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Russia 110720Basic Political DevelopmentsItar-Tass news outlook for Wednesday, July 20. MOSCOW – The operation to lift the Bulgaria boat that sank in the Volga River continues. MOSCOW – Prime Minister Vladimir Putin will chair a regular meeting of the Governmental Commission on Control over Foreign Investments in the Russian Federation. The Commission is to consider 13 applications filed by foreign investors from Austria, Germany, the Netherlands, Cyprus, and the United States on deals in various spheres. MOSCOW — Russian Foreign Minister Sergei Lavrov meets with his Libyan counterpart Abdul Ati al-Obeidi to discuss settlement of the situation in Libya. RABAT – Libyan leader Muammar Gaddafi said on Tuesday he will not bow under the pressure of NATO air strikes and the rebellion against him, saying his loyalists would recapture lost territory. BEIRUT – Syrian troops and militiamen loyal to President Bashar al-Assad killed at least ten people in attacks in the city of Homs on Tuesday. VOLGOGRAD — First Deputy Prime Minister Viktor Zubkov will make a working trip to Volgograd Region, where he will take a final decision as to whether he will place himself at the head of the regional list of United Russia party members at State Duma elections. MOSCOW – Russian Foreign Minister Sergei Lavrov leaves here for Indonesia on Wednesday to take part in ministerial meetings within the scope of Russia-ASEAN and East Asia summits (EAS) machinery, due to be held on Bali Island from July 21 to 22. HANOI – Foreign Ministers of the ASEAN member states meet on Bali to focus on the regional integration. BEIJING – China opened officially its part of the Bolshoi Ussuriysky Island on the Amur River for tourist trips. LONDON – House of Commons Speaker John Bercow said that the session may be extended in connection with the News Of The World phone hacking scandal. Prime Minister David Cameron is expected to make a statement in the parliament. PARIS – France’s President Nicolas Sarkozy and Germany’ s Federal Chancellor Angela Merkel will hold a working meeting in Berlin on the eve of the EU summit to coordinate positions over the situation in the euro zone. OMSK – Omsk will host the Soviet cinema festival dedicated to the 110th anniversary of Igor Ilyinsky. YEKATERINBURG – An exhibition devoted to the history of the Urals’ stone-cutting, lapidary and jewelry arts opens in Yekaterinburg. SAMARA – Russia’s biggest carmaker AVTOVAZ marks its 45th jubilee. MOSCOW – Patriarch Kirill of Moscow and All Russia is to arrive in Saransk, the capital of the Republic of Mordovia, for a pastoral visit. KALUGA – The third international youth camp Dialogue will open at the cultural and educational tourist centre Etnomir in the Borovsk district of the Kaluga Region.Itar-Tass news digest for Wednesday, July 20 : 1. MOSCOW — The operation to fix the first two of the four wide metal slings under the hull of the sunken Bulgaria boat to lift her to the surface has been launched, spokesman for the operational headquarters for lifting the vessel Timur Khikmatov told Itar-Tass. “At 08:00, Moscow time, the operation to fix the two slings under the stern of the Bulgaria ship was started,” he said. “Preparations for fixing two more slings under the fore body continue.” MOSCOW – Russian President Dmitry Medvedev adopted amendments to several laws envisaging the creation of a unified federal database on the activity of corporate entities, the Kremlin press service said. MOSCOW — Prime Minister Vladimir Putin will chair a regular meeting of the Governmental Commission for Control over Foreign Investments in the Russian Federation on Wednesday. The Commission is to consider 13 applications filed by foreign investors from Austria, Germany, the Netherlands, Cyprus, and the United States on deals in the areas of petrochemistry, transport infrastructure, mineral development, telecommunications and manufacturing of specialized equipment. MOSCOW — Russian Minister of Foreign Affairs Sergei Lavrov meets with his Libyan counterpart Abdul Ati al-Obeidi here on Wednesday. "Lavrov's meeting with the Secretary of the General People's Committee for Foreign Liaison and International Cooperation will be held at the request of the Libyan side," an official at the Russian Foreign Ministry has told Itar-Tass. VOLGOGRAD — First Vice-Premier Viktor Zubkov will make a working trip to Volgograd Region, where he will take a final decision as to whether he will place himself at the head of the regional list of United Russia party (URP) members at State Duma elections. While in Volgograd, Zubkov is expected to meet the authors of the application and hold a series of consultations with representatives of industrial, transport, and social welfare enterprises, as well as and those of the agricultural sector and the timber industry. MOSCOW — Russian Minister of Foreign Affairs Sergei Lavrov leaves here for Indonesia on Wednesday to take part in ministerial meetings within the scope of Russia-ASEAN and East Asia summits (EAS) machinery, due to be held on Bali Island from July 21 to 22. Main attention will be devoted to problems concerning non-proliferation of weapons of mass destruction, including a nuclear-free zone in Southeast Asia, as well as counteraction to international terrorism, the nuclear problem on the Korean Peninsula, and the situation in the Middle East and North Africa. MOSCOW — Patriarch Kirill of Moscow and All Russia is to arrive in Saransk, the capital of the Republic of Mordovia, on Wednesday for a pastoral visit. This will be the Patriarch's first arrival in Mordovia, the land of his childhood years, in his capacity as Primate of the Russian Orthodox Church (ROC). SAMARA — The AVTOVAZ car factory, a major automaker of Russia, marks its 45th jubilee on Wednesday. Nowadays, AVTOVAZ is one of the largest automakers of Europe. AVTOVAZ share on Russia's car market is over 25 percent. KHABAROVSK — The Republic of Yakutia in the Far East remains a problem area from the viewpoint of efforts to grapple with forest fires. By Wednesday morning, 21 forest fires are still raging in the republic on an area of over 8,600 hectares, an official at the forestry department for the Far Eastern Federal District has told Itar-Tass. BEIJING — China opened officially its part of the Bolshoi Ussuriisky Island on the Amur River for tourist trips. The first group of 150 tourists from China arrived on the island on Wednesday morning, the Xinhua news agency reported. The island was divided between Russia and China after the complete border demarcation between the countries under the treaty in 2008. DUSHANBE — A strong earthquake rocked residents of several regions in Tajikistan at midnight on Wednesday. The earthquake measured 6.2 points jolted north-eastern Tajikistan on the border with Kyrgyzstan, a source in the Dushanbe seismological station told Itar-Tass on Wednesday. The tremors made many residents in the Tajik capital leave their houses despite the nighttime. Meanwhile, no reports were made about the damages to the republican emergencies committee. WASHINGTON — An earthquake with a magnitude of 6.2 occurred at the border between Kyrgyzstan and Uzbekistan on Tuesday at 23: 35, Moscow time, the US Geological Service reported. The epicenter of the earth jolts was 42 km south-west of the Uzbek city of Ferghana, the administrative center of the region of the same name, while the focus of the temblor was at a depth of 9.2 km. There has been no word about any victims or damage. LONDON — Fitch Ratings has raised long-term credit rating of Russia’s Alfa-Bank to BB +. The corresponding report was released on global markets on Tuesday. The agency set the credit outlook of Alfa-Bank to “stable.” ST. PETERSBURG — The products of a new harvest, an attracting smell of fruit, honey and fresh bread will reign at the international agrarian and industrial show Agrorus-2011 in St. Petersburg on August 22-28. KRASNOYARSK — The firemen have put out 18 fires on 1,017 hectares in Siberia’s forests over the past day. However, another 22 forest fires on 1,013 hectares keep burning, a source in the regional emergencies centre told Itar-Tass on Wednesday. The hardest fire situation has emerged in the Kezhem district in north-eastern Krasnoyarsk Territory. Some 12 taiga fires on 812 hectares were reported there. The local authorities have announced an emergency. VORONEZH — A set of bells, recreated for installation in the bell tower of the Kronstadt Nautical Cathedral, has been sent out from here to St Petersburg on Wednesday. The bells were cast by the bellmakers of the Voronezh-based bell casting plant Vera. ST PETERSBURG — The Symphony Orchestra of St Petersburg Cappella leaves for Germany on Wednesday for a guest tour under the direction of its chief conductor, People's Artiste if Russia Alexander Chernushenko. The Orchestra will take part in festivities marking the 50th jubilee of twinned-city contacts between St Petersburg and Dresden. KALUGA — The third international youth camp Dialogue will open at the cultural and educational tourist centre Etnomir in the Borovsk district of the Kaluga Region on Wednesday. Panetta, Serdyukov discuss missile shieldRussia, US defence ministers discuss international security - Serdyukov congratulated the U.S. counterpart on his appointment to the post, a ministry report said. The ministers discussed international security issues, including the situation in Afghanistan, as well as military cooperation of the two agencies. Medvedev may meet with Ukrainian president on July 31 in Sevastopol - Russian President Dmitry Medvedev may visit Ukraine on July 31 and have a meeting with his Ukrainian counterpart Viktor Yanukovych in Sevastopol, the Sevastopol city council’s press service reported Tuesday.Leading Russian law firm enters Ukraine - Egorov Puginsky Afanasiev & Partners of Russia has announced its merger with Magisters, the law firm that had once advised then-Ukrainian Prime Minister Yulia Tymoshenko on natural gas contacts with Russia.Prime Minister of Kyrgyzstan starts out for Moscow - Supposedly, the head of the Kyrgyz Government will meet with his counterpart Vladimir Putin. Probably, they will speak about POL export to Kyrgyzstan: as it is known the republic experiences sharp shortage of AI-92 and AI-95 fuel for the past few days.Russian deputy foreign minister to meet with Kyrgyz president on July 22. - “A working visit of State Secretary – Deputy Foreign Minister Grigory Karasin to the Republic of Kyrgyzstan is due on July 22 for political consultations with Foreign Minister Ruslan Kazakbayev. Grigory Karasin will also meet with Kyrgyz President Rosa Otunbayeva,” the source said. RF-South Ossetia commission discusses investment program. - South Ossetian President Eduard Kokoity and Russian Minister for Regional Development Viktor Basargin took part in its session in Tskhinval.Lavrov to leave for Indonesia Wed to attend ministerial meetings. Mediator Russia hosts top Kadhafi diplomat - Foreign Minister Abdelati al-Obeidi will be the highest-ranking Gadhafi official to visit Moscow since the conflict with the rebels erupted and is expected to hold talks with his Russian counterpart Sergei Lavrov.Lavrov to meet his Libyan counterpart in Moscow Wed.. CDA MPs question RWE Gazprom deal - Christian Democrat MPs have asked economic affairs minister Maxime Verhagen to explain the implications of a possible deal between RWE and Gazprom, which could give the Russian state firm partial control of six Dutch power stations.Chinese shipbuilders build 75,000-t ship for FESCO. China opens its part of Bolshoi Ussuriisky Island for tourism. Putin to chair meeting of govt commission for control over foreign investments. - The commission will consider 13 applications lodged by foreign investments from Austria, Germany, the Netherlands, Cyprus and the United States in the areas of petrochemistry, transport infrastructure, mineral development, telecommunications and manufacturing of specialized equipment, the government press service said on Tuesday. RF govt panel to consider 13 applications from foreign investors. Russian defense industry trade unions ask Medvedev to outlaw purchase of armaments abroadViktor Zubkov to travel to Volgograd region Wed. - First Vice-Premier Viktor Zubkov will make a working trip to Volgograd Region, where he will take a final decision as to whether he will place himself at the head of the regional list of United Russia party (URP) members at State Duma elections. Contaminated meat from Paraguay found in Vladivostok - Nearly 100 tons of beef from Paraguay, infected with dangerous bacteria, have been ?found by specialists in the port of Vladivostok, Far East.Roo industry wants Russian marketRussian businessman shot dead in ColombiaWildfires rage in Siberia, summer camp evacuated18 forest fires on more than 1,000 ha put out in Siberia. Forest fires still raging in Yakutia. Khimki forest on fire (Part 2)Patriarch Kirill to make pastoral visit to Mordovia. Russia arrests ex-nuclear official 'for stealing research' - Yevgeny Yevstratov, who served as deputy general director of the Rosatom state nuclear corporation, oversaw a group that received some 50 million rubles ($1.7 million) in nuclear safety research assistance. "However, instead of doing their own research, the corporation's employees downloaded scientific material off the Internet and pretended this was their own know-how," an unnamed nuclear official told Russian news agencies.Rosatom ex-deputy chief detained on budget embezzlement suspicion. Mayor of second biggest city in AltaiTer resigns. - On July 13 the Biysk Vostochny District Court ruled Mosiyevsky guilty of abuse of office in ten episodes. The indictment says that the Biysk mayor made entrepreneurs make voluntary contributions to the city treasury for a permission to entrepreneurial activities. The court gave a suspended three-year sentence to the ex-Biysk mayor.Suspects in 2010 south Russia power plant blasts to go trialReuters PRESS DIGEST - Russia - July 20Russian election monitors which work with the Central Election Commission said on Tuesday they did not need international observers at the upcoming December parliamentary election.Russia's tycoon Oleg Deripaska has sold a 4.5 percent stake in his En+ to investment bank VTB Capital (VTBR.MM: Quote, Profile, Research, Stock Buzz) to pay back his debts to the state.Russia could make off-shore companies operating on its territory declare their beneficiaries.Novatek independent gas producer is interested in acquiring a 51 percent stake in Nortgas, Novatel's head of the board of directors Leonid Mikhelson says in an interview. The government is said to be considering the possibility of privatisation of Rostelecom long-distance telecoms.Russia's alcohol producer "Russian Standard" is close to signing a deal with India's United Spirits.Shareholders of the international Domodedovo airport prefer staying in the shadow to avoid raiders' attacks, according to the head of the board of directors of the company Dmitry Kamenshchik.Russia's Defence Ministry could buy 40 Sukhoi-30MK fighters, according to Irkut aircraft manufacturer.The total area hit by forest fires in Russia has reached 1.2 million hectares which is twice as much as last year, according to officials. RIA Russian Press at a Glance, Wednesday, July 20, 2011ITAR-TASS Russian press review. UPDATE 2-Russia offers Germany gas, rare earths to nudge China - Medvedev and Merkel discuss raw materials deal; Russia says has vast rare earths deposits; Moscow eyes German power market after nuclear exit Medvedev signals to voters from Germany - The uncertainty of the political future reduces the importance of the presidential initiatives By Aleksandra Samarina Putin's Plan - Lauren Goodrich at has written a well-reasoned piece that argues the former. I have been meaning to blog it for a couple weeks now (it came out on July 5 and is well worth a read), not least of all because it largely mirrors my understanding of the current political dynamic.A Lezginka dance department - The government will set up a structure to work with ethnic communities By Olga BolotovaA Russian tour de force - By Courtney WeaverChina Moves Into Russia's Zone - Former Soviet Union - James Brooke | MinskWhy is Obama giving Libya to the Russians? - By John BoltonA Near Miss - As Police Search for Culprits on Vandalism Charges, Darkei Shalom Resists Toughening Security Despite Repeated AttacksLebedev Interested in News of the WorldFormula 1 occupies the Kremlin -Ilya Sobolev, Rossiyskaya GazetaNational Economic TrendsUnemployment Down in June While Spending, Output Rise Gov't mulls selling entire state stake in Rostelecom Business, Energy or Environmental regulations or discussionsAvtovaz, Novatek and Gazprom: Russian Stock Market PreviewRussia's Severstal raises $500 mln via Eurobond-sourcesKazakhGold to buy 10% from Polyus Gold minorities UPDATE 1-Tele2 Q2 tops forecast, raises Russia outlookRating of Russia’s Alfa-Bank raised to BB+. Russia 2011 car sales seen rising up to 40 pct – PWCRenault and Nissan plan Avtovaz parts tie-upWhy Russian diamonds are so highly prized on world markets -Andrey Evplanov, Rossiyskaya gazetaMoscow law firms: new star in the east - by Stefan WagstylActivity in the Oil and Gas sector (including regulatory)EnBW offers Novatek 25 pct stake in VNG – paperRussia Mulls Freezing South Stream Gas Line – ReportGazpromGazprom yet to contact Turkey on Blue stream volume transfer: official - Turkey has received no official contact from Gazprom regarding a tender opened by state gas importer Botas to transfer 6 billion cubic meters/year from the 16 Bcm/yr it supplies via the Blue Stream pipeline to private sector companies, a spokesman for Turkey's energy ministry told Platts Tuesday.The Return of Gazprom - Written by John Daly------------------------------------------------------------------------------------------Full Text ArticlesBasic Political Developments10:30?20/07/2011ALL NEWSItar-Tass news outlook for Wednesday, July 20. Tass 65 Telephone: 8 (499) 791-00-25 Fax: 8 (499) 791-00-26 BULGARIA SHIP LIFTING OPERATION MOSCOW – The operation to lift the Bulgaria boat that sank in the Volga River continues. MEETING OF THE COMMISSION ON INVESTMENTS MOSCOW – Prime Minister Vladimir Putin will chair a regular meeting of the Governmental Commission on Control over Foreign Investments in the Russian Federation. The Commission is to consider 13 applications filed by foreign investors from Austria, Germany, the Netherlands, Cyprus, and the United States on deals in various spheres. LAVROV’S MEETING WITH LIBYAN FOREIGN MINISTER MOSCOW — Russian Foreign Minister Sergei Lavrov meets with his Libyan counterpart Abdul Ati al-Obeidi to discuss settlement of the situation in Libya. DEVELOPMENTS IN THE ARAB STATES RABAT – Libyan leader Muammar Gaddafi said on Tuesday he will not bow under the pressure of NATO air strikes and the rebellion against him, saying his loyalists would recapture lost territory. BEIRUT – Syrian troops and militiamen loyal to President Bashar al-Assad killed at least ten people in attacks in the city of Homs on Tuesday. ZUBKOV’S TRIP TO VOLGOGRAD VOLGOGRAD — First Deputy Prime Minister Viktor Zubkov will make a working trip to Volgograd Region, where he will take a final decision as to whether he will place himself at the head of the regional list of United Russia party members at State Duma elections. ASEAN MINISTERIAL MEETINGS MOSCOW – Russian Foreign Minister Sergei Lavrov leaves here for Indonesia on Wednesday to take part in ministerial meetings within the scope of Russia-ASEAN and East Asia summits (EAS) machinery, due to be held on Bali Island from July 21 to 22. HANOI – Foreign Ministers of the ASEAN member states meet on Bali to focus on the regional integration. CHINA – RUSSIA BEIJING – China opened officially its part of the Bolshoi Ussuriysky Island on the Amur River for tourist trips. THE UNITED KINGDOM – SCANDAL LONDON – House of Commons Speaker John Bercow said that the session may be extended in connection with the News Of The World phone hacking scandal. Prime Minister David Cameron is expected to make a statement in the parliament. FRANCE – GERMANY PARIS – France’s President Nicolas Sarkozy and Germany’ s Federal Chancellor Angela Merkel will hold a working meeting in Berlin on the eve of the EU summit to coordinate positions over the situation in the euro zone. CULTURE OMSK – Omsk will host the Soviet cinema festival dedicated to the 110th anniversary of Igor Ilyinsky. YEKATERINBURG – An exhibition devoted to the history of the Urals’ stone-cutting, lapidary and jewelry arts opens in Yekaterinburg. IN RUSSIAN REGIONS SAMARA – Russia’s biggest carmaker AVTOVAZ marks its 45th jubilee. MOSCOW – Patriarch Kirill of Moscow and All Russia is to arrive in Saransk, the capital of the Republic of Mordovia, for a pastoral visit. KALUGA – The third international youth camp Dialogue will open at the cultural and educational tourist centre Etnomir in the Borovsk district of the Kaluga Region.11:19?20/07/2011ALL NEWSItar-Tass news digest for Wednesday, July 20 : 1. Tass 106 MOSCOW — The operation to fix the first two of the four wide metal slings under the hull of the sunken Bulgaria boat to lift her to the surface has been launched, spokesman for the operational headquarters for lifting the vessel Timur Khikmatov told Itar-Tass. “At 08:00, Moscow time, the operation to fix the two slings under the stern of the Bulgaria ship was started,” he said. “Preparations for fixing two more slings under the fore body continue.” MOSCOW – Russian President Dmitry Medvedev adopted amendments to several laws envisaging the creation of a unified federal database on the activity of corporate entities, the Kremlin press service said. MOSCOW — Prime Minister Vladimir Putin will chair a regular meeting of the Governmental Commission for Control over Foreign Investments in the Russian Federation on Wednesday. The Commission is to consider 13 applications filed by foreign investors from Austria, Germany, the Netherlands, Cyprus, and the United States on deals in the areas of petrochemistry, transport infrastructure, mineral development, telecommunications and manufacturing of specialized equipment. MOSCOW — Russian Minister of Foreign Affairs Sergei Lavrov meets with his Libyan counterpart Abdul Ati al-Obeidi here on Wednesday. "Lavrov's meeting with the Secretary of the General People's Committee for Foreign Liaison and International Cooperation will be held at the request of the Libyan side," an official at the Russian Foreign Ministry has told Itar-Tass. VOLGOGRAD — First Vice-Premier Viktor Zubkov will make a working trip to Volgograd Region, where he will take a final decision as to whether he will place himself at the head of the regional list of United Russia party (URP) members at State Duma elections. While in Volgograd, Zubkov is expected to meet the authors of the application and hold a series of consultations with representatives of industrial, transport, and social welfare enterprises, as well as and those of the agricultural sector and the timber industry. MOSCOW — Russian Minister of Foreign Affairs Sergei Lavrov leaves here for Indonesia on Wednesday to take part in ministerial meetings within the scope of Russia-ASEAN and East Asia summits (EAS) machinery, due to be held on Bali Island from July 21 to 22. Main attention will be devoted to problems concerning non-proliferation of weapons of mass destruction, including a nuclear-free zone in Southeast Asia, as well as counteraction to international terrorism, the nuclear problem on the Korean Peninsula, and the situation in the Middle East and North Africa. MOSCOW — Patriarch Kirill of Moscow and All Russia is to arrive in Saransk, the capital of the Republic of Mordovia, on Wednesday for a pastoral visit. This will be the Patriarch's first arrival in Mordovia, the land of his childhood years, in his capacity as Primate of the Russian Orthodox Church (ROC). SAMARA — The AVTOVAZ car factory, a major automaker of Russia, marks its 45th jubilee on Wednesday. Nowadays, AVTOVAZ is one of the largest automakers of Europe. AVTOVAZ share on Russia's car market is over 25 percent. KHABAROVSK — The Republic of Yakutia in the Far East remains a problem area from the viewpoint of efforts to grapple with forest fires. By Wednesday morning, 21 forest fires are still raging in the republic on an area of over 8,600 hectares, an official at the forestry department for the Far Eastern Federal District has told Itar-Tass. BEIJING — China opened officially its part of the Bolshoi Ussuriisky Island on the Amur River for tourist trips. The first group of 150 tourists from China arrived on the island on Wednesday morning, the Xinhua news agency reported. The island was divided between Russia and China after the complete border demarcation between the countries under the treaty in 2008. DUSHANBE — A strong earthquake rocked residents of several regions in Tajikistan at midnight on Wednesday. The earthquake measured 6.2 points jolted north-eastern Tajikistan on the border with Kyrgyzstan, a source in the Dushanbe seismological station told Itar-Tass on Wednesday. The tremors made many residents in the Tajik capital leave their houses despite the nighttime. Meanwhile, no reports were made about the damages to the republican emergencies committee. WASHINGTON — An earthquake with a magnitude of 6.2 occurred at the border between Kyrgyzstan and Uzbekistan on Tuesday at 23: 35, Moscow time, the US Geological Service reported. The epicenter of the earth jolts was 42 km south-west of the Uzbek city of Ferghana, the administrative center of the region of the same name, while the focus of the temblor was at a depth of 9.2 km. There has been no word about any victims or damage. LONDON — Fitch Ratings has raised long-term credit rating of Russia’s Alfa-Bank to BB +. The corresponding report was released on global markets on Tuesday. The agency set the credit outlook of Alfa-Bank to “stable.” ST. PETERSBURG — The products of a new harvest, an attracting smell of fruit, honey and fresh bread will reign at the international agrarian and industrial show Agrorus-2011 in St. Petersburg on August 22-28. KRASNOYARSK — The firemen have put out 18 fires on 1,017 hectares in Siberia’s forests over the past day. However, another 22 forest fires on 1,013 hectares keep burning, a source in the regional emergencies centre told Itar-Tass on Wednesday. The hardest fire situation has emerged in the Kezhem district in north-eastern Krasnoyarsk Territory. Some 12 taiga fires on 812 hectares were reported there. The local authorities have announced an emergency. VORONEZH — A set of bells, recreated for installation in the bell tower of the Kronstadt Nautical Cathedral, has been sent out from here to St Petersburg on Wednesday. The bells were cast by the bellmakers of the Voronezh-based bell casting plant Vera. ST PETERSBURG — The Symphony Orchestra of St Petersburg Cappella leaves for Germany on Wednesday for a guest tour under the direction of its chief conductor, People's Artiste if Russia Alexander Chernushenko. The Orchestra will take part in festivities marking the 50th jubilee of twinned-city contacts between St Petersburg and Dresden. KALUGA — The third international youth camp Dialogue will open at the cultural and educational tourist centre Etnomir in the Borovsk district of the Kaluga Region on Wednesday. /Itar-Tass Panetta, Serdyukov discuss missile shield 20/07/2011MOSCOW, July 20 (RIA Novosti)Russian Defense Minister Anatoly Serdyukov and his U.S. counterpart Leon Panetta have discussed issues of international security and the proposed European missile defense shield.Serdyukov also invited Panetta to pay an official visit to Moscow during the telephone conversation, a Russian Defense Ministry statement said.Russia and NATO agreed to cooperate on the so-called European missile defense system at the Lisbon summit in November 2010. NATO insists there should be two independent systems that exchange information, while Russia favors a joint system with full-scale interoperability.Russia also demands legally binding guarantees that NATO missile defense systems will not be directed against it.11:22?20/07/2011ALL NEWSRussia, US defence ministers discuss international security. Tass 85 MOSCOW, July 20 (Itar-Tass) — Russian Defence Minister Anatoly Serdyukov and U.S. Defence Secretary Leon Panetta had a telephone conversation on Wednesday, in which they discussed international security and missile defence, the Russian Defence Ministry reports. Serdyukov congratulated the U.S. counterpart on his appointment to the post, a ministry report said. The ministers discussed international security issues, including the situation in Afghanistan, as well as military cooperation of the two agencies. The Russian defence minister brought up the issue of missile defence. The sides reached an agreement to continue bilateral cooperation. “Anatoly Serdyukov invited Leon Panetta to pay a working visit to Moscow,” the ministry reported. Medvedev may meet with Ukrainian president on July 31 in Sevastopol Staff ReportKIEV, July 19 - Russian President Dmitry Medvedev may visit Ukraine on July 31 and have a meeting with his Ukrainian counterpart Viktor Yanukovych in Sevastopol, the Sevastopol city council’s press service reported Tuesday.Medvedev is expected to arrive in Sevastopol, the naval base for Russian Black Sea Fleet in Crimea, to take part in celebration of Russia’s Naval Day, the press service reported.The office of Yanukovych in Kiev on Tuesday did not answer phone calls to confirm the report.Yanukovych is currently in Crimea working from his summer residence on the Black Sea, and is not expected to be back to Kiev until the middle of August, people familiar with the issue said.Leading Russian law firm enters Ukraine Staff ReportKIEV, July 19 – A leading Russian law firm thought to be associated with Russian Prime Minister Vladimir Putin announced its merger Tuesday with a major Ukrainian company, creating the largest law firm in the former Soviet Union.Egorov Puginsky Afanasiev & Partners of Russia has announced its merger with Magisters, the law firm that had once advised then-Ukrainian Prime Minister Yulia Tymoshenko on natural gas contacts with Russia.“This merger is unprecedented for our market,” Dmitry Afanasiev, the chairman of Egorov Puginsky Afanasiev & Partners, said in a statement. “We are a step ahead of any national or international law firm in size, market penetration and regional coverage in Russia and the CIS.”The surprise merger comes at a time when Tymoshenko has been facing a major legal challenge during a trial for allegedly exceeding authority while negotiating the Russia gas agreement in January 2009.Serhiy Vlasenko, Tymoshenko’s top lawyer and part of her legal defense team, was a partner at Magisters in 2006 through the end of 2008.Yevhen Korniychuk, the first deputy justice minister in the Tymoshenko government, was also a partner at Magisters.Magisters for years was an appointed legal advisor helping Naftogaz Ukrayiny, the national oil and gas company, handle international agreements. The firm lost its lucrative contract with Naftogaz immediately after the Tymoshenko government had been toppled in March 2010. Shortly afterwards, the law firm’s offices were raided by prosecutors seeking documents relating to the operations of Naftogaz.“We are determined to bring new value to our clients through this merger,” Afanasiev said. “And last but not the least, the new partners do like each other and we intend to enjoy working together.”Egorov Puginsky Afanasiev & Partners, or EPA&P, is the largest and perhaps the most powerful legal company in Russia with many attributing her power to alleged connections with Putin.Nikolai Egorov, the founding partner of EPA&P, is thought to be a friend and a classmate of Putin back from the time they had studied together at a law school in St. Petersburg.The close connections between EPA&P and the Russian government were underscored in specific assignments performed by the law firm. For example, EPA&P defended two Russian spies arrested on charges of assassinating Chechen leader Zelimkhan Yandarbiyev in Qatar in February 2004.The merger comes amid speculations that the Tymoshenko trial may shed light on alleged role of Putin during his negotiations with Tymoshenko ahead of the controversial gas agreement.Prosecutors accuse Tymoshenko of exceeding her authority while negotiating and signing the gas agreement that had set Russian gas prices for Ukraine at a level higher than on average in Europe.The 10-year gas agreement also re-shaped the system of natural gas supplies to Ukraine.As part of the agreement, Russia agreed to eliminate RosUkrEnergo, a Swiss-registered natural gas trader co-owned by Gazprom and by Ukrainian billionaire Dmytro Firtash, a Tymoshenko foe.RosUkrEnergo was replaced with Gazprom, which had become the only gas supplier to Ukraine.Firtash is thought to be one of the key financial sponsors of President Viktor Yanukovych and is thought to have significant clout in the current government.Vlasenko, asked on Tuesday whether Tymoshenko planned to summon Putin and Gazprom CEO Alexei Miller to the court in Ukraine to testify, said this was unlikely.“Most likely there will be no reason to talk about the witnesses you have mentioned,” Vlasenko said at a press conference responding to a question from reporter.EPA&P, which has 220 lawyers and 16 partners, was reported to gave revenue 97.2 million euros, or $137.8 million, in 2010, according to The Lawyer European 100.Magisters, which has about 100 lawyers and 11 partners across the CIS, was reported to have revenue at $26 million. The new firm will have more than 300 lawyers and 27 partners in servicing clients through offices in Moscow, St Petersburg, Kiev, Minsk, Astana and associate offices in London and Washington, D.C. (tl/ez)Prime Minister of Kyrgyzstan starts out for Moscow[20.07.2011 11:46]Prime Minister of Kyrgyzstan Almazbek Atambaev has started out for Moscow today, they in the Government informed 24.kg news agency.However, the aim of Atambayev’s unscheduled visit to the Russian capital is unknown yet.Supposedly, the head of the Kyrgyz Government will meet with his counterpart Vladimir Putin. Probably, they will speak about POL export to Kyrgyzstan: as it is known the republic experiences sharp shortage of AI-92 and AI-95 fuel for the past few days.Politologists assume Atambayev’s visit to Moscow correlates with the start of the presidential race. It is obvious for everyone that the Prime Minister will run for the presidency. It is not ruled out that the favorite of the forthcoming race want to enlist Kremlin’s support.23:10?19/07/2011ALL NEWSRussian deputy foreign minister to meet with Kyrgyz president on July 22. Tass 322 MOSCOW, July 19 (Itar-Tass) —— Russian Deputy Foreign Minister Grigory Karasin will pay a working visit to Kyrgyzstan on July 22 to meet with Kyrgyz President Rosa Otunbayeva, a source at the Russian Foreign Ministry said on Tuesday. “A working visit of State Secretary – Deputy Foreign Minister Grigory Karasin to the Republic of Kyrgyzstan is due on July 22 for political consultations with Foreign Minister Ruslan Kazakbayev. Grigory Karasin will also meet with Kyrgyz President Rosa Otunbayeva,” the source said. 11:58?20/07/2011ALL NEWSRF-South Ossetia commission discusses investment program. Tass 60 TSKHINVAL, July 20 (Itar-Tass) — The Russian-South Ossetian intergovernmental commission discussed late on Tuesday the implementation of the investment program of assistance to social and economic development of South Ossetia for 2011. South Ossetian President Eduard Kokoity and Russian Minister for Regional Development Viktor Basargin took part in its session in Tskhinval. The Russian minister stressed that South Ossetia enters the period of post-war development and “its independence from Georgia in supplies of electricity and natural gas has been practically ensured”. “For the first time in the past 40 years, repairs of underground communications began, and street lighting has been on in the streets and squares of Tskhinval for already more than a year. At the moment, post-war emergency restoration of the economy and social sphere in the republic has been practically completed, and the stage of transition to onward development begins. Mechanisms of restoration needed in a critical post-war situation are becoming a thing of the past,” he said. Some changes were introduced in the Investment Program, and the sides also considered issues of preferences in bilateral trade, among other issues. Russia plans to channel in South Ossetia 6.81 billion roubles this year for the implementation of the Investment Program. The republic received the first tranche of 1.45 billion roubles on June 2. The next session of the commission is scheduled for the beginning of October. It will he held in Moscow. 02:32?20/07/2011ALL NEWSLavrov to leave for Indonesia Wed to attend ministerial meetings. Tass 5 MOSCOW, July 20 (Itar-Tass) — Russian Minister of Foreign Affairs Sergei Lavrov leaves here for Indonesia on Wednesday to take part in minsiterial meetings within the scope of Russia-ASEAN and East Asia summits (EAS) machinery, due to be held on Bali Island from July 21 to 22. Main attention will be devoted to problems concerning non-proliferation of weapons of mass destruction, including a nuclear-free zone in Southeast Asia, as well as counteraction to international terrorism, the nuclear problem on the Korean Peninsula, and the situation in the Middle East and North Africa. Analysts point out that, apart from the political component, an economic dialogue is also developing actively between Russia and ASEAN countries which view the RF as one o key players in Southeast Asia. In 2010, RF-ASEAN trade turnover ran at $10,500 million, growing by 60 percent since 2006. A Russian Foreign Ministry official recalled that this year will see the15th jubilee of cooperation between Russia and ASEAN. "As a result of the minsiterial meeting, the sides are to adopt a Joint Statement of the Ministers of Foreign Affairs on the occasion of the15th jubilee of dialogue partnership. The Statement is to map out additional joint steps towards further interaction, including that in the interests of refinement of the architecture of security and cooperation in the Asia-Pacific Region (APR)," the Ministry official pointed out. Within the scope of an EAS ministerial meeting, the sides will discuss matters aimed at preparing the 6th summit of EAS which is to be held on Bali Island from November 17 to 19 within the framework of ASEAN annual top-level arrangements. "Those present at the minsiterial meeting are also to analyze joint programmes for energy, finances, education, health care,t he prevention of emergencies, and elimination of their aftermath," the Russian Ministry official said. The EAS machinery, which was brought into being in 2005 on the initiative of ASEAN and aimed at strengthening peace, stability, and economic prosperity in the APR, now brings together ten ASEAN countries, as well as Australia, India, China, New Zealand, the Republic of Korea, the Russian Federation, the United States, and Japan. Russia officially joined this forum (together with the US) in October 2010. "Russia views EAS as an important factor in the fashioning of an all-embracing, balanced, and open architecture in the APR, commensurate with the present-day challenges to security," the Russian Foreign Ministry official pointed out. Mediator Russia hosts top Kadhafi diplomat July 20, 2011 09:49 AMRead more: (The Daily Star :: Lebanon News :: ) MOSCOW: Russia Wednesday was to host Libyan leader Moammar Gadhafi’s foreign minister in Moscow as it presses ahead with mediation efforts to end the conflict between his regime and rebel forces.Foreign Minister Abdelati al-Obeidi will be the highest-ranking Gadhafi official to visit Moscow since the conflict with the rebels erupted and is expected to hold talks with his Russian counterpart Sergei Lavrov.His visit was revealed in a statement by a Russian Foreign Ministry official to state news agencies a day earlier but formal details of the meetings have yet to be announced.Russia backed the U.N. resolution that opened the way for Western military airstrikes against Gadhafi targets but has since expressed fury with the duration of the campaign and accused the West of taking sides in a civil war.Along with the African Union, Moscow has positioned itself as a potential mediator in the crisis and President Dmitry Medvedev’s envoy has held talks in both Tripoli and the rebel stronghold of Benghazi.“We will continue to search for a compromise,” Medvedev said Tuesday while on a visit to Germany. “In my opinion it is reachable.”Medvedev has strongly backed Western calls for Gadhafi to quit but Russia has also denied speculation it could be ready to offer the Libyan leader sanctuary.Meanwhile, the pro-Gadhafi Libyan ambassador to Moscow rejected the idea that Wednesday’s meetings could be aimed at finding a formula for Gadhafi to quit power.“The political future of our country is an internal matter of Libya,” Amir al-Garib told the Moskovskie Novosti newspaper in an interview. “Not one foreign state has the right to interfere in our affairs.”“I assure you that the leader of the Libyan revolution Moammar Gadhafi has no intention of leaving the state and will not discuss any proposals about this.”He said that the main aim of al-Obeidi’s visit to Moscow was “finding peace.”Read more: (The Daily Star :: Lebanon News :: ) 01:24?20/07/2011ALL NEWSLavrov to meet his Libyan counterpart in Moscow Wed.. Tass 3a MOSCOW, July 20 (Itar-Tass) — Russian Minister of Foreign Affairs Sergei Lavrov meets with his Libyan counterpart Abdul Ati al-Obeidi here on Wednesday. "Lavrov's meeting with the Secretary of the General People's Committee for Foreign Liaison and International Cooperation will be held at the request of the Libyan side," an official at the Russian Foreign Ministry has told Itar-Tass. "The meeting will be held within the framework of Russia’s assistance to the efforts being made by the African Union and the United Nations with a view to putting an end to the bloodshed in Libya and to reaching a political settlement (of the situation) there." On Tuesday, Sergei Lavrov once again reaffirmed that Russia disagrees that the Transitional National Council is recognized as the only legitimate representative of the Libyan people. Moscow regards the Council as one of the parties to talks. The Minister also emphasized, "Russia maintains contacts with Tripoli and Benghazi", urging them to "take a constructive position, (manifesting) responsibility, and sit down at the negotiating table on the basis of mediatory proposals put forward by the African Union and the UN". CDA MPs question RWE Gazprom deal 20 July 2011Christian Democrat MPs have asked economic affairs minister Maxime Verhagen to explain the implications of a possible deal between RWE and Gazprom, which could give the Russian state firm partial control of six Dutch power stations.They want to know if the deal means Gazprom could eventually end up controlling the power stations which are owned by Essent, now part of RWE. They also want to know if Dutch law gives sufficient protection against any eventual Russian state intervention.RWE and Gazprom are setting up a joint venture which will include power plants in the Benelux, Germany and Britain.The two companies hope the deal will be finalised in the next three months.RWE has emphasised it is a purely financial deal and that it will remain responsible for the operational side. 'Our power stations will continue to be managed by Essent staff,' Essent's CEO Peter Terium told the FD.12:14?20/07/2011ALL NEWSChinese shipbuilders build 75,000-t ship for FESCO. Tass 99 VLADIVOSTOK, July 20 (Itar-Tass) — Chinese shipbuilders from the city of Zhangjiagang have built for the Far Eastern Shipping Company (FESCO) a motor ship with a deadweight of 57,000 tonnes that was named FESCO Saratov. It is a bulk freighter. The Saratov’s acceptance by Russian specialists was held at Qingshan Shipyard on Wednesday, the shipyard’s press office reported. FESCO Saratov is the first of four bulk carriers that the Far Eastern Shipping Company is building at Qingshan Shipyard. It is planned that by the end of this year and early next in the FESCO will accept three more bulk carriers, increasing its fleet to 52 vessels with the total deadweight of more than 1 million tonnes. Over FESCO’s more than 130-year history, it will be the 910th vessel owned by the company, and a second vessel with the name Saratov. The first Saratov steamship was built in 1891 in Newcastle (UK) and worked on a regular line between Odessa and Vladivostok. The modern bulk carrier FESCO Saratov has a length of almost 190 metres, a draft of 12.8 metres, the volume of the vessel’s five holds is 71,500 cubic metres. The new bulk carrier will be equipped with four electric hydraulic cranes with the capacity of 30 tonnes each. After the acceptance ceremony the ship will immediately go to work, in several days the FESCO Saratov vessel is expected in Japan for loading limestone with the destination to Hong Kong. FESCO is a Russian company, founded in the 19th century in Vladivostok that operates a fleet of sea vessels, trucks, and railroad vehicles, and associated intermodal ports. FESCO has quite a number of international services in the Pacific Ocean, including services to and from teh People’s Republic of China, Republic of China (Taiwan), Hong Kong Special Administrative Region, Korean Republic, Japan, Vietnam, Singapore, Malaysia, Indonesia, Thailand, India as well as Canada and the Continental United States. FESCO Transport Group has also services within the CIS and the Eastern Europe by rail service. FESCO’s fleet of sea vessels includes five large icebreakers, three ro-ro vessels, twenty-seven container vessels, six ice-breaking cargo vessels, twelve bulk-carriers, eleven timber-ships, and four supplier vessels. FESCO PLC - base company of FESCO Transportation Group - is Russia's 3rd largest ship-owning company and the largest non-oil cargo carrier. FESCO fleet operates in almost every part of the World Ocean. Today FESCO's container lines link ports of the USA (both East and West coasts), Canada, South-East Asia, Korea, Japan, China, Vietnam and North-West Europe (Baltic countries, Poland, Germany, Finland, etc.) with each other and with European and Far Eastern ports of Russia. FESCO is one of the main carriers in the Far East basin of the Pacific. Its fleet can provide cargo transportation in ports with limited navigation period, including cargo operations over a beach. In 2006 FESCO's fleet made 60 percent of coastal and 40 percent of international container shipping in the Far East. FESCO is the biggest operator of Russia’s icebreaking fleet. Strengthened ice-class vessels and icebreakers not only carry cargoes, but also provide ice escorting to other vessels in remote areas of the Arctic and Antarctic. All of the company's vessels fully meet the international standards of safety and quality. In accordance with the requirements of the International Ship and Port Facility Security Code (ISPS Code), each vessel is equipped with an automatic identification system. Today FESCO Transportation Group is the largest integrated private company, providing wide range of transportation services and logistical solutions. It combines advantages of own maritime rail and motor transportation, stevedore service in own port's terminals in the biggest ports of Russia and CIS countries, as well as wide net of representatives all over the world. The Group’s business assets include various types of modern, fast and safe vessels, own park of diversified rolling stock, own main-line and diesel-locomotive shunters, freightliners, container equipment, water surface and on-land terminal complexes. 08:45?20/07/2011ALL NEWSChina opens its part of Bolshoi Ussuriisky Island for tourism. Tass 52 BEIJING, July 20 (Itar-Tass) —— China opened officially its part of the Bolshoi Ussuriisky Island on the Amur River for tourist trips. The first group of 150 tourists from China arrived on the island on Wednesday morning, the Xinhua news agency reported. The island was divided between Russia and China after the complete border demarcation between the countries under the treaty in 2008. On Tuesday, the authorities in the north-eastern Chinese border province Heilongjiang announced that they had launched a border checkpoint, at which all visitors to the island are to pass a special security check-up. Chinese citizens need a special permit, which is issued by the border service in the Fuyuan Province, to visit the island. On October 14, 2008, Russia and China have completed the border demarcation on the Bolshoi Ussuriisky and Tarabarov islands near Khabarovsk. Under the intergovernmental agreement the Tarabarov Island became China’s Yinlong Dao and Bolshoi Ussuriisky was divided into two parts. Its western part, which was passed to China, is called Heixiazi now. Its eastern part belongs to Russia. Currently China is creating actively the tourist infrastructure of its part of the island. China is considering various variants for the use of this territory. China is planning to build a 35-kilometer-long ring road and to create a free trade zone and to build an airport. Meanwhile, the Heilongjiang authorities noted that the environmental protection will be prioritized in the development of a tourist zone. 22:17?19/07/2011ALL NEWSPutin to chair meeting of govt commission for control over foreign investments. Tass 310 MOSCOW, July 19 (Itar-Tass) —— Prime Minister Vladimir Putin will chair a meeting of the Governmental Commission for Control over Foreign Investments in Russia on Wednesday, July 20. The commission will consider 13 applications lodged by foreign investments from Austria, Germany, the Netherlands, Cyprus and the United States in the areas of petrochemistry, transport infrastructure, mineral development, telecommunications and manufacturing of specialized equipment, the government press service said on Tuesday. The prospective deals include the acquisition of stakes in the Nizhny Novgorod and Novosibirsk airports, the Vanino commercial seaport, the Mikheyevsky mining and ore dressing plant and a number of telecom companies. The commission will consider the application of the French Total company for acquiring assets in the Yamal SPG public joint stock company. Total ranks one of the world’s four leaders in the production of gas and oil. It is prospecting and developing the Yuzhno-Tambeikoye gas condensate field in Russia on the Yamal Peninsula with the appraised reserves of 1.3 trillion cubic meters of gas. The prospective project will involve one of the world’s leaders not only in the development of a promising but complex gas province but also in the construction of Russia’s second liquefied natural gas plant. LNG is a product with the substantial potential on foreign markets. The commission controls foreign investments in economic entities of strategic importance for national defense and security. Russian strategic plants are of big interest for foreign investors. The Russian Federal Antimonopoly Service is considering 219 applications for the acquisition of such assets. The Federal Antimonopoly Service will inform the commission about measures taken to lower administrative barriers, to improve the investment climate and to draw investments in the Russian economy. 00:36?20/07/2011ALL NEWSRF govt panel to consider 13 applications from foreign investors. Tass 2a MOSCOW, July 20 (Itar-Tass) — Prime Minister Vladimir Putin will chair a regular meeting of the Governmental Commission for Control over Foreign Investments in the Russian Federation on Wednesday. The Commission is to consider 13 applications filed by foreign investors from Austria, Germany, the Netherlands, Cyprus, and the United States on deals in the areas of petrochemistry, transport infrastructure, mineral development, telecommunications and manufacturing of specialized equipment, the government press service announced. The prospective deals include the acquisition of stakes in the Nizhny Novgorod and Novosibirsk airports, the Vanino commercial seaport, the Mikheyevsky mining and ore dressing plant and a number of telecomm companies. The Commission will also consider, in particular, the application of the French Total company for acquiring assets in the Yamal SPG (LNG) public joint stock company. Total ranks one of the world’s four leaders in the production of gas and oil. It is prospecting and developing the Yuzhno-Tambeiskoye gas condensate field in Russia on the Yamal Peninsula with the prospected reserves of 1.3 trillion cubic meters of gas. The prospective project will involve one of the world’s leaders not only in the development of a promising but complex gas province but also in the construction of Russia’s second liquefied natural gas plant. LNG is a product with the substantial potential on foreign markets. The purpose of the Commission is to exercise control over foreign capital investments in economic entities that are of strategic importance in ensuring the defence and security of the country. Russian strategic enterprises are of great interest to foreign investors. Two hundred and nineteen applications on deals concerning the assets of such enterprises are currently under consideration at FAS (Russian acronym for Federal Antimonopoly Service). During Wednesday's session, FAS will brief Commission members on measures aimed at relaxing administrative barriers, at improving the investment climate and at attracting investments in the Russian economy. RT News line, July 20Russian defense industry trade unions ask Medvedev to outlaw purchase of armaments abroad unions from the Russian defense industry have sent a collective letter to President Medvedev and Prime Minister Putin, asking them to outlaw the purchase of military equipment from abroad. The letter, cited by Kommersant daily, claims that the situation with wages at Russian military plants is catastrophic, with payments that are low and often delayed. The ship-building industry is especially desperate, authors of the letter claim. While workers at the French wharfs where Mistrals ships are built on average receive wages of 160,000 rubles (some $5,300), employees of the Russian wharfs receive wages that are at least five times lower. In June, Russia signed a $1.72 billion deal for the purchase of two Mistral ships from France.01:49?20/07/2011ALL NEWSViktor Zubkov to travel to Volgograd region Wed. Tass 4 VOLGOGRAD, July 20 (Itar-Tass) — First Vice-Premier Viktor Zubkov will make a working trip to Volgograd Region, where he will take a final decision as to whether he will place himself at the head of the regional list of United Russia party (URP) members at State Duma elections. An official at the First Vice-Premier's secretariat has recalled that Zubkov decided to visit Volgograd after he received, at the beginning of last week, an application from the residents of the region with a request to head the regional URP list. While in Volgograd, Zubkov is expected to meet the authors of the application and hold a series of consultations with representatives of industrial, transport, and social welfare enterprises, as well as and those of the agri-industrial sector and the timber industry. Zubkov will be accompanied in the trip by a widely representative delegation comprising the Ministers of Regional Development, Health and Social Development, Industry and Trade, Economic Development, the leaders of Federal agencies for fishery, forestry, and the executives of the Rosselkhozbank (agriculture) and the RosAgroLeasing Company. Contaminated meat from Paraguay found in Vladivostok 20, 2011 06:03 Moscow TimeNearly 100 tons of beef from Paraguay, infected with dangerous bacteria, have been ?found by specialists in the port of Vladivostok, Far East.Laboratory studies of incoming meat showed that it is infected with E. coli, said assistant manager of the regional branch of the Federal Service for Veterinary and Phytosanitary surveillance Vitaliy Salenko.According to him, its been decided to return the entire dangerous consignment back to the sender. "Presently the infected beef is on its way back to Paraguay," - said Salenko.Roo industry wants Russian market Scopelianos?|? July 20, 2011TWENTY-THREE people have lost jobs after Game Meat Processing closed it Blackall kangaroo processing site. Kangaroo Industries Association of Australia executive officer John Kelly said the Central Queensland town had lost its major employer because the Australian Government hadn't regained access to the Russian market. Two years ago Russia banned the import of Australian kangaroo meat, claiming the trade presented food safety concerns.Mr Kelly said he believed the high Australian dollar and operating costs had prompted the company to close its Blackall site and process surplus at its Ipswich plant. He said last calendar year the industry processed 1.5 million roos, half of what it used to when the Russian market was open.At its peak the industry was worth $270 million to the economy. "If we get back into Russia, and I believe it is a phone call by (Agriculture) Minister (Joe) Ludwig to his counterpart and a delegation to Moscow, we could go back to levels that it was three years ago," Mr Kelly said. He called for the minister to show leadership and make contact with the Russian Government after talks between the governments in March. Mr Kelly said apart from a small processor in Morven, there were no other major kangaroo processing premises operating in regional Queensland. He said most of the processing was happening in Brisbane and Adelaide. The Weekly Times has called Game Meat Processing and Mr Ludwig for comment.Russian businessman shot dead in Colombia 20/07/2011MOSCOW, July 20 (RIA Novosti)A Russian national was gunned down in the Colombian capital of Bogota, where he arrived on a business trip, the Colombia Reports newspaper said, citing police.The man, aged 36, was found with two gunshot wounds to the chest under a city bridge. He was taken to hospital, but succumbed to his injuries shortly after.Police say robbery could be a motive for the attack. A taxi driver is seen as a possible suspect and is currently being searched for.Wildfires rage in Siberia, summer camp evacuated 20/07/2011YAKUTSK, July 20 (RIA Novosti)Wildfires raging in Russia's Siberian republic of Yakutia prompted evacuation of children from a summer camp and approached the regional capital of Yakutsk on Wednesday, the local emergencies service said.Almost 1,500 firefighters and rescuers are trying to tackle 21 wildfire hotspots on the territory of Yakutia. Some 1,000 hectares of forest have been affected by wildfires this year.Hundreds of children were evacuated from a summer camp owned by the Children of Asia foundation. Fire raged only 11 km away from the Kachikatsy village in Yakutia, where the camp is located.Another major forest fire, which broke out last week, is now only 60 km from Yakutsk.08:46?20/07/2011ALL NEWS18 forest fires on more than 1,000 ha put out in Siberia. Tass 41 KRASNOYARSK, July 20 (Itar-Tass) —— The firemen have put out 18 fires on 1,017 hectares in Siberia’s forests over the past day. However, another 22 forest fires on 1,013 hectares keep burning, a source in the regional emergencies centre told Itar-Tass on Wednesday. The hardest fire situation has emerged in the Kezhem district in north-eastern Krasnoyarsk Territory. Some 12 taiga fires on 812 hectares were reported there. The local authorities have announced an emergency. “Major fires were not reported. Some 396 rescuers and 13 units of machinery are involved in the fire-fighting efforts. A special helicopter Mi-8 dropped nine tonnes of water on the burning forests,” a source in the territorial fire-fighting centre said. A team of territorial emergency workers is involved in the fire-fighting efforts. Some 692 people and 60 units of machinery are involved in the wildfire fighting efforts in Siberia. The aviation of the air forest security service and the Siberian regional emergency centre have made 15 flights to airlift paratroopers and machinery to the fire area and for air patrolling over the past day. 06:01?20/07/2011ALL NEWSForest fires still raging in Yakutia. Tass 38 KHABAROVSK, July 20 (Itar-Tass) — The Republic of Yakutia in the Far East remains a problem area from the viewpoint of efforts to grapple with forest fires. By Wednesday morning, 21 forest fires are still raging in the republic on an area of over 8,600 hectares, an official at the forestry department for the Far Eastern Federal District has told Itar-Tass. Fire-fighting efforts are involving 900 people, as well as 132 units of machinery on the ground, and ten air vehicles. Groups of professional parachute jumpers and paratroopers of the aerial forest protection service, sent in from a number of territories and regions of Siberia and the Far East are already at work in Yakutia. Rosleskhoz is planning to send forest fire fighters from the Komi Republic to Yakutia shortly. According to the forestry department, sixteen forest fires have been put out in the Far East over the past 24 hours on an area of 13,400 hectares. Thirty-two forest fires are still raging on an aggregate area of 8,778 hectares. Most focuses of forest fires in Amur and Sakhalin Regions and Khabarovsk Territory have been localized. There are no forest fires elsewhere in the Far East. July 19, 2011 20:23Khimki forest on fire (Part 2). July 19 (Interfax) - Felled trees in the Khimki Forest have been set ablaze, the state company Russian Automobile Roads (Avtodor) said."The stockpiled lumber in Khimki between Sheremetyevo Airport and the river Klyazma has been set on fire," a company spokesman told Interfax on Tuesday.So far there is no precise information as to who set the lumber on fire and the extent of the blaze, he said.The fire has spread to live trees, he said.The arsonists used inflammable liquid, the company spokesman said.Yevgenia Chirikova, the leader of the movement in defense of the Khimki Forest, told Interfax that "the forest has been set on fire by those who want the forest to cease to exist.""We were warned as early as last year that they would do some of this. The season is fire dangerous now, and there are special instructions banning the work of heavy machinery in the forest at this time. But this machinery is working, and tonnes of fuel oil are stored there, while the temperature is 35 degrees Celsius. Everything will burn down soon," Chirikova said.The Khimki Forest, through which a toll motorway connecting Moscow and St. Petersburg is being built now, has recently become the arena of clashes between police and the organizations building the road on the one side and environment protection activists on the other. The forest defenders are protesting the project and believe the road construction would significantly damage the environment in this area. va kk eb(Our editorial staff can be reached at eng.editors@interfax.ru)05:35?20/07/2011ALL NEWSPatriarch Kirill to make pastoral visit to Mordovia. Tass 15 MOSCOW, July 20 (Itar-Tass) — Patriarch Kirill of Moscow and All Russia is to arrive in Saransk, the capital of the Republic of Mordovia, on Wednesday for a pastoral visit. This will be the Patriarch's first arrival in Mordovia, the land of his childhood years, in his capacity as Primate of the Russian Orthodox Church (ROC). The future patriarch repeatedly made official and unofficial visits to Mordovia where his grandfather -- Reverend Father Vassily Gundyayev -- and grandmother -- Paraskeva (Parasceva) had lived for long and were buried. During the three-day tour, the Patriarch will honour the memory of the relatives: on Thursday he will say a lity for the dead at the grandmother's grave at the city cemetery and on Friday a lity in the small village of Obrochnoye, Ichkalki District, where his grandfather lies buried. On Friday, Patriarch Kirill will also visit the Kazan Klyuchevaya (water-springs) hermitage in Turgenevo Village, Ardatov District. The hermitage is part of the recently established (on May 30, this year, by a decision of the Holy Synod) Ardatov bishopric which encompasses the parishes of the eastern territories of the Republic: Ardatov, Atyashevo, Bolshiye Berezniki, Bolshoye Ignatovo, Dubenki, and Chamzinka Districts. During a tour of the Kazan Klyuchevaya hermitage, the Patriarch is to inaugurate a pilgim education center. While in Saransk, the Patriarch is to attend festivities marking the 20th anniversary of the establishment of the Saransk and Mordovian bishoprics, meet with the Head of the Republic, Nikolai Merkushkin, who has been awarded four orders of the ROC over 16 years of his work at this post. A diocesan pilgrim center is to be ceremonially inaugurated in the St John the Theologian Makarov Monastery, with the Patriarch attending. Fragments of the relics of the reverend fathers of the Kiev Cave Laura are kept at the monastery. The Primate of the ROC will also visit holy water springs of the Parasceva Ascension convent which is well known not only in Mordovia but also far beyond it. In 2005 the Patriarch, who was then Metropolitan of Smolensk and Kaliningrad, visited the convent, after which font basins were built in the convent grounds in honour of Nicholas the Miracle-Worker and Rev. Serafim of Sarov. During the tour, Patriarch Kirill will also visit several churches: the Kazan church in Romodanovo Township, Romodanovo District, the Church of St Dimitrius of Rostov in Ulyanka Village, Ichkalki District, the Church of St Michael of Arkhangelsk in the village of Ichkalki, and the Church of Nativity in Kemlya Township, Ichkalki District. The Patriarhc is to meet believers there and address them in a pastoral sermon. The Patriarch will consecrate cathedral of one of churches in honour of the Kazan icon of the Mother of God. Russia arrests ex-nuclear official 'for stealing research'(AFP) – 1 hour ago? MOSCOW — One of Russia's most senior former nuclear officials has been arrested for allegedly pocketing state research grants and stealing other people's work off the Internet, a news report said Wednesday.Yevgeny Yevstratov, who served as deputy general director of the Rosatom state nuclear corporation, oversaw a group that received some 50 million rubles ($1.7 million) in nuclear safety research assistance."However, instead of doing their own research, the corporation's employees downloaded scientific material off the Internet and pretended this was their own know-how," an unnamed nuclear official told Russian news agencies."And they pocketed the money," the official said.It was not clear how many people Yevstratov oversaw or what charges he faces.He served as deputy general director of Rosatom between 2008 and April 2011, when he was removed "in connection with a transfer to a different job", according to the corporation's website.President Dmitry Medvedev has made innovation a key plank of his term in office, although Russia remains plagued by corruption and financial waste.11:39?20/07/2011ALL NEWSRosatom ex-deputy chief detained on budget embezzlement suspicion. Tass 98 MOSCOW, July 20 (Itar-Tass) —— The former deputy general director of the Rosatom state-run nuclear power corporation, Yevgeny Yevstratov, was detained on budget embezzlement suspicions, the chief of the Interior Ministry main department for economic security and corruption counteraction Maj. Gen. of Police Denis Sugrobov said on Wednesday. Yevstratov has been in charge of nuclear and radiation security of nuclear power enterprises from December 2007 to April 2011, he said. “About at the same period of time (2008-2009) some 50 million roubles were allocated for the research at the nuclear power enterprises. However, instead of their own developments officials of the nuclear power agency were downloading the scientific materials from the Internet, were posing them as their own know-how and misappropriated the profit from this,” Sugrobov noted. Meanwhile, he added that the detectives have found the documents proving the misappropriation of 60 million roubles, which were allocated in 2009 to build two facilities to dispose of the spent nuclear fuel. Criminal cases were opened under Article 159 Part 4 of the Criminal Code for fraud. The search and investigation continue, Sugrobov said. “Other criminal episodes are being investigated, including the misappropriation of the funds, which were allocated for modernization of Rosatom enterprises and research,” he said. Upon the investigation results members of the organized criminal group will be charged. 11:28?20/07/2011ALL NEWSMayor of second biggest city in AltaiTer resigns. Tass 94 BARNAUL, July 20 (Itar-Tass) —— Anatoly Mosiyevsky - the mayor of Biysk, which is the second biggest city in the Altai Territory, has tendered his resignation, Altai Territory's Governor Alexander Karlin said on Monday. On July 13 the Biysk Vostochny District Court ruled Mosiyevsky guilty of abuse of office in ten episodes. The indictment says that the Biysk mayor made entrepreneurs make voluntary contributions to the city treasury for a permission to entrepreneurial activities. The court gave a suspended three-year sentence to the ex-Biysk mayor. The court ruled Mosiyevsky guilty and banned him to occupy municipal posts. "As far as I know, Mosiyevsky intends to file an appeal against the first instance court resolution. He might do it, but in a different status," Karlin said. The governor said "Mosiyevsky’s voluntary resignation was "the right step"." We have seen good things he did for the city and its residents, but both myself and the city population have many questions to this manager," the governor declared. Anatoly Mosiyevsky became Biysk mayor in October, 2006. On April 4, 2010 he was re-elected to the mayor's post for another term. Mosiyevsky was the last Biysk mayor elected to this post. His successor will be appointed on a contract basis by deputies of the Biysk parliament. According to the governor, in the nearest future the candidacy for the city manager will be determined to be then adopted by the Biysk city Duma; the head of the city will also be elected from the deputies. Suspects in 2010 south Russia power plant blasts to go trial 20/07/2011MOSCOW, July 20 (RIA Novosti)Two people suspected of involvement in a 2010 terrorist attack on a power plant in southern Russia will go on trial, a spokesman for the Russian Investigative Committee said on Wednesday.A group of gunmen burst into the Baksan Hydropower Plant in the republic of Kabardino-Balkaria on July 21 last year, shooting dead two security guards. They then detonated five improvised explosive devices at the plant.Several days later two militants involved in the attack were killed in a special police operation. Last October police detained Timur Shibzukhov, 24, and Magomed Shogenov, 26, who confessed to also being involved in the attack."A criminal case in regard to Shogenov and Shibzukhov, including the indictment list, was sent to the Supreme Court of Kabardino-Balkaria," committee spokesman Vladimir Markin said.He did not say when the trial would start.The blasts at the Baksan Hydropower Plant put out of order three power units leaving without electricity the republican cities of Baksan, Nalchik and Tyrnyauz. Damages were estimated at over $23 million.PRESS DIGEST - Russia - July 20 EDTMOSCOW, July 20 (Reuters) - The following are some of the leading stories in Russia's newspapers on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.KOMMERSANTkommersant.ru- Russian election monitors which work with the Central Election Commission said on Tuesday they did not need international observers at the upcoming December parliamentary election.- Russia's tycoon Oleg Deripaska has sold a 4.5 percent stake in his En+ to investment bank VTB Capital (VTBR.MM: Quote, Profile, Research, Stock Buzz) to pay back his debts to the state.VEDOMOSTIvedomosti.ru- Russia could make off-shore companies operating on its territory declare their beneficiaries.- Novatek independent gas producer is interested in acquiring a 51 percent stake in Nortgas, Novatel's head of the board of directors Leonid Mikhelson says in an interview. RBK DAILYrbcdaily.ru- The government is said to be considering the possibility of privatisation of Rostelecom long-distance telecoms.- Russia's alcohol producer "Russian Standard" is close to signing a deal with India's United Spirits.- Shareholders of the international Domodedovo airport prefer staying in the shadow to avoid raiders' attacks, according to the head of the board of directors of the company Dmitry Kamenshchik.IZVESTIAizvestia.ru- Russia's Defence Ministry could buy 40 Sukhoi-30MK fighters, according to Irkut aircraft manufacturer.NOVYE IZVESTIAnewizv.ru- The total area hit by forest fires in Russia has reached 1.2 million hectares which is twice as much as last year, according to officials. Russian Press at a Glance, Wednesday, July 20, 2011 20/07/2011?POLITICSRussian President Dmitry Medvedev visited Germany and met with German Chancellor Angela Merkel. The two leaders discussed a wide range of issues from Russia’s gas supplies to Germany to situation in Libya and Syria. During the visit, Medvedev also lambasted the?canceling of?a German prize for?Prime Minister Vladimir Putin as "cowardice."(Kommersant, Vedomosti)???????Libya’s ambassador to Russia Amir al-Garib dismissed information that today’s talks in Moscow between Russian Foreign Minister Sergei Lavrov and his Libyan counterpart will focus on Muammar Gaddafi’s resignation and possible political asylum for the embattled leader(Moskovskie Novosti)?A survey by independent pollster Levada Center showed that 58% of Russians are indifferent to those who enter the pro-Kremlin United Russia party. Only 15% of respondents said they “understand” such people, while 8% said they treat party members “with irony.” Only 5% of Russians said theyrespected” party members “(Kommersant)????????????ECONOMYUnemployment fell to?the lowest level in?almost three years in?June and?retail sales grew for?an 18th month, helping bolster an?economic expansion in?the world's biggest energy exporter(The Moscow Times)?OIL & GASRussia's largest oil company Rosneft refused to comply with anti-monopoly watchdog’s demands and cut fuel prices(Kommersant)Russian economic and energy ministries are in dispute over possible privatization of Russian oil pipeline operator Transneft(Izvestia)????????????????????TNK-BP agreed to buy Petra Energia's 45 percent stake in a project in Brazil's Solimoes Basin in a drive to expand abroad(The Moscow Times)?TELECOMS & ITWashington is ready to spend $42 million on developing a program to track down in the web information which affects U.S. security. The system, headlined SMISC (Social Media in Strategic Communication), will track down anti-U.S. propaganda in Facebook, Twitter, YouTube and other popular social networking websites(Kommersant)Russian cell phone operator MegaFon closed its online service to text messaging Tuesday following the leak of some 8,000 messages, just as bloggers reported a similar leak for the Russian Post's package tracker.(Vedomosti, Izvestia, Rossiiskaya Gazeta)BANKING & FINANCEMidsized lender Credit Bank of?Moscow is considering selling a?minority stake to?an investor outside Russia(The Moscow Times)?DEFENCERussian Armed Forces will buy 40 Sukhoi Su-30 multirole fighters, 12 of which will be deployed at the Russian naval base in Ukraine’s Crimea(Vedomosti)?SPORTRussia's Alexander Povetkin and Uzbekistan's Ruslan Chagaev will fight for the WBA Heavyweight Title in Erfurt, Germany, on August 27(Kommersant)Ilya Zakharov and Evgeny Kuznetsov? took silver at the 14th FINA World Championships in Shanghai, rallying from fourth on their last dive.(Kommersant, Rossiiskaya Gazeta)11:58?20/07/2011ALL NEWSRussian press review. (Itar-Tass World Service) 20/7 Tass 62 RUSSIAN-GERMAN INTERSTATE CONSULTATIONS WERE HELD IN HANNOVER On Tuesday, Russian-German interstate consultations were held at the top level in Hannover. Dmitry Medvedev and Angela Merkel discussed Russian gas supplies to Germany. Meanwhile, the leaders of the countries agreed on bilateral economic relations in the context of already being implemented and promising projects, the euro zone situation and the general economic situation in the European Union, as well as on international problems with the focus on a tense situation in Libya. At the St. Petersburg Dialogue public forum, President Dmitry Medvedev has made several important political statements, the Nezavisimaya Gazeta noted. The experts believe that the statements are directly linked with the presidential elections in 2012. The president was speaking about the relations between the authorities and the society, regretted about excessive state-run media outlets, particularly in the regions, and stated about the need for a public television. However, the experts believe that the reforms, which Medvedev offered, mainly lose their value due to vague prospects of their implementation. Dmitry Medvedev did not clarify again his position on his probable running for president. However, he has made a statement, which could have been interpreted particularly in this way. “We were speaking some time ago with Angela that we will have to chair this forum. We agreed that it will not be soon,” he said. Meanwhile, it is common knowledge that high-ranking retirees chair the St. Petersburg Dialogue forum, the newspaper recalled. Germany will need some more gas supplies, but not in the amount that was initially planned, the Novye Izvestia noted. The country will find the energy supplies, which will be needed due to a gradually curtailed nuclear power industry, thanks to energy-saving technologies and renewable power sources, German Chancellor Angela Merkel said at the St. Petersburg Dialogue public forum, cooling down somehow Russia’s plans for higher gas supplies. Germany rather than Russia raised the visa problem between the countries this time, the newspaper writes. German officials stated that an easier visa regime was voiced already at several sections of the forum. They gave as examples the cases, when German businessmen want to go to Sochi to build Olympic sites, but get a visa with major difficulties. “I am ready to assume responsibility for this. We should provide for some progress in this decision,” Merkel said unexpectedly sincerely. She gave a quite vague explanation that Germany is ready to fulfil a multistage plan for easier visa rules that will concern businessmen, students and tourists. “I believe that Europe will not oppose it. This was Germany that came out against it,” Merkel assumed. Medvedev has taken a more radical position in this issue. “Russia is ready to find this way as quickly as our partners are ready for this. We will not hamper it. If we need several years, we will agree on several years. If six months, it will be six months,” he pledged. The main unexpected issue at the negotiations between Dmitry Medvedev and Angela Merkel was an outlook for a more rapid progress to a visa-free regime between Russia and the EU, the Nezavisimaya Gazeta believes. The German chancellor acknowledged that Germany bears responsibility for procrastination in this issue and pledged to improve Germany’s position. Public acknowledgements of so high-ranking politicians are very rare, and, therefore, this step of the German chancellor deserves respect, the newspaper noted. In the talks with the leaders of the countries, representatives of non-governmental organizations regretted about a tough Russian legislation, the Komsomolskaya Pravda noted. “At some time we have screwed the bolts too tightly,” Medvedev acknowledged. He believes that bureaucratic barriers should be removed, particularly electronic reports should be made possible. At a final press conference Dmitry Medvedev answered a question from a German female journalist about his job upon the end of his current term in office, the Moskovsky Komsomolets writes. The president offered to the German journalist to keep patient “just for a while,” and then he will state “whether he will run for president or will find another job.” “I hope that you will not be disappointed with my decision,” Medvedev added with a smile. He did so as Vladimir Putin at another foreign press conference, when the latter said about the same issue, “You will like it, you will be satisfied.” RUSSIAN RELIGIOUS LEADERS ASK PUTIN ABOUT THE TELEVISION WITHOUT VIOLENCE AND ABOUT TAX BENEFITS Russian Prime Minister Vladimir Putin met on Tuesday with representatives of religious and public organizations, which sympathize with the All-Russia Popular Front. The premier noted that the government staff will have an agency in charge of interethnic relations. He was asked to show fewer terrorist acts on the television and to ease up a tax burden for domestic organizations. The leaders of all main confessions in Russia, as well as Cossack generals, representatives of numerous federal national cultural autonomies from the Belarusians of Russia to the Gypsies of Russia and the Kurds of Russia, the Kommersant reported. Vladimir Putin told the meeting, “In the modern world many things give a crack and fall apart, but we should avert it. The All-Russia Popular Front is a platform, where representatives of various ethnos and cultures can meet, this is why we named it the All-Russia Popular Front.” Putin offered to the interfaith council to meet constantly on the grounds of the All-Russia Popular Front, the Komsomolskaya Pravda writes. The premier pledged to form a contact group in the government for aid and cooperation. Patriarch Kirill of Moscow and All Russia acknowledged that he is concerned over collapsing moral values and the onslaught of a moral crisis, “The man, who does not recognize moral values, will stick at nothing.” The tendencies seeking for the destruction of common moral values are dangerous. Therefore, various groups are fighting between each other protecting the business of their members and ousting our businessmen. Russia should revive the basics of the moral life, then the new comers will respect Russians, who have a strong hold in the faith and moral basics and principles. The chairman of the presidium of the Central Spiritual Board of Muslims in Russia and European CIS States, Talgat Tadzhuddin, regretted that the television is peddling the terrorism problem, the newspaper noted. The clergymen have made preaches, requests and proposals, the Rossiiskaya Gazeta noted. Chairman of the Council of Muftis in Russia Ravil Gainutdin noted that Russian Muslims are not aliens, but full-fledged citizens of the country. “Probably, the front is not an organization for religious associations,” Russian Chief Rabbi Berl Lazar said. “We would like to make our contribution,” Lazar. In Russia the chiefs of religious communities not only maintain friendly relations, but also consult with each other and they can help even more to each other on the floors of the All-Russia Popular Front, he hopes. THE COMPULSORY INSURANCE OF CAR OWNERS WILL BE MORE COSTLY On Tuesday, Vladimir Putin signed a resolution, which changes the way to calculate a motor third party liability insurance policy. From now on a motor third party liability insurance policy for car owners will be more expensive and will almost double in some cases over higher tariff coefficients. The price growth will affect the residents of big cities and the drivers under 22 years most of all, the Kommersant noted. Higher tariffs will also embrace the drivers with the cars having the engines from 70 to 100 horse powers that are mostly spread in Russia. The Finance Ministry pledged to raise minimal insurance premiums, but the specific bill is still at the level of drafting in the agencies. The published document does not change substantially several coefficients, but in aggregate they will provide for a high price growth. Young residents of big cities, who are driving a low-powerful car for several months a year, will be affected by higher prices most of all, the newspaper affirmed. “Several higher coefficients for insurance policies is an important and necessary measure seeking for a lower loss-making and the creation of an efficient insurance market in Russia,” President of the Russian Union of Car Insurance Companies Pavel Bunin told the newspaper. Since the motor third party liability insurance law entered into force in 2003, the coefficients were adjusted only in March 2009, the basic motor third party liability insurance rate has never been changed (it makes 1,980 roubles for cars). “The inflation has made more than 200% for this period of time. In this respect, several regional insurance companies turned out to be loss-making to pay the insurance premiums,” Bunin stated. The Vedomosti also cites its estimates. The insurance policy of a beginner driver from Siberia may be more expensive than that of a Moscow driver, the newspaper writes. The insurance fees may reach 22%, a source close to the Russian union of car insurance companies said. In 2010 members of the Russian union of car insurance companies have bought the third party liability insurance policies at 92.5 billion roubles. The government also introduced amendments in the motor third party liability insurance law on a simultaneous growth of minimum insurance premiums and tariffs. The amendments envisage higher minimal insurance premiums for the damage to life and health of the injured parties in the road accidents. The newspaper reported that right two bills, which envisage a higher burden on car owners, will not be approved any way in the year before the general elections. Unnamed officials of economic ministries also confirmed this prospect. The Novye Izvestia also linked the situation with the general elections. Ahead of the elections the insurance companies milk again the car owners, the newspaper reported, recalling that the decision for a more expensive insurance policy was actively lobbied by the car insurance companies for the past year. They cannot complain about anything, because the share of insurance premiums did not exceed 65% in the first six months of the year, though it is to make 80% under the law. Major companies still have super profits and keep to invest it in the industries, which are profitable for them. The experts noted that the criteria for higher coefficients for various groups of drivers are beyond comprehension. “Why a law-abiding driver is to be responsible for systematic road accidents of the violators of the traffic rules in their city?” the newspaper quoted president of the collegium of legal defence of car owners Viktor Travin as saying. Back in spring the Russian Federation of Car Owners has estimated according to the statistical reports of the insurance companies that they have received about 98.4 billion roubles of super profits from 2005 to September 2010. The federation has made its own investments. The materials from the websites Zagolovki.ru and Yandex.ru were cited. ?UPDATE 2-Russia offers Germany gas, rare earths to nudge China , Jul 19 2011* Medvedev and Merkel discuss raw materials deal * Russia says has vast rare earths deposits * Moscow eyes German power market after nuclear exit (Recasts with Merkel and Medvedev news conference) By Alexei Anishchuk and Andreas Rinke HANOVER, Germany, July 19 (Reuters) - Russia offered Germany long-term deals for natural gas and rare earths on Tuesday, putting pressure on China, which currently dominates the rare earths market, to end delays in agreeing to imports of Russian gas. China controls 97 percent of the global supply of rare earth minerals -- used heavily in Germany's electronics industry -- and Russian President Dmitry Medvedev opened the door to German investment to exploit Russia's untapped reserves of the elements. "Of course we're ready to enter into new relations with our friend, including on rare earths," he told reporters after talks with Chancellor Angela Merkel and German business leaders in Hanover. "I'm referring to a planned wave of privatisations. We expect German investments in this area." Germany's electronics industry says the market for rare earth minerals with magnetic, luminescent and other valuable properties is critical, due to export curbs from China. China eased the restrictions last week, restoring them to near-2010 levels, but trading partners like the European Union and United States said it was not enough to ensure stable supplies of 17 rare earth metals which are crucial for the electronics, defence and renewable energy industries. The issue became a flash point last year after China halted shipments to Japan in a diplomatic spat, showing it was ready to use its monopoly as a political tool. Deputy Prime Minister Viktor Zubkov said Russian deposits easily accessible and not requiring industrial extraction were of a volume "equal to global annual production". EUROPE, CHINA COMPETE FOR GAS Russian talk of its "unlimited" capacity to supply Europe with gas also seemed directed at China, which is driving a hard bargain in long-running price talks on Russian gas deliveries to China, some of whch would come from the same fields supplying Europe. Russian energy giant Gazprom wants the same returns on deliveries to China as to Europe, which sources say means there a price gap of at least $100 per thousand cubic metres between Gazprom and China's negotiating positions. Germany's decision to shut down all of its nuclear reactors by 2022 is a huge opportunity for Russian gas sales in what is already Moscow's third-largest trading partner. But Zubkov's talk of Gazprom hoping for a 30-35 percent increase in demand from Germany met a cool response from the German chancellor. "Let's wait and see what happens," she said, telling a news conference with Medvedev that "market forces will be decisive" in how much Russian gas does fill the gap left by nuclear power.Germany needs additional power plants with a capacity of 10 gigawatts as it phases out nuclear power, but it also intends to double its renewable energy output in time for the final exit in 2022. Last week Gazprom, Russia's gas export monopoly and the world's largest gas company, announced exclusive talks with Germany's RWE for a joint venture in power generation, with an implied promise of fatter margins on its German sales. "We will cover all the volumes demanded by the German economy with Russian gas supplies through North Stream and Yamal-Europe, so there are no problems at all," said Zubkov, who is also the chairman of Gazprom. Medvedev said trade between Russia and Germany would reach "record post-crisis turnover" this year of $60-70 billion. (Additional reporting by Douglas Busvine in Moscow; writing by Stephen Brown in Berlin; editing by Dmitry Zhdannikov and Anthony Barker) Medvedev signals to voters from Germany: 20 July, 2011, 06:14Edited: 20 July, 2011, 06:19 The uncertainty of the political future reduces the importance of the presidential initiatives By Aleksandra Samarina During yesterday’s public forum, the Petersburg Dialogue, in Hannover, Germany, President Dmitry Medvedev made some important political statements. Experts believe they are directly related to the 2012 election. The head of state spoke about the interrelationship between leadership and society, lamented about the prevalence of state media, especially in the provinces, and spoke about the need to develop public television. However, the proposed reforms, say experts, in many respects lose value due to the uncertainty regarding their implementation.???? Medvedev, as expected, once again failed to clarify the situation concerning his involvement in the presidential campaign. However, he did make a statement that could be interpreted in this context.“I once spoke with Angela [Merkel] regarding the fact that, one day, we will have to preside over this forum. And we agreed that this won’t happen anytime soon,” he said.The impression that the Russian head of state is alluding to the 2012 presidential election is given by the possible coincidence of Medvedev and Merkel’s fates: the first could run in the 2012 elections, and the latter will apparently run for the top position in Germany in 2013. As is well known, the Petersburg Dialogue is chaired by retired high-ranking officials. On behalf of Russia, the forum’s work is managed, in particular, by former prime minister Viktor Zubkov, who replaced former Soviet president Mikhail Gorbachev. Should it be understood that Medvedev considers his leave from his current post in 2012 to be premature? A member of the Carnegie Center in Moscow, Nikolay Petrov, says we should not rush to conclusions.“Medvedev is not making the decisions regarding his nomination on his own,” he said. “For that reason, he is now unable to answer these questions.”However, the head of state could not resist from taking a dig at the government.“I could candidly say that in our country, for example, there is a gap between ‘the letter and the spirit’ – between the way the law is formulated and how it is implemented,” he said. At the same time, Medvedev continued, the gap is not “dramatic in nature.”Yesterday’s soft criticism of the executive authority coincided with Medvedev’s decisive retort to the Organizing Committee for the Quadriga award, which retracted its announced awarding of the prize to Russian Prime Minister Vladimir Putin. Medvedev called its position “cowardly” and “inconsistent.”Knowing that he was speaking before a Western audience, Medvedev dedicated a lot of time to talking about NGOs. However, here his position was also ambivalent. On the one hand, the president called for an end to the mistrust between the government and NGOs, noting that it is a vestige of Soviet-era policies. But on the other hand, Medvedev stated, “Not only must the government make its contributions, but so do the non-governmental organizations, which must show what they are capable of doing.” This statement sounded somewhat strange, coming from a head of state. The development of relations between NGOs and their controlling officials has, in recent years, resembled a game for the same team.???? Medvedev also announced that he believes it is necessary to stop subsidizing state media, especially in the regions.“The faster we are able to separate these types of media from the government, the better,” he declared. At the same time, Medvedev lamented the dependence of regional publications on local authorities. However, he quickly acknowledged that this type of reform could bankrupt the publications. In this regard, there is a long-standing dilemma: having lost state funding, small provincial newspapers will become dependent on local businesses, and will be forced to get involved in the conflicts of market players. In this situation, Medvedev’s grievances would be more applicable to state television channels and major federal newspapers – which he did not mention. “A long drawn-out preamble” was how the head of the Effective Policy Foundation, Gleb Pavlovsky, described Medvedev’s interview with NG.“The president is listing real problems, but a question arises: who will be changing the situation?”, he asked.Medvedev, according to Pavlovsky, is facing a choice: either to force the government to change the current situation, or say that he will handle it himself.“A very insincere situation has unfolded,” Pavlovsky said. “The prime minister spends hours polemicizing against the president in absentia in Magnitogorsk, without directly naming him. The style of leadership which he offers is diametrically opposed to that of Medvedev. Uniting them is impossible – that’s schizophrenia.”??????? As a result, says Pavlovsky, people are no longer taking Medvedev’s statements seriously. “Citizens don’t know what is being expressed – whether it’s wishful thinking, or a solid policy of a presidential candidate,” he said. “Uncertainty lowers the status of Medvedev’s statements. Neither he nor Putin are able to escape from this situation.”?? According to Nikolay Petrov, Medvedev’s “Magnitogorsk packet” plays to his benefit.“It is the only bridge from declarations to concrete actions, which are already today being implemented and will remain regardless of whether Medvedev stays in his current position or not,” he said. “But if he does not become president, then he is unlikely to serve as the prime minister, as he is unsuited for this work – he will most likely become chairman of the Constitutional Court. Therefore, reforms are stalling.” Medvedev’s statement regarding public television, says Petrov, is in line with the president’s reform proposals. But today, noted NG’s source, it would be strange to seriously pursue plans whose implementation is not only outside of the timeframe of this term, but also of the next two or three terms.“In the beginning of his presidency, he did not make these types of statements, and the things that he did talk about, he pushed aside like old, boring toys,” he said. “It would be nice if the president, strong or weak, acted in a consistent manner and implemented the ideas which he had voiced earlier.”However, notes Petrov, the Magnitogorsk statements, and those that were made by Medvedev at the St. Petersburg Economic Forum, are not addressed to the entire population, but to small and medium-sized businesses.“Unlike Putin – who is speaking today with students, and tomorrow with workers – Medvedev is not trying to expand his constituent base, [instead] addressing all of his statements mainly to domestic businesses and Western commentators,” he argued.Putin's Plan there an overarching strategy to the dizzying machinations of the Russian elite as election season approaches? Or are we just seeing the usual jockeying of Kremlin clans positioning themselves for the post-2012 situation?Is there an overarching strategy to the dizzying machinations of the Russian elite as election season approaches? Or are we just seeing the usual jockeying of Kremlin clans positioning themselves for the post-2012 situation?Lauren Goodrich at has written a well-reasoned piece that argues the former. I have been meaning to blog it for a couple weeks now (it came out on July 5 and is well worth a read), not least of all because it largely mirrors my understanding of the current political dynamic."Interesting shifts are under way this election season," Goodrich writes. "While on the surface they may resemble political squabbles and instability, they actually represent the next step in the Russian leadership's consolidation of the state."Goodrich argues that upon coming to power, Putin's first priorities were to restore the authority of the Russian state which had deteriorated during Boris Yeltsin's presidency.Putin largely achieved this goal using authoritarian means during his eight years in the Kremlin, which gave him the confidence to turn the presidency over to Dmitry Medvedev -- while remaining in firm control of the country as prime minister.Putin's next priority, which he is undertaking in tandem with Medvedev, is to modernize the country's economy and infrastructure. But this, Goodrich writes, requires some adjustments in policy:With elections approaching, the ruling tandem seems even more at odds as Medvedev overturns many policies Putin put into place in the early 2000s, such as the ban on certain political parties, the ability of foreign firms to work in strategic sectors and the role of the FSB elite within the economy. Despite the apparent conflict, the changes are part of an overall strategy shared by Putin and Medvedev to finish consolidating Russian power.These policy changes show that Putin and Medvedev feel confident enough that they have attained their first imperative that they can look to confront the second inherent problem for the country: Russia's lack of modern technology and lack of an economic base. Even with Russian energy production at its height, its energy technologies need revamping, as do every other sector, especially transit and telecommunication. Such a massive modernization attempt cannot be made without foreign help.In order to achieve these goals, Putin and Medvedev not only need to improve Russia's investment climate and ease up the state's role in the economy (which explains Medvedev's moves to move siloviki like Igor Sechin out of the chairmanship of state corporations), they also need to create what Goodrich calls "the appearance of democracy."Enter Mikhail Prokhorov and Right Cause:Right Cause is intended to support foreign business and the modernization efforts. The party at first was designed to be led by Medvedev's economic aide, Arkady Dvorkovich, or Finance Minister Aleksei Kudrin. However, the Kremlin thought that having a Kremlin member lead a new "independent" political party would defeat the purpose of showing a new democratic side to Russian's political sphere. Prokhorov has rarely shown political aspirations, but he has a working relationship with the Kremlin. He clearly received orders to help the Kremlin in this new display of democracy, and any oligarch who survives in Russia knows to follow the Kremlin's orders.But the tandem (and the larger ruling elite) also wants to make sure the appearance of democracy doesn't turn into the real thing.Enter the Popular Front:On the surface, the Popular Front has attempted to remain vague to avoid revealing how such an organization supersedes political parties and factions. It creates a system in which power in the country does not lie in a political office ? such as the presidency or premiership ? but with the person overseeing the Popular Front: Putin.And as I have been blogging for months, the mechanism to keep the current elite firmly in control with the appearance of a more democratic system is "managed pluralism":It is managed pluralism underneath not a president or premier, but under a person more like the leader of the nation, not just the leader of the state. In theory, the new system is meant to allow the Kremlin to maintain control of both its grand strategies of needing to reach out abroad to keep Russia modern and strong and trying to ensure that the country is also under firm control and secure for years to come.Igor Yurgens , chairman of the Kremlin-connected Institute of Modern Development, recently said he expected Medvedev to remain president for a second term, adding that Putin would remain the country's most powerful figure."Vladimir Putin is a more powerful player. He will probably become a kind of father of the nation, allowing the president to promote the thoughts and ideas he regards as priorities," Yurgens told Interfax.My only quibble with Goodrich's conclusions is that I don't think this is just about Putin. It is about keeping the inner sanctum of the current ruling elite, what Andrew Monaghan of the NATO Defense College calls "The Team" (and what I would call the Deep State -- but that is a subject for a future piece I am working on).-- Brian Whitmore A Lezginka dance department: 20 July, 2011, 07:16Edited: 20 July, 2011, 07:21 The government will set up a structure to work with ethnic communities By Olga BolotovaPrime Minister Vladimir Putin has suggested creating a separate governmental structure to work with ethnic communities. Today this work is being conducted by several ministries. The idea may involve establishing a separate department or a branch. Worsening inter-ethnic relations served as the reason for the proposal.On Tuesday, representatives of community and religious organizations held a meeting with Putin at the All-Russia People’s Front headquarters. Having talked about the importance of resolving inter-ethnic problems in his opening statement, as well as the unique character of Russia, which is home to more than 180 different nationalities and ethnicities, “each of which has its own national territory,” the head of the Cabinet of Ministers expressed hope that the People’s Front’s headquarters will be used by the participants on an ongoing basis. After that, he announced the establishment of a relevant structure within the apparatus of his government.???? “You know that the government has an inter-departmental working group, which is headed by my deputy Dmitry Nikolayevich Kozak, and I think that in the immediate future, we will create a special structure within the government that will also deal with problems of this kind,” said the prime minister.?? The president of the National Cultural Autonomy of Germans in Russia, Heinrich Martens, complained to the head of the Cabinet of Ministers about the absence of a platform for dialogue.“Major policies are sometimes formed without the consideration of ethnic groups which are responsible for these policies,” he said, noting that there is no proper representation in the Public Chamber or in the parliament. “We are not demanding full-fledged involvement, but we would like to be consulted.”The president of the National Cultural Autonomy of Gypsies in Russia, Nadezhda Demetr, was outraged that there is still not a single government body to which representatives of her ethnic community can turn. And the first vice president of the Association of Indigenous Ethnic Minorities of the North, Siberia and the Far East, Pavel Sulyandzig, stated that he is considered a persona non grata by the Ministry of Regional Development because, as they say, he “criticizes too much.”?? Today, interaction with ethnic associations is handled by several government agencies, Ildar Gilmutdinov, chairman of the National Cultural Autonomy of Russian Tatars, told Gazeta.Ru.? For example, there is a separate department in the Ministry of Regional Development which mainly works with national autonomies. Issues concerning language preservation and schools with an ethnic or cultural component are handled by the Ministry of Education. “Today, there isn’t a specialized structure, and that is a problem because there are some serious problems in inter-ethnic and inter-national relations,” said Pavel Kudyukin, a lecturer at the Higher School of Economics. He recalled that a similar structure had existed in the past.“In the 1990s, a separate ministry existed,” he said. “For Russia, this is an important matter: By all international criteria, the country is mono-national, but due to its size and scale, it is multiethnic.”Within the government, issues concerning religious and ethnic affairs are handled by the Department of Culture, which includes a department that works with community and religious associations headed by Vladimir Ginensky. According to Gilmutdinov, the department mainly handles organizational issues and employs only a few people, which is clearly not enough. A separate government structure is needed in order to simplify internal communication, he says.“When it comes to making a joint decision between several agencies, in order to coordinate their actions so as to avoid running in circles, the government apparatus plays the central role,” he said.How closely the prime minister’s proposal will be followed is still unclear.“This has not been discussed until today’s meeting,” said a source in government.?? According to Gazeta.Ru’s source, a separate department or a branch within some department could be established – or, if the decision to create a separate body is made, then an agency may be set up. The establishment of a nationalities ministry, which was discussed by some Caucasian leaders following a much-publicized conflict on Manezh Square, will certainly not be considered.?? Another government source says that the idea applies only to the creation of a structure within the government.Please respect 's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ to buy additional rights or use this link to reference the article - 19, 2011 10:05 pmA Russian tour de forceBy Courtney WeaverTwelve years ago Oleg Tinkov, the Russian businessman, set up an American-style restaurant and brewery. Its success persuaded him to open restaurants across Russia before selling the brewery for $260m in 2005, and the restaurants for an undisclosed sum four years later.After agreeing to meet at Tinkoff Brewery (a play on his name) in Moscow, however, the permatanned entrepreneur manages just a few minutes in the midmarket restaurant before announcing he would like to eat elsewhere. Five minutes later, he is happily ensconced in a velvet armchair of an overpriced Italian restaurant next-door, a chandelier sparkling overhead.A former miner, Mr Tinkov is not one to skimp on luxury. Yet he explains the decision to switch restaurants as a desire to move on from Tinkoff.Brash and charming, the serial entrepreneur has made a fortune building everything from Technoshock, a chain of electronic stores, to Darya, a line of prepackaged pelmeni (a sort of Russian ravioli).The 43-year-old typifies a different class of tycoon to Russia’s oligarchs – the stratospherically wealthy businessmen who built empires out of former Soviet state assets in the 1990s. Mr Tinkov, instead, is one of a breed of entrepreneurs who came of age during perestroika in the late 1980s, and seized opportunities provided by the growing market economy to build their own fortunes – a drive he sees lacking in Russia’s current youth. “My generation, the one which matured during perestroika?.?.?.?we all did something with our lives,” he says.Now Mr Tinkov’s attention is on Russia’s nascent credit card market. Tinkoff Credit Systems, which markets credit cards to people across Russia through direct mail and the internet, is now the second fastest-growing credit card service in the country after state-owned Sberbank.“For six years I have been focusing on my financial business and I sleep, think and dream only of that,” says Mr Tinkov. Mr Tinkov began his career working in the shafts of eastern Siberia before leaving to complete a two-year mandatory service in the Soviet army on the border with Japan. On his return, he deemed the mines “damp, cold and dirty”, and decided he would prefer to work in an office as the mine’s director. In 1989, he enrolled at the Leningrad Mining Institute, but once there became distracted. In his dormitory were students from Tunisia and Singapore selling imported lipsticks and jeans. He realised that such goods would fetch an even higher price in Siberia, and struck up a deal, flying home to sell the goods to former classmates or on the open market with the help of borrowed money from family and friends. Before long, he was flying to Singapore to bring back the goods himself. “In Russia, it was officially a crime. In reality, everyone did it.”By his third year at university, in 1990, he was making as much money in a day as his teacher was making in a month, so he quit university. A year later, the Soviet Union fell. Amid the turmoil, Mr Tinkov admits he did not always play by the book, borrowing money from known criminal organisations offering lower rates than the banks, and running up against local gang members.Eventually, he was able to open Technoshock, a chain of stores offering legitimate imported electronics. By 1993, the St Petersburg-based company had annual revenues of $10m, affording the 26-year-old Mr Tinkov the chance to live the ultimate post-Soviet dream: emigrating to California. He was quickly disappointed. “You watch the films and ... you think everyone there is a billionaire ... I realised America was a rich country but the people there weren’t very rich at all,” he says.Within a year, he was back in Russia. And, after seeing the margins on his electronics business slowly decline, he decided in 1999 to sell the chain.It was a chance conversation in a Russian sauna with a man who sold Italian ravioli processors that led to his next venture. By the time they were getting dressed, Mr Tinkov had agreed to buy 10 appliances and set about creating Darya, with the idea selling pelmeni in Russian grocery stores and outdoor markets. Within two years, Darya was the number one frozen food producer in Russia, enabling Mr Tinkov to sell the brand to Roman Abramovich, the Russian oligarch and owner of England’s Chelsea Football Club, in 2001 for $21m – the largest amount of money he says he had ever seen in his life.“When I get the money [for selling a business], it compensates for the sadness [of letting it go],” he says. “I open my bank account and look at the money and go – wow, fair enough!”Inspired by the brochures he received from Capital One, the US financial company, during a second stay in California at the end of the 1990s when he received a masters in marketing from the University of California, Berkeley, he set up the credit card company. In addition to using direct mail, Tinkoff Credit Systems, which counts Goldman Sachs as a minority shareholder, relies on internet advertising. Dispensing with bricks and mortar outlets works well in Russia, where companies struggle to expand across the country due to the lack of infrastructure and the vast distances.According to Euromonitor, the data agency, credit card ownership in Russia is expected to grow by almost 50 per cent over the next five years to 14.2m, as is the volume of credit card transactions. “Banking. Plastic. It’s sexy,” Mr Tinkov says, switching from Russian to show off his self-taught English.Today the entrepreneur splits his time between St Petersburg, Tuscany and Marin County, California, where his neighbours include the actor Sean Penn – a name he casually drops into conversation.When not consumed by his credit card business, Mr Tinkov hosts Business Secrets, an online interview show, in which he quizzes his peers such as Yelena Baturina, the wife of the former Moscow mayor and Russia’s richest woman. Mr Tinkov’s biggest passion is cycling. An athlete in his youth, Mr Tinkov picked up the sport again in his late 30s, creating his own team, named first after the brewery and then the bank. He has also recently published a memoir, the modestly titled I’m Just Like Anyone, which contains many photographs of Mr Tinkov posing in both business suits and tight neon swimming trunks. The book’s real purpose, he says, is about convincing the younger Russian generation to set up businesses.“I want entrepreneurship in this country to advance so that fewer people work at Gazprom [the oil and gas monopoly] with fat faces and grey suits, and more people become young, innovative entrepreneurs,” he says. July 19, 2011China Moves Into Russia's Zone - Former Soviet Union Brooke | MinskRoughly 20 years after the collapse of the Soviet Union, China rivals Russia as the largest investor and trading partner in many of the former Soviet republics.Belarus is running out of cash.? As electricity bills go unpaid, the Kremlin turns off the power.? Russian state-controlled TV airs hostile reports, calling Belarus a dictatorship.Moscow's strategy is clear: pressure Minsk into selling state companies to Russia on the cheap.? The prize is Belaruskali, a major world producer of potash.? If Russians buys Belaruskali, Russia will control half of the world's production of this fertilizer, crucial at a time of looming global food shortages.But an unexpected player has stepped in, Minsk now is in talks to sell part of Belaruskali to state companies from China.Scouring the world for raw materials, China increasingly is penetrating the former Soviet Union, a region long considered Moscow's private pool.Russian political columnist Konstantin von Eggert says the Kremlin is careful not to speak out against Chinese economic intrusions into Belarus, once considered the model Soviet republic."The Russians are not very pleased with that, but at the same time they are keeping their mouths shut, because there is nothing they can do about that.? Russia is losing its pool in the former Soviet republics, in the post-Soviet space," he said.Belarussian Ministry of Foreign Affairs Asia expert Leonid Batyanovsky says Minsk is not playing Russia against China."Developing relations with China does not mean developing them against somebody," said Batyanovsky.Belarus gets little American or European investment, largely because investors feel uncertain about property rights in a country under one-man rule for 17 years.? But China last year extended a $1 billion credit line for a series of projects in Belarus."We are talking about the road reconstruction.? We are talking about the electrification of the railways. We are talking about the real estate projects in Minsk.? We are talking about creation of the Belarus-China industrial park," added Batyanovsky.Belarus is just the latest new frontier for Chinese investment in the 14 former Soviet republics that once were economic colonies of Russia. ?Last month, China's president, Hu Jintao, visited Ukraine, a neighbor that Russians long called "Malaya Rossiya" or Little Russia.In Kyiv, the Chinese leader and his Ukrainian counterpart, Viktor Yanukovych, oversaw the signing of $3.5 billion in business agreements.Earlier in his trip, Hu visited Kazakhstan.Only 20 years ago, Nursultan Nazarbayev, then the head of the Kazakhs Soviet Socialist Republic, was fighting to keep Kazakhstan in the Soviet Union.But last month, Nazarbayev, now president of independent Kazakhstan joined China's president in signing a "strategic partnership" agreement. ?The two presidents promised to double two-way trade during the next four years and they signed accords for the latest multi-billion-dollar Chinese investment in Kazakhstan, this time for copper. ?Next door, in Turkmenistan, China recently extended a $4-billion credit to double gas exports east to China.With massive amounts of oil and gas now flowing eastward, China is displacing Russia as the largest source of trade and investment for all five former Soviet republics of Central Asia.The shift to China is so fast the Central Asian leaders worry about a backlash. ?Recently, a Kazakh court gave long prison terms to two geologists convicted of selling mineral secrets to a Chinese agent.Separately, a Kazakh presidential advisor denounced as 'dirty lies' a report his government had signed a secret 99-year lease of one-million hectares of farmland to China.But Von Eggert, the Russian analyst, does not predict Russia will capitalize on any anti-Chinese backlash."Russia does not have enough political, economic, or for that matter military power, to send off this Chinese incursion into what used to be 'the zone of privileged interests of Russia' as President Medvedev once called it.? It is yet another sign of Russia's post imperial decline," noted Von Eggert.Meanwhile in Minsk, city planners are drawing up blueprints for Belarus' first "kitai gorod" or Chinatown.Why is Obama giving Libya to the Russians? 19, 2011 16:35 EDTBy John BoltonThe opinions expressed are his own.With President Obama’s Libya policy staggering from one embarrassment to another, last week he and Secretary of State Clinton outdid themselves. They publicly welcomed Russia’s effort to insert itself as a mediator, an act of such strategic myopia that it must leave even Moscow’s leadership speechless.Permanent Security Council members Russia and China abstained on the initial resolution authorizing force to create a Libya no-fly zone and to protect innocent civilians. By not casting a veto, Russia thereby tacitly allowed military action to proceed. As they did, Russia repeatedly second-guessed and harshly criticized NATO’s operations. Now, as a mediator, Russia will, in effect, have the chance to rewrite the Council’s resolution according to its own lights.Given the uncertain trumpet sounded by both Obama and NATO, and the still-inconclusive outcome of the “kinetic military action,” the reputation and credibility of U.S. and NATO, militarily and politically, have been gravely impaired. The President likely doesn’t appreciate these wounds as he leans over backwards not to be seen as the regime-changing unilateralist he imagined his predecessor to be.We should hope that Russia fails. Mediation was never the correct answer here. NATO, once committed, must prevail by force of arms, as it still could with a modest demonstration of American leadership. Make no mistake: Welcoming Russian intercession between NATO and a military opponent like Libya is nothing less than a massive humiliation for the Western alliance. If the Obama Administration’s misguided worldview favors mediation, whatever happened to the likes of Sweden and Switzerland?Not only does Russia now have the possibility of reshaping the Libyan morass to its own ends, it is also well-positioned for a dominant role in post-conflict Libya. From the outset, U.S. critics of the intervention raised legitimate questions about the bona fides of the Libyan opposition, embodied in the Transitional National Council (“TNC”), now recognized by over three dozen countries. Last Friday, the United States joined the crowd, while also unfreezing Libyan assets to make them available to the TNC.But in the last four months neither America nor its NATO allies have successfully identified and strengthened (quietly or otherwise), a truly significant cadre of pro-Western voices in Libya. This failure increasingly risks that an ultimately victorious opposition will simply replace one rogue regime with another. Ousting Gaddafi is manifestly still vital and legitimate, given his defiant threat to return to international terrorism and possibly the pursuit of weapons of mass destruction. But it was always only half a strategy, with a concomitant necessity to select and sustain a desirable — or at least acceptable — alternative.Inserting Russia into the middle of the Libyan war gives it an unmistakable advantage in shaping the TNC, and post-Gaddafi Libya more broadly. Moscow (along with Beijing) has a keen interest and now a real possibility to become far more involved in exploiting Libya’s oil and natural gas resources than at present. This opportunity is something Russia could never have achieved on its own. To be handed it by Obama and Clinton, utterly gratuitously, is breathtaking.Russia today is a troublemaker, not ideologically as in the Cold War sense, but as a swaggering, international bully boy. Increasingly reverting to authoritarianism domestically, Vladimir Putin’s Russia is, among other things, seeking to re-establish hegemony within the former Soviet Union; meddling in the Middle East; and flying political cover for Iran’s nuclear-weapons program. Ironically, Russia’s international assertiveness cannot be sustained, given its aging, unhealthy and shrinking population and an economy resting on little more than oil and natural gas exports.Strategically, the United States should be squeezing and disciplining Moscow, not caressing it. Instead, the Obama Administration’s “reset” policy has smacked of appeasement, backing down on missile defense facilities in Poland and the Czech Republic, abandoning efforts to bring Ukraine and Georgia closer to NATO, and signing the New START arms control treaty, an unforced error that will give Russia time and cover to rebuild its nuclear and ballistic missile capabilities under limits that constrain Washington far more than Moscow.The Obama Administration’s weakness, exemplified in its Libya miscalculation, is generating close scrutiny in Russia and in the wider world. Sadly, America’s European friends are also exhibiting a profound fatigue and weakness in Libya and beyond. Some speculated, for example, that France, cozying up to Moscow, welcomed Russia’s mediation in order to foil Germany’s efforts to make itself Russia’s principal Western European partner.How troubling and dangerous it is to see NATO members drifting toward Russia after largely waging and winning the Cold War in Europe precisely to keep it out of Moscow’s clutches. Now some are not only apparently seeking Moscow’s embrace, but the Obama Administration, in cases like Libya, is actively abetting Russia’s efforts.The Kremlin will rightly see Obama’s welcoming of its Libya mediation ploy as yet another telling sign of American weakness and retreat. Similarly, America’s other international adversaries will take Obama’s mistake as opening even more opportunities for them that should deeply concern us. These adversaries, like Iran and North Korea, will perceive even less concern about U.S. efforts to constrain their nuclear and ballistic missile programs, thus accelerating the ongoing risk of even broader proliferation.Political commentators routinely opine that Americans are not interested in national security issues. But if confronted with the dangers of a further sixteen months of Obama, compounded enormously by the prospect of four additional years, Americans should be far more sensible than the prognosticators give them credit for.Photo: Russia’s Prime Minister Vladimir Putin meets Libyan leader Muammar Gaddafi in Moscow, November 1, 2008. Gaddafi said on Saturday he wanted closer energy ties with Russia, shifting the emphasis away from the arms sales which until now have been at the core of their relationship. REUTERS/Alexander NatruskinA Near Miss Police Search for Culprits on Vandalism Charges, Darkei Shalom Resists Toughening Security Despite Repeated AttacksBy Andrew Roth Russia Profile 07/19/2011 Security at the Darkei Shalom synagogue in northern Moscow was surprisingly light on Friday, just three days after unknown attackers attempted to burn down the Orthodox synagogue in northern Moscow. Rabbi Dovid Karpov was preparing to address the congregation for the first time since the attacks. Life is quickly returning to normal in the congregation, despite the second attempted firebombing of the synagogue in several years.As the search for the culprits continues, Karpov said the attacks show that the extremist community is becoming increasingly desperate, and that he will try to resist locking down the synagogue with heavy security measures. “We’re not going to simply create and stay in places just for Jews; we are not going to return to the times of the pogroms,” he said.Kostya, a heavy-set security guard at Darkei Shalom with a prominent tattoo covering his forearm, walked around the front of the small synagogue toward a corner facing the courtyard and the street. Standing just behind the fence, he reenacted the scene that took place in the early morning on July 12, when he had just finished his late night shift and was sitting in his car in the driveway. “They threw six bottles from here at that corner of the building; each of the ones that ignited hit with a bright flash of light. It all happened within two minutes. As soon as I realized what was happening, I ran out into the courtyard to chase them; but they had already taken off. There are a million places to hide around here. So I ran back to the building and we started throwing water from the windows to put out the flames,” he said, pointing up toward the scorch marks around the second floor window. “We knew that the building wasn’t in serious danger when we saw that none of the bottles had hit their target.”That, however, is a small miracle; the scorch marks stretch right up to the window on both the left and the right sides – a half meter in either direction and the second floor of the building could have been set ablaze. Reactions to the attack Tuesday morning were swift, but with little information about the attackers, police so far have had not reported any progress in the case. While authorities have so far called the attacks “acts of vandalism,” Jewish community organizations have complained that an attack on the synagogue clearly constitutes an act of extremism. “The only thing that worries us is that the incident, for the time being, is being interpreted as hooliganism by law enforcement. Attacks against churches in general cannot be considered hooliganism – in any case this action is aimed at igniting religious hatred,” said a statement from the Federation of Jewish Congregations of Russia. In the media, the attack was quickly cited as retaliation for the sentencing of a set of ultra-right nationalists led by Lev Molotkov, accused of 27 ethnically motivated murders, who received a life sentence on Monday. Heinous attacks against local synagogues and other religious institutions have taken place in Moscow in the past. Eight people were stabbed at Bolshaya Bronnaya synagogue in central Moscow in 2006. On New Year’s Day 2009, skinheads Anton Vasiliev and Konstantin Kucher went on a rampage across the Otradnoye neighborhood, throwing Molotov cocktails at the Darkei Shalom synagogue only after somewhat paradoxically drawing swastikas on the nearby Saint Nicholas Church. For inciting religious intolerance, along with murder, Vasiliev and Kuchkov were sentenced to 22 years and 13 years respectively.Karpov agreed that Monday’s court sentencing and attempted firebombing were connected, yet noted that growing waves of aggression in young people had formed it into meaningless violence against religious and government institutions. “I was at one of the meetings with them about a half year ago. These were people who, when you look at them from outside, seemed completely normal. But they have all these thoughts crawling around in their heads they’re thinking in their own language. That’s why you see attacks like swastikas on a church. The violence is not aimed solely at one group. It lacks direction,” he said.Karpov nonetheless called the attacks from outside the fence a “cowardly act,” which showed that extremists were scared to venture across the threshold of the synagogue. Asked whether he would consider installing additional security, including the type seen at synagogues like Bolshaya Bronnaya, he said that he did not see a need to do so. “Our security did what it was supposed to do,” said Karpov. “We rely on the government to provide protection for our synagogue, to battle xenophobia and anti-Semitism, and we ourselves should continue to practice our religion and go to the synagogue.”Lebedev Interested in News of the World Lyubov Pronina - Jul 20, 2011 5:00 AM GMT+0200 Alexander Lebedev, owner of the London Evening Standard newspaper, said he may be interested in remaking fellow billionaire Rupert Murdoch’s News of the World if the Russian investor is able to sell some assets. “I wish, but I don’t think my pocket is deep enough at the moment, but if I’m able to sell any of my businesses, be it Aeroflot or banking, then I’m really very much interested,” Lebedev said in an interview in his office in Moscow. “Half- jokingly, I would say I wish I could remake the News of the World under a different brand: World News.” Murdoch’s News Corp. (NWS) was forced to close News of the World and abandon its bid for British Sky Broadcasting Group Plc (BSY) this month after rival newspapers reported that journalists working for the tabloid hacked the phones of victims of violence, including a missing schoolgirl who was later found murdered. London’s Metropolitan Police is investigating the hacking and allegations that News Corp. (NWSA)’s British newspaper unit, News International, paid officers to get stories. Murdoch, 80, denied any knowledge of phone hacking and payments to police at News of the World, blaming “people I trusted” during three hours of questioning by British lawmakers yesterday. A former lawmaker in Russia’s lower house of parliament and a KGB officer who worked at the Soviet Embassy in London during the Cold War, Lebedev now has a fortune valued by Forbes magazine at $2.1 billion. His National Reserve Corp.’s holdings include a stake in Russia’s flagship airline OAO Aeroflot and in banking, construction, property, agriculture and media companies. ‘Funny Suggestion’ Lebedev, 51, said he would use a remade version of the defunct newspaper to raise interest in stories about corruption and wrongdoing by rich and powerful people. Murdoch’s newspapers worked in the public interest, aside from “playing on the least attractive strings of human nature,” he said. “Let me just make a funny suggestion: so I decide tomorrow to re-launch News of the World, but calling it Worlds News,” he said. “I will be focusing not on interfering with a killed girl, phone hacking, but would need the journalists to really investigate -- and during investigations you have to observe the laws.” Lebedev said in May he would quit business in Russia, citing pressure from the Federal Security Service, or FSB, the main successor to the Soviet KGB. Personal ‘Mission’ In November, he asked Prime Minister Vladimir Putin to intervene after law enforcement officials raided his National Reserve Bank. The raid was retribution for allegations of corruption printed in Novaya Gazeta, the Moscow weekly newspaper he owns with Mikhail Gorbachev, he said. Being a newspaper owner in Russia and Britain is now a personal “mission” rather than a purely commercial endeavor, Lebedev said in the interview. Novaya Gazeta is seeking permission from Moscow Mayor Sergei Sobyanin to start distributing a daily version of the publication in Moscow subway stations, a venture Lebedev said will cost about $10 million. Lebedev, who also owns the Independent daily in the U.K., started a weekly tabloid in London called “i.” “I would be the happiest person to actually get rid of everything, sell it, and just go into publishing and investigative journalism,” he said. To contact the reporter on this story: Lyubov Pronina in Moscow at lpronina@ To contact the editor responsible for this story: Balazs Penz at Formula 1 occupies the Kremlin 20, 2011Ilya Sobolev, Rossiyskaya GazetaMoscow’s F1 racing show has gained momentum – to the point where it is one of the biggest events of its kind. And it is all mere preparation for Sochi’s F1 Grand Prix in 2014, the first in the country.For one day this past weekend, Moscow’s central streets were at the mercy of powerful engines – not the other way round. Most days, even the most high-powered Ferrari engine idles lamely, humbled by the epic gridlock near the Kremlin. ?Such deafening noise can only be heard in the center of Moscow on Victory Day, when tanks and other military hardware roll past the Kremlin. But on Sunday the roar of the engines was more cacophonous than the rumbling of a military parade. Formula 1 was in town, and at least 300,000 Russians came to see those tires burn. Unfortunately the tires started out in some water after heavy rains, but they quickly gained ground.?This is not the first time the city has hosted a racing show. The first one took place in 2008 and the event has been gaining momentum ever since. Moscow City Racing is now one of the biggest global events of its kind. The star of Sunday’s race was Britain’s Jensen Button; in 2010 he came to Moscow as the reigning champion, but this season he’s only in fifth place so far. ?“It was great to be back,” Button said at a press conference shortly before the start. “Driving through the center of Moscow is an incredible experience. I still can’t believe that we are racing under the Kremlin walls. We look forward to Grand Prix Russia in Sochi three years from now.”?The usually smiling Brit looked rather thin when he arrived on the streets of Russia’s capital. “I lost weight,” Button admitted. “Given my height I cannot gain extra kilograms. Nothing doing. These are hard times. We work hard but so far things are not shaping up as we would like. But we are not giving up.”?The organizers added some sex appeal when they trotted out one of the most prestigious Formula 1 icons – the Ferrari. Giancarlo Fisichella may not be the brightest star in the racing world, but his car sent spectators into small swoons. ?Fisichella appeared stunned by the number of journalists who were falling over themselves to cover the show. Unlike in previous years, the conference room was packed. ?“This is a very important day for Russia as well as for Ferrari,” he said, unafraid to use such lofty words. “It seems we really have a lot of fans here.”Racing along the embankment at high speed on wet roads?The route of the race was changed this year, with about 50,000 people working on it. While previously the cars practically circled the Kremlin, this year they were racing under its crenellated walls along the embankment, which they entered from Bolshoy Moskoretsky Bridge. This reduced the number of roads blocked off, making more room for public transport and traffic.?The new route is shorter than the old one (2.2. miles instead of 2.7 miles), but faster. The organizers claim that the cars could reach speeds of 186 miles per hour when they hit the straight. Not that the drivers were keen to deliver such speeds: Sebastien Ogier, one of the best rally racers of the current season, complained about the road surface on the eve of the race. “But we will give it what we can,” he said. ?The weather also brought some surprises. On the eve of the race, Moscow was engulfed in sweltering heat, but on Sunday morning the city greeted the drivers with the kind of downpour that they might have experienced in Singapore. That did not deter the racing fans. The VIP stand, where one seat cost 12,000 rubles, or 425 dollars, was full. Regular ticket prices started at 1,800 rubles or 63 dollars. ?For 25,000 rubles, or 885 dollars, a fan could realize a dream and hang out with one of the teams in the paddock. ?Yet the view from the VIP stand was anything but spectacular. The spectators see the cars for just a few seconds before they whiz out of sight behind the turn. This may be part of the magic of Formula 1 and of car racing in general. Even a few seconds are enough to hear the piercing roar and feel the speed. ?A similar event took place on the same day in Sochi, where the Russia Grand Prix is slated to take place in three years. Four Formula 1 teams – Ferrari, Red Bull, Lotus Renault and Marussia Virgin, the latter flying a Russian flag in royal races, as well as KAMAZ-Master and BMW Motosport – staged demonstration races.?The Sochi Formula 1 Grand Prix will be the first in this country’s history. The course will be built near the Winter Olympics 2014 facilities. Construction will start as early as August and will be completed in 2013. The first Grand Prix Russia will probably take place in the autumn of 2014. ?The first Russian Formula 1 racer, Vitaly Petrov, was the hero of the day in Sochi. He gave autographs, posed for photos and recalled his visits to Sochi as a child. “I came with my parents. I still have pictures of myself at age three with a monkey,” he said. Petrov said that he does not yet have a favorite course. “All [courses] are different and important. It is always good to be back on a familiar course where you know how to pass the turns. I hope that the Sochi course built for the Russia Grand Prix in 2014 will become my favorite.” And why not?National Economic TrendsUnemployment Down in June While Spending, Output Rise 20 July 2011BloombergUnemployment fell to?the lowest level in?almost three years in?June and?retail sales grew for?an 18th month, helping bolster an?economic expansion in?the world's biggest energy exporter.The jobless rate dropped to?6.1 percent in?June, the?lowest since August 2008, from?6.4 percent a?month earlier, the?State Statistics Service said Tuesday by?e-mail. Accelerating job growth is helping sustain household spending, benefiting retailers such as X5 Retail Group and?Magnit. Slower inflation, led by?an easing in?food prices, is boosting incomes and?supporting consumer confidence."The economy has finally come to?the phase of?the cycle where it is more self-driven," Aurelija Augulyte, an?emerging market analyst at?Nordea Bank in?Copenhagen, wrote in?an e-mail. "Consumers will remain supported going forward by?better labor market conditions."Real disposable incomes unexpectedly grew in?June for?the first time since February, rising 0.7 percent, and?real wages advanced 4.2 percent. Retail sales rose 5.6 percent from?a year ago and?1.2 percent from?May."Consumer demand will remain strong," Ivan Tchakarov, chief economist at?Renaissance Capital, said in?a research report before the?release. Growing retail trade is "pointing to?stable consumer demand."Corporate investment grew for?a third straight month in?June, rising 4.7 percent, down from?a 7.4 percent increase in?May, the?report showed.Industrial output accelerated in?June for?the first time in?five months, led by?manufacturing, after domestic demand strengthened, according to?a report published July 15.Read more: The Moscow Times Gov't mulls selling entire state stake in Rostelecom , 20.07.2011, Moscow 11:54:48.The Russian government could privatize the entire state stake in national long-distance telecommunications operator Rostelecom in two or three years, leaving the golden share, RBC Daily reported today citing an investment fund manager managing a minority stake in Rostelecom and a source on the operator's board of directors.??????This option has been recently discussed by the relevant ministries. The golden share could be assigned to state-controlled Sberbank, one of the sources said.??????The shareholders of Rostelecom include state-controlled Svyazinvest with a 40.07% stake, National Settlement Depositary with 22.56%, Depositary Clearing Company with 11.99%. State-owned Vnesheconombank nominally holds 6.86% and owns 2.26% in Rostelecom, according to Rostelecom's website. Business, Energy or Environmental regulations or discussionsAvtovaz, Novatek and Gazprom: Russian Stock Market Preview Stephen Bierman - Jul 19, 2011 10:01 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. The 30-stock Micex Index rose 0.7 percent to 1,700.13. The dollar-denominated RTS Index climbed 1.2 percent to 1,926.23. OAO AvtoVAZ (AVAZ) : The Russian carmaker, 25 percent- owned by Renault SA, will likely post a 2 billion ruble ($71 million) profit for the first half of the year, Interfax said, citing Igor Komarov, the head of the company. AvtoVAZ fell 0.7 percent to 31.30 rubles. OAO Novatek (NOTK RX): EnBW Energie Baden-Wuerttemberg AG has offered a stake up to 25 percent in Verbundnetz Gas AG to Novatek, Handelsblatt reported, without citing anyone. Russia’s second-largest natural gas producer rose 0.6 percent to 369 rubles. OAO Gazprom (GAZP RX): Ukraine’s NAK Naftogaz Ukrainy is seeking a 120 million hryvnia ($15 million) loan from the state- run Export-Import Bank for Russian natural gas imports this month, the Ukrainska Pravda newswire said, citing company documents. Russia’s largest gas producer rose 0.9 percent to 199.87 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@. Russia's Severstal raises $500 mln via Eurobond-sources Jul 20, 2011 7:45am GMTMOSCOW, July 20 (Reuters) - Russian steel maker Severstal priced its Eurobond close to the lower end of yield guidance while cutting the size of the issue, banking sources told Reuters on Wednesday.Severstal, which reopened books on the issue after postponing it last week due to poor market conditions, set the yield at 6.25 percent for the five-year Eurobond worth $500 million, sources said.Severstal had been initially guiding investors towards a yield of at least 6 percent, increasing the premium to 6.25-6.375 percent in an effort to raise $700 million.Russia's mid-sized Credit Bank of Moscow may also issue a Eurobond, a source told Reuters earlier.Gazprombank, Russia's No.3 lender by assets, plans to start a non-deal roadshow in Asia and the United States on July, 25, another source told Reuters.Russian borrowers have raised around $20 billion via Eurobond issues so far this year. (Reporting by Oksana Kobzeva, writing by Katya Golubkova)KazakhGold to buy 10% from Polyus Gold minorities , 20.07.2011, London 10:53:31.KazakhGold will purchase 10% from the minority shareholders of Russian gold producer Polyus Gold as part of their reverse takeover, the Kazakh gold company said in a statement. Settlements will shareholders are expected to be completed by July 26. ??????Thus, KazakhGold will own 88.85% in Polyus Gold after the completion of the reverse takeover. KazakhGold has an option to acquire a 73.2% stake in Polyus Gold through a private exchange offer from Russian businessman Suleiman Kerimov and Mikhail Prokhorov's Onexim Group, as well as 5.65% of quasi-treasury shares held by Polyus Gold's subsidiary Jenington. ??????Following the reverse takeover the two gold producers will establish Polyus Gold International, which will be registered in the U.K. Island of Jersey and listed on the London Stock Exchange. The transaction is expected to be finalized by July 25. UPDATE 1-Tele2 Q2 tops forecast, raises Russia outlook IST* EBITDA 2.7 bln Swedish crowns, vs forecast 2.6 bln * Raises Russia EBITDA margin forecast * Sees Russia subscribers at top end of range (Adds quotes, background) STOCKHOLM, July 20 (Reuters) - Nordic telecoms company Tele2 (TEL2b.ST: Quote, Profile, Research) posted second-quarter core profit slightly above expectations and raised forecasts for its key Russia growth engine for the second time in six months. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period rose 1 percent to 2.71 billion crowns ($416 million), compared with a forecast for 2.64 billion in a Reuters poll. Tele2 said on Wednesday Russia had added 720,000 new subscribers during the quarter, while core profit there grew to a record 1.1 billion crowns from 944 million a year earlier. The company said it now expected its Russia operations total EBITDA margin to be in 38-40 percent range this year, up from an earlier 36-39 percent. It also said it would hit 21 million subscribers by year-end, the top of a previously given range. "We delivered positive EBITDA for the first time in our new (Russian) regions, as promised to the market," chief executive Mats Granryd said. Swedish telecoms firms have benefited from rapid recovery at home which has driven increased smartphone and mobile internet use, boosting revenues and profits. At the same time, emerging market assets have continued to develop strongly. Much of the improvement has been offset by tough conditions in other markets where they operate and from a stronger Swedish crown, which hurts reported profits. Tele2's second-quarter net sales, at 10.0 billion crowns, were down 5 percent, but up 6 percent excluding currency effects and one-off items. In Sweden, still Tele2's biggest market, the company earned 892 million crowns versus 829 million a year ago. (Editing by Dan Lalor) ($1 = 6.486 Swedish crowns) 09:17?20/07/2011ALL NEWSRating of Russia’s Alfa-Bank raised to BB+. Tass 14 LONDON, July 20 (Itar-Tass) — Fitch Ratings has raised long-term credit rating of Russia’s Alfa-Bank to BB +. The corresponding report was released on global markets on Tuesday. The agency set the credit outlook of Alfa-Bank to “stable.” The agency analysts said in a commentary that that the current raising of the rating is the result of significant qualitative improvement of the bank’s assets, as well as impressive work results. Alfa-Banking Group has maintained its position as the top Russian private bank by total assets, total equity and customer accounts, according to the bank’s website. Founded in 1990, Alfa-Banking Group offers a wide range of products and operates in all sectors of the financial market, including corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, custody services, investment banking and other ancillary services to corporate and retail customers. The corporate and retail client base has grown considerably during the last several years — by the end of 2010, Alfa-Banking Group served over 40 000 active corporate customers and 5.3 million retail clients, while the branch network extended to 364 offices across Russia and abroad, including a subsidiary bank in the Netherlands and financial subsidiaries in the United States, the United Kingdom and Cyprus. Net profit of the Alfa-Banking Group for the period amounted to USD 553 million (2009 — USD 77 million) and is the highest recorded profit in the 20-year history of Alfa Banking Group, representing a 19.1 percent return on average equity. Total equity increased by 14.1 percent to USD 3.1 billion net of a USD 150 million dividend. Alfa Banking Group maintained a high capital adequacy ratio of 18.2 percent as of December 31, 2010 (December 31, 2009 — 20.2 percent). In the reporting period Alfa Banking Group recorded an increase of its total assets of 31.6 percent from USD 21.6 billion at the end of 2009 to USD 28.5 billion at December 31, 2010, reflecting strong macroeconomic recovery and the ability of Alfa-Bank to attract new customers in both the corporate and retail segments. The key factors driving profitability were a 21.6 percent increase of net margin (from USD 1.1 billion in 2009 to USD 1.3 billion in 2010), a 24.3 percent increase of net fee and commission income (from USD 255 million in 2009 to USD 317 million in 2010), increases in net income from investments and foreign currency transactions and a reduction of provisions for loan impairment. In addition the retail business unit recorded positive profit before tax for the first time, in the amount of USD 208 million. Russia 2011 car sales seen rising up to 40 pct – PWC EDTMOSCOW, July 20 (Reuters) - Russian car sales are expected to rise by 20 to 40 percent in 2011 to 2.1 million-2.5 million units, PricewaterhouseCoopers said on Wednesday.PWC revised its full-year forecast from 35 percent after the sector's strong results in the first five months of the year.The Russian car market has been recovering rapidly from the economic crisis of 2008 and is on track to become Europe's biggest car market. (Reporting by Gleb Stolyarov, Writing by Andrey Ostroukh; Editing by Maria Kiselyova) Please respect 's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ to buy additional rights or use this link to reference the article - 20, 2011 3:34 amRenault and Nissan plan Avtovaz parts tie-upBy John Reed in MoscowRenault and Nissan are planning to produce engines and gearboxes with Avtovaz, Russia’s largest carmaker which makes the Lada, by as soon as 2013, a senior executive at the French producer said. The allied carmakers are also on course to lift Renault’s 25 per cent stake in Avtovaz to a jointly held 50 per cent-plus one-share stake by year-end, according to Bruno Ancelin, who heads the French group’s business in Russia and the former Soviet Union. The moves reflect the growing importance of Russia’s car market, which is growing strongly after sales plunged by more than half during the financial crisis. Western carmakers expect the total market to grow to 2.6m-2.7m units this year, up from 1.9m in 2010. Renault makes four models at its Moscow-based Avotframos joint venture, which currently imports most of its engines from the French company’s Dacia subsidiary in Pitesti, Romania, and some from Spain. The French carmaker also plans to produce two models at Avtovaz’s base in the Volga River city of Tolyatti. The two models will be based on its low-cost Logan car on a shared platform with the Russian carmaker, which will make two Lada-badged cars there, and Nissan, which will make one model there. Renault also needs to produce engines and transmissions in Russia to comply with Decree 166, the Kremlin’s new policy aimed at boosting foreign automakers’ local production of cars and components. “Togliatti will provide engines and gearboxes for the Moscow plant instead of engines and gearboxes coming from Western Europe,” Renault’s Russian boss told reporters at a group briefing. Joint production of engines would begin “at least two years from now”, he said. Russia forms a cornerstone of Renault boss Carlos Ghosn’s medium-term plan to boost the French producers’ sales in emerging countries as it seeks to reduce its reliance on Western Europe. Renault, Nissan and Avtovaz aim to capture a 40 per cent share of the Russian market by 2015-6 under Mr Ghosn’s midterm plan, up from just under 35 per cent now. A controlling share of Avtovaz would allow Renault to consolidate the Russian company’s financial results and sales with its own, making the three allied carmakers one of the global industry’s highest-volume producers. Avtovaz’s largest shareholder is state-owned holding group Russian Technologies, which holds a 36.5 per cent stake of the automaker. However, Moscow has indicated that it would be willing to cut this stake to 25 per cent. Mr Ancelin said Renault was likely to take a larger part than Nissan of the additional 25 per cent stake it will share with its Japanese partner.“What Mr Ghosn said is he wants the negotiation to be concluded by the end of this year”, Mr Ancelin said. However, he added that he was not part of the negotiations. Why Russian diamonds are so highly prized on world markets 19, 2011Andrey Evplanov, Rossiyskaya gazetaGlobal demand for diamonds is growing and prices are gradually returning to the pre-crisis level mainly due to soaring demand in India and China. Russia is one of the world’s main diamond suppliers. In the interview below, Valery Radashevich, member of the board of the Russian Jewellers Guild, assesses the impact of the rebounding market on the Russian jewellery industry.Could you give me an idea of the size of the Russian diamond market??Russia produces about $3 billion worth of raw diamonds and $1.2 billion worth of cut diamonds a year, according to ALROSA. Some other interesting figures: global production of raw diamonds stands at about $15 billion while the international market for diamond jewellery is valued at about $70 billion. The difference is added value. ?Where in Russia are diamonds produced??A: I should first mention former state-owned enterprises: Smolensky Kristall plant and Kristall plant in Barnaul; Kristall plant in Moscow. The latter unfortunately went bankrupt in the early years of the market economy and there are now several small firms operating on its core (in the Soviet times they all had the umbrella name Kristall). ALROSA has a diamond cutting industry in Yakutia which produces a wide range of diamonds. Another good cutting firm is Mosalmaz, and Moscow also has a large foreign company called Ruiz Diamond. All in all, there are about 50-60 diamond-cutting and polishing plants across the country. But by far the most famous, indeed legendary plant is of course in Smolensk. Along with half a dozen joint ventures with foreign companies, that cluster in Smolensk supplies very high quality diamonds. ?Is the Russian diamond-cutting industry really so powerful??That school took shape in the 1970s as the authorities paid great attention to the diamond-cutting industry. The Soviet economy required us to supply the best we had to the world market. Consequently, there were extra quality requirements to any goods that were meant for export. These criteria excluded even the slightest defects on a diamond. If a tiny speck was chipped off or there was a scratch, the diamond had to be polished smooth. The cutting and polishing quality was indeed impeccable, but at the cost of extra mass. Belgian and Israeli craftsmen do it differently - none of them would sacrifice mass, which means value. It makes no economic sense. ?Why did they not give thought to such matters in Russia? ?For the Soviet planned economy, the main thing was for a diamond to meet the GOST standard. As a result, the world market was divided into two camps: supporters of the “Russian cut” versus the Italians, Israelis and Indians, who used “commercial cutting” methods. The cost of a diamond produced using the Russian method is very high. For such production to be profitable, there had to be a market for such high-quality diamonds. Some famous brands like Cartier created such a market as they began buying Russian diamonds extensively. They bought “Russian-cut” diamonds because their price was well within the price parameters of jewellery for that famous brand. The result was top-class high-end goods. ??And this is what we discovered at the height of Russian perestroika when we started travelling to the West to attend professional forums. The foreign jewellers asked, “How can I afford to buy your diamond if my whole product costs as much as your uncut diamond?”?At a certain point, Russian jewellers thought: we are not idiots, let’s do it like the rest of the world does. But people would approach me everywhere, at forums, and they would waylay me at hotels and airports, saying, “Sir, we beg you. ‘Russian cut’ diamonds must stay. Otherwise you will lose a huge market and we will lose unique suppliers”.?Part of the reason for these twists and turns in the jewellery industry in Russia over the past 15-20 years is that the state tried to control an industry that defies mathematics. That is why, like I said, the creation of a federal precious metal and gem stone supervisory service is a step backwards. The underlying reason is that there were no competent economists in the Soviet Union or during perestroika, and there are none today. ?Have any unique diamonds been produced in Russia? ?It is mostly Gokhran (the State Precious Metals and Gems Repository in Russia) that has produced unique diamonds. Even today, to get a diamond of over 5 carats, Gokhran announces a tender among the enterprises that are prepared to cut the diamond to the required criteria. Raw diamonds are bought at an auction. If, for example, you want to have a 10-carat diamond you must buy a 30-carat raw diamond. ?If you come up with a large, outstanding diamond, it will either be kept by Gokhran or the Diamond Fund or, if it is a private order, it goes directly to the owner. Making such a diamond involves great responsibility and a fair amount of risk. What if the diamond cracks or something? What could bring in millions of dollars will turn to dust. ?What should the consumer do to protect against buying inferior goods? What should one pay attention to in choosing a piece of jewellery??The first rule is to choose the right shop. If you approach the show window and see that there are three or four tags on a piece (typically done on purpose to confuse the customer as to who is the actual manufacturer), ask the sales lady, “Who manufactured this ring?” If she cannot give you a straight answer, that should be a warning bell. ?When you take a piece in your hands you should know the producer, and there must be a certificate. ?If you go to a brand jewellery shop, be it Cartier stuff or Swiss watches, you know that this is a serious brand. ?If you bought earrings by some unspecified producer for $200-$300 and you or you sweetheart likes them very much, it is no big deal. But if you want to buy something really big and costly, or a set that will be inherited by your children and grandchildren as a family heirloom, then you should proceed more carefully. Visit exhibitions, go to the producer and then you will be assured of high quality. ?You cannot buy anything truly valuable and costly in an underpass, a flea market or an unnamed shop in the city outskirts. That applies not only to jewellery, but to all goods.Please respect 's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ to buy additional rights or use this link to reference the article - law firms: new star in the eastJuly 20, 2011 8:42 am by Stefan Wagstyl British and American law firms operating in eastern Europe have long loomed large over their local rivals.Not only have they had offered incomparably more experience and wider international reach, they have simply been bigger, with more partners, more support staff and more specialists. Not any more – On Tuesday Egorov Puginsky Afanasiev & Partners, a leading Russian law firm, and Kiev-headquartered Magisters announced they are merging to form the “largest” law group in the former Soviet Union.EPA&P will not have the likes of Baker & McKenzie or Clifford Chance quaking at their desks. According to The Lawyer European 100, EPA&P and Magisters’ combined 2010 revenues would reach about $170m. That is far behind even the 100th biggest US firm on $280m.But it will be the 17th largest firm in Europe, according to .? And, as Roman Olearchyk reported for the FT, the new firm will be the biggest in the region – at least by headcount:Please respect 's ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ to buy additional rights or use this link to reference the article - 300 lawyers – including 27 partners – the combined firm will have will mean that, by headcount, it will leapfrog over western rivals that have a presence in Russia. US and UK firms such as White & Case and Clifford Chance have been in the Russian capital for 20 years but have less than 100 lawyers apiece.Nor is it just a matter of size. Vedomosti, the Russian business daily, reported on Tuesday that one of EPA&P’s senior partners, Nikolai Egorov, was a university classmate in Soviet days of Vladimir Putin, Russia’s prime minister. He is also reported to have taught Dmitry Medvedev, Russia’s president. EPA&P’s clients include Rusal, the aluminium conglomerate headed by Oleg Deripaska. Should make for some interesting launch parties for the new firm.Activity in the Oil and Gas sector (including regulatory)EnBW offers Novatek 25 pct stake in VNG – paper Jul 20, 2011 6:26am GMTFRANKFURT, July 20 (Reuters) - German utility EnBW is offering Russia's Novatek a stake of up to a quarter in natural gas supplier Verbundnetz Gas (VNG), German daily Handelsblatt said.EnBW, short for Energie Baden-Wuerttemberg, holds an option to buy 48 percent in VNG and has offered to hand parts of that stake on to Novatek, the newspaper said on Wednesday, citing company sources.EnBW is also mulling transferring the remaining stake in VNG to a joint venture with Novatek.It is under political pressure not to sell the entire stake to Novatek because that would effectively mean putting VNG under Russian control, since Novatek's larger Russian peer Gazprom already holds 10.5 percent in VNG.EnBW was not available for comment. VNG declined to comment.The deal has not been signed yet but talks are at an advance stage, Handelsblatt said.Stuttgarter Zeitung reported this week that Novatek, Russia's largest independent natural gas producer, was negotiating a cooperation deal worth 800 million euros ($1.1 billion) with EnBW.Larger German competitor RWE said last week it was in exclusive negotiations with Russia's Gazprom over forms of cooperation. (Reporting by Ludwig Burger; Editing by David Holmes) ($1=.7043 Euro)Russia Mulls Freezing South Stream Gas Line – Report | July 20, 2011, WednesdayMoscow could soon freeze temporarily its gas pipeline project "South Stream" and increase gas export to Europe thanks to Germany as a reliable partner.The information was reported by the Russian news agency RIA Novosti, citing the Russian daily Kommersant and an unnamed source from the Russian cabinet.In August 2009, Russian Prime Minister, Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan signed an agreement to have the pipeline pass under Turkish Black Sea waters.In exchange, Moscow was to build the "Samsun-Djeihan" oil line, which is very favorable for Turkey, and to the detriment of the Russian "Burgas-Alexandroupolis" oil line, along with the first Turkish Nuclear Power Plant to be built by the Russian State company Rosatom.Despite all of the above, and Ankara's initial commitment to a December 2010, deadline, Russia is yet to receive a green light for "South Stream" to go under Turkish waters.The new deadline for the Turkish side to give an answer is November 2011, but according to same Russian cabinet source, it is very likely this deadline would end up not being adhered to.For the execution of South Stream, which is a competitor to EU-sponsored pipeline Nabucco, Russia has signed bilateral cooperation agreements with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia, and Austria. Bulgaria's neighbors Romania and Macedonia are also to be included.The South Stream pipe will start near Novorosiysk on the Russian Black Sea coast, and will go to Bulgaria's Varna; the underwater section will be 900 km long.In Bulgaria, the pipe is supposed to split in two - one pipeline going to Greece and Southern Italy, and another one going to Austria and Northern Italy through Serbia, Croatia and Slovenia.The project was initiated by Gazprom and the Italian company Eni, with French company EdF and German BASF to join as shareholders.Bulgaria's Bulgargaz, a subsidiary of the Bulgarian Energy Holding, and Gazrpom signed a road map for the construction of the Russian sponsored South Stream pipeline in Varna in July 2010, and during Putin's visit in Sofia in November 2010, they signed a shareholders' agreement for the project company, which is to construct the Bulgarian section of South Stream. Both parties will have 50% of the shares in the joint venture.The preliminary survey for the Bulgarian section of South Stream is expected to be completed by the end of March 2011, and after that Bulgaria will make a final decision on an EUR 500 M investment in its section of the South Stream project.GazpromGazprom yet to contact Turkey on Blue stream volume transfer: official (Platts)--19Jul2011/1052 am EDT/1452 GMTTurkey has received no official contact from Gazprom regarding a tender opened by state gas importer Botas to transfer 6 billion cubic meters/year from the 16 Bcm/yr it supplies via the Blue Stream pipeline to private sector companies, a spokesman for Turkey's energy ministry told Platts Tuesday."If they have a problem with the tender presumably it will become clear after September 8," he said referring to the deadline for bids and to the need for winning companies to negotiate their own "Seller's Consent Protocol" with Gazprom.Turkish daily Zaman Tuesday quoted unnamed Botas officials as claiming that Gazprom had informed the company that it would not negotiate with private companies for the transfer of volumes from the Blue Stream contract as it regarded the Blue Stream contract between Botas and Gazprom Export LLC signed in 1997 as an intergovernmental agreement which cannot be amended.Botas opened a tender in May offering private companies the chance to bid for 24 blocks of 250 million cu m/yr each of gas from the 16 Bcm/yr which arrives in Turkey via the Blue Stream pipeline under the 1997 contract. The deadline on the tender is September 8.Speaking to Platts last month Botas CEO Fazil Senol reported that more than 10 companies had purchased bid documents for the tender. Interest in the sale had been expected to be intense with as many as 20 companies planning to construct Botas is reported to be paying Gazprom for gas it has not taken under the take-or-pay clause of the 1997 agreement, due to Turkey's gas demand having grown more slowly than predicted.Three previous volume transfer tenders held over 2005-07 failed to elicit any bids for gas from the Blue Stream contract and succeeded only in selling a total of 4 Bcm/yr of gas from Turkey's 8 Bcm/yr contract with Gazprom for gas delivered via the Transbalkan pipeline.Turkey's oldest gas import contract, for 6 Bcm/yr also via the Transbalkan line which is also operated by Botas ends its 25 year term at the end of this year with Turkish energy minister Taner Yildiz stating on several occasions that Botas will not renew the contract and that he expects it to be renewed by the private sector.Under the terms of the agreement gas supply will continue on the same terms for another 5 years unless terminated by either side.Turkish energy company Aksa confirmed in early June that it had opened talks with Gazprom with the intention of taking over all or some part of the 6 Bcm/yr contract.But, speaking to Platts last month Botas CEO Fazil Senol stated that the transfer of the contract to the private sector could only be achieved through a volume transfer tender. --David O'Byrne, newsdesk@The Return of Gazprom by John Daly ?? Tuesday, 19 July 2011 13:22The December 1991 collapse of the USSR was an unmitigated disaster for all 15 nations emerging from the desiccated carapace of the Soviet Union.Now, like a plate of mercury smashed with a hammer, rivulets of the former USSR member state’s energy assets two decades later are trickling back under the control and influence of Eurasia largest energy concern, Gazprom.All the new post-Soviet states faced the triple problems of raging hyperinflation, evolving ad hoc nationalistic policies and, perhaps most importantly, coping with the detritus of Union-wide systems that suddenly deposited fragments of their former selves on the territories of the new nations.Of these debris fields, the three most important were the former USSR’s communications, transport and energy grids. Working out new relationships between the nations emerging from the USSR’s demise was a long, convoluted process, given that all three systems as a whole had been designed to serve the Soviet Union as a whole, rather than its constituent republics.Of the three above-mentioned legacies, the communications and transport networks were relatively easy to resolve – slap a new coat of paint on the railway carriage, name it after the new national railway, problem solved.The real trauma amongst the post-Soviet states began over the USSR’s energy infrastructure. Designed originally to benefit the USSR as an autarkic entity, the Soviet Union only began in the late 1970s to export its energy riches, the energy resources and natural gas and oil pipelines and electrical transmission lines suddenly became national assets, to be exploited for maximum benefit, even if it meant hammering the neighbouring economy of a former fraternal Soviet socialist republic.And the organization with the 800-lb hammer is the Russian Federation’s state-owned national gas company, Gazprom.Of the pot-Soviet space’s energy assets, two loomed above all of interest to Gazprom.In the energy-poor former western republics of the USSR, their extensive pipeline networks, particularly those of Ukraine and Belarus, that had been developed beginning in the mid-1970s not only to supply their indigenous needs but to transmit soviet gas to the burgeoning markets of Europe, despite the disapproval of the Reagan administration.Farther east, the item of interest were the natural gas assets of the Soviet Central Asian “Stans,” which could be used to meet heavily subsidized Soviet domestic requirements while natural gas produced in the Russian SSR could be shipped westward to the rich capitalist Europeans.Two recent developments have indicated that Gazprom has advanced on the chessboard in both directions.First, as regards Belarus, earlier this month Belarusian Prime Minister Mikhail Myasnikovich stated that Minsk is prepared to sell the country’s Beltransgaz pipeline network to Gazprom, a development which the Belarus government had resisted for two decades.The reason? The crushing debt, even at subsidized prices, owed by Belarus for Gazprom natural gas shipments.Farther east, Gazprom has extended its influence in Kazakhstan, the second biggest energy producer in the former Soviet Union and Russia’s closest Central Asia ally, despite the vast country being a darling of Western energy companies for its Caspian reserves. Earlier this month Gazprom announced that it had appointed Timur Kulibayev, son-in-law of Kazakh President Nursultan Nazarbayev, to its board of directors. Gazprom CEO Aleksei Miller noted that Kulibayev was a good choice because Russia and Kazakhstan have common oil and gas interests and that Gazprom was planning large projects in Kazakhstan. Given Kazakhstan’s landlocked nature, that can mean only one thing – pipelines.Kulibayev, who is chairman of the board at KazMunaiGas, is also chairman of the supervisory board of Samruk-Kazyn, the Kazakh National Welfare Fund, which controls the state’s stakes in a swathe of the country’s key industries, including KazMunaiGas and has assets of $80 billion.What does this mean for Western energy companies, which have ploughed more than $80 billion into developing Kazakh energy assets over the past two decades? Unclear – but as one analyst observed, “Americans play checkers, and the Russians play chess.”Under this metaphor, it would seem that Putin is moving closer to declaring “checkmate” over Western penetration of the energy assets of the post-Soviet space.By. John C.K.?Daly of ................
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