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Russia 110927Basic Political DevelopmentsRussia not holding talks on joint missile defense with Iran and China – Rogozin Rogozin plans to voice complaints at Russia-NATO session - Moscow's NATO envoy Dmitry Rogozin plans to make an announcement about talks between Russia and the alliance addressing European missile defense plans at a session of the Russia-NATO Council at the level of ambassadors on Wednesday.No progress in Russia-U.S. missile shield talks - deputy defense ministerRussia, US made no progress at talks on ABM-Antonov: Russia continues to explain its proposals, including to the “sectoral ABM system,” to its partners, including Romania and Turkey, but without much success so far, Antonov continued.Russian FM warns against external interference in Syria affairsSyria hopes to maintain good relations with Russian leadership: FM‘The world is not only European Union and United States’ – Syrian FM: “They are soldiers or they are with the state security. There have been military attacks on government installations and on military positions,” he told RT. “‘Lots of those killed are not civilians, they are people affiliated with the government.” ?UN hopes for Russia's assistance in Sudan, DRC peacekeeping. - UN Secretary-General Ban Ki-moon on the sidelines of the 66th session of the UN General Assembly held a meeting with Russian Foreign Minister Sergei Lavrov, the UN press service reported on Monday evening.Lavrov to raise wide range of intl issues in his UN GA speechUkraine sees Russian gas deal review in October (updated)Russia, Ukraine negotiating new gas dealUkraine says Russia ready to cut down prices for natural gas - "Russia on its part will reduce the prices for Ukraine in two spheres -- the budgetary and the social one," he said. "In October, the Ukrainian and Russian experts will draft the necessary documents and the two Presidents will fix the agreements legally when they meet in November."Clinton, Georgian minister discuss Russia’s joining WTO - “And as she did with Foreign Minister Lavrov last week, Secretary urged Foreign Minister Vashadze to make the most of the Swiss mediation proposal and to try to make progress to close the gaps when the delegations meet in the next week and a half,” the official said.U.S. to continue cooperating with Russia and its next elected president - The United States will continue cooperating with the Russian Federation, no matter who would win the next presidential election, U.S. White House Press Secretary Jay Carney said.6th RF-Singapore business forum is a success - viewCloser Russia-Asia coop as natural response to lower growth in developed states IMF says to carry on cooperating with Russia after Kudrin's resignationKudrin did not discuss resignation with Putin - press secretaryKudrin exit 'big blow' for Russian economy: pressKudrin's statement is just pretext for his resignation – speaker: "The reasons are certainly much deeper. I believe it would have happened sooner or later, because the interest of the country’s development require a more active and flexible financial policy.Possible candidates for Russia's finance minister positionTATYANA GOLIKOVA,? Health and Social Development Minister, formerly First Deputy Finance Minister.SERGEI IGNATYEV, head of the central bank, formerly First Deputy Finance Minister.MIKHAIL ZADORNOV, head of VTB-24 retail bank and former Finance Minister.SERGEI SHATALOV, Deputy Finance Minister in charge of taxesARKADY DVORKOVICH, Medvedev's key economic aide and one of his most influential advisers, has earlier in September called for a government reshuffle this year or no later than when a new government was formed after the March polls.SERGEI ALEKSASHENKO, director for macroeconomic research at the Higher School of Economics, formerly Deputy Finance Minister and first central bank chairmanRussian Pres to attend strategic war games in Southern Urals. Armenian MOD to participate in military exercises Centre-2011Valentin Vlasov: Russian party is satisfied with outcome of negotiations over jet fuel supply to Manas Transit Center Turkmenistan: Accused Central Bank Official Extradited to Russia - Aysoltan Niyazova, accused of embezzling $19.3 million from Turkmenistan's Central Bank, who has been on the lam for eight years, has finally been located in Switzerland and is being extradited to Russia, Russia's business daily Kommersant reports.Putin to chair regular meeting of VEB Supervisory BoardRF govt presidium to discuss agriculture issuesShlyakhturov is still director of Russian Main Intelligence Department – Makarov - "The age limit applies to all of us, and I cannot foretell anything. So far, no decisions have been made. It is up to the president to decide on such issues," he said.No decision to dismiss GRU chief Alexander Shlyakhturov - MakarovRussia suspends purchase of legendary Kalashnikov - .? The source in the ministry explained they do not want to order a gun which lays jammed in warehouses.Wildfire area in Siberia halves in past 24 hoursFirefighters battle 1,000 ha of forest fires in Russia's SiberiaMine collpase in YakutiaPatriarch Kirill expresses "respect, fraternal love" to Pope Benedict XVI Four Moscow gay organizations denied registration PRESS DIGEST - Russia - Sept 27vedomosti.ru Russia's economic policy could change with the resignation of Deputy Prime Minister and Finance Minister Alexei Kudrin, according to analysts. President Dmitry Medvedev has initiated anti-corruption legislation under which an official could be sacked on the basis of an administrative investigation into abuse of office. kommersant.ru It will be difficult to find a adequate replacement for Kudrin, as he was able to defend his independent position on key issues and played the role of a financial guarantor of the current political regime, the daily says. Russia's Rosneft and Italy's Eni are discussing ways to jointly develop oil fields in the Black sea, and Rosneft hopes Eni will help it gain access to Libya in exchange, the daily says. izvestia.ru Tatyana Nesterenko, in charge of budget policy at the Finance Ministry, could replace Kudrin, the daily says citing its sources close to the ministry. Russia's defence ministry has refused to purchase Kalashnikov AK-74s for the next year, saying munitions stores are overloaded with the guns. Russian military intelligence chief Alexander Shlaykhturov could resign for health reasons, the daily says, adding that he is known as an ally of the defence minister and has fired almost 1,000 officers as part of the military reform, the daily says. ng.ru Medvedev has demonstrated his unwillingness to look like a "lame duck" after making public his plans to leave office next year. The analysts are forecasting serious difficulties for him in implementing many of his initiatives, the daily says. Russian teachers plan to protest on October 5-7 over 30 percent pay rises promised by Prime Minister Vladimir Putin, which they say is very low. Even doubling the average provincial teacher's monthly salary of 7,000 roubles ($216) would be insufficient, the daily cites teachers' representatives. rg.ru Eight of the 11 Russian communications satellites in orbit need urgent replacement but Russia will be unable to launch new ones until 2013-2014, the daily says, citing a space official. rbcdaily.ru Prime Minister Vladimir Putin has sacrificed his Queen, the daily says in connection with Finance Minister Alexei Kudrin's ouster. It says further resignations could follow as tension in the teams of Putin and President Medvedev grows. mk.ru Medvedev is constantly demonstrating his tough character and shows that nobody has the right to argue with him, especially in public, the daily says. Medvedev's 'big mistake' - Polish MEP and member of the European Parliament's Foreign Affairs Committee Marek Siwiec says that Dimitri Medvedev's decision to recommend Vladimir Putin as the next president of Russia is the “biggest mistake of his career”. Skolkovo May Require Stronger Support With Putin As President - By Olga Razumovskaya A Tough Crowd - Critical Russian Media Scrambles to Analyze the Consequences of another 12 Years of Putin. By Dan Peleschuk Russia ProfileResident Alien - Xenophobic Attitudes in Russia Are Growing, but Are Unlikely to Lead to Large-Scale Ethnic Conflicts National Economic TrendsCentral banker gives reassurance about ruble Ruble Snaps 12-Day Losing Streak Versus Basket as Oil RalliesRussian Reserve Fund to reach RUB1.791 trillion, National Welfare Fund RUB2.604 trillion by year end Russia. Grain exports seen at 23mn tons in 2011-2012 Russia feels the pain as investors take flight - By Catherine Belton in MoscowRussian Banks and Greek Debt, Election Outlook - Andrey Kostin, chairman of VTB Group, talks about the impact of the sovereign-debt crisis in Europe on Russian banks and the dismissal of Finance Minister Alexei Kudrin by President Dmitry Medvedev. Kostin speaks with Pimm Fox on Bloomberg Television's "Taking Stock."Putin Faces ‘Unpopular’ Decisions to Overhaul Russia’s Oil-Reliant Economy - By Henry Meyer, Lyubov Pronina and Ilya ArkhipovBusiness, Energy or Environmental regulations or discussionsEvraz Group, Sberbank, TNK-BP Holding: Russian Equities PreviewUralkali, Belaruskali Up Potash Price For Brazil By $30 On Oct 1EuroChem to buy BASF fertilizer assets for €700 millionRF’s several companies plan listing at Singapore exchangeALROSA Revises Diamond Production for 2011The Coca-Cola Company and Coca-Coca Hellenic plan to invest $3bn in Russia in next five years Coke flags $3 billion Russian investment Aeroflot posts 1H 2011 net profit of $376.8 millionRussian firm to put up to $26 mln in Cleveland Bio - Rusnano will spend up to $26 million over four years to help fund a new company unit that will develop a portfolio of new preclinical drug candidates. Online Retailer Thrives in Russia’s Cash Society - Throw into the mix that some 80% of customers pay cash on delivery and the fact that Ozon had to build its own? delivery infrastructure, and you can see why she employs 1,100 people — two-thirds of whom work in fulfillment.The Bentley tax - Businesses are ready to pay for a comfortable business environment?Activity in the Oil and Gas sector (including regulatory)Oil export duty to be slashed 7% - Russia's export duty on crude oil will fall to $411.40 per ton on October 1, down from the current $444.10, according to a resolution signed by Prime Minister Vladimir Putin and published ernor calls for earliest possible commissioning of Sakhalin-3 projectRussian Sakhalin authorities mull second LNG plant by 2020 ENI, Rosneft In Talks On Black Sea, Libya Projects – ReportRosneft pledges annual oil production of some 1,300 mln bbl by 2020Rosneft tender at Malaya Purga results in price of 10,830-10,900 RUB/tJapanese investment in Russian E&P to continue to be crucial: METI official - Japanese investments in Russia's oil and gas sector will continue to play a crucial role in meeting Japan's energy demand as Tokyo is eyeing expanded cooperation with Russia, a Japanese government official said Monday.The future’s black - Many companies working in Russia’s vast oil industry will see a healthy slice of their tax burden disappear from the end of this week when a long-awaited reform kicks in aimed at boosting investment in new oil fields and averting a drop in production of the country’s most valued resource.Baltic Shipyard launching first pollution-free oil tankerTMK May Spend $3 Billion on Pipe Production in U.S., RussiaGazpromGazprom boosts 2011 borrowing and investment planGazprom to raise gas supplies to South Korea to 12 bcmKorea Gas Asks Russia to Take Responsibility for Fuel Supply Russia, China agree gas price formula but no final deal yetGazprom plans to sign contract with China in 2011Russia, China agree price formula for gas suppliesGazprom And CNPC Update Mutual Business Proposals On Gas Supply Terms And Conditions------------------------------------------------------------------------------------------Full Text ArticlesBasic Political DevelopmentsRussia not holding talks on joint missile defense with Iran and China – Rogozin 7:09AM GMTBRUSSELS. Sept 27 (Russian Military News) – Russia’s NATO ambassador and the Russian president’s special envoy for missile defense, Dmitry Rogozin, has denied…September 27, 2011 11:33Rogozin plans to voice complaints at Russia-NATO session. Sept 27 (Interfax) - Moscow's NATO envoy Dmitry Rogozin plans to make an announcement about talks between Russia and the alliance addressing European missile defense plans at a session of the Russia-NATO Council at the level of ambassadors on Wednesday.At the session "[NATO] Secretary General Anders Fogh Rasmussen plans to outline NATO's vision of the course of missile defense negotiations between Russia and the U.S., as well as between Russia and the alliance," Rogozin told Interfax."Consequently, I will also make an announcement. In particular, I will express certain complaints in relation to our partners that emerged during recent talks," he said."One needs to remember that this conversation will take place ahead of a meeting of the defense ministers of the alliance's member states in Brussels, as well as prior to a Russian-American meeting at the highest level between Presidents Dmitry Medvedev and Barack Obama, who are also expected to address the problem of missile defense in light of preparations for a possible Russia-NATO summit," the Russian diplomat said.Rogozin said that on the day of the Russia-NATO Council's session, he would also hold a series of meetings with his counterparts from different countries as a follow-up to his recent visits to several NATO member countries and meetings with these countries' political and military leadership.On Wednesday evening, Rogozin will leave for Lisbon, where he will hold consultations with Portugal's president, foreign minister and senior military officials on Thursday.tm(Our editorial staff can be reached at eng.editors@interfax.ru) No progress in Russia-U.S. missile shield talks - deputy defense minister 27/09/2011CHEBARKUL (Chelyabinsk Region), September 27 (RIA Novosti)No progress has been made in Russia - U.S. talks on the projected deployment of a U.S. missile defense system in Europe, Russian Deputy Defense Minister Anatoly Antonov said on Tuesday."No breakthrough decisions have been made. Our U.S. partners continue implementing their plans to create the European segment of the U.S. missile defense system," Antonov said.Antonov claimed the idea that a"NATO missile defense shield" was being constructed is wrong. "This is nonsense. In fact, the Americans are implementing their own plans in Europe. And unfortunately, these plans are being implemented with a pace that strongly exceeds the discussions between Russia, NATO and the United States."Russia is ready for compromises, but within reason, he said. "I can't say that the 'missile defense reset' has reached deadlock. I believe that our NATO and U.S. partners understand, that obstinacy won't yield anything," Antonov added.Russia has maintained a strong opposition to deployment of missile-defense systems near its borders, claiming they would be a threat to the validity of its own nuclear deterrent.NATO says it needs the shield, which will be eventually deployed in the Mediterranean, Poland, Romania and Turkey, to counter the potential threat of missile attacks from the Middle East, particularly Iran.Russia and NATO agreed to cooperate on the so-called European missile shield during the NATO-Russia Council summit in Lisbon in November 2010. NATO insists there should be two independent systems that exchange information, while Russia favors a joint system with full-scale interoperability.10:53?27/09/2011ALL NEWSRussia, US made no progress at talks on ABM-Antonov (Chelyabinsk Region), September 27 (Itar-Tass) — No progress has been achieved at the Russian-American talks on ABM. Americans continue to put their plans into effect at a high pace, Russian Deputy Defence Minister Anatoly Antonov has said.“No breakthrough decisions have been made. Our American partners continue to implement their plans on the creation of the European segment of the American ABM system,” he told journalists here on Tuesday.In his opinion, it is wrong to believe that “the NATO ABM system” is being created in Europe. “This is nonsense. In fact, Americans are implementing their plans in Europe. Unfortunately, the implementation of those plans goes on far more quickly, than the dialogue, maintained by Russia with the United States and NATO in that sphere,” Antonov said.According to Antonov, Russia is ready for compromises, but within reasonable limits. “There is a certain ‘red line’ on what is connected with our defences, and in that sphere no compromises are possible,” he added. According to his information, the Defence Ministry is already considering “the whole range of military-technical measures” in case of a “threat emerging close to the Russian border.”Russia continues to explain its proposals, including to the “sectoral ABM system,” to its partners, including Romania and Turkey, but without much success so far, Antonov continued.“I would not say that ‘reset on ABM’ is in the deadlock. I think our U.S. and NATO partners realise that stubbornness on that problem will lead us nowhere. Decisions should be made, and a way out should be looked for. We outline our problems in a clear and transparent way, we explain why the implementation of the U.S. plans evokes our concern and we suggest ways of resolving the problem. They smile to us and go on with the implementation of their plans,” he stressed in conclusion.RT News line, September 27Russian FM warns against external interference in Syria affairs Foreign Minister Sergey Lavrov has reiterated Moscow’s position on Syria, saying that interference from the outside in the county’s affairs is impermissible. The Russian Foreign Ministry on Tuesday commented on Lavrov’s meeting with his Syrian counterpart Walid Muallem within the framework of the UN General Assembly session. Lavrov stressed the need to stop violence in Syria and start a broad nationwide dialogue with the participation of the opposition. Moscow earlier urged the Syrian leadership to implement political, social and economic reforms.00:15?27/09/2011ALL NEWSSyria hopes to maintain good relations with Russian leadership: FM NATIONS, September 27 (Itar-Tass) — Syria hopes to maintain good relations with the Russian leadership, Syrian Foreign Minister Walid Muallem said on Monday.“We will continue maintaining relations with (Foreign Minister Sergei) Lavrov and the Russian leadership,” the foreign minister told Russian reporters. “And we will hope to strengthen relations with Russia,” he added.“We expect support from the countries that are on our side,” the Syrian foreign minister noted. “The world is not only the European Union and the United States,” he said.“We are strengthening relations with those countries that are well disposed towards us and we move at an intensive rate towards implementing a reform. Russia’s position is strong and induces us to act,” he pledged.‘The world is not only European Union and United States’ – Syrian FM: 27 September, 2011, 02:49Edited: 27 September, 2011, 02:49 Russia's foreign minister has met his Syrian counterpart to assess the Damascus crisis. Following the meeting, the Syrian foreign minister said the Russian position provides an incentive to Syria to introduce reforms.“We move at an intensive rate towards implementing reform. Russia's position is strong and induces us to act,"? Syrian foreign minister Walid Muallem said on Monday. “We expect support from the countries that are on our side. The world is not only the European Union and the United States. "Dr Ibrahim Alloush from Jordan University believes that Damascus has already proved that it is very serious about instigating reforms. It has already initiated a series of acts and regulations regarding the media, the multi-party system, and has abolished martial law, the state security court and many other things. “The opposition unfortunately has been refusing to sit down and hold dialogue with the regime. So the problem here is not the Syrian leadership but the opposition which is being encouraged by interference from abroad, whether by the Gulf Cooperation Council or the NATO via Turkey, especially, and other groups working underground in Syria using arms,” he explained.Dr Alloush says the Syrian regime, on the other hand, has been seriously attempting to instigate dialogue.??? ?The UN believes more than 2700 people have died since violence began in the country seven months ago. But Dr Alloush is convinced that the victims are mostly people who have been working for the regime.“They are soldiers or they are with the state security. There have been military attacks on government installations and on military positions,” he told RT. “‘Lots of those killed are not civilians, they are people affiliated with the government.” ?The UN, US and the EU are pushing for President al-Assad to go. Russia is warning against the dangers of a Libyan scenario happening in Syria. But Dr Ibrahim Alloush believes the military intervention into Damascus has already started. “For several months now we have been witnessing ambushes, attacks, and we have been witnessing assassinations in Syria practised by so-called peaceful demonstrators,” said Alloush . “Syrian TV has been showing truckloads of arms being smuggled into Syria. Lots of money was being funneled into those groups undertaking military actions against the Syrian government. I do not know what you define as military intervention, but if you have an armed mutiny that is being financed and supported from abroad, I do not think you can call it a peaceful uprising,” he concluded.08:37?27/09/2011ALL NEWSUN hopes for Russia's assistance in Sudan, DRC peacekeeping. NATIONS, September 27 (Itar-Tass) — UN Secretary-General Ban Ki-moon on the sidelines of the 66th session of the UN General Assembly held a meeting with Russian Foreign Minister Sergei Lavrov, the UN press service reported on Monday evening.They discussed a wide range of issues, including the situation in Libya, Syria, Iraq and Afghanistan, according to the news release received by Itar-Tass. They also exchanged views on the Middle East peace process, negotiations on the Cyprus settlement and the six-party talks on North Korea’s nuclear issue.The Secretary-General also addressed the situation in Sudan and the Democratic Republic of Congo (DRC), as well as what the UN needs properly perform its obligations there to maintain peace, the press service said. In this regard, he expressed the hope for assistance from Russia.According to the press service of the UN General Assembly, Lavrov will speak on Tuesday morning during the general political debate of the 66th session of the UN GA. The Russian foreign minister is going to raise in his speech a wide range of international issues.The Russian delegation told Itar-Tass that the RF foreign minister intends to touch upon regional conflicts, issues of disarmament and non-proliferation, problems of overcoming the consequences of the financial crisis, the need for strict observance of human rights primarily in the context of the UN Charter, as well as responding to global challenges the international community is facing.08:06?27/09/2011ALL NEWSLavrov to raise wide range of intl issues in his UN GA speech NATIONS, September 27 (Itar-Tass) — Russian Foreign Minister Sergei Lavrov in his speech during the general political debate of the 66th session of the UN General Assembly intends to raise a wide range of international issues.The Russian delegation told Itar-Tass that the RF foreign minister intends to touch upon regional conflicts, issues of disarmament and non-proliferation, problems of overcoming the consequences of the financial crisis, the need for strict observance of human rights primarily in the context of the UN Charter, as well as responding to global challenges the international community is facing.The press service of the UN General Assembly stressed that the Russian minister’s speech is scheduled for Tuesday morning, September 27. Sergei Lavrov is the seventh in the list of speakers. The debate will begin at 09:00, local time (17:00 MSK).On September 26, Lavrov held talks with UN Secretary-General Ban Ki-moon. According to the UN, the RF foreign minister and the UN head discussed United Nations peacekeeping and ongoing conflicts and tensions in the Middle East.The two officials, meeting on the margins of the General Assembly’s annual general debate, discussed the situation in Sudan and the Democratic Republic of the Congo (DRC), where the UN has substantial peacekeeping missions in operation. Mr. Ban and Mr. Lavrov discussed the scope of the UN’s needs so that it can fully discharge its peacekeeping responsibilities in those countries, and the possibility of Russian assistance to achieve that end, according to information released by a spokesperson for the Secretary-General. The discussion also touched upon the situations in Libya, Syria, Iraq, Afghanistan, the Middle East peace process, the talks to reunify Cyprus and the so-called Six Party talks on the Korean Peninsula. The meeting with Mr. Lavrov was one of a series of bilateral discussions Mr. Ban held with top world officials gathered for the Assembly’s general debate.Ukraine sees Russian gas deal review in October (updated)Today at 11:25 | Reuters Ukraine plans to complete the revision of its gas contract with Russia next month, Interfax news agency quoted Ukrainian Prime Minister Mykola Azarov as saying on Tuesday. "We aim to complete this work in October," Azarov said.Azarov also said, that Kyiv hopes that new prices for Russian natural gas exports will come into force in 2012."We should enter 2012 with certainty regarding an extremely important indicator such as gas prices, as well as terms for gas deliveries and gas transit," the Ukrainian premier said.Talking about the negotiations with Russia, Azarov noted a constructive approach of Moscow."I am very pleased with the constructive approach of the Russian side, I would like to keep the same pace," Azarov said."We are speaking about a comprehensive approach to developing all the components of our interactions on the delivery and transit of gas," the prime minister said.According to him, it is very important for Kyiv to complete the gas talks this year, since Ukraine is forming the state budget for next year.Ukraine has been pressing Russia for months to revise a 2009 gas deal, agreed under the previous Ukrainian leadership, which President Viktor Yanukovych's government says saddled the country with an exorbitant price for supplies of Russian gas.Read more: News line, September 27Russia, Ukraine negotiating new gas deal’s gas giant Gazprom is negotiating the terms for possible new contracts with Kiev on exports of gas to Ukraine and on the transit of Russian gas through its territory, the company has said. Some Ukrainian officials said earlier that terms had already been agreed. Ukrainian Prime Minister Nikolay Azarov said on Tuesday Kiev is hoping to finish reconsidering its gas contracts with Russia before the end of October. New prices for Russian natural gas exports should come into force in 2012, he noted. The talks are underway following a meeting between Russian and Ukrainian leaders over the weekend.02:44?27/09/2011Top NewsUkraine says Russia ready to cut down prices for natural gas , September 27 (Itar-Tass) — Saturday, September 24 Ukraine and Russia reached agreement on cutting down the price of Russian natural gas and on a downward revision of the costs of its transits to European countries via the Ukrainian territory, Prime Minister Nikolai Azarov said here Monday in the footsteps of a summit meeting that the Ukrainian President, Viktor Yanukovich, and the Russian President, Dmitry Medvedev, had last Saturday during Yanukovich's visit to Russia."The two sides reached agreement on Ukraine's reduction of the transit fee to the level of prime costs," the Zerkalo Nedeli publication quoted Azarov as saying this at a cabinet meeting."Russia on its part will reduce the prices for Ukraine in two spheres -- the budgetary and the social one," he said. "In October, the Ukrainian and Russian experts will draft the necessary documents and the two Presidents will fix the agreements legally when they meet in November."The Ukrainian President's press office said upon the results of Yanukovich's visit to Russia last Saturday that "considerable progress" had been made at the talks with the Russian side on the supplies of gas to this country and on the Europe-bound transits."This gives grounds for a hope that the two countries will achieve concrete results meeting the interest of either country shortly," the press office said in a report.Earlier Monday, the Ukrainian Prime Minister's Press Secretary, Vitaly Lukyanenko said this country's governemnt had gotten down to practical steps under the agreement.In the meantime, the CEO of the Russian gas industry giant Gazprom, Alexei Miller, said Monday it is too early to speak about any specific parameters of the agreements yet."It's true there's some progress but one can hardly speak about any concrete figures at the moment," he said. "Much rather, one can speak about a joint visioning of approaches to resolution of problems in the gas industry.""We came to agreement with our Ukrainian counterparts that the next working meeting should be held before the end of this week," Miller said.05:36?27/09/2011ALL NEWSClinton, Georgian minister discuss Russia’s joining WTO, September 27 (Itar-Tass) — U.S. Secretary of State Hillary Clinton and Georgia’s Foreign Minister Grigol Vashadze held talks on the sidelines of the 66th UN General Assembly Session here Monday, an official at the U.S. Department of State said.“The Secretary […] saw Georgian Foreign Minister Vashadze this morning for about 25 minutes,” a report placed at the Department of State’s official website quoted him as saying.“The bulk of that meeting was spent discussing the Swiss effort to mediate between Russia and Georgia with regard to issues outstanding in Russia’s application to join the World Trade Organization,” the official said.“And as she did with Foreign Minister Lavrov last week, Secretary urged Foreign Minister Vashadze to make the most of the Swiss mediation proposal and to try to make progress to close the gaps when the delegations meet in the next week and a half,” the official said.“They also discussed Afghanistan, where Georgia is on its way to becoming the largest non-NATO troop contributor,” he went on. “The Secretary thanked Foreign Minister Vashadze and Georgia for the recent commitment of an extra battalion of Georgian troops for Afghanistan, which will bring the Georgian total to 1,700.”“They also talked at some length about medical care and support that the U.S. is providing for Georgian soldiers wounded in combat in Afghanistan and U.S. military support for Georgian forces in Afghanistan.”“And the final issue in that meeting was the Secretary’s stressing of the importance, as Georgia enters an election season in 2012 and 2013, of free, fair, and transparent elections in Georgia,” the official said.He indicated that “both Georgian Foreign Minister Vashadze and National Security Advisor Bokeria stressed that Georgia intends to make a qualitative leap forward in the quality of its elections” and the thank the U.S. for the help it provides through IRI and NDI “to continue to improve Georgian election process.”Russia and Georgia resumed talks on Russia’s joining the WTO in March. The negotiations are held in Berne, with Switzerland acting as a mediator.The most recent meeting between the Russian and Georgian delegations was held in Geneva September 12.U.S. to continue cooperating with Russia and its next elected president 27/09/2011WASHINGTON, September 27 (RIA Novosti)The United States will continue cooperating with the Russian Federation, no matter who would win the next presidential election, U.S. White House Press Secretary Jay Carney said.Last Saturday Russian President Dmitry Medvedev proposed Prime Minister Vladimir Putin to run for president in next year's election, ending months of speculation over which man would run for the post."The fact is that the President has pursued a reset in our relations with Russia with not a particular leader but the government of Russia. And the progress that we've made, which has been well recognized, has come with the entire Russian leadership. That includes President Medvedev and Prime Minister Putin," Carney told journalists on late Monday."So we will continue to pursue our relations with Russia in a way that advance American interests and we believe improve our ties and are beneficial in ways - beneficial for the American people and the Russian people," he added.Carney's words echoed the position earlier voiced by Mark Toner, a U.S. State Department deputy spokesperson, who said that "regardless of who wins the next election [in Russia], our [U.S.] priorities remain the same."11:26?27/09/2011ALL NEWS6th RF-Singapore business forum is a success - view, September 27 (Itar-Tass) —— The 6th Russia-Singapore business forum was a success, it was very interesting, Troika Dialog’s Managing Director Anton Rakhmanov told Itar-Tass in an exclusive interview on Tuesday.“The forum discussed first of all macroeconomic, current situation in global economies, and especially in emerging economies,” he said. “We discussed how to obtain insurance from declining growth in developed countries, which we witness; and the answer is to increase as much as possible foreign trade and existence of mutual integration between Russia and Asian countries.”“This is why deeper cooperation between Russia and Asia is only natural, because under the growth in Asia, which we witness now, demands highly natural resources,” he continued. “Russia is ready to supply these resources.”“This year’s forum featured over 400 businesses and officials, and in the very beginning of the forum’s history six years ago its audience made 40 people only,” Rakhmanov said. “The forum is attracting more and more attention.”Traditionally, the forum features high-ranking officials from Russia and Singapore, business elites of the both countries as well of the CIS and Asia. This year’s event featured Sberbank’s CEO German Gref, Troika Dialog’s CEO Ruben Vardanyan, Head of the Republic of Tatarstan Rustam Minnikhanov and Singapore’s founding father Lee Kuan Yew.11:12?27/09/2011ALL NEWSCloser Russia-Asia coop as natural response to lower growth in developed states , September 27 (Itar-Tass) — A “natural response” to lowering of growth rates in the developed countries is “bigger trade and closer integration” between Russia and Asian countries, a Russian top business executive told Itar-Tass on Tuesday.“In this context, closer cooperation between Russia and Asian countries looks absolutely natural,” said Anton Rakhmanov, the managing director of Troika Dialog managing company. “If the current growth rates are preserved in Asia, it will badly need raw resources, and Russia is ready to supply it with such resources.”Rakhmanov in taking part in the 6th Russian-Singaporean business forum, which ends here on Tuesday.IMF says to carry on cooperating with Russia after Kudrin's resignation 27/09/2011WASHINGTON, September 27 (RIA Novosti)The International Monetary Fund (IMF) said it would follow its commitments with Russian authorities despite Moscow's decision to sack its finance leader Alexei Kudrin.The IMF said in a statement said that it has strong relations with Russia and intends to carry on with them in the future.Alexei Kudrin resigned on Monday as Russia's finance minister and deputy prime minister after a dispute with President Dmitry Medvedev.Kudrin, 50, served as finance minister since 2000. During this time the Russian government paid off most of its substantial foreign debt and created oil wealth funds to soften the blow of the global slump.RT News line, September 27Kudrin did not discuss resignation with Putin - press secretary Finance Minister Aleksey Kudrin did not discuss his possible resignation with Prime Minister Vladimir Putin on Sunday, the premier’s press secretary Dmitry Peskov has said. He denied reports in the media that such discussions had taken place after Kudrin said in Washington he would not work in a? government headed by Dmitry Medvedev. The Russian president on Monday strongly criticized Kudrin and later in the day accepted his resignation. The Right Cause party’s acting head, Andrey Dunaev, did not rule out the possibility of Kudrin becoming the party’s leader, but said speculation on the issue was premature.Kudrin exit 'big blow' for Russian economy: press(AFP) – 1 hour ago? MOSCOW — The ousting of finance minister Alexei Kudrin, a figure trusted by Western investors during over a decade in the job, is a huge blow to Russia's economy at a critical time, the press said Tuesday.Kudrin was forced out late on Monday in a public confrontation with President Dmitry Medvedev after he became the highest-profile official to break ranks with the plan for Medvedev to swap jobs with current prime minister Vladimir Putin in 2012.Newspapers said it was Kudrin who Putin had to thank for extinguishing the huge external debt that he inherited from the chaotic 1990s and saving the economy in the 2008 crisis with the help of reserve funds built up from oil revenues."The most professional minister in the Russian government, whose successes were acknowledged on an international level, has resigned," the daily Vedomosti said."Kudrin's resignation will be a big blow for the Russian economy -- experts are already forecasting a new wave of capital flight, a fall in the ruble rate and inflation growth."It is hard to imagine who else possesses such an array of qualities -- an understanding of the economic processes, loyalty to his principles and relations of confidence with Putin."Leading journalist Konstantin Eggert said in a commentary on Kommersant FM that "rightly or wrongly, the now ex-finance minister Kudrin was perhaps the main guarantee for foreign companies that you can invest money in Russia.""He was like a translator from the language of the Russian authorities to the universally-understood language of global capitalism."The Moskovsky Komsomolets daily expressed astonishment at the "sensation" but said that there had already been "legends" circulating about Medvedev's increasingly abrasive behaviour."His management style is characterised by a tough approach to subordinates of any rank ... and he is always making clear that no-one has the right to argue with him."Even mass-circulation daily Komsomolskaya Pravda, a loyal Kremlin follower, acknowledged the magnitude of the move. "The president made his 'irreplaceable' finance minister resign," it said.A successor has yet to be named but Vedomosti said a possible figure is Health Minister Tatyana Golikova although there are also candidates from within the finance ministry.Kudrin, who many believed wanted to be prime minister himself, had announced at the weekend he had no intention of serving in a government led by Medvedev due to major differences on economic policy.But Russian newspapers said it was clear his ousting was agreed in advance with Putin. "For Putin, insubordination is a crime which outweighs all other merits," said Vedomosti.Copyright ? 2011 AFP. All rights reserved. More ?11:43?27/09/2011Top NewsKudrin's statement is just pretext for his resignation - speaker, September 27 (Itar-Tass) — Speaker of the State Duma lower house of the Russian parliament Boris Gryzlov said the statements by (former Finance Minister) Alexei Kudrin were just a pretext for his resignation."His statements were the pretext for the resignation of Alexei Kudrin, which were simply incompatible with the post of finance minister, especially on the eve of submitting a budget to the State Duma," Gryzlov told reporters on Tuesday."The reasons are certainly much deeper. I believe it would have happened sooner or later, because the interest of the country’s development require a more active and flexible financial policy."The administration of the Finance Ministry failed to create conditions for timely and regular disbursement of budget funds. Starting a financial year late became routine," Gryzlov said.On September 26, Russian President Dmitry Medvedev signed a decree relieving Kudrin of his duties, after the latter stated that he had disagreements with the head of state.Possible candidates for Russia's finance minister position 27/09/2011MOSCOW, September 27 (RIA Novosti) -President Dmitry Medvedev fired Finance Minister Alexei Kudrin on Monday for his comments that he did not want to work in a future government headed by Medvedev after March presidential elections.Among the possible candidates to replace Kudrin are:TATYANA GOLIKOVA,? Health and Social Development Minister, formerly First Deputy Finance Minister.Golikova, 45, has been working in the Finance Ministry since 1990 and in her later years there was responsible for the budget. She became Health and Social Development Minister in 2007 and started to reform welfare and medical systems, causing a barrage of criticism from medical professionals.However, she always enjoyed government support.SERGEI IGNATYEV, head of the central bank, formerly First Deputy Finance Minister.Ignatyev, 63, had been working intermittently at the Finance Ministry since 1992. He is one of post-Soviet reformers who came to power together with Yegor Gaidar, the architect of Russia's initial post-Soviet era reforms, after the collapse of the Soviet Union.In 2002, he became head of the central bank which has recently been strongly criticized for its failures in banking supervision after the collapse of International Industrial Bank, one of Russia's largest banks, in 2010 and severe problems discovered this year in the country's fifth largest bank, Bank of Moscow.MIKHAIL ZADORNOV, head of VTB-24 retail bank and former Finance Minister.Zadornov, 48, was one of the team of Grigory Yavlinsky who set up liberal Yabloko party. Zadornov was a State Duma lower house deputy in 1994-1997 and headed the budget and finance committee there. In 1997 he became? finance minister and was virtually the only government official who kept his post after the 1998 economic crisis.In 2000-2005, he returned to parliament after which he became head of the retail arm of state-run VTB bank.SERGEI SHATALOV, Deputy Finance Minister in charge of taxesShatalov, 61, has been working in the Finance Ministry since 1995. He is the author of the country's tax reform, which in 1998 was voted down by the then communist-dominated Duma. Shatalov then resigned from the ministry and joined one of the then Big Six auditing companies. He returned to the Finance Ministry in 2000, when parliament became less recalcitrant and implemented his tax reform plan.ARKADY DVORKOVICH, Medvedev's key economic aide and one of his most influential advisers, has earlier in September called for a government reshuffle this year or no later than when a new government was formed after the March polls.Dvorkovich, 39, who was educated in Moscow and the U. S., has said he was strongly opposed to a proposal to raise taxes by Kudrin, a close ally to Prime Minister Vladimir Putin, because it would hurt business and economic activity. After Kudrin's resignation, Dvorkovich cited Kudrin as one of his teachers.Dvorkovich used to work with the Economic Expert Group at the end of the 1990s helping the Finance Ministry with macroeconomic research. In 2001-2004, he was Deputy Economic Development and Trade Minister. In 2004-2008, Dvorkovich headed the expert department of the presidential administration and became Medvedev's aide after his election four years ago.SERGEI ALEKSASHENKO, director for macroeconomic research at the Higher School of Economics, formerly Deputy Finance Minister and first central bank chairmanAleksashenko, a 52-year old liberal, was Deputy Finance Minister in 1993-1995 and first deputy central bank chairman in 1995-1998. He quit the central bank after the 1998 economic crisis to do some scientific work and head Russian and foreign companies. He is an ardent critic of Russia's economic and political authorities.08:06?27/09/2011ALL NEWSRussian Pres to attend strategic war games in Southern Urals. , September 27 (Itar-Tass) — Russian President Dmitry Medvedev, who arrived in the Chelyabinsk region in Southern Urals as part of a working trip Monday, is expected to attend a demonstration of practical skills of combat forces as part of the Center’2011 strategic war games on the Chebarkul drill ground.Also, he is due to hand state awards to the military participating in the maneuvers.After the demonstration of combat practices, Medvedev will have a meeting with commanding officers of the Armed Forces, the Interior Ministry and the Federal Service for Control over the Circulation of Narcotic Drugs and Psychotropic Substances who took part in the exercise.The Center’2011 exercise started out September 19 simultaneously in six regions of Russia, Kazakhstan, Kyrgyzstan, and Tajikistan.General Nikolai Makarov, the Chief of the Russian Armed Forces General Staff who did the overall coordination of the maneuvers, said earlier that the military of the four former Soviet republics had scrutinized all the armed conflicts of the past twenty to fifteen years and had drawn up a plan for these war games on the basis of that analysis.“The exercise pursues a broad enough scope of objectives linked to the operations of a multi-branch grouping of troops in the Central Asian zone,” Gen Makarov said.He noted the patchiness of the geographic areas where the Armed Forces of the participating countries – the units having the size of up to a brigade – were acting this time.“We’re taking account of internal and external threats likewise and we’re also considering the possible scenarios, under which instability in Central Asia will surge after the departure of U.S. forces from Afghanistan,” Gen Makarov said.“All the activities proceed from the principle of a joint performance of tasks by the rapid deployment forces and Collective Rapid Reaction Forces of the CIS,” he said.The agencies of military command and control of the four nations are taking part in the war games this time. All in all, the troops engaged in the maneuvers have the strength of over 12, 000 and have more than 3,000 vehicles and units of equipment assigned to them.According to a schedule, the war games will wind up later Tuesday.Armenian MOD to participate in military exercises Centre-2011 26, 2011 | 18:22 MOSCOW. – Armenian Minister of Defense Seyran Ohanyan left for Russia on Monday to participate in the final stage of military exercises Centre-2011, held within the CSTO frameworks in Chebarkul.Armenia participates in the exercises as an observer.Strategic exercises Centre-2011 were launched on September 19 in the range of the Central military district in Chekabul. Military units of special purpose of Russian MIA internal forces from Nizhny Tagil, Chelyabinsk and Kazan participate in the exercises. Valentin Vlasov: Russian party is satisfied with outcome of negotiations over jet fuel supply to Manas Transit Center 27/09-2011 10:14, Bishkek – 24.kg news agency , by Julia MAZYKINA Russian party is satisfied with outcome of negotiations over jet fuel supply by Gazpromneft-Aero Kyrgyzstan ltd. to Manas Transit Center. The Russian Ambassador to KRG Valentin Vlasov told a news conference today. “Presentation of the project came about and we, as representatives of the U.S. and KRG, are also satisfied. A little time remains prior to jet fuel supply. An official decision confirms that the process was hard and lasted for a long time; it based on the fact that the whole fuel supply process in the Transit Center should be clear and understandable,” noted the Ambassador. URL: : Accused Central Bank Official Extradited to Russia 26, 2011 - 1:50pm, by Catherine A. Fitzpatrick Aysoltan Niyazova, accused of embezzling $19.3 million from Turkmenistan's Central Bank, who has been on the lam for eight years, has finally been located in Switzerland and is being extradited to Russia, Russia's business daily Kommersant reports.(Niyazov is a common name and it is not known if she is a relative of past dictator Saparmurat Niyazov.)Last year, when Turkmenistan joined the Financial Action Task Force (FATF), it was upgraded from the "blacklist" and put on the "improving" list for passing laws and starting to investigate and prosecute some of the rampant corruption and mismanagement in its opaque banking system. Then an arrest was finally made in the Central Banking case which dates back to 2002. Saveliy Burshtein, a Russian citizen, was accused of siphoning $19.3 from the Central Bank of Turkmenistan and sentenced to six years of prison. But a co-defendant tried in absentia, Aysoltan Niyazova, 38, a director of Moscow's Index-Bank was able to escape abroad, and remained at large for some eight years.In January of this year, Niyazova, who holds dual Turkmen and Russian citizenship was eventually found by the Swiss police through Interpol. It then took months to arrange the extradition with Russia but now Niyazova is finally being returned to face imprisonment.As with other, similar cases, such as the rapid arrest and conviction of Central Bank employees this summer amid charges of bribe payments to Turkish construction firms, it is hard to know who is really guilty of what in this case involving at least five persons crossing international borders. Back in 2002, German intelligence found that a Turkmen Central Bank employee, Arslan Kakaev, an officer of the international payments department, had removed $41 million from his bank in Turkmenistan and transferred it to Deutsche Bank and then to other banks -- about $20 million was sent to Latvia's Parex Bank; and another $20 million to the Russian Deposit Bank to an account opened by a Vietnamese citizen. Dmitry Leus, a bank board member, took $700,000 in a fee for this arrangement, and then sent the $19.3 million to Index-Bank, according to Kommersant's information. Kakaev was subsequently killed in St. Petersburg in 2003.That's when Niyazova and Burshtein were said to pick up the $19.3 million. According to prosecutors, a lot of the cash then disappeared in Czech Republic into the hotel business -- an industry where money is often laundered. Another defendant in this case, Murad Garabaev, a former Turkmen Central Bank employee, was acquitted. His lawyer, Anna Stavitskaya, said she was surprised that Niyazova was extradited to Russia, and continues to claim that there is no proof that the $20 million came in fact from Turkmenistan or that it was even an illegal transfer -- no evidence was supplied to the court."It turns out that for the 6 weeks during which all this money was being taken out of the Central Bank of Turkmenistan, all the officers of this financial establishment were in a coma. But I think that what's more likely is that the transfer was fully authorized by the bank leadership," Stavitskaya told Kommersant. That would imply that subordinates are now taking the hit for higher-ups, but how high? Back then, Imamdurdy Gandymov, chairman of the Central Bank, was dismissed. Global Witness, an anti-corruption NGO, issued a report at the time calling on Deutsche Bank to investigate the large sums said to be transferred to Germany from state accounts by President Niyazov.No more can be gleaned from the only partly-free media of Russia and the state press of Turkmenistan which hasn't covered the story. Meanwhile, watch out for emails claiming to be from the relatives of any of these figures, promising to cut you in on the stash, if you would only send them your bank account and social security numbers.10:00?27/09/2011ALL NEWSPutin to chair regular meeting of VEB Supervisory Board, September 27 (Itar-Tass) — Russian Prime Minister Vladimir Putin on Tuesday will chair a regular meeting of the Supervisory Board of Vnesheconombank (VEB). The Board will consider a draft Strategy for the Development of VEB for 2011-2015, which will replace the existing Vnesheconombank Strategy for 2008-2011, the press service of the Russian government reported.As a result of implementing its new development strategy the VEB will significantly enhance its role in funding programs and projects to modernise the country’s economy. In particular, the share of innovative projects in the bank’s loan portfolio volume should grow to 20 percent, which in monetary terms could reach 170 billion roubles.For the period of 2011-2015 the high-priority investment projects financed by the Development Bank will include: projects aimed at renovation and modernisation of existing Russian enterprises manufacturing competitive products; projects to create new production capacities, ensuring the production of innovative high-tech products that are in demand on world markets.The share of infrastructure projects by the end of 2015 will amount to at least 34 percent, the share of projects in industrial sectors - about 58 percent, in agriculture - 8 percent of the bank’s total loan portfolio.Pursuant to the instruction of the Government of the Russian Federation and the Supervisory Board of Vnesheconombank, the issue of the establishment of the Russian Export Credit and Investment Insurance Agency in the form of an open joint-stock company with VEB’s 100-percent stake in the Agency’s authorised capital that will amount to 30 billion roubles, was put on the agenda.The Agency is being created for structural support of functioning of the mechanism of export credit and investment insurance from business and political risks, designed to complement the range of commonly used financial instruments to support exports, such as guarantees and financing, and therefore to raise the effectiveness of government support for exports in general.The order of the establishment and the main provisions relating to the regulation of the Agency’s activities is stipulated by the Federal Law of 18 July 2011 “On Amendments to Certain Legislative Acts of the Russian Federation for Improving the Mechanism of Export Credit and Investment Insurance from Business and Political Risks” that came into force on July 22, 2011.The VEB Supervisory Board meeting agenda also includes the issue of VEB’s participation in the financing in the amount of up to 40 billion roubles of the project “Construction of the Taishet Aluminium Plant” for the production of primary aluminium with a capacity of 750 thousand tonnes per year. The project is aimed at the removal of infrastructure constrains of economic growth and at raising efficiency of the use of natural resources. As a result of the plant’s construction up to 3,000 new jobs will be created, and payments to the budget during the period of Development Bank’s loan will amount to 17.4 billion roubles.The meeting participants are also expected to consider the issue of funding by VEB of the investment project “Creation of the Ford-Sollers JV” in the volume of 39 billion roubles. The project envisages the establishment of large-scale production of cars and commercial vehicles, as well as SUVs with a capacity of 350 thousand vehicles per year with the target localisation level of at least 60 percent, including the production of powertrains in Russia.VEB is a Russian, and former Soviet, bank and translated to English as the Bank of Foreign Economic Activity. It is commonly called the Russian Development Bank, although it refers to itself as “the state corporation “Bank for Development and Foreign Economic Affairs.” The institution is used by the Russian government to support and develop the Russian economy, to manage Russian state debts and pension funds. It is a part in the governments plan to diversify the Russian economy, and to do so receives funds directly from the state budget.According to the VEB website, in 2010 Vnesheconombank carried on its core activity as a Bank for Development and stepped up its international efforts. Twice in the year Vnesheconombank placed eurobonds on the international markets. The volume of the eurobond issues exceeded 3 billion US dollars, bond maturity periods were seven, ten and fifteen years.In 2010, Vnesheconombank entered into agreements with many regions on implementing projects and programs aimed at innovation development of the Russian constituent entities. The Bank initiated the signing of a multilateral agreement between development institutions to provide support for innovation line of development in SMEs and became one of the founders of the Skolkovo Centre. As a national development institution Vnesheconombank participated in implementing investment projects aimed at supporting mono-cities.The Bank virtually completed the rehabilitation of its three subsidiary banks (Svyaz-Bank; Globexbank; Prominvestbank, Ukraine). Vnesheconombank Group was formed. In order to streamline Vnesheconombank’s structure the following departments were established: the Innovation and High Technology Department, the Natural Resources Department, the Regional Policies Department, representative offices were opened in Yekaterinburg, Pyatigorsk and in the French Republic.11:29?27/09/2011ALL NEWSRF govt presidium to discuss agriculture issues, September 27 (Itar-Tass) — The Russian government’s presidium on Tuesday will consider a number of changes to the existing federal laws on the development of agriculture and on the entry citizens to and exit from Russia.Minister of Agriculture Yelena Skrynnik will present to the Cabinet draft amendments to Article 8 of the Federal Law “On the Development of Agriculture.” Currently, the state program of agricultural development and regulation of agricultural products, food and raw materials is approved by the government for a five-year period. At a meeting of the government commission on issue of the agro-industrial complex on March 23, 2011 it was decided to establish the term of effect of a new State Program from 2013 to 2020. The Ministry of Agriculture proposes to establish “a term defined by the government” instead of the five-year term.Justice Minister Alexander Konovalov will report on proposed changes to the law on the rules of entry to and departure from Russia. It is said in the materials for the meeting that the issue of the procedure of extradition of foreign nationals will be raised. The amendments offered by the draft law will make it possible to formalise the issue of crossing the border by foreigners who do not have the required documents and for which there is a decision of the General Prosecutor’s Office on extradition of a foreign state. This will ensure the full implementation by Russia of international treaties on extradition of the above category of foreign nationals.In addition, the agenda includes the ratification of the Russian-Latvian agreement on Avoidance of Double Taxation and on the Prevention of Tax Evasion with Respect to Taxes on Income and on Capital. The draft sets lower tax rates on passive income (dividends, interest and royalty) at the place of residence of the company that pays them. This is done to increase the tax base in the Russian Federation, because the main investment flows are directed from the Russian Federation to Latvia and the main recipients of such income are Russian persons. In addition, the draft uses some terms and criteria that are not envisaged by the model agreement.The ministers are planned to approve amendments to the regulation on the Federal Forestry Agency. It is proposed to entrust the Federal Forestry Agency with the powers to settle issues of the creation and allotment of forest seed breeding facilities, use of forests for cultivation of seedlings of forest plants, classification of forest wildfire hazard depending on the weather conditions, monitoring the fire hazard in forests and forest fires, determining the means of forest fire prevention and extinguishing, etc.September 27, 2011 12:29Shlyakhturov is still director of Russian Main Intelligence Department – Makarov. Sept 27 (Interfax-AVN) - So far, no decision regarding Alexander Shlyakhturov's possible dismissal from the post of Russian Armed Forces General Staff deputy chief and Main Intelligence Department director has been made, General Staff chief Nikolai Makarov told Interfax on Tuesday."So far, I cannot tell you anything about it. Shlyakhturov remains at the post of Main Intelligence Department director," Makarov said."The age limit applies to all of us, and I cannot foretell anything. So far, no decisions have been made. It is up to the president to decide on such issues," he said.Shlyakhturov is coping with his duties well, he added.tm(Our editorial staff can be reached at eng.editors@interfax.ru)12:41?27/09/2011ALL NEWSNo decision to dismiss GRU chief Alexander Shlyakhturov - Makarov, September 27 (Itar-Tass) —— There has been no decision to dismiss the deputy chief of Russia’s General Staff, chief of the military intelligence GRU Alexander Shlyakhturov, the chief of the General Staff, Nikolai Makarov, said.“At this point I cannot say anything about this. Shlyakhturov is the chief of the intelligence department and he remains in office,” Makarov said.“Everybody has one’s age limit, and I cannot anticipate anything,” he said.“No decisions exist yet. It is up to the president to decide,” the chief of the General Staff said, adding that Shlyakhturov was doing a good job.RT News line, September 27Russia suspends purchase of legendary Kalashnikov’s defense ministry is refusing to purchase any more Kalashnikov guns, named after Soviet gun designer Mikhail Kalashnikov. There were no purchases in 2011, nor are there any scheduled for 2012 or 2013.? The source in the ministry explained they do not want to order a gun which lays jammed in warehouses. But the fact is being concealed from the designer who is 91 years old.10:25?27/09/2011ALL NEWSWildfire area in Siberia halves in past 24 hours, September 27 (Itar-Tass) —— The wildfire area in Russia’s Siberian regions has halved in the past twenty-four hours, a spokesman for the Siberian regional emergencies administration told Itar-Tass on Tuesday.According to the spokesman, there were nine fires on an overall area of 559 hectares by Tuesday morning, six of these nine were contained on an area of 364 hectares. The remaining fires are located in the Transbaikal territory.On Monday, fire fighters put out 39 out of 44 wildfires on an area of 468.3 out of 680.3 hectares in the Transbaikal territory, the Irkutsk and Omsk regions, and in the republic of Buryatia.Fire fighting operations in the past twenty-four hours involved 1,211 men and 272 units of hardware. A Mi-8 helicopter of the Siberian regional emergencies centre made six flights to airlift fire fighters to the beds of fire. On Tuesday, fire fighting operations will be continued in the Kyrinsky district of the Transbaikal territory, the spokesman added.Firefighters battle 1,000 ha of forest fires in Russia's Siberia 27/09/2011NOVOSIBIRSK, September 27 (RIA Novosti)Firefighters are battling some 30 forest fires that engulf over 1,000 hectares of woods in Russia's Siberia, the regional department of the Russian Emergencies Ministry reported on Tuesday.The department said that 39 forest fires covering an area of some 470 hectares were extinguished over the past 24 hours.Over 1,200 people and 270 units of firefighting machinery are involved in combating the raging wildfires, the ministry's department said.Wildfires across Russia are common during dry and hot summers and in the fall. Most fires start because of the careless behavior of local residents.Forest fires devastated a number of regions in central Russia last year, killing 62 people and leaving thousands homeless.Mine collpase in Yakutia 27, 2011 07:42 Moscow TimeIn Yakutia, in the Russian Far East, at the Chulman Mine there has been a rock collapse.As a result of the incident, one of the miners has been trapped underground 30 meters from the entrance.Rescuers are at the scene, however the fate of the miner is unknown.27 September 2011, 10:03Patriarch Kirill expresses "respect, fraternal love" to Pope Benedict XVI , September 27, Interfax - Patriarch Kirill of Moscow and All Russia has expressed his respect towards Pope Benedict XVI."I am rejoicing at the opportunity to meet with you as the high representative of the Catholic Church and the Holy See in order to express my respect and fraternal love to His Holiness. I would like you to express these feelings on my behalf," the Patriarch said at a meeting with Pope's Personal Representative Cardinal Jozef Tomko in Moscow.For his part, the Cardinal spoke of the spiritual revival in Russia."We see how cathedrals are being revived, this is a sign of the revival occurring within the believers. You, Your Holiness, are both the sign and the leader of this renewal and revival of the faith here," he said.The Cardinal delivered to the Patriarch the Pope's cordial and fraternal greetings.Tomko has arrived in Russia to attend the festivities on the occasion of the centenary anniversary of the Catholic Cathedral of the Immaculate Conception of the Holy Virgin Mary in Moscow.27 September 2011, 10:05Four Moscow gay organizations denied registration , September 27, Interfax - The Russian Justice Ministry's Main Directorate for Moscow has denied registration to four public organizations set up by activists from the Russian gay community."The authorities continue their arbitrariness by denying us registration under any contrived pretexts," one of the co-founders of the new organizations, Nikolay Alexeyev, wrote on his blog.Unlike their colleagues in St. Petersburg, Moscow justice officials have registered not a single public organization of sexual minorities, he said."The impression is that Moscow and St. Petersburg are the cities located in various countries. There is no united legal space in Russia," he said.The Justice Ministry's decisions were made with respect to the Harvey Milk Society, Sport Without Homophobia, Article 282 and the Committee of the International Day Against Homophobia.The ministry said the submitted documents do not comply with the Russian law."We intend to rectify the faults which were indicated to us and to re-apply for registration of these organizations. If we fail for the second time, we will go to courts and will be ready to take all cases to the European Court of Human Rights," Alexeyev said.The Justice Ministry's Moscow Directorate was not immediately available for comment on this matter.PRESS DIGEST - Russia - Sept 27 EDTMOSCOW, Sept 27 (Reuters) - The following are some of the leading stories in Russia's newspapers on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy. VEDOMOSTI vedomosti.ru - Russia's economic policy could change with the resignation of Deputy Prime Minister and Finance Minister Alexei Kudrin, according to analysts. - President Dmitry Medvedev has initiated anti-corruption legislation under which an official could be sacked on the basis of an administrative investigation into abuse of office. KOMMERSANT kommersant.ru - It will be difficult to find a adequate replacement for Kudrin, as he was able to defend his independent position on key issues and played the role of a financial guarantor of the current political regime, the daily says. - Russia's Rosneft and Italy's Eni are discussing ways to jointly develop oil fields in the Black sea, and Rosneft hopes Eni will help it gain access to Libya in exchange, the daily says. IZVESTIA izvestia.ru - Tatyana Nesterenko, in charge of budget policy at the Finance Ministry, could replace Kudrin, the daily says citing its sources close to the ministry. - Russia's defence ministry has refused to purchase Kalashnikov AK-74s for the next year, saying munitions stores are overloaded with the guns. - Russian military intelligence chief Alexander Shlaykhturov could resign for health reasons, the daily says, adding that he is known as an ally of the defence minister and has fired almost 1,000 officers as part of the military reform, the daily says. NEZAVISIMAYA GAZETA ng.ru - Medvedev has demonstrated his unwillingness to look like a "lame duck" after making public his plans to leave office next year. The analysts are forecasting serious difficulties for him in implementing many of his initiatives, the daily says. - Russian teachers plan to protest on October 5-7 over 30 percent pay rises promised by Prime Minister Vladimir Putin, which they say is very low. Even doubling the average provincial teacher's monthly salary of 7,000 roubles ($216) would be insufficient, the daily cites teachers' representatives. ROSSIISKAYA GAZETA rg.ru - Eight of the 11 Russian communications satellites in orbit need urgent replacement but Russia will be unable to launch new ones until 2013-2014, the daily says, citing a space official. RBK Daily rbcdaily.ru - Prime Minister Vladimir Putin has sacrificed his Queen, the daily says in connection with Finance Minister Alexei Kudrin's ouster. It says further resignations could follow as tension in the teams of Putin and President Medvedev grows. MOSKOVSKY KOMSOMOLETS mk.ru - Medvedev is constantly demonstrating his tough character and shows that nobody has the right to argue with him, especially in public, the daily says. ($1 = 32.421 Russian Roubles) (Reporting By Tatiana Ustinova) Medvedev's 'big mistake' 07:52 Polish MEP and member of the European Parliament's Foreign Affairs Committee Marek Siwiec says that Dimitri Medvedev's decision to recommend Vladimir Putin as the next president of Russia is the “biggest mistake of his career”. "It's a pity, because [Russia] made a step forward thanks to the division of power, and now they have laid it all to waste with one move."President Medvedev, head of state since 2008, announced the job-swop at a party rally Saturday, saying that Putin would return to the post of president he has already served two terms as and Medvedev would return to his post as prime minister.The news has been received with some concern in Warsaw, which has had at times difficult relations with Putin over the last decade and more."This shows that the hopes for a far-reaching modernisation of Russia in terms of relations with Europe have been thwarted," says Poland Comes First MP Pawe? Kowal.Adam Szejnfeld, from Civic Platform – the party seeking reselection as head of the governing coalition in the upcoming elections on 9 October in Poland - told Polish Radio, however that the re-shuffle will not influence relations with Poland, as the former president is “familiar to us and therefore predictable”.The announcement comes two and a half months ahead of the parliamentary elections in Russia and less than a year before the upcoming presidential ballot, in which Putin is hot favourite to gain a third term as head of state. (pg/ab)Skolkovo May Require Stronger Support With Putin As PresidentBy Olga Razumovskaya Published September 26, 2011| Dow Jones NewswiresRead more: -(Dow Jones)- Skolkovo, a soon-to-be-built government-supported innovation center near Moscow and a pet project of outgoing president Dmitry Medvedev, may require stronger support from the government should current Prime Minister Vladimir Putin become president, one of the project's leaders said Monday.Skolkovo is a Silicon Valley-style hub which has become a cornerstone of Medvedev's modernization and innovation drive since he assumed presidency in 2008. U.S. technology giant Cisco Systems Inc. (CSCO) has pledged $1 billion in investments there and Germany's Siemens AG (SI) plans to create a research center.At nearly every public gathering since Skolkovo was chosen as the venue for the hub in mid-March 2010, the president has highlighted Skolkovo as an example of how Russia is changing.Where Medvedev has become a symbol of innovation, Putin has become a guarantor of economic stability and sovereignty and less of innovative projects and ideas. Traditionally associated with real economy, Putin is likely to become president in 2012 following his acceptance of the nomination for a presidential candidate from the ruling United Russia party. This switch in power causes uncertainty over the fate of the project.Steven Geiger, Chief Operating Officer of the Skolkovo Foundation, which stands behind the project, said the project may need stronger government support if the new leadership decides to continue with it."My personal view is that we should be supported," Geiger said in an interview with Dow Jones Newswires. A strengthening in support "might be necessary for us" since there is a feeling there might be a change of course.He noted that the hub's mandate to drive innovation and modernization remains strong with the advent of Putin as a likely potential presidential candidate.Copyright ? 2011 Dow Jones NewswiresRead more: Tough Crowd Russian Media Scrambles to Analyze the Consequences of another 12 Years of Putin By Dan Peleschuk Russia Profile 09/26/2011 President Dmitry Medvedev’s announcement on Saturday that he would step aside to allow Prime Minister Vladimir Putin another chance at the presidency ended nearly four years of speculation as to whether Putin would return to the post. Though analysts and casual observers alike had long predicted the move, the announcement still sent ripples through the Russian media. And while the local press tackled the story with commendable analysis, most of the coverage was geared toward predicting the bleak course on which Putin would continue to steer Russia. Bloggers, meanwhile, took to the Web to voice their own concerns.The few media outlets that remain largely free of censorship and government interference took last weekend’s news almost as if it were a surprise. Though many expected Putin to return, it was a question of when everyone would know. It was only rumored that the announcement would be made at the United Russia party congress, and the many months of speculation had seemingly given way to a sense of resignation as to the final candidate. Yet when the news broke, the press was forced to grapple with the stark reality that the secret was out, and Putin was back in.Since the announcement, commentators have begun to piece together the consequences of another 12 years of Putin. Many, however, are less than positive. Writing for Vedomosti, political and economic analyst Sergei Aleksashenko likened Russia today to a slowly rusting “Titanic” that missed the fatal iceberg, but continued sailing on for many years. “We walk along its corridors and see little leaks here and there, but we quickly patch them up to create an image of a boat that could still serve us for many years…But those who are supposed to fix and maintain the entire skeleton of the boat not only don’t do that, but they exploit its poor condition by chipping off piece after piece and making good money in the process.” Aleksashenko further commented that a potential catastrophe can only be avoided in the future if everyone realizes the gravity of the problem instead of simply supporting “the captain.”A September 24 editorial posted in Gazeta.ru mirrored similar concerns for the future, yet it also shed light on how, after four years of Medvedev’s reform rhetoric, some may have found themselves deceived by the carefully orchestrated charade (Medvedev and Putin both admitted at the congress the decision had been made long ago). “That Medvedev didn’t refuse a continuing part in political life but refused authority altogether…speaks to the fact that he never had either authority or his own vision. There was just dependence. And this dependence, these illusions were the hope of those who believed in liberal reforms, modernization, humanization, the battle against corruption and elite privileges, the freedom of speech and the political opening of the country,” the paper said.The vibrant Russian blogosphere, meanwhile, registered its own opinions of this weekend’s news, as it became a catalyst for the virtual explosion of commentary on LiveJournal and other popular Russian sites. Many initial reactions in the several hours after Medvedev’s announcement were ones of utter dismay: the phrase “Let’s get out of here!” appeared widely and seemed to be a common theme. And while some applauded the announcement, there seemed to be little middle ground between support and disgust, reflecting Gazeta.ru’s comment that “the state today has become a place where the youth either dreams of emigrating or of working for Gazprom.” Other viral postings surfaced, too, such as a scanned copy of an instruction sheet handed to attendants of the United Russia congress (but whose origin and authenticity could not be verified), “leaked” in an attempt to further discredit the closely orchestrated affair. On the sheet, written under the dress code and list of prohibited items, is an underlined list of phrases participants were required to chant – among them, “Nation! Medvedev! Putin!”But while some let their emotions run rampant, others were careful to compose their thoughts and offer a more calculated assessment of what more Putin might mean for the future. Dmitry Gudkov, the leader of the Young Socialists of Russia, wrote on his Echo of Moscow blog that Putin’s return might just give steam to the “Russia Without Putin” movement, currently a fringe opposition movement: “Now this can become a real idea for the opposition, and the authorities themselves laid the foundation for it at the United Russia congress…Fanatics of Putin are happy, but for the majority of people it became clear that the four-year-long joke known as the ‘Medvedev presidency’ is over, the masks have been torn off, and everything is called as it really is: there is no democracy in Russia, just people who usurp power and will never let it go.” While social media in the West has long existed as a channel for casual communication – where friends keep track of one another through Facebook, share music through MySpace, and “tweet” brief updates through Twitter – social media in Russia is in many ways a far more meaningful institution. In a country where independent or critical news is scant, many young and educated urbanites resort to the blogosphere in order to share their opinions and, often, to help shape the way their peers think about hot button issues.Now, however, that rule may extend beyond simply including disenchanted youngsters looking for greater freedom of expression. As rumblings of dissent begin to form within the top leadership – the latest to speak out was Minister of Finance Alexei Kudrin – social media may play a larger role in shaping the political future than some might think. Take, for example, a tweet senior Kremlin advisor Arkady Dvorkovich posted as a response to a follower shortly after the United Russia congress (in reference to the venue in which the congress took place): “It’s better to play hockey in the Luzhniki stadium...”Resident Alien Attitudes in Russia Are Growing, but Are Unlikely to Lead to Large-Scale Ethnic Conflicts By Svetlana Kononova Special to Russia Profile 09/26/2011 Ethnic tension in Russia remains a serious problem, if a recent poll conducted by the Public Opinion Foundation (FOM) is anything to go by. It found that 76 percent of Muscovites and 66 percent of residents of the Central Federal District believe that the authorities should limit the number of non-Russians who can enter their districts. Most Muscovites also think that the relationship between people of different nationalities in the Russian capital is bad, and a third said they have negative feelings toward newcomers. But despite the hard feelings, experts say dramatic growth in the number of ethnic conflicts is unlikely.“Moscow is now the epicenter of migration in Russia. On the one hand, it is a very attractive destination for migrants as a place where it is possible to earn much more than at home. But on the other hand, it is absolutely unattractive from the point of view of interethnic relations. The poll data may be explained by xenophobia – a primitive fear, like when animals protect their territory from strangers,” said Ekaterina Kozhevina, a spokesperson at FOM. “Xenophobia doesn’t depend on income levels. Even the social group that leads the most modern lifestyle in Russia can fear for its comfort when ‘strangers intrude.’ The only ways to fight xenophobia are a humanities education and cultural attitudes encouraging tolerance.”Besides Muscovites, young men aged 18 to 34 as well as residents of the North Caucasus and Southern Federal Districts had the most negative attitudes toward other nationalities. The most tolerant groups polled were women aged 55 to 64, residents of the Volga and Siberian Federal Districts, and residents of small towns and villages.Alexander Verkhovsky, director of the Moscow-based SOVA center, an NGO that tracks neo-nazi and xenophobic violence, also pointed out a growth in ethnic xenophobia in Russia. “All public opinion polls confirm it,” he said. He ascribes increasing xenophobic attitudes not to significant changes in people’s lives, but to the changes in their perception of the status quo. “People hear that there are ethno-political problems in the country everywhere – from ‘kitchen talk’ to presidential speeches. It draws theirs attention to the problem. But they don’t see adequate measures being taken. Actions are limited, or inadequate, or stop quickly. Therefore people start inventing solutions. The easiest way seems to be expelling ‘strangers’ or not letting them in to begin with. But there is no open discussion going on in society from which a reasonable person could come to the conclusion that this problem has no simple solution,” Verkhovsky said.The other reason why public opinions polls show a high level of xenophobia in Russia is the legitimization of such ideas, experts noted. “Now it is possible to confess some things that couldn’t be voiced in polls in the past. And this doesn’t just concern the polls – people have started accepting ideas that were considered controversial and even shameful not long ago as normal,” Verkhovsky said.The growth in xenophobic attitudes has already led to ethnic hate crimes. Data from SOVA shows that since the beginning of 2011, 15 people were killed and 80 injured in racist attacks, while seven have received death threats. Similar incidents were recorded in 22 regions of the country, though these statistics exclude victims of mass brawls and incidents in the North Caucasus. The hot spots in Russia are Moscow and St. Petersburg along with their surrounding regions, Vologda, Irkutsk, the Kaliningrad and Saratov regions and Bashkortostan. The main targets of violence are people from Central Asia and representatives of youth groups that neo-Nazis see as enemies. Among other victims are people from the Caucasus, non-CIS Asian countries representatives of various minority religious groups whose appearance is “non-Slavic.”“The transformation from ‘average grassroots xenophobes,’ of which unfortunately there are plenty, to ultra-right activists often happens under the influence of subcultures (for example, football fans and people with certain music and style predilections) and much more rarely after reading a text. Criminal investigations show that the social background of the ultra-right is very diverse. This is not to say that people become ultra-right activists because of poverty,” Verkhovsky said.Ella Levkovskaya, the manager of the “Migration Barometer in the Russian Federation” project at the New Eurasia Foundation, believes that the growth in xenophobic attitudes is unlikely to lead to a spike in large-scale ethnic conflicts. “In my opinion, the more often local residents encounter migrants, the more intolerant their attitudes become. Local conflicts in youth communities are possible, but large-scale clashes are unlikely. Taking Russia’s huge demand for migrants into account – up to ten million in the next decade – the media should work on creating a positive image of migrants,” she said.Data from Baromig.ru shows that the most popular destinations for migrants in Russia are Moscow, St. Petersburg, Tver, Ekaterinburg and large construction sites in the Far East. As a rule, migrant labor costs less than employing Russian citizens, which leads to a negative attitude toward outsiders. The only exceptions are highly-qualified expats from the EU, the United States and other developed countries, who make more than the local residents.Migration experts also point out that contrary to the stereotype, there are no “alien ghettos” in big Russian cities. “There are no ghettos, but there are some districts in Moscow, for example, where there are more migrants. I don’t see any problem with it. China-towns, Italian, Jewish and Black quarters also exist in the United States and Canada. It is good and bad at the same time, but it is useless and irrational to try to change it with compulsory measures,” Levkovskaya said. “The world is changing and new processes are starting globally. It’s key that Russian politicians don’t create prohibitive laws for migrants.”National Economic TrendsCentral banker gives reassurance about ruble , 27.09.2011, Moscow 11:40:47.Central Bank of Russia (CBR) Chairman Sergey Ignatyev said he saw no reasons for the Russian ruble to continue its sharp decline, RBC Daily reported today.??????German Gref, the CEO of the country's largest bank Sberbank, said that CBR had more than enough reserves to keep the situation under control. "The ruble is currently trading above RUB 32 and I have no sense that it would fall sharply. It is evident that the price of oil cannot stay low over a long period of time. This means that the balance of payments and the ruble rate will recover. I keep my savings in rubles, remain calm and am in no rush to exchange them, I am tolerant of fluctuations in the ruble rate," Gref said at the Russian-Singaporean business forum. ??????He added that there has been no trend whereby people are pulling out the ruble-denominated balances of their accounts and switching them to a foreign currency. Ruble Snaps 12-Day Losing Streak Versus Basket as Oil Rallies Jack Jordan - Sep 27, 2011 8:37 AM GMT+0200 The ruble strengthened for the first time in 13 days against the central bank’s target dollar- euro basket as oil, Russia’s chief export earner, rallied. The Russian currency appreciated 0.3 percent at 37.3785 against the basket at 10:20 a.m. in Moscow, the first gain since Sept. 8. The ruble advanced 0.6 percent to 32.22 per dollar and was little changed at 43.6688 per euro. Oil rose in New York after U.S. Treasury Secretary Timothy F. Geithner predicted Europe will intensify efforts to contain its debt problems, signaling demand for the commodity may recover in the euro area. Crude for November delivery climbed 2.5 percent to $82.23 a barrel. To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@ To contact the editor responsible for this story: Gavin Serkin at gserkin@ Russian Reserve Fund to reach RUB1.791 trillion, National Welfare Fund RUB2.604 trillion by year end 27, 2011They were supposed to be exhausted by the end of this year, but both of Russia's rainy day funds are taking in money thanks to higher than expected oil prices: Russia's reserve fund is expected to hold RUB1.791 trillion and the National Welfare Fund RUB2.604 trillion by the end of this year, reports the CBR. Deputy Finance Minister Alexei Lavrov said the funds currently hold RUB772.3bn and RUB2.673 trillion as of September 1. Oil and gas earnings exceeding RUB4.6 trillion may be used to replace government loans or transferred to the Reserve Fund and the Finance Ministry estimates these earnings at RUB5.4 trillion. The same may happen next year. The Reserve Fund may receive RUB574bn: according to a draft budget for the period 2012-2014, the government will receive RUB5 trillion from the oil and gas sector while earnings from raw materials are estimated at RUB5.6 trillion. This is over a half of the scheduled deficit - RUB860.4bn (1.5% of GDP).Russia. Grain exports seen at 23mn tons in 2011-2012 's grain exports could amount to about 23mn tons of grain in 2011-2012 MY, deputy PM Viktor Zubkov announced. Previously the Agriculture M Ministry estimated the grain exports at about 20mn tons. Zubkov also added that a discounted tariff for grain railroad transportation could be approved by the government later this month.As reported, grain harvest is expected to be between 90mn and 92mn metric tonnes this marketing year. This summer, head of the Russian Grain Union Aleskandr Korbut argued that upon re-entering the grain exports markets after lifting the export ban, Russian grain producers will have to sell at a discount of about USD 20-USD 30 per ton. Any "come-back" to the global market has its price, Korbut then stressed, reminding that previously the premium for entering the market was about USD 10-USD 15 per ton. Korbut also believes that overall price trend on global grain markets this year will be a downwards one. To remind, last year due to severe drought and wildfires, only 60mn of grain were harvested, while domestic demand was estimated at 77mn tons. Poor harvest of grain forced an exports ban that was lifted on July 1 2011. Fitch Ratings welcomed Russia's intention not to prolong the export ban on grains, as well as to lift the export quotas on some types of grain.At the same time, Fitch believed that limitations on grain trade in Ukraine and difficult weather conditions in key grain-harvesting regions are going to continue limiting global supply of grain on the background of global prices remaining higher than five-year average. Fitch noted that although Russia and Ukraine accounted for 22% of global grain exports in 2008-2009, this share is likely to decrease to 6% by the end of the current season, concluding that Russia lifting the exports ban not necessarily being sufficient to compensate harvest losses in Europe and USA.world-grainHigh quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ to buy additional rights. 26, 2011 10:29 pmRussia feels the pain as investors take flightBy Catherine Belton in MoscowThe re-emergence of Vladimir Putin as Russia’s political supremo failed to prevent the country’s markets being buffeted by the global financial turmoil on Monday, with the pressure only set to intensify after the sudden dismissal of the country’s finance minister and leading fiscal hawk.The rouble fell just more than 1 per cent in morning trade to its lowest rate against the dollar since August 2009, and analysts predicted no end to the capital outflows that have grown to more than $70bn over the past year.While the rouble’s slide is seen as mainly connected to global woes, bankers said the downward spiral would strengthen after Dmitry Medvedev, the current president and Mr Putin’s would-be prime minister, sacked Alexei Kudrin late on Monday. Open warfare had broken out over his refusal to work under Mr Medvedev in a future cabinet.Furthermore, Mr Putin’s imminent return to the top spot in Russian politics is dimming hopes among a section of big and middle-level business for greater competition, kindled by Mr Medvedev’s economic reform plans. Despite expectations that Mr Putin will seek to present a more liberal image, fears prevail that the country is now on course for economic stagnation and continued crony capitalism that has benefited Mr Putin’s friends and allies.“Kudrin’s departure is just another brick in the wall separating Russia from investors, and that wall is getting higher,” said Steven Dashevsky, the head of an investment fund. Even though Mr Kudrin has won plaudits from investors for his fiscal conservativism, lately he has been unable to prevent excessive state spending and the growing crony system, Mr Dashevsky said. “Now for rational investors there are just not that many reasons to invest in Russia any more,” he said.“The capital outflows will not weaken as the biggest part of the business community does not have much faith in Putin’s economic policies and no one ties their hopes with him significantly improving the investment climate,” said Sergei Aleksashenko, a former deputy central banker.“The country is going down the toilet,” said one senior western banker.The country’s growing urban middle class could join big business in voting with their cash, analysts said. “The worst thing is that the middle class, which should be a new driver of growth for the Russian economy, is now starting to take capital out of the country too,” said Yulia Bushueva, head of an investment fund at Arbat Capital, a Moscow investment bank. “This used to be the prerogative of the oligarchs. But now the middle class are looking to buy property abroad and educate their children abroad. They don’t see much future in their country.”A recent survey by the independent pollster Levada suggested that 22 per cent of Russia’s adult population wanted to emigrate, compared with 7 per cent in 2007.Fearing stagnation, some better-known names in Russian big business have quietly been seeking to transfer assets to safer havens.Mikhail Prokhorov, the country’s third richest man who, until recently, spearheaded the push for liberal party representation in parliament via his leadership of the Right Cause party, this year secured a London listing for his Polyus Gold miner. Together with Oleg Deripaska, he also last year won a Hong Kong listing for the UC Rusal aluminium giant controlled by Mr Deripaska.Behind the scenes, a group of oligarchs was “clearly backing Medvedev to remain as president”, said another senior banker. “Plan B was for him to stay on as prime minister.”As a result of Mr Putin’s return to the presidency and an expected shake-up in government, “there are going to be winners and losers,” said a third senior western banker. “There are some oligarchs who are going to have more issues than others.”Among this group could be Viktor Vekselberg, one of the billionaire owners of TNK-BP, the Russian oil venture half-owned by BP, and a big stakeholder in UC Rusal, who heads a Medvedev initiative to build Russia’s version of Silicon Valley in Skolkovo, the banker said. Mr Deripaska too had appeared to hope that a raft of corporate governance reforms being prepared by Mr Medvedev would help him in his battle for control of Norilsk Nickel against rival metals tycoon Vladimir Potanin. Though no one expects any of these oligarchs to be attacked over their tacit support of Mr Medvedev, their positions could be weakened.The position of Igor Sechin, the energy tsar, who had appeared to be under fire in Mr Medvedev’s corporate governance drive amid great rivalry between the two men, is now likely to remain strong, analysts said. Even if Mr Sechin loses his post as deputy prime minister, he could take an equally powerful one in Mr Putin’s new Kremlin administration. .......................................................................Putin’s business allies At least one class of Russian big business has been celebrating following news that Vladimir Putin will be the ruling party’s candidate for the presidency, writes Catherine Belton. Even as Mr Medvedev attempted to pursue plans for a liberalisation of the economy, over the last four years a coterie of businessmen with close ties to Mr Putin have seen their fortunes surge.This group is led by Gennady Timchenko, a close Putin ally from St Petersburg whose Gunvor oil trading group rose from niche player to become the world’s third biggest with an annual turnover of $70bn during Mr Putin’s presidency. In the last four years, Mr Timchenko has expanded his empire into holdings in a fast growing independent gas producer, sea ports and coal mines, as well as control over gas pipeline construction firm Stroytransgaz. The group denies its rise is connected to Mr Putin’s position. Others in the group include Arkady Rotenberg, the head of a St Petersburg judo club founded by Mr Putin and owner of Stroygazmontazh, an energy services firm, and Yury Kovalchuk, the head of St Petersburg bank Bank Rossiya and a former neighbour of Mr Putin’s.Copyright The Financial Times Limited 2011. You may share using our article tools.Please don't cut articles from and redistribute by email or post to the web. Russian Banks and Greek Debt, Election Outlook . 26 (Bloomberg) -- Andrey Kostin, chairman of VTB Group, talks about the impact of the sovereign-debt crisis in Europe on Russian banks and the dismissal of Finance Minister Alexei Kudrin by President Dmitry Medvedev. Kostin speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)Putin Faces ‘Unpopular’ Decisions to Overhaul Russia’s Oil-Reliant Economy Henry Meyer, Lyubov Pronina and Ilya Arkhipov - Sep 26, 2011 9:04 PM GMT+0200 Vladimir Putin will face obstacles that include a growing budget deficit, continued dependence on oil exports and the potential for social discontent as he reclaims Russia’s presidency next year, according to former government officials. Putin, 58, said Sept. 24 he’ll seek to return to the presidency in March elections, pushing aside his protégé, Dmitry Medvedev, who replaced him for four years because of a constitutional ban on three consecutive terms. Medvedev may take the role of prime minister, a move that Finance Minister Alexei Kudrin, an advocate of budget discipline, said would prompt him to quit. Putin would take the country’s job just as the global slowdown threatens to throttle demand for oil, the lifeblood of the Russian economy. The risk is that Putin, an officer in the Soviet-era KGB who says economic-policy makers must avoid “liberal experiments,” will struggle to combat challenges that threaten the country’s long-term growth prospects, said former Economy Minister Yevgeny Yasin. Economic changes “will entail political risks, unpopular decisions, and I’m afraid that will stop Putin,” Yasin, who was minister between 1994 and 1997 and is now the director of the Higher School of Economics in Moscow, said yesterday by phone. “Russia has yet to reform many institutions which are the legacy of the Soviet era.” Concern over the global economy and Europe’s sovereign-debt crisis has roiled markets in Russia, which saw its economy contract 7.8 percent in 2009, its worst recession on record. Russia is vulnerable to swings in oil prices and will have to cut spending, including pensions, to bring its budget into line and its dependency on commodity exports, the International Monetary Fund said on Sept. 21. Oil Price Falling The world’s largest energy exporter saw the price of its main export, Urals crude oil, fall more than 7 percent last week to $104.93 a barrel, $10 below the level required to balance the budget. Speculation over who would run for president pushed Russian equities evaluations to the lowest in emerging markets. The Micex index slipped 12 percent last week, dropping valuations on the measure’s 30 shares to an average 4.7 times of member companies estimated earnings, the cheapest among 23 emerging markets tracked by Bloomberg. The ruble has slumped 10 percent against the dollar in September and is poised for its worst month since January 2009, according to Micex prices compiled by Bloomberg. The currency was unchanged at 32.0475 per dollar late on Sept. 23 in Moscow, the lowest level since Aug. 17. Increased Order Putin’s first two terms as president were marked by order and increased state ownership of the country’s biggest companies. Buoyed by a booming global economy, Russia averaged 7 percent growth a year during Putin’s 2000-2008 presidency. Mikhail Kasyanov, a prime minister under Putin until he was fired in 2004 and now an opposition figure, predicts Russia may see its reserves dry up and record a budget deficit of as much as 5 percent of economic output if crude prices fall by a third from their current levels. Putin said on Sept. 21 that there will be no budget shortfall this year. “If the price of oil falls to $70, that means the ruble will sink, the price of food and medicine will go up 30 percent as most are imported, and there will be a wave of social discontent,” Kasyanov said by phone. While Putin said in April that Russia must avoid liberal “experiments” to ensure stable economic growth, he said at a weekend party congress that tough decisions lay ahead. ‘Bitter Medicine’ “The task of the government is not only to pour honey into a cup, but sometimes to give bitter medicine,” he said. “This should always be done openly and honestly, and the overwhelming majority of people will understand the government.” Still, the prospect of Putin serving two more six-year terms, which would give him 24 years at the helm, may increase complaints from his critics that the system is authoritarian and make him more vulnerable to unrest. The ruling United Russia party has seen its support fall to around 40 percent from the two-thirds of the vote it won in 2007. Billionaire Mikhail Prokhorov quit as leader of the pro- business party, Pravoye Delo, last week after the Kremlin withdrew support for his bid to get the party into the lower house of parliament, where 87 percent of seats are held by pro- government forces. Prokhorov, who had committed $80 million of his money for campaigning in the December elections, said Aug. 26 that Russia is becoming a “farce and parody of the Soviet Union,” stifled by bureaucracy and authoritarian rule. On Sept. 25, Medvedev expelled him from a commission on economic modernization. Platform for Initiatives The commission, made up of government ministers and top business men, is Medvedev’s platform to discuss new initiatives to help develop the Russian economy. Sitting on such commissions is important for Russian businessmen because it gives them access to political leaders and knowledge of economic decisions being made. Medvedev, 46, a former corporate lawyer from Putin’s hometown of St. Petersburg, made the rule of law, the fight against corruption and reversing Putin’s policy of increased state ownership to attract greater foreign investment the cornerstones of his time in office. “Even though everybody knew that Putin de facto led the country during Medvedev’s presidency, Medvedev was associated with more liberalism and more investor-friendly rhetoric,” said Sergey Dergachev, who helps manage $8.5 billion in emerging- market debt at Union Investment in Frankfurt. “Whether Putin will follow these issues is to be seen.” Capital Flight Russia, which had $31.2 billion in capital flight in the first half of the year, could see that rise to $100 billion and suffer a sharp increase in the brain drain as educated Russians seek to emigrate, said Boris Nemtsov, an opposition leader and a former deputy prime minister under President Boris Yeltsin. Russians are becoming increasingly frustrated, said Nemtsov. “When people see they cannot replace the government peacefully through elections, they come out to the streets.” The Russian prime minister made his announcement at a packed congress of his ruling United Russia party, which former Soviet leader Mikhail Gorbachev earlier this year said reminded him of the “Communist Party in its worst years.” Gorbachev was awarded the Nobel Peace Prize in 1990 for helping end the Cold War and introduced a policy of “glasnost,” or openness. In July he urged Putin not to run for president, saying if he did so it “will lead to a situation like in Africa where leaders sit and rule for 20 or 30 years.” Putin said his most important priority was the need to show ordinary Russians he was on their side. “Taxes for people with high incomes, for the rich -- and we have more and more of these people -- should be higher than for the average class, the majority of citizens,” he told the United Russia party in Moscow on Sept. 24 where he received a standing ovation. Higher taxes for the wealthy should fall “primarily on consumption, real estate and property,” he said. To contact the reporters on this story: Ilya Arkhipov in Moscow at iarkhipov@; Henry Meyer in Moscow at hmeyer4@ To contact the editor responsible for this story: Balazs Penz at bpenz@ Business, Energy or Environmental regulations or discussionsEvraz Group, Sberbank, TNK-BP Holding: Russian Equities Preview Stephen Bierman - Sep 26, 2011 10:00 PM GMT+0200 The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading in Moscow. The 30-stock Micex Index (INDEXCF) rose 1.5 percent to 1,346.86 at the close in Moscow. The dollar-denominated RTS Index was little changed at 1,315.25. OAO TNK-BP Holding (TNBP) : HRT Participacoes em Petroleo SA, a Brazilian oil exploration company, may allow TNK-BP to operate some wells in a proposed venture in Brazil. TNK-BP had previously said that the lack of the option to operate the project threatened the $1 billion deal. BP Plc’s Russian venture with a group of billionaires rose 0.8 percent to 76.07 rubles. Evraz Group SA (EVR) : Russia’s largest steelmaker said it may buy a 51 percent stake in the Timir iron ore project from OAO Alrosa. Evraz fell 3.7 percent to $15.70 in London. OAO Sberbank (SBER03 RX): President Dmitry Medvedev signed a decree accepting Finance Minister Alexei Kudrin’s resignation after accusing him of “insubordination” for questioning the Russian leader’s spending policies. The move may further pressure the ruble, which has fallen to its lowest level against the dollar in more than two years. Russia’s largest holder of ruble deposits fell 1.3 percent to 69.25 rubles. To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@. To contact the editor responsible for this story: Will Kennedy at wkennedy3@. Uralkali, Belaruskali Up Potash Price For Brazil By $30 On Oct 1By Nadia Popova Published September 27, 2011| Dow Jones NewswiresRead more: -(Dow Jones)- Russian potash producer OAO Uralkali (URKA.RS) and Belarus potash maker Belaruskali will raise the prices of granular potash they sell to Brazil by $30 starting Oct.1, their common trader Belarus Potash Company, or BPC, said Tuesday. The rise will see a metric ton on cost and freight basis increase to $580 for larger buyers and $590 for smaller consumers, BPC said. The price is valid for the fourth quarter of the year. "Exceptionally strong demand caused by tight availability of product is the major driver of the price growth," BPC said. Copyright ? 2011 Dow Jones NewswiresRead more: to buy BASF fertilizer assets for €700 million: 27 September, 2011, 12:14Edited: 27 September, 2011, 12:14 Russian fertilizer producer Eurochem has announced that it will outlay an estimated €700 million to purchase European fertilizer assets from German chemical giant BASF.The company says it will buy the BASF assets in Antwerp, Belgium plus the 50% stake in the PEC Rhin joint venture between BASF and France’s Total controlled by BASF.EuroChem says the purchase will add approximately 2.5 million tonnes of fertilizer production capacity.EuroChem CEO, Dmitry Strezhnev, says the purchase marks a major European expansion for the company.“The acquisition of BASF’s fertilizer complex in Antwerp is a major milestone in EuroChem’s growth strategy to enhance its exposure to the European market. These high-quality assets will provide us with added-value production coupled with strategic logistics positioning. The same would be true for the 50% share of PEC-Rhin.”The transaction, which has been approved by the EuroChem board, is expected to be completed during 1Q 2012. Dr. Andreas Kreimeyer, member of the Board of Executive Directors of BASF SE, said the plants will benefit from the fertilizer focus of EuroChem.“Our very skilled team and the highly competitive plants will have a sustainable future and will create additional value with a strategic buyer whose core business is fertilizer,” 11:03?27/09/2011ALL NEWSRF’s several companies plan listing at Singapore exchange, September 27 (Itar-Tass) —— Several companies from Russia are planning their listing at the Singapore Stock Exchange next year.The plans were announced at the Russia-Singapore business forum on Tuesday, not only on the sidelines of the event, but during discussions in sections. However, no names of the companies were revealed.Most likely they will be companies with venture project, with some interesting research or enterprises involved in oil processing and logistics, a participant in the forum, Managing Partner of the Eurasia Capital Partners Sergei Man told Itar-Tass. His company is based in Hong Kong.He explained that the Singapore exchange, despite a rather modest level of capitalisation is a platform number one for issuers, working in the mentioned spheres.The exchange in Singapore is a recognised leader from the listing point of view for companies, involved in transport logistics, oil processing as well as chemistry companies and fertilisers, he explained.Man added that major Russian companies, working in the sector, have been using actively their headquarters in Singapore for their world trading.Singapore has an agreement with Russia on avoidance of double taxation, as well as with other major economies, he added.Written on September 27, 2011 at 5:32 am by Pauline ALROSA Revises Diamond Production for 2011Read more: ALROSA Revises Diamond Production for 2011 | DiamondNe.ws Under Creative Commons License: Attributionn?September 26, 2011, a?meeting of?ALROSA Supervisory Board took place in?Yakutsk.The Supervisory Board voted to?approve the adjusted consolidated budget and the adjusted investment budget of?OJSC ALROSA for 2011. The necessity to?adjust the budgets was conditioned by?the increased efficiency of?rough and po lished diamond sales, the changed parameters of?average annual exchange rate USD/RUB, as?well as?the decision made on?the level of?strategic investors’ involvement in?the projects of?OJSC ?Severalmaz? and OJSC ?GMK ?TIMIR?, and a?number of?other factors.The adjusted consolidated budget for 2011 provides for the following basic indexes by?ALROSA Group:—?diamond production?— 34,438 thousand carats;—?revenues from rough and polished diamond sales?— USD 5,015 mln.Based on?the ad justed consolidated budget, the net profit under RAS of?OJSC ALROSA has increased RUB 16,854.6 mln., and amounts to?RUB 27,396.8 mln., OJSC??ALROSA-NYURBA??— RUB 5,162.7 mln., and amounts to?RUB 8,503 mln., OJSC ?Almazy Anabara??— RUB 1,718.3 mln., and amounts to?RUB 3,424.0 mln., OJSC ?Severalmaz??— RUB 533.3 mln., and amounts to?RUB 19.6 mln.The Board took note of?the information ?On?the progress of?the Innovation Development Program of?OJSC ALROSA for the period 2011–2018? and approved the ?Innovation Development and Technological Modernization Program of?OJSC ALROSA for the period 2011–2018?.The Board Members heard the report on?purchases of?products, works (services) for the first quarter 2011 and instructed the Executive Committee of?the Company to?proceed with increasing the share of?purchases through open tenders and electronic trading platforms.The Supervisory Board endorsed the report on?the results of?issue of?7,364,965,630 ordinary registered?non-documentary?shares of?the Company of?RUB 0.5 par value (share placing?— conversion at?share splitting, the issue was registered by?the Federal Financial Markets Service of&nb sp;Russia on?August 25, 2011, the state registration number 1-03-40046-N).The Supervisory Board approved the decision to?invite a?strategic investor in?the project of?development of?iron ore deposits in?South Yakutia (OJSC ?GMK ?Timir?).The Coca-Cola Company and Coca-Coca Hellenic plan to invest $3bn in Russia in next five years September 27, 2011Event: According to Reuters, The Coca-Cola Company's (TCCC) CEO Muhtar Kent has announced plans to invest $3bn into Russia over the next five years. He made this statement at the opening of the company's new Rostov plant, located close to Sochi, the venue for the 2014 Winter Olympics. This will double the 1991-2011 investments of the Coca-Cola System (TCCC and its bottler partners), which included the construction of 12 of the company's own plants and the acquisition of three juice producers: Multon, Nidan and Aquavision. We think that, aside from expanding production and distribution capabilities, Coca-Cola System investment will include M&A in new food categories, and stronger investment in consumers. Action: Positive for Coca-Cola Hellenic Bottling (CCH) shares, in our view. Rationale: We believe CCH will be participating in these investments in Russia, but will also benefit from TCCC's stronger investment in consumers. Russia now contributes 15% to CCH revenues and before 2010 was showing double-digit annual growth. With a population of 142mn and low soft-drink consumption per capita, Russia represents a significant opportunity among EM. CCH is currently trading at 5.7x EV/EBITDA and 10.1x P/E 2012E, which is a 29-43% discount to EM/DM peers. Roman IvashkoCoke flags $3 billion Russian investment : 27 September, 2011, 12:27Edited: 27 September, 2011, 12:27 Coca Cola has flagged an estimated $3 billion in investment into Russia, over the next 5 years, at the opening of a $120 million plant in Rostov.The company says the move will help it to counter the growing presence of strategic rival Pepsi in the Russian market, with the Rostov-on-Don plant opened ahead of demand stemming from the 2014 Sochi Olympics. Coca-Cola chief executive Muhtar Kent said at the opening ceremony the plant was a symbol of Coke’s commitment to the Russian market."Today's plant opening once again highlights our intention to put long-term investments in place within the Russian economy."Kent added that he saw strong growth in the Russian market. "We believe that the Russian market, the Russian consumer, the Russian economy is going to grow, is going to be a dynamic?– a very dynamic?– environment," and adding "Our system is part of the fabric of Russia's economic development and we continue to invest in Russia to create jobs and stimulate growth across our supply chain,"The move by Coca Cola comes just days after it unveiled plans for $4 billion in investment into the Chinese market, and in the wake of Pepsi’s $3.8 billion purchase of Russian drinks producer Wimm-Bill-Dann in 2010.? The Rostov plant is expected to produce 450 million litres of drinks and juices per year.Aeroflot posts 1H 2011 net profit of $376.8 million: 27 September, 2011, 12:05Edited: 27 September, 2011, 12:05 Russian air flagship, Aeroflot, has posted a 1H 2011 net profit of $376.8 million under IFRS.The bottom line is up from the 1H 2010 net profit of $17.5 million, with 1H 2011 EBITDA rising 20.5% year on year to $330.9 million, as 1H revenues rose 26.4% year on year to $2.344 billion.Aeroflot general director Vitaly Savelyev said the results reflected a company focus on boosting efficiency, coupled with rising passenger numbers. Aeroflot also noted the impact of its sales of stakes in a range of former subsidiaries.Sept. 26, 2011, 1:40 p.m. EDT Russian firm to put up to $26 mln in Cleveland Bio Tess Stynes Cleveland BioLabs Inc. CBLI +0.43% said Russian investment firm Rusnano will spend up to $26 million over four years to help fund a new company unit that will develop a portfolio of new preclinical drug candidates. Cleveland BioLabs President and Chief Executive Michael Fonstein said the venture "is in line with our strategy of creating separate, independently funded entities to develop our broad pipeline of drug candidates." Under the deal, set to close this month, Cleveland BioLabs will have an initial 55% stake in the new Panacela Labs Inc. unit, which will focus on five drug candidates, including several cancer treatments. The agreement follows a Russian Federation grant of $5 million last week to support research and clinical development at another Cleveland BioLabs cancer-drug unit called Incuron. Rusnano, formed through the March reorganization of state firm Russian Corp. of Nanotechnologies, will initially spend $9 million, which will be followed with more investments upon achievement of certain milestones and the attraction of new investments. Cleveland BioLabs initially will contribute $3 million to the venture. Cleveland BioLabs and Rusnano will also be granted warrants providing options to increase their investment after two and four years. Cleveland BioLabs, Roswell Park Cancer Institute, Cleveland Clinic Foundation and Children's Cancer Institute Australia will transfer intellectual property rights related to certain compounds to the unit. Shares closed Friday at $2.30 and were inactive premarket. The stock is down 68% this year. September 27, 2011, 8:21 AM GMTOnline Retailer Thrives in Russia’s Cash Society Ben RooneyAll over the streets of Moscow, you see glowing red displays with four sets of numbers on them. Driving with Maelle Gavet, the French-born CEO of Ozon, often described as Russia’s Amazon, I ask her what they are.“They are the currency prices,” she replies. Russians are very, very keen on cash. This is a cash society. Credit card penetration is low and trying to use one, you are left with the distinct impression that it is not really welcome.But if you are running an ecommerce site, like Ms. Gavet, handling cash is not very convenient.Throw into the mix that some 80% of customers pay cash on delivery and the fact that Ozon had to build its own? delivery infrastructure, and you can see why she employs 1,100 people — two-thirds of whom work in fulfillment.A look at the company’s website shows some of the problems that Amazon, for example, doesn’t have to worry about.In Russia, there is no tradition of home delivery. Instead goods are delivered to a pick-up point, from which customers can collect their products in their own time. But take the city of Novosibirsk, some 3,000 kilometers from Moscow and the country’s third city. It takes 6-7 days for goods to be delivered to one of 15 collection points.It was notable that the site was offering free delivery to anyone prepared to pay for their goods with a credit or debit card. For Ozon, not only is cash more expensive to handle, it also means a lag between ordering the goods and taking payment for them.Ms. Gavet, 33, recently closed a $100 million round of funding, most of which will be used to develop Ozon’s distribution network, which already features the largest ecommerce distribution center in Eastern Europe, a $3.5 million, 8,000-square-meter center in the Russian city of Tver.Would she think about spinning off the courier network to become its own company?“No,” she says quite emphatically. “We have to have our own network. If there were others we could rely on then perhaps we could do that, but in Russia you must never be in a position where you depend on just one other person.”Something else Amazon doesn’t have to worry about is manning a large call center operation. Russian customers like to conduct business over the phone, she says. So they have to provide the service.Although Ozon is old by Internet standards — it was founded in St. Petersburg some 13 years ago — it has only taken off in the last couple of years, she said.“It has taken time. I feel that it is only now that we are pulling away,” she says. “Russians are getting increasingly comfortable about conducting business online.”The Bentley tax: 27 September, 2011, 04:59Edited: 27 September, 2011, 05:02 Tatiana Zykova Businesses are ready to pay for a comfortable business environment?“Taxes on the rich should be higher, including a tax on consumption, real estate, and personal property.” This proposal, made by Prime Minister Vladimir Putin, is currently being actively discussed by experts who see it as one of the vectors of the country’s future tax policy. Moreover, today in the midst of budget deficits this policy is being chosen by many developed states. In the United States, as paradoxical as it may seem, the initiative to raise taxes on the rich and make the tax system fair was recently made by one of the legendary billionaires, Warren Buffett. His wealth is estimated at $50 billion by Forbes magazine.?? “Russian business also accepts this approach, but only in fair exchange for a comfortable investment climate in the country,” chairman of the Investment Policy Committee at the Commerce and Industry Chamber of Russia, vice president of Business Russia, Anton Danilov Danilyan, told Rossiyskaya Gazeta (RG). According to him, after a single property tax is introduced in Russia – something which has been discussed for a long time?– its rate could be considered over time, just as a gradual introduction of the progressive tax on the rich. At the same time, he stressed that a category of socially responsible wealthy people, who pay “enormous income tax rates” to regional and municipal treasuries by registering at the place of residence as tax agents-sole proprietors in small towns, has already emerged in Russia. “So far, there are no more than 10 such people in the entire country. But with an appropriate government policy, aimed at improving the business climate, there will be hundreds, and thousands of such people,” he argues.?????? Meanwhile, Russia is one of the few states that does not impose additional taxes on its wealthy citizens. So far, in the government-approved tax policies until 2012, for example, there are no plans to introduce a progressive tax on individuals. In Russia individuals are subject to a flat tax rate of 13%. The fact that the progressive tax rate is becoming “modern” was stated yesterday by the head of the State Duma Economic Policy and Entrepreneurship Committee, Yevgeny Fyodorov. He explained that the refusal to shift to progressive taxes has been caused by problems in establishing the domestic tax system, administration and tax collection. But now, when the tax system has been brought to order and the economy is stable, it is possible to switch to a differential tax collection. According to the MP, “if this had been done earlier, the budget would have endured losses, because the rich class would have simply fled from the country in terms of taxes”. “We would have crushed the tax system right away,” said Fyodorov.????? The director of the Institute of Economy at the Russian Academy of Sciences, Ruslan Greenberg, has repeatedly stated that Russia “does not deserve the current flat rate. Jusy 4% of Germany’s rich are generating 40% of the wealth in the country. And sooner or later, we will have to adopt this scenario.” In his opinion, this is especially true because it is much more difficult to avoid paying taxes with a progressive tax system than in the current “vertical” system.?? For now, experts prefer not to talk about any specific tax rates “for the rich”. “It is not about some threshold amounts, whether the tax will increase from a million or two million in income, but about establishing a clear dialogue between the leadership and the business sector, We are ready to pay more if we get the opportunity? to work better, be more competitive, and create jobs,” says Danilov-Danilyan. He then lists five of the key “exchange” opportunities, for which businessmen would calmly accept increased property and other forms of “wealth” taxes. These measures include, first, radical changes in Russia’s judicial law. Second is the application of the “grandfather clause” when conducting any type of investment projects. “That’s when, throughout the entire payback period, the government does not allow or impose any additional requirements in the form of higher taxes, additional fees, and legal barriers that negatively affect business plans,” explains Danilov-Danilyan. Third, which is crucial, is the government’s closer regulation of the appetites and actions of natural monopolies. “Take connecting to various power grids as an example. Today, as an additional ‘bonus’, power engineers are making exorbitant demands by telling companies to, for example, reconstruct the electrical substation, to which they will connect the new facilities. And for an investor, that’s an additional billion to billion and a half rubles without any guarantees,” says Anton Danilov-Danilyan.???????? There is another problem – taxes on dividends. Today, Russian individuals pay a dividend tax rate of 9%, and that is considering that the company is already paying an income tax. “In many countries, in order to make the investor feel comfortable, the lion’s share of returns on investment is not subject to taxation,” says RG’s interlocutor. Moreover, he draws attention to the fact that it would be practical to legally prescribe personal liability for law enforcement officers, directors, administrators, and state agencies, at whose fault a business had suffered some serious losses and whose charges were rejected in court. “This is necessary to make sure that, before filing a lawsuit against entrepreneurs, officials understand the personal implications of their actions. That’s how laws work in Great Britain, France, Abu Dhabi, and may other countries with a positive investment climate,” said Danilov-Danilyan.???????? Meanwhile, in February 2011, in the course of the discussion on the adjustment of insurance premiums and the general improvement of the tax system in Russia, the minister of economic development, Elvira Nabiullina, suggested reducing taxes on company operations in the mid-term and collecting most taxes from consumption, real estate, and personal property. According to Vladimir Nazarov, head of the Budget Federalism Laboratory at the Gaidar Institute of Economics, this is a sound idea. “Collecting fewer taxes on business earnings and reducing insurance premiums, while raising the income tax and balancing that with a single real estate tax is reasonable,” he notes. The problem is, he says, that a single real estate tax cannot quickly be introduced, and this process will stretch for over three years in Russia, if not more. That is true considering that there still isn’t a unified approach to the appraisal of homes, villas, and cottages, and the differentiation of benefits. Independent appraisals, the introduction of which is being proposed by the Ministry of Economic Development, will not, according to him, have the necessary impact on fiscal revenues. “Clearly, very independent experts could very independently appraise property,” he says with skepticism. According to the estimates made by experts at the Institute, even with a harsh administrative appraisal and the liquidation of preferences, introduction of this tax will bring the budget a maximum of 1% of the GDP and will not close all of the holes in the local budgets, as expected.??????????????? Meanwhile, when it comes to raising consumption taxes, in this case, the value added tax (VAT) rate should be changed, which is key in terms of the tax burden on consumption, and could become a more significant source of revenue for the budget. The excise tax should also be raised, says Nazarov. In the classic version, this tax category is divided into three subgroups: taxes on food products (sugar, salt), taxes on personal enjoyment products (tobacco, alcohol, coffee, beer), and other consumption taxes (petroleum products). This may include a luxury tax on expensive jewelry, art or furs.????? Background information During World War One, the State Duma adopted a law on the progressive taxation of citizens. This tax was collected on an individual’s annual income starting from 1,000 rubles, and highly-paid engineers, blue- and white-collar workers paid 90 rubles a month. Instead of being taxed at the rate of 12.5%, annual income exceeding 400,000 was subject to a fixed deduction of 120,000 rubles (basically a third). In March 1917, the provisional government raised the progressive tax rate ceiling to 30%. For enterprise owners, this tax, together with the military tax, amounted to 90% of revenues.Activity in the Oil and Gas sector (including regulatory)Oil export duty to be slashed 7% , 27.09.2011, Moscow 10:40:24.Russia's export duty on crude oil will fall to $411.40 per ton on October 1, down from the current $444.10, according to a resolution signed by Prime Minister Vladimir Putin and published today.??????The discount duty for some East Siberian fields and Lukoil's two fields in the Caspian Sea will fall to $204.50 per ton from October, down from $205.10 in September.??????The export duty on light and heavy oil products will be reduced to $271.50 per ton on October 1 from the current $297.50. The duty on gasoline exports will be decreased to $370.20 per ton from $399.70. 07:21?27/09/2011ALL NEWSGovernor calls for earliest possible commissioning of Sakhalin-3 project, September 27 (Itar-Tass) — Economy of the entire Far East will stand to gain from an earliest possible commissioning of the Sakhalin-3 offshore oil and gas project for full-scale commercial operations, Alexander Khoroshavin, the governor of Russia’s Far-Eastern Sakhalin region said Tuesday.He said it at the international conference titled ‘The Sakhalin Oil & Gas’, an annual event that has been held in Yuzhno-Sakhalinsk over the past six years.Prior to that, nine conferences in the series were held in London.“It’s extremely important to see how strongly the image of the Sakhalin region as a new international-scale center of oil and gas production has grown in the minds of the world community,” Gov Khoroshavin said, adding that this image is based on two projects – Sakhalin-1 and Sakhalin-2.Production of crude oil on Sakhalin’s shelf started in 1999 as part of Sakhalin-1 and in 2006 as part of Sakhalin-2.The Sakhalin-3 project embraces four blocks of shelf deposits – the Kirinsky, Veninsky, Ayashsky, and Eastern Odoptinsky. Forecasts put the size of hydrocarbon resources concealed there at around 700 million tons of crude and 1.3 trillion cubic meters of natural gas.These reserves are much bigger than the composite resource of both Sakhalin-1 and Sakhalin-2.At present, oil and gas deposits on the Sakhalin shelf are being developed by the Sakhalin Energy international company, which is the operator of the Sakhalin-2 project, and the U.S. company Exxon Neftegaz Ltd., the operator of the Sakhalin-1 project.The combined output of crude on the shelf is expected to stand at no less than 15 million tons in 2011.Four maritime platforms have been installed in the Sea of Okhotsk to extract oil and gas from the deposits underlying the sea floor. The hydrocarbons are also produced with the aid of inclination wells drilled from ashore.The projects continue developing. A foundation of a new giant platform is being built in the Russian Far-Eastern port city of Nakhodka for Exxon Neftegaz Ltd., and its upper deck has been commissioned to a South Korean company.This platform is due to come into operation on the Sakhalin shelf in 2014.Russian Sakhalin authorities mull second LNG plant by 2020 , Sakhalin Island (Platts)--27Sep2011/202 am EDT/602 GMTAn expected increase in gas production from the Sakhalin projects in Russia's Far East will make it expedient to build a second liquefied gas production plant in Sakhalin Island by 2020, apart from the planned expansion of the existing LNG capacities, Sakhalin governor Alexander Khoroshavin said Tuesday."We believe that with the start of gas production at the Sakhalin 1 and Sakhalin 3 projects it will be [a real possibility] to build a second LNG plant in Sakhalin Island, possibly on the western shore of the island near Ilinskoye," Khoroshavin said at the Sakhalin Oil and Gas conference.The governor provided no further details on the possible second plant.He did, however, reiterate local authorities' support for the construction of a third train at the existing LNG plant within the Sakhalin 2 project.The first step in expanding LNG capacities in the region could be the construction of the third train with a capacity of 5 million mt/year in the near future, he said.Russia's only LNG plant currently, with a total capacity of 9.6 million mt/year, was launched in 2009 as part of the Sakhalin 2 project.Earlier this month, the head of Gazprom's upstream department Vsevolod Cherepanov said Sakhalin 2 can produce an additional 4 Bcm/year that could be a source for the third train.Gazprom owns a 50% plus one share in Sakhalin 2. The other partners are Shell (27.5%), Japanese Mitsui (12.5%) and Mitsubishi (10%).Gazprom also expects to start production the Kirinskoye gas field, part of the Sakhalin 3 project, in 2012. SAKHALIN 1 GAS-MARKETING ISSUE Khoroshavin also expressed hope that a long-lasting issue on the marketing of future gas from the Sakhalin 1 project will be resolved by the end of this year."This year we must take the final decision to start gas production, which would increase economic efficiency of the project," he said, supporting Gazprom's push to get agreement on the issue by the end of the year, as expressed in June by Gazprom's deputy CEO Alexander Ananenkov.The ExxonMobil-led Sakhalin 1 project and Gazprom have been in talks over future gas sales since 2006, but have failed to reach an agreement, with price the key stumbling block.ExxonMobil holds a 30% operating stake in the project, along with Japanese consortium Sodeco (30%), India's ONGC (20%) and Russia's Rosneft (20%).ExxonMobil representatives have repeatedly said the Sakhalin 1 consortium is seeking the best price for its future gas and will start production only after a sale-purchase agreement is reached. OIL REFINERY Separately, Gazprom is considering building a refinery with capacity of up to 4 million mt/year on Sakhalin Island and may take the final "positive" decision on the issue next year, Khoroshavin said, speaking at the same event, which was organized by Adam Smith Conferences. "We expect Gazprom to take the positive decision on the construction of the refinery as soon as next year," he said.The refinery is to help meet demand for oil products in Sakhalin Island and other Russian far eastern regions, Khoroshavin said.Exports of oil products from the refinery are also possible, as foreign markets in the Asia-Pacific region are growing, he said.--Nadia Rodova, nadia_rodova@--Luciano Battistini, luciano_battistini@ENI, Rosneft In Talks On Black Sea, Libya Projects – Report -(Dow Jones)- Italy'sENI SpA (E) is in talks with OAO Rosneft ( ROSN.RS) to join the Val Shatsky project in the Black Sea, and may give the Russian state oil company access to projects in Libya, the Kommersant daily reports Tuesday, citing unnamed sources.ENI could replace U.S. oil major Chevron Corp. (CVX) and take a 33% stake in the project, the paper cited people close to the talks as saying. Rosneft is interested in joining ENI projects in Libya, they said, adding the talks could be completed by the end of the year.Chevron teamed up with Rosneft last summer, agreeing to pay for initial exploration of the Val Shatsky ridge in the Black Sea that contains more than 6 billion barrels of oil. But the U.S. company has since pulled out of the project amid disagreements over geological findings.Rosneft Chief Executive Eduard Khudainatov recently said both Exxon Mobil Corp. (XOM) and Total SA (TOT) were being considered for the project.Rosneft and ENI declined to comment. Newspaper Web site: kommersant.ru-By Moscow Bureau, Dow Jones Newswires; ????????????+7 495 232 9192?????? (END) Dow Jones Newswires 09-27-110329ET Copyright (c) 2011 Dow Jones & Company, IncRosneft pledges annual oil production of some 1,300 mln bbl by 2020 27/09/2011YUZNO-SAKHALINSK, September 27 (RIA Novosti)Russia's oil giant Rosneft plans to increase its annual oil production output to 160-180 million tons (1,170-1,320 mln bbl) per year by 2020, company's Vice President Gani Gilayev said on Tuesday.Gilayev said that Rosneft oil production in 2010 was estimated at 119.6 million tons and the company's future plans envisage an annual production of 132 million tons by 2015 and the subsequent increase of up to 160-180 million tons by 2020.He said the company intends to up its oil output by increasing production in Russia's Siberian and Far Eastern regions.September 27, 2011 09:26Rosneft tender at Malaya Purga results in price of 10,830-10,900 RUB/t. Sept 27 (Interfax) - Rosneft's (RTS: ROSN) tender at the Malaya Purga pipeline metering station resulted in a price of 10,830-10,900 rubles per tonne, InfoTEK told Interfax, citing market sources.However, the sale of oil for delivery in October on the Russian domestic market has not begun yet. Due to market and macroeconomic uncertainty, Rosneft's tender was postponed until September 26, with the deadline for bids at 1:00 p.m.The spread in settlement prices, based on the quotes for futures and dated quotes, is about 1,000 rubles per tonne: 10,800-11,850 rubles per tonne for Samotlor and 11,150-12,330 rubles per tonne for Malaya Purga.The price of 10,830-10,900 rubles per tonne at Malaya Purga therefore turns out to be lower than those calculated for futures. Meanwhile, TNK-BP's (RTS: TNBP) bid of 11,000 rubles per tonne at Samotlor, compared to these benchmarks, may turn out to be too high.The uncertainty on the market is due primarily to the steep drop in world oil prices, which in turn reduces the settlement price for oil on the Russian domestic market by 2,000 per day, analyst said. In these circumstances, they said, time favors the buyer. However, major Russian exporters, expecting lower export figures next month compared to settlement prices on the domestic market, will try to make up the lost export revenue by increasing sales on the domestic market. Supply is expected to far outweigh TEK also said the outlook for fuel oil after October 1 is currently putting the most downward pressure on crude prices.Oil quotes as of August 26, 2011Oil by pipeline (netback to Primorsk)Oil by pipeline (delivery in Russia )Delivery basisPayment termsQuote, RUB/tPayment termsQuote, RUB/tSamotlor100% deferral 30 days11789100% prepayment-Yuzhny Balyk100% deferral 30 days11911100% prepayment-Almetyevsk100% deferral 30 days12386100% prepayment-Malaya Purga100% deferral 30 days12240100% prepayment-Ukhta100% deferral 30 days12233100% prepayment-Usa100% deferral 30 days11984100% prepayment-Vp of(Our editorial staff can be reached at eng.editors@interfax.ru)Japanese investment in Russian E&P to continue to be crucial: METI official , Sakhalin Island (Platts)--27Sep2011/207 am EDT/607 GMTJapanese investments in Russia's oil and gas sector will continue to play a crucial role in meeting Japan's energy demand as Tokyo is eyeing expanded cooperation with Russia, a Japanese government official said Monday.Given the aftermath of the March earthquake in Japan, Russian exports of LNG played an important role in meeting domestic demand, Hisayoshi Ando, Director-General of the Natural Resources & Fuel Department of the Agency for Natural Resources and Energy at Japan's Ministry of Economy, Trade and Industry, or METI, said Monday, speaking at the 15th Sakhalin Oil and Gas conference.After the earthquake, Japan's additional LNG demand grew by 10 million mt/year, Ando said quoting statistics from the the Institute of Energy Economics, Japan, an energy research arm affiliated to METI. Japan is the biggest importer of LNG in the world. In 2010, Japan imported 70 million mt of LNG, which accounts to one third of the total LNG volume traded globally, he said.In 2010, Russian exports of LNG accounted for 8.5% of Japan's total LNG imports, of which the majority derived from Sakahlin 2, Ando said."The demand for LNG has increased sharply and will continue to be high in the mid- and long-term," Ando said."We don't see problems with LNG supplies in the near term but the earthquake has taught us that [we need] to take part in developing hydrocarbons reserves and we'll support our companies working in this direction," he said through a translator. And Japan hopes that cooperation with Russia will bring results in the future, he added.In particular, Japan hopes to complete a study for possible construction of a new LNG plant near the Russian far eastern city of Vladivostok by the end of the year, he said. SELF-DEVELOPED OIL AND GASJapanese oil and gas companies are increasingly investing in Russian oil and gas projects, Ando said adding that Japan will continue to be the biggest market for the Russian LNG.The government of Japan has set a target to double its current ratio of self-developed energy to around 20-40% by 2030, he said.The presence of Russia is growing in Japan's oil sector as well, Ando said."Last year, about 7% of oil imports were from Russia," Ando said. This includes oil imports from Sakahlin 1 and 2 as well as ESPO crude oil.And "just as we have been doing with Gazprom in the gas sector we are strengthening relations with Rosneft," he said. "We will further support Japanese companies working in upstream projects," he said.--Luciano Battistini, luciano_battistini@ --Nadia Rodova, nadia_rodova@The future’s black Natasha Doff at 26/09/2011 21:40Many companies working in Russia’s vast oil industry will see a healthy slice of their tax burden disappear from the end of this week when a long-awaited reform kicks in aimed at boosting investment in new oil fields and averting a drop in production of the country’s most valued resource.The tax reform, signed by Prime Minister Vladimir Putin in August, will raise export taxes on heavy products like fuel oil and cut them on light products such as diesel.Although Russia is currently the world’s biggest oil producer, most of its current production comes from brown fields, were output has reached a plateau and will soon fall into decline. The problem is not that the country lacks new reserves, but that investors lack incentive to conduct expensive exploration projects at new fields due to hefty tax burdens.Currently the government mops up some 72 percent of each dollar received from crude oil sales, according to VTB Capital investment bank. The rate, one of the highest in the world, is what makes the oil industry so profitable for the Russian government, which many analysts say has become unhealthily dependent on the black stuff.The International Energy Agency warned in a recent monthly oil report that Russia must “balance the need for higher tax revenues with the imperative to sustain investment in oil fields,” to avert an imminent decline in production.No long-term gains The new tax reform is expected to help sustain Russia’s current oil output levels of more than 10 million barrels/day for the next few years.The measure has been dubbed 60-66 since it unifies refined product export taxes at 66 percent of crude levy. The main beneficiaries will be TNK-BP, Rosneft and Lukoil, since they export large volumes of crude oil.But analysts say that while the measure will boost investment in the short-term, it is unlikely to prevent long-term declines in production.“The tax reform will likely prompt investment in the short term but it does not resolve the much bigger issue of oil taxation,” said Elena Savchik, oil and gas analyst at the Moscow-based Aton investment bank.“The industry faces wronglystructured taxes and the structure is not being changed by the tax reform. It has been simply relieved in the short-term.”In Savchik’s view the progress made by the 60-66 reform will be offset by a 3 percent increase in the mineral extraction tax by 2013 and the fact that the government is keeping export duties on gasoline high.Russia increased the export duty on gasoline to 90 percent (marginal rate of 59 percent) of the export duty on crude oil from May 2011 following a domestic gasoline deficit. Under the tax reform, the duty decreases to a marginal rate of 54 percent.Alexander Kirevnin, oil and gas analyst at VTB Capital, agrees that the reform does not go far enough to save Russia’s oil industry.“The reform will make the upstream sector more profitable due to a decrease in export duty, but not as profitable as is needed to start new green field projects,” Kirvnin told The Moscow News. “That said, companies will definitely have some free cash to invest in production.”A more productive scheme, analysts say, might be to follow Brazil’s example by delaying taxation on remote projects until the fields become profitable.Riding a black wave The main beneficiaries of the reform are naturally more optimistic. TNK BP CFO Jonathan Muir told the Reuters Investment Forum in Moscow earlier this month that the reform would boost the oil firm’s bottom line by $500-600 million per year, assuming oil prices average $75 per barrel.He said the boost would give the company, Russia’s number three oil firm, confidence to press ahead with major upstream investments.The company announced a few days later that it plans to invest $45 billion in exploration and production over the next decade to increase output, Bloomberg reported.“The new tax law lets the companies earn up to 45 percent more per barrel, which is quite a significant increase,” said Artyom Konchin, oil and gas analyst at UniCredit.“I think the Kremlin wants to see Russia stay at the top of the oil-producing countries list for the next 10-15 years and they will do whatever it takes for that to happen,” he added.Putin made a show of his backing of oil exploration projects last month by being present at the signing ceremony of a much-vaunted deal between U.S. firm ExxonMobil and Rosneft to drill for oil and gas in the Russian Arctic. Analysts say the deal is likely to be granted tax breaks since it will be exploring new fields offshore in difficult conditions.Moving abroad But other companies in the sector are running out of incentives to invest in Russian oil fields. Russian firm Lukoil is increasing its investments in countries with more favorable tax regimes.The firm is one of the few Russian oil firms whose production, coming from mature west Siberian fields, has begun to fall. It expects to source more than one fifth of its oil production from non-Russian fields by 2020.While not suffering quite so much on the Russian market, TNK-BP is also looking to move some of its exploration funding abroad.“We are now seeing more and more companies looking overseas because the structure of the Russian tax system is so poor,” said Savchuk, of Aton.“Lukoil has long been critical of the system and is now looking abroad for better options.”10:47?27/09/2011ALL NEWSBaltic Shipyard launching first pollution-free oil tanker. PETERSBURG, September 27 (Itar-Tass) — River routes and port harbours are included in the navigation routes of ecologically clean large-tonnage oil tanker that will be launched at the Baltic Shipyard on Tuesday.The tanker will be the first of four environmentally friendly vessels of Project 2734. They are designed for transportation of petroleum products with vapour flash point of 60 degrees Celsius and higher, including those requiring heating. It is important for oil transfer to onshore terminals during the cold season. The vessel’s navigation area includes inland waterways and marine areas for non-propelled cargo vessels where the thickness of broken ice does not exceed 20 cm. The vessel has double-wall sides that in the event of the hull damage prevents damage to the tanks and contamination of waters.OAO Baltic Shipyard is one of the largest enterprises of the Russian shipbuilding industry. The company specialises in building icebreakers and ice-class vessels (with atomic propulsion unit and diesel), heavy-tonnage vessels for the transportation of cargo, as well as warships. The plant produces a wide range of engineering products, power equipment. Is a supplier of nonferrous and steel castings.The Baltic Shipyard (Baltiysky Zavod, formerly Shipyard-189) is one of the oldest shipyards in Russia. It is located in St. Petersburg in the south-western part of the Vasilyevsky Island. It is one of the three shipyards active in St. Petersburg. Together with the Admiralty Shipyard it has been responsible for building a large part of Imperial Russian battleships as well as Soviet nuclear powered icebreakers. Currently it is specialising in merchant ships while the Admiralty yard specialises in diesel-electric submarines.The shipyard was founded in 1856 by the St. Petersburg merchant M. Carr and the Scotsman M. L. MacPherson. It subsequently became the Carr and MacPherson yard. In 1864 it built two monitors of the Uragan class. In 1874 the shipyard was sold to Prince Ochtomski. In 1934 the shipyard started work on the three prototypes for the Soviet S class submarine, based on a German design produced by the Dutch company Ingenieurskantoor voor Scheepsbouw.Baltic Shipyard in St. Petersburg is a complete ship building company incorporating metallurgical production, marine machine fabrication and construction, power engineering, woodwork production, engineering department, and research and development division. This shipyard has three slipways for launching all categories of ships. This Russian shipyard builds commercial vessels, and assembles nuclear powered warships and icebreakers, chemical carriers, dry bulk commercial vessels, and special duty liners. It is a manufacturer of marine products like boilers, blades, shafts, fittings, and heat exchangers. It also builds modular cabins and makes furniture.Baltic Shipyard also builds ships, especially warships on order from foreign governments or private enterprises. Some such orders include: 3 Frigates, the Trishul, Talwar, and Tabar were built for the Indian Navy in 2002. These warships were fitted with Kashtan anti-aircraft assembly, Club-N anti ship missile line, Puma -Universal artillery set-up. In 2002, Rosoboronexport arms exporting company signed a deal with Baltic Shipyard for manufacturing 2 destroyers for China. Baltic Shipyard was converted into a joint stock company in 1997 with UNEXIM Bank as the major shareholder.TMK May Spend $3 Billion on Pipe Production in U.S., Russia 27, 2011, 3:45 AM EDT(Updates with debt interest rate in final paragraph.)Sept. 27 (Bloomberg) -- OAO TMK, the world’s largest maker of oil and gas pipes by output, may spend as much as $3 billion this decade on projects in Russia, Romania and the U.S. as rising profit drives technology upgrades and growth.“We’ve spent about $2.5 billion on modernization so far and about $2 billion more on acquiring new assets to expand the business,” billionaire owner Dmitry Pumpyansky said in an interview. TMK plans to invest about $300 million a year by 2020 to maintain those assets and develop new pipe products, he said.The new spending proposal coincides with the completion of TMK’s $2.5 billion investment program, begun six years ago, and follows a fourfold jump in first-half profit. TMK and European competitors including France’s Vallourec SA are investing in more-advanced products as oil and gas companies explore in remoter and deeper fields to counter declining output elsewhere.TMK must keep spending to remain the “industry leader,” boost earnings and increase its market value, while expanding into “advanced-quality” pipes, Pumpyansky said in Moscow on Sept. 22. The company, which has plants in Russia, Romania, Kazakhstan and North America, will spend 25 percent to 30 percent of annual investment in the U.S., he said.Ipsco DealThe Moscow-based pipemaker bought 10 U.S. factories previously held by Ipsco Inc. in 2008 for $1.2 billion. TMK Ipsco is now the U.S.’s No. 3 pipe producer, and counts Exxon Mobil Corp. and Royal Dutch Shell Plc among its clients, Pumpyansky said. TMK Ipsco got a $260 million credit line from Wells Fargo & Co. this year.The move “opened the door to cheap American financing,” the billionaire said, adding that U.S. interest rates are 200 to 300 basis points lower than in Russia. TMK will “seriously expand” in North America and invest in producing “premium connection” pipes and tubes for offshore drilling, he said.A shift into the offshore drilling market would pit TMK against Vallourec and Luxembourg-based Tenaris SA, according to Olga Danilenko, a Moscow-based analyst at VTB Capital.“Only Tenaris and Vallourec are able to supply pipes for offshore oil and gas drilling so far,” Danilenko said by telephone on Sept. 23. “If TMK succeed in it, it will be a sort of revolution.”Premium-connection seamless pipes command higher prices because they enable oil and gas producers to drill deep and at pressure, Danilenko said, adding that the U.S. market is particularly lucrative. Even ordinary seamless pipes sell for 25 percent more in the U.S. than in Russia, she said.No DeclinePipe demand isn’t suffering from the global market turmoil, according to Pumpyansky, who said financial market instability “isn’t based on fundamentals” and demand in Russia has gained 30 percent this year. In the U.S., active oil rigs totaled a record 1,886 as of July 1, Baker Hughes Inc.’s Rig Count shows.“We conservatively expect the U.S. market to increase by 5 to 10 percent next year,” Pumpyansky said. Pipe stockpiles in the country will last only five months, compared with as long as 10 months in 2008, before the economic crisis sapped production, he said.Goldman Sachs Group Inc. said in April that gas consumption in the U.S. may surge by as much as 20 billion cubic feet a day in the next 20 years because of demand from the power generation and transport industries. The U.S. has become the world’s largest gas producer, largely as a result of a boom in shale gas development, whose extraction methods have sparked concern among groups including the Environmental Protection Agency.U.S. Shale“We don’t see any real intention of the U.S. government to ban shale gas drilling, which could have an effect on us,” Pumpyansky said, adding that high-quality pipes can remove the risk of environmental pollution from shale extraction, which uses water, sand and chemicals to fracture gas-trapping rocks.TMK expects to raise the share of its U.S. and other foreign units in total sales. While Russia currently accounts for 60 percent of revenue, TMK is seeking to get about half from overseas assets in the “near future,” Pumpyansky said.The company reported a fourfold increase in first-half net income on Sept. 2, beating analyst estimates, and confirmed previous guidance on growth in sales volumes.Full-year earnings before interest, tax, depreciation and amortization will exceed levels in 2007 to 2008, Pumpyansky said, adding that TMK’s Ebitda margin is closing the gap on Vallourec. Ebitda reached $996 million in 2008, and analysts expect 2011 earnings of $1.2 billion, according to the average of 15 estimates compiled by Bloomberg.TMK hopes to increase dividend payments and won’t need to sell shares to pay down debt, Pumpyansky said. Debt was $3.84 billion at the end of March, which implies a ratio of net debt to Ebitda of 3.3. TMK targets a ratio of 1.5 to 2, he said.“The average interest rate we pay on our debt now is 7.33 percent, and we plan to improve our debt profile further.”--Editors: Amanda Jordan, Stephen CunninghamTo contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@To contact the editor responsible for this story: John Viljoen at jviljoen@GazpromGazprom boosts 2011 borrowing and investment plan BSTMOSCOW, Sept 27 (Reuters) - Russian gas giant Gazprom increased its 2011 investment programme by 36 percent to 1.277 trillion roubles ($39.4 billion) thanks to rising gas sales and prices due to new projects development, the company said on Tuesday. Analysts have criticised the company for excessive spending saying it should be more cost-effective. Total investments this year are set to rise by 460.1 billion roubles compared with the previously drafted plan. Gazprom also said it has increased external borrowing plan by 60 billion roubles to 150 billion roubles for this year to fund current investment programme and refinance existing loans. ($1 = 32.421 Russian Roubles) (Reporting by Vladimir Soldatkin; Editing by Andrey Ostroukh) Gazprom to raise gas supplies to South Korea to 12 bcm 27/09/2011YUZHNO-SAKHALINSK, September 27 (RIA Novosti)Russia's gas giant Gazprom will increase its planned gas supplies to South Korea via North Korea to 12 billion cubic meters from 10 bcm, Gazprom Deputy Chairman and head of exports Alexander Medvedev said on Tuesday."The volume of gas supplies to South Korea will rise to 12 bcm," Medvedev told reporters, adding gas supplies to North Korea to produce electricity were still under discussion.Gazprom plans to start gas supplies to South Korea, the world's second largest liquefied natural gas (LNG) buyer after Japan, from 2017. Current sales amount to 1.5 billion tons of LNG shipped from Vladivostok.Gazprom has considered the construction of a pipeline through North Korea to bring gas to South Korea from the Sakhalin-Khabarovsk-Vladivostok transportation system in Russia's Far East but the idea was put on hold as relations between the two Koreas deteriorated. The two countries have not yet signed a peace treaty since the end of the Korean War in 1953 and are technically at war.But earlier in September, Gazprom and North Korea signed a memorandum of understanding and agreed to set up a working group on the pipeline project.The gas pipeline is expected to be over 1,100 km long, including 700 km to run across North Korea. Gazprom is in talks with the two countries to implement the project.Korea Gas Asks Russia to Take Responsibility for Fuel Supply 26 September 2011BloombergSEOUL — Korea Gas Corporation, the?world's biggest buyer of?liquefied natural gas, is asking Russia to?take "all responsibility" for?planned natural-gas supplies through a?pipeline to?be built across the?divided peninsula.When drawing up the?sales agreement, Kogas will seek to?include a?clause to?make Russia fully responsible for?the gas supply, Choo Kang Soo, CEO, told lawmakers at?a parliamentary hearing in?Seoul on?Monday. If pipeline supplies are disrupted, Kogas may ask Russia to?send LNG cargoes, he said.Gazprom, Russia's gas export monopoly, signed preliminary agreements this month with Kogas and?the North Korean government to?build a?pipeline that would carry as much as 10 billion cubic meters of?gas to?the peninsula. North Korean leader Kim Jong Il met with President Dmitry Medvedev in?Siberia late last month.Plans to?build the?pipeline are realistic, South Korean President Lee Myung Bak said in?an interview last week, less than a?year after a?deadly North Korean artillery attack on?a disputed island.Russian gas supplies to?Kogas may start in?January 2017, Choo told the?lawmakers. The?project with Russia may be worth more than $100 billion, including $90 billion of?gas purchases over 30 years and?$3 billion of?pipeline network construction, South Korea's Knowledge Economy estimated in?2008.Gas from?Russia will be considered as surplus when estimating the?country's total requirement of?the fuel, Choo said. This will ensure that sales to?domestic consumers are not affected if pipeline supplies are disrupted, he said.The?project is "a win-win for?everyone involved," Lee said in?an interview in?New York on?Friday. Lee's support for?the pipeline may signal an?easing of?tensions between South and?North Korea, which have not signed a?peace treaty following their 1950-53 civil war.Kogas aims to?import an?additional 10.2 million metric tons of?gas a?year in?2015, on?top of?agreed volumes, under multiyear purchase contracts with other countries, according to?documents submitted to?lawmakers. Inventory of?the fuel at?Kogas may reach 2.8 million tons at?the end of?September and?drop to?an estimated 2.3 million tons at?the end of?this year, the?documents showed.LNG is gas chilled to?liquid form for?transportation by?ship to?destinations not linked by?pipeline.Lee rolled back his predecessor’s “Sunshine Policy” of engaging with North Korea when he came to office in 2008, arguing that the policy rewarded Kim’s regime for provocative behavior. The pipeline project may prove a turning point for inter-Korean relations, Hong Joon Pyo, chairman of Lee’s ruling Grand National Party, told lawmakers Sept. 7. He estimated that North Korea could earn about $100 million a year to rebuild its economy, while South Korea might reduce its natural gas prices by about 30 percent. Russia is offering North Korea gas, electricity and railway projects to induce the regime to restart nuclear nonproliferation talks. The two Koreas in July agreed to try to revive the talks, and late last month Lee named a new minister, Yu Woo Ik, to lead North Korean affairs in his government.Read more: The Moscow Times Russia, China agree gas price formula but no final deal yet 27/09/2011YUZHNO-SAKHALINSK, September 27 (RIA Novosti)Moscow and Beijing have agreed on a price formula for Russian gas exports, the biggest stumbling block for signing a deal between the world's largest gas producer and the world's fastest-growing energy market, and a deal could be signed soon, a Gazprom official said on Tuesday, but admitted that prices had still not been finally agreed."The price formula agreed, there is still the issue of what is the starting point of that formula,"? Russian gas export monopoly Gazprom Deputy Chairman Alexander Medvedev said.Gazprom wanted the same returns on deliveries to China as to Europe, which sources said meant a price gap of at least $100 per thousand cubic meters between Gazprom and China's negotiating positions."We hope very much that the event expected by everyone - the signing of the contract to supply gas - is in the offing," Medvedev said, but did not elaborate.Negotiations between the world's largest gas producer and the world's quickest growing energy market were constructive and the parties were listening each other, he said.Talks over what would be a massive energy deal have been going on since the two sides signed a framework agreement in 2009. Meanwhile, China has been diversifying its sources of supply.12:45?27/09/2011ALL NEWSGazprom plans to sign contract with China in 2011, September 27 (Itar-Tass) —— Gazprom plans to sign a contract with the China National Oil and Gas Corporation (CNOGC) on gas deliveries to China before the end of 2011, Gazprom Deputy Chairman of the Board Alexander Medvedev said in his report at a conference entitled “Oil and gas of Sakhalin—2011”, which opened here on Tuesday.“Difficult talks have been going on for a long time, but perceptible headway has been made. A contract on the purchase and sale of gas with China may be signed before the end of 2011. After that the building of the needed transport capacities may be started, and gas deliveries may begin late in 2015,” Medvedev said.According to his information, China’s market of natural gas has a high development potential. China’s demand for gas is expected to exceed the figures for Europe by 2030. “This opens up concrete prospects for Russian gas deliveries even if China succeeds in the production of shale gas. At present Gazprom is analysing a possibility of the pipeline export of natural gas by two corridors, with its total amount standing at 68 billion cubic metres,” he continued.Medvedev stressed that in comparison with Gazpfom’s projects in the Far East South Stream looks as a project with average investments. “The growth of the demand for natural gas in the eastern part of Russia and in the Asian countries permits Gazprom to globalize trade and to reduce its dependence on individual clients,” he added. On the whole, Gazprom forecasts that by 2030 it will account for some 13 per cent of the gas market of North Eastern Asia (the figure for the European market is over 30 per cent), said a representative of the Gazprom press service.Medvedev and CNPC (China National Petroleum Corporation) Vice President Wang Dongjin held another round of talks on the terms of gas deliveries to China in Alma Ata last weekend. “During the talks the parties updated their commercial proposals on the terms of the deliveries of natural gas from Russia to China,” the press service official continued.The agreement on strategic partnership between Gazprom and CNPC, which provides, among other things, for the analysis of problems connected with the organization by Gazprom of gas deliveries to China, was signed on October 14, 2004. In June 2009 the Russian and Chinese governments signed a memorandum of understanding on cooperation in the gas sphere. In October 2009 Gazprom and CNPC signed a framework agreement on the main terms of gas deliveries from Russia to China. In December 2009 the Basic Terms of Gas Deliveries were signed. Agreement on the gas price has not been reached at the numerous rounds of talks so far. Gazprom and CNPC created a joint coordinating committee, which tackles problems connected with the organization of Russian gas deliveries to China and holds commercial talks on the gas price.September 27, 2011 10:28Russia, China agree price formula for gas supplies. Sept 27 (Interfax) - Gazprom (RTS: GAZP) and its Chinese partners have agreed on a price formula for Russian gas supplies to China."A formula has already been agreed on, but a question mark remains over the benchmark for the formula," Alexander Medvedev, the Russian gas giant's deputy CEO, told reporters.Pr(Our editorial staff can be reached at eng.editors@interfax.ru) 27.09.2011Gazprom And CNPC Update Mutual Business Proposals On Gas Supply Terms And Conditions September 24, 2011 Alma-Ata hosted another round of commercial negotiations between Gazprom and China National Petroleum Corporation (CNPC).Gazprom's delegation was led by Alexander Medvedev, Deputy Chairman of the Company's Management Committee, while Wang Dongjin, Vice President of CNPC headed the Chinese delegation.During the meeting the parties updated the mutual business proposals on terms and conditions for natural gas supply from Russia to China.Copyright 2011, Gazprom. All rights reserved. ................
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