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Russia 100507

Basic Political Developments

• Russian calendar: Key events for May 7

o Turkmen President Gurbanguly Berdymukhamedov to visit Russia

• Prime Tass: MAJOR EVENTS LATER THIS YEAR

o May 8: Unofficial CIS and Collective Security Treaty Organization summits in Moscow

o May 8–12: Vietnam's President Nguyen Minh Triet to visit Russia

o May 9: Victory Day

o May 9: Leaders of CIS and other countries to take part in celebration of 65th anniversary of Victory Day in Moscow

o May 10: Victory Day observed, all markets closed

o May 10–11: Russian President Dmitry Medvedev to visit Syria

o May 11–12: Russian President Dmitry Medvedev to visit Turkey

• CIS SUMMIT

o News.az: No Sargsyan-Aliyev meeting scheduled in Moscow

o Trend.az: Turkmenistan attaches great importance to participation in CIS activities

• Turkish Weekly: Turkish-Russian Jec Protocol to Be Signed During Russian President's Visit - The protocol of Turkey-Russia Joint Economic Committee (JEC) is expected to be signed during Russian President Dmitry Medvedev's visit to Turkey on May 11 and 12, Turkish Energy Ministry said on Thursday.

Russia Today: Russia, South Korea expand business relations - The Sakhalin oil and gas project could be just the start of a much bigger partnership with road construction, power plants and sea port upgrades also on the agenda, says Sakhalin Region Governor, Aleksandr Khoroshavin.

• Defpro: Russia's Rostvertol hands over Mi-35M helicopters to Brazilian Air Force - In April 2010 Rostvertol plc delegation headed by Director-General Mr. Boris N. Slyusar participated in a grand ceremony on the occasion of Mi-35M handing over to Brazilian Air Force; it was the first batch of Russian-made combat helicopters adopted by Brazilian squadrons. The ceremony took place at Porto Velho airbase.

Russia Today: “US Congress to ratify new START treaty before end 2010” – expert: US Senator Richard Lugar told the Itar-Tass news agency that the new START treaty would be submitted to the Senate as early as May 7. According to Tom Collina from the Arms Control Association, the agreement would most likely be ratified by the end of the year.

• Interfax: Territorial dispute with Japan not unsolvable – Medvedev

• RUVR: Russian sailors release pirates

• Russia Today: Attackers of Russian tanker released in open sea

• Interfax: Pirates caught in tanker rescue operation released – Defense Ministry

• Itar-Tass: Australian pilots helped detect pirated Russian tanker

• Itar-Tass: Putin to inspect Novorossiisk facility for Black Sea fleet - Prime Minister Vladimir Putin will visit Novorossiisk on Friday to inspect the Military Harbor port, the construction of which was launched when Ukraine threatened to expel the Russian Black Sea fleet after the lease of the Crimean naval base expires in 2017.

• Itar-Tass: President Medvedev: two years in office - President Dmitry Medvedev will mark two years in office on Friday, which is a half of his four-year term at the helm of the country.

• RIA: Russian parliament may request ban on U.S. child adoptions

• RUVR: Moscow Metro bombing victims remembered 40 days after tragedy

• RUVR: Russian, Norwegian naval mariners to hold joint exercise in June - The Russian and Norwegian Navies have approved a joint exercise plan “Pomor-2010” (or “Coast-Dweller-2010”), to be held in the Norwegian Sea and Barents Sea from the 4th to the 15th of June.

• RUVR: The Russian trawler "Viking", whose home port is Murmansk, was arrested on Thursday

• WBJ: Forgotten agreement with Russia? - Rzeczpospolita journalists have come across a Polish-Russian deal dated July 7, 1993. It drafts up a framework for a common investigation in the case of a military aircraft going doing somewhere over the two countries. The Polish government is silent on the agreement.

• Interfax: Smolensk crash flight data presented to Polish official

• Focus: Yurii Isakov, Ambassador of the Russian Federation: interview [pic][pic][pic]- Negotiations between Gazprom and Bulgargaz for deliveries of Russian gas without subcontractors and with improved security guarantees are advancing according to the schedule agreed on corporate level, Ambassador of the Russian Federation to Bulgaria Yurii Isakov said in an interview for the Trud Daily.

• Interfax: Court will decide whether Kyrgyz defense company will go to Russia – govt

• THE KREMLIN, MOSCOW.Dmitry Medvedev held a meeting to discuss law on improving the legal status of budgetary institutions.

• RIA: Medvedev approved a guarantee of equal access of parties to the media in the regions

• Itar-Tass: Explosive device found near police department in Penza

• Regnum: Kidnappers 6-year-old girl arrested in Chechnya

• Moscow Times: Kadyrov Says He Has No Car

• Eurasia Review: Chechnya Schoolchildren Told Pushkin Advocated Studying Koran

• V-E DAY

o RIA: Roza Otunbayeva goes to Moscow for Victory Day anniversary

o Trend.az: Georgian opposition leader invited to Moscow to attend Victory Day parade - Ex-Parliamentary Speaker and Democratic Movement - United Georgia Leader Nino Burjanadze will attend the parade in honor of the victory in Great Patriotic War in Moscow. Burjanadze was invited to the parade as an honored guest, the party told Trend.

o WAZ.euobserver: Moldova's president refuses to attend 'Victory Day' in Moscow

o AFP: Russian president slams 'totalitarian' USSR

o RIA: Germans fairer than Baltics in assessing Soviet WWII role – Medvedev

o RIA: Soviet military archives from WWII must be opened – Medvedev

o RIA: Soviet people won WWII, not Stalin – Medvedev

o Russia Today: Russian president gives his view on WWII

o Interfax: Obama will not attend May 9 parade in Moscow

o RUVR: Merkel: our relationship with Medvedev is going very well

o Rossiyskaya Gazeta: Angela Merkel: We have learned from history - On the eve of the 65 th anniversary of the Victory Chancellor of Germany has given an exclusive interview with Itar-Tass, "Rossiyskaya Gazeta " and RTR

o Itar-Tass: Russian speaker thanks Germany for care for Soviet WW2 graves

o Moscow Times: Allied Troops to Join 10,500 Russian Soldiers in Victory Parade

o RIA: U.S. warship arrives in Vladivostok for Victory Day celebrations

o Moscow Times: ‘Hero for Two Nations’ Exhibit Opened by Beyrle

• Jamestown: Russian Military Personnel Crisis: Medvedev and the General Staff Join the Fray

• Financial Times: Moscow mayor's era in doubt - For 18 years, Yury Luzhkov has kept a tight grip on Moscow, lashing out at everyone from business oligarchs to homosexuals and running the city as if he was running a Chicago political machine.

• Global Voices Partners with “Echo Moskvy” - The GVO Lingua Russian team will be translating  articles that later will be featured on “Echo Moskvy” Web site.

• Reuters: PRESS DIGEST - Russia - May 7

• Russia Today: 07 May, 2010 in Russian Newspapers

o Vedomosti: A poor-free Russia - The number of Russia’s poor, despite the economic crisis, has fallen to a historic low, reports Rosstat

o Vremya Novostei: Southern labor front - Russia will have to deal with the growing rate of migration from the Caucasus

• Barentsnova: Why foreigners seek employment in Russia? - According to the Network’s research, only 7% of foreigners would like to get employed in Russia.

• Russia Profile: Foreigners’ Paradise - A New Law Seeks to Make Russia a Paradise for Highly Skilled – and Highly Paid – Foreigners

• Pravda: Newsweek Can Be Good Acquisition for Russian Oligarch

National Economic Trends

• Bloomberg: Russian Economy Grew 1.2% Last Month, VTB Capital Says

• Reuters: TABLE-Russia April GDP +1.2 pct y/y –survey

• Interfax: Banks have 617.0 bln rbs on CBR correspondent accounts on May 7

• Reuters: Russian bank balances fall to 617.0 bln rbls

• Dow Jones: Russian Ruble Hits 2010 Low Vs Dollar On Euro-Debt Fears

• Reuters: Russian rouble falls to 2010 low vs dollar

Business, Energy or Environmental regulations or discussions

• Reuters: RPT-Russian markets -- Factors to Watch on May 7

• Interfax: Russian stocks open lower on Friday; MICEX index down 2% in first minute

• Bloomberg: Sberbank Says Deputy Chief Executive Officer Dmitry Davydov Dies

• Reuters: REFILE-Russia's MDM bank says no divs for '09, shares plunge

• Fitch Rates Russia's Credit Europe Bank 'BB-'; Outlook Stable

• Reuters: Russia's OGK-5 Q1 net profit rises 137 pct-UPDATE 1

• Moscow Times: Duma Gets Bill Limiting Cross Holding Ownership - State Duma deputies have introduced a bill that would fight circular ownership structures by depriving a company's subsidiaries of voting rights and dividends fr om owning shares in the parent firm, although experts said the proposals went too far.

• Moscow Times: Rosatom’s Plans in Vietnam - Vietnam plans to build two nuclear power plants in the southern province of Ninh Thuan, near the resort city of Nha Trang, the statement said. The total capacity of the two plants will be 4,000 megawatts initially, it said.

• Steel Guru: Russian steel price movement in April from Rusmet

• Steel Guru: ThyssenKrupp to supply 4000 tonnes of steel to Moscow

• Moscow Times: Chemezov Says Beretta May Open Unit in Russia, Supply Firearms to Police

• Moscow Times: 'National Nanotechnology Network' Announced by Government

• BBR: Renaissance Appoints Global Head Of Equity Derivatives

Activity in the Oil and Gas sector (including regulatory)

• Commodity Online; TNK-BP hopeful of exploiting Iraq's oil reserves

• Oil and Gas Eurasia: Ryazan Refinery Completes Turnaround Ahead Of Schedule

• Abc.az: Rosneft intends to co-operate with Institute of Geology of Azerbaijan

• OfficialWire: Integra Group - Oil & Gas - Deals And Alliances Profile - New Report Published

• Moscow Times: Shareholder Wins Ruling Against Transneft Over Charity Funds - Navalny, a lawyer and activist shareholder, has been trying for two years to find out who receives Transneft's enormous contributions to charity. From 2005 to 2008, the company donated nearly 15 billion rubles ($494 million), but it does not disclose the recipients.

Gazprom

• Bloomberg: Gazprom Relaxes Take-or-Pay Rules for Turkey, Kommersant Says

• Steel Guru: Gazprom output dips below 1.4 billion cubic meters a day

• Oil and Gas Eurasia: New Chemicals Plant Mulled For Surgut

• Euroweek: Gazprom-Neft leads nix rumours of changes

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Full Text Articles

Basic Political Developments

Russian calendar: Key events for May 7



Turkmen President Gurbanguly Berdymukhamedov to visit Russia

Prime Tass: MAJOR EVENTS LATER THIS YEAR



May 8: Unofficial CIS and Collective Security Treaty Organization summits in Moscow

May 8–12: Vietnam's President Nguyen Minh Triet to visit Russia

May 9: Victory Day

May 9: Leaders of CIS and other countries to take part in celebration of 65th anniversary of Victory Day in Moscow

May 10: Victory Day observed, all markets closed

May 10–11: Russian President Dmitry Medvedev to visit Syria

May 11–12: Russian President Dmitry Medvedev to visit Turkey

CIS SUMMIT

News.az: No Sargsyan-Aliyev meeting scheduled in Moscow



Fri 07 May 2010 | 05:15 GMT

No meeting between Aliyev and Sargsyan in Russia.

At present, there is no meeting of Armenian President Serzh Sargsyan and his Azerbaijani counterpart Ilham Aliyev scheduled in Moscow, said RA President press secretary Armen Arzumanyan.

However, on May 8 informal summit meetings of CSTO and CIS will be held, chaired by Russian President Dmitry Medvedev, Kremlin press service reports.

Informal meetings of the CSTO and CIS members’ leaders are timed to 65th anniversary of the Victory in the Great Patriotic War. The situation in Kyrgyzstan will be in limelight of the event.

News.am

Trend.az: Turkmenistan attaches great importance to participation in CIS activities



07.05.2010 11:37

Turkmenistan, Ashgabat, May 7 / Trend H.Hasanov /

Turkmen President Gurbangulu Berdimuhamedov will pay a visit to Russia May 7to attend the informal CIS summit.

The meeting "without ties" will mull the role and significance of the Great Victory over fascism, but also consider issues of further cooperation within the CIS.

The event is timed for the celebrations to mark the 65th anniversary of the Great Victory.

"The fact of Berdimuhammedov's regular participation in regular meetings of the CIS states' heads underscores the importance attached by Turkmenistan to participation in the CIS activities as an Associate Member," the Turkmen Dovlet Khabarlary (TDH) reported.

Referring to the status of permanent neutrality acknowledged and supported by the United Nations, Ashgabat adopted a decision on its participation in the CIS structure as an associated member in 2005.

Turkmenistan's this principled position that received approval and support of the CIS members, is based "on the country's international obligations arising from the status of permanent neutrality delegated to it by the international community", TDH reported.

In recent years, Ashgabat hosted several CIS events - Film Festival, Agricultural Forum and the Summit of Foreign Ministers.

Turkish Weekly: Turkish-Russian Jec Protocol to Be Signed During Russian President's Visit



Friday, 7 May 2010

The protocol of Turkey-Russia Joint Economic Committee (JEC) is expected to be signed during Russian President Dmitry Medvedev's visit to Turkey on May 11 and 12, Turkish Energy Ministry said on Thursday.

A statement by the Ministry of Energy and Natural Resources said that the 10th term JEC meetings between Turkey and Russia were held in Ankara on Wednesday and Thursday, noting that Turkish Energy & Natural Resources Minister Taner Yildiz and Russian Deputy Prime Minister Igor Sechin chaired the meetings.

Commercial and economic relations between Turkey and Russia were discussed in all aspects during JEC meetings, it said.

Russian President Medvedev will arrive in Turkey next week upon an invitation from Turkish President Abdullah Gul.

Turkish and Russian officials will sign a series of agreements and exchange views on bilateral relations, as well as regional and international issues during Medvedev's formal visit on May 11-12, the Turkish presidential press office said on Thursday.

Friday, 7 May 2010

Russia Today: Russia, South Korea expand business relations



07 May, 2010, 22:01

A large new energy complex in the far eastern region of Sakhalin will expand economic cooperation between Russia and South Korea.

The Sakhalin oil and gas project could be just the start of a much bigger partnership with road construction, power plants and sea port upgrades also on the agenda, says Sakhalin Region Governor, Aleksandr Khoroshavin.

“Russia has a large project to offer South Korea. We want to build a diversified energy complex in the Sakhalin region. It’s a big project which includes oil and gas development, coal extraction and the construction of a big power plant. We also need to build the infrastructure like motorways and railroads.”

Russia needs to attract almost $5 billion to build such an energy cluster and hopes that much of it can come from South Korea. In Seoul everything shows what an innovative economy really looks like. But there’s something it wouldn’t work without and that is Russian gas.

Russia supplies 45% of oil and 16% of gas to South Korea from the fields at the Sakhalin region. South Korea, in turn, offers innovation. The Sakhalin 1 and 2 oil-and-gas projects relied heavily on South Korean technology. Korea was the main supplier of equipment for an offshore platform and the first LNG plant in Russia – as well as its first customer, explains Sakhalin Energy CEO, Andrey Galaev.

“Many assets of our projects are examples of innovative technology, including our offshore platforms that have been built in Korea. It’s very modern technology and almost $1.5 billion has been invested and this is the scale of work that has been done by our Korean partners.”

But Russia and South Korea want to go beyond the limits of oil and gas. With the need for almost limitless infrastructure – there will be enough business to go around.

Defpro: Russia's Rostvertol hands over Mi-35M helicopters to Brazilian Air Force 



Mi-35M helicopter has been given a new name – Sabre

07:43 GMT, May 7, 2010 In April 2010 Rostvertol plc delegation headed by Director-General Mr. Boris N. Slyusar participated in a grand ceremony on the occasion of Mi-35M handing over to Brazilian Air Force; it was the first batch of Russian-made combat helicopters adopted by Brazilian squadrons. The ceremony took place at Porto Velho airbase.

The following persons attended the ceremony: Mr. Nelson Jobim, Minister of Defence of Brazil, Mr. Juniti Saito, AF Commander-in-Chief, Lieutenant General, Mr. Nikolay P. Patrushev, Security Council Secretary, Mr. Sergey P. Akopov, the Ambassador of RF in Brazil, Mr. Anatoly P. Isaikin, Director-General of FSUE Rosoboronexport. Mr. Nelson Jobim stated that these helicopters have become a part of Brazilian nation heritage. “Our helicopter divisions have been strengthened by these rotorcraft” – said the Minister of Defence and “baptized” Mi-35M helicopters, which were given the name of Sabre AH-2 (saber stands for sward).

New helicopters will be based at Porto Velho airbase, state of Rondonia and adopted by Poti squadron which belongs to the 8-th aviation group of the second air division.

As it was reported by Brazilian mass media Sabre is the first ever combat helicopter received by Brazilian Air Force. Before H-50 Esquilo was used as an attack rotorcraft which is actually a commercial helicopter re-equipped for combat application. It is quite different the case with Sabre because it was designed as a military aircraft.

New armament system adopted by Brazilian AF features many capabilities which Brazilian pilots have not been familiar with so far. Mi-35M is capable to perform wide range of missions, including combat application of guided and unguided armament in simple and adverse weather conditions. The helicopter is amour-plated with a 23-mm double-barrel gun and APU-8/4-U missile launcher. 9K113K anti-tank armament complex includes OPS-24N observation-sighting system and GOES-342 gyro-stabilized optical-electronic station. Mi-35M Lights have been adopted for night vision goggles both of Russian and foreign production. Mi-35M has got an X-shaped tail rotor which improves direction controllability of a helicopter and decreases helicopter signature. Mi-35M has a new rotor system with composite-made blades that ensures longer life and combat survivability.

“I don’t feel nervous anymore” – said lieutenant Leonardo Bezerra Salim, one the pilots from Poti squadron who has already got the feel of new helicopters. “It’s a new step in operational deployment which has been anticipated by many generations of pilots”.

Sabre helicopters will improve the ability to response to threat immediately and strengthen Brazilian Air Force in the area of Amazon outfall. This area is of a big strategic importance for the nation. New aircraft will be used for air patrolling and supporting land troops fighting with trespassers in border area. Brazilian Air Force Command transferred Poti squadron from Recife (state of Pernambuku) to Porto Velho specially for the adaptation of helicopters.

“We will keep Amazonian region safe both for us and the whole world and it is known nationwide” – so the Minister of Defence of Brazil. “Poti squadron armed with newest AH-2 Sabre will become the most powerful mean of protection. From today we are ready to resist any threat” – emphasized Mr. Jobim. 

Russia Today: “US Congress to ratify new START treaty before end 2010” – expert



07 May, 2010, 06:31

In the coming days President Barack Obama will submit the new Russia-US nuclear arms reduction treaty to Congress for ratification. Expert told RT that despite criticism, US lawmakers are likely to approve the deal.

US Senator Richard Lugar told the Itar-Tass news agency that the new START treaty would be submitted to the Senate as early as May 7. According to Tom Collina from the Arms Control Association, the agreement would most likely be ratified by the end of the year.

“Senate critics have raised two premiere arguments. One – that the treaty constrains missile defense and the other – that the Obama administration is not doing enough to enhance or renew the nuclear stockpile,” he said.

“The administration dealt with both of those. On the first – the treaty does not prevent the US from pursuing the missile defense plans it currently has. There is nothing in the treaty that would prevent US plans from moving forward and even conservative critics have admitted as much,” noted Collina.

“The other, in terms of modernization – the administration has submitted a budget that will significantly increase the weapons complex activities that they are pursuing. So, on both accounts the administration really has addressed those concerns.”

The Russian and US presidents signed the historic new START treaty on April 8 in Prague. The Obama administration considers the agreement to be a major step toward the president's goal of a nuclear-free world, AP reported.

As Dmitry Medvedev pointed out earlier, both countries agreed to launch the ratification process simultaneously so “nobody would be embarrassed”.

Chairman of the Duma Committee on International Affairs, Konstantin Kosachev, said the ratification of the START treaty will be easier in Russia than in the US.

“We will have a substantial discussion and we will proceed with the ratification only when we know that we [have not made] any mistakes and this treaty is good for Russia, it’s good for its national security, it does not damage our national interests and so on and so forth,” Kosachev told RT. “It is not easy either in Russia, but again it’s much more difficult in the States, and this is why we want to synchronize our procedures.”

May 07, 2010 09:02

Interfax: Territorial dispute with Japan not unsolvable – Medvedev



MOSCOW. May 7 (Interfax) - Russia and Japan can resolve the territorial issue in a historical perspective by renouncing their extreme positions, Russian President Dmitry Medvedev said.

"I think, if the matter is addressed actively and honestly, if the so-called extreme points of view are abandoned, then eventually this problem will be solvable in a historical perspective," the president said in an interview with the Izvestia newspaper.

"There are problems, including the well-known territorial problem, and the peace treaty which the Japanese tie to the resolution of the territorial issue. This is a very complicated problem, but it does not mean that it does not need to be addressed," Medvedev said.

"We are trying to address this issue, based on our own ideas about how it could be solved to reflect primarily Russia's interests. Our Japanese partners are doing the same," Medvedev said.

"You know, we have not been at war with Japan since 1956, when the well-known declaration [the Soviet-Japanese Joint Declaration of October 19, 1956] was signed, our countries have stabilized relations, political and economic contacts are growing," Medvedev said.

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RUVR: Russian sailors release pirates



May 7, 2010 05:37 Moscow Time

Russian sailors have released the pirates who seized the Russian tanker Moscow University, because international law does not allow them to be prosecuted. An hour after the pirates release, their boat disappeared from radar, a source in the Ministry of Defense of Russia told RIA Novosti.

President Dmitry Medvedev, earlier at a meeting with Defense Minister Anatoly Serdyukov, said that the Foreign Ministry and the Defense Ministry will commission a study to go over issues relating to the establishment of an international legal framework for combating piracy. According to President Medvedev, everyone knows that piracy is evil but can not agree on how to deal with it.

Floating under the Liberian flag the tanker Moscow University, which was carrying 23 Russian sailors, was captured on Wednesday. On Thursday morning she was released by Russian Marines from the antisubmarine destroyer "Marshal Shaposhnikov", which is participating in the international mission to combat pirates off the coast of Somalia. During the assault on the pirates the counterterrorism units detained ten criminals, one of them was killed.

Russia Today: Attackers of Russian tanker released in open sea



07 May, 2010, 10:39

The Russian Navy has had to release 10 Somalis, captured earlier in an operation to rescue a seized tanker. There was no legal way to prosecute them for piracy.

The move is a result of “the imperfection of the international legal territory,” explained spokesman for the Defense Ministry, Colonel Aleksey Kuznetsov.

The detainees had been disarmed by Russian marines, transported into their own speedboat and left to their own devices. An hour later, the boat was no longer detected by the destroyer Marshal Shaposhnikov, which performed the rescue operation.

Earlier on Thursday Russian President Dmitry Medvedev said the lack of an international legal agreement on how to prosecute Somali pirates undermined the effort to eradicate piracy in the region.

Two boats boarded the tanker Moskovsky Universitet on Wednesday, as it was transporting 86 tonnes of crude oil along the coast of Somalia. Russian crew members send a distress call and barricaded themselves in the engine room, shutting down all the machinery.

Several hours later, the Russian Navy ship Marshal Shaposhnikov arrived, after receiving exact co-ordinates from an Australian reconnaissance plane. In a 22-minute-long night operation, marines boarded the drifting tanker, killing one of the attackers and detaining 10 others. Another group of pirates managed to escape in one of the two boats.

May 07, 2010 10:29

Interfax: Pirates caught in tanker rescue operation released – Defense Ministry



MOSCOW. May 7 (Interfax-AVN) - The Russian Defense Ministry has officially confirmed reports that the pirates, who hijacked the oil tanker the Moscow University, have been set free.

"This is due to imperfections in international law," Defense Ministry spokesman Col. Alexei Kuznetsov told Interfax-AVN on Friday.

Earlier reports said that Russian Marines stormed the hijacked tanker, disarmed the pirates and put them onto their own boat.

The navigation gear they had was seized, and all the pirates were placed in one boat and left at the scene of the incident.

In about 60 minutes, their radio signals went off the air, according to radio monitoring data.

The Moscow University, carrying 86,000 tonnes of oil, was seized by pirates on Wednesday 350 miles east of the Gulf of Aden. The large submarine destroyer the Marshal Shaposhnikov freed the crew in a rescue operation on Thursday.

Ten pirates were detained and one was killed, spokesman for the Investigative Committee of the Russian Prosecutor General's Office Vladimir Markin told Interfax earlier.

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Itar-Tass: Australian pilots helped detect pirated Russian tanker



07.05.2010, 07.31

WASHINGTON, May 7 (Itar-Tass) -- An Australian P3 patrol aircraft assisted in the safe rescue of a pirated Russian vessel in the Gulf of Aden on Thursday, the Bahrain-based Combined Maritime Forces (CMF) said.

The aircraft was dispatched to locate MV Moscow University, a Liberian-flagged, Russian-owned 240-meter crude oil tanker that came under pirate attack on Wednesday.

After locating the vessel and sharing its position with the Russian Marshal Shaposhnikov warship, the tanker was subsequently boarded by a Russian team and the suspected pirates were apprehended with no injuries sustained by the 23-member crew, the CMF said.

Itar-Tass: Putin to inspect Novorossiisk facility for Black Sea fleet



07.05.2010, 06.39

MOSCOW, May 7 (Itar-Tass) -- Prime Minister Vladimir Putin will visit Novorossiisk on Friday to inspect the Military Harbor port, the construction of which was launched when Ukraine threatened to expel the Russian Black Sea fleet after the lease of the Crimean naval base expires in 2017.

However last month Russia and Ukraine agreed to extend the lease for 25 years up to 2042.

The Military Harbor port has been under construction since 2005 in compliance with the federal program for Black Sea fleet deployment on the Russian territory.

Itar-Tass: President Medvedev: two years in office



07.05.2010, 06.02

MOSCOW, May 7 (Itar-Tass) -- President Dmitry Medvedev will mark two years in office on Friday, which is a half of his four-year term at the helm of the country.

The two years were not easy as there were numerous misfortunes that began with the Georgian aggression against South Ossetia followed by deteriorated relationship with Ukraine, the economic crisis, and a series of terrorist acts and disasters. Even sport luck has turned its back on Russia, which failed to qualify for the UEFA World Cup in South Africa and poorly performed at Vancouver Olympics.

“I would have been glad to share responsibility with someone else in the most dramatic moments like in August 2008 during the conflict in the Caucasus. But I have to make the most important and difficult decisions myself,” said Medvedev, who turned 45 in 2009 and is a new-generation leader and advocate of modern outlooks.

RIA: Russian parliament may request ban on U.S. child adoptions



07:0007/05/2010

The lower chamber of the Russian parliament will discuss on Friday sending a proposal to the Russian prime minister to consider suspending adoptions of Russian children by U.S. citizens.

The proposal requests Vladimir Putin to freeze child adoptions and to speed up the conclusion of a Russian-U.S. intergovernmental agreement on the issue

The issue of international adoptions in Russia came back into focus recently when a 7-year-old boy was put on a plane alone back to Moscow with a note from his U.S. adoptive mother, who said he was "psychopathic."

The State Duma's committee on the issues of family, women and children said it did not support the request as "the head of the Russian government is not entitled to suspend adoptions of Russian children by foreign nationals."

Russia needs to amend its Family Code to freeze international adoptions. It can be done only through a special State Duma bill, or a presidential decree.

So far, Russian officials can only freeze licenses of foreign adoption agencies on its territory.

The request was submitted for discussion by the three Russian opposition parties currently in the State Duma - the Communists, the Liberal Democratic Party of Russia and the A Just Russia party.

A Russian foreign ministry official in charge of preparing a bilateral Russian-U.S. agreement on adoptions was invited to attend the discussion.

Russian Foreign Minister Sergei Lavrov said last month that Russia could freeze child adoptions by U.S. citizens until the two states sign an intergovernmental agreement on adoptions.

Key talks to discuss a draft agreement are planned in Moscow for May 12.

MOSCOW, May 7 (RIA Novosti)

RUVR: Moscow Metro bombing victims remembered 40 days after tragedy



|May 7, 2010 09:49 Moscow Time |

Today is 40 days since the March 29th acts of terror in the Moscow Metro, so the 40 passengers killed in the attacks at the Lubyanka and Park Kultury stations are remembered in this country. Another some 100 people were wounded. Today Moscovites again bring flowers, light candles and place the photos of blast victims at the sites of their death. Memorial services are being conducted at the Orthodox churches. The panikhida service is being held at the Lubyanka station. Meanwhile 10 people, injured in the blasts, are still at Moscow hospitals. The attacks were launched by two female kamikaze bombers, involved with criminal gangs in the North Caucasus. 

RUVR: Russian, Norwegian naval mariners to hold joint exercise in June



|May 7, 2010 11:59 Moscow Time |

The Russian and Norwegian Navies have approved a joint exercise plan “Pomor-2010” (or “Coast-Dweller-2010”), to be held in the Norwegian Sea and Barents Sea from the 4th to the 15th of June. The two-day conference to plan the exercise was held aboard the large submarine hunter Severomorsk. The parties to the forthcoming exercise will drill coordinated action in the Arctic, specifically firing artillery guns at air and surface targets, holding an anti-pirate operation, releasing an oil rig from armed extremists and rescuing seamen in distress.  

RUVR: The Russian trawler "Viking", whose home port is Murmansk, was arrested on Thursday



|May 7, 2010 00:35 Moscow Time |

The Russian trawler "Viking", whose home port is Murmansk, was arrested on Thursday in the fisheries protection zone established by Norway near the Svalbard archipelago, this per a representative of the Norway Coast Guard Trond Johansen. According to him, the Norwegian inspectors patrolling the area by helicopter, spotted the Russian vessel dumping fish. "This is a particularly serious violation in Norway," said Johansen. What the crew reported showed inconsistencies with the actual catch. Currently, the Viking is in the port of Tromso, where she was escorted by the coastguard vessel (Senja). "Local police have launched an investigation on suspicion of illegal fishing by the trawler." said Johansen.

WBJ: Forgotten agreement with Russia?



7th May 2010

Rzeczpospolita journalists have come across a Polish-Russian deal dated July 7, 1993.

It drafts up a framework for a common investigation in the case of a military aircraft going doing somewhere over the two countries.

The Polish government is silent on the agreement.

Meanwhile, nearly a month after the tragedy that saw Polish president Lech Kaczyński die in a plane crash over Smolensk, the public still doesn't know why Russia is leading the investigation alone, nor why Warsaw didn't lobby Moscow for an equal role in the investigation.

Source: Rzeczpospolita

Interfax: Smolensk crash flight data presented to Polish official



Today at 10:26 | Interfax-Ukraine

Moscow, May 7 (Interfax) - Jerzy Miller, who chairs the Polish governmental commission investigating the crash of Polish President Lech Kaczynski's plane, visited the Interstate Aviation Committee (IAC) in Moscow on Thursday to see the deciphered flight data from the Polish airplane, which crashed near Smolensk on April 10.

IAC chairwoman Tatyana Anodina met with Miller, who is also Poland's Interior Minister and chief of administration, in Moscow on Thursday, the IAC told Interfax.

"Miller was given an opportunity to hear fragments of the recorded speech from the flight recorder. He also saw the results of the deciphered flight data and the enormous work that has been carried out by Polish specialists who identified the voices in the cockpit," the IAC said.

The Polish side was informed in detail about the progress in the technical investigation of the Tupolev Tu-154 crash, the IAC said. The investigation is conducted in line with international requirements and standards of the Chicago Convention and in close cooperation with the Polish investigator in charge and a large group of Polish experts, the IAC said.

"Poland stressed the importance of the crash technical investigation being conducted by such an authoritative international organization as the Interstate Aviation Committee, which is registered with the International Civil Aviation Association (ICAO) and has a large impeccable experience in international investigation," the IAC said.

The Polish presidential plane crashed near Smolensk on April 10. All 96 people who were on board the plane died. The high-ranking Polish delegation was due to attend the mourning ceremony in Katyn, where Soviet security forces executed Polish officers in 1940.

Focus: Yurii Isakov, Ambassador of the Russian Federation: interview [pic][pic][pic]



7 May 2010 | 04:40 | FOCUS News Agency [pic][pic][pic]

Sofia. Negotiations between Gazprom and Bulgargaz for deliveries of Russian gas without subcontractors and with improved security guarantees are advancing according to the schedule agreed on corporate level, Ambassador of the Russian Federation to Bulgaria Yurii Isakov said in an interview for the Trud Daily. So far the Bulgarian state has not approached the Russian embassy for assistance. I am convinced that both sides will find the best solution, Isakov also said.

South Stream is making good progress. The required pre-investment agreement on corporate and government level were signed with the European partners, Ambassador Isakov said further. Gazprom’s expectations are for the technical and economic assessment to be ready in 2011. The launch is scheduled for 2015 but for the completion of the schedule more actions should be taken by the company partners in the project, Isakov concluded.

May 07, 2010 11:51

Interfax: Court will decide whether Kyrgyz defense company will go to Russia – govt



BISHKEK. May 7 (Interfax-AVN) - The interim Kyrgyz government will turn to a court to find out whether the Dastan company could be handed over to Russia, interim Deputy Prime Minister Azimbek Beknazarov told the media on Friday.

"We have referred the case of the Dastan transactional corporation to the court, which will decide whether it can be handed over to the Russian side," Beknazarov said,

Dastan is a military-industrial company, set up in the Soviet era, which makes components for the Shkval anti-submarine torpedo. It also has a testing facility on the shores of Lake Issyk-Kul.

A plan to hand over a 100% stake of Dastan to Russia in exchange for writing off the principle part of Kyrgyzstan's debt to Russia, amounting to $182 million, has been considered since the time when Askar Akayev was president. But following a corporate seizure in 2007, the post of director was filled by an associate of former President Kurmanbek Bakiyev's son. The Kyrgyz government offered Russia only a 38% stake in the company then.

sd mj

May 6, 2010

17:00

THE KREMLIN, MOSCOW.Dmitry Medvedev held a meeting to discuss law on improving the legal status of budgetary institutions.



The law, which affects education, healthcare, social services, and culture, has already been passed by the State Duma in its third reading and elicited debate within society.

After listening to cabinet ministers, the President noted that new elements in the law have been drilled through experiments. The changes contemplated by the law will make resource spending more transparent, Mr Medvedev said. The law will also promote the fight against corruption.

The meeting was attended by Minister of Public Health and Social Development Tatyana Golikova, Minister of Culture Alexander Avdeyev, Minister of Education and Science Andrei Fursenko, and Presidential Aide and Head of the State-Legal Directorate Larisa Brychyova.

RIA: Medvedev approved a guarantee of equal access of parties to the media in the regions



Plot: The law on political parties equal access to media in regions

05/07/2010 9:35

MOSCOW, May 7 - RIA Novosti. Russian President Dmitry Medvedev signed a federal law guaranteeing equal access for political parties to the regional media reported on Friday, the Kremlin press service.

This is proposed to determine in each subject of the RF one regional state television and radio, on which the party will get air time. In the absence of a federal constituent regional television or radio coverage of the political parties by any other television or radio.

Monitoring for equal access for political parties in the media is vested in the Electoral Commission of the RF subjects.

Changes made to Article 32 of the federal law "On political parties".

The signed document was adopted by the President of the State Duma on April 16 and approved by the Federation Council April 28, 2010.

The Act implements the provisions of the message the Head of State Federal Assembly in 2009, related to the assurance of equality of political parties represented in the legislative bodies of the RF subjects, with coverage of their activities.

Itar-Tass: Explosive device found near police department in Penza



07.05.2010, 10.57

PENZA, May 7 (Itar-Tass) -- An explosive device equivalent to three kilograms of TNT was found near the police department in Penza, ITAR-TASS learnt at the law enforcement bodies on Friday.

“On Thursday, at 22.05 Moscow time, officers of the patrol service found a homemade explosive device near the building of the police department in Lenin Street,” a law enforcer said. The explosive device consisted of a five-liter plastic jerrycan filled with a mixture of aluminum powder and ammoniac nitrate, a detonator and shrapnel.

“The explosive device was defused. A search operation is underway,” the law enforcer said.

Regnum: Kidnappers 6-year-old girl arrested in Chechnya



GOOGLE TRANSLATION

In Chechnya, arrested two men who kidnapped 6-year-old girl for ransom. The abduction occurred when she left the store owned by his mother, and went home. The kidnappers phoned the girl's parents and demanded 2 million rubles ransom, reports the Voice of Russia.

To organize the search and the release of Girls was formed task force, which together with the FSB staff managed to get on the trail of the kidnappers. They were two residents of the village of Chechen-Aul. Both men were detained.

It turned out that the girl was kept in an apartment in Grozny. Also detained hosts this apartment. They explain his acts as a desire "to earn big money." Currently, the girl returned home.

Moscow Times: Kadyrov Says He Has No Car



07 May 2010

The Moscow Times

Chechen President Ramzan Kadyrov owns no cars and lives in a cramped 36-square-meter apartment in Grozny, making him one of Russia's poorest regional leaders — at least on paper.

According to his newly released income declaration, Kadyrov earned 4 million rubles ($131,000) last year, a slight increase from 3.4 million rubles in 2008, but the car that he declared in last year's statement is gone.

Kadyrov said he lives in a three-room, 36-square-meter apartment in Grozny. A posh family estate in the Chechen village of Tsentoroi is owned by his mother, Vedomosti reported.

Kadyrov's 2008 declaration listed a VAZ-21053 car among his personal assets. His spokesman, Alvi Karimov, could not say what happened to the car.

Kadyrov's wife, Medina, owns a 209-square-meter apartment, according to the declaration. Of his seven children, two own a stake in his wife's apartment, and the rest, all underage, have no property.

In 2006, two businessmen presented Kadyrov with a Ferrari and other luxury cars, including a Lexus and a Lamborgini, which were photographed parked by Kadyrov's family house. Karimov had no comment on any of these vehicles.

Kadyrov is also a collector of racehorses, including an Irish-bred stallion named Tsentoroi. He has said the horses belong to Chechnya, not to him personally.

All senior officials are supposed to declare their income and some assets under an anti-corruption drive initiated by President Dmitry Medvedev last year. The deadline for regional leaders to file their declarations with the tax authorities and publish them on their regional web sites was Friday, April 30. Kadyrov did not say why he waited until this week to publish his declaration.

Eurasia Review: Chechnya Schoolchildren Told Pushkin Advocated Studying Koran



Friday, May 07, 2010

By Paul Goble

Chechen President Ramzan Kadyrov has done many things that one might reasonably expect would offend people of good will in Russia, but now he and his administration have taken a step certain to offend many of them: suggesting that Chechen pupils that Russia’s national poet Aleksandr Pushkin wanted everyone to study the Koran.

In an article in  “Gazeta,” Olesya Gerasimenko notes that Chechnya is one of the 19 regions of the Russian Federation in which the foundations of religious culture and civic ethics has been introduced, with 99.64 percent of all pupils there selecting Islam as their course of study (gazeta.ru/social/2010/05/05/3362767.shtml).

Only 73 of the 20,000 students in the fourth class, the Moscow journalist says, have chosen to study Orthodoxy. And that tilt, she continues, is reinforced by two other developments, one that has attracted some attention and another that few Russians appear to know about.

On the one hand, Chechen leader Kadyrov has said that “in each village there must be a mosque, a hospital and a school,” hardly the commitment of a secular leader or one interested in supporting all “traditional” faiths. And on the other, pupils in the fifth through the 11th classes already study “Waynakh ethnics,” the single subject taught exclusively in Chechen.

In these classes, Gerasimenko notes, students are taught “how to interact with their parents, meet their obligations and celebration national holidays, in short about the Muslim way of life but not about the religion as such.” And the Chechen authorities have decided that “even children from Russian families must study Islamic culture” in the religious courses.

The “Gazeta” journalist visited several of these classes. In one, the teacher asked “how was Aleksandr Sergeyegich Pushkin connected with Islam?” One student responded, “He was sent to the Caucasus and then he found he liked Muslims very much, especially the idea that when you believe in God, then everything will go well.”

Another said that “Pushkin himself wanted to accept the Islamic faith, but he wasn’t able to do so!” And the teacher summed up the discussion: “However things were in fact, we hardly know will be able to find out. This means that Pushkin, like all the prophets, is calling on us to study the Koran,” hardly a message many Orthodox Russians would find comforting.

Gerasimenko notes that “in the 30 lessons of the textbook about Islamic culture, there is nothing about Shiites and Sunnis and not a word about Wahhabism.” In general, she says, teachers are to avoid the subject of Wahhabism, although if asked about it, the teachers can say that a Wahhabi is not a Muslim.

Whatever impact these messages have on Muslim children, the way they affect non-Muslims is at a minimum problematic. One Armenian Christian noted that her baptized son was nonetheless being told about Islam and that in his classes, he had been careful not to talk about his own faith.

A local Russian Orthodox priest expressed his concerns about Christian children in Muslim classes. He said many Orthodox believers in Chechnya are asked “why they do not accept Islam and so on.” That represents, he suggests, the actions of what can only be called “a concealed Islamization.”

“You must understand,” he told the Moscow journalist, “that it is one thing to say ‘I’m Orthodox in Ryazan, and [quite] another to say the same thing in Grozny.” That is clearly a reality, but it may not be one that many elsewhere will be happy with and may even lead to a decline in the number of people who support the very idea of religious courses in schools.

V-E DAY

RIA: Roza Otunbayeva goes to Moscow for Victory Day anniversary



GOOGLE TRANSLATION

06/05/2010 16:38

BISHKEK, May 6 - RIA Novosti. Chairman of the Provisional Government of Kyrgyzstan Roza Otunbaeva take part in the celebration of Victory Day in Moscow, told RIA Novosti on Thursday, Acting Chief of Staff Prime Minister Edil Baisalov.

"Otunbayeva will arrive in Moscow at the invitation of the Russian Federation", - he said.

In Moscow, Otunbayeva plans to hold bilateral meetings with leaders of several states that would be in these days in the capital of Russia.

To participate in the Victory Parade in Red Square have already left 75 personnel of the National Guard in Kyrgyzstan. At the celebrations in Moscow will also be attended by several kirgizstantsev-World War II veterans.

Seventh-April, opposition supporters took the House of the Kyrgyz government, power was transferred to the interim government, headed by Otunbayeva. President Kurmanbek Bakiyev on April 16 left the country and wrote a statement of resignation. The Provisional Government, composed of representatives of the leading opposition parties in the country, assumed the functions of the president, government and parliament.

Trend.az: Georgian opposition leader invited to Moscow to attend Victory Day parade



07.05.2010 11:51

Georgia, Tbilisi, May 7 / Trend N.Kirtzkhalia /

Ex-Parliamentary Speaker and Democratic Movement - United Georgia Leader Nino Burjanadze will attend the parade in honor of the victory in Great Patriotic War in Moscow. Burjanadze was invited to the parade as an honored guest, the party told Trend.

The party reported that Burjanadze will not hold official meetings in the framework of the Moscow visit .

The 65th anniversary of Victory Day is celebrated with a special scale and the leaders of many countries will meet in Moscow to mark the victory.

Moscow reported that it did not want to see Georgian President Mikhail Saakashvili in the parade.

WAZ.euobserver: Moldova's president refuses to attend 'Victory Day' in Moscow



DAN ALEXE

Today @ 08:27 CET

Moldova's interim president Mihai Ghimpu has bared his political teeth at Russia's military presence in his country and annoyed the Kremlin by announcing he will not participate in the traditional military parade on Moscow's Red Square. The lavish parade, set for the 9 May, will mark the 65th anniversary of the defeat of Nazi Germany.

To celebrate the occasion, known as Victory Day, Russia has for the first time invited foreign troops, including representatives of the US and British armies. They are scheduled to march alongside Russian soldiers in the parade.

In a surprise move however, Moldova's president declared he would not attend the ceremony, although he will be in Moscow the day before, for the summit of the Commonwealth of Independent States (CIS).

"We do not belong there," Mr Ghimpu stated of the 9 May events. "How can I participate in a parade next to the army that brought us Communism, which inflicted hunger on us and deported us to Siberia?"

Tiny Moldova's statement provoked a quick reaction from its huge neighbour, although surprisingly, Russia's foreign minister Sergei Lavrov directed his disapproval at Romania rather than at Mr Ghimpu.

Bucharest is trying to shape Moldova's attitude toward Russia, Mr Lavrov suggested. "We recognise Moldova as a sovereign independent state", said the Russian politician, "but not all Moldova's neighbours do so. Their Western neighbours refuse to regard the Moldovans as a nation. If I were in Mr Ghimpu's shoes, I would be concerned precisely about this issue," Mr Lavrov pointed out. But Mr Ghimpu remained on the political offensive. "Romania is not the country keeping an army on Moldovan territory", he retorted, referring to the 18-year-long presence of Russian troops in Transnistria, the separatist Moldovan region.

In an interview with the Russian daily Kommersant published on Wednesday, Mr Ghimpu reiterated that he would not go to the parade. He asked Moscow to pull its troops out of Transdnistria and to stop protecting the separatist local leader Igor Smirnov.

Moldova shares a long and complex history with both Romania and Russia. The country used to be part of Romania until 1940, when it was occupied by Soviet troops. Romania was the first to recognize Moldova's independence in 1991, but refused to sign a border treaty with it.

Mr Ghimpu has been cautious towards Moscow during his service as interim president, while his friendliness to Bucharest is well-known. He even said his country's language is Romanian – instead of the fictitious "Moldovan" elevated to official status for more than half a century by the Communist rulers.

AFP: Russian president slams 'totalitarian' USSR



(AFP) – 1 hour ago

MOSCOW — President Dmitry Medvedev on Friday slammed the Soviet Union as a totalitarian regime that suppressed rights, in the most damning assessment of the USSR by a Russian leader in recent years.

In an interview with the Izvestia newspaper published two days before Russia marks the 65th anniversary of victory in World War II, Medvedev added that the crimes of wartime dictator Joseph Stalin can never be forgiven.

"The Soviet Union was a very complicated state and if we speak honestly the regime that was built in the Soviet Union... cannot be called anything other than totalitarian," he said.

"Unfortunately, this was a regime where elementary rights and freedoms were suppressed."

Medvedev and his predecessor in the Kremlin, current Prime Minister Vladimir Putin, have until now rarely criticised the Soviet system and instead focused on its achievements.

Putin, still seen by most as Russia's de-facto number one, once famously described the collapse of the Soviet Union as the "greatest geopolitical catastrophe" of the 20th century.

Medvedev also gave his clearest condemnation yet of the crimes of Stalin, who is blamed for the deaths of millions in prison camps, purges and forced collectivization but is still admired by many Russians as a strong leader.

"Stalin committed a mass of crimes against his own people," said Medvedev.

"And despite the fact that he worked a lot, and despite the fact that under his leadership the country recorded many successes, what was done to his own people cannot be forgiven."

Russia is due to mark Victory Day on Sunday with a giant military parade attended by a host of world leaders and featuring 10,000 Russian troops, nuclear-capable missiles as well as NATO member state soldiers.

RIA: Germans fairer than Baltics in assessing Soviet WWII role – Medvedev



11:2607/05/2010

MOSCOW, May 7 (RIA Novosti) - The German assessment of the Soviet Union's role in World War II is fairer than those of the Baltic States, Russian President Dmitry Medvedev said in an interview with Izvestia daily.

"I want to emphasize that the Germans in this sense behave much more worthily than, say, some representatives of the Baltic States, even though it is a very painful subject," Medvedev said in an interview released on Friday.

Russia has long been at odds with Estonia, Latvia and Lithuania, as well as Poland, over perceived attempts to rewrite the history of World War II and diminish the Soviet role in the defeat of Nazi Germany.

"Certainly, nobody idealizes the role of the Soviet Union in the postwar period, but no matter what executioners cannot be called victims. Those who put the Red Army and fascist invaders on the same level are committing a moral crime," Medvedev said.

Medvedev also touched upon the postwar period's decisions including the one the Nuremberg court had made declaring the Nazi crimes as the crimes against humanity.

"There indeed the Nazi crimes were qualified as crimes against humanity. These crimes have no period of limitation," Medvedev said, adding that the responsibility for such crimes should also not be diminished by time.

RIA: Soviet military archives from WWII must be opened – Medvedev



10:2107/05/2010

Most of the secret Russian military archives of the World War II-era must be opened, President Dmitry Medvedev said in an interview with Izvestia daily.

"Eventually, I believe we must create a system of military archives that will allow any Russian citizen and any interested foreign citizen to have practically free access to any unclassified document," Medvedev said, adding that almost all military documents should now go into the public domain.

Answering a question about the possibility of having the military documents online, Medvedev said "it is not just high time - we have been working on this with all our strength."

He said that opening up of documents was an important way to prevent the falsification of history.

Russia fiercely resists interpretation of the events of World War II that diminish the Soviet role in the defeat of Nazi Germany, but Medvedev said that Moscow had also been guilty of concealing the truth, such as over the Katyn massacre of thousands of Polish military officers by Soviet secret police in 1940.

"It is a very dark page. And a dark page on which there was no truth," Medvedev said, adding that even though the archives on this issue were opened long ago, the pervading sense of secrecy was such that the debate was not put to rest.

"Despite the fact that the documents were declassified, I again ordered that all of them be displayed. But the debate is still going. Why? Because the topic was hidden - first, and second, it was presented with a totally false position," he said.

The president said he is a big hi-tech fan as it is very convenient for dealing with large amounts of information. He admitted, though, that there was an upside to scanning through piles of huge documents, as he had to in the past.

"It definitely had its advantages, as the person unwittingly learnt a mass of interesting materials combined in a digest or in a book," Medvedev said.

MOSCOW, May 7 (RIA Novosti) 

RIA: Soviet people won WWII, not Stalin – Medvedev



09:4407/05/2010

The defeat of Nazi Germany in World War II was down to the Soviet people not dictator Joseph Stalin, whose crimes against the nation cannot be justified, Russian President Dmitry Medvedev said in an interview broadcast on Friday.

Russia marks the 65th anniversary of victory in Europe on Sunday, and the official view of Stalin's role has been controversial. Russia describes its military efforts in 1941-45 as the Great Patriotic War.

Medvedev told the Izvestia newspaper that the state's position was that the dictator committed mass crimes against the people, but he said individuals were entitled to their own opinions.

"There are absolutely obvious things - the Great Patriotic War was won by our people, neither Stalin nor even the generals did anything as important as they did. Yes, their role was, of course, very serious, but at the same time, the people won the war at the cost of great efforts, at the cost of a great many lives," he said in the interview, which was broadcast on state television.

"Some people believe the role of the supreme commander was extraordinary, some believe it was not. The question is not that, but how we appreciate the very figure of Stalin in general. If we talk about the official assessment of Stalin assessed by the government in recent years, since the emergence of the new Russian state, there is a clear assessment - Stalin committed mass crimes against the people. And despite the fact that he worked hard, despite the fact that under his leadership the country succeeded, what was done to its people cannot be forgiven," the president said.

He added that people who hate Stalin or love him are entitled to their point of view.

"And the fact that many veterans, people of the generation of victors have a good view of Stalin - it is not surprising. I think they have that right. Everyone has the right to their own assessment," Medvedev said. "It is another issue that this kind of personal assessment should not affect the state's assessment."

The president categorically rejected the view that Stalinism is experiencing a revival in Russia.

"If we talk about respect for Stalin and some other leaders, then in the 90 years [of communist rule] there were many admirers of this man, but nobody talked about the renaissance of Stalinism," Medvedev said, noting that some historical figures can be idolized, particularly by young people.

"Of course, for most people in the world the figure of Stalin is clear - he does not cause any warm feelings," he said.

"But in any case it cannot be said that Stalinism has returned to our everyday life... This is absolutely ruled out," Medvedev said.

MOSCOW, May 7 (RIA Novosti)

Russia Today: Russian president gives his view on WWII



07 May, 2010, 09:15

Dmitry Medvedev gave his take on World War II in interview with Izvestia newspaper. The victory over Nazi Germany belongs to the people first and foremost, not the military commanders, the Russian leader said.

Izvestia: Mr. Medvedev, you probably remember how in the past they often said that every family in our country was affected by the war in one way or another. How did the war affect your family?

DM: The war really affected every Soviet family – some more, some less. Both of my grandfathers fought in the war; they both went through all kinds of trials during the war. When I visited my grandfather Afanasy as a little boy (he lived in Krasnodar), he told me stories about the war. It had a great impact on me. He always spoke from the heart, with tears in his eyes. He told me about things that no one really wrote about back then. He fought a lot, in different places, had a serious wound, and received many awards. His stories spoke to me. I really took them to heart.

My other grandfather Veniamin also told me a lot about the war and what he felt back then. I still remember him telling me how difficult it was to shoot at people, how awful it felt, how hard it was to do that even though he knew that he was defending his country, his family, from the invaders who had come to our land, killing our people, burning down our towns and villages. It is a very personal thing. For some reason, when I was little I didn’t think much about it.

I: You and I were born after the great victory. You were born twenty years after the victory, that’s a long time. And even though you were surrounded by people who fought in the war, for you the war is part of history, not part of your life. How have your views on the Great Patriotic War changed over the years and who influenced your views? Who influenced you in changing your attitude towards various facts of this war and how?

DM: What was the Great Patriotic War for our country? A huge armada of invaders attacked our country, inflicting pain and death. No matter how many years pass, you cannot change this fact. So of course, this war is part of history, but it’s part of recent history, and that’s my point.

So, my views on the war have not changed radically. Of course, something changed, because we got access to many materials only in the late 1980s or the early 1990s, when archive materials were declassified and published, and we gained access to some sources previously closed to the public. For a long time the war was portrayed only as a great victory of the Soviet people and the Red Army. But the war was also a huge number of deaths and immense suffering that the Soviet people went through together with other European countries. So, in this sense, I guess my views changed to a degree.

I: A year ago you created a special Commission to Counter Attempts to Falsify History. What prompted you to do this? And what particular facts were falsified in your opinion?

DM: What prompted me was the disgusting conduct of some politicians who used pseudo-academic interpretations of those events for their own petty purposes, just to score some extra political points. But our main goal is not to respond to specific people. After all, God will judge them, so to speak. The main thing is our future. What memories will we pass down to future generations? What will our children and grandchildren think about the war? What will they know about the war? What lessons will they learn from this war?

You know, for our generation, for those of our age, for older ones, and for those who are younger, the words “fascism” and “Nazism” have a strong negative connotation. But, unfortunately, this is not true for everyone. For instance, in Europe, in many countries, fascists are being rehabilitated. Even in our country there are freaks who use Nazi symbols and hold all kinds of gatherings under Nazi slogans.

So, this is truly important. But the main thing is, we need to tell people the truth. And what is the truth?

Our people – those who lived in our country at the time – had no other choice. They could either die or become slaves. There was no other choice. So that’s the first thing. And that is an irrefutable fact.

Second. There is the question of who started the war, whose fault it was, who committed the crime. The answer, again, is totally obvious. It is recorded in the materials of the Nuremberg Trials, in official documents, and also in the memory of a great number of people. Any attempt to misrepresent historic facts looks very much like malicious intent.

So in my opinion, we need to present the truth. It doesn’t mean that our job is to argue with different interpretations of various events of the war period, or to fight some scientific theories. Scholars can propose their theories, argue their points, but there are some facts that don’t need proof because they are either obvious or they were settled and recorded in international documents, such as the materials of the Nuremberg Trials. These are the issues we shouldn’t argue about, because such arguments would take us down a very bad road.

I: But we have to take into account the fact that different nations have different memories. Some countries may have different views concerning the liberation of their territory by the Red Army. How can we make sure that liberators are honored as liberators? What does Russia need to do in this respect?

DM: Of course, every country has its own history, and it doesn’t make any sense to try to convince everyone that what happened after the war was always good for the liberated countries. We would not be totally honest if we said that. Of course, we have to understand that if the Soviet Union and other Allies had not liberated Europe, Europe would have been very different today. Most likely, it would have been one big concentration camp, serving the interests of one nation. Most of the people who live in Europe today would not have even been alive.

The Soviet Union was a very complex state, and frankly, the regime that ruled the country after the well-known events, was definitely totalitarian.

But this is what historians and all sensible people should be able to do – separate the mission of the Red Army and the Soviet state during the war from what happened afterwards. Yes, it is hard to draw the line in real life, but we have to do it, in order to emphasize again: had it not been for the Soviet Army and the colossal sacrifice that the Soviet people brought to the altar of this war, Europe would have been different. Clearly, Europe would not have been as prosperous, safe, wealthy and constantly developing as it is today. And only a deaf person will not hear this argument.

No one is trying to idealize the role that the Soviet Union played after the war. But we should never confuse butchers and victims. Those who say that our army played the same role as the fascist invaders commit a moral crime.

I’d like to mention that the Germans conduct themselves much more decently in this matter than, say, some in the Baltic states, even though this is a very sensitive issue for Germany. On the other hand, there are some post-war decisions that haven’t been reversed—and I strongly believe they can never be reversed. I am talking about the decisions of the Nuremberg Trials, for example. It was there that the crimes committed by the Nazis were qualified as crimes against humanity. There is no statute of limitations on those crimes, and people should be punished for them no matter how much time has elapsed.

I: But, Mr. Medvedev, when European countries prosecute elderly, senile Nazis today, people spontaneously start to wonder whether there is any point in prosecuting them. May be we should just pardon them all? Many years have passed; somehow they survived. Maybe it makes sense not to prosecute them, so that awful history doesn’t repeat itself…

DM: I will share my personal opinion, which coincides with the position of the Nuremberg Tribunal on this issue. These crimes have no statute of limitations, no matter whom we are talking about. You are probably talking about the case of Ivan Demyanyuk – even though I don’t want to discuss individual cases here. This is our moral responsibility before future generations, and if we turn a blind eye to these crimes now, feeling sorry for the criminals, then such crimes could be repeated in the future in one form or another, in one country or another. So it may sound harsh, but these crimes really don’t have a statute of limitations, meaning that those who committed them should be prosecuted and punished, no matter how old they are.

I: In Western countries victory is attributed to the West – the Allies won the war, and the Soviet Union just participated. So it’s like we are losing our victory. Many people don’t know anything about the huge losses the Soviet Union sustained in this war. They don’t know that it was the Red Army that captured Berlin. There are many things they don’t know. What can we do in order not to lose our victory?

DM: The fact is, almost three-quarters of all the losses the Nazi troops sustained were on the Eastern Front, in fighting the Soviet Union. About 70 per cent of all casualties and losses were inflicted by our soldiers. That is the truth.

But, of course, you can make movies about that. And if you do it professionally, and we know that our Western partners are very good at making films, then you can make everybody think that the victory was won in the West, and Saving Private Ryan will be regarded as the ultimate authority on the issue. It is a pretty good movie, by the way; it was done professionally. But that doesn’t mean it tells the truth.

I: You mentioned casualties. It is hard to speak about figures, but under Stalin the official number was 14 million; under Khrushchev and Brezhnev, 20 million; under Gorbachev, the number grew to 27 million, and the issue is still being researched. Do you think we will ever get the final number and find out how many people we actually lost?

DM: It is a difficult subject. 14 million, 20 million, 27 million are huge, gigantic, incomprehensible numbers. But we should not simplify the situation. We need to finish this work.

What is this work? We need to clarify what kind of casualties we are talking about. There were immediate casualties – those who were killed in action, and those who died of their wounds – either during the war or after the war. Then, there are those who were captured and died as prisoners of war, those who died of starvation, those killed during air raids, those who died on occupied territory. All archives have been declassified, no problems there. And this work is currently underway, co-ordinated by the General Staff.

I: Recently you were asked to share your opinion on the role Stalin played in this war. Our newspaper can’t help asking the same question again from the following angle – yes, Stalin was the leader of our country during this very difficult time. Yes, Stalin led our country to victory. But what right do we have to turn a tyrant, who destroyed so many of his countrymen, into a hero, only because he held the highest post at the time. For example, Hitler did many things for Germany: he solved the problem of unemployment during the Great Depression, built roads and so forth, but no one there is trying to turn this terrible person into a hero. Unfortunately, in our country we now see more followers of Stalin. And those are mostly young people who don’t know what it was like under his rule. What should we do?

DM: You have raised a number of issues here. First of all, let me point out some obvious facts. It was our people who won the Great Patriotic War, not Stalin, not even military commanders, even though their role was very important. It was the people who won the war. They went through tremendous hardships, and a great number of people paid with their lives for this victory.

As for the role Stalin played, opinions vary. Some say his role as the Supreme Commander-in-Chief was crucial, others disagree. The official position of the Russian leadership after Russia emerged as a new nation has been clear: Stalin committed many crimes against his people. And even though he worked a lot, even though the country achieved a lot under his leadership, we cannot pardon him for what he did to his people. That’s the first thing.

Secondly, people who like Stalin or hate Stalin are entitled to their own opinion. It is no surprise that many war veterans, people who won that war, like Stalin. But these personal opinions should not influence the official position, which is clear, and I just now reiterated it to you. Sometimes I think that this topic is over-emphasized. For example, if we look at the way people view Stalin and some other leaders, I don’t think he had fewer followers in the 1990s. Yet back then no one talked about the renaissance of Stalinism. Now all of a sudden this has become an issue. Yes, at times historic figures become idols that people worship. Sometimes it is the young people who do it, especially young people with leftist views. But it would be totally wrong to say that Stalinism is becoming our everyday reality that we are going to use some of the symbols of the past, some posters, or something else. It is not happening, and it will not happen. That is absolutely out of the question. This is our official ideology today, if you will, and my position as the president of the Russian Federation. So the main thing here is to draw a line between personal opinions and the official position of our state.

I: Any war is, among other things, a hard lesson both for those victorious and those defeated, and first and foremost for politicians who lead the countries fighting in the war. Many years have passed since then. Now you are a leader of a great country. What are the lessons of that war for you? What is important for you in terms of what should be done or, on the contrary, what shouldn’t be done?

DM: The main lesson is that we must, together with other countries, with other members of the international community, do our best to remove such threats. Any attempts to appease an aggressor, a dictator, usually don’t yield a positive outcome, especially after this dictator has grown strong and got going. Therefore our task today is to create a reliable system of international security. The current system of international security is not perfect, and I had to mention this more than once. That is why we came up with the idea to create a new European security structure—a European Security Treaty. The idea is obvious enough, even though it received a mixed reaction. Some think it is a clever plan Russia designed to weaken NATO, to drive a wedge between the United States and European countries and play them against each other. I have mentioned more than once that this treaty pursues quite different goals. We must simply find a forum where we can address a whole range of various problems. We must find a way to resolve differences. Had we had effective institutions for European security, we could have definitely avoided the events of August 2008. There could have been an international arbitration between the parts of Georgia that wanted independence and the core Georgia. International mechanisms could have been used. That did not happen. Another, sadder thing happened. People were killed. A military conflict erupted, and we had to resolve it. Therefore, this task is not abstract or diplomatic; it is absolutely practical. It is to provide security on our continent.

I: Mr. Medvedev, after the Iron Curtain fell and our people began to travel around the world, one can often hear a bitter question: “Why do the defeated live in better conditions than the victors?”

DM: During the Great Patriotic War, during World War II, the Soviet Union achieved the most important goal: it defeated a very strong enemy, destroyed it and created conditions for Europe’s free development. It paid a huge price for that, at the same time helping all the people of Greater Europe. After that, the Soviet Union took its own path. I don’t believe that the economic system and the political system we had after the war were fit for normal development. Hence the difference in living standards and the way people feel. Indeed, it hurts and all of us have had these feelings, especially when we went abroad for the first time. At the same time we were aware of the price we paid for Europe’s well-being – for all that material abundance, bright shop windows, well-to-do people and the smiles on their faces. And we did not have a definite answer as to why what we had was different. Had the Soviet Union been more competitive and had conditions for economic development based on modern principles, everything could have been different and the Soviet Union could have been more appealing to our people, and we could have avoided those dramatic events of the late 1980s and the early 1990s that eventually led to its disintegration.

I: Mr. Medvedev, the anti-Hitler coalition united countries that seemed impossible to unite, and this union was effective: they defeated a powerful, well-organised enemy. The bloc system remained after the victory, with two giant blocs created. But the situation changed, and today our country is no longer a member of a big, powerful bloc. Of course, we are member of the Collective Security Treaty Organisation. Yet this bloc cannot be compared with, say, NATO. Does it make sense for Russia to join a military bloc today? If yes, which bloc should it join?

DM: As I have already mentioned to you, I believe the end of the Cold War and of bloc mentality helped unite Europe and produced a Europe where life is comfortable and interesting. I mean both Western Europe, Eastern Europe and the Russian Federation. So, the bloc system is good for nothing, although some think that blocs provide balance. They say, “When we had the Warsaw Pact and NATO, everything was balanced. As soon as one of the blocs collapsed, conflicts and turf wars ensued.” It is a lopsided position, although it’s obviously important to have counterbalances in the world. The question is, what kind of counterbalances do we need? Should they be based on weapons only? Should they be based on a strategic deterrent alone? In my view, the answer is no. This is why we talk about a multi-polar world. Otherwise, we have to reach the conclusion that only one system of bloc security can provide security and prosperity on our planet. But that’s not true, and the events of the 1990s – some of which, incidentally, happened in Europe – the events in the Middle East, in the Caucasus and other places have demonstrated that, unfortunately, no bloc can fulfil its purpose and maintain security at a proper level. Hence, we need to create mechanisms that would work outside blocs.

At the same time, we do have certain obligations before our partners. We have the CSTO – the Collective Security Treaty Organisation, which comprises some nations that are very close to us. It’s not a military bloc in the traditional sense. It is an organisation that ensures security of its member states. According to the CSTO Charter, an attack against any of the member states is considered an attack against all, just like in NATO. But this does not mean that we should return to bloc mentality and turn the CSTO into a new Warsaw Pact, build up our arsenal and compete with NATO. We know what impact such competition had on the Soviet Union, how exhausting the arms race was for our country and what the outcome was: inefficient economy, no market, an endless arms race, and the collapse of the state.

At the same time, we surely should preserve our strategic capabilities. The world is complex, and a lot of countries are seeking nuclear weapons. From time to time, they threaten the world with a big nuclear stick, or threaten to produce nuclear weapons. They test new hardware. Considering this, we cannot forget about security. Therefore our strategic nuclear component is a very efficient element in protecting our national interests. We should not overestimate its significance, but we shouldn’t underestimate either – and the way it affects the balance of forces in the world. So we must improve our defence system and at the same time work out agreements with our main partners, which is actually what we did recently when we signed a new START Treaty with the United States. We set a certain limit, and we reached a compromise that allows us to protect our interests and allows the Americans to protect their interests without wreaking havoc. I think this is the best way.

I: Do you think there is at least a hypothetical possibility of a military conflict that would be similar to World War II in scale?

DM: Unfortunately, such a conflict is possible, because there are all sorts of countries on our planet, and they have all kinds of interests. This planet has a huge amount of weapons, and there are people who still consider war as a means for solving their political problems. After all, accidents will happen. So we must be prepared. What do we need for that?

As I have mentioned, international efforts are necessary. We need to work with the international community, in the United Nations, and in the OSCE in Europe. We need new treaties like the European Security Treaty. We are working on this and will continue to do so. And, of course, we must be strong.

I: It’s been 20 years without the Soviet Union, but it seems as if the Cold War is not over. Why do you think some in the United States and Western Europe still view our country with suspicion? And what should be done to dispel this suspicion?

DM: In fact, I can tell you more: people in Russia, too, are suspicious of America, other NATO members and even other countries that are simply major players on the international arena. Why is that? It’s because of our history, the way we used to perceive each other. You and I remember well what we had in the Soviet period. We had a set of stereotypes concerning each other. Just recall what they used to tell us at school about Americans and Europeans. This position was totally based on ideology. It pursued obvious goals – to make us consider people who lived there as our enemies.

They had the same thing. In fact many stereotypes of the past are still here today, more or less. Perhaps, it is particularly true in the West, because, frankly speaking, many of our people wanted a new life in the late 1980s and the early 1990s. And there was a kind of romantic period in our relations with the West. We thought they would welcome us as an open, modern country that no longer threatened anybody. We thought we would quickly and easily be integrated with other civilised developed nations.

Something different followed though. First of all, we ourselves were not fully ready to do this quickly. But they, too, were not fully ready to give up their stereotypes.

If you listen to what parliaments and political circles in other countries discuss, you may be amazed. There are all sorts of vestiges from the Cold War, some absolutely foolish things. For example, restrictions that were imposed on the Soviet Union long ago. Or their concept of how things work in Russia. Or even their idea of how we live in our daily life. You know, sometimes I watch Hollywood movies, and even though they have excellent actors, an excellent cast, perfect scene sequence and a big budget, the way they portray Russia today is just a bunch of absurd, ludicrous ideas. Russia is a country where it is always raining or snowing, where everything is bad, people are mean, all they can do is drink vodka all the time, they are aggressive, they like to fight, they can attack you any moment – you have to keep an eye on them, otherwise, they will stab you in the back. Everything is bad!

I understand that perhaps they don’t do it on purpose. It’s not like they want to create a conflict between our countries. But these stereotypes prevent us from understanding each other and poisons the atmosphere on our planet.

I: Russia and Japan haven’t signed a peace treaty yet. Japan refuses to sign the treaty before Russia returns the South Kuril Islands, and this story has been dragging on for 65 years. Do you think a peace treaty between Russia and Japan will ever be concluded? And what would be its terms?

DM: As you know, we are no longer at war with Japan after we signed a declaration in 1956. We have normalized our relations, and we are developing our political and economic contacts. There are problems, of course, including the well-known territorial problem, the problem of a peace treaty that Japan links to the territorial dispute. It is a very complex problem, but it does not mean we should not address it. We are working on it. We have our own ideas about how it could be resolved, taking into account, first and foremost, the interests of the Russian Federation. Our Japanese partners are doing the same.

I believe if we work actively and fairly, and if we abandon extreme positions, eventually this problem may be resolved at some point.

I: Thank you, Mr. Medvedev, for the interview! Our best wishes on Victory Day!

A: Thank you very much. I wish you and your newspaper all the best and through your newspaper, I would like to congratulate our veterans and our entire country, because this holiday is extremely popular among our people.

05/07 09:21   Obama will not attend May 9 parade in Moscow



RUVR: Merkel: our relationship with Medvedev is going very well



May 7, 2010 02:31 Moscow Time

Merkel: our relationship with Medvedev is going very well. The relationship between the Chancellor of Germany and the Russian president has been formed very well, said Prime Minister Angela Merkel on Thursday in an interview to be published in Rossiyskaya Gazeta. "It is good that we talk very openly, we are talking about the situations in our countries, and I am very happy to cooperate with him. However, apart from the personal aspects, there is another aspect as well, and that is for the political leaders of our countries to more closely share their views and opinions so that there is no suggestion that they are directed especially against one another." Merkel said. "For example, I think it's very, very good that Prime Minister Vladimir Putin invited the Polish Prime Minister to Russia, on the occasion of Katyn," said the Federal Chancellor. "For Germany as a neighbor of Poland, of course, it is also important that we have good relations with Poland", she added. Merkel stressed that she is pleased with the invitation to celebrate Victory Day in Moscow. "Naturally, I am glad that as federal chancellor of Germany I was invited to this celebration, this day of remembrance," said the head of Germany. According to her, "This is far from a self-evident point that the German Federal Chancellor may take part in the event."It shows that we have learned from history, that we now live in peace and friendship among ourselves", underlined Merkel. "Nevertheless, for me it would be a very touching event, because we know how much suffering the Second World War brought Russia, how many people died and gave their lives," she added. "Naturally, all this will be in my heart when I go to Moscow", the head of the German government summed up.

Rossiyskaya Gazeta: Angela Merkel: We have learned from history



|On the eve of the 65 th anniversary of the Victory Chancellor of Germany has given an exclusive interview with Itar-Tass, |

|"Rossiyskaya Gazeta " and RTR |

|Mikhail Gusman |

|"Российская газета" - Центральный выпуск №5177 (98) от 7 мая 2010 г. |

|Версия для печати / сохранить материал |

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- Mrs. Chancellor, thank you for the opportunity to meet with you on the eve of your visit to Moscow at the invitation of President Dmitry Medvedev. At this time you are going to Moscow on a special occasion. We acknowledge the 65 years since the end of World War II victory over fascism. With what feelings you are going to Moscow this time?

- Naturally, I am glad that as federal chancellor of Germany was invited to this celebration, this day of remembrance. It is not self-evident that the German Federal Chancellor may take part in this event. This shows that we have learned from history that we now live in peace and friendship among themselves. Nevertheless, for me it would be very touching event, because we know how the suffering brought Russia Second World War, many people died, gave their lives. Naturally, all this will be in my heart when I go to Moscow.

- You, Madam Chancellor, grew up in the GDR, studied in the GDR. Now you - the federal chancellor of a united Germany. From the height of these years, what do you think May 8-9, 1945?

- Naturally, the Soviet Union, together with other allies liberated Germany, which led to the end of World War II. Looking back, we see that very, very many Germans were killed in the name of a terrible war, National Socialism, which, in fact, has all this responsibility. And we will liberate not forget - none of the allies. Then, however, there came a time when we certainly were not satisfied with the political system, which was built in the former GDR, and which, naturally, was also under the strong influence of the dominant Soviet Union. Today, we are very glad that later, under President Gorbachev, we still received great assistance in the implementation of the Unity that time the Soviet Union and now Russia have also said that Germany must once again become united. This gave us an excellent foundation for the current very closely.

- And in this regard, I have a question: what lessons should be learned by today's youth, which, fortunately, did not know the horrors of war in Germany, Russia, the world not to repeat this terrible evil called fascism.

- In Germany, we are naturally very, very much, and with each generation re-engaged in a question, how could it come to that this dictatorial system like National Socialism, could bring such evil throughout the world. And many young people learn again, as happened in detail, who had the courage, and who had the courage, and vice versa - he joined the National Socialists. And the time will come when we will no longer be witnesses, it happens in Russia, and Germany, who could tell us about their personal experiences. But we should take a lesson from this that we can peacefully co-operate, to do everything, tie a connection, so that the war would never have arisen. And I am confident that we are today we have the right to tell people that in this we have moved far ahead.

- Mrs. Chancellor, frankly, as far as I can tell, you, Russia ties a bit more than maybe someone from the other heads of state. You are a student, visited the Soviet Union, then you, as even today we have seen, still remember the Russian language very well, in my opinion, they own it. What to you is Russia today and how you see the development of Russian-Germany relations in the future, especially because this year we celebrate the anniversary of the establishment of diplomatic relations between our countries.

- Naturally, I look at the development of Russia with great interest. I think that Russia has quite a difficult time for Russia, on the one hand, is a large, proud country, but on the other hand, the economy should be much more to happen. Russia has great natural wealth, it is a good starting base. But I also support President Medvedev, who said that Russia can do much more in the industry today, and we are also making efforts to explore ways of cooperation with Russia - whether in a modern automobile, or information and communication technology. And I know that the Russian government, Prime Minister Vladimir Putin, but first and foremost, President Medvedev emphasized that all moving forward. In doing so, we want Russia to maintain. In addition, Russia can be proud of its traditions, its culture, and I always liked the Russian language, which I willingly taught the language of Dostoevsky, Tolstoy. All this is for Europe, something magnificent, and it should still tie Europe closer to Russia.

- You mentioned our president, Dmitry Medvedev. You are, incidentally, were the first Western leader who has established personal relationship with him. How is what is called "chemistry", personal contacts with the Russian President.

- It is good that we talk very openly, we are talking about the situation in our countries, and I am very happy to cooperate with him. But beyond the personal dimension that we will gladly cooperate, there is a problem that our political leaders of our countries more closely share their views, but that no one there is no suggestion that it is directed against someone else. For example, I believe very, very well, that Prime Minister Vladimir Putin invited the Polish Prime Minister on the occasion of Katyn. For Germany as a neighbor of Poland is naturally also important that we have good relations also with Poland. Moscow is also chairman of the Sejm and the current president. And it is very important signals that we in Europe can not act against each other. Talking about this, to overcome the old ditches - all these can be Russian president perfectly.

- The last question, Madame Chancellor. You know, more and more important role as far as I can judge, in the life of Germany took the Russian-speaking community. In addition, Germany is now published several Russian newspapers, is the Russian radio. How do you assess the role of what is called a Russian in Germany in the modern life of the country?

- In Germany, a Russian community, but of course it still focuses more heavily on the former East Germany than in the "old" Federal Republic of. And I think that we should extend it also to the whole of Germany. Russia is our important partner, and I am glad that the Russian language is taught in many schools in the West. And the feeling that the person knows the language, it is necessary to move forward, not only in eastern Germany, but also in the west. This we will continue to support. However, there are many other very, very good business contacts of civil societies, for example, "Petersburg Dialogue", which I very much welcome. All this we must move forward, and we must approach them unconventionally. Do not just read a piece of paper, you need to speak from the heart, freely, then the relationship between our nations become much intensified.

- Thank you, Madam Chancellor, for this conversation. And before we leave, can I ask you to say some words, some suggestions to Russians, who will you watch on their television screens?

- I wish to have the Russian population was a good, emotional celebration. We are from the German side will think about what contribution was made in the war against National Socialism, and I'll be glad to attend the celebration of those who then killed or wounded. Today, we fortunately live in friendship, and Germany will always remain a partner and a friend of Russia.

- Thank you, Madam Chancellor, thank you.

- Thank you (from Ed. - On this issue the chancellor is responsible in Russian).

Itar-Tass: Russian speaker thanks Germany for care for Soviet WW2 graves



07.05.2010, 02.30

BERLIN, May 7 (Itar-Tass) -- Russian Federation Council speaker Sergei Mironov thanked German Bundesrat President Jens B·hrnsen on Thursday for care for Soviet war memorials.

“We highly appreciate the efforts of German authorities to preserve Soviet war monuments and memorials,” he said at a meeting with Bohrnsen after laying a wreath to the Soviet Memorial in Treptow Park.

Mironov said it was specifically important on the background of “the blasphemous campaign unleashed in several Central and East European countries against Russian war memorials and graves.”

He also expressed concern over attempts to “belittle the liberation role of the Red Army, Soviet assistance to post-war restoration of East Germany, the role of our country in the process of German unification.”

Moscow Times: Allied Troops to Join 10,500 Russian Soldiers in Victory Parade



07 May 2010

By Alexander Bratersky

More than 10,500 Russian soldiers will march for the first time alongside troops from the United States, France, Britain and Poland in a larger-than-life parade to commemorate the 65th anniversary of the defeat of Nazi Germany this weekend, Defense Minister Anatoly Serdyukov said Thursday.

The Victory Day parade, which will start at 10 a.m. Sunday, will also include servicemen from nine other former Soviet republics, and 25 foreign leaders are to join President Dmitry Medvedev in the stands to watch the procession on Red Square.

The one-hour parade will feature six types of defense equipment for the first time — the Pantsir-S1 and Buratino air-defense systems, the Topol-M intercontinental ballistic missile, the Yak-130 trainer and the Mi-28 and Ka-52 helicopters, Vedomosti reported.

A total of 161 tanks and missiles will roll through the square, and 127 aircraft will soar over it, Serdyukov said.

Rehearsals for the parade have been going on for the past week, shutting down traffic in downtown Moscow for several hours every day.

“We see preparations for the parade as an element of our military preparedness,” Serdyukov said in an interview published in Rossiiskaya Gazeta.

The foreign troops are training together with their Russian counterparts.

“I think they are just as glad to take part in the parade as we are,” Serdyukov said.

On Wednesday, Defense Ministry officials presented the visiting servicemen with commemorative medals in red boxes for participating in the parade.

Serdyukov said the USS Blue Ridge and USS Kaufman warships would make friendly calls to Vladivostok and Murmansk on Sunday. The French anti-submarine frigate Latouche-Treville will also visit Murmansk.

Among the foreign leaders planning to attend are French President Nicolas Sarkozy, German Chancellor Angela Merkel and Chinese President Hu Jintao.

The presidents of Azerbaijan, Armenia, Kazakhstan, Tajikistan and Turkmenistan will watch their troops march on Red Square. Kyrgyzstan will be represented by the head of the interim government, Roza Otunbayeva.

Creating a minor flap, the Defense Ministry first rejected and then approved an application by the Turkmen commander to lead his troops on horseback. The only commander to lead the troops on horseback previously was Red Army Marshal Georgy Zhukov during the first Victory Day parade in 1945.

Acting Moldovan President Mihai Ghimpu, whose government ousted a Russia-friendly regime last year, declined an invitation to attend this year’s parade, and his country will be represented by its ambassador to Moscow. Moldova earlier balked at sending troops to the parade, citing the cost, but will be represented by a contingent.

Troops from Belarus and Ukraine will also march, but their countries’ leaders opted to attend Victory Day parades at home instead of in Moscow.

Georgian President Mikheil Saakashvili, who fought a brief war with Russia in August 2008, was not invited, Kremlin aide Sergei Prikhodko said.

In total, more than 102,000 Russian troops will take part in military parades around the country, Serdyukov said.

Streets near Red Square will be partly closed to traffic from 5 a.m. Sunday until the end of the parade, including Tverskaya Ulitsa, Novy Arbat, Novinsky Bulvar, police said.

RIA: U.S. warship arrives in Vladivostok for Victory Day celebrations



07:2707/05/2010

The U.S. Navy's Seventh Fleet command ship USS Blue Ridge arrived in the Russian Far Eastern port of Vladivostok on Friday to take part in Victory Day celebrations.

Seventh Fleet Commander, Vice Adm. John M. Bird, also arrived in Vladivostok on an official visit. He will attend festivities dedicated to the 65th anniversary of the Allied victory in the World War II.

A spokesman for the U.S. Consulate-General in Russia's Far East told RIA Novosti on Thursday that the Blue Ridge crew would take part in a military parade in downtown Vladivostok to symbolize the allied relations between the United States and Russia during the Second World War.

The cultural agenda of the visit includes a "culinary duel" between the U.S. and Russian sailors, a number of sport events, and visits to local schools and children's hospitals.

The world famous Seventh Fleet Band will perform several concerts at various events and on the streets of Vladivostok.

VLADIVOSTOK, May 7 (RIA Novosti)

Moscow Times: ‘Hero for Two Nations’ Exhibit Opened by Beyrle



07 May 2010

By Shura Collinson

Three days before Victory Day, U.S. Ambassador John Beyrle opened an exhibition in Moscow dedicated to his father, who is believed to be one of just a handful of U.S. soldiers to fight for both the Soviets and the Americans during World War II.

“A Hero for Two Nations” celebrates the life of “Jumpin’ Joe” Beyrle, who joined up with Soviet troops after escaping fr om a German prison camp.

Beyrle was captured by the Germans after parachuting into Normandy on D-Day in June 1944. Sergeant Beyrle, a member of the 101st Airborne’s “Screamin’ Eagles,” was moved through seven Nazi prison camps, tortured and interrogated.

His parents were told that he had been killed in action, after American troops found his dog tags on another body — presumably a Nazi spy — on Utah Beach. A memorial service was held for him in his hometown of Muskegon, Michigan. But four months later, they received a postcard from their son, sent with the help of the Red Cross, telling them that he was a POW in Germany.

In January 1945, on his third escape attempt, Beyrle succeeded and broke out from the Stalag III-C prison camp in the village of Alt-Drewitz. He decided that his best option would be to locate Soviet troops — the only U.S. ally fighting in the area.

Once he encountered a Soviet tank brigade, Beyrle approached them with his hands in the air. “I knew two words of Russian: ‘amerikansky tovarishch,’” or American comrade, Beyrle would later recall. In his own account of his adventure, he reported winning the soldiers’ trust by using his demolition skills to blow up trees that were hindering the brigade’s advance.

He progressed with the unit toward Berlin, fighting alongside the Soviets and liberating the same POW camp from which he had escaped along the way. After being badly wounded in a German attack, he met Russia’s celebrated commander, Marshal Georgy Zhukov, at the field hospital wh ere he was being treated.

Zhukov gave Beyrle a letter of transit to the U.S. Embassy in Moscow. There he had to convince the embassy to take his fingerprints before they would believe that he really was who he said he was — after all, Joseph Beyrle was supposed to be dead. Finally he was allowed to make his way home.

In “A Hero for Two Nations,” the items on display include the telegraph sent by the U.S. War Department to Beyrle’s parents telling them that he had been killed, a postcard written by Beyrle to his parents from a German prison camp, his army uniform and other personal items, as well as historic photos of the D-Day landings and some modern pieces of art inspired by

Beyrle’s story and created especially for the exhibition.

“Although people call my father a hero for two nations, my father did not consider himself to be a hero,” John Beyrle said at the exhibition’s opening at its first venue, the Stroganov Palace in St. Petersburg, earlier this year.

“He always said that heroes were those who did not return from the front. He never forgot how — when he escaped from the prison camp in 1945, when he was hungry and helpless — the Soviet soldiers helped him. He fought alongside them for two weeks, they saved his life in a field hospital and helped him get to the American Embassy in Moscow.”

The exhibition reflects a broader theme than the extraordinary wartime achievements of one man. Sixty-five years after victory in Europe, it is a celebration of U.S.-Russian cooperation during the war and a source of inspiration for current U.S.-Russian ties.

The exhibition is accompanied by seminars devoted to the theme of U.S.-Russia relations. Historians, veterans and their relatives and U.S.-Russian relations experts including Ambassador John Beyrle will be among those gathering to discuss past cooperation between the two countries, the current state of affairs and opportunities for cooperation in the future.

“My father’s story is more than the story of one man,” Beyrle said. “It’s a symbol of the alliance between our two great nations and of what we can achieve when we join forces. I think that serves as a very good signal for us in the 21st century, when we’re facing huge threats on a global scale, that America and Russia need to be together to face those challenges.

“As ambassador, I always say that there is far more uniting us than dividing us,” he added. “I hope that with this exhibition and seminars, we will be true to this idea.”

Beyrle, who was a Russia specialist at the U.S. State Department before becoming ambassador to Russia, said the wartime experiences of his father, who returned to the Soviet Union and then Russia several times from the late ’70s until his death in 2004, had inevitably had an influence on his career choice.

“Even at the height of the Cold War, in my family we always had a different attitude toward the Soviet Union,” he said. “My father always said that Russian medics saved his life, and that could not fail to influence me. There is never a day when I don’t think about what my father went through and how grateful he was to the Russians.”

“A Hero for Two Nations” runs till June 21 at the Central Museum of the Great Patriotic War. 10 Ulitsa Bratyev Fonchenko. Metro Park Pobedy. Tel. (499) 142-4911.

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Jamestown: Russian Military Personnel Crisis: Medvedev and the General Staff Join the Fray



May 06, 2010

Pavel Felgenhauer

It has been officially acknowledged that the Russian military faces a serious personnel crisis: the federal program to hire more contract soldiers has failed and their number will be reduced from 150,000 to 90,000, while massive draft-dodging and demographic problems are reducing the number of conscripts (EDM, April 29).

Last week, the Chief of the Main Organizational-Mobilization Directorate (MOMD) of the General Staff, General-Colonel Vasiliy Smirnov, told the Federation Council Defense Committee that the situation is serious. He said that this year the MOMD may fail to muster enough conscripts to fill the ranks of the defense ministry and interior ministry combat units. The General Staff estimates the number of draft-dodgers in Russia today to be 200,000. Smirnov proposed draconian measures to increase the draft and punish dodgers. Russian males aged 18 to 27 are eligible to be drafted, but Smirnov announced plans to increase the upper age limit to 30. Smirnov also proposed calling up for one year university and college students after one or two years of their education (Interfax, April 29).

The MOMD hoped to fill the ranks with university and college graduates born in the 1980’s baby boom. This policy has been only partially successful: thousands of better educated and wealthy citizens do not want to spend time in the barracks, and instead dodge the draft (EDM, April 29). Smirnov clearly wants to increase pressure on this social group by raising the upper age limit to 30. The prolongation of the draft to 30 could allow the MOMD to prolong the “use” of the 1980’s baby boom by three years.

Today, most university and college students obtain a deferment from conscription until after graduation. To be drafted, the graduates must receive a draft call up document. Currently, the main tactic of draft dodging in Russia is to move to a rented apartment that the authorities do not know about to avoid being handed the document. As a countermeasure, Smirnov proposed an e-call up by SMS (most young Russians have mobiles) and to effectively annul the education deferment by drafting students, which is technically much easier while they (unlike graduates) are connected to universities that report their presence to the authorities (Interfax, April 29).

Recently announced plans by the Defense Minister, Anatoliy Serdyukov, to “humanize” military service in Russia have been largely welcomed by human rights activists (EDM, April 29). Smirnov’s draconian proposals to increase conscription have been met with indignation. Smirnov was accused of opposing Serdyukov’s military reform plans and President Dmitry Medvedev’s announced intention to “modernize Russia.” Valentina Melnikova, executive secretary of the Russian Union of Committees of Soldiers’ Mothers which publicly endorsed Serdyukov’s military “humanization,” called Smirnov’s proposals “crazy” and “an outrage.” Melnikova told journalists there may be a “mutiny in the defense ministry” (Interfax, April 29).

Of course, Smirnov is a quiet military bureaucrat with no direct command connection to any combat units and hardly a rebel. It would seem that while Serdyukov was offering the Russian public a carrot –to make military service more humane and attractive– Smirnov presented the stick to frighten and force potential conscripts to join. Serdyukov’s and Smirnov’s statements may have been coordinated.

This week, Medvedev joined the discussion, while visiting the 5th Separate Tamanskaya Guards motor-rifle brigade together with Serdyukov. The Tamanskaya (pre-2009 –the 2nd Guards motor-rifle division) has been for many decades a special unit based near Moscow to guard the Russian leadership against potential internal strife or a US-led decapitating surprise airborne assault on the Moscow region deemed possible during the Cold war. The Tamanskaya is a showcase unit with better food, and barracks for foreign dignitaries and journalists, as well as Russian leaders, to visit to see the positive side of the Russian military.

Serdyukov declared that in Tamanskaya catering is already done by civilians and that soon cleaning will be also done by civilian contractors. He promised that in three months Tamanskaya conscripts will be allowed “as an experiment” to have a 5-day working week and go home for holidays (RIA Novosti, May 5).

Medvedev, in the presence of journalists, had tea with newly drafted conscript soldiers, who expressed their satisfaction with service conditions. Medvedev told the soldiers (in the presence of TV cameras) to tell their friends not to be afraid to join: “The draft to serve must not be seen as some personal catastrophe.” Medvedev acknowledged “problems” with drafting, but promised that conscript service will not be extended: “One year is enough to train a good quality specialist, soldier or sergeant.” Medvedev acknowledged that in 2009 “there was a crisis with recruiting contract soldiers and there will be less of them,” but by fall a decision will be made how many kontraktniki Russia needs and how much to pay them. Medvedev promised that excellent service conditions in the Tamanskaya “experimental” brigade will be extended to the entire military (Interfax, May 5). Medvedev clearly joined Serdyukov in his drive to persuade draft-dodgers to join, but avoided commenting on Smirnov’s harsh proposals that seem to indicate they were endorsed.

If the Russian authorities manage to avoid a personnel crisis that may leave “permanent readiness units” undermanned and with reduced readiness levels in the coming year or two, this will only prove to be a stopgap. Russia has a one million strong armed force. The number of officers is being reduced to 150,000 and kontraktniki to 90,000. The interior ministry troops need annually tens of thousands of conscripts. With one year service, Russia needs more than 600,000 conscripts per year, while until 2025, there will only be around 400,000 new able-bodied 18-year old males annually. The reserve of students (if tapped), will soon be exhausted. It would seem Medvedev and Serdyukov are essentially going to great pains to avoid an immediate crisis before the presidential elections in 2012, and the unpopular decision to double conscript service is taken. Alternatively, the entire Russian military must be halved in size. In any case, combat units consisting of only one-year service soldiers cannot be fully combat ready. It is also impossible to pick and train a “good sergeant” in one year, though Medvedev may believe the opposite.

Source:  

Financial Times: Moscow mayor's era in doubt



By Courtney Weaver in Moscow,

Published: May 7 2010 03:00 | Last updated: May 7 2010 03:00

For 18 years, Yury Luzhkov has kept a tight grip on Moscow, lashing out at everyone from business oligarchs to homosexuals and running the city as if he was running a Chicago political machine.

The 73-year-old mayor, something of a dinosaur of the old order who managed to reinvent himself more than anyone else in the post-Soviet era, is a larger-than-life figure. Only this week he ordered the city to spend $1.5m (€1.2m, £1m) to blast away rain clouds in honour of Victory day on Sunday. But his administration has long been overshadowed by allegations of corruption and the pressure is intensifying as Dmitry Medvedev, Russia's president, steps up his campaign against graft.

A showdown appears to be looming between one of the political giants of the post-Soviet era and the Kremlin.

Mr Luzhkov's critics say the mayor is the most visible example of the corruption Mr Medvedev is trying to fight, pointing to the city construction contracts awarded to the mayor's wife. "There have been a couple of things recently that have been so big that I don't think [the president] can just close his eyes to it and pretend to fight corruption . . . He has to put his money where his mouth is," said Alexander Lebedev, the Russian tycoon and former political opponent of Mr Luzhkov.

Both Mr Luzhkov and his wife deny the allegations, highlighting that she was awarded contracts in a competitive tender.

But though the mayor seems as determined as ever to defend his reputation, he may have a harder time in the court of public opinion. Traditionally, he was feted by Muscovites for disbursing city funds in nationalistic interests as far afield as the Crimea, and for his grandiose architectural projects. But he has in recent months started losing the support of his voters.

While previously the Kremlin has felt unable to move against him, it is taking a less sympathetic approach to members of his administration. Two months ago federal investigators launched an investigation into Alexander Ryabinin, the mayor's deputy, on allegations that he had abused his power overseeing construction permits to secure a piece of property for his daughter.

While the case was dismissed in a matter of days, political strategists point to it as the latest in a series of probes that have been directed to damage Mr Luzhkov.

Relations between him and Vladimir Putin, the prime minister, have never been friendly since Mr Putin was preferred to him in 2000 as the Kremlin's presidential candidate, and Mr Luzhkov's fiefdom has always represented a rival centre of power to the state.

While his popularity was always his greatest line of defence, his dwindling approval ratings have offered Mr Medvedev an opportunity to step in. "It was always believed that the stability of Moscow and the [protection] of federal interests there were important enough for the Kremlin to keep Luzhkov as mayor . . . [but] in the past year the negatives of [the mayor's wife's] business and the system of corruption in Moscow have begun outweighing the positive of the city's stability," said Stanislav Belkovsky, a political analyst.

Elena Baturina, the mayor's wife, attracted fresh criticism this week after reporting she made $1bn last year as chief executive of Inteko, a Russian developer which the mayor's critics say has received many of Moscow's most lucrative development projects.

While Inteko was originally founded as a plastic products producer, the company quickly gained a hold on the Moscow development market, propelling Ms Baturina, a former factory worker, on to Forbes' annual rich list.

"If Michael Bloomberg [the mayor of New York] organised a tender for the renovation of the Statue of Liberty and his girlfriend won, what would happen?" asked Boris Nemtsov, a former deputy prime minister who leads the Solidarity opposition party.

"In America, they would laugh. There they can't even understand how such a thing could happen."

The mayor and his wife are suing Mr Nemtsov for allegations made in a pamphlet called "Luzhkov, Conclusions" and have repeatedly denied these allegations and all other accusations of corruption.

In a 2009 interview with the newspaper Komsomolskaya Pravda, Mr Luzhkov said his position as mayor had been an obstacle, not an asset, for Ms Baturina. "If her husband was not the mayor of Moscow, she would feel freer [in her business]," he said.

Neither Mr Luzhkov nor Ms Baturina responded to requests to be interviewed for this article.

Muscovites have become more sceptical of late over his style. He has insisted on hanging billboards of Joseph Stalin around the city for the holiday this weekend despite the disapproval of the Kremlin.

Some residents are also starting to echo the claims of corruption long voiced by his critics. According to polls from the Levada Centre, a think-tank, 65 per cent of Muscovites believe Mr Luzhkov's position has aided his wife's commercial success.

At a recent signing for the new edition of "Luzhkov, Conclusions", a passer-by said he liked him. "But he's over 70 years old," he said. "It's time for him to go."

Global Voices Partners with “Echo Moskvy”



Posted 7 May 2010

We are pleased to announce our partnership with “Echo Moskvy,” the most prominent and respected radio station in Russia with hundreds of thousands of listeners from all over the globe. This radio station is rightfully considered the most influential radio in Russia.

“Echo Moskvy” radio is doing an amazing job covering different aspects of Russian society and brining a unique perspective regarding the most pressing issues in the country and the world. Most of “Echo Moskvy” broadcast is dedicated to analytical programs and talk shows. It is one of the few media outlets in Russia pursuing  high standards of journalism. Many people consider “Echo Moskvy” an oppositional radio but, as its editor-in-chief Aleksey Venedikov said, it is rather “an informational radio” that serves as a platform for discussions among different forces and a place for analysis, ideas, opinions of different political structures.

Another great thing about “Echo Moskvy” is that it is actively using different online platforms to expand its audience and stay relevant in ever-changing field of global journalism.  It has an extensive network of Russian bloggers featured on its Web site where people share amazing stories of lives in different corners of the country.

That is why we are very excited to start working with the most professional Russian journalists and prominent netizens bringing more perspective from Russian online community to global audience and, in turn, making Global Voices more accessible to Russian speakers.

“Echo Moskvy” already opened a separate Web page dedicated to Global Voices online. The GVO Lingua Russian team will be translating  articles that later will be featured on “Echo Moskvy” Web site. That will make GVO stories more accessible to Russian audience. At the same time, GVO will be picking stories submitted by “Echo Moskvy,” translating them into English and featuring those on GVO Web site. This will make Russian online community closer to international audience.

We would like to thank people who worked hard to make this collaboration possible on both sides. We are grateful to Aleksey Venediktov, an editor-in-chief of “Echo Moskvy,” and Nargiz Asadova, a deputy editor of the radio, for being receptive to new opportunities. A special thank you to our own Gregory Asmolov who initiated the project and even flew to Moscow and met with “Echo Moskvy” representatives to work out the details of this collaboration.

Reuters: PRESS DIGEST - Russia - May 7



Fri May 7, 2010 12:50pm IST

MOSCOW, May 7 (Reuters) - The following are some of the leading stories in Russia's newspapers on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

KOMMERSANT

kommersant.ru

- State holding Russian Technologies is planning to set up a joint venture with Italian company Berreta to produce about 150 000 rifles a year in Russia, the daily reports.

- Two more tax officials will join the team under Defence Minister Anatoly Serdyukov, who previously headed the tax collecting agency before being appointed to lead the military.

VEDOMOSTI

vedomosti.ru

- Russia is planning to toughen its control over oil companies through monitoring oil production and the traffic of oil products.

- Russia has banned the imports of children's food produced by Nestle in Finland, the daily says, citing the chief of the country's consumer goods watchdog, Gennady Onischenko.

- Russia's military will show off six new types of equipment during the World War Two Victory parade on May 9 in Moscow.

ROSSIISKAYA GAZETA

rg.ru

- Russian President Dmitry Medvedev marks two years, or half of his term, in office on Friday. The daily publishes experts' commentaries on the subject.

IZVESTIA

izvestia.ru

- Medvedev says in a two-page interview that he will pursue a state policy excluding any attempts to rehabilitate Soviet dictator Josef Stalin.

- Medvedev orders that the servicemen responsible for rescuing the Russian hijacked oil tanker off the Somali coast are awarded.

Russia Today: 07 May, 2010 in Russian Newspapers



Vedomosti: A poor-free Russia

The number of Russia’s poor, despite the economic crisis, has fallen to a historic low, reports Rosstat

Olga Kuvshinova

In 2009, the number of Russia’s poor had declined in comparison to the previous year by 400,000 people, or from 13.4 to 13.1 percent, reported Rosstat (Russia’s Federal State Statistics Service). Today, 18.5 million people are living below the poverty line, defined as the minimum living wage of an average of 5,153 rubles per annum. This is the lowest level in Russia since 1992.

Vremya Novostei: Southern labor front

Russia will have to deal with the growing rate of migration from the Caucasus

Ivan Sukhov

From one week to the next, it becomes clearer to federal officials and regional authorities of the North Caucasus that a key to overcoming the situation that has unfolded in this south region of Russia -- is through fighting against unemployment. Ideally, it should decrease the socio-political tensions and turn the Caucasus from an unstable outskirt, tormented by sporadic guerilla warfare, into a calm prospering region. Not long before the May 1 celebrations, Russia’s Presidential Envoy to the North Caucasus, Aleksandr Khloponin, suggested forming the unemployed into work brigades and sending them to other regions of Russia to obtain employment, at least temporary.

Barentsnova: Why foreigners seek employment in Russia?



2010-05-07

According to the Network’s research, only 7% of foreigners would like to get employed in Russia.

published results of the research carried out by huge on-line recruiting agency The Network. The results are based on 66.019 respondents coming from over 40 different countries around the world. According to The Network, only 7% of foreigners seek employment in Russia. Odd but true, most of them consider the regions of Russia as their employment venue instead of Moscow and St.Petersburg.

Still, the most inviting country for employment is the USA. 52% of the applicants responded yes to the idea of getting employed there. Great Britain comes second with 43%.

When it comes to Russia, it is surprising to know that potential employees come from Europe (mainly Finland – 36%). Latvia takes 20%, Ukraine – 17%, Lithuania – 14%, Estonia – 14% Canada – 13%, etc.

The age of the Russia-inspired respondents is quite young – 20-34 years old. 25% of those are IT specialists, 20% – businessmen, 18% – managers, 17% – economists. 70% think that Russia is a tempting working place due to high salaries, 58% seek for career opportunities, 49% would like to work in a Russian team, 48% are attracted by professional challenge and interesting tasks. Most of the respondents would stay in Russia for over 5 years at least (48%). 69% of the foreigners would prefer working in rural areas, rather than in the cities.

quotes Mikhail Zhukov, the director general of Headhunter, one of the leading recruiters in Russia.

There are several categories of foreigners that come to Russia for employment. First, these are unskilled workers that get employed here as cleaners or builders. Second category is “moderately skilled” immigrants; those are experienced construction workers mainly originating from Turkey, Slovenia and Slovakia. Besides, these countries also provide Russia with middle managers for FMCG companies and their affiliated offices.

There is also a category of foreigners that are employed in agriculture business. These are mostly production engineers from Germany, Poland, Czech Republic and Slovakia who know how to optimize the production process.

Another category is for executive and top management at banks and insurance companies. This sphere usually involves immigrants from France, Sweden, the US, Germany and other Europeans.

One of the reasons, why a foreigner comes to Russia is the transfer of technologies and career opportunities, says Zhukov. A foreigner may promote his/her career in Russia within 3-4 years.

May 6, 2010

Russia Profile: Foreigners’ Paradise



By Tai Adelaja

Russia Profile

A New Law Seeks to Make Russia a Paradise for Highly Skilled – and Highly Paid – Foreigners

Since the “perestroikan” days of Mikhail Gorbachev, modernizing Russia has become a thankless job. But President Dmitry Medvedev has decided to give it another try, even if it means shrugging off approval ratings and rumor mills.  Through a number of eye-catching new laws and pet projects, the president has tried to lure foreign nationals to help bolster his modernization program, a sharp turn-around from the patriotic self-interest and self-reliance pervasive under his predecessor.

At Medvedev’s bidding, legislators will debate and probably ram through a raft of amendments on Friday to the “Law on Legal Status of Foreign Citizens in the Russian Federation” that experts say could turn Russia into “a safe haven” for highly qualified expatriates.

Last week, the State Duma's Committee on Constitution and State Affairs approved a series of amendments to article 13.2 of the Law after the president pushed hard to see some activity on the planned Skolkovo high-tech innovation hub, Kommersant wrote on Wednesday.

While article 13.2 initially set out broad outlines for the employment of foreign workers at all levels of the labor market, it has now been amended to regulate the employment of highly qualified foreign specialists.

Under the changes, expected to be adopted by the more-than-compliant legislature on Friday, skilled foreign workers will be able to obtain Russian work permits without going through the quota system set by Federal Migration Service (FMS) as long as there is a written request or an invitation from the host. The bill says that immigration authorities cannot legally deny such requests.

However, nonresidents or guest workers that do not fall under the “highly-skilled specialists” category will continue to be hired to work in any given region after going through a complicated quota system which grants rights to invite foreign workers and issue them with work permits.

 

The legislative shake-up also significantly reduces the time limit for processing applications for work permits to 14 days for skilled specialists. The process currently takes from 12 to 24 months to complete.

“Work permits for highly qualified foreigners would be granted for a period of up to three years, instead of the current one-year period and can be extended an unlimited number of times,” Vladimir Pligin, Chairman of the State Duma Committee on Constitution and State Affairs, said.

“Hired skilled foreign specialists and their families will be entitled to residence permits without preconditions under the new law.”

However, guest workers not covered by the law can only obtain visas valid for one year, which can be extended for another year on expiration, he said.

In addition, skilled foreigners hired under the modernization program would only pay the flat tax rate of 13 percent, less than half the 30 percent currently being paid by non-residents.

The bill also removes other pesky psychological problems that have long been the lot of guest workers in Russia.

Newly-arrived highly qualified workers will be exempted from having their mug shots taken at immigration centers and they don’t have to partake in the immigrant fingerprint program, the Kommersant business daily wrote on Wednesday. If passed, the law is expected to be effective starting January 1, 2011.

Proposals for a radical overhaul of Russia's immigration rules were first put forth by officials in the Ministry of Economic Development, with the aim of attracting the highly qualified workforce needed to jumpstart Medvedev's modernization program.

However, the new radical amendments were prepared by the Federal Migration Services. FMS spokesman Konstantin Poltoranin said the new law is modeled on German immigration laws which give preference to highly qualified specialists who make up just about 3 percent of the country’s foreign workforce.

How qualified are you?

 

For some inexplicable reason, the new bill describes a highly-skilled foreign specialist as one who earns at least 2 million rubles ($67,700) a year.

Pligin said the government reserves the right to reduce or increase this amount as it sees fit, but some state officials said the salary cap will most likely be reduced only for foreigners invited to work at Skolkovo.

Yevgeny Reyzman, a partner at law firm Baker & McKenzie, said the threshold was set deliberately high in order to deter companies from hiring expatriates for jobs that Russians could do.

“The government wants to apply these rules only to attract those considered to be highly qualified top managers, that is, those that earn an average salary of about $5000 a month."

However, other experts have said that the provision could give room for different interpretations and abuse.

"This [provision] is a bit odd and it also sets the stage for some sort of abuse because people can just state whatever salary there is," said Laura M. Brank, managing partner and head of the Russia practice at Dechert LLP. "Companies may also not really be getting potentially highly qualified people if they consider the salary to be too high."

So far most of the new government’s shake-up of immigration legislation appears to be directed at making a success of the planned International Innovation Centre in Skolkovo. 

president Medvedev, who once chaired the International Advisory Board at Moscow School of Management Skolkovo, has consistently said that he is committed to making the planned science city – dubbed “Russia’s Silicon Valley” - a success story.

At a meeting on modernization last month, Medvedev offered big incentives for innovative firms to join the new hub.

“Tax breaks are a key issue for business. Skolkovo residents will pay no profit tax, VAT or property tax for ten years,” Medvedev said, as reported by Russia Today.

However, in order to remove any misapprehensions concerning the president’s modernization goals, the new law must have broader appeal so that other companies can benefit from its application, experts say.

“It is not clear if the law could be applied to other areas outside the high-tech sector, although theoretically the law could benefit not just scientists and engineers who work at Skolkovo but also top managers in other companies,” Reyzman said.

He said, however, that there is a serious flaw in the new bill which will prevent its beneficiaries from working in other regions even for the same company. “This bill seriously limits mobility because it only provides for foreign specialists to work in a particular region and for a particular company,” Reyzman, said.

Brank said that the main drawback of the law is how to define who qualifies as a highly qualified foreign specialist.

“If the goal is modernization, then the definition of a highly-skilled specialist is arguably very broad,” Brank said. "But it could also be interpreted narrowly because, as with all things in Russia, the law can look good in the book but when enforcement depends on discretion from the authorities, it is open to abuse."

Brank said it makes sense to make Russia more open not just in the high-tech sector but in other areas such as mining and oil extraction, “There are a lot of things to be done, including improving the regulatory environment, because what really scares many investors from coming into Russia are all the regulatory hurdles,” Brank said.

“There is a lot of expertise abroad but there is also a lot of nervousness about hiring foreigners to work in a challenging environment, because every year you have to renew the work permit. I do think that having a regime that recognizes that bringing in foreign specialists may help to develop an industry – no matter what that industry is – is a good thing.”

Pravda: Newsweek Can Be Good Acquisition for Russian Oligarch



06.05.2010

Newsweek, a well-known publication of The Washington Post Co., has been put up for sale. The magazine has not been returning profit during the recent several years, and its owners expect more losses this year. As a result, Donald Graham, the WashPo chairman, decided that it would be better to sell the magazine to someone else.

"Despite heroic efforts on the part of Newsweek's management and staff, we expect it to still lose money in 2010. We are exploring all options to fix that problem. Newsweek is a lively, important magazine and website, and in the current climate, it might be a better fit elsewhere," he said in a statement.

Periodical printed publications do not experience their best times nowadays. Many of them lost their advertisers as a result of the crisis. In addition, analytical publications, such as Newsweek, lose competition to online resources. People do not want to pay for information because they can have it for free on the Internet.

The number of advertisement pages in Newsweek suffered a reduction of 26% in 2009. The losses of the magazine increased last year to $29 million against $16 million in 2008. As a result, many people working at the magazine were fired.

It may seem strange that such large world-known publications refuse from their projects. It brings up the idea that The Washington Post was simply fed up with Newsweek, which became a burden for it. The WashPost receives nearly 60% of its profit from Kaplan, the company that prepares students for standard tests. The profits that it gets from newspapers, magazines and even online media are not that significant.

Who will buy the magazine? Will it eventually belong to a Russian oligarch?

Russian billionaire Alexander Lebedev, who already owns London’s The Evening Standard, acquired The Independent and Independent on Sunday. He paid a symbolic price of one pound sterling for them.

Like Newsweek, the former owner of the two newspapers, Ireland’s Independent News & Media (INM), suffered the losses of 28 million pounds ($42 million) in 2009 because of the drop of the advertising market during the crisis and decided to hand over its publications to someone else. According to the agreement, the INM will pay Lebedev’s Independent Print Limited the sum of 9.25 million pounds to pay the newspapers’ debts.

It is not ruled out that Newsweek will have the same future. An oligarch will obviously have funds to pay its debt, not to mention the fact that it would be very prestigious for a wealthy individual to run a respectable publication.

Newsweek is a global brand, an icon, a dream, a part of the spirit of American journalism outside America. Most likely, it is not going to be a big problem to sell the magazine. The owners of Time may show their interest in their competitor too. Such an acquisition would put an end to bitter competition for good.

Marina Volkova

Bigness

National Economic Trends

Bloomberg: Russian Economy Grew 1.2% Last Month, VTB Capital Says



May 07, 2010, 12:42 AM EDT

By Paul Abelsky

May 7 (Bloomberg) -- Russia’s economy expanded last month at the fastest pace since November 2008 as companies restarted hiring, according to an indicator derived from service and manufacturing surveys showed.

Gross domestic product rose an annual 1.2 percent in April after a revised 0.3 percent growth a month earlier, VTB Capital, which compiles the gauge, said in an e-mail today. Monthly GDP growth has averaged 5 percent since the survey began in June 1998, according to VTB Capital.

Record low interest rates and a government fiscal stimulus that raised spending by 27.3 percent last year are pulling the world’s biggest energy supplier out of its worst slump since 1991. Consumer spending is rebounding as companies add workers on mounting confidence demand and profits will keep improving.

“Local companies’ activity is on the recovery path after a rather low start at the beginning of the year, said Aleksandra Evtifyeva, senior economist at VTB Capital in Moscow, in the report. “We are particularly encouraged to see first growth in jobs across both sectors and expect stabilization in employment to support stronger demand-driven growth in the future.”

Employment gains are needed to help spur consumer spending as the economy goes through an uneven recovery. The quarterly expansion slowed in the first three months to a seasonally adjusted 0.6 percent from 1.7 percent in the fourth quarter of last year and 2 percent in the third, the Economy Ministry estimates.

The jobless rate held steady at 8.6 percent and retail sales rose for a third month in March, advancing an annual 2.9 percent.

‘Biggest Bounce’

Russia’s economy is poised for the “biggest bounce” in the world this year, growing 7 percent in 2010 after a record 7.9 percent contraction last year as companies rebuild stocks and domestic demand boosts output, Bank of America Merrill Lynch said last month.

The Economy Ministry said it may raise its official forecast for growth this year to 4 percent from 3.1 percent.

Higher revenue from commodity exports are helping bolster government finances. The deficit may shrink to “closer to 3 percent” of GDP in 2010, from 6.8 percent currently planned, if the price of oil stays above $70 per barrel and growth accelerates above 3.5 percent, Deputy Finance Minister Dmitry Pankin said on April 30.

Urals crude, Russia’s chief export blend, has averaged more than $77 so far this year.

VTB Capital calculates its indicator by using output measures from its Purchasing Managers’ Indexes, which are surveys of business conditions in manufacturing and services

--Editor: Chris Kirkham

To contact the reporter on this story: Paul Abelsky in Moscow at pabelsky@.

To contact the editor responsible for this story: Willy Morris at wmorris@.

2010-05-07 05:15

Reuters: TABLE-Russia April GDP +1.2 pct y/y –survey



MOSCOW, May 7 (Reuters) - Russia's economic growth accelerated in April to 1.2 percent year-on-year, compared with a revised 0.3 percent expansion in March, VTB bank's GDP indicator showed on Friday.

VTB derives the GDP indicator from its surveys of manufacturing and service sector purchasing managers (PMIs). The PMIs showed activity in the manufacturing sector was close to a two-year high in April and growth in the service sector at a 20-month high.

VTB did not say why it revised its March GDP estimates, but revisions are quite common after the Federal Statistics Service, or Rosstat, releases its quarterly data.

Rosstat released its first-quarter GDP data at the end of April, showing Russia's economy grew 4.5 percent year-on-year.

"The acceleration of growth across the Russian economy in April, as highlighted by both manufacturing and services PMI surveys, is highly encouraging," Aleksandra Evtifyeva, senior economist at VTB Capital, said in a statement.

"We are particularly encouraged to see the first growth in jobs across both sectors and expect stabilization in employment to support stronger demand-driven growth in the future," she said.

VTB GDP GDP

index Indicator Indicator

Y/Y (pct) Q/Q (pct)

2010

April 56.6 1.2 1.3

March 53.7 0.3 0.5

Feb 51.6 -0.7 0.0

Jan 52.0 -1.6 0.1

2009

Dec 52.4 -2.7 0.2

Nov 52.8 -4.1 0.3

Oct 54.2 -6.3 0.7

Sep 54.0 -8.7 0.6

Aug 52.2 -10.6 0.1

Jul 48.6 -11.0 -0.8

Jun 48.4 -10.4 -0.8

May 44.5 -9.7 -1.9

Keywords: PMI GDP/RUSSIA (Moscow Newsroom, +7495 775 1242, moscow.newsroom@)

May 07, 2010 09:10

Interfax: Banks have 617.0 bln rbs on CBR correspondent accounts on May 7



MOSCOW. May 7 (Interfax) - Russian banks have 617.0 billion rubles on correspondent accounts in the Central Bank as of May 7 including 453.2 billion rubles for Moscow banks.

The balance on May 6 was 672.7 billion rublesand 519.2 billion rubles, respectively.

Banks had 741.0 billion rubles on deposit accounts in the Central Bank on May 7 against 638.3 billion rubles on previous day.

2010-05-07 06:37

Reuters: Russian bank balances fall to 617.0 bln rbls



MOSCOW, May 7 (Reuters) - Banks' balances in their correspondent accounts at the Russian central bank fell to 617.0 billion roubles on Friday from 672.7 billion roubles in the previous session, the central bank said.

All figures are in billions of roubles:

BALANCES May 7 May 6

Total 617.0 672.7

Moscow region 453.2 519.2

Banks' deposits at the central bank 741.0 638.3

NOTE - Correspondent account balances are an indicator of Russian banks' liquidity. Keywords: RUSSIA BALANCES/ (Moscow Newsroom, +7495 775 1242, moscow.newsroom@)

MAY 7, 2010, 3:20 A.M. ET

Dow Jones: Russian Ruble Hits 2010 Low Vs Dollar On Euro-Debt Fears



MOSCOW (Dow Jones)--The Russian ruble weakened Friday to its lowest levels this year against the dollar, joining a global rout sparked by fears that the Greece debt crisis could spread to other European economies.

The ruble lost 0.8% against the dollar to trade at 30.72, its lowest since late December as oil--Russia's chief export--hovered near an 11-week low of $77 per barrel. Against the euro, the Russian currency retreated by 0.7%, to 33.94.

"There's a good deal of all-out selling right now," from foreign as well as domestic sources, said a trader at a Moscow brokerage.

Demand for Russian assets may remain strong even amid current euro-zone concerns, said Chris Weafer, chief strategist at Uralsib.

"So long as oil stays above $70 per barrel, investors will still more likely focus on what and when to buy in Russia," he said.

Russia-focused funds drew $26 million of fresh money last week, reporting positive inflows for the 12th straight week as funds investing in the other so-called BRIC countries--Brazil, India and China--all saw redemptions, data from Emerging Market Portfolio Research showed.

-By Ira Iosebashvili, Dow Jones Newswires; +7 495 232 9195; ira.iosebashvili@

2010-05-07 08:20

Reuters: Russian rouble falls to 2010 low vs dollar



MOSCOW, May 7 (Reuters) - The Russian rouble slumped to a 2010 low against the dollar in early trade on Friday, following a slide in oil prices and stocks driven by rising global risk aversion linked to fiscal woes in the euro zone.

Versus the dollar, the rouble touched its lowest since mid-December at 30.90 before retracing to 30.67 by 0640 GMT .

Against the euro-dollar basket the rouble gave up 20 kopecks to 34.36 after hitting a two-month low of 34.65, according to Reuters data. The currency was down 14 kopecks to 38.87 versus the euro.

A fall in oil prices to levels below $80 per barrel spurred the rouble's losses.

"External markets are super negative, oil prices fall and fall, stock indices are down. Everybody is going into safe-haven currencies," said Artyom Gavrilov, dealer at Nomos bank.

Market players are also rushing to minimise risks by using derivatives as a hedging tool. Russia's derivatives exchange FORTS said it registered a new record volume of trade on Thursday of $1.4 billion versus the previous high of $1.2 billion seen in late April.

A fallback from the rouble's oil-driven rally was widely anticipated but it is still early to call the current move a new downtrend, dealers say.

"The rouble will continue falling as a correction in oil and the euro is not fully priced in. I'm not sure that it's a trend but the correction may be very deep," said a dealer at a Russian bank.

Additional pressure on the rouble is likely to arise from stock markets. Russian benchmark stock indices RTS and MICEX were down more than 2.5 percent in early trade on Friday.

Investors are likely to continue ditching rouble assets on Friday ahead of long weekend in Russia. Local markets will be closed on May 10 for the Victory Day holiday.

(Reporting by Andrey Ostroukh; editing by John Stonestreet) Keywords: RUSSIA ROUBLE/

(andrey.ostroukh@, +7 495 775 12 42)

Business, Energy or Environmental regulations or discussions

2010-05-07 07:44

Reuters: RPT-Russian markets -- Factors to Watch on May 7



MOSCOW, May 7 (Reuters) - Here are events and news stories that could move Russian markets on Friday.

You can reach us on: +7 495 775 1242

STOCKS CALL (Contributions to moscow.newsroom@):

Aton: The external backdrop in extremely negative.

Troika: Fears of possible contagion from European debt problems remain the principal market driver. We are opening our prices this morning down 3 percent.

EVENTS (All times GMT):

VOLOKOLAMSK, Russia - Russian President Dmitry Medvedev meets World War II veterans.

ASTRAKHAN, Russia - Turkmen President Kurbanguly Berdymukhamedov begins trip to Russia.

MOSCOW - Acting Polish President due to fly to Moscow ahead of Sunday World War Two victory day parade.

MOSCOW - Russian residential developer PIK Group to announce full-year 2009 financials.

IN THE PAPERS:

Business daily Kommersant reports that Gazprom has allowed Turkey to pay no fines for taking up to 75 percent less gas than the 30 billion cubic metres agreed in a contract.

Izvestia runs an interview with Russian President Dmitry Medvedev.

TOP STORIES IN RUSSIA AND THE CIS: TOP NEWS:

• RUSSIA SEIZES OIL TANKER FROM SOMALI PIRATES COMPANIES/MARKETS:

• RUSSIAN ROUBLE PLUNGES DUE TO RISK AVERSION

• RGI TO INVEST $1.3 BLN IN MOSCOW PROJECT

• RUSSIA'S OGK-5 Q1 NET PROFIT RISES 137 PCT ECONOMY/POLITICS:

• UKRAINE MIGHT NOT REVIEW PUTIN GAS MERGER IDEA

• TABLE-RUSSIA APRIL GDP +1.2 PCT Y/Y - SURVEY

• RUSSIA WEEKLY CPI UP 0.1 PCT FOR 7TH WEEK

• RUSSIAN GOLD/FX RESERVES RISE TO $460.7 BLN

• AZERBAIJAN KEEPS RATES; OIL EXPORTS DOWN ENERGY:

• TNK-BP COMPLETES RYAZAN REFINERY TURNAROUND

• Q1 OIL OUTPUT AT ACG IN AZERBAIJAN UP 7.8 PCT COMMODITIES:

• PETROPAVLOVSK EYES 2010 GOLD GROWTH

MARKETS CLOSE/LATEST:

RTS 1,407.5 -2.96 pct

MSCI Russia 768.6 -2.58 pct

MSCI Emerging Markets 935.0 -1.43 pct

Russia 30-year Eurobond yield: 5.953/5.637 pct

EMBI+ Russia 253 basis points over

Rouble/dollar 30.7601

Rouble/euro 39.0000

NYMEX crude $77.19 +$0.08

ICE Brent crude $80.06 +$0.23

For Russian company news, double click on

Treasury news Corporate debt

Russian stocks Russia country guide

All Russian news Scrolling stocks news

Emerging markets top news

Top deals European companies

Keywords: RUSSIA FACTORS/ (maria.kiselyova@, +7 495 775 12 42, Reuters Messaging: maria.kiselyova.@)

May 07, 2010 11:00

Interfax: Russian stocks open lower on Friday; MICEX index down 2% in first minute



MOSCOW. May 7 (Interfax) - Russian stocks opened lower on Friday on negative externals.

The MICEX index was down 1.95% to 1,338.57 points as of 10:31 a.m. and the RTS index was down 2.52% to 1,413.95 points.

The decline on Friday morning follows the anomalous, 9.2% dive in the Dow Jones index on Thursday, which rattled investors already worried about the debt crisis in Greece. Asian markets also declined on Friday, although U.S. futures were stabilizing.

Prior to the opening of the Russian market on Friday, the head of the Federal Financial Markets Service (FFMS), Vladimir Milovidov, called on market participants not to overreact to the unusual decline in U.S. stocks on Thursday, which he said were technical in nature.

"We would like to caution participants in the Russian market, urge them to be attentive and cautious. We are not convinced that the decline in the American market was a reaction to objective causes. Under the circumstances it is necessary to very attentively monitor the information being received, analyze it, in order not to fall victim to some technical breakdown," Milovidov said on Friday morning.

Decliners on MICEX included VTB (RTS: VTBR) - down 3.5%, Gazprom (RTS: GAZP) - down 2.3%, Gazprom Neft (RTS: SIBN) - down 2.1%, MMC Norilsk Nickel (RTS: GMKN) - down 3%, Lukoil (RTS: LKOH) - down 2.8%, Polyus Gold (RTS: PLZL) - down 1.5%, Rosneft (RTS: ROSN) - down 2.6%, Rostelecom (RTS: RTKM) - down 2.8%, Sberbank Russia (RTS: SBER) - down 4.1%, Surgutneftegas (RTS: SNGS) - down 1.9% and Tatneft (RTS: TATN) - down 3%.

RTS$#&: GAZP, GMKN, LKOH, PLZL, ROSN, RTKM, SBER, SIBN, SNGS, TATN, VTBR

jh

Bloomberg: Sberbank Says Deputy Chief Executive Officer Dmitry Davydov Dies



By Anastasia Ustinova

May 7 (Bloomberg) -- OAO Sberbank Deputy Chief Executive Officer Dmitry Davydov died, Ekaterina Fedorova, a spokeswoman for the bank, said by phone today, declining to comment on the cause of death.

Davydov, who ran Sberbank’s retail operations, was 37.

To contact the reporter on this story: Anastasia Ustinova in St. Petersburg at austinova@

Last Updated: May 7, 2010 02:56 EDT

Reuters: REFILE-Russia's MDM bank says no divs for '09, shares plunge



Fri May 7, 2010 12:24pm IST

(Refiles to correct spelling in second paragraph)

MOSCOW, May 7 (Reuters) - The board of Russia's privately owned MDM bank (MDMB_p.MM) has recommended to shareholders not to pay dividends for 2009, the bank said on Friday.

MDM's preferred shares had plunged 16.2 percent by 0646 GMT, underperforming the broad stock index that lost 2.35 percent. (Reporting by Dmitry Sergeyev; editing by Toni Vorobyova)

07.05.2010 - Fitch Ratings

Fitch Rates Russia's Credit Europe Bank 'BB-'; Outlook Stable



Fitch Ratings-London/Moscow-06 May 2010: Fitch Ratings has assigned Russia's CREDIT EUROPE BANK Ltd (CEBR) a Long-term Issuer Default Rating (IDR) of 'BB-' with a Stable Outlook. A full list of assigned ratings is provided at the end of this commentary.

CEBR's IDRs are underpinned by potential support from its parent bank, the Netherlands-based CREDIT EUROPE BANK N.V. (CEB, rated 'BB'/Stable). CEBR's Individual rating reflects its relatively small size, weak funding profile, high degree of balance sheet concentrations, a high share of foreign currency lending in the corporate book and a high level of unsecured lending in both the retail and corporate books. However, it also considers CEBR's expertise and successful track record in retail lending and considerable loss absorption capacity, which is supported by strong internal capital generation.

Retail loans accounted for just over half of the gross loan book at end-2009. Foreign currency loans accounted for about 77% in the corporate book (including SMEs) but only 10% in the retail book. Unsecured lending accounted for a considerable 39% of the corporate loan book and a high 48% of the retail book on a net basis at end-2009. Exposure to top 20 borrowers accounted for almost 70% of corporate loans (including SMEs) and 139% of equity.

Non-performing loans (NPLs, defined as loans overdue for over 90 days) increased to 7% of gross loans at end-2009 from 4.5% at end-2008. In addition, 2.5% of gross loans were renegotiated. However, the current level of capitalisation (regulatory ratio of 24.03% at end-Q110) provides CEBR with considerable loss absorption. Fitch estimates that, at end-Q110, CEBR could have more than doubled its statutory loan impairment reserves to about 32% of its gross loans from the current level of 15%, without breaching its minimum regulatory capital requirement of 10%.

Wholesale funding accounted for a high 61% of total liabilities at end-2009 while domestically sourced customer deposits represented only 19%. Customer deposits sourced abroad via third parties (mostly related entities) accounted for another 19% of liabilities but are, in Fitch's view, less stable than domestic deposits. Parent funding accounted for 25% of liabilities at end-2009.

The liquidity position of CEBR is supported by parent funding (up to the maximum of EUR750m). Following the repayment of a Eurobond in mid-April 2010, CEBR had about RUB10.5bn in cash and equivalent and about RUB1.6bn of available for repo and unpledged securities. Fitch expects CEBR's liquidity position to improve further following a Eurobond issue in mid-May 2010.

CEBR (former Finansbank Russia Ltd.) is a small commercial bank with a strong retail focus. CEBR is controlled by CEB which is part of Credit Europe Group (CEG). CEG is part of a larger FIBA Holding A.S. (FIBAH), a Turkish conglomerate owned by Husnu Ozyegin, a prominent Turkish banker and businessman.

CEBR's ratings have been assigned are as follows:

Long-term foreign and local currency IDRs: 'BB-'; Outlook Stable

National Long-term rating: 'A+(rus)'; Outlook Stable

Short-term foreign currency IDR: 'B'

Individual Rating: 'D'

Support Rating: '3'

In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's Individual ratings and the prospect of external support is reflected in Fitch's Support ratings. Collectively these ratings drive Fitch's Long- and Short-term IDRs.

Reuters: Russia's OGK-5 Q1 net profit rises 137 pct-UPDATE 1



OGK-5/ (UPDATE 1)

* Reports net profit of 2.5 billion roubles

* Sales up 37 percent on higher power output, prices

(Adds further details)

MOSCOW, May 7 (Reuters) - Russian power producer OGK-5 said its first-quarter net profit more than doubled to 2.5 billion roubles ($86 million) as demand for power picked up on the back of a broad economic recovery.

The result was helped by a 37 percent rise in operating revenues to 14.126 billion roubles due to higher power output and prices, the company, controlled by Italy's Enel, said in a Friday statement.

Net power output rose 15.5 percent to 11,226 GWh, "driven by the growth of energy consumption due to the improvement of the general economic conditions on top of the weather conditions, with the particularly low temperatures registered."

Total power sales stood at 12,716 GWh, 17.8 percent more than a year ago, with the share of non-regulated sales rising to 62 percent from 29 percent in the first quarter of 2009 on the back of ongoing liberalisation of the Russian power market.

The company also said earnings before interest, taxation, depreciation and amortisation (EBITDA) grew 41 percent to 3.2 billion roubles.

Net debt totalled 16.7 billion roubles, down 4 percent from the end of 2009, the firm said adding that it financed its first-quarter capital expenditures from its own cash flow.

Enel has a 55.86 percent stake in OGK-5. (Editing by David Cowell)

($1=29.11 Rouble)

Moscow Times: Duma Gets Bill Limiting Cross Holding Ownership



07 May 2010

By Filipp Sterkin, Alyona Chechel and Vera Kholmogorova / Vedomosti

State Duma deputies have introduced a bill that would fight circular ownership structures by depriving a company's subsidiaries of voting rights and dividends fr om owning shares in the parent firm, although experts said the proposals went too far.

The amendments limiting the use of cross holdings were submitted by four Duma committee chairmen from United Russia. When subsidiaries buy the parent company's shares, managers are able to control the firm to shareholders' detriment and the company becomes less transparent, the deputies wrote in explanatory notes to the bill. There are also risks of conflicts of interests, Viktor Pleskachevsky, a co-author of the bill and chairman of the Property Committee, told Interfax.

The other co-sponsors are Financial Markets Committee chairman Vladislav Reznik, Constitution and State Affairs Committee chairman Vladimir Pligin and Economic Policy and Entrepreneurship Committee chairman Yevgeny Fyodorov.

The amendments would include all firms in a company's consolidated results to international financial reporting standards or its combined results to Russian financial reporting standards. The changes do not ban a subsidiary from holding shares in its parent company, but the owner would not have voting rights or be able to receive dividends with the shares.

The bill would also prevent subsidiaries from obtaining "financial instruments … recognizing the rights to shares," and it would require those already purchased to be sold within 180 days of the bill becoming law.

While cross ownership can allow management to control a company to the detriment of shareholders, the proposed bill is too radical, said Anton Sitnikov, a partner at Goltsblat BLP. The market should be able to decide whether to invest in a nontransparent company, agreed Grigory Chernyshov, a partner at Egorov, Puginsky, Afanasiev & Partners.

A company's own shares are typically needed for mergers and acquisitions, said an official at a company that uses a cross ownership scheme.

Chernyshov said direct subsidiaries should be banned from voting with a parent company's shares, which would settle the problem of quasi-treasury shares. In court, it is difficult for minorities to prove that the de facto owner of such shares is the parent company, which is not allowed to vote with treasury shares, he said.

Cross holding ownership reached its peak in 1995 and 1996, although it is rarely used now, said Andrei Dobrynin, a partner at New Russia Growth Capital Advisers.

"Sometimes quasi-treasury shares appear during a reorganization, though the stakes are typically insignificant," Chernyshov said.

For example, Gazprom's structures have 3.1 percent of its shares, including 2.93 percent that it received from E.On; Rosneft subsidiary RN-Razvitiye had 9.44 percent of the state company, which it received during the sell-off of Yukos assets; Inter RAO's fully owned subsidiary Inter RAO Capital has 4.31 percent of its parent company from a reorganization; Acron's subsidiary Dorogobuzh has 8.7 percent of the fertilizer maker's shares.

A year ago, Norilsk Nickel approved the transfer of 4 percent of its shares to subsidiaries, and at the end of the year, one of them, OGK-3, sold its 0.14 percent stake. Some subsidiaries have also received large stakes in their parent firms. Last year, IzhAvto's fully owned subsidiary Izh-Komplekt received a 24.9 percent stake in the carmaker.

The most famous example of cross ownership was with AvtoVAZ. Three of its subsidiaries — AVVA, TsO AFK and IFK — owned 66.51 percent of the carmaker's voting shares until 2008.

An official in the White House said the government had not yet considered the proposal.

"The conflict between principals and agents needs to be fought differently, not with such localized measures," said Ivan Oskolkov, director of the Economic Development Ministry's corporate governance department. "Shareholders need to be stimulated to reach agreement on the management of a company and to motivate managers correctly, not introduce another set of bans."

Moscow Times: Rosatom’s Plans in Vietnam



07 May 2010

Electricity of Vietnam is working with the Rosatom state-run nuclear holding to build the first nuclear power plant in the Southeast Asian nation, Vietnam’s government said Thursday in a statement.

Vietnam plans to build two nuclear power plants in the southern province of Ninh Thuan, near the resort city of Nha Trang, the statement said. The total capacity of the two plants will be 4,000 megawatts initially, it said.

Construction of the first plant will start in 2014 and will be operational from 2020, it said. Officials at Electricity of Vietnam were not immediately available for comment.

(Bloomberg)

Steel Guru: Russian steel price movement in April from Rusmet



Friday, 07 May 2010

It is reported that during 4 weeks from April 4th till May 2nd 2010, general weekly average local market price index for finished steel products has risen by 4.9%. Weekly average price index for long products has risen by 6.1%.

Growth structure by products is below

1. Reinforced bar - 6.1%

2. Beam and Channel - 5.0%

3. Angle - 5.5%

4. Round bar/rod - 9.3%

Weekly average price index for flat products has risen by 3.9%. Growth structure by products is below:

1. Thin HRC/HRS - 9.1%

2. Hot rolled plate - 5.4%

3. Cold rolled coil/sheet - 2.6%

5. Galvanized coil/sheet - 0%

Monthly average sales prices grew 3.9% in comparison to March level.

1. Average sales prices of long products grew by 4.2%.

2. Price for round and square bars grew by 7%

3. Angle - by 3.9%

4. Beam and channel - by 1.1%

5. Rebar - 5%.

6. Sales price of hot rolled sheet rose averagely by 5.5%

7. Cold rolled sheet increased by 3.9%

7. Galvanized is up by 1.9%.

Price growth rate for steel products in Russia as well as in the world were the highest in April since the rock in 2008. This growth was stimulated by price increase for raw materials which has already took place and is expected to continue in the nearest future, as well as some improvement at the ultimate consumers in particular, construction and automotive sector, and finally, traders’ activity who are willing to be in time to buy in order to be in time to sell higher then. Correlation of these factors and future expectation for price dynamics is different in various regions of Russia.

The most stable situation currently seems to be in South-East Asia. In Europe recover of economy is the slowest and forecasts are less optimistic. A lot of analysts are expecting stagnation or even decrease of prices since the second half of May already.

Russian steel industry has not reached the quantities of 2008 and is not likely to reach this year but nevertheless it feels not bad mostly due to the exports. While domestic market is uncertain, local steel prices are likely more to depend from the situation in the world markets, especially Asian, rather than from local demand. Now the prices are growing firmly and our computer forecast assumes that if the trends of the last weeks do not change, May price for rebar in comparison to April to grow by 3% to 5% while other longs to go up by 3% to 4%, hot and cold rolled sheet to grow by 4% to 6%.

(Sourced from )

Steel Guru: ThyssenKrupp to supply 4000 tonnes of steel to Moscow



Friday, 07 May 2010

ThyssenKrupp Steel Europe AG has announced that it is supplying around 250,000 square meters of Hoesch Additive Floor for 20 parking garages in Moscow. That's roughly 4,000 tonnes of steel. The steel profiles are to be delivered over the course of the next 12 months.

The 20 parking garages are part of the Narodny Garazh program, set up by the Moscow city government with the aim of solving one of the most urgent traffic problems facing the 10.5 million population city.

According to officials, the city only has enough designated parking spaces for less than a third of the cars on Moscow’s roads. The remaining 71%, that’s around two million cars, have no official parking space. They park on sidewalks, in parks, on verges and in driveways. Increasingly they also double park on main roads, causing long traffic jams.

The aims of the people's garage program are ambitious. By 2025, around 3.5 million additional parking spaces are to be created, enough to meet projected traffic growth. Around 900,000 will be in the form of new parking garages. The 20 garages from the current contract for ThyssenKrupp Steel Europe are of different sizes and offer on average 500 to 1,000 parking spaces.

Hoesch Additive Floor is a lightweight decking system comprising steel profiles topped with in situ concrete. The system has been used successfully for around 18 years and is installed in more than 300 parking garages with a total area of over three million square meters. It is manufactured by the Color Construction unit of ThyssenKrupp Steel Europe.

With a dead weight of only around 300 kilograms per square meter, Hoesch Additive Floor is some 40% lighter than solid concrete decking while offering the same load bearing capacity. The low weight and the special profiling of the decking elements allow unsupported spans of more than five meters. As this permits the use of fewer, slimmer beams, significant savings can be made on the materials used for structural steelwork and foundations. In addition, Hoesch Additive Floor is quick and easy to install. The floor does not need propping during construction. Garage users also benefit from the large spans of the Additive floor: Fewer beams means greater visibility and greater safety in the garage, and there are no columns in the parking space entry areas to hinder access.

Hoesch Additive Floor is made from steel sheet with the new PLADUR®-ZM coating. This consists of a zinc magnesium base coat that is much more corrosion resistant than conventional zinc, plus a specially adapted paint top coat. The duplex coating ensures maximum corrosion protection in all environments. The color of the paint coat can be chosen to suit individual requirements.

Moscow Times: Chemezov Says Beretta May Open Unit in Russia, Supply Firearms to Police



07 May 2010

By Anatoly Medetsky

Italian firearms maker Beretta agreed to consider opening a production unit in Russia, Russian Technologies chief Sergei Chemezov told Prime Minister Vladimir Putin, according to a government transcript released Thursday.

If the deal materializes, Beretta could supply the country's special forces and police, Chemezov said in a meeting late Wednesday with Putin and Kirov Governor Nikita Belykh.

A foreign producer would find the Russian market largely pristine because the country's own defense companies mainly supply the armed forces, experts believe.

Chemezov said talks were underway with Beretta about creating a joint venture on the premises of a floundering defense factory — named Molot, or Hammer — near Kirov. Owned by Chemezov's state corporation, Molot makes hunting rifles, pellet pistols and a range of civilian goods, such as parts for oil and gas equipment.

At the meeting, Chemezov reported that the federal and local governments had made good on a promise to pay the factory's workers their back salaries, worth 300 million rubles ($9.9 million), which he described as the “biggest wage arrears” in Russia. As a way to keep the jobs, Molot may house the joint venture “planned” by Beretta, “hopefully in the beginning of next year,” he said.

In addition to pistols for police and special forces, the venture would crank out hunting and competition guns for sale in Russia and the former Soviet republics, Chemezov said.

Stefano Quarena, a Fabbrica d'Armi Pietro Beretta spokesman, said he was unaware of the talks.

“We need to investigate,” he said by telephone fr om Gardone Val Trompia, Italy. “I need to check with the owners of the company.”

He did say Russia was a “strategic” market for the company wh ere it set up a local distributor, named Russian Eagle, in 2008 to build a sales network and further study demand.

Boris Vesnin, a spokesman for Belykh, said the Kirov regional government was being informed about the talks but had no knowledge about the size of the planned investment.

A source familiar with the situation said contacts with the Italian company were at a very early stage and that neither side had named any financial estimates.

A spokesman for Russian Technologies declined further comment when contacted Thursday afternoon. A woman at Russian Eagle, who declined to identify herself when she answered the phone, said no one was available to speak about Beretta's position on the Russian market.

Russian gun manufacturers have fallen behind the worldwide trend of developing firearms that cater to the needs of special operations and law enforcement agencies, such as having a larger magazine to confront gangs, said Ruslan Pukhov, director of the Center for the Analysis of Strategies and Technologies, an independent defense industry think tank.

As a result, the country's agencies have taken to importing foreign-made firearms, he said.

Based in a country with closer ties to Russia than some other Western states, Beretta may well invest in a Russian production facility if it wants so, Pukhov said. Chemezov, on the other hand, is a heavyweight lobbyist capable of securing enviable sales, he said.

The government in 2009 included Beretta-92 guns, along with some other foreign models, on the list of firearms that prosecutors and police investigators can wear for self-defense. The Interior Ministry, which received permission in 2007 to use foreign firearms, said in December that it had begun equipping its special units with Austria's Glock 17 pistols.

Other authorized foreign manufacturers include the Czech Republic's Ceska Zbrojovka, Austria's Steyr Mannlicher Gmbh & Co KG and Germany's Heckler & Koch.

Moscow Times: 'National Nanotechnology Network' Announced by Government



07 May 2010

By Maxim Tovkailo, Anastasia Yermakova and Valery Kodachigov / Vedomosti

The largest state universities and research centers will be integrated into a countrywide nanotechnology network, whose members will receive access to information about one another's research developments and facilities.

Prime Minister Vladimir Putin signed an order in late April creating the National Nanotechnology Network, which was published Wednesday on the government's web site.

An Education and Science Ministry official said the network was created as part of the federal targeted program on developing the nano-industry fr om 2008 to 2010. Fifty research centers (such as the Kurchatov Institute) and universities (including Moscow State University and the Moscow Institute of Physics and Technology) that the state already provides with equipment needed for nano-research will automatically become members of the network, known by its Russian acronym NNS.

Once the Education and Science Ministry develops criteria for NNS participants, any qualifying organization will be able to join, the source told Vedomosti.

The ministry official stressed that the network's creation would not reduce the importance of Rusnano. The state corporation works on commercializing ideas, wh ereas the NNS has the much broader task of uniting all participants in the innovation process, from scientists to entrepreneurs.

The NNS is being created to form a competitive research sector in nanotechnology and an effective system to commercialize that know-how, the government's order says. The network's goal is to boost the volume of nano-production and create an entry point for Russian companies onto the global market.

The domestic market for nanotechnology was 19.2 billion rubles ($637 million) in 2009, a figure that should reach 55 billion rubles by 2015, the ministry official said.

NNS members will work in nine different spheres: electronics, engineering, energy, space, biotechnology, security systems, high-purity substances, composite nanomaterials and construction nanomaterials. The ministry official said the members would receive access to one another's scientific results and information on their technological facilities.

The network is intended to coordinate the work of the largest participants in the innovative process so that they are not duplicating research or purchases of expensive equipment, the ministry source said, adding that NNS participants would be able to work on one another's equipment.

Information will be collected about developments' commercialization and demand for them, and universities will be able to get information on cutting-edge scientific programs, a source in the White House said. NNS membership will be free, he said.

An official in the Economic Development Ministry said a structure like the NNS was needed. "The government is spending serious resources on science and nanotechnology, and it wants those expenses to be highly effective," the source said.

In 2010, the state will spend 1.1 trillion rubles ($36.5 billion) on basic and applied science, higher education, related federal programs and high-tech medicinal help, Putin said. From 2010 to 2015, the state is planning to spend 62 billion rubles on nanotechnology through the federal budget, Rusnano, VEB and the Russian Venture Company.

The Kurchatov Institute, headed by Boris Kovalchuk, will coordinate scientific developments in the NNS, while Rusnano will analyze the market for nano-products and follow how products developed with budget financing are progressing. The Education and Science Ministry will oversee all of the NNS participants and approve new members.

A spokesperson for Rusnano said the system would codify its existing relationship with the Kurchatov Institute. A spokesperson for the institute declined comment.

Nikolai Kudryavtsev, rector of the Moscow Institute of Physics and Technology, called the idea a good one. To date, the fastest way to share information is at research conferences, which means a delay of at least half a year, he said.

"Now we can learn about everything online," Kudryavtsev said, adding that coordination on nanotechnology projects was very important because the research is complicated and expensive.

Marina Udachina, director of the Innovations, Infrastructure and Investments Institute, said network management could help optimize a project's costs.

In the West, similar systems have been in place since the early 2000s, and not just for investors in nanotechnology, said David Yang, chairman of IT company ABBYY. Informational exchanges can help realize a business project, but they are not a panacea, he cautioned. "The most important thing is that the product is competitive," he said.

NNS members should not be required to disclose all information, since that will frighten effective businesses that are afraid to reveal their competitive advantages, he said.

BBR: Renaissance Appoints Global Head Of Equity Derivatives



Published: 07-May-2010

Renaissance Capital, a Russia-based investment bank, has appointed Christopher Carter as global head of equity derivatives, equity finance, convertibles and delta one.

Mr Carter's role, a new position at the firm, will be to oversee the build-up of the bank’s global derivatives capability.

From 1998 to 2007 Mr Carter was at Credit Suisse First Boston (CSFB), latterly as global head of equity derivatives. In this role, he was instrumental in the expansion of the bank’s global equity derivatives trading, sales and structuring in London, Hong Kong and Tokyo. Prior to that he was co-head of European cash equity and head of European convertibles. Most recently, Mr Carter was co-founder and portfolio manager of the macro volatility fund manager Black Tower Capital.

Nick Andrews, global head of equities at Renaissance Capital, said: “We are delighted to welcome Chris at the time when we are aggressively exploiting the significant growth opportunities and continue building a first-rate team of equity derivatives practitioners.

“Chris’ unparalleled knowledge of the Asian and European markets, his impressive management track record in derivatives trading, sales and structuring will be extremely important to us as we aim to become the premier partner to clients across all our geographies for equity derivatives and structured products.”

Activity in the Oil and Gas sector (including regulatory)

Commodity Online; TNK-BP hopeful of exploiting Iraq's oil reserves



Published on 2010-05-07 11:45:00

MOSCOW, RUSSIA (Commodity Online):

Russian energy company TNK-BP has the expertise needed to exploit the oil reserves in Iraq, the company's chief executive officer said in the wake of a merger.

TNK-BP Holding and the Iraqi Oil Co. for Oil Investments announced that they signed an agreement to establish a partnership in Iraq to acquire, develop and operate oil and gas reserves in the country.

Mikhail Fridman, interim CEO at TNK-BP, said the partnership with IOCOI is part of an effort by the Russian company to expand its international portfolio.

"TNK-BP is interested in the expansion of its international business," he said. "It possesses cutting-edge exploration and production technology and world-class cadre required to identify and implement joint projects in Iraq."

IOCOI, for its part, said that it was anticipating "delivering necessary consulting support" to TNK-BP in Iraq as part of the deal.

Baghdad in the wake of December oil auctions said it would rival Saudi Arabia in terms of oil production within a few years.

TNK-BP added that it was qualified by the Iraqi Oil Ministry to develop oil and gas projects in the country. (iWireNews and OfficialWire)

07.05.2010

Oil and Gas Eurasia: Ryazan Refinery Completes Turnaround Ahead Of Schedule



TNK-BP announced May 6 that it had completed planned turnaround on eight of its processing units at the Ryazan Refinery (part of the TNK-BP Group) ahead of schedule. The refinery has returned to normal targets in terms of its throughput, the company reported.  

The scheduled turnaround at the Ryazan Refinery started on April 2. The entire scope of the program for replacement of worn-out equipment intended for the turnaround was completed. During this period, there were implemented 12 investment projects, and 35 significant equipments were replaced or upgraded. Over 1,400 contractor employees were engaged in the turnaround operations. For the turnaround period the Refinery had built up necessary stocks of oil products to ensure that customers would see no disruptions to their requirements.

“Due to extensive preparation, clear organization and consistent coordination of the turnaround activities the majority of process units were restarted in the operational mode ahead of schedule. That helped process extra 30,000 tonnes of crude. Overall the turnaround proved a success: no work-related injury was recorded. The Ryazan Refinery confirmed its status as one of the most advanced and modern oil processing companies across Russia”, TNK-BP Vice President Refining Operations Leonid Rozenberg said.

Copyright 2010, TNK-BP. All rights reserved.

Abc.az: Rosneft intends to co-operate with Institute of Geology of Azerbaijan



Baku, Fineko/abc.az. The delegation of representatives of Russian state-governed oil company Rosneft visited the Institute of Geology of the National Academy of Sciences of Azerbaijan.

The Institute’s press service informs that Rosneft is going to launch collaboration with the Institute.

“Concrete steps on co-operation will become known after debates in the Russian Embassy in Azerbaijan,” it was reported.

The Rosneft reps familiarized themselves with the laboratory, maps and schemes of the Institute.

06.05.2010 17:35

OfficialWire: Integra Group - Oil & Gas - Deals And Alliances Profile - New Report Published



Newly released report, Integra Group - Oil & Gas - Deals and Alliances Profile, provides detailed company analysis

Published on May 07, 2010

by Press Office

( and OfficialWire)

LONDON, ENGLAND

ntegra Group - Oil & Gas - Deals and Alliances Profile is an essential source for company data and information. The profile examines the company's key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy as well as highlighting the company's major recent financial deals.

Integra Group (Integra) is engaged in providng drilling, well workover (WO), formation evaluation services, integrated project management (IPM), and technology services. It also involved in manufacturing of drilling rigs, drilling tools and cementing equipment. The company operates in Western and Eastern Siberia, Uzbekistan, Azerbaijan, Kazakhstan, Ural, Komi Republic, Southern Russia, India, Brazil, Venezuela, the US, Turkmenistan, Ukraine, and Kazakhstan. The major clients of the company incldue Russian oil and gas companies and Russian subsidiaries of foreign oil comanies.It is headquartered at Moscow, Russian Federation.

And More inside the report...

Recent Developments

Dec 14, 2009: Integra Appoints Antonio Campo To Its Board

Aug 26, 2009: Antonio Campo joins Integra Group as Chief Executive Officer

Aug 26, 2009: Integra Names Antonio Campo As New CEO

Scope

- Provides key company information for business intelligence needs

- Gives information on the company's major recent financial deals including mergers & acquisitions, asset transactions, PE/VC deals, equity offerings, debt offerings and partnerships.

- Data is supplemented with details on the company's history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available company statement.

Reasons to buy

- A quick "one-stop-shop" to understand the company.

- Support sales activities by understanding your customers' businesses.

- Qualify prospective partners and suppliers.

- Understand and respond to your competitors' business structure, strategy and prospects through.

- Understanding the key deals which have shaped the company.

Integra Group - Oil & Gas - Deals and Alliances Profile:

Moscow Times: Shareholder Wins Ruling Against Transneft Over Charity Funds



07 May 2010

By Irina Malkova / Vedomosti

Transneft minority shareholder Alexei Navalny has won a court ruling forcing the police to conduct a check into the beneficiaries of the state-owned oil pipeline operator's billions of rubles in charity donations.

Navalny, a lawyer and activist shareholder, has been trying for two years to find out who receives Transneft's enormous contributions to charity. From 2005 to 2008, the company donated nearly 15 billion rubles ($494 million), but it does not disclose the recipients.

His first success was a decision Tuesday from Moscow's Tagansky District Court, which ruled that the police did not conduct a check into Transneft, despite Navalny's complaint, and that police investigator Ilya Samotayev had been "illegally inactive."

A copy of the ruling was obtained by Vedomosti.

Navalny did not go straight to the police. In 2008, he filed lawsuits against Transneft in the Moscow arbitration courts, which he lost. The company was able to prove that it is not required to disclose the recipients of its donations. Navalny then asked the Interior Ministry to conduct a check.

The check was assigned to investigators at the Moscow city police's department for the Central Administrative District, and specifically to Samotayev. In the fall of 2008, he twice signed orders refusing to open a criminal case, in which he explained that Transneft did not answer his requests for information and that its management did not show up for questioning.

Police even went once to Transneft's office, but they were unable to question the management because "the possibility did not arise." Samotayev then decided that no crime had been committed at the time the check was conducted.

The refusals to open a criminal case were overturned by prosecutors in the Central Administrative District, and the materials were returned to investigators for an additional check, Navalny said, but then all of the documents were lost.

That's when he went to court to file a complaint against Samotayev.

If he does not appeal the ruling, then Samotayev will be forced to get from Transneft the materials he needs to file an explanation for his ruling on the complaint, said Vladimir Pletnev, a partner at law firm Yustina.

Vedomosti was unable to reach Samotayev for comment. A spokesperson for the police in Moscow's Central Administrative District said Navalny's complaint had been considered and that it was decided not to open a criminal case. A new check will now be conducted, the spokesperson said.

Transneft spokesman Igor Dyomin declined to speak with Vedomosti.

The company has never disclosed details of its charitable giving, which it says is funded by part of the money it receives from selling leftover oil in its pipeline system. But a unit of state monopoly Sibnefteprovod once declared in 2007 that it spent more than 1.5 billion rubles on charity, including donations to Kreml-9, a foundation that provides assistance to the federal agencies providing state security.

Gazprom

Bloomberg: Gazprom Relaxes Take-or-Pay Rules for Turkey, Kommersant Says



By Anastasia Ustinova

May 7 (Bloomberg) -- OAO Gazprom, Russia’s gas exporter, granted Turkey an exemption to their so-called take-or-pay contract for this year, Kommersant reported, citing the company’s magazine. Turkey will be able to buy as much as 75 percent less gas than originally contracted without paying a penalty, the Moscow-based newspaper said.

To contact the reporter on this story: Anastasia Ustinova at austinova@

Last Updated: May 7, 2010 00:33 EDT

Steel Guru: Gazprom output dips below 1.4 billion cubic meters a day



Friday, 07 May 2010

Interfax quoted the Central Dispatching Department of the Fuel and Energy Complex said Gazprom current daily production of gas fell below 1.4 billion cubic meters at the start of May.

On May 2nd the company's production came to 1.414 billion cubic meters but dropped to 1.3888 billion cubic meters the next day.

On May 4th production came to 1.39 billion cubic meters which is an increase of 35.5% from the same day in 2009.

Gas production in Russia came to 1.772 billion cubic meters compared to 1.348 billion cubic meters a year previous.

(Sourced from Interfax)

07.05.2010

Oil and Gas Eurasia: New Chemicals Plant Mulled For Surgut



The idea of building a new chemicals plant in Surgut is currently being reviewed by potential investors, the head of Gazprom pererabotka, Yuriy Bazhenin, said.

The Surgutpolimera project has been the subject of serious talk for 20 years now. But, Bazhenin says, now is the time to carry it out. doing so would help Surgut's Condensate Stabilizing Plant (CSP) to solve some of its production problems. Currently, the plant receives gasoline additives from distant sources. As well, given a new chemicals plant in the vicinity, the unit could begin producing polyethylene and polypropylene.

SurgutinformTV reports that Gazprom's pererabotka's plans are also linked to Yamal. in the autumn of 2010, construction is to wrap up on a condensate pipeline from the Zapolyarnoye field which will deliver raw material to a plant in Urengoy to prepare condensate for the Surgut CSP.

Copyright 2010, Oil and Gas Information Agency. All rights reserved.

Euroweek: Gazprom-Neft leads nix rumours of changes



Issue: 1153 - 7 May 2010

Bankers close to a long-awaited $1bn pre-export financing for Russia’s Gazprom-Neft insisted this week that the deal was still on track to launch shortly, with no alterations to its structure. This is despite rumours in the last fortnight that more banks had been angling to join the facility at the top level, and that the mooted pricing could have changed. ..

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