Russia 110304

Basic Political Developments Russians to work six days, vacation three due to March 8 Medvedev to discuss Moscow financial center - President Dmitry Medvedev will

hold a meeting later today dealing with the government’s plans to set up in Moscow an international financial center expected to  give a boost to markets in the post-Soviet area.  

Russian Prime Minister Vladimir Putin to speak at United Russia regional conference about development of Central Federal District until 2012, 2020

Russia to expand CIS ties – Putin: Prime Minister  Vladimir Putin made this point very clear when meeting in Moscow on Thursday with the Executive Secretary of the Commonwealth of Independent States Sergei Lebedev.

Ukraine and Russia fail to agree on timeframe for presidential meets - Ukraine and Russia on Thursday failed to agree on a timeframe for the next meeting between President Viktor Yanukovych and his Russian counterpart Dmitry Medvedev, signaling existence of major problems.

o Russian 1st DPM in Kiev to iron out bilateral economic issues -"The Russian president ordered me to discuss with my colleagues in the [Ukrainian] government the difficulties that currently prevent us from moving forward in the implementation of these projects," Shuvalov said at a meeting with Serhiy Liovochkin, head of Ukraine's Presidential Administration, on Thursday.

Peskov dismisses reports Putin may become IOC presidento Putin could be offered IOC chairmanship - newspapero Putin may become chairman of the International Olympic Committee - the

current visit of the American Vice President is connected with the need to discuss another important issue - "employment" of Vladimir Putin after the elections.

Customs Union countries, including Ukraine, will play significant role on world food market – Shuvalov

Friday, 4 March 2011 - Turkish Energy & Natural Resources Minister Taner Yildiz will attend Turkey-Russia Joint Economic Committee meeting in Kazan, the Autonomous Republic of Tatarstan. Yildiz and Russian Vice Deputy Prime Minister Igor Sechin will sign a protocol following the meeting.

Russian Emergencies Ministry to help out Libyan émigrés o EMERCOM preparing humanitarian aid operation in Libya - Earlier in the

day, Yuri Brazhnikov, the director of the ministry’s international department, told Itar-Tass that the ministry was preparing to help Libyan citizens, if need be. “We are preparing to participate in providing aid for citizens who flee Libya across the border with Egypt and Tunisia – they number tens of thousands. Our experience tells us that they are in need of humanitarian aid,” he said.

o Over 100 Russian citizens refuse to leave Libya - Foreign Ministry

o Ex-ambassador warns about radical Islamists seizing power in Libya - Alexey Podtserob, senior analyst with the Center for Arabic Research of the Institute of Oriental Studies

Geneva hosts new round of talks on security in South Caucasus Russia demands Japan apology over island dispute - Russian foreign ministry has

summoned Japan's charge d'affairs to Russia, and reiterated the Japanese protesters should be investigated.

o Kurils: The great game in Asia-Pacific - By M K Bhadrakumar Russians visit Washington's Hanford nuclear site - A group of Russians is getting

a firsthand look at U.S. efforts to clean up nuclear waste at the highly contaminated Hanford nuclear reservation in Washington state.

China Turns to Turkmenistan for Gas Amid Gazprom Pipeline Talks MTS warns energy firms on Turkmen deals - The company said the sudden

suspension of its licence late last year was 'a cautionary tale' for those doing business in the country

Kudinov: Russia waiting for products from Serbia - The director of Russia's trade representative office in Belgrade, Yevgeny Kudinov, said that the list of products from Serbia for which customs will not be paid in exports to the Russian Federation, will soon be expanded.

India-Russia bilateral trade at USD 8.52 bn Delay in potato exports to Russia - Potato exports to Russia have been badly

affected by the disruption of commercial activities at Port Said in Egypt. Azerbaijan, Russia discuss judicial cooperation Russia should explain plans to modernize Gabala radar station - Russia cannot

start modernizing the Gabala radar station without Azerbaijan's permission, deputy Fazil Mustafa told a plenary session of the parliament Tuesday, News.Az reports.

Azerbaijan gains destroying helicopters from Russia - Azerbaijan has signed a deal to buy 24 Mi-35M helicopters from Russia, giving Baku a huge boost in its attack helicopter fleet, eurasianet.org reports quoting Azerbaijani media.

Karabakh mediators to attend Presidents Sochi meetingo Philip Gordon: Moscow acts transparently in Karabakh processo Phillip Gordon: U.S. trusts Moscow in Nagorno-Karabakh conflicto Mediated Meeting: Presidents of Armenia and Azerbaijan to meet in Sochi

in an attempt to “reanimate the atmosphere of trust” - By Aris Ghazinyan Russia Ready to Run First Unit of Nuclear Plant by 2017 - First Vice-President of

the Russian company Atomstroyexport, the general contractor of the Belarusian nuclear plant construction, Alexander Dybov declared readiness to start the first NPP unit in 2017.

Russia to build Red Army memorial in Israel -    The memorial will commemorate the Red Army’s victory over the Nazis and the release of Jews from concentration camps.

Russian fighter jet designer Simonov dies at 82 Who has the fastest warplane? Russia tests another supersonic T-50 fighter - By

Fred Weir

Huge state orders for Zvezdochka shipyard - Huge state orders for Zvezdochka shipyard

Bout’s trial has been delayed o Bout trial postponedo Judge rules to improve Bout's incarceration conditions

Russia remembers Domodedovo blast victims - Russia is remembering victims of the Domodedovo airport blast 40 days after the attack.

Austria awards Russian Railways CEO - The Austrian government has awarded the head of the Russian railways Company Vladimir Yakunin with an honorary medal for his “effort to promote political, economic and cultural ties between the two countries.”

New ISS crew gears up for liftoff - The Soyuz is slated to lift off on March 30 with a new crew on board a capsule named after the world’s first man in space, Yuri Gagarin.

Police find 149 mln rbls stolen from Vladikavkaz bank Kabardino-Balkaria police should use Black Hawks to fight terrorism - Torshin Police officer killed in Dagestan’s Makhachkala - Deputy head of the Department

of the Federal Tax Service for Dagestan Zalkipri Sheikhov was killed in shooting in Mackachkala on Friday morning.

Terrorists to be exposed by the beam - New equipment is able to identify a person with explosives even in a crowd.

Dagestan blackout - More than 3,000 people remain without electricity in the southern Russian republic of Dagestan.

Moscow’s first high-speed tram line to be built by 2013 RUB 55 bln to be spent to build Moscow’s new satellite town Ex-Moscow city official says given asylum in Lithuania - A former head of the

Northern Administrative District of Moscow who is accused of swindling Yelena Baturina out of 1 billion rubles said on Thursday he had been granted political asylum in Lithuania.

Kremlin Cribs - Russians Want to Know More About the Private Lives of Their Leaders and Where Their Money Comes From

Killing the Messenger - And as Putin’s authority tightens further, all but assured of a return to the Presidency again next year, many people whose job is to question political authority and decision making at every level, are being bashed into a pulp, or brutally murdered.

Radical art group Voina 'attacked by police' in St. Petersburg Russian press review (FOCUS News Agency) Russian Press at a Glance, Friday, March 4, 2011 The Russian Vegas … in Siberia - Russia is betting it can turn nine square miles

of remote Siberia into Las Vegas East

National Economic Trends State reforms vital for economic growth – Kudrin: In an article published by

Voprosy Ekonomiki weekly Kudrin and his deputy Oxana Sergienko say that modernization of the state provides for reducing  monopolism in the Russian

markets, easing state control of the economy and cutting the share of so-called “shadow businesses”.   

Business, Energy or Environmental regulations or discussions The RTS stocks index rose above the psychologically important 2,000 point mark

on Thursday for the first time since summer 2008. (Reuters) The country stands to lose $4 billion in arms deals because of unrest in Libya,

Interfax cited Sergei Chemezov, head of Rosoboronexport, the state holding company that controls arms exports, as saying Thursday. (Reuters)

Viktor Maslakov, Skolkovo Foundation city manager, and Jean-Marie Duthilleul, president of AREP, which won the competition for the planning of the "innovation city," signed a contract Wednesday to start design work, the Skolkovo press service said. (MT, RIA-Novosti)

Home Credit & Finance Bank will seek a general banking license to "expand activities," the consumer lender said in a statement Thursday. (Bloomberg)

The Finance Ministry revised its estimate of the 2010 budget deficit to 4.1 percent of gross domestic product, from 3.9 percent, Finance Minister Alexei Kudrin said Thursday. (Bloomberg)

Billionaire Usmanov TV Unit Hires Banks for IPO, RBC Daily Says Russian Shoe Retailer CentrObuv May Hold IPO, Vedomosti Says Yandex Search Engine May Be Valued at $8 Billion, RBC Daily Says Ex-Russian Billionaire Polonsky Quits Business After Bankruptcy Norilsk Nickel has no plans to make new offer to RusAl – Klishas Rusal Rejects Norilsk Offer to Buy $12.8 Billion of Shares (2) Rusal Gains Most in Three Weeks After Rejecting Norilsk Offer Russia’s operator Yota to build US$2 billion LTE network Russian operators seal 4G network deal VKontakte Refuses to Sell Company to Mail.Ru, Kommersant Says Telenor Urges VimpelCom Shareholders to Reject Wind Purchase Russia Launches Arctic Railway Connecting Gas Fields Russia: RTS through 2,000 Bank of Moscow stake is frozen Mazda mulls Russian assembly plant Lada in foreign gear

Activity in the Oil and Gas sector (including regulatory) Urals crude, Russia’s main export blend, fell the most since Feb. 4. Rosneft, the

country’s largest producer, declined 0.2 percent to 269.57 rubles. Lukoil, its largest rival, advanced 1.2 percent to 2,039.5 rubles.

Japanese Interested in Shtokman Project Putin’s Arctic Energy Selloff Spurs Novatek Gain: Russia Credit Total’s Yamal, Siberia Investment May Reach $10B, Echos Says Sergei Chemezov’s Wife Owns 5% of Itera Gas, Vedomosti Reports Regular meeting of the Board of Directors of Rosneft - The Board of Directors of

Rosneft held a regular meeting on March 3, at which various aspects of current operations were discussed.

TNK BP may shut Ukraine refinery if import duties are nixed

Russia's TNK-BP speeds up Uvat oil output LUKoil Sells American Unit

Gazprom Gazprom considers construction of oil refinery in Sakhalin Gazprom plans to add more than 11 billion metric tons (80.6 billion barrels) of oil

equivalent reserves through offshore exploration in Russia by 2030. Shtokman developers put pressure on Murmansk - More beneficial tax conditions

will improve the investment climate in Murmansk Oblast, Gazprom and the Shtokman Development company underline.

Gazprom Turns to Lanner Simulation as Shtokman Development Prepares for Phase 1 Development

Gazprombank and Areximbank-Gazprombank Group offer money transfers between Armenia and Russia without account opening

Gazprom's non-transparency raises eyebrows with Russia - Transparency International said in its annual report that Russia's natural gas monopoly Gazprom was one of the most non-transparent oil and gas companies in the world. The report contains information about anti-corruption programs and standards used in financial accounting.

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Full Text Articles

Basic Political Developments

March 04, 2011 10:34

Russians to work six days, vacation three due to March 8http://www.interfax.com/newsinf.asp?id=226535

MOSCOW. March 4 (Interfax-AVN) - Due to the celebration of International Women's Day on March 8, the current week will be a six-day working week in Russia, from February 28 to March 5, according to the Federal Labor and Employment Service.

"On the occasion of the International Women's Day Russians will have three days off - from Sunday, March 6, to Tuesday, March 8. The working day on Monday, March 7, will be shifted to Saturday, March 5," the agency's deputy chief Ivan Shklovets told Interfax.

The working day on March 5 will be one hour shorter.

The March holidays in Russia will be followed by a three-day working week from March 9 through 11, the agency said.

Medvedev to discuss Moscow financial center http://english.ruvr.ru/2011/03/04/46921590.html

Mar 4, 2011 02:07 Moscow Time

President Dmitry Medvedev will hold a meeting later today dealing with the government’s plans to set up in Moscow an international financial center expected to  give a boost to markets in the post-Soviet area.  

Medvedev also hopes the center, which he proposed about two years ago,  will have an impact also on the East and Central European countries.

Russian calendar: Key events for March 4

Russian Prime Minister Vladimir Putin to speak at United Russia regional conference about development of Central Federal District until 2012, 2020

http://www.prime-tass.com/news/calendar/_Russian_calendar_Key_events_for_March_4/-103/%7B212A0F05-3C8C-47EA-9875-4FF96FFF064E%7D.uif

Russia to expand CIS ties http://english.ruvr.ru/2011/03/04/46921087.html

Mar 4, 2011 00:47 Moscow Time

Russia is all set to expand mutually-beneficial cooperation with its fellow CIS countries.

Prime Minister  Vladimir Putin made this point very clear when meeting in Moscow on Thursday with the Executive Secretary of the Commonwealth of Independent States Sergei Lebedev.

Lebedev, for  his part, said that Russia continues to play  a leading role in integrating the former Soviet republics and is a perfect venue for economic and business forums held within the CIS framework. 

Ukraine and Russia fail to agree on timeframe for presidential meetshttp://www.ukrainianjournal.com/index.php?w=article&id=12100Journal Staff Report

KIEV, March 3 - Ukraine and Russia on Thursday failed to agree on a timeframe for the next meeting between President Viktor Yanukovych and his Russian counterpart Dmitry Medvedev, signaling existence of major problems.

Russia’s First Deputy Prime Minister Igor Shuvalov was in Kiev on Thursday for talks with Serhiy Liovochkin, Yanukovych’s chief of staff, to discuss the upcoming meeting.

Russian 1st DPM in Kiev to iron out bilateral economic issueshttp://www.ukrainianjournal.com/index.php?w=article&id=12098

Journal Staff ReportKIEV, March 3 – Russian First Deputy Prime Minister Igor Shuvalov has said that he will discuss in Kiev the problems impeding economic cooperation between Ukraine and Russia.

"The Russian president ordered me to discuss with my colleagues in the [Ukrainian] government the difficulties that currently prevent us from moving forward in the implementation of these projects," Shuvalov said at a meeting with Serhiy Liovochkin, head of Ukraine's Presidential Administration, on Thursday.

11:39Peskov dismisses reports Putin may become IOC president

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

09:24Putin could be offered IOC chairmanship - newspaperhttp://www.interfax.com/news.asp

Putin may become chairman of the International Olympic Committee http://eng.expertclub.ge/portal/cnid__7844/alias__Expertclub/lang__en/tabid__2546/default.aspx

04/03/2011 11:14

Next week Russian President Dmitry Medvedev will meet with US Vice President Joseph Biden in the Kremlin, reports Nezavisimaya Gazeta newspaper.

Sources of the publication in the State Duma maintain that Biden's visit demonstrates the support of the west of potential nomination of Dmitry Medvedev's candidacy for the second term. However, the source points out that the current visit of the American Vice President is connected with the need to discuss another important issue - "employment" of Vladimir Putin after the elections.

The source said that the prime minister, if he decides not to participate in the elections, may be offered a post of a chairman of the International Olympic Committee.

Director of the Department of Elite Studies of the Institute of Sociology (Russian Academy of Sciences) Olga Kryshtanovskaya believes that if the Russian elite decide that Medvedev will be a president then the question of a place of Vladimir Putin in the international organizations will arise.

March 04, 2011 11:21

Customs Union countries, including Ukraine, will play significant role on world food market – Shuvalovhttp://www.interfax.com/newsinf.asp?id=226556

KYIV. March 4 (Interfax) -Ukraine, Russia, Kazakhstan, and Belarus will pay a significant role on the world food market if they join into a customs union, Russian First Deputy Prime Minister Igor Shuvalov said.

"We believe Ukraine, Kazakhstan, Russia, and Belarus have great prospects if they form a customs union. That will make them the main nucleus of food security in the world. Our countries will be a powerful food player," Shuvalov told reporters in Kyiv on Thursday after meeting with Ukrainian First Deputy Prime Minister Andrei Klyuyev.

The integration between Russia, Kazakhstan, and Belarus in the Customs Union and the talks on the creation of a free trade zone between the EU, these countries, and Ukraine do not contradict each other, Shuvalov said. "We are operating under the assumption that these formats do not contradict each other. Ukraine's possible accession to the Customs Union at a certain stage would even speed up the signing of an agreement with the EU," Shuvalov said.

Klyuyev, in turn, pointed out that some cooperation projects between these countries hold promise.

The deputy prime ministers limited themselves to a press statement and did not answer questions from journalists.

Kazakhstan, Russia, and Belarus created the Customs Union on January 1, 2010.

DIARY - Turkey - to June 12, 2011http://www.reuters.com/article/2011/03/04/diary-turkey-idUSLDE71R06M20110304FRIDAY, MARCH 4

…

*KAZAN, Russia - Energy Minister Taner Yildiz meets RussianDeputy Prime Minister Igor Sechin and attends meeting ofTurkish-Russian business commission.

DIARY - Political and General News Eventshttp://www.turkishweekly.net/news/112299/diary-political-and-general-news-events.html

Friday, 4 March 2011

4- Turkish Energy & Natural Resources Minister Taner Yildiz will attend Turkey-Russia Joint Economic Committee meeting in Kazan, the Autonomous Republic of Tatarstan.      Yildiz and Russian Vice Deputy Prime Minister Igor Sechin will sign a protocol following the meeting.

Russian Emergencies Ministry to help out Libyan émigrés

http://english.ruvr.ru/2011/03/04/46929517.html

Mar 4, 2011 10:51 Moscow TimeThe ITAR-TASS news agency quotes a Russian Emergencies Ministry official Yuri Brazhnikov as saying that the Ministry will, if necessary, give a hand to the Libyans fleeing from the unrest-swept country. We are preparing to help out the tens of thousands of Libyans leaving their country to Egypt and Tunisia. Our experience proves that they will need humanitarian aid, the official said. Earlier the Emergencies Ministry evacuated more than 1,100 people, including more than 500 Russians, from Libya.

EMERCOM preparing humanitarian aid operation in Libya

http://www.itar-tass.com/eng/level2.html?NewsID=16011425&PageNum=0

04.03.2011, 11.11

MOSCOW, March 4 (Itar-Tass) -- Russia’s Emergencies Ministry is preparing an humanitarian aid operation in Libya, Emergencies Minister Sergei Shoigu said on Friday.

“Now we must prepare a large-scale humanitarian operation in Libya, especially it implies aid to the people staying at the border with Tunisia and Egypt,” he said at a meeting of the governmental emergencies commission.

Shoigu expressed his thanks to all those who were involved in the evacuation of Russians and foreign citizens from Libya. “I thank the Ministry of Transport, Russian Railways Co, whose employees worked in this country. I thank pilots and doctors from the Ministry of Health and Social Development. I think you’ve heard the words of gratitude the Russian President said,” he noted.

In his words, it was a difficult operation but “it was done.” “And Russia was the first to be through with it,” he stressed.

Earlier in the day, Yuri Brazhnikov, the director of the ministry’s international department, told Itar-Tass that the ministry was preparing to help Libyan citizens, if need be. “We are preparing to participate in providing aid for citizens who flee Libya across the border with Egypt and Tunisia – they number tens of thousands. Our experience tells us that they are in need of humanitarian aid,” he said.

According to Brazhnikov, people in Libya also need help. “No foods are delivered to the country. Many doctors have left the country. The situation will only worsen, and the need for aid will increase. The issue of aid is now looked at," he said.

March 04, 2011 11:07

Over 100 Russian citizens refuse to leave Libya - Foreign Ministryhttp://www.interfax.com/newsinf.asp?id=226546

MOSCOW. March 4 (Interfax) - More than 100 Russian citizens have refused to leave Libya despite the current turmoil in that country, the Russian Foreign Ministry told Interfax on Friday.

It is difficult to cite a more accurate figure, since not all Russians are registered with the consular services, it said.

Overall, more than 520 Russians have been evacuated from Libya, said Foreign Ministry spokesman Alexander Lukashevich.

"According to figures, provided by the Russian embassy in Tripoli, 1,116 people have been evacuated from Libya by air and by sea, including 523 Russian citizens," he said at a press briefing in Moscow on Thursday.

04 March 2011, 10:30

Ex-ambassador warns about radical Islamists seizing power in Libya http://www.interfax-religion.com/?act=news&div=8250

Moscow, March 4, Interfax - Chances of radical Islamists seizing power in Libya are very high and the consequences will be sad, Alexey Podtserob, a senior analyst with the Center for Arabic Research of the Institute of Oriental Studies, said in an interview for Russia Today television.

"Here, there is a danger, a serious danger coming from the fundamentalists. There are two major opposition organizations in Libya and chances of their coming to power are fairly high," he said.

"The first organization is the National Front for the Salvation of Libya. Its leader, Al-Magariaf, is not an Islamist but the Muslim Brotherhood dominates some of its member groups," the analyst said.

"The second group is the Libyan Islamic Fighting Group supported by Libyan emigres in Europe. In 1996, it sent militants to Libya in an attempt to unleash a guerrilla war in Cyrenaica," he said, adding that separatist moods are fairly strong in that eastern Libyan province.

"Third, al-Qaeda has been closely watching, seeing Libya as a weak spot, as a country where it might succeed. I do not rule out that al-Qaeda has had a hand in all this," the ex-ambassador said.

If the fundamentalists come to power, the consequences will be pretty sad, Podtserob feels, because "those aren't moderate fundamentalists as in Egypt or Tunisia, but extremists and radicals who will attempt to impose dictatorship on their own people from within to be able to fulfill their principles, namely an Islamic state and an Islamic economy".

In the analyst's opinion, Libya faces such problems as regionalism and tribal rivalry.

"Rivalry between various regions on the one hand and between various tribes on the other hand might blow up Libya. It's a challenge not to be ignored," Podtserob said.

Geneva hosts new round of talks on security in South Caucasus http://english.ruvr.ru/2011/03/04/46923260.html

Mar 4, 2011 06:50 Moscow Time

Delegations from Russia, Abkhazia, Georgia, South Ossetia and the United States  are meeting in Geneva today in already the 15th round of discussions on ensuring stability and security in the South Caucasus.

In a statement released on Thursday the Russian Foreign Ministry said the focus would be on the non-use of force in the region and security guarantees for Abkhazia and South Ossetia. 

The  discussions on ensuring security and stability in the South Caucasus, initially proposed by Russian and French Presidents in the wake of the tragic events of August 2008 in South Ossetia, have been going for more than two years now.

Russia demands Japan apology over island disputehttp://news.xinhuanet.com/english2010/video/2011-03/04/c_13760908.htm

2011-03-04 10:58:58

BEIJING, March 4 (Xinhuanet) -- Russian Foreign Ministry has urged immediate criminal investigation into a group of Japanese who protested outside Russia's Embassy last month and burned Russian national flags.

Russian foreign ministry has summoned Japan's charge d'affairs to Russia, and reiterated the Japanese protesters should be investigated.

It also said Russia will reserved the rights of criminal charges on the protesters according to law. The foreign ministry also said the issue will impact its future ties with Japan if the Japanese side insisted reject to investigate.

The dispute over four islands known as the Northern Territories in Japan, and the Southern Kurils in Russia, have long been a sticking point in relations between the two nations.

(Source: CNTV.cn)

Kurils: The great game in Asia-Pacific

http://www.atimes.com/atimes/Central_Asia/MC05Ag01.html

By M K Bhadrakumar

The Russian decision this week to deploy cruise missiles on the disputed South Kuril

Islands significantly takes forward what began as a diplomatic row with Japan last November to a new level of activity. When the row erupted in November following the visit by Russian President Dmitry Medvedev to the islands, the first-ever such trip by a Russian (or Soviet) head of state, Moscow's narrative was that it was a symbolic assertion of sovereignty that came naturally and spontaneously.

"There are so many picturesque places in Russia. Kunashir" - that was what Medvedev noted when he uploaded on his Twitter account soon after landing. The narrative has since changed.

And from the diplomatic realm, the Russian-Japanese row has steadily spread to the political and military planes through the past two to three months. The latest move to deploy the cruise missiles underscores that somewhere in the deep background there was all along a compelling urgency in Moscow's moves on the chessboard in terms of the geopolitics of the Asia-Pacific region. After all, Moscow was moving with great deliberation.

Inalienable partAt the root of it is Tokyo's refusal to give up its claim over four Kuril Islands - Iturup, Kunashir, Shikotan and Habomai - which were annexed by the Soviet Union after World War II, which in turn has prevented the two powers from signing a peace treaty to end hostilities.

But it is much more than about a territorial dispute. This is where some commentators tend to draw simplistic but not altogether meaningless parallels with the precipitate moves by a weak czar in the Kremlin 100 years ago. Driven by complex motivations of reviving Russian nationalism and Russian expansionism in the Far East against a backdrop of great fluidity in the regional politics and contending with rival imperial ambitions, Czar Nicholas II brought the roof down on everyone including himself in 1905. No one predicts another Russo-Japanese war anytime soon.

Nor is the long-running Kuril Islands dispute hardly providing scope for a resolution anytime soon. So, why has Russia suddenly become so assertive on this sensitive issue? Prima facie, the precipitate Kremlin moves do not even square with the broad thrust of Medvedev's foreign policy to form "modernization alliances" with the West and Japan and woo foreign investments and technology for Russia's modernization and innovation.

There is always scope for a point of view that somewhat like Csar Nicholas, Medvedev blundered into the current row, which is really only a storm in a tea cup. According to this version, all that Russia is interested in is to accelerate the development of its far-eastern region, which naturally involves strengthening its defenses as well, and that purpose could have been achieved by Medvedev deputing a lower ranking official to travel to the Kurils last November, but he made a mistake by volunteering himself.

Another spin is that Moscow was simply getting fed up with the dispute with Japan showing no signs of being in any tearing hurry to resolve it and Medvedev simply ''sped

up the process''. Russians brood too much. But the flaw in this viewpoint is that Medvedev also deputed several officials to follow up on his footsteps, including Defense Minister Anatoly Serdyukov and Foreign Minister Sergei Lavrov, and then himself began harping on a massive beefing up of the Russian military presence on the islands.

Meanwhile, a new template also began appearing in the Russian narrative: the Kuril dispute is actually Russia's Falkland problem. The implication is that like Argentina vis-a-vis Britain, Japan is using the dispute with Russia ''as a tool for shifting public attention away from domestic problems and onto a struggle against an external enemy'', to quote a Moscow analyst. That is to say, Japan too may one day choose the Kurils, which is weakly defended by Russia, as a soft target to vent out aggression.

Woven into this are two minor arguments: first, Russia, too needs, an ''Iron Lady'' like former British premier Margaret Thatcher in the Kremlin, which, figuratively speaking, means a political leadership with the grit to ''uphold the interests and dignity of Russia'' and the determination to demonstrate that Russia will do what it takes to uphold its interests and territorial integrity.

Arming the KurilsRussian scholars have been quick to interpret that there is an increased level of aggressiveness lately on the part of Japan. To quote Viktor Pavlyatenko of the Center for Japanese Studies at the Russian Academy of Science's Institute of the Far East, "Japan's political elite has created a highly charged atmosphere around this territorial dispute." In the words of another analyst, Mikhail Barabanov: Russia would do well to remember Japan's predilection for starting wars with sudden well-planned attacks, a tactic it has used in every war it has ever waged. Japan's proximity to the islands allows it to rapidly deliver cargo and reinforcements to landed troops, while backing them up with massive air support from attack helicopters. The Japanese military are well trained and highly motivated. They possess huge quantities of the latest weapons and equipment. They have unique type-96 multi-purpose missiles and HATM-6 systems with hammer-like chassis, which could be delivered to the islands using light transport. These would equally be effective against tanks and artillery. This, combined with Japan's air superiority and wide use of precision weapons, would allow the Japanese to smash the defensive forces on the islands much faster and easier than we might think." The paradox is that equally, both the Russian interpretation of Japanese intentions as well as Moscow's military capability to defend the Kurils may be open to questioning.

Clearly, it is preposterous to suggest that Japan would attack Russia. But then, military planning must rest on the worst-case scenario. Indeed, the proximity of the islands to Japan's coast makes them extremely difficult to defend. Russian defenses can be easily overrun, in principle, in the event of a massive sneak night-time attack using fast motorboats.

Russia has some ill-equipped 3,500 troops on the islands at present. Its nearest airfields with combat aircraft are located on Sakhalin and Kamchatka and Japan would have

dominance of the air in any conflict. The Russian thinking is to strengthen the defenses in order to buy time in the event of an attack so as to mobilize large-scale landings of reinforcements and also to develop a viable offensive capability to mount air and missile strike over Japan's entire territory.

Thus, this week's Russian move to fortify the Kurils with missiles takes the November-born rhetoric to the plane of a concrete military step. It has been carefully planned. The Yakhont missile has a range of 200-300 kilometers at supersonic speed and can reach parts of Japan's Hokkaido. The Tor-M2 system can fire four missiles simultaneously at four different targets. Russia also plans to deploy Mi28 helicopters, which carry anti-tank missiles. Senior Russian commanders have hinted that the deployments may even include the formidable S-400 Triumf air defense systems.

Tokyo has reacted that the Russian deployment is "very regrettable" and that it is keeping a "close watch on Russia's military trends in the Far East". Kyodo predicted that the Russian move would ''doubtlessly provoke a backlash from Japan." Quite obviously, the steady slide in Russo-Japanese ties since Tokyo published in 2008 new guidelines for school textbooks asserting Japanese sovereignty over the Kuril islands, has sharply escalated.

The hardening of the Russian position was apparent in the Foreign Ministry statement in Moscow on February 6 that Japan should adopt a "sober and balanced attitude to the realities. We hope the objective territorial realities, worked out following World War II and enshrined in the UN Charter will prevail in Tokyo. Stopping the artificial emphasis on the 'island' issue would help to create a calm and constructive atmosphere for Japanese-Russian dialogue."

True, the right-wing Japanese nationalists have played a big part in spurning Russian diplomatic overtures. Also, as Dmitry Trenin of the Moscow Carnegie put it, "Japan's politically weak short-duration cabinets find it difficult or impossible to show strategic vision and tactical flexibility to move toward agreement with Russia." To add to it, on Moscow's part, too, "2011-2012 is the time of parliamentary and presidential elections in Russia, time to demonstrate toughness and strength, rather than flexibility and willingness to reach a compromise."

Strategic cruxHowever, they all ultimately happen to be foreplay. Most certainly, Russians have a "big picture", too, in their calculus. After all, they possess a historical consciousness of immense poignancy with regard to Japan and China. Recently, in a smart move, Moscow offered cooperation with China in the development of the Kurils. Will China bite? Or more appropriately, has it quietly bitten without publicity? Unlikely, though.

The implications are obvious. Trenin pointed out, "Whoever agrees to invest there [Kurils] must accept a degree of long-term risk of losing the title [of Japan's friendship] and also short-term sanctions from Tokyo. China might decide to step in, using the investment as a geopolitical chip, as a means to drive a wedge even deeper between

Russia and Japan and trying Moscow closer to Beijing. It will be interesting to see whether China does so, maybe using Hong Kong as a proxy."

Chinese commentaries view the Russian moves on the Kurils in recent months as the "crux of Russia's strategy for its far East and beyond that to the Asia-Pacific region". The editor of the People's Daily, writing for Global Ties, virtually signaled that Beijing would be extremely wary of getting drawn into the bear trap. Xinhua summed up the geopolitics of the Russian moves: The [Kuril] islands are located in a key geographic position where they secure the entrance into the Pacific Ocean for Russia's pacific Fleet. If the four islands were regained by Japan and used as a natural barrier by Japan and the United States, Russia's Pacific Fleet would be cut off from the Pacific and may face direct military threats from the two… [it] could also mean the neighboring Kamchatka Peninsula and Sakhalin region, both strategic to Russia's ability to respond t attacks, would also be exposed." Most significantly, Xinhua added that the Russian moves are part of a concerted "east-oriented strategy against the backdrop of the ongoing global readjustment in a new era." It said that Moscow is developing the Southern Kurils as "a platform to display the muscle of Russia in East Asia. The islands could help Russia to increase its voice in the region and maintain its position as a big power there."

Xinhua didn't explain why Russia feels the urge to display muscle in the Asia-Pacific or to ''increase its voice''. But Alexei Pilko, a Russian commentator who is rather well-placed to reflect official thinking, did. In the best spirit of glasnost, he wrote recently in Russia Profile magazine on the 'great game' in Asia-Pacific. He outlined that Moscow seems to perceive the great danger of a US-China entente cordiale developing in the Asia-Pacific on the basis of a "swap" of "Taiwan for North Korea".

Historical backlogA lot of history needs to be digested if this thesis is to be fully grasped, and it all goes back to the heyday of the Chinese revolution of 1949 and the indomitable political skills Joseph Stalin as a manipulator par excellence, China's blundering into the Korean war (incited by Stalin) and the premature death of the great prospects of a US-China alliance in 1950 (which both Washington and Beijing keenly sought and Stalin dreaded). Now, Pilko writes: The current strategic status quo in the Pacific Region is not at all suited to China's national interests, deriving its of free access to the ocean and placing its military activity essentially under US control ... [Taiwan's] unification with mainland China will give Beijing free and uncontrollable access to the Pacific Ocean ... In this respect, a vital ingredient in resolving the Taiwan issue is the current situation on the Korean Peninsula, as it would give China a chance to enter into a major geopolitical deal with the US ... Therefore, North Korea is an ideal bargaining chip in China's talks with the US.

Beijing could even approve the introduction of harsh sanctions against North Korea or maintain neutrality during any punitive military operations against it, provided the US agrees to China's unification with Taiwan which could, for example, follow the Hong Kong scenario ... this kind of "exchange" could well be the only possible option for the

US. It cannot allow an all-out war erupt in Korea.

True, if Pyongyang continues with its nuclear program at the current tempo, it is a matter of time before Japan and South Korea follow suit, which, of course, changes the Asia-Pacific security scenario dramatically and heavily damages the US' regional influence and its capacity to play a leadership role.

Nor is Beijing mighty thrilled with North Korea's archaic and unviable regime and its strange ways. In fact, China disfavors North Korea's efforts to build nuclear bombs. Therefore, Russian thinking is that a 'geopolitical exchange' of Taiwan for North Korea would be seen in both Washington and Beijing at some point as a mutually beneficial trade-off that allows the US to resolve the North Korean problem while at the same time creating solid and lasting foundations for the development of constructive US-Chinese relations.

In short, such a scenario harks back to the pre-Korean War geopolitics when both China and US desired a new relationship between the two great powers.

There is much angst in the Russian mind about a possible US-China concord becoming the dominant theme of the East Asian geopolitical stage. Russian commentators are putting a brave face on it and are insisting that Moscow would welcome such a concord as in its own interests.

But one can never quite tell the Russian thought processes in this direction. All that can be said with some degree of certainty is that if the strategic dialogue in the Asia-Pacific takes a new turn and the rules of the game do change, then realpolitik demands that Russia places itself in advance to take advantage of the new realities rather than be caught napping, or at the very least, to cut its losses.

The Russian angst cannot be dismissed lightly. Last week Moscow unveiled a $650 billion rearmament plan through 2020, which includes adding 20 submarines including eight nuclear submarines and more than 600 warplanes, 100 new ships and 1,000 additional helicopters.

"The main task is the modernization of our armed forces ... We are not interested in purchasing any foreign weapons or military equipment," Russian Deputy Defense Minister Vladimir Popovkin said. The new strategy specifically aims at regaining naval capabilities of the Soviet era and creating next-generation anti-missile defenses to replace the S-300 system.

In the post-Cold War years, the locus of Russian strategic capability continued to stay put in the West. The North Atlantic Treaty Organization's expansion and the US's containment policies left Russia with hardly any alternative. Meanwhile, Russian capabilities in the Asia-Pacific region progressively got degraded - and that too, when other countries like China and Japan and South Korea began surging militarily, Russia began lagging behind.

Thanks to Medvedev's "reset" policies with US President Barack Obama and particularly the proximity over the missile defense issue, Moscow has gamed the respite and a possible window of opportunity to turn attention to its vulnerable east. Indeed, China is taking note, too. A recent commentary in the Global Times summed up: "Russia's actions, from Medvedev's visit to the [Kuril] islands to the current plans for rearmament show that the nation's strategic purpose is to rebuild its strategic position in the Asia-Pacific."

It then added somewhat ominously: "If Russia enhances its naval and air abilities in the Southern Kuril islands, and expands its Pacific fleet to strengthen the ability to launch marine attacks, the military forces in the islands will be capable of working in concert with military bass in Vladivostock and the Kamchatka Peninsula. This will certainly affect the security of neighboring countries, and even intensify the potential arms race in Northeast Asia."

Welcome to the new great game in the faraway lands where the sun rises.

Ambassador M K Bhadrakumar was a career diplomat in the Indian Foreign Service. His assignments included the Soviet Union, South Korea, Sri Lanka, Germany, Afghanistan, Pakistan, Uzbekistan, Kuwait and Turkey.

(Copyright 2011 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

Russians visit Washington's Hanford nuclear sitehttp://www.kyivpost.com/news/russia/detail/98936/

Today at 06:31 | Associated Press RICHLAND, Washington (AP) — A group of Russians is getting a firsthand look at U.S. efforts to clean up nuclear waste at the highly contaminated Hanford nuclear reservation in Washington state.

The visitors represent the regulatory body of the Russian Nuclear Complex, which faces similar challenges cleaning up nuclear and chemical waste.

The U.S. Department of Energy says the visitors toured several areas Thursday, including a mock waste tank. Some 53 million gallons (200 million liters) of highly radioactive waste are stored in 177 aging, underground tanks at Hanford, and emptying the tanks and disposing of the waste are top priorities at the site.

The visit marked the second time in four years that a group of Russians has visited Hanford.

Read more: http://www.kyivpost.com/news/russia/detail/98936/#ixzz1FcIW1nkA

China Turns to Turkmenistan for Gas Amid Gazprom Pipeline Talkshttp://www.businessweek.com/news/2011-03-03/china-turns-to-turkmenistan-for-gas-amid-gazprom-pipeline-talks.html

March 03, 2011, 11:15 PM EST

By Dinakar Sethuraman and Stephen Bierman

March 4 (Bloomberg) -- China is turning to Turkmenistan for more gas as Russia’s OAO Gazprom, the world’s biggest producer, has yet to agree on prices and pipeline routes with Asia’s fastest-growing market.

The Central Asian nation may sell China an additional 20 billion cubic meters a year of gas, or a 50 percent increase from the 40 billion it plans to supply by 2015, Turkmenistan’s First Deputy Prime Minister Baymurat Hojamuhamedov said in Singapore yesterday. That would boost China’s imports from the Caspian country to two-thirds of its 2009 demand.

“Turkmenistan has enormous oil and gas reserves,” Oil Minister Bayramgeldy Nedirov said at an oil and gas conference in Singapore today. “There are 160 discovered fields and 50 under development.”

The country, holder of the world’s fourth-largest gas reserves, opened a link to China in 2009 as shipments to Russia collapsed following an explosion on a Soviet-era pipeline in April of that year. Russia, holder of the world’s biggest deposits, is struggling to complete a deal with China.

In 2009, Gazprom said plans to deliver gas to China would be delayed to 2014 or 2015 from this year as the sides failed to reach a consensus on price and volume. The company aims to close a deal by July to supply 30 billion cubic meters of natural gas a year for 30 years starting in 2015, via the Altai region to China’s northwestern border. Supplies of as much as 40 billion from an eastern route near Russia’s Pacific coast may come at a later date, according to Gazprom.

Chinese Demand

“If they can continue to ramp up volumes from Turkmenistan, it may put pressure on Gazprom to deliver into the east of the country if it wants a deal,” Julian Lee, senior energy analyst at the London-based Centre for Global Energy Studies, said by telephone from London yesterday. “I don’t think China particularly wants gas in the west.”

Turkmenistan will sell 17 billion cubic meters of the fuel to China this year and 20 billion next year, Hojamuhamedov said. Turkmenistan sent 2.59 million metric tons, or about 2.9 billion cubic meters, last year, according to China’s customs data.

The International Energy Agency estimates that Chinese natural-gas demand will rise to 142 million tons in 2015 and 181 million tons 2020.

Pipeline to China

Gazprom aims to reach an agreement with China by the middle of this year, a Gazprom Export official said yesterday in an e- mail, declining to be identified in line with company policy. Demand growth in the world’s most populous nation will allow for both Russia and Turkmenistan to ink supply deals, the official said. China will want Russian supplies as it seeks to balance its import sources, according to the Moscow-based company.

Russia began building a domestic pipe in the Far East to transport gas to Vladivostok, near the Chinese border, from energy-rich Sakhalin Island before 2012.

The pipe, slated to eventually have a capacity of up to 47 billion cubic meters a year, traces a similar route as proposed by Exxon Mobil Corp. for gas sales to China from the Sakhalin-1 project operated by the company. That agreement remains on hold as Exxon negotiates with Gazprom, Russia’s monopoly exporter.

Turkmenistan plans to extract as much as 30 billion cubic meters of natural gas a year from the South Yoloten area, and obtained a credit line of $4 billion from China Development Bank in 2009 for the project, according to the Turkmen government. The country aims to increase gas production fourfold to 250 billion cubic meters a year by 2030.

The nation’s gas reserves were 8.1 trillion cubic meters at the end of 2009, according to the BP Plc’s Statistical Review of World Energy. That puts the country fourth in the world, after Russia, Iran and Qatar. Turkmenistan estimates its gas reserves at 21 trillion cubic meters.

--Editors: Rob Verdonck, Alex Kwiatkowski.

To contact the reporters on this story: Dinakar Sethuraman in Singapore at dinakar@bloomberg.net; Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net

MTS warns energy firms on Turkmen deals http://www.ciol.com/Global-News/Global-News/News-Reports/MTS-warns-energy-firms-on-Turkmen-deals/147362/0/

The company said the sudden suspension of its licence late last year was 'a cautionary tale' for those doing business in the country Friday, March 04, 2011

ALMATY, TURKEY: MTS, Russia's biggest mobile phone operator, warned on Thursday of the "perils" of investing in Turkmenistan as the Central Asian state embarked on a roadshow to attract energy firms to its lucrative gas fields.

In a letter to participants in a Singapore roadshow to showcase Turkmenistan's oil and gas industry, the New York-listed company said the sudden suspension of its licence late last year was "a cautionary tale" for those doing business in the country.

MTS, part of oil-to-telecoms conglomerate Sistema, had an 85 per cent share of Turkmenistan's mobile market until December, when its mobile licence was suspended for a month for reasons that the company said "were never fully justified".

Since the expiry of this suspension, MTS says it has received no notice as to the status of its licence or the fate of its business in Turkmenistan, and says officials have implied the company's infrastructure and assets could be expropriated.

Officials at Turkmenistan's Communications Ministry and Foreign Ministry could not immediately be reached for comment.

Several senior Turkmen officials attended the two-day energy roadshow in Singapore, rubbing shoulders with Asian oil executives, as the reclusive former Soviet state seeks investment to help diversify its gas export routes.

Turkmenistan sits on the world's fourth-largest reserves of natural gas and is keen to build alternative routes to Europe, China, Iran and other Asian countries to lessen its dependence on exports to former imperial master Russia.

Relations between Moscow and Ashgabat soured after a dispute over a pipeline rupture in 2009, which has ultimately led to a sharp reduction in Turkmen gas exports to Russia.

MTS said it had invested over $188 million and grown to service more than 2.4 million customers in Turkmenistan, a nation of 5.4 million, since entering the country by acquiring U.S. firm Barash Communications Technology Inc in 2005.

"We believe it is our duty to inform the investing public and other multinational enterprises of the perils of the Turkmen market, where the lack of transparency runs

contrary to international business practices, and good corporate citizenry is rewarded with creeping risk," the company said in the letter.

MTS has brought legal action against the Communications Ministry over the licence suspension. It has said it may incur total losses of about $600 million following the suspension.

Turkmen President Kurbanguly Berdymukhamedov, who enjoys sweeping powers, said last month he wanted the local market to be privatised and that he envisaged at least three mobile telecoms operators "independent from the state" to boost competition.

After the departure of MTS, state-owned TM Cell remains the only mobile operator in Turkmenistan

©Reuters

Kudinov: Russia waiting for products from Serbiahttp://www.emg.rs/en/news/serbia/148983.html

04. March 2011. | 06:52

Source: Tanjug

The director of Russia's trade representative office in Belgrade, Yevgeny Kudinov, said that the list of products from Serbia for which customs will not be paid in exports to the Russian Federation, will soon be expanded.

The director of Russia's trade representative office in Belgrade, Yevgeny Kudinov, said that the list of products from Serbia for which customs will not be paid in exports to the Russian Federation, will soon be expanded.

"We are coming to the end of harmonization of the intergovernmental protocol, on the basis of which the number of duty free products in the free trade agreement will be increased," Kudinov told in Leskovac.

Kudinov, who visited several companies in the Jablanica and Pcinj districts, with representatives of Belarus, said that, since the start of implementation of the 2000 free trade agreement, trade between Russia and Serbia has grown tenfold, but that this agreement is still not being used in sufficient measure.

Kudinov pointed out that much work has to be done in the meantime, primarily on the harmonization of standards of Serbian products with those of the customs union of the Russian Federation, Belarus and Kazakhstan.

India-Russia bilateral trade at USD 8.52 bn

http://smetimes.tradeindia.com/smetimes/news/top-stories/2011/Mar/04/india-russia-bilateral-trade-at-usd-8.52-bn53300.html

SME Times News Bureau | 04 Mar, 2011The bilateral trade between India and Russia for 2010 stood at USD 8.52 billion, a top Russian official Thursday said.

"The bilateral trade for 2010 is USD 8.52 billion, which is lower than projections made three years back of USD 10 billion. However, both the countries expect this trade volume will touch USD 20 billion by 2015," Russian Trade Commissioner Mikhail Rapota said in Kolkata.

He was speaking at an interactive session with Bengal National Chamber of Commerce and Industry.

The Russian export was USD 6.39 billion, which is higher by 7.7 per cent, while Indian exports to Russia grew by 40 per cent over last year to USD 2.14 billion.

Pharma exports from India to Russia had doubled in the last five years.

Delay in potato exports to Russiahttp://tribune.com.pk/story/127292/delay-in-potato-exports-to-russia/

By Kashif HussainPublished: March 4, 2011KARACHI: 

Potato exports to Russia have been badly affected by the disruption of commercial activities at Port Said in Egypt.

According to exporters, 200,000 tons of potatoes were expected to be exported to Russia during the current season; however, because of suspension of commercial activities at Port Said, many shipments are being delayed for weeks, which may cause cancellation of more orders. All-Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association former senior vice president Aslam Pikhali said that the delays – caused by political unrest in Egypt – have prompted Russian importers to review their trade options.

Pakistan has exported 75,000 tons of potatoes during the current season but exporters fear that the 200,000-ton target may need to be revised to 150,000 tons. Pikhali added that export of Pakistani fruits and vegetables to Bahrain has also been affected.

Published in The Express Tribune, March 4th, 2011.

Azerbaijan, Russia discuss judicial cooperationhttp://www.news.az/articles/society/32364

Fri 04 March 2011 07:02 GMT | 8:02 Local Time

Azerbaijan`s Deputy Justice Minister, head of the penitentiary service Madat Guliyev has met the visiting Russian delegation of Justice Ministry.

Guliyev briefed delegation members on the ongoing judicial and democratic reforms, as well as progress made in penitentiary system in Azerbaijan.

Deputy Chief of international law and cooperation department of the Russian Justice Ministry Yuri Kirichenko said 'cooperation with Azerbaijan Justice Ministry is of great importance for us'.

He said Azerbaijan and Russia exchange prisoners in accordance with international conventions they acceded to.

After the meeting, the Russian delegation visited the penitentiary service`s Baku detention facility.

Russia should explain plans to modernize Gabala radar station http://www.news.az/articles/politics/32401

Fri 04 March 2011 08:51 GMT | 9:51 Local Time

"How can a base in the territory of Azerbaijan be modernized without country's permission?

Russia cannot start modernizing the Gabala radar station without Azerbaijan's permission, deputy Fazil Mustafa told a plenary session of the parliament Tuesday, News.Az reports.

He said there have been reports that Russia wants to modernize Gabala radar station, it rents from Azerbaijan.

"How can a base in the territory of Azerbaijan be modernized without country's permission? The occupied lands do not pose such a threat to Azerbaijan as the Russian military base in our territory. We believe we must demand explanations", he said.

His colleague from the ruling party Siyavush Novruzov remind that a year is left to the completion of the term of the contract between Azerbaijan and Russia on the Gabala

radar station.

"The agreement will be ratified in the parliament. It will be possible to speak about it only on the basis of a new agreement", Novruzov said.

Emil GuliyevNews.Az

Azerbaijan gains destroying helicopters from Russia http://times.am/2011/03/04/azerbaijan-gains-destroying-helicopters-from-russia/

By Times.am at 4 March, 2011, 11:20 am

Azerbaijan has signed a deal to buy 24 Mi-35M helicopters from Russia, giving Baku a huge boost in its attack helicopter fleet, eurasianet.org reports quoting Azerbaijani media.

Russian company Rostvertol signed a deal in September-October 2010 to sell 24 Mi-35M attack helicopters to Azerbaijan, Rostvertol General Director Boris Slyusar said on March 2.

The agreement came to light as the general director announced Rostvertol’s 2010 trading figures…The Mi-35M is a multi-purpose attack helicopter, designed to destroy armoured hardware, provide aerial fire support for ground troops, carry paratroopers, evacuate the wounded and transport cargo in its hold and external cradle.

Azerbaijan currently operates 15 Mi-24 attack helicopters, but in addition to more than doubling the fleet the Mi-35Ms is a significant step up from those in capability, with upgraded weapons, engine and night flying capability.

There is no word on how much Azerbaijan is paying, but in 2008 Brazil bought 12 of the same helicopters for $150 million, suggesting that this purchase is somewhere in the $300 million range.According to the publication, Armenian press is alarmed on the theme and published the appropriate articles on the case.

But as the author of the article notes, this news came from the Russian company, so the journalist doesn’t know how much more confirmation is wanted. But Armenians can take solace in the fact that they probably still have the military advantage.

/Times.am/

Karabakh mediators to attend Presidents Sochi meetinghttp://www.news.az/articles/politics/32365

Fri 04 March 2011 07:20 GMT | 8:20 Local Time

OSCE Minsk Group co-chairs to attend Sochi meeting between Russian, Azerbaijani and Armenian presidents.

OSCE Minsk Group co-chairs will attend the Sochi meeting between the Russian, Azerbaijani and Armenian presidents, APA reports quoting the OSCE’s official website.

The Sochi meeting between the presidents will be held on the initiative of Russian President Dmitriy Medvedev, who will also attend the meeting. This will be eighth trilateral meeting on the settlement of Nagorno Karabakh conflict.

APA

Philip Gordon: Moscow acts transparently in Karabakh processhttp://www.panarmenian.net/eng/world/news/63194/Philip_Gordon_Moscow_acts_transparently_in_Karabakh_process

March 4, 2011 - 10:50 AMT 06:50 GMT

PanARMENIAN.Net - U.S. Assistant Secretary of State for Bureau of European and Eurasian Affairs Philip Gordon has said that both U.S. and Russia supports the basic principles for resolution of the Nagorno Karabakh conflict proposed by the Co-chairs of the OSCE Minsk Group.

Commenting on opinion that Russia is gaining control over the process, Mr. Gordon noted that Russia is geographically close to the conflict zone, so it faces less difficulties in organizing meetings between Armenian and Azerbaijani leaders.

“Russia acts transparently in Karabakh process while the Co-chairs defend common interests to ensure security in Europe,” he said.

Phillip Gordon: U.S. trusts Moscow in Nagorno-Karabakh conflicthttp://en.trend.az/news/karabakh/1839946.html

04.03.2011 11:10 

Azerbaijan , Baku, March 4 /Trend/

U.S. Assistant Secretary for Europe and Eurasian Affairs Phillip Gordon does not agree with claims that Russia, by initiating a meeting between the presidents of Armenia and Azerbaijan, is gradually taking "control" over the process of the Nagorno-Karabakh settlement.

Gordon stated about this when answering questions of participants of the Bratislava Global Security Forum, Mediamax reported.

Gordon said Russia is geographically located closer to the conflicting parties, and it is easier to organize a meeting in Sochi, Moscow, St. Petersburg and Astrakhan, than in faraway Washington.

Russia acts transparently and informs the United States and France on the details of all meetings, he said.

Gordon said the co-chairs trust each other in this issue, because they act from the standpoint of safeguarding the common interests. "And these interests is the need for comprehensive security in Europe,” he said.

The conflict between the two South Caucasus countries began in 1988 when Armenia made territorial claims against Azerbaijan. Armenian armed forces have occupied 20 percent of Azerbaijan since 1992, including the Nagorno-Karabakh region and 7 surrounding districts.

Azerbaijan and Armenia signed a ceasefire agreement in 1994. The co-chairs of the OSCE Minsk Group - Russia, France, and the U.S. - are currently holding the peace negotiations.

Armenia has not yet implemented the U.N. Security Council's four resolutions on the liberation of the Nagorno-Karabakh and the surrounding regions.

Analysis | 04.03.11 | 11:29

Mediated Meeting: Presidents of Armenia and Azerbaijan to meet in Sochi in an attempt to “reanimate the atmosphere of trust”http://armenianow.com/commentary/analysis/28044/sargsyan_aliyev_meeting_sochi

By Aris GhazinyanArmeniaNow reporter

Upon Russian President Dmitri Medvedev’ invitation and mediation presidents of Armenia and Azerbaijan will meet again in Sochi on March 5 for another round of talks over the Karabakh issue.

Prior to the meeting Azeri Foreign Minister Elmar Mamedyarov tried to present his country's position as a constructive one, and in fact for the first time during the past few months he stated that “peace agreement can always be reached on Nagorno Karabakh” and that “diplomatic resources of settlement should not be considered exhausted”.

However, there is little optimism when it comes to this issue, considering Azeri president Ilham Aliyev’s recent statement during a TV interview on channel Mir, when he suggested that the Armenian side should accept “the thesis on impossibility of Nagorno Karabakh’s independence” and that “the settlement of the issue is possible only after that thesis is accepted”.

On March 2, Azeri Defense Minister Safar Abiyev stated that “since the occupant Armenia is not willing to back off of its expansionist policy, it might be inevitable that Azerbaijan uses its sovereign rights in order to liberate its lands; this would escalate the tensions in the regions even more”.

Baku's ultimatum-issuing position renders null the settlement perspective anytime in the nearest future, and Baku is well aware of that.

Hence, it is hard to anticipate serious breakthroughs from the upcoming Sochi meeting. The majority of analysts well-informed in the issue tend to believe so; among them former co-chair of OSCE Minsk group, Ambassador Vladimir Kazimirov stated during the Moscow-Yerevan tele-bridge that only “certain positive shifts” can be expected in 2011. That stock phrase is used, as a rule, to ground the continuation of the negotiation process.

This does not mean, however, that the Sochi meeting will necessarily turn out void and futile. There are certain points in which progress in Sochi is possible; for instance, if by Russian mediation the sides make additional commitments to show solely peaceful settlement approaches to the issue and to take necessary measures aimed at reducing the tension on the line of contact between Nagorno Karabakh and Azerbaijan.

Such an attempt was made in Maindorf (Russia). Back then Azerbaijan made similar commitments, however later through its bellicose rhetoric demonstrated lack of intentions to act upon them. The Sochi attempt might prove to be more successful in that respect, especially that Moscow is not interested in the resumption of hostilities not only because of being OSCE MG co-chair: Moscow maintains ally relations both with Armenia and Azerbaijan.

The Sochi meeting might play its part also in terms of creating an atmosphere of at least minimum trust between the negotiating parties. Lately, especially after the Astana summit, there is an impression that no trust can be talked about between the Azeri and Armenian leaders. And the Karabakh conflict is the kind of issue for the settlement of which the atmosphere of trust is absolutely essential.

That is why the Sochi meeting will most probably aim at “reanimation of trust”.

Today, one of the key tasks of the negotiation process is to lead the sides to a level they were at a decade ago. And it is from that – even if “zero” but at least “trust” – point that a new phase of talks should start. There is simply no other way.

Russia Ready to Run First Unit of Nuclear Plant by 2017 http://telegraf.by/2011/03/russia-ready-to-run-first-unit-of-nuclear-plant-by-2017.html

03.03 15:44

First Vice-President of the Russian company Atomstroyexport, the general contractor of the Belarusian nuclear plant construction, Alexander Dybov declared readiness to start the first NPP unit in 2017. "The schedule is agreed, the start-up, scheduled for 2017, remains a priority," he said, informing about the second unit's launch, scheduled for 2018. 

Dybov Alexander said that despite the delays in signing contracts and agreeing on the NPP draft's wording, preparation for its construction has been continued. "The work is underway, the Belarusian side has succeeded in this regard. Much was done during the preparatory period - virtually all," said the representative of the Russian company, BelTA informs.

First vice-president of Atomstroyexport noted that there were no problems between Belarus and Russia on NPP construction, but "all the issues, we are now discussing, will be shortly resolved."

Also, Alexander Dybov believes that Belarus needs nuclear power plants. "Crisis, post-crisis, pre-crisis - no matter what the period is, people need electricity, so does businesses," he said.

Russia's Already Drawn up Loan Repayment Schedule for Belarus's NPP

"We have drawn up a schedule - for the interest and the years - we will hand it today to the Belarusian side," said the representative of Atomstroyexport.

However, he did not say whether Russia would give Belarus a $9 billion loan, noting that "preliminary agreements were reached, but money like silence." "We are working over the amount, Russia's Finance Ministry has to decide, it has its own plans and budget," said Alexander Dybov.

NAS Wants to Create Department for NPP Examination

In turn, the National Academy of Sciences of Belarus plans to create a structural unit to conduct an independent examination of the NPP safety, said Head of Department of Nuclear and Radiation Safety Emergency Vasili Poliukhovich at a scientific conference on the prospects for nuclear energy development in Minsk.

He reported that the division would bring together specialists in nuclear physics, chemistry and radiation safety to monitor the safety systems of nuclear power plants at all

stages of its creation. In addition, the CEO of the Joint Institute for Energy and Nuclear Research "Sosni" of NAS of Belarus Viacheslav Kuvshinov said that Supercomputer Center, integrated into the European supercomputing network, worked at the institute in a test mode for the scientific establishment and operation of nuclear power plant. "We are getting ready for all the necessary calculations associated with nuclear power," he said.

Russia to build Red Army memorial in Israelhttp://english.ruvr.ru/2011/03/04/46932201.html

Mar 4, 2011 11:29 Moscow Time

Russian designers have won a tender for building a Red Army memorial in Israel’s resort of Netanya.

   The memorial will commemorate the Red Army’s victory over the Nazis and the release of Jews from concentration camps.

   The selection panel has picked a project by Salavat Shcherbakov, Mikhail Naroditsky and Vasily Perfiliev.

   The design of the memorial complex will trace the main tragic chapters in the history of the Jewish people, from their exodus from Egypt to the destruction of the Holy Temple to the Holocaust.

Russian fighter jet designer Simonov dies at 82http://en.rian.ru/russia/20110304/162857325.html

Mikhail Simonov, the former chief designer at the Sukhoi aircraft design bureau who was known as the father of the Su-27 family of fighter jets, died on Friday aged 82.

Simonov served as Sukhoi's chief designer from 1983. During his time at Sukhoi, he worked on the Su-24 strike aircraft and Su-25 ground-attack jet, as well as setting up the company's sport aircraft division, but will be best remembered for his work on the Su-27 fighter, which went on to set world records and became one of the best-selling military aircraft of the post-Soviet era.

Variants of the Su-27 family remain in production today.

Simonov was awarded the Hero of the Russian Federation (1999) and Lenin Prize (1974), and held the Order of the Red Banner. He was a doctor of technical science, and professor of the Moscow Aviation Institute.

MOSCOW, March 4 (RIA Novosti)

Who has the fastest warplane? Russia tests another supersonic T-50 fighter.http://www.csmonitor.com/World/Europe/2011/0303/Who-has-the-fastest-warplane-Russia-tests-another-supersonic-T-50-fighter

Russia today tested a second prototype of its Sukhoi T-50 fighter, a fifth-generation warplane that is said to be comparable to the US F-22 Raptor.By Fred Weir, Correspondent / March 3, 2011

Moscow

Russia successfully tested a second prototype of its revolutionary new "fifth-generation" fighter plane Thursday, a futuristic, ultrafast, and stealthy warbird that may be in the possession of the Russian Air Force by 2013.

If Russian claims about the Sukhoi T-50 multirole fighter are true, then the country that has made do with Soviet-era arms for the past two decades is poised to roar into the 21st century with a cutting-edge weapons system that is so advanced and complex that only the US has been able to field one.

"This is a unique achievement for post-Soviet Russia, and we're leaving Europe, China, and Japan far behind" in the race to build a fifth-generation fighter, says Alexander Khramchikin, an expert with the independent Institute of Political and Military Analysis. "This puts Russia at the top level in military development, and even higher."

China recently tested its own version of a stealth fighter, but Russian experts say China's J-20 lacks many characteristics of the so-called fifth-generation warplanes, which are known for sustained supersonic cruise, over-the-horizon radar visibility, integrated weapons and navigation systems managed by artificial intelligence, and high-performance frames made from space-age materials.

Only one warplane fitting this bill, the US F-22 Raptor, has so far entered service anywhere, with the F-35 Lightning II due to become operational in 2016. Both have been criticized for their staggering price tag; critics have alleged that after research and development costs are factored in, the F-22 comes to more than $300 million per plane.

Russian Prime Minister Vladimir Putin, who recently was photographed inspecting the T-50, insisted last year that Russia has spent only $1 billion developing its new plane, and would invest another billion to make it production-ready.

After Thursday's successful 44-minute T-50 flight test, the Russian Air Force announced it would start buying the planes as early as 2013, as part of a $650 billion rearmament program ordered by the Kremlin last week.

Even skeptics say Thursday's successful rollout of another T-50 prototype shows that Russia is bouncing back as a leading military power.

"There is a big controversy going on [among Russian experts] about whether the T-50 is mostly a PR creation," says Viktor Baranets, a former Defense Ministry spokesman who's now a military columnist for the Moscow daily Komsomolskaya Pravda. "But I must say, even if it is being over-sold a bit, that second plane in the air looks really good."

Huge state orders for Zvezdochka shipyardhttp://www.barentsobserver.com/huge-state-orders-for-zvezdochka-shipyard.4892173-116320.html

2011-03-03 2011 looks to become a busy year for the Zvezdochka shipyard outside Arkhangelsk as the Russian Navy has ordered maintenance of nearly 300 vessels at the plant.

The state order for 2011 is 71 percent higher than last year. Zvezdochka will conduct maintenance on 208 different vessels from the Northern Fleet, including large anti-submarine vessels, strategic submarines, the Northern Fleet’s flag vessel the nuclear powered battle cruiser “Pyotr Veliky” and Russia’s only aircraft carrier “Admiral Kuznetsov”, Central Naval Portal writes.

In order to cope with the large amount of work, Zvezdochka has reorganized its Department for de-commissioning of nuclear objects to a Department for technical supervision and service maintenance.

In addition to the Northern Fleet vessels, Zvezdochka has also received orders for maintenance of 55 vessels from the Caspian Flotilla and 24 vessels from the Novorossiysk Naval base.

All vessels belonging to the Northern Fleet will be repaired at Zvezdochka’s plants in Severodvinsk and the Murmansk region, while the other vessels will be handled at the company’s yards in Astrakhan and the Krasnodar Kray.

Zvezdochka is first of all known for its extensive experiences within the field repair works on nuclear submarines. The last years, the yard has also engaged in civilian shipbuilding. Military orders remain however the main occupation. The yard includes two subsidiaries in Murmansk Oblast, the Nerpa yard and the Yard No 35, as well as units in Astrakhan, Moscow, Kaluga Oblast and the Krasnodar Kray.

Text: Trude Pettersen

Bout’s trial has been delayed http://rt.com/news/trial-delayed-bout/

Published: 4 March, 2011, 02:22Edited: 4 March, 2011, 04:48

A New York judge has delayed the trial for Russian businessman Viktor Bout and ordered that Bout be moved to a better detention facility.

The defendant chose a new team of lawyers, who requested additional time to study the evidence.

They now have an extra month to submit motions before the hearing takes place in the beginning of October.

Bout has pled not guilty to all charges brought against him, among them conspiracy to kill US citizens.

The Russian businessman was arrested in Thailand in 2008 on similar charges at the request of American officials, but was found not guilty.

However, last year he was extradited to the US to face further court action. He is suspected of trying to sell weapons to a terrorist group.

If convicted, he could face a life sentence.

The Russian government has protested his extradition, arguing that it was unlawful and politically motivated.

Bout trial postponedhttp://english.ruvr.ru/2011/03/04/46921231.html

Mar 4, 2011 00:58 Moscow Time

A US judge on Thursday postponed the trial of alleged Russian arms dealer Viktor Bout.

Judge Shira Scheindlin granted Bout’s defense lawyers a one month extension to prepare their case, setting the new date at October 11, instead of September 12.

The judge also gave prosecutors seven days to ask the prison service to ease visiting conditions for Bout, who can only communicate with his wife and defense lawyers  from across thick glass.

Judge rules to improve Bout's incarceration conditionshttp://en.rian.ru/world/20110304/162852485.html

Judge Shira Scheindlin requested prosecutors to improve incarceration conditions of alleged Russian arms dealer Viktor Bout, a RIA Novosti correspondent reported from the courtroom.

Attorney Albert Dayan earlier said that Bout, who is being kept in solitary confinement in a high-security prison block, should be allowed to have direct contact with his lawyer, otherwise his right for defense is violated.

The prosecutors are to reply within seven days on how the ruling is being implemented. If they fail, the judge will contact the prison authorities.

Bout, 44, currently awaits trial on charges including conspiring to supply arms to a Colombian terrorist group and kill U.S. nationals. He is allowed to communicate with his family and lawyers only through a glass panel.

Bout's wife Alla earlier complained that her husband, a vegetarian, did not get proper food and his menu did not comply with the prescribed medicine that he has been taking for the last two months.

The former Soviet military officer was arrested in Thailand in March 2008 during a sting operation led by U.S. agents. He was extradited to the United States in November last year after spending more than two and half years behind bars.

Bout denies all charges filed against him. He could face anything from 25 years to life in prison if found guilty.

NEW YORK, March 4 (RIA Novosti)

Russia remembers Domodedovo blast victimshttp://english.ruvr.ru/2011/03/04/46925357.html

Mar 4, 2011 09:36 Moscow Time

Russia is remembering victims of the Domodedovo airport blast 40 days after the attack.

   The death toll from the blast has now reached 37.

   Three suspects have been detained in connection with the attack.

   More than 190 people suffered injuries as a result of the explosion, which struck at 16.32 Moscow time on January 24th.

    Among those killed were residents of Ukraine, Tajikistan, Uzbekistan, Kyrgyzstan, Austria, Britain and Germany.

Austria awards Russian Railways CEOhttp://english.ruvr.ru/2011/03/04/46921244.html

Mar 4, 2011 01:00 Moscow Time

The Austrian government has awarded the head of the Russian railways Company Vladimir Yakunin with an honorary medal for his “effort to promote political, economic and cultural ties between the two countries.”

New ISS crew gears up for liftoffhttp://english.ruvr.ru/2011/03/04/46921774.html

Mar 4, 2011 02:32 Moscow Time

The crews of the next long-term mission to the ISS will spend the next two days  at a cosmonauts’ training center outside Moscow to showcase their skills in handling emergencies on life-size simulators of the  station’s Russian segment and the Soyuz spaceship. 

On March 11 the examination panel will name the prime and backup crews.

The Soyuz is slated to lift off on March 30 with a new crew on board a capsule named after the world’s first man in space, Yuri Gagarin.

Police find 149 mln rbls stolen from Vladikavkaz bank

http://www.itar-tass.com/eng/level2.html?NewsID=16011431&PageNum=0

04.03.2011, 11.12

VLADIKAVKAZ, March 4 (Itar-Tass) -- Operatives have found 149 million roubles out of the money stolen by robbers from a Vladikavkaz office of Bank of Moscow on the last day of February. A total of 199 million roubles were stolen, the head of the North Ossetian Interior Ministry’s investigation department, Dmitry Kopanev, told reporters on Friday.

According to him, the money is seized from one of the suspects.

Late on February 28, the duty police of the Vladikavkaz interior affairs department received a written statement from the director of the Vladikavkaz branch of Bank of Moscow that in the evening two gunmen wearing masks robbed the bank.

It was established that the robbers broke a window, burst into the cashier's office, tied up two female employees of the bank and took away 199 million roubles. The alarm system, as bank employees explained, was switched off in the office, and guards were on duty only at the entrance to the building.

Several people, from whom arms and ammunition were seized, have been detained over the case.

Kopanev did not comment on the information that bank tellers and their relatives were involved in the robbery. According to him, the information on the solved robbery case will be provided to the public later this Friday.

Most of the money stolen from the office of Bank of Moscow in Vladikavkaz belonged to the National Bank of South Ossetia, a source of the bank previously told Itar-Tass. The money was deposited there.

 

11:0304 March 2011, 12:01

Kabardino-Balkaria police should use Black Hawks to fight terrorism - Torshin http://www.interfax-religion.com/?act=news&div=8252

Moscow, March 4, Interfax - The appearance in Kabardino-Balkaria of the movement Black Hawks, which opposes terrorists, is very natural and justified, Alexander Toshin, a member of the National Anti-Terrorist Committee and First Deputy Speaker of the Russian Federation Council, said.

"The people who have joined the Black Hawks are a real force, they are a young people's organization consisting mainly of young people who want to live according to civilized laws, not according to radical Islamic rules," Torshin, who is also head of the Caucasus Commission, told Interfax.

"The bearded terrorists are carrying a tough Islamic order, which has nothing in common with European values, and therefore the appearance of such an underground structure in Kabardino-Balkaria is very natural," Torshin said in an interview.

Wahhabi terrorists are charging the republic's businesses "a fee for jihad." "Locals call these people 'bearded men.' Anyone who refuses to pay the fee is threatened with arson, killings, and abductions," Torshin said.

The people making up the Black Hawk movement are a real force, Torshin said. "At the same time, they already have conflicts with the law enforcement system because they practice lynch law, which will be toughly curbed by the law enforcement agencies. We have a question: why are they so quick to punish them, but are doing nothing to stop the bearded men?" Torshin said.

Torshin believes the appearance of such a structure will escalate the conflict in the region. "It's a civil war with underground bandits. I will give my paradoxical opinion. I believe the local law enforcement agencies should not fight these good people from the Black Hawks, who are fighting Wahhabis, but use them because they could become a good information channel," Torshin said.

People in the Caucasus know one another and you cannot live unnoticed in Kabardino-Balkaria, Torshin said.

The leader of an organization called Black Hawks presenting itself as anti-Wahhabi has accused militants in the Russian North Caucasus Republic of Kabardino-Balkaria of hiding behind religious slogans by killing civilians.

"There is no faith there. The Quran says that children's and women's blood cannot be shed. The Quran has only one definition of a holy war - jihad. This implies the liberation of one's land. Who is oppressing them here? Who prevents them from living peacefully and safely?" the leader of Black Hawks said on the television channel REN-TV during a news program on Tuesday evening.

The TV channel did not introduce the man by his name, he appeared on the TV screen in a mask, and his voice was altered.

Black Hawks are tired of bombings in cities and towns killing women and children, he said.

"Let them [the militants] collect tributes from businessmen and vodka tycoons, but they can't kill our children. If they continue this way, we will be killing their children, so they feel on their own back how painful this is. We are sick and tired of the lawlessness committed by this bearded scum who doesn't let the republic live in peace," he said.

It was reported earlier that gunmen in Kabardino-Balkaria committed several attacks on

local civilians and tourists and on sites of Russian law enforcement agencies in the second half of February.

Police officer killed in Dagestan’s Makhachkala

http://www.itar-tass.com/eng/level2.html?NewsID=16011412&PageNum=0

04.03.2011, 11.10

MAKHACHKALA, March 4 (Itar-Tass) -- Deputy head of the Department of the Federal Tax Service for Dagestan Zalkipri Sheikhov was killed in shooting in Mackachkala on Friday morning.

As a source in the Interior Ministry of Dagestan told ITAR-TASS, “unidentified people fired on a Nissan Almera car with Sheikhov inside at the corner of Abubakarov and Engels Streets not far from the Spiritual Department of Muslims of Dagestan at about 09.30 Moscow time.”

An investigation team is working at the site of the incident.

Terrorists to be exposed by the beamhttp://rt.com/politics/press/rossijskaya-gazeta/terrorists-exposed-beam/en/

Published: 4 March, 2011, 04:58Edited: 4 March, 2011, 05:00

Aleksey Kholopov, L.L.M.

New equipment is able to identify a person with explosives even in a crowd.

Some of the latest inventions are disproving the view that a terrorist who plans an attack in a crowded place is invincible – especially if he is “a live bomb,” a suicide bomber sacrificing his life for a wild idea.

In the United States, Great Britain and Russia as well, innovational technologies have been created that allow remotely, and even covertly, conducting an all-over non-contact examination of a person, regardless of the density of the passenger traffic flow. They simply need to be incorporated into the security systems.

The US has tested stationary and mobile terahertz cameras, which are able to remotely detect items hidden under a person’s clothing, even in a crowd. This includes firearms, explosive devices and explosive material. Similar technology is used by astronomers in the study of various space objects.

This type of camera picks up electromagnetic radiation in the terahertz range – the so-called T-rays. This is a section of the infrared spectrum between the area visible to the human eye and high-frequency radio waves. In this range, it is possible to conduct remote surveillance in a moving crowd of people at a distance of 25 meters, and it guarantees finding everything hidden under a person’s clothing and in their footwear, including: ceramic and wooden items, plastics, guns, drugs, and explosive devices – such as, for example, a suicide bomber’s belt.

This technology is not harmful to health, because unlike X-ray screening systems, which are strictly used to screen personal belongings, terahertz radiation is non-ionizing. Another achievement of the system should be noted: the images obtained with a terahertz camera do not include the details of the anatomical features of a human body, which resolves the ethical problems associated with using this technology.

First and foremost, these cameras must be installed at the entrances to crowded places. People will be remotely examined, without having to walk through special booths.

Among the latest inventions is the backscatter X-ray scanner. It will be very useful if terrorists decide to use a car with a high-power explosive device attached – as was the case in Vladikavkaz last fall.

The principle of the method is to scatter radiation which comes in contact with organic material back toward the radiator, after which it is fixed by detectors and processed by special computer programs. As a result, all the organic and non-organic materials are displayed on the screen: explosive devices, ceramic knives, metal and other substances become clear to see. Its advantage over an ordinary X-ray scanner is that there is no need of placing the object between the source of radiation and a receiver. Here, everything is combined into a single device – loaded, for example, on a small minivan. The scanning may be done remotely, and covertly. The mobile device will cruise around the city or around a secured facility, scanning parked cars, vans or containers.

Another newly-developed device is an automated system of analysis and control over people’s behavior with the use of security cameras. Recall that, according to eyewitness reports, the suicide-bomber in Domodedovo did not immediately detonate the explosive device, but nervously paced around the hall, walking toward and away from large crowds. This behavior could have been detected in a timely manner and if not prevent the terrorist attack, then at least avoid a large number of casualties.

This task can be handled solely through automated processing with the help of special computer programs and video data supplied from security cameras. Such technologies are being developed in the United States. The special computer program makes it possible to

screen video images to search for suspicious behavior patterns of people in various circumstances. Moreover, the University of Alabama in Huntsville is developing computer models to identify the behavior patterns of terrorists.

Some domestic developments of similar computer programs also exist. For example, video-analysis programs, which track targets and abandoned personal belongings, are able to recognize the items left in a bag and issue a warning message to special security forces.

The biometric system of search and identification of criminals with the use of surveillance cameras has great potential. This system makes it possible to identity each person in a crowd by searching the database of persons who are wanted for suspected terrorist activity. For example, digital images of criminals are entered into a single information center, where the search and identification of people caught by surveillance cameras takes place in real time. Later the information system identifies them and monitors from one camera to the next.

Similar systems have already been created and put into operation in some countries. In the United States, for example, biometric systems, which identify suspects by their face, have been developed, tested and are operating in test mode. There are also domestic developments of similar biometric surveillance systems.

There are other modern counterterrorism security technologies. Many of them are foreign-made, but may very well be produced and introduced by companies and research institutes in the domestic military industrial sector.

In Russia, there are physics and technology research laboratories in some of the major universities capable of soon mastering the production of backscatter X-ray scanners.

Dagestan blackouthttp://english.ruvr.ru/2011/03/04/46921606.html

Mar 4, 2011 02:11 Moscow Time

More than 3,000 people remain without electricity in the southern Russian republic of Dagestan.

According to the local authorities  the outages are caused by gale force winds and rain snow.  Repair work is under way.

Moscow’s first high-speed tram line to be built by 2013

http://www.itar-tass.com/eng/level2.html?NewsID=16011437&PageNum=0

04.03.2011, 11.14

BRYANSK, March 4 (Itar-Tass) -- The first line of high-speed tram will be commissioned in Moscow by 2013. The city authorities will present a respective project at a regional conference of the United Russia party.

Under the project, the high-speed tram line is to be built in Moscow’s Eastern administrative district, linking the Ilyicha Square and Stalevarov Street.

According to the Moscow government, the project cost is expected to total 17 billion roubles. The line will comprise nine stops, three transfer hubs and a depot.

A test run of a high-speed tram will be held in Moscow already this year, said Nikolai Lyamov, deputy mayor of Moscow for transportation issues. There are about one thousand trams operated in Moscow, but the bulk of them are obsolete. “There are no such trams as ours in the West and in developed countries. They have high-speed trams running in dedicated tram-lanes. So the average speed is higher and passengers are more comfortable,” he said.

“This year we plan to organize a dedicated lane for such trams. We shall engage best cars to fly this route and we’ll see what will come of it,” he noted. “We have decided where this experiment will be done. Extra traffic light poles are needed there.”

RUB 55 bln to be spent to build Moscow’s new satellite town

http://www.itar-tass.com/eng/level2.html?NewsID=16011569

04.03.2011, 11.34

BRYANSK, March 4 (Itar-Tass) -- A project of a new Moscow’s satellite town, Novoye Stupino, worth 55 billion roubles has been presented at a show of top-priority projects of the Central Federal Districts timed to coincide with a regional conference of the United Russia party.

The new settlement will be located on the M4 Don federal highway, some 70 kilometers off the Moscow circular road. Its total area will be 1,200 hectares. Some 1.7 million square meters of low-rise houses will be built in the would-be town. Apart from it, the town will be a home to a number of environment-friendly industrial facilities.

According to estimates done by the Moscow region’s authorities, construction will be financed from the local budget and funds from investors. Some 15.1 billion roubles will be allocated to finance the construction of engineering infrastructure and motor roads,

and 39.2 billion roubles will go to capital construction. The town is planned to have 55,000 residents.

First houses will be built in the next two years. According to the developer, the town’s location is very much favorable from the ecological point of view. Moreover, it will not have transportation problems, since it will be located near the M4 Don federal highway running to downtown Moscow, and near a railway linking the would-be town with Moscow’s Paveletsky and Kazansky railway terminals.

In the vicinity of the would-be town, there is the Holy Trinity Belopesotsky Monastery built in the 15th century as a fortress to defend Moscow from Tatars. The monastery was razed to the ground in the 1930s and re-built in recent years.

Ex-Moscow city official says given asylum in Lithuaniahttp://en.rian.ru/russia/20110303/162851747.html

23:46 03/03/2011

A former head of the Northern Administrative District of Moscow who is accused of swindling Yelena Baturina out of 1 billion rubles said on Thursday he had been granted political asylum in Lithuania.

Yury Khardikov was dismissed as prefect of Moscow's northern district at the end of 2008. Baturina, the billionaire wife of former Moscow mayor Yury Luzhkov, accused Khardikov of selling her a plot of land in Sochi in 2007 despite knowing it was subject to a court order. The former city official says he could not have known about the court decision as it was taken after the land was sold.

"We must pay tribute to Lithuania, which has embraced European standards of respect for human rights and personal freedoms," Khardikov told RIA Novosti on Thursday. "They deliberated for a long time, but in the end still decided to grant me asylum."

A Tver court in 2009 sanctioned the arrest in absentia of Khardikov, who legally resided in Lithuania, where he has business interests. He said that despite Luzhkov's dismissal as Moscow mayor, he still could not be sure of a fair trial because of corruption in Russia's law enforcement structures.

He challenged the legality of his arrest in absentia in the European Court of Human Rights in Strasbourg last September and maintains the criminal case against him is fabricated.

He said on Thursday he would now move his entire family to Lithuania.

"In Russia, I have six children, two grandchildren, an aging mother, and in Lithuania - freedom, support, friends and guaranteed rights. Tomorrow we will go to the migration service and file the necessary documents for the members of my family to get residence permits," Khardikov said.

After he was fired by Russian President Dmitry Medvedev, Luzhkov asked the Latvian authorities for a residence permit but his request is thought to have been denied. British media reports in early February said he had also sought permission to live in Britain.

VILNIUS, March 3 (RIA Novosti)

Kremlin Cribs

Russians Want to Know More About the Private Lives of Their Leaders and Where Their Money Comes From

http://russiaprofile.org/politics/33117.html

By Andrew Roth Russia Profile 03/03/2011

“Putin’s palace,” as it has affectionately become known in the Russian press, has been sold for $350 million dollars to a pair of Russian businessmen, the Kommersant daily reported today. The latest news in the case of the lavish country house indicates a move by the previous owners that will shield themselves, as well as Prime Minister Vladimir Putin, from the press and controversy surrounding the complex.

Led by Ruleaks, Russia’s version of WikiLeaks, which made a name for itself by posting the first photos of the dacha, activists and bloggers have continued to uncover what they say are other secret building projects for Russian regional and religious leaders. Yet beyond making accusations and continuing to fuel public interest in the scandal, it remains unclear how the movement can take the next step and uncover more about the ownership of the projects or where the funds for the projects are coming from.

After photos of Putin’s dacha first appeared in January, other “palaces” have been photographed and uploaded to the Internet on a number of sites, including LiveJournal and Ruleaks. Several photographs of Chechen Leader Ramzan Kadyrov’s gauche mansion were uploaded to a LiveJournal blog in late February, and more recently an alleged second “Putin’s palace” has also been found in Lunnaya Polyana in the Republic of Adygeya.

The scandal is a product of Russians’ interest in the closed lives of their leaders and a sense that corrupt practices are widespread in the government, said Pavel Rassudov, a member of the Pirate Party, which founded the Ruleaks project. This is not the first time that a scandal like this has gripped Russia’s blogosphere. Several years ago, speculation increased about government officials sporting watches whose worth was purported to be as high as $1 million. “They just did not make the money to possibly be wearing these

watches. If they’re accepting gifts, that’s already an indicator of corruption, and if not, then where was this money coming from? This was about what you could see on their arms, and now what you see is the next stage: where do they live, and where is the money for these houses coming from?” asked Rassudov.

The issue has also been seized upon as a common cause by organizations that don’t solely focus on corruption. A group called the North Caucasus Environment Watch has posted pictures and staged demonstrations against the dachas because it claims that leaders have misused public land that should be protected from construction. 

In mid-February, the group posted photos of a dacha complex located in the Krasnodar Region, which they claim is being prepared for the head of the Russian Orthodox Church, Patriarch Kirill. Today, several members of the group were given short prison sentences in connection with a picnic protest they staged at a dacha, which they claim has been constructed for Alexander Tkachev, the head of the Krasnodar Region. The protestors uncovered instances of corruption and environmental violations, said Andrei Rudomakha, the group’s coordinator. “During the construction many of the trees were cut down, some of which are in danger of extinction.” 

Yet while officials have denied ownership of the properties, it has been difficult for any further progress to be made by local activists. Public denials about the first palace have been issued by the Kremlin, as well as by the head of the region where the complex is located, Tkachev. Sergei Kolesnikov, the businessman who opened the issue by writing an open letter about the palace to Dmitry Medvedev, expressed his disbelief about a proposition that the palace would be converted for use as a sanatorium. “A sanatorium with three helicopter pads, with an absolutely separate internal energy infrastructure and everything else simply doesn’t exist,” he told Kommersant. “I think that all of this was done with one goal – to get Nikolai Shamalov out of this situation, so that no one has the opportunity to ask him the single question – where did the money come from?”

Killing the Messengerhttp://www.abc.net.au/foreign/content/2011/s3155281.htm

Broadcast: 08/03/2011

Reporter: Eric Campbell

Is there anyone, anywhere in the world more powerful than Russia’s Vladimir Putin? His hold on the nation is unyielding and undeniable and increasingly it appears beyond question. Putin’s political omnipotence and ruthless, autocratic style have effectively tamed much of Russia’s news media into compliance, little more than a fawning fan club. Political debate has been muted, political dissent frowned upon, controlled and corralled onto the fringe.

And as Putin’s authority tightens further, all but assured of a return to the Presidency again next year, many people whose job is to question political authority and decision making at every level, are being bashed into a pulp, or brutally murdered.

“That this is possible in Russia, that you can be beaten unconscious or murdered. The fault lies not with specific people or specific bureaucrats. It’s the whole atmosphere which has been in creation for the past decade. This sort of thing became possible. A taboo had been broken.” OLEG KASHIN Bashed Journalist

In a revealing and often disturbing Foreign Correspondent, reporter Eric Campbell investigates the spate of killings and attacks against the backdrop of political authoritarianism and a developing fear about the future of hard won freedoms and genuine democracy. Campbell, a former Moscow correspondent, discovers an increasing nervousness about candid political expression even among Russia’s toughest and richest. Billionaire Alexander Lebedev runs a newspaper that’s seen a number of staff killed but he’s determined to persevere, albeit cautiously.

“I’m defending a very small area of my own private life in the country which used to live without free media for many, many decades. I do remember that, I don’t want to go back there. I want to have the freedom of travel the freedom of consciousness, the freedom of faith. The freedom of media, the freedom of election.” ALEXANDER LEBEDEV Russian Billionaire

Surprisingly, given the death toll, there is an emerging generation at journalism schools willing to fight on as investigative reporters while other young would-be journalists pursue a softer road into light entertainment. Campbell explores the celebrated calendar spat that developed between young students for Putin and others for freedom of speech. While one side revealed skin, the other would much rather reveal the truth.

Radical art group Voina 'attacked by police' in St. Petersburghttp://en.rian.ru/russia/20110304/162856631.html

10:54 04/03/2011

Three members of the controversial Russian art group Voina (War) have been attacked in St. Petersburg by assailants claiming to be police officers, their lawyer says.

Leonid Nikolayev, Oleg Vorotnikov and his wife, Natalia Sokol, were set upon by seven men on Thursday as they walked home after a news conference.

"Around seven men in civilian clothes were trailing them. When [Voina members] made to take a photo of them, they laid into them shouting 'We are from the police.' They were waving their IDs around and kicking the guys," Dinze said.

All three were hurt in the attack, although they were not hospitalized.

The news conference was Vorotnikov and Nikolayev's first public appearance since they were freed on bail after three months in jail on charges connected with the overturning of police cars in St. Petersburg, a stunt which went by the name of "Palace Coup."

The two face up to seven years in jail if convicted. Bail was reportedly posted by British artists Banksy, who earlier donated almost $130,000 from a print sale to the group.

Voina have earned notoriety in Russia and beyond for radical art performances ranging from an orgy in a Moscow museum to mark the 2008 inauguration of President Dmitry Medvedev to painting a 65-meter phallus on a drawbridge opposite the St. Petersburg headquarters of the FSB, successors to the KGB.

Speaking at the news conference, Voina head Nikolayev - also known as Lyonya F**king Crazy - said he feared police could commit him to a psychiatric hospital, a tactic widely used in the Soviet era to suppress dissidents.

"They ordered us to undergo a psychiatric examination," Nikolayev said. This indicates that they probably want to lock us up in a madhouse."

He added their time in jail was "interesting and edifying," and that they were planning to direct their actions against officials and politicians drawing on their newly garnered knowledge of human rights abuses behind locked doors.

 

MOSCOW, March 4 (RIA Novosti)

Russian press review (FOCUS News Agency) http://www.focus-fen.net/index.php?id=n243683

04 March 2011 | 08:41 | FOCUS News AgencyHome / WorldLithuania threatens to terminate the privatization agreement of Lietuvos Dujos with Gazprom, if the Russian concern does not reduce the natural gas prices, said Lithuanian Energy Minister Arvydas Sekmokas, cited by RBC Daily.However, Lithuania does not have an alternative to the Russian gas. That’s why even the withdrawal of the Russian concern from Lietuvos Dujos will hardly help Lithuania lower the natural gas price, say experts. Lithuania demands that Gazprom introduce fair natural gas prices. Otherwise, Vilnius threatens to initiate an international court of arbitration.Sekmokas noted that Gazprom prices violate the agreement reached during the privatization of the Lithuania’s main gas company, Lietuvos Dujos. The state authorities

insist the Russian company should comment on the issue. Gazprom holds 37.1% of the Lithuanian company.

Speaking at a conference in Saint Petersburg on the occasion of the 150th anniversary of abolition of the serfdom in Russia, President Dmitry Medvedev made a comparison on Thursday between Alexander II’s reforms and his ongoing modernization, Kommersant reports.Describing the emperor as “a greater reformer,” the president said today’s reforms in Russia and the ones implemented in the 19 century lead the Russian society to freedom after all.

The situation off the coasts of Libya reminds a lot of the events before the invasion of the U.S. troops in Iraq, Rossiyskaya Gazeta writes.Aircraft carriers, destroyers and cruisers with thousands of mariners aboard have been recently sailing to the Mediterranean Sea. However, nobody can now answer the question what they will do off the Libyan coast. Undoubtedly even U.S. President Barack Obama does not know what orders he should make.

Russian Press at a Glance, Friday, March 4, 2011http://en.rian.ru/russia/20110304/162855574.html

08:43 04/03/2011

POLITICS

Russian President Dmitry Medvedev has made a speech on freedom during a modernization conference to mark the 150th anniversary since the abolition of serfdom in Russia. Experts see it as the ‘technical’ beginning of his election campaign

(Vedomosti, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta, Izvestia)

 The governor of Tula was questioned by the Federal Security Service over an alleged link to a graft case, which may be the latest step in President Dmitry Medvedev's pre-election crackdown on local leaders.

(The Moscow Times)

 METALS & MINING

Coal mining companies might have to set aside as much as a third of their combined profit from last year to increase safety spending, Energy Minister Sergei Shmatko said. The plan comes the deaths of 10 coal miners in shafts this year.

(Izvestia, Vedomosti, Kommersant, Nezavisimaya Gazeta, The Moscow Times)

 Severstal posted a net loss of $352 million, compared with a loss of $162 million a year earlier, after deciding to sell U.S. plants and revaluing its unprofitable Italian unit

(The Moscow Times)

 

OIL & GAS

Total, Europe's third-biggest oil company, agreed to buy 12 percent of Novatek and join the Yamal LNG project to snap up reserves as international energy producers rush to explore Russia's Arctic resources.

(The Moscow Times)

 The Samsun-Ceyhan oil pipeline seems to lose its attractiveness for Russia as Moscow and Turkey disagree on gas prices

(Vedomosti)

 

REAL ESTATE

Little-known billionaire Alexander Ponomarenko claims he bought the mysterious Italianate mansion dubbed by the media "Putin's Palace." The unfinished mansion has been at the center of tabloid controversy since last December, when businessman Sergei Kolesnikov claimed that state funds were being diverted to build a personal palace for the prime minister.

(The Moscow Times, Vedomosti)

 TELECOMS & IT

The four biggest telecommunications operators and Scartel, which operates under the Yota brand, signed an agreement to work together to build the next generation of mobile networks, at a meeting hosted by Prime Minister Vladimir Putin.

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

 

Expansion of Moscow's telecommunications network could move underwater as President Dmitry Medvedev's modernization commission has recommended that the Skolkovo Foundation consider financing a technology that would place fiber optic cable on the bed of the Moscow River

(The Moscow Times)

 STOCK MARKETS

The RTS index grew past the key 2,000 points, the level of July 2008. Analysts expected it only in the second half of the year

(Vedomosti, Kommersant, Izvestia)

DEFENCE

Sergei Chemezov, who heads the Russian Technologies state corporation said Russia lost $4 billion when arms sanctions were imposed on Libya. The wave of uprisings which swept through Africa and Middle East may cause the global arms market to collapse, experts warn

(Vedomosti)

 SOCIETY

Moscow City Court sentenced four ultranationalists to lengthy prison terms and given heavy fines for a string of ethnic hate crimes

(The Moscow Times)

 A total of 55 Russian celebrities signed a petition which condemns the public discussion on Mikhail Khodorkovsky’s second sentence as “a campaign to defame Russian justice system”

(Vedomosti)

Siberia March 3, 2011, 5:00PM EST

The Russian Vegas … in Siberiahttp://www.businessweek.com/magazine/content/11_11/b4219073510600.htm

Russia is betting it can turn nine square miles of remote Siberia into Las Vegas East By Peter Savodnik

In the not-too-distant future, scores of beautiful people will jet off to the snow-capped Altai Republic for a night at the smoke-filled craps table, dinner at a celebrity-chef brasserie, and a stripper-studded bachelor party. There will be neon-lit casinos and palatial hotels, men in tuxedos and blondes in miniskirts. When guests arrive at penthouse suites with marble bathtubs, there may be a chocolate on their pillow with the following message in Cyrillic-style script: Siberia—the home of sexy.

There's one thing holding up this fantasy: electricity. That, and roads, pipelines, and communications networks. All this is coming along, though. A four-man crew (Boris, Kolya, Sasha No. 1, and Sasha No. 2) is currently installing an electric grid intended to prop up this den of iniquity. Soon, Kolya assures, construction should begin on the first of several five-star resorts. "It's crazy," he says, "but they say it's going to happen." Kolya points to a sloping hill covered in snow. "That's where the first casino is going to go," he says. He points to another: "That's where the second is going." He pauses to smoke a cigarette. "They say this will be the Las Vegas of Siberia," he says. "Better to go to the Las Vegas of Las Vegas."

Vegas East—officially dubbed Siberian Coin—is the brainchild of the Russian government. In 2008, at President Vladimir Putin's behest, Russia banned all gambling except in four far-flung regions. Casinos are open in three: Kaliningrad, between Lithuania and Poland; Azov City, near the Black Sea; and Primorsky Territory, in the Far East. All have underperformed because of a lack of infrastructure. Now, Altai, the most remote region, near the China/Kazakhstan border, is emerging—and the government hopes it will recreate jobs and generate ancillary business. Michael Boettcher, president of Storm International, which owned and managed 25 casinos and slot halls throughout Moscow and Nizhny Novgorod before they were forced to close, estimates that the antigambling legislation cost half a million people their jobs.

Boettcher believes it will cost $50 billion to develop the Altai Republic into a gaming mecca. Russian officials think they can do it for much less—about $1 billion, which they hope will pay for 15 casinos and 30 hotels that can accommodate up to 3,000 visitors. Regardless, investment is trickling in—slowly. News agency RIA Novosti has reported that Russian development company Alti is spending $14.4 million on two 100-room hotels. In August the Hit Company, which owns casinos in Slovenia, announced it would "cooperate." And Mikhail Shchetinin, the Altai Territory's minister of economic development, told Moscow-based news site Business New Europe that Hong Kong casino tycoon Albert Yeung is looking to invest. (Neither Yeung nor Shchetinin would comment for this article.) With the first hotel scheduled to open as early as 2012, excitement is escalating. Says Anatoly Golovachyov, the manager of the nearby Kaimskoye tourism center. "Soon, the mafia and money and prostitutes will show up!"

The problem is how they'll get there. Siberian Coin is a four-hour drive from Barnaul, a city where winters last five months and the best restaurant in town, Velvet, is known for its beef medallions. Barnaul's hotels teem with men in leather jackets alongside girls who smoke Vogue cigarettes and wait for their phones to ring. Its only casino, Lemon Mega Chance, is illegal. Popular professions include rare-bird smuggler, cab driver, and hooker.

The drive from Barnaul to Siberia Coin passes through expanses of snowdrifts dotted with birch trees, a museum dedicated to earth-orbiting Russian cosmonaut German Titov, the backwater of Biysk, packs of wild dogs, and several Uzbek cafes. The last five miles to the Coin involve an icy, bumpy, one-lane road that winds through battered villages. Local authorities see this as a plus. "When people come here, from Moscow or wherever, it won't just be to gamble. They'll want to be in the forest, in the mountains—with the stag."

Siberian Coin fits into a Russian tradition of attempting big things that other people believe impossible. Some of these projects—such as the Trans-Siberian Railway and the Volga Hydroelectric Station—have come to fruition. Others have not. The Soviets' effort, in 1971, to reverse the flow of several rivers by detonating underground nuclear bombs, was eventually scrapped. Like its predecessors, Siberian Coin stems from an opportunistic moralizing campaign—with one contradictory twist: Creating gambling zones is an attempt to capitalize on widespread disapproval of gambling. "They thought they would develop poor areas at the same time they were moralizing," says Vadim Novikov, a senior research fellow at Moscow's Academy of National Economy. "It would make sense to choose Moscow or Sochi, but they wanted to develop poor regions that are, almost by definition, not suitable for such activities."

Rashid Taimasov, chief executive officer of Royal Time Group, the owner of Oracle Casino in Azov City, says he won't invest in the Coin until the "infrastructure problem" is solved. The poor performance of casinos in the gambling zones has also sapped state coffers of tax revenues, says Luybov Loginova, chief executive of the Moscow-based casino equipment producer Alsart Group.

This reality is forcing some to second-guess the project. "To say you're going to build Vegas in Altai—or in Spain or Hungary or France—I tell them every single time, 'You're insane,'" Boettcher says. But the government maintains a devoutly pro-Coin attitude. Elena Vladimirova, assistant to the Altai Territory's Shchetinin, says the "official position" is that Siberian Coin will be built—within two years, under budget. Shchetinin, alas, is unavailable to talk about all the good things taking place. He wants to, Vladimirova insists, but he is very busy. "This is how the economic development happens," she says.

National Economic Trends

State reforms vital for economic growth – Kudrinhttp://english.ruvr.ru/2011/03/04/46925237.html

Mar 4, 2011 09:34 Moscow Time

Russia’s economic growth hinges on state reforms, Finance Minister Alexei Kudrin says.

   In an article published by Voprosy Ekonomiki weekly Kudrin and his deputy Oxana Sergienko say that modernization of the state provides for reducing  monopolism in the Russian markets, easing state control of the economy and cutting the share of so-called “shadow businesses”.   

Business, Energy or Environmental regulations or discussions

For the Record http://www.themoscowtimes.com/business/article/for-the-record/432056.html

04 March 2011

The RTS stocks index rose above the psychologically important 2,000 point mark on Thursday for the first time since summer 2008. (Reuters)

The country stands to lose $4 billion in arms deals because of unrest in Libya, Interfax cited Sergei Chemezov, head of Rosoboronexport, the state holding company that controls arms exports, as saying Thursday. (Reuters)

Viktor Maslakov, Skolkovo Foundation city manager, and Jean-Marie Duthilleul, president of AREP, which won the competition for the planning of the "innovation city," signed a contract Wednesday to start design work, the Skolkovo press service said. (MT, RIA-Novosti)

Home Credit & Finance Bank will seek a general banking license to "expand activities," the consumer lender said in a statement Thursday. (Bloomberg)

The Finance Ministry revised its estimate of the 2010 budget deficit to 4.1 percent of gross domestic product, from 3.9 percent, Finance Minister Alexei Kudrin said Thursday. (Bloomberg)

Billionaire Usmanov TV Unit Hires Banks for IPO, RBC Daily Says

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

Russian billionaire Alisher Usmanov UTV television company hired Credit Suisse Group AG, Morgan Stanley and Renaissance Capital to organize its initial public offering, RBC Daily reported, citing unidentified people familiar with the matter.

Last Updated: March 4, 2011 01:44 EST

Russian Shoe Retailer CentrObuv May Hold IPO, Vedomosti Says

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

CentrObuv, Russia’s largest shoe retailer, may hold an initial public offering in Hong Kong or London by the end of the year, Vedomosti reported, citing an unidentified banker familiar with the deal.

Last Updated: March 4, 2011 01:44 EST

Yandex Search Engine May Be Valued at $8 Billion, RBC Daily Says

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

Yandex, operator of Russia’s most- used search engine, may be valued at about $8 billion for its initial public offering in the U.S. this summer, RBC Daily reported, citing unidentified bankers.

Last Updated: March 4, 2011 01:44 EST

Ex-Russian Billionaire Polonsky Quits Business After Bankruptcy

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

Sergei Polonsky, ranked Russia’s 40th richest man with a fortune of $4.35 billion by Forbes magazine in 2008, said he’s quitting business after his property developer went bankrupt.

Last Updated: March 4, 2011 01:44 EST

March 04, 2011 10:11

Norilsk Nickel has no plans to make new offer to RusAl – Klishashttp://www.interfax.com/newsinf.asp?id=226525

MOSCOW. March 4 (Interfax) - OJSC MMC Norilsk Nickel (RTS: GMKN) has no plans to make a new share buyback offer to UC RusAl, the company's president, Andrei Klishas, told Interfax.

"MMC's management has no plans to make new offers. We will continue working in the interests of all of the company's shareholders and workers. We will continue to implement a program for raising capitalization and social programs. We are calling on RusAl to take part in this constructive effort," Klishas said.

It was earlier reported that the Norilsk Nickel planned to earmark $4.5 billion for a program to raise capitalization, which was approved at the end of 2010. The program should consist of two stages: firstly, the buyback of shares and ADRs and, secondly, the purchase of stock from the market through individual agreements. MMC Norilsk Nickel has already spent $3.5 billion on buybacks. Transactions with the company's shareholders should be finished by March 9. Therefore, the company should purchase another $1 billion in shares from the market over the course of a year.

RusAl's board of directors, on Thursday, March 3, turned down an offer from MMC Norilsk Nickel to buy back 20% of its shares for $12.8 billion. At the same time, the board undertook a resolution that stipulated that the aluminum company's management should sit down with representatives of the second largest shareholder in Norilsk Nickel, Vladimir Potanin's Interros, after the board's reelection at an extraordinary shareholder meeting slated for March 11.

Rusal Rejects Norilsk Offer to Buy $12.8 Billion of Shares (2) http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aZN_eibL2K4s

By Elisabeth Behrmann and Yuliya Fedorinova

March 4 (Bloomberg) -- United Co. Rusal rejected OAO GMK Norilsk Nickel’s offer to buy a $12.8 billion stake it holds in the Russian nickel mining company, saying it wouldn’t be in the best interests of its shareholders.

The board “approved the committee’s recommendation to reject the proposal to sell the company’s 20 percent stake,” Rusal said in a statement.

Billionaire Oleg Deripaska, who owns 47 percent of Rusal, has rejected three offers since October to sell out of Norilsk, the world’s largest nickel producer, even as Rusal investors Mikhail Prokhorov and Viktor Vekselberg push for a sale.

Rusal’s board instead yesterday approved a special resolution committing it to start talks with fellow Norilsk investor Interros Holding Co. after March 11, two people with knowledge of the matter said yesterday. The resolution on talks marks progress in the dispute over control of Norilsk, which dates back to 2008.

Rusal climbed 3.7 percent in Hong Kong trading to HK$12.78 at 10:30 a.m. local time, compared with the 1.2 percent gain in the benchmark Hang Seng index.

Deripaska earlier rejected a $9 billion buy-out offer from Interros’s billionaire Chairman Vladimir Potanin in October and a $12 billion bid from Norilsk in December for Rusal’s entire 25 percent holding. Norilsk’s latest bid, made Feb. 11, represented a 43 percent premium to the company’s share price at the time.

Prokhorov, a former head of Norilsk and business partner of Potanin, called the bid a “beneficial proposal” for Rusal, in which he holds 17 percent. Vekselberg, who is also Rusal’s chairman, said Feb. 22 that Norilsk’s valuation for the offer “seems fair” and should be “discussed seriously.”

To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net To contact the reporters on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net;

Last Updated: March 3, 2011 21:49 EST

Rusal Gains Most in Three Weeks After Rejecting Norilsk Offer http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a.ZA.pDsL3Lw

By Kana Nishizawa

March 4 (Bloomberg) -- United Co. Rusal, the world’s largest aluminum producer, gained the most in three weeks in Hong Kong after rejecting OAO GMK Norilsk Nickel’s offer to buy a stake it holds in the Russian nickel mining company.

Shares of Rusal rose 3.9 percent to HK$12.80 at the midday- trading break in Hong Kong, its steepest gain since Feb. 14, after jumping as much as 5.5 percent. That compares with the 1.2 percent gain for the benchmark Hang Seng Index.

“I don’t think the market had been really expecting them to accept the offer so it probably wasn’t a real surprise, but it looks like the market is viewing the news slightly positively,” said Andrew Driscoll, the Hong Kong-based head of resources research at CLSA Asia-Pacific Markets. “Coupled with the sentiment in the market, it’s leading to a good move in the share price.”

Rusal rejected Norilsk’s offer to buy a $12.8 billion stake in the company, saying it wouldn’t be in the best interests of its shareholders.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

Last Updated: March 4, 2011 00:40 EST

Russia’s operator Yota to build US$2 billion LTE networkhttp://www.panarmenian.net/eng/it_telecom/news/63187/Russias_operator_Yota_to_build_US2_billion_LTE_network

March 4, 2011 - 10:00 AMT 06:00 GMT

PanARMENIAN.Net - Russian WiMAX to LTE network operator, Yota has announced a huge plan to build a US$2 billion LTE network covering 180 cities with a total population of more than 70 million citizens by 2014.

According to cellular-news, the network, which is being funded by bank loans will then be offered on an MVNO basis to four of the country's¬ main mobile networks - Beeline, Megafon, MTS and Rostelekom. The four networks have also been granted options to buy 20% stakes in Yota once the network is completed in 2014.

State corporation Russian Technologies, which currently owns 25.1% in Yota has supported the agreement.

In a statement, Yota CEO Dennis Sverdlov said: "This deal is an endorsement of our vision for the future of the telecoms industry. We firmly believe in the separation of network ownership and service provision and believe that this ground-breaking agreement will drive innovation and benefit Russian consumers. Even more importantly, we believe that Yota can help all operators across the world to take advantage of the massive opportunity that 4G brings."

Yota currently operates networks in Russia, Belarus and Nicaragua and expects to launch in Peru shortly.

Russian operators seal 4G network dealhttp://www.ft.com/cms/s/0/1ea22660-45c8-11e0-acd8-00144feab49a.html#axzz1Fc5f99j8

By Mary Watkins in London and Catherine Belton in Moscow

Published: March 3 2011 22:55 | Last updated: March 3 2011 22:55

Four of Russia’s largest mobile telecoms operators have agreed a deal that will see them share the roll-out of a high-speed next generation telecoms network across the country by 2014.

VimpelCom, MegaFon, Mobile TeleSystems and state-owned Rostelecom have signed a deal with Russia’s Yota that will see the Russian wireless broadband company become their 4G network provider.

Yota, which was set up just three years ago, will handle the roll-out of a high-speed network based on technology known as LTE to 180 cities and 70m people in Russia using its existing spectrum allocation. As part of the deal announced on Thursday the four Russian telecoms operators will be given an option to each take a 20 per cent stake in Yota in 2014 at market prices.

Analysts said that by collaborating on the infrastructure, Russia could steal a march on many of its European neighbours in rolling out a national high-speed 4G network.

Phillip Redman, a research vice-president at Gartner, said that telecom operators were increasingly seeing the merits of sharing infrastructure as a way of cutting costs and getting networks operational quicker. Sweden has also taken a collaborative approach to its 4G network.

However, Gartner predicts that it will be some time before the 4G market reaches maturity. The research firm expects only 3 per cent of mobile devices globally to operate on LTE by 2014.

The deal will end industry fears that the rights to build Russia’s 4G network could go to two little-known, newly-established players close to the defence ministry. Yevgeny Dumalkin, vice-president of Altimo, the co-owner of VimpelCom said, Thursday’s agreement would “bring the controversy around this question to an end”.

Over the past few years there has been considerable debate over which of two competing standards for 4G telecoms – WiMax or LTE – would become the industry standard. LTE has emerged as the platform of choice for a number of large telecoms operators including Verizon and Japan’s NTT DoCoMo.

Yota, which already operates in five cities in Russia including Moscow and St Petersburg as well as in Nicaragua, had initially planned to roll out its 4G services using WiMax in Russia but decided to switch because there were more LTE compliant devices on the market.

Yota is 74.9 per cent owned by Telconet Capital Limited Partnership, a privately owned fund. The remaining 25.1 per cent stake is owned by the government’s Russian Technologies State Corporation.

Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

VKontakte Refuses to Sell Company to Mail.Ru, Kommersant Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aEwc.EOPmU8E

By Ilya Khrennikov

March 4 (Bloomberg) -- VKontakte, Russia’s largest social network, has no plans to sell itself to London-listed internet holding Mail.Ru Group Ltd, Kommersant reported.

VKontakte aims to remain independent, the Moscow-based newspaper said, citing founder and Chief Executive Officer Pavel Durov. Mail.Ru owns 32.5 percent of VKontakte and has said it intends to boost this stake in the future.

To contact the reporters on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net.

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net.

Last Updated: March 4, 2011 02:11 EST

Telenor Urges VimpelCom Shareholders to Reject Wind Purchase http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aZMhXZEzWKhw

By Diana ben-Aaron

March 4 (Bloomberg) -- Telenor ASA, the Nordic region’s largest phone company, asked fellow VimpelCom Ltd. shareholders to reject VimpelCom’s proposed merger of its telecommunications assets with those of Egyptian billionaire Naguib Sawiris.

Telenor suggested VimpelCom pay an extra dividend of at least $1 a share instead of pursuing the merger with Sawiris’s Wind Telecom, it said in a letter dated March 2.

“The excessive focus on the Wind Telecom transaction has already harmed the interests of all VimpelCom shareholders, as VimpelCom has fallen from second to third place in the Russian market,” Fornebu, Norway-based Telenor said in the letter.

Telenor opposes a plan by mobile-phone operator VimpelCom to issue new stock representing 20 percent of shares outstanding and 31 percent of voting rights to investors in Wind Telecom. The Norwegian company argues that most of Wind’s profit comes from Italy, which is a mature market counter to VimpelCom’s strategy of investing in emerging markets.

Telenor shareholders will meet on March 17 to vote on the issue of 630 million shares needed to complete the combination with Wind Telecom in a deal valued at about $6.5 billion. On March 1, a court in London rejected Telenor’s request for an order blocking the meeting.

The Norwegian company holds more than 39 percent of VimpelCom shares, approximately the same stake as Russia’s Alfa Group, which supports the merger. Alfa Group, which participates in VimpelCom through its telecom subsidiary Altimo, has 44.7 percent of votes to Telenor’s 36 percent.

To contact the reporter on this story: Diana ben-Aaron in Helsinki at dbenaaron1@bloomberg.net.

To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net.

Last Updated: March 4, 2011 03:35 EST

04.03.2011

Russia Launches Arctic Railway Connecting Gas Fieldshttp://www.oilandgaseurasia.com/news/p/0/news/10719

The new railway line connecting the Yamal Peninsula with the rest of the Russian railway grid is declared open to regular traffic.

Regular operation of the 572 km long railroad to its terminal point – the Karskaya station – was launched in February 15. The line connects major regional installations like the Bovanenkovo gas field with national key infrastructure.

The Obskaya-Bovanenkovo railway line will enable Gazprom to easily ship huge quantities of goods and construction materials to its field development sites in Yamal.

"The opening of this railway will facilitate all-year-round, quick, cost efficient and not-weather-dependent transport of goods and personnel to the fields in Yamal under the harsh Arctic conditions, a press release from Gazprom reads.

Unline other Russian railway lines, the Obskaya-Bovanenkovo line is owned by Gazprom. As previously reported, the Russian Railways have been invited to take over the line, but has shown little interest.

In addition to railway and field development in Yamal, Gazprom is also investing in the laying of the Bovanenkovo-Ukhta gas pipeline.

Copyright 2010, Barents Observer. All rights reserved.

Russia: RTS through 2,000http://blogs.ft.com/beyond-brics/2011/03/03/russia-rts-through-2000/

March 3, 2011 1:21 pm by Stefan Wagstyl

While other bourses are being buffeted by the news from the Middle East, Russia has hit a new post-financial-crisis high, with the RTS stock index breaking through the 2,000 points mark for the first time since summer 2008. Anybody who wants to relive pre-crisis life could do worse than take a weekend trip to Moscow.

Driven by rising oil prices, Russian stocks have been going north even faster than others have been going south. By 1600 Moscow time on Thursday, the index was 1.7 per cent up at 2026.99. The RTS has now made gains of 14 percent since the start of the year,after a 22 percent gain in 2010.

Bars, fashion stores and travel companies are booming. As one western banker says: “The oil price is back up and the twinkle is back in everyone’s eye. The restaurants are full,the flights to Moscow are stuffed with bankers and lawyers and the buzz is back in the air again.”

Bank of Moscow stake is frozenhttp://www.ft.com/cms/s/0/1e0c45bc-45ed-11e0-acd8-00144feab49a.html#axzz1Fc5f99j8

By Catherine Belton in Moscow

Published: March 3 2011 23:35 | Last updated: March 4 2011 00:58

A London arbitration court has frozen a minority stake in the Bank of Moscow, in a sign that VTB’s battle for control of the municipal bank run by allies of Yury Luzhkov, the ousted Moscow mayor, is not over yet.

The London court had frozen a 3.9 per cent stake in the Bank of Moscow held by Goldman Sachs after a minority shareholder close to the bank’s management filed suit questioning its acquisition by the asset management arm of VTB, the Russian state bank, people familiar with the matter said on Thursday.

The court had held a hearing on the merits of the case, but was yet to issue a decision, said one person familiar with the matter.

The stake is key for pushing VTB’s overall stake in the bank – Russia’s fifth-biggest by assets – above 50 per cent. The state-controlled bank last week acquired the Moscow city government’s 46.5 per cent in the bank for $3.5bn, in the first big carve-up of city assets since Mr Luzhkov’s ousting as Moscow mayor.

Andrei Kostin, VTB president, last week told the Financial Times that the Bank of Moscow senior executives leading a rebellion against its takeover by VTB had agreed to sell their stakes to VTB. It appeared to indicate the management team, led by close allies

of Mr Luzhkov, had given up their defence, although the timing and exact price of the sale had yet to be agreed.

On the same day as the managers – led by Andrei Borodin, the bank’s chief executive – agreed to elect him chairman of the board, Mr Kostin said Goldman Sachs had also agreed to sell the 3.9 per cent stake to VTB asset management, pushing VTB’s stake in the bank above 50 per cent.

A company held by a minority shareholder has, however, now filed suit questioning whether VTB’s acquisition of the city government stake had correctly triggered Goldman Sachs’ right to sell the stake.

The shares and the cash transferred to pay for them have been frozen pending the judge’s decision on the merits of the case, according to one person familiar with the situation.

A person close to Bank of Moscow insisted Mr Borodin, who together with his business partner Lev Alaluyev owns a 20.3 per cent stake in the bank, was still in agreement to sell to VTB. “He really does have an agreement and this has not changed,” the person said.

Another person familiar with the situation said the latest legal battle boiled down to a matter of price. “They have agreed to sell. But this is aimed at getting a certain price.”

Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Mazda mulls Russian assembly planthttp://english.ruvr.ru/2011/03/04/46925692.html

Mar 4, 2011 09:51 Moscow Time

The Japanese carmaker Mazda is considering the construction of its first assembly factory in Russia. The corporation is yet undecided on the location. The future facility is expected to turn out 30,000 cars per year at the first stage of production. According to recent reports, Mazda is phasing out production in the United States. The corporation plans to push up sales to 1,700,000 units worldwide by 2016. 300,000 of these are due to be sold in the BRICS countries, that is Russia, Brazil, India, China and South Africa. 

Lada in foreign gearhttp://rt.com/politics/press/izvestiya/foreign-gear-izhavto-avtovaz/en/print/

Published: 4 March, 2011, 06:50Edited: 4 March, 2011, 06:53

Aleksey Aronov

A large-scale reform of the automobile industry has begun in Russia. The government is inviting foreigners to build factories in the country and is offering tax incentives. Against this background,  Russian manufacturers are left most vulnerable, but the government is not always ready to help.

Last year, the Russian car industry became the best-performing sector. The government was so actively supporting the demand for cars that factories nearly doubled production. Some foreign concerns (such as Volkswagen and Mercedes-Benz) managed to reach two-year-old indicators. But overall, the market was unable to recover from the crisis. It came up a little short: in 2008, 2.1 million light cars and light commercial vehicles were sold in the country, and in 2010, 1.9 million. One of the reasons for falling behind is that the clunkers recycling program, which eventually raised demand, was launched too late and was accompanied by confusion. Moreover, lines formed for several foreign models, and consumers did not have the chance to buy them last year.

This spring, the recycling program should end. Or, to be more exact, it may be continued, but only at the producers’ initiative. This means that the cost of “burying” a vehicle will, most likely, be borne by the consumer, thus reducing the popularity of the shares. Officials have established the new rules of the game: competition, and not competition between, say, AvtoVAZ and the Izhevsk car plants, but a global one.

The government is ready to allow foreign automotive concerns’ duty-free import of car components for eight years. But in exchange, producers must make sure that 60% of the produced cars include domestic parts. Considering that the quality of our parts is categorically unsuitable to foreigners, one could say that a true revolution is bound to take place on the auto-parts market. Ineffective companies will become a thing of the past, and those that have potential will be bought by foreign companies.

Victory over the right-sided steering wheel

It should be mentioned that “the Vikings” are gladly exploring Russia, and considering such regions that, in the past, were believed to have absolutely no prospects – for example, the Far East. Recently, it became known that the automaker Sollers and the Japanese Mitsui will launch the production of one of Russia’s most popular SUVs, the Toyota Land Cruiser Prado, in Vladivostok. Other automotive concerns are trying to get into the region, particularly the Japanese Mazda, as well as some Korean companies. This indicates that the war “against the right-sided steering wheel,” which officials have been unsuccessfully leading for many years (it even led to talk about a legislative ban on the use of such cars), could very well be replaced by a smart tax policy.

A foreign presence in Russia’s Far East, however, won’t produce any instantaneous results. Meanwhile, local residents won’t switch to driving Ladas, regardless of any incentives – even considering discounted transportation of the VAZ production from the west to the east of the country.

Expansion of AvtoVAZ

In this situation, avoiding reform on the Russian market is impossible. Most likely, one or two serious players will remain, and part of their capital will include foreign companies. One such “monster” will be the flagship of the national car industry, Tolyatti’s AvtoVAZ, which basically carried the entire industry last year. It assembled 545,500 cars, which equals 45.1% of light car production in the country. The auto giant’s foreign partner, Renault, is pleased with the current situation on the market, and is clearly not against the idea of increasing its share in AvtoVAZ. Moreover, AvtoVAZ has plans for unaffiliated companies.

This primarily concerns the distressed IzhAvto. AvtoVAZ has already declared that in June of this year it will acquire a controlling stake from United Automobile Group (UAG), which controls the Izhevsk plant, and by the end of the year 100% of the shares. It should be mentioned that things have long been leading to this.

Before the crisis, IzhAvto was developing successfully. Under its former owner, Samara-based SOK Group, it was one of the first Russian auto plants to switch to the industrial assembly mode, after signing an agreement with Kia Motors. The modern company produced up to 100,000 cars annually, including the popular Kia Spectra and Kia Rio.

But IzhAvto owners were already then planning to merge the Udmurtia-based enterprise with AvtoVAZ, and in 2007 initiated the sale. In 2008, AvtoVAZ announced the deal, which had already been approved by FAS, as if it was already a done deal. Then, IzhAvto stopped its collaboration with Kia, because the new owner was focused on the French concern. But with the beginning of the financial crisis, AvtoVAZ turned away from the deal. And IzhAvto ended up being the only company-town automotive concern that did not receive state support. (IzhAvto was supposed to become part of AvtoVAZ, and receive funding from “the general funding package.”)

The previous owners spent another year holding the idle plant above water. But, assistance never came, and the owners sold their shares to the management. Meanwhile, law enforcement officials recently reported a lawsuit claim against the former owners and IzhAvto management for premeditated bankruptcy and contribution and withdrawal of shares worth 7 billion rubles. Experts, however, are doubtful: why “sink” the plant, after investing $400 million into it?

In any event, now the asset will come into possession of AvtoVAZ, and will be an eternal reminder of the fact that, without government support, even a successful business will hardly be able to overcome a crisis.

Activity in the Oil and Gas sector (including regulatory)

OAO Rosneft (ROSN RX) and OAO Lukoil (LKOH RX): Urals crude, Russia’s main export blend, fell the most since Feb. 4. Rosneft, the country’s largest producer, declined 0.2 percent to 269.57 rubles. Lukoil, its largest rival, advanced 1.2 percent to 2,039.5 rubles.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

04.03.2011

Japanese Interested in Shtokman Projecthttp://www.oilandgaseurasia.com/news/p/0/news/10718

Japan’s Mitsubishi Corporation is interested in taking part in Russia’s Shtokman gas project.

"We are closely monitoring the development of the Shtokman field and Mitsubishi would like to become a participant", says the Japanese corporation’s Moscow Office General Manager Makoto Nakazato.

Mitsubishi has a 33.5 percent stake in the Japanese company Chiyoda, which designed and built a LNG plant on the Sakhalin Island in Russia’s Far East. According to Nakazato Chiyoda could offer to build and supply equipment to the planned Shtokman LNG plant, PRIME-TASS reports.

Copyright 2010, Barents Observer. All rights reserved.

Putin’s Arctic Energy Selloff Spurs Novatek Gain: Russia Credit

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

Prime Minister Vladimir Putin’s drive to bring in foreign companies to develop the Arctic is stoking record gains for dollar bonds of OAO Novatek, the natural-gas producer that’s linking up with Total SA.

Last Updated: March 4, 2011 01:44 EST

Total’s Yamal, Siberia Investment May Reach $10B, Echos Says

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

Total SA’s investment in the Yamal LNG project in the north of Siberia may reach $10 billion, French daily Les Echos reported, without citing anyone.

Last Updated: March 4, 2011 01:44 EST

Sergei Chemezov’s Wife Owns 5% of Itera Gas, Vedomosti Reports

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

The wife of Sergei Chemezov, the chief executive officer of Russian Technologies Corp., owns a 5 percent stake in Itera, a gas producer, Vedomosti reported, citing unidentified people close to Itera.

Last Updated: March 4, 2011 01:44 EST

March 3, 2011

Regular meeting of the Board of Directors of Rosnefthttp://www.rosneft.com/news/pressrelease/03032011.html

The Board of Directors of Rosneft held a regular meeting on March 3, at which various aspects of current operations were discussed.

1. Draft Programme for Innovative Development

The Board discussed Rosneft’s Innovative Development Programme and decided to set up the Rosneft Corporate Institute for Innovation and Technology, which will be located in Moscow. The Board also decided to create the post of Rosneft Vice-President for Innovation.

Board Chairman Igor Sechin stressed the importance of ensuring an integrated approach to innovation, focused on practical application of new technologies to lower production costs and other expenses.

2. Annual General Meeting (AGM) of Shareholders

The Board decided that the Company AGM for 2010 results will be held on June 10, 2011 in the city of Krasnodar at the following address: KrasnodarEXPO Exhibition Center, 5 Zipovskaya street. The record date to participate in the AGM is April 21, 2011.

It was decided to hold this year’s Annual Shareholder Meeting in Krasnodar because the company has extensive operations in that region and is implementing a number of large-scale investment projects there, including development of the Tuapse Trough on the Black Sea shelf, upgrade of the Tuapse Refinery and marine terminal, as well as the Company’s partnership role in the 2014 Olympic Games in Sochi.

3. Proposed candidates to the new Board of Directors

In accordance with the proposal of the main shareholder, OJSC Rosneftegaz, and the Federal Agency for State Property Management, which together own more than 75% of voting shares of Rosneft, the following persons were included in the list of candidates for election to the new Board of Directors:

1. Vladimir Bogdanov, General Director of OJSC Surgutneftegaz;2. Andrey Kostin, President and Chairman of the Executive Board of OJSC VTB

Bank;3. Alexander Nekipelov, Vice-President of the Russian Academy of Sciences;4. Yury Petrov, Head of the Federal Agency for State Property Management;5. Hans-Joerg Rudloff, Chairman of the Executive Committee of Barclays Capital;6. Igor Sechin, Deputy Prime-Minister of the Russian Federation;7. Nikolai Tokarev, President of OJSC Transnseft;8. Eduard Khudainatov, President of OJSC Rosneft;9. Dmitry Shugaev, Deputy General Director of Rostekhnologii State Corporation.

Five candidates were selected for appointment to the Company Audit Commission.

4. Actions in respect of non-core and inefficient assets

The Board decided to take steps in 2011 with respect to non-core and inefficient assets, which are under the control of Rosneft. Directors ordered a list of inefficient assets and plan of action for these assets to be prepared and presented to the Board before June 2011. Board Chairman Igor Sechin said that “the key criteria as we evaluate options for these assets should be their economic efficiency and potential, and whether this potential is most valuable to Rosneft or other interested parties”.

TNK BP may shut Ukraine refinery if import duties are nixedhttp://www.steelguru.com/russian_news/TNK_BP_may_shut_Ukraine_refinery_if_import_duties_are_nixed/194184.html

Friday, 04 Mar 2011Ukrainian Journal reported that Russia’s oil major TNK-BP may shut down its Lisichansk Oil Refinery in Ukraine unless the government moves by March 15 to introduce duties on imports of gasoline and diesel fuel.

Mr German Khan the executive director and a shareholder of TNK-BP issued the

warning while recently meeting top Ukrainian government officials in Kiev.

(Sourced from Ukrainian Journal)

Russia's TNK-BP speeds up Uvat oil outputhttp://af.reuters.com/article/energyOilNews/idAFLDE7220YG20110303

Thu Mar 3, 2011 4:30pm GMT

* Plans to increase Uvat output to 6 mln T in 2011

* Peak production seen for 2015-2016, sustained for 3-4 yrs

* Overall investment seen at $5.7 billion

By Vladimir Soldatkin

TYUMEN, Russia, March 3 (Reuters) - BP's (BP.L) Russian venture, TNK-BP (TNBP.MM), hopes to reach peak annual output at 10 million tonnes faster than expected at the Uvat project, the latest major oil development in western Siberian.

Russia, the world's top oil producer, is hoping to sustain its crude output at the current level of above 10 million barrels per day for years to come thanks to newly discovered deposits in eastern Siberia.

But the country's third-largest oil producer, TNK-BP, is still banking on growth at its fields in western Siberia, where deposits are depleted after having been developed since Soviet times.

TNK-BP's Uvat has been producing since 2004, a year after BP bought into Russia and created the company it shares equally with Russian billionaires.

In 2010 Uvat output totalled 4.7 million tonnes, while TNK-BP on the whole produced around 72 million tonnes of oil. It expects to increase total production by 1.7 percent in 2011.

"This year output at Uvat will come close to 6 million tonnes," TNK-BP's vice president on large-scale projects and infrastructure, Viktor Blagoveshchensky, told a meeting with Tyumen's governor on Wednesday.

He added that the peak production will come at 10 million tonnes by 2015-2016, a year earlier than previously planned and 500,000 tonnes more than it expected.

"It had been expected that peak production of 9.5 million tonnes will happen in 2017," a TNK-BP's spokesman told Reuters on Thursday.

Blagoveshchensky also said that peak output will be sustained for three to four years.

The Uvat project is in the south of the Tyumen region on the border with Kazakhstan. It combines 16 deposits, most of which were discovered in Soviet times and may contain as much as 250 million tonnes or 1.83 billion barrels of oil.

Total investments in Uvat are expected at around 160 billion roubles ($5.76 billion).

(Reporting by Vladimir Soldatkin; editing by Jane Baird)

LUKoil Sells American Unit http://www.themoscowtimes.com/business/article/lukoil-sells-american-unit/432053.html

04 March 2011

EAST MEADOW, New York — LUKoil Americas said Wednesday that it has sold its Getty Petroleum Marketing unit to Cambridge Petroleum Holding.

Terms of the deal, which was completed on Monday, weren't disclosed. The company said it would continue to operate its existing LUKoil-branded gasoline stations in the mid-Atlantic region through subsidiary LUKoil North America.

LUKoil Americas is a unit of LUKoil and operates through a subsidiary network of more than 600 mid-Atlantic outlets. Cambridge Petroleum is an affiliate of Cambridge Securities, an investment firm specializing in the oil and gas services industry.

(AP)

Gazprom

03/04 11:46   Gazprom considers construction of oil refinery in Sakhalinhttp://www.interfax.com/

OAO Gazprom (GAZP RX): Gazprom plans to add more than 11 billion metric tons (80.6 billion barrels) of oil equivalent reserves through offshore exploration in Russia by 2030. The natural gas export monopoly’s shares rose 0.9 percent to 213.54 rubles.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a3wizoUn0Kw8

Last Updated: March 4, 2011 01:44 EST

Shtokman developers put pressure on Murmanskhttp://www.barentsobserver.com/shtokman-developers-put-pressure-on-murmansk.4891624-16174.html

2011-03-02 More beneficial tax conditions will improve the investment climate in Murmansk Oblast, Gazprom and the Shtokman Development company underline.

In a recent meeting with the leaders of the Murmansk regional Duma, representatives of the two companies reiterated calls for better tax conditions in the region. According to Kirill Molotsov, Vice Director of the Shtokman Development AG, his company is proposing several amendments in regional legislation all meant to “secure a mutually beneficial partnership between the investors and the region”, a press release from SDAG reads.

According to members of the regional Duma, the legislative changes are all aimed at lowering the tax level for the project developers. Among the proposed measures are lower taxes on corporate incomes and property, a press release from the Duma states.

Over the last years, the lion’s share of taxes collected in the Russian regions has been transferred to Moscow and the federal budget. The regions are left with only a minor share of the regional tax revenues and instead depend on transfers from the federal government. However, with major Shtokman investments in the pipeline, regional authorities in Murmansk still expect to boost taxes and revenues.

Speaker in the Murmansk Duma Yevgenii Nikora in the meeting with the company representatives promised that the regional parliament will soon start a assessment of the legislative amendments proposed.

As previously reported, Gazprom and its partners in the Shtokman Development AG, have on several occasions signaled that tax benefits will be necessary for a successful project implementation. Talking at the Kirkenes Conference in early February this year, President of Statoil Russia Jan Helge Skogen underlined that the Shtokman project will require enormous investments, which can not be justified without a change in Russian fiscal policy.

From before, Russian authorities have granted favorable tax conditions for the developers of several other complex fields, like in Yamal.

Text: Atle Staalesen

Gazprom Turns to Lanner Simulation as Shtokman Development Prepares for Phase 1 Development

http://www.newswiretoday.com/news/86588/

 NewswireToday - /newswire/ - Houston, TX, United States, 03/04/2011 - Gazprom selects leading process simulation specialists Lannner for liquefied natural gas project as Russian energy giant prepares for Shtokman field's phase 1 project.

    Lanner Group experts have completed a project for energy supplier Gazprom as the Russian giant prepares to execute Phase 1 of the Shtokman liquefied natural gas (LNG) project in the Russian Arctic region.

Gazprom, the majority owner (51%) in the Shtokman Development joint venture, appointed leading process modeling specialist Lanner Group as its simulation partner to support preparations ahead of the start of Shtokman Phase 1 program

The complexities presented by Shtokman’s location, harsh weather conditions and remote location meant that Gazprom and its Phase 1 partners, Total of France, and Norway’s Statoil needed to plan prudently for the future operation of the field. Lanner consultants were tasked to develop a detailed simulation of proposed operations, including a wide range of variables, such as weather, shipping options potential equipment downtime.

The resulting simulation model was tailored to allow Gazprom to rigorously assess the specific challenges associated with the location of the Shtokman field and peculiarities of upstream complex performance. Conditions in the Arctic can be harsh and needed to be fully taken into account, including relevant weather data for all routes that ships might take.

The model also provided answers to questions such as what fleet configuration would be most logistically effective for various marketing scenarios and what would also be used to test the reliability of the supply chain and to gauge potential risks. It also captured detailed research on the performance of upstream equipment. Unlike most models, which average out performance statistics over a set period of time, Lanner’s Shtokman model covered LNG plant and gas production performance.

Frederik Smits van Oyen, Business Development Manager at Gazprom Global LNG, said, “Lanner was able to demonstrate in-depth knowledge and understanding of the logistics involved in delivering LNG, as well as experience of dozens of similar, complex projects. It understands the key levers and the drivers of efficient LNG transportation.”

Gazprom also plans to continue using simulation modeling to test different scenarios and ensure that factors that are likely to have an impact are built in, says Frederik Smits van Oyen, “We are working continuously to challenge ourselves and improve the reliability of our operations.”

He continues, “Ability to run the field in a virtual environment means that we are well prepared for the future. This is all about our ability to deliver LNG across different markets confidently and reliably.”

The Shtokman field, located more than 310 miles off the coast of Russia in the Barents Sea, may contain 3.9 trillion cubic meters of gas resources. The venture aims to build a plant capable of producing 7.5 million tons of liquefied natural gas a year after output is started.

About Lanner GroupLanner Group (lanner.com), the leading process simulation software specialist, is dedicated to delivering innovative solutions to model, analyze, and optimize business processes to over 6000 firms worldwide. Follow us on twittter @WitnessSim.

1. Image available - Caption: The Shtokman Field is located more than 310 miles off the coast of Russia in the Barents Sea.

Gazprombank and Areximbank-Gazprombank Group offer money transfers between Armenia and Russia without account openinghttp://www.arka.am/eng/banks/2011/03/04/24426.html

YEREVAN, March 4, /ARKA/. Russian Gazprombank and its Armenia-based affiliate Areximbank-Gazprombank Group have launched a new service for their clients offering money transfers between the two countries without account opening via their international MasterCard plastic cards.

Areximbank-Gazprombank Group said today in a press release that the advantage of this new service is that a client may make a swift and safe remittance from Armenia to Russia and vice versa and receive the money through Gazprombank’s ATMs in Russia and Areximbank-Gazprombank’s ATMs in Armenia without having to visit a bank branch. Remittances will be made in Russian rubles only. In Armenia they will be converted to Drams.

In 2010 the overall amount of individual money transfers between Russia and Armenia totaled 6.298 trillion Drams and the number of transactions rose to 26, 188. The introduction of this new service is expected to increase the volume of remittances between the two countries in 2011 by 5-10%.

Areximbank-Gazprombank Group (formerly Areximbank) was established in 1998 to handle financial flows between Armenia and Russia. It is a principled member of VISA International and MasterCard International payment systems. In 2007 it joined Armenian ArCa payment system. The bank is owned fully by Russian Gazprombank. -0-

04/03/2011 11:33

Gazprom's non-transparency raises eyebrows with Russiahttp://english.pravda.ru/business/companies/04-03-2011/117086-gazprom_transparency-0/

04.03.2011

Transparency International said in its annual report that Russia's natural gas monopoly Gazprom was one of the most non-transparent oil and gas companies in the world. The report contains information about anti-corruption programs and standards used in financial accounting.

Transparency International in association of Revenue Watch Institute prepared The 2011 Report on Oil and Gas Companies - second report from TI and RWI since 2008. The subject of the report is the public availability of information on the anti-corruption programs of oil and gas companies. The document rates 44 national and international companies located in 30 countries of the world. The rated companies own 60 percent of world oil reserves and 55 percent of gas reserves. They represent 33 largest international companies and 11 largest national companies in the oil and gas sector. Russia's Gazprom, Lukoil and Rosneft are among them, although the part of the report about the Russian companies raised concerns with experts.

The report says that Gazprom is one of the most non-transparent oil and gas companies in the world. The report usually contains the information about anti-corruption programs of the companies, the information about their structure, organization, system of administration, their partners, as well as systems of standards used in financial accounting.

As of 2010, Russia's Gazprom has been categorized as a company whose transparency percentage has been brought down to zero. The black list of the report also includes China's CNOOC, Equatorial Guinea's GEPetrol and Japan's Inpex, RBC reports.

The results of TI's research are highly indicative. Public and international companies demonstrated better results as opposed to national concerns. The leader of the rating - the most transparent company - is Norway's Statoil. BG Group took the lead in terms of the anti-corruption struggle.

As for Russia, one should say that Transparency International has never had good feelings about the country. The organization ranks the Russian Federation on the 154th place on the list of 178 most corrupt countries. In spite of the qualitative improvement of anti-corruption programs, global oil and gas companies need to continue to struggle against corruption in the countries where their business interests are concentrated.

The methods of calculation and sources of information, which TI used in the report, may raise some eyebrows. For example, the open publication of anti-corruption measures which a company takes, is not stipulated by the Russian legislation. Analysts said that Gazprom received such a low ranking to its transparency just because it is a classic variant of a closed state-run company. Gazprom does not have any intention to disclose its financial interests right and left. However, Russian companies do not conceal their organizational structure, beneficiaries, partners and subsidiary companies. According to RB.ru, Gazprom with its 81 percent and Rosneft with 75 percent are vastly superior to the average index on the industry. BG Group still takes the lead, though, but it shares the top line with BHP Billiton (Australia-Britain) and India's ONGC (100 percent all).

Transparency International says that the report was prepared to make the revenues of oil and gas companies as transparent as possible, and their structure - as open as possible.

Thus, having published the report, TI and RWI intend to disclose and distribute the information regarding financial activities of oil and gas companies in the countries where they operate. To catch up with transparency criteria, the management of Gazprom has to fundamentally change its attitude to the organization of administration. Will Gazprom do it? This is not likely.

Valentin GridinBigness