Russia - WikiLeaks · Web viewRussia 111116 Basic Political Developments Ukraine, Russia agree...

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Russia 111116 Basic Political Developments Ukraine, Russia agree on new gas price – Interfax: Ukraine and Russia have agreed the new price of Russian gas supplies, Interfax news agency reported on Wednesday citing a government source. o Ukraine, Russia agree on new gas price - govt source : On Tuesday, the Ukrainian business daily Economicheskiye Izvestia quoted a source in the presidential administration as saying that Russia and Ukraine had agreed on the reduction of Russian gas for Ukraine to $220-230 per 1,000 cubic meters compared to some $400 that Ukraine has to pay in the fourth quarter. PM: Ukraine will save $6 billion/yr after signing Russian natgas deal Tigipko: Kyiv insisting on trilateral management of gas transport system - When asked by a presenter on Channel 5 to tell what concessions Kyiv made in order to lower the price for Russian gas, Tigipko said: "I do not know anything about enterprises, I know that there were conversations about the GTS, but Ukraine's position has always been such that if the owners are changed, they should be three - Ukraine, Russia, as the owner of the commodity that moves through our territory, and the EU, as a buyer of this commodity." Russia may contest EU energy rules in WTO – source: Russia, on the brink of joining the World Trade Organization, is considering mounting a challenge against EU energy regulations that would limit gas export monopoly Gazprom's control over its European pipeline assets, a government source said on Wednesday. Putin to meet with German business executives in Moscow Wed - Russian Prime Minister Vladimir Putin will meet with members of the Eastern Committee of

Transcript of Russia - WikiLeaks · Web viewRussia 111116 Basic Political Developments Ukraine, Russia agree...

Page 1: Russia - WikiLeaks · Web viewRussia 111116 Basic Political Developments Ukraine, Russia agree on new gas price – Interfax: Ukraine and Russia have agreed the new price of Russian

Russia 111116

Basic Political Developments Ukraine, Russia agree on new gas price – Interfax: Ukraine and Russia

have agreed the new price of Russian gas supplies, Interfax news agency reported on Wednesday citing a government source.

o Ukraine, Russia agree on new gas price - govt source : On Tuesday, the Ukrainian business daily Economicheskiye Izvestia quoted a source in the presidential administration as saying that Russia and Ukraine had agreed on the reduction of Russian gas for Ukraine to $220-230 per 1,000 cubic meters compared to some $400 that Ukraine has to pay in the fourth quarter.

PM: Ukraine will save $6 billion/yr after signing Russian natgas deal Tigipko: Kyiv insisting on trilateral management of gas transport system -

When asked by a presenter on Channel 5 to tell what concessions Kyiv made in order to lower the price for Russian gas, Tigipko said: "I do not know anything about enterprises, I know that there were conversations about the GTS, but Ukraine's position has always been such that if the owners are changed, they should be three - Ukraine, Russia, as the owner of the commodity that moves through our territory, and the EU, as a buyer of this commodity."

Russia may contest EU energy rules in WTO – source: Russia, on the brink of joining the World Trade Organization, is considering mounting a challenge against EU energy regulations that would limit gas export monopoly Gazprom's control over its European pipeline assets, a government source said on Wednesday.

Putin to meet with German business executives in Moscow Wed - Russian Prime Minister Vladimir Putin will meet with members of the Eastern Committee of German Economy -- the organiztion of businessmen that are interested in the development of trade-and-economic contacts with Russia and Eastern European countries.

RF, France diplomats discuss situation around Iran nuclear program - The Ministry official emphasized, "The sides discussed in detail the situation around Iran's nuclear program in the light of the report on the subject, circulated on November 8 by the IAEA Director-General."

Iran, Russia discuss further energy cooperation - Iranian Petroleum Minister Rostam Qassemi and his Russian counterpart explored avenues for the further expansion of ties and cooperation between the two countries in the energy sector, Fars News Agency reported.

Iran's oil minister called for the participation of Russian companies in Iranian energy projects

China welcomes entry of Russia, U.S. into East Asia Summit Russia wants Office of High Representative for Bosnia-Herzegovina abolished Russia has criticized the report on Bosnia and Herzegovina submitted to UN

Security Council No US legal guarantees that Euro-ABM is not trained on Russia - Washington

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will give no legal guarantees that the US ABM system for Europe that’s currently in the making will not be aimed at Russia. This came in a statement by the new US Under Secretary of State for Political Affairs Wendy Sherman.

Russia’s travel ban on U.S. officials is punishment for “Magnitsky list” - Under Secretary Sherman

U.S. senator postpones vote on new envoy to Russia - Republican Bob Corker had no specific objection to McFaul, the Obama administration’s top advisor on Russia and a key player in its “reset” policy in U.S.-Russia relations, but said he wanted assurances over government funding for the nation’s nuclear arsenal.

US Senate puts off approval of Michael McFaul as Ambassador to Russia - The delay, although technical in character, seeks to give Senators time to call the Administration’s attention to the US differences with Russia. This means the arrival of the new US Ambassador in Russia may be postponed indefinitely.

Republican delays vote on U.S. envoy to Russia Russia’s An-72 plane detained in Afghanistan Another Russian plane detained in Afghanistan ROLKAN AIRLINE TO SUE TAJIKISTAN FOR SEIZING ITS PLANES -

GENERAL DIRECTOR Tajik court's appeals board to review convicted pilots' complaint Tajikistan Says More Migrant Workers Detained In Russia Foreigners responsible for the Russia-Tajikistan dispute – by German Petelin,

Elizaveta Maetnaya Sino-Russia power line to supply China's demand - The electricity power

transmission project is China's biggest cross-border power line, which can bring 4.3 billion kilowatts of electricity annually from Russia, said a senior executive with State Grid Corporation of China on Tuesday.

Georgian Patriarch to visit Moscow - Catholicos Patriarch of All Georgia will depart for Moscow on November 18 to take part in 65-th jubilee of Russian Patriarch Kirill.

Arthur Baghdasaryan to head delegation to Moscow -  Secretary General of Armenia’s National Security Council Arthur Baghdasaryan heads a delegation to Moscow on November 16-18 upon the invitation from Secretary General of Russia’s National Security Council Nikolai Patrusheev.

Armenian National Security Council Secretary to visit Moscow Moscow, Kiev and Astana hold video link-up on Eurasian integration - . Apart

from Russia, the center conducted surveys in Belarus, Kyrgyzstan, Azerbaijan, and Lithuania. Kyrgyzstan and Belarus were the most active to support the Eurasian integration as more than 60 percent of respondents in these countries were in favor of various forms of unifications in the former Soviet Union.

MFA Spokesman Alexander Lukashevich Interview to RIA Novosti in Relation to the Upcoming Participation of Russian Foreign Minister Sergey Lavrov in the 6th East Asia Summit in Bali, Indonesia

Top law experts to mull BRICS countries’ legal challenges in Moscow - More than 300 lawyers from Brazil, Russia, India, China and South Africa will convene in Moscow December 1-2 to discuss legal challenges faced by governments and businesses in the BRICS countries as they push for modernization.

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Belarus to export 3.7m tonnes dairy products to Russia in 2012 Russian nuclear site fuels controversy - One of Switzerland’s leading energy

utilities, Axpo, has announced that it is suspending uranium imports from the controversial Mayak processing plant in Russia.

Russian spacecraft successfully docks with ISS Russia to conduct test launch of Bulava missile in November - “It will be a salvo

launch from the Yury Dolgoruky strategic submarine, and it will involve at least two missiles,” the source said.

Glonass-M to be launched from Plesetsk on Nov 28 – Ministry of Defense Famous Chechen poet shot dead in 'contract killing' Akhtakhanov murder similar in style to Budanov’s – source The investigation revealed similar killing of Akhtakhanovs and Budanov Chechen woman points to cache with 300 kg of TNT Police discover hideout with 300 kg of explosives in Chechnya In-absentia verdict against Fargoil ex-chief takes effect - The Moscow City Court

has upheld a verdict issued by the Basmanny Court in Moscow on July 18 against former head of the Yukos subsidiary company Fargoil Antonio Valdes-Garcia, sentencing him to eight years at a high-security prison for embezzlements and money laundering.

Otkritie Exec Accused of Embezzlement - Russian brokerage Otkritie Financial, partly owned by state-run VTB Group, said in a civil lawsuit that a senior executive in its London office embezzled at least $17.8 million in signing bonuses meant for colleagues.

Russian voters offered new Internet services - Russia’s Central Election Commission has opened a number of new information services which are available to the public on the Commission’s website.

Nashi to Flood City for Elections - A Moscow forum is expected to draw up to 30,000 supporters of the pro-Kremlin youth group Nashi to the capital just in time for the State Duma elections, Gazeta.ru reported Tuesday.

NGO Prints Advice For Army Recruits - When what is supposed to be a standard process of drafting army conscripts becomes a nocturnal raid or semi-criminal ensnarement, a new book compiled by the local NGO Soldiers’ Mothers may come in handy.

Rescuers find missing Captain Kuznetsov ship (Part 2) PRESS DIGEST - Russia - Nov 16 www.vedomosti.ru EBRD Director Thomas Mirow believes that Russia is in a better economic

situation than European countries. Almost 30 percent of Russians agree that the country's current political system is

becoming more and more reminiscent of the Soviet system, according to Levada's recent opinion survey.

www.kommersant.ru The Central Election Committee head Vladimir Churov says he suspects the

OSCE vote monitoring delegation violated Russian law by commenting on the election campaign leading up to the Dec. 4 parliamentary vote.

Qatar, one of Russia's top rivals on the global gas market, may get a stake in

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Russia's second largest natural gas producer Novatek, the daily says citing energy ministers of two countries.

The CEO of French investment bank Natixis Corporate Solutions has agreed to invest 735 million euros ($994 million) in the development of ski resorts in Russia's North Caucasus, the daily reports.

Syria's opposition has left Moscow with empty hands, the daily says, referring to Russia's refusal to help force Syria's President Bashar Assad to resign.

www.izvestia.ru Russia's newly built frigate called Dagestan, expected to reinforce the country's

Caspian Sea Naval Fleet, has been severely damaged during the storm near the Black Sea Novorossiisk naval base as the team failed to take the vessel to a safe off-shore distance.

Russia could introduce post-flight drug and alcohol tests for airplane pilots. www.ng.ru Russian leaders' election promises exceed budget spending plans for next year,

the daily says. State financing of healthcare, education and housing is expected to drop in 2012 while spending on defence and security is expected to rise.

www.rg.ru Prosecutors in the town of Nizhny Tagil are investigating the death of a three year

old boy after he was taken from one hospital to another over the course of six hours as doctors failed to diagnose his illness.

www.mk.ru Russia seems to be preparing for a war, the daily says commenting on the list of

professions the government has chosen to support with scholarships, including jobs with ballistic and laser expertise.

Interfax Moscow press review for November 16, 2011 RIA Russian Press at a Glance, Wednesday, November 16, 2011 Belarus-Russia: Optimistic Rhetoric and Unsolvable Contradictions - However,

Lukashenka’s opinion contradicted Putin’s program of getting Russia’s neighbors involved in the sphere of its influence and imposing its will on them, due to holding domineering positions in the supranational bodies. By Andrei Liakhovich

Russian businessmen evacuate country - Up to 30,000 bankers, businessmen and financiers have been driven out of Russia by Vladimir Putin's evertightening grip on the country's political and commercial life, according to a prominent exile at the centre of a banking controversy.

Russia: FC Anzhi Makhachkala and the Yeltsin Era Money

National Economic Trends Russian stocks, ruble continue slide on lingering Italy concerns Ruble Weakens Third Day Against Dollar as Crude Drops on Europe Russian Industry Probably Expanded at Slowest Pace in Two Years Swapping rubles for the yuan - Russians gravitate toward “exotic”

currencies. By Elena Kukol PPI grows 17.5% YoY in October

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Producer Prices Top Estimate Gov't may enact property tax in 2014

Business, Energy or Environmental regulations or discussions Russia Equity Movers: Raspadskaya, MRSK, Rosneft Are Active MICEX to facilitate IPO involvement for private pension funds Russia's Raspadskaya shares soar on buyback

o Raspadskaya to buy back 10% of stock Norilsk Nickel to tap $2.2bn loans from Sberbank INTERVIEW: GeoProMining brings hi-tech to Soviet-era assets

Activity in the Oil and Gas sector (including regulatory) Qatar eyes stake in Russia's largest private gas producer Novatek NOVATEK again ups 2011 gas production forecast BP Gets Busy In Russia After Court Victory, Stock Going To $55 Bashneft to receive RUB10bn in 60-66 reform compensation, Tatneft

compensation not approved

Gazprom Gazprom and Naftogaz rumored to have finalized gas agreements Gazprom mulls third Nordstream line

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Full Text Articles

Basic Political Developments

Ukraine, Russia agree on new gas price – Interfaxhttp://www.reuters.com/article/2011/11/16/ukraine-russia-gas-idUSL5E7MG17Q20111116

3:53am EST

KIEV, Nov 16 (Reuters) - Ukraine and Russia have agreed the new price of Russian gas supplies, Interfax news agency reported on Wednesday citing a government source.

"We expect to sign the documents in the nearest future," it quoted the source as saying.

The report did not name the new price.

Ukrainian officials have previously said they expected to conclude gas talks, aimed at significantly reducing the price from the current level of about $400 per

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thousand cubic metres, by mid-November. (Reporting by Olzhas Auyezov; Editing by Alison Birrane)

Ukraine, Russia agree on new gas price - govt source http://en.rian.ru/world/20111116/168745979.html

13:30 16/11/2011

MOSCOW, November 16 (RIA Novosti) – Moscow and Kiev have agreed on a new gas price and will sign an agreement in the next few days, a Ukrainian government source said on Wednesday.

"We have agreed on the gas price. Corresponding documents are expected to be signed in the next few days," the source told RIA Novosti.

The source declined, however, to specify the agreed gas price for Ukraine.

Gazprom did not comment on the agreement.

On Tuesday, the Ukrainian business daily Economicheskiye Izvestia quoted a source in the presidential administration as saying that Russia and Ukraine had agreed on the reduction of Russian gas for Ukraine to $220-230 per 1,000 cubic meters compared to some $400 that Ukraine has to pay in the fourth quarter.

Ukrainian Prime Minister Mykola Azarov said on Tuesday that Ukraine was planning to save about $6 billion annually after reviewing gas contracts with Russia.

“As soon as we agree on gas prices, we will save an additional $500 million monthly, which is equivalent to $6 billion a year,” Azarov said.

Ukraine has long been seeking to alter the terms of the 2009 gas deal it signed with Russia. The deal ties the price of gas to oil prices, which have risen strongly since 2009, boosting Ukraine's gas bill. The contract says Ukraine must import no less than 33 billion cubic meters of gas from Russia.

Kiev insists on reducing both the price and the volume of gas imports.

PM: Ukraine will save $6 billion/yr after signing Russian natgas dealhttp://www.ukrainianjournal.com/index.php?w=article&id=13518

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Journal Staff Report

KIEV, Nov. 15 - Ukraine will save $500 million per month, or $6 billion per year, after signing a deal with Russia on lower natural gas prices, Prime Minister Mykola Azarov said Tuesday.

Azarov reacted to a report in a newspaper earlier Tuesday suggesting Ukraine and Russia have agreed to lower gas prices to $220-230 per 1,000 cubic meters from about $401/1,000 cu m currently.

“We are holding persistent talks with Russia,” Azarov said in an interview with Pershiy state television on Tuesday. “Once we reach the deal on acceptable gas price, we will at once save roughly speaking $500 million a month, or $6 billion a year.”

Tigipko: Kyiv insisting on trilateral management of gas transport systemToday at 10:37 | Interfax-Ukraine Ukraine still insists on the trilateral format of the management of its gas transport system (GTS), Deputy Prime Minister - Minister of Social Policy Sergiy Tigipko has said.

When asked by a presenter on Channel 5 to tell what concessions Kyiv made in order to lower the price for Russian gas, Tigipko said: "I do not know anything about enterprises, I know that there were conversations about the GTS, but Ukraine's position has always been such that if the owners are changed, they should be three - Ukraine, Russia, as the owner of the commodity that moves through our territory, and the EU, as a buyer of this commodity."

The vice premier stressed the importance of the involvement of the European side in this scheme which will ensure transparency of the company's activities, proper payment of taxes and provision of jobs.

"If it is on a bilateral basis, this won't reconcile us with Russia and there won't be transparency in this organization. What guarantees and interest Russia will reserve for itself, I do not know," he said.

Read more: http://www.kyivpost.com/news/business/bus_general/detail/117033/#ixzz1drFSsnJ1

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Russia may contest EU energy rules in WTO – sourcehttp://af.reuters.com/article/energyOilNews/idAFL5E7MF3ZE20111116

Wed Nov 16, 2011 7:32am GMT

By Gleb Bryanski

MOSCOW Nov 15 (Reuters) - Russia, on the brink of joining the World Trade Organization, is considering mounting a challenge against EU energy regulations that would limit gas export monopoly Gazprom's control over its European pipeline assets, a government source said on Wednesday.

WTO ministers are expected to invite Russia to join the global trade rules body in December after 18 years of on-off talks but, even before receiving their assent, a first row looks to be brewing.

Russia has expressed anger over European Union rules, known as the third energy package, which seek to liberalise the European gas market by forbidding suppliers from controlling the transport infrastructure used to deliver their gas.

"We believe that this package violates our bilateral agreements with the EU," the official who spoke on condition of anonymity told Reuters. "We are now analysing whether WTO instruments can be used to protect our interests."

"Politically for us the third energy package is a very unpleasant issue," the source said.

Prime Minister Vladimir Putin, set to become Russia's next president next year, has called the package "a robbery". Putin plans to discuss the package with German energy firms later on Wednesday.

The European Union is Russia's largest trade partner, accounting for about 50 percent of the country's total trade turnover. Gazprom supplies a quarter of all natural gas consumed in Europe.

The EU would prefer to reduce its dependence on Russian gas. It ordered raids on Gazprom units on its territory in September to investigate suspicions of anti-competitive practices.

Gazprom, tightly bound to its European customers through long-term contracts linked to oil prices, says massive transport infrastructure investments make no economic sense if it can't benefit from them as an energy supplier.

"I have already told members of the EU commission that we are ready to give a standing ovation for the third energy package, but after our delivery points," Gazprom's export chief, Alexander Medvedev, said in an interview in September.

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Russia this month launched the 7.3 billion euro ($10 billion) Nord Stream pipeline which would boost gas supplies to Europe and reduce the risk of supply disruptions from disputes with transit countries.

Gazprom, through Wingas, its venture with Wintershall, BASF's oil and gas production unit, has stakes in two pipelines -- OPAL and NEL -- that will deliver gas from Nord Stream to Germany and Eastern Europe.

Some Russian energy analysts believe Russia could strike a compromise with the EU which would ensure third parties had adequate access to Gazprom-controlled pipeline infrastructure without any change in control.

03:27 16/11/2011ALL NEWS

Putin to meet with German business executives in Moscow Wed

http://www.itar-tass.com/en/c154/272931.html

MOSCOW, November 16 (Itar-Tass) — Russian Prime Minister Vladimir Putin will meet with members of the Eastern Committee of German Economy -- the organiztion of businessmen that are interested in the development of trade-and-economic contacts with Russia and Eastern European countries.

Govenrment press service offisials point out, "The annual meeting which has already become traditional provides an opportunity on a regular basis substantively to exchange opinions about prospects for a further expansion of trade, economic and invesment cooperation between Russia and Germany".

Matters planned out for discusssion deal with cooperation in the field of certification, standardization and evaluation of conformity; the carrying out of industrail assembly operations in Russia; the implementation of the provisions of the "Third Energy Package of the European Union (EU)"; localization in Russia of plants for the production of farm machinery and components; cooperation in the raw materials sector; and the introduction of Russia-EU visa-free arrangements.

Russian Minister of Economic Development Elvira Nabiullina, Minister of Eenergy Sergei Shmatko, as well as the chiefs of the companies Wintershall, Gildemeister, Klaas, E.ON, Deutsche Lufthansa, Herrenknecht, and Verbundnetz gas AG will take part in the meeting.

For years the FRG has been the leading foreign-trading partner for Russia. Only in 2010 it was second after China. In the January-September period of 2011, Russo-German trade grew by 43.5 percent as compared with that in the

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corresponding period of last year to run at $51,800 million. Russian import over the period increased by 39.5 percent to amount to $25,000 million while import was up 47.5 percent to run at $26,800 million.

German investors are now represented in practically all branches of the Russian economy, including strategic ones. About 4,600 enterprises with German participation and about 800 ones with 100-percent German capital are operaing in 80 regions of Russia. Over 1,800 branches and representative offices of German firms have been regisyered as well.

About one-third of companies with German participation operate in the mining and processing branches of industry. The German companies E.ON/Ruhrgas, Knauf, Metro, Volkswagen, Siemens, BASF, Klaas,and Thyssen-Krupp are best known for their participation in the real sector of theRussian economy.

In December 2007, German business as represented by BASF Company for the first-ever time began to participate in the production of Russian gas at the Yuzhno-Russkoye (souhern Russia) gasfield. The E.ON/Ruhrgas joined in that gasfield development in October 2008.

Both Russia and Germany evince mutual economic interest in cooperation. Up to 40 percent of the FRG's import requirements for natural, up to 30 percent requirements for oil, and over ten percent of requirements for non-ferrous metals and mineral fertilizers are met resultant of deliveries from Russia.

Russian invesments in Germany amounted to $4,700 million in 2010 -- four times as much as the indicators of 2009 -- and to $2,900 million in the first half of 2011. Six hundred and twenty enterprises with Russian participation are now registered in the FRG. In particular, Gazprom as strategic investor has put 1,000 million euros in conjunction with BASF into projects in the FRG. Severostal became the major shareholder of the leading German travel company TUI while Agromashholding became a shareholder of the steel firm Luitpoldhute AG.

The Eastern Committee of German Economy plays a marked role in developing trade-and-economic relations between Russia and Germany. It promoted the formmulation of the FRG's newapproaches to economic relations with the Russian Federation, based on closer contacts with the constituent entities of theRF. The Committee often conducts negotations on the strength of special powers and assignments of the Government of the FRG.

00:25 16/11/2011ALL NEWS

RF, France diplomats discuss situation around Iran nuclear program

http://www.itar-tass.com/en/c154/272897.html

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MOSCOW, November 16 (Itar-Tass) — The diplomats of Russia and France have discussed the situation concerning Iran's nuclear program in the light of the report circulated by the Director-General of the International Atomic Energy Agency (IAEA), a Russian Foreign Ministry official announced on Tuesday on the strength of the results of a meeting between Russian Deputy Foreign Minister Sergei Ryabkov and Jean de Gliniasty, French Ambassador in Moscow.

The Ministry official emphasized, "The sides discussed in detail the situation around Iran's nuclear program in the light of the report on the subject, circulated on November 8 by the IAEA Director-General."

Iran, Russia discuss further energy cooperationhttp://en.trend.az/regions/iran/1957610.html

16 November 2011, 10:36 (GMT+04:00)

Iranian Petroleum Minister Rostam Qassemi and his Russian counterpart explored avenues for the further expansion of ties and cooperation between the two countries in the energy sector, Fars News Agency reported.

Qassemi arrived in Qatar for a forum of gas exporters on Tuesday and met his Russian counterpart.

At the meeting, the two officials discussed energy cooperation and involvement of Russian companies in Iranian oil and gas projects.

Russia has requested Iranian authorities to assist in helping Russian companies realize energy projects in Iran.

Qassemi welcomed Russian companies in Iran's energy projects.

Iran prioritizes joint energy projects with foreigners with emphasis laid on time needed for their realization.

The ministers agreed on the need for a common policy in international energy organizations.

http://www.iran.ru/rus/news_iran.php?act=news_by_id&_n=1&news_id=76595

GOOGLE TRANSLATION

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Iran's oil minister called for the participation of Russian companies in Iranian energy projects15.11.11 13:56Iranian Oil Minister Kasemi Rostam, who arrived in Qatar to attend the meeting of the Forum of Gas Exporting Countries, met with his Russian counterpart, ISNA news agency reported.

During the meeting called by the parties exchanged views on bilateral cooperation in energy and the participation of Russian companies in Iranian oil and gas projects.

The Russian side has submitted a request to assist and provide Russian companies to take part in the ongoing Iran's energy projects.

The ministers of the two countries agreed on the need for common policies in the international energy organizations.

Rostam Kasemi said that he hoped that the Russian company took immediate steps to enter the Iranian energy sector. According to him, the priorities of the Ministry of Petroleum of Iran is implementing a number of cooperative programs with neighboring countries in energy, and in this regard, particular importance is the time factor.

Iran News

China welcomes entry of Russia, U.S. into East Asia Summithttp://news.xinhuanet.com/english2010/china/2011-11/16/c_131250926.htm

2011-11-16 16:58:57

BEIJING, Nov. 16 (Xinhua) -- China on Wednesday welcomed Russia and the United States as new members of the East Asia Summit (EAS).

"China welcomes the official entry of Russia and the United States into the EAS this year," Foreign Ministry Spokesman Liu Weimin said at a daily press briefing.

The 16-member EAS was founded in 2005 and included ten countries of the Association of Southeast Asian Nations, China, Japan, the Republic of Korea, India, Australia and New Zealand.

The 6th EAS will be held in Bali, Indonesia later this week.

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"China, among the first countries to welcome the entry of Russia and the United States into the EAS, believes both countries will play their own constructive roles in promoting cooperation in East Asia," Liu said.

Liu called for the two countries to support the EAS' position as a strategic forum, its current cooperation principles and the ASEAN's leading role in the summit.

Russia wants Office of High Representative for Bosnia-Herzegovina abolished http://english.ruvr.ru/2011/11/16/60466284.html

Nov 16, 2011 10:04 Moscow Time

Russia stands for the abolition of the Office of High Representative for Bosnia-Herzegovina, vesting Bosnians proper with responsibility for the future of their country.

This came in a statement at the UN Security Council by the Russian Ambassador to the UN Vitaly Churkin.

He gave to understand that the bureaucrats of the High Representatives’ Office deliberately dramatize the situation in Bosnia-Herzegovina in a bid to justify their presence in the Balkan republic.

Meanwhile, the address to the Security Council by High Representative Valentin Inzko relied heavily on the idea that stability is impossible in Bosnia-Herzegovina without his Office.

This runs counter to the provisions of the Council-agreed draft resolution on Bosnia-Herzegovina.

The world community set up the Office of High Representative following the Bosnian conflict of 1992-1995.

(TASS)

RT News line, November 16

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Russia has criticized the report on Bosnia and Herzegovina submitted to UN Security Councilhttp://rt.com/news/line/2011-11-16/#id22087

Russia has criticized the report of High Representative for Bosnia and Herzegovina Valentin Inzko submitted to UN Security Council, which portrays the region as a politically unstable. “It seems that the administration of the High Representative intentionally emphasizes the negative factors and ignores the qualitative improvements of Bosnians sides in finding common grounds, therefore justifying the necessity of its further existence,” Russia’s RIA Novosti news agency quotes Russian Envoy to the UN Vitaly Churkin as saying. Churkin also stressed that the main task for the international community in settling the conflict is to transfer the responsibility for Bosnia and Herzegovina to Bosnians themselves. “In practice, it means the abolishment of the administration of High Representative for Bosnia and Herzegovina,” underlined Churkin..

No US legal guarantees that Euro-ABM is not trained on Russia http://english.ruvr.ru/2011/11/16/60466322.html

Nov 16, 2011 10:05 Moscow Time

Washington will give no legal guarantees that the US ABM system for Europe that’s currently in the making will not be aimed at Russia. This came in a statement by the new US Under Secretary of State for Political Affairs Wendy Sherman. She said in an interview with the Moscow-based daily Kommersant that all that’s negotiable are political guarantees, which are less reliable than the legal guarantees that Russia has been pressing for. Moscow is concerned that US ABM missiles will be able to reach any target in Russia all the way to the Urals, thus posing danger to this country’s security.

(TASS)

http://www.kommersant.ru/doc/1817285

GOOGLE TRANSLATION

The "reset occurred between countries and not specific people"U.S. Undersecretary of State for Relations with RussiaIn Moscow on an official visit for the first time visited the new U.S. Assistant Secretary for Political Affairs Wendy Sherman. In an interview with

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"Kommersant" to Alexander GABUEV, she explains why Washington refused to give legally binding guarantees Moscow not directed its defense against Russia, although it is ready to provide security policy.

Russia’s travel ban on U.S. officials is punishment for “Magnitsky list” - Under Secretary Shermanhttp://en.rian.ru/russia/20111116/168733665.html

02:36 16/11/2011

MOSCOW, November 16 (RIA Novosti)

Washington believes Moscow’s sanctions against U.S. officials are meant as a punishment for the U.S. travel ban on Russian officials allegedly linked to the death of lawyer Sergei Magnitsky, a top U.S. State Department official said.

Under Secretary of State for Political Affairs Wendy Sherman told the Russian business daily Kommersant that the United States does not consider Russia’s sanctions were connected with human rights violations but believes they were introduced in retaliation for the U.S. measure.

Magnitsky was arrested and jailed without trial in November 2008, and died in police custody a year later after being denied medical care. The 37-year-old lawyer was working for Hermitage Capital Management, a British-based investment fund, when he accused Russian tax and police officials of carrying out a $230-million tax scam.

In July 2011, the U.S. State Department banned visas for about 60 Russian officials over their involvement in the detention and death of Magnitsky, the so-called “Magnitsky list.”

Moscow responded in kind, compiling its own list of 11 “undesirable” U.S. officials barred from entry to Russia. The officials are reportedly linked to the notorious Guantanamo prison.

Sherman said her country regrets Russia’s response.

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U.S. senator postpones vote on new envoy to Russiahttp://en.rian.ru/world/20111116/168741462.html

10:52 16/11/2011

MOSCOW, November 16 (RIA Novosti)

A U.S. senator has delayed the consideration of Michael McFaul for ambassador to Moscow over concerns about possible future cuts to nuclear spending.

Republican Bob Corker had no specific objection to McFaul, the Obama administration’s top advisor on Russia and a key player in its “reset” policy in U.S.-Russia relations, but said he wanted assurances over government funding for the nation’s nuclear arsenal.

This will postpone a planned Senate Foreign Relations Committee vote on McFaul for at least two weeks.

“We are working with the administration right now to get where we need to be on the [nuclear] modernization piece,” Corker told reporters.

“We weren't comfortable going ahead [with a vote on McFaul] until we got this other issue worked out,” the senator said

Last year, President Barack Obama persuaded Republicans to back the new START nuclear disarmament treaty with Russia by pledging $85 billion to modernize America’s nuclear arsenal.

But given the ongoing budget uncertainty in Washington, this goal may well be out of reach.

McFaul’s nomination may also face opposition on the Senate floor from senators critical of Russia’s human rights record.

US Senate puts off approval of Michael McFaul as Ambassador to Russia http://english.ruvr.ru/2011/11/16/60466947.html

Nov 16, 2011 10:20 Moscow Time

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The US Senate Committee on Foreign Relations was due to approve Michael McFaul as US Ambassador in Russia on Tuesday, but has put off the move until a later date at the request of one of the Senators, according to a Committee official.

The delay, although technical in character, seeks to give Senators time to call the Administration’s attention to the US differences with Russia.

This means the arrival of the new US Ambassador in Russia may be postponed indefinitely.

IF

Republican delays vote on U.S. envoy to Russiahttp://www.reuters.com/article/2011/11/15/russia-usa-mcfaul-idUSN1E7AE1FS20111115

Tue, Nov 15 2011

WASHINGTON, Nov 15 (Reuters) - A U.S. Senate Republican forced a delay in the consideration of the White House's nominee for ambassador to Moscow on Tuesday, because of concerns about possible cuts to nuclear weapons spending.

Senator Bob Corker did not raise any specific objection to the nominee, Michael McFaul, who is President Barack Obama's top adviser on Russia policy and a proponent of the administration policy of "reset," or better ties with Moscow.

But Corker objected to a planned Senate Foreign Relations Committee vote on McFaul, forcing a postponement of at least two weeks, while he seeks assurances on continued funding for the U.S. nuclear weapons complex.

"We are working with the administration right now to get where we need to be on the (nuclear) modernization piece," Corker told reporters outside the Senate.

"We weren't comfortable going ahead (with a vote on McFaul) until we got this other issue worked out," the senator said.

Senate Foreign Relations Committee Chairman John Kerry, a Democrat, said he expected the problem to be worked out so there could be a vote soon on McFaul. Committee aides said the panel's vote could be rescheduled for late November.

But even if McFaul's nomination makes it out of committee onto the Senate floor, it could face trouble there from critics of Russia's human rights record and the Obama administration's talks on missile defense cooperation with Moscow.

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It's also not clear what assurances the Obama administration can give Corker about future funding for nuclear weapons, given the deficit crisis now facing Washington.

A year ago, the Obama administration convinced a number of Republican lawmakers, including Corker, to support the new START nuclear arms control deal with Russia by pledging $85 billion over the next decade for maintaining and modernizing the remaining U.S. nuclear weapons.

Since then, the deficit crisis has thrown a question mark over whether such a large spending pledge can be met, even if successive administrations and Congresses want to do so.

Other lawmakers have proposed nearly half a billion dollars in cuts for 2012 in spending on the National Nuclear Security Administration, which manages the nation's nuclear weapons.

Democrats and Republicans on a congressional "super committee" are supposed to come up with a plan shortly that would cut $1.2 trillion more from all programs over 10 years.

Some House Democrats say the super committee should find $200 billion of this money by slashing expensive delivery systems, such as bombers and submarines, for nuclear weapons.

09:51 16/11/2011ALL NEWS

Russia’s An-72 plane detained in Afghanistan

http://www.itar-tass.com/en/c154/273071.html

DUSHANBE, November 16 (Itar-Tass) — The Afghan authorities detained Russia’s An-72 plane in the airport of Kabul on Tuesday, the Tajik news agency Avesta said on Wednesday.

There has been no information about the plane’s crew and its future.

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Another Russian plane detained in Afghanistanhttp://vestnikkavkaza.net/news/economy/19962.html

A Russian An-72 plane was detained at the airport of the Afghan capital. Just like the planes servicing Rolkan Investments Ltd., confiscated by Tajikistan, it was working for the Supreme Food Company (Holland), Interfax reports.

Rasuli said that the crew lacked documents needed to cross Afghan territory.

Tajik Prosecutor General Shekhron Salimzoda said on November 10 that two planes of Rolkan had been detained on November 8 for lack of registry in the state structures of any country, a flight reservation, an operator’s certificate and a flight certificate.

Salimzoda says that the Afghan side requested the detention of the planes.

11/16 13:12   ROLKAN AIRLINE TO SUE TAJIKISTAN FOR SEIZING ITS PLANES - GENERAL DIRECTOR

http://www.interfax.com/

12:59 16/11/2011ALL NEWS

Tajik court's appeals board to review convicted pilots' complaint

http://www.itar-tass.com/en/c154/273282.html

DUSHANBE, November 16 (Itar-Tass) — The appeals commission of the Khatlon region court in Tajikistan has accepted for review the complaints by the convicted pilots - Russian citizen Vladimir Sadovnichy and Estonian citizen Alexei Rudenko and their lawyer.

"I was officially informed by the regional court that it has accepted for review the cassational appeals against the unjust and illegitimate verdict," the pilots' lawyer, Gulyam Boboyev, told Itar-Tass by telephone on Wednesdsay.

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The review date has not been announced yet. According to Boboyev, he also had received a copy of the protest lodged by the Khatlon region prosecutor's office against the verdict by the court in Kurgan-Tyube, the administrative center of the province.

"It follows from the document that the prosecutors regard the verdict as too harsh and biased; it was passed without taking into account the defendants' personalities, their references, family status, and the elderly parents they have to support," Boboyev said.

In addition, regional prosecutors believe the court "failed to take into account the nature of Russian-Tajik relations, based on strategic partnership."

On November 8, the court in the town of Kurgan-Tyube sentenced the pilots to 10.5 years in a maximum security penitentiary. The term will be reduced by two years, in accordance with the amnesty announced by the president.

Prosecutor general Sherkhon Salimzoda stated that preliminary investigation materials had proven the defendants’ guilt under three articles of Tajikistan's Criminal Code: violation of state border, contraband, and violation of regulations for international flights. Also, Salimzoda accused the mass media or "wrongful interpretation of the situation around "a common criminal case."

According to him, the trial of the pilots was "open, transparent and free."

He denied any politics behind the case.

"The aircraft piloted by the crew commanders Vladimir Sadovnichy and Alexei Rudenko (An-72) landed in our territory without permission of the republic's aviation authorities and other services. These aircraft were not registered in any state, had no operating life left, had not undergone maintenance and had not been repaired for three years. In such a situation, the Tajik aviation authorities "made the only correct decision."

Meanwhile, reports on Tuesday said Khatlon region prosecutors were seeking the extradition of head of the Rolkan Investments company head Sergei Poluyanov. The man is wanted by Interpol.

Prosecutor's office representative Faizullo Kholov confirmed it by telephone, noting that Poluyanov is "an accomplice to the crimes committed by the previously convicted pilots Vladimir Sadovinichy and Alexei Rudenko."

Criminal proceedings against Sergei Poluyanov, who is a Russian citizen, were pooled into a separate case on August 15. The person in question fled the investigators and is outside of the republic, and a sanction was issued for his arrest," Kholov said.

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The head of the airline is responsible for his pilots' actions, he added.

Also on Tuesday, Estonia sent an interim consul to Tajikistan, to coordinate efforts in resolving the problem of its citizen, pilot Alexei Rudenko.

"The diplomat will be monitoring the situation and pass information to Tallinn. The consul's duties include contacts with the Tajik authorities, the lawyer and European Union representatives," Foreign Minister Urmas Paet said. These duties are to be temporarily performed by the consul who works at the Estonian Embassy in Kazakhstan.

 

Tajikistan Says More Migrant Workers Detained In Russia http://www.rferl.org/content/tajikistan_says_more_migrant_workers_detained_in_russia/24392434.html

November 16, 2011 DUSHANBE -- Tajikistan's Migration Service says that the detention of Tajik citizens in Russia has increased in the past week amid a row with Moscow over the sentencing of two ethnic Russians for smuggling and other crimes, RFE/RL's Tajik Service reports.

Safiallo Devonaev, the head of the state Migration Service, said on November 15 in Dushanbe that according to official information from the Russian government, on November 8 some 84 Tajik citizens were being held in detention centers in Russia awaiting deportation.

On November 14, that number had increased to 205 and it rose to 245 the following day.

Devonaev said the verdict against two foreign pilots -- Russian Vladimir Sadovnichy and Estonian citizen Aleksei Rudenko -- sentenced for smuggling, illegal entry into Tajik airspace, and breaching international air flight rules is not the reason for the increase in Tajiks being detained in Russia.

Citing 12 Tajiks deported to Tajikistan by Russia last weekend, Devonaev said this group received their deportation orders before November 8 when Sadovnichy and Rudenko were sentenced to jail for 10 1/2 years in Tajikistan.

Their sentences were automatically reduced to 8 1/2 years under a presidential amnesty.

Devonaev noted that official statistics show that during the first 10 months of

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2011 more than 674,000 Tajik citizens migrated to Russia and some 546,000 had returned to Tajikistan from Russia.

He added that last year Russia deported more than 3,000 Tajiks to their homeland.

Devonaev said that officially some 560,000 Tajik citizens currently live in Russia but unofficial sources say there are more than 1 million Tajik labor migrants there.

High unemployment and low wages force Tajiks to seek work in Russia.

Foreigners responsible for the Russia-Tajikistan disputehttp://rt.com/politics/press/izvestiya/aircraft-tajikistan-russia-row/en/

Published: 16 November, 2011, 05:33Edited: 16 November, 2011, 05:35

German Petelin, Elizaveta Maetnaya

Pilot Vladimir Sadovnichy became the victim of a scam, involving citizens of several countries of Asia and the CIS

Russian pilot Vladimir Sadovnichy, sentenced to 8.5 years in prison in Tajikistan, will most likely get a reduced sentence. Tajikistan’s Khatlon Province prosecution appealed against the judgment, calling it too harsh. Family members of the convicted pilots are now confident that their relatives will soon return home.    Meanwhile, Izvestia has learned about the underpinnings of the international scandal. The pilots became victims of “international raiders” and shady schemes, used by airline companies for tax evasion.    Valery Pfeifer, official spokesman for Rolkan Investments Ltd., which provided airplanes piloted by Vladimir Sadovnichy and Aleksey Rudenko, told Izvestia that the company began experiencing problems back in 2010. At that time, Aerospace Consortium, which was renting the cargo aircraft, stopped paying rent and pilots’ salaries.   The business scheme was as follows: Rolkan Investments Ltd. leased three An-72 aircraft to Aerospace Consortium (directed by Indian citizen Dzhagib), headquartered in the UAE, which in turn leased to another company, Khatlon FZE (directed by Kyrgyz national Oleg Lysenko and Russian national Oleg Baranov). Khatlon FZE served as an intermediary, who had obtained flight permissions from various countries’ aviation authorities.        “The heads of these organizations were the ones who organized the aircraft

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scheme,” argues Pfeifer. “Dzhagib has connections with law enforcement agencies in Kabul and Tajikistan; he works under their cover.”  Moreover, argues Pfeifer, the National Guard was using Khatlon air (Emirati Khatlon FZE’s subsidiary) to lease its military helicopters to civilian firms.     “They wanted to get the An-72 aircraft for this company,” argues Pfeifer. In order to do that, the following scheme was invented: Lysenko organizes a flight out of Kabul, after which the aircraft are seized in Tajikistan. Then, negotiations begin: cargo aircraft in exchange for the pilots’ freedom. “Immediately after our pilots’ arrest, Radzhabali Rakhmonali [commander of Tajikistan’s National Guard] offered to make a deal: we give the Republic of Tajikistan two AN-72 aircraft free of charge, and Sadovnichy and Rudenko are set free,” admits general director of Rolkan Investments, Sergey Poluyanov, whom Tajikistan declared wanted on Monday evening.   

The raiders were betting on the aircraft not having any connection to Russia. Rolkan Investments Ltd. is registered in an offshore zone (in the Virgin Islands), and prior to June of 2008 the aircraft were included in the National Register of the Georgian Armed Forces. The reason why they were excluded from the register remains undetermined – Georgia’s aviation authorities were unable to comment.     Valery Pfeifer argues that documentation was intact and they were not excluded from the register. “Our company owns three An-72 aircraft,” says Pfeifer. “Two aircraft, which were seized in Tajikistan, were included in Georgia’s register, and the third, which is currently in Kabul, was listed in the Kyrgyz aircraft register.”  Vladimir Terentyev, an expert on aviation security, says that, without registration, the aircraft was unable to fly at all.  “When aircraft are registered with airline companies, they not only have their own codes, but also the International Civil Aviation Organization (ICAO) codes, without which a flight request will not be accepted by a single dispatch service,” explains the expert. “The fact that they were undocumented is out of the ordinary – that is something that simply can’t be. When a flight request is made, it contains a list of necessary information about the aircraft, including the name of the airline company, the codes for the host country and the country of origin.”  “Accusations that the seized aircraft ‘were engaged in illegal transportation of non-military cargo of the NATO coalition forces between 2008 and March 2011’ are clearly false,” notes another aviation expert, Vladimir Grudin. “It’s hard to imagine that the NATO coalition forces would allow just about anyone to conduct cargo transfers, and that the Afghan authorities had simply ‘failed to notice’ what was happening right under their noses for three years” Meanwhile, one of the scheme organizers, Oleg Baranov, already came to the attention of Russia’s law enforcement bodies. Several months ago, his business partner from Samara, Khaziv Ganeev, turned to the Prosecutor General’s Office. He argues that Baranov had also abandoned him, taking four An-26s and one An-12 with him.      In an interview with Izvestia, Ganeev said that Kyrgyz national, Oleg Lysenko,

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was also involved in the scheme for aircraft takeover; meanwhile, the aircraft were to be used in Tajikistan.   “In 2005, we had set up a company in the UAE – TEHNOER, in which I owned 50%,” says Ganeev. “We had five aircraft. In 2010, I became very ill. During this time, Baranov registered all aircraft under his name.”  Oleg Baranov, argues Ganeev, opened a new firm in Sharjah, where he transferred all of the funds, machinery, spare parts, property, and personnel. All of the supporting documentation in this case was transferred to the Prosecution General’s Office in May of 2011, though the question regarding a criminal case is still pending.     Mr. Baranov is currently in the UAE. After hearing Izvestia’s questions, he slammed the phone, after which he was unavailable for further commentary.

Sino-Russia power line to supply China's demandUpdated: 2011-11-16 10:42

(Xinhua)

http://www.chinadaily.com.cn/business/2011-11/16/content_14104773.htm

HARBIN - Tests will start in December on a mammoth Sino-Russia power line, expected to accommodate China's surging demands for energy, according to the project's builder.

The electricity power transmission project is China's biggest cross-border power line, which can bring 4.3 billion kilowatts of electricity annually from Russia, said a senior executive with State Grid Corporation of China on Tuesday.

He added that companies from China and Russia are currently engaged in coordinating operations and negotiating prices.

Energy cooperation with Russia is significant to alleviate China's energy pressure, said Liu Tienan, head of National Energy Administration, during his inspection tour to a construction site of the power line in July.

The project began in July 2007 but stalled several times during its construction, according to the State Grid Corporation of China.

The electricity power line runs from the state of Amur in Russia's Far East to Heilongjiang, China's northernmost province. It remained intact after an

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earthquake measuring 6.6 on the Richter scale jolted Russia's Far East on October 14, sources said.

In addition to the two sides' constant pledges to bolster oil supply, experts believe China and Russia will also ramp up cooperation on electricity, coal, and new energy.

Georgian Patriarch to visit Moscowhttp://news.az/articles/russia/48820

Wed 16 November 2011 07:18 GMT | 8:18 Local Time

Georgian Patriarch to depart for Russian Federation on November 18.

Catholicos Patriarch of All Georgia will depart for Moscow on November 18 to take part in 65-th jubilee of Russian Patriarch Kirill.

MIikhail Botkoveli, Secretary of the Patriarchy, holy father said to GHN that Georgian Patriarch will meet with Georgian Diaspora in Moscow in the frames of this visit and will serve a divine service on Georgian language in the St. George's temple in Moscow.

On November 20 the joint divine service will be held by both Patriarchs.

GHN

11:10 16/11/2011 » Politics

Arthur Baghdasaryan to head delegation to Moscowhttp://www.panorama.am/en/politics/2011/11/16/moscow/

 Secretary General of Armenia’s National Security Council Arthur Baghdasaryan heads a delegation to Moscow on November 16-18 upon the invitation from Secretary General of Russia’s National Security Council Nikolai Patrusheev.

On the sidelines of the visit, the Secretary General of NSC will have meetings with his Russian counterpart N. Patrusheev, Russian Minister of Emergency Situations Sergei Shoigu, CSTO Secretary General Nikolai Borduzha.

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The press service of the Council says Armenian and Russian National Security Councils will approve a cooperation program.

Source: Panorama.am

Armenian National Security Council Secretary to visit Moscowhttp://news.am/eng/news/82077.html

November 16, 2011 | 11:19

YEREVAN. – On the invitation of Nikolai Patrushev, Secretary of the Security Council of the Russian Federation, a delegation led by Armenian National Security Council (NSC) Secretary Arthur Baghdasaryan will visit Moscow, from Wednesday to Thursday.  

Within the framework of the visit, Baghdasaryan will meet with Patrushev and other senior officials, NSC Press Service informed.

In addition, the 2012-2013 cooperation program will be signed between the Security Councils of Armenia and Russia.

Also, the Collective Security Treaty Organization (CSTO) Headquarters will host a roundtable discussion entitled “Armenia’s Cooperation Along the Lines of CSTO,” during which NSC Secretary Arthur Baghdasaryan will deliver a presentation on Armenia’s reforms within the framework of CSTO.

Moscow, Kiev and Astana hold video link-up on Eurasian integrationhttp://caspionet.kz/eng/general/Moscow__Kiev_and_Astana_hold_video_linkup_on_Eurasian_integration_1321418251.html

People in Russia consider Kazakhstan to be the most stable, reliable, and successful partner to Russia and see the country’s President Nursultan Nazarbayev as the most trusted political leader among the CIS heads of states. This data by the All-Russian Public Opinion Research Centre was voiced during the Moscow-Kiev-Astana video link-up. Apart from Russia, the center conducted surveys in Belarus, Kyrgyzstan, Azerbaijan, and Lithuania. Kyrgyzstan and Belarus were the most active to support the Eurasian integration as more than 60 percent of respondents in these countries were in favor of various forms of unifications in the former Soviet Union. 42 percent of Russian people refer to

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Kazakhstan as the most stable and successful CIS country. This rate is 8 percent higher than in 2010. The poll was conducted all across Russia, in 138 population centers in 46 regions and provinces, as well as republics of the federation. Sociologists identified three factors basing on which respondents chose the ideal partner for Russia, such as successful national development, similarity in foreign policies, and credibility of the country’s political leader.

Valeriy Fyodorov, Director General, All-Russian Public Opinion Research Centre«Considering all these aspects there were three leading countries and the hierarchy is as follows: Kazakhstan is in the first place far ahead of the rest, the second position is held by Belarus, and it’s followed far behind by Ukraine.»

Aleksei Vlassov, Director, Information Analysis Center, Moscow State University«An average Russian citizen perceives Kazakhstan and Belarus as the most consistent allies of Russia and in many respects this is a personalized trust, because for us Kazakhstan it is its President to a large extent. He is one of the most popular politicians outside Russia but also within Russia because Nursultan Nazarbayev is well-known, respected and he is treated as a person who did a lot to support Russia in the most difficult times.»

MFA Spokesman Alexander Lukashevich Interview to RIA Novosti in Relation to the Upcoming Participation of Russian Foreign Minister Sergey Lavrov in the 6th East Asia Summit in Bali, Indonesiahttp://www.ln.mid.ru/bdomp/brp_4.nsf/e78a48070f128a7b43256999005bcbb3/1d3580cb4e45d12344257949003da242!OpenDocument

1765-14-11-2011

Q: In a few days’ time, Russian Foreign Minister Sergey Lavrov will take part in the 6th East Asia Summit (EAS) in Bali. Could you tell us about the main activities of this structure?

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A: On behalf of Russian President Dmitry Medvedev, Foreign Minister Sergey Lavrov will take part in the 6th East Asia Summit to be held on November 19 in Bali, Indonesia.

The mechanism of EAS was established in 2005 at the initiative of the Association of Southeast Asian Nations (ASEAN). As a priority aim of the dialogue forum it was announced that it would work for the promotion of peace, stability and economic prosperity in the region. Key areas of practical interaction relate to areas of finance, energy, emergency response, health and education. Participants of EAS are now the 10 ASEAN countries, as well as Russia, USA, China, Japan, India, Australia, New Zealand, Republic of Korea.

Q: How does Russia assess the activities of EAS in the context of ensuring security in the Asia-Pacific region?

Answer: Russia sees EAS as an important tool for the creation of a comprehensive, balanced and open architecture of security able to effectively resist the challenges and threats common to all states in the region. This architecture should be based on the universally recognized norms of international law and collective, non-bloc principles and take into account the legitimate interests of all states. We advocate for the adoption in regional affairs of the principles of equal and indivisible security and the inadmissibility of attempts to strengthen one’s own security at the expense of others.

The Russian side intends to actively participate in the EAS in order to strengthen this mechanism of strategic dialogue of leaders. It seems reasonable for EAS to set security and cooperation architecture improvement guidelines for other regional entities such as the ASEAN Regional Forum (ARF), and the ASEAN Defense Ministers Meeting Plus (ADMM-Plus).

Q: What areas of cooperation within the EAS are of practical interest for Russia?

Answer: Russia’s joining the EAS in 2010 fully corresponds to the policy defined by President Medvedev for actively involving our country in the integration processes in the AP region. Participation by Russia in this forum will contribute to harnessing the potential of the AP region in our efforts for the modernization and innovative development of the

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country and for the socioeconomic uplift of Siberia and the Russian Far East.

Russia stands ready to join EAS collaborative efforts on five sectoral themes – finance, energy, emergency response, health and education. Relevant Russian ministries and departments are going to participate in joint programs under the relevant sectoral mechanisms of EAS. This will allow for making use of our best practices in areas such as energy security and power, including nuclear, development, the prevention and mitigation of natural disasters, etc.

Q: Are there plans to adopt official documents at the conclusion of the East Asia Summit?

A: Its main outcome document will be the East Asia Summit Declaration on the Principles for Mutually Beneficial Relations that will create the political basis of the EAS mechanism. Inter alia, it is going to reaffirm adherence to universal international norms and principles – respect for the sovereignty and territorial integrity of states, renunciation of the use of force, the settlement of interstate disputes by peaceful means, and the recognition of cultural and ethnic diversity of the region.

The ASEAN partners have also proposed to adopt a Declaration on ASEAN Connectivity. This document refers to support of EAS-led work to create a highly integrated community of the ten ASEAN countries.

The content and results of the discussion will be reflected in the traditional Chairman's Statement.

The Russian side is actively involved in the preparation of the outcome documents.

November 14, 2011

Top law experts to mull BRICS countries’ legal challenges in Moscowhttp://en.rian.ru/agency_news/20111116/168745664.html

13:16 16/11/2011

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MOSCOW, November 16 (RIA Novosti)

More than 300 lawyers from Brazil, Russia, India, China and South Africa will convene in Moscow December 1-2 to discuss legal challenges faced by governments and businesses in the BRICS countries as they push for modernization.

“We hope that this event will become a unique platform for starting a full-fledged dialog between all parties involved in legal relations, and that it will provide solutions to current issues faced by modern jurisprudence,” said Oleg Yefrosinin, chief editor of the Russian Legal Information Agency RAPSI.

The international congress on law and modernization is organized by RAPSI and RIA Novosti with the support of the Russian Bar Association and the Ford Foundation.

The congress’s day one agenda includes reports by Russian Justice Ministry officials on how the government acts to improve legal awareness in Russia, and senior court officials will talk about training world-class law professionals in Russia.

Other discussions will focus on legal issues involving media and the internet, free legal help programs in Russia and on the latest amendments to the Russian Criminal Code, which had been introduced in order to protect local businesses.

On the second day, participants will discuss differences between Russian and foreign clients and criteria used by Russian and foreign law firms in choosing partners. They will also look into how top law firms could provide quality services to Russian businesses and into how they can bypass intermediaries in dealing with major clients.

The International Legal Congress, Law and Modernization: Experience, Outlook and Trends, will be held in Russian and English (with simultaneous translation).

Please visit www.ilc.ria.ru to register. Registration deadline: November 25.

Please contact Olga Kostikova for questions regarding participation in the Congress: 7 (495) 645-6601 (7067) or email to: [email protected]

Venue: 4 Zubovsky Bulvar, RIA-Novosti’s International Multimedia Press Center, Moscow, Russia.

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Belarus to export 3.7m tonnes dairy products to Russia in 2012 http://www.blackseagrain.net/photo/belarus-to-export-3.7m-tonnes-dairy-products-to-russia-in-2012

In 2012 Belarus plans to supply Russia with 3.7 million dairy products and 220,000-280,000 tonnes of sugar. The volumes of supplies are coordinated with the Russian Federation, Agriculture and Food Minister of Belarus Mikhail Rusyi reported to Belarus President Alexander Lukashenko during his working trip to Minsk Oblast on 15 November.

“We agreed the milk supply forecasts with Russia. In 2011 we supplied 3.6 million tonnes of milk to Russia. We have agreed on 3.7 million tonnes for 2012,” Mikhail Rusyi said.

“With regard to exports of sugar to Russia, shipments are expected to equal 220,000-280,000 tonnes. “We are satisfied with this volume,” the minister said. Belarus is set to produce 580,000-590,000 tonnes of sugar form beets, Mikhail Rusyi informed.

Nov 16, 2011 - 08:09

Russian nuclear site fuels controversy http://www.swissinfo.ch/eng/politics/Russian_nuclear_site_fuels_controversy_.html?cid=31570908

by Julia Slater, swissinfo.ch

One of Switzerland’s leading energy utilities, Axpo, has announced that it is suspending uranium imports from the controversial Mayak processing plant in Russia.

The Mayak plant in the Urals – on the border between Europe and Asia – has long been in the sights of environmentalists such as Greenpeace. A devastating explosion in the 1950s was hushed up for decades, but Greenpeace says nuclear contamination continues.

The reprocessed uranium is the fuel used for the Beznau nuclear power plant in northern Switzerland. Axpo will compensate for the shortfall from Mayak by importing more from

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Seversk in Siberia. But Greenpeace has serious reservations about Seversk too. The future of imports from Mayak had been in the balance since June, when a planned visit by representatives of Axpo was called off at short notice by the Russian side, on the grounds that the plant is located in a closed military area. Axpo has still been unable to inspect the site, and on Saturday announced that it was to “forgo uranium from Mayak until the necessary transparency is established”.

Supply chain

The uranium does not come directly from the Russian plants to Switzerland. Axpo has a contract with the French energy group Areva, which in turn gets it from an enriching plant in the town of Elektrostal, which sources it from different Russian plants, as Axpo spokesman Rainer Meier explained to swissinfo.ch. “We will now establish a deal with Areva that they guarantee that our fuel is compiled without any uranium products from Mayak,” he said. Meier strenuously rejected the idea that Axpo’s announcement was just a public relations exercise, in reaction to the widespread criticism of the Mayak plant. He pointed out that Axpo has always taken environmental concerns very seriously. It was the company’s desire for transparency that offered Greenpeace a way to challenge some of its other information, which led Axpo to trace back the supply chain of the Russian fuel.

Who’s next?

Patricia Marie, head of Areva’s press service, told swissinfo.ch Axpo is the only client which has decided against using Mayak uranium. Alpiq, the Swiss company which supplies the Gösgen nuclear power plant, is not following suit. “We’ll see if other clients go the same way. But this is really a decision by Axpo which has set itself very wide-ranging transparency requirements,” Marie said. 

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Indeed, Florian Kasser, nuclear campaigner for Greenpeace Switzerland, explained to swissinfo.ch that the Swiss section of the organisation had been able to put pressure on Axpo precisely because the company makes much of its environmental credentials. But he believes it is not the end of the affair. “Axpo’s decision sends a clear message, and not only within Switzerland. Nuclear power station operators will be much more concerned about the source of their fuel in future,” he said.

Greenpeace

Axpo is in dialogue with Greenpeace, and has passed many of the organisation’s questions on to Rosatom, the Russian agency with overall responsibility for atomic power. It has also had water samples analysed that Greenpeace supplied from the contaminated river Techa near Mayak. Kasser welcome the suspension of imports from Mayak as “a step in the right direction”. “But they have said they will increase imports from Seversk and at the moment we really can’t understand that, since the environmental problems around Seversk are comparable to those at Mayak.” The key concern at Seversk is that radioactive waste is injected directly into the ground – a means of disposal that Kasser described as “absolutely unthinkable” in the west. There’s a “total discrepancy” between Axpo’s avowed goals of sustainability and the disposal practices at Seversk, Kasser maintained.

Rosatom

Axpo is in dialogue not only with Greenpeace, but also with Rosatom. Meier described the attitude of officials there as “western-style and open”. While Kasser agreed that Rosatom has got away from Soviet-style secrecy, he is less convinced that it is totally open. “We see in our discussions with Axpo that Rosatom has tried to provide it with information about its activities – but only a small part of the required information

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and often on condition that it isn’t made public,” he explained. But Marie of Areva has quite a different take on what is going on in Mayak. She assured swissinfo that the company had been able to send its own inspectors to those parts of the site that are not closed for military reasons. “We have a code of standards, and we don’t buy just anywhere without checking. The results of the audits we have carried out there were completely satisfactory so there is no reason not to work with Mayak.”

Julia Slater, swissinfo.ch

RT News line, November 16

Russian spacecraft successfully docks with ISShttp://rt.com/news/line/2011-11-16/#id22087

A Russian Soyuz TMA-22 spacecraft has successfully docked with the International Space Station early Wednesday. The spacecraft docked at the orbiting station several minutes ahead of schedule, with the docking procedure broadcast live. A rocket carrying the Soyuz blasted off from the Baikonur Cosmodrome in Kazakhstan on Monday. The Soyuz was carrying three astronauts, two from Russian space agency Roscosmos and one from NASA.

Russia to conduct test launch of Bulava missile in Novemberhttp://en.rian.ru/mlitary_news/20111116/168743359.html

12:15 16/11/2011

SEVERODVINSK, November 16 (RIA Novosti)

Russia will carry out the last test of the Bulava ballistic missile this year by the end of November, a defense industry source said on Wednesday.

 

“It will be a salvo launch from the Yury Dolgoruky strategic submarine, and it will involve at least two missiles,” the source said.

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The planned test is the fourth this year and the 18th overall. Despite several previous failures, officially blamed on manufacturing faults, the Russian military has insisted that the Bulava will be the main armament of the next generation of strategic submarines.

 

The Bulava (SS-NX-30) submarine-launched ballistic missile carries up to 10 MIRV warheads and has a range of over 8,000 kilometers (5,000 miles). The three-stage missile is designed for deployment on Borey-class nuclear submarines.

 

Russia’s first Borey class submarine, Yury Dolgoruky, which has recently completed sea trials in the White Sea, is expected to enter service with the Russian Navy in the near future, pending the outcome of the Bulava testing.

 

Meanwhile, a Russian Navy source told RIA Novosti on Wednesday that the second Borey class submarine, the Alexander Nevsky, will start its second stage of sea trials in the next three days if weather permits.

 

“The submarine is ready for sea trials to test its performance and communications,” the source said.

 

The $750-million vessel is expected to complete all trials and enter service with the Russian Navy in 2012.

 

Two other Borey class nuclear submarines, the Vladimir Monomakh and the Svyatitel Nikolai (St. Nicholas) are in different stages of completion. Russia is planning to build eight of these subs by 2015.

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http://www.prime-tass.ru/news/0/%7B15F774E4-22F4-4F1D-BD5E-B41FD73EF03A%7D.uif

GOOGLE TRANSLATION

Glonass-M to be launched from Plesetsk on Nov 28 – Ministry of Defense

MOSCOW, November 16 - PRIME. Launching a spacecraft "Glonass-M" from Plesetsk (Archangelsk region) is scheduled for November 28, told reporters Wednesday the official representative of the Space Forces Col. Alexei Zolotukhin, RIA Novosti reported."The optimum launch date of the spacecraft" Glonass-M "to launch it in as close to the orbital position of the working point defined by November 28," - he said.According Zolotukhin, now at the Plesetsk space center continues the planned activities for the preparation of the carrier rocket "Soyuz-2" for the launch of the spacecraft. Experts have already completed the assembly of the Baikonur space head part, consisting of the upper stage "Fregat" and satellite "GLONASS-M", tested off-line tanks for fuel, on-board sensors, propulsion, control system booster, and conducted comprehensive tests transcripts system booster.The last cluster launch three satellites "Glonass-M" from the Baikonur Cosmodrome (Kazakhstan) was made on November 4. Satellites to the end of December to begin work as part of the navigation system, with a few of them will be transferred to the reserve.Formation constellation system, designed for simultaneous operation of 24 space vehicles "Glonass", was completed by running the 3 October and the subsequent commissioning of the next satellite "GLONASS-M." It was launched from the Plesetsk cosmodrome. The signal of the Russian satellite navigation system became available for the reception without any restrictions around the world after the commissioning of the spacecraft. There were 24 operating satellites in orbit, "Glonass", transmitting navigation signal, enables continuous navigation throughout the globe.16.11.2011 11:49

Famous Chechen poet shot dead in 'contract killing'http://en.rian.ru/crime/20111116/168737590.html

09:33 16/11/2011

MOSCOW, November 16 (RIA Novosti)

Prominent Chechen poet Ruslan Akhtakhanov who had angered Muslim separatists in the North Caucasus was shot dead in Moscow.

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Akhtakhanov was shot five times in the head and leg as he parked his car on Begovaya St. late on Wednesday, police said.

He was a fervent advocate of Chechnya’s integrity within Russia and was also believed to have spent 47 days held hostage by Chechen separatists.

Akhtakhanov was also a member of Russia’s Writers Union.

Authorities are treating the incident as a contract killing.

“The way in which the murder was carried out suggests it had been ordered,” Investigative Committee spokesman Vladimir Markin told reporters on Wednesday.

The gunmen escaped in a Ford Focus car which was later found burn out in the Russian capital’s southwest.

An investigation is under way.

Akhtakhanov murder similar in style to Budanov’s – source 16/11/11 7:55AM GMT

MOSCOW. Nov 16 (Russia News) – The masterminds of Russian Army Colonel Yury Budanov’s murder could be involved in the killing of Chechen…

http://www.interfax.ru/news.asp?id=217047

GOOGLE TRANSLATION

The investigation revealed similar killing of Akhtakhanovs and Budanov

November 16, 2011 11:38Moscow. On November 16. INTERFAX.RU - the murder of Chechen poet Ruslan Akhtakhanovs may be involved in the person who organized the murder of the Russian army Colonel Yuri Budanov, "Interfax" on Wednesday, a law enforcement source.According to him, writing is much like the killers to hand the criminals who killed Budanov. It is not excluded that for both crimes involved the same person. Interlocutor of the agency said that this version is now actively studying investigative team."In both cases, the perpetrator acted in the same pattern: attack occurred in a public-lit area near the center of the city, fired several shots at the victim,

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including the head, as well as ways to escape from the identical scene of the murder and subsequent destruction of the car," - said the source .In addition, he noted, "in both cases used weapons grade" Iz, "and on machines that have escaped killer - numbers previously stolen from the cars of the same brand."

10:45 16/11/2011ALL NEWS

Chechen woman points to cache with 300 kg of TNT

http://www.itar-tass.com/en/c154/273125.html

GROZNY, November 16 (Itar-Tass) — A woman from the Vedeno district of Chechnya informed the police about a cache with 300 kilograms of TNT, the press service of the republican police told Itar-Tass on Wednesday.

A woman from the village of Dyshne-Vedeno informed that her son planted a cache back in 2007. He was a member of the gang and was destroyed in a special operation last December. Five bags with TNT with a total weight of about 300 kilograms were dug in the ground 70 meters away from the house of the woman.

The investigation into to the incident continues. The explosives were brought for an expertise.

RT News line, November 16

Police discover hideout with 300 kg of explosives in Chechnyahttp://rt.com/news/line/2011-11-16/#id22099

Police have discovered a hideout with 300 kilograms of explosives in the southeast of Chechnya, RIA Novosti reports Wednesday. A woman from a local village told police that four years ago her son had buried something not far from their home. When police dug at the indicated place they found five sacks wrapped in plastic. Inside was a substance resembling TNT. Samples of the substance were taking to a lab to be examined. Police say the man who made the hideout belonged to a group of militants and was killed by security forces during a special operation in December 2010.

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November 16, 2011 11:42

In-absentia verdict against Fargoil ex-chief takes effecthttp://www.interfax.com/newsinf.asp?id=287658

MOSCOW. Nov 16 (Interfax) - The Moscow City Court has upheld a verdict issued by the Basmanny Court in Moscow on July 18 against former head of the Yukos subsidiary company Fargoil Antonio Valdes-Garcia, sentencing him to eight years at a high-security prison for embezzlements and money laundering.

The court has thus rejected a cassation appeal filed by Valdes-Garcia, and the lower court's ruling entered into force.

The lawyers had asked the higher court to overturn the verdict and to drop criminal charges due to the defendant's innocence.

The crime pattern coincided with the one of the second case of former Yukos CEO Mikhail Khodorkovsky and former Menatep Group head Platon Lebedev - the buying of crude from producers at prices detectives described as insufficient.

In 2005, Valdes-Garcia was one of the defendants in the case of money theft from Yukos.

According to some reports, he voluntarily contacted Russian law enforcement bodies and requested state protection in exchange for cooperation with the investigation. Upon his arrival in Russia, he was arrested and interrogated.

Later, he was released against a travel ban, but in 2006, at the time of the presentation of the Yukos case, he fled, after which the Basmanny Court in absentia issued an order for his arrest. His case was separated and suspended.

According to the inquiry, as a result of the activity of an organized criminal group consisting of Valdes-Garcia and Ratibor ex-director Vladimir Pereverzin, $13 billion were stolen, $8.5 billion of which were legalized. The court ruled that the members of the criminal group, operating through Yukos-controlled firms and acting as their fictitious owners, were buying out crude oil at artificially low prices and then sold it at inflated prices (the price was 3.5 times the real value).

In 2007, Malakhovsky and Pereverzin were sentenced to 11 and 12 years of imprisonment. The court also granted a total of 340 billion rubles in damages in the case: 77 billion rubles to Samaraneftegaz, 160 billion rubles to Yuganskneftegaz and 93 billion rubles to Tomskneft.

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Khodorkovsky and Lebedev, who were questioned as witnesses in the Valdes-Garcia case in June 2011, said Valdes-Garcia did not have sufficient powers to commit the crime of which he is charged.

kk jv

(Our editorial staff can be reached at [email protected])

Otkritie Exec Accused of Embezzlement 16 November 2011Bloomberg

Russian brokerage Otkritie Financial, partly owned by state-run VTB Group, said in a civil lawsuit that a senior executive in its London office embezzled at least $17.8 million in signing bonuses meant for colleagues.

George Urumov told Otkritie when he joined the bank as global head of fixed income in January that he would bring four colleagues with him from Knight Capital Group Inc. if they all received $5 million "golden hellos," the brokerage said in a lawsuit filed in London on Oct. 6. Instead, Urumov arranged for three payments, of $500,000, $750,000 and $1 million, and kept the remainder of the $25 million pool, according to the filing.

Otkritie, based in Moscow, said it suffered a loss of at least $23 million through the deception. While at Knight Capital, Urumov "built a successful franchise in less than 18 months, trading in excess of $100 billion of bonds," Otkritie said in a statement Jan. 17. Before Knight Capital, he worked for HSBC Holdings, where he was director of trading for Europe, the Middle East and Africa, and as a trader for Lehman Brothers Holding, according to Otkritie.

Read more: http://www.themoscowtimes.com/news/article/otkritie-exec-accused-of-embezzlement/447914.html#ixzz1dr9K33rs The Moscow Times

Russian voters offered new Internet serviceshttp://english.ruvr.ru/2011/11/16/60465596.html

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Nov 16, 2011 09:48 Moscow Time

Russia’s Central Election Commission has opened a number of new information services which are available to the public on the Commission’s website.

Due to the new Internet service, voters can easily find the address of their polling stations and their names on the voter lists.

Parliamentary elections in Russia will take place on December 4th .

All seven political parties registered by the Justice Ministry will compete for seats in the lower house of the Russian parliament – the State Duma.

(TASS)

Nashi to Flood City for Elections 16 November 2011The Moscow Times

A Moscow forum is expected to draw up to 30,000 supporters of the pro-Kremlin youth group Nashi to the capital just in time for the State Duma elections, Gazeta.ru reported Tuesday.

Nashi activists have been asked to sign up on the Vkontakte social networking site for the youth forum running from Dec. 4 to 6 — overlapping with election day on Dec. 4.

The forum will be similar to the Nashi-organized camp near Lake Seliger, but with covered tents due to the cold and buses to the polls standing by.

Participants "have the right to bring their absentee ballots" enabling them to vote, Nashi commissar Liana Azizyan told the online newspaper.

The announcement of the Nashi event comes after opposition parties declared their intention to stage mass protests during the elections, which they say will likely be marred by widespread violations.

Nashi was nominally founded in 2005 as an anti-fascist movement, although speculation has circulated that its real goal is to harass the Kremlin's opponents.

Read more: http://www.themoscowtimes.com/news/article/nashi-to-flood-city-

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for-elections/447898.html#ixzz1dr9BUw2U The Moscow Times

NGO Prints Advice For Army Recruitshttp://www.times.spb.ru/index.php?action_id=2&story_id=34821

By Galina StolyarovaThe St. Petersburg TimesPublished: November 16, 2011 (Issue # 1683)

When what is supposed to be a standard process of drafting army conscripts becomes a nocturnal raid or semi-criminal ensnarement, a new book compiled by the local NGO Soldiers’ Mothers may come in handy.

The Russian army has for many years been notorious for its hazing, high suicide rates and severely ill young men being drafted in a desperate effort by the military authorities to fill the minimum quotas for recruits.

It is an open secret that the military is one of the most corrupt spheres of life in the country, and with brutal hazing rampant in the armed forces, many young men are willing to bribe their way out of performing their compulsory national service.

Yury Khromov, head of the civilian enquiries department of the city’s military commission, said that this year in the Leningrad Oblast alone, 8,000 young men are officially listed as draft evaders. Khromov was speaking at the presentation of the Soldiers’ Mothers book, titled “Defending the rights of conscripts and recruits,” at the Regional Press Institute on Tuesday.

Men are listed as draft dodgers if they sign to confirm that they have received a summons and then fail to appear at a given time. Many young men go to great lengths to avoid confirming that they have received the summons, discarding them from their postboxes and pretending not to have received anything, so the local military officials have developed illegal schemes to track down potential recruits. Tactics documented by Soldiers’ Mothers include raiding apartments at night, seizing young men from public places and arranging a spontaneous fast-track medical examination and immediate departure to an assigned military base.

“It is done so quickly that within a matter of several hours, a young man can be grabbed on the street, examined, declared fit for service and promptly sent away,” said Oksana Paramonova, an activist with Soldiers’ Mothers, which exists to protect the rights of army recruits and their families.

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“One of the crucial things for potential conscripts and their loved ones to remember is never to switch off their cell phones: It is illegal for the military commission to say that a conscript cannot get in touch with a family member or a lawyer. If young men are detained, they should insist that an official report be compiled.”

According to estimates by Soldiers’ Mothers, there are tens of thousands of deserters in Russia at any given time.

Helping frightened young men evade the draft, it appears, is a booming business in Russia. Leaflets and advertisements for scores of dodgy firms can be found pasted on the walls of metro stations, bus stops and apartment buildings across the country.

Such services are not cheap, with costs amounting to up to several thousand euros. And, even at the high prices charged, there are no guarantees.  

“It is not a complicated scheme: What happens is that a lawyer in these draft-dodging firms handles the negotiations with military commissions,” said Ella Polyakova, chairman of Soldier’s Mothers. “If something goes wrong, naturally, no refund is given.”

All Russian men between the ages of 18 and 27 are required to serve in the armed forces. The Kremlin has long promised reform, but has refused to abandon conscription. Every year, thousands avoid service by bribing officials or faking medical ailments.

At the same time, Polyakova said, vast numbers of men with genuine health complaints get drafted, which can result in their condition becoming exacerbated, or even lead to their death during military service.

“It often starts at the draft center,” she said. “I cannot count the number of times we have arranged for an ambulance to be sent to draft centers. Very often, civilian doctors cannot even get access to the patient — which is also illegal — so the situation desperately lacks transparency and requires investigation.”

Human rights advocates insist that the current risks of being in the Russian army are so high that a moratorium on compulsory military service must be considered unless a less dangerous and more transparent system is created.

The Defense Ministry estimates that between 500 and 1,000 recruits die from non-combat-related causes every year in Russia. But human rights groups contest official statistics and claim the actual number is as high as 3,000.

Non governmental organizations stress that it is extremely difficult for them to provide civil monitoring of the investigations of army deaths, including suicides. Although in theory, human rights organizations are not only permitted but officially invited to participate in the work of military conscript commissions,

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when it comes to actually giving seats to the representatives of NGOs, the authorities tend to avoid pressure groups that provide tangible civil monitoring, rather than providing a nominal presence on the board.

Polyakova’s Soldiers’ Mothers group has been denied a place on the grounds that the NGO, which challenges the authorities by publicizing and providing legal representation for cases of human rights abuses is “a destructive organization that effectively discredits the Russian army.”

November 16, 2011 12:42

Rescuers find missing Captain Kuznetsov ship (Part 2)http://www.interfax.com/newsinf.asp?id=287679

MOSCOW. Nov 16 (Interfax) - Rescuers have found the Captain Kuznetsov motor ship, which disappeared earlier in the White Sea, the Russian Transport Ministry told Interfax.

"The Captain Kuznetsov motor ship was found at the estimated search location, it is adrift. In two hours it should be approached by the Dixon icebreaker," the source said.

On Wednesday, apart from the Vladislav Strizhov owned by Gazprom (RTS: GAZP), the search and rescue operation will be carried out by the Dixon icebreaker of the Arkhangelsk branch of the federal state unitary enterprise Rosmorport and the Captain Martyshkin tug boat from the Murmansk Basin Emergency and Rescue Directorate, the Transport Ministry said earlier, citing the State Sea Rescue Coordination Center.

The vessel was found at 11:30 a.m. on Wednesday, according to the regional office of the Russian Emergency Situations Ministry.

The vessel was found adrift "at 11:30 a.m. by an (Ilyushin) Il-38 aircraft of the Defense Ministry," the ministry said.

It was reported earlier that contact was lost with the dry cargo carrier Capitan Kuznetsov, which had left Varandei Port and was heading to Arkhangelsk, on the White Sea.

The Capitan Kuznetsov is a river-sea vessel, which is owned by Northwest River Shipping Company. Its home port is St. Petersburg.

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PRESS DIGEST - Russia - Nov 16http://www.reuters.com/article/2011/11/16/press-digest-russia-nov-idUSL5E7MG03020111116

2:37am EST

By Tatiana Ustinova

MOSCOW, Nov 16 (Reuters) - The following are some of the leading stories in Russia's newspapers on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

VEDOMOSTI

www.vedomosti.ru

- EBRD Director Thomas Mirow believes that Russia is in a better economic situation than European countries.

- Almost 30 percent of Russians agree that the country's current political system is becoming more and more reminiscent of the Soviet system, according to Levada's recent opinion survey.

KOMMERSANT

www.kommersant.ru

- The Central Election Committee head Vladimir Churov says he suspects the OSCE vote monitoring delegation violated Russian law by commenting on the election campaign leading up to the Dec. 4 parliamentary vote.

- Qatar, one of Russia's top rivals on the global gas market, may get a stake in Russia's second largest natural gas producer Novatek, the daily says citing energy ministers of two countries.

- The CEO of French investment bank Natixis Corporate Solutions has agreed to invest 735 million euros ($994 million) in the development of ski resorts in Russia's North Caucasus, the daily reports.

- Syria's opposition has left Moscow with empty hands, the daily says, referring to Russia's refusal to help force Syria's President Bashar Assad to resign.

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IZVESTIA

www.izvestia.ru

- Russia's newly built frigate called Dagestan, expected to reinforce the country's Caspian Sea Naval Fleet, has been severely damaged during the storm near the Black Sea Novorossiisk naval base as the team failed to take the vessel to a safe off-shore distance.

- Russia could introduce post-flight drug and alcohol tests for airplane pilots.

NEZAVISIMAYA GAZETA

www.ng.ru

- Russian leaders' election promises exceed budget spending plans for next year, the daily says. State financing of healthcare, education and housing is expected to drop in 2012 while spending on defence and security is expected to rise.

ROSSIISKAYA GAZETA

www.rg.ru

- Prosecutors in the town of Nizhny Tagil are investigating the death of a three year old boy after he was taken from one hospital to another over the course of six hours as doctors failed to diagnose his illness.

MOSKOVSKY KOMSOMOLETS

www.mk.ru

- Russia seems to be preparing for a war, the daily says commenting on the list of professions the government has chosen to support with scholarships, including jobs with ballistic and laser expertise.

November 16, 2011 10:47

Moscow press review for November 16, 2011http://www.interfax.com/newsinf.asp?id=287638

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MOSCOW. Nov 16 (Interfax) - The following is a digest of Moscow newspapers published on November 16. Interfax does not accept liability for information in these stories.

VEDOMOSTI

Gazprom (RTS: GAZP) has disclosed the share of Russian sales that it has ceded to its competitors. Gazprom Deputy Chairman Valery Golubev made public the company's evaluation of independent gas producers' share on the domestic market. His presentation suggests that independent producers may contribute 98.5 billion cubic meters of gas to the unified gas transportation system in 2011, or 26.8% of all supplies on Russian territory expected this year (368.2 billion cubic meters). ('Yielding Russia')

The financial crisis will last several years, but the euro will remain strong and will be dominating, European Bank for Reconstruction and Development President Thomas Mirow said in an interview with Vedomosti when asked about his outlook on the euro's future. Mirow does not expect that some countries could leave the Eurozone. He also opined that Russia's economy is currently in a better condition than the European one, but it will have to compete for foreign investors with China and Brazil. ('Capitals Won't Come Easily, Says Thomas Mirow, European Bank For Reconstruction And Development President')

Sberbank has become the third largest bank in Europe in terms of its capitalization. It cost $60 billion on November 14, which is $3 billion more than BNP Paribas following it on the list. Sberbank is currently valued higher than UBS, Deutsche Bank, Barclays, and Royal Bank of Scotland, trailing only Britain's HSBC ($123.6 billion) and Spain's Banco Santander ($68.2 billion). Sberbank plans to be among the top ten most expensive public banks in the world by 2014. ('Third In Europe')

MegaFon's (RTS: MEGF) OIBDA margin decreased by 4.2 percentage points to 41.9% in the third quarter of 2011. The operator attributes this drop to the fact that it has started to pay more dealer commissions for new subscribers and for payment processing. ('MegaFon Generous With Dealers')

While Skylink, which Rostelecom (RTS: RTKM) plans to buy from Svyazinvest, is valued within a range of 7 billion to 11 billion rubles, Svyazinvest is unlikely to sell it cheaper than at 9.4 billion rubles. ('Skylink Valued In Big Way')

KOMMERSANT

A joint project of the Russian automaker GAZ and FAW envisions the production of 10,000 Chinese trucks a year by the Ural Automotive Plant, part of the GAZ group, starting 2012. A VTB (RTS: VTBR) loan amounting to 38 billion rubles will help finance the project, as well as the group's entire record investment

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program for 2012, which will refinance its previous borrowings and postpone the repayment of the principal debt for two years. (Page 11, 'Chinese To Come To Russia From Urals')

VTB Capital and Georges Polinski may buy back European Media Group (EMG) operating the radio networks Europa Plus and Retro FM from the French-based group Lagardere. EMG is valued at $130 million-$200 million. (Page 9, 'VTB Looking For Window To Europa Plus')

Russian Press at a Glance, Wednesday, November 16, 2011http://en.rian.ru/papers/20111116/168739489.html

09:39 16/11/2011

POLITICS

Less than three weeks before State Duma elections, top elections official Vladimir Churov has signaled his disdain for Western elections observers by announcing an investigation into whether preparations for one observer mission had broken the law.

(The Moscow Times, Kommersant)

Sergei Mironov, the leader of the A Just Russia party faction in the lower house of parliament, has proposed making officials who are responsible for road repair and maintenance criminally accountable for their negligence.

(Kommersant)

Russian Post complained to Prosecutor General Yury Chaika about Communists who searched the postal operator’s car on Sunday. The Communists said no one attacked the vehicle.

(Kommersant)

President Dmitry Medvedev pushed for introducing antitrust regulations in housing construction in the regions, and criticized local authorities for patronizing some developers and limiting competition.

(The Moscow Times)

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Tajikistan appeared ready to cave in to Kremlin pressure, as prosecutors asked a court to reduce harsh sentences against a Russian pilot jailed on murky charges last week with an Estonian colleague.

(The Moscow Times)

Customs control procedures for Russians traveling to Ukraine will be simplified.

(Rossiiskaya Gazeta)

ECONOMY & BUSINESS

The North Caucasus Resorts company managed to get one more investor involved in the construction of five mountain ski resorts worth over €10.8 billion.

(Kommersant)

Budget surplus for the first ten months of 2011 totaled 1.4 trillion rubles ($45.5bn), according to a preliminary forecast by the Finance Ministry.

(Vedomosti)

SOCIETY

Prime Minister Vladimir Putin met with rural intellectuals in the Belgorod Region.

(Kommersant, Rossiiskaya Gazeta)

The Supreme Court on Tuesday upheld a plan to carve out a plot of land from a wildlife reserve on the Black Sea for what evidence suggests is a Kremlin-connected luxury resort.

(The Moscow Times)

About 25 percent of Russians believe the country has the cult of Vladimir Putin’s personality, the Levada-Center pollster said; the figure was 10 percent in March 2006.

(Vedomosti)

For more details on all the news in Russia today, visit our website at http://en.rian.ru.

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Belarus-Russia: Optimistic Rhetoric and Unsolvable Contradictions http://belarusdigest.com/story/belarus-russia-optimistic-rhetoric-and-unsolvable-contradictions-6482

Published: 16 November 2011

Last month Vladimir Putin published an article, dedicated to integration in the post-Soviet space in a major Russian daily “Izvestiya” . Among other, Putin underscored that Russia didn’t propose to restore the Soviet Union. However, he noted that “close integration, grounded on new values and a new political and economic foundation, was a call of the times”.

“We suggest a powerful supranational association capable of becoming one of the poles in the modern world and serving as an efficient bridge between Europe and the dynamic Asia-Pacific region. This project also implies transitioning to closer coordination in economic and currency policies in the Customs Union and the Single Economic Space and establishing a full-fledged economic union”, Putin wrote. How does Belarus fit into the new integration architecture?

Judging from Putin’s saying, Russia supports transforming the Customs Union into the Single Economic Space and the Euroasian Union later on. The supranational bodies are expected to gain more and more power. They will be formed in accordance with the ‘weighted representation’ principle, i.e. with the dominant role of Russian representatives. Belarus and Kazakhstan make the first objects of Russian integration plans, to be followed by Kyrgyzstan and Tajikistan.

In Putin’s opinion, integration means among other free penetration of Russian business into the economic space of partnering states and buying up assets there. The program suggests strengthening Russia’s economic and political positions in the Single Economic Space states and in the Eurasian Union later on as well as the partners’ closer connection to Russia.

Putin’s long-term project suggests including any other willing post-Soviet states into Russia’s sphere of influence, i.e. the Eurasian Union, in the long run. He recalled Ukraine among other countries in this context.

Lukashenka's reponse

Alyaksanr Lukashenka published his response to Putin’s suggestions in “Izvestiya” on October 17, 2011. He noted that he fully agreed to the Russian Prime Minister’s opinion and specified that the article could be regarded as Putin’s “foreign policy election pledges”.

Lukashenka positioned himself as a convinced supporter of integration in the post-Soviet space. "I’ve never concealed my opinion that the collapse of the

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Soviet Union is the greatest tragic mistake of XX century. It should and could have been developed, modified, but not destroyed. When all civilized countries had been following the difficult path towards unification for decades, we destroyed at one stroke our greatest asset - the unity and cooperation, to please someone’s ambitions and interests", stated Lukashenka.

Also, Lukashenka approved the idea of creating the supreme integration body in the form of the Eurasian Union.

“It is not an easy task to construct such a union. After all, when reaching the ultimate level of economic integration, we will face the need to create solid social and political topside with common values, legal framework, living standards and benchmarks. We will not be able to avoid a gradual consensus-based development of some supranational bodies, including political bodies. We accept the need to consider introducing the single currency. Time will show,” Lukashenka said.

However, Lukashenka’s opinion contradicted Putin’s program of getting Russia’s neighbors involved in the sphere of its influence and imposing its will on them, due to holding domineering positions in the supranational bodies.

Lukashenka reiterated the notion of ‘equality’ in his article. According to him, integration with Russia means the Eastern neighbor’s open market for Belarusian commodities and equal conditions for economic entities. Among other, it presupposes getting Russian energy carriers at Russian domestic prices and canceling customs fees for oil and oil refinery products, imported to Belarus.

Once again, Lukashenka aired a totally unacceptable idea for Russia. Thus, he noted that due to joining the Single Economic Space Belarus will get an opportunity of importing the Kazakh oil through Russian pipelines.

Talking about foundation of supranational bodies, Lukashenka underscored the necessity to keep to the principle of equality and consensus of stakeholders (i.e., ‘one country – one vote’). However, in this case, the broadening of integration space will mean that Russia will have smaller proportional representation in the supranational bodies. Thus, if Kyrgyzstan and Tajikistan join the Single Economic Space, Russia will have 1/5th of general representation in the supranational bodies only. Thus the neighbors of Russia will have more opportunities to block the Kremlin’s unattractive initiatives.

Lukashenka’s statement about the necessity “to consider the issue of introducing a new common currency from the practical standpoint” within the framework of the Eurasian Union won’t evoke much enthusiasm in the Russian government too. It is worth mentioning that Lukashenka used to state that he supported introduction of Russian ruble as a monetary unit in Belarus. However, he used to emphasize that it could be possible if the Central Bank of Belarus was authorized to currency issue alongside with the Central Bank of Russia. 

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Russia considers these requirements unacceptable. 

Andrei Liakhovich

 

Andrei Liakhovich is a contributing author. He directs the Center for Political Education in Minsk.

Russian businessmen evacuate country 

Corruption rampant By Con Coughlin, The Daily Telegraph November 16, 2011 4:11 AM

Read more: http://www.windsorstar.com/news/Russian+businessmen+evacuate+country/5717006/story.html#ixzz1drGcaIGo

Up to 30,000 bankers, businessmen and financiers have been driven out of Russia by Vladimir Putin's evertightening grip on the country's political and commercial life, according to a prominent exile at the centre of a banking controversy.

Russians who have been forced to live overseas also estimate that tens of billions of pounds worth of assets have been illegally seized by the Russian government as Putin has strengthened his power base. According to Andrey Borodin, the former head of the Bank of Moscow, the talent drain will only increase when Putin, currently prime minister, runs for re-election as president in March - a poll he is almost certain to win.

"We call ourselves Putin's exiles," he said in an interview with The Daily Telegraph, his first since fleeing Russia last year.

He said Putin and President Dmitry Medvedev, who is expected to swap jobs with his mentor, were "using the law to act as gangsters."

"But unlike gangsters in the West they have one big advantage: they have the police, the prosecutors and the judges on their side," he said.

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Exiled Russian businessmen had, he said, pooled their knowledge to estimate that about 30,000 people have fled Putin's rule since he first became president 10 years ago, settling in Britain, Europe and America.

Borodin was regarded as one of Russia's leading bankers after he succeeded in turning the Bank of Moscow into one of Russia's biggest financial institutions.

When he joined the bank in 1996, it had a staff of just six. By the time he left at the end of 2010 it employed several thousand and enjoyed a multibillion dollar valuation.

In building the fifth largest bank in the country, he benefited from the sort of political protection that is vital for businessmen to succeed in Russia.

In his case it came from Yuri Luzhkov, the former mayor of Moscow. "We had a very good working relationship. The mayor's political weight would stop any hostile acts against the bank," he said.

In September 2010 Luzhkov was dismissed on the orders Medvedev shortly after criticizing the president and after several claims of corruption.

Borodin was forced to resign as the bank's president and found himself under such intense pressure from the Moscow police and the tax authorities that he feared he would be arrested every time he set foot outside his home.

A few months later he went into exile after Russian prosecutors accused him of a multimillion-dollar fraud involving loans worth $436 million to a property firm belonging to Luzhkov's wife Elena Baturina, Russia's richest woman who is now in hiding in London.

The bank was taken over by VTB, a state-controlled bank whose supervisory board includes leading figures in the administration.

Borodin refuted the charges against him, and claimed he was the victim of a politicallymotivated campaign by the Kremlin to seize control of Moscow's main institutions ahead of next year's election.

He said the president sent a special envoy to inform him of the takeover, and that he would have no problem with the police and tax authorities if he agreed to sell his stake in the bank for $790 million - about half its actual value.

Even though Borodin accepted the deal, he soon found himself accused of fraud, and had to flee.

© Copyright (c) The Windsor Star

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Read more: http://www.windsorstar.com/news/Russian+businessmen+evacuate+country/5717006/story.html#ixzz1drGjnpyx

Russia: FC Anzhi Makhachkala and the Yeltsin Era Money

http://globalvoicesonline.org/2011/11/16/russia-fc-anzhi-makhachkala-and-the-yeltsin-era-money/print/

Posted By Donna Welles On 16 November 2011 @ 0:17 am In Citizen Media,Eastern & Central Europe,Economics & Business,English,History,Politics,RuNet Echo,Russia,Sport,Weblog | No Comments

Ever since the fall of the Soviet Union 20 years ago, the world has watched Russia's transition into capitalism with great interest. The Yeltsin era [1] of the 1990's was characterized by a struggle over who would emerge from the transition with holdings of Russia's major sources of wealth, such as its natural resources. The victors in that struggle are known as the Oligarchs because they possess a degree of wealth that surpasses most people's ability to conceptualize.

The January 2011 acquisition of a Russian Premier League soccer team FC Anzhi Makhachkala [2], in the most volatile region of Russia - Dagestan [3] - by Suleyman Kerimov [4], a billionaire politician native to the region, is the most recent display of how that wealth is being used.

Vladimir Putin [5]'s rise has had unexpected effects on the power of the Oligarchs in that he has been able to enforce limitations on them and to direct their activities. In August 2011, Jonathan Wilson wrote in a sports blog [6] associated with The Guardian about Putin's influence:

[…] It's a fairly open secret that oligarchs are encouraged by Vladimir Putin to invest in sporting ventures. Kerimov may be a diehard Anzhi fan, but it seems just as likely that he was advised to invest. After all, if Anzhi do well, it ‘normalises' the situation in Dagestan, just as Terek Grozny's ongoing presence in the top flight supposedly makes Chechnya a more palatable place. Decentralisation, reaching out to the regions, has been a cornerstone of Putin's policy in all spheres (its success in football is seen in the fact that none of the last four champions have been from Moscow).

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The issue of funding is a tricky one. Moscow pumps millions of pounds each year into developing the Caucasian region. If some of that money ends up being used to fund football clubs, it's little wonder that fans from Moscow feel aggrieved: why should their taxes indirectly subsidise Eto'o's wages? Kerimov, after all, didn't buy Anzhi; rather he was given it by the president of Dagestan, Magomedsalam Magomedov, in exchange for a promise of £120m of investment in infrastructure, including a new 40,000-capacity stadium. […]

This is not the first time, however, the oligarchs have delved into the sports world. Mr. Wilson reminded readers that in 1999 Mr. Kerimov entered into a business arrangement with fellow oligarchs Roman Abramovich and Oleg Deripaska:

[…] The three became notorious for their aggressive takeovers. Abramovich, of course, as well as buying Chelsea, funds the Russian state youth academy at Togliatti, as well as contributing to funds to pay for the 2014 Winter Olympics and the 2018 World Cup. Deripaska, who has been linked with takeovers of Arsenal and West Bromwich although his representatives have always denied any links with any UK football clubs, was a part-owner of Kuban Krasnodar until 2008. […]

The FC Anzhi venture is unique, however, in that the region is simply so volatile. Writing for a blog associated with Time Magazine in September 2011, Ishaan Tharoor quoted a Washington Post article [7] to describe this volatility:

[…] Police have killed 100 people they identified as rebels since the beginning of the year, Interior Ministry officials said in June, and human rights activists accuse police of killing first and then finding a crime to assign to the body.

Local journalists estimate that 1,000 to 1,500 armed men are in the forest at any one time, with perhaps 5,000 others prepared to join them. The forest shelters organized terrorism as well — the U.S. government has offered a $5 million reward for information leading to Doku Umarov, a Chechen terrorist with al-Qaeda connections suspected of hiding in Dagestan who has been accused of terrorist attacks on Moscow. […]

It has not yet been two decades since the brutal Chechen Wars of the 1990's. Mr. Tharoor later described an incident where a Russian FC Anzhi player was heckled when he stepped out to play for the Russian national team due to his affiliation with FC Anzhi:

[…] Nor is the rest of Russia all that pleased with Anzhi's emergence. When recent Anzhi arrival Yuri Zhirkov, formerly of London's Chelsea, turned out for the Russian national team, he was booed savagely by his own country's fans [8]. They were angry about the perceived political leg-up afforded to a number of North Caucasus sides — a sentiment likely tinged with longstanding prejudices against those from the Caucasus. […]

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Tatyana Bokova-Foley wrote on Russia! blog [9] about the Suleiman Kerimov Foundation, which was established in 2010 and has since donated about $60 million to charitable causes. She explained that the Foundation does a variety of good works in Dagestan, many of which are not intended to earn a profit:

[…] The Kerimov Foundation continues to work in the [Dagestan] region. At a meeting about Dagestan, Medvedev praised the installation of computers in all the region’s general education schools. At some schools this was financed by the foundation, which spent around $1 million on modern computers and the total reconstruction of three general education schools in Derbent. […]

Kerimov is directly involved in the foundation’s operations, and uses his business skills to ensure it meets its goals, even if those goals are not to make money but to help people. Experts say that it is a model for the most effective nonprofits in Russia and the world.

In February 2011, FC Anzhi acquired the Brazilian World Cup champion Roberto Carlos [10] as well as Jucilei da Silva [11]. Moroccan Mbark Boussoufa [12] was then signed in March. This summer, however, marked a truly defining moment for FC Anzhi when it signed Cameroonian phenomenon, Samuel Eto'o [13], who is considered to be one of the very best strikers in the world - as well as the highest paid.

Soccer Village Blog described Mr. Kerimov's commitment [15] to recruit world class talent in an October 2011 post:

[…] Roberto Carlos himself was in fact the club's first high profile signing when he joined back in February as a player.  Following the sacking of their coach, Gadzhi Gadzhiyev, in September Carlos was installed as joint caretaker manager.  The 2002 World Cup winner spoke further about Kerimov and stated quite matter of factly that the billionaire owner will continue to aggressively pursue more top international players.  He said: If Real, Barcelona or Manchester United cannot pay the transfer fee, we will pay it. Suleyman Kerimov can offer what he wants.’ […]

The post also mentioned that none of the FC Anzhi players live in the region. Instead they live over 1,000 miles away near Moscow and must commute at least 15 times per year in order to play their “home games.”

The official FC Anzhi Facebook page [16], which now has over 10,000 followers, posted a link [17] to a Russian language article [18], which described the plane they use to travel. The article mentioned that former Moscow Mayor Yuri Luzhkov was once a patron of that same plane. Two comments just below this article express contrasting views of Mr. Eto'o's decision to move to Russia:

Ewodo Dominic:

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samuel eto'o always makes the difference everywhere he goes. He is the best footballer the world!

Ian Mellor:

what an idiot to go to Russia to waste his talent

National Economic Trends

Russian stocks, ruble continue slide on lingering Italy concernshttp://en.ria.ru/business/20111116/168742729.html

11:56 16/11/2011

MOSCOW, November 16 (RIA Novosti)

Russian stocks continued their slide and the ruble fell against the dollar in early trading on Wednesday as rising yields on Italy's sovereign bonds reflected investors' concerns over the ability of the Italian government to solve its debt problems.

As of 11:34 a.m. Moscow time [07:34 GMT], the ruble fell by 15 kopecks against the dollar to 30.84 but grew by 16 kopecks against the euro to 41.47. The value of the bi-currency basket, comprising $0.55 and 0.45 euros, rose by 10 kopecks to 35.63 rubles on Tuesday's close.

The euro fell to $1.3454 from $1.3543 over Italy's rising borrowing costs.

On Tuesday, the yields on Italy's benchmark 10-year sovereign bonds surged past the critical 7 percent mark again, causing a new wave of uncertainty on the market and increasing investors' fears about the ability of the eurozone's third largest economy to refinance its debt, which currently stands at 1.9 trillion euros ($2.6 trillion)..

Russia's dollar-denominated RTS stock index went down 1.37 percent to 1,506.00, while the ruble-denominated MICEX edged down 0.98 percent to 1,473.28.

Global prices for Brent crude decreased by 0.48 percent to $111.64 per barrel on Wednesday after the American Petroleum Institute (API) released a statement that U.S. crude inventories had grown by 1.3 million barrels.

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Ruble Weakens Third Day Against Dollar as Crude Drops on Europehttp://www.bloomberg.com/news/2011-11-16/ruble-weakens-third-day-against-dollar-as-crude-drops-on-europe.html

QBy Jack Jordan - Nov 16, 2011 8:10 AM GMT+0100

The ruble dropped for a third day against the dollar as oil, Russia’s main export earner, declined in New York.

The Russian currency lost 0.8 percent to 30.8675 per dollar as of 10:19 a.m. in Moscow, heading for the weakest closing level since Oct. 21. The ruble was little changed at 41.50 per euro, leaving it down 0.4 percent at 35.6507 against the central bank’s target dollar-euro basket.

Crude futures dropped 0.9 percent to $98.52 a barrel in New York after Italy’s 10-year bond yield closed yesterday for the second time in a week above the 7-percent threshhold that prompted Greece, Ireland and Portugal to seek European-Union bailouts. The EU is Russia’s largest trading partner.

The Italian notes yielded 7.068 at yesterday’s close, according to data compiled by Bloomberg, compared with an 8.46 percent yield on similar maturity Russian debt. Russia’s finance ministry plans to sell 10-year ruble bonds today at a yield of 8.35 percent to 8.45 percent, according to a statement on its website yesterday, the highest it has paid for any goverment notes since October 2009.

Russia’s $3.5 billion of Eurobonds due 2020 dropped for a second day, pushing the yield up five basis points, or 0.05 percentage point, to 4.539 percent. Investors increased bets the ruble would weaken further, with non-deliverable forwards showing it at 31.3215 per dollar in three months, compared with 31.1228 per dollar yesterday.

To contact the reporter on this story: Jack Jordan in Moscow at [email protected]

To contact the editor responsible for this story: Gavin Serkin at [email protected]

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Russian Industry Probably Expanded at Slowest Pace in Two Yearshttp://www.bloomberg.com/news/2011-11-15/russian-industry-probably-expanded-at-slowest-pace-in-two-years.html

QBy Alena Chechel - Nov 15, 2011 9:00 PM GMT+0100

Russian industrial-production growth probably decelerated last month to the slowest pace since it began expanding in October 2009, a sign the broader economy may be at risk of stalling.

Factories, mines and utilities increased output 3.5 percent from a year earlier in October after a 3.9 percent gain in September, according to the median estimate of 18 economists in a Bloomberg survey. The Federal Statistics Service in Moscow is due to publish the data today or tomorrow.

Sales are shrinking at companies including Evraz Plc, the steelmaker part owned by billionaire Roman Abramovich, as global demand falters and Europe’s debt turmoil shackles credit flows. Moderating growth in Russia may prod the central bank to ease borrowing costs after gross domestic product missed economist forecasts with a 4.8 percent increase in the third quarter, according to Renaissance Capital and VTB Capital.

“Companies will be reducing stockpiles in the fourth quarter, adapting to a weaker demand outlook and unfavorable conditions abroad,” Natalia Orlova, chief economist at Moscow- based Alfa Bank, said by phone yesterday. “That means an industry slowdown will continue, dragging economic growth in the last three months of the year to 3 percent.”

The benchmark Micex Index (INDEXCF) has lost 12 percent this year, led by OAO Raspadskaya (RASP), a coal producer, OAO Magnitogorsk Iron & Steel Works (MAGN) and OAO Mechel (MTLR), the country’s largest coal miner, all three of which plunged 57 percent.

Muted and Lackluster

Industrial output may slow this quarter after uncertainty on global markets hurt exporters in the previous three months, Deputy Economy Minister Andrei Klepach, who reiterated this week that gross domestic product will expand 4.1 percent in 2011, said on Oct. 26.

Russian manufacturing expanded in October for the first time since June even as the increase in new business was “muted” because of slow growth on export markets and “lackluster” domestic demand, HSBC Holding Plc said Nov. 1, citing data compiled by London-based Markit Economics.

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Evraz yesterday reported $722 million in earnings before interest, tax, depreciation and amortization in the third quarter, compared with $889 million in the previous three months, as sales fell.

The central bank left borrowing costs unchanged last month after two increases this year, saying money-market interest rates are at an “adequate” level to balance risks from inflation and an economic slowdown. Policy makers may adjust that stance to spur growth, Renaissance Capital said yesterday in a report prepared with Moscow’s New Economic School.

“The bias with which the Russian central bank operates over the next couple of months will be an easing one,” the economists wrote. “We expect to see increasing signs of this more moderate pace of economic activity on the back of weaker external demand and the completion of the inventory restocking cycle.”

To contact the reporter on this story: Alena Chechel in Moscow at [email protected]

To contact the editor responsible for this story: Balazs Penz at [email protected]

Swapping rubles for the yuanhttp://rt.com/politics/press/rossijskaya-gazeta/yuan-ruble-swap-russia/en/

Published: 16 November, 2011, 03:14Edited: 16 November, 2011, 03:17

Elena Kukol

Russians gravitate toward “exotic” currencies

While the dollar and the euro are trying to determine which is more important on the global financial arena, Russian citizens have begun saving money in exotic currencies. Deposits in yuan, Swiss francs, and pounds sterling are rising. Russians are opening accounts in Canadian dollars and the Japanese yen.   According to Rossiyakaya Gazeta’s (RG) experts, in one major bank alone, the volume of deposits made in the currency of the Celestial Empire has already

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reached dozens of millions of dollars. Meanwhile, deposits made in Swiss francs and British pounds sterling amount to about 2-3% of the total volume of deposits. At a first glance, that’s not particularly much, but if we consider that, previously, the volume of such deposits was close to zero, the trend becomes obvious.  However, RG’s experts have different opinions on whether people should save their hard-earned money in non-traditional currencies. These types of deposits are necessary in order to protect the accumulated funds from financial and economic shocks, argues director of the BDO Group’s Center for Macroeconomic Research, Elena Matrosova. “In today’s times, every person must think about their personal ‘stabilization fund’,” she says, “in order to make sure to have liquid funds no matter what happens”. In reality, today, no one is able to provide any solid guarantees regarding the fate of the euro or the dollar – the future of these economies is also raising concerns. And if the so-called classical currencies end up under pressure, there is a possibility that the people will be saved by deposits in the Chinese, Japanese, or Swiss currencies.    The rise of most of these currencies against the dollar could serve as an argument in favor of such deposits. The Swiss franc, for example, has risen against the USD by 6.8% over the recent year, and the yuan – by 6%.    Meanwhile, over the last five years, the Celestial Empire’s currency has added 20% against the dollar. Apparently, it will continue to appreciate. In any event, US authorities have long been pointing out Beijing’s currency undervaluation, while the Chinese leaders, albeit with some reservations, have been promising to gradually shift their currency exchange rate upward. Now, do the math: how much will you gain if the yuan indeed rises against the dollar by 30-40%, as insisted by the US.     That is not the case, argues president of the Moscow International Currency Association, Aleksey Mamontov. In reality, while trying to protect yourself, you are getting into much riskier assets, he says: “Despite all of China’s economic achievements, the Celestial Empire has not yet been excluded from the category of countries with emerging markets. And they are considered to be more unpredictable”. Moreover, the yuan is not one of the freely convertible currencies. The Swiss franc is a reserve currency, but its share in the central banks’ reserves is negligible, and there are problems with liquidity, continues RG’s interlocutor. As for the expectation for certain currencies to rise against the dollar, that is usually a local trend, he says. And the fact that the Swiss franc is rising today does not necessarily mean that the trend will continue in the future. “An ordinary person most often bases his decisions on the information he finds on the Internet and analysts’ opinions, but does not have the desire, the experience or the knowledge to analyze the situation and especially make predictions. And when this person tries to engage in currency speculation, he loses,” says Mamontov.     In his opinion, the best thing is to follow the old-fashioned way of saving money in the currency in which it is received and in which you plan to spend it. And if you have a strong desire and the opportunity to put savings in separate baskets, look closer at the structure of the Central Bank’s gold reserves – and copy it.  Matrosova, however, also advises against urgently exchanging currency into the

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yuan or the Swiss franc. The main objective is to protect the portfolio, she says. Each person must decide how much to invest and in what currency depending on the amount of the surplus funds and future plans. At the same time, one must evaluate the currency’s potential and its dependence on the state of the global economy. For example, the British pound has the advantage of not being dependent on the fiscal policy, conducted by the country’s authorities. The disadvantage is the banking sector and the tourism industry’s great amount of influence on the British economy. And the situation in China is, in spite of everything, pressured by the situation in Europe and the US. A more favorable option is to invest in some self-sustaining foreign currency, of a country that is able to survive a global financial depression, says Matrosova. The problem is that finding this “island of stability” in a globalized world is difficult.           Obviously, these should be long-term deposits, preferably held for the next five years, or at the very least – a year, advises Matrosova. This is especially true considering that the foreign currency account rates will not change frequently. The expert acknowledged that banks are keeping them at a low level. In one of the banks, offering accounts in non-traditional currencies, the yield on Swiss franc deposits is 2.25%. Minimum required deposit is 150 Swiss francs. In these conditions, it is possible to earn 3.38 SFr a year. Yuan deposits also yield 2.25%; with the minimum deposit of 1,500 yuan, your profits will be 33.84 yuan. That is approximately 160 rubles at the current exchange rate. And if the same amount is deposited at a 9.7% annual interest rate, then the profit will amount to nearly 700 rubles. The rates for deposits in dollars and euros are significantly higher than those for exotic currencies. The annual rate for US dollar deposits is 5.8%, and euro – 3.85%.       Banks are indeed offering disadvantageous conditions for deposits in non-traditional currencies, says Matrosova. Incidentally, majority of large credit organizations offer the opportunity to open accounts in the yuan, Swiss francs, or British pounds only to their VIP-clients, and the minimum deposit requirement is rather high. “At this time, banks are not particularly interested in these types of deposits, because they do not hold many assets in the non-traditional currencies,” explains Matrosova. And if a bank monitors risk, then it must maintain a balance between liabilities, or obligations, and assets. However, there is hope that with the development of international relations, the situation will gradually begin to change. And as for how one should react to more attractive offers – if they are presented in the future – that is up to the individual to decide.    Rossiyskaya Gazeta background information The share of US dollars in the Central Bank reserve structure amounts to 47%, euro – 41%, the British pound – 9%, the Japanese yen – 2%, and the Canadian dollar – 1%. The share of the Swiss franc and the Australian dollar, as was earlier stated by Central Bank representatives, is “practically zero”.

PPI grows 17.5% YoY in Octoberhttp://www.bne.eu/dispatch_text17807

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UralSibNovember 16, 2011

Producer price inflation exceeds expectations Ð up 1.7% MoM.

Producer prices grew 1.7% MoM in October, Rosstat reported yes- terday. Thus, PPI reached 17.5% YoY growth versus 18% YoY in September, decelerating for the second month in a row. The figure came out above expectations, as the market consensus was for 1.2% MoM growth, while we expected 1% MoM growth.

Commodities sector was the primary driver. The main reason for?the growth in PPI was commodities prices, which grew 4.2% MoM and thus accelerated to 39.8% YoY growth versus 37% YoY in September. The key drivers were prices for LNG (up 9.1% MoM) and crude oil (up 5.5% MoM), which is no surprise for the latter, as Urals prices increased 1.7% MoM in September. Prices in the manufacturing sector added 0.8% MoM and decelerated to 13.3% YoY growth, versus 14.6% YoY growth in September. The main driver was higher prices for petrochemicals and chemicals. In chemicals production, fertilizer prices went up almost 4.5% MoM, which we attribute to seasonal factors and higher demand. Utilities prices added 1.5% MoM with the start of the heating season, but the 12-month rolling figure again de- celerated significantly for a second month in a row to 2.1% YoY growth, down from 4.2% YoY growth in September.

PPI to further decelerate YoY. Producer prices may fall MoM in November, as the average price of Urals crude fell almost 3% MoM in October (producer prices are highly correlated with Urals with a one month lag). Thus, we forecast YoY PPI growth to further decelerate towards year-end. We would like to emphasize that PPI dynamics have become very volatile, which reflects the prolonged volatility on financial markets. Because global volatility will persist for a while, PPI will also remain volatile in the near future. We also note that inflationary pressure on PPI may increase in November-December, due to extremely large budget ex- penditures. According to the updated budget plan, around RUB3.3 tln will be spent in November and December, which will be an all-time record for the period.

Producer Prices Top Estimate 16 November 2011

Producer prices, an early indicator of inflation, rose more than economists estimated in October, led by the mining and manufacturing industries.

Prices of goods leaving factories and mines grew 17.5 percent from a year earlier after an 18 percent advance in September, the State Statistics Service in Moscow

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said in an e-mailed statement Tuesday. The median forecast of nine economists surveyed by Bloomberg was 17.1 percent.

Factory-gate prices rose 1.7 percent in October from the previous month after a 0.7 percent decline in September, the service said. Economists predicted an increase of 0.5 percent, according to the median of nine estimates in a separate Bloomberg survey.

(Bloomberg)

Read more: http://www.themoscowtimes.com/business/article/producer-prices-top-estimate/447921.html#ixzz1dr9qAcMq The Moscow Times

Gov't may enact property tax in 2014

http://www.rbcnews.com/free/20111116132812.shtml

      RBC, 16.11.2011, Moscow 13:28:12.A property tax is likely to be levied starting 2014, Sergey Razgulin, deputy director of Finance Ministry's tax and customs tariff policy department, told reporters.

      Amendments clearing the way for this tax, being drafted by the ministry, will be discussed in March-May 2012. The amendments could be passed at the federal level in 2012, but time is needed for municipal authorities to adopt the relevant regulatory acts. In some regions, the tax could be levied from 2013, he added.

      At present, the cadastral appraisal of property has been completed in 12 of Russia's 83 regions.

Business, Energy or Environmental regulations or discussions

Russia Equity Movers: Raspadskaya, MRSK, Rosneft Are Activehttp://www.bloomberg.com/news/2011-11-16/russia-equity-movers-raspadskaya-mrsk-rosneft-are-active.html

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QBy Alex Nicholson - Nov 16, 2011 8:42 AM GMT+0100

The 30-stock Micex Index (INDEXCF) dropped 1.1 percent to 1,471.92 by 10:41 a.m. in Moscow, heading for its lowest close in a week. The dollar-denominated RTS Index dropped 1.6 percent to 1,502.76.

The following are among the most active stocks in the Russian market today. Stock symbols are in parentheses:

OAO MRSK Holding (MRKH RX) increased as much as 3.9 percent to 3.174 rubles before paring gains to 0.9 percent at 3.081 rubles. MSCI Inc. said it will add the power distributor to its Russia Index.

OAO Raspadskaya (RASP RX) jumped the most in a year, adding 20 percent to 109.50 rubles. The Russian coal producer said it plans to buy back as much as 78.1 million shares, equal to 10 percent of the company. Raspadskaya (RASP) is offering to buy stock from Dec. 19 at 150 rubles ($4.86) apiece, or a total of $380 million, until Jan. 31, the company said in a statement today.

OAO Rosneft (ROSN RX) fell 1.1 percent to 218.03 rubles, snapping two days of gains. Crude oil slid 0.8 percent to $98.57 a barrel in New York trading.

To contact the reporter on this story: Alex Nicholson in Moscow at [email protected]

To contact the editor responsible for this story: Gavin Serkin at [email protected]

MICEX to facilitate IPO involvement for private pension funds

http://www.rbcnews.com/free/20111116112847.shtml

      RBC, 16.11.2011, Moscow 11:28:47.The MICEX Stock Exchange intends to propose legal amendments permitting private pension funds and management companies to get involved in IPOs, RBC Daily reported today.

      Private pension funds, management and insurance companies are currently restricted from acquiring shares offered to the public. "We are planning to expand the list of investors so that private pension funds will be able to purchase publicly offered shares outside of the stock exchange," RBC's source said.

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      The amendments would lift restrictions currently binding insurance companies as well.

Russia's Raspadskaya shares soar on buybackhttp://in.reuters.com/article/2011/11/16/raspadskaya-idINR4E7LH01F20111116

11:51am IST

MOSCOW Nov 16 (Reuters) - Shares in Russian coking coal producer Raspadskaya soared more than 17 percent in on Wednesday after the company announced it would buy back up to 10 percent of its shares at 150 roubles ($4.89) per share.

"The board of directors believes the current low share price does not reflect the fundamental value of the share capital," said the company, part-owned by Roman Abramovich's steelmaker Evraz.

At 0620 GMT the shares were up 17.3 percent at 107.35 roubles per share. ($1 = 30.671 Russian Roubles) (Reporting By Alfred Kueppers; Editing by John Bowker)

Raspadskaya to buy back 10% of stock

http://www.rbcnews.com/free/20111116115202.shtml

      RBC, 16.11.2011, Moscow 11:52:02.Raspadskaya intends to repurchase up to 10% of its shares, Russia's second largest coking coal producer announced.

      The company's board of directors has given the go-ahead to repurchase up to 78.08m shares at RUB 150 (approx. USD 5) per share. Bids from shareholders that would like to sell their holdings will be accepted from December 19, 2011 through January 31, 2012.

      The current low price of stock does not represent the fundamental value of the company's equity and creates an excellent buyback opportunity, Raspadskaya said.

Norilsk Nickel to tap $2.2bn loans from Sberbank

http://www.rbcnews.com/free/20111116105125.shtml

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      RBC, 16.11.2011, Moscow 10:51:25.The board of directors of Norilsk Nickel, a leading global non-ferrous metal producer, has approved contracting loans totaling RUB 70bn (approx. USD 2.3bn) from Sberbank, the company said in a statement.

      Specifically, Norilsk Nickel plans to take out a five-year RUB 9bn (approx. USD 294m) credit line at a fixed rate of 9.5%. Its subsidiary Kola MMC intends to contract a five-year RUB 61bn (approx. USD 1.99bn) credit line at 9.5%.

INTERVIEW: GeoProMining brings hi-tech to Soviet-era assetshttp://www.bne.eu/storyf3008/INTERVIEW_GeoProMining_brings_hitech_to_Sovietera_assets

Ben Aris in Moscow November 16, 2011

The Russian government talks a lot about modernisation, but the privately owned diversified mining company GeoProMining (GPM) is actually doing it – simply because it makes them more money.

Siman Povarenkin spent five years as chairman of the hugely successful Vladivostok-based Fesco shipping company, arguably the best run company in Russia's wild Far East. In 2001, he set up GPM with his partner Sergei Generalov, Fesco's president, to invest in gold and copper mining in the Commonwealth of Independent States (CIS). "GPM started more as a hedge fund than anything else, but in 2005 we bought some gold and copper mining assets in Georgia and have successfully developed the company from there," says Povarenkin, seated in his designer office in the heart of Moscow.

In the corner of the room is a giant meat cleaver standing in a Zen sand garden – an artwork by one of Indonesia's leading contemporary artists. Povarenkin explains that ingraining the company with an international culture is a key part of the company's philosophy, which is why he recently stepped aside as chairman and promoted Australian-born Russell King from independent director to chairman to inject a little more of the Anglo-Saxon business culture into management.

GPM has built up its business over the last six years largely through acquisitions and today the company has six main assets. The company's first two purchases took place in 2005 when GPM successfully competed in one of the first public

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privatisations of mining assets in the tiny Caucasus republic of Georgia, shortly after President Mikheil Saakashvili came to power. It bought Madneuli in a hotly contested open auction, one of the largest mining companies in Georgia, which develops the Madneuli gold-copper deposit. GPM followed this up with the acquisition of Quartzite, a producer of gold and silver the same year. Then in 2007, GPM bought several assets in Armenia: the Agarak Copper-Molybdenum Mine and GPM Gold, which develops the Sotk gold deposit and manages the Ararat Gold Extraction Plant. Finally, at the end of 2008, GPM acquired the Russian antimony and gold mining assets and processing plant Sarylakh-Surma and Zvezda, which exploits the Sentachan antimony gold deposit in the snow-bitten autonomous republic of Yakutia – the coldest place on Earth.

Tech in the tundra

The company's strategy is simple. It has taken rundown Soviet-era assets and invested heavily in them to create world-class mining facilities using the best technology on offer. "When we took over the assets in Yakutia they were basically stationary. It took two years of investment and extreme efforts of the management team to get the plants back on their feet," says Povarenkin.

And with dramatic results: for its gold plant in Armenia, GPM bought technology from the Austrian specialist company Exstrata and combined it with Russian technology from the well-known (in Russia) St Petersburg-based firm Mekhanobr Engineering and production soared. The plant is expected to produce 150,000 ounces (oz) of gold annually starting from 2014 compared with the 24,000 oz it produced in 2010.

Russian technology is typically portrayed as an almost medieval, clunky affair, but GPM didn't have as much work to do as you'd expect: the gap with the best from the West is surprisingly small, claims Povarenkin. "Some of the Soviet-era infrastructure was obsolete or of poor quality, but in mining the Soviets were pretty efficient," says Povarenkin. "The bigger problem is the lack of infrastructure, but the government is paying a lot of attention to Eastern Siberia and the Far East, and infrastructure has visibly improved in the last few years."

The use of the new technology has changed the mining game in Russia. In Soviet days, the cut-off for developing a gold mine was a gold density of 5g/tonne of ore, but today – especially after gold price soared to just under $2000/oz this summer – concentrations as low as 0.6/tonne of ore have become attractive. This means simply working the tailings of rich mines abandoned by the Soviets can be used as the basis of profitable gold production in some cases. "Gold has become a financial asset for investors fleeing things like the US T-bills, but even so sales of physical gold have risen 10% faster than the volume sold on the London Metals Exchange in the last year," says Povarenkin.

GPM keeps applying the same model to all the plants and mines it takes over.

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Today, the company is the third largest Russian investor in Armenia. When it bought GPM Gold from the Indian company Vedanta Resources in 2007, the plant was at a standstill. GPM started investing heavily in the midst of the financial crisis and breathed new life into the plant. The Agarak mine was in a similar state, but this year both mines are producing again and in profit. The Armenian plants are also the "greenest and most efficient in the world," boasts Povarenkin.

Gold and copper account for most of the production, but GPM is also a world player in antimony production, which is used in tyre production and increasingly in touch screens for products like Apple's iPod. "We have the richest antimony resource in the world and we are the biggest player on the market outside of China with around 5% of the world's proven antimony reserves," says Povarenkin.

Gold remains the company's most important product, which accounted for over 50% of its revenue, while antimony contributed just over 10% in 2010. Last year, the company produced 290,000 oz of gold equivalent, but estimates that it has over 9m oz of reserves and 24m oz of resources still to work.

Activity in the Oil and Gas sector (including regulatory)

Qatar eyes stake in Russia's largest private gas producer Novatek http://en.rian.ru/world/20111116/168744953.html

12:52 16/11/2011

MOSCOW, November 16 (RIA Novosti) - Qatar, one of Russia's key rivals on global gas markets, may buy a stake in Russia's largest independent gas producer Novatek and join its project for liquefied natural gas production on the Yamal Peninsula in the Arctic, Kommersant business daily reported on Wednesday.

"We are interested in purchasing a stake in Novatek and are simultaneously holding negotiations on the Yamal LNG project," Qatari Energy Minister Mohammed Saleh al-Sada said on the sidelines of a gas exporters' summit which concluded its work in the Qatari capital on Tuesday.

The minister also said that Qatar, the world's largest LNG producer and exporter, had established Qatar Petroleum International for these purposes.

Russian Energy Minister Sergei Shmatko said that Russia could cooperate with Qatari companies at all the stages of the Yamal-LNG project, including its financing.

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Qatar may be engaged in the project's financial and technical aspects and help in LNG marketing, Shmatko said.

Russia can also capitalize on the experience of Qatari companies in LNG logistics, including the use of Qatar's LNG shipping fleet, Shmatko said, adding that the negotiations had already moved to the corporate level and the state would take efforts to expedite them.

Novatek confirmed to Kommersant that it was holding talks with Qatari firms on their possible participation in the Yamal LNG project. At the same time, the gas producer said no talks had been held on selling a stake in Novatek's capital to Qatari companies.

The Yamal-LNG project, implemented by Novatek and France's Total, to produce LNG on the Yamal Peninsula in the Russian Arctic is estimated at $15-20 billion and envisages the development of the giant Yuzhno-Tambeiskoye gas condensate field and the construction of an LNG plant. Novatek also plans to build a sea port in the Sabetta village in Yamal and an ice-class tanker fleet.

The Yuzhno-Tambeiskoye field has estimated reserves of 1.3 trillion meters of gas under the 1+2 categories. Under the international classification, the field's reserves amount to 418 billion cubic meters of gas and 15 million tons of gas condensate.

November 16, 2011 13:25

NOVATEK again ups 2011 gas production forecasthttp://www.interfax.com/newsinf.asp?id=287701

MOSCOW. Nov 16 (Interfax) - Independent gas producer NOVATEK (RTS: NVTK) has again boosted its gas production forecast for this year, this time to 51-52 billion cubic meters (bcm).

Company CFO Mark Gyetvay said during a conference call with investors that the initial production forecast for 2011 was 48.9 bcm, but was later increased to 50.51 bcm. This second increase, he said, reflects stronger Q3 demand and the company's ability to pump around 1 bcm into underground storage.

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NOVATEK produced 38.6 bcm of gas in January-September (including 4 bcm by Sibneftegas, which it acquired in late-2010), and around 4.9 bcm in October, Gyetvay said.

NOVATEK produced 37.78 bcm of gas in 2010. Sibneftegas produces about 11-12 bcm of gas annually.

Cf

(Our editorial staff can be reached at [email protected])

11/15/2011 @ 4:53PM |1,183 views

BP Gets Busy In Russia After Court Victory, Stock Going To $55http://www.forbes.com/sites/greatspeculations/2011/11/15/bp-gets-busy-in-russia-after-court-victory-stock-going-to-55/

Oil major BP scored a significant victory over its minority partners in the TNK BP joint venture last week as a Siberian court dismissed the case by minority stakeholders who were claiming billions of dollars of damages over the failure of TNK-BP to close a deal with Rosneft related to exploration in the Arctic circle. [1]

BP’s relationship with other stakeholders in the Russian venture has been enshrouded with trouble but analysts say that the problems are worth it as TNK-BP now accounts for a substantial part of BP’s oil production, which has been hit by the Gulf of Mexico moratorium.

Slowed production in the Gulf of Mexico has also impacted the production of competitors such as Chevron and Anadarko.

Bashneft to receive RUB10bn in 60-66 reform compensation, Tatneft compensation not approvedhttp://www.bne.eu/dispatch_text17807

AlfaNovember 16, 2011

The Russian government has approved compensation for Bashneft for losses incurred in light of the introduction of the 60-66 reform, with Bashneft to receive

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a total of RUB10bn over the next five years, Deputy Finance Minister Sergey Shatalov announced yesterday. The government has not approved compensation for Tatneft, Shatalov said.

Shatalov initially said that compensation for Bashneft would be in the form of MET exemptions amounting to RUB3-4bn pa until 2015E. As a result, the announcement of the actual compensation was slightly disappointing in light of the marketÕs expectations. At the same time, we believe the MET exemptions will have a positive effect on the companyÕs 2012E EBITDA of around 2% and potentially add around 0.6% to our TP, and therefore it is still a POSITIVE for the company.

The government originally announced that compensation for Tatneft would amount to a generous RUB38-56bn, which initially sounded too good to be true. As a result, it has been our view that although this outcome was a possibility (as the subject was discussed frequently in the press with concrete numbers), the justification to grant the compensation to Tatneft was indeed quite weak. It is important to remember that according to our estimates, the company is a net beneficiary from the introduction of the reform, with a positive effect of more than 5% on 2012E EBITDA.

However, some form of compensation was still expected by the market after a series of announcements by Shatalov. The government did not approve compensation because, as we stated earlier, it is not Tatneft that will incur losses due to the reform, but rather the TAIF refinery, which is also located in Tatarstan and refines a significant volume of oil from Tatneft. Shatalov has stated that the compensation was originally meant for TAIF, although plans were to enact it through a tax break for Tatneft, which would eventually be passed on to TAIF, potentially in the form of lower purchase prices. The complexity of the plan was one of the reasons for its rejection. Shatalov also clarified that the compensation plan that had been discussed included a total of RUB38bn for the next six years.

We view this news as slightly NEGATIVE for Tatneft, since the tax break was a potential although slightly illogical catalyst for the stock from the start. We believe that the market has not fully priced in the positive compensation scenario for Tatneft since it was first announced due to the difficulties with justifying the move. However, consistent statements from the government about the likelihood of tax breaks for Tatneft (without a mention of TAIF) did, in our view, have some positive effect on the recent movement of TatneftÕs stock price, although downside is still limited in our view. The government said that it will potentially reconsider the issue in the spring. However, as it appears now, this is unlikely to affect Tatneft's financials.

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Gazprom

Gazprom and Naftogaz rumored to have finalized gas agreementshttp://www.bne.eu/dispatch_text17807

AlfaNovember 16, 2011

Gazprom and Naftogaz are rumored to have finalized agreements on gas, including a natural gas price for Ukraine at $220-$230 per mcm, with the latter expected to provide preferential access to Ukraine’s gas transit system for Russian investors, according to a RBC Daily report citing Ukraine’s Economic News. The new gas contract is expected to be signed by Presidents Dmitry Medvedev and Viktor Yanukovych at the end of November or beginning of December. Ukraine paid around $355/mcm on average for Russian natural gas in 3Q11, thus the new export price of $220-230/mcm would imply a discount of up to 40%. Both Gazprom and Naftogaz, however, have refused to comment on the subject.

Overall, we view this news as mildly NEGATIVE for Gazprom, as the company seems to have given a significant price concession to Ukraine, which may create a negative precedent for the company’s price negotiations with other consumers, while it is unclear what Gazprom was offered in return. At the same time, we believe that the negative effect from potential price concessions for Ukraine have been broadly priced in by the market, thus we believe downside on this possible outcome is limited.

Gazprom mulls third Nordstream linehttp://www.bne.eu/dispatch_text17807

bneNovember 16, 2011

Gazprom is mulling developing a third line to Russia-Germany Baltic Sea pipeline Nord Stream, according to newswires.

"Today many, at least tentatively, are thinking about installing a third and subsequent lines," Gazprom's Deputy CEO Alexander Medvedev said on Tuesday, as quoted by Interfax.