation for Information Policy Development, a partner of USAID in Russia.
With political competition decreasing, there will be no way to control electronic voting, he said.
New method for fish fraud
2009-04-15
The Russian Federal Security Service (FSB) has revealed a new method for fish fraud. Small motor boats transport fish from vessels in the Russian economic zone to shore at places where control is weak.
According to Head of the Murmansk Oblast regional FSB directorate, the motor boats transport unregistered fish from larger fishing boats out in sea to military towns where custom and veterinary control is absent. The small boats have no equipment for satellite monitoring, and are therefore hard to track.
Today two motorboats were detained by FSB nearby Safonovo in the Bay of Kola, Murmansk Oblast, web site B- reports. The boats were transporting 4 tons of illegal caught fish. Allegedly, among the six arrested smugglers there were employees in the State Small Boat Inspection, subordinate to the Ministry of Emergency Situations.
The Norwegian Coast Guard suspected that this kind of fraud was taking place, but has little control over the situation in Russian economic zone. Until 2009, Norway and Russia cooperated on exchanging data from satellite tracking of fishery vessels in the Barents Sea. This project is now over, something that complicates the work for the Norwegian Coast Guard, NRK.no reports.
Al-Qaeda activists reportedly intended to carry out series of terrorist acts in Russia
15.04.2009
Russian intelligence agencies have revealed plans of the international terrorist organization Al-Qaeda to carry out a series of terrorist acts in Russia on Easter, Moscow-based online paper Life.ru reports.
The terrorists reportedly scheduled to blow up one of the Federal Security Service (FSB) buildings in Moscow, an aviation production association and a skinnery in Kazan. The terrorists also allegedly intended to assassinate a high-ranking FSB official, Boris G. They were planning to use two vans with explosives for diversions in Moscow, online paper says.
Thanks to information received in advance by the FSB and the Ministry of Interior of Russia, the criminals have no chances, Life. Ru marks.
According to the online paper’s source in security agencies, eight members of Al-Qaeda have made the way to Kazan, Russia’s republic of Tatarstan, under false passports; three of them are considered to be Russian citizens.
- Firstly they made Indian passports, - the source told Life.ru – Then they decided to make Azerbaijan’s passports as it is easier for guestworkers to remain unnoticed.
According to security agencies, they are Mohammad Yunus ibn Mohammad Mussa (32), Dzhanes Khan ibn Ali Khan (32), Sodzhat Ali Shakh ibn Makbul Ali Shakh. All of them have perfect command of Russian language, they also speak Pushtu, Dari, Arab and Turkish languages. Their Russian names are Sergei Pavlov, Dzhamil Popov and Abdul Rakhman.
It is also known that in Moscow activity of these terrorists is coordinated by a certain representative of Badzhavar agency, Khosein Umarov.
Except for terrorist acts on Easter they scheduled to arrange arsons of buildings of the Ministry of Interior, FSB, state institutions and branches of United Russia Party on May 5, 2009, Life.ru reports.
Moscow newspaper tried to bring to light Russian Federal Protection Service’s budget and secrets of Presidential convoy
15.04.2009
Russian tax bearers have the right to know about spendings on protection of state officials, Moscow-based daily Nezavisimaya Gazeta points out. The paper notes that the Russian State Duma today has been considering the state budget which will undergo anti-recessionary updating. Nezavisimaya Gazeta emphasizes that there are bases to believe that correction of the budget practically has not hit its confidential sections. Moreover, confidentiality of some of them looks not too well-grounded, the paper marks.
Once in four years at the inauguration of the President, the presidential cavalcade is accompanied by motorcyclist escort. Motorcyclists use the BMW vehicles in the police complete set, ordered by the Federal Protection Service (FSO) in the manufacturer’s factory. These are vehicles made in 2003, BMW R1150RT; the modern modification of which costs by dealers about 20-25,000 euro.
Besides the use of these motorcycles once in four years on the inauguration day, the FSO motorcyclists are busy during the foreign leaders’ state visits to Russia. According to Sergei Devyatov, an official spokesman of the FSO, these are no more functions for the division. Devyatov added that servicemen of the motorized escort had been fulfilling also functions of protection of the accompanied persons. The rest of the time is devoted to
trainings which are taking place in Kupavna near Moscow.
The protection officers receive their salary according to the military rank. They also get extra charges which is «a secret of the firm». The paper’s correspondent was not told how many people have been serving in the division which is not burdened with official duties. He failed to obtain information how much the vehicles costed and when they were updated last time. He was not told details on other equipment, features of training process or payment of repair of the motorcycles.
According to FSO’s Devyatov, the correspondent may theoretically try to jlearn «the information of limited access». However, the knowledge of details of everyday life of the state protection service would cause signing a pledge on nondisclosure of information and interdiction on traveling abroad for five years. Nezavisimaya Gazeta considers that the rout of the presidential cavalcade may be the only valid secret in this story.
In the open regime the budget's figure (in the column, The amount in view of changes) of the FSO spendings for 2009 is specified as 497 million roubles. The vice chairman of the State Duma committee on budget and taxes, Sergei Stogrin, agrees that this is not enough. His doubts appeared well-founded: alongside, in the column of changes, there was a figure of 217 million. The strangenesses got explained when the present data was compared with the 2007 spendings of the FSO.
Then the service spent for its needs from the budget exactly 1 billion 292 million 819 thousand 400 roubles. Stogrin explained the crafty figures to the newspaper. He said that when the government offered the three-year budget, it was adopted in a sliding mode; in 2009, the document adopted in 2007 was corrected. Therefore to learn precisely how much is allocated for the FSO in 2009, it is necessary to look the law accepted in 2007 (for the period of 2008-2010) and its subsequent editing. When the spendings for the FSO in the open part of the budget reaches 497 million roubles, these may be changes for 2009, instead of the total amount. Stogrin thinks it may simply be additive to the money allocated earlier for 2009.
The parliament member does not consider closeness of budgetary items for the FSO justified, «There are no secrets as there are no routes of movement of the President and Prime Minister described in the budget. There is said nothinh about when does he wake up and has his breakfast.” However, Stogrin agrees that the closed regime is favourable for the FSO, Nezavisimaya Gazeta concludes.
Russian secret services exploit economic difficulties of Estonia: KaPo report
15.04.2009
Yesterday, on April 14, the Security Police of Estonia (KaPo) presented the traditional
annual review of the agency’s activity in 2008 and an estimation of national security threats for immediate future, Russian news agency Regnum reports.
The project Nord Stream, activity of Gazprom, Rosneft, Transneft is mentioned in the 2008 report’s chapter, Influence of Russia on Estonia’s Economy, and also the program of creation of wind power generators in the northeast of the country and on the island of Hiiumaa. The Canadian company Greta Energy Inc. is engaged in this project, but the owners of the company are Russians, according to the KaPo year-book. It is repeatedly marked in the report that the Russian secret services "have been hoping to exploit" economic difficulties of modern Estonia, according to the news agency.
KaPo pays attention to Russian threats to economic security of Estonia
15.04.2009
One chapter in the 2008 year-book of the Security Police (KaPo) of Estonia is devoted to the Russian influence on economic security of Estonia. The general colouring of the report allows one to conclude that the KaPo sees Russia as a serious threat to the Estonian economy, daily Aripaev points out.
Not speaking about energy sector, interests of Russia are kept in the transit sector which «has been influenced both by economic, and political processes», KaPo concludes. The Security Police marks that the transit business connected with Russia is accompanied with high and diverse risks, «and there is no sense to look for their reasons in Estonia».
The Security Police of Estonia believes that «in the field of economic security danger is represented with attempts of Russia to influence domestic policy of the adjacent states, including Estonia, by means of economic levers. Still the dependence of the Estonian enterprises on the raw materials received mainly from Russia makes a considerable risk».
The chapter comes to the end with the following, «In the Russian Federation the law on special economic measures which can be applied to Estonia in the future has been adopted. On the other hand, practice has shown that Russia has been approaching the problems creatively and is ready to apply also informal economic sanctions, doing it usually selective, therefore the enterprises which are in the best relations with the Kremlin, get competitive advantage».
Estonia’s Security Police worried about Russia’s ‘unhealthy interest’ about Estonian power sector
15.04.2009
Russia has been showing an increasing interest about Estonian power projects, first of all in the field of nuclear and wind energy, the annual report of the Security Police of Estonia (KaPo) marks.
«Concerning the latter, it is important that currently as compensation of instability of Estonian wind energetics the most probable decision is the generators using gas», daily Postimees cites the report.
The planned construction of major wind generator parks in Hiiumaa and Ida-Viirummaa of general capacity of 1,500-2,000 MW deserves special attention, KaPo says. The security service notes the Russian trace in activity of Greta Energy company: in spite of the fact that the firm has been founded in 2004 in Canada, it is very closely connected with Russia; the heads of the company are natives of Russia, and the largest office of Greta Energy outside Toronto is in Moscow, according to Postimees.
Russia uses compatriots, military pensioners in its political aims in Estonia, KaPo report
15.04.2009
The Kremlin uses the Russian compatriots in Estonia as an instrument of its policy and tries to lead to European Parliament its own candidate, the 2008 report of the Security Police of Estonia (KaPo) says, according to ERR Novosti.
The fund Russian World and the Impressum press club are named as organizations hostile to Estonia in the report, according to Estonian TV program AK. The program reminded that on December 18, in Tallinn, in the premises of Pushkin's Institute, the Russian Centre, a gift of then Russian President Vladimir Putin’s created fund Russian World to Russian-speaking residents of Estonia, was opened. Russian ambassador Nikolai Uspensky and executive director of fund Russian World, political scientist Vyacheslav Nikonov were present at the opening ceremony in Tallinn.
Nikonov told that day in an interview to Aй that it would be difficult to use the centre in political aims, "...because this center is a gift of the fund to Pushkin's Institute. There will be no our workers".
According to the Security Police, opening of the centre marks the beginning of a new stage of the ‘Russian compatriots’ policy’, hostile towards Estonia with an aim of inciting the Russian-speaking minority against the Estonian state
The General Director of the Security Police, Raivo Aeg, declared at presentation of the KaPo annual report: "The policy of compatriots is a vivid example of influence on the Russian-speaking population living outside of the Russian Federation".
It is marked in the report of the Security Police that the Kremlin has one more purpose, to get a seat of the European Parliament’s member for its associate. Efforts to consolidate local Russian-speaking politicians have been undertaken for this purpose.
There is nothing bad in the quest of politicians to unite, noted Aeg, but it is unacceptable when similar processes have been managed by unfriendly forces from abroad.
About creating the unified service record by Estonian Russians failed to agree on a united electoral list and the main hope (as the KaPo puts it) of the Russian intelligence agencies, director of the Centre of Information on Human Rights Alexei Semenov refused to stand in the elections.
According to Aeg, this time artful plans of the Kremlin got broken by itself, without participation of the Security Police. He also marked that the KaPo was outside of politics, "The Security Police do not participate in the political life and in acceptance of political decisions. They are accepted by politicians".
Alongside with the description of activization in Estonia of the right and Islamic radicals, in the annual report it is in detail spoken also about exposure of the Russian spy Herman Simm, recruited by the KGB in 1968 and by the Russian military intelligence in 1995. Nowadays Simm was recruited by the military pensioner Valery Zentsov. With this fact the KaPo supports the conclusion about doubtless danger to the Estonian state that has been individually and collectively represented by military pensioners of the Soviet and Russian armies.
Russia lifts security regime in Chechnya: report
Thu Apr 16, 2009 3:44am EDT
MOSCOW (Reuters) - Russia lifted at midnight (4:00 p.m. EDT on Wednesday) the tight security regime that has been in force in Chechnya for the past decade, Itar-Tass news agency quoted security officials as saying on Thursday.
"This decision aims to create conditions to further normalize the situation in the region, to restore and develop its economic and social infrastructure," the agency quoted Russia's Anti-Terrorist Committee as saying in a statement.
Restrictions such as curfews, roadblocks, periodic searches and easier detention rules were imposed in Chechnya in 1999 when Russia sent troops to the region to end its short-lived independence, won in an earlier war with Moscow.
(Reporting by Dmitry Solovyov, writing by Guy Faulconbridge)
Russia 'ends Chechnya operation'
Russia has ended its counter-terrorism operation in the southern republic of Chechnya, Russian media report, quoting security officials.
The National Anti-terrorist Committee terminated the operation as of 0000 (2000 GMT on Wednesday), they said.
Russian forces have fought two major campaigns against separatist rebels in the predominantly Muslim republic since the collapse of the Soviet Union.
Last month, President Dmitry Medvedev said life was returning to normal.
Counterterrorist operation cancelled in Chechnya (Part 2)
MOSCOW. April 16 (Interfax) - The counter-terrorist cooperation
regime in the Chechen Republic has been cancelled, the National Anti-
Terrorist Committee reported.
"By order of the president of the Russian Federation, the National
Anti-Terrorist Committee has made changes to the organization of the
anti-terrorist activities on the territory of the Chechen Republic.
Alexander Bortnikov, chairman of the Committee and director of the
Russian Federal Security Service, has cancelled the decree declaring a
counterterrorist operation in the territory of the republic as of
midnight of April 16," the National Anti-Terrorist Committee said in a
statement on Thursday.
As of midnight of April 16, "antiterrorist activities in this
region of the Russian Federation will be conducted in accordance with
the general regulations effective in the other regions of the country,"
the document says.
The purpose of this decision is to promote the further
normalization of the situation in the republic and to restore and
develop its socio-economic life, the report says.
The Chechen operative headquarters has received instructions to
optimize the composition and resources of the United Group of troops
intended for counterterrorist operations in the Northern Caucasus and to
improve the procedures governing their use in the modern conditions,"
the document says.
Kadyrov's New Ichkeria
16 April 2009
By Sergei Markedonov
At first glance, it would seem that the recent murder of Sulim Yamadayev in Dubai placed the "Chechnya problem" again in the spotlight after several years of being in the shadows. But the Dubai incident is unlikely to prompt world leaders to reconsider the issue of Chechen independence. Moreover, widespread human rights violations in Chechnya, which used to be a rallying point for opposition groups both within Russia and in the West, now attract far less attention than they once did.
Today, the discussion centers on the price for keeping Chechnya as a subordinate republic within the Russian Federation. How much control does Moscow really hold over Chechnya? Is Chechnya proving to be a case of the tail wagging the dog? The answers to these questions throw doubt on the effectiveness of the power vertical built by Prime Minister Vladimir Putin.
Post-Soviet Russia has implemented three different methods for controlling "Ichkeria," the name for the historical part of Chechnya that was occupied by the tsarist army in 1852 and romanticized by Chechen nationalists in the early 1990s as a symbol of resistance to Russia. But for all of the seeming differences in these three approaches, they have one thing in common: They did not resolve the problem of how to fully integrate Chechnya into Russia.
The first method for dealing with Chechnya could be termed "administrative autism." It was applied from 1991 to 1994 and again from 1996 to 1999, when Moscow only pretended that Chechnya was part of Russia. In reality, Chechnya did not pay taxes to the federal budget or obey Russian laws.
The second approach was to use the siloviki to stifle Chechen separatist movements. Even now, I am convinced that the use of force was necessary to neutralize the separatist threat that militants posed to Russian -- and even Eurasian -- security. But when Moscow applied that method in 1995 and 1999, it should have been kept within a strict legal framework to avoid the widespread abuses by military and police forces.
The third approach can be termed the "Chechenization of authority." This involved handing over full authority to the republic's elite in exchange for a formal demonstration of loyalty to Moscow. This tactic was applied in the early 2000s. At that time, the Kremlin did not take the traditional approach of relying on pro-Russian Chechens who had fought on the Russian side during previous military operations in the Caucasus. Instead, Moscow placed its bets on former Chechen field commanders and separatist ideological leaders -- for example, former Chechen President Akhmad Kadyrov, who had been in conflict with radicals seeking an independent Islamist Chechen state.
The Kremlin reached a sort of social contract with the separatist leaders whereby they could fulfill most of their nationalist goals within Chechnya as long as the republic formally remained part of Russia. At the same time, they were given an unprecedented amount of authority and autonomy not enjoyed by any other republic in Russia. At the same time, Moscow turned a blind eye to the violent methods that the Chechen leadership used to quell the insurgents.
At first, this policy was placed in the hands of Akhmad Kadyrov, but following his assassination in 2004, it was passed on to his son, Ramzan Kadyrov. Today, Ramzan Kadyrov sets his own political agenda and allows public debate and even criticism of the Federal Security Service and Rosneft -- normally considered "sacred cows" by the Kremlin. Kadyrov has exploited his free reign on many occasions -- by pushing opponents such as former Chechen President Alu Alkhanov and the Yamadayev brothers out of the way, granting his own form of amnesty to former insurgents and reducing Russia's military presence on Chechen soil.
What has been the result of this Chechenization policy? Today, fewer terrorist attacks are committed in Chechnya than in Dagestan, and only a few insurgent groups are still calling for the republic to break away from Russia. What's more, Chechen's political elite are much more allegiant to President Dmitry Medvedev and Putin than leaders of other Caucasus republics.
It would be difficult to describe Chechnya as peaceful, but Kadyrov has attained "stability" in the Russian and Chechen definition of the word. Nonetheless, this stability has come at a very high price. The flip side is that Chechnya's internal political issues are largely resolved without Russia and with minimal adherence to federal laws.
In this sense, a new type of separatism has won out in Chechnya. Strangely enough, this separatism fits nicely into the Kremlin's power-vertical model. Kadyrov has fulfilled the dreams of the republic's leaders of the early 1990s. He has created his own version of an independent Ichkeria -- and best of all, Kadyrov was able to do it without fighting Moscow.
Sergei Markedonov is the head of the interethnic issues group at the Institute for Political and Military Analysis.
Chechen problem far from over
Rupert Wingfield-Hayes
BBC News, Moscow
After two wars and 15 years of bloody conflict, Russia has declared an end to its "anti-terrorist operations" in Chechnya.
On the surface this looks like a victory for the Kremlin.
The official Russian version goes something like this: After years of arduous struggle the terrorist threat in Chechnya has been neutralised. The Chechen republic is once more at peace, and reconstruction is in full swing.
Chechnya's young pro-Moscow President, Ramzan Kadyrov, has said as much on Russian television.
"There was not a single terrorist attack in 2008," he said. "The people of Chechnya have long forgotten about the war. We're developing, building and restoring the economy of the republic."
According to Mr Kadryov there are no more than 50-80 rebel fighters still holding out in the mountains.
Disaster
Russia's first war in Chechnya, in the mid-1990s, was a disaster. Thousands of poorly-trained Russian conscripts were slaughtered as they attempted to retake the Muslim republic by force.
After two years Moscow was forced to negotiate a ceasefire.
In 1999 Russia's then-Prime Minister Vladimir Putin launched a second massive offensive. In the ensuing battles Chechnya's capital Grozny was pounded to rubble. More than a third of the Chechen population fled. By 2002 the UN named Grozny "the most destroyed city on the planet".
But at the same time the Kremlin's strategy changed. The key was the defection to Moscow of several powerful Chechen clan leaders.
The most important was Akhmad Kadyrov, the former chief mufti, or senior religious leader, of the Chechen republic.
In 2003 Akhmad Kadyrov became President of Chechnya. His strategy was to divide the rebel movement. Those who could be persuaded - or bought - were offered amnesty, and a job in the Chechen security forces. Those who held out would be hunted down and killed.
A year later Akhmad Kadyrov was killed in a bomb blast at Grozny football stadium.
Ruthless
In his place Moscow turned to his son Ramzan. A former rebel fighter with little education, Ramzan Kadyrov has nevertheless proved a ruthless exponent of Moscow's cause. He commanded a private army of former rebel fighters, known as the Kadyrovtsy.
They are accused by human rights groups, like Memorial, of systematic abuses, kidnappings, torture and murder.
In the last eight years thousands of young Chechen men and women have disappeared.
Today, at the age of just 32, Ramzan Kadyrov is Chechnya's president. He rules over the tiny republic by fear. Last year human rights groups reported a new campaign had begun against those suspected of joining the rebels.
Groups of masked gunmen are reported to have begun burning down the houses of families whose young men have "gone to the forest".
Mr Kadyrov himself is reported to have gone on Chechen television and warned: "The families of those in the forest are collaborators in their crimes."
At the same time Moscow has been pumping hundreds of millions of dollars into Chechnya's reconstruction.
The capital, Grozny, has risen from its ruins at extraordinary speed. At its centre is a huge new mosque, said to be one of the largest in Europe.
Problems persist
But if Moscow and its local allies have succeeded in pacifying Chechnya, their problems are far from over.
Mr Kadyrov himself has admitted that unemployment in Chechnya remains above 50%. That means tens of thousands of young men with no formal income and nothing to do.
And the war has not ended, it has moved elsewhere. To the east, in the republic of Dagestan, 21 people were killed recently in a three-day gun battle between Russian troops and rebels.
To the west, in the tiny republic of Ingushetia, a violent insurgency is growing.
But there is yet another worry for Moscow. By localising the conflict in Chechnya the Kremlin has devolved enormous personal power to Ramzan Kadyrov.
He is careful often to declare his absolute loyalty to his mentors in the Kremlin. But at the same time he runs Chechnya like a virtual independent fiefdom.
Some in Moscow wonder how long that loyalty will last.
13.07.2006
DOSSIER: CHECHEN SECURITY FORCES 2000 – 2006
Security Service of the Kadyrovs - the Antiterrorist Centre
General profile
Numerical strength
Structure
Command
Contacts with separatists
Operative functions
Area of responsibility
Relations with secret services
Conclusion
Division of Movladi Baisarov
General profile
History
Personnel
Criminal activity
Relations with secret services
Oil Regiment
General profile
Numerical strength and structure
Command
Operative functions
Regiment named after Akhmat Kadyrov
General profile
Command
Operative functions
Area of responsibility
Battalions Sever and Youg
General profile
System of subordination
Numerical strength
Personnel and structure
Command
Operative functions
Area of responsibility
Special-task police unit/riot police (OMON)
General profile
History
System of subordination
Command
Numerical strength and staff
Operative functions and tactics
Intelligence and counterintelligence
Area of responsibility
Defense Ministry Battalion Vostok
General profile
History
System of subordination
Command
Numerical strength
Personnel
Operative functions and tactics
Intelligence and counterintelligence
Area of responsibility
Defense Ministry Battalion Zapad
General profile
History
System of subordination
Command
Numerical strength and personnel
Operative functions and tactics
Intelligence and counterintelligence
Area of responsibility
Sufi factor
Security Service of Alu Alkhanov, the President of the Chechen Republic
General profile
Personnel
Operative functions
Related items:
Dossier: Chechen Security Forces 2000 – 2006 (13.07.06)
New Chechen Army Threatens Moscow (12.07.06)
Chechen Intelligence Will Operate Throughout the World (10.07.06)
Russian Secret Services Destroyed the Symbol of Chechen Separatism (10.07.06)
Mossad Agents Eliminated in the Northern Caucasus (27.03.06)
April 15, 2009
Whipping Them Into Shape
By Roland Oliphant
Russia Profile
The Long-Awaited Cull of the Candidates for the Sochi Mayoral Election Has Begun
Alexander Lebedev went first. Following an appeal by another candidate, the Sochi District Court on Monday found that his candidacy was illegal. On the same day, Andrei Bogdanov, another liberal candidate, stepped down. On Tuesday, the same court that ruled against Lebedev also barred the Just Russia candidate from the race. If the Sochi elections started out as a circus, it seems that the ring-master is now imposing some order.
The details are still somewhat hazy, but according to Lebedev’s spokesman Artyom Artyomov, the move came after another candidate, Vladimir Trukhanovsky, complained that Lebedev had not accounted for three “illegal” money transfers in his initial financial declaration. Artomyov said those transfers consisted of just 500 rubles from teenagers (it was their age that made the transfer illegal – donations from minors are forbidden under the Russian law), and that the money was returned “as soon as we knew about it.”
He also called the judge’s decision to kick Lebedev off the ballot “illegal,” and claimed that both the prosecution and the electoral commission were against it. “We transferred this money back as soon as we knew about it,” he said, “and of course, we will appeal.”
The Sochi mayoral elections, to be held on April 26, have attracted one of the most diverse ranges of candidates seen in any Russian election in recent years. Apart from Lebedev, the candidates include United Russia’s official candidate, acting Mayor Anatoly Pakhomov, and Boris Nemtsov, a leading liberal opposition figure. The Liberal Democratic Party of Russia (LDPR) briefly fielded Andrei Lugovoi, the suspected killer of Alexander Litvinenko, before withdrawing him on the grounds that he was more useful in the State Duma. Other candidates included a ballerina, a soft porn star, an arm wrestler, and the Communist Party candidate Yury Dzagania (a local who was so disappointingly sensible a choice that most reports on the race initially failed to mention him, though he is tipped by some to come second).
The rush to Sochi is partly because the stakes are high – the winner will host the 2014 Olympics and have considerable say over how the vast sums allocated for the games will be spent. But analysts have also suggested that it may be because in Sochi, candidates can register for the ballot simply by paying a “candidate’s fee,” rather than gathering signatures. In the past the requirement for signatures have been used to disqualify opposition candidates for Presidential and Duma elections (Mikhail Kasyanov, a former prime minister who was running on a liberal opposition platform, was disqualified from the presidential elections in 2008 after the Central Elections Committee declared that more than 13 percent of the two million signatures he had laboriously gathered were “invalid”). Lebedev was one of the candidates in Sochi who had opted to pay the fee, rather than gather signatures.
Still, the move does not come as a surprise. Speaking shortly after Lebedev first announced his candidacy in March, Nikolai Petrov, a domestic affairs watcher at the Moscow Carnegie center, cautioned that despite the registration fee, “there are still plenty of ways to kick someone off the ballot. You can always find some excuse.”
That excuse seems to have been found, and it is being applied ruthlessly. On Tuesday, the same court ruled that Just Russia’s candidate, Viktor Kurpitko, should also be removed from the ballot - also for failing to fill out his registration documents correctly.
Both Just Russia and Artyomov have described Trukhanovsky as a spoiler (or, as they put it, “technical”) candidate who has been entered the race to eliminate the rivals to Pakhomov. “He is there only to screw things up for the other candidates,” said Artomyov. Opacity about who he is or why he is standing – he is described universally only as a “Krasnodar businessman” – only add to that suspicion. But if he is pawn of the powers that be, then it seems to signal that the authorities have changed tactics.
Lebedev and Kurpitko are not the only ones to be eliminated from the race. Anastasia Volochkova, a ballerina and socialite, was disqualified two weeks ago on a similar technicality - forgetting to put her date of birth on the bank deposit slip for her election entry fee. And Andrei Bogdanov, a former liberal opposition figure who now heads the “Kremlin friendly” Democratic Party of Russia, stepped down of his own accord on Monday.
“At first the authorities – probably the local authorities - attempted to make this election a farce, a circus, in order to discredit the opposition. So you had people registering like Volochkova, and Yelena Bekova, who has been described as a porn star. But then this idea encountered some resistance – at the federal level, not the regional level - and the election took on a somewhat more thoughtful character. People like Volochkova and Bekova quit or forced out, and they managed to find a more or less respectable reason to do so. As for Bogdanov, neither his decision to stand nor his withdrawal could have happened without consultation with the authorities,” said the political analyst Dmitry Oreshkin.
Oreshkin believes Bogdanov was originally invited to stand as a counterweight to Nemtsov. But his exit from the race is actually likely to consolidate the liberal vote in Nemtsov’s favor. If Lededev, another liberal favorite, fails to overturn the court’s decision (and with elections scheduled for April 26, he has less than two weeks to do so), the election could become a straight fight between Nemtsov and Pakhomov – and, lest we forget him, the communist Dzagania.
“That could definitely happen,” said Oreshkin. “We’ve now just nine people in the race. But the greatest chance obviously goes to Pakhmonov – he can call on the administrative resource to support him, the media resources, and he is the incumbent.”
Lebedev has vowed that he will appeal and that the campaign will go on, and his team seems convinced that he is headed for victory. Asked about Lebedev’s chances, Artyomov bullishly declared that “if he is not disqualified, without question he will win. He is very popular in Sochi.”
Polling data is contradictory, however. Data from pollsters close to United Russia suggests the results will break down in a familiar pattern, with Pakhomov taking over fifty percent, followed at a considerable distance by the communists and Nemtsov. But Nemtsov’s campaign says he could take 20 percent of the vote. VTsIOM, a state-run pollster, says it will conduct a poll this weekend and publish its figures Tuesday.
It is not clear if the authorities will continue their crackdown over the next week and half. In an interview with Novaya Gazeta published Wednesday, President Dmitry Medvedev denied any knowledge of how or why Lebedev had been ejected from the race, and praised the process. “In any event, what is happening in Sochi is a proper political fight,” he told the paper. It certainly started that way. But it may not finish like that.
Nearly Half of Russians Now Blame Moscow for Economic Crisis
April 15, 2009
Paul Goble
Vienna, April 15 – Forty-two percent of Russians now blame the Russian government for the economic crisis that is hitting their country, more than twice as many as blame either major Western countries like the United States or say it is the result of problems inherent to capitalism, according to the results of a massive poll released today.
Experts at the Group7/89 survey firm said that a March survey they conducted of 14,200 people in 17 cities and regions found that 42 percent of Russians blame their own government for the economic crisis, 20 percent blame the US and other Western countries, and 16 percent blame capitalism (sobkorr.ru/news/49E5CB36D7F72.html).
The poll found, the Group’s experts said at a Moscow press conference, that “the share of those who consider America and the West to blame is higher among the more well-off and stable categories of the population and also among young people, those in the military and officers in the militia.”
On the one hand, of course, that pattern may reflect greater knowledge and understanding of the crisis by people in these categories. And on the other, it may be a product of the tendency of less well-educated and less urban groups to blame “the vlasti” or the powers that be in an undifferentiated fashion when things go wrong.
Other participants at the press conference provided additional details on what these findings portend in both the near and longer term. Volgograd sociologist Vasily Tokaryev said that as economic conditions have deteriorated in recent months, many Russians are becoming more optimistic about the longer term rather than the reverse as might be expected.
Another participant, Viktor Moisov of Moscow pointed out that the findings of this poll showed that “the more loyal the region is toward the powers that be” – apparently in terms of other data including last year’s elections – “the greater the expectations” about escaping from the crisis its residents appear to have.
And a third speaker, Sergey Tsyplenkov, described in greater detail the Group7/89 findings for Kaliningrad, the non-contiguous part of the Russian Federation on the Baltic Sea. He reported that 50 percent of Kaliningrad residents blame Moscow for the crisis, a figure “higher than the average” for the country as a whole.
On the one hand, he suggested, this reflects recent surges in unemployment there and a higher than average rate of inflation this year. But on the other, it also is a product of that region’s long-standing antipathy to the center: In both the presidential and Duma elections, Kaliningraders were among the least supportive of residents of any region in the country.
The findings of this poll are instructive. First, they show that the economic crisis in Russia is affecting the political attitudes of a far broader segment of the population than many have been assuming, something that portends real problems for the regime if conditions do not improve soon.
Second, these findings, which were reported today in the first instance by an Internet news portal linked to opposition figure Gari Kasparov, are certain to be exploited by him and other opposition figures to pressure the regime to provide more assistance to those hardest hit by the crisis.
And third, the results are certain to encourage at least some in the regime itself to conclude that Moscow can still count as unquestioned allies the well-to-do and the siloviki and that the authorities need make no such concessions to the population anytime soon, a conclusion that could of course quickly prove to be a problematic one if the crisis gets deeper.
This pattern in turn likely sets the stage in the Russian Federation not for compromise but rather for confrontation, especially since ever more groups and individuals are taking part in public protests and since ever more analysts are suggesting that the powers that be have no plans to change course or back down.
Indeed, Russian commentators on Russian President Dmitry Medvedev’s “Novaya gazeta” interview have gone out of their way that his intended audience was primarily Western governments and opinion leaders (polit.ru/news/2009/04/15/titkov.html) and that his words don’t point to any liberalization (sobkorr.ru/news/49E5A77E6CD33.html).
National Economic Trends
Russian Ruble Gains Against Euro, Little Changed Versus Dollar
By Emma O’Brien
April 16 (Bloomberg) -- Russia’s ruble strengthened against the euro and was little changed versus the dollar.
The currency added 0.2 percent to 44.1262 per euro by 10:09 a.m. in Moscow, from 44.1969 late yesterday. It was steady at 33.4495 per dollar, from 33.4142.
Those movements left the ruble little changed at 38.2436 against its target basket, which is made up of about 55 percent dollars and the rest euros and is used to limit fluctuations that harm exporters. The currency closed at 38.2664 yesterday, above the 41 basket threshold the central bank pledged to defend from further depreciation in January.
To contact the reporter on this story: Emma O’Brien in Moscow at eobrien6@
Last Updated: April 16, 2009 02:20 EDT
Statistics: Russia’s industrial output falls 14.3% in Jan-Mar
MOSCOW, Apr 15 (Prime-Tass) -- Russia's industrial output fell 14.3% on the year in January-March, the Federal State Statistics Service said in a report obtained by Prime-Tass on Wednesday.
In March, Russia’s industrial output decreased 13.7% on the year and increased 11.1% on the month, the service said.
Mineral resource production fell 3.8% on the year in January-March, while the output of processing industries decreased 20.8% on the year. No absolute figures were provided.
The output of oil and gas condensate decreased 1.3% on the year to 120 million tonnes in January-March, while natural gas output fell 14.7% on the year to 154 billion cubic meters, coal output dropped 18.7% on the year to 69.3 million tonnes, and iron ore output decreased 26.9% on the year to 19.2 million tonnes.
Electric power output fell 5.7% on the year to 274 billion kilowatt-hours in January-March and thermal power output fell 2.4% on the year to 537 million gigacalories.
Primary oil refining decreased 2.5% on the year to 58 million tonnes in the period, gasoline output increased 1.9% on the year to 9.1 million tonnes, diesel fuel output fell 2.7% on the year to 16.9 million tonnes, and fuel oil output decreased 4.2% to 16.4 million tonnes.
The output of ferrous rolled stock decreased 29.6% on the year to 11.3 million tonnes, and the output of steel pipes decreased 29.7% on the year to 1.4 million tonnes.
Car output plummeted 62.9% on the year to 123,000 units, truck output plummeted 75.4% on the year to 16,300 units, and bus output dropped 69.2% on the year to 5,300 units in the period.
Interest Rate Regulation?
Central Bank deputy head Alexei Ulyukayev dismissed on Wednesday a proposal to regulate commercial banks' interest rates.
"I am against the regulation of commercial banks' lending rates. It is a dead-end path," he said on the sidelines of a meeting of industry lobby the Russian Union of Industrialists and Entrepreneurs.
The idea of state regulation of bank lending rates was proposed by President Dmitry Medvedev, but no decisions have yet been taken on the issue. (Reuters)
Business, Energy or Environmental regulations or discussions
Russian Business Week continues in the Russian capital
MOSCOW, April 16 (Itar-Tass) — Priorities of long-term development of industry, energy and agro-industrial complex are dominating a Russian Business Week that is being held in the Russian capital.
A source at the Russian Union of Industrialists and Entrepreneurs told Itar-Tass that the Russian Business Week was a playground for conducting a dialogue between the power and businessmen whose aim is to find optimal solutions and overcome negative consequences in the economy.
“The key subject for discussion at the current forum will be a situation in the Russian economy during the crisis and prospects for its development,” the source went on to say.
The annual Russian forum of industrialists and entrepreneurs that will be held on April 16 will be the highlight of the Russian business week.
The events and forums held on the sidelines of the Russian Business Week will be attended by government officials, representatives of the leading Russian and foreign companies and experts.
Business awaits new tax proposals from government
16 April, 2009, 10:06
Russia won’t increase company tax in the next three years despite its budget deficit. Companies have called for tax cuts. But even the possibility of lower VAT in two years looks vague.
Russia’s top economic decision makers have clashed over possible tax cuts to help business through the first recession in decade. Despite a budget deficit of 8% the Government wont increase the tax burden on companies in the next two years. But from 2011 Russian firms will have to pay higher social tax levies.
To maintain the economic competitiveness of Russian business, Presidential Aide Arkady Dvorkovich has proposed offsetting the increase by cutting the Value Added Tax (VAT) rate from its current level of 18%.
“Value Added Tax is most likely to be drastically cut by 2011. There is an ongoing debate on that in the Government. The Business community and the Ministry of Economic Development want it to be 10- 12%. But the final say will be up to the Finance Ministry.”
And the finance ministry says no. Alexei Kudrin, Russia's Finance Minister warns tax cuts would undermine falling budget revenues and result in higher interest rates and devaluation. Business however says higher taxes in 2011 will be damaging for domestic producers.
Moreover the tax authorities intention to concentrate attention mainly on big businesses hasn’t gone down well, with David Yakobashvili, Head of Wimm-Bill-Dann predicting dire outcomes.
“I hope that it's partly a joke and something will be changed and wisdom will take over. Otherwise we're going to kill some businesses.”
The government plans to take a final decision on VAT cuts no earlier than next spring. But the cracks that have appeared in the government’s united front on the crisis mean that the issue might not be settled for some time.
Shmatko Says 3 Firms Not Investing
16 April 2009
By Anatoly Medetsky / The Moscow Times
Energy Minister Sergei Shmatko on Wednesday accused three private companies, including Norilsk Nickel, of failing to fulfill their commitments to invest in electricity assets.
The criticism came as the government tries to buttress the economy by unloading money from the Reserve Fund, its cash purse from the years of the oil boom, and it expects private investors to follow suit where possible. Private owners of electricity assets have raised 448 billion rubles ($13.4 billion) to finance investment in generating capacity.
Shmatko said Sintez Group and Viktor Vekselberg's Integrated Energy Systems have shown poor progress on their investment plans, while Vladimir Potanin's Norilsk Nickel has diverted money away from electricity. He spoke during a meeting convened by Prime Minister Vladimir Putin in the Tver region to discuss the nuclear power industry.
A Norilsk Nickel spokeswoman denied Shmatko's accusation. Calls to Sintez and IES went unanswered Wednesday afternoon.
Private investors, including Italy's Enel and Finland's Fortum, bought controlling stakes in electricity assets as the government dismantled its monopoly in the industry in 2007 and 2008. As a condition of the acquisitions, the companies agreed to boost capacity and raised a total of 448 billion rubles through share offerings to finance a portion of those plans.
But the electricity market is shrinking during the crisis, and affordable credit has all but dried up.
Shmatko said five companies have fully complied with their investment obligations: Enel, Fortum, Germany's E.On, LUKoil and ESN Group.
The government has raised regulated electricity rates for this year as previously planned in order to make good on its commitments to the electricity investors. In contrast, it has slashed rate increases in other regulated sectors.
Shmatko's complaint about Norilsk Nickel appeared to refer to a deal by its power generator OGK-3 to buy stakes in three companies from the miner for $612 million in October rather than invest in its core business.
Norilsk denied that it or OGK-3 had binding commitments to boost capacity.
"We don't have any obligations regarding OGK-3," the Norilsk spokeswoman said. "And OGK-3 has no legal obligations to fulfill its investment program."
Sintez, controlled by Federation Council Senator Leonid Lebedev, is trying to back out of a deal to buy a stake in TGK-2 after Germany's RWE in September quit a partnership to acquire the stake jointly.
The Energy Ministry could allow changes to the investment plans by private investors, such as delays or moving locations, Shmatko said.
Putin said private investors shouldn't deviate from their plans. "The rules don't change in the middle of the game, no matter how hard things may be," he said, without singling out any firms, according to a transcript of the meeting posted on the Cabinet's web site.
The government must be in contact with the investors, offering help if necessary, he said. "One thing is absolutely clear: These programs must be implemented," he said.
Electricity consumption will grow at precrisis levels again by 2012, Putin said. That year, the growth will reach 3 percent, he said, citing unspecified experts.
The current decline -- expected to reach 4.5 percent this year, according to the Energy Ministry -- will reverse itself next year, Putin said.
Some industry representatives see a darker future. Russia's power demand is unlikely to return to its 2008 peak until at least 2013, Vladimir Shkatov, deputy head of the Market Council, a power industry watchdog, said at an industry conference in Moscow. The Market Council predicted that demand would drop by 9 percent this year, stay unchanged for the next two years and climb up by 1.5 percent at best in 2012.
Nadia Popova contributed to this report.
OGK-3: 2008 RAS results: net profit up substantially
UralSib
April 15, 2009
Yesterday, OGK-3 (OGKC - Spec Buy), which is controlled by Norilsk Nickel, announced 2008 RAS financials: net profit grew three-fold to $290.4 mln in 2008 driven mainly by interest income of $230 mln. Sales increased 18.8% to $1.53 bln driven by average electricity tariff growth of 18.7%, while operating expenses grew 16.2% to $1.39 bln driven by a fuel price increase. EBITDA grew almost six-fold to $213.5 mln, implying EBITDA margin growth of 11.2 ppt YoY to 13.9%. At the same time, we highlight that 2007 financials were negatively affected by other expenses, including IPO expenses ($31.4 mln) and the revaluation of bad debt ($35.8 mln), while in 2008 the financials were positively affected by a forex gain of $67.5 mln. In addition, the company's net margin grew substantially from 7% to 18.9%. We view the announced financials to be speculatively positive for the share price performance, considering the significant increase in the company's EBITDA and net profit figures.
Still full of cash. In terms of balance sheet (the most interesting part of the financial statement), the company's debt is close to zero, while it holds nearly $1.77 bln of cash (including short-term investments) on its book. We also note that the company's total cash position dropped 42.8% YoY due to ruble devaluation and the purchase of stakes in Rusia Petroleum ($576 mln) and Plug Power Inc. ($33 mln) in October 2008.
Uncertain fate over the company's cash. Currently, OGK-3 shares trade with a negative EV, as the company holds $1.77 bln in cash on its books, which exceeds the company's current market capitalization of $1 bln. In our view, market uncertainty over the fate of this cash is the main reason for the company's negative valuation. We have a Speculative Buy recommendation on the shares of OGK-3, as the cash on its books might be used to the detriment of minority shareholder interest.
MOESK reports weak 2008 RAS financials
UralSib
April 15, 2009
Significant drop in financials. Yesterday, Moscow Unified Electricity Company (MOESK; MSRS - Under Review) published 2008 RAS financials that showed a deterioration in profitability on the back of a 4Q08 drop in distributed electricity and a decline in connection fee payments. We stress, however, that a comparison with last year's figures is unrepresentative as, in July 2008, the company acquired the Moscow City Electricity Company. In terms of consolidated financials, the company's revenue grew 36.6% YoY to $2.91 bln, while operating expenses were up 60.8% YoY to $2.56 bln. The company's EBITDA dropped 20.8% YoY to $612 mln, implying an EBITDA margin of 21.1% (down 15.3 ppt YoY), while net profit was down 53.8% YoY to $166.6 mln which equates to a net margin of 5.7% (down 11.2 ppt YoY). We view these financials as negative for the stock as there was a significant deterioration in consolidated profitability. We also have a negative outlook for MOESK's 2009 financials due to an expected further decline in electricity consumption and connection fees.
High leverage. In terms of balance sheet the company looks quite weak with total debt of close to $1.53 bln which will put significant pressure on the bottom line. However, short term debt ($124mln) represents only 8.2% of total debt and is fully covered by its cash balance of $176.8 mln. At the same time, the company has a financial debt/EBITDA ratio of close to 3.0, which is very high for the sector and it may have difficulty attracting additional debt to finance its 2009 investment program.
Premium to Russian peers. MOESK is trading at an EV/distribution multiple of $24.2/MWh and an EV/RAB multiple of 0.41, which represent premiums of 98.4% and 46.4% to the Russian peer average. We regard these premiums as a result of the company's competitive advantages, such as location in the Moscow region. However, we believe the stock may come under additional pressure due to a likely deterioration in 2009 financials.
RusHydro Presells Key Plant
16 April 2009 The Moscow Times
RusHydro said Wednesday that it has presold all the electricity for 2010 from a key hydropower plant that it is building with United Company RusAl, although financing problems have cast a cloud over the project.
Acting CEO Vasily Zubakin said at an industry conference that the contracts have facilitated RusHydro's talks with banks on getting loans of up to 36 billion rubles ($1.1 billion) to finish building the Boguchansk plant, part of which is supposed to be launched next year. RusHydro manages all of Russia's hydropower stations.
The electricity will be bought by Krasnoyarskenergosbyt, a RusHydro spokesperson said. Negotiations on 2010 power supplies are also under way with Polyus Gold and Polymetal, she said.
RusAl, an equal co-investor in the plant, is seeking to delay the launch until 2012, saying the facility is too expensive and will have too few customers. The company has already delayed the start of its nearby aluminum plant, which was expected to become the main consumer. This year, 20 billion rubles are supposed to be spent building Boguchansk, the spokesperson said. Calls to RusAl's press office went unanswered Wednesday afternoon.
Zubakin said Wednesday that RusAl's role in the project was being negotiated. VEB might finance the power plant's construction, and RusHydro could take RusAl's shares, a source in RusHydro said.
Half of BasEl Staff Fired
Billionaire Oleg Deripaska fired almost half of the staff at his Basic Element investment company and may "optimize" the work force further, said Andrei Elinson, the company's head of corporate governance, Kommersant reported.
Basic Element may save as much as $90 million a year after cutting the number of staff to 360 from 650, the newspaper said. (Bloomberg)
Rusal Proposes Resumption of Construction at Smelters (Update1)
By Maria Kolesnikova
April 16 (Bloomberg) -- United Co. Rusal, Russia’s biggest aluminum producer, said it’s prepared to cut 500,000 metric tons of output at existing plants to enable construction to resume at two smelters in Siberia.
Building 300,000 tons of capacity at the two plants is “the only way to secure demand” for the 3,000-megawatt Boguchansk hydropower plant, which would otherwise have too few customers when it comes on line next year, Rusal spokeswoman Vera Kurochkina said by telephone today.
Rusal, controlled by billionaire Oleg Deripaska, also proposed state-owned utility OAO RusHydro provide $150 million of funding for the Boguchansk smelter and secure 20 billion rubles ($600 million) for the first line of the power plant, Rusal said in an e-mailed statement. The proposals have been sent to the government.
Rusal, which has slashed aluminum production after demand slumped, agreed last month to halt the Boguchansk smelter. It’s seeking to borrow $150 million for Boguchansk and $300 million for Taishet, the other Siberian smelter.
The power plant will be the biggest in Russia to be built since the breakup of the Soviet Union. The power and aluminum complex was originally estimated to cost $3.6 billion, excluding government spending on infrastructure.
RusHydro is in talks with partners on the project and is reviewing its options, Yevgeny Druzyaka, head of communications at the Moscow-based company, said in an e-mail. The government decided in April to proceed with the Boguchansk power plant and the first 600-megawatt stage will start in 2010, he said.
To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@
Last Updated: April 16, 2009 03:51 EDT
NLMK considers spinning off non-core divisions
MOSCOW. April 16 (Interfax) - Novolipetsk Iron & Steel Company
(NLMK) is looking into a spinoff of non-core divisions, including
construction and transportation divisions, the company told Interfax.
Forming the divisions into an independent company would reduce the
total number of NLMK employees by 9,000. The move would not lead to any
layoffs, the company said.
NLMK employs about 34,000 at its main facility in Lipetsk.
The NLMK group includes the core production facility Novolipetsk
Steel, Denmark's DanSteel A/S, iron ore producer Stoilensky Mining and
Processing (RTS: SGOK), coke producer Altai-Koks, transformer steel
producer VIZ-Stal and steel mini-mill developer Maxi Group.
Vladimir Lisin controls 84.6% of NLMK shares via Fletcher Group
Holdings and LKB-Invest. Company management owns 2.5% of NLMK shares.
Raspadskaya Net Profit Rose 121%
16 April 2009 Reuters
Raspadskaya said its 2008 net profit rose 121 percent to $531 million as the coking coal producer benefited from a strong performance in the first nine months of the year.
Full-year sales rose 53 percent to $1.2 billion, and its net profit margin was 44 percent, the company said in a statement issued on Wednesday.
Raspadskaya, part-owned by steel maker Evraz Group, also reduced its net debt to $165 million at the end of 2008, down from $265 million at the end of 2007.
Raspadskaya is one of several Russian metals and mining companies struggling to preserve cash during the downturn.
The company also said that it would not make a final 2008 dividend payment.
In November, it recommended a nine-month interim dividend payment of 1.50 rubles per share, one-quarter of the 6 rubles that it said it would recommend in September.
Raspadskaya also reported that raw coal production reached 1.89 million tons in the first quarter, down 35 percent from a year earlier.
Coal concentrate sales were down 42 percent at 1.3 million tons.
"The global financial crisis and a drop in the output of the Russian steel industry affected our prices and sales volumes of coal concentrate as compared to the trouble-free 2008," it said in the statement.
Alrosa Asks State to Keep Diamonds
16 April 2009 The Moscow Times
State diamond monopoly Alrosa has asked the Finance Ministry to stop sales of the precious gem from Gokhran, the state depository, to help stabilize prices, Interfax reported Wednesday, citing a copy of the letter.
Last week, Alrosa said it was cutting its 2009 production plans by one-fifth because global demand for diamonds has plummeted. The company has been selling all of its diamonds to the depositary in recent months.
The letter from Alrosa president Sergei Vybornov was addressed to Finance Minister Alexei Kudrin, who also heads the company's supervisory board, Interfax reported.
The company is asking the ministry to "temporarily halt the sales of uncut diamonds from Gokhran and to stop the competitive trade in diamonds bigger than 10.8 carats," the letter said. It also requests that the price schedule for uncut diamonds not be changed.
Russian shipyard merger completed
2009-04-15
The establishment of the United Shipbuilding Corporation is completed. A total of 33 companies in the field of ship design and shipbuilding are included in the new grand state enterprise.
In a cabinet meeting this week, Deputy Prime Minister Igor Sechin said nine construction bureaus and three regional shipbuilding centers are included in the new corporation. The western centre includes seven companies, while north-western five companies and the far eastern ten. The company has both military and civil yards.
The establishment of the new corporation was officially completed in accordance with plans on April 1, the government website informs.
Following a Presidential Decree of 30 March 2009, an additional four military yards will be included in the United Shipbuilding Corporation.
Company President Vladimir Pakhomov says the prime task of the shipbuilders will be a rapid and extensive modernization of production capacities, new technology and more efficient economic management, newspaper Korabelnaya Storona reports. The charter funds of the company is 117 billion RUB.
Carrefour To Open 3 Stores in '09
16 April 2009 Reuters
French hypermarket chain Carrefour plans to open its third Russian store this fall, the company said on Wednesday.
"Carrefour group considers Russia as one of the priority markets for company development," Carrefour said in a statement. "A hypermarket in Lipetsk will become the third store of Carrefour in Russia."
The 9,000-square-meter hypermarket will open doors for customers in the city of Lipetsk in the center of the European part of Russia, about 500 kilometers to the south of Moscow.
Carrefour, the world's second-biggest retailer after Wal-Mart, had previously announced plans to open a hypermarket in Moscow and another one in the southern city of Krasnodar, a prosperous region on Russia's Black Sea coast.
Real estate sources said last month that Carrefour's debut Moscow store will open up in May. Carrefour then said it would hire 450 staff for the store.
According to banking sources, the French chain is also considering buying Moscow's top grocery chain, Sedmoi Kontinent, which has dozens of stores throughout the city.
Global retailers, many of whom missed their chance to expand on Russia's once-buoyant market during the 10-year, oil-fuelled economic boom, are now taking steps to enter a sector that still has more growth potential than mature markets despite a downturn.
Russian Stocks Advance, Paced by Novolipetsk, Sberbank, VTB
By Bradley Cook
April 16 (Bloomberg) -- Russia’s Micex Index rose, erasing yesterday’s loss, led by OAO Novolipetsk Steel, OAO Sberbank and VTB Group.
The 30-stock Micex added 1.9 percent to 923.35 at 10:33 a.m. in Moscow. The ruble-denominated benchmark is heading for its eighth weekly gain in a row. The dollar-denominated RTS Index increased 0.8 percent at 812.09.
Novolipetsk climbed 3.2 percent to 56.36 rubles. Billionaire Vladimir Lisin’s steelmaker is scheduled to publish first-quarter production and sales data later today.
Sberbank, the country’s biggest bank, gained 3.1 percent to 28.90 rubles. Smaller Moscow-based rival VTB added 2.8 percent to 3.32 kopeks.
To contact the reporter on this story: Bradley Cook in Moscow at bcook7@.
Last Updated: April 16, 2009 02:48 EDT
Norilsk, Nutrinvestholding, Raspadskaya: Russian Equity Preview
By William Mauldin
April 16 (Bloomberg) -- The following companies may have unusual price changes in Russia trading. Stock symbols are in parentheses, and share prices are from the previous close.
The 30-stock Micex Index fell 1.4 percent to 906 at the close in Moscow, its second decline this week. The RTS Index slipped 0.2 percent to 805.85. The dollar-denominated Russian Depositary Index, a measure of global depositary receipts trading in London, declined 1.4 percent.
OAO GMK Norilsk Nickel (GMKN RX): Russia’s biggest mining company and its OAO OGK-3 power utility haven’t been fully carrying out the electricity investment obligations imposed by the government when it sold Russian power assets last year, Interfax reported, citing Energy Minister Sergei Shmatko.
Norilsk Nickel dropped 1.8 percent to 2,608.30 rubles. OGK- 3 sank 3.2 percent to 0.832 ruble.
OAO Nutrinvestholding (NTRI RX): The company that controls Russia’s largest baby-food maker, Nutritek Group, is set to default on $50 million of bonds, becoming the country’s second company to fail to meet foreign obligations this year. The company won’t redeem its 9 percent notes when they come due on April 17, head of investor relations Yury Kunashev said.
Nutrinvestholding climbed 5 percent to 94 rubles on the Micex Stock Exchange.
OAO Raspadskaya (RASP RX): Russia’s second-biggest coking coal producer plans to produce 2.5 million tons of coal in the current quarter, operating at 80 percent capacity, Chief Executive Officer Gennady Kozovoy said on a conference call with investors. A contract has been signed to ship 100,000 tons of coal to Japan this year, and talks on two more export accords are in final stages, he said.
Raspadskaya sank 1.3 percent to 46.58 rubles.
To contact the reporter on this story: William Mauldin in Moscow at wmauldin1@
Last Updated: April 15, 2009 22:00 EDT
Russia greenhouse gas emissions up 0.3 percent in 2007
Thu Apr 16, 2009 4:03am EDT
OSLO (Reuters) - Russia's greenhouse gas emissions rose by a tiny 0.3 percent in 2007 to the highest since the 1990s economic downturn caused by the break-up of the Soviet Union, according to data submitted to the United Nations.
Emissions edged up to 2.192 billion tons of carbon dioxide equivalent in 2007 from 2.185 billion in 2006, according to official figures filed to the U.N. Climate Change Secretariat in Bonn. The level was the highest since 1994.
Military towns polluted the Barents Sea for 45 million RUB
2009-04-15
The Federal Service for Environmental Control has demanded that the Ministry of Defence should pay a 45 billion RUB fine as compensation of damages to the environment after having released sewage into the Barents Sea.
After an inspection done in November 2008 the Federal Service for Environmental Control (Rosprirodnadzor) concludes that the federal state unitary enterprise Vodokanal, subordinate to the Ministry of Defence, at ten occasions released sewage from military towns on the Kola Peninsula into the Barents Sea.
Vodokanal is responsible for water supply and water disposal in the closed military towns Polyarny, Skalisty, Vidyayevo and Zaozersk.
Activity in the Oil and Gas sector (including regulatory)
Russia's Lukoil on the Hunt after Promising Saudi Gas Discovery
by Tahani Karrar
Dow Jones Newswires 4/15/2009
URL:
DUBAI (Dow Jones Newswires), Apr. 15, 2009
Russia's OAO Lukoil Holdings said Wednesday it is pressing ahead with plans to drill two more gas exploration wells in Saudi Arabia after a recent discovery in its concession in the kingdom's massive Empty Quarter desert.
Lukoil, which is operating in partnership with Saudi Arabian Oil Co., is presently drilling two wells, Abu Nasser and Faidah-2, in its contract area in the Empty Quarter, also known as Rub Al Khali, a Lukoil spokesperson told Zawya Dow Jones by phone.
The company has completed so far the drilling of seven out of nine exploration wells it committed to drill under a contract awarded by the Saudi oil ministry in 2004. Of the seven wells, two -- Mushaib-1 and Tukman -- were successful and five were dry, the spokesperson said.
"Two wells are being drilled now after the success of Mushaib-1 and Tukman," he said.
Saudi Arabia, holder of the world's largest oil reserves, also holds the world's fourth-largest proven gas reserves at 253 trillion cubic feet, according to the BP Statistical Review.
Gas demand in the kingdom has risen rapidly in recent years, driven by a petro-dollar-fired economic boom that has seen billions of dollars being spent on industrial and infrastructure projects. It is hoped that new exploration projects in the Empty Quarter and other areas will produce more gas reserves to help meet future demand.
Last week, Lukoil Chief Executive Vagit Alekperov said an estimated 70 million tons of condensate and 300 billion cubic meters of gas reserves under C1 and C2 classification had been discovered in the company's contract area. However, the spokesperson said it is still too early to quantify the amount of commercial gas available.
"It's difficult to say how much because the testing...is still being conducted and we didn't get final results," he said, adding that reserve figures had to be approved by Saudi Aramco before production can start.
"Estimation and appraisal may take two years from 2009 but if we signed the documents with Saudi Aramco earlier we will start earlier," the spokesperson added.
Uzbekistan: Lukoil To Slash Uzbek Gas Production At Gazprom’s Request
4/15/09
The privately-owned Russian energy firm, Lukoil, is to decrease gas production in Uzbekistan by up to 18 percent this year. The company says it was requested to do so by the Kremlin-controlled behemoth, Gazprom.
The move stands to significantly impact Uzbek state revenues, and experts believe the production cut seemed to catch Tashkent off guard. Gazprom is currently grappling with a severe gas glut.
Lukoil had planned to produce 2.7 billion cubic meters (bcm) of gas in Uzbekistan in 2009, 1.8 bcm of which was earmarked for export under a contract with Gazprom and Uzbekneftegaz, the Russian daily Kommersant reported April 15. "We see a reduction of around 400 million to 500 million cubic meters," the paper quoted Vagit Alekperov, Lukoil’s chief executive officer, as saying.
Alkeperov added he thought it was "fair" that his company would make reductions in line with Gazprom’s own fall in production. However, Dmitry Alexandrov, an analyst with Financial Bridge, told EurasiaNet he thought Gazprom’s demands were "strange."
"The gas business in Uzbekistan is very profitable for Lukoil. Gazprom [may want to] assert its stand in the region and show that they can influence other international investors conducting work in the region. It is a harsh move from Gazprom’s side because recently Uzbekistan’s friendly attitude was shown in offering another 30 billion cubic meters [of gas] to Gazprom."
"Definitely it is not good for Uzbekistan," Alexandrov continued. "It [the reduction] will lead to a decrease of profit in gas transportation, a decrease of investment in the sphere and a decrease of tax coming from this."
Gazprom has slashed gas production in recent months as it struggles to respond to a slump in demand from European customers. State-owned Uzbekneftegaz could not be reached for comment.
Slowdown signs - Lukoil could reduce gas output in Uzbekistan
Wednesday, 15 Apr 2009
Interfax reported that Lukoil could meet a request by OJSC Gazprom and reduce its gas production in Uzbekistan owing to dwindling demand.
Mr Vagit Alekperov president of Lukoil said "We see a reduction of around 400 million to 500 million cubic meters."
According to the report, Lukoil was earlier planning to produce 2.7 billion cubic meters of gas this year in Uzbekistan.
Uzbekistan, Lukoil and Gazprom have already signed an agreement to supply 1.8 billion cubic meters in gas this year. Mr Alekperov said that Gazprom was acting fairly when it asked independent gas producers to reduce their output in proportion to its own decrease.
It was earlier reported that Lukoil plans to produce over 12 billion cubic meters of gas a year in Uzbekistan. This rate could be achieved by 2011. In the autumn of 2007, Lukoil started producing gas in the country in the framework of the Kandym-Khauzak-Shady PSA. All gas exported from Uzbekistan goes through Gazprom's trunk pipeline system.
(Sourced from Interfax)
Aladdin Oil & Gas Confirms Gas Discovery in Russia
Wednesday, April 15, 2009
Aladdin Oil & Gas Company ASA has confirmed a gas discovery following perforation of the interval 570-575m in well #14A on Structure 14 on the Middle Sedolskoye-licence in Ukhta.
One interval in well #14A which was reported drilled to TD on 7th April this year has been perforated and resulted in a steady stream of gas to the surface over some time before the well was shut in for testing of shallower zones. Structure 14 is located approximately 20km southwest of Structure 1 and is a separate structure. This supports the assumption that there is a North-South running gas trend on the eastern part of the block.
This is in line with the company’s expectations. Further zones of interest in the well will be tested in the coming days. Thereafter a testing program will be conducted to determine if this is a commercial discovery.
Because of the spring thaw the company has decided to postpone testing of well #7A until later in the summer or winter, depending on accessibility.
"The drilling of a successful exploration well on a new structureand confirmed gas is exciting. Testing will determine if these are commercial volumes. The development of Structure 14 will be decided after the completion of a testing program," says General Manager Hans-Axel Jahren.
Salym Petroleum Development Reports Production Record in Western Siberia
Wednesday, April 15, 2009
Sibir today announces that the daily crude oil production at Salym fields exceeded 160,000 barrels, setting another new record. Salym fields are located in Western Siberia and are operated by Salym Petroleum Development NV (SPD), Sibir’s 50:50 joint venture with Shell.
The new SPD production rate takes Sibir’s 50% share at Salym to 80,000 bopd which, combined with production from its subsidiary Magma, brings Sibir’s total daily equity production rate to over 86,000 bopd.
Stuard Detmer, Sibir’s Acting CEO commented: “It has taken less than two years to double production at Sibir's core producing asset, the Salym fields. Reaching the 160,000 bopd milestone is a testament to SPD's continued dedication to becoming one of the best operating companies in Western Siberia.”
Russia's Surgut sees '09 output flat at 61 mln t
Wed Apr 15, 2009 7:49am EDT
MOSCOW, April 15 (Reuters) - Russia's No. 4 oil producer, Surgutneftegaz (SNGS.MM: Quote, Profile, Research, Stock Buzz), expects its oil output to steady at 61 million tonnes this year after a decline in 2008, its deputy chief executive said on Wednesday.
"This year the company plans to produce 61 million tonnes of oil. Investment in exploration will also be at last year's level," Vyacheslav Nikiforov told reporters.
The Energy Ministry reported Surgut produced 61.7 million tonnes of oil last year, 4.3 percent less than in 2007.
The company expects a boost to output from the recently launched Talakan field in eastern Siberia, where Surgut plans to produce around 2 million tonnes this year, rising to six million tonnes by 2015.
Surgut, whose main Russian refining asset is the 400,000 barrels per day Kirishi export refinery near the Baltic, recently closed a deal to buy 21 percent of Hungarian refiner MOL MOLB.BU. (Reporting by Vladimir Soldatkin; writing by Melissa Akin; Editing by Keiron Henderson)
West Siberian Resources posts 1Q09 trading update
Rencap
April 15, 2009
West Siberian Resources published a 1Q09 operating update yesterday (13 Apr). Crude production averaged 47.1kbpd, 7% better than our forecast, but still 5% below the average run-rate in 4Q08. Refining throughput was 5.2mn bbls, just 2% below forecast, and 4% above 4Q08 volumes. The company said the markets have stabilised (including oil product demand stabilising at a lower level) and expects 1Q results will be better than 4Q08.
Overall, we regard WSR's operating results as being in line with our expectations. 4Q08 was a very difficult period for Russian oil producers, as it was marked by a combined effect of a sharp oil price decline and lagging costs. We had expected 1Q09 to show an improved financial performance, and it is encouraging that WSR sees markets stabilising and its results improving. WSR is the first oil company in Russia to report 1Q09 operating statistics, we therefore believe investors will use this as the bellwether for the rest of the sector with a positive read-across, in our view. In particular, stable demand for oil products is a sign that the bottom may have been reached.
Gazprom
Gazprom Sets Up LNG Marketing, Shipping Unit, Lloyds List Says
By Dinakar Sethuraman
April 16 (Bloomberg) -- OAO Gazprom set up a unit to market liquefied natural gas and manage shipments of the fuel, Lloyds List reported, citing the company.
Gazprom has set up Gazprom Global LNG and the company may need as many as 20 vessels for its LNG venture in Shtokman in the Barents Sea, the trade daily said. The marketing unit has contracted two vessels for spot cargo deliveries, according to the report.
Gazprom and Shell Eastern Trading Ltd. will each buy about 1 million metric tons of LNG a year from Sakhalin Energy Investment Co., which operates the Sakhalin-2 project in Russia’s Far East, the Moscow based-company said in an e-mailed statement on April 8. The contracts will start this year and last through 2028.
To contact the reporter on this story: Dinakar Sethuraman in Singapore at dinakar@.
Last Updated: April 15, 2009 22:51 EDT
Gazprom to launch $2 bln Eurobond as early as this wk-sources
Wed Apr 15, 2009 11:44am EDT
LONDON, April 15 (Reuters) - Russian energy giant Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz) began investor meetings in London for a Eurobond worth at least $2 billion that will have a tenor of 10 years, sources said on Wednesday.
The deal, with a three-year put option, is expected to pay a 9.25-9.5 percent coupon and could be launched by the end of the week.
"There should be some flexibility to the pricing when the deal is launched," said a fund manager.
The deal is arranged by Credit Suisse.
(Reporting by Sebastian Tong; editing by Natsuko Waki)
Gazprom's reserves pushed to 217 bln boe
Alfa
April 15, 2009
Gazprom reportedly increased its reserves in 2008 by 10.6% to 217.3 bln boe (ABC1), including an 11.2% increase in gas to 33.1 tcm and a 5.9% increase in liquids reserves to 11.7 bln bbl. The main growth came from ten deposits received in 2008 in non-competitive tenders. This raises Gazprom's gas reserve ratio to over 60 years, from 54.3 for 2007 (and with production declining this year by some 10%, it will likely go up to some 64 years in 2009). Liquids reserves are a similarly large 68 years for 2008. However, neither increase is terribly material, as Gazprom's bottleneck to growth has never been a lack of resources to tap, but rather the ability to produce those resources efficiently as older fields go into decline.
Gazprom seek access to Sakhalin blocks
Offshore staff
MOSCOW, Russia -- Gazprom is pursuing further E&P opportunities in offshore blocks off eastern Russia.
During a recent forum on the country's energy requirements, Nail Gafarov, deputy head of Gazprom's Gas, Gas Condensate and Oil Production Department, said the company was preparing geological exploration programs for the Kamchatka Krai region and offshore Sakhalin Island.
He added that further to decisions made by the Russian Federation Government in Vladivostok last September, Gazprom had submitted applications to Rosnedra for the right to use subsurface resources. These related to the Kirinsky, Vostochno-Odoptinksy and Aiyashsky blocks of the Sakhalin III project, and the Zapadno-Kamchatsky area of the Okhotsk Sea, with the long-term aim of producing gas in these regions.
Viktor Timoshilov, Head of the Eastern Projects Coordination Directorate, said that integrated state support was necessary for development of the gas industry in eastern Russia. In particular, this should take the form of:
- Timely licensing of subsurface resources – mainly for the Sakhalin III and Zapadno-Kamchatsky area blocks
- Streamlining of taxes on eastern Russia's gas industry
- A regulatory framework for trunkline gas transport
- Gas market development stimulation measures.
In a separate meeting at the company's headquarters, representatives of Gazprom and ConocoPhillips discussed prospects for co-operation on projects, particularly in the LNG sector. Discussions focussed on Arctic areas, including potential exploration offshore Alaska.
04/15/2009
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