Russia

Russia 110511Basic Political Developments

· President leaves for Russia today - President Asif Ali Zardari today embarks on a three-day official visit to Russia at the invitation of Russian President Dmitry Medvedev.

· Russia, Pak to sign several agreements during Zardari's visit - In his interview to local media, Zardari has invited Russia to use Pakistani territory to fulfil the old dream of Russian czars to seek access to "southern seas". According to him, such a move would contribute to economic prosperity of both countries.

· Pakistan’s new friend Russia - While the US media obsesses over Abbottabad, Beijing and Moscow are looking at the strategic impact of the US withdrawal or lack thereof in Afghanistan.. There are several events that have taken place.

· An Indian summer in Moscow for Zardari - Pakistan is central to Russia's plans for a more active role in the region. By Vladimir Radyuhin

· Not to worry, India ties will survive MiG setback - It is no tragedy that Russia lost the biggest aviation tender of recent years. Our military and technical ties with Delhi will survive it. By Victor Litovkin

· Russian military starts strengthening forces in Kurils - Gen. Staff

· Defense Ministry begins strengthening military forces in the Kuriles

· Coalition overstepping in Libya – Churkin: He reiterated that resolution 1973 authorizes the use of force against government troops solely to protect the civilian population.

· Russian Foreign Minister to visit Kazakhstan - The Russian Foreign Affairs Minister Sergei Lavrov is to visit Astana on a business trip. He is scheduled to meet with the Kazakh president and hold negotiations with his Kazakh counterpart Yerzhan Kazykhanov.

· Russian ambassador speaks on SCO - I would like to note the importance of discussing the situation in Afghanistan within the SCO framework in this respect. This neighboring country is of prime importance for us and we are interested in seeing Afghanistan as a peaceful, independent, neutral, and flourishing state. I would also like to note that we highly evaluate the role of Kazakhstan as the SCO chairman as well as its activities which are especially noteworthy as they coincide with the 20th anniversary of Kazakhstan’s independence this year.

· Turkmenistan, Russia to hold joint innovation forum in Ashgabat

· Customs Union's countries to unify railway tariffs

· Russia, Norway to begin naval drills - The six-day exercise in the Barents and Norwegian seas will involve Russian Udaloy class destroyer Vice Admiral Kulakov from the Northern Fleet, Norwegian Fridtjof Nansen class frigate Helge Ingstad, as well as coastal guard vessels and naval aircraft.

· Russian warships complete visit to Vietnam, head to Vladivostok - The Admiral Vinogradov destroyer, accompanied by a salvage tug and the Pechenga tanker, has paid a friendly visit to a Vietnamese port city of Da Nang while returning from an anti-piracy mission in the Gulf of Aden.

· Mi-171s to be delivered to Peru

· Radiation within normal levels in Russia' Far East - emergencies center

· Radiation background below norm on Sakhalin, Kurils-EMERCOM

· Bushehr goes critical - Iran's first nuclear power reactor has achieved a sustained chain reaction, Russian builder AtomStroyExport (ASE) has announced.  

· Submariners need to reconsider the case of the Nerpa submarine - Pacific Fleet sailors and builders of submarines Nerpa stated that the death of 20 people on the submarine during sea trials in the Japan Sea in 2008 was the result of ‘corruption and the collapse of the military-industrial complex" and the defendants in this case the commander of the submarine Dmitry Lavrentiev and bilge engineer Dmitry Coffins appointed "scapegoat. ‘

· Lubna, Tatarstan President discuss cooperation and relations - For his part, the President expressed his keenness on developing the bilateral relations between his country and the UAE, pointing out to the importance of the role played by the UAE in boosting Russian relations with the Islamic world.

· Russian laws to be adopted for functioning of Islamic financing institutes - Russian legislative system will not be an obstacle for Islamic financing institutes of Russia, the head of Tatarstan Rustam Minnikhanov stated in Dubai, RIA Novosti reports.

· MEDVEDEV TO GIVE HIS FIRST PRESS CONFERENCE AS PRESIDENT AT SKOLKOVO ON MAY 18 - KREMLIN PRESS SERVICE

· Big press conference of Medvedev to be held on May 18 at Skolkovo

· Forest fires still burning around Russia’s Far East

· Probe launched into double murder at Moscow gas filling station

· Bank of Moscow seeks probe into Estonian bank stake sale

· Interfax Moscow press review for May 11, 2011

· RIA Russian Press at a Glance, Wednesday, May 11, 2011

· As Police Dismissals Mount, Hope Grows - By Alexandra Odynova

· 1.2 million Russians to become dollar millionaires by 2020, Deloitte says

· Dmitry Medvedev’s three years in office: achievements, results and influence - Three years ago, in early May, Dmitry Medvedev took his oath of office, becoming the third president of the  Russian Federation. The Valdai International Discussion Club asked some of its members to share their impressions and thoughts regarding Dmitry Medvedev’s presidency.

· Bin Laden, Basayev and Terrorism's Scourge - By Dmitry Trenin

· Kadyrov Exploits Ties With Moscow To Build Islamic State – By Igor Rotar

National Economic Trends

· Macroeconomic indicators - Russian Q1 trade surplus shrinks

· March trade surplus flat to February at USD 17.3bn as both exports and imports surge

· Russia to spend additional revenues to support real sector

· Federal budget expenditures rose 26% m/m in April

· State-owned United Grain Company sold 1.54 million tons of feed grain to farms and foodstuff producers in almost 50 regions across the country so far this year, and sales of another 114,000 tons of feed grain are planned in the next few days in five other regions, the company said Tuesday.

· Repeat of 2010 Drought Unlikely for Russia Crops - By CAROLINE HENSHAW

· Russia on Bottom of BRIC for Sales

Business, Energy or Environmental regulations or discussions

· UPDATE 1-Russian Helicopters pulls $500 mln listing

· Russian Helicopters Postpones IPO

· Russian Helicopters suspends $500 mln IPO indefinitely

· Increases in property tax for natural monopolies put off, for now

· New candidates for utilities' Boards of Directors suggested by Igor Sechin

· RPT-Sitronics eyes $25 mln sales after Indian expansion

· Raspadskaya Owners Reject $2 Billion Offer From Mechel, RBC Says

· Raspadskaya's sale in question after failed talks

· Mechel mulling 2010 dividend payout

· Russia Magnit Q1 profit down 5.5 pct, misses fcast

· Baskin Robbins ups turnover 26% in Russia last year

· Renault plans to start exporting Russian-built cars to Ukraine this month

· Russia’s use of poultry imports limited by 2014

· Rosselkhozbank Overdue Loans Rose 17.5% in April, Vedomosti Says

· Aeroflot to Buy Boeing Planes at 47% Discount, Vedomosti Reports

· German business regards visas serious roadblock for relations

· Nizhnekamskneftekhim to supply styrene to Finnish EPS maker StyroChem from

Activity in the Oil and Gas sector (including regulatory)

· Russia To Boost Investments In Iraqi Oil Sector - Russia's largest private oil company LUKOIL is set to begin oil production in Iraq's West Qurna-2 oil field in 2013. Iraq's fourth post-war global bidding to develop 12 untapped large oilfields will be held in November.

· Bulgaria ponders signing short-term gas contracts with Russia - Bulgaria is considering signing short-term gas contracts with Russia if the terms for the long-term agreements to be presented by Moscow in the summer prove unsatisfactory, Deputy Economy Minister Marii Kossev told journalists on May 10 2011.

Gazprom

· World’s Largest Natural Gas Co, Gazprom, Sees Demand Spike

· Bulgaria Might Opt for Short-Term Gas Contracts with Gazprom

· Naftogaz settles April gas payments with Gazprom

· Gazprom Neft still eyeing Libyan oilfield-INTERVIEW-UPDATE 1 - Boris Zilbermints, deputy head of Gazprom Neft, the oil arm of Gazprom, said in an interview the company will return to Libya once the war is over.

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Full Text Articles

Basic Political Developments

Wednesday, May 11, 2011, Jamadi-us-Saani 07, 1432President leaves for Russia today

http://pakobserver.net/detailnews.asp?id=91499

Staff Reporter

Islamabad—President Asif Ali Zardari today embarks on a three-day official visit to Russia at the invitation of Russian President Dmitry Medvedev.

The President will be accompanied by a high-level delegation which will include Senior Minister for Industries and Defence Production Ch. Pervaiz Elahi, Defence Minister Ch. Ahmed Mukhtar , Advisor to Prime Minister on Petroleum and Natural Resources Senator Dr. Asim Hussain , Minister of State for Foreign Affairs Hina Rabbani Khar, Chairman Board of Investment Salim H Mandviwals,Secretary to President Malik Asif Hayat, Secretary Commerce Zarfar Mahmood , Spokesperson to the President Farhat ullah Babar, and Acting Chief Executive Officer, Pakistan Steel Mills Wasif Mehmood.

During the visit, President Zardari will have in depth discussions with the Russian leadership on a range of bilateral issues and review important global issues of mutual interest.

The two sides will also emphasize the importance they attach to cooperating closely on issues of stability, peace and security in the common region and to continue to enhance bilateral contacts, consultations, cooperation and coordination between the two countries in this regard.

President Zardari will address the Russian business community at the Skolkovo Moscow School of Management soon after his arrival today.

The Presidents of Pakistan and Russia will have a one-on one meeting and discuss wide range of issues which would be followed by delegations level talks between the two countries. President Zardari and Russian Prime Minister Vladimir Putin will also hold talks.

President Asif Ali Zardari will also visit Saint Petersberg on May 13, which is not only second largest city of Russia,but also the financial and industrial hub of the country and will address a business forum.

Russia, Pak to sign several agreements during Zardari's visit

http://www.mydigitalfc.com/economy/russia-pak-sign-several-agreements-during-zardaris-visit-216

By PTI May 11 2011 , Moscow

Russia and Pakistan are expected to sign several agreements here to enhance their bilateral trade and energy cooperation during President Asif Ali Zardari's four-day visit beginning today.

According to sources here, the two countries are also expected to sign a memorandum of understanding on civil aviation.

The key international issues like anti-terror combat, regional security and cooperation at the regional and international fora like Shanghai Cooperation Organisation and Islamic Conference are expected to be discussed tomorrow at Zardari's talks with President Dmitry Medvedev at the Kremlin summit.

Observers here note that although Medvedev has frequently met Zardari on the sidelines of international meets and multi-lateral formats, this will be first official visit of the Pakistani President and acquires special importance in the wake of the US killing of Osama bin Laden in Abbotabad.

As cracks appear in the US-Pakistan alliance, Zardari might seek closer alliance with Russia, Sergei Strokan South Asia analyst of prestigious Kommersant daily believes.

In his interview to local media, Zardari has invited Russia to use Pakistani territory to fulfil the old dream of Russian czars to seek access to "southern seas".

According to him, such a move would contribute to economic prosperity of both countries.

Zardari said Moscow and Islamabad have so far failed to use their potential for economic cooperation to the full and voiced hope that the forthcoming talks with the Russian leaders would provide a fresh impulse for bilateral relations.

In Moscow, Zardari is scheduled to address the faculty and students at the Skolkovo School of Business. On Friday, Zardari will travel to St. Petersburg at the end of his state visit.

Pakistan’s new friend Russia

http://www.pakistanpatriot.com/?p=34605

Posted on 11 May 2011.

How the world changes. In the 80s, the US was allied with America fighting the USSR and Islamabad was instrumental in the implosion of the Soviet Union. The Kremlin admitted defeat and retreated from Afghanistan. The ingrates in Washington abandoned Pakistan and on the eve of the victory celebration sanctioned Pakistan for ephemeral faults and perceived crimes.

Today, the US-Pakistan relations are fraying, a victim of Gung-Ho Ramboism, and John Wayne imperialism that tramples on countries to achieve real or imaginary profits. President Zardari’s visit to Moscow is a seminal event. Kremlin has since de-hyphenated its relations with New Delhi and Islamabad. Moscow is no longer looking at Pakistan through Bharati eyes. It is looking at Pakistan through the glasses of self-interest. Pakistan has now taken centre stage in Russia’s efforts to seek out new profits in the area. Mr. Zardari has met Russian President Dmitry Medvedev five times in the past three years. Catherine the Great would be proud of Prime Minister Putin for helping Moscow get access to the warm waters of the Arabian Sea.Pakistan in return will get links to the Central Asia states. Pretty profitable ventures for both countries.

While the US media obsesses over Abbottabad, Beijing and Moscow are looking at the strategic impact of the US withdrawal or lack thereof in Afghanistan.. There are several events that have taken place.

1. Pakistan’s role acting as Praetorian guard in defense of Bahrain, Kuwait, the UEA, and Saudi Arabia.

2. The Pakistani-Chinese “Strategic Dialogue” that happened in April.

3. The Chinese-Russian dialogue in Moscow. Chinese President Hu Jintao met his Russian counterpart Dmitry Medvedev Wednesday in the southern Chinese beach resort of Sanya and the two leaders agreed to further improve cooperation and safeguard common interests.

4. The visit has been hailed as a ‘leap forward’ in Pakistan-Russia relations to promote greater understanding between the two countries.

5. Shortly before the G20 London summit , China’s central bank governor announced that the dollar should be replaced by SDRs.

6. The Shinghai Cooperation Organisation (SCO) is successor of Shinghai Five created in 1996. Pakistan is on the brink of joining it.

7. The “fizz” seems to have gone out of the US-Russia reset, and in this psot-Libya, post-OBL era, Moscow has been compelled into a reality check .

8. China has prepared for years for the U.S. to leave.

In Sochi last August, Russia institutionalized a new organization with Pakistan, Afghanistan and Tajikistan. The four countries are building economic structures to undertake joint economic projects in power generation, transport infrastructure and coal, copper and gold mining. They are rebuilding a trade Silk Route from former Soviet Central Asia via Afghanistan to Pakistan. Tajikstan is exporting and Russia is fundng a road and rail network. Moscow is investing in energy, (oil, gas and hydropower) sectors of Afghanistan, Pakistan and Tajikistan.

The US could have been part of the new bounties, but it has chosen to bank on drones and stealth choppers to achieve its objectives.

Pakistani President Zardari’s current official visit to Russia on May 11-14 will be the epitome of Moscow’s strategy of bringing Islamabad closer to Central Asia. One Russian scholar Vladimir Radyuhin writing for The Hindu says “Russian-Pakistani relations have recently acquired breathtaking dynamics.”

Russia has done astonishing things to develop relations with Pakistan. During the current visit of Mr. Zardari’s Pakistan and Russia will finalize the modernization of the Soviet built Pakistan Steel Mills in Karachi, the building of rail tracks from Dushambe to Islamabad, cooperation in the energy sectors and agriculture.

Russian Prime Minister Vladimir Putin announced the funding of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline at the Shanghai Cooperation Organisation (SCO) meeting in Dushanbe.

Moscow has refused to join the U.S. in ostracizing Pakistan– is Afghanistan. A minor detail in this classic web of profits is the US withdrawal from Afghanistan–after a debilitating expense of $3 Trillion.

The quid-pro-quo is real and beneficial to both sides. Russia wants dialogue with the Talibs and get peace from Pakistan, just like China has made peace with Pakistan and has peace with the Ughyers. In return Moscow promises to support Pakistan’s bid to join the SCO–a Russo-Chinese club which includes all the Central Asia states. The mutual benefit continues in a virtuous circle. Russia gets access to warm waters.

Vladimir Radyuhin is “All the settings are there that the current summit may be a momentous event not only for Russian-Pakistani relations, but for the entire region.”

An Indian summer in Moscow for Zardari

http://www.hindu.com/2011/05/11/stories/2011051154151300.htm

Vladimir Radyuhin

Pakistan is central to Russia's plans for a more active role in the region.

Pakistani President Asif Ali Zardari's official visit to Russia on May 11-14 will mark another step in Moscow's strategy of engaging Islamabad.

Russian-Pakistani relations have recently acquired breathtaking dynamics. When Mr. Zardari meets Russian President Dmitry Medvedev on Thursday it will be their fifth meeting in the past three years, even if the four previous interactions were on the sidelines of multilateral forums.

The current summit was prepared in record time: it was only last August that Mr. Medvedev extended an invitation to his Pakistani counterpart to come to Moscow. By comparison, it took the then President, Pervez Musharraf, years to get the Kremlin to act on its formal invitation to him. Russia then was still looking at Pakistan through India's eyes, and Mr. Musharraf's visit to Moscow in 2003 failed to break the ice. The current summit is different if only because the Kremlin has since de-hyphenated its relations with New Delhi and Islamabad.

Pakistan has now taken centre stage in Russia's efforts to play a more active role in Central and South Asia as Moscow braces for the drawdown of U.S.-led coalition forces in Afghanistan.

At a summit in Sochi last August, Russia institutionalised a quadripartite forum with Pakistan, Afghanistan and Tajikistan to counter the spread of drugs, terrorism and instability via Central Asia towards Russian borders. The four countries agreed to undertake joint economic projects in power generation, transport infrastructure and mining. At a follow-up meeting of economic Ministers in Moscow last October, the four discussed in greater detail plans to rebuild a trade Silk Route from former Soviet Central Asia via Afghanistan to Pakistan and export electricity from Tajikistan to Afghanistan and Pakistan. Russia confirmed its readiness to invest in the oil, gas and hydropower sectors of Afghanistan, Pakistan and Tajikistan.

Energising economic ties

In the past few months Moscow and Islamabad have prepared the ground for energising their flagging economic ties. The Inter-governmental Commission on Trade and Economic, Scientific and Technical Cooperation met for the first time in Moscow last September. Two months later Russian Prime Minister Vladimir Putin told his Pakistani counterpart Yousuf Raza Gilani at a Shanghai Cooperation Organisation (SCO) meeting in Dushanbe that Russia was willing to help fund and build the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, to which Moscow was earlier opposed. During Mr. Zardari's visit the sides are expected to sign a memorandum of understanding for the modernisation and expansion of the Pakistan Steel Mills in Karachi, which the Soviet Union built in the 1970s, as well as five other MoUs for the supply of Russian rail tracks, cooperation in the oil and gas sector, power generation, coal mining and agriculture.

The Pakistani President is arriving in Russia ten days after U.S. commandoes killed Osama bin Laden in Pakistan where he had enjoyed safe haven for years. However, Moscow made it clear this fact will not affect relations with Islamabad.

“Russia fully recognises and appreciates the substantial contribution made by the Islamic Republic of Pakistan to the efforts of world community” in countering international terrorism, Russian Ambassador to Pakistan Andrey Budnik said in an article he penned several days after the operation in Abbottabad.

The reason why Russia refused to join the U.S. in ostracising Islamabad is Afghanistan.

“Russia attaches great importance to cooperation with Pakistan in the sphere of Afghan settlement,” Mr. Budnik wrote. He explained that this cooperation was based on a shared understanding that the quest for peace in Afghanistan “must not become the prerogative of solely external players”, an obvious reference to the U.S.

Russia's veteran diplomat and orientalist Zamir Kabulov, appointed two months ago to the newly instituted post of the Kremlin representative for Afghanistan, immediately stated that Moscow is “open to dialogue” with those in the Taliban who are prepared to cut ties with al-Qaeda. Russia clearly counts on Pakistan to facilitate such dialogue. In return it promises to support Pakistan's bid to join the SCO.

Pakistan, along with the other observer nations in the SCO, “has all the chances to become a full member of the organisation”, according to the Russia envoy to Islamabad.

Mr. Zardari in return has offered to provide for Russia “access to warm seas”.

All the settings are there that the current summit may be a momentous event not only for Russian-Pakistani relations, but for the entire region.

Not to worry, India ties will survive MiG setback

http://indrus.in/articles/2011/05/10/not_to_worry_india_ties_will_survive_mig_setback_12495.html

May 10, 2011Victor Litovkin

It is no tragedy that Russia lost the biggest aviation tender of recent years. Our military and technical ties with Delhi will survive it.

The Indian Defence Ministry’s announcement that the Russian Mig-35 failed to make the short list for the Indian tender to purchase 126 warplanes under the MMRCA (Medium Multi-Role Combat Aircraft) programme was bad news for the Russian Aircraft Building Corporation MIG. But it was not exactly a “bolt from the blue”. The result was expected. Why?

There were six fighter planes competing for the $11 billion tender, which would load aviation industries for years to come. These were the American F/A18E/F Super Hornet by Boeing and F-16IN Super Viper by Lockheed Martin, the French Rafale from Dassault Aviation, the Eurofighter EF-2000 Typhoon (from EADS), the Swedish Gripen NG (Saab) and the Russian  Mig-35.

At the 7th Aero India-2009 international air show in Bangalore, the sponsors described the Mig-35 as “absolutely the best”, as this writer heard from loudspeakers at the Yelokhanka air base. Huge roadside pictures of the Mig bearing the words “MiG – with India, for India!” were erected every 10-15 km on the way to the airfield.

But two years on, at Aero India 2011, the Russian fighter was not even on display. All the competitors were present and made demonstration flights, but not the Mig-35. The Indian ambassador to Moscow was reportedly trying to persuade the Russian firm to send its plane to Bangalore, but they decided not to. Apparently, they already knew that the plane had no chance of winning the MMRCA tender.

What is the explanation for this?  A few years ago, the Indians made a revolutionary decision to diversify their arms purchases.  They have a point. It is not a good idea to put all one’s eggs in one basket. Who knows what might happen and one cannot depend on a single arms supplier and its potential and ability to provide spares and to modernise equipment supplied earlier.

The equipment used by the Indian army and navy is 80% Russian/Soviet. The problems of the Russian defence industry, which is going through hard times, have an immediate impact on supplies to the Indian armed forces. The Vikramaditya (formerly the Admiral Gorshkov) aircraft carrier is a striking example.  India commissioned its modernisation at the Sevmash shipyard, but the ensuing seven-year delay virtually doubled the price.

There are other, subjective factors. Yes, the Mig-35 looks very much like the Mig-29K, which the Indian Defence Ministry bought from Russia for the Vikramaditya carrier. Yet, in reality, it is a totally new plane that can ensure air superiority and precision strikes on land and surface targets without entering the enemy air defence zone.  The Mig-35 is equipped to change direction quickly, which gives it a major advantage in a dog fight situation.  The cockpit is fitted with LC displays and front window indicators and is suited to night-time operations.

The Mig-35 is equipped to change direction quickly, which gives it a major advantage in a dog fight situation. The plane can carry weapons on nine external suspension points and even act as a refuelling plane. But the designers of the Mig-35 are especially proud of its avionics, which have no peers among European fighters, claims Nikolai Buntin, chief designer of the Mikoyan firm. First, it enables the fighter to operate by day and by night in any weather. Second, its survival chances in air combat are dramatically increased owing to advanced radioelectronic and optical electronic warning and response systems.

Basically, this is what the Eurofighter Typhoon and the Dassault Rafale, which made it to the short list at the tender, can do. Yet the Mig-35 has, in addition, a radar station with an active phased antenna grid developed by the Fazotron-NIIR corporation on the basis of the serially produced Zhuk-ME radar installed on the previous Mig-29K/KUB and Mig-29SMT models. The station tracks 30 air targets and provides for a simultaneous attack on six air and land targets at distances of up to 130 kilometres. The radar can also make maps. Problems arose, however, with that radar.

Fazotron-NIIR is going through hard times. The Indian delegation that studied the situation at the Russian enterprise working on the Mig-35 programme apparently had doubts as to whether the firm could fulfil the future contract on schedule. The approach was applied to the entire Mig-35 plane, which has a robust defence complex that warns the pilot of an attack, allowing him time to dodge an enemy missile or use his own weapons pre-emptively. The French Rafale and the European Typhoon have not yet have produced such a complex commercially, so they will take some time to launch serial production. Given the problems that bedevil the Russian defence industry, the time may be extended and the Indians chose not to expose themselves to yet another problem with the Russian aviation industry.

Indeed, several months ago, the Indian customers set some demands on their partners. Specialists have counted 14 of them, including replacement of some on-board equipment with foreign analogues, increase in the power and lifespan of the plane’s engines, and simplification of servicing and repairs. These requirements were not met on time. One can guess why. Perhaps some Russian aviation industry officials have decided that winning the tender was a foregone conclusion. Given other equal conditions and combat qualities, they thought the Mig-35 would beat its rivals on the “price/efficiency” ratio. Alas, this was not to be.

It is, of course, somewhat consoling that the American F/A18E/F Super Hornet and F-16IN Super Viper did not make it either, even though the Americans devoted a lot of time and money to enable their fighter planes to break into the Indian market. But sensible people look for the reasons for their defeats in themselves.

It is no tragedy that Russia lost the biggest aviation tender of recent years. Our military and technical ties with Delhi will survive it. We will continue working on the BraMos missile, on the fifth-generation fighter, the MTA transport plane, the Airborne Warning and Control System (AWACS), frigates and submarines, including the nuclear-powered Nerpa. We have a good many joint projects. It is important for both sides to draw lessons not only from successes but also from setbacks. As for the Mig-35: it will fly, if not in Indian skies, then in Russian and perhaps in some others.

11:48

Russian military starts strengthening forces in Kurils - Gen. Staff

http://www.interfax.com/news.asp

GOOGLE TRANSLATION

Defense Ministry begins strengthening military forces in the Kuriles

http://www.interfax.ru/news.asp?id=189398

May 11, 2011 11:38Moscow. May 11. INTERFAX.RU - Plan to re-grouping of troops on the islands of the Kuril is approved by the government, and it will be implemented during the second half of 2011, told Interfax the Chief of General Staff of Russian Armed Forces, Gen. Nikolai Makarov."Developed by the Ministry of Defense approved the plan on the Kuril Islands. It can accommodate about four or five years, and in the second half of this year we will start to build two military town, whose construction is completed next year, "- said General Makarov.According to him, in a military town, located on the islands of Iturup and Kunashir, will be deployed new forces and means the 18-th machine-gun and artillery divisions.

Coalition overstepping in Libya – Churkin

http://english.ruvr.ru/2011/05/11/50110328.html

May 11, 2011 05:16 Moscow Time

Russia has stated that the actions of the international military coalition in Libya go beyond UN Security Council resolution 1973.

Once again this was repeated by the permanent representative of Russia to the United Nations Vitaly Churkin at a meeting of the United Nations Security Council.

He reiterated that resolution 1973 authorizes the use of force against government troops solely to protect the civilian population.

The Russian envoy said that this noble goal should not compromise efforts to resolve any parallel problems.

Moscow deems it necessary to once again clearly state that it is inadmissible to involve UN peacekeepers in the armed conflict and to take the side of one or other of the parties.

Russian Foreign Minister to visit Kazakhstan

http://caspionet.kz/eng/general/Russian_Foreign_Minister_to_visit_Kazakhstan_1305086224.html

The Russian Foreign Affairs Minister Sergei Lavrov is to visit Astana on a business trip. He is scheduled to meet with the Kazakh president and hold negotiations with his Kazakh counterpart Yerzhan Kazykhanov. According to the Kazakh Foreign Office official spokesman, Askar Abdrakhmanov, the two ministers’ meeting agenda will include the issue of cooperation of the two states as part of the inter-regional and border cooperation, as well as in the fuel and energy and space spheres. The Foreign Office also announces some fresh information about Valeriy Tolmachyov who is suspected by the Italian Police of an attempted plane hijack. With Tolmachyov having been transferred to a prison in Rome, this week he is to take part in the second court hearing in Italy.

Askar Abdrakhmanov, Official Spokesman, Kazakh Ministry of Foreign Affairs«Last week, Valeriy Tolmachyov was transferred from a district prison in the city of Civitavecchia to Rebebia in the city of Rome. According to the suspect’s attorney, such a decision is connected with the recommendations of the Civitavecchia prison doctor who suggested Tolmachyov to be under round-the-clock supervision of psychiatrists, so the suspect should be kept in a prison designed for people with psychiatric disorders.»

Russian ambassador speaks on SCO

http://caspionet.kz/eng/general/Russian_ambassador_speaks_on_SCO_1305086252.html

An anniversary summit of the Shanghai Cooperation Organization will be held this June in Astana, involving the presidents of its member-state who founded the organization a decade ago, which are China, Russia, Uzbekistan, Kyrgyzstan, Tajikistan, and Kazakhstan. Mikhail Bocharnikov, the Ambassador of Russia to Kazakhstan noted that the SCO agenda has contained issues related to the fight against terrorism and drug-trafficking as well as the situation in Afghanistan throughout all these years. The organization also pays great attention to humanitarian issues as well as economic cooperation among the SCO participating states.

Mikhail Bocharnikov, ambassador of Russia to Kazakhstan«Providing security and stability in the region is the main direction of activity. I would like to note the importance of discussing the situation in Afghanistan within the SCO framework in this respect. This neighboring country is of prime importance for us and we are interested in seeing Afghanistan as a peaceful, independent, neutral, and flourishing state. I would also like to note that we highly evaluate the role of Kazakhstan as the SCO chairman as well as its activities which are especially noteworthy as they coincide with the 20th anniversary of Kazakhstan’s independence this year. I believe that Kazakhstan’s chairmanship will be very positive and fruitful with the successful holding of the summit this June being its culmination point.»

Turkmenistan, Russia to hold joint innovation forum in Ashgabat

http://news.google.com/news/search?pz=1&cf=all&ned=us&hl=en&q=russian&cf=all&scoring=n

Trend News Agency (subscription) - 13 minutes ago

A joint Turkmen-Russian Scientific Conference on the topic "Innovation, New Technologies and Energy Efficiency" will be held on June 13 in Ashgabat, the conference organizers said. Turkmen President Gurbanguly Berdimuhammadov's corresponding decree ...

Customs Union's countries to unify railway tariffs

http://news.google.com/news/search?pz=1&cf=all&ned=us&hl=en&q=belarus&cf=all&scoring=n

Trend News Agency (subscription) - 5 minutes ago

Russia, Kazakhstan and Belarus will unify the Customs Union railway tariffs, Kazakh Vice-Minister of Transport and Communications Azat Bekturov said at the next plenary session of the lower house of Parliament today. "Each country will unify the ...

Russia, Norway to begin naval drills

http://en.rian.ru/mlitary_news/20110511/163965448.html

04:50 11/05/2011

Russia and Norway will begin a joint large-scale naval exercise, Pomor-2011, on Wednesday, a spokesman for Russia's Northern Fleet said.

The six-day exercise in the Barents and Norwegian seas will involve Russian Udaloy class destroyer Vice Admiral Kulakov from the Northern Fleet, Norwegian Fridtjof Nansen class frigate Helge Ingstad, as well as coastal guard vessels and naval aircraft.

The drills will include artillery firing at air and surface targets, anti-submarine warfare, an anti-piracy mission, and the freeing of an oil platform or a commercial ship seized by armed extremists.

Russia and Norway held similar naval drills last June to practice interoperability during missions in the Arctic.

MOSCOW, May 11 (RIA Novosti)

Russian warships complete visit to Vietnam, head to Vladivostok

http://en.rian.ru/russia/20110511/163966517.html

07:14 11/05/2011

A Pacific Fleet's task force led by the Admiral Vinogradov destroyer has completed a friendly visit to Vietnam and is now heading for the Far Eastern port of Vladivostok.

The Admiral Vinogradov destroyer, accompanied by a salvage tug and the Pechenga tanker, has paid a friendly visit to a Vietnamese port city of Da Nang while returning from an anti-piracy mission in the Gulf of Aden.

"The departure ceremony in Da Nang ended at 6:00 Moscow time Wednesday [2:00 GMT], and the task force headed to the homeland," a spokesman for the Pacific Fleet said.

During its four-month-long anti-piracy mission, which ended on April 17, the ship escorted 14 convoys of civil vessels through pirate-infested waters off the Horn of Africa.

The Russian Navy has maintained a presence off the Horn of Africa since October 2008, with warships operating on a rotation basis.

VLADIVOSTOK, May 11 (RIA Novosti)

Mi-171s to be delivered to Peru

http://english.ruvr.ru/2011/05/11/50113956.html

May 11, 2011 09:23 Moscow Time

Rosoboronexport will soon deliver the first batch of Mi-171 helicopters to Peru. This was reported by the press-service of the company in connection with the opening of an International Arms Show.

Russia has also offered Peru a contract to upgrade armored vehicles and naval equipment.

Countries are to discuss the purchase of Russian anti-aircraft and anti-tank missiles, ammunition and training.

Radiation within normal levels in Russia' Far East - emergencies center

Today at 09:42 | Interfax-Ukraine

Background radiation was normal in Russia's Far East as of 3 a.m., Moscow time on May 11.

Gamma radiation was between 10 and 17 microroentgens per hour, spokesperson for the Far East regional emergency situations center Maria Dubrovskaya told Interfax.

The Far East federal district is under no threat of radioactive contamination following the nuclear disaster in Japan, according to experts of the Far East hydrometeorology and weather monitoring center.

The situation in the region is being monitored by crews aboard Mil Mi-8 ad Mi-26 helicopters of the Far East Rescue Center.

Overall, 630 stationary and mobile monitoring posts have been deployed, plus six aircraft and 26 ships.

Monitoring missions continue in the Sea of Japan and in the Pacific Ocean off the Kurils and Kamchatka aboard the Pavel Gordiyenko research vessel.

Another mission of the Far East Floating University is on in Russia's economic waters in the Sea of Japan aboard the training sailing vessel Nadezhda. Law enforcement services are also involved in air and maritime monitoring.

A mobile radiation control post, deployed by the Defense Ministry's research and testing institute, based in the town of Artyom in Primorye, and a radiation control laboratory of Russia's hydrometeorology and weather monitoring service Roshydromet, based in Yuzhni-Sakhalinsk, are conducting the spectral analysis of air samples.

Read more: http://www.kyivpost.com/news/russia/detail/104069/#ixzz1M1dlVf6z

09:15 11/05/2011Top News

Radiation background below norm on Sakhalin, Kurils-EMERCOM

http://www.itar-tass.com/en/c32/139687.html

VLADIVOSTOK, May 11 (Itar-Tass) — Background radiation in the Sakhalin region on Wednesday is two times below the permissible level and is ranging from 5 to 16 micro-roentgens per hour, the press service of the Russian Emergency Situations Ministry’s (EMERCOM) main department for the Sakhalin region reported.

Intensified monitoring of the radiation situation in connection with the March accident at the Fukushima-1 Japanese nuclear plant is conducted by 99 stationary and mobile posts. Ships of the Sakhalin Coast Guard department of Russia’s FSB are also involved in the radiation monitoring. Data on the background radiation are coming from the posts every two hours to the Sakhalin regional Crisis Management Centre, the radiation hazard is not forecasted, there is no threat to the population.

The Fukushima-1 NPP, also known as Fukushima Daiichi, is a disabled nuclear power plant located on a 3.5-square-kilometre (860-acre) site in the towns of Okuma and Futaba in the Futaba District of Fukushima Prefecture, Japan. First commissioned in 1971, the plant consists of six boiling water reactors (BWR). These light water reactors drove electrical generators with a combined power of 4.7 GWe, making Fukushima-1 one of the 15 largest nuclear power stations in the world. Fukushima-1 was the first nuclear plant to be constructed and run entirely by the Tokyo Electric Power Company (TEPCO). The plant suffered major damage from the 9.0 earthquake and subsequent tsunami that hit Japan on 11 March 2011 and is not expected to reopen. The earthquake and tsunami disabled the reactor cooling systems, leading to nuclear radiation leaks and triggering a 30 km evacuation zone surrounding the plant. The Fukushima-2 Nuclear Power Plant, or Fukushima Daini, is located to the south and also run by TEPCO.

Bushehr goes critical

http://www.yournuclearnews.com/bushehr+goes+critical_63131.html

Wednesday, May 11, 2011

Iran's first nuclear power reactor has achieved a sustained chain reaction, Russian builder AtomStroyExport (ASE) has announced.  

According to ASE, Bushehr achieved criticality at 11.12am on 8 May 2011 and is now functioning at the minimum controlled power level. Final commissioning tests will now be carried out prior to ramp-up to 100% power and the start of commercial operation. According to Iranian news agency Fars, the plant is expected to be connected to the national grid within the next two months.

Construction work began on two German-designed pressurised water reactors (PWRs) at the Persian Gulf site in the mid-1970s but was abandoned in 1979 following the Islamic revolution when unit 1 was substantially complete. In 1994, Russia's Minatom agreed to complete unit 1 as a VVER-1000 making use of the infrastructure already in place. However, this necessitated major changes, including fabrication of all the main reactor components in Russia under a construction contract with AtomStroyExport. The Atomic Energy Organization of Iran (AEOI) said in 2008 that it was no longer planning to complete Bushehr unit 2.

Further delays ensued for negotiations over fuel supply for the plant, but two agreements were signed early in 2005 covering the supply of fresh fuel for the reactor and its return to Russia after use, securing the plant's fuel supply needs for the foreseeable future.

The road to start-up still was not without hold-ups. In February 2011, only weeks before operation was expected to start, the discovery of debris from damaged coolant pumps meant that all the fresh reactor fuel had to be unloaded, checked and cleaned, and the reactor internals and main circulation pipeline flushed through.

The plant will initially be operated by a 50:50 Russian-Iranian joint venture, with Russia gradually withdrawing over the next three years.

Unlike the controversial parts of Iran's nuclear program, such as uranium enrichment and a heavy-water reactor, the Bushehr plant has been entirely built and will operate under full IAEA safeguards. It will produce about 1000 MWe for the Iranian grid, establishing nuclear power at about 3% of the country's power supply.

Source: World Nuclear News

GOOGLE TRANSLATION

Submariners need to reconsider the case of the Nerpa submarine

http://www.bbc.co.uk/russian/rolling_news/2011/05/110511_rn_submarine_demands.shtml

Last Updated: Wednesday, May 11, 2011, 04:53 GMT 08:53 MCKPacific Fleet sailors and builders of submarines Nerpa stated that the death of 20 people on the submarine during sea trials in the Japan Sea in 2008 was the result of "corruption and the collapse of the military-industrial complex" and the defendants in this case the commander of the submarine Dmitry Lavrentiev and bilge engineer Dmitry Coffins appointed "scapegoat. "…

Lubna, Tatarstan President discuss cooperation and relations

http://www.wam.ae/servlet/Satellite?c=WamLocEnews&cid=1289993455942&pagename=WAM%2FWAM_E_Layout&parent=Query&parentid=1135099399852

2011-05-10 21:13:33WAM ABU DHABI: Sheikha Lubna bint Khaled al Qasimi, the Minister of Foreign Trade discussed today with Rustam Nurgaliyevich, the President of the Russian Federation's Republic of Tatarstan, bilateral ties and the opportunities to increase bilateral commercial and investment cooperation.

pointed out to the UAE's keenness on boosting cooperation with the Republic in commercial and economic fields, stressing on the importance of ensuring continued communication to explore investment opportunities.

In remarks at the meeting, the Minister underlined the UAE's advanced global commercial standing, competitive logistics capabilities and advanced infrastructure, pointing out that it enjoys many diverse investment opportunities in various sectors.

For his part, the President expressed his keenness on developing the bilateral relations between his country and the UAE, pointing out to the importance of the role played by the UAE in boosting Russian relations with the Islamic world.

The President expressed his hope to strengthen and increase the level of cooperation between the officials, businessmen and investors of both countries.

Non-oil commercial exchange between the UAE and Russia reached USD 1.049 billion in 2010, up from USD 727 billion in 2009.

The meeting was attended by Abdullah Ahmed Al Saleh, the Undersecretary of the Ministry of Foreign Trade, Juma Al Kait, the Assistant Undersecretary of the Ministry, Fahed Al Qarqawy, the Executive Director of the Foreign Investment Office in Dubai, and members of the accompanying delegation.

WAM/MMYS

Russian laws to be adopted for functioning of Islamic financing institutes

http://vestnikkavkaza.net/news/economy/13711.html

Russian legislative system will not be an obstacle for Islamic financing institutes of Russia, the head of Tatarstan Rustam Minnikhanov stated in Dubai, RIA Novosti reports.

“Our bank laws partially don’t correspond to work with Islamic financing, but we have analyzed this issue and it appears the problem can be solved,” Minnikhanov stated at the opening ceremony of Annual Investment Meeting 2011 in Dubai.

According to him, Islamic banks are necessary for Russia.

Islamic financing is a system of dealing with bank affairs according to the religious principles of Islam.

10:21

MEDVEDEV TO GIVE HIS FIRST PRESS CONFERENCE AS PRESIDENT AT SKOLKOVO ON MAY 18 - KREMLIN PRESS SERVICE

http://www.interfax.com/news.asp

GOOGLE TRANSLATION

Big press conference of Medvedev to be held on May 18 at Skolkovo

http://rian.ru/politics/20110511/372864030.html

11/05/2011 10:28MOSCOW, May 11 - RIA Novosti. Press conference of Dmitry Medvedev, scheduled for May 18, will be held in the building of the Moscow School of Management Skolkovo, cover the event accredited 802 journalists, the website of the Kremlin.Medvedev for the first three-year term in office as head of state will hold a so-called big press conference. Unlike his predecessor, Vladimir Putin, who introduced this practice, Medvedev preferred genre of interviews and meetings with media groups. In particular, every year, he summed up and answered live questions of the leaders of the three major channels - the First, "Russia and NTV. Presidential spokeswoman Natalia Timakova noted that a press conference due to accumulating large quantities of requests for interviews.The Kremlin press service has announced the beginning of the accreditation at the press conference on April 28, noting that a venue to be announced. Journalists sent a request through the website of the president. List of accredited published on the site www.kremlin.ru (prezident.rf). In addition, media representatives will be notified by e-mail.

07:47 11/05/2011Top News

Forest fires still burning around Russia’s Far East

http://www.itar-tass.com/en/c32/139654.html

VLADIVOSTOK, May 11 (Itar-Tass) — Forest fires are still burning around the Far East.

Russia’s Emergencies Ministry said on Wednesday they affected over 3,300 hectares of land.

In Yakutia 30 fires are raging on the territory of 2,563 hectares, the press service of the Far Eastern emergencies centre said. Forest fires spread over 643 hectares in the Amur region and 140 hectares – in the Khabarovsk territory.

On Tuesday, 51 fires were registered in the Far East, ten of them were put out.

Around 1,800 people and 236 fire-fighting equipment were engaged.

May 11, 2011 10:15

Probe launched into double murder at Moscow gas filling station

http://www.interfax.com/newsinf.asp?id=242597

MOSCOW. May 11 (Interfax) - A criminal case on counts of murder has been started into a fierce fight at a filling station in Moscow last night in which two men were killed, a source in law enforcement services told Interfax.

"The incident at a Rosneft gas filling station on Butyrskaya street in northern Moscow will be probed on counts of multiple murder," he said, adding that additional counts could be added later.

It was not an attack on the filling station, but a fight that erupted near it, he said.

"An unidentified man knocked at the door of the gas station. When the cashier opened the door she saw a bleeding man who said he had been attacked. The next moment the man fell and died. The woman walked outdoors to see three more men, lying on the ground, one of whom was dead," the spokesman said.

Among the victims there were three residents of the Voronezh region, born in 1978, 1982 and 1987, and a Muscovite born in 1981. The two survivors are in intensive care in extremely serious condition.

"The assailants' distinguishing features are known, as the attack was filmed by an outdoor video camera," he said.

Bank of Moscow seeks probe into Estonian bank stake sale

http://en.rian.ru/business/20110511/163969574.html

11:35 11/05/2011

The Bank of Moscow, which was recently partly acquired by state-run VTB bank, has asked the Interior Ministry to investigate if the sale of part of its 43.79 percent stake in Estonia's lender Eesti Krediidipank was legal, it said late on Tuesday.

Bank of Moscow sold 10.748 million shares for 6.99 million euros, having cut its stake in Estonia's lender to 16.22%.

"The Bank of Moscow employees responsible for preparing such deals were not informed about the sale of a part of Bank of Moscow's stake in Eesti Kredidipank," the bank said in a statement.

Bank of Moscow says that it received a copy of a sale contract under which it sold 4.576 million shares of Eesti Kredidipank to Firmex Inversteeringud of behalf of the bank's former head Andrei Borodin on April 21, the day when a shareholders' meeting replaced him with a former VTB employee.

Borodin told RIA Novosti news agency that VTB knew about the sale and he and VTB head Andrei Kostin discussed it at the beginning of March.

"Kostin said VTB did not need 43 percent in Eesti Krediidipank and asked us to find a buyer. We did it...All talk about someone not knowing about the deal is groundless," Borodin said adding that the stake had been sold above market value. "I consider the ... announcement as another effort to tarnish my reputation and have a dig at former management. This is new step in the raider seizure of Bank of Moscow," he added.

Borodin, an ally of former Moscow Mayor Yury Luzhkov, who was fired last autumn by President Dmitry Medvedev over a lack of trust, is now in London.

Russian prosecutors have requested a warrant for Borodin's arrest in absentia and put him on Interpol's wanted list.

A Bank of Moscow source told RIA Novosti the bank was investigating if the 6.2 million shares had been sold in good faith.

MOSCOW, May 11 (RIA Novosti)

May 11, 2011 10:50

Moscow press review for May 11, 2011

http://www.interfax.com/newsinf.asp?id=242609

MOSCOW. May 11 (Interfax) - The following is a digest of Moscow newspapers published on May 11. Interfax does not accept liability for information in these stories.

VEDOMOSTI

Gazprom's (RTS: GAZP) exports in May are roughly the same as in winter, Gazprom CEO Alexei Miller said on Tuesday. The company's shipments to countries outside the CIS grew by 12.4% in the first quarter of 2011 year on year, by 20.5% in April, and by 27.8% in the first ten days of May. "It is safe to say that growth in demand for Gazprom's gas is becoming a steady trend in 2011," Interfax quoted Miller as saying. Experts, however, warn that clients are simply buying fuel to replenish their stocks, and Gazprom itself expects the prices to reach the pre-crisis level by the end of the year. ('Miller Rejoices At Winter')

Boris Dubrovsky will be appointed the general director of the Magnitogorsk Iron & Steel Works (MMK), a source close to the company and two of Dubrovsky's acquaintances told Vedomosti. They say this is a choice of the company's principal owner, Viktor Rashnikov. The formal elections will take place at an MMK annual shareholder meeting on May 20. Vitaly Bakhmetyev, the MMK vice president for commerce, has also been nominated for the position. Rashnikov has governed MMK in the past fourteen years and will remain its board chairman to deal with its investments and development strategy, sources close to Rashnikov and a source close to MMK told Vedomosti. ('Rashnikov Makes Choice')

Prime Minister Vladimir Putin decided at a conference in April that benefits on the property tax should be preserved for monopolies, officials from the Finance Ministry and Economic Development Ministry told Vedomosti. Putin's press secretary Dmitry Peskov declined comments. Railways, trunk pipelines, and power transmission lines are exempted from the property tax. This infrastructure belongs mainly to state-owned companies, including Russian Railways (RTS: RZHD), Gazprom (RTS: GAZP), Transneft (RTS: TRNF), the Federal Grid Company, and the IDGC Holding. The government has decided not to deprive the companies of the privilege, fearing that otherwise the entire national economy would have to pay for it, as the monopolies could increase the tariffs. ('Fearing Tariff')

The European Union intends to cancel preferences on import duties for a lot of developing economies, including Russia, starting 2014, wishing to redistribute the benefits in favor of the neediest nations. The EU believes the system needs a revision, and only the poorest countries should enjoy benefits, says Karel De Gucht, the European commissioner for trade. Russia's exports to the EU have nearly quadrupled in the past ten years to $192.7 billion from $51.3 billion in 2000. Exports of some African countries, on the contrary, are stagnant or are declining, while the wealthiest developing economies, including Russia, Brazil, China, India and Thailand, account for 40% of the preferences, says De Gucht. ('Russia Does Not Need Benefits')

Aeroflot (RTS: AFLT) signed a firm contract with Boeing about two months ago for eight long-range B777 planes (two B777-200ER and six B777-300ER) and an option for eight more airliners. Under the option contract, Aeroflot expects two B777-300ER (which can carry from 365 to 451 passengers for 14,690 kilometers) and six B777-200ER (from 301 to 400 passengers, 14,310 kilometers), with the right to convert them into B777-200LR, whose range is up to 17,370 kilometers, or into B777-300ER, a source close to Aeroflot said. The planes are to be shipped in 2013-2017. The catalogue price of the contract is about $2.17 billion. However, just as before, Boeing has offered good discounts to Aeroflot, the Vedomosti source says. ('Cheapest Boeings')

KOMMERSANT

The recent fuel crisis in Russia has prompted the regions to use all possible channels for obtaining extra volumes of fuel, including subsidized shipments of fuels and lubricants for the agricultural sector. Most Russian regions affected by fuel shortages in the spring of 2011 significantly increased the volumes of extra requests for subsidized fuel to over 500,000 tonnes, a figure comparable to the growth in gasoline exports from Russia, which provoked the shortages. The Agriculture Ministry has vowed to "closely control" correspondence between the regions' requests for subsidized fuel and the size of cultivated areas in them: on the one hand, shipments of fuel to the agricultural sector are a priority for oil refineries, and on the other, growth in demand for fuel on the market could prompt a new price hike at filling stations. (Page 6, 'Fuel Crisis Stands On Edge Of Field')

The construction of the Kudepsta thermal power plant to provide electricity for the 2014 Winter Olympics in Sochi will be delegated from TGK-2 to the little-known company Concern Vneshenergosnab. TGK-2 is sure that the problems with the site chosen for construction make it impossible to complete the project on time. However, the new contractor, which has never built power-generating facilities, in addition to guaranteeing timely completion, has also vowed to raise up to 19.5 billion for the project's implementation. (Page 11, 'TGK-2 Knocked Out Of Olympic Race')

Oleg Deripaska's En+ has become the official owner of a 27% stake in the Vanino Commercial Seaport. An offshore company close to the group has transferred the shares to itself in the run-up to the privatization of the other 73% of the seaport's shares belonging to the state. En+ is mulling over their purchase, especially considering that the market players view the starting price for the stake - 1 billion rubles - as "low." (Page 11, 'Oleg Deripaska Recalls Vanino Port')

Russian Press at a Glance, Wednesday, May 11, 2011

http://en.rian.ru/papers/20110511/163967394.html

08:36 11/05/2011

A brief look at what is in the Russian papers today

WORLD

Russia condemned Ukrainian nationalists on Tuesday for disrupting Victory Day celebrations in the west Ukrainian city of Lvov. The Soviet victory over Nazi Germany in World War II is still celebrated across the former Soviet Union

(Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta, Izvestia)

The international coalition launched its biggest airstrike on the Libyan capital Tripoli since the NATO-led military operation began in mid-March. Meanwhile, Libyan opposition and western media give conflicting reports on the health of embattled Libyan leader Muammar Gaddafi, who has not been seen in public for more than 10 days

(Kommersant, Rossiiskaya Gazeta)

Trials of former Belarusian presidential candidates, charged with taking part in anti-government protests in December, continued in Minsk this week. Experts say there is little chance the defendants will walk free, despite pressure from the West

(Nezavisimaya Gazeta)

ECONOMY

Greece's 110 billion euro bailout package from the European Union may not be enough to save the country from default, the sum may be bumped up to 170 million euro

(Vedomosti)

VEHICLES & ENGINEERING

Russia's State-controlled Russian Helicopters has delayed a $500 million London IPO, informed sources said

(The Moscow Times, Kommersant)

Russia's flagship airline Aeroflot will buy Boeing B-777 aircraft at a discount of almost 50 percent on the expected price

(Vedomosti)

POWER GENERATION

Masataka Shimizu, who heads Japan's Tokyo Electric Power Co. (TEPCO), has requested financial help from the government, saying his company does not have enough funds to pay compensation to those affected by the Fukushima nuclear disaster

(Vedomosti)

TELECOMS & IT

Microsoft Corp is to buy the Internet telephone company Skype for $8.5 billion in cash from an investor group led by the Silver Lake private investment fund

(Vedomosti, Izvestia)

Russian state-controlled telecoms giant Rostelecom, officially the only telecommunications company permitted to create infrastructure for the country's electronic government service, rolled out a new version of the e-government portal Gosuslugi.ru at the country's biggest telecommunications event of the year, Svyaz-Expocomm, held annually at the Expocenter

(The Moscow Times, Rossiiskaya Gazeta)

INFRASTRUCTURE

Infrastructure builder Transstroimekhanizatsia, or TSM, has signed a 7.45 billion ruble ($268 million) contract to renovate the main runway at Moscow's Vnukovo Airport, the company said

(The Moscow Times)

DEFENCE

Russian President Dmitry Medvedev expanded the powers of the Russian Security Council and its chairman

(Nezavisimaya Gazeta, Rossiiskaya Gazeta)

SOCIETY

Six senior regional police officers lost their jobs in the latest round of Kremlin-ordered sackings at the Interior Ministry, giving some observers hope that reform is really taking shape within the police force

(The Moscow Times)

President Dmitry Medvedev discussed a proposal to make communications with judges a matter of public record in an effort to stamp out "legal nihilism" and improve the rule of law. Despite his efforts, British arbitration courts face a large influx of fraud cases from Russia and the CIS. Most law firms in England now have to hire Russian specialists to keep up with demand

(The Moscow Times, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

The Investigative Committee said on Tuesday that it has reopened a murky fraud case against Alexei Navalny, the whistleblowing blogger who has made powerful enemies with his corruption allegations

(The Moscow Times, Vedomosti, Kommersant, Izvestia)

Suicide attacks and police shootouts marred Victory Day celebrations in the North Caucasus. In the most recent incident, a police officer was killed when a suicide bomber blew himself up in Dagestan's Makhachkala

(Kommersant, Nezavisimaya Gazeta)

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

As Police Dismissals Mount, Hope Grows

http://www.themoscowtimes.com/news/article/as-police-dismissals-mount-hope-grows/436572.html

11 May 2011

By Alexandra Odynova

Six senior regional police officers lost their jobs Tuesday in the latest round of Kremlin-ordered sackings at the Interior Ministry, giving some observers hope that reform was really taking shape within the police force.

President Dmitry Medvedev has fired dozens of senior provincial police officials since his reform of the notoriously corrupt and ineffective police force started in March. But the real test of his mettle will be with the ministry's top brass, which he has allowed to keep their seats for now.

Five police generals and one colonel got the boot Tuesday, the first day back at work after an extended Victory Day holiday weekend, the Kremlin said on its web site, without providing a reason for the firings. Three officials served in the Kemerovo region, while the others worked in the Krasnodar and Saratov regions and the Tatarstan republic.

"These are substantial surgical strikes because the Interior Ministry is closely connected with the authorities and businesses, especially in the regions," said Kirill Kabanov, head of the nongovernmental National Anti-Corruption Committee.

Medvedev has been firing and downgrading senior police officers on a more or less weekly basis over the last few months, usually in batches of up to two dozen officials at a time. Eighty-seven of the Interior Ministry's 427 generals are expected to lose their jobs as part of the plan to shave 200,000 officers off the 1.2 million-member national police force.

Kremlin insiders have explained some of the dismissals to national news agencies, often saying the officials had reached retirement age. None has been accused of corruption or abuse of office, and several were later appointed to lower-ranking jobs.

All police officers have to take re-evaluation tests as part of the reform. The program was set to wind up by next month, but an official close to the reform told Interfax on Tuesday that the deadline may be pushed to December because examiners have failed to test all officers in time due to the tests being too complicated and time-consuming.

But while lower-level heads roll, senior officials at the ministry's central office, including Interior Minister Rashid Nurgaliyev, have not faced any challenges to their positions. It remains unclear whether Nurgaliyev — who has presided over the country's police force for seven years — has taken his own re-evaluation tests.

Medvedev's policy amounts to "a soft rotation without serious anti-corruption measures, but the need for it is clear," said Mikhail Grishankov, a United Russia member and deputy head of the State Duma's Security Committee.

"Now a lot depends on whether the newly appointed heads will build good reputations," Grishankov said.

Meanwhile, the ministry's top officials are likely waging a behind-the-scenes battle to keep their jobs, said Kabanov, of the National Anti-Corruption Committee. "Judging by our committee's experience, these officials are very good lobbyists," he said by telephone.

The extent of anti-corruption purges, including the fate of Nurgaliyev and his circle of associates, will depend on whether Medvedev or Putin runs for the presidency in 2012, Kabanov said. Medvedev and Putin have not indicated which of them might run.

Law enforcement agencies are considered the core power base of Putin, himself a former security service officer. When Medvedev began his dismissals at the Interior Ministry, some analysts speculated that be might be taking on Putin, but the president has not touched any of the prime minister's close associates.

Kabanov said the fate of the Interior Ministry's leadership was "a serious political agreement that will be made when the situation with 2012 comes clear."

The reshuffling "is not over yet," Grishankov said.

1.2 million Russians to become dollar millionaires by 2020, Deloitte says

http://caspionet.kz/eng/business/1_2_million_Russians_to_become_dollar_millionaires_by_2020__Deloitte_says_1305088751.html

By that time the wealth of 1.2 million Russian citizens will exceed 1 million US dollars. Russia is now in place number 16 with 375 thousand millionaires.

Russia will take place number 13 in the world’s dollar millionaires ranking within a decade, according to Deloitte estimates. By that time, the wealth of 1 million 200 thousand Russian households will exceed 1 million US dollars. The Deloitte survey covered a total of 25 largest world countries. Today, the «average» millionaire in the neighboring country has assets of 2.1 million US dollars. Regarding this rate, Russia is fifth in the world following Switzerland with 4.2 million US dollars, Singapore with 4 million, the USA with 3.7 million US dollars and Hong Kong with 2.9 million US dollars. In the next decade, the rapid growth of wealth of the richest families will be common for all the emerging markets, especially the BRIC countries. India will become the leader of the race as the wealth of Indian millionaires will grow by 408% to 3 trillion US dollars. Chinese millionaires are to accumulate 8.5 trillion US dollars in 10 years as their wealth will increase by 392%. High growth rates of assets of wealthy citizens will also be common for Brazil, where the number of millionaires is expected to increase by 258%. The top 10 millionaire countries will also include South Korea, which is now in the 15th place in this rating. Despite the growth of emerging economies over the next decade, the USA and Europe will still have the greatest concentration of the richest people. By 2020, the share of the US will account for 43% of the world’s private funds, or 87 trillion US dollars, which is 48 trillion higher than today.

Dmitry Medvedev’s three years in office: achievements, results and influence

http://en.rian.ru/valdai_op/20110511/163967901.html

09:43 11/05/2011

Three years ago, in early May, Dmitry Medvedev took his oath of office, becoming the third president of the  Russian Federation. The Valdai International Discussion Club asked some of its members to share their impressions and thoughts regarding Dmitry Medvedev’s presidency.

Sheng Shiliang, Chief researcher with the Center for Global Challenges Studies, China:

Over the three years of Dmitry Medvedev's presidency, I have had the honor to talk to him on several occasions. I can say that his openness and informal manner greatly appeal to me, as does his sense of humor. I also value his “great pragmatism” and conviction that freedom is better than non-freedom.

Maturing into his role, Medvedev also demonstrated a clear understanding of the long-standing problems his country faces as well as his resolution and consistency in tackling them.In fact he has been lucky. His predecessor, Vladimir Putin, has given Russia a forward momentum and laid solid foundations his successor could rely on. At the same time, Medvedev has made an important contribution to the country’s political, economic, social and diplomatic life.

He “forced Georgia to peace,” slowed down NATO’s eastward expansion and prevented the CIS countries from being drawn into that process. He started building a Russian version of Silicon Valley, encouraged the modernization of the national economy, launched a high-profile crackdown on corruption, made the courts more independent, and began reforming the innovation sectors. It was his government that directed funds to boosting the birth rate, and succeeded in slowing the population decline. He should be given credit for resetting U.S.-Russian relations and Russian-European relations, consolidating the Asia-Pacific focus of Russian diplomacy and greatly improving Russia’s international image.

But his luck has failed him elsewhere. First, he had to follow in the wake of his famous predecessor’s achievements and struggled to surpass his influence; second, the first years of his term in office were plagued by the global economic downturn, and he was compelled to adopt stringent measures right after a spell of rapid growth, which could not fail to have an impact on the rising standard of living. But none of that could halt Russia’s revival.

Some claim Medvedev and Putin are now at loggerheads. There have certainly been some verbal skirmishes between the two men lately. Both said, on April 12 and 13, that they do not rule out running for president in 2012. Russian and foreign sources point to the different political trends and interests represented in the ruling “tandem,” which is bound to split some day.From my perspective, both members of this tandem are true Russian patriots. Both are devoted to their country’s intensive development, even though they might differ on strategies, methods and means. Confucius once noted that “men of virtue” cannot all be alike, his point being to stress that it was entirely possible for two men to be radically different from each other, but for them each to still be real “men of virtue”.

In 2008, Medvedev and Putin ensured a smooth transfer of power from the one to the other. I think that a fitting solution will also be found in 2012.

Robert Legvold, Marshall D. Shulman Professor Emeritus, Columbia University and Director of the Euro-Atlantic Security Initiative, USA:

Fairness makes it impossible to judge Dmitri Medvedev's presidency in isolation from the power structure in Russia. The tandem in which the Prime Minister holds major, if not ultimate power, means that President Medvedev has been, at best, able to influence the agenda, but not shape it. And, accuracy, makes it impossible to separate entirely any judgment of Medvedev's domestic policy from the effects of his foreign policy, because one bleeds into the other.     What one can say is that Medvedev has struck themes that give a progressive cast to the direction in which Russia needs to travel, particularly, when it comes to the excessive weight of the bureaucracy, the inefficient intrusion of the state into the economy, the level of corruption suffusing the system, and the urgent need to modernize infrastructure and an antiquated industrial model. What one cannot say is that the themes struck have been translated into tangible results.    Given the structure of power in Russia, however, until and unless Medvedev and Putin are on exactly the same page—and in tone, emphasis, and perhaps substance that is not true today—clear cut progress on Medvedev's ostensible agenda will simply not happen. Thus, it makes more sense to judge the impact of his leadership by two other standards: first, what is the nature and range of the small steps that he has taken. Second, how has his foreign policy advanced Russia's domestic agenda.     On the first score, nudging Russia's state capitalism from the overt control by state officials over key corporations, while scarcely transforming the relationship between power and property, is a step in the right direction. As are various measures to improve the quality of the judiciary and expose corruption within it. While the package of laws in the 2009 anti-corruption legislation will not, without a vastly greater effort, begin to reverse a deepening crisis of corruption, many specific measures are well-framed and the basis for fighting the problem, if the will to do so emerges. Similarly, many of the specific elements in Medvedev's modernization program are more realistic and appropriate for the task than anything previously produced, even if for the moment they face vast system inertia and bureaucratic resistance. Thus, success, if Medvedev is to have it, certainly will not come soon—not in this presidential term—but rather will be at best the uncertain cumulative effect of small steps persistently pursued.    What he has accomplished, however, is to improve the external context in which he sets about his vision of a less corrupt, more open, modernized Russia. The reversal of an eight-year steady deterioration in Russia's relations with the United States and the European Union has been essential in giving any hope of seeing Medvedev succeed in the goals he articulates. It might, to take one example, be noted by the many Russian pundits who see his modernization campaign as futile or, worse, a cynical and empty slogan, that the shift in Russia's relations with the West has led both the EU and the Obama administration to buy into a "modernization partnership" and a "strategic innovation initiative" with their country.

Andrei Baklanov, Head of the International Affairs Department of the Federal Assembly’s Federation Council,  Deputy Chairman of the Council of the Russian Diplomats Association, Russia:

In my opinion, Dmitry Medvedev’s most significant achievement after three years in office was the calm and confident style he developed in addressing the effects of the global financial and economic crisis, which erupted less than a year into his presidency.

Essentially, Russia has emerged as one of those countries least affected in its aftermath.

Nonetheless, I believe that we should act more decisively in implementing policies aimed at strengthening the stability and predictability of the country’s economy.

I am specifically referring to problems in the energy market. I have been studying pricing trends in the hydrocarbons market for many years, and I would like to underscore that high oil prices favorable to Russia and other hydrocarbon producing nations have always been followed by a sharp price decline.

Therefore, we need to create an entirely different new formula for how the oil market should operate. To this end, we should more actively use existing institutions, specifically, the International Energy Forum, headquartered in Riyadh, Saudi Arabia. It is a unique organization, whose mission is to coordinate the pricing policies of all member states, including producers and exporters of energy resources.

I am confident that, building on the achievements of recent years, we will succeed in creating a new international economic and financial environment that will be more conducive to our economic development.

Bin Laden, Basayev and Terrorism's Scourge

http://www.themoscowtimes.com/opinion/article/bin-laden-basayev-and-terrorisms-scourge/436569.html

11 May 2011

By Dmitry Trenin

When Osama bin Laden was killed, I was in Washington and got to watch President Barack Obama’s televised announcement and witness Americans’ jubilation with the news first hand. Two themes struck me particularly: Justice is served, and there is no mission impossible for the United States. Crowds outside the White House in Washington and near Ground Zero in New York were chanting, “U-S-A!”

In Russia, the reaction to bin Laden’s death was certainly positive, but more muted. The Foreign Ministry welcomed the “liquidation” and immediately compared it to the killing by federal forces of Shamil Basayev, the long-time Terrorist No. 1 in the North Caucasus. Americans and Russians, it stressed, are allies in the fight against terrorism.

Bin Laden’s passing, as Basayev’s before him, will not end that fight. However, the war on terrorism has long ceased to be the organizing principle of international relations or even of U.S. foreign policy. U.S. special forces caught up with bin Laden in a residential area populated largely by military retirees. Ironically, over the past few years, the founder of al-Qaida had himself become semi-retired: a symbol, true, but of a bygone era.

A decade after 9/11, other events are moving the Middle East. In its early rumblings is the misnamed Arab Spring (there is no such season in the part of the world where winter morphs into summer without much pause). Westerners applaud the apparent maturity of the Arab streets, exemplified by the sudden absence of anti-U.S. and anti-Israeli slogans. Bin Laden was definitely behind the curve. Yet, the process of change in the Arab world is massive, long term and open-ended. Comparing it to Eastern Europe’s 1989 would be a dangerous delusion.

Bin Laden’s death will probably have the most impact in the region from where he masterminded his plots: Afghanistan and Pakistan. With the elimination of the formal reason for the U.S.-led military operation in Afghanistan, there are already calls for winding down an involvement that has cost the United States more than $400 billion over the past 10 years. Defense Secretary Robert Gates called bin Laden’s elimination a “game changer.” The dual deficit and debt crunch is pushing Washington toward the exit, which puts a premium on diplomacy rather than firepower.

It is not clear exactly how the United States will now act. It is increasingly clear, however, that the idea of beating the Taliban into submission while bolstering the power and authority of the Afghan government is not working. Going after Mullah Omar, bin Laden’s former host, would achieve almost nothing. The issue in Afghanistan is not defeating “Terrorism International” but fashioning a power-sharing deal that would stabilize the country and get it off the world’s television screens. Essentially, the issue is the Pashtuns rather than the Taliban.

Redefining the issue is one thing; solving it is another. For a long time, the road to political settlement in Afghanistan was believed to run through Pakistan, the creator of the Taliban. Now, however, the relationship between Washington and Islamabad is in deep crisis on both ends. Even as Americans are enraged that bin Laden had been living in the heart of Pakistan under protection, it appears, of its security services and the military, Pakistanis are incensed that Americans have mounted a daring attack deep inside their country. The next thing the United States would want to get, they fear, is Pakistan’s nukes.

Pakistan desperately needs friends, but the U.S. connection is becoming more and more tenuous. Washington, of course, is unlikely to stop aiding its difficult but so far indispensable ally and will only demand that it “comes clean” on its links with those whom Americans are still fighting. Islamabad, for its part, will continue receiving U.S. aid while it lasts, but it already views the United States as a tactical and temporary partner, and China as a strategic one. Increasingly, Afghanistan is turning into an issue in the complicated geopolitical gaming among Pakistan, India and China.

Bin Laden gone, Americans will probably leave the Hindu Kush sooner rather than later. Their departure will make the countries in the area responsible for handling the pieces. The time to prepare for that is now. Russians will need to pay closer attention to Afghanistan’s political dynamics. Crucially, Moscow needs an effective authority in Kabul as a partner in stemming the drugs traffic. It will also need to enhance the multilateral regional dialogue with Afghanistan’s neighbors, in particular China, India, Pakistan and Iran, and it could use the Shanghai Cooperation Organization as a platform for this. A stable and neutral Afghanistan is a goal many would share. Finally, Russia has to turn the still amorphous Collective Security Treaty Organization into an effective security arrangement for Central Asia, covering its exposed southern flank.  

Like Basayev’s death, bin Laden’s does not bring closure. The scourge of terrorism will remain. It can, however, help redefine the issues. Al-Qaida is still capable of deadly attacks, but a qualitative new situation is emerging across a long swathe of countries from Morocco to Pakistan. Social and political awakening in that region will be positive in the long run, but messy and occasionally dangerous in the short and medium term. Pakistan and Saudi Arabia are the countries to watch the most. Even as the Western presence and even influence in that region is set to diminish, new regional powers such as Turkey, Iran and potentially Egypt are stepping forward. Finally, 9/11 is history.

Dmitry Trenin is director of the Carnegie Moscow Center. His new book, “Post-Imperium: A Eurasian Story,” will be published in June.

Kadyrov Exploits Ties With Moscow To Build Islamic State

http://georgiandaily.com/index.php?option=com_content&task=view&id=21452&Itemid=132

May 11, 2011

Igor Rotar

On Аpril 28, 2011, the US Commission on International Religious Freedom (USCIRF) released its 2011 Annual Report. A full chapter concerns the Chechen Republic—the only Russian region to which the report pays special attention.

The report emphasizes that since Ramzan Kadyrov has been appointed to head the Chechen republic, “he has exploited Islam, distorting Chechen Sufi traditions to serve his own ambitions and justify his arbitrary rule. He has declared that Chechnya would be better off if it were ruled by Sharia law, which contradicts secular Russian constitutional and legal precepts.” The report points out rough violations of human rights, and in particular, the rights of women. The USCIRF recommends the US government to institute a visa ban and freeze the Chechen leader’s assets, and to urge its European partners to do the same (The US Commission on International Religious Freedom, 2011 Annual Report, www.uscirf.gov).

The author visited Chechnya at the end of last year and the results of that visit strongly indicated that Ramzan Kadyrov appears to be laying the foundation for the creation of an Islamic state in the North Caucasus. On the streets of the Chechen capital, for example, one may see posters with the image of two girls: one in a scarf with a mosque in the background, and another with dismissed hair with a precipice behind her. The devout Muslim addresses to the apostate: “I am Chechen, and I am proud of it. I follow the traditions of my nation. And who are you? Your dress is profane for the image of a Chechen woman.”

This propaganda material is placed in the streets of the city by the Chechen Republic ministry of external communications, national policy, media and information. Today, women who are working for state institutions are not allowed to come to work without a covered head.

“We found many cases of Ramzan Kadyrov’s guardsmen shooting with air guns at women with uncovered heads. Nowadays, a woman in Chechnya is considered a person of second grade. However, Kadyrov’s men not only struggle with the ‘frivolous’ appearance of women, but men with long hair are also stopped and threatened as well. Chechen human rights activist Kheida Saratova told the author during his 2010 visit that men are also stopped and told that they would have problems if they do not dress as is proper for a Muslim.”

In Grozny, the sale of strong alcohol products is allowed only from 8:00 am to 10:00 am. During the month of Ramadan, for example, the sale of alcohol is prohibited completely, and the work of cafes and restaurants is forbidden during the whole period from sunrise to sunset.

Sometimes, Kadyrov’s version of Islam exhibits itself in rather exotic forms. For example, in Chechnya, the Center of Islamic Medicine has been established. There, mullahs are trying to cure mentally ill people by prayer alone. “We expel demons from people, reading to them suras from the Koran. Before starting a treatment, patients go through a test. We have to be sure that the patient is not just mad, but that there really is a genie sitting inside of him. Our center was founded with the support of the President of the Chechen Republic Ramzan Kadyrov in February of this year,” Adam Eljukaev, the principal physician of the center, told the Jamestown Foundation during an extended interview.

It is noteworthy to mention that Ramzan Kadyrov also seeks to establish the Sufi tradition of Islam in Chechnya, in opposition to the so called “Wahhabi” version of Islam, which is frequently found among the insurgents operating in the region. In the North Caucasus, the term “Wahhabi” is used for adherents of the branch of Islam that is worshiped in Saudi Arabia and several other countries. However, supporters of this version of Islam in the North Caucasus consider this term a label with a negative connotation, and call themselves Salafis or fundamentalists.

Today, Ramzan Kadyrov is trying to present the war in the North Caucasus as a religious one—as a fight between traditional Sufi Islam of the North Caucasus against the “Wahhabi heresy.” It is worth mentioning that during the time of Ramzan’s father, Ahmed Kadyrov, who was the Mufti of Chechnya, that it was he who declared jihad against Russia. The mufti switched to the Kremlin side only in 1999, after a conflict with the so-called Wahhabis. “During the war, groups of volunteer Wahhabis came to Chechnya from Arab countries. These groups have been very well armed and therefore our Chechen men willingly joined them. Many of them [Chechen men who joined the Arab Wahhabi militants] adopted their [Arab Wahhabi] doctrine and tried to teach us, claiming that it was we who distorted Islam. We perfectly understood that any internal contention among us will play into hands of Moscow, which dreams of pitting Chechens against each other—to split the people by religious attributes. We tried to come to an agreement with them peacefully: ‘You are welcome to do what you want, but please, do not impose your views on us, do not accuse us of heresy.’ Alas, a dialog was not successful,” Ahmed Kadyrov said in a conversation with the author, not long before he switched to the federal side.

Since Ramzan Kadyrov today struggles with supporters who favor creating an independent Islamic state in the North Caucasus, the Kremlin is ready to forgive him for even the roughest infringements of Russian laws. Paradoxically, Kadyrov’s Chechen Republic differs from the Russian Federation to a much greater extent than the Chechen Republic of Dzhokhar Dudaev’s time. One of the reasons why, in 1994, the Russian army came into Chechnya, was the fact that at that time Chechnya became a “criminal, lack of restrictions zone”—a base of raids into neighboring Russian regions. However, in this sense, today’s Chechnya does not differ much from that of Dudaev’s time. It is indicative that nowadays Chechens who committed crimes in Russia are harbored in the Chechen Republic where they feel themselves relatively safe from arrest.