Russia 111201
Basic Political Developments
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Moscow urges N. Korea to declare moratorium on nuclear activities
o Foreign Ministry calls on North Korea to abdicate nuclear projects
o Commentary and Information Department of the Foreign Ministry of
Russia on the statement the DPRK Foreign Ministry on uranium
enrichment program
On consultations of Deputy Minister of Foreign Affairs of Russia Sergey
Ryabkov in Israel - November 29-30 in Jerusalem, Deputy Minister of Foreign
Affairs Sergey Ryabkov met the with Israeli Foreign Minister Avigdor Lieberman
and President of Israel's National Security Y. Amidror.
Churkin supersedes Cabrala as UN SC Chairman
Russian Navy to take part in several joint drills in 2012 - Russian warship will
take part in the Frukus 2012 international drills, Baltops 2012 naval exercises in
the Baltic Sea and Ionex 2012 drills in the Ionian Sea, as well as in joint exercises
Bold Monarch 2012, Pomor 2012, Northern Eagle 2012 and Rimpac 2012, the
spokesman said.
Russia’s aerospace defence go on duty
o Space Corps launch boosts Russian defenses - In technical terms, they
comprise space control systems, orbit groups control installations and
missile alert systems. In addition, new radar stations have been put in
operation. According to the commander of the Russian Space Defense
Troops, Lieutenant-General Oleg Ostapenko, this raises their efficiency
and significantly strengthens Russia’s missile defense.
Kiev-Moscow gas talks are at final stage
o Gazprom sees significant progress in Ukraine talks - "It can be expected
that we will finalise agreements on the development of our cooperation in
the gas sector by the end of the year."
Poland introduces five-year visas for Russians
Russia bids to build nuclear power station in Poland
Russia-EU energy talks to continue in Moscow - “The programme of this PPC
will unite practical issues. For example, we shall discuss the EU’s plans to finance
the Trans-Caspian gas pipeline, the third energy packet, and contents of the
energy section of the future agreement on the Russia-EU partnership and
cooperation,” he said.
EADS Concern may buy Russia’s composites for plane production
Air Link Between Russian Far East And Alaska Restored - A four-hour flight
across the Pacific Ocean will connect passengers in Petropavlovsk, on Russia's
Kamchatka Peninsula, to the Alaskan capital, Anchorage.
Russian military officer visits Vietnam - Deputy Defence Minister, Lieutenant
General Do Ba Ty, received Senior Lieut. Gen. Shlyakhturov Alexandre
Vasilevich, Deputy Chief of Russia Armed Forces’ General Staff, in Hanoi on
Nov. 30.
Moscow to inject $7.3bn into Belarus
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Medvedev congratulates Kyrgyz leader on inauguration
o New Kyrgyz President Atambayev calls Russia main partner
o The head of Russian Presidential Administration Sergey Naryshkin not to
participate in inauguration of the Kyrgyzstan’s President Almazbek
Atambayev
Aliyev and Putin become citizens of same city
Medvedev signs law on ratification of Eurasian Econ Commisn Treaty
Gref urges CU countries to reduce non-productive costs - The Customs Union
(CU) member-countries must raise the competitiveness of their economies and
reduce non-productive costs so as to mitigate the consequences of a global
financial downturn, Gherman Gref, Chairman of the Board of the Sberbank
(savings bank) of Russia said at an economic forum here on Thursday.
Tskhinvali Quiet as Jioyeva Holds Talks with Kremlin Official - Jioyeva was
meeting last night with Kremlin’s deputy chief of staff Sergey Vinakurov, who
was sent to Tskhinvali by Moscow to try to settle post-election dispute in the
breakaway region.
o Ossetian community in Moscow speaks against civil disobedience
campaign of Alla Jiloyeva’s supporters
RF-Argentina trade turnover 2011 to make about two billion dollars
No differences can divide our peoples: Russian CG - He was addressing a Press
Conference held here at the Karachi Press Club on Wednesday to brief about the
Russian General Elections to the State Duma scheduled to be held next Sunday
(Dec 4).
INA Corruption Payments Linked to Russia’s Gazprom, Valasz Says - Croatia’s
corruption charges against Hungarian refiner MOL Nyrt. are erroneous as the two
Cyprus- based companies through which Mol Nyrt. allegedly paid a bribe to
obtain a majority in Croatian refiner INA (INARA) Industrija Nafte d.d. belong to
OAO Gazprom, Heti Valasz said, citing documents it obtained.
Russia’s Corruption Ranking at Four-Year Low, Transparency Says
o Russia ranks 143 in Transparency International 2011 corruption index
Russian ambassador wants to reward British rescuers after Irish Sea tragedy
Head of Turkish Administration for Religion holds meetings in Moscow - The
sides will discuss the clerical education of Muslims in Russia, exterior and
interior decoration of the new Moscow Cathedral Mosque. A technical group
from the Turkish Administration for Religion will arrive in Moscow in January
2012 for construction of the mosque.
Russia raises ISS orbit, confirms new crew - Russia's Mission Control Center
raised the orbit of the International Space Station (ISS) early Thursday to create
favorable conditions for the upcoming docking, the center said.
Russian Aerospace Forces monitoring Phobos-Grunt orbit
State support of tourism - impetus for foreign investors – Bilalov
UN: HIV Infections Growing In Russia, Ukraine
Russian Constitutional Court assesses bill on homosexual propaganda
Over 100 people suffer at hands of xenophobes in Russia in 2011 - human rights
report
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Almost 700 international observers to monitor State Duma election
o PACE delegation arrives in Russia to observe State Duma elections
o 15,000 youth to rally in support of Kremlin in Moscow - Around 15,000
pro-Kremlin youth will rally in Moscow during upcoming legislative
elections to ward off “provocation” by opposition groups, the movement
said yesterday.
Russian police confiscate radioactive Japanese car tyres - Police in the Russian
Pacific port city Vladivostok confiscated a shipping container from Japan that had
dozens of radioactive car tyres in it, the Interfax news agency reported on
Thursday.
U.S. fighter takes swipe at Russian healthcare - Monson was forced to seek
medical treatment after he broke his leg in a mixed martial arts fight with the
Russian champion Fedor Emelianenko last Sunday. However it was another man,
Vladimir Putin, who sustained the most serious injury - mainly to his ego.
PRESS DIGEST - Russia - Dec 1
o www.vedomosti.ru
o The paper runs an interview with the CEO of French drugmaker Ipsen
Marc de Garidel who says the company plans to expand its presense in the
Russian market by 15 percent per year.
o Net capital outflow from Russia in 2001 will reach $80 billion, a two
years' high since the financial crisis in 2008, according to economy
development forecast.
o www.kommersant.ru
o On Thursday Russia will try to convince the EU to support the South
Stream natural gas pipeline project and abandon building a gas pipeline
from the Caspian region that will bypass Russia, the daily says.
o Russia's biggest political party United Russia on Thursday will hold a
forum in St Petersburg with almost 4,000 people, the daily writes.
Russian Press at a Glance, Thursday, December 1, 2011
The final showdown begins - The final stage of the election campaign: the ruling
party narrows down to Medvedev and Putin. By Ivan Rodin
Russians blog to highlight fears of election fraud - When bloggers posted what
they said was a tape of the governor of this industrial region telling local
employers to organize "compulsory voting" for Vladimir Putin's ruling party, it
caused a stir across Russia.
Bishkek looks for donors - The new head of Kyrgyzstan gets some surprising
friends. By Dmitry Evlashkov, Daniyar Karimov
Lukashenka in Moscow: The Prodigal Son Is Coming Back?
Second Round Blues - Instability in South Ossetia Could Reflect Badly on the
Kremlin
Russia, U.S. Under Microscope at Chemical Weapons Pact Meeting
Moscow issues Trans-Caspian Project warning - By Vladimir Socor
National Economic Trends
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Russian Factory Output Picks Up Steam In Nov, PMI Shows
o Grow-vember: Russian manufacture on the rise
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Russian consolidated budget surplus 2.425 trln rubles for Jan-Sept – Rosstat
TABLE-Russian gold/fx reserves fall to $510.2 bln
Business, Energy or Environmental regulations or discussions
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Sberbank Surges as Futures Gain on Fed Move: Russia Overnight
Russia's OGK-1 9-month net profit rises
Polyus May Sell Treasury Stock, Join FTSE 100, Kommersant Says
o Polyus ready for London listing in current market conditions-report
DJ Trans-Siberian Gold Gets Approval Of Rodnikova Reserves Report
Rusal taps $582m loan
Prokhorov May Buy Kerimov’s MFK Bank Stake, Kommersant Says
UPDATE 1-Nomos Bank Q3 net misses forecast on trade loss
Kogan sells Mosmetrostroy stake to managers
Rusagro Q3 earnings fall 38 pct, cane sugar hit
Russia's Cherkizovo Q3 net profit rises 18 pct
Russian retailer Magnit Nov sales rise 33 pct
Russia’s MegaFon confirms signing deal on LTE devt with Scartel
Continental tire makers to open plant in Russia
Russian Railways looks lean - Alstom Transport is to provide Russian Railways
specialists with training in the implementation of lean manufacturing technology
under a memorandum of co-operation which was signed during the Second
Railway Congress in Moscow on November 19.
FUNDS: Nurturing Russia's venture capital industry
Activity in the Oil and Gas sector (including regulatory)
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FILL: Novatek Acquires 100% Of Gazprom Mezhregiongaz Chelyabinsk For
$48.8 Million
o Novatek snaps up regional gas distributor
Other foreign cos besides Total interested in Val Shatsky offshore project
TNK-BP lays out Vietnam strategy
Gazprom
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Gazprom Expects to Sign Gas Agreement With Ukraine This Year
Gazprom and Japan in talks over LNG project
Gazprom sees shale gas as risky
Gazprom draws up training needs for arctic projects
Gazprom ADRs Rise Most in Month After Credit Suisse Upgrade
How Gazprom lost control of Gazprombank
Turkmenistan: China Export Deal Undercuts Gazprom’s Leverage
-----------------------------------------------------------------------------------------Full Text Articles
Basic Political Developments
RT News line, December 1
Moscow urges N. Korea to declare moratorium on nuclear
activities
http://rt.com/news/line/2011-12-01/#id22843
The Russian Foreign Ministry has called on North Korea to suspend its activities in the
nuclear area and make practical steps to return to the Nuclear Non-Proliferation Treaty
(NPT). North Korea’s implementation of the uranium program “cannot help but cause
serious concern,” the ministry said in a statement on Thursday, adding that Russia does
not call into question Pyongyang’s sovereign right to develop civilian nuclear technology.
Moscow is urging North Korea to start measures to return to NPT and the International
Atomic Energy Agency (IAEA) regime of guarantees. As a first step, Pyongyang could
declare a moratorium on all nuclear activities, including uranium enrichment. On
Wednesday, North Korea announced plans to continue building a light-water reactor and
to increase low-enriched uranium production.
Foreign Ministry calls on North Korea to abdicate nuclear projects
http://www.rbcnews.com/free/20111201121731.shtml
RBC, 01.12.2011, Moscow 12:17:31.Russia's Foreign Ministry has called on
North Korea to impose a moratorium on all nuclear projects, including uranium
enrichment, and to provide specialists from the International Atomic Energy Agency
(IAEA) access to its nuclear facilities, the ministry said in a statement.
North Korea's resolve to develop nuclear programs, construct a light-water reactor
and ramp up nuclear fuel enrichment raises serious misgivings, the ministry noted,
adding that Russia has never challenged the country's right to use nuclear energy for
peaceful purposes, but opposes violations by North Korea of its non-proliferation
commitments.
Introducing a moratorium and inviting IAEA specialists would be an important
step toward the denuclearization of the Korean Peninsula, the Foreign Ministry went
on to say.
GOOGLE TRANSLATION
http://www.mid.ru/brp_4.nsf/0/5E024A37BC303B984425795900247088
Commentary and Information Department of the Foreign Ministry of Russia on the
statement the DPRK Foreign Ministry on uranium enrichment program
1895-01-12-2011
We have noted the statement of the North Korean side on the ongoing construction of the
full rate of light-water reactor (LWR) to North Korea and increased production of lowenriched uranium as fuel for the LWR. In this connection we would like to note the
following.
Consistent implementation of the uranium program in the DPRK can not but cause
serious concern. We never questioned North Korea's sovereign right to develop peaceful
nuclear energy. But we can not agree that this right is exercised outside the generally
accepted non-proliferation regimes, contrary to the provisions of relevant Security
Council resolutions.
We encourage our North Korean partners to heed the views of the world community as
expressed in Resolutions 1718 and 1874, to begin the practical movement to return to the
NPT and IAEA safeguards, as a first step - a moratorium on all nuclear activities,
including uranium enrichment, and to invite IAEA experts examine uranoobogatitelny
object in the nuclear center in Yongbyon. Thus will create favorable conditions for
restarting the six-party talks on denuclearization of the Korean Peninsula, peace and
stability in Northeast Asia.
December 1, 2011
CORRECTED GOOGLE TRANSLATION
http://www.mid.ru/brp_4.nsf/0/95E826AC88A3FF8C442579590023070C
PRESS RELEASE
On consultations of Deputy Minister of Foreign Affairs of Russia Sergey Ryabkov in
Israel
1894-01-12-2011
November 29-30 in Jerusalem, Deputy Minister of Foreign Affairs Sergey Ryabkov met
the with Israeli Foreign Minister Avigdor Lieberman and President of Israel's National
Security Y. Amidror. Ryabkov also held consultations on strategic stability, with the
Deputy Director General of Israeli Foreign Minister J.Issaharov.
Issues of non-proliferation of weapons of mass destruction, arms control, as well as
topical issues of regional and international agenda.
December 1, 2011
03:25 01/12/2011ALL NEWS
Churkin supersedes Cabrala as UN SC Chairman
http://www.itar-tass.com/en/c154/285916.html
UN, December 1 (Itar-Tass) —— Russia will chair in December the UN Security
Council.
Russia’s permanent representative at the UN Vitaly Churkin will supersede Jose Cabrala.
The new chairman will have bilateral meetings with his colleagues at the Security
Council to work out a plan for the month. Later on the plan should be approved officially
by members of the UN Security Council, and then, on Friday, December 2, Churkin will
have a briefing for reports accredited at the UN to announce plans for December.
However, even now already it is possible to say that the Security Council will focus on
the situation in the Middle East. The Council will continue consultation on Palestine’s
membership in the UN. The organisation is still considering Palestine’s application of
September 23. The Security Council’s committee on new members has not made any
recommendations on the issue. The committee’s report of November 11 only presents
different views from permanent representatives and experts.
Moscow “has always followed the approach, where it is a decision to be taken by the
Palestinian side,” Churkin said. “If the Palestinian side states it would like this issue to be
voted at the UN SC, Palestinians deserve that the UN SC accepted their application and
organised voting. This would be correct and honest, no matter what the voting will bring.
As for Russia, it will follow desire on the issue of the Palestinian delegation.”
The UN Security Council unites 15 members, where five are permanent – the United
Kingdom, the USA, China, Russia and France.
Russian Navy to take part in several joint drills in 2012
http://en.rian.ru/mlitary_news/20111201/169194741.html
04:18 01/12/2011
MOSCOW, December 1 (RIA Novosti)
The Russian Navy will take part in several international drills, including those involving
the United States, Britain and France, in the new training year which begins on Thursday,
a Russian Defense Ministry spokesman said.
Russian warship will take part in the Frukus 2012 international drills, Baltops 2012 naval
exercises in the Baltic Sea and Ionex 2012 drills in the Ionian Sea, as well as in joint
exercises Bold Monarch 2012, Pomor 2012, Northern Eagle 2012 and Rimpac 2012, the
spokesman said.
The Russian Black Sea Fleet will take part in Black Sea Naval Force (Blackseafor) drills,
he said.
Later in December, a group of Russian Northern Fleet warships led by the Admiral
Kuznetsov aircraft carrier will leave their home ports for a new deep-sea journey, he
added.
Russian warships are expected to visit more than 40 foreign ports in 2012. Russia will
also continue participating in anti-piracy efforts in the Gulf of Aden and off the Horn of
Africa.
00:59 01/12/2011ALL NEWS
Russia’s aerospace defence go on duty
http://www.itar-tass.com/en/c154/285879.html
MOSCOW, December 1 (Itar-Tass) —— Russia’s aerospace defence went on duty on
Thursday. The new type of troops has united space command, missile defense and the
Plesetsk Cosmodrome in the Arkhangelsk region.
The space Command includes space control systems, as well as a system of missile
warning.
According to the commander of the aerospace defence Forces Lieutenant-General Oleg
Ostapenko, the use of these troops "will improve significantly efficiency of information
as well as percussion tools which can fight an air-space enemy." The troops have
concentrated "all opportunities in the aerospace field in order to ensure maximum
performance tasks in this direction," he said.
The air-space troops should be the first line of defence against strategic military threats,
which are increasing dur to the Pentagon's plans to deploy a missile defense system near
the Russian border. Introduction of new radar stations is one of the means to strengthen
these forces and the entire missile defense system, the Defense Ministry said.
Russian President Dmitry Medvedev on Tuesday ordered to commission the VoronezhDM-class Kaliningrad radar as part of the missile warning system.
Medvedev, who arrived at the military unit where the radar is located, proceeded to the
command quarters. Commander of the aerospace defense (VKO) troops LeutenantGeneral Oleg Ostapenko reported to the head of state about the radar's readiness to go on
line, and Medvedev issued the order to add the facility to the VKO assets.
Congratulating the radar personnel on starting combat duty, the president said,
"Hopefully, the radar will function well and will be able to perform all the tasks set." He
wished the servicemen success.
Medvedev said he would chair a conference later in the day with the leadership of the
armed forces within the framework of the instructions he had issued last week in
connection with the situation involving U.S. missile defense facilities in Europe.
The Kaliningrad radar went on line ahead of schedule after the Russian president's
statement.
Radars of this class are Russian factory-assembled over-the-horizon, long-range warning
facilities. They feature a short deployment time at new location and a smaller crew
compared with radars of previous generations, as well as redeployment opportunities in
case of necessity.
In addition, Voronezh-DM functions in decimal waveband, which provides for higher
accuracy. Its energy consumption is lower by 40 percent, and it utilizes less equipment
than previous models. The range of Voronezh-dm reaches 6,000 kilometers.
At present, similar facilities are on experimental and combat duty in Armavir and the
Leningrad region (village of Lekhtusi). In 2012, another Vornozeh-DM radar will be
commissioned in the Irkutsk region.
The Kaliningrad radar was built to improve the missile warning system in Russia's
northeastern air/space direction and covers the western sector, which was monitored by
the stations in Mukachyovo and Baranovichi in Soviet times.
"It considerably expands the range of information tasks for subsequent decision-making
by our country's top leadership," VKO troops commander Lt-Gen Oleg Ostapenko noted
in this connection on November 25.
The Russian Defense Ministry plans to replace all Russian long-range radars with
Voronezh-DM facilities and build several new ones. Using these radars, Russia will fully
restore its monitoring of airspace in its territory and far beyond.
Space Corps launch boosts Russian defenses
http://rt.com/politics/space-forces-military-russia-625/
Published: 1 December, 2011, 12:50
Edited: 1 December, 2011, 13:12
Moscow has launched a team of Space Defense Troops. The corps is a reply to the US
and NATO’s constant push towards creating the European Missile Defense system with
components stationed near the Russian border.
Space Defense Troops are a brand new combat arm aimed at providing Russia’s security
in air and space.
The troops are made up of space, air and missile defense commands, as well as the
Plesetsk spaceport near Arkhangelsk in northern Russia and Kura testing area in
Kamchatka in the Far East.
In technical terms, they comprise space control systems, orbit groups control installations
and missile alert systems. In addition, new radar stations have been put in operation.
According to the commander of the Russian Space Defense Troops, Lieutenant-General
Oleg Ostapenko, this raises their efficiency and significantly strengthens Russia’s missile
defense.
From now on, more than 3,000 servicemen and civilian staff enter on duty on a daily
basis.
On Tuesday, President Dmitry Medvedev ordered operational the newest Russian radar
station, Voronezh-DM, which is located in Kaliningrad and protects from missile attacks
and covers all Europe and Atlantic.
Another Voronezh-DM radar station located in near Irkutsk in Siberia is scheduled for
launch in 2012.
Earlier, the Russian leader made a tough statement about lack of progress in talks on
missile defense with American and European partners. He stressed that they have not so
far provided any guarantees that the European anti-missile defense system in the making
is not aimed at Russia.
01:52 01/12/2011ALL NEWS
Kiev-Moscow gas talks are at final stage
http://www.itar-tass.com/en/c154/285895.html
KIEV, December 1 (Itar-Tass) —— The gas talks between Kiev and Moscow on
settlement of disputes between the parties are at the final stage, press service of Ukraine’s
Ministry of Energy and Coal Industry said on Thursday.
On November 30, during the meeting of Ukraine’s Minister of Energy and Coal Industry
Yuri Boiko and Chairman of Naftogaz of Ukraine Evgeny Bakulin with Gazprom’s CEO
Alexei Miller the sides discussed cooperation of the two countries in energy in the
framework of the earlier agreements between presidents of the two countries.
“The negotiations were constructive and the parties stated that the negotiation process is
at the final stage now,” the ministry’s report reads.
On November 10, Boiko said that Ukraine and Russia started technical procedures and
implementation of the agreements regarding settlement of disputes between the sides in
the gas issues.
Kiev is trying to persuade Moscow to revise two gas contracts, which Yulia Timoshenko
signed in January of 2009. Ukraine in particular presses for lower imported gas’ prices
and for using short-term contracts for supplies and transit of natural gas.
Gazprom sees significant progress in Ukraine talks
http://af.reuters.com/article/commoditiesNews/idAFL5E7N105X20111201
Thu Dec 1, 2011 6:11am GMT
MOSCOW Dec 1 (Reuters) - Russian gas export monopoly Gazprom said on Thursday it
had made "significant progress" in talks with Ukraine, a key export market and transit
route to Europe, and hoped to agree on future supply terms by year end.
Gazprom gave the upbeat assessment in a statement after its chief executive, Alexei
Miller, met Ukrainian Energy Minister Yuri Boiko for talks in Moscow on Wednesday.
"At the talks significant progress was achieved," Gazprom quoted Miller in a statement as
saying.
"It can be expected that we will finalise agreements on the development of our
cooperation in the gas sector by the end of the year."
Ukraine has been in talks with Russia for over a year in an attempt to negotiate a lower
price, saying it cannot afford the price it has to pay under a Jan. 2009 deal struck after
Russia cut off its western neighbour, disrupting supplies to Europe.
Ukrainian officials have warned that, under a contract formula linked to oil, the price
Ukraine pays for gas imports could jump to $485 per thousand cubic metres from around
$400 now, unless a new deal can be worked out.
Ukraine is already borrowing from Russia to pay for its gas, officials have said, and a
new tranche of a $15 billion aid package from the International Monetary Fund is
blocked because Kiev has not passed on gas price hikes to consumers.
Sources have said that in return for gas price concessions, Kiev may be willing to cede an
ownership stake in its gas pipeline network to Gazprom, with a further stake earmarked
for an energy company from the European Union.
EU Energy Commissioner Gunther Oettinger was due in Moscow on Thursday for talks
likely to focus on market rules -- opposed by Russia -- that would restrict gas producers
from controlling pipeline infrastructure on the bloc's territory.
Russian gas exports cover around a quarter of the EU's gas needs. Of that, 80 percent
traverses Ukraine, with the remaining 20 percent going via Belarus, which sold its
pipeline network to Gazprom last week in return for a 40 percent price cut.
Gazprom forecasts that its exports to Europe will rise by 8 percent next year to 164
billion cubic metres. The European export market accounted for 52 percent of the
revenues of state-controlled Gazprom last year. (Reporting by Douglas Busvine; editing
by Miral Fahmy)
Poland introduces five-year visas for Russians
http://english.ruvr.ru/2011/12/01/61296632.html
Dec 1, 2011 12:00 Moscow Time
The Polish Consulate in Moscow will start issuing 5-year visas for Russian tourists. The
Russian Union of Travel Industry’s official spokeswoman Irina Tyurina has said that in
order to obtain a long-term Polish visa for tourism purposes, the applicant must have two
previously granted Schengen visas. Poland has become increasingly popular with Russian
travelers. This year, the consulate has issued 67,000 visas, 13,000 more than in
2010. (TASS)
Russia bids to build nuclear power station in Poland
http://www.thenews.pl/1/12/Artykul/59478,Russia-bids-to-build-nuclear-power-stationin-Poland
01.12.2011 08:52
The Russian state-backed Rosatom company is bidding for a contract to build a nuclear
power station in Poland.
Earlier this month, Sergei Kirienko, Rosatom's president, noted that the nuclear power
industry suffered a huge setback following the damage to the reactor in Fukushima in
Japan during the earthquake. “Competition has become much tougher [between nuclear
power companies] but we have doubled our order book.”
Rosatom, which accounts for 20 percent of new reactors being constructed globally, joins
the French Areva, the US-based Westinghouse and the Japanese-American GE Hitachi in
bidding for the contract to build Poland's first nuclear power station, scheduled to come
on line by 2020, writes the Rzeczpospolita daily.
Last Friday, Zarnowiec, Choczewo and Gaski were confirmed as candidate locations for
the power plant Polska Grupa Energetyczna (PGE), the country's largest power producing
company and the key investor in the project.
Rostatom was to form an alliance with Germany's Siemens, but that has fallen through
after Chancellor Merkel announced a halt to the nuclear programme there following the
Fukushima disaster. (pg)
05:43 01/12/2011ALL NEWS
Russia-EU energy talks to continue in Moscow
http://www.itar-tass.com/en/c154/285942.html
MOSCOW, December 1 (Itar-Tass) —— A meeting of the Russia-EU Permanent
Partnership Council /PPC/ on energy is due in Moscow on December 1, Russia’s
permanent representative at the EU Vladimir Chizhov said on Thursday.
“The programme of this PPC will unite practical issues. For example, we shall discuss the
EU’s plans to finance the Trans-Caspian gas pipeline, the third energy packet, and
contents of the energy section of the future agreement on the Russia-EU partnership and
cooperation,” he said.
Chizhov stated earlier that the negotiations on the agreement for partnership and
cooperation will enter the final stage after Russia’s accession to the World Trade
Organisation (WTO), because this document “was initially developed proceeding from
the prerequisite that our trade and economic relations will be regulated by the WTO rules
for the period of the agreement validity.”
As for the third energy package, it compels the European countries to complete the
division of production and transmission assets of energy concerns, which operate in the
EU, next year. This measure may result in court deliberations over the scope of Russian
projects in Europe and daughter companies of Russian energy enterprises.
06:45 01/12/2011ALL NEWS
EADS Concern may buy Russia’s composites for plane production
http://www.itar-tass.com/en/c154/285967.html
MOSCOW, December 1 (Itar-Tass) —— Composite materials, production of which
started in Moscow on November 23,have the first big client.
“A delegation of the European aerospace and defence concern /EADS/, which featured
representatives of basic directions: construction of planes, helicopters and rockets, visited
the new production facilities in the territory of the Moskvich innovation development
centre,” Russia’s Compozit Holding Company told Itar-Tass. “During the meeting, the
sides agreed on cooperation in supplies of Russian carbonaceous fibre materials and on
organization of a working group to qualify and certify the production.”
According to the EADS regulations, the certification may take up to two years. “This
process is quite cost-based – up to a million euros,” the holding company’s Commercial
Director Kirill Vasilyev said. “The supplier will have to cover the expenses, but the
certification expenses will be repaid in future.”
In aviation construction modern composite carbonaceous fibre materials lower weight of
planes and improve strength and aerodynamic features, which will raise a lot
competitiveness of Russian planes in the international market. Nowadays, the share of
composite materials in promising passenger planes makes about 30-50 percent.
Kompozit carries out research, experiments, development and production of materials for
advanced and general applications. Its products include aluminium, beryllium, titan,
nickel alloys; constructional steels, carbon-carbon and ceramic-matrix composites, metalmatrix composites reinforced with boric and carbon fibres, constructional glass, organic
and carbon fibres plastics, coverings, glues, compounds and enamels. The company has
been involved in several spacecraft programs, such as Salyut, Soyuz, Proton, Mir,
Energiya - Buran, Sojuz - Apollon, Vega, Fobos and the International Space Station. It
has delivered some elements of the beryllium ion guide of CERN's Large Hadron
Collider in Switzerland.
EADS – is the world’s second largest aerospace company after Boeing. The concern is
Europe’s second largest producer of weapons and military machinery. The company
designs, produces and sells civil and military planes, rocket-carriers and their systems.
EADS is the sole shareholder / 100 percent shares/of Airbus S.A.S., which producers
passenger, cargo and military transporting planes.
Thursday, December 01, 2011
Air Link Between Russian Far East And Alaska Restored
http://www.rferl.org/content/russia_alaska_air_route_restored/24407946.html
The Russian airline Vladivostok Air will begin flying a new route next summer between
Siberia and the northwestern U.S. state of Alaska.
A four-hour flight across the Pacific Ocean will connect passengers in Petropavlovsk, on
Russia's Kamchatka Peninsula, to the Alaskan capital, Anchorage.
The last carrier to fly the route was Alaska Airlines, which discontinued flights in the late
1990s.
City officials in Petropavlovsk and Vladivostok have been working to develop their
tourism industries, and the new flight connection is expected to give those efforts a major
boost.
with agency reports
Russian military officer visits Vietnam
http://www.tuoitrenews.vn/cmlink/tuoitrenews/politics/russian-military-officer-visitsvietnam-1.53064
VIETNAMPLUS
Updated : Thu, December 1, 2011,9:47 AM (GMT+0700)
Deputy Defence Minister, Lieutenant General Do Ba Ty, received Senior Lieut. Gen.
Shlyakhturov Alexandre Vasilevich, Deputy Chief of Russia Armed Forces’ General
Staff, in Hanoi on Nov. 30.
Lieut. Gen. Do Ba Ty, who is also Chief of the General Staff of the Vietnam People’s
Army, welcomed the results of talks between the General Department II of the Vietnam
Defence Ministry and the Russia Armed Forces’ General Intelligence Department which
is headed by Senior Lieut. Gen. Shlyakhturov Alexandre Vasilevich.
Lieut. Gen. Ty and Senior Lieut. Gen. Shlyakhturov Alexandre Vasilevich agreed that the
exchanges of views on regional and international issues and sharing experience between
the two intelligence agencies not only increase mutual understanding and trust but also
contribute to consolidating and fostering traditional relations and the strategic cooperative
partnership between the two countries.
Moscow to inject $7.3bn into Belarus
http://www.rbcnews.com/free/20111201104932.shtml
RBC, 01.12.2011, Moscow 10:49:32.Russia will provide $7.3bn to Belarus in
2011-2012, or 25% of Belarus' GDP, Russian Ambassador Alexander Surikov said.
He specified that Belarus should receive a $1bn loan from Russia's Sberbank and
the Eurasian Development Bank, in which Russia is the largest shareholder; a $2.5bn
payment for the second half in gas pipeline operator Beltransgaz; and a second $440m
tranche from the EurAsEC bailout fund before the year's end. In 2012, Belarus could
tap another $880m tranche from the bailout fund, and the first $500m tranche of a
Russian loan financing construction of a nuclear power plant. The country will also
save $2bn by paying a lower price for Russian gas.
The ambassador went on to say that Russian oil companies are interested in
purchasing Belarusian oil refineries which process Russian crude. He also confirmed
the interest of Russian truck maker Kamaz in Belarusian truck producer MAZ.
Medvedev congratulates Kyrgyz leader on inauguration
http://english.ruvr.ru/2011/12/01/61299979.html
Dec 1, 2011 12:44 Moscow Time
“Russia remains a key partner for Kyrgyzstan”, the newly sworn-in Kyrgyz President
Almazbek Atambayev said during his inauguration ceremony in Bishkek on Thursday.
Mr. Atambayev, who won 62.5% of the vote in October`s presidential election, also said
he expects his country to join the Customs Union of Russia, Belarus and Kazakhstan to
boost the national economic development.
The two countries are long-time partners. Apart from other landmark projects, Russia and
Kyrgyzstan jointly manage several mining companies and build the Kambaratinsk-2
hydroelectric station.
Russia`s President Dmitry Medvedev sent his congratulations to Mr. Atambayev on his
inauguration as the new Kyrgyz leader. (TASS)
New Kyrgyz President Atambayev calls Russia main partner
http://vestnikkavkaza.net/news/politics/20498.html
New Kyrgyz President Almazbek Atambayev has taken office today. He is the leader
of the Social Democratic Party of Kyrgyzstan, one of the oldest and most notable
parties in the republic, the party was active in driving out President Askar Akayev in
March 2005 and President Kurmanbek Bakiyev in April 2010. Prime Minister
Almazbek Atambayev won presidential polls on November 30 with over 62% of vote,
outrunning 16 other candidates, RIA Novosti reports.
Chairman of the Central Electoral Commission Tuygunaly Abdraimov handed him
the verification note. The new president also received the presidential symbol and
the president’s standard of Kyrgyzstan.
The president’s symbol was made from the high-countermark gold and silver. It
resembles a copy of the Ak-Shumkar Order (White Falcon) on a chain with a length
of 108 cm, consisting of 14 sections in form of bay tree branches.
The inauguration ceremony was held at the big hall of state philarmony in Bishkek.
Turkish and Georgian Presidents Abdullah Gul and Mikheil Saakashvili, prime
ministers of Kazakhstan, Tajikistan and Azerbaijan were at the ceremony. China,
Uzbekistan, Belarus, Turkmenistan were represented by speakers and vicespeakers of parliaments. Russia was represented by Andrey Belyaninov, co-chair of
the Kyrgyz-Russian intergovernmental commission, head of the Russian Customs
Service, Grigory Karasin, state secretary of the Russian Foreign Ministry, Sergey
Vinokurov, head of the Russian governmental office, Valery Zorkin, head of the
Constitutional Court, and Valentine Sobolev, Deputy Secretary of the Security
Council.
Secretaries of the CSTO Nikolai Bordyuzha, SCO Muratbek Imanaliyev, CSTO
Lamberto Zannier, EurAsEC Tair Mansurov, Cooperation Council of Turkic States
Halil Akyndzhy, CIS Executive Committee Sergey Lebedev, EU Special
Representative for Central Asia Pier Morel, Special Representative of UN Secretary
General Miroslaw Yench, US Assistant State Secretary Robert Blake and other
officials were also present.
Atambayev said that Russia will remain the main partner of Kyrgyzstan. It expects to
cooperate with Russia and Kazakhstan. Joining the Customs Union would improve
Kyrgyz economy, he says.
The new president will have a military parade on the central square at the parliament
building. Additional security measures were taken.
It is the first peaceful change of power in the history of independent Kyrgyzstan. Its
first President Askar Akayev left the state during the revolution of 2005. The next
President Kurmanbek Bakiyev had to flee the country in 2010 from protests against
his corrupted ruling. Rosa Otumbayeva, Acting President and opposition member,
came to power in April 2010. She fulfilled her promises and organized a peaceful
switch of power.
A Kyrgyz president is elected for 6 years to only one term of office. Kyrgyzstan has
become a parliamentary republic.
Atambayev is expected to leave the Cabinet in the next few days.
The head of Russian Presidential Administration Sergey Naryshkin not to
participate in inauguration of the Kyrgyzstan’s President Almazbek Atambayev
http://eng.24.kg/politic/2011/12/01/21821.html
01/12-2011 10:53, Bishkek – 24.kg news agency
The head of Russian Presidential Administration Sergey Naryshkin will not participate in
inauguration of the Kyrgyzstan’s President Almazbek Atambayev. 24.kg news agency
was told in the President’s Office.
Recall, earlier the officials announced arrival of a high-ranking Kremlin employee as a
guest of solemn event for peaceful transfer of power. Subordinate officials of Emilbek
Kaptagaev did not comment on a reason for Sergey Naryshkin’s refusal to come to the
inauguration of Almazbek Atambayev. They suggested that it “might be related to the
upcoming Russian elections of the State Duma deputies on December 4”.
However, the expert community thinks, the Kremlin responded in such a way to
invitation of the Kyrgyz authorities of Georgian President Mikheil Saakashvili. We
remind that Russian- Georgian relations go through a cooling period that followed after
the military attack of official Tbilisi on Tskhinval.
The head of the Chechen Republic Ramzan Kadyrov, previously announced as a guest of
celebrations, has not arrived to the inauguration as well.
The Russian Federation is represented today only by the head of the Federal Customs
Service of Russia, co-chair of the Kyrgyz-Russian Intergovernmental Commission
Andrey Belyaninov, State Secretary of the Russian Foreign Ministry Grigory Karasin and
chairman of the Russian Constitutional Court Valery Zorkin.
Recall, the Chairman of the CIS Executive Committee - Executive Secretary Sergey
Lebedev and CSTO Secretary General Nikolay Bordyuzha are also among the guests
arrived in Bishkek.
URL: http://eng.24.kg/politic/2011/12/01/21821.html
Aliyev and Putin become citizens of same city
http://abc.az/eng/news_01_12_2011_60087.html
Baku, Fineko/abc.az. Yesterday in Baku Azerbaijani President Ilham Aliyev received a
delegation led by Astrakhan mayor Sergey Bozhenov.
During the meeting the mayor said that by decision of the Astrakhan City Duma the
President of Azerbaijan was awarded diploma Honorary Citizen of Astrakhan and handed
over diploma and medal Honorary Citizen of Astrakhan. Stressing that recently Russian
Prime Minister Vladimir Putin has also been awarded diploma Honorary Citizen of
Astrakhan, Bozhenov said he was proud of the fact that Azerbaijan’s President and Prime
Minister of Russia became honorary citizens of the city he governs.
In turn, President Aliyev voiced satisfaction with successful development of relationships
between Azerbaijan and Russia, including ties between cities and stressed in this context
the high level of cooperation between Baku and Astrakhan.
01.12.2011 08:13
12:27 01/12/2011ALL NEWS
Medvedev signs law on ratification of Eurasian Econ Commisn Treaty
http://www.itar-tass.com/en/c154/286223.html
MOSCOW, December 1 (Itar-Tass) — President Dmitry Medvedev signed a federal law,
“On the Ratification of the Eurasian Economic Commission Treaty”, on Thursday.
The law was approved by the State Duma on November 22, 2011 and passed by the
Federation Council on November 25, 2011, the Kremlin press service reported.
11:51 01/12/2011ALL NEWS
Gref urges CU countries to reduce non-productive costs
http://www.itar-tass.com/en/c154/286176.html
АSTANA, December 1 (Itar-Tass) — The Customs Union (CU) member-countries must
raise the competitiveness of their economies and reduce non-productive costs so as to
mitigate the consequences of a global financial downturn, Gherman Gref, Chairman of
the Board of the Sberbank (savings bank) of Russia said at an economic forum here on
Thursday.
"It is essential (for them) to straighten things out in their economies, inside the CU, and
get prepared for a sharp reduction in costs at all enterprises," Gref pointed out.
Gref said a deterioration of the international economic situation would be relayed to the
CU via two channels. The first one is the cost of raw materials. "Our economies must be
readied to realize that a decline in oil prices will come about sooner or later," Gref
maintains.
The second channel is a complication of the situation on the global financial markets.
Such a complication would be conducive "to a reduction in the influx of foreign
investments" and a rise in the price of external borrowings. "First of all, financial
instability affects maybe the most potential and at the same time most risk-prone markets,
to which we belong," he said.
In this connection, Gref's opinion is that in view of a global downturn "We all would
have to encounter a high volatility and the need for a certain period of time to artificially
maintain our competitiveness and the level of employment so as to endure maybe a longenough period of decline in the volume of production and in the prices of the output of
enterprises". His forecast is that "We shall see this kind of decline in both the
construction sector and machine building soon".
"As of now, the most correct thing we may do is to reduce all our common nonproductive costs," Gref emphasized.
Tskhinvali Quiet as Jioyeva Holds Talks with Kremlin Official
http://www.civil.ge/eng/article.php?id=24214
Civil Georgia, Tbilisi / 1 Dec.'11 / 13:57
It was quiet in Tskhinvali on Thursday morning with supporters of an opposition
candidate Alla Jioyeva, whose victory in the November 27 presidential runoff was
annulled by the breakaway region’s Supreme Court, are expected to reconvene for a
protest rally today, according to reports from the breakaway region’s capital.
After midnight Jioyeva’s supporters, who were gathered outside the government’s
building in Tskhinvali, heeded her calls and dispersed. During the rally on November 30
security forces fired warning shots into the air, reportedly in an attempt to prevent
protesters from breaking into the government building.
Jioyeva was meeting last night with Kremlin’s deputy chief of staff Sergey Vinakurov,
who was sent to Tskhinvali by Moscow to try to settle post-election dispute in the
breakaway region. Anatoly Bibilov, a presidential candidate backed by Moscow who lost
the race to Jioyeva in now annulled runoff, has kept low profile since the second round of
election.
Jioyeva said that “constructive dialogue” with the Kremlin official would continue later
on Thursday.
According to Itar-Tass news agency, Jioyeva said that she had no intention to make any
compromise and to back off from protecting her victory in the November 27 runoff even
if she was allowed to run in the repeat election set for March 25, 2012. She has formally
requested the Supreme Court to overturn its earlier decision annulling the runoff results.
The Supreme Court confirmed receiving an appeal from Jioyeva but failed to specify
when it would launch its consideration.
Rumors were circulating in Tskhinvali, that the authorities were intending to impose
emergency situation, but acting chairman of the breakaway region’s Parliament, Zurab
Kokoev, denied it, according to Res, a news agency run by the breakaway region’s
government.
Ossetian community in Moscow speaks against civil
disobedience campaign of Alla Jiloyeva’s supporters
http://vestnikkavkaza.net/news/politics/20505.html
The latest events in South Ossetia after the presidential polls and public
disagreements have caused a reaction in Russia, including responses from the
Ossetian community in Moscow. The Ossetian community in Moscow has spoken
out against the civil disobedience campaign of Alla Jiloyeva’s supporters.
Some are nettled by failed friendship with the “criminal regime”, others were blinded
by revenge, the community’s message for Vestnik Kavkaza says. The statements
made by the Ossetian community in Moscow or its council do not reflect views of the
council or the community as a whole.
The community expressed disagreement with rumours and false information on
South Ossetia. Authors of such rumours and views are often people that have never
lived in the republic.
The Ossetian community urged people not to rise to hostile calls, regardless of how
“patriotic” or attractive they may seem. Manipulations, lies and understatements
cannot cause hostilities within the community and the nation.
The document was signed by S. Adyrkhaeva, T. Berezov, A. Beriev, S. Bidihov, P.
Yeldzarov, N.Juruli, V. Kazakhov, M. Kantemirov, A. Kasayev, S. Kasayev, K.
Kokoyev, M.Kulumbegov, T. Muratsev, V. Soskiev, A. Torchinov, A. Uzhegov, V.
Tsallati, F. Tsarikati, U. Shavlokhov and others
05:31 01/12/2011ALL NEWS
RF-Argentina trade turnover 2011 to make about two billion dollars
http://www.itar-tass.com/en/c154/285941.html
BUENOS AIRES, December 1 (Itar-Tass) —— By the end of the current year, the
Russia-Argentina trade turnover will make about two billion dollars, though this level
does not reflect the potential of the two countries, Veronika Nikishina of Russia’s
Ministry of Economic Development told the Russia-Argentina business forum on
Thursday.
“Argentina is Russia’s one of strategic partners in the Latin American region,” she said.
“It is necessary to revise approaches to our trade and economic cooperation, focusing on
high technologies and science efficient projects.”
“We see big potential of cooperation with Argentinean partners and suggest agreeing on a
memorandum on mutual activities in modernisation,” she continued. “In the framework
of that document we may launch certain pilot projects, which may be based on ideas and
achieved agreements.”
Russia’s Ambassador to Argentina Viktor Koronelli stressed that “the entire complex of
the Russia-Argentina relations has been developing lately very dynamically, which
complies fully with agreements reached over meetings between our presidents in 2008
and 2010, and which are aimed at structuring relations of strategic partnership.”
He continued saying that the intensive political dialogue between Russia and Argentina is
added by active trade, economic, scientific, technical, cultural, humanitarian cooperation,
and meetings between enterprises of the two countries “improve existing contacts and let
us look for new niches for mutually advantageous cooperation.”
No differences can divide our peoples: Russian CG
http://pakobserver.net/detailnews.asp?id=128039
M M Alam
Karachi—Andrey V. Demidov Consul General of Russian Federation has said: “At
present unlike the past we have no political differences that can divide our countries and
peoples. We agree on almost each and every international issue”. He was addressing a
Press Conference held here at the Karachi Press Club on Wednesday to brief about the
Russian General Elections to the State Duma scheduled to be held next Sunday (Dec 4).
Russian diplomat held: “Very special importance is attributed to the inter-parliamentary
cooperation at a time that our two countries open a new page in the history of their
bilateral relations. Inter-parliamentary cooperation is a good platform for discussion and
exchange of views and opinions on different issues. But such a political unity should be
complimented with mutually beneficial economic cooperation. You all know the Russia
plans to allocate an amount of US $ 500 million for the upgrading of the Pakistan Steel
Mills. Special agreements are underway on construction of a South Asian Electricity
Trade and Development Project CASA-1000”.
Demidov, while terming Asif Zardari’s May visit to Russia as triumphant further said:
“We followed with keen interest very successful visits to Moscow and Saint-Petersburg
of two Pakistani delegations: a delegation headed by Honorable Chief Minister of Sindh,
and another by the President of the Federation of Pakistan Chambers of Commerce and
Industry. We hope that agreements concluded during those visits will be materialized for
the benefit of our two countries and peoples. Good prospects for fruitful bilateral
cooperation could be found in the fields of railroads and highway construction, energy,
coal mining and others”.
He said that the State Duma, its committees and individual MPs took an active part in
international inter-parliamentary cooperation and informed that very soon a Russian
parliamentary delegation headed by the president of that Federation Council of the
Federal Assembly was expected to come to Islamabad on an official visit. “The
delegation is due to establish contacts with the Chairperson of the National Assembly of
Pakistan”, he added.
Briefing about the forthcoming State Duma elections Russian Consul General informed:
“The State Duma is the lower house of Russian Parliament – the Federal Assembly. Each
and every bill before it becomes a law should be approved by the State Duma and then it
is passed for further approval to the upper house that is called the Federation Council. In
accordance with the Constitution of the Russian Federation (article 95) 450 MPs are to be
elected. Every citizen of the Russian Federation at the age of 21 or more has the right to
be elected to the State Duma”.
Andrey V. Demidov informed that the elections were being held based on electoral lists,
presented by political parties. “That means that Russia has a proportionate electoral
system that is the best from the point of view of properly reflecting the political
sympathies of the population. All seven political parties registered in Russia will take part
in the elections. Among them are parties of right-wing, centrist and left-wing
orientation”. Demidov further told that the parties had started pre-electoral propaganda
campaign. According to the special law on elections to the State Duma each party was
allocated equal amount of televised time for stating their platforms and programs. The
use of their own media was unlimited.
Informing about the political significance of the elections Demidov said: “The State
Duma and individual MPs take part in formulation in realization of the foreign policy of
the Russian Federation. The Committee of the State Duma for international affairs mainly
is manned with and presided by experienced Russian diplomats that previously worked in
the Ministry of Foreign Affairs. The State Duma often adopts statements on different
international issues that sometimes are even more aggressive than the statements of the
Ministry of Foreign Affairs”. Andrey Demidov anticipated that new generation of young
active politicians would come forth in the forthcoming elections who would work , “with
new energy for better future of their country as well as for the bright future of the
mankind”.
INA Corruption Payments Linked to Russia’s Gazprom, Valasz Says
http://www.bloomberg.com/news/2011-12-01/ina-corruption-payments-linked-to-russias-gazprom-valasz-says.html
Q
By Edith Balazs - Dec 1, 2011 8:50 AM GMT+0100
Croatia’s corruption charges against Hungarian refiner MOL Nyrt. are erroneous as the
two Cyprus- based companies through which Mol Nyrt. allegedly paid a bribe to obtain a
majority in Croatian refiner INA (INARA) Industrija Nafte d.d. belong to OAO
Gazprom, Heti Valasz said, citing documents it obtained.
Croatia is accusing Mol Chief Executive Officer Zsolt Hernadi of paying a 10 millioneuro ($13.5 million) bribe to former Croatian Premier Ivo Sanader through two Cyprusbased companies, which are Mol affiliates, the Hungarian weekly said.
The two companies, Hangarn Oil Products Trading Ltd. and Ceroma Holdings Ltd., are
controlled by Russian energy giant Gazprom through Atlas Alpha Services Ltd. and
Potassa Holdings Ltd., the paper reported.
To contact the reporter on this story: Edith Balazs in Budapest at
[email protected]
To contact the editor responsible for this story: James M. Gomez at
[email protected]
Russia’s Corruption Ranking at Four-Year Low, Transparency Says
http://www.businessweek.com/news/2011-12-01/russia-s-corruption-ranking-at-fouryear-low-transparency-says.html
December 01, 2011, 1:05 AM EST
By Henry Meyer
Dec. 1 (Bloomberg) -- Russia’s ranking among the world’s most corrupt nations fell to
the lowest level since 2007, the year before President Dmitry Medvedev came to office,
according to Transparency International.
Russia was classified as the 143rd most-corrupt country out of 182 surveyed in
Transparency International’s 2011 Corruption Perceptions Index, an improvement on its
154th place the previous year. Even with the improved ranking, Russia remains the
world’s most corrupt major economy, with higher levels of graft than in Pakistan,
Cameroon and Niger. New Zealand is the least corrupt country and Somalia the most,
according to the Berlin-based anti-corruption watchdog.
Medvedev, 46, a former corporate lawyer, repeatedly promised to fight corruption and
improve the rule of law. He agreed in September to step aside next May to make way for
the return of Prime Minister Vladimir Putin to the presidency. Putin, 59, a former KGB
officer, has been in power since 2000 and may serve as president for another 12 years.
Russians paid at least 164 billion rubles ($5.35 billion) in bribes last year to buy off
teachers, traffic policemen and others in “everyday” situations, almost double the level in
2001, the Economy Ministry said in June.
--Editors: Andrew Langley, Jennifer Freedman
To contact the reporter on this story: Henry Meyer in Moscow at
[email protected]
To contact the editor responsible for this story: Balazs Penz at [email protected]
Russia ranks 143 in Transparency International 2011 corruption index
http://en.rian.ru/crime/20111201/169195312.html
05:14 01/12/2011
MOSCOW, December 1 (RIA Novosti)
Despite Russian President Dmitry Medvedev’s efforts to fight corruption, its level in
Russia remains extremely high, with the country ranking 143rd out of 182 countries in
Transparency International's 2011 Corruption Perceptions Index published on Thursday.
Russia’s ranking indicates an improvement on its 154th place in the Berlin-based anticorruption watchdog’s 2010 list.
But despite this, the country remains the world’s most corrupt major economy, with a
score of 2.4 on a scale from 0 (highly corrupt) to 10 (highly clean) and the level of graft
equal to those of Uganda and Nigeria.
New Zealand (9.5) tops Transparency International's list as the least corrupt county,
followed by Denmark (9.4) and Finland (9.4). The most corrupt countries are Somalia
and North Korea, both having scored 1.0.
Yelena Panfilova, the head of Transparency International's Russian branch, earlier said a
score below 3 describes the level of corruption in a country as extremely high. The 2011
index shows that nearly two thirds of the listed countries score below five.
Medvedev has declared a fight against corruption one of the cornerstones of his domestic
policies. He has agreed to step down in favor of Prime Minister Vladimir Putin when his
presidential term expires in 2012, allowing Putin to run for the presidency next March.
Russian ambassador wants to reward British rescuers after Irish Sea tragedy
http://en.rian.ru/russia/20111201/169193813.html
03:08 01/12/2011
LONDON, December 1 (RIA Novosti)
Russian Ambassador to Britain Alexander Yakovenko has proposed rewarding British
rescuers involved in the operation in the Irish Sea following the sinking of a cargo ship
with Russian sailors onboard.
The Swanland cargo vessel with 3,000 tons of limestone onboard sank off the coast of
north Wales after making a distress call at about 02:00 GMT on Sunday. The 81-meter
vessel is believed to have suffered a cracked hull after it was hit by high waves.
One sailor died, five went missing, and two other members of the eight-strong Russian
crew were recovered.
Dozens of British rescuers were involved in a search operation following the tragedy.
Among them was Prince William, who serves as a Royal Air Force search-and-rescue
helicopter pilot in Wales.
“What if we propose them [the rescuers] to be rewarded by the Russian side?”
Yakovenko said during a meeting with the two survivors, Roman Savin and Vitaly
Karpenko, in London on Wednesday.
Savin and Karpenko agreed this was a good idea.
Both sailors said they were planning to return Russia on Thursday. When asked about
their plans for future, they said they were still undecided whether to continue their career
at sea.
The search for the five missing sailors was called off late on Monday. An empty life raft
was found during the search.
Head of Turkish Administration for Religion holds meetings in
Moscow
http://vestnikkavkaza.net/news/society/20501.html
Mehmet Gormez, head of the Turkish Administration for Religion, has met Chairman
of the Russian Mufti Council Ravil Gaynutdin in Moscow, at the invitation of the
Patriarch of Moscow and All-Russia Kirill, TRT reports.
The sides will discuss the clerical education of Muslims in Russia, exterior and
interior decoration of the new Moscow Cathedral Mosque. A technical group from the
Turkish Administration for Religion will arrive in Moscow in January 2012 for
construction of the mosque.
Gormez and Gaynutdin met Rector of the Moscow Islamic University Marat Murtazin.
They noted positive development of bilateral ties. Turkey is taking part in composing
a three-tome encyclopedic dictionary for Islam on the Russian language. It also
plans to support in publishing literature for education, IslamRF reports.
Gormez also met Kirill in his Moscow residence. They expressed willingness to
continue the clerical tradition and dialogue.
Russia raises ISS orbit, confirms new crew
http://news.xinhuanet.com/english2010/sci/2011-12/01/c_131282589.htm
2011-12-01 16:58:08
MOSCOW, Dec. 1 (Xinhua) -- Russia's Mission Control Center raised the orbit of the
International Space Station (ISS) early Thursday to create favorable conditions for the
upcoming docking, the center said.
As a result, the ISS orbit was elevated by 1.8 km to 428.4 km.
The maneuver was conducted at 03:11 Moscow time (2311 GMT Wednesday) by the
boosters of the ISS' Zvezda module and lasted 63 seconds. The center said the correction
was a complete success.
Corrections to the space station's orbit are conducted periodically before launches of
Russian cargo ships and U.S. shuttles to compensate for the Earth's gravity and ensure
successful dockings.
Also on Thursday, the Federal Space Agency Roscosmos, the Cosmonauts Training
Center, as well as other agencies and institutions confirmed the new crew members who
are to travel to the ISS on Dec 21.
The main crew includes Russian cosmonaut Oleg Kononenko, Andre Kuipers from the
European Space Agency (ESA) and Donald Pettit from the NASA.
December 01, 2011 11:49
Russian Aerospace Forces monitoring Phobos-Grunt orbit
http://www.interfax.com/newsinf.asp?id=291436
ZARYA, Moscow region. Dec 1 (Interfax-AVN) - The Russian Aerospace Forces are
monitoring orbit parameters of the Phobos-Grunt interplanetary research rover, Forces
Commander Lt. Gen. Oleg Ostapenko told reporters on Thursday.
"This is not a task of the Aerospace Forces but we do the monitoring and know where the
rover is," he said.
When asked what would happen to Phobos-Grunt, the general said, "Any object in orbit
falls down sooner or later."
Phobos-Grunt was launched from Baikonur on November 9. After being released by the
Zenit carrier rocket, the craft failed to start its engines which were supposed to propel it
to a higher support orbit from which it could fly toward Mars.
Phobos-Grunt was due to fly to Phobos, land on this celestial body, take samples of soil
and deliver them to Earth for laboratory research. The mission was due to last about two
and a half years. According to informal reports, the project cost around 5 billion rubles.
te jv
(Our editorial staff can be reached at [email protected])
07:29 01/12/2011ALL NEWS
State support of tourism - impetus for foreign investors - Bilalov
http://www.itar-tass.com/en/c154/285977.html
MOSCOW, December 1 (Itar-Tass) —— Russia’s state support of businesses in tourism
has become a mighty impetus for foreign investors, Russia’s senator and chairman of the
North Caucasus Resorts state-run corporation Akhmed Bilalov told a round table.
“We do not have to persuade businesses to invest in development of the North Caucasus
cluster,” he said. “If there are necessary conditions ready, an investor will be more than
willing to come to invest in the region’s infrastructures.”
The government “is ready to provide guarantees and to support businesses, which is a
mighty impetus for foreign investors,” he continued. “Major foreign projects used this
approach, I mean the state-private partnership.”
“The mechanisms, we have organised while working on organisation of a tourism cluster
in the North Caucasus, make a construction, which we expect many investors to join in
future,” he said. “The North Caucasus Cluster project is very important for development
of the tourism sector not only in the North Caucasus itself, but for the entire country.”
Here, the main problem “we are facing during implementation of the project is the
problem of qualified staff,” Bilalov continued. “There are two ways to solve the problem:
either by organisation of a separate educational institution to train both Russian and
foreign specialists in tourism, or to place an order with private and state universities to
train specialists.”
“We may follow the experience of France, where tourism specialists are trained for six
years and after graduation they are universal specialists who may be guides, or may
provide first medical aid.”
During the meeting, Russia’s presidential envoy to the North Caucasus Federal District
Alexander Khloponin said that “tourism is the economy’s private sector, and the
approaches here should be based on business requirements, as businesses like no one else
know what the sector needs.”
Russia’s Deputy Minister of Sports, Tourism and Youth Policy Nadezhda Nizina stressed
that “the human resources issue is one of most important problems of tourism.” She
expressed confidence that there should be legally binding requirements for staff of
tourism industry.
“A legally formalised set of requirements should improve quality of hospitality business,”
she said adding that “Russia should have obligatory classification of its all hotels.”
“Sochi has introduced obligatory classification of its hotels from July 1,” she continued.
“This is a correct approach and we hope that the State Duma will adopt soon a law on
obligatory classification of hotels.”
The discussion on development of tourism in Russia on the basis of the state-private
partnership was initiated by the Popular committee of President Dmitry Medvedev’s
allies in the framework of the Big Government with the support from the North Caucasus
Resorts company.
Following the discussion, organisers will prepare their suggestions to be presented to
Russia’s president. The suggestions will focus on modernisation of management system
in Russia’s tourism sector.
Earlier in November, The development company overseeing construction of a massive
system of ski, beach and natural heath spa resorts covering 50,000 square kilometres in
the North Caucasus Mountains, stretching 1,200 kilometres from the Caspian Sea to the
Black Sea and bordering Asia, was named the first Russian winner ever of a renowned
MIPIM global real estate competition.
“Asia-Pacific investors seeking to diversify outside their domestic markets to mitigate
risk and secure higher returns will find great opportunity within our unique plan for
developing a sustainable tourism industry in the mountains on our country’s southern
border with Asia,” Akhmed Bilalov said. “We expect many also will be attracted to the
chance to participate in the first major step in a proposed new national strategy to use
public-private initiatives in tourism to spur much-needed economic growth in depressed
regions of the Russian Federation.”
Moscow-based North Caucasus Resorts was established in December of 2010 to drive the
massive tourism project, which will create up to 300,000 new jobs.
Thursday, December 01, 2011
UN: HIV Infections Growing In Russia, Ukraine
http://www.rferl.org/content/aids_russia_ukraine_iran/24407694.html
In information released to mark the annual World AIDS Day, the United Nations' World
Health Organization (WHO) says Eastern Europe and Central Asia continue to show
"dramatic growth" in the number of HIV infections.
WHO says new infections in the region have increased by 250 percent from 2001 to
2010.
And it said some 90 percent of the infections in the region occur in just two countries:
Russia and Ukraine.
The UNAIDS organization, designed to bring UN agencies together to fight HIV
transmission, said injecting drug use remains the leading cause of HIV infection in
Eastern Europe and Central Asia -- although "considerable" transmission also occurs
among the sexual partners of people who inject drugs.
The UNAIDS reports said that after slowing in the early 2000s, HIV incidence in Eastern
Europe and Central Asia has been accelerating again since 2008.
It adds that unlike most other regions, AIDS-related deaths continue to rise in Eastern
Europe and Central Asia.
The report has praise for Iran, saying HIV prevalence has "declined steadily" in the
country since peaking in 2005 -- in part due to efforts by authorities to address health
problems among injecting drug users.
The report says there is a network of more than 600 clinics that address drug injection,
HIV and sexually transmitted infections in Iran, and that authorities have implemented
programs to provide clean needles and opioid substitutes to injecting users. The report
says an estimated 15 percent of people who inject drugs in Iran are living with HIV.
Worldwide, the UN says the number of new HIV infections fell to 2.7 million in 2010,
down from 3.1 million in 2001. The UN says HIV/ AIDS have killed more than 25
million people over the past three decades. It says approximately 34 million people were
living with HIV in 2010.
The Human Immunodeficiency Virus (HIV), at its most advanced stage of infection,
becomes AIDS, or Acquired Immunodeficiency Syndrome.
01 December 2011, 10:01
Russian Constitutional Court assesses bill on homosexual propaganda
http://www.interfax-religion.com/?act=news&div=8912
St. Petersburg, December 1, Interfax - A bill imposing an administrative penalty for
propaganda promoting homosexuality and pedophilia among minors has been evaluated
by the Russian Constitutional Court, said St. Petersburg Legislative Assembly member
Vitaly Milonov, who authored the bill.
"This bill underwent a verification procedure at the Constitutional Court, which gave a
clear definition to the term 'homosexual propaganda," Milonov told a press conference in
St. Petersburg.
The bill does not discriminate in any way against homosexuals, Milonov said.
For his part, St. Petersburg Speaker Vadim Tyulpanov said he was surprised by the
negative U.S. reaction to the bill.
"The U.S. Department of State has nothing else to do but mind our bill," he told a press
conference that focused on the results of the fourth term of the legislature.
Thanks to the debate surrounding this document, the St. Petersburg parliament has
become famous across the world, he said.
"While the bill was debated, I started receiving e-mails from city residents supporting the
bill. Over 90% of St. Petersburg citizens support the bill," Tyulpanov said.
On November 16, the St. Petersburg Legislative Assembly approved on first reading a
bill imposing administrative liability for homosexual and pedophile propaganda among
minors. In presenting the bill, author Vitaly Milonov said the bill must be passed to
protect children from destructive information.
Under the bill, homosexual propaganda will entail a fine of 1,000-3,000 rubles for
individuals, 3,000-5,000 rubles for officials and 10,000-50,000 rubles for companies.
President of the Federation Council Valentina Matviyenko voiced support for the bill.
For her part, U.S. State Department spokeswoman Victoria Nuland said that Washington
is concerned by the proposal to pass this bill as it seriously restricts the freedom of selfexpression and the freedom of assembly for sexual minorities. The U.S. administration
believes that the rights of homosexuals are an integral part of human rights.
The Russian Foreign Ministry said that Nuland's statement is inappropriate and represents
an act of interference in Russia's legislative process. "We are perplexed by the American
side's attempts to interfere in the legislative process in Russia, especially publicly. We
view the attempt as inappropriate and inconsistent with the practice of interstate
relations," Dolgov said, answering a question from Interfax.
December 01, 2011 12:19
Over 100 people suffer at hands of xenophobes in Russia in 2011 - human rights
report
http://www.interfax.com/newsinf.asp?id=291458
MOSCOW. Dec 1 (Interfax) - Thirty-three regions of Russia recorded xenophobic and
racially motivated attacks this year, a source at the Sova center, which is monitoring
xenophobic crimes, told Interfax on Thursday.
"Most of the incidents happened in Moscow and its suburbs, St. Petersburg and the
Kaluga region in 2011," the center said.
Eighteen people died at the hands of xenophobes and 122 were injured, Sova said.
Most of the victims were natives of the Caucasus and Central Asia, representatives of
youth sub-cultures and sexual minorities, it said.
Earlier, Sova posted a report, which said that the number of xenophobic attacks in
Moscow had been declining. It said the police neutralized the largest and most aggressive
ultra-right groups in the Moscow region in 2008 and 2009.
Courts pronounced the Movement against Illegal Migration and the Slavic Union
extremist. After the ban, the nationalist organizations merged into the Russkiye
movement.
te jv
RT News line, December 1
Almost 700 international observers to monitor State Duma
election
http://rt.com/news/line/2011-12-01/#id22843
Russian Central Elections Commission will accredit 697 international observers at the
parliamentary elections due on December 4. There will be more than 500,000 Russian
observers at the poll, CEC chairman, Vladimir Churov told reporters on Thursday.
Churov himself will cast his vote at the Leo Toltsoy polling station in Yasnaya Polyana
with an absentee voter certificate, Interfax reports. Voters will choose among seven
registered parties in line with a proportional system.
01:31 01/12/2011ALL NEWS
PACE delegation arrives in Russia to observe State Duma elections
http://www.itar-tass.com/en/c154/285891.html
MOSCOW, December 1 (Itar-Tass) —— A delegation of the Parliamentary Assembly of
the Council of Europe /PACE/ is arriving on Thursday in Russia to monitor the elections
to the State Duma.
The head of the mission of the observers is Tini Koks /the Netherlands/.
PACE deputies visited Moscow on November 8-11, and results of the visit aroused some
questions from Russia’s Central Elections Commission /CEC/. CEC’s Head Vladimir
Churov filed applications to the Prosecutor General’s Office and to the Foreign Ministry
as he had seen in the mission’s actions “signs of violation of Russia’s legislation.”
However, he did not give any details. Experts supposed that the applications may have
been caused by the speech of the delegation’s head Tini Koks, where he commented to
reporters the election campaign, and in particular the agitation. PACE, in its turn, said
that the mission had acted and would act in strict compliance with international norms
and existing practice in that sphere.
The meeting of the parliamentarians and Churov did not happen then. This time, it is on
the agenda, PACE’s press service reports. Besides, the delegation plans to have meetings
with leaders of the seven political parties participating in the elections to the State Duma,
and with representatives of some nongovernmental organisations.
Other international organisations are also ready for monitoring of the elections. The CIS
mission has started its work. 40 observers representing OSCE’s Office for Democratic
Institutions and Human Rights /ODIHR/ have been working in Russia since late October,
and on December 4, their 160 colleagues will join them. The delegation will be working
in Russia’s 30 regions. On December 5, representatives of PACE and OSCE will
participate in a news conference.
According to Churov, CEC has accredited 649 international observers, who represent
missions of OSCE, PACE, CIS, SOC, and others.
15,000 youth to rally in support of Kremlin in Moscow
http://www.thepeninsulaqatar.com/international/174183-15000-youth-to-rally-in-supportof-kremlin-in-moscow.html
Thursday, 01 December 2011 05:03
MOSCOW: Around 15,000 pro-Kremlin youth will rally in Moscow during upcoming
legislative elections to ward off “provocation” by opposition groups, the movement said
yesterday.
Elections to the national parliament, the Duma, take place on Sunday and the Nashi
(Ours) youth movement, a political force with open Kremlin backing, said its militants
would gather in Moscow on the day of the vote and the following two days.
“According to our information, troublemakers are planning to come to Moscow on these
days,” said the movement which sprang up in support of former president and now Prime
Minister Vladimir Putin.
“So on December 4, 5, and 6, during the legislative elections, up to 15,000 youths will
rally,” Nashi said. “If there is any attempt at provocation, these people will be
neutralised.”
AFP
It said it was planning a major rally on Nonday at Manezh square, next to Red Square and
near the Kremlin walls and would be on the look-out for action by radical opposition
groups such as Solidarnost, which has called for a boycott of the vote.
Some 110 million eligible voters are called on to elect 450 deputies to the Duma in
Sunday’s poll expected to be won by Putin’s party but without the two-thirds majority its
now holds in the lower house, according to polls.
Russian police confiscate radioactive Japanese car tyres
http://www.monstersandcritics.com/news/europe/news/article_1678283.php/Russianpolice-confiscate-radioactive-Japanese-car-tyres
Dec 1, 2011, 7:34 GMT
Moscow - Police in the Russian Pacific port city Vladivostok confiscated a shipping
container from Japan that had dozens of radioactive car tyres in it, the Interfax news
agency reported on Thursday.
A total 29 tyres in the shipment were emitting excess levels of gamma and beta rays,
making them unsafe to bring into Russia, a port official said.
'There's a good chance the radioactive tyres are a result of the Fukushima accident,' said
Ivan Skogorev, a safety inspector.
The tyres' owner might have them decontaminated, shipped backed to Japan or buried in
a hazardous waste site in Russia; but as yet the shipment's consignee had not come
forward, Skogorev said.
Vladivostok custom officials in April halted a batch of 49 radioactive automobiles
exported from Japan, some of which were found to emit dangerous isotopes at six times
safe levels. A similar incident was reported in June.
Russia's Far Eastern region is a major consumer of used Japanese automobiles.
Japan's Fukushima nuclear power station suffered a series of nuclear meltdowns as a
result of an earthquake.
U.S. fighter takes swipe at Russian healthcare
http://en.rian.ru/russia/20111201/169204616.html
12:55 01/12/2011
MOSCOW, December 1 (RIA Novosti, Alexei Korolyov)
“The hallways were full of wandering patients that looked like they were just out of a
civil war battle,” is how Jeff Monson, a U.S. heavyweight fighter, describes his
experience at a hospital in Moscow in a blog post not exactly flattering about the Russian
capital’s healthcare.
Monson was forced to seek medical treatment after he broke his leg in a mixed martial
arts fight with the Russian champion Fedor Emelianenko last Sunday. However it was
another man, Vladimir Putin, who sustained the most serious injury - mainly to his ego.
The Russian prime minister climbed onto the ring to congratulate Emelianenko but was
met with boos and catcalls from the 22,000-strong crowd. Putin’s spokesman hastened to
repair the damage, saying fans were in fact booing Monson, a claim rebutted by hundreds
of supportive messages from Russians on his Facebook wall.
“You are a great fighter! Whistling was not [at] you, it was an expression of disapproval
at our prime minister,” Vladimir Kazakov from Tula wrote.
Jeka Zorja said: “We hate only our government! We respect the real men, [which] you
really are! All the whistles were only for Putin and for his party; they are the greatest
thieves in our history!”
One user posted that Monson should take on Putin next.
Monson admitted that Emelianenko was a “class act” and that the fight didn’t go as
planned for him. He then had a choice of two hospitals: “one for everyday folks and one
for visitors and government officials.”
“I picked the local everyday folk hospital as I was told it was closer to the arena,”
Monson wrote in his blog on the MMA-Connection website earlier this week.
He said that while he was “not a big fan of the medical industrial complex in the U.S.,”
the Moscow experience made him “appreciate the comfort of health care in this country.”
When he arrived, staff were smoking in the lobby while “the hallways were full of
wandering patients that looked like they were just out of a civil war battle.”
There was first a mix-up over which part of his body was to be x-rayed.
“I had to fight with one of the doctors to avoid having my skull x-rayed. Eventually I got
an x-ray for my leg which showed it was broken (something I already knew) and had it
casted,” Monson said.
He then had “16 stitches on the inside and outside of my lip with a material that could
have passed for chicken wire.”
“It was so sharp it was making my gums bleed so I took them out myself.”
In an interview with the tabloid Moskovsky Komsomolets on Thursday, the staff at the
hospital no. 36 said the “wandering patients” Monson witnessed were “local lushes
injured in family fights.”
“Every day after 6 p.m. there is an influx of patients with bloodied faces,” doctors said.
They also dismissed Monson’s complaints about the material used in the stitching, saying
it was “the cheapest and used everywhere in Russia.”
Monson said, however, that he felt no anger: “The doctors were very kind and despite the
inadequate medical equipment/supplies they knew what they were doing.”
“As far as Putin and the booing at the end of the fight, well that’s another story at some
other time,” he added.
PRESS DIGEST - Russia - Dec 1
http://www.reuters.com/article/2011/12/01/press-digest-russia-decidUSL5E7N10OE20111201
3:08am EST
MOSCOW, Dec 1 (Reuters) - The following are some of the leading stories in Russia's
newspapers on Thursday. Reuters has not verified these stories and does not vouch for
their accuracy.
VEDOMOSTI
www.vedomosti.ru
- The paper runs an interview with the CEO of French drugmaker Ipsen Marc de Garidel
who says the company plans to expand its presense in the Russian market by 15 percent
per year.
- Net capital outflow from Russia in 2001 will reach $80 billion, a two years' high since
the financial crisis in 2008, according to economy development forecast.
KOMMERSANT
www.kommersant.ru
- On Thursday Russia will try to convince the EU to support the South Stream natural gas
pipeline project and abandon building a gas pipeline from the Caspian region that will
bypass Russia, the daily says.
- Russia's biggest political party United Russia on Thursday will hold a forum in St
Petersburg with almost 4,000 people, the daily writes.
(Reporting By Ludmila Danilova)
Russian Press at a Glance, Thursday, December 1, 2011
http://en.rian.ru/russia/20111201/169198195.html
08:50 01/12/2011
POLITICS
The Russian Central Election Commission is making final arrangements for Sunday’s
parliamentary elections. (Moskovskie Novosti)
ECONOMY
Russia’s GDP may exceed those of France, Britain and Germany in the next 20 years,
allowing the country to discuss joining the European Union, prominent U.S. economist
and head of Goldman Sachs Asset Management, Jim O'Neill, has predicted. (Rossiiskaya
Gazeta)
The deputy head of the Russian Economy Ministry, Andrei Klepach, has said the forecast
for Russia's net private capital outflow in 2011 has been increased to $80 billion from
$50 billion. (Kommersant, Nezavisimaya Gazeta)
OIL&GAS
Russia and the European Union will begin on Thursday a regular round of arduous
negotiations on gas pipeline projects. Russian Energy Minister Sergei Shmatko will once
against try to persuade EU Energy Commissioner Gunther Oettinger to support Russia’s
South Stream project and drop plans to construct pipelines to supply gas from Asia to
Europe bypassing Russia. Moscow’s chances of success are slim. (Kommersant)
BUSINESS
Russian businessmen who have lost hope in the authorities’ ability to defeat corruption
have announced the creation of a special public anti-graft center. (Nezavisimaya Gazeta)
Oil companies TNK-BP and CTRP-Rimera are to invest in the development and purchase
of drones to explore oil deposits. (Vedomosti)
SOCIETY
The Russian opposition claims the number of violations in the 2011 State Duma election
campaign has increased several times compared to the 2007 parliamentary elections.
(Kommersant)
CRIME
A Moscow court sanctioned on Wednesday the arrest of Viktor Baturin, the brother-inlaw of former Moscow mayor Yury Luzhkov, on charges of attempted fraud. Baturin said
he would “fight till the end” to prove his innocence. (Kommersant)
Two Belarusians convicted of carrying out a deadly attack on the Belarusian capital’s
subway system, killing 15 people, have been sentenced to death. Independent experts and
human rights activists have strongly criticized the verdict, saying that the two men’s guilt
has not been proven. (Kommersant, Rossiiskaya Gazeta)
HEALTH
While the number of HIV-infected Russians is expected to rise, the United Nations is
halting its anti-HIV programs in Russia, leaving the country’s government to fight the
disease on its own. (Moskovskie Novosti)
The final showdown begins
http://rt.com/politics/press/nezavisimaya/final-campaign-united-putin/en/
Published: 1 December, 2011, 07:42
Edited: 1 December, 2011, 07:44
Ivan Rodin
The final stage of the election campaign: the ruling party narrows down to Medvedev and
Putin.
Tomorrow will be the last day of political campaigning before the December 4 election.
United Russia is placing its bets on the media and the positions of its leaders, Dmitry
Medvedev and Vladimir Putin. Yesterday they handed out awards and cash promises, and
today they are holding a final meeting with their supporters. Experts, however, indicate
that United Russia’s main advantage is its administrative resources.
It seems that United Russia has decided to decrease the current election’s high publicity
level at the final stage. Reports have begun to circulate that United Russia will, allegedly,
shift its main focus from direct contact with voters to campaigning through the media,
because, in recent weeks, communication with voters has failed to yield much success,
while the number of scandals has only increased.
However, according to Nezavisimaya Gazeta’s (NG) sources, in reality the ruling party
never did conduct a particularly active campaign. Since the beginning, emphasis was
placed on combining the administrative resources with an overwhelming advantage in the
media, which has mainly been ensured by United Russia’s leaders, Dmitry Medvedev and
Vladimir Putin.
The final stage in United Russia’s election campaign will also be carried by them.
Yesterday Medvedev visited a youth forum with a campaign-related title: “The future is
ours!” This is one of the active slogans of the United Russia party. And today the
tandem’s supporters and recent interlocutors will gather for a final session. Medvedev
and Putin will hostguests at the Digital October Convention Center. The meeting will also
be attended by participants of the so-called “big government”, including delegates of
student groups, disabled groups, retirees, etc. – all those who have been supported by the
party leaders in the two months of the election campaign. Some of the most active
members of the All-Russia People’s Front, such as motorists, have been asked to attend
the meeting “for Putin.” Yesterday it was impossible to so much as roughly determine the
theme of the event. NG’s sources from the ruling party suggested that it will mark the
main transition from one PR campaign to another – the State Duma campaign to the
presidential. Meanwhile, one of NG’s interlocutors recalled that usually on the eve of
such meetings authorized delegates are requested to pose certain questions to the
officials.
Experts are skeptical of the heightened level of activity on the part of the ruling party’s
tops officials. For example, Rostislav Turovsky, the vice president of the Center of
Political Technologies, points out that United Russia’s election campaign has two
dimensions. The first involves propaganda and the second, mobilization. In the second
case, the administrative resources are applied: “It’s hard to say which is more important,
but for United Russia, the second aspect of the campaign is more valuable.” As for the
final stage of the election campaign, the expert suggests that the rules of the genre call for
increased public activity on the part of the leaders. Aleksey Mukhin, the general director
of the Political Information Center, was more categorical. In his opinion, “in course of
the entire campaign, Medvedev and Putin competed against each other, trying to further
distance themselves from campaigning for United Russia.” The only exception, he says,
were the ruling party’s conferences. Otherwise, they mostly campaigned for themselves.
Mukhin considers this an objective factor. Otherwise, why would Putin, for example,
need to take on the responsibility of rescuing a political bankrupt? United Russia’s
ratings have plummeted. This brand can no longer be restored, and efforts to support it
would only lead to the loss of credibility of those who tried doing so. “An old car could,
of course, be brought to its maximum velocity – after which it would simply collapse,”
says the expert. He noted that the situation in which United Russia finds itself is not only
resulting in its loss of votes to the Socialist Revolutionaries, but to the Communists as
well.
The Communist Party has recently addressed Russian voters. Socially vulnerable groups
have been promised that the country will not experience any shocks, so there is no need
to worry. Staff members of election commissions who fail to understand that the situation
is changing have been threatened with prosecution for fraud by the Communists.
Russians blog to highlight fears of election fraud
http://in.reuters.com/article/2011/11/30/us-russia-vote-blogs-idINTRE7AT1M420111130
12:36am IST
By Alissa de Carbonnel
CHELYABINSK, Russia (Reuters) - When bloggers posted what they said was a tape of
the governor of this industrial region telling local employers to organize "compulsory
voting" for Vladimir Putin's ruling party, it caused a stir across Russia.
But no local newspapers or television stations reported the story in Chelyabinsk, a city of
1.1 million people 1,600 km (1,000 miles) east of Moscow.
The governor's office says he has done nothing wrong but the episode highlights a new
challenge for the leaders of Russian regions where bloggers are increasingly using the
Internet to subvert their grip on traditional media.
Many Russians, long accustomed to allegations of vote rigging and irregularities, shrug
their shoulders at such reports before a parliamentary election on Sunday. Most get their
news from television stations in thrall to the Kremlin.
But a growing number of Russians are using new media to spread what they say is
evidence of dirty campaigning by Putin's United Russia, which is widely known on the
blogosphere as "the party of swindlers and thieves."
"If the authorities used to have a monopoly in the information sphere, they no longer do,"
said Konstantin von Eggert, a commentator for Kommersant FM radio in Moscow.
"This is partly linked to voters' fatigue with always seeing the same faces on television
but also with the appearance of a serious, so far unfettered source of alternative news."
Eggert said the increase in Internet criticism was unlikely to translate into significant
support for any opposition party in Sunday's election, in which United Russia is expected
to secure a reduced majority in the lower house.
But when Putin was booed at a martial arts fight in Moscow, it was online video footage
that ensured the story was told.
Videos of alleged dirty tricks have also in a few cases forced officials into a grudging
response.
"Fast-spreading news of violations are vital because people see in them a confirmation
they are not alone in injustice," said Grigory Melkonyants, the deputy director of Golos,
an independent organization that monitors voting.
"With the videos that get the most hits, people see that they also have a way to put
pressure on the authorities."
REGIONS COMPETE FOR STATE HANDOUTS
Political analysts say the centralization of power under Putin during his eight-year
presidency until 2008 encourages abuses because many regions compete to secure the
highest vote for United Russia -- a show of loyalty they hope will be rewarded by a
bigger share of state handouts.
President Dmitry Medvedev, who is stepping aside so that Putin can return to the
Kremlin in a presidential election next year, dismissed talk of electoral fraud in October.
"I am certain that there will be victory (for United Russia) and that it will be secured by
legal means," he said.
But opinion polls show Russians have grown wary of tactics which hark back to Soviet
times, and United Russia faces accusations of using state resources to win over support in
industrial strongholds such as Chelyabinsk.
The audiotape shows a man who bloggers say is Chelyabinsk Governor Mikhail Yurevich
telling businessmen: "Ordinary people don't care who they vote for. I ask you all to do
what you can to motivate your employees to support the party."
More votes will mean extra cash for the region, the man says.
Viktor Strootz, who posted the recording online at
www.youtube.com/watch?v=sF7Dw8q_X1U&feature=related , told Reuters 20 officials
were present at the meeting but would not say who leaked him the audio files.
The governor's office said Yurevich had met the businessmen to speak about the elections
but called the accusations against him a "fairy tale". A dozen journalists and bloggers
said they believed the voice on the tape was that of the governor.
Chelyabinsk is marked as a big red blot of discontent on an online map of alleged
violations prepared by Golos which says it has already received about 3,000 complaints.
Last month businessman Konstantin Korovin blogged that the top municipal official in
the once closed city, which was built around tank, metallurgical and weapons facilities,
had told employers to pay workers to vote for United Russia.
If the employees refused bribes of up to 2,000 roubles ($64), a lot of money in a region
where salaries average 19,000 roubles a month, companies would be ordered to make
Sunday a working day, Korovin quoted the official as saying.
Korovin, 34, whose blog can be found at Korovin74.livejournal.com, said he was so
disgusted that he blogged about the meeting, despite the risk of repercussions for his
family-run firm, which employs 250 people.
"Such meetings are a regular staple of elections here but this year the rhetoric has
changed," Korovin said. "It has gone from requests and trade-offs, such as building roads
for votes, to commands and threats."
In a rare boost for the opposition, a court found a top city official in the western Urals
guilty of bribing veterans with state funds for votes after a video spread online. But his
punishment, a 2,000-rouble fine, was largely symbolic.
FIFTY MILLION USERS
Russia's online community was initially concentrated in Moscow but the number of users
in the regions is growing, said Annelies van den Belt, the head of SUP media, which
owns the country's biggest blogging platform, LiveJournal.
"Three years ago, 70 percent of traffic of our web site was in Moscow and St Petersburg,"
she said. "Now it's less than 50 percent and our traffic is three times bigger."
Among the new bloggers are journalists in Chelyabinsk who say the traditional media are
tightly controlled by the regional authorities led by United Russia.
The Chelyabinsk Worker newspaper considers itself independent. But Irina Gundareva
says she and five colleagues started blogs in August to publish what editors refused to
print for fear of falling out with the authorities.
"LiveJournal is the only place where you can read the truth about Chelyabinsk," she said.
ComScore, an Internet marketing research company, says 50.8 million Russians -- more
than a third of the population -- are online, and they are the world's most active on social
networks.
"Bloggers aren't just people voicing their ideas online. Today they are themselves a
source of news for media across Russia," said Anton Bakhayev, Chelyabinsk's head of
youth politics.
His decision to launch a state-funded school for bloggers, taught by a member of United
Russia's youth group Young Guard, met fierce criticism online and was dismissed as a
government effort to form its own army of loyal bloggers.
PRESSURE ON VOTERS
In Chelyabinsk's snowy city centre, filled with bright new shops and cafes erected on the
back of demand for the metals the region produces, residents resent what they see as
efforts by United Russia to tell them how to vote.
"I work a utilities firm so whether I want to or not, I have to vote," Andrey Mirankov, 45,
said. "I'm under orders from my boss or I'll be blacklisted at work."
United Russia posters monopolise the city billboards, while opposition parties have
resorted to hanging banners from the balconies of Soviet-era apartment blocks.
Engineering student Vadim Yumakhuzhen, 20, said he was "revolted" by United Russia's
campaign methods. Elina, a 19-year-old medical student, said: "I won't vote for them out
of principal because we are being forced too."
She said students in her dormitory were told they would be given concert tickets if they
photographed their ballot papers to prove they voted for United Russia and that party
activists threatened "consequences" for those who opted out.
Bishkek looks for donors
http://rt.com/politics/press/rossijskaya-gazeta/bishkek-looks-donors/en/
Published: 1 December, 2011, 07:37
Edited: 1 December, 2011, 07:40
Dmitry Evlashkov, Daniyar Karimov
The new head of Kyrgyzstan gets some surprising friends.
Today a new president will be inaugurated in Kyrgyzstan.
Now the former prime minister of Kyrgyzstan, Almazbek Atambayev, has been elected
the country’s new president in the first round of the presidential elections, held in late
October, Rossiyskaya Gazeta (RG) has closely followed the politician’s ascent to the
heights of power. During the presidential campaign, we provided the Kyrgyz leader an
opportunity to tell Russian readers about his political agenda on the pages of RG. The
main emphasis of Atambayev’s agenda was Kyrgyzstan’s closer integration with the
countries of the Customs Union, and Russia in particular.
Meanwhile, joint participation in the integrated project with Russia, Kazakhstan and
Belarus will require Bishkek to start taking some real steps away from re-exportation of
Chinese consumer goods and towards domestic production of goods. To do this,
however, political will alone won’t suffice. The economic situation in the country is
dismal. PM Atambayev is handing the country over to President Atambayev with a
foreign debt of nearly $3 billion and a state budget deficit of nearly a quarter of GDP.
Without immediate cash infusions from the outside, the Kyrgyz economy has no chance
of reaching the level of the member states of the Customs Union. In these conditions, the
only donor capable of keeping Kyrgyzstan stay afloat, is the Customs Union trio. But
instead of launching integration programs, the Kyrgyz leadership is blatantly starting to
bargain with the Customs Union and trying to obtain all imaginable and unimaginable
preferences and privileges.
Among some of Almazbek Atambayev’s high-profile statements was his public assurance
on the withdrawal of the Manas air base, scheduled for 2014.
However, both local and Russian experts are not inclined to agree that the new Kyrgyz
leadership will be able to fulfill that promise. In light of the progressive cooling in
relations between the US and Pakistan, Kyrgyzstan is starting to play an increasingly
important role in the chain of supply for the NATO contingent in Afghanistan.
Washington has already expressed its intention to hold consultations with the new
leadership of Kyrgyzstan about the extension of the Manas air base lease. In November,
interim president Roza Otunbayeva, who is leaving the political scene, made it clear in
New York that we should wait until 2014 to see what happens. And that is against the
background of Bishkek’s continuing assurances on a strategic partnership with Russia.
Incidentally, among the guests invited to attend the presidential inauguration in
Kyrgyzstan, are one of the advocates of the expansion of NATO on post-Soviet territory,
Mikhail Saakashvili, and the leader of a NATO member state, Turkish President
Abdullah Gul. While still serving as prime minister, Atambayev suggested that Turkey
enter Manas in the place of the US, claiming that with Ankara’s help the military facility
could be transformed into a civilian transit center. This raises the question of why does
Kyrgyzstan, a CSTO member and a potential member of the Customs Union, need to
continue flirting with NATO? It seems as though Tien Shan is again trying to play a
“multi-vector” game. In the past, this policy has often led the country to social upheaval
which usually ended with revolutions.
Meanwhile, Atambayev’s inauguration will be modest. Official sources estimate it will
cost the budget around $25,000. Nevertheless, the ceremony promises to be memorable.
It will be the first time a leader of a post-Soviet secular republic will pledge to serve the
people before God. However, for many voters, Atambayev has become a figure of
compromise, and has mainly been associated with future support from Russia.
Lukashenka in Moscow: The Prodigal Son Is Coming Back?
http://belarusdigest.com/story/lukashenka-moscow-prodigal-son-coming-back-6742
Published: 01 December 2011
Last Friday, after months of uncertainty, Alyaksandr Lukashenka decisively moved to
guarantee his political survival for the foreseeable future by signing a series of
agreements with Russia. This was the sequel to Belarus's earlier entry into the Russianled Eurasian Economic Union.
The agreements came as a disappointment to the Western politicians who had speculated
that the isolation of Belarus, coupled with the economic crisis, would eventually bring
down or at least affect the regime. Speaking on Wednesday, Russian ambassador to
Belarus declared that Russian support to Belarusian regime in 2011-2012 would
exceed $7 bn, and assumed that in two-three years living standards in the country would
return to the level of early 2011.
Belarus sold its remaining 50 percent stake of “Beltransgaz” to Russia for $2.5 bn, giving
Russia full ownership over the distribution of Siberian gas pumped to Europe. In
exchange, Belarus received a $10 bn soft loan to build a nuclear power plant in Hrodna
region; a three-year agreement whereby Belarus will get Russian natural gas for less than
half the selling price to Europe, saving Belarus an estimated $3 bn a year; and finally,
confirmation of the next tranche of the bailout loan from the Eurasian Economic
Community.
Belarus in Russian Hands
The Belarusian regime has sold Beltransgaz, entered the Eurasian Economic Union, and
eagerly taken Russian loans. According to Dzianis Melyantsou of the Belarusian Institute
of Strategic Studies, Lukashenka essentially reverted to the subsidies mechanism that
earlier defined Belarus-Russia relations - even at the price of national independence. As
Melyantsou notes, this is still less of a price to pay than accepting the conditionality
imposed by Western nations in return for uncertain promises of financial support.
With Russian support, Lukashenka has more freedom to adopt authoritarian measures. He
can use fear in society to avert liberalization and maintain his grip on power.
The Belarusian opposition and civil society will have less room to maneuver and will
face a new wave of persecutions.
The Russian politicians toyed with the idea of supporting an alternative to Lukashenka
recently, but the Kremlin seems to have realized that the Belarusian ruler satisfies its
needs by maintaining the status quo, ruling efficiently, and professing a stronger loyalty
toward Russia than many other post-Soviet nations. Ahead of the presidential elections in
Russia next year, Vladimir Putin touts the integration theme - the Kremlin is willing to
help Lukashenka to guarantee his support for the Eurasian Economic Union.
Deutsche Welle is Welcoming Moscow's Influence in Belarus
Now more than ever, the European Union's stance on the 'Belarus issue' matters, because
national pro-democracy movement has been weakened and is in need of extensive
support. Unfortunately, many in the European Union are apparently comfortable with
Belarus staying in the Russian sphere of influence. Particularly disturbing is a recent
commentary given by Deutsche Welle (DW) – a public broadcaster supervised by the
German government – on the recent agreements between Belarus and Russia.
Andrei Gurkov of DW, emphasizedpolitical component of new agreements, defining two
main tasks of new treaties as “to take under complete [Russian] control the gas
transportation system of this country and to stimulate Eurasian integration processes in
this country. In other words, to more strongly tight Minsk to itself”. And to leave no
ambiguities: “In principle, both aims correspond with the interests of the Europeans*.”
Even worse, DW has been most concerned with whether the bailouts to Belarus might
hurt Moscow in the future. Underlying this is a clear parallel drawn between Belarus and
Greece: the commentator wants Russia to avoid the problems the EU is now facing. DW
analyzes how Russia can gain from issuing loans and seizing Belarusian assets. Gurkov
states: “We want to believe that Moscow understands it well and is operating out of sober
calculation. A borrower sinking in his own debts will sooner or later pay with shares of
the most attractive [Belarusian] enterprises. However, it is very important not to mistake
the true value of these assets.”
Such views have been commonplace in Europe. Many believe that already in the late
1990s, the OSCE helped Russia to neutralize Belarusian opposition, giving Lukashenka
time to consolidate his rule. Some German diplomats suggested then that Russia could
help democratize Belarus.
It appears that today Poland is the only EU country that seriously takes the idea of an
independent and free Belarus. The rest of the EU – including the largest members – are
not especially interested, and if they are, they often favor the Russian position. The
failure of the Eastern Partnership demonstrated just how little the smaller eastern
neighbors matter to most EU members.
EU Can but Does Not Act
In the short term, Europe can do next to nothing about the Belarusian regime. Its best bet
is to concentrate on longer-term leverage. Sanctions and isolation, however, are not
always conducive to this process and have failed to bring about democratic change in the
past in too many cases around the world. Surprisingly, the West keeps talking about
punishing the dictatorship even though it is obvious that Belarus has an open border with
Russia and no change will come unless Belarus' ties with an increasingly authoritarian
Russia are undermined.
Weakening these ties is not impossible. Belarusians view Europe as the most attractive
destination for travel and labor migration. The EU would loose little by removing visa
and travel restrictions for Belarus's 9.5 million citizens, who have never posed a serious
threat to the EU in terms of security or illegal migration. At present, well-educated
Belarusians can only work without restrictions in Russia and Poland. Western countries
could also launch more exchange and cooperation projects with the public and private
sector in Belarus to provide them with alternatives outside Russia.
The EU should seriously consider engaging Belarusian government officials and regime
insiders to provide the nomenclature with an exit option. Even many officials known for
their hardline rhetoric are already accepting Western values in practice by sending their
children to Western Europe and the United States. If given a choice, they could defect.
But to make them understand that choice the West has to interact with these people and
convince them that there are other ways of doing things besides the Russian-style
authoritarianism. After all, it is not just some abstract democratic ideal but also the best
national interest of European countries to have on their eastern borders a free and stable
nation and not a dictatorial outpost of the “Eurasian integration”.
SB
Second Round Blues
http://russiaprofile.org/comments/50177.html
Instability in South Ossetia Could Reflect Badly on the Kremlin
Comment by Sergey Markedonov Special to Russia Profile 11/30/2011
The second round of presidential elections in South Ossetia has ended in scandal. After
the republic’s Central Election Commission announced the results of the vote (56.74
percent for Alla Dzhioyeva and 40 percent for Anatoly Bibilov), the defeated candidate, a
representative of the ruling party, filed a complaint with the Supreme Court. The
Supreme Court (the highest court in South Ossetia) ruled that Bibilov’s arguments had
legal grounds and cancelled the results of the election. Soon after this ruling, the
Parliament of the partially-recognized republic set a date for repeat elections – March 25,
2012.
The situation has been intensified by the fact that Dzhioyeva, who is accused of breaking
election law, has been banned from taking part in next year’s vote. This may well cause a
serious internal political crisis in the republic. By the evening of November 29,
information was already coming out of the South Ossetian capital Tskhinvali that a State
Council of South Ossetia was being formed from those opposed to the current authorities.
The council was conceived as an institution set up to safeguard Dzhiyoeva’s victory,
which the opposition believes was illegally stolen.
Thus two rounds of elections have failed to answer the question of who will be the new
president of South Ossetia. It is not entirely clear what authority current President Eduard
Kokoity holds after the latest developments (his presidency was due to end in December
of this year), or whether there will be a transition to a temporary government led by the
prime minister. It’s also unclear how the results of the November elections will be
interpreted in the future. The results have been cancelled, but will the fact that they took
place also be cancelled? And if the elections themselves are recognized (they were
recognized by observers from Russia and other de-facto institutions, which is still not a
valid argument to the international community, but for South Ossetia, it is serious proof),
then the current President Eduard Kokoity, can theoretically run as a candidate. As we
can see, the November 29 decision has raised a lot of questions, the answers to which are
unlikely to appear in the next few days. However, there are some preliminary conclusions
that can already be drawn from the November presidential elections in South Ossetia.
First of all, the election campaign showed that the partially-recognized republic has an
agenda of its own, one which is closely linked to Russia and its financial support, but that
boils down to more than just financial transactions between Moscow and Tskhinvali.
Today many journalists and political analysts are openly ironic about the recognition of
South Ossetia as a state. And many of their arguments are justified. Unlike Abkhazia or
Nagorno-Karabakh, South Ossetia does not have a powerful diaspora, an advantageous
location, potentially attractive infrastructure, or diverse external contacts. Its population
and territory are smaller than those of North Ossetia, which is a federal subject of Russia,
and there are practically no opportunities for independent economic development there.
However, the fact that South Ossetia was recognized became cause for serious social
reflection about the advantages and disadvantages of this process. The republic did
indeed rid itself of the threat of being absorbed by Georgia. But does that automatically
grant an indulgence to its authorities, who are ready to turn national self-determination
into a lucrative business project for a small group of people? This question is, after all,
pivotal to a political battle waged in the republic between 2008 and 2011. It has divided
previous comrades in arms, veterans of the Georgia-Ossetia conflict. Today these
veterans are in both Dzhiyoeva’s and Bibilov’s teams, which means that concerns about
Georgians who could try to influence events in South Ossetia have moved lower down
the republic’s agenda. They did surface during the election campaign, but did not play an
important role. The Supreme Court did not charge Dzhiyoeva with betraying her country,
but with buying votes and using inappropriate propaganda.
And if the Georgian issue played a secondary role in this campaign, the Russian issue
played a primary one. I want to say from the start that there was no competition between
opposing geopolitical projects in the elections. But candidates do see Russia’s role
differently. And not just the candidates, but also Eduard Kokoity, whose main aim is to
protect his own interests. And in this image contest, Moscow failed to come out on top
every time. Dialogue about Russian policy in the post-Soviet space, even in the West,
often stresses the dominance of “scenario thinking” in the Kremlin. Meanwhile, the
Russian authorities’ actions in various parts of the former Soviet Union look less like a
well-thought out plan than an improvisation. This is, unfortunately, what happened in
South Ossetia in 2011. Up until the first round of elections, Moscow did not play an
active role – its main goal was the civilized transfer of power in the partially-recognized
republic. When the first round showed growing dissatisfaction with the republic’s
administration, the Kremlin could come up with nothing better than supporting one of the
candidates. The candidate who conformed to its preferred standards of “guaranteed
stability” and preventing “revolutionary shocks” was Anatoly Bibilov.
From this point onward, Moscow made its position vividly clear, cutting itself off various
paths and leaving no room to maneuver. Russia had a choice – to become a player in
South Ossetian internal politics or to retain the role of a mediator. A week before the
second round, the Kremlin preferred involved support to arbitration. This was
reminiscent of the situation in 2004 in Abkhazia, when Moscow supported Vladislav
Ardzinba’s successor Raul Khadzimba. However, unlike in Abkazia, the results of the
vote in South Ossetia were fully annulled. The protest energy did not find an outlet,
although an opposition candidate coming to power would have allowed to ease the
situation, and to relieve dissatisfaction with Kokoity, which had already started to spread
to Moscow bureaucrats and businessmen. Moscow had a good example in front of it:
Sergei Bagapsh and Alexander Ankvab, who progressed from being critics of the first
Abkhaz leader Vladislav Ardzinba (their opposition slogans did not differ much in
essence from Dzhioyeva’s) to heading the de-facto state and becoming Russian allies in
the Caucasus. If Russia had chosen to be a mediator, the protest vote may have been
smaller in the second round, and Dziyoeva’s victory would not have come out of the blue
for South Ossetian bureaucrats.
If Moscow had a readymade scenario in mind, it could foresee the possibility of a soft
rotation in the case of the opposition’s success. Unfortunately, the improvised style
presents Moscow with many problems. Now, many of the South Ossetian authorities’
ambivalent decisions will be associated not only with Kokoity’s team, but also with the
Kremlin. So much direct opposition, 56 percent of South Ossetian voters, is unlikely to
correspond to Russian national interests in the Greater Caucasus. But as yet it is in fact
giving the Georgian propaganda machine additional arguments in support of its
“occupation,” Russian dominance and the failure of the de-facto republic claims. Of
course the reality is more complicated. But what propagandist ever paid attention to
nuances?
In short, a line has yet to be drawn under this election story. And if new elections go
ahead in March, and in the hypothetical scenario of a color revolution, that is – public
protests against the cancelling of the results, Russia will be objectively needed as a
mediator. So there is still a chance to fix the mistakes.
Sergei Markedonov, Ph.D., is a political analyst and visiting fellow at the Center for
Strategic and International Studies (CSIS), Russia and Eurasia Program, in Washington,
DC.
Russia, U.S. Under Microscope at Chemical Weapons Pact Meeting
http://www.globalsecuritynewswire.org/gsn/nw_20111130_6418.php
Wednesday, Nov. 30, 2011
By Chris Schneidmiller
Global Security Newswire
WASHINGTON -- Member nations of the Chemical Weapons Convention this week are
considering a plan for addressing the Russian and U.S. inability to eliminate stockpiles of
lethal materials by the 2012 deadline set under the international accord (see GSN, Nov.
29).
A 41-state council to the Organization for the Prohibition of Chemical Weapons, the
convention's verification body, earlier this month approved recommendations for how to
deal with the delays, but details have not been released.
Preliminary discussion of the draft declaration occurred behind closed doors on
Wednesday at the annual meeting of the 188 states parties to the pact. No action will
occur before Thursday, OPCW spokesman Michael Luhan said on Wednesday.
The document, the product of two years of negotiations, "has many shortcomings, but it
represents a precarious balance of interests and concerns," according to Robert Mikulak,
U.S. permanent representative to the Hague, Netherlands-based organization. "We hope
that it can be approved by consensus or, if consensus is not present, by an overwhelming
majority," he added on Tuesday in his opening statement to the conference.
Russia and the United States both joined the convention in 1997, pledging that within 10
years they would eliminate their world's-largest stockpiles of chemical warfare materials.
These include mustard blister agent and VX and sarin nerve agents. The two former Cold
War foes received five-year extensions to April 29, 2012, as the first deadline
approached.
Washington has spent nearly $24 billion on disposal operations and has destroyed more
than 89 percent of its Category 1 chemical weapons -- those filled with materials
considered to pose a high threat to the convention, Mikulak told delegates.
"We have made, and will continue to make, every effort to ensure that our chemical
weapons are destroyed consistent with the CWC: safely, without harm to workers, people
living near the facility, or the environment; verifiably, under the eyes of OPCW
inspectors; and as rapidly as practicable," he said.
The U.S. Army's Chemical Materials Agency is expected to finish demilitarization work
by next April. A separate service branch is assigned to eliminate the last 10 percent of the
United States' declared 29,918 tons of chemical warfare materials and is still building
destruction plants in two states.
The U.S. government has openly acknowledged that disposal operations will continue at
least six years past next year's mandatory end date. The effort has been slowed by
fluctuating funding over the years and has faced "complex safety and environmental
concerns" from local and state governments and residents near the chemical storage
depots, Mikulak said. Those issues forced the Defense Department to develop new
chemical neutralization facilities for Pueblo, Colo., and Blue Grass, Ky., rather than using
incineration technology deployed at most other weapons storage sites.
Russia, meanwhile, expects it will need until 2015 to complete its disposal operations.
The Kremlin said last month that it had finished off roughly 65 percent of its 40,000metric ton chemical stockpile (see GSN, Oct. 24).
Member states of the Chemical Weapons Convention are unlikely to deliver penalties
against the two powers, such as barring them from voting on OPCW matters, issue
experts have said.
"The gist of the emerging approach is to enable the two possessor states to complete their
destruction programs while they, on their part, agree to implement an enhanced package
of transparency- and confidence-building measures," OPCW chief Ahmet Üzümcü said
in an October speech to the U.N. First Committee in New York.
Üzümcü on Monday called the Executive Council recommendation a "constructive and
forward-looking decision," and echoed Mikulak's hopes that the declaration would be
approved by consensus.
The Conference of States Parties to the convention makes almost all decisions by
consensus. If that is not possible in this matter, a decision would have to be made whether
to put the declaration to a vote, where it would require a two-thirds majority to be
approved, Luhan told Global Security Newswire.
Iran, a longtime antagonist to the United States, suggested it would not support the plan.
"It is imperative that we have a comprehensive approach toward the complete destruction
of all chemical weapons," Iranian envoy Kazem Gharib Abadi told the conference on
Monday. "We cannot simply close our eyes to the complicated and sensitive dimensions
of this subject matter and attempt as announced by America to explore a political solution
to this issue. Unfortunately, the United States of America expresses its view as if nothing
has happened."
Abadi used much of his speaking time to lash Washington while making no specific
reference to Moscow's similar noncompliance with the convention's rules.
"It is unfortunate that the United States has explicitly stated that it cannot meet the
deadline, which is a clear cut of noncompliance" with the pact, the delegate said in his
prepared statement. "As per the convention, the noncompliance should be brought to the
attention of the international community, including the United Nations organization," he
continued.
Mikulak added language to his prepared statement to address the Iranian presentation.
"Iran has once again alleged that the United States will deliberately not comply with the
April 29, 2012, destruction deadline, and in fact plans to retain a chemical weapons
stockpile," the U.S. diplomat said. "Nothing could be further from the truth."
Mikulak called Abadi's assertion "patently false" and characterized any claim that the
United States intends to hold onto a secret stash of chemical weapons as "poppycock."
Tehran's envoy offered multiple references to the use of chemical weapons against Iran
during its eight-year war with Iraq. The United States played a role in arming the regime
of Saddam Hussein with those materials, he claimed. Mikulak replied that the allegation
was "absurd and baseless" and "reflects more on Iran than on the United States. "
The conference is scheduled to continue through Friday. Among the other issues
expected to be discussed are the OPCW budget and Libya's chemical weapons stockpile,
some of which was never declared by the Qadhafi regime before it was toppled this year
(see GSN, Nov. 11).
Moscow issues Trans-Caspian Project warning
http://www.atimes.com/atimes/Central_Asia/ML02Ag01.html
By Vladimir Socor
The Soviet art of socialist realism used to be defined as "socialist in substance, national in
form". Threats to prevent the construction of a trans-Caspian gas pipeline by military
force are also a form of Kremlin art: bluff in their substance, even if brutal in their form.
Pursuant to President Dmitry Medvedev and the Russian Security Council's October 14
decision to draft proposals on how to resist the European Union's Third Energy Package
as well as the EU's Nabucco and trans-Caspian gas pipeline projects, Moscow is
undertaking diplomatic and political countermeasures to the EU-planned gas pipeline
from Turkmenistan to Europe.
Statements by Medvedev and the Russian foreign ministry claiming that trans-Caspian
pipelines would be unlawful without Russian consent have failed to make that legal case
and are seen as purely political. Officially inspired polemics against that project in the
Moscow media have also left Ashgabat and Brussels unimpressed. In frustration,
Moscow has started hinting at the use of force.
Russian Gas Society president and vice-chairman of the Duma, Valery Yazev (dubbed
"Gazprom's chief lobbyist"), has publicly reminded Turkmenistan that it lacks military
protection in the Caspian Sea, and it risks a "Libyan scenario" by joining the EU's transCaspian project. He dismissed the value of United Nations General Assembly support for
Turkmenistan's neutrality and multivector policy.
Instead of "flirting" with the West, Yazev suggested, Turkmenistan should seek Russia's
and China's protection through the Collective Security Treaty Organization, Eurasian
Economic Union, and Shanghai Cooperation Organization.
Outpaced by China in the contest over Turkmen gas resources, Moscow is now
concentrating on blocking Western access to those resources. Russia's semi-official
spokesmen use scare tactics by threatening a Caspian repeat of the 2008 Russia-Georgia
war.
Mikhail Aleksandrov, department chief at the government-sponsored Institute on the CIS
Countries, warns that construction of a trans-Caspian pipeline would imply de facto
recognition of division of the Caspian Sea into sectors.
"This is altogether unacceptable, and Russia would have to act in the manner of its
operation to compel Georgia to peace. This time, Ashgabat and Baku would have to be
forced to comply with international law. It may even be through air strikes, if they do not
understand any other way."
According to him (echoing Yazev), the Libya operation by the North Atlantic Treaty
Organization (NATO) gives Russia a parallel right to use force, in this case in the
Caspian basin. Aleksandrov claims that he issued these warnings personally to the EU's
Special Representative for Central Asia, the French diplomat Pierre Morel, recently in
Moscow.
Konstantin Simonov, head of the government-connected Foundation for Russia's Energy
Security, has similarly warned Turkmenistan, at first via an Azerbaijani outlet: "Ashgabat
understands that the situation [with the trans-Caspian project] would be the same as it
was in Georgia in August 2008. Back then they promised to protect Georgia, some kind
of guarantees. And how did that end... Does Turkmenistan want the same to happen in
the Caspian?"
Simonov went on to warn that "using force is the only possible response" if diplomacy
fails to stop the trans-Caspian project. "Ashgabat has no guarantee of protection from a
Russian military response. And only the experience of the August war in Georgia is
restraining Ashgabat now."
Medvedev himself has set the stage for using the example of Georgia to intimidate other
recalcitrant countries. The outgoing Russian president has just acknowledged the political
calculation behind the decision to invade Georgia: namely, to block Georgia's and
Ukraine's path toward NATO. With this, Moscow stakes out a claim to use force in
pursuit of specific political objectives against neighboring countries. Practically on the
same day when Medvedev spoke, the Kremlin orchestrated these threats against
Turkmenistan (and against EU interests) directly extrapolating from the Georgia
example.
Russia is only the third-largest importer of Turkmen gas at present (it ranked first until
2008-2009). Moscow makes no objections to Turkmen gas exports eastward to China or
southward to Iran; and it looks favorably at the Turkmenistan-Afghanistan-Pakistan-India
pipeline project, which Gazprom even proposes to join as a co-investor. Russia is content
to see Turkmen gas heading in any direction except westward to Europe. There, Russia
wants to cement its dominant positions.
Turkmenistan and the European Commission envisage deliveries of 40 billion cubic
meters of Turkmen gas annually, by the second part of this decade, through the transCaspian project and the Southern Corridor to Europe. The Kremlin, apparently, hopes to
intimidate Turkmenistan directly, Kazakhstan and Azerbaijan indirectly, scare off the
EU, and discourage Western investment in trans-Caspian pipelines.
Using semi-official channels to threaten the use of force is a tactic with limited
deniability. It reflects both a sense of impunity and a calculated bluff by Russia's highlevel authorities. It does not deserve a direct response at the public level; this would
unnecessarily dignify the bluff.
The proper Western response at this stage is to make clear in Moscow that the transCaspian project is a shared Western interest; and to demonstrate this commitment to the
Caspian partners.
Vladimir Socor is a Senior Fellow of the Washington-based Jamestown Foundation and
its flagship publication, Eurasia Daily Monitor. An internationally recognized expert on
the former Soviet-ruled countries in Eastern Europe, the South Caucasus, and Central
Asia, Mr Socor is a Romanian-born citizen of the United States based in Munich,
Germany.
(This article first appeared in The Jamestown Foundation. Used with permission.)
(Copyright 2011 The Jamestown Foundation.
National Economic Trends
DECEMBER 1, 2011, 12:00 A.M. ET
Russian Factory Output Picks Up Steam In Nov, PMI Shows
http://online.wsj.com/article/BT-CO-20111130-720502.html
MOSCOW (Dow Jones)--The pace of growth in Russia's manufacturing sector picked up
in November, data from the HSBC Purchasing Managers Index Survey showed
Thursday, with indicators suggesting continued improvement despite unstable global
markets and the threat of a European recession.
New orders and employment both increased at their strongest rates since March, raising
Russia's PMI to 52.6 from 50.4 in October, the data showed.
The improvement in the index was broad based, showing up in all sectors, Alexander
Morozov, chief economist at HSBC in Moscow, said in a note.
"Importantly, export demand has rebounded strongly, driving the overall rise in new
orders. Historically, it has been a good lead indicator for the future direction and intensity
of business activity in manufacturing," Morozov said.
Russia's central bank left rates unchanged last month, with some analysts saying the
regulator was growing apprehensive amid a looming recession in Europe.
Overall, the economy has presented a mixed picture in the last few months, as domestic
demand continues to be robust amid weaker-than-expected industrial production and
heavy capital outflows.
The PMI index is derived from a survey of 300 purchasing executives in Russian
manufacturing, with readings above 50 signalling an increase from the previous month
and vice versa.
-By Ira Iosebashvili, Dow Jones Newswires; +7 495 232-9192,
[email protected]
Grow-vember: Russian manufacture on the rise
http://rt.com/business/news/russia-manufacturing-november-improvement-619/
Published: 1 December, 2011, 10:12
Russian manufacturing produced its strongest results in eight months in November, as
new orders and employment drove production up.
A monthly calculated indicator of Russian manufacturing – the HSBC Manufacturing
Purchasing Manager Index (PMI) – reached its highest level since March 2011 of 52.6
points, which is above its long-run survey average of 52.1. This marks a major
turnaround from almost a flat dynamics during the entire 3Q 2011.
PMI Manufacturing readings below 50 mean contraction, with readings above pointing to
expansion, for the survey which covers factors such as new orders, output, employment
and suppliers’ delivery times.
A faster rise in new business was the main driver of the recovery, with the new orders
from abroad reaching their second-highest level since March 2008. “Historically, it has
been a good lead indicator for the future direction and intensity of business activity in
manufacturing,” explained Aleksandr Morozov, Chief Economist (Russia and CIS) at
HSBC.
“The resumption of new hiring is also encouraging,” added Morozov, as it rose in
November for the first time since July 2011.
In November Russian manufacturers seem to have broken the usual correlation with
major global trends, as eurozone and China performed weak flash PMI reports. “It might
be upward biased due to the inclusion of the 2008 data distorted by the economic crisis in
the seasonality calculation,” assumed Morozov, remaining, however, generally
optimistic.
“In any case, risks of stagnation have diminished visibly in November. This is good news,
isn’t it?” he said.
December 01, 2011 13:17
Russian consolidated budget surplus 2.425 trln rubles for Jan-Sept – Rosstat
http://www.interfax.com/newsinf.asp?id=291491
MOSCOW. Dec 1 (Interfax) - Russia posted a consolidated budget surplus for JanuarySeptember of 2.425 trillion rubles, well up from 109.7 billion rubles for the same period
of last year, the Federal State Statistics Service (Rosstat) reported on Thursday.
Consolidated budget revenues, including extra-budgetary state funds, amounted to 15.171
trillion rubles for the nine months (11.419 trillion rubles for the same period last year).
Spending was 12.745 trillion rubles (11.310 trillion rubles).
The consolidated budget's main tax receipts for the period were: income from foreign
economic activity - 3.225 trillion rubles (21.3% of all revenues), mandatory social
insurance charges - 2.564 trillion rubles (16.9%), profit tax - 1.773 trillion rubles
(11.7%), taxes, fees and regular payments for the use of natural resources - 1.511 trillion
rubles (10%), personal income tax - 1.379 trillion rubles (9.1%), VAT on goods sold in
Russia - 1.341 trillion rubles, and VAT on goods imported into Russia - 1.057 trillion
rubles. Property taxes accounted for 503 billion rubles, excises on gods produced in
Russia - 449.3 billion rubles, and excises on goods brought into Russia - 31.2 billion
rubles.
Of consolidated budget spending for the nine months, expenditures on social and cultural
matters amounted to 7.571 trillion rubles, on the national economy - 11.520 trillion
rubles, on security and law and order - 944.8 billion rubles, on national defense - 908.4
billion rubles, on government matters - 870 billion rubles, on housing and communal
services - 651 billion rubles, and on servicing state and municipal debt - 260.3 billion
rubles.
The federal budget showed a 1.131-trillion-ruble surplus in January-September (deficit of
692.6 billion rubles for the same nine months last year). Revenues were 8.213 trillion
rubles (6.009 trillion rubles) and spending 7.082 trillion rubles (6.701 trillion rubles).
Cf
(Our editorial staff can be reached at [email protected])
TABLE-Russian gold/fx reserves fall to $510.2 bln
http://af.reuters.com/article/commoditiesNews/idAFR4E7LH02P20111201
Thu Dec 1, 2011 8:27am GMT
Russia's gold and foreign exchange reserves fell to $510.2
billion in the week to Nov. 25 from $515.1 billion a week
earlier, central bank data showed on Thursday.
The central bank provided the following figures (in billion
dollars):
Latest week
510.2
Previous week
515.1
End-2010
479.4
NOTE - The reserves include monetary gold, special drawing
rights, reserve position at the IMF and foreign exchange.
For full reserves history click on www.cbr.ru
(Compiled by Lidia Kelly)
Business, Energy or Environmental regulations or discussions
Sberbank Surges as Futures Gain on Fed Move: Russia Overnight
http://www.bloomberg.com/news/2011-12-01/sberbank-surges-as-futures-gain-on-fedmove-russia-overnight.html
Q
By Leon Lazaroff and Halia Pavliva - Dec 1, 2011 1:24 AM GMT+0100
OAO Sberbank posted a record one-day gain in New York and Russian stock futures
climbed as the lender reported better-than-estimated earnings and central banks took
coordinated steps to ease global funding conditions.
Futures expiring in December on the dollar-denominated RTS index rose 0.8 percent to
155,720 by 2:50 p.m. in New York yesterday as the Bloomberg Russia-US 14 Index of
Russian companies traded in the U.S. surged 5.4 percent to 100.57, the biggest one-day
jump in more than a month. Sberbank climbed after reporting a 74 percent gain in thirdquarter profit and raising its earnings forecast for 2011. OAO Gazprom (OGZPY), the
world’s biggest natural gas exporter, rose as oil increased and Credit Suisse Group AG
upgraded the stock.
The U.S. Federal Reserve and five other central banks including the European Central
Bank agreed to reduce the premium banks pay to borrow dollars overnight yesterday in
an effort to prevent the euro zone’s credit crisis from threatening global growth and
demand for commodities. China also cut the amount banks have to keep in reserve to ease
cash supply and insulate the world’s second-largest economy from a worldwide
slowdown. Crude rose to its highest level in two weeks.
“Investor expectations have turned a little bit positive, which is a real improvement,” Ilya
Kravets, a research analyst at brokerage ED Capital in New York, said in a phone
interview. “This news from the central banks was received very positively in the U.S.,
and if oil holds at these levels, Russian exporters are going to do really well because they
don’t need much higher prices, they’re fine here.”
Volatility Index
The RTS Volatility Index, which measures expected swings in the index futures, dropped
for third day in four, falling 1.5 percent to 45.95 points, the lowest level in three weeks.
The index is little changed for November.
Crude for January delivery rose 0.6 percent to settle at $100.36 a barrel on the New York
Mercantile Exchange, the highest settlement price since Nov. 16. Urals crude, Russia’s
chief export blend, was little changed at $110.91 after gaining every day this week. Oil
and natural gas contribute about 17 percent of Russia’s gross domestic product.
Sberbank’s American depositary receipts jumped the most since first listing in New York
on June 28 to $11.85, the highest price since Sept. 1. The ADRs rose 10 percent for
November, the third-best performance on the Bloomberg Russia-US 14 index, which
advanced 1.2 percent in the month.
Russia’s biggest lender said yesterday that profit in the three months to Sept. 31 surged
74 percent to 79.8 billion rubles ($2.6 billion), beating the average estimate of 75 billion
rubles of nine analysts surveyed by Bloomberg. The Moscow-based company also raised
its 2011 net income forecast for to as much as 310 billion rubles.
Better Position
Shares gained 6 percent on Moscow’s Micex (INDEXCF) index to 87.55 rubles, or the
equivalent of $2.85, the highest level since Oct. 28. One ADR represents four ordinary
shares.
Relative to banks in Europe, Sberbank is in a much better financial position, Leonid
Slipchenko, a banking analyst at UralSib Financial Corp., said by phone from Moscow.
ADRs of OAO Mechel (MTLR), Russia’s largest coal producer for steelmakers,
advanced 13 percent, the most since May 10, to $10.89, as Fed-led moves boosted the
outlook for metals and the European economy. Europe accounted for 19 percent of
Mechel’s 2010 sales, while Asia represented 13 percent. The ADRs slid 17 percent in
November.
Mechel shares in Moscow advanced 10 percent to 328.10 rubles, or the equivalent of
$10.69.
Gazprom Upgraded
The Standard & Poor’s GSCI index of 24 raw materials rose 0.7 percent to 658.02,
bringing its November gain to 1.6 percent, as copper futures for March delivery jumped
5.5 percent to close at $3.5755 a pound on the Comex in New York.
Gazprom rose to the highest level in two weeks in New York, climbing 5.3 percent to
$11.50, as the company’s shares were raised to “neutral” from “underperform” at Credit
Suisse on prospects that demand for natural gas in Europe, their largest market, will
remain strong. The ADRs fell 1 percent for November.
Credit Suisse raised its target price for Gazprom shares listed in Moscow to $5.70. The
company’s Micex stock added 2.8 percent to 175.39 rubles yesterday. One ADR equals
two ordinary shares.
Polyus Gold International Ltd., the country’s biggest gold producer, was the only decliner
on the Bloomberg Russia-US 14 index yesterday, losing 4.3 percent to $2.92 and
extending its monthly decline to 11 percent. Polyus shares in Moscow fell 0.8 percent to
1,429.60 rubles, or the equivalent of $46.55.
The RTS index in Moscow gained 5.1 percent yesterday, the most since May 26, rising to
1,551.05 and cutting its decline in the month to 0.8 percent. The 30-stock Micex index
gained 3.1 percent to 1,499.62, and was little changed in the month.
The Market Vectors Russia ETF (RSX), a U.S.-traded fund that holds Russian shares,
added 6.4 percent to 31.21, gaining 2.5 percent in November, while the Bank of New
York Mellon Russia ADR Index rose 6.2 percent to 849.66, its highest level since Sept. 1.
The ADR index is up 14 percent this month.
To contact the reporters on this story: Leon Lazaroff in New York at
[email protected], or Halia Pavliva in New York at [email protected]
To contact the editor responsible for this story: David Papadopoulos at
[email protected]
Russia's OGK-1 9-month net profit rises
http://af.reuters.com/article/commoditiesNews/idAFL5E7N11HQ20111201
Thu Dec 1, 2011 9:17am GMT
MOSCOW Dec 1 (Reuters) - Russian power company OGK-1 said on Thursday its net
profit in the first nine months of 2011 rose to 41.4 billion roubles ($1.35 billion )from
35.2 billion roubles in the same period of 2010.
OGK-1, partly owned by RusHydro and grid firm FSK , said its earnings before interest,
taxes, depreciation and amortisation (EBITDA) increased by 36 percent to stand at 7.1
billion roubles, from 5.2 billion roubles seen in the first three quarters last year.
($1 = 30.7143 Russian roubles) (Writing by Andrey Ostroukh; Editing by Helen MassyBeresford)
Polyus May Sell Treasury Stock, Join FTSE 100, Kommersant Says
http://www.bloomberg.com/news/2011-12-01/polyus-may-sell-treasury-stock-join-ftse100-kommersant-says.html
By Yuliya Fedorinova - Dec 1, 2011 7:13 AM GMT+0100
Polyus Gold International Ltd. may sell treasury stock to increase its free float and
qualify for a London primary listing, Kommersant reported, citing Dmitri Razumov, chief
executive officer of Onexim Holding, which controls about 36 percent of the Russian
gold miner.
A primary listing may open the way for Polyus to be included in the FTSE 100 Index, the
Moscow-based newspaper said today. Polyus may sell the shares as soon as it gets
approval from the government to change its domicile from Jersey to London.
Polyus Gold International’s unit Jenington holds about 8 percent of the parent company.
To contact the reporter on this story: Yuliya Fedorinova in Moscow at
[email protected]
To contact the editor responsible for this story: John Viljoen at [email protected]
Polyus ready for London listing in current market conditions-report
http://af.reuters.com/article/commoditiesNews/idAFL5E7N102O20111201
Thu Dec 1, 2011 6:24am GMT
MOSCOW Dec 1 (Reuters) - Russian gold miner Polyus Gold is ready for a premium
listing on the London Stock Exchange in current market conditions, Dmitry Razumov,
chief executive at Onexim group, the owner of a blocking stake in Polyus, told
Kommersant daily.
"We are heading towards the premium listing and will definitely get it," Razumov told
the daily in an interview, published four days after an investment committee chaired by
Prime Minister Vladimir Putin said it would not consider approval for the Polyus move
until 2012.
Razumov said the company, part controlled by tycoon Mikhail Prokhorov, will not
proceed with listing only if there is "a total collapse (of the global market)," according to
the daily.
But if market conditions are similar to present, Polyus will hold the listing and its shares
will be included in the FTSE-100 index, which is essential for "an adequate valuation" in
case of a possible merger with other companies, he told the newspaper.
Razumov did not give an immediate comment on the report.
Polyus faced hurdles with London listing a few months after Prokhorov had suddenly left
Russian politics following an acrimonious clash with the Kremlin ahead of parliamentary
elections in December and the presidential vote in March.
Thursday, December 01, 2011
DJ Trans-Siberian Gold Gets Approval Of Rodnikova Reserves Report
http://www.menafn.com/qn_news_story.asp?storyid={fdaf2e04-d821-46ae-a873230e967b6fd2}
LONDON, Dec 01, 2011 (Dow Jones Commodities News via Comtex) -- Trans-Siberian
Gold PLC (TSG.LN), a Russian gold mining company, said Thursday that the Russian
State Commission for Reserves has approved the expert opinion on the report on reserves
and pre-feasibility study of the Rodnikova deposit, with a recommendation for
underground mining. MAIN FACTS: -Commission has recorded Rodnikova's mineral
resources as 5.8 million tons of ore in the C1+C2 categories, at an average grade of 5.3
g/t gold and 44.6 g/t silver, at 2 g/t gold cut-off, with C1+C2 category reserves of
30,887.6 kg gold and 258.3 tons silver. -First $1.5 million repayment of the $43 million
finance facilities provided by a Russian bank for the development of the Asacha project
was effected on Nov. 28, three weeks before the due date. -Shares at 0815 GMT up 1
pence, or 0.7%, at 68.5 pence valuing the company at GBP70.86 million. -By Ian Walker,
Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones
Newswires 12-01-11 0319ET Copyright (c) 2011 Dow Jones & Company, Inc.
Rusal taps $582m loan
http://www.rbcnews.com/free/20111201112841.shtml
RBC, 01.12.2011, Moscow 11:28:41.Rusal has contracted a five-year RUB 18.3bn
(approx. USD 582.8m) credit facility from Russia's largest lender Sberbank to
refinance its debt, according to materials released by the aluminum giant.
The credit line will be available for one year from the date of the contract.
In October 2011, Rusal refinanced loans totaling $11.4bn, including a five-year
$460m loan from Sberbank.
Prokhorov May Buy Kerimov’s MFK Bank Stake, Kommersant Says
http://www.bloomberg.com/news/2011-12-01/prokhorov-may-buy-kerimov-s-mfk-bankstake-kommersant-says.html
By Yuliya Fedorinova - Dec 1, 2011 6:41 AM GMT+0100
Mikhail Prokhorov, Russia’s third- richest man, may buy fellow billionaire Suleiman
Kerimov’s stake in MFK Bank, Kommersant reported, citing Dmitry Razumov, the head
of Prokhorov’s Onexim Group holding company.
Prokhorov already controls 27.7 percent of MFK, while billionaires Viktor Vekselberg
and Alexander Abramov each own 19.7 percent. Yekaterina Ignatova, wife of Russian
Technologies Corp. chief Sergei Chemezov, owns 13.1 percent.
To contact the reporter on this story: Yuliya Fedorinova in Moscow at
[email protected]
To contact the editor responsible for this story: John Viljoen at [email protected]
UPDATE 1-Nomos Bank Q3 net misses forecast on trade loss
http://www.reuters.com/article/2011/12/01/nomos-earnings-idUSL5E7N10V020111201
4:07am EST
* Profits hurt by revaluation of securities portfolio
* Loan portfolio up 17 pct vs previous quarter
* Profits come in lower than expected (Adds background)
MOSCOW, Dec 1 (Reuters) - Russian mid-sized lender Nomos Bank on Thursday posted
a net profit which came in below expectations due to a significant trading loss as it
revalued its securities portfolio, but said that it had grown its loan assets.
Its loan portfolio now represents more than 70 percent of its assets, and loans increased
by 17 percent compared to the previous quarter, driven by increases in small business and
retail loans, Nomos said.
Its third quarter net profit of 768 million roubles ($25 million) compared to a 1.75 billion
rouble profit the previous year. It reported a 2.64 billion rouble ($85.95 million) loss
from trading operations.
Nomos said profits were hurt by a revaluation of its securities portfolio, mostly
represented by high quality Russian corporate bonds. These losses have been partially
recovered as of November, the bank said.
Nomos, which raised $782 million in an initial public offering in London and Moscow
earlier this year, had been expected to post a 49 percent drop in third-quarter net profit to
933 million roubles ($29.8 million) after payments to minor shareholders, a Reuters poll
of 10 analysts showed on Tuesday.
Shares rose 5.6 percent, or 34 roubles to 650 roubles.
State lender Sberbank, Russia's largest bank, on Wednesday beat analyst forecasts and
raised its full-year profit forecast, on loan growth and higher margins. [ID:
nL5E7MU066]
($1 = 30.7143 Russian roubles) (Writing by Megan Davies and Andrey Ostroukh; Editing
by Helen Massy-Beresford)
Kogan sells Mosmetrostroy stake to managers
http://www.bne.eu/dispatch_text18082
bne
December 1, 2011
Putin associate, banker Vladimir Kogan has closed a deal to sell his stake in OAO
Mosmetrostroy to General Director Yevgeniy Kashin and other managers, a source of the
Moscow City Hall said, according to newswires. Kogan acquired the company one year
ago. A recent investigation by business daily Vedomosti showed that the company had
one two-thirds tenders for a huge metro expansion project. Prior to purchasing the
company, Kogan oversaw it as a government official responsible for infrastructure.
Rusagro Q3 earnings fall 38 pct, cane sugar hit
http://in.reuters.com/article/2011/12/01/rusagro-results-idINL5E7N10OF20111201
12:53pm IST
MOSCOW, Dec 1 (Reuters) - Russian sugar and pork producer Rusagro said third quarter
profit fell 38 percent, as economic uncertainty hit the profits it could make from cane
sugar.
Rusagro, which raised $330 million in a London stock-market float in April, said net
profit for the three months to September 30 was 1.1 billion roubles ($35.81 million),
down from 1.8 billion roubles the same period a year ago.
Macroeconomic uncertainty "seriously affected the dynamics of world commodity prices,
while also breaking the correlation between world and domestic prices," Rusagro's CEO
Maxim Basov said in a statement. "The result has been that we have not earned the
money that was targeted for cane sugar."
Russia's Cherkizovo Q3 net profit rises 18 pct
http://af.reuters.com/article/commoditiesNews/idAFR4E7K600D20111201
Thu Dec 1, 2011 7:11am GMT
MOSCOW Dec 1 (Reuters) - Russian meat producer Cherkizovo said on Thursday its
third-quarter net profit rose 18 percent helped by an acquisition and higher prices for its
products.
The net profit rose to $42.6 million from $35.9 million in the third quarter of 2010, the
company said in a statement.
Cherkizovo, which bought poultry farmer Mosselprom in May, has been building up
poultry production and targeting a 20-25 percent market share compared with just under
10 percent now.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA)
increased 32 percent in the third quarter to $72.2 million with a 19 percent EBITDA
margin, flat year-on-year.
Sales increased 32 percent to stand at $389.2 million.
Russian retailer Magnit Nov sales rise 33 pct
http://in.reuters.com/article/2011/12/01/magnit-sales-idINL5E7N10TM20111201
1:05pm IST
MOSCOW, Dec 1 (Reuters) - Russian grocery chain Magnit said on Thursday its sales
increased by 33 percent in November on the back of continued store rollout after rising
32 percent in the previous month.
The company said in a statement sales totalled 28.9 billion roubles ($941 million)
compared to 21.7 billion roubles in November 2010.
Russia's largest food retailer by stores, Magnit opened 153 outlets last month, increasing
selling space by 39.3 percent and bringing its total number of outlets to 5,023.
The company said late on Wednesday it would sell $350 million of new shares to fund
further expansion.
Russia’s MegaFon confirms signing deal on LTE devt with Scartel
http://www.primetass.com/news/_Russias_MegaFon_confirms_signing_deal_on_LTE_devt_with_Scartel/
0/%7B2B494DAF-5227-4066-A1CB-640755827327%7D.uif
MOSCOW, Dec 1 (PRIME) -- Major Russian mobile operator MegaFon confirmed late
Wednesday that it had signed an agreement to jointly develop fourth generation (4G)
mobile networks via Long Term Evolution (LTE) technology with wireless broadband
operator Scartel.
Under the agreement, MegaFon is expected to use Scartel’s equipment to provide 4G
LTE services, while Scartel is expected to use MegaFon’s network infrastructure for LTE
network rollout, MegaFon said.
The joint development of LTE networks is expected to lead to a reduction of capital
expenditures in the network’s rollout as well as operating expenditures, MegaFon said.
The key advantage of this agreement to MegaFon is that Scartel possesses radio
frequencies suitable for providing 4G LTE services, a source on the telecommunications
market told PRIME.
Scartel’s CEO Denis Sverdlov was quoted as saying that the partnership is expected to
allow both Scartel and MegaFon to start providing 4G LTE services in 2012.
Major telecommunications operator Rostelecom is also in talks with Scartel over the joint
development of LTE networks, Rostelecom’s Commercial Director said late Wednesday.
The companies have already signed the first protocol of intent, he said, adding that
Rostelecom also plans to launch LTE services in 2012.
Business daily Kommersant reported Wednesday, citing two sources on the market, that
Scartel had signed an agreement with both MegaFon and Rostelecom to jointly build
LTE networks. Scartel is then expected to rollout LTE networks using MegaFon’s and
Rostelecom’s infrastructure and subsequently allow the two partners to use the network
to provide 4G services as MVNOs (mobile virtual network operators).
The three companies and major mobile operators MTS and VimpelCom signed a
framework agreement to jointly develop a 4G wireless network in early March. Under the
agreement, Scartel is to build the network, later allowing Rostelecom, MTS, MegaFon,
and VimpelCom to have access to the network. The four companies were then expected
to receive the right to buy a 20% stake in Scartel in 2014. However, a binding agreement
has not been signed.
Scartel has obtained regulatory permission to develop LTE networks in a 2.5–2.7
gigahertz (GHz) range, the State Radio Frequency Commission’s official Yury Zhuravel
said in September. Tenders for four other licenses to provide LTE services are expected
to be held in January–March 2012, Zhuravel said.
Scartel currently provides wireless broadband services via Mobile WiMAX technology
under the Yota brand in the cities of Moscow, St. Petersburg, Ufa, Krasnodar, and Sochi.
End
01.12.2011 11:55
Continental tire makers to open plant in Russia
http://www.bne.eu/dispatch_text18082
bne
December 1, 2011
Germany's Continental tire maker is set to invesr about 240m euro in a tire plant in
Russia's automotive cluster region of Kaluga, according to Voice of Russia. The plant
will provide about 800 jobs and produce about 8m tires a year by 2016.
Russian Railways looks lean
01 December 2011
http://www.railwaygazette.com/nc/news/single-view/view/russian-railways-lookslean/archiv/2011/12.html
RUSSIA: Alstom Transport is to provide Russian Railways specialists with training in
the implementation of lean manufacturing technology under a memorandum of co-
operation which was signed during the Second Railway Congress in Moscow on
November 19.
Alstom and RZD are planning joint engineering centres for the development and
implementation of projects to improve efficiency and quality, and Alstom will assist with
the introduction of IRIS standards and the implementation of best practice in rolling stock
maintenance.
'Alstom's experience implementing lean manufacturing technology is especially valuable
for improving the efficiency of the railway system,' said RZD Senior Vice President
Valentin Gapanovich.
FUNDS: Nurturing Russia's venture capital industry
http://www.bne.eu/storyf3083/FUNDS_Nurturing_Russias_venture_capital_industry
Patricia Cloherty has been running funds since most of us were in nappies. Ranked 63rd
in Forbes magazine's Midas List of fund managers last year, she is a doyenne of the
Russian capital markets, moving from funding the project that created Dolly the cloned
sheep, to being asked by former president Bill Clinton to run The US Russia Investment
Fund, which was supposed to help transform Russia into a capitalist country.
Cloherty, chairman and CEO of Delta Private Equity Partners, which manages the two
venture capital funds The US Russia Investment Fund and Delta Russia Fund, bubbles
with enthusiasm when discussing the relationship between successful entrepreneurs and
people who have both excelled at sport and hard science.
Cloherty began her first private equity career in 1969 with US venture capital firm
Patricof & Co. Ventures, later to become Apax Partners. Her first fund started life with
just $2m under management and had grown into one of most successful technology and
biotech investors with over $10bn under management by the time she left.
Ranked as one of the 100 most influential women in the US venture capital world, in
1994 Clinton asked Cloherty to accompany him for a summit meeting with the late
president Boris Yeltsin in Moscow. "I was sitting in my offices on 57th and Park Avenue
in New York when I got a call from the White House. 'We need a 'deliverable' on the
fund issue for Clinton's trip to Russia,' they told me, and asked if I would go over with
Clinton and head up the fund," says Cloherty, who was then president of the US Venture
Capital Association.
In true fund manager style, as soon as she had landed in Russia she hired a helicopter and
few off to visit a couple of factories to see what life on the ground was like. Her stop was
Sun Brewery, run by the Indian Shiv Khemka and one of Russia's first really successful
foreign investments. Then she went on to a chipboard plant on the Finnish border. "They
made fibre board the old way by hand," says Cloherty sitting in the swanky café in the
foyer of her office, a stone's throw from the newly renovated Bolshoi Theatre. "Babushki
were testing the finished boards by hitting them with a hammer and listening to see if
there were any holes in the boards. The whole place stank."
Rather than being put off, Cloherty, who like Mark Zuckerberg of Facebook, speaks
ancient Greek, says the whole experience "only energised" her. "After the trip to
Moscow, the State Department rang again and said things weren't gelling and would I go
back. I left the next day, I didn't want to give myself the time to change my mind," she
says.
Clinton appointed her head of The US Russian Investment Fund and by 2004 she had set
up Delta Private Equity Partners, the private equity firm dedicated to developing and
funding fast growing companies in Russia. Since it was founded, it has invested over
$500m in 55 Russian companies through two funds: the US Russia Investment Fund
established in 1994 and Delta Russia Fund, a successor private fund formed in 2004. The
Delta Russia Fund is winding down now and has sold all but four of its investments and
earned an impressive 27% return on equity during the process, scoring some major firsts
along the way.
Safe as houses
Probably Cloherty's most lasting legacy will be the creation of Delta Capital, Russia's
first dedicated mortgage bank, which was sold to GE Capital in 2004 at 4-times book
value. At the time, it was hailed as a spectacular deal, as most banks in Central Europe
had been sold in the 1990s at 1.0-1.5-times book value.
Today, the mortgage business is still in its infancy with a total of about 150,000 mortgage
contracts outstanding in a population of 142m. However, the number of new contracts
being issued has been doubling every 18 months or so and the Russian government
expects the total volume to triple in five years. "The thing that really struck me about the
mortgage business is Russians are honourable borrowers – if they take a loan, they move
heaven and earth to repay it. Owning their own place is important to Russians and they
don't want to lose it by defaulting on their loans," says Cloherty.
Another of her legacies was to train a whole generation of young Russian financial
professionals. "The first thing I did on taking over Delta was sack all the expats," says
Cloherty, who very unusually for a Californian smokes incessantly. "They were either
bent or incompetent. We hired [in their place] Russians, Ukrainians, Belarusians and
Georgians."
Kirill Dmitriev, the young manager who was appointed this summer by Prime Minister
Vladimir Putin to run the Kremlin's $10bn Russia Direct Investment Fund, is probably
the most famous alumnus of the Cloherty school of asset management. But she has also
been a pioneer in several other sectors: investing into the first successful supermarket
chain, a bottled water company, a packaging company, to name but a few. But not all the
deals went smoothly – one of Cloherty's very first deals was into a diesel engine plant,
but the money almost immediately disappeared. "I tracked the money to a suitcase that
was delivered to Vienna, but lost the trail there. We found the partner, but not the
money," says Cloherty.
And the Russians have lauded Cloherty. Until recently, she sat on the Russian foreign
investment council and the board of Skolkovo, President Dmitry Medvedev's pet project
to create a Silicon Valley in Moscow. And she is deeply enmeshed in the rhythms of
Moscow life. Currently, she shares her apartment with 17-year-old Joy, the
granddaughter of the founder of Scientific America magazine (another of Cloherty's
successful investments), who is one of the few Americans studying ballet at the Bolshoi.
"It's a little bizarre, as I keep having all these young Russian and French ballerinas
ringing up in the middle of the night," says the irrepressible Cloherty, who is still a
dynamo of energy despite her 70 years. As I came into her office she was chortling with
laughter, sporting a "Silver Sharks" ice hockey shirt, the name of the local youth team she
has sponsored and sent to Canada in November to compete in the world youth games
(they won, of course.)
Cloherty obviously has a passion for Russia, but she has not been able to make venture
capital investments into biotechnology, which is where she made her name in the US.
Most famously, she backed the Scottish project to clone sheep that could produce a
special protein far more cheaply than synthesis – mainly because it made good business
sense, but also because her sister was suffering from a disease that the protein would
cure. The project worked, but unfortunately not in time to save Cloherty's sister. And in a
similar spirit, she was a big investor that eventually produced the cocktail of drugs used
today to fight HIV-AIDS. "[Biotechnology venture capital] won't work in Russia, as there
is still no enforceable intellectual property laws that protects the heavy capital investment
you need in this kind of work," says Cloherty, who comfortably flips constantly between
talking about her ballet friends and ice hockey team to discussing hardcore investment
into hi-tech medicine without a pause for breath.
But she remains committed to Russia and believes that it is still at the start of the
transformation process. Her skill has been to spot the Russians who have a vision and the
ability and energy to create something new. "You have to remember everyone in Russia
was someone else a decade earlier," says Cloherty. "People learned how to do business
from watching movies like 'Wall Street'. That is why recreating things that already exist
elsewhere can be so difficult. But then look at the growth rates and that in itself is a
testament to the Russian ability to learn."
Activity in the Oil and Gas sector (including regulatory)
FILL: Novatek Acquires 100% Of Gazprom Mezhregiongaz Chelyabinsk For $48.8
Million
http://english.capital.gr/News.asp?id=1344307
MOSCOW -(Dow Jones)- Novatek (NVTK.RS) has, through its subsidiaries, acquired a
100% stake in OOO Gazprom Mezhregiongas Chelyabinsk for a total of RUB1.5 Bln
($48.8 million), Novatek said Thursday.
Gazprom Mezhregiongas Chelyabinsk sells natural gas to industrial and residential
customers in the Chelyabinsk Region. In the first nine months of 2011, the company
supplied the region with 7.4 bcm of natural gas.
-By Ira Iosebashvili, Dow Jones Newswires; +7 495 232-9192,
[email protected]
Novatek snaps up regional gas distributor
http://www.rbcnews.com/free/20111201112042.shtml
RBC, 01.12.2011, Moscow 11:20:42.Novatek has acquired a 100% stake in
Gazprom Mezhregiongas Chelyabinsk for RUB 1.55bn (approx. USD 49.3m),
Russia's second-largest natural gas company said in a statement.
This company is the largest gas distributor in the Chelyabinsk region of the Urals
Federal District, selling gas to industrial and socially important facilities. In the first
nine months of 2011, it delivered 7.4bcm of gas.
The acquisition is in line with Novatek's strategy to ratchet up its presence in
major sales markets, the company's chairman Leonid Mikhelson said.
December 01, 2011 12:44
Other foreign cos besides Total interested in Val Shatsky offshore project
http://www.interfax.com/newsinf.asp?id=291469
MINERALNYE VODY. Dec 1 (Interfax) - France's Total is not the only foreign
company interested in the Val Shatsky (Shatsky Ridge) offshore project in the Black Sea,
Rosneft (RTS: ROSN) head Eduard Khudainatov said.
"Total has serious competitors, several companies are working in the data room,"
Khudainatov told reporters.
"Therefore, we are not making a decision yet. We want to make the best decision for the
company. It will depend on the conditions, the technology that they offer for exploration,
on investment, their experience, their qualifications," Khudainatov said.
He said the project to develop the Val Shatsky field is quite difficult, including in terms
of geology. "There are difficult structures of geological deposits their very serious work
is needed," Khudainatov said.
He said Rosneft might soon decide on a partner for Val Shatsky.
"We still have time. But I think that we will decide in the near future," Khudainatov said.
Rosneft and Chevron reached an agreement on the joint development of Val Shatsky in
June 2010, but in March 2011 there were reports that the U.S. company might pull out of
the project over differences concerning the geology of the field and assessment of
reserves.
Val Shatsky LLC, which Rosneft acquired in 2007 among other former assets of the
bankrupt Yukos, holds the license to the Zapadno-Chyornomorskaya section. There have
been ten or so structures identified at the license block, the biggest of which are SeveroChyornomorskaya, Mariya, and Sklonovaya. Water depth at the sections is 1.2-2
kilometers. The Zapadno-Chyornomorskaya section borders Rosneft's Tuapsinksy
section.
Overall resources are estimated at 6.3 billion barrels of oil. Projected D2 hydrocarbon
reserves at Val Shatsky are 1.456 billion tonnes of oil and 433 billion cubic meters of gas.
Total CEO Christophe de Margerie said recently that Total is considering joining Rosneft
in the Val Shatsky project. Total and Rosneft are looking at various options for
geological prospecting projects, and Val Shatsky is one of them, de Margerie said.
Vp pr cf
(Our editorial staff can be reached at [email protected])
TNK-BP lays out Vietnam strategy
http://www.bsr-russia.com/en/oil-gas/item/1993-tnk-bp-lays-out-vietnam-strategy.html
Posted by Editor on Thursday, 01 December 2011 06:11 | Published in Oil & Gas
TNK Vietnam (a 100% subsidiary of TNK-BP Group) haas outlined its development
strategy for Vietnam operations and underscored its commitment to make a positive
impact in Vietnam. The development strategy for the Vietnam assets will involve safe
and efficient operations of offshore gas production, making it a center for offshore
technical expertise within TNK-BP Group, as well as a vigorous approach to new growth
opportunities in the Southeast Asian nation.
Following the official amendment of the investment license for Block 06.1 in October
2011, TNK Vietnam has assumed operatorship of the Lan Tay platform and the Company
is now seeking new organic and inorganic growth opportunities and form strategic
partnerships for the development of new opportunities in Vietnam’s energy sector.
As a next step, TNK Vietnam will participate in the current licensing rounds for offshore
blocks being auctioned by PetroVietnam.
Chris Einchcomb, Vice-President of International Projects and Upstream commented:
“Vietnam is an attractive place to do business and TNK-BP is here for the long term. As
we focus on integrating these assets into the TNK-BP portfolio, we are also seeking new
opportunities to deepen our presence in the country and play a greater role in providing
safe and reliable energy to the people of Vietnam.”
The Company will drill two sub-sea wells in the coming month in Lan Do field
development project and first gas is scheduled to come on stream in the fourth quarter of
2012. Gas production from Lan Do, which helps to fulfill the company’s gas sales and
purchase agreement obligations with the Government of Vietnam, is expected to bring
additional 2 billion cubic metres of gas annually to Block 06.1’s current production of 5
billion cubic metres.
Hugh McIntosh, General Director of TNK Vietnam added: “I am confident that with
strong talent and capability, we will sustain an enviable reputation for TNK in Vietnam,
whilst creating a new chapter of business growth.”
Einchcomb also announced that the company would contribute a state-of-the-art, fully
equipped ambulance vehicle to the Le Loi General Hospital in Ba Ria Vung Tau. The
coastal province of Ba Ria Vung Tau is home to TNK Vietnam’s major operations,
including the Lan Tay Platform, where natural gas and condensate are produced, the Nam
Con Son pipeline and terminal, and the Phu My 3 power plant.
Gazprom
Gazprom Expects to Sign Gas Agreement With Ukraine This Year
http://www.bloomberg.com/news/2011-12-01/gazprom-expects-to-sign-gas-agreementwith-ukraine-this-year.html
Q
By Stephen Bierman - Dec 1, 2011 6:02 AM GMT+0100
OAO Gazprom, Russia’s gas exporter, said it made “significant progress” in talks with
Ukraine and plans to sign a cooperation accord with the country this year.
Gazprom made the statement in an e-mail today after talks between Chief Executive
Officer Alexei Miller and Ukrainian Energy and Coal Minister Yuriy Boyko. Gazprom
didn’t give details of the agreement it expects to sign.
To contact the reporter on this story: Stephen Bierman in Moscow at
[email protected]
To contact the editor responsible for this story: Brad Cook at [email protected]
Gazprom and Japan in talks over LNG project
http://www.bne.eu/dispatch_text18082
bne
Deputy CEO of Russian gas giant OJSC Gazprom, Alexander Ananenkov, and Minister
of Japan's Embassy to Russia, Manabu Miyagawa, have discussed a liquefied natural gas
partnership, Gazprom said in a statement. The statement said that the meeting, discussed
an LNG plant near Vladivostok, according to Interfax.
"Highlighted was Russia's great potential as a source for possible LNG supply to Japan
both from the Vladivostok area and through exchange operations between European and
Asian markets," the statement said, as quoted by Interfax.
Gazprom signed an agreement in April 2011 with JAPAN FAR EAST GAS Co., Ltd for
joint feasibility studies for building a LNG plant in the Vladivostok region, according to
the newswire.
Gazprom sees shale gas as risky
http://www.upi.com/Business_News/Energy-Resources/2011/11/30/Gazprom-sees-shalegas-as-risky/UPI-24541322655302/
Published: Nov. 30, 2011 at 7:15 AM
MOSCOW, Nov. 30 (UPI) -- Executives at Russian natural gas company Gazprom said
certain aspects regarding production of shale gas made it a pricey commodity to exploit.
Gazprom executives during their latest meeting said there were no major breakthroughs
in technology used to exploit shale gas that made it cheaper than conventional gas to
produce.
"More stringent environmental requirements for the companies developing shale gas may
raise the shale gas production costs," Gazprom noted in a statement.
Executives added there was "significant" environmental risk associated with production
of shale gas. Critics of shale gas production believe the chemicals used in so-called
fracking fluid could contaminate groundwater supplies, though companies involved in the
practice note those chemicals make up only a tiny fraction of the overall composition.
Shale gas production is banned in France though Poland and Ukraine, other countries rich
on shale, are exploring their options.
Nevertheless, Gazprom said shale gas production was too costly for the European energy
sector.
"Non-conventional gas including shale gas has been increasingly attracting public
attention worldwide, but it is no news for the gas industry," the company said.
Read more: http://www.upi.com/Business_News/EnergyResources/2011/11/30/Gazprom-sees-shale-gas-as-risky/UPI24541322655302/#ixzz1fGdIHNdG
Gazprom draws up training needs for arctic projects
http://www.pennenergy.com/index/petroleum/display/7532940592/articles/offshore/regio
nal-reports/russia/2011/november/gazprom-draws_up_training.html
Offshore staff
MURMANSK, Russia – A Gazprom delegation has visited the Murmansk Oblast to
discuss support requirements for offshore projects in arctic regions.
One of the main subjects for discussion is Gazprom's plan to construct a training center in
Murmansk, specialized in offshore fields prospecting, exploration, pre-development and
operation, and subsea and cargo transportation of produced hydrocarbons.
This facility will likely be built on the southeast coast of Lake Sredneye.
The delegation also visited the projected locations of this and onshore infrastructure
facilities near Teriberka for the Shtokman and condensate field development project in
the Barents Sea.
Gazprom’s 2010–2013 personnel skills development program for its subsidiary
companies stipulates that the training center should focus on:
• Theoretical and practical preparation of personnel to work at offshore hydrocarbon
fields, pre-development facilities, subsea production complexes, offshore processing
platforms, offshore mobile drilling rigs, offshore gas trunklines, onshore LNG plants,
hydrocarbons storage tank fleets, and facilities for hydrocarbons loading on tankers and
LNG carriers
• Retraining of professionals operating offshore field pre-development facilities
• Research of methods to increase the effectiveness and reliability of offshore fields predevelopment.
11/30/2011
Source:
Offshore
Gazprom ADRs Rise Most in Month After Credit Suisse Upgrade
http://www.businessweek.com/news/2011-11-30/gazprom-adrs-rise-most-in-month-aftercredit-suisse-upgrade.html
November 30, 2011, 4:41 PM EST
By Ksenia Galouchko
(Updates with closing prices in second paragraph.)
Nov. 30 (Bloomberg) -- OAO Gazprom, Russia’s gas export monopoly, rose the most in
more than a month in New York after Credit Suisse Group AG upgraded the company’s
stock.
Gazprom’s American depositary receipts climbed 5.3 percent to $11.50 at the close of
trading in New York, after earlier gaining as much as 5.8 percent to $11.55, the biggest
gain since Oct. 27.
Credit Suisse raised Moscow-based Gazprom to “neutral” from “underperform” and
lifted the target price for the ADRs to $5.70, from $5.30. Investors have already “priced
in” the company’s increased capital expenditure and the slowdown in growth of gas
tariffs, analysts led by Andrey Ovchinnikov at Credit Suisse in Moscow wrote in a
research note e-mailed today.
“The negative news flow has ended, we don’t see a big downside in the near term,”
Ovchinnikov said by phone from London.
Gazprom added 2.8 percent to close at 175.39 rubles on Russia’s Micex index, the
highest level since Nov. 18. One Gazprom ADR is equal to two ordinary shares.
--Editors: Emma O’Brien, Glenn J. Kalinoski
To contact the reporter on this story: Ksenia Galouchko in New York at
[email protected]
To contact the editor responsible for this story: David Papadopoulos at
[email protected]
November 30, 2011 8:24 pm
How Gazprom lost control of Gazprombank
http://www.ft.com/intl/cms/s/0/a1bf9fc4-1aba-11e1-ae1400144feabdc0.html#axzz1fGer0dHF
By Catherine Belton
High quality global journalism requires investment. Please share this article with others
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http://www.ft.com/cms/s/0/a1bf9fc4-1aba-11e1-ae14-00144feabdc0.html#ixzz1fGetq4S8
When Gazprom transferred control in 2007 of Gazprombank, its banking arm and the
country’s third biggest lender, to Gazfond, the gas giant’s $6bn pension fund, the deal
was seen as so incremental that the investor community barely noticed.
But Gazfond was closely linked to Bank Rossiya – which owned Lider Asset
Management, the company that managed Gazfond’s assets and held most of the latter’s
stake in Gazprombank as a nominee shareholder.
In a sign of the closeness of the two companies, Gazfond and Lider until recently shared
the same office building and as, this correspondent found on a recent visit to the pension
fund, the walls of Gazfond’s conference room bore Lider’s logo.
Bank Rossiya had used Sogaz, the former Gazprom insurance arm that was by then a
subsidiary, to buy 75 per cent of Lider in August 2006 for an undisclosed sum, giving it
access to Gazfond’s pot of cash. But there were already family links. Yuri Shamalov, son
of Nikolai Shamalov – a Bank Rossiya shareholder – had been appointed head of
Gazfond in August 2003. According to his official biography, he had no previous
insurance industry experience – but he had worked with Vladimir Putin in St Petersburg’s
foreign economic relations committee.
Gazprom’s board then cleared the way for Gazfond to acquire 50 per cent plus one share
of Gazprombank, suddenly rejecting a previous initiative to sell 33 per cent of the bank to
Gazfond for $1.3bn. Instead, directors allowed Gazfond to swap nearly 20 per cent it held
of Mosenergo, a Moscow power generator, for 49.9 per cent of Gazprombank, and buy a
further 0.07 per cent for $2.65m.
Gazfond then handed most of its Gazprombank holding to Lider after legislative changes
barred pension funds from holding more than 10 per cent of non-traded assets.
“[Gazprom] gave it away for nothing just like that,” says Vladimir Milov, a former
deputy energy minister, referring to the transfer of the controlling stake in Gazprombank
to Gazfond. Mr Milov has published an investigation into Gazprom’s various asset
transfers, alleging the loss of billions of dollars in value from Gazprom.
Gazprom’s spokesman Sergei Kupriyanov, however, claims the gas monopoly received
full value for its bank stake. Mosenergo’s value reached $9bn in 2006, the year of the
transaction, he says. He adds that allowing Gazfond to take control meant Gazprom could
lower its debt burden by no longer having to consolidate Gazprombank into its accounts.
“We acquired a strategic asset that we needed for a value in line with what was being
offered by Dresdner Bank,” he says, referring to an earlier $800m bid by the German
bank for one-third of Gazprombank. Just months after the deal, Gazprombank’s deputy
chairman, Alexander Sobol, valued Gazprombank at $8bn.
Gazprom and Bank Rossiya say Lider only manages the Gazprombank stake on behalf of
Gazfond, and does not have direct ownership of it. But by 2008, Gazprom had
relinquished its majority on the Gazprombank board. Today, Gazfond’s Yuri Shamalov,
as well as Anatoly Gavrilenko, head of Lider, are both on the board. So too is the head of
Sogaz – Sergei Ivanov junior, son of deputy prime minister Sergei Ivanov, a close Putin
ally and former KGB colleague.
Turkmenistan: China Export Deal Undercuts Gazprom’s Leverage
http://www.eurasianet.org/node/64609
November 30, 2011 - 11:56am, by Tom Balmforth
China is challenging Russia as Turkmenistan’s main buyer of natural gas. Ashgabat’s
shift could put the Kremlin in a precarious position.
During a state visit to China on November 23, Turkmen President Gurbanguly
Berdymukhammedov said he signed an agreement with Chinese President Hu Jintao to
beef up an existing gas accord by exporting 65 billion cubic meters (bcm) a year to China
“in the near future.” This new projected volume would total over half of the 2010 gas
consumption of China, the largest energy consumer in the world and a market that
Russia, the world’s most resource-rich nation, has long been looking to penetrate.
Alexei Miller, head of the Kremlin-controlled conglomerate Gazprom, was quoted by
local media as saying that Turkmenistan's intentions "will not affect our plans." But
analysts did not seem reassured by Miller’s words.
“Gazprom is reacting to this [deal] with alarm,” said Alexei Kokin, a senior oil and gas
analyst at UralSib Capital. “It undermines its bargaining position with China. The
question is how much gas China actually needs, and how this market is going to be split
between Russia and Turkmenistan. It goes without saying that the more Turkmen gas
going there, the less Russian is needed.”
In a single stroke, Turkmenistan may have dashed a decade-long effort by Gazprom to
ship 68 billion cubic meters per year of Russian gas to China. Up to now, the price for
Russian gas has been a sticking point for a Chinese export deal. Yet, as recently as
October, Russian Prime Minister Vladimir Putin said that Moscow was "close" to sealing
a deal.
But Kokin questioned how much demand there will now be for Russian gas -- except at a
knock-down price -- as China seeks to diversify its energy dependence by expanding
cooperation with Turkmenistan, and increasing deliveries of liquefied natural gas from
Myanmar.
Speaking to EurasiaNet.org on condition of anonymity, a former senior Turkmen energy
official said that the Turkmenistan is engaging in “an old political game,” trying to play
China, Europe and Russia off against each other in order to “strengthen its own position”
and “maintain its regime.”
Alexander Rahr, director of Germany’s Berthold Beitz Center for Russia, Ukraine,
Belarus and Central Asia, said Turkmenistan is partly trying to maximize the amount of
foreign investment it can attract for infrastructure. The Turkmen government aims to
treble natural gas output by 2030.
The announcement between Ashgabat and Beijing came shortly after Turkmenistan and
Russia exchanged barbed words over the Turkmen government’s ambitions to diversify
its gas supplies to Asia and Europe. Ashgabat’s export ambitions have grown in the wake
of an audit that found Turkmenistan to have colossal untapped reserves of gas. Britishbased auditor Gaffney, Cline & Associates estimated Turkmenistan’s South Yolotan gas
reserves, situated 350 kilometers south east of the Turkmen capital, to be the world’s
second largest gas field, holding a volume of up to roughly 21 trillion cubic meters.
In an interview with Russia’s Vesti 24 news channel on November 18, Gazprom Deputy
Chairman Alexander Medvedev dismissed the Gaffney estimate, saying it contradicts
geological studies of the desert nation of 5 million conducted during the Soviet era.
Medvedev's comments strike at the heart of what Rahr called one of Turkmenistan’s
“main challenges in playing its game” – the paucity of reliable information in the highly
secretive Central Asian state, and the fact that government statements cannot be verified
by would-be investors.
Turkmenistan’s Foreign Ministry hit back at what it called a “clumsy attempt to distort
the real situation.” It accused Gazprom officials of being "disrespectful of partnership
relations in the energy sphere” and promised to up its efforts to diversify its gas supply
routes.
Earlier in November, Amanali Khanalyev, chairman of state gas firm Turkmengaz, said
he has been in talks to discuss a possible Turkmen role in the construction of an “EastWest” Trans-Caspian pipeline that would pump a potential 30 bcm of Turkmen gas to
Europe, bypassing Russia.
Turkmen gas is crucial for the European Union-backed “Nabucco” pipeline project that
would deliver Central Asian gas to Europe, circumventing Russia. The project has
consistently rankled the Kremlin. Kokin said Russia would not up pressure on
Turkmenistan, saying that its levers to influence the situation are weaker than they
previously were. He added that the Kremlin’s influence should continue to weaken as the
reclusive Central Asian state shakes off its post-Soviet dependence on Russia.
Turkmenistan’s energy-driven diplomacy and extensive untapped resources have seen it
develop relations not only with Europe and China, but also Iran and Afghanistan, while
courting the United States over a possible pipeline to Afghanistan, Pakistan and India that
has stalled over security problems.
Ashgabat continues to ship gas to Russia for resale in Europe, although these Europeanbound supplies have declined precipitously since an explosion on the pipeline from
Turkmenistan to Russia in 2009.
Analysts say that Russia’s Gazprom has been forced to change its strategy of trying keep
Central Asian countries under Russian energy domination. Rahr said: “Over time it was
clear that countries like Turkmenistan would get out of this isolation and would be in a
position to play their own game in the oil and gas business. Here I think Gazprom
certainly overplayed its hand.”
Editor's note:
Tom Balmforth is a freelance journalist who writes about Russia and the Caucasus.