Russia 110419
Basic Political Developments
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Russian foreign minister to visit 4 Balkan states - During the three-day
tour, Lavrov will visit Serbia, Montenegro, Macedonia and Slovenia to
discuss the situation in the region, bilateral economic ties and some urgent
issues on the global political agenda.
o Moscow queries Montenegro's NATO membership plans - "Our
attitude to NATO enlargement is well known and does not depend
on political considerations of expediency or the geographic
vector," he /Lavrov/ said in an interview with the Montenegrin
newspaper Pobeda.
o Russian FM Lavrov to meet with Tadic and Jeremic today - As the
Russian Embassy in Belgrade confirmed to the Tanjug news
agency, Lavrov and Jeremic will discuss bilateral cooperation and
cooperation between the two countries on the international scene,
not excluding talks on Kosovo in the context of the recently
initiated dialogue between Belgrade and Pristina.
o Russian FM to talk economy, Kosovo - As Tanjug was told earlier
by the Russian embassy in Belgrade, it is possible that one of the
topics of talks will be the agreement on the two countries' strategic
partnership, which has been drafted and whose harmonization is
underway.
World Leaders to Attend St Petersburg International Economic Forum
2011 - Indonesian President Susilo Bambang Yudhoyono, Finnish
President Tarja Halonen and Spanish Prime Minister Jose Luis Rodriguez
Zapatero have confirmed they will take part in the St. Petersburg
International Economic Forum 2011 in St. Petersburg on June 16-18, the
Russian Economic Development Ministry said on Monday.
Washington-Moscow News Conference: Suit Filed to Require President
Obama to Lift 'Jackson-Vanik' for Russia - A press conference on the suit
will be held at 8:00 a.m. tomorrow, Tuesday, April 19, in the offices of
Bailey Gary PC (1615 L Street NW Suite 650, Washington), counsel for
plaintiffs, with video link to the Interfax news agency in Moscow.
Participants will include the plaintiffs and their attorneys, members of the
Russian Duma, and American and Russian experts on U.S.-Russia ties.
NY Times Moscow reporters get Pulitzer
Ukrainian Nationalists Picket Russian Embassy In Kyiv - Some 50
Ukrainian nationalists have picketed the Russian Embassy in Kyiv to
demand that the rights of ethnic Ukrainians in Russia be respected,
RFE/RL's Ukrainian Service reports.
Tajik-Russian border guard pact expected - Tajikistan and Russia have
completed work on a draft agreement governing the presence of Russian
border guard advisers and will sign the treaty soon, Tajik Deputy Foreign
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Minister Nizomiddin Zokhidov said April 18. The present agreement
expires this year.
Russia lifts warning against travel to Japan over disaster - Russia on
Monday lifted its advisory against travel to Japan issued after the March
11 earthquake and ensuing nuclear crisis in the country, but urged its
nationals to continue refraining from visiting disaster-hit areas in Japan.
Radioactive cars from Japan found at Nakhodka Port
Radiation levels normal in Russia's Far East
AEM deal with UAE's Dodsal for India factory - In a first of sorts,
Russia’s Atomenergomash (AEM) strikes a deal with UAE's Dodsal
Group to create a manufacturing unit in India in 2013 at a cost of $150
million.
Russians start questioning Polish witnesses of Smolensk air crash - Three
Russian prosecutors, present during the interrogation, had the right to ask
him questions, spokesperson of the military prosecutor's office Colonel
Zbigniew Rzepa told the PAP news agency.
Russia-Poland rapprochement against a backdrop of contradictions – by
Alexei Fenenko, Leading Research Fellow, Institute of International
Security Studies of RAS, Russian Academy of Sciences
Sargsyan: Armenian-Russian forum to help find new cooperation models
o Armenia-Russia cooperation expands actively- Naryshkin
o President sends greetings to 1st Russia-Armenian regional forum
o Yerevan hosts Armenian-Russian inter-regional forum
o Monument to Russian soldiers to be unveiled in Oshakan
First batchj-produced Superjet 100 to be handed over to Armenian airline
Deputy Speaker: Georgia not to change its position regarding Russia's
accession into WTO - Georgia's position regarding Russia's accession into
the WTO will not change, Georgian First Deputy Speaker Mikheil
Machavariani said.
Georgia demands Russia return Pirosmani's painting - Acting Head of the
Russian Federal Culture Agency Viktor Petrakov confirmed that the
painting exhibited at the Russian Antiques Salon in Moscow was indeed
stolen, but then legally purchased from the artist's family. He said that
they have copies of all of the documents.
Some foreign states fail to execute Russian legal aid requests - top
investigator: "Such a situation can be observed with our requests
forwarded, for example, to the British Virgin Islands, Gibraltar, the
Republic of Cyprus, the Isle of Man and a number of other states," he said.
Bout's defense appeals his trial in the United States - Lawyers for alleged
Russian arms dealer Viktor Bout, held in a U.S. prison on conspiracy
charges, have lodged an appeal on the illegality of their client's
prosecution in the United States.
Yury Dolgoruky to be ready for Bulava trials by start of navigation season
- Sevmash
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Kucherena and Resnik to certificate MUP - Russian President Dmitry
Medvedev has included in the committee on recertification MUP members
of the Public Chamber.
Kommersant: the brother of Maryam Sharipova killed in Dagestan
o Militants killed in Dagestan are being identified
Two militants destroyed near Makhachkala
o 2 militants killed in Dagestan
o 2 militants killed in Makhachkala suburb
Russian police kills 7 militants in North Caucasus region - In Chechnya,
local law enforcement agents conducted a special operation near the
district of Shatoi and killed three militants, the reports cited Chechen
leader Ramzan Kadyrov as saying.
RUR 1 billion to be invested into the energy producing infrastructure
objects in Dagestan South
Duma to back bill protecting children's right in divorce
Prosecutors to appeal verdict in trial of Jehovah's Witnesses leader
Court rejects complaint against prosecution of Bank of Moscow first vice
president
Diplomat from Kuwait went missing in Moscow - the third secretary of
embassy Alokaab Saleh Mohammed disappeared on the night of April 17.
Forest fire hazard level raised in Russia’s Far Eastern Primorye
Over 8,000 people left without electricity in central Russia
Reuters PRESS DIGEST - Russia - April 19
o www.kommersant.ru
o Russian tycoon Alisher Usmanov says in an interview that his
Metalloinvest steel and mining group and Norilsk Nickel
(GMKN.MM) will "sooner or later" become a joint holding
company to lead in the global production of nickel, palladium,
platinum and iron ore.
o After three years of investigation into alleged charges of tax
evasion by businessman Vladimir Nekrasov and his partner Sergei
Shnaider, prosecutors have decided to drop all accusations and
close the case for lack of evidence.
o As a result of the investigation Nekrasov, the former owner of
Arbat-Prestige cosmetics retailer, lost his business worth $1.5
billion, the daily says.
o www.vedomosti.ru
o The Finance Ministry will use an oil price of between $120 and
$122 per barrel while calculating Russia's 2012-2014 budget. This
could ensure more budget spending on social needs during 2012
presidential campaign, the daily says.
o Nekrasov, former owner of Arbat-Prestige, has no plans to claim
compensation for his lost business, the daily says. Arbat-Prestige
was one of the leaders in Russian cosmetics with a network of 90
retailers across Russia.
o www.izvestia.ru
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o Russia's President Dmitry Medvedev supports the approval of a
law which will allow testing of schoolchildren for drug addiction.
o Russia's Navy will take part in international military training
operations in the Baltic sea in June together with NATO
representatives from 13 states, the daily reports.
o www.ng.ru
o Russia's ruling United Russia party will decline any discussions
regarding a possible candidate for the next presidential election but
will take into consideration the opinion of party leader, Vladimir
Putin, the daily says citing party senior official Boris Gryzlov.
o www.rg.ru
o Head of Russia's jails Alexander Reimer arrived on Monday to the
Siberian prison camp where former YUKOS chief Mikhail
Khodorkovsky spent most of his term.
o Reimer will take part in an investigation into one of the biggest
protests carried out in a Russian prisons in which inmates set fire
to cells and other premises last Sunday.
RIA Russian Press at a Glance, Tuesday, April 19, 2011
Israel gives boost to Abkhazian economy - Tbilisi seems shocked by what
is happening Yury Simonyan
Russia Welcomes Capitalism…Again - The Kremlin is rediscovering
capitalism. In the process, it seeks to lobby market institutions towards a
more emerging nations-friendly approach to managing the global economy
after the 2008 credit crisis nearly bankrupted the poster children of free
markets: the US and UK.
National Economic Trends
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FAS SUGGESTS CUTTING FUEL EXCISE IF OIL PRICES RISE
HIGHER THAN DEFINED LEVEL – ARTEMYEV
COMMENT: Russian govt doesn't expect breakthrough in economy until
2014
Business, Energy or Environmental regulations or discussions
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Rosneft, Evraz, TMK, Novolipetsk Steel: Russian Equity Preview
Metalloinvest to up stake in Norilsk Nickel
Evraz Eurobond guidance around 6.75 pct –sources
Alfa Bank Eurobond guidance at 7.875-8 pct –source
Nomos Bank raises $718m in IPO
o Nomos Bank raises $718 mln in first Russian bank London IPO
o All about price - Nomos IPO goes through at upper end of range
S&P improves Renaissance Capital rating to 'B' from 'B-' with 'Stable'
outlook
Sberbank's shares might be sold on the open market during privatisation
Russian Stocks Not Fit for Hong Kong? - Despite multiple Russian
companies signalling their intent to list in Hong Kong, one technical issue
still exists – the Hong Kong stock exchange is yet to include Russia in its
list of accepted jurisdictions (Rusal is incorporated in Jersey), writes Dow
Jones Investment Banker
Activity in the Oil and Gas sector (including regulatory)
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Russian Oils - If $120/bbl balances the budget, don't expect material tax
cuts for oil - The government cannot afford to give the oil sector a
significant tax break in the foreseeable future. According to our rough
calculations, the oil sector accounted for c.50% of budget revenues in
2010, up from c.40% in 2009 (including extraction taxes, export duties,
and excise taxes, but not profit tax), while the gas sector added another
c.6-7% each year.
TNK-BP worth $54.1 bn: report
Akhmedov Seeks $1.8 Billion for 49% of Northgas, Vedomosti Says
Novatek confirms interest in Yamal license auction
Gazprom
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Gazprom looks to extract 200 bcm on Russian shelf by 2030 – Yazev
Gazprom Pushes AGM Back from June 24 to 30
o Annual and extraordinary General Shareholders Meetings
of Gazprom to be convened on June 30
Gazprom chief vows to stick to 10-year natural gas agreement - Alexei
Miller, the CEO of Gazprom, said Monday that Ukraine will not be able to
cancel the 10-year natural gas supply agreement that Kiev believes to be
“extremely unfavorable.”
----------------------------------------------------------------------------------------Full Text Articles
Basic Political Developments
Russian foreign minister to visit 4 Balkan states
http://en.rian.ru/russia/20110419/163588640.html
02:07 19/04/2011
Russian Foreign Minister Sergei Lavrov will set off on Tuesday on a Balkan tour
with an extensive diplomatic and economic agenda, the Foreign Ministry said.
During the three-day tour, Lavrov will visit Serbia, Montenegro, Macedonia and
Slovenia to discuss the situation in the region, bilateral economic ties and some
urgent issues on the global political agenda.
The minister will make the fist stop on the itinerary in Belgrade. Serbia is Russia's
key partner on the Balkans. The countries cooperate on a variety of major energy
projects, including the construction of Serbia's section of the South Stream gas
pipeline. Russia also backs Serbia on the issue of Kosovo independence.
Lavrov's trip to Montenegro will focus on economic agenda. According to the
ministry, Russia's direct investment in Montenegro totaled $120 million in 2010.
The countries also aim to expand cultural ties.
During the visit to Macedonia, Lavrov will discuss the expansion of trade and
investment cooperation and key European security issues.
The visit coincides with the 150th anniversary of the opening of the Imperial
consulate - the first Russian diplomatic mission in this part of the Balkans.
Lavrov will wrap up the tour with a visit to Slovenia on April 21. He will meet
with his counterpart Samuel Zbogar and Slovenian President Danilo Turk to
discuss the implementation of the recent bilateral agreements aimed at further
expansion of economic and cultural ties.
The general agenda of the tour also includes discussions on the current situation
in North Africa and the Middle East, the ministry said.
MOSCOW, April 19 (RIA Novosti)
Moscow queries Montenegro's NATO membership plans
http://en.rian.ru/russia/20110419/163593078.html
12:06 19/04/2011
MOSCOW, April 19 (RIA Novosti) - NATO expansion to include Montenegro
will not make anyone more secure, Russian Foreign Minister Sergei Lavrov said
on Tuesday.
Montenegro was granted a Membership Action Plan in December 2009 and is
expected to complete the accession process and join NATO by 2012.
"Our attitude to NATO enlargement is well known and does not depend on
political considerations of expediency or the geographic vector," he said in an
interview with the Montenegrin newspaper Pobeda.
He indicated that Russia's principal objection is that the bloc's military
infrastructure is advancing toward the Russian borders.
"The striving to expand NATO 'by inertia' in an entirely new situation, where
there is no bipolar world and when the confrontation between the two military
blocs is a thing of the past, does not add any more security either to new members
or to the organization as a whole," Lavrov said.
Russian FM Lavrov to meet with Tadic and Jeremic today
http://www.emg.rs/en/news/serbia/153026.html
19. April 2011. | 07:45
Source: Emg.rs
As the Russian Embassy in Belgrade confirmed to the Tanjug news agency,
Lavrov and Jeremic will discuss bilateral cooperation and cooperation
between the two countries on the international scene, not excluding talks on
Kosovo in the context of the recently initiated dialogue between Belgrade and
Pristina.
Russian Foreign Minister Sergei Lavrov will arrive in Belgrade today, when he
will meet with Serbian President Boris Tadic and Foreign Minister Vuk Jeremic.
As the Russian Embassy in Belgrade confirmed to the Tanjug news agency,
Lavrov and Jeremic will discuss bilateral cooperation and cooperation between
the two countries on the international scene, not excluding talks on Kosovo in the
context of the recently initiated dialogue between Belgrade and Pristina.
Also, they may touch upon an agreement on the strategic partnership between the
two countries, the draft of which has been prepared and being harmonized.
Lavrov will attend the unveiling of the plaque on the Foreign Ministry building,
dedicated to Russian architect Nikolai Krasnov.
Tuesday 19.04.2011 | 09:21
Russian FM to talk economy, Kosovo
http://www.b92.net/eng/news/politicsarticle.php?yyyy=2011&mm=04&dd=19&nav_id=73879
Source: Tanjug
Belgrade, Moscow -- Russian FM Sergei Lavrov will visit Belgrade today, where
he will confer with Serbia's top officials on bilateral relations, economic
cooperation and Kosovo.
According to announcements, Lavrov will meet Serbian President Boris Tadić
and Foreign Minister Vuk Jeremić.
Prior to Lavrov's visit, the Russian news agency Itar-Tass released that the focus
of attention will be the improvement of the bilateral cooperation, which has been
on the upsurge in the past several years.
The officials will discuss the development of the trade and economic cooperation,
and the Russian Foreign Ministry pointed out that Serbia will remain Russia's
biggest partner in the Western Balkan region.
According to Russia's estimates, the commodity exchange between the two
countries amounted to USD 1.4bn in 2010, Itar-Tass reported, adding that the
work on the realization of large projects is being continued, including the
construction of the Serbian section of the South Stream gas pipeline.
One of the topics to be discussed is the issue of Kosovo.
There is no doubt that the issue of Kosovo will be mentioned, and Serbia has
Russia's unconditional and consistent support in this matter, Itar-Tass reported,
referring to the statement of the Russian Foreign Ministry.
As Tanjug was told earlier by the Russian embassy in Belgrade, it is possible that
one of the topics of talks will be the agreement on the two countries' strategic
partnership, which has been drafted and whose harmonization is underway.
Lavrov will attend the unveiling of the memorial plaque to Russian architect
Nikolai Krasnov placed at the Serbian Foreign Ministry building, and visit the
Russian Orthodox Church in Belgrade, the Russian Embassy told Tanjug.
Lavrov is paying a visit to Serbia shortly after Russian Prime Minister Vladimir
Putin visited Belgrade on March 23.
Belgrade will be the first stop on Lavrov's mini tour which lasts until April 21,
and during which he will also visit Montenegro, Macedonia and Slovenia.
World Leaders to Attend St Petersburg International Economic Forum 2011
http://www.turkishweekly.net/news/114276/world-leaders-to-attend-stpetersburg-international-economic-forum-2011.html
Tuesday, 19 April 2011
Indonesian President Susilo Bambang Yudhoyono, Finnish President Tarja
Halonen and Spanish Prime Minister Jose Luis Rodriguez Zapatero have
confirmed they will take part in the St. Petersburg International Economic Forum
2011 in St. Petersburg on June 16-18, the Russian Economic Development
Ministry said on Monday.
"An invitation has been sent to President of China Hu Jintao to attend as an
honored guest and to speak at the plenary session after the Russian president's
welcome address," the ministry quoted Presidential Aide Arkady Dvorkovich as
saying.
The forum will also include executives from over 250 of the world's leading
companies, the ministry said. In all, almost 5,000 politicians and businesspeople,
official delegations from over 70 countries, leading scholars, social activists, and
journalists are expected to come to St. Petersburg to discuss the most pressing
issues facing Russia and the broader international community.
Washington-Moscow News Conference: Suit Filed to Require President
Obama to Lift 'Jackson-Vanik' for Russia
http://www.prnewswire.com/news-releases/washington-moscow-newsconference-suit-filed-to-require-president-obama-to-lift-jackson-vanik-for-russia120106354.html
WASHINGTON, April 18, 2011 /PRNewswire-USNewswire/ -- The following is
being issued by the law firm Bailey Gary PC:
Suit was filed today in U.S. federal court to require President Barack Obama to
use his existing legal authority to permanently remove the Russian Federation
from trade restrictions under the 1974 "Jackson-Vanik" law. A press conference
on the suit will be held at 8:00 a.m. tomorrow, Tuesday, April 19, in the offices
of Bailey Gary PC (1615 L Street NW Suite 650, Washington), counsel for
plaintiffs, with video link to the Interfax news agency in Moscow. Participants
will include the plaintiffs and their attorneys, members of the Russian Duma, and
American and Russian experts on U.S.-Russia ties.
"For the better part of two decades the Executive Branch, under Democratic and
Republican presidents alike, has claimed to support Russia's 'graduation' from
Jackson-Vanik, while lamenting inaction by Congress," states James T. Pitts, lead
attorney for the plaintiffs. "But a close reading of the amendment shows that
Congressional action is not necessary to remove Russia permanently from these
outdated, Cold War-era provisions. The president has all the authority he needs,
and we respectfully hope this suit will impel him to use it."
The action has been brought by Edward Lozansky, a former Soviet dissident
whose wife and daughter were "refuseniks" for 6 years and who at a 2010 House
of Representatives hearing on Jackson-Vanik testified:
"Having been separated by the Soviet authorities from my wife and child for over
six years since they could not get such an exit visa, I can confirm that JacksonVanik played a very important role not only in the process of lifting restrictions
on emigration but on the whole process of democratic and human rights
developments in the countries of the former USSR. But I strongly believe that
now Jackson-Vanik is not only obsolete but even harmful to U.S. interests. What
was good 30 or 40 years ago may not be appropriate today."
Enacted in 1974, Jackson-Vanik barred normal trade ties between the U.S. and
communist ("non-market economy") countries unless they permitted free
emigration of their citizens. Most countries formerly impacted by Jackson-Vanik
have been permanently "graduated" from its provisions. But due to unrelated trade
and political issues, Russia has not, even though for years Russia has been in full
compliance with the amendment's emigration requirements. In addition, in 2002
the Department of Commerce determined Russia was no longer a "non-market
economy," which, according to Richard Perle – a noted hardliner about Russia
and drafter of the Jackson-Vanik language – itself is sufficient to release Russia
from its provisions.
In addition to Lozansky, the other lead plaintiff is Anthony T. Salvia, an expert on
U.S.-Russia relations and former Reagan Administration appointee and head of
the Radio Liberty bureau in Moscow. It is expected that additional American
plaintiffs disadvantaged by the amendment's continued application to Russia may
join in the action.
Contact: Darren Spinck, 202-669-4418, [email protected]
SOURCE Bailey Gary PC
NY Times Moscow reporters get Pulitzer
http://rt.com/news/line/2011-04-19/#id8205
RT News line, April 19
Clifford J. Levy and Ellen Barry, Moscow-based reporters for the New York
Times, have been awarded a Pulitzer Prize for their commentary on the Russian
justice system. The Pulitzer board gave them the award in the category of
international reporting and noted that their covering of judicial problems in Russia
“remarkably influenced the discussion inside the country.” The most prestigious
award, the coveted public service, was given to the Los Angeles Times for their
article on corruption in California. The Pulitzer Prize is one of the most
prestigious awards in journalism and literature. It was started in 1917 by Joseph
Pulitzer and is now administered by Columbia University.
Ukrainian Nationalists Picket Russian Embassy In Kyiv
http://www.rferl.org/content/ukrainian_nationalists_picket_russian_embassy_in_k
yiv/9498437.html
Ukrainian nationalists submit a petition to the Russian Embassy in Kyiv
demanding more rights for ethnic Ukrainians living in Russia.
April 19, 2011
KYIV, April 19, 2011 -- Some 50 Ukrainian nationalists have picketed the
Russian Embassy in Kyiv to demand that the rights of ethnic Ukrainians in Russia
be respected, RFE/RL's Ukrainian Service reports.
The organizers of the rally on April 18 say the Ukrainian minority in Russia is
deprived of the right to education in the Ukrainian language, but in Ukraine ethnic
Russian children can attend Russian-language schools.
The picketers held placards saying such things as "We Shall Not Give Our
Sovereignty to the Kremlin!" "Down with Russian Imperialism!" and "Moscow,
Repent!"
The protesters also displayed the banners of the Ukrainian National-Patriotic
Liberty movement, the People's Movement of Ukraine, the Ukrainian Nationalists'
Congress, and the Ukrainian flag.
Nobody came out of the Russian Embassy to talk to the protesters, who managed
to give their petition to the security officers to pass on to embassy officials.
Activists from the Ukrainian National-Patriotic Liberty movement told journalists
that they will picket the Russian Consulate in the Black Sea port of Odesa today.
The protest actions are part of a so-called "Week of Solidarity with Ukrainians in
the Russian Federation."
Tajik-Russian border guard pact expected
http://centralasiaonline.com/cocoon/caii/xhtml/en_GB/features/caii/newsbriefs/20
11/04/18/newsbrief-03
Staff Report
For CentralAsiaOnline.com
2011-04-18
DUSHANBE – Tajikistan and Russia have completed work on a draft agreement
governing the presence of Russian border guard advisers and will sign the treaty
soon, Tajik Deputy Foreign Minister Nizomiddin Zokhidov said April 18. The
present agreement expires this year.
Tajikistan has guarded its borders on its own since 2005, with Russia basing
advisers in Dushanbe.
Uzbekistan is not hindering passage of Tajik-bound freight through its territory at
this time, Zokhidov added. In past months Tajikistan complained that Uzbekistan
delayed Tajikistan-bound freight to block construction of the Rogun hydroelectric
dam.
Russia lifts warning against travel to Japan over disaster
http://www.istockanalyst.com/business/news/5070467/russia-lifts-warningagainst-travel-to-japan-over-disaster
Monday, April 18, 2011 10:36 PM
MOSCOW, Apr. 18, 2011 (Kyodo News International) -- Russia on Monday
lifted its advisory against travel to Japan issued after the March 11 earthquake and
ensuing nuclear crisis in the country, but urged its nationals to continue refraining
from visiting disaster-hit areas in Japan.
The Foreign Ministry cited the gradually normalizing situation in Japan, the
release of a road map for bringing the nuclear crisis at the crippled Fukushima
nuclear plant under control and normal levels of radiation in Tokyo.
The Russian Foreign Ministry issued the advisory not to visit Japan a day after the
massive earthquake and ensuing tsunami hit northeastern Japan.
The head of Russia's Federal Medical-Biological Agency Vladimir Uiba then
visited Japan with other nuclear experts to survey the impacts of the nuclear
accident.
On Friday in Tokyo, Uiba said he would recommend that the Foreign Ministry lift
its advisory against travel to Japan as his team did not find abnormal levels of
radiation during its trip.
He said no problems were detected among either officials at the Russian Embassy
in Tokyo or Russians who were checked after returning from Japan following the
start of the nuclear crisis at the Fukushima Daiichi power plant.
But Uiba said he would recommend that the ministry continue advising Russian
nationals to stay out of the 30-kilometer zone around the Fukushima facilities,
where local residents have been ordered to evacuate or stay indoors.
09:49
Radioactive cars from Japan found at Nakhodka Port
http://www.interfax.com/news.asp
09:13
Radiation levels normal in Russia's Far East
http://www.interfax.com/news.asp
AEM deal with UAE's Dodsal for India factory
http://indrus.in/articles/2011/04/18/aem_deal_with_uaes_dodsal_for_india_factor
y_12412.html
April 18, 2011
Vladimir Dzaguto, Kommersant
In a first of sorts, Russia’s Atomenergomash (AEM) strikes a deal with UAE's
Dodsal Group to create a manufacturing unit in India in 2013 at a cost of $150
million.
Russia’s Atomenergomash (AEM), a heavy equipment engineering company that
specializes in nuclear and conventional energy, plans to create a manufacturing
unit in India in 2013. Its partner in this venture will be the Dodsal Group, a
multinational based in the United Arab Emirates. This is the first project of its
kind for Russian producers of energy equipment. AEM, a division of the state
atomic energy concern Rosatom, may consequently count on having the status of
an Indian producer. This in turn will allow it to increase its share in contracts to
build nuclear power stations in India. India has made a high degree of localization
a requirement.
Atomenergomash may become the first Russian company to export the production
of power equipment abroad. On April 13 AEM confirmed that it would be ready
by 2013 to create in India a manufacturing unit to produce nuclear power
equipment for nuclear power stations, thermal energy and the oil-and-gas
industry. Its partner in this enterprise will be the diversified multinational Dodsal
Group. Investment in the project has been estimated at $150 million.
The Dodsal Group is involved in engineering power stations, extracting gas and
oil, and building turbodrives. Although Dodsal is headquartered in Dubai, the new
joint venture will be based in India and do most of its work there. In March
Dodsal acquired the Chennai-based company AE&E I.D.E.A., which specializes
in power engineering.
Joint projects by Russian and foreign companies in the field of power machinery
construction have recently become a widespread practice. But in most cases they
involve the creation in Russia of factories where the technology of the foreign
partner is used. AEM already has a project of this kind with TVEA (a producer of
power-supply equipment); future cooperation with this Chinese company may
include the production of transformers in Russia. Moreover, at the end of March,
AEM announced a partnership with the British division of the Korean Doosan
Group, which makes equipment for thermal energy (this would be limited to
deliveries of manufactured articles to Russia). In 2007 AEM created a joint
enterprise with the French concern Alstom to produce low-speed turbines and
generators for nuclear power stations. Similar projects exist elsewhere. FSK and
Hyundai Heavy Industries, for example, have plans to build a factory to
manufacture energy-supply equipment in Primorye. Inter RAO EES and
Rostekhnologia have a project with General Electric to localize the production of
gas turbines. In 2009 the MRSK holding made plans to create a joint enterprise
with Shanghai Kirtun to create power-supply equipment.
But all these projects are primarily oriented toward the Russian market and the
modernization of domestic power engineering. The aim of their AEM-Dodsal
venture is to deliver equipment to India. Vladimir Kashchenko, AEM’s Chief
Executive Officer, considers that “the holding’s scientific-industrial base allows it
to compete in leading power-equipment markets, such as India.” As early as last
year Mr. Kashchenko announced plans to enter the Indian market, but then it was
a question of buying equipment-manufacturing assets. Later he explained that he
had in mind the localization of nuclear-power-equipment manufacturing, and
added that India “is very interesting for the development of coal generation.”
The localization of production in India may allow the joint AEM-Dodsal venture
to be considered a local manufacturer and to lay claim to part of the orders for
building Russian-designed nuclear power plants. Rosatom is currently completing
construction of the first two reactors at the Kudankulam nuclear power plant, and
has agreed to build two more. Meanwhile, the overall portfolio of Indian orders
for Rosatom-built reactors may add up to as many as 18. At the same time,
according to the contract, at Kudankulam Russian enterprises will receive up to
50% of the of the total volume of work, while 30% will go to local companies.
Russians start questioning Polish witnesses of Smolensk air crash
http://english.peopledaily.com.cn/90001/90777/90853/7354859.html
14:29, April 19, 2011
A Polish witness to the April 10, 2010 Smolensk plane crash testified at the
Warsaw Military Prosecutor's Office on Monday, local media reported.
Three Russian prosecutors, present during the interrogation, had the right to ask
him questions, spokesperson of the military prosecutor's office Colonel Zbigniew
Rzepa told the PAP news agency.
The prosecutors of the Russian Federation Investigation Committee arrived in
Warsaw on Saturday to take part in the questioning of Polish witnesses for the
needs of the Russian investigation into the Polish plane crash.
Until April 30 the Russian prosecutors are to take part in the questioning of more
than 20 witnesses, the spokesperson said, refusing to divulge the names of the
witnesses.
Russian prosecutors may be willing to talk to the media next week, the
spokesperson said.
The questioning of Polish witnesses is analogous to the questioning of Russian air
traffic controllers at Severny airport near Smolensk in February, which was
attended by two Polish prosecutors.
On April 10, 2010, a Polish government Tupolev-154M carrying then president
Lech Kaczynski, his wife and a large delegation of VIPs crashed near a military
airfield in Russia's Smolensk, killing all of the 96 people on board. The delegation
was on its way to the Russian locality of Katyn for anniversary ceremonies of the
1940 mass executions of some 22,000 Polish POWs by the Soviet Union in the
nearby Katyn Forest.
Earlier this year, Russia's Interstate Aviation Committee (IAC) investigating the
crash said in its report that the main cause of the crash was the Polish crew's
decision to land in a bad weather, and refusal to divert to another airport.
Poland, for its part, said the Russian report on the plane crash was incomplete and
erroneous. Polish officials promised that Poland will carry out its own
investigation and will release a report as soon as possible.
Source: Xinhua
Russia-Poland rapprochement against a backdrop of contradictions
http://en.rian.ru/valdai_op/20110419/163591474.html
09:15 19/04/2011
It is now a year since the Smolensk crash. This anniversary was marked by
ongoing conflicts in Russian-Polish relations. The Polish Foreign Ministry has
expressed discontent with the report by the Interstate Aviation Committee on the
causes of the disaster. The opposition party Law and Justice, headed by Jaroslaw
Kaczynski, sharply criticized both President Bronislaw Komorowski and Prime
Minister Donald Tusk being too soft on Russia. Warsaw protested against the
Smolensk authorities replacing the memory plaque, since the new one makes no
mention of the fact that the events of 1940 at Katyn should be considered an act of
“genocide”. It was reported that, due to this, President Komorowski might even
refuse to lay flowers on the grave.
The Polish President went ahead and laid the flowers, though. But the controversy
surrounding the Smolensk crash still remains. The Polish authorities are
demonstrating growing displeasure with the Russian version of what caused the
crash. In Russia, by contrast, there is growing dissatisfaction with the stance
Warsaw has taken. Russians view it as simply looking for any excuse to stoke
international conflict. Bluntly: there is, as yet no sign of the Russian-Polish
rapprochement anticipated a year ago.
In general, last year was quite positive for Russian-Polish relations. Over the past
six months discussions have been held about energy issues, the “Katyn affair”, the
opportunity for increased contact between the two countries’ military chiefs,
transportation projects and the “European missile defense system” to name but a
few. At their meeting in Warsaw, December 6, 2010, Presidents Dmitry
Medvedev and Bronislaw Komorowski signed a package of documents: from the
Declaration on Cooperation for economic modernization to the Memorandum of
Understanding on the establishment of the Center for Russian-Polish dialogue.
The government of Donald Tusk declared its intention to build “a new format of
relations” with Russia.
However, these changes in rhetoric have not caused any change in the two states’
strategic priorities. On the eve of the NATO summit in Lisbon (19-20 November
2010) President Komorowski confirmed the inviolability of the basic principles of
Polish foreign policy, namely: the perception of Russia as a potential threat;
assistance in preserving U.S. military presence in Europe, and assistance in
integrating former Soviet republics into “Transatlantic institutions.” During the
Warsaw meeting Komorowski also added that Poland would only countenance
cooperation with Russia in the broader context of relations with the EU and
NATO. Besides, Warsaw did not withdraw from the plan to allow U.S. TMD
systems to be based on its territory or “the promotion of democracy” in Ukraine
and Belarus. Such moves prompted hesitant but harsh criticism from Russia.
Some analysts see these trends as being part of the two countries’ complicated
historical legacy. Yet, the differences between Moscow and Warsaw could well
have much more serious implications.
After the collapse of the Warsaw Pact, Poland saw itself as being the leading state
in East-Central Europe. The objective clash of interests between Warsaw and
Russia has its roots in that perception. First, Poland is interested in seeing a
strengthened U.S. presence in Eastern Europe and NATO mechanisms. Poland’s
political elite feel they need a powerful ally to counterbalance Russia and
Germany.
Second, Poland’s leadership considers their country the “engine” for other
Central- Eastern European countries’ integration into the EU and NATO. Russian
policy, naturally, is seen in Warsaw running counter to this trend.
Third, Poland is opposed to any expansion in Russian-German dialogue. Over the
last 20 years, the Polish Foreign Ministry has twice protested against bilateral
contacts between Moscow and Berlin. The first case related to the two countries’
independent discussion of energy security issues without involving the EU (in
2007) and the second case related to bilateral Russian-German collaboration on
the draft European Security Treaty (in 2009). Polish media compared these
bilateral Russia-Germany initiatives with the Molotov-Ribbentrop Pact and, even,
with the division of the Rzeczpospolita of the 18th century. This rhetoric may
seem archaic, but it conceals the Polish elite’s fear of a rapprochement between
Russia and Germany.
Fourth, Poland considers itself an important hub through which Russia transports
its energy resources to Central-Western Europe. Thus, lobbying the “European
Energy Security” project, Warsaw wants to win concessions from Russia over
transit conditions and prevent Russian hydrocarbons bypassing Poland. So, the
emphasis on “historical wrongs” is seen in Warsaw as a means of putting pressure
on Russia to force it to make concessions.
These contradictions in the Russian-Polish relations are nonfatal. But any
rapprochement between Moscow and Warsaw is likely to be fragile. Russia’s aim
is to push Poland to develop a more constructive position within the EU and on
the Euro-Atlantic security initiative. Realistically, for the time being, this is the
minimum that can be expected from the two countries’ bilateral relations in the
near future.
Alexei Fenenko is Leading Research Fellow, Institute of International Security
Studies of RAS, Russian Academy of Sciences
This article first appeared in Nezavisimaya Gazeta, 14 April, 2011
Sargsyan: Armenian-Russian forum to help find new cooperation models
http://www.panarmenian.net/eng/economy/news/67578/
April 19, 2011 - 11:50 AMT 06:50 GMT
PanARMENIAN.Net - Armenian President attended the opening ceremony of
the first-ever Armenian-Russian interregional forum, which kicked off in Yerevan
on April 19, bringing together regional authorities and businessmen from both
countries.
“Armenian-Russian partnership is characterized by special economic relations and
I’m hopeful that this event will help find new cooperation models,” Serzh
Sargsyan said in his remarks. “Currently, there are 1400 enterprises with Russian
capital operating in Armenia with US$3 billion investment portfolio, which tends
to increase.”
For his part, head of the Russian presidential administration Sergei Narishkin read
out President Dmitry Medvedev’s congratulatory telegram. He also noted that
trade turnover between the two countries totaled US$860 million last year.
Armenia-Russia cooperation expands actively- Naryshkin
http://news.am/eng/news/55971.html
April 19, 2011 | 11:57
Russia provides assistance to Armenia’s economic sector actively, Head of
Russian Presidential Administration Sergei Naryshkin stated at the first RussianArmenian interregional forum in Yerevan on Tuesday.
He noted that Russian investments in Armenia’s economy have made U.S. $
2.8bn since 1991, while trade turnover between the two countries reached U.S. $
860m in 2010. There are 1400 enterprises in Armenia with Russian capital.
As regards the cooperation between regions of the two countries, Naryshkin
stressed that today about 70 entities of the Russian Federation are involved in the
Russian-Armenian cooperation and the number of partner-regions is constantly
increasing.
He stressed the fields of energy, transport and telecommunications among issues
of bilateral interest.
President sends greetings to 1st Russia-Armenian regional forum
http://www.itar-tass.com/eng/level2.html?NewsID=16166190&PageNum=0
19.04.2011, 11.08
YEREVAN, April 19 (Itar-Tass) - Russian President Dmitry Medvedev sent
greetings to the participants in the first Russian-Armenian regional forum that
opened on Tuesday.
"The regional ties between our countries make a noticeable contribution to the
traditionally friendly and good neighborly Russia-Armenian relations," Medvedev
noted, "production cooperation and trade, contacts in the fields of education,
culture, sports and tourism promote strategic partnership and allies' interaction
between the two states, and help the rapprochement of our peoples."
"Today, Russia and Armenia are facing common tasks in many ways. Among
them are modernization and further upturn of the national economies, increasing
the quality of people's life, and more active promotion of integration in the
territory of the Commonwealth of Independent States," Medvedev said.
He is confident that the ideas and proposals worked out by the forum will help
their effective implementation and further promote regional cooperation and help
implement promising business and humanitarian projects.
The Russian leader wished the participants in the forum "fruitful work, interesting
communication and new successes."
On Tuesday, visiting Kremlin chief of staff Sergei Naryshkin laid a wreath to the
monument to the victims of the Armenian genocide in the Ottoman Empire.
Naryshkin will take part in the form on April 18-20. The memorial to the
genocide victims was built in 1967 on the Tsitsernakaberd hill, which means
"swallow's fortress."
After the wreath-laying ceremony, Naryshkin, accompanied by chief of staff of
the Armenian president Karen Karapetyan, walked down to the Eternal Fire plaza.
Yerevan hosts Armenian-Russian inter-regional forum
http://vestnikkavkaza.net/news/economy/13041.html
The Armenian-Russian forum on inter-regional cooperation has opened in
Yerevan. The first plenary session opened with the participation of Armenian
President Serzh Sargsyan and the head of the Russian presidential
administration Sergey Naryshkin.
Russian President Dmitry Medvedev sent a letter to the forum, read out by
Naryshkin. Russia and Armenia have common goals, including modernization
and development of their national economies, improvement of living
standards and promotion of integration processes on CIS territory. Solutions
formed at the forum will contribute to realization of inter-regional cooperation
and business and humanitarian projects, the letter reads.
The inter-regional forum is held at the sports and concert hall of Karen
Demirchyan in Yerevan. The sides plan the signing of inter-governmental and
inter-regional deals, import-export contracts and agreements on opening new
enterprises. One of the main documents is the memorandum on the South
Caucasus Railway and the government of Armenia, on construction of a 32km road section of Vanadzor-Fioletovo.
One of the main events of the forum is the handing over of the first Sukhoi
Superjet 100 to Armavia at Zvartnots airport in Yerevan. Another event is the
opening of a Center for Diagnostics of Infrastructure on the South Caucasus
Railway in Yerevan and a memorial complex in Armenia to Russian soldiers
who died in the Battle of Oshakan on August 17, 1827, near Echmiadzin
(Russian-Persian war 1826-1828).
The forum was organized by Rossotrudnichestvo (Federal Agency for the
Commonwealth of Independent States, Compatriots Living Abroad and
International Humanitarian Cooperation) and the fund for development of the
“Institute of Eurasian Studies”, supported by the administrations of the
Russian and Armenian presidents.
Monument to Russian soldiers to be unveiled in Oshakan
http://www.aysor.am/en/news/2011/04/19/oshakan-monument/
Tuesday, April 19
A monument to Russian soldiers who were killed in Oshakan battle (1827) of the
Russian-Persian war will be inaugurated Tuesday, April 19, in Oshakan, Armenia,
attended by head of the Russian Presidential Administration Sergey Naryshkin.
The inauguration ceremony will be held on the sidelines of the first RussianArmenian interregional forum titled “To New Achievements of Interregional
Cooperation in the Russian- Armenian Allied Relations.”
The renovation of Oshakan memorial complex started in early 2011 on the
initiative of the Russian Ambassador to Armenia Vyacheslav Kovalenko. The
renovation works were implemented by the “Matter of Honor" Russian-Armenian
benevolent organization headed by Andranik Nikoghosyan.
This is the second major protect of the “Matter of Honor” organization on
preservation of the historical memory of the two peoples. The first project was the
renovation of the Hill of Honor in Gyumri, military cemetery of Russian officers
who perished in the Russian-Turkish wars of XIX century.
Oshakan monument featuring the selfless deed of Russian warriors in Armenia is
a unique symbol of the community and centuries-old friendship between the two
peoples, the “Matter of Honor” said.
First batchj-produced Superjet 100 to be handed over to Armenian airline
http://www.itar-tass.com/eng/level2.html?NewsID=16165574&PageNum=0
19.04.2011, 07.12
YEREVAN, April 19 (Itar-Tass) - Russian aircraft manufacturing corporation
Sukhoi Civilian Airlines /GSS/ is expected to hand over to the customer – the
Armenian airline Armavia – the first batch-produced Sukhoi Superjet 100.
All in all, Armavia will get two Superjets.
April 12, the GSS and Armavia signed an inspection certificate for the jet, which
certifies that the Superjet is being transferred to Armavia with a full package of
documents and service documentation.
The airliner matches the specified operational characteristics, does not have
operational limitations, has full airworthiness and is ready for an immediate
release on to commercial routes, both international and domestic ones.
The Superjet is due to substitute for the old Soviet-era Tupolev-134 jets, which
are still in operation.
The GSS has a confirmed portfolio of 170 orders for the Sukhoi jets. The first
airworthy machine in the family was shown to the public September 26, 2007, at a
factory in the Russian Far-Eastern city Komsomoslk-on-Amur and it was also
there that it took off on its maiden flight May 19, 2008,
It is expected that the first Superjets will be supplied to Russia’s major line
Aeroflot soon.
Along with this Russian Transport Minister Igor Levitin said last week that
Aeroflot’s management is getting ready to issue sanctions against the GSS, which
disrupts the deadlines for the deliveries of new jets.
He recalled that, according to initial plans, the first Sukhoi Superjets 100 were to
reach Aeroflot at the end of 2010, but a delay in the obtaining of a certificate
prompted the company top postpone the deadline several times.
“The delivery dates indicated in the contract have expired and now the executives
are drawing up on penalties,” Levitin said. “They will first send them to the GSS
board of directors and then to the government.”
He also said Aeroflot specialists had questions regarding the technical condition
of the new jets.
A spokesman for Aeroflot said along with this that Superjets have been included
in the airline’s summer flights schedules and the management is anxious to get
them.
Deputy Speaker: Georgia not to change its position regarding Russia's
accession into WTO
http://en.trend.az/news/politics/1863426.html
19.04.2011 11:10
Georgia, Tbilisi, April 19 / Trend, N. Kirtskhalia /
Georgia's position regarding Russia's accession into the WTO will not change,
Georgian First Deputy Speaker Mikheil Machavariani said.
The Georgian side’s requirements in connection with Russia's WTO membership
are based on the fundamental principles of this organization, Machavariani told
reporters.
"We are in talks with Russia based on the norms of the WTO charter. These
norms envisage the coincidence with economic borders and customs checkpoints.
At this stage Russia does not meet any rule, at the same time Georgian products
are banned on the Russian market only because they are Georgian products,"
Machavariani said.
He said that the politicization of Russia’s WTO membership will not happen.
Russia has been seeking WTO membership since 1993. The main obstacle for
Russia's accession is Georgia's position, which left the negotiation process on
Russia’s accession into the WTO in late April 2008 in protest against the Russian
President’s orders to lift economic sanctions against Abkhazia and South Ossetia.
There are no diplomatic relations between Russia and Georgia. They were severed
after the 2008 war and recognition of South Ossetia and Abkhazia by Moscow.
Georgia demands Russia return Pirosmani's painting
http://en.trend.az/news/society/1863610.html
Georgia, Tbilisi, April 19 / Trend N.Kirtzkhalia /
The Georgian Prosecutor General’s Office intends to demand the return of Niko
Pirosmani’s painting "Black Lion" from Russia, Georgian Deputy Chief
Prosecutor David Sakvarelidze said.
"We will demand that the painting be returned to Georgia through the Swiss
Embassy," he said.
The Georgian law enforcement bodies report that the painting was stolen from the
family of Apolon Kutateladze in 1993. Kutateladze was the rector of the Art
Academy in the last decade of the 20th century. ‘Black Lion’ has been included
on the international wanted list since 2010.
Acting Head of the Russian Federal Culture Agency Viktor Petrakov confirmed
that the painting exhibited at the Russian Antiques Salon in Moscow was indeed
stolen, but then legally purchased from the artist's family. He said that they have
copies of all of the documents.
The painting was exhibited for three days. After the scandal it was removed and
returned to the owner, whose name was not disclosed.
April 19, 2011 11:44
Some foreign states fail to execute Russian legal aid requests - top
investigator
http://www.interfax.com/newsinf.asp?id=237570
MOSCOW. April 19 (Interfax) - The director of the Russian Investigative
Committee, Alexander Bastrykin, has criticized a number of foreign countries for
delaying the execution of international legal assistance requests, or even refusing
to implement such requests altogether.
"A large number of our applications have not been executed or have been
executed partially," Bastrykin told Russian Foreign Ministry employees.
"Such a situation can be observed with our requests forwarded, for example, to
the British Virgin Islands, Gibraltar, the Republic of Cyprus, the Isle of Man and
a number of other states," he said.
The Investigative Committee's analysis of the results of the execution of legal
assistance requests sent to foreign countries regarding criminal cases currently
being handled by the committee "has shown that it takes these states from six
months to two years to implement the requests, which is quite a long period of
time," Bastrykin said.
The committee's work "requires cooperation with diplomatic representative
offices abroad, as well as additional efforts primarily aimed at reducing the time
of implementing international legal aid applications and improving the quality of
their execution," he said.
Recently the number of such requests has grown seriously, the official said.
In 2010 the Russian Investigative Committee forwarded 538 legal assistance
requests to foreign countries.
Russia, for its part, executed 602 legal aid requests received from other states.
Russian investigators traveled abroad 87 times last year to collect evidence in
different criminal cases.
tm
Bout's defense appeals his trial in the United States
http://en.rian.ru/world/20110419/163589873.html
05:19 19/04/2011
Lawyers for alleged Russian arms dealer Viktor Bout, held in a U.S. prison on
conspiracy charges, have lodged an appeal on the illegality of their client's
prosecution in the United States.
The appeal claims, in particular, that the U.S. government does not have
jurisdiction to consider criminal cases over the offences that have been committed
outside the U.S.
The prosecutors must reply to the 50-page document, submitted on Monday,
within two weeks.
Former Soviet military officer Bout was arrested in Thailand in March 2008
during a sting operation led by U.S. agents. He was extradited to the United States
in November, 2010, after spending more than two and half years in Thai prisons.
Bout, 44, is being held in a New York prison while he awaits trial in the U.S.
District Court for the Southern District of New York in October on charges
including conspiring to supply arms to terrorist groups and kill U.S. nationals. He
denies all the charges against him.
The alleged arms dealer, dubbed "The Merchant of Death," could face anything
from 25 years to life in prison if convicted.
The U.S. authorities have allegedly asked another Russian citizen, cargo pilot
Konstantin Yaroshenko who is held in the United States on drug trafficking
charges, to testify against Bout in exchange for a milder sentence and even a
possible U.S. citizenship.
The U.S. Drug Enforcement Agency arrested Yaroshenko in Liberia last May.
Four metric tons of cocaine were seized in the bust.
NEW YORK, April 19 (RIA Novosti)
09:23
Yury Dolgoruky to be ready for Bulava trials by start of navigation season Sevmash
http://www.interfax.com/news.asp
GOOGLE TRANSLATION
Kucherena and Resnik to certificate MUP
http://www.bbc.co.uk/russian/rolling_news/2011/04/110418_rn_mvd_qualificatio
n.shtml
Last Updated: Tuesday, April 19, 2011, 07:01 GMT 11:01 MCK
Russian President Dmitry Medvedev has included in the committee on
recertification MUP members of the Public Chamber.
The commission included a lawyer Anatoly Kucherena and chairman of the
Public Council under the Ministry of Internal Affairs Minister Ilya Reznik.
Last month, human rights activists have filed a complaint with the Russian
Supreme Court, requesting to include in the committee of representatives of civil
society.
According to human rights, such a commission when its members are the only
employees of state agencies, contrary to the Constitution and federal laws.
CORRECTED GOOGLE TRANSLATION
Kommersant: the brother of Maryam Sharipova killed in Dagestan
http://www.bbc.co.uk/russian/rolling_news/2011/04/110418_rn_kommersant_bro
ther_sharipova.shtml
Last Updated: Tuesday, April 19, 2011, 03:53 GMT 07:53 MCK
One of the four militants killed on Monday was identified as the relative of the
bomber Maryam Sharipova, the Kommersant newspaper reported.
Earlier, the National Antiterrorism Committee said that during a special operation
in Dagestan one of the militant leaders in the North Caucasus Israpil Validzhanov
was killed, who was on the federal wanted list since 2006.
On Monday night, investigators previously identified the second dead militants as
Magomed Adalaev brother of the bomber that blew herself up at the metro station
Lubyanka in March last year.
Identity of the two other militants that were killed has not yet been established.
Militants killed in Dagestan are being identified
http://vestnikkavkaza.net/news/politics/13038.html
The police of Dagestan are identifying the two militants killed in a special
operation in Makhachkala on Monday evening, RIA Novosti reports.
The militants were surrounded on 43 Dachnaya Street in Kyakhultay on
Monday at 19.00 (Moscow time). They refused to surrender, opened fire and
attempted to escape. No police officers were injured.
A counter-terrorism regime came into force at 19.45 (Moscow time). The two
militants burned inside the apartment they were renting.
The National Counter-Terrorism Committee said that four militants were killed
in Dagestan on Monday. They include a militant leader Israpil Valizhanov,
nicknamed Amirhasan, appointed by Doku Umarov in October 2010.
One of the other militants is a cousin of suicide-bomber Maryam Sharipova,
who blew up the Lubyanka subway station in Moscow, Kommersant reports.
Magomed Adalayev, a local from Balakhan, was identified among the dead
militants.
Sharipova activated the bomb in the Moscow subway on March 29. She was
the wife of a Dagestani militant leader, Magomedali Vagabov. Vagabov was
killed in Dagestan in August 2010.
Two militants destroyed near Makhachkala
http://www.itar-tass.com/eng/level2.html?NewsID=16166365&PageNum=0
19.04.2011, 11.52
MAKHACHKALA, April 19 (Itar-Tass) -- Two militants were destroyed during a
special operation near Makhachkala.
As a source in Dagestan’s law enforcement bodies told ITAR-TASS, “two
militants were blocked in a private houses in Dachnaya Street of the village of
Kyakhulai at 19.00 Moscow time.” “In answer to the offer to surrender they
opened fire at law enforcers and tried to escape. The counterterrorist regime was
introduced in the village. As a result of an armed clash, a fire broke out in the
house. The house was burnt down,” the source said.
According to his information, while examining the site of the incident, the bodies
of two militants and arms were found. There are no victims among law enforcers.
Criminal proceedings were instituted.
2 militants killed in Dagestan
http://english.ruvr.ru/2011/04/19/49130814.html
Apr 19, 2011 09:35 Moscow Time
Two militants, one of them a woman, were killed by police commandos and
security forces outside the Dagestani capital Makhachkala as part of an overnight
sweep.
2 militants killed in Makhachkala suburb
http://english.ruvr.ru/2011/04/19/49126561.html
Apr 19, 2011 00:20 Moscow Time
According to preliminary data, 2 militants have been killed in a Makhachkala
suburb.
In the course of a special operation the house where militants were hiding out
caught fire. After the blaze is extinguished, task forces will enter the house and
details of the operation will become known.
The special operation was conducted in the village Kyahulay. A counter-terrorism
operations regime is in place there.
Russian police kills 7 militants in North Caucasus region
http://www.china.org.cn/world/2011-04/19/content_22391770.htm
Xinhua, April 19, 2011
Russian police forces killed seven militants in separate operations in two of
Russian republics in North Caucasus region, according to local media reports.
In Chechnya, local law enforcement agents conducted a special operation near
the district of Shatoi and killed three militants, the reports cited Chechen leader
Ramzan Kadyrov as saying.
"One of the slain militants had been identified as a resident of Grozny
(Chechnya's capital city)," Kadyrov was quoted by Interfax news agency as
saying.
In Dagestan, police killed four militants, including a militant leader Israpil
Validzhanov, in Levashinsky region at dawn Monday.
Citing Russia's National Anti-Terrorist Committee, Itar-Tass news agency said
the militants fired at police officers who had asked them to stop their cars. Four
of the militants were killed in the exchange of fires.
Violence is common in the North Caucasus republics of Chechnya, Dagestan and
Ingushetia with militants frequently mounting attacks targeting police officers
and authorities.
Moscow has vowed to bring stability to the region via improving social services
and raising pensions and salaries as measures to tackle corruption and terror
infiltration.
RUR 1 billion to be invested into the energy producing infrastructure
objects in Dagestan South
http://www.riadagestan.com/news/2011/04/19/6314/
19.04.2011 , 10:42
Makhachkala, April 19, 2011. In the current year the OJSC “Federal Network
Company of United Energy System”, branch “Magistral Power Grids of South”
intends to allocate RUR 1 billion for the implementation of repair works and
target programs in the southern region. In 2010, the company spent RUR 840
million under the same priority directions. In 2011 within the repair program the
company’s specialists are expected to clear 64 hectares of trails, to replace 4,295
insulators, 140 remote struts, to reinforce 140 towers and to renovate 1074
disconnectors.
The target program2011 also includes the replacement of 32,250 pieces of
porcelain insulation, 176 kilometers of ground wire and 2,428 units of supportcore exclusion. During the year of 2011, more than RUR 7 million will be spent
for comprehensive examination and special diagnostic of facilities in deteriorated
condition.
Each year the target and repair programs are formed on the basis of data received
from diagnostic equipment in the substations and transmission lines. Special
attention is given to facilities and technical equipment in need of prompt
replacement or reconstruction. The implementation of the target programs along
with the repair works serve for complementary measures to ensure the reliability
of power facilities.
Duma to back bill protecting children's right in divorce
http://www.itar-tass.com/eng/level2.html?NewsID=16166041
19.04.2011, 10.40
MOSCOW, April 19 (Itar-Tass) - The State Duma lower house of the Russian
parliament on Tuesday will consider the 2nd, main reading of the bill expected to
put an end to "parents' wars," by regulating children’s rights during divorce.
Under the document, the courts, in reviewing parents' disputes over children will
have to determine the child’s place of residence during legal proceedings from the
moment a court action is filed. The decision should necessarily take into account
the children's opinion and involve guardianship bodies.
An important novelty proposed by the new legislation is the introduction of the
norm on penalties, such as fines (from 2,000 roubles to 3,000 roubles) for
violating children's rights, to be paid by parents, close relatives or representatives
of guardianship bodies.
Penalties include deprivation of the parent's right to see his or her child, deliberate
concealment of the child's whereabouts, and obstruction to the parent's using his
right to bring up his or her children.
One of the amendment proposed to the 2nd reading specifies that if a parent
reoffends within a year, the sum of the fine will increase to 4,000 to 5,000
roubles. An administrative arrest for up to 15 days can apply as well.
Earlier, the United Russia faction at the State Duma said it objected to the
proposal to introduce criminal responsibility to far as ten years in prison in the
cases related to "parents' wars" during divorces.
The amendments were introduced in the runup to the 2nd reading of the bill, by
representatives of Just Russia.
"Our faction will not support the amendments to the legislation, whose authors
suggest arrest or excessive punishment for parents, such as imprisonment. You
don't want cruelty in these matters. Ten years in jail is too much," deputy
chairman of the house committee on civil, criminal, arbitration and procedural
legislation Andrei Nazarov stated.
The lower house will also consider the 2nd reading of the bill extend the term of
office for Public Chamber members from two to three years.
The legislation was proposed by a group of lawmakers led by well-known
political scientist, former Public Chamber member Sergei Markov.
They believe two years are insufficient for fulfilling the tasks facing PC embers.
"It is shown by the Public Chamber's working experience since its first
convocation in 2005," a lawmaker said.
The State Duma will consider the government bill limiting the number of licensed
activities. The measure is explained by the availability of other methods of
regulation, such as accreditation, performance review, control and supervision
over compliance with technical regulations, mandatory certification and
conformity declaration. The document annuls licensing of 17 kinds of activities,
including medical and pharmaceutical ones, from January 1, 2013.
Prosecutors to appeal verdict in trial of Jehovah's Witnesses leader
http://en.rian.ru/russia/20110419/163590730.html
07:54 19/04/2011
Prosecutors in Russia's Republic of Altai said on Tuesday they will appeal a
decision of a court in the town of Gorno-Altaisk to clear the leader of a local
branch of Jehovah's Witnesses of charges for circulating extremist materials.
The court acquitted Alexander Kalistratov on April 14 citing the lack of evidence.
"We categorically disagree with Kalistratov's acquittal and will lodge an appeal
with the Supreme Court of the Republic of Altai to order new hearings of this
case," a spokesman for the local prosecutor's office said.
Alexander Kalistratov, 34, has been accused of disseminating banned literature
after he shared some of the group's publications with the residents of GornoAltaisk.
According to investigation, Kalistratov disseminated books, brochures and
magazines, which allegedly "incited religious enmity and hatred," between
October 2008 and December 2009.
The trial started in October 2010 with the testimony of witnesses on the side of
the prosecution.
The investigation involved the analysis of 48 religious articles, seized during the
probe, with the help of experts in linguists, philosophy and religious studies.
Kalistratov faced 160 hours of community works if convicted.
The Jehovah's Witnesses, which has some seven million followers worldwide and
over 200,000 in Russia, have already been banned in a number of Russian regions
and in some former Soviet republics.
Last June similar charges were laid against the group in the southwestern Siberian
city of Omsk.
In 2009, the Russian Supreme Court's judicial chamber for civil cases upheld a
regional court ruling to ban the organization's branch in the southern Russian city
of Taganrog.
The Jehovah's Witnesses branch in the Russian capital was dissolved by district
court ruling in 2004, but the European Court of Human Rights declared the
decision illegal last June.
GORNO-ALTAISK, April 19 (RIA Novosti)
April 19, 2011 10:52
Court rejects complaint against prosecution of Bank of Moscow first vice
president
http://www.interfax.com/newsinf.asp?id=237547
MOSCOW. April 19 (Interfax) - Moscow's Tverskoi court has ruled that the
prosecution of Bank of Moscow First Vice President Dmitry Akulinin in the
criminal inquiry into a fraudulent extension of a loan, is lawful.
"Defense lawyer Timofei Gridnev's complaint against the order by senior
investigator of the Interior Ministry's Investigative Committee to prosecute
Akulinin as a defendant in the case in compliance with Article 125 of the
Criminal Code, has been rejected," Tverskoi Court's press secretary, Yekaterina
Ilyina, told Interfax on Tuesday,
The defense lawyer filed the complaint on April 7, she said,
Neither Bank of Moscow President Andrei Borodin, nor his defense lawyers have
filed a similar complaint with the court, Ilyina said.
A source close to Borodin told Interfax early in April that Borodin had left Russia
in connection with a criminal investigation into an about 13 billion ruble loan,
fraudulently extended to the Premier Estate company.
The money received under the loan arrangements were allegedly transferred to the
personal bank account of Inteco head Yelena Baturina.
An investigator on March 28 ruled to prosecute Borodin and his deputy Akulinin
on counts of abuse of authority. But no charges were officially brought against
them as neither of them reported to the court at an appointed time.
In Interfax source in law enforcement services later confirmed that Borodin was
placed on a wanted list on April 6.
Borodin said on April 9 that if the situation takes a negative turn he would have to
consider applying to Britain for political asylum.
Moscow's Tverskoi court on April 12 suspended Borodin and Akulinin as Bank of
Moscow president and first vice president at investigators' request.
Sd
CORRECTED GOOGLE TRANSLATION
Diplomat from Kuwait went missing in Moscow
http://www.bbc.co.uk/russian/rolling_news/2011/04/110418_rn_kuwait_diplomat.
shtml
Last Updated: Tuesday, April 19, 2011, 06:00 GMT 10:00 MCK
The representative of the Embassy of Kuwait in Russia Almansur Mishaal
Mansour went to the police claiming a missing employee.
As reported by law enforcement authorities of the capital, the third secretary of
embassy Alokaab Saleh Mohammed disappeared on the night of April 17. He was
last seen on Arbat Street, 21, when he sat in his car.
Police are conducting search of the missing diplomat.
Forest fire hazard level raised in Russia’s Far Eastern Primorye
http://www.itar-tass.com/eng/level2.html?NewsID=16166297&PageNum=0
19.04.2011, 11.35
VLADIVOSTOK, April 19 (Itar-Tass) -- Forest fire hazard level in southern
districts of Russia’s Far Eastern Primorsky Territory has been raised to “high,” a
spokesman for the territorial meteorological service told Itar-Tass on Tuesday.
The weather here has been hot, dry and windy, and meteorologists forecast no
heavy rains in the next few days.
The fire hazard level is fixed daily based on weather monitoring results.
In the past 24 hours anole, 12 wildfires with an overall area of 357.5 hectares
were reported in the Primorsky territory, all of them were extinguished.
Since the beginning of April, there have been 150 forest fires, which is far more
than at the same period last year.
Over 8,000 people left without electricity in central Russia
http://www.itar-tass.com/eng/level2.html?NewsID=16166331&PageNum=0
19.04.2011, 11.34
MOSCOW, April 19 (Itar-Tass) -- More than 8,000 people are left without
electricity in central Russian Leningrad and Yaroslavl regions because of stormy
winds, a spokesman for the Russian emergencies ministry told Itar-Tass on
Tuesday.
On Monday, strong winds caused rolling electricity cuts in settlements of the
Moscow, Leningrad and Yaroslavl regions, the spokesman said.
Electricity supplies to settlements in the Moscow region have been resumed,
while 174 settlements with an overall population of 5,923 people in the Leningrad
region and 117 settlements with a population of more than 2,100 in the Yaroslavl
region are still cut off electricity.
It is planned to resume electricity supplies to these settlements within the day, the
spokesman added.
PRESS DIGEST - Russia - April 19
http://af.reuters.com/article/metalsNews/idAFLDE73I01I20110419
Tue Apr 19, 2011 6:49am GMT
MOSCOW April 19 (Reuters) - The following are some of the leading stories in
Russia's newspapers on Tuesday. Reuters has not verified these stories and does
not vouch for their accuracy.
KOMMERSANT
www.kommersant.ru
- Russian tycoon Alisher Usmanov says in an interview that his Metalloinvest
steel and mining group and Norilsk Nickel (GMKN.MM) will "sooner or later"
become a joint holding company to lead in the global production of nickel,
palladium, platinum and iron ore.
- After three years of investigation into alleged charges of tax evasion by
businessman Vladimir Nekrasov and his partner Sergei Shnaider, prosecutors
have decided to drop all accusations and close the case for lack of evidence.
As a result of the investigation Nekrasov, the former owner of Arbat-Prestige
cosmetics retailer, lost his business worth $1.5 billion, the daily says.
VEDDMOSTI
www.vedomosti.ru
- The Finance Ministry will use an oil price of between $120 and $122 per barrel
while calculating Russia's 2012-2014 budget. This could ensure more budget
spending on social needs during 2012 presidential campaign, the daily says.
- Nekrasov, former owner of Arbat-Prestige, has no plans to claim compensation
for his lost business, the daily says. Arbat-Prestige was one of the leaders in
Russian cosmetics with a network of 90 retailers across Russia.
IZVESTIA
www.izvestia.ru
- Russia's President Dmitry Medvedev supports the approval of a law which will
allow testing of schoolchildren for drug addiction.
- Russia's Navy will take part in international military training operations in the
Baltic sea in June together with NATO representatives from 13 states, the daily
reports.
NEZAVISISMAYA GAZETA
www.ng.ru
- Russia's ruling United Russia party will decline any discussions regarding a
possible candidate for the next presidential election but will take into
consideration the opinion of party leader, Vladimir Putin, the daily says citing
party senior official Boris Gryzlov.
ROSSIISKAYA GAZETA
www.rg.ru
- Head of Russia's jails Alexander Reimer arrived on Monday to the Siberian
prison camp where former YUKOS chief Mikhail Khodorkovsky spent most of
his term.
Reimer will take part in an investigation into one of the biggest protests carried
out in a Russian prisons in which inmates set fire to cells and other premises last
Sunday.
Russian Press at a Glance, Tuesday, April 19, 2011
http://en.rian.ru/papers/20110419/163591018.html
08:32 19/04/2011
POLITICS
Communist leader Gennady Zyuganov became the first politician to announce
that he will stand in next year's presidential election. (Vedomosti)
Russian Prime Minister Vladimir Putin will have the final word in support of a
2012 presidential election candidate from the United Russia ruling party, the
chairman of the party’s Supreme Council, Boris Gryzlov, said. (Izvestia)
WORLD
Standard & Poor's has threatened to downgrade the United States' AAA credit
rating, causing chaos on the Russian stock exchange and prompting investors to
buy U.S. debt instruments and dollars. (Kommersant, Vedomosti)
Dutch electronics giant Philips has unveiled plans to make its loss-making
television business into a joint venture with the Chinese company TPV
Technology. The joint venture will be split 70/30 in favor of the Hong Kongbased business. (Kommersant)
A sharp devaluation of the national currency in Belarus is inevitable, says
Sberbank chairman German Gref and other prominent Russian banking experts.
(Vedomosti)
Ukrainian investigators demanded that ex-president Viktor Yushchenko pass a
test on the presence of dioxin in his blood or his alleged poisoning case will be
closed. (Izvestia)
ECONOMY & BUSINESS
Russia’s state budget could be adjusted if the price of oil exceeds $122 per barrel.
(Vedomosti)
Owner of Russia’s Metalloinvest Alisher Usmanov comments on the conflict
among Norilsk Nickel shareholders. (Kommersant)
A Russian Arbitration Appeals Tribunal has ruled that Russia's state-run oil giant
Rosneft must provide information on its 2009 board meetings to minority
shareholder and famous blogger Alexei Navalny taking into account the
company's confidentiality regime. (Kommersant, Vedomosti)
Russia’s Sberbank and Credit Suisse are planning to set up a direct investment
fund valued at $1 billion to invest in the Russian economy. (Vedomosti)
Wendy's, the world’s third largest fast food chain, is planning to start its business
in Russia this year, with the first restaurants opening in Moscow. (Vedomosti)
DEFENSE
Quick construction of the third Steregushchy class stealth corvette, the Boiky,
proves that the Russian shipbuilding industry is successfully recovering from
almost two decades of deep crisis. (Izvestia)
Russia will gradually introduce reforms in the conscription system that would
allow draftees to serve their one-year terms in military units that are relatively
close to their homes. (Rossiiskaya Gazeta)
CRIME
Criminal charges have been dropped against Vladimir Nekrasov, the former
owner of Russian cosmetics retailer Arbat Prestige. Nekrasov, who lost an
estimated $1.5 billion after his company went bankrupt, said he was not going to
file a case against prosecutors. (Kommersant, Vedomosti, Rossiiskaya Gazeta)
SOCIETY
Russian President Dmitry Medvedev has given the government two months to
consider the possibility of replacing jail terms for drug abusers with drug
treatment. He also gave his backing to legislation now being drafted by the
country's Health Ministry that would see schoolchildren and students tested for
drugs. (Kommersant, Rossiiskaya Gazeta, Izvestia)
A Moscow court on Monday declared that the Movement Against Illegal
Immigration, a leading nationalist group, was extremist and banned its activities.
(The Moscow Times, Moscow News)
Moscow authorities aim to raise the average monthly income of the capital’s
residents to 100,000 rubles (about $3,300) by 2020. (Vedomosti)
SPORTS
Valery Karpin has stepped down as manager of Spartak Moscow. Spartak have
gained only 4 points from five games this season and are second from last in the
Premier League. The club also recently crashed to a 10-3 aggregate defeat to
Porto in the quarter-finals of the Europa League. (Kommersant, Rossiiskaya
Gazeta, Izvestia)
Israel gives boost to Abkhazian economy
http://rt.com/politics/press/nezavisimaya/israel-georgia-economyabkhazia/en/print/
Published: 19 April, 2011, 06:50
Edited: 19 April, 2011, 06:50
Tbilisi seems shocked by what is happening Yury Simonyan
The Israeli Ambassador to Tbilisi, Yitzhak Gerber, was asked on Monday to
arrive at the Foreign Affairs Ministry of Georgia in order to clarify the
circumstances of the visit, made by a delegation from the defense company,
Global CTS, to Abkhazia late last week. According to Deputy Minister Nino
Kalandadze, the ambassador assured the ministry that Tel Aviv “will not allow the
company to work with Abkhazia in the military sphere”. Tbilisi was only partially
satisfied with the statement as Global CST is ready to work with Abkhazia not
only in the military, but also in the socio-economic spectrum.
The visit of the Global CST delegation could open a new era for Abkhazia. Last
week’s talks in Sukhum had ended with the guests declaring their readiness to
provide non-offensive military technologies, security equipment, and medicine, as
well as invest into the agricultural sector, tourism, and mining.
Global CST is a reputable company, with former high-ranking IDF (Israeli
Defense Forces) officers holding key positions. The company has strong
connections with Israel’s senior state officials, and is headed by the former head
of the IDF Operations Directorate, Yisrael Ziv. On his trip to Abkhazia, he was
accompanied by former Military Secretary to Prime Minister Benjamin
Netanyahu, Meir Klifi, and six others responsible for various operations at Global
CST. According to experts, with a proper approach, the Israeli company is able to
give a significant boost to the economic level of the republic, with a population of
half a million.
The President of Abkhazia, Sergey Bagapsh, and Prime Minister Sergey Shamba,
were satisfied with the five-hour meeting and the plans of the Israelis, which will
materialize in the near future. “We are ready to give the Israeli companies access
to the development of mineral deposits. We have agreed that a group of experts
will soon arrive from Israel, who will start developing joint projects in the given
sector,” said Sergey Shamba. Abkhazia has mineral deposits of coal, lead, zinc
and molybdenum ores, barite, silver, nickel and copper. It also has oil, but its
probable deposits have already been reserved by Rosneft. Yisrael Ziv, in turn,
stressed the lack of a political agenda in the visit: “Our arrival in Abkhazia is not
related to politics, but has purely economic interests…We saw a country that is
trying to recover from war”.
Other than the deputy foreign affairs minister’s recounting of the Israeli
ambassador’s explanations, Tbilisi has not issued any official commentary. And
we cannot possibly consider as such the confused statements, made by deputies
and experts, such as: “Global CST has the reputation of a venturesome company”,
or “Israel is acting under Russia’s pressure”. It seems that Tbilisi is shocked by
what is happening. And the officials have only themselves to blame: stubbornness
on the international arena is not always beneficial, especially in relations with
such a country as Israel, with a powerful lobby in the world’s leading countries.
Nezavisimaya Gazeta (NG) has already reported on the arrest of Israeli
businessmen, Roni Fuchs and Ze'ev Frankel for attempted bribery of a Georgian
official. They have been sentenced by the Tbilisi court to seven and six and a half
years in prison respectively, as well as a fine of almost half a million dollars. The
history of Roni Fuchs and Ze’ev Frankel’s relations with Georgia begins with the
presidency of Zviad Gamsakhurdia. One could only guess as to how they were
able to obtain an open-ended contract for exclusive rights to the development of
all hydrocarbon deposits and management of all the pipelines on the territory of
Georgia. The unique contract finally expired when new authorities began to rake
through the corrupt Augean stables. This did not suit the Israelis, who had
invested into the rehabilitation and even placement of certain pipelines; and
litigation proceedings followed.
The London Court of Arbitration has obliged the current government of Georgia
to pay the businessmen close to $100 million. The authorities found this to be an
excessively large sum to pay for the corruption of their predecessors and made a
counter-claim. Fuchs and Frankel, realizing that the process was being delayed,
began looking for a shorter path to the money, for which they promised a reward,
in particular, to Georgia’s deputy finance minister. Their meeting in one of the
hotels in Istanbul was filmed at the official’s suggestion. And at the following
rendezvous in Adzharia, Fuchs and Frankel were caught red-handed. Video
recordings, under the Georgian law, are considered solid evidence in court. The
Israeli Foreign Affairs Minister, Avigdor Lieberman and President Shimon Peres,
had vainly interceded for the detainees. Neither did Georgia’s ex-President
Eduard Shevardnadze’s appeal, made to the authorities through the mass media,
bring any results.
The patriarch of Georgian politics, having stressed that Frankel and Fuchs are on
good terms with the Israeli political establishment and have numerous times
financed the campaigns of some high-profile politicians, urged the leadership to
free the businessmen, as their stay in the Georgian prison did nothing but test the
relations with such an important partner as Tel Aviv. Warnings that Fuchs and
Frankel’s arrest would lead to negative consequences, as the State of Israel never
abandons its citizens in trouble, were made by experts as well. All was in vain.
Officials were not even alerted by Tel Aviv’s refusal to, first, host the speaker of
the Georgian parliament, and then one of the ministers, as well as its stern
reminder of the debt, collected from unmanned aircraft supplies, which were
made before the August war in South Ossetia.
The official position of Tbilisi, which deserves credit for being uncompromising,
suffered a loss when it was discovered that Fuchs and Frankel had come to the
fateful meeting…at the invitation of Georgian Prime Minister, Nika Gilauri. Tel
Aviv declared that the Georgian authorities had provoked the businessmen and
made a spectacle, after which it did not wait long to respond. And despite the fact
that state officials are claiming the visit of the Global CST directors to Sukhum
has no ties to the state vector, thick white thread is visible from afar. “This is
indeed a stance against Georgia, not so much due to the arrest of the businessmen
who broke the law…but because the authorities failed to consider the appeals of
well-known Israeli politicians, including Peres and Lieberman,” suggests
Mamuka Areshidze, an expert on the Caucasus.
Incidentally, this version is not being repudiated in Sukhum. As was noted by the
local newspaper Chegemskaya Pravda the demonstrative nature of the Israelis’
visit, which was announced by them as being a part of the wide-scale partnership
with Abkhazia, including in the defense sector, could be linked to a desire “to
anger Tbilisi, which had put the Israeli businessmen behind bars.”
Military expert, Irakli Sesiashvili, doubts that Global CST’s entire cooperation
program with Abkhazia will materialize. “Military partnership with an
unrecognized state contradicts the Israeli Constitution. In addition to that, Israel
is an ally of the US and the West, whose attitude toward Georgia’s occupied
territories is well-known; and while Israel itself is facing difficulties with
Palestine, it will not go against the shared principles,” believes Sesiashvili.
According to Mamuka Areshidze, even indirect “military cooperation will, at
most, be limited to the purchase of unmanned aircraft supplies, similar to those
Georgia purchased from Israel, while Abkhazia – Russia’s ally – does not need
other weapons. There might also be preparation of Abkhazia’s special forces by
Israel’s military retirees.” Global CST representatives have already trained
special units in Colombia, Peru, Nigeria, Togo, and Guinea. However, according
to Areshidze, other plans may be realized: “Not long before Global CST’s arrival
in Abkhazia, a delegation from Abkhazia had made a visit to Israel. I learned
something that was not published by the press: the talks between the businessmen
and Knesset representatives focused on supplies of medical equipment and highlevel medical technologies to Abkhazia. I am confident that, unlike the military
supplies, Israel will implement these plans.”
The development of the Israeli-Abkhazian relations has become a reflection of the
deteriorating Georgian-Israeli relations. Is Germany next? Recently, the
Abkhazian capital was visited by a representative delegation from this state,
which included ministers of various German states. According to observers,
Berlin’s sudden loyalty to Sukhum could be related to Georgia’s repeated sharp
criticism of the position of Berlin, which opposes the country’s accession to
NATO.
Investing
Russia Welcomes Capitalism…Again
http://blogs.forbes.com/kenrapoza/2011/04/18/russia-welcomes-capitalism-again/
Apr. 18 2011 - 8:24 pm
The Kremlin is rediscovering capitalism. In the process, it seeks to lobby market
institutions towards a more emerging nations-friendly approach to managing the
global economy after the 2008 credit crisis nearly bankrupted the poster children
of free markets: the US and UK.
On the ground, Russia is getting serious about diminishing the state role in big
companies.
Russia’s government, led by President Dmitry Medvedev, is forcing all top
ministry officials to step down from chairman of the board positions of key
government run enterprises (aka “the SEOs”) by July 1. It’s another step towards
becoming more transparent. And it opens the doors to privatization, most of it
likely going to Russia’s super rich businessmen.
Some famous names have already stepped down or announced they will be doing
so this month. Deputy Prime Minister Igor Sechin left his prestigious chairman
post at oil major Rosneft on April 11. Finance Minister Alexei Kudrin told
reporters in Washington, DC this weekend that he will vacate his chairman post
next week at VTB Bank and diamond miner Alrosa.
“The recent removal of ministers from the SEOs is a visible step towards
improving the investment climate,” says Vladimir Pantyushin, Chief Economist at
Barclays Capital in Moscow. “It is less important from an economic or a technical
standpoint, but it is an important and bold political move,” he says.
The country has been undergoing changes since the dismantling of the old USSR
in 1991. Next year is an election year, but that is not expected to change Russia’s
move towards open markets.
This weekend, a top level Russian official told Forbes that no matter who is
elected president in 2012, the policy of market reforms will continue. Medvedev
and Vladimir Putin, the Prime Minister, are likely candidates, though neither have
stated their intentions. “They don’t want elected officials to start making a play
for favors within the new government. We want to focus on the economy. We
cannot afford one year of doing nothing,” he said.
This year, Russia created a sovereign fund for the large international venture
capital and private equity firms to invest in Russian enterprises. The market came
up with the idea in the first place, mostly from private equity giants and some
sovereign wealth funds. The $2 billion fund has no projects yet, being less than
two months old. The fund will dedicate around 15% of a projects costs in sectors
like pharmaceutical and biotech, aerospace, energy efficiency and infrastructure.
Some 50 projects are already being considered.
US companies as diverse as Cisco and PepsiCo are expanding in Russia. On
February 3, Pepsi completed its acquisition of dairy and beverages company
Wimm-Bill-Dann for a massive $5.4 billion, according to government sources,
who said the price was not only a once in a lifetime offer, but more than the
company was worth.
On April 3, Cisco announced it was manufacturing a virtual private network
hardware product in Russia, a deal the government valued at around $1 billion
over time. Cisco did not release the investment total.
On December 27, 2010, General Electric formed joint ventures with electric
power company Inter RAO and with medical devices firm Russian Technologies
Corp.
This July, the country will host the St. Petersburg Economic Forum. It’ll be the
usual schmoozefest of corporate elites and investment bankers, but decisively less
Anglo-American.
Last year, foreign companies and investors put $41.5 billion in Russia, surpassing
Brazil’s $31 billion, arguably a nation most of the Western world sees as more
friendly and open than the former bear in the woods.
In short, this is not your momma’s Russia.
US-based Van Eck Global in New York likes Russia so much it launched its
second pure-play exchange traded fund for that market. “We like Russia. It
doesn’t have the same demographic headwinds as the other big emerging markets,
but its society is getting richer overall. It’s a good long term market to be in,” said
David Semple, Emerging Markets Director of Van Eck Global, which launched
it’s Market Vectors Russia Small Cap ETF on April 14.
Russia’s relatively new to the capitalism game. And it hasn’t always been a
friendly match.
Mikhail Gorbachev resigned from his post as leader of the USSR on Christmas
Day, 1991. Boris Yeltsin, a colorful if not stereotypical Russian character, took
over as the country’s first president. But Yeltsin’s presidency looked more like a
Vodka-soaked party for his rich and corrupt mafia friends, who later became
known as the Russian oligarchs.
Corruption and other political problems led to Yeltsin’s surprise resignation,
ushering in the rule of Putin. The former KGB agent is credited with stabilizing
the Russian economy with various tax policies and bringing some clout to Russian
politics on the world stage.
It’s working. Russia is closer to becoming a member of the World Trade
Organization, a brand that gives Russia a seal of approval for many exporters
looking to get into the Big East of the BRICs.
Since the end of the Soviet Union, Russia has had only three presidents, including
Medvedev, now up for re-election if he chooses to run. Yeltsin and Putin were
both re-elected. Russian Finance Minister Alexei Kudrin told a gathering of
political appointees and economists at the Peterson Institute for International
Economics last week that Russia was not complacent in the Putin years. Wheels
are in motion.
“Many people ask us why were we so slow at organizing our economy? What was
done over the last 10 years (of market reforms) and why was Russia so slow in
organizing its economy? We lived through a period of high oil prices and we
didn’t use those oil revenues the way we could have. People didn’t think of using
these revenues effectively. We didn’t manage to reach the goals we set for
ourselves in the 90s (under Yeltsin) and probably the inflow of petrodollars made
us more relaxed and less vigilant,” he said during his keynote address at Peterson.
A lot has improved. In terms of GDP, Russia’s economic output was $1.12 trillion
in 2000 and in $2.23 trillion in 2010, according to Kudrin. “We will reach our
pre-crisis levels of 2008 in the beginning of next year or by the end of this year,”
he said.
The living standards of Russians have grown. Productivity has grown among the
labor force. Up until the crash of 2008, Russia was growing at an average of 6.9%
annually. Exports were growing by more than 22% if oil and gas are included; at
15% if excluded, according to Kudrin.
As far as government spending goes, they’re doing better than the US. Kudrin
said the government is on track to have a zero deficit in 2015. This year it is
expected to be around 1.4% of GDP.
The WTO entry will make it official, perhaps. Russia, after 17 years, will be part
of the club.
“The number one biggest thing to show a credible commitment to advancing trade
with Russia is to help Russia get into the WTO this year,” said Michael McFaul,
President Obama’s Russian guy in the National Security Council. “Every single
government official who has anything to do with this has said that we support
Russia’s membership in the WTO, and we support it happening this year.”
Russian reform doesn’t mean that the state won’t play a key role in its biggest
companies. Gone are the neoliberal days when reform meant selling government
companies to the lowest Western bidder.
Russia has a lot of problems. It partially thinks that getting government out of big
business will help curb corruption. Russia is ranked as the most corrupt of the big
emerging markets by Transparency International. But one thing is for sure, the
market is finding opportunities there as Russia discovers the market…for the third
time.
US-Russia Trade Surplus? Nyet!
Because of high oil prices, the US maintains a healthy trade deficit with Russia.
Here’s what we sell, and buy from the country Sarah Palin can see from her office
window.
US Top 5 Exports to Russia
1. Animal proteins (beef, chicken, pork)
2. Industrial engines
3. Drilling and oilfield equipment
4. Civilian aircraft, engines, equipment and parts
5. Plastics
2009 Export Value: $5.3 billion
2010 Export Value: $5.9 billion
US Top 5 Imports From Russia
1. Fuel oil
2. Crude oil
3. Other petroleum products
4. Nuclear fuel materials
5. Liquified natural gas
2009 Import Value: $18.1 billion
2010 Import Value: $25.6 b.
Source: Russian-US Trade Federation, New York
National Economic Trends
04/19 12:18 FAS SUGGESTS CUTTING FUEL EXCISE IF OIL PRICES
RISE HIGHER THAN DEFINED LEVEL – ARTEMYEV
http://www.interfax.com/
COMMENT: Russian govt doesn't expect breakthrough in economy until
2014
http://www.bne.eu/storyf2639/COMMENT_Russian_govt_doesnt_expect_breakt
hrough_in_economy_until_2014
UniCredit Group
April 19, 2011
The Russian Ministry of Economic Development has prepared its new
macroeconomic forecast for 2011-2014, which will be used to develop the next
federal budget.
The forecast is based on a $105 per barrel outlook for the Urals oil price in 2011.
The ministry expects oil prices to fall to $93/b in 2012, but rise back to $97/b by
2014. Based on these oil prices, the government expects the economy to expand
by 4.2% in 2011, and to stay below this level until 2014, when it is expected to
accelerate slightly to 4.6%.
Domestic demand is set to be the major driver of economic growth. Thus the
government expects investment to rise by 6.0% in 2011 and to accelerate to some
9.6% in 2014. Consumer demand is also set to support economic expansion as
real disposable incomes and retail sales bottom out in 2011 with weak 1.5% and
3.8% growth respectively, but then should accelerate to 5% and 6% respectively
by 2014. Apparently, the government expects domestic consumer demand to get a
boost from the expected slowdown in inflation, which is expected stay below
7.5% in 2011, and to fall gradually to 5.0% by 2014.
Russia's trade surplus is expected to stay in a healthy surplus throughout the entire
forecast period, even though it is expected to shrink from some $195bn in surplus
in 2011 to $91.9bn by 2014. A persistent trade surplus should ensure general
stability for the ruble, which is expected to fluctuate close to RUB28/USD1 all the
way until 2014.
Cautiously realistic
Overall, we view the new government forecast as cautiously realistic, even
despite what we see as rather supportive oil price assumptions. The forecast is
rather close to our outlook on most major parameters, even though we are a bit
more conservative in our long-term assessment of economic growth; we expect
3.5% real GDP growth in 2014.
We believe that the major market impact of the forecast will be delivered through
the new federal budget, which is to be based on it. We think that such moderate
expectations of economic growth, despite the rather high oil price forecasts, might
suggest that the government is likely to maintain its relative austerity mode in
spending, which is being advocated by the Ministry of Finance. Thus we believe
that the forecast suggests a lack of any major ambitions to accelerate economic
growth in the near future, which, we think suggests that the government does not
plan any drastic structural changes in budget spending or economic policy. We
think this should minimize and potential market impact of the news.
We do not expect any major market impact from the news as the forecast is likely
to suggest a lack of any major changes in budget policy over the next several
years.
Business, Energy or Environmental regulations or discussions
Rosneft, Evraz, TMK, Novolipetsk Steel: Russian Equity Preview
http://www.bloomberg.com/news/2011-04-18/rosneft-evraz-tmk-novolipetsksteel-russian-equity-preview.html
By Marina Sysoyeva - Apr 18, 2011 10:00 PM GMT+0200
The following companies may be active in Russian trading. Stock symbols are in
parentheses and share prices are from the previous close.
The 30-stock Micex Index dropped 3.7 percent to 1,714.07 in Moscow. The
dollar-denominated RTS fell 4 percent to 1,950.15.
OAO Rosneft (ROSN RX): The state oil producer may swap shares with BP Plc
and find a new partner for Arctic drilling if a court allows the U.K. explorer to
split the two parts of their agreement, an independent director at BP’s Russian
venture said. Rosneft dropped 3.5 percent to 238.75 rubles.
Evraz Group SA (EVR) : Russia’s second-largest steelmaker plans to invest 2.5
billion rubles ($88.2 million) over the next two years in its vanadium unit, OAO
Kachkanarsky GOK, to increase its ore output 8.9 percent to 55 million metric
tons, Interfax said. Evraz dropped 3.7 percent to $34.90 in London.
OAO TMK (TMKS LI): The Russian pipe producer is set to file its first-quarter
production results today. TMK fell 1.4 percent to $19.13 in London.
OAO Novolipetsk Steel (NLMK RX): Russia’s third-largest steel producer by
output is scheduled to publish its first- quarter production results today. The
company fell 5.1 percent to 106.06 rubles in Moscow.
To contact the reporter on this story: Marina Sysoyeva in Moscow
[email protected]
To contact the editor responsible for this story: Claudia Carpenter at
[email protected]
Metalloinvest to up stake in Norilsk Nickel
http://af.reuters.com/article/metalsNews/idAFLDE73I07N20110419
Tue Apr 19, 2011 7:24am GMT
* Metalloinvest currently holds 4 pct of Norislk Nickel
* Usmanov still sees formation of Russian global mining firm
* In talks with Mitsui over stake in iron mine, partnership
MOSCOW, April 19 (Reuters) - Metalloinvest plans to raise its stake in Norilsk
Nickel (GMKN.MM) to 5 percent from 4 percent, majority owner Alisher
Usmanov told Russia's Kommersant daily in an interview published on Tuesday.
"Our plan is to reach 5 percent," he was quoted as saying.
Usmanov also repeated earlier calls for Russia to form a global metals giant, with
Norilsk Nickel serving as the first building block.
"Sooner or later, the question of consolidation Russia's metals and mining
industry will arise," he said.
The Russian billionaire, who also owns Kommersant and part of London's
Arsenal soccer team, mooted the plan prior to the 2008 downturn as a way to
create a Russian rival to global mining giants such as BHP Billiton (BLT.L).
However, it fizzled out after liquidity dried up in 2008 and metals prices
collapsed, forcing Russian miners to concentrate on keeping their own businesses
running.
Usmanov also said Metalloinvest is still mulling a possible initial public offering
to raise capital to pay down debt.
He added that Metalloinvest, which is Russia's largest iron miner, could also raise
funds via a syndicated credit.
Metalloinvest's earnings before interest, taxation, depreciation and amortisation
(EBITDA) are about 1.3-1.5 times above its debt.
Talks with Mitsui (8031.T) are still underway, and Usmanov said the Japanese
firm will likely take a minority stake in Lebedinsky, one of Metalloinvest's two
iron ore companies.
"They want a 15 percent stake," Usmanov said.
(Reporting by Alfred Kueppers; Editing by Erica Billingham)
Evraz Eurobond guidance around 6.75 pct –sources
http://www.reuters.com/article/2011/04/19/russia-eurobonds-evrazidUSLDE73I0GJ20110419
3:58am EDT
MOSCOW, April 19 (Reuters) - Russian steelmaker Evraz HK1Q.L is guiding
investors towards a yield of around 6.75 percent on its 7-year Eurobond, two
banking sources told Reuters on Tuesday.
Evraz, part-owned by Russian tycoon Roman Abramovich, is looking to issue up
to $1 billion, and on Monday was guiding towards 6.7-7.0 percent, sources had
said. [ID:nLDE73H0KQ]
(Reporting by Oksana Kobzeva; Writing by Toni Vorobyova; Editing by Alfred
Kueppers)
Alfa Bank Eurobond guidance at 7.875-8 pct –source
http://www.reuters.com/article/2011/04/19/russia-eurobonds-alfaidUSLDE73I0GA20110419
3:50am EDT
MOSCOW, April 19 (Reuters) - Russia's largest lender, Alfa Bank has set the
price guidance on its 10-year Eurobond at 7.875-8.000 percent, a banking source
told Reuters on Tuesday.
Banking sources on Monday had pointed to unofficial guidance of 8 percent on
the upcoming issue, expected to be worth between $500 million and $1 billion.
[ID:nLDE73A1NV] (Reporting by Oksana Kobzeva; Writing by Toni
Vorobyova)
Nomos Bank raises $718m in IPO
http://www.rbcnews.com/free/20110419104700.shtml
RBC, 19.04.2011, Moscow 10:47:00.Nomos Bank has generated $718m in
IPO proceeds, the bank said in a statement late Monday.
It sold shares at a price of $35 a share, which corresponds to $17.50 per
Global Depositary Receipt (GDR). The indicative price range was set at $32$37 a share. The offering was oversubscribed. The bank's free float after the
offering will amount to 22%. If a 15% over-allotment option is fully exercised,
the free float will be equal to 25%.
Based on the share price, the bank's capitalization will reach $3.2bn after
the upcoming private offering. The bank's management bought shares worth
$6m during the IPO. Additionally, the bank is set to receive about RUB 5.5bn
(approx. USD 195m) from a private offering of newly-issued shares to be
made after the IPO.
Trading in Nomos Bank's GDRs on the London Stock Exchange is set to
start today. The GDRs will be listed on April 27.
Nomos Bank raises $718 mln in first Russian bank London IPO
http://en.rian.ru/business/20110419/163592348.html
11:14 19/04/2011
MOSCOW, April 19 (RIA Novosti) - Nomos Bank, one of Russia's top 30 banks,
has placed 22% of its stock in an initial public offering (IPO) to raise $718
million and become the first Russian private bank listed in London, the bank said
in a statement late on Monday.
The share price was set at $35 and $17.50 per Global Depository Receipt, in line
with the price guidance of $32-37 per share and $16-18.50 per GDR.
"This was a very advantageous deal. The stock was sold among premium
investors. The bid book was subscribed already on the second day of the
roadshow. The stock was oversubscribed by several times," an investment banker
familiar with the IPO told RIA Novosti.
Another investment banker said the book was three times oversubscribed.
Deutsche Bank, Credit Suisse, VTB Capital and Citi were the lead managers.
The offering comprised the bank's existing shares largely held by minority
shareholder Roman Korbachka and a new share issue worth 5.5 billion rubles.
Korbachka granted the lead managers an overallotment option of 15% of the base
offering.
The bank's stock will be included in the quotation list of the London Stock
Exchange from April 27.
All about price - Nomos IPO goes through at upper end of range
bne
April 19, 2011
Nomos Bank announced a price of $35 per share ($17.5 per GDR) as it closed the
book on its IPO on the London and Moscow markets on Monday. The success of
the listing, which reported oversubscription and went through towards the higher
end of its indicative range, confirms that investors are ready to buy reasonably
priced offers from Russian companies in sectors less common on the public
markets.
Nomos raised $718m from the initial listing, with an over-allotment offer of a
further RUB5.5bn ($194m) set to be sold via closed subscription immediately
following the IPO, the bank said. Implying a market capitalization of $3.2bn, the
offer price was towards the upper-end of the initial range of $32-37 per share, or
$16-$18.5 per GDR. The bank tightened the range just ahead of the sale to
$17.25-$18.5 per GDR.
The IPO sees the April rush to market by Russian issuers end on a much better
footing than a similar bid in February - when three of four issues were pulled.
This month, three of the four pushed through, although only Nomos managed to
pull away from the bottom of its range. Together with agricultural producer
Rusagro and property group Etalon this month, and pump-maker HMS in
February, Russian IPOs have now brought in $1.98bn.
Meanwhile, with mobile phone retailer Euroset joining the ranks of pulled issues,
the total volume of failed listings so far in 2011 is $3.5-$4bn, according to their
indicative ranges.
One point that the Nomos sale appears to argue with is that investors are not ready
to simply cash out shareholders - which was amongst the reasons offered by
analysts for the failure of Euroset and NordGold to push through issues. However,
only the over-allotment will be invested back into the bank, with the rest being
pocketed by Slovak shareholder Roman Korbacka.
The Nomos IPO was notable in that it was the first offer so far this year at a
reasonable price. Certainly it's the only issue which did not have analysts fretting
that it was over-priced. Euroset in particular was accused of trying to leave
nothing on the table for potential investors with its range. Investors have become
much firmer over pricing since the crisis, and - despite consistent attempts by
Russian issuers to return to their old ways - appear united in that stance.
Troika Dialog writes: The sale implies a post-money 2011E P/BV of 1.4, which
looks about fair relative to other mid-cap names such as Vozrozhdenie Bank and
Bank of St Petersburg, which trade at a 2011E P/BV of 1.3-1.5.
NOMOS Bank has advantages and drawbacks relative to these names. It has a
limited capital markets track record but will be the only mid-cap name with a
London-listed GDR, and it also looks to have a decent sized free float. It is
currently a more profitable bank than either peer (its 2010 pro forma ROAE was
21.1%) but has a loan book that is heavily tilted toward corporate business (over
89% of the book, even after the consolidation of the more retail-focused KhantyMansiisk Bank), and with almost half of all loans to construction/real estate and
financial companies. It has posted phenomenally high recent growth (even
excluding Khanty-Mansiisk Bank) and has been actively selling and writing off
loans, helping to keep a very low NPL ratio.
Alfa Bank meanwhile is expecting Nomos to continue the poor post-market
performance of Russian IPOs: Trading of GDRs begins today in London. Free
float will be 22-25%, depending on how much of the over-allotment option is
used, which equates to $684-777m based on the IPO price.
We believe this IPO pricing was full, notwithstanding yesterday’s market
downturn, and expect trading to open substantially below the IPO price. On the
positive side, we believe the completion of the transaction at such a price is
positive for sentiment relating to Russian banks’ shares.
April 19, 2011 11:19
S&P improves Renaissance Capital rating to 'B' from 'B-' with 'Stable'
outlook
LONDON. April 19 (Interfax) - International rating agency Standard & Poor's has
improved its long-term rating on the bank Renaissance Capital to 'B' from 'B-',
with an outlook of 'Stable', S&P said in a release.
Cf
Sberbank's shares might be sold on the open market during privatisation
http://www.bne.eu/dispatch_text14915
VTB Capital
April 19, 2011
News: Yesterday, Sberbank CEO German Gref made a number of statements.
During the privatization process, Sberbank's shares might be offered on the open
market, although the size of the offering is to be defined right before the
placement (which is pencilled in for 3Q-4Q11).
- Two independent directors will join Sberbank's Supervisory Board as Elvira
Nabiullina and Arkady Dvorkovich will not be re-elected to the Board (in line
with the initiative by President Dmitry Medvedev to improve corporate
governance).
- The bank's strategic goal is to compete with RBI and Unicredit Group on the
CEE markets, with Sberbank eyeing international expansion. It considers Poland
and Turkey as the most promising markets, and also reiterated its long-term
interest in India, China and Vietnam.
Our View: Given the size of the future privatisation, which is too small for a
strategic investor, we consider that the shares will be sold on the open market.
The DR programme (due at the end of June) would help to offset part of the price
overhang following a substantial offering. However, in our view, despite the high
investor demand, Sberbank's stock price is likely to be capped over the next
couple of quarters by the overhang risk.
While the statements about international expansion are just a repeat of the known
strategy, it is the M&A part of Sberbank's story that has recently been dominating
the wires. Although the potential VBI deal seems to be the most advanced, we see
some near-term obstacles for Sberbank as it would have to learn how to work in
the more competitive CEE region, which could distract it from its Russian
homework.
Dmitry Dmitriev
April 19, 2011, 2:54 PM HKT
Russian Stocks Not Fit for Hong Kong?
http://blogs.wsj.com/exchange/2011/04/19/russian-stocks-not-fit-for-hongkong/?mod=google_news_blog
Despite multiple Russian companies signalling their intent to list in Hong Kong,
one technical issue still exists – the Hong Kong stock exchange is yet to include
Russia in its list of accepted jurisdictions (Rusal is incorporated in Jersey), writes
Dow Jones Investment Banker. Russian companies which aren’t well-known to
local investors or have weak links to Asia could also find it difficult to gain a
place in the region’s portfolios.
By Philippe Espinasse
Russian President Dmitry Medvedev and his entourage were all smiles when they
visited the Stock Exchange of Hong Kong’s trading hall Sunday. But listing
Russian companies in Hong Kong still faces technical and regulatory hurdles, as
well as in many cases an uphill struggle to convince investors in Asia that Russian
stocks have a place in their portfolios.
Before Medvedev’s visit, Russian investment bank VTB Capital announced
through CEO Yuri Soloviev the opening of an office in Hong Kong, where it
plans to hire some 30 people to help Russian companies conduct IPOs and raise
“billions of dollars” in Asia.
Candidates for listing in Hong Kong include power company EuroSibEnergo –
controlled by Oleg Deripaska and which pulled an IPO there earlier this year –
with at least four more interested in a listing here, according to Medvedev aide
Arkady Dvorkovich.
Russian companies are following the same logic as global commodities firms
such as Glencore. Seeking a listing in Hong Kong is good politics against the
background of China’s seemingly insatiable appetite for natural resources. A
deterioration in the primary equity market in London, the international listing
venue of choice for Russian issuers, has also prompted them to look East.
At $2.2 billion, Deripaska’s aluminum producer United Co. Rusal was the third
largest IPO in Hong Kong 2010, and the very first one by a Russian business
there. It attracted high-profile cornerstone investors for about 40% of the deal,
including Malaysian tycoon Robert Kuok, Russia’s Vneshekonombank, Nathaniel
Rothschild and John Paulson’s hedge fund.
It hasn’t all been plain sailing, though. Shareholders had to wait for the best part
of a year for the stock to finally trade above the offer price, and the regulator in
Hong Kong, the Securities and Futures Commission, largely prevented retail
investors from participating by imposing a sizeable initial board lot. This has
since been adjusted downwards several times, boosting trading volumes, and also
enabling a few sizeable block trades.
But there are still technical issues with listing Russian stocks in Hong Kong.
Rusal is incorporated in Jersey and, despite statements of intent, including in
HKEx’s 2010-2012 strategic plan, as of April 14, Russia didn’t appear on the list
of jurisdictions which the listing committee has formally ruled as acceptable as an
issuer’s place of incorporation.
Furthermore, quite a few of the mooted IPO candidates are largely unknown
quantities in Asia, and some are unable to demonstrate much more than a tenuous
link with the region. This could be an issue in Hong Kong, where 30% to 50% of
IPOs routinely get allocated to retail investors.
Many institutions with a base in Asia run regional portfolios too, and will find it
hard to justify buying these stocks–unlike their counterparts in Europe.
Meanwhile, those Russian companies seeking secondary listings in the hope of
tapping Asian wealth would be well advised to look at the diminutive trading
volumes in Hong Kong for such giants as the U.K.’s Prudential PLC and Brazil’s
Vale SA. This raises the question of what such a move would bring them, aside
from additional listing and sponsor fees, legal issues, and disclosure costs.
At the exchange, Mr. Medvedev was presented with a floor trader vest sporting
the number 6683 (an auspicious one in Chinese) as a souvenir, but in Hong Kong,
the R in BRICS could well stand for “rare” as well as “Russia.”
(Philippe Espinasse worked as an investment banker in the U.S., Europe and Asia
for more than 19 years and now writes and works as an independent consultant in
Hong Kong. Visit his website at http://www.ipo-book.com. Readers should be
aware that Philippe may own securities related to companies he writes about,
may act as a consultant to companies he mentions and may know individuals cited
in his articles. To comment on this column, please email
[email protected]).
Activity in the Oil and Gas sector (including regulatory)
Russian Oils - If $120/bbl balances the budget, don't expect material tax cuts
for oil
http://www.bne.eu/dispatch_text14915
Citi
April 19, 2011
Russian Minister of Finance Alexei Kudrin yesterday told reporters that Russia's
2012 budget would only be balanced if oil averages $120/bbl for the full year.
Expenditures are being drive by two key budget priorities of rearming the military
and social expenditures, which help drive the budget up some 5% this year and
another 8% in 2012. Military expenditures are expected to rise sharply again in
2013. Meanwhile, a source in MinFin indicated to RBK Daily that the proposed
60/66 tax restructuring - which would reallocate the tax burden within the oil
sector from upstream to downstream by lowering export duties on oil in exchange
for higher and unitized duties on refined products - may have to be delayed past
the planned 2013 start date due to complications from the customs union with
Belorussia and Kazakhstan.
Our view: The take-away is simple: The government cannot afford to give the oil
sector a significant tax break in the foreseeable future. According to our rough
calculations, the oil sector accounted for c.50% of budget revenues in 2010, up
from c.40% in 2009 (including extraction taxes, export duties, and excise taxes,
but not profit tax), while the gas sector added another c.6-7% each year. Although
there is room for the gas sector to pick up some of the burden (and gas taxes will
likely go up as domestic tariffs rise), and room to reallocate the tax burden from
the upstream to the downstream, the oil sector's contribution to the budget is just
too large to give any meaningful net breaks to the sector without blowing a rather
large hole in the government's finances.
Ron Smith
TNK-BP worth $54.1 bn: report
http://www.google.com/hostednews/afp/article/ALeqM5iDTllA_FBro8w9vb9ets
ZXxZpS5A?docId=CNG.bc2dfa1664bb6ea0fd4923c78eb9bcaf.2d1
(AFP) – 19 hours ago
MOSCOW — TNK-BP, the Russian joint venture of the British energy giant that
is at the heart of a heated merger dispute, is worth $54.1 billion, Moscow's Finans
magazine reported on Monday.
The valuation appeared in the weekly's annual ranking of the country's biggest
companies, with the list headed by natural gas giant Gazprom on $205.4 billion
and state-held oil firm Rosneft -- BP's erstwhile partner, on $99.4 billion.
TNK-BP came in sixth, also trailing the RZhD Russian Railways company, state
bank Sberbank and private oil firm Lukoil.
The Russian billionaires who own half of TNK-BP -- collectively known as AAR
and led by the banker Mikhail Fridman -- have used the courts to halt BP's $16
billion share swap and Arctic exploration agreement with Rosneft.
Rosneft last week agreed to extend until May 16 the deadline by which the deal
could be agreed, with one of the discussed options involving a buyout by BP of its
Russian partners.
Western and Russian press reports said that BP was willing to offer AAR $27
billion for the group's stake in TNK-BP, which is one of the world's top 10 private
oil producers.
But the billionaires refused, valuing the company at more than $70 billion.
The oil firm is not traded on Western exchanges and its true value is under dispute
although the Finans valuation is closer to that suggested by BP.
Akhmedov Seeks $1.8 Billion for 49% of Northgas, Vedomosti Says
http://www.bloomberg.com/news/2011-04-19/akhmedov-seeks-1-8-billion-for49-of-northgas-vedomosti-says.html
By Torrey Clark - Apr 19, 2011 6:55 AM GMT+0200
Farkhad Akhmedov raised the price he wants for his 49 percent in ZAO Northgas
to $1.8 billion after getting a higher valuation from bankers and an audit of the
Russian gas producer’s reserves, Vedomosti said today, citing a letter from the
businessman to the potential buyer, OAO Inter RAO UES.
Inter RAO, a state-run power utility, had agreed to buy the stake for about $1.5
billion under a non-binding agreement, Vedomosti said, citing the businessman.
Akhmedov may use the extra $300 million to buy Inter RAO stock, the newspaper
said.
OAO Gazprom, which owns the majority stake in Northgas, didn’t exercise its
right of first refusal to Akhmedov’s stake by an April 12 deadline, the newspaper
said, citing two unidentified people with knowledge of the transaction.
To contact the editor responsible for this story: Torrey Clark at
[email protected]
Novatek confirms interest in Yamal license auction
http://www.bne.eu/dispatch_text14915
Citi
April 19, 2011
Following up on yesterday's story that Gazprom sources indicated that the
company would not participate in this Fridays' auction of 4 licenses on the Yamal
peninsula, Novatek yesterday afternoon confirmed to Vedomosti that it most
definitely would bid for those resources. Novatek, of course, would be able to
plug these fields into the infrastructure it is planning to build around its Yamal
LNG venture. Total estimated reserves of the two better-explored of the fields,
named Geophysical and Salmanovsky, are some 980bcm of gas and 975m bbl of
liquids (C1+C2), with a starting price of some $220m, or around $0.03/boe of
reserves. The remaining two have an estimated 1,800bcm of gas and 3.8bn bbl of
liquids, but are higher-risk as they have apparently not been appraised to C1 + C2
standards. Accordingly, their starting price is only $25m, or $0.01/boe.
This news is not surprising, as we already expected Novatek to bid in the auction.
Winning - as seems likely given the company's ambitious plans in the region and
given the absence of Gazprom - could be significant for Novatek, in our view.
The add would be significant relative to the company's proved reserves of 1,150
bcm (although 2P is a rather larger 1,620 bcm). As important, it would extend the
company's winning streak of the last couple of years, underlining that the stock's
value is likely well in excess of what current operations can justify alone.
However, we think the exact value added for Novatek's shareholders by these
reserves - should the company indeed win the tender - is more difficult to
ascertain at this point, although positive, as production from any of the above four
fields is likely to be at least 8-10 years off, well over the horizon for many equity
investors.
Ron Smith
Gazprom
04/19 11:42 Gazprom looks to extract 200 bcm on Russian shelf by 2030 –
Yazev
http://www.interfax.com/newsinf.asp?id=237570
11:02
Gazprom Pushes Agm Back From June 24 To 30, Will Have Egm June 30 Gazprom
http://www.interfax.com/news.asp
Annual and extraordinary General Shareholders Meetings
of Gazprom to be convened on June 30
http://www.gazprom.com/press/news/2011/april/article111445/
19.04.2011 11:05
The Board of Directors resolved to reschedule the annual General Shareholders
Meeting of Gazprom from June 24 to June 30, 2011.
The Gazprom Board of Directors also resolved to convene the extraordinary
General Shareholders Meeting. The Meeting will begin at 4:00pm (local time)
on June 30, 2011 at the Company's headquarters in Moscow. Registration of the
Meeting participants will be held on June 28 (from 10:00am to 5:00pm) and
on June 30 (from 9:00am).
The lists of persons entitled to take part in the annual and extraordinary General
Shareholders Meetings will be drawn up on the basis of the Gazprom Register
of Shareholders as at the end of the business day on May 12, 2011.
The extraordinary Meeting is to be convened in compliance with the assignments
by the Russian Federation President Dmitry Medvedev to replace government
officials on boards of directors in open joint stock companies with independent
or representative directors.
The Board of Directors approved the agenda of the extraordinary Shareholders
Meeting and the wording of the Meeting notice. The issues related to early
resignation of the Board of Directors Members and re-election of the Board
of Directors to be held at the annual General Meeting were submitted for
consideration at the extraordinary Meeting.
Gazprom chief vows to stick to 10-year natural gas agreement
http://www.ukrainianjournal.com/index.php?w=article&id=12350
Journal Staff Report
MOSCOW, April 18 – Alexei Miller, the CEO of Gazprom, said Monday that Ukraine
will not be able to cancel the 10-year natural gas supply agreement that Kiev believes to
be “extremely unfavorable.”
The possibility of challenging and cancelling the agreement in international courts had
been disclosed on Friday by first deputy prosecutor general Renat Kuzmin.
“For the first time in history of relations with Ukraine a long-term contract base has been
created,” Miller said, according to the Interfax report from Moscow. “The actins of
implementing the contract cannot be questioned.”