Russia 101213

Basic Political Developments Go-ahead to START - David Axelrod claims there is enough support on Capitol

Hill for the crucial START agreement to be passed. Parliamentary elections recognized valid in Dniester region - The parliamentary

elections were held in the Dniester Region on Sunday. According to preliminary reports, over 39% from 404,000 voters participated in the elections. The turnout was much higher than a 25% required level, the Central Elections Commission of the self-proclaimed republic told reporters on Sunday.

o Russian gas could bring Communists back to power in Moldova - Some observers do not rule out the possibility of a last-minute alliance between Marian Lupu's Democratic Party and Vladimir Voronin's Communists. It was only Mr Voronin's personal dislike for the person of Mr Lupu, a former defector from the Communist party and a rival in getting Moscow's ear, that prevented this so far, but a discreet intervention from the Kremlin would certainly facilitate a speedy reconciliation.

Russia to intensify its mediation on the Karabakh conflict settlement process - According to the statement signed in Astana, Russia will intensify its mediation efforts to resolve the Nagorno-Karabakh conflict, Russian ambassador to Azerbaijan Vladimir Dorokhin told reporters on Sunday.

Russia has installed latest set of anti-ship missiles on border with Azerbaijan - According to Russian sources, a separate coastal missile division of the Caspian Flotilla of Russia, equipped with such latest anti-ship missiles as Ball with a range of 130 km, deployed in Dagestan, near the town of Izberbash.

Russia vows 'to share responsibility' over Europe missile shield - "We have proposed to share responsibility and Russia is ready to act in some part and take on anti-missile defense responsibility," Serdyukov told Vesti 24 news television channel.

o Russia will react appropriately to appearance of NATO troops near its borders – Serdyukov

o Serdyukov: if Russia is not part of the European missile defense, it will create a system that overcomes this defense

Russia axes new aircraft carriers - "The state armaments program for 2011-2020 does not envision the construction of aircraft carriers," an unnamed senior official in Russia's defence ministry told the Interfax news agency.

Lavrov, Pak Ui-chun to take up ways to resume six-way talks - The Russian and North Korean Foreign Ministers, Sergei Lavrov and Pak Ui-chun, are due to take up ways to resume the six-ways talks on the Korean Peninsula’s nuclear problems in Moscow today.

o N.Korea Sends Top Diplomat to Russia - Pak told Russia's Interfax news agency Friday that Pyongyang felt justified in building a nuclear defense to ward off threats from South Korea and the U.S., which he accused of conducting a policy of hostility and confrontation.

o South Korea’s Envoy to Six-Party Nuclear Talks to Visit Russia - South Korea’s chief envoy to multilateral talks on North Korea’s nuclear weapons programs will visit Russia this week to discuss the tensions prompted by the North’s artillery attack last month.

o Pak Ui-Chun: U.S., South Korea are behind escalation on Korean Peninsula - Foreign Minister of the Democratic People’s Republic of Korea Pak Ui-Chun in an interview with Interfax speaks about Pyongyang’s vision of the current situation on the Korean peninsula and has offered an assessment of Russian-North Korean cooperation in political and economic issues in the run-up to his visit to Russia.

Russia: Dialogue only solution to Lebanese crisis - Sultanov held separate talks Saturday with President Michel Suleiman, Speaker Nabih Berri, Prime Minister Saad Hariri, Foreign Minister Ali al-Shami and head of Hizbullah’s parliamentary bloc MP Mohammad Raad.

India to extend ties with Russia in defence, nuclear spheres - India and Russia are likely to sign half-a-dozen agreements, including a long-pending one on co-developing and producing a Fifth Generation Fighter Aircraft (FGFA), during Russian President Dmitry Medvedev's two-day visit beginning December 21.

o Medvedev visit: Nuclear, defence, economy key issues on agendao Nuclear, defence fields top agenda for talks with Russian Presidento Work on BrahMos supersonic missile over, trials to wait - BrahMos

Aerospace, an Indo-Russian joint venture, has completed the work on aerial and underwater versions of a supersonic cruise missile, but the test-fire of the two variants is held up for the time being in the absence of platforms for trials.

o Krishna temple to be built on Moscow outskirts Putin to hold meeting on state armament program - Russian Prime Minister

Vladimir Putin will on Monday travel to the city of Severodvinsk in northeast European Russia to hold a meeting on the state armament program for 2011-2020.

Putin will answer questions from viewers, listeners on Dec 16 live show Putin takes a fast ride home - Russian Prime Minister Vladimir Putin and Finnish

President Tarja Halonen have been among the first passengers to board a new high-speed train.

o Prime Minister Vladimir Putin and Finnish President Tarja Halonen arrive in St Petersburg on the new Allegro high-speed train

o Vladimir Putin and Finnish President Tarja Halonen meet in Vyborg and depart for St Petersburg in the first Allegro high-speed express train, which brought Ms Halonen from Helsinki

Vladimir Putin Sends Gifts to Gigintsi Monastery - Moscow will send frescoists to Bulgaria. They will paint for free the new church in Sts Kuzma and Damyan Monastery in the village of Gigintsi, southwestern Bulgaria. The Russian interest in the monastery is due to patron saint of the church - St Siluan of Athos. There is no other church on the Balkans bearing the name of the Russian saint.

Medvedev to hold RF Security Council meeting on energy problems - Russian President Dmitry Medvedev will hold the last in this year meeting of the Russian Security Council on Monday. The Security Council meeting will be devoted to

the state and measures to ensure energy security in the country, the Kremlin press service told Itar-Tass.

o Security Council session opens in Moscow Christian radio almost extinct in Russia - Dan Johnson with New Life Radio

Moscow says their Norilsk FM affiliate, located in Siberia, was the target. "This is the third radio affiliate we've had that's been shut down by the government under a variety of pretexts. The station in Norilsk was one of the few existing FM stations across the country."

Russian Church calls for prompt action to stop growing threat of ethnic clashes Russian Church to help migrants in their hardships Moscow police deny reports of fans planning action on Dec 15 - Moscow police

spokesman Viktor Biryukov has said that the association of soccer fans is not planning any unauthorized street actions that could undermine law and order in the city.

o Izvestia photographer hospitalized after Moscow opposition rally o Medvedev pledges to punish all those staging Manezh Square riotso Medvedev pledges inevitable punishment for Moscow rioters o Opposition leader released in Moscow - The leader of Russian opposition

movement Left Front, Sergei Udaltsov, detained during Sunday's rally after calling on activists to nail their demands on the doors of City Hall, has been released, police said.

o Riots in the heart of Moscow: Dozens injured - Football fans plan to continue massive actions of protest in connection with the recent death of Spartak fan Yegor Sviridov, who was killed in Moscow by migrants from Russia's North Caucasus. On December 15th, the fans are planning to hold another action in the city, near Kievsky Railway Station.

o Rioting Erupts Near Kremlin Walls o Russian nationalist riots are only the start - Saturday’s shocking violence

in central Moscow is only the start – a further protest is planned on Wednesday as an unholy alliance of football fans and ultra-nationalists continues to put pressure on the authorities.

o Moscow rioters used tragic pretext for nationalist games - Mixing football and politics is unacceptable, Moscow police chief Vladimir Kolokoltsev said after a meeting with Russian Football Union President Sergei Fursenko, representatives from Moscow football clubs and veteran football fans.

Pro-Kremlin youth group stages Mickey Mouse protest in Moscow - Rossiya Molodaya (Young Russia), a radical pro-Kremlin and anti-opposition youth group, staged a protest wearing Mickey Mouse outfits outside a building where a coalition of democratic forces will hold a congress later on Monday.

Russian sailors stranded in Vietnam go on hunger strike Russian sailor on South Korean vessel rescued SKorea fishing vessel with Russian crewman sinks in Southern Ocean U.S. to increase sports youth exchanges with Russia

Chechen officials visiting Maine, L-A - Six members of the Chechen Republic Parliament will spend the day in Lewiston-Auburn Wednesday as part of their visit to Maine to experience American-style democracy at the local level.

Medvedev in raptures after Elton John gig - "Just been at Elton John's concert. Very serious work, of very high quality - almost three hours of live music," Medvedev tweeted after a night on the town.

Russian spy named advisor for oil company Rosneft – report: The Russian business daily, citing sources in the Kremlin, said ex-sleeper agent Andrei Bezrukov had been appointed as Rosneft president Eduard Khudainatov's personal international projects advisor.

'Russian spy' Katia Zatuliveter worked for the BBC before she got job with MP U.K. to Scrutinize Firms With Russia Ties - International companies doing

business in Russia will be subject to greater scrutiny by the United Kingdom beginning in April, when a draconian anti-corruption law enters into force, lawyers warn.

Investigators study voice recorder from crashed Russian Tu-154 Central Asian man killed in Moscow A Kyrgyzstani killed in Moscow Azerbaijani citizen shot dead in Moscow Russian Press at a Glance, Monday, December 13, 2010

o Kirov Governor Nikita Belykh said on his blog he has no complaints against lawyer and anti-corruption activist Alexei Navalny, despite the fact that he is now being probed by the Investigative Committee.(Moscow Times)

o A Kremlin official told a U.S. diplomat that Russian authorities had been tracking the suspected killers of former spy Alexander Litvinenko before his poisoning death in London four years ago, but had been warned off by Britain, according to a U.S. diplomatic cable released by WikiLeaks on Saturday.(Moscow Times)

o Russian Prime Minister Vladimir Putin took part in a charity concert for children having cancer. He sang Blueberry Hill and played the piano.(Kommersant, Moscow Times)

o Three political parties without representation in the State Duma were invited to participate in a parliamentary discussion Friday - but for only 10 minutes each.(Moscow Times, Vremya Novostei)

o Russian Prime Minister Vladimir Putin kept his promise to employ Russian spies detained in the United States over the summer. Andrei Bezrukov was appointed an advisor to Russian state-run oil company Rosneft's president.(Kommersant)

o Turkmenistan, Afghanistan, Pakistan and India have agreed to build a trans-Afghan gas pipeline (TAPI) that will supply to South Asian markets 33 bcm of Turkmen gas annually from 2015.(Kommersant)

o Ukraine will expand its participation in the Commonwealth of Independent States, President Viktor Yanukovych said at a Moscow summit. However, Ukraine has not given up on the idea of European integration.(Nezavisimaya Gazeta)

o United Russia will win the forthcoming parliamentary elections and either Dmitry Medvedev or Vladimir Putin will win the presidential elections, deputy Kremlin chief of staff Vladislav Surkov told youth organizations.(Rossiiskaya Gazeta)

o International companies doing business in Russia will be subject to greater scrutiny by the United Kingdom beginning in April, when a draconian anti-corruption law enters into force, lawyers warn.(Moscow Times)

o The Audit Chamber has found that Emergency Situations Ministry officials improperly spent millions of dollars of federal money in the past three years.(Moscow Times)

o Russia will not bring export duties on timber to zero for Finland yet.(Vremya Novostei)

o Russian Finance Minister Alexei Kudrin wants to establish the world's biggest fund. He proposes sending all privatization revenues to the National Welfare Fund and bringing its size to 60% of GDP.(Vedomosti)

o VimpelCom is interested in a 51% stake in Serbian fixed and mobile communications operator Telekom Srbija. The stake is assessed at $3.21 billion.(Vedomosti, Kommersant)

o Downtown Moscow's Manezh Square on Saturday became a battlefield between belligerent soccer fans and police. Ordinary passersby, internal migrants from the North Caucasus, were beaten by nationalists. The clashes were sparked by last week's death of Spartak Moscow fan Yegor Sviridov killed in an interethnic brawl.(Kommersant, Vremya Novostei, Vedomosti, Moscow Times, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

o The Khimki town court has overturned a defamation conviction against journalist Mikhail Beketov, who had accused the Khimki mayor of being involved in organizing "political terror" in the town.(Vremya Novostei, Moscow Times, Rossiiskaya Gazeta)

o St. Petersburg Governor Valentina Matviyenko's statement on the relocation of the controversial Okhta business center became a real sensation.(Rossiiskaya Gazeta)

o Two explosions hit downtown Stockholm Saturday evening. Sweden says this was a terrorist attack.(Vremya Novostei, Kommersant)

o Russian governors will have to establish "coordination conferences" to join efforts of regional and federal law enforcers, in line with a presidential decree.(Nezavisimaya Gazeta, Kommersant)

o Hockey club Vityaz Chekhov needed only six seconds to choose between hockey and its usual occupation: Vityaz players attacked their rival team from Siberia Avangard Omsk in a mass brawl. (Rossiiskaya Gazeta)

Snowfall impedes traffic in Russian capital Kamchatka volcanic ash reaches 308 kilometres YEARENDER: Russia's ties with Ukraine, Poland to get warmer in 2011 WIKILEAKS

o US embassy cables: Russia targeting Tajikistan to reduce western influence, says US

o US embassy cables: 'We won't be inviting the Russian military to dinner any time soon' - US embassy in Tajikistan

o WikiLeaks May Increase Kremlin Clan Infighting - By Vladimir Frolov Russian educational performance of 15-year-olds again below OECD

international average Vogue Russia’s January Covergirl is also Vladimir Putin’s mistress. Madonna to open luxury gym in Moscow Chronicle Of a Lost Cause - Autocratic rule, dreaded security forces, benefactors

in the Kremlin: so much for the dream of Chechnya as an independent, democratic state.

Stalin’s grandson disputes Katyn tragedy

National Economic Trends Budget deficit set to soar in December Kudrin: Russia's National Well-Being Fund Should Be Boosted to 60%/GDP Foreign trade statistics in October Russia to post “disappointing” growth rate in 2011, RenCap Failed Eurobond Means Tripling of Domestic Sales: Russia Credit Russia's credit portfolio to rise Lending to non-financials could rise 12%, to private borrowers 14% in 2010 –

CBR

Business, Energy or Environmental regulations or discussions Gazprom, Novatek, Rosneft: Russian Equity Market Preview Skolkovo fund to sign agreements with LUKoil, Rosatom Larsen, Russia’s Atomstroyexport May Form Venture, Line Says Polyus Gold's owner gains on selling company shares Polyus Drops on Prokhorov Nash to Leave Renaissance and Join Verno Capital, FT Reports FUNDS: Roland Nash quits Rencap to join Verno Capital Bombardier Transportation Signs Agreement With Russian Railways -

Bombardier announces new partnership in Russia with purchase of a stake in signalling equipment manufacturer Elteza

DJ Amur Minerals Corp Awaits Kun-Manie Mining Licence Approval KamAZ May Buy Stake in Belarus Truckmaker MAZ, Kommersant Says Kamaz in talks to buy Belarus' MAZ Chevrolet Europe needs success in Russia to fulfil its goals - Chevrolet Europe

has weathered the economic storm better than most of its competitors, benefitting hugely from government cash-for-clunkers incentives, but if its ambitious long-term plan is going to be successful, it all depends on Russia.

Live from Moscow: TechCrunch Moscow - TechCrunch Moscow is at the first Russian private tech incubator, the Digital October Center, located in a historical manufacturing building Krasny Oktyabr. Speakers include Arkady Dvorkovich, assistant to the President of Russia; Arkady Volozh, CEO of Yandex, Russia’s leading search engine; Annelies van Den Belt, CEO of SUP/Livejournal; Semyon Voinov, founder of Zeptolab and creator of “Cut the Rope”; Demyan

Kudriavtsev, CEO of Kommersant; Oskar Hartmann, founder and CEO of KupiVip, and many others.

Tele2 adds 207,000 phone users in Russia in Nov Russian consumer in starring role as film-going hits new heights - Russia's film

distribution market grew by up to 40% in 2010 to finally breach the $1bn revenue threshold, becoming the fifth biggest in the world, according to the website Kinobusiness.com. The news is yet another sign of the healthy growth in Russian consumer spending.

The reserve fund will be used to finance the deficit next year, spending 300 billion rubles to 400 billion rubles ($10 billion to $13 billion) from one of the country’s two sovereign wealth funds, Deputy Finance Minister Dmitry Pankin said Friday. (Bloomberg)

Magnitogorsk Iron and Steel saw third-quarter net income attributable to shareholders fall to $48 million in the period, from $76 million a year earlier, the company said Friday, but it plans to increase output of steel products by 29 percent next year on rising demand domestically and from Turkey. (Bloomberg)

Billionaire Alexander Lebedev agreed to sell 44 million shares in Aeroflot, for about $2.50 apiece, Interfax reported Friday, while the stock closed down 3.9 percent at the end of trading. (Bloomberg)

Metalloinvest Holding, the country’s biggest iron ore producer, cut its debt by $1.2 billion this year by repaying some of the loans early, the company said Friday. It repaid 7.6 billion rubles ($246 million) of loans ahead of schedule in November, and its total debt portfolio stood at $4.2 billion as of Dec. 1. (Bloomberg)

Activity in the Oil and Gas sector (including regulatory) Kazakhstan to Ask Russia, Belarus to Ban Export of Distillates Oil Export Tax Expected To Increase Next Month Rosneft to pay bonuses ONGC Videsh Offers Russian Sokol Crude Oil for February Loading Russian-Vietnamese O&G Joint Venture To Cooperate For Additional 20 Years

Gazprom Agreed Gazprom gas prices in 2011 to be up not more than 10% Oil India asks Gazprom to help develop two gas fields Japan to sign LNG feasibility study with Gazprom Japan, Russia Set to Tie Up on Gas Plant Gazprom reaches out to Belgian gas market

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Full Text Articles

Basic Political Developments

Go-ahead to STARThttp://rt.com/news/go-start-senate-ratification/

Published: 13 December, 2010, 10:08

The US Senate will ratify the new nuclear arms control deal with Russia before wrapping up for Christmas – according to a senior adviser to the American president.

David Axelrod claims there is enough support on Capitol Hill for the crucial START agreement to be passed.

Presidents Barack Obama and Dmitry Medvedev signed the treaty reducing the two countries' atomic arsenals by a third, in April. However, US Republican senators, who made significant gains in the recent mid-terms, have been far from favorable in their reaction to the pact.

President Obama has called ratification his top foreign policy priority.

When the new Congress convenes next year, Democrats will lose their current majority in the lower house, making it tougher for them to pass the deal.

Parliamentary elections recognized valid in Dniester region

http://www.itar-tass.com/eng/level2.html?NewsID=15772715&PageNum=0

13.12.2010, 01.22

TIRASPOL, December 13 (Itar-Tass) -- The parliamentary elections were held in the Dniester Region on Sunday. According to preliminary reports, over 39% from 404,000 voters participated in the elections. The turnout was much higher than a 25% required level, the Central Elections Commission of the self-proclaimed republic told reporters on Sunday.

“Currently all 259 polling stations are closed, local election committees started the vote count, the preliminary results are expected to be made public on Monday morning at the international press center in Tiraspol,” CEC chairman Pyotr Denisenko told reporters. “International observers from Russia, Ukraine, Moldova, Belarus, France, the Czech Republic, Lithuania, Abkhazia, South Ossetia, Nagorno Karabakh, Gagauzia did not find any major violations that put into question the democratic and lawful nature of the elections,” he noted. “Only few minor violations were reported, particularly those of

photo and video recording at polling stations and some other insignificant violations,” Denisenko pointed out.

The elections were held under the majority system with 123 candidates running for 43 seats in the Supreme Council (local parliament). About 10 political organizations from the Communists to the Liberal Democrats are registered in the region. With all current disagreements in the issues of home policy almost all of them adhere in their election programs to the course for rapprochement with Russia and gaining independence from Moldova. The observers called the Renovation Party the leading one in the current elections. The party had most seats in the previous parliament.

Russian gas could bring Communists back to power in Moldovahttp://waz.euobserver.com/887/31483

DAN ALEXE

Today @ 09:16 CET

Ballots cast in the Moldovan parliamentary elections on 28 November are being recounted after the constitutional court accepted a complaint filed on 6 December by the Communist Party of Moldova.

Vladimir Voronin, Communist party leader and a former president, claimed there were "massive irregularities," such as multiple voting, even though international observers have called the voting largely fair and free. More than 300 monitors sent by the Organisation for Security and Cooperation in Europe (OSCE) supervised the election.

Behind the scenes politicians from various parties are trying to form a coalition. The Communists won 42 out of 101 seats in the Moldovan Parliament. Three parties from the governing pro-Western Alliance for European Integration (AIE) won 59 seats, higher than they received in the July 2009 polls but two short of the 61 needed to elect a new president.

Prime Minister Vlad Filat's Liberal Democratic Party ran second with 32 seats, followed by the Democratic Party with 15 and the Liberal Party with 12. One party from the four-party coalition, the Our Moldova Alliance, failed to pick up the five percent needed to enter the new legislature.

The Communist Party has adopted obstructionist tactics since it lost its parliamentary majority in the July 2009 elections. It boycotted the legislature and refused to participate in efforts to elect a successor to Mr Voronin.

Intense negotiations are now taking place behind the scenes between the winning parties, with leftist politician Marian Lupu being courted by pro-Western and Communist leaders alike.

The three Alliance partners – Filat's Liberal Democratic Party, the Democratic Party and the Liberal Party of acting president Mihai Ghimpu – are currently set on building a new coalition, which might seek to buy over possible defectors from the Communists in order to reach the threshold of 61 votes.

Besides Mr Filat and Mr Voronin, one important potential presidential candidate is Mr Lupu, the leader of the Democratic Party, who could benefit from Moscow's discreet backing.

Some observers do not rule out the possibility of a last-minute alliance between Marian Lupu's Democratic Party and Vladimir Voronin's Communists. It was only Mr Voronin's personal dislike for the person of Mr Lupu, a former defector from the Communist party and a rival in getting Moscow's ear, that prevented this so far, but a discreet intervention from the Kremlin would certainly facilitate a speedy reconciliation.

This intervention seems to have taken place already, with the chief of the Russian presidential administration, Sergey Nariskin, travelling to Chisinau last week. He promised a reduction in the price of Russian gas and other commercial facilities in exchange for an alliance between the Communists and Mr Lupu's party.

In this case, the new alliance would get 57 seats in parliament, after which they could try to oust four opposition deputies in order to obtain the quorum for the nomination of the future president.

Russia to intensify its mediation on the Karabakh conflict settlement process http://www.armradio.am/news/?part=pol&id=18829

13.12.2010 10:36According to the statement signed in Astana, Russia will intensify its mediation efforts to resolve the Nagorno-Karabakh conflict, Russian ambassador to Azerbaijan Vladimir Dorokhin told reporters on Sunday.

According to the ambassador, the latest meeting of the foreign ministers of Azerbaijan, Armenia and Russia was another opportunity to determine possible joint steps to resolve the Nagorno-Karabakh conflict, after the summit in Astana.

The Ambassador stated that Russia’s position on solution to Nagorno Karabakh conflict is clear to the parties: “Russia takes steps for just solution to the conflict”.

December 13, 2010 11:12

Russia has installed latest set of anti-ship missiles on border with Azerbaijanhttp://abc.az/eng/news/main/50111.html

Baku, Fineko/abc.az. The Russian government has started realising its threat on installation of tactical and strategic missile systems of various types of bases on its southern flank in response to the creation of tactical missile defense by the United States and NATO.

According to Russian sources, a separate coastal missile division of the Caspian Flotilla of Russia, equipped with such latest anti-ship missiles as Ball with a range of 130 km, deployed in Dagestan, near the town of Izberbash. According to sources, deploying of anti-ship missiles in Dagestan is in full accordance with Russian Navy High Command’s plans on bringing the Caspian flotilla in line with the new image.

Range of Ball complex actually covers the capital of Azerbaijan, Baku city. It should be noted that Russia is also deploying along the border with NATO the Iskander missile system capable of carrying nuclear warheads, and began replacing single-warhead nuclear missiles Topol-M with the newest mobile-based nuclear missile systems RS-24 Yars with separating warheads.

Russia vows 'to share responsibility' over Europe missile shieldhttp://en.rian.ru/russia/20101213/161751524.html

11:20 13/12/2010

Russia is ready to share responsibility in creating the joint missile defense shield in Europe, Russian Defense Minister Anatoly Serdyukov said on Monday.

"We have proposed to share responsibility and Russia is ready to act in some part and take on anti-missile defense responsibility," Serdyukov told Vesti 24 news television channel.

Russian President Dmitry Medvedev warned in his state of the nation address on November 30 that if talks on the missile defense failed within a decade "a new round of arms race will start" and Russia will "have to adopt decisions on the deployment of new strategic weapons."

Medvedev also said that Russia was ready to participate in a joint missile defense shield in Europe "on principles of equality and responsibility." Russia and NATO agreed at a recent NATO-Russia summit in Lisbon to formulate terms for missile defense cooperation by June 2011.

Echoing the Russian president's statement, Serdyukov said: "This will suit us. And no doubt it will relieve our certain concerns of against who it is really aimed at."

The defense minister also voiced hope that the Russian proposals will be approved. "They [proposals] are very weighted and as I think advantageous for Russia and NATO," he said.

Serdyukov also said that the joint anti-missile defense shield will "minimize" both financial and military expenses and "relieve" all Russia's concerns.

At the same time the minister said Russia will have to take countermeasures if the talks on building the joint shield in Europe failed.

"Anyway, we must work out a system that can overcome the European missile defense shield and naturally not decrease the potential of the Russian nuclear forces," Serdyukov said.

However, he raised hope that the sides will come to an agreement and Russia will not need to take the measures to counter the new threats.

Speaking on the recent WikiLeaks publications alleging that NATO still treated Russia as a potential enemy, the minister said Russia hoped that this information "is not true to fact."

The latest batch of U.S. embassy cables released by WikiLeaks showed NATO drew up plans in January to defend the Baltic states of Estonia, Latvia and Lithuania against any possible attack by Russia.

"We understand that any troop deployment near the Russian borders undoubtedly raises concerns... Correspondingly, we will be forced to take some measures adequate to those taken by any country or a bloc as a whole in this case," Serdyukov said.

Meanwhile, the minister stressed that at the Lisbon summit, NATO approved a strategic concept which said that the bloc does not see Russia as an enemy, but as a partner of strategic importance.

"We look at this document with optimism and believe that our relations will develop in a positive manner," Serdyukov said.

MOSCOW, December 13 (RIA Novosti)

Russia will react appropriately to appearance of NATO troops near its borders – Serdyukovhttp://www.interfax.com/newsinf.asp?id=208654

MOSCOW. Dec 13 (Interfax-AVN) - Russian Defense Minister Anatoly Serdyukov believes that the information published on WikiLeaks stating that NATO is considering moving its troops to the Russian border to protect Poland and the Baltic states is not true.

"We are still hoping that these publications are not true and we of course would like it to be so, although we understand that any placement of troops near the Russian borders will no doubt concern us and we will be forced to take measures to counter actions taken by this or that side, or NATO in general in this case," Serdyukov said in an interview with the television channel Rossiya 24.

"No doubt, it does not make us happy, and of course if it happens we will have to react to it somehow," Serdyukov said.

Serdyukov said he is hoping for an official refutation from NATO on the WikiLeaks publication.

"We would like some refutation of this," Serdyukov said.

"We are now working on evaluating threats, including in the sphere of missile defense. This issue may arise too," he said.

"We are realistic and of course we have no illusion," Serdyukov said.

"I spoke about the August events at the very beginning. After those events all our illusions evaporated. For this reason, we are calm and will react appropriately," he said.

av mj

13.12.10 10:08Serdyukov: if Russia is not part of the European missile defense, it will create a system that overcomes this defensehttp://www.interfax-russia.ru/main.asp?id=197092

GOOGLE TRANSLATION

December 13. Interfax-Russia.ru - Russia will take a number of measures, including military, if not included in the process of creating a European missile defense, said Russian Defense Minister Anatoly Serdyukov."If, nevertheless, to be decided that we are not participants in this system (EUROPRO),

then we will have to respond, we must consider how we should behave in a military point of view, that is a drag for an even a range of activities that we should do "- he said in an interview," Russia 24 ".Responding to questions, the region in which Russia will strengthen its grouping of troops in response to the deployment of European missile defense, Anatoly Serdyukov said: "In Kaliningrad, it will either be in another part of the Russian Federation, but in any case we will have to work out a system that can to overcome the European missile defense and, of course, not to reduce the potential of nuclear forces of the Russian Federation. "

Russia axes new aircraft carriershttp://www.edmontonjournal.com/technology/Russia+axes+aircraft+carriers/3962946/story.html By Dmitry Zaks, Agence France-Presse December 11, 2010  The Russian military admitted Friday that it lacked the funds to deploy a powerful new armada of aircraft carriers as promised and that no more would be built for at least another decade.

"The state armaments program for 2011-2020 does not envision the construction of aircraft carriers," an unnamed senior official in Russia's defence ministry told the Interfax news agency.

He said current funding plans allowed the military to come up with new designs but not proceed with actual construction.

"Only then -- after completing the advanced designs -- can we examine the expediency of building aircraft carriers," the official said.

The comments represent a rare public admission that the military was struggling to keep up with President Dmitry Medvedev's commitment to modernize an outdated Soviet-era force that has lost its dominance on the high seas.

The Interfax dispatch seemed to produce initial confusion among the top commanders. It was denied by one unnamed official and received with blanket silence by the defence ministry itself.

But Defence Minister Anatoly Serdyukov later conceded the Interfax report was true.

"No, there are no plans" to build carriers by 2020, Serdyukov told the state-run RIA Novosti news agency.

The Soviet Union had five aircraft carriers at the height of its power but Russia currently only has one, the Admiral Kuznetsov.

This compares to the 11 operational and six reserve aircraft carriers of the United States, with another three under construction, according to the U.S. Congressional Research Service.

Medvedev made his country's reemergence as a naval power one of the planks of a new military policy that he announced with much fanfare in 2008.

Navy commander Admiral Vladimir Vysotsky said that same year that Russia intended to build six new aircraft carriers -- three each for its Pacific and Northern Fleets.

Various commanders at the same time suggested Russia may expand its naval presence to the Red Sea and perhaps even deploy a new base in Libya.

Lavrov, Pak Ui-chun to take up ways to resume six-way talkshttp://english.ruvr.ru/2010/12/13/36710935.html

Dec 13, 2010 09:44 Moscow TimeThe Russian and North Korean Foreign Ministers, Sergei Lavrov and Pak Ui-chun, are due to take up ways to resume the six-ways talks on the Korean Peninsula’s nuclear problems in Moscow today. Moscow is consulting its partners in the group of six on the tense situation on the Korean Peninsula. Last week Deputy Russian Foreign Minister Alexei Borodavkin met the General-Director of the Japanese Foreign Ministry Asia Department Akitaka Saiki. The Deputy South Korean Foreign Minister Vee Song-nak is expected to arrive in Moscow in the middle of this month. 

N.Korea Sends Top Diplomat to Russiahttp://english.chosun.com/site/data/html_dir/2010/12/13/2010121300300.html

North Korea says it has sent its top diplomat to Russia, amid a flurry of attempts to ease tensions on the Korean Peninsula.

The North's state Korean Central News Agency said in a one-sentence dispatch that Foreign Minister Pak Ui-Chun departed for Moscow. The article provided no further details.

Pak told Russia's Interfax news agency Friday that Pyongyang felt justified in building a nuclear defense to ward off threats from South Korea and the U.S., which he accused of conducting a policy of hostility and confrontation.

Russia is a member of the six nations attempting to bring a halt to North Korea's nuclear program. The six-party talks also include the two Koreas, China, Japan and the United States.

VOA News / Dec. 13, 2010 07:26 KST

South Korea’s Envoy to Six-Party Nuclear Talks to Visit Russia http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a67JpzjJhz1M

By Bomi Lim

Dec. 13 (Bloomberg) -- South Korea’s chief envoy to multilateral talks on North Korea’s nuclear weapons programs will visit Russia this week to discuss the tensions prompted by the North’s artillery attack last month.

Wi Sung Lac’s trip comes as North Korean Foreign Minister Pak Ui Chun also visits Russia. Wi is scheduled to meet his Russian counterparts on Dec. 15, a foreign ministry official in Seoul said, speaking on condition of anonymity.

North Korea’s Nov. 23 deadly shelling of a South Korean island in disputed waters was followed by separate U.S. military drills with the South and Japan. China has resisted U.S. pressure to use its influence as the North’s only ally to push Kim Jong Il’s regime to change its behavior. Kim met Chinese State Councilor Dai Bingguo on Dec. 9 in Pyongyang and “reached important consensus,” China’s Foreign Ministry said on its website.

China’s proposal for “emergency” talks with countries involved in North Korea disarmament negotiations has been rejected by South Korea, Japan and the U.S. Russia, which also takes part in the six-party talks, hasn’t taken a position. The forum last met in December 2008.

In the meeting with Dai, Kim expressed willingness to accept China’s suggestion for dialogue, Yonhap News reported late yesterday, citing South Korean diplomats it didn’t identify. Chinese Foreign Minister Yang Jiechi said his country is “working hard” to ease tensions in the region, the China Daily reported today, citing a Dec. 10 interview.

To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.net

To contact the editor responsible for this story: Bill Austin at billaustin@bloomberg.net

Last Updated: December 12, 2010 20:16 EST

December 10, 2010

Pak Ui-Chun: U.S., South Korea are behind escalation on Korean Peninsulahttp://www.interfax.com/interview.asp?id=208490

Foreign Minister of the Democratic People’s Republic of Korea Pak Ui-Chun in an interview with Interfax speaks about Pyongyang’s vision of the current situation on the Korean peninsula and has offered an assessment of Russian-North Korean cooperation in political and economic issues in the run-up to his visit to Russia.

Question: Mr. Minister, how do you assess the present-day level of political cooperation between the Democratic People’s Republic of Korea and Russia?Answer: The agenda for my visit to the Russian Federation, due to take place on December 12-15 at the invitation of the Russian side, includes negotiations with the foreign minister of Russia, Mr. Lavrov, on issues surrounding bilateral relations and crucial international problems, as well as the signing of plans for exchanges between the Foreign Ministries of the two countries for 2011-2012.I should say that today Korean-Russian relations continue developing positively in politics, the economy, culture and a wide variety of other spheres in the spirit of joint documents signed at the highest level since the start of the new millennium.This year, which marks the 10th anniversary since the signing of the treaty on friendship, good neighborly relations and cooperation between the DPRK and Russia, the tenth anniversary since the publication of the joint Korean-Russian declaration, as well as the 65th anniversary of Korea’s liberation, has seen a vigorous exchange of delegations in various spheres.I am speaking about the visit to our country by the Russian regional development minister, who serves as Russia’s co-chairman of the intergovernmental commission for trade, economic, scientific and technological cooperation, as well as the visit to Russia by the land and environment preservation minister of the DPRK.Mutual trips paid by DPRK citizens and residents of Russia’s Far East, Primorye and Khabarovsk territories are more active than ever.Our great leader Comrade Kim Jong-Il and employees of the Russian Embassy watched the Eugene Onegin opera performed by our actors in February 2010 on the occasion of the 10th anniversary since the signing of the interstate treaty, as well as the joint May 1 concert given by artists from the two countries.Our countries vigorously cooperate in the international arena as well.Q.: What are the prospects for economic cooperation between Russia and the DPRK?A.: In my opinion, it is highly important to strengthen the economic component of our relations.The Democratic Republic of Korea, as a neighboring friendly state sharing a border with Russia, is particularly interested in promoting interregional cooperation.I am glad that our countries actively cooperate in various sectors of the economy, including construction, the timber industry, the fisheries sector and agriculture.Our agenda includes a series of promising and large-scale business projects.A.: What is happening to the project of Trans-Siberian railroad and Trans-Korean railroad?Q.: The Rajin-Khasan railway section and Rajin Port are being reconstructed as part of the first stage of a large-scale project aimed at connecting the Trans-Siberian Railway and the Trans-Korean Railway.

I think that the practical results of our bilateral cooperation in the rail transport sector will have a positive impact on measures to expand bilateral economic ties as a whole and to boost interregional cooperation.At the current stage, it is necessary to speed up the reconstruction of the Rajin-Khasan railway section and Rajin Port as much as possible in compliance with earlier achieved agreements.We have consistently supported the further strengthening and development of friendship and cooperation through joint efforts by the two countries, which meets the core interests of our countries’ people and contributes to peace and prosperity in the region.Q.: Are the DPRK armed forces ready to launch one more strike on military facilities of South Korea and the United States? If they are, then under what conditions? Is the DPRK ready to discuss the escalation of tensions on the Korean peninsula at the six-party talks?A.: We think that it is necessary to take the right approach toward today’s acute military-political situation on the Korean peninsula.Recently the situation on the Korean peninsula has been in quite a dangerous stage, while inter-Korean relations are worse than ever.All this poses a serious threat to peace and security both on the Korean peninsula, Northeast Asia and the world as a whole.The main reason behind this escalation is the United States’ hostile policy in relation to the DPRK and the policy of confrontation with the North being pursued by the current ruling forces of South Korea.The U.S., having included the DPRK in the list of targets of a nuclear preventive strike, is pursuing a policy aimed at isolating and strangling it, while the ruling conservatives of South Korea, who are oriented toward external forces, have rejected all of the earlier reached inter-Korean agreements and are waging a campaign of confrontation with the Democratic People’s Republic of Korea.What is noteworthy is that recently the U.S., seeking to establish its military dominance in Northeast Asia and the Asia-Pacific region, has decided to reinforce the military triangle with Japan and South Korea, has intentionally been fueling tensions on the Korean peninsula, and has fiercely been conducting unprecedented large-scale nuclear military exercises.Following the U.S., South Korea has staged serious military provocations, holding large-scale military maneuvers one after the other.As for the artillery shelling that occurred near Yeonpyeong Island on November 23, this was the result of ill-considered and simultaneously systematic measures to unleash war on the part of South Korea’s belligerent forces, who, unsettling us from a military standpoint, seek to provoke an armed confrontation and to use it as a pretext to spark the flames of war. Like a thief, South Korea is shouting “Catch the Thief!”, falling all over itself to mislead the international community. Nevertheless, as it has already been announced in a press report of the Supreme Command of the Korean People’s Army and a press statement issued by a representative of the DPRK Foreign Ministry, during this incident we took resolute measures exclusively out of self defense and all of the required defense measures in response to the thoughtless military provocations staged by South Korean puppets, who were the first to open artillery fire in our territorial waters.

We think that until the U.S. and South Korea abandon their hostile and confrontational policy toward the DPRK, it will never be possible to allay tensions on the Korean peninsula.We once again saw the rightness of our choice in favor of the Songun policy and the comprehensive strengthening of our self-defense potential based on nuclear deterrence forces.Q.: In your opinion what are prospects for resuming six-party talks on the Korean peninsula problem? What preconditions are required for this?A.: The denuclearization of the Korean peninsula is the goal set by our great leader Comrade Kim Il-Sung.Securing lasting peace is our unchanged position.Even amid the present-day atmosphere of extremely escalated tensions on the Korean peninsula, we would like to express our support for the resumption of the six-sided negotiating process based on the principles of respect for sovereignty and equality, as well as the “action-for-action” principle, envisioned in the joint statement dated September 19. We also came up with an initiative to conclude a peace treaty in order to establish a peace support system on the Korean peninsula.Nevertheless, the U.S. is opposed to the resumption of this dialogue, having chosen to keep silent on our peace treaty proposal and to strengthen its policy to strangle and isolate the DPRK.All of the countries involved that are concerned about the settlement of Korean peninsula problems should understand clearly who stands behind this escalation of tensions on the Korean peninsula and should take a position of responsibility.

Russia: Dialogue only solution to Lebanese crisishttp://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=2&article_id=122472#axzz17y8v2wYg

By The Daily Star

Monday, December 13, 2010

BEIRUT: Russian Deputy Foreign Minister Alexander Sultanov said Lebanon’s political impasse can only be solved through dialogue, while ruling out a Russian initiative to put an end to the crisis.

Sultanov held separate talks Saturday with President Michel Suleiman, Speaker Nabih Berri, Prime Minister Saad Hariri, Foreign Minister Ali al-Shami and head of Hizbullah’s parliamentary bloc MP Mohammad Raad.

Speaking at Berri’s residence in the southern town of Msaileh, Sultanov stressed Russia’s “support for stability in Lebanon and the key role of constitutional institutions. “Moscow is confident problematic issues can only be resolved through national dialogue and consensus among all political parties,” he said.

Russian diplomat and Berri discussed the bilateral ties between the two countries and the role of their Parliaments in boosting Russian-Lebanese cooperation in the military and technical fields.

“This is certainly necessary for a prosperous future for the Lebanese people and Lebanon, which plays a key role in the region,” Sultanov added, while ruling out the existence of a Russian initiative to solve the crisis in Lebanon.

“We don’t interfere in the domestic affairs of any country, and no one has asked us for initiatives to find solutions to problematic issues,” he said. “This is the business of the Lebanese and we can only support the political will, without interfering,” he said.

As to Russia’s concerns over a possible deterioration of the situations in Lebanon, Sultanov said that Moscow was concerned with the developments in Lebanon, saying it will impact the whole region.

Tensions have mounted in Lebanon over the indictment to be issued by the Special Tribunal for Lebanon (STL), probing the assassination of former Prime Minister Rafik Hariri.

Earlier Saturday, Sultanov held talks with Prime Minister Hariri in downtown Beirut. “Our meetings [in Lebanon] aim at pursuing the contacts between the leaderships of both our countries, after the visits of President Michel Sleiman and Prime Minister Saad Hariri to Moscow and the talks they held with Russian President Dmitry Medvedev and Prime Minister Vladimir Putin,” Sultanov told reporters. “The meetings gave a boost to bilateral ties.”

Following his meeting with President Sleiman at the Baabda Palace, Sultanov said that work was under way to put the Russian pledges earmarked for Lebanon, especially military ones, into practice.

He also stressed that Russia will continue to support Lebanese state institutions. – The Daily Star

India to extend ties with Russia in defence, nuclear sphereshttp://www.thehindu.com/news/national/article948540.ece

NEW DELHI, December 13, 2010

Medvedev to visit India on December 21

India and Russia are likely to sign half-a-dozen agreements, including a long-pending one on co-developing and producing a Fifth Generation Fighter Aircraft (FGFA), during Russian President Dmitry Medvedev's two-day visit beginning December 21.

Another important agreement will be in the civil nuclear sphere where both sides will seek to fill in more details to the umbrella agreement signed during Prime Minister Manmohan Singh's visit to Moscow in December last year. India is willing to shift the Russian nuclear site from West Bengal and a concrete offer in this respect will be made during the visit.

The two sides are also expected to ink pacts in space and trade, the two areas where they have made tentative beginnings but want substantial cooperation to take place. Going by past trends, summit meetings help iron out many wrinkles that officials from both sides are unable to solve.

In particular, Russia will be seeking to address the hesitation by its banks to get involved in a big way. A mega diamond company Alrosa has already entered into deals with Indian companies and is looking to take the partnership forward.

Pharma sector

From the Indian side, there is great interest in developing a long-term partnership in the pharmaceuticals sector. New Delhi is prepared to help reduce Russian dependence on imported drugs through joint ventures. But the entry of its companies has so far been on hold due to Russian reservations on doing away with clinical trials.

Delegations from both sides are also slated to hold discussions on greater cooperation in the oil sector. India is interested in getting a stake in Trebs and Titov oil fields where the participation of its companies has been stymied by tender conditions.

Besides these two fields, the Oil and Natural Gas Commission is also keen on taking forward its plans to get involved in the Bashkortostan gas field.

Reliance is interested in setting up a refinery in Russia, a move that could help it get a foothold in the Russian strategic oil and gas reserves that are being thrown open for commercial exploitation.

Fighter aircraft deal

Indian security concerns over its depleting fighter aircraft fleet will be reduced to some extent if both sides manage to ink the FGFA deal. Over time, at least 250 advanced fighters will be inducted into the Indian Air Force as a result of the agreement. Both sides have already agreed to jointly develop and produce military transport planes.

Mr. Medvedev and Dr. Singh will also discuss the regional situation including Afghanistan where both sides are keen to avoid a situation that foists a fundamentalist,

theocratic regime in Kabul. India will seek to address Russian reservations on the TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline in this context and explain that economic development of Afghanistan, especially in Pashtun areas, would get a boost.

Medvedev visit: Nuclear, defence, economy key issues on agendahttp://www.expressindia.com/latest-news/Medvedev-visit--Nuclear--defence--economy-key-issues-on-agenda/723681/

Agencies

Posted: Dec 12, 2010 at 1541 hrs IST

New Delhi India and Russia are set to push their relations in nuclear, defence and various other areas to newer levels during the upcoming visit of President Dmitry Medvedev when the two sides are expected to sign at least eight agreements.

Enhancing economic component of bilateral relations, which has remained well below the potential, will be the focus of the two-day visit beginning on December 21.

Medvedev, who will be here for the annual India-Russia Summit, will hold talks with Prime Minister Manmohan Singh on a range of issues covering bilateral and regional matters like situation in Afghanistan and Pakistan and global issues of mutual interest.

During the visit, the two sides are expected to sign eight agreements in various areas, including civil nuclear, defence, space and trade.

In the civil nuclear field, the two leaders are expected to discuss ways to carry forward their cooperation beyond the building of atomic plants in India.

In this context, cooperation in research and other aspects would be on the agenda and a couple of agreements are likely to be signed in this regard, sources said.

Earlier, the first unit of Kudankulam nuclear plant in Tamil Nadu was expected to be commissioned duing Medvedev's visit but that is not going to happen as certain procedural matters are yet to be worked out, the sources said.

The 1000 MW unit, being constructed for the last three years, is one of the four such units in Kudankulam to be built

through collaboration with Russia.

India has also earmarked a site in Haripur in West Bengal for a nuclear plant to be constructed with Russian collaboration. This project, however, is facing stiff resistance

from the local people. As a result, an alternate site, including in Orissa, is being identified where Russian nuclear plant could be .

In the military field, the two sides are at an advanced stage of negotiations for a contract for joint of 5th generation fighters and it could be signed during the visit. First of such fighters, to be designed in India, could roll out by 2018.

During the visit, the two sides are also expected to discuss the upgradation of MiG-29 and Sukhoi fighter aircraft.

The main focus of the visit will, however, be economy.

Despite healthy political relations, bilateral trade between India and Russia is still as low as USD 8 billion and both sides are determined to push it to USD 20 billion by 2015.

The sources said the reason for low bilateral trade is that the private sector on both sides has not been engaging much. Realising this, the two sides have identified IT, pharma, diamonds and investments as the sectors in which the private sector could be involved to much greater extent. The two countries are also discussing greater engagement in the hydrocarbon sector.

In this area, India has invested five billion dollars in Sakhalin-I and is now eyeing the Sakhalin-III oil and gas project in eastern Siberia.

India has conveyed its interest for exploration and development of Sakhalin-III and the two sides have been discussing the possibility of forming a joint venture between ONGC Videsh Ltd (OVL) and Russia's Rosneft.

Singh and Medvedev are also expected to discuss ways to counter the threat of terrorism, emanating from Pakistan and Afghanistan and of which both the countries are victims.

Reform of the United Nations, including the Security Council, and other global institutions would also be on the agenda of talks between the two leaders.

Medvedev will also travel to Mumbai. He last visited India in December 2008.

Nuclear, defence fields top agenda for talks with Russian Presidenthttp://www.asiantribune.com/news/2010/12/13/nuclear-defence-fields-top-agenda-talks-russian-president

Mon, 2010-12-13 14:56 — editor

From R. Vasudevan - Reporting from New Delhi New Delhi, 13 December (Asiantribune.com):

India and Russia are set to push their relations in nuclear, defence and various other areas to newer levels during the upcoming visit of President Dmitry Medvedev when the two sides are expected to sign at least eight agreements.

Enhancing economic component of bilateral relations, which has remained well below the potential, will be the focus of the two-day visit beginning on December 21.

Medvedev, who will be in New Delhi for the annual India-Russia Summit, will hold talks with Prime Minister Manmohan Singh on a range of issues covering bilateral and regional matters like situation in Afghanistan and Pakistan and global issues of mutual interest. During the visit, the two sides are expected to sign eight agreements in various areas, including civil nuclear, defence, space and trade.

In the civil nuclear field, the two leaders are expected to discuss ways to carry forward their cooperation beyond the building of atomic plants in India. In this context, cooperation in research and other aspects would be on the agenda and a couple of agreements are likely to be signed in this regard, sources said.

Earlier, the first unit of Kudankulam nuclear plant in Tamil Nadu was expected to be commissioned duing Medvedev's visit but that is not going to happen as certain procedural matters are yet to be worked out. The 1000 MW unit, being constructed for the last three years, is one of the four such units in Kudankulam to be built through collaboration with Russia.

India has also earmarked a site in Haripur in West Bengal for a nuclear plant to be constructed with Russian collaboration. This project, however, is facing stiff resistance from the local people. As a result, an alternate site, including in Orissa, is being identified where Russian nuclear plant could be built.

In the military field, the two sides are at an advanced stage of negotiations for a contract for joint production of 5th generation fighters and it could be signed during the visit. First of such fighters, to be designed in India, could roll out by 2018. During the visit, the two sides are also expected to discuss the upgradation of MiG-29 and Sukhoi fighter aircraft. The main focus of the visit will, however, be economy. Despite healthy political relations, bilateral trade between India and Russia is still as low as USD 8 billion and both sides are determined to push it to US$ 20 billion by 2015.

Medvedev will also travel to Mumbai. He last visited India in December 2008.

- Asian Tribune -

Work on BrahMos supersonic missile over, trials to waithttp://www.expressindia.com/latest-news/Work-on-BrahMos-supersonic-missile-over--trials-to-wait/723685/

Agencies

Posted: Dec 12, 2010 at 1606 hrs IST

Moscow BrahMos Aerospace, an Indo-Russian joint venture, has completed the work on aerial and underwater versions of a supersonic cruise missile, but the test-fire of the two variants is held up for the time being in the absence of platforms for trials.

The test-fire of underwater version of the missile will take place early next year while the trial of air-borne variant is likely to be held in 2012, BrahMos Aerospace said.

Alexander Leonov, Director General of NPO Mashinostroyenia which is the Russian partner of the joint venture, said work on both aerial and submarine versions of the missile has been completed and they are ready for trial.

He said BrahMos scientists are now waiting for the Su-30MKI aircraft to be provided by Indian Air Force to act as a platform for testing the aerial version while a specially designed submerged vehicle will be used for trial of the submarine version.

In the absence of a specially designed submarine to conduct the test, a submerged platform will be used for carrying out the trial of underwater version of the missile.

Marketing Director of Brahmos Praveen Pathak said IAF has already identified two Sukhoi 30 fighter jets for testing the aerial version, which is set to take place in 2012. He said induction of the missile into the IAF is likely to begin in 2013.

"As per our estimate, we will be able to complete by end of 2012 all the development trials of airbrone version and induction should start by 2013," said Pathak.

Leonov said Indian Navy only wants to integrate the missile on Indian manufactured submarines, which is why test has to be carried out from a specially designed submerged vehicle.

"As far as I know the submarines where the missiles are likely to be integrated will be manufactured in India. The missile is ready for installations," he said.

The 290-km range missile, which can carry a conventional warhead of up to 300 kg, is already in service with the Navy as its Shivalik class frigates have been equipped with it.

BrahMos has also been inducted into the Army. The missile can fly at 2.8 times the speed of sound.

One regiment of the BrahMos I variant, consisting of 67 missiles, five mobile autonomous launchers on 12x12 'Tatra' vehicles and two mobile command posts, among other equipment, is already operational in the Army.

India and Russia have so far invested 300 million dollars in BrahMos Aerospace, which was established to design, develop, produce and market the missile by using the technological skills and capabilities of both countries.

Pathak said several countries have shown interest in buying the missile and negotiations are currently underway with them. "We have got applications from various countries. Negotiations are currently going on with them," he said.

Lenov said BrahMos Aerospace is also planning to develop a hypersonic version of the missile to be called BrahMos-II which may have speed in the range of 5 to 7 Mach to make it the fastest cruise missile in the world. "The combination of (India's) requirement and achivable level of speed will determine the future configuration," he said.

Krishna temple to be built on Moscow outskirtshttp://www.dailyindia.com/show/413877.php

From ANI

Nevada (US), Dec 13: A new Krishna temple is being planned on the northern outskirts of Russia’s capital Moscow, after authorities allocated a plot for it, according to reports.Reports suggest that construction on this temple in Vereskino village on Novoskhodnenskoye Highway will begin by December 31, 2012. This is the outcome of petitioning and efforts by International Society for Krishna Consciousness (ISKCON) and other Hindu community and India Government which began as far back as 1991 and saw many ups and downs. Architectural design has reportedly been already approved and the project will be finalized and construction permission obtained in 2011.Project will reportedly combine classical Indian temple design with modern technologies. Besides a spacious sanctuary for worship, this temple complex is proposed to include an Ayurvedic hospital, center for social programs, auditorium, accommodation for devotees/pilgrims, etc.Meanwhile, well known Hindu statesman Rajan Zed, in a statement in Nevada (USA) today, applauded efforts of ISKCON and other Hindu community and India Government to realize this wonderful proposed Krishna temple complex.Rajan Zed, who is President of Universal Society of Hinduism, further said that it was important to pass on Hindu spirituality, concepts and traditions to coming generations amidst so many distractions in the consumerist society and hoped that this new temple complex would focus in this direction. He stressed that instead of running after materialism; we should focus on inner search and realization of self and work towards achieving moksh (liberation), which was

the goal of Hinduism.Lord Krishna is the eighth avatar (incarnation) of Lord Vishnu and subject of major Hindu scriptures such as the Bhagavad-Gita (Song of the Lord) and Bhagavad-Purana. Hinduism, oldest and third largest religion of the world, has about one billion adherents.Copyright Asian News International/DailyIndia.com

Putin to hold meeting on state armament programhttp://en.rian.ru/russia/20101213/161749978.html

07:43 13/12/2010

Russian Prime Minister Vladimir Putin will on Monday travel to the city of Severodvinsk in northeast European Russia to hold a meeting on the state armament program for 2011-2020.

The program will become a basis for the new profile of the Russian armed forces and their transition to modern armaments and military hardware, the government said.

Putin will also visit the Sevmash shipbuilding company, the country's only nuclear submarine manufacturer.

MOSCOW, December 13 (RIA Novosti)

09:48Putin will answer questions from viewers, listeners on Dec 16 live show

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

Putin takes a fast ride homehttp://www.euronews.net/2010/12/13/putin-takes-a-fast-ride-home/

13/12 04:43 CET

Russian Prime Minister Vladimir Putin and Finnish President Tarja Halonen have been among the first passengers to board a new high-speed train.

The French-made “Allegro” is a fast inter-city link between Helsinki and St. Petersburg.

The two leaders met at the border town of Vyborg before travelling together in a VIP carriage to Russia’s second city.

The 450-kilometre connection will cut the normal six hour journey time by over two hours. It is one of only two Russian high-speed links after the construction of a line between Saint Petersburg and Moscow.

And it could come at a more opportune moment as Vladimir Putin revealed several more express lines were being planned to serve the 13 Russian cities which will host the 2018 World Cup.

Copyright © 2010 euronews

12 december 18:39

Prime Minister Vladimir Putin and Finnish President Tarja Halonen arrive in St Petersburg on the new Allegro high-speed train

http://premier.gov.ru/eng/events/news/13372/

The Allegro high-speed express train made its first trip today from Helsinki to St Petersburg, arriving at Finland Station on schedule at 16:50 Moscow Time.

Upon arriving in St. Petersburg, Vladimir Putin and Tarja Halonen shared their impressions of the trip with reporters.

Responding to a question about how he liked the new train, Mr Putin said, "Very much! Over 200 kilometres per hour – that is seriously fast! We didn't even have time to have a proper conversation."

Asked what the leaders discussed, Mr Putin replied, "We talked about how to promote cooperation in the border region, Vyborg, and how economic ties are developing – and not only economic ties but cultural ones as well."

Mr Putin also said that during the conversation the idea was raised "to restore one of the old buildings in Vyborg from before 1939-1940 and make it a joint Russian-Finnish Cultural Centre."

In turn, Ms Halonen said in Russian: "Vsyo v poryadke." (Everything is alright.)

Then Mr Putin and Ms Halonen explored an exhibition on the Allegro project.

During their tour of the exhibition, Mr Putin asked the head of Russian Railways, Vladimir Yakunin, how much a trip on this train would cost. Mr Yakunin said that the price will be 15% lower than an airline tickets. A first-class ticked will cost 134 euros.

Ms Halonen, in turn, noted the interest travellers have already shown in the new Allegro train. All the seats have already been sold for the Christmas and New Year's holidays.

During their tour of the exhibition, Mr Putin also said that there would be high-speed service between Moscow, Kazan, Samara and Ulyanovsk to transport fans during the 2018 World Cup.

"There is an idea to base the programme to build high-speed trains around World Cup destinations," said Mr Putin.

He said that there are already high-speed rail links between Moscow and St Petersburg and Moscow and Nizhny Novgorod. Now Russia will have to build high-speed rail links with Kazan, Samara and Ulyanovsk.

"It will be a powerful impetus for the development of high-speed rail in the European part of Russia," said Mr Putin.

12 december 17:03

Vladimir Putin and Finnish President Tarja Halonen meet in Vyborg and depart for St Petersburg in the first Allegro high-speed express train, which brought Ms Halonen from Helsinki

http://premier.gov.ru/eng/events/news/13371/

The Finnish president's train, which opened high-speed rail service between St Petersburg and Helsinki, arrived from the Finnish capital at Vyborg station on schedule. Prime Minister Vladimir Putin met Tarja Halonen on the platform and presented her with flowers. He said that Russia has eagerly awaited the completion of the Allegro project and that he is glad that "everything has turned out as planned."

Ms Halonen, in turn, thanked Mr Putin for his cooperation on the project and noted that people in Finland are pleased to have a high-speed rail link between St Petersburg and Helsinki.

Then Mr Putin and Ms Halonen entered the renovated train station in Vyborg. Russian Railways President Vladimir Yakunin acknowledged the railroad workers who prepared for this event and restored the station. He also noted that despite the overall decline in rail traffic, the level of passenger traffic between Finland and Russia has remained consistently high.

After they had a look around the station, Mr Putin and Ms Halonen boarded the train and departed for St Petersburg.

The Allegro project was initiated following talks between Vladimir Putin and Tarja Halonen in May 2002. The new train will almost halve the travel time by train between St Petersburg and Helsinki – from the current six hours and 18 minutes to just over three and a half hours. The time savings will be achieved through the use of more advanced trains, as well as increased train speeds and expedited border procedures.

Allegro trains will travel 200 km per hour on Russian territory and 220 km per hour on Finnish territory.

The trains seat 344 passengers each, including 296 in second class and 48 in first class.

Vladimir Putin Sends Gifts to Gigintsi Monasteryhttp://paper.standartnews.com/en/article.php?d=2010-12-13&article=34952

Moscow will send frescoists to Bulgaria. They will paint for free the new church in Sts Kuzma and Damyan Monastery in the village of Gigintsi, southwestern Bulgaria. The Russian interest in the monastery is due to patron saint of the church - St Siluan of Athos. There is no other church on the Balkans bearing the name of the Russian saint. The painters will arrive in spring. They will be students and professors from the State Academy for Slav Cultures in Moscow and are expected to arrive along with an official delegation for the Bulgarian National Holiday - March 3 when Bulgaria celebrates liberation from the Ottoman rule. The monastery is planned to receive a considerable donation from the Russian Government and the PM, Vladimir Putin. The gifts were brought to the monastery yesterday. The monks talked with the Culture Issues Advisor with Russia’s Embassy, Sergey Foshkin and representative of the Russian Church in Bulgaria.  Both arrived in Gigintsi accompanied by Prof Zahari Zahariev, chairman of the Slaviani (Slavs) Foundation.  

Anna Georgieva

Medvedev to hold RF Security Council meeting on energy problems

http://www.itar-tass.com/eng/level2.html?NewsID=15772709&PageNum=0

13.12.2010, 00.38

MOSCOW, December 13 (Itar-Tass) -- Russian President Dmitry Medvedev will hold the last in this year meeting of the Russian Security Council on Monday. The Security Council meeting will be devoted to the state and measures to ensure energy security in the country, the Kremlin press service told Itar-Tass.

The president hopes that energy security is measured not only by cubic meters of gas and barrels of oil. “Today we promote actively the production of new knowledge and technologies, step up energy efficiency and seek to make the production of energy resources safer for the environment and their consumption more affordable for ordinary people,” Medvedev stated earlier. “During the post-crisis restoration the consumption of energy resources will keep growing, and the problem of ecological responsibility of some countries is becoming more topical” that sets the task to develop the production of new technologies.

Last summer the president instructed the government to develop a system of benefits for the companies that use alternative sources of energy. “Green (ecological – Itar-Tass) tariffs should appear,” he said with confidence.

Security Council session opens in Moscow http://english.ruvr.ru/2010/12/13/36710634.html

Dec 13, 2010 09:37 Moscow Time

President Dmitry Medvedev will preside over a Russian Security Council session that opens in Moscow on Monday, an event that the Kremlin press service said will focus on a raft of issues related to energy efficiency.

“Grappling with energy efficiency especially comes to the fore  now  that  the  world nations are still tackling the global economic crisis fallout”, Medvedev said, separately calling for privileges to be granted to those Russian companies, which use alternative sources of energy.

Christian radio almost extinct in Russiahttp://www.mnnonline.org/article/15078

Posted: 13 December, 2010

Russia (MNN) ― Religious freedom took another hit in Russia last week. One of the last remaining local Christian radio stations was shuttered by authorities.

Dan Johnson with New Life Radio Moscow says their Norilsk FM affiliate, located in Siberia, was the target. "This is the third radio affiliate we've had that's been shut down by the government under a variety of pretexts. The station in Norilsk was one of the few existing FM stations across the country."

Johnson says this isn't an isolated case. "We're just noticing a general decline in the ability of Christians to have access to the mass media in Russia. And for those existing Christian radio stations that are operating, they're facing all kinds of harassment by federal authorities."

New Life Radio is a satellite service designed to provide Christian radio programming to locally-owned radio station owners--stations that can't afford to hire radio staff.

Johnson says, "If local Christians could find a way to get access to a local radio channel, we would provide the equipment for them to get the signal into the town and retransmit it and then to use that as a tool for the local churches to attract listeners."

Pastor Mikail Dolgikh was able to do that in Norilsk. In fact, he was able to house the station at his regular job at the state-owned telecommunications building. Johnson says they started broadcasting in 2007. "The local security services were responsible for Mikail being fired at the state telecom building. So when Mikail got fired, they were forced to move the studio outside of that building."

Since they were off the air, authorities shut the station down.

Johnson says he now has to reapply for a license, but he isn't very hopeful he'll be granted a new license. "It's part of the spiritual warfare in Russia these days. All I can think is that Mikail probably lost his job because of his service to the Lord."

HCJB Global was responsible for helping to establish New Life Radio-Moscow and others when the Iron Curtain fell in the former Soviet Union. HCJB President and CEO Wayne Pederson says, "HCJB Global and others planted dozens of terrestrial community FM stations across Russia. As far as I know, there's only one such radio station left in Siberia, up in Tomsk, that's still broadcasting the Gospel. All of the others have been shut down by the political climate."

HCJB Global is still involved in radio, but through satellite. "The satellite that was launched is still sending programs direct to homes, schools, churches, prisons, and retirement homes, all across the 11 time zones of the former Soviet Union."

Pederson says HCJB is also featuring other programming. "We're streaming the same format on the internet. The use of internet streaming is growing, especially among the youth and especially among the major cities of Russia."

Christian radio in Russia isn't being abandoned, says Pederson. "We have received some grants to help our partners there in Russia to build a Web site and to stream their internet programming. We can continue to help them, even to help Dan Johnson at New Life Radio in Moscow."

Johnson says missionary media is something Christians need to invest in. "Russians love media, but there's practically no Christian content on the media. So we as Christians can

best help the Russian church in the area of media by supporting ministries like New Life Radio, that simply gives them a tool to reach their own people through radio."

13 December 2010, 10:38

Russian Church calls for prompt action to stop growing threat of ethnic clasheshttp://www.interfax-religion.com/?act=news&div=8010

Moscow, December 12, Interfax - Head of the synodal Department for Church and Society Relations Archpriest Vsevolod Chaplin has urged representatives of the authorities, expatriate communities and the local population to hold a dialogue on common rules of behavior in Russian cities.

"We should think in earnest once again about the authorities, diasporas and representatives of the local population getting together and thinking of common rules of behavior, of what can be done and what cannot be in our cities and villages," he told Interfax-Religion commenting on the Saturday actions of soccer fans against the murder of their friend by a person from the Caucasus.

The problem cannot be resolved "by traditional assurances that everything is alright," the clergyman said.

"The situation is very alarming and only prompt and serious action guaranteeing the peaceful coexistence of members of different ethnic groups can lead Russia away from the fatal verge of ethnic bloodshed. We are fated to live together and we must do everything for this," he said.

"The danger of such clashes in rapidly growing," Father Vsevolod said adding that he warned of such problems two weeks ago at the Moscow Civic Forum.

"The difference in cultures and lifestyles is becoming too saddening. I said then that the flame of clashes is burning too close to Moscow and that it can spread to the capital city soon. Yesterday it happened," he said.

"It must become apparent to the authorities and the public today that the old policy in the sphere of ethnic relations no can no longer be pursued," he said.

"There are two great dangers that may lead to great bloodshed," he said.

"The first is the audacious and pushy behavior of some members of ethnic communities and the criminal groups linked with them. This behavior is unacceptable for the overwhelming majority of our pubic and hence must be stopped," Father Vsevolod said.

"Any instances of the inaction of officials and law enforcement with regard to ethnic criminal groups is absolutely unthinkable. Any such instance should mean the end of a career forever," he said.

"I think that the question of tightening legislation should also be considered. It would be reasonable to asked whether it would be appropriate to make an aggravating circumstance the brazen and insulting behavior of an offender running counter to the morals and traditions accepted in specific places," the clergyman suggested.

He described the use of existing contradictions by extremist groups the other threat.

"These people do not truly want anything good for Russia. It is their objective to fan a conflict and with its help gain political capital and maybe even come to power. Russia cannot permit that. The organizers and instigators of the clashes must be found and punished," he said.

"If their ill-willed work continues and if representatives of the ethnic communities continue their brazen and rude behavior, massive bloody ethnic clashes may break out and as this is the capital city, these clashes will overturn all of Russia," the Moscow Patriarchate official said.

"The law must work. That is vital. Not revolt or rioting, not lynching or extremist calls, but law that would inevitably stop the provocations of extremists as well as the rampancy of ethnic criminal groups and the aggressive behavior of individual members of ethnic communities," the clergyman said.

"The leaders of ethnic communities, if they really control them, must come to a situation in which they themselves would expose criminals among themselves and place them into the hands of law," he said.

13 December 2010, 11:40

Russian Church to help migrants in their hardshipshttp://www.interfax-religion.com/?act=news&div=8011

Moscow, December 13, Interfax - Head of the synodal Department for Church Charities Bishop Panteleimon of Orekhovo-Zuyevo suggested to set up a refuge for migrants in difficult life situation.

"For us, Christians, the image of merciful Samaritan is a model we should follow. Despite nationality and religion of a person in need we can't pass by his trouble, especially as for many people it is a question of life and death," Bishop Panteleimon said at a round table in Moscow as cited by his press service.

According to the synodal department head, there are people in the Church who are ready to help migrants: priests, sisters of mercy, volunteers, students of theological schools. The bishop offered to organize free of charge courses of Russian language and divine services

in Moldavian language as possible options of extending help.

The bishop also said that synodal department could help send migrants home and in the future it would be possible to set up a charitable canteen and refuge for migrants to stay in for a while.

Moscow police deny reports of fans planning action on Dec 15http://www.kyivpost.com/news/russia/detail/92683/

Today at 10:25 | Interfax-Ukraine Moscow police spokesman Viktor Biryukov has said that the association of soccer fans is not planning any unauthorized street actions that could undermine law and order in the city.

"The information circulating on news websites and blogs that fans are ready to take to the streets and stage unrest are not true," he said.

Earlier the web media reported that fans are preparing for new street actions, this time in the square outside of Kyiv railway station. They said that the soonest action is planned for December 15.

Read more: http://www.kyivpost.com/news/russia/detail/92683/#ixzz17yuGsme4

Izvestia photographer hospitalized after Moscow opposition rallyhttp://en.rian.ru/russia/20101213/161752362.html

12:25 13/12/2010

MOSCOW, December 13 (RIA Novosti) - A photographer with Russia's respected Izvestia daily has been hospitalized following an opposition rally in downtown Moscow on Sunday.

Anatoly Zhdanov was hospitalized with a double fracture of his collarbone. He was injured while attending a sanctioned opposition rally dedicated to Constitution Day, celebrated in Russia on December 12.

"I am now at Botkin Hospital awaiting surgery because I have a double fracture," Zhdanov told RIA Novosti.

"Everything was going on peacefully but at the exit people were met by OMON [special police forces] who immediately started pressing those gathered and were acting aggressively even though the participants were calm and peaceful. They started picking people out of the crowd and putting them in police buses," Zhdanov said.

"I was standing at a parapet and I was approached by the Left Front movement leader (AKM) [Sergei Udaltsov]," the journalist said.

Zhdanov said he was given a heavy blow to his shoulder as he started taking pictures. "At that second there was a strong push and I fell off the parapet from the height of 1.5 meters," he said.

Zhdanov said he could have been attacked by a police officer as he saw out of the corner of his eye someone "in a helmet."

He said he has not yet decided if he will file a complaint against the police. "I will not concern myself with it, there is an editorial office, they should decide," he said.

Izvestia deputy editor-in-chief Ilya Kiselyov said Zhdanov could have been hit by accident and not on purpose. "There was a crowd. When everybody ran he was standing on a cornerstone. He was hit and he fell," Kiselyov said.

Moscow police said the officers started using force at the rally near Pushkin Square at the moment when a group of its participants attempted to stage an unsanctioned event.

The leader of Russian opposition movement Left Front, Udaltsov, was detained by police during Sunday's rally after calling on activists to nail their demands on the doors of City Hall. He was later released.

Police spokesman Viktor Biryukov said Zhdanov was not wearing a press vest indicating that he was from a media outlet. He said the vest could have eased the photographer's work at the event.

Several other Russian journalists were injured on Saturday as thousands of football fans and nationalists clashed with police on Moscow's Manezh Square next to Red Square over the death of a soccer fan in a street brawl a week ago.

RIA Novosti cameraman Rustam Buzanov was beaten by a group of attackers who broke his camera. A correspondent with the Kommersant business daily was also injured in the riots.

Russian President Dmitry Medvedev has said on his Twitter that all those involved in organizing mass riots in downtown Moscow on Saturday will be brought to account.

Medvedev pledges to punish all those staging Manezh Square riots

http://www.itar-tass.com/eng/level2.html?NewsID=15772734&PageNum=0

13.12.2010, 02.48

MOSCOW, December 13 (Itar-Tass) -- Russian President Dmitry Medvedev pledged to punish all those who staged disorders on the Manezh Square on Saturday.

“And the last thing for today. As far as the Manezh disorders are concerned. All is under control in the country and Moscow. We will punish all who were looting. All of them. Do not doubt,” the president wrote down in his Twitter blog on Sunday.

On Saturday, December 11, about 5,000 young people from football fans to activists of nationalistic organizations came to the Manezh Square. At first they gathered to commemorate a Spartak football fan Yegor Sviridov killed in a massive brawl on the Kronshtadtsky Boulevard on December 6. But later the demonstrators started chanting the slogans “Russia for Russians!” and others, then lit up the petards and flares. Then the young rioters started moving towards the Manezh exhibition hall and attempted to break through the cordons. The rioters used all things falling in their hands, particularly the decorations of a Christmas tree placed on the Manezh Square, and hurled them on the police. Then a brawl sparked up inside the mob. After that the OMON anti-riot police ousted the rioters from the Manezh exhibition hall to the Moskva Hotel.

Some 65 people were detained in the disorders.

Some 29 people, including policemen, injured on the Manezh Square, are undergoing treatment at the Moscow hospitals, sources in the Moscow medical services told Itar-Tass.

Medvedev pledges inevitable punishment for Moscow riotershttp://en.rian.ru/russia/20101213/161748925.html05:34 13/12/2010

Russian President Dmitry Medvedev has said on Twitter that all those involved in organizing mass riots in downtown Moscow on Saturday will be brought to account.

"Everything is under control both in the country and in Moscow. All troublemakers will be punished, have no doubt," Medvedev wrote on the microblogging website in Russian late on Sunday.

Dozens were arrested and 29 hospitalized on Saturday as thousands of football fans and nationalists clashed with police in Moscow's Manezh Square over the death of a soccer fan in a street brawl a week ago that has sparked a wave of nationalist sentiments across the country. The riots occurred two weeks after Russia won the bid to host the 2018 World Cup.

Spartak Moscow fan Yegor Sviridov, 28, was killed in a clash with a group of internal migrants from the North Caucasus early last Monday. Police have detained a man from the republic of Kabardino-Balkaria, Aslan Cherkesov, who is suspected of fatally shooting Sviridov from a rubber-bullet gun.

Cherkesov claimed he had fired the four shots at Sviridov in self-defense.

MOSCOW, December 13 (RIA Novosti)

Opposition leader released in Moscowhttp://en.rian.ru/russia/20101213/161747521.html01:32 13/12/2010

The leader of Russian opposition movement Left Front, Sergei Udaltsov, detained during Sunday's rally after calling on activists to nail their demands on the doors of City Hall, has been released, police said.

A number of rallies dedicated to Constitution Day, celebrated in Russia on December 12, took place in Moscow on Sunday. Most of them were sanctioned by authorities.

In a separate development, a group of football fans circled around the Russian capital's center on Sunday chanting nationalist slogans, a day after Spartak Moscow fans clashed with police near the Kremlin following the death of a fan killed in a fight with a group of North Caucasus natives last week.

MOSCOW, December 13 (RIA Novosti)

Riots in the heart of Moscow: Dozens injuredhttp://english.pravda.ru/hotspots/conflicts/13-12-2010/116165-moscow_riots-0/

13.12.2010

Football fans plan to continue massive actions of protest in connection with the recent death of Spartak fan Yegor Sviridov, who was killed in Moscow by migrants from Russia's North Caucasus. On December 15th, the fans are planning to hold another action in the city, near Kievsky Railway Station.

The fans will continue to gather for meetings until Sviridov's murder is thoroughly investigated and his murderers are punished accordingly.

Many Russian bloggers wrote on their pages that the Caucasian diasporas in Moscow were also planning to hold an action in response on December 15th, in front of one of Moscow's major shopping malls, near Kievsky Railway Station.

Members of Spartak fan groups stated that they had nothing to do with the riots on Manezhnaya Square on December 11th. They also said that they were not going to arrange any pogroms in the future either. According to the fans, it was not actually the

fans, but nationalist groups that gathered on Manezhnaya Square. The nationalists, the fans said, only used the tragedy to achieve their own different goals.

On Saturday, several dozens of rioters attacked migrants from the Caucasus on the square and started beating and kicking them. Over a thousand of other aggressive young men appeared on the square soon afterwards, chanting nationalist slogans.

On the square, the rioters smashed an artificial Christmas tree. They started throwing Christmas decorations, torches and lumps of ice at police officers. A number of fights between the protesters and the police occurred. The police were forced to use tear gas against the rioters.

Also, on Saturday, about 10,000 football fans conducted a march along Kronshtadsky Boulevard, where Yegor Sviridov was murdered. Spartak fans were joined by the fans of other football clubs and "Night Wolves" bikers. The fans and their supporters marched along the boulevard and stopped near the bus stop, where Yegor Sviridov was killed. They arranged their scarves on the stop, laid flowers and lit candles.

The fans urged their supporters and followers not to take part in other actions. Nevertheless, about 5,000 aggressive men gathered on Saturday afternoon on Manezhnaya Square, which is located in close vicinity to Red Square and the Kremlin. The people lit fire torches and started chanting nationalist slogans using foul language.

Two of the above-mentioned actions were not authorized; their participants did not even try to obtain a permission to hold them. The first action was peaceful, although the second one turned into an aggressive riot with pogroms and clashes with the police. About 65 people were arrested and then released as a result of the riots. Twenty-nine people, including police officers, were hospitalized with serious injuries.

The police used batons and tear gas against the rioters. The latter were throwing torches, beer bottles, lumps of ice, garbage cans and Christmas decorations from the crushed tree at the police. The fans were launching signal flares, someone was shooting their traumatic gun.

The protesters left the square at about 6 p.m., but the riots continued in the Moscow metro, where the youngest attacked migrants from the Caucasus.

Rioting Erupts Near Kremlin Walls http://www.themoscowtimes.com/news/article/rioting-erupts-near-kremlin-walls/426146.html

13 December 2010

By Alexander Bratersky

President Dmitry Medvedev praised Moscow police for a violent crackdown on shocking downtown rioting near the Kremlin's walls Saturday, even as police sought information on who had led the mob of some 5,500 football fans in shouting racist phrases and attacking North Caucasus natives.

The unsanctioned rally demanding an investigation into the killing of a football fan on Dec. 5 erupted into violence after demonstrators spotted a group of dark-skinned teenagers and tried to beat them, news reports said.

Thirty-two people were wounded, including two seriously, Interfax reported. At least three of those hospitalized were Caucasus natives, all with stab wounds. Eight police officers were also injured.

Police briefly detained 66 people.

The mood in Moscow was tense Sunday as rumors circulated in online football forums that Caucasus natives were planning counterstrike attacks, but police called the rumors a provocation by ultranationalists.

During Saturday's rally, chants of "Russia for Russians" and "[expletive] the Caucasus" reverberated across Manezh Square, proving a major embarrassment for the Kremlin, which prides itself on allowing no unsanctioned public events and is accused by the liberal opposition of secretly sympathizing with nationalists.

The protesters came to the square to protest the death of Yegor Sviridov, 28, a member of a radical Spartak Moscow fan group who was shot dead during an interracial brawl with North Caucasus natives.

A suspect in the murder, Aslan Cherkesov, a native of Kabardino-Balkaria, was detained last week, but his companions were released after questioning, prompting speculation that they had paid off the police.

After the crowd attacked the group of dark-skinned teens, police whisked them into an ambulance, prompting the demonstrators to pelt officers with stones, flares, empty bottles and chunks of ice, and attack them with metal rods, news reports said.

Some protesters stomped on the head of a dark-skinned man and dragged the bloodied victim by the legs, Gazeta.ru said. Photos of the square by blogger Zyalt show some participants raising their arms in an apparent Nazi salute.

Moscow police chief Vladimir Kolokoltsev personally negotiated with the protesters, with photos by Zyalt showing him talking to a man hiding his face behind a balaclava, which he refused to remove.

The crowd dispersed after Kolokoltsev promised to solve Sviridov's murder, but then proceeded run in packs through metro cars, chanting, “White carriage, white carriage!” as they hit and kicked people who appeared to be Caucasus and Central Asian natives.

More than 10 assaults on dark-skinned migrants were reportedly attacked in the suburbs later Saturday, said Galina Kozhevnikova, who tracks xenophobia with the Sova watchdog, Gazeta.ru reported.

The protesters also toppled a New Year's tree on Manezh Square.

A similar rally took place Saturday in St. Petersburg, where some 3,000 football fans clashed with police during an unsanctioned downtown march, RIA-Novosti said. About 50 were briefly detained.

Early reports said police had identified the organizers of the Moscow violence, but a law enforcement source told RIA-Novosti on Sunday that investigators remained unsure and were examining feeds from surveillance cameras in the area to identify people involved in the attacks on policemen and passers-by.

Ultranationalist organizations and football fan clubs — two communities known to overlap — denied involvement in the violence.

“It was no doubt a provocation by nationalists, who try to drag football fans into these showdowns,” the Russian Football Union said, Interfax reported Sunday.

Fratria, the football club that Sviridov, the slain fan, belonged to, also distanced itself, saying in a statement on its web site that it “opposes any actions that violate Russian law” and "supports law and justice.”

Dmitry Dyomushkin, leader of the banned radical Slavic Union group, said that “blaming nationalists is ridiculous,” Interfax reported. But he conceded that at least half of the rally's participants were nationalists.

Three North Caucasus natives believed to have participated in the fight that killed Sviridov were detained over the weekend. News reports identified them as Khasan Ibragimov, Nariman Ismailov and Artur Alfibiyev.

Dozens of nationalists and football fans tried to crash a sanctioned anti-government rally of some 500 people organized by the Left Front group on the downtown Pushkin Square on Sunday but were stopped by police, RIA-Novosti said. The home of Left Front leader Sergei Udaltsov was targeted Saturday by unidentified assailants who pelted the door with eggs and left obscene graffiti on the outside walls.

Internet forums maintained by football fans buzzed with reports that Caucasus natives planned to stage their own unsanctioned rally by the Yevropeisky shopping mall Sunday,

but authorities called the rumors a ruse by nationalists and said representatives of ethnic diasporas in Moscow had denied the information.

Interior Minister Rashid Nurgaliyev said Sunday that left-wing radicals had provoked Saturday's rioting. He did not elaborate.

He also praised city police officers, saying they had prevented large-scale riots. He said police initially had refrained from cracking down on the unsanctioned rally because they had sought to shield tourists and Muscovites walking in the area from getting caught up in a brawl.

Medvedev said Saturday that city police handled the incident correctly. He did not elaborate.

Independent analysts were markedly less impressed, with Alexei Mukhin of the Center for Political Technologies calling the authorities' reserved reaction “disgusting.”

“Our authorities often think everything will blow over by itself,” he said, warning that an ethnic confrontation in the capital could escalate if the instigators were not found and punished quickly.

Alexei Lebedev, a sports editor with Moskovsky Komsomolets, said the government has neglected the youth, including sports fans, leaving them open to nationalists' influence.

“Football fans are a part of the youth community — they haven't arrived from the moon,” Lebedev told The Moscow Times.

Critics have long accused Kremlin-linked groups, including the Nashi youth movement, of hiring football hooligans to beat up and intimidate opposition activists, though the allegations have never been proven in court.

Nevertheless, Russia has a record of both football-related and ethnic riots in recent years, starting in 2002, where a football fans rioted after Russia's team lost to Japan during the World Cup. The game was broadcast on screens on Manezh Square.

One person died in the resulting violence, also blamed on nationalists. Kozhevnikova of Sova watchdog noted that police later tracked down and jailed the instigators.

In 2006, two ethic Russians were killed in a cafe clash with Chechens in the Karelian town of Kondopoga that sparked riots.

On Tuesday, about 1,000 of Sviridov's supporters rallied by a Investigative Committee office on Leningradsky Prospekt, blocking the busy road during the evening rush hour. Police did not detain anyone.

A bank clerk said he attended Saturday’s rally because even though he disliked hard-line nationalism, the organizers had “caught the mood in the air.”

“People have had enough of the Caucasus natives, who behave like masters and are able to avoid any responsibility while authorities pay no attention,” said Konstantin, 36, who refused to give his last name to avoid problems at work.

Konstantin said by telephone Sunday that several riot police officers expressed sympathy for the participants of the rally, which was also attended by Alexander Zaldostanov, a leader of the Night Wolves motorcycle club.

Zaldostanov, a self-proclaimed Russian Orthodox believer who rode with Prime Minister Vladimir Putin this summer, told  the Rusnovosti.ru on Saturday that he did not want to feel like “a part of a diaspora” in his own country.

“We just came to support the guys because we don't feel indifferent,” Zaldostanov said. "This is a blatant case of a person being taken in by police for murder and being freed."

Russian nationalist riots are only the starthttp://themoscownews.com/local/20101213/188273910.html?referfrommn

by Andy Potts at 13/12/2010 11:38

 

Saturday’s shocking violence in central Moscow is only the start – a further protest is planned on Wednesday as an unholy alliance of football fans and ultra-nationalists continues to put pressure on the authorities.

What started as an explosion of anger of the death of a Spartak fan in a street brawl involving migrants from the North Caucasus has snowballed into a direct challenge to the government.

And the shocking scenes of mass violence beneath the walls of the Kremlin at the weekend have left many fearing that the authorities’ apparently iron grip on Russia is rusting fast.

 

Ill-prepared and complacent

The seeds of Saturday’s disturbances were sown last week when a vigil in memory of Yegor Sviridov – a football fan killed in a brawl last Monday – spilled over into nationalist protests on Leningradsky Prospekt.

“The way the police failed to prevent demonstrators from blocking the road gave a signal that the authorities are passive in the face of large crowds,” Nikolai Petrov, an analyst at Moscow’s Carnegie Center, told The Moscow News.

“Although they are prepared to oppose small-scale meetings of political opposition they are not ready to handle this kind of thing.

“The Militia isn’t bad when it comes to protecting the Kremlin, but it is not so good at protecting society.

“It shows there is a kind of power vacuum and any large-scale organisation can do what it wants because the authorities are not well prepared.”

 

Mob on the march

Saturday saw a group of around 5,000 people gathering in Manezhnaya Ploshchad, right in the heart of Moscow.

They were a mixture of football fans and hardline nationalists, gathering en masse with chants of “Russia for Russians” and expletive laden threats to the Caucasus and its inhabitants.

Photos on livejournal showed rioters carrying banners and placards about Sviridov, 28, “a Russian killed by Caucasians”, and warned fans that they could be the next victim. Many appeared to be giving Nazi salutes.

As the mood turned uglier there were attacks on dark-skinned passers-by and as the emergency services intervened, police found themselves under a barrage of snow, ice and rocks.

In total 32 people were injured and 66 were briefly detained, according to Interfax.

 

Violence through the night

The trouble was not confined to Moscow – a similar rally in St. Petersburg also sparked clashes between riot police and demonstrators, RIA Novosti reported.

And as the crowds dispersed from the centre of the capital the action spread into the suburbs.

Human rights activist Galina Kozhevnikova, of xenophobia watchdog Sova, told Gazeta.ru there had been at least 10 reported assaults on dark-skinned foreigners on Saturday evening.

A gang of 15 Muscovites set upon and killed a Kyrgyz immigrant early on Sunday morning in Southern Moscow – an incident which may have been related to Saturday’s riots, RIA Novosti reported.

Meanwhile gzt.ru reported several attacks on foreigners in metro stations in central Moscow after the riots on Manezhnaya.

The web portal carried details of assaults at Okhotny Ryad, Tretyakovskaya and Tverskaya stations.

 

Under control?

President Dmitry Medvedev rushed to his twitter account to reassure the nation that everything was under control.

He warned all those involved in the riots that they would face punishment for their behaviour

But Petrov warned that the authorities lack both the expertise and the will to tackle the nascent resurgence in nationalism.

“Opinion polls are showing that there are higher levels of sympathy for the nationalists among law-enforcement officers than in the general population,” he said, adding that this sentiment wasn’t shared at the highest level.

“But the Russian authorities are less prepared to oppose situations like Saturday’s.

“It’s both a lack of willingness to counter nationalism and a lack of expertise. For several years they have been able to fix any problem by throwing money at it – they’ve lost the readiness and decisiveness to solve problems any other way and they need to learn fast.”

Moscow rioters used tragic pretext for nationalist gameshttp://www.kyivpost.com/news/russia/detail/92677/

Today at 09:12 | Interfax-Ukraine Mixing football and politics is unacceptable, Moscow police chief Vladimir Kolokoltsev said after a meeting with Russian Football Union President Sergei Fursenko, representatives from Moscow football clubs and veteran football fans.

"We are very concerned by the situation where the feelings of any normal person - love for sports, respect for sports organizations - are being speculated, when calls are being made for inter-ethnic hatred and intolerance," Kolokoltsev told journalists, commenting on the events that occurred in the Manezhnaya Square on Saturday.

The riot organizers have nothing to do with real fans, but they pursue their political goals, said the Moscow police chief.

"People who gathered yesterday at the square demanded from me that Section 282 of the Russian Penal Code (inciting inter-ethnic hatred) be abolished, and chanted "2-8-2." I am more than certain that most riot organizers have nothing to do with sports organizations but used the tragic pretext for their nationalist games," Kolokoltsev said.

At the meeting the parties agreed on the need to pass legislation regulating behavior at stadia, and the Moscow Central Police Department will submit the relevant initiative with the Moscow City Duma, he said.

"The conversation was objective, focusing on the most poignant issues that need to be dealt with in the first place. We have agreed that these meetings will be regular," Kolokoltsev said.

Using sports for political goals is unacceptable, Fursenko said.

"Politics is off-limits when it comes to football. We will not allow some protests to provoke us. No party or movement will be able to force us chant their slogans," Fursenko said.

The RFU chief extended his condolences to the family of Spartak fan Yegor Sviridov killed on Monday.

"Now is the time for tough laws to be passed against those people who break the rules, time to fully formalize fans' behavior at stands. These laws must be passed in the nearest future. I am urging our lawmakers to pay particular attention to these laws. There must be clear unavoidability of punishment for those who provoke and those who violate the Russian law," Fursenko said.

Moscow clubs fans did not take part in riots in Manezhnaya Square, said Amir Khuslyutdinov, veteran of the Spartak FC fan movement.

"We were at Kronshtadsky boulevard, there was not a single incident there. And there was ideal order at the funerals. Saboteurs from various political parties should better stay clear from us. Politics is off-limits when it comes to football and hockey," Khuslyutdinov said.

He urged fans not to take part in events organized by political movements.

"We have official website where information can be obtained about the events we organize. Currently, we are working out a consolidated position, and each fan club will address its fans. WE will be calling for law and order," Khuslyutdinov said.

"What happened a day earlier has nothing to do with football. Some people want to use stands to express what they cannot say elsewhere, but this is not going to happen. Fans and representatives from all Moscow teams are saying this will not happen," said Spartak FC head coach Valery Karpin, who attended the meeting.

Read more: http://www.kyivpost.com/news/russia/detail/92677/#ixzz17yVGHicE

Pro-Kremlin youth group stages Mickey Mouse protest in Moscowhttp://en.rian.ru/russia/20101213/161751800.html

11:42 13/12/2010

Rossiya Molodaya (Young Russia), a radical pro-Kremlin and anti-opposition youth group, staged a protest wearing Mickey Mouse outfits outside a building where a coalition of democratic forces will hold a congress later on Monday.

Several dozen young people stood outside a hotel complex in eastern Moscow holding nationalist flags and handing out leaflets saying that the coalition For Russia without Arbitrariness and Corruption was stage-managed from abroad.

In mid-September, the leaders of four Russian opposition organizations - Boris Nemtsov, Vladimir Ryzhkov, Vladimir Milov and Mikhail Kasyanov - declared the creation of a coalition of democratic forces.

The congress is to establish a Party of People's Freedom, adopt a statute and program, elect the party leadership, and define the procedure for the nomination of a consensus candidate in the 2012 presidential elections.

Over 160 delegates from 50 regions of the country are expected to attend.

MOSCOW, December 13 (RIA Novosti)

Russian sailors stranded in Vietnam go on hunger strike http://english.ruvr.ru/2010/12/13/36710461.html

Dec 13, 2010 09:25 Moscow Time

Six members of the Russian crew of a tuna fishing vessel, Phu Hai-1, which has been stranded in the Vietnamese port of Vung Tau, have declared a hunger strike in a show of protest , media reports said on Monday. 

The Russians-owned Antel Investment Limited company that hired the sailors owes them over 143,000 dollars in overdue wages.

Captain Alexander Onufrenko was quoted as urging the owners of the Phu Hai-1 ship to rectify the situation as soon as possible.

Russian sailor on South Korean vessel rescuedhttp://english.ruvr.ru/2010/12/13/36713444.html

Dec 13, 2010 10:18 Moscow Time

The Russian national who had been aboard the South Korean vessel that has sunk in the Antarctic, has been rescued, says a Russian diplomat in New Zealand in an interview with the ITAR-TASS news agency.

According to the diplomat, Vladimir Mashkov monitored fish catching by the South Korean trawler.

A total of 42 people were on board the sunken ship, the nationals of South Korea, China, Vietnam and Indonesia. 5 sailors have died,

17 are listed as missing, while the rest have been rescued by a nearby fishing schooner.

The trawler sank for some unknown reason in the Antarctic waters 2,700 kilometres away from New Zealand earlier today.

Three South Korean ships are searching for the missing sailors.

The two New Zealand ships that were also involved in the search and rescue operation have been recalled.  

SKorea fishing vessel with Russian crewman sinks in Southern Ocean

http://www.itar-tass.com/eng/level2.html?NewsID=15772422

13.12.2010, 07.56

TOKYO, December 13 (Itar-Tass) -- A Russian citizen was aboard a South Korean fishing vessel, which sank in the Southern Ocean 2,500 kilometers south of New Zealand on Monday. Five people from the ship sank, 17 people were reported missing, sources in the South Korean Foreign Ministry and the Coast Guard reported in Seoul on Monday. Two South Korean citizens, two Indonesian citizens and a Vietnamese citizen sank.

The fishing vessel with a water displacement of 614 tonnes that sank at about 4.30 a.m. Seoul time was carrying 42 people, including eight South Korean citizens, eight Chinese citizens, 11 Indonesian citizens, 11 Vietnamese citizens, three Philippine citizens and a Russian citizen.

Another fishing vessel saved 20 crewmen from the sunken fishing ship. Two New Zealand and three South Korean vessels are searching for missing people. New Zealand is planning to dispatch an airplane to the search area. The airplane will need at least eight hours to get to the tragedy site. The water temperature in the incident area is two degrees above zero. The man can stay alive in such cold water for not more than ten minutes, experts said.

U.S. to increase sports youth exchanges with Russiahttp://english.ruvr.ru/2010/12/13/36707557.html

Dec 13, 2010 05:38 Moscow Time

The U.S. administration hopes to significantly expand the program of youth sports exchanges with Russia in the coming year. This was stated by Assistant Secretary of State for Educational and Cultural Affairs Ann Stock.

  "We have huge plans for students’ exchange programmes" - the official was quoted as saying. This year, trips to Washington were made by teams of young basketball players from Moscow and St. Petersburg, followed by representatives of Russia’s Junior Swimming Team, who travelled to a training camp in Florida.

    From the reciprocal side, their American peers – volleyball players - visited Moscow and the resort of Anapa. Moreover, the Russian basketball players were even received by President Barack Obama in the White House.

Chechen officials visiting Maine, L-Ahttp://www.sunjournal.com/city/story/955589

By Staff Report

Published Dec 13, 2010 12:00 am | Last updated Dec 12, 2010 11:04 pm

LEWISTON — Six members of the Chechen Republic Parliament will spend the day in Lewiston-Auburn Wednesday as part of their visit to Maine to experience American-style democracy at the local level.

The group arrived on Friday. Their visit is sponsored by the Open World Leadership Center at the Library of Congress.

The center selected Maine for the visit because of the work of University of Southern Maine Lewiston-Auburn College Associate Professor Barry Rodrigue. Rodrigue and his students have worked to provide assistance with war-torn Chechnya, according to a USM news release. Rodrigue and his students have founded the American-Caucasus Work Group to raise awareness of the impact of years of war, and to provide humanitarian aid. The group is working to finalize a sister-city, sister-state project.

Chechnya, which has a population of about 1.2 million, similar to the size of Maine, is surrounded by Russian territory and along with Georgia.

While in Maine the delegation will visit the Bath YMCA and a farmer's market, the Maine State Museum in Augusta, meet with a lobsterman, tour a homeless shelter and meet with former Gov. Angus King in Brunswick. The delegation will also tour Hancock County and meet with the Passamaquoddy Tribal Government in Indian Township.

When the delegation arrives in Lewiston on Wednesday, members are scheduled to tour the Maine Public Broadcasting Network television and radio studio, and talk about the freedom of the media with “Maine Watch” show producer Frank Ferrell.

They'll be the guests of a reception at the Lewiston-Auburn College, tour the college, give a presentation about their vision of the future. They're scheduled to eat lunch and shop on Lisbon Street. Some will then tour Museum L-A, others will visit the Androscoggin court house, jail and meet with Sheriff Guy Desjardins.

Because of Rodrigue, the college has had a long-standing relationship with some from Chechnya, including academics and clerics, said Associate Dean for Community Relations Jan Phillips. “This is a unique opportunity to bring a group of public officials from Chechnya to see the whole state,” Phillips said.

Medvedev in raptures after Elton John gighttp://en.rian.ru/art_living/20101212/161746740.html

23:52 12/12/2010

Sir Elton John's music is "of very high quality," Russia's rocker president, Dmitry Medvedev, wrote on his Twitter micro blog on Sunday after nipping down to the veteran singer's gig in Moscow.

"Just been at Elton John's concert. Very serious work, of very high quality - almost three hours of live music," Medvedev tweeted after a night on the town.

Only thing is, Sir Elton invited the president, "a true fan of modern rock music," as he called him in his message of November 25, to his St. Petersburg show on December 13, rather than the Moscow event, but Medvedev seemed to decide not to wait another day. As presidents do, as presidents do.

"You are a true fan of modern rock music that unites people from all over the world, regardless of their racial, political and religious views. I'll be very grateful if you will accept my invitation," the Rocket Man's message read.

Medvedev, who ran his successful election campaign largely by recounting how he collected the vinyl copies of every Deep Purple LP, is the exact opposite of his patron, Prime Minister Vladimir Putin - as far as music is concerned, that is. The former KGB man is more into a kind of sweaty patriotic folk pop, the likes of Lyube.

The 63-year-old rock legend was among the first western musicians to perform in the USSR - an honor shared with Soviet leader Leonid Brezhnev's favorite disco act, Boney-M.

MOSCOW, December 12 (RIA Novosti, Alexei Korolyov)

Russian spy named advisor for oil company Rosneft – reporthttp://in.reuters.com/article/idINLDE6BC02F20101213

MOSCOW | Mon Dec 13, 2010 11:29am IST

Dec 13 (Reuters) - One of the Russian spies deported along with 12 other agents from the United States in July has become an international projects advisor at Russia's largest oil company, Rosneft (ROSN.MM), Kommersant reported on Monday.

The Russian business daily, citing sources in the Kremlin, said ex-sleeper agent Andrei Bezrukov had been appointed as Rosneft president Eduard Khudainatov's personal international projects advisor.

A Rosneft spokesman declined to comment on the report.

Just after Bezrukov and the other Russians that the United States accused of being agents were deported to Russia in a Cold-War style spy swap, Prime Minister Vladimir Putin promised them a bright future in Russia.

(Writing by Jessica Bachman)

'Russian spy' Katia Zatuliveter worked for the BBC before she got job with MPhttp://www.dailymail.co.uk/news/article-1338099/Russian-spy-Katia-Zatuliveter-worked-BBC-got-job-MP.html?ito=feeds-newsxml

By Eleanor HardingLast updated at 1:39 AM on 13th December 2010

The blonde Russian accused of being a spy also worked for the BBC, it was revealed last night.

Katia Zatuliveter was employed as a researcher on a major documentary in Moscow just four months before she was arrested on suspicion of espionage.

It is understood she arranged interviews with people in Vladimir Putin’s government for the documentary which focussed on Russia’s relationship with the West.

She worked on the project with Angus Roxburgh, a former BBC foreign correspondent, during parliamentary recess. 

Zatuliveter, known to wear short skirts around Westminster, is accused of obtaining confidential information by working as an aide to Liberal Democrat MP Mike Hancock. 

BBC colleagues later said the 25-year-old, who was employed by production company Brook Lapping, seemed oddly distracted at work.

‘She failed to make much of an impression,’ said Mark Franchetti, Moscow correspondent of the Sunday Times.

‘She seemed ordinary and bland – resembling more a nerdy academic than a sultry KGB honey trap.’

Zatuliveter – suspected of working for Russia’s foreign intelligence service, the SVR – is being detained pending deportation. 

If espionage is proved, it will be the first case since the Cold War of a Russian agent being removed from Parliament.

U.K. to Scrutinize Firms With Russia Ties http://www.themoscowtimes.com/business/article/uk-to-scrutinize-firms-with-russia-ties/426107.html

13 December 2010By Derek Andersen

International companies doing business in Russia will be subject to greater scrutiny by the United Kingdom beginning in April, when a draconian anti-corruption law enters into force, lawyers warn.

The U.K. Bribery Act will apply to any company that has an office in Britain or sells its products there. It applies a "zero tolerance" principle, making companies liable for their own and their partners' corrupt practices, even if there is no connection with the British part of the business or the companies were not aware of the corruption.

Justin Williams, a partner in the Akin Gump international law firm, said the law differs in significant ways from the U.S. Foreign Corrupt Practices Act, under which companies such as Siemens, Daimler and Shell have been prosecuted.

For example, the British law applies to private citizens as well as companies, and to both the giver and receiver of a bribe. Furthermore, it criminalizes failure to prevent bribery. Plea bargaining will not be allowed in the law's enforcement.

Punishment includes unlimited fines for companies and individuals, and prison terms for up to 10 years.

"Companies need to know where to draw the line of resistance and how far to push back," Williams said.

The law is written to be broad and vague, Williams said. The only defense under the law is the presence of "adequate procedures" to counteract corruption. Guidelines are being drafted to define those procedures, but only in the form of a general outline. Companies are expected to be aware of the environment they operate in and use their own judgment, and be accountable for their actions.

The law also includes the concept of prosecutorial discretion, meaning that it can be applied "sensibly," Williams said, adding that the extent of the "political appetite" to apply the law is not yet clear.

The fight against global corruption is succeeding, said Edward Rubinoff, another Akin Gump partner.

He said U.S. companies have been placed at a competitive disadvantage by the American Foreign Corrupt Practices Act, which led the U.S. Justice Department to lobby the Organization for Economic Cooperation and Development over the last five years for greater international enforcement.

The goal of the law is to "force change organically, in spite of long-standing customs and cultural norms," Rubinoff said.

Corruption is driven by financial conditions, he said. The collective economic power of the United States and its allies is felt on local markets even where their laws do not apply, and that is key to the success of anti-corruption efforts.

A series of anti-corruption laws came into force in Russia at the beginning of 2009, as an element of the National Plan of Counteraction of Corruption, passed by President Dmitry Medvedev soon after he assumed office.

"[The Russian laws] do not apply to legal entities," said Kirill Kabanov, chairman of the National Anti-Corruption Committee. It will be necessary to extend the anti-corruption system being created by the president to companies, he said.

Kabanov criticized the slow and passive implementation of anti-corruption measures in Russia. Some of the steps taken have been purely for show, he said.

Russia, though, is joining the fight against corruption internationally. The 2010-11 Anti-Corruption Strategy approved by the president in April included the criminalization of foreign bribery.

Investigators study voice recorder from crashed Russian Tu-154http://en.rian.ru/russia/20101213/161751729.html

11:35 13/12/2010

Specialists from the Interstate Aviation Committee (MAK), a CIS flight safety watchdog, have begun studying the voice recorders from air traffic controllers and the crew of a Dagestan Airlines Tupolev Tu-154 airliner which made an emergency crash-landing at Moscow's Domodedovo Airport on December 4, the committee said on Monday.

"A flight, engineering and administration sub-committee and also a working group of air-traffic, weather, medical and other specialists is continuing to gather and process evidence and documentation for the investigation. Work is continuing on dissembling the fuel pumps in the aircraft's fuel system," MAK said.

MAK specialists have also taken fuel from the tanks of the left wing, and fuel and oil from the left fuselage engine and also taken samples of fuel from the tanker supplies at Vnukovo Airport, from where the aircraft took off en route to Makhachkala, Dagestan.

"Together with Tupolev company specialists, we are studying fragments of the aircraft and looking at the flight instruments and cabin equipment." MAK said.

Two passengers died and 80 were injured from the 163 passengers and ten crew on board after the Tu-154 made an emergency landing at Domodedovo shortly after taking off from Vnukovo Airport. The fuselage broke into several pieces when the aircraft ran off the runway at Domodedovo.

MOSCOW, December 13 (RIA Novosti)

Central Asian man killed in Moscow http://rt.com/news/line/

RT News line, December 13

A group of young people has killed a man originating from a Central Asian republic, Interfax reported a police source as saying. There were more than 15 people in the group, including one girl. According to the source, they attacked the passerby “without any visible reasons.” The man died on the spot.

A Kyrgyzstani killed in Moscowhttp://eng.24.kg/cis/2010/12/13/15299.html

13/12-2010 07:07, Bishkek – 24.kg news agency , by Arstan AALIEV

A citizen of Kyrgyzstan has been killed in Moscow, as reported by the Interfax news agency.

Reportedly, the victim is a resident of Osh city Alisher Shamshiev, born in 1973. He was attacked on Sunday on Sudostroitelnaya Street (Moscow), near house number 15. A group of young men of 15 persons, including a girl, lashed out at the man and began beating him. After this, one of the assailants struck the victim with a knife, resulting in death.

Moscow police Chief Vladimir Kolokoltsev is personally engaged in the coordination of operational activities to search for suspects of murder, Interfax reports.

URL: http://eng.24.kg/cis/2010/12/13/15299.html

Azerbaijani citizen shot dead in Moscow

http://en.apa.az/news.php?id=136271

[ 13 Dec 2010 11:52 ] Baku. Lachin Sultanova - APA. Azerbaijani citizen was shot in Moscow, APA reports citing vesti.tu website. The incident took place today, at 4.00 in eastern Moscow.

Three unknown persons entered the 24-hour market located on the 3rd Grajdanski street and began to quarrel with 28-year-old Azerbaijani citizen, who worked as a seller in the market. According to information of law-enforcement bodies, one of offenders shot Azerbaijani citizen 7 times.

Our compatriot was taken to hospital.

Remind that, recently, actions against Caucasians are held in Moscow. The reason of it is “Spartak” football team fan’s murder by a Caucasian.

Russian Press at a Glance, Monday, December 13, 2010http://en.rian.ru/papers/20101213/161750387.html08:53 13/12/2010

POLITICS

Kirov Governor Nikita Belykh said on his blog he has no complaints against lawyer and anti-corruption activist Alexei Navalny, despite the fact that he is now being probed by the Investigative Committee.

(Moscow Times)

A Kremlin official told a U.S. diplomat that Russian authorities had been tracking the suspected killers of former spy Alexander Litvinenko before his poisoning death in London four years ago, but had been warned off by Britain, according to a U.S. diplomatic cable released by WikiLeaks on Saturday.

(Moscow Times)

Russian Prime Minister Vladimir Putin took part in a charity concert for children having cancer. He sang Blueberry Hill and played the piano.

(Kommersant, Moscow Times)

Three political parties without representation in the State Duma were invited to participate in a parliamentary discussion Friday - but for only 10 minutes each.

(Moscow Times, Vremya Novostei)

Russian Prime Minister Vladimir Putin kept his promise to employ Russian spies detained in the United States over the summer. Andrei Bezrukov was appointed an advisor to Russian state-run oil company Rosneft's president.

(Kommersant)

Turkmenistan, Afghanistan, Pakistan and India have agreed to build a trans-Afghan gas pipeline (TAPI) that will supply to South Asian markets 33 bcm of Turkmen gas annually from 2015.

(Kommersant)

Ukraine will expand its participation in the Commonwealth of Independent States, President Viktor Yanukovych said at a Moscow summit. However, Ukraine has not given up on the idea of European integration.

(Nezavisimaya Gazeta)

United Russia will win the forthcoming parliamentary elections and either Dmitry Medvedev or Vladimir Putin will win the presidential elections, deputy Kremlin chief of staff Vladislav Surkov told youth organizations.

(Rossiiskaya Gazeta)

BUSINESS

International companies doing business in Russia will be subject to greater scrutiny by the United Kingdom beginning in April, when a draconian anti-corruption law enters into force, lawyers warn.

(Moscow Times)

The Audit Chamber has found that Emergency Situations Ministry officials improperly spent millions of dollars of federal money in the past three years.

(Moscow Times)

Russia will not bring export duties on timber to zero for Finland yet.

(Vremya Novostei)

Russian Finance Minister Alexei Kudrin wants to establish the world's biggest fund. He proposes sending all privatization revenues to the National Welfare Fund and bringing its size to 60% of GDP.

(Vedomosti)

VimpelCom is interested in a 51% stake in Serbian fixed and mobile communications operator Telekom Srbija. The stake is assessed at $3.21 billion.

(Vedomosti, Kommersant)

SOCIETY

Downtown Moscow's Manezh Square on Saturday became a battlefield between belligerent soccer fans and police. Ordinary passersby, internal migrants from the North Caucasus, were beaten by nationalists. The clashes were sparked by last week's death of Spartak Moscow fan Yegor Sviridov killed in an interethnic brawl.

(Kommersant, Vremya Novostei, Vedomosti, Moscow Times, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

The Khimki town court has overturned a defamation conviction against journalist Mikhail Beketov, who had accused the Khimki mayor of being involved in organizing "political terror" in the town.

(Vremya Novostei, Moscow Times, Rossiiskaya Gazeta)

St. Petersburg Governor Valentina Matviyenko's statement on the relocation of the controversial Okhta business center became a real sensation.

(Rossiiskaya Gazeta)

LAW AND ORDER

Two explosions hit downtown Stockholm Saturday evening. Sweden says this was a terrorist attack.

(Vremya Novostei, Kommersant)

Russian governors will have to establish "coordination conferences" to join efforts of regional and federal law enforcers, in line with a presidential decree.

(Nezavisimaya Gazeta, Kommersant)

SPORTS

Hockey club Vityaz Chekhov needed only six seconds to choose between hockey and its usual occupation: Vityaz players attacked their rival team from Siberia Avangard Omsk in a mass brawl.

(Rossiiskaya Gazeta)

Snowfall impedes traffic in Russian capitalhttp://en.rian.ru/russia/20101213/161748013.html

02:56 13/12/2010

A heavy fall of snow that started in Moscow on Sunday night has impeded traffic on the roads of the Russian capital, traffic police said.

"There have been no serious accidents, but they are possible due to temperature differences that cause ice slick," a police spokesman said, adding that in such weather pedestrians are run over more often due to longer braking distances.

Meteorologists say the snowfall will continue until Monday evening.

MOSCOW, December 13 (RIA Novosti)

Kamchatka volcanic ash reaches 308 kilometres http://english.ruvr.ru/2010/12/13/36712334.html

Dec 13, 2010 10:02 Moscow Time

Kamchatka volcanic eruption ash has reached the settlement of Tigil, 308 kilometres northwest of the giant erupting volcano Kizimen.

The ash and gas plume has reached an altitude of 3 kilometres, posing a threat to aircraft.

Kizimen is located at 2,500 metres above sea level. It last erupted in 1929. 

YEARENDER: Russia's ties with Ukraine, Poland to get warmer in 2011 http://www.monstersandcritics.com/news/europe/news/article_1605186.php/YEARENDER-Russia-s-ties-with-Ukraine-Poland-to-get-warmer-in-2011

By Andrew Yurkovsky Dec 13, 2010, 2:06 GMT

Moscow/Warsaw/Kiev - Russia's relations with Ukraine and Poland, at a low point only a year ago, are likely to continue their rebound in 2011, with a deepening of economic ties between Kiev and Moscow and fresh efforts to overcome long-standing differences with Warsaw.

Two unrelated events made this change possible. One was the April plane crash in Russia that claimed the life of Polish President Lech Kaczynski - a tragedy that called forth an outpouring of sympathy by Russian officials and ordinary citizens alike. The other was the election in February of pro-Russian Viktor Yanukovych as Ukraine's president.

For Poland, the relationship with Russia has been simplified because Prime Minister Donald Tusk and the new president, Bronislaw Komorowski, share the same party and similar perspectives on foreign policy. The late president had frequently expressed anti-Russian views.

'Surely now Poland will have a unified foreign policy because there will be no conflict between the president and premier,' said Agnieszka Lada, an analyst with the Warsaw-based Institute of Public Affairs.

Relations with Russia will especially benefit.

'It will surely be a non-controversial policy focused on taking care of issues and attempts to reach understanding,' she said.

Nevertheless, Russian-Polish ties are likely to remain fragile, as leaders from both sides have to overcome deep historical differences.

Perhaps the biggest issue dividing the two countries is the massacre during World War II of some 22,000 Polish officers and intellectuals by the Soviet secret police. In a step towards reconciliation, Russia's State Duma last month approved a declaration squarely blaming then Soviet leader Josef Stalin for the killings.

More recent strains include Poland's participation in a long-range NATO missile shield that Moscow perceived as a threat. However, plans for that shield were abandoned last year in favour of a revamped shield that Moscow has been invited to join.

Komorowski seems committed to putting an end to animosity between the two countries, acknowledging Moscow's security interests during a recent visit by Russian President Dmitry Medvedev to Warsaw.

'We managed to reconcile with the Germans, we managed to reconcile with the Ukrainians, so now it is Russia's turn,' he said last month on Polish television.

Ukraine's Yanukovych is described by analysts as taking a similarly pragmatic approach to Moscow - in sharp contrast to his predecessor Viktor Yushchenko's anti-Moscow line.

Though often criticized as being too cosy with Moscow - his political base is the heavily Russified eastern part of Ukraine - the new president is no Kremlin puppet.

'I think ... the Yanukovych government is building a powerful ruling structure for itself, rather than doing something on the orders of the Kremlin,' said Gleb Prostakov of the Kiev-based Expert Council Analytical Centre.

The most controversial act by the new government was the agreement in April to extend permission to Russia to base its Black Sea fleet in Ukraine's Crimean peninsula in exchange for cheaper natural gas.

Kiev under Yanukovych has also signed other significant deals with Moscow - one on cooperation in aerospace development and another giving Russian energy giant Gazprom the right to sell gas directly to Ukrainian customers rather than through an intermediary.

These are a result of both the president's initiative and the close alignment of the Russian and Ukrainian economies.

Shared interests, however, are likely to highlight some differences between the two countries, said Donetsk-based political scientist Ruslan Kulik.

Achieving long-term progress on such issues as energy and aerospace will require continued effort, and addressing some sore points. The movement of Russian armaments and ships in Ukrainian territory or the large presence of Ukrainian guest workers in Russia, which some Russians resent, can't be resolved through talk alone.

'Ukraine and Russia are so closely linked economically and politically that no matter what happens, there will always be disputes,' Kulik said.

WIKILEAKS

US embassy cables: Russia targeting Tajikistan to reduce western influence, says UShttp://www.guardian.co.uk/world/us-embassy-cables-documents/45022

guardian.co.uk, Sunday 12 December 2010 21.30 GMT

US embassy cables: 'We won't be inviting the Russian military to dinner any time soon' - US embassy in Tajikistan guardian.co.uk, Sunday 12 December 2010 21.30 GMT

http://www.guardian.co.uk/world/us-embassy-cables-documents/86736

WikiLeaks May Increase Kremlin Clan Infighting http://www.themoscowtimes.com/opinion/article/wikileaks-may-increase-kremlin-clan-infighting/426126.html

13 December 2010By Vladimir Frolov

It is hard to believe that Julian Assange, founder of the WikiLeaks web site, ever intended to meddle in Russian politics, particularly in its most sensitive part — the presidential succession of 2012.

But this could be the result after WikiLeaks published secret diplomatic cables from the U.S. Embassy in Moscow, some dealing with the “tandem politics” in ways that shatter the facade of unity among the Putin and Medvedev elites.

They expose the rivalry and simmering hatred between the clans around Prime Minister Vladimir Putin and President Dmitry Medvedev and the splitting loyalties of the Russian pundits and business interests.

Medvedev’s camp comes across as almost openly agitating for U.S. support of their boss’s presidential run while making no secret of its disdain for Putin.

The cables’ analytical angle portrays the U.S. Embassy as quietly rooting for Medvedev, sometimes lamenting that his “unilateral routes to re-election are becoming narrower as he avoids taking destabilizing steps, such as firing senior Putin loyalists or changing the political system.” (This cable was written before Medvedev fired Mayor Yury Luzhkov.)

U.S. Ambassador John Beyrle comes across as the voice of reason in the cables when he advocates courting Medvedev while engaging with Putin, “who will continue to have a significant say in Russian affairs for the foreseeable future, regardless of his formal position.”

The cables’ exposure is likely to intensify the infighting between the political clans who advocate a Medvedev or Putin option in 2012.

Medvedev’s camp appears to be emboldened by the U.S. tacit support, while Putin’s circle is struck by the degree of elite disloyalty made evident in the embassy reporting.

It is certainly no coincidence that Medvedev’s economic adviser, Arkady Dvorkovich, veered widely off the economic terrain in his recent interview with the BBC to state explicitly that Medvedev wants to run in 2012. It is a calculated signal to the Russian elites, particularly in business, to endorse Medvedev for president in the next election.

The ideal could be to transform the now obvious Medvedev-

Putin competition from a behind-the-scenes affair into a more open political debate on the country’s future course, making the system more pluralistic and flexible.

The downside for Medvedev could be that he might face a different competitor in 2012 who enjoys Putin’s backing.

Vladimir Frolov is president of LEFF Group, a government-relations and PR company.

Russian educational performance of 15-year-olds again below OECD international average

http://www.bne.eu/dispatch_text13869

BOFITDecember 11, 2010

The OECD this week published 2009 PISA evaluation of 15-year-old students in the areas of reading skills, mathematics and natural sciences in 34 member countries and 31 partner countries and regions. Russian students performed below the participating coun-tries' average in all three categories of the survey. PISA tests have been organised every three years since the first round in 2000. Russia has consistently ranked below aver-age in PISA comparisons.

In the latest PISA study, which had a special focus on reading literacy, Russian students ranked 43rd (on par with Turkey and Dubai) out of the 65 countries and regions surveyed. The reading framework was organised into three parts: finding a particular piece of information in a text, understanding core relationships of information in a text and deeper assessment of the text based on the student's own experience and knowledge. The third aspect of the reading framework proved particularly challenging for Russian students.

Russian students placed 38th in math and 39th in natural sciences (on par with Greece and Croatia). Math and natu-ral sciences tasks were broken into six levels of difficulty, based on e.g. the ability to apply theoretical knowledge to practical situations. Only 18 % of Russian students were able to solve problems in the three toughest problem groups in the math and natural sciences categories. Some 49 % of Finnish students, who again placed in the top-tier of the PISA comparisons, were able to solve the hardest problems and 46 % of the toughest problems in natural sciences.

Russian officials concede their failure in education and reliance on old-fashioned teaching methods _ especially when it comes to giving students the skills needed to ab-stract and apply learned knowledge to practical situations.

A report from UNDP found that Russia spends consid-erably less per student on secondary education than the OECD average. On the other hand, Russian class sizes are smaller than the OECD average. UNDP found that in 2006 average class size in Russia was just 18 students, com-pared to the OECD average of 24 per class. The ratio of teachers to students was 1 to 10 in Russia in 2006, com-pared to an OECD average of 1 to 13.

Vogue Russia’s January Covergirl is also Vladimir Putin’s mistress.http://scallywagandvagabond.com/2010/12/vogue-russias-january-covergirl-is-also-vladimir-putins-mistress/

By Scallywag • Dec 13th, 2010

How to piss off your readers…

It looks like Vogue Russia‘s new Editor in Chief Viktoria Davydova who recently succeeds ‘beloved’ editor Aliona Doletskaya (styleite) has made a very horrendous interesting choice in the using of alleged (don’t you love that word?) mistress of President Vladimir Putin and former Olympic ‘rhythmic’ gymnast 27 year old Alina Kabeva.

styleite: Fashionista reports that readers are not at all pleased with Davydova’s cover pick, or the direction she is taking the mag. As one former fan wrote on The Fashion Spot: “What a downgrade, I am completely shocked and disappointed. What on earth were they thinking about when they picked this shot? Everything is just wrong about this cover and why Alina? I am so angry, I don’t even want to buy the magazine this month.”

Which has us wondering what inspired Viktoria Davydova when she chose to use the alleged mistress? Could it be that she has been paying attention to her Western counterparts who have made a resounding habit of using contentious role models to give magazine sales a nice uplift? Or was this just merely an attempt at compelling aesthetics, aesthetics which which at first glance have even us grimacing?

Fashionista: It doesn’t help that Kabaeva is wearing the same gold Balmain dress that has already seen countless covers. Five pages of comments have already amassed over at the online forum The Fashion Spot bemoaning the new Russian Vogue.

If Davydova was intending to rustle some feathers she certainly has managed to do that, if on the other hand she was also hoping to give sales a lift, could one perhaps politely tap her on the shoulder and remind her as much as America loves its contentious media whores, perhaps appropriating such strategies in the mother land may on the surface seem inspiring, but upon further investigation especially upon using the words ‘Her main victory’ in Russian between Alina Kabeva’s legs (most probably alluding to her purported relations with Mr Putin and perhaps a veiled statement on most female’s perceived accomplishments) one has to wonder is Russia ready and eager for a downtrodden version of People or worse Page 6 staring them in the eye?

Sometimes even a sexy dress needs to be just that, worn at the most compelling moment, even if the urge to shock and titillate right now and then is too much to resist…not that even we here at the West have completely managed to master such inclinations.

Madonna to open luxury gym in Moscow http://www.smh.com.au/executive-style/fitness/madonna-to-open-luxury-gym-in-moscow-20101213-18v0y.html

December 13, 2010 - 3:34PM

Queen of pop Madonna will open a gym early next year near Red Square aimed at Moscow's designer-clad elite, who are spending exorbitant sums on a fitness frenzy that has gripped the capital.

The state-of-the-art gym, to open in mid-March, will be the second of Madonna's "Hard Candy Fitness" gyms. The 52-year-old launched the brand in Mexico City last month.

"I know that we will create the ideal workout environment in Moscow," the American singer said in a statement.

The spacious 35,000 sq f (3250 sq m) gym is a partnership between Madonna, the US-based private equity firm New Evolution Ventures (NeV) and Irina Razumova, founder of Russian luxury gym chain Planet Fitness.

Western-style gyms have mushroomed across Russia in recent years, with Moscow memberships costing as much as $US25,000 ($25,538) a year. Demand for designer gym clothes has soared.

Prime Minister Vladimir Putin, a judo black belt, has said fitness is vital for his nation, where male life expectancy is just 59.

NeV is considering 10 more Hard Candy gyms in Brazil, Argentina, Europe and Asia, the statement said.

DECEMBER 13, 2010

Chronicle Of a Lost Cause http://online.wsj.com/article/SB10001424052748704594804575649232062957078.html?mod=googlenews_wsj

The Chechen Struggle

By Ilyas Akhmadov and Miriam Lanskoy Palgrave Macmillan, 270 pages, $35

Autocratic rule, dreaded security forces, benefactors in the Kremlin: so much for the dream of Chechnya as an independent, democratic state.By JOSHUA YAFFA

The center of Grozny is intersected by grand, tree-lined boulevards and anchored by an exquisite mosque. In June, I sat at a new café on Prospect Putin, sipping a cappuccino. It was not an unusual way to pass an afternoon in a European capital—Grozny is the capital of the Russian republic of Chechnya—except that the scene had the eerie serenity of a Hollywood back lot: People with lost, vacant eyes shuffled along under the shadow of freshly painted apartment blocks empty of life or noise.

A decade ago, Grozny was largely a mound of rubble. It had been the site of two vicious wars as Russia countered a Chechen separatist movement after the fall of the Soviet Union. The conflicts left Chechnya's infrastructure in ruins and much of its population dead or in refugee camps. Rebuilding began under Akhmat Kadyrov—the mufti, or religious leader, of the Chechen rebels before he switched sides to support the Russians—who was installed by Moscow as Chechnya's president in 2003. He was killed by a bomb a year later; his son, Ramzan, now 34 years old, has been president since 2007. Under the younger Kadyrov's autocratic rule, Chechnya has regained at least a façade of security and economic growth.

The republic's embattled post- Soviet history is the subject of "The Chechen Struggle," a bleak chronicle of, as the subtitle has it, "independence won and lost." The author is Ilyas Akhmadov, a former Chechen separatist who was a government minister during Chechnya's short-lived autonomy from Moscow. His book, written with Miriam Lanskoy, is an on- the-ground account of how Russia's indiscriminate violence and infighting within the rebel movement destroyed any hope for a negotiated end to the long-simmering conflict.

It is a bitter irony for Mr. Akhmadov that Chechnya today has managed partly to divorce itself from Russia, though not in the way that the separatists once envisioned. President Kadyrov, guided by his own garbled vision of Chechen tradition and Islamic code, has turned the republic into his personal fiefdom. In an attempt to outflank the region's

growing Islamic militancy and to present himself as a protector of religious observance, Mr. Kadyrov has introduced an Islamic tinge to his governance. He has demanded, for example, that women wear headscarves in government buildings and has instituted periodic bans on alcohol. He has allowed many aspects of family law to be decided by shariah, or Islamic law.

An unofficial amnesty policy has brought into the Chechen security forces thousands of former rebels, known as the kadyrovsty, who are loyal not to the Kremlin but to Mr. Kadyrov. Perhaps even more worrying for Moscow, Mr. Kadyrov runs his own foreign policy. He visits Persian Gulf countries with all the fanfare of a head of state, and his regime has been linked to assassinations in Austria, Dubai and Turkey.

Yet in the ways that matter most to the Kremlin, the republic remains very much within Moscow's orbit: Chechnya is still part of the Russian Federation, and Mr. Kadyrov—who maintains a stranglehold on Chechen politics—is loyal to his benefactor, Russian Prime Minister Vladimir Putin, who has steered billions of rubles in reconstruction funds to the republic. Mr. Putin and Dmitry Medvedev, Russia's president, tolerate Mr. Kadyrov's excesses because they fear the Islamist fighters who oppose him and the power vacuum if Mr. Kadyrov were to fall.

For Mr. Akhmadov, who lives in the U.S. as a political refugee, Chechnya's post-Soviet history is an especially personal tragedy. He was a sergeant major in the Soviet army but then took up arms during the First Chechen War in 1994. When a ceasefire ended fighting two years later, Mr. Akhmadov became a close adviser to separatist leader Aslan Maskhadov, who was elected Chechen president. However unrealistically—given Russia's willingness to use extreme violence and its determination to retain a hold over the republic—Mr. Akhmadov dreamed of Chechnya's national self-determination.

Hostilities flared anew in 1999, this time with a Chechen resistance that had become infused with radical Islamism. Still, Mr. Akhmadov clung to the hope that the United Nations would recognize the legitimacy of the Chechen bid for independence and send help. As the government's foreign minister from 1999 to 2005 (he fled abroad in 1999), he met with representatives from the European Parliament and the U.S. State Department, most of whom offered little hope of Chechnya's rescue.

Then came the news in 2004 of the grotesque terror operation—directed by Shamil Basayev, Mr. Akhmadov's onetime mentor—against an elementary school in Beslan, Russia, that left more than 300 dead. The "deliberate killing of children," Mr. Akhmadov says, was "evil beyond any moral code."

After Beslan, he writes, "the Chechen cause lost all of its supporters overnight." The insurgency has continued, but it has replaced the goal of Chechen national independence with the creation of an Islamic "emirate" in the Caucasus. Mr. Akhmadov feels disgusted by both Ramzan Kadyrov's rule and the jihadists who hijacked the independence movement. He nurses a vision of the Chechen people one day resurrecting the idea that

animated their initial revolt in 1994: the establishment of Chechnya as a secular, democratic state.

He may have a long wait. When I was in Grozny a few months ago, I didn't meet a single person with any interest in fighting for independence. Instead, Chechens seemed preoccupied with keeping their sons alive and safe from abuse at the hands of the president's kadyrovsty.

Mr. Yaffa, an associate editor at Foreign Affairs, traveled to Chechnya this summer with researchers from Human Rights Watch.

11:15

Stalin’s grandson disputes Katyn tragedyhttp://rt.com/news/line/

Evgeny Jughashvili, the grandson of Soviet leader Joseph Stalin is suing the Russian State Duma over its statement that blames Stalin for the Katyn massacre. The plaintiff asks the Supreme Court to recognize the decision invalid and is claiming more than $3 million in compensation, to defend his grandfather’s name. The Duma issued its statement on November 26 acknowledging Stalin’s responsibility for the murder of over 21,000 Polish officers in the Katyn forest in 1940. Earlier this year, a Moscow court rejected another claim from Jughashvili, against the Russian State Archive, asking the court to recognize the Katyn documents as false.

National Economic Trends

Budget deficit set to soar in December http://www.bne.eu/dispatch_text13869

Troika DialogDecember 13, 2010

Budget revenues reached R7.4 trln ($245 bln) in 11m10 while expenditures came in at R8.3 trln ($275 bln), giving a deficit of R0.9 trln ($30 bln). As expected, budget spending rose in November to reach a monthly high for 11m10 of R862 bln ($27.8 bln) compared with the average of R754 bln over January-October. However, spending will soar in December, as usual.

The government plans to spend R10.2 trln in 2010. This implies further expenditure of R1.9 trln in December. However, usual practice sees R200-300 bln of spending

postponed to the next year. Hence, expenditures may reach R1.6-1.7 trln in December. Meanwhile, revenues also typically climb at year end. We expect revenues of around R1 trln this month. The budget deficit will be R600-700 bln in December alone, bringing the annual figure to R1.5-1.6 trln (if the government postpones spending, of course).

Liquidity on the money market will be high in December but will decline in January as the government substantially reduces spending at the beginning of the year (as it does every January).

Evgeny Gavrilenkov

Kudrin: Russia's National Well-Being Fund Should Be Boosted to 60%/GDP http://www.bne.eu/dispatch_text13869

AtonDecember 13, 2010

The government's National Well-Being Fund (NWF) should be boosted to 60% of GDP, Finance Minister Alexei Kudrin said on Friday (10 Dec). He said the NWF could benefit from privatisation revenues. While Kudrin did not name a timeframe in which to boost the NWF, he did say that necessary changes (presumably to allow for non-oil related revenues to be channelled into the fund) would take two years.

Currently, the NWF stands at only one-tenth of the 60%/GDP target set by the finance minister.

Bottom line Boosting the NWF would be positive in our view, as this would help to alleviate Russia's dependence on oil and create a safety net for the population. In addition, using proceeds from the sale of state assets is a sound idea as we believe this should be recognised as extraordinary revenue. We think this process could begin as early as next year, although we believe Kudrin gave a two-year horizon given that the elections in 2011-12 could make the process difficult.

Foreign trade statistics in October http://www.bne.eu/dispatch_text13869Renaissance CapitalDecember 13, 2010

The Central Bank of Russia published foreign trade statistics for October on Friday (10 December). Exports were up to $35bn (vs $34bn in September), and imports were at $24.5bn (vs $23.5bn in September). The corresponding trade balance was $10.5bn, which was above the September level.

Across the sectors, oil and gas exports were $22bn, chemicals $2bn and metallurgy

$3.3bn. However, the increase in exports is largely attributed to the oil and gas sector, as the oil price was above $80/bbl in October. With regard to imports, the food ($3.1bn), chemicals ($3.1bn) and machinery ($10.6bn) sectors were the largest contributors to the rise in imports in October. Therefore, we continue to think companies are retooling post-crisis. Moreover, given the poor harvest this year, food sector imports are also expanding. However, we believe foreign trade terms are likely to improve in the near future, given the extremely favourable global commodity price environment. This will be supportive for the rouble, we believe.

Russia to post “disappointing” growth rate in 2011, RenCaphttp://www.emergingmarkets.me/2010/12/russia-to-post-%E2%80%9Cdisappointing%E2%80%9D-growth-rate-in-2011-rencap/

December 13, 2010

By Andrei Skvarsky.

Russia will show a “disappointing” economic growth of 3.5% next year due to lack of structural reforms, Renaissance Capital and Russia’s New Economic School (NES) think-tank predict.

The optimum annual growth rate for Russia is about 6% as faster growth would generate inflation and make boom-bust cycles more damaging, the two institutions argue in the first issue of RenCap-NES Russian Macro Monitor, a newly launched monthly review.

“Capital flight has increased markedly”, and “a large surge in imports is causing the current account to shrink rapidly”, they say.

On the other hand, the Central Bank’s policies suggest that the government’s maximum inflation target of 7% for 2011 is achievable “despite the somewhat worrying uptick in October and November”, and that the ruble will “recover somewhat”.

Failed Eurobond Means Tripling of Domestic Sales: Russia Credithttp://www.sfgate.com/cgi-bin/article.cgi?f=%2Fg%2Fa%2F2010%2F12%2F12%2Fbloomberg1376-LD7YX91A74E901-312GKR6T9P47KDLUTOMK3LU8FI.DTL

Dec. 13 (Bloomberg) -- Russia plans to more than triple domestic borrowing this month after its first international sale of bonds denominated in rubles failed to attract demand.

The government, which expected lower borrowing costs by selling ruble bonds abroad, faced demands for an extra 60 to 70 basis points in yield compared with domestic debt, Deputy Finance Minister Dmitry Pankin said in St. Petersburg on Dec. 10. The government will increase bond sales at home to 200 billion rubles ($6.5 billion), the

biggest monthly target since September and up from the 60 billion rubles planned, he said.

Foreign investors spurned Russia's offering after the ruble tumbled the most in six months against the dollar in November and Ireland's emergency bailout drove a retreat from emerging- market debt. Foreign-currency bonds from developing countries tracked by JPMorgan Chase & Co.'s EMBI+ Composite Index tumbled 2.4 percent in November, the first decline since May and the worst monthly drop since October 2008.

"The market is completely unprepared now to take on an emerging-market issuer," Pankin said. "We are looking at external markets opportunistically and aren't viewing them as a strategic goal for closing the deficit. The main goal is to develop the domestic market."

Russia is raising money to plug its second consecutive budget deficit this year. The government had planned to sell as much as $3 billion of the ruble-denominated notes with a maturity of up to five years, Pankin said last month. Investors were ready to buy the Eurobonds at yields 30 to 40 basis points below rates on domestic OFZ bonds, he told reporters on Dec. 10. As emerging-market bonds slumped, investors started demanding 60 to 70 basis points, or 0.6 percentage point to 0.7 percentage point, more than OFZs, he said.

'Volatility'

"The volatility on global markets didn't allow them to get attractive rates," said Pavel Pikulev, a fixed-income strategist at OAO Gazprombank, the Moscow-based lending arm of the country's gas export monopoly. "I don't think the Finance Ministry has any interest in borrowing at rates above OFZs."

Yields on Russian dollar bonds rose the most since May last month, adding 39 basis points to 6.01 percent, the highest level since July 29, according to JPMorgan Chase & Co's Corporate EMBI Russia Blended Yield Index.

The ruble is the fifth-worst performer in the past six months against the dollar among the 25 emerging-market currencies tracked by Bloomberg. It depreciated 2.2 percent against the greenback in November for the biggest monthly drop since May.

The currency was little changed at 30.9350 per dollar on Dec. 10. NDFs, which provide a guide to expectations of currency movements and interest rate differentials and allow companies to hedge, show the ruble at 31.1956 per dollar in three months.

Default Swaps

Russia's dollar bonds due in 2020 rose for a second day on Dec. 10, pushing the yield 3 basis points lower to 4.892 percent. The price of the country's ruble notes due August 2016 was unchanged, leaving the yield at 7.310 percent.

The cost of protecting Russian debt against non-payment for five years using credit-default swaps fell 1 basis point to 143 on Dec. 9, down from this year's peak of 217, according to data provider CMA. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent should a government or company fail to adhere to its debt agreements.

Credit-default swaps for Russia, rated Baa1 by Moody's Investors Service, its third-lowest investment grade rating, cost 16 basis points more than contracts for Turkey, which is rated four levels lower at Ba2. Russia swaps cost as much as 40 basis points less on April 20.

Extra Yield

The extra yield investors demand to hold Russian debt rather than U.S. Treasuries fell 1 basis point to 202, according to JPMorgan EMBI+ indexes. The difference compares with 124 for debt of similarly rated Mexico and 167 for Brazil, which is rated two steps lower at Baa3 by Moody's.

The yield spread on Russian bonds is 30 basis points below the average for emerging markets, down from a 15-month high of 105 in February, according to JPMorgan.

Russia is stepping up borrowing to help cover a budget deficit that swelled to 911.5 billion rubles through November, or 2.2 percent of gross domestic product. The world's biggest energy supplier posted a deficit of 5.9 percent of GDP last year, its first since 1999, and estimates this year's gap will narrow to 4.6 percent. China's economy expanded three times faster, at 9.6 percent last quarter, and India's grew an annual 8.9 percent in the three months through September.

Ruble Reserves

Russia raised $5.5 billion from a sale of dollar bonds in April in its first offering on international markets since defaulting on $40 billion of domestic debt in August 1998.

Foreign-currency borrowing accounts for 35 percent of total debt in Russia, compared with less than 10 percent in Brazil, China and India, Goldman Sachs Group Inc. economists led by Dominic Wilson and Constantin Burgi in New York wrote in a note to customers on Nov. 24. President Dmitry Medvedev said at the St. Petersburg economic forum in June he wants to boost the ruble's place in central bank reserves.

Ruble-denominated Eurobonds may help set a benchmark for other Russian borrowers, Pankin said earlier this year.

Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase & Co., Renaissance Capital and VTB Capital were appointed to organize the ruble Eurobond sale. The offering was delayed after canvassing investors because the government was unwilling to issue debt

"at any price," Konstantin Vyshkovsky, the head of the Finance Ministry's debt department in Moscow, said in a telephone interview on Dec. 3.

Ireland Concern

The revised plan to issue 200 billion rubles in debt this month means the Finance Ministry needs to raise 183 billion rubles at the remaining two auctions, compared with 41.7 billion rubles planned earlier. The spending target for this month is equivalent to 20 percent of Russia's annual spending target, Pankin said.

Russia sold more bonds than it offered for the first time ever last week, accepting the highest yield in six months. The sale included 6.5 billion rubles of notes due in August 2012, more than the 5.9 billion rubles planned, at a yield of 6.1 percent, the highest level since June 2, according to data compiled by Bloomberg.

The government intends to proceed with its debut ruble Eurobond "at a more favorable time when there will be no concerns regarding the next Ireland," Pankin said.

--With assistance from Denis Maternovsky in Moscow. Editors: Rodney Jefferson, Gavin Serkin

Russia's credit portfolio to rise

http://www.rbcnews.com/free/20101213114740.shtml

      RBC, 13.12.2010, Moscow 11:47:40.The Bank of Russia expects to see a12-percent increase in the number of loans to non- financial organizations and a 13-14-percent rise in those to individuals in 2010, which significantly beats 2009 figures, Alexei Simanovsky, head of the Central Bank's banking regulation and supervision department, announced today.

December 13, 2010 11:26

Lending to non-financials could rise 12%, to private borrowers 14% in 2010 – CBRhttp://www.interfax.com/newsinf.asp?id=208665

MOSCOW. Dec 13 (Interfax) - Lending to non-financial organizations could increase 12% this year overall, and credits to private borrowers might be up 13%-14% as the year ends, director of the Central Bank of Russia's banking regulation and oversight department Alexei Simanovsky said.

"For the year 2010 we think we see that growth in crediting of non-financial organizations will be 12% and [growth in] credits to the population will be from 13% to 14%," Simanovsky said during parliamentary hearings on issues concerning the Russian banking system.

Cf

Business, Energy or Environmental regulations or discussions

Gazprom, Novatek, Rosneft: Russian Equity Market Preview http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=arA2SHigHvl0

By Denis Maternovsky

Dec. 13 (Bloomberg) -- The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading in Moscow.

The 30-stock Micex Index declined 0.3 percent to 1,656.34 at the close in Moscow. The dollar-denominated RTS Index was little changed, gaining less than 0.1 percent to 1,712.93.

OAO Gazprom (GAZP RX): Japan and Russia are close to signing an agreement on a liquefied natural gas project to begin operations in 2017, the Daily Yomiuri reported. Japanese participants may sign a contract for construction feasibility survey with Russia’s gas export monopoly by the end of the month, the report said. Gazprom shares were little changed, adding less than 0.1 percent to 192.76 rubles.

OAO Novatek (NVTK LI) was downgraded to “sell” at Deutsche Bank with Russia’s second-biggest gas producers’s 12- month target price set at $92. The company’s GDRs fell 2.3 percent to $108 in London trading.

OAO Rosneft (ROSN RX): The Organization of Petroleum Exporting Countries has kept its output targets unchanged Dec. 11, betting supplies in storage and a fragile global economic recovery will prevent crude from surging. Crude futures fell 58 cents on Dec. 10 to $87.79 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 1. Shares of Russia’s biggest oil producer added 2.5 percent to 221.42 rubles.

To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Last Updated: December 12, 2010 22:00 EST

Skolkovo fund to sign agreements with LUKoil, Rosatomhttp://en.rian.ru/business/20101213/161749343.html

06:04 13/12/2010

The Skolkovo foundation, which supervises the eponymous innovation hub outside of Moscow, will sign cooperation agreements with state nuclear corporation Rosatom and oil company LUKoil on Monday, the foundation said.

The deals will be signed at an all-Russian innovation forum. Skolkovo foundation head Viktor Vekselberg and Rosatom chief Sergei Kiriyenko will attend the ceremony.

Skolkovo is being built from scratch 20 kilometers west of Moscow. The center will focus on research in five priority spheres: energy, information technology, communication, biomedical research and nuclear technology.

The fund and American technology company Intel signed a similar agreement on Thursday.

 MOSCOW, December 13 (RIA Novosti)

Larsen, Russia’s Atomstroyexport May Form Venture, Line Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aCJE9E2XVqIM

By Anoop Agrawal

Dec. 13 (Bloomberg) -- Larsen & Toubro Ltd. and Russia’s ZAO Atomstroyexport may form a venture to manufacture equipment for nuclear power projects in India, the Hindu Business Line newspaper reported, without saying from where it got the information.

To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net

To contact the editor responsible for this story: Margo Towie at mtowie@bloomberg.net

Last Updated: December 12, 2010 20:41 EST

Polyus Gold's owner gains on selling company shares

http://www.rbcnews.com/free/20101213105546.shtml

      RBC, 13.12.2010, Moscow 10:55:46.By selling less than 1 percent of Polyus Gold in the form of ADRs and buying the same amount of ordinary shares, Mikhail Prokhorov, the general director and co-owner of the Russian gold producer, earned around $16m on the difference in their prices in London and Moscow, the RBC Daily newspaper reported today.

      Last week, Onexim Group reportedly placed 2.875m ADRs (about 0.75 percent of Polyus Gold's share capital) at $35 each. The ADRs were offered to investors at 5 percent below the market price. Experts see this as a move aimed at boosting Polyus Gold's market value ahead of the upcoming merger, while others say Prokhorov is selling ADRs due to the shares' lack of growth potential.

      At the same time, however, the businessman's friend informed the publication that Prokhorov merely took advantage of the favorable market situation and had no intentions of selling the company's shares.

Polyus Drops on Prokhorov http://www.themoscowtimes.com/business/article/polyus-drops-on-prokhorov/426121.html

13 December 2010

Polyus Gold declined for a third day after Kommersant reported that billionaire shareholder Mikhail Prokhorov sold about $100 million of the gold-mining company’s shares Thursday, citing people it didn’t identify.

The stock slid 2.4 percent to 1,833.12 rubles at Friday’s close in Moscow, paring an earlier loss of as much as 3 percent.

Prokhorov held about 40 percent of Polyus before the sale of about a 0.75 percent stake, Kommersant said.

“Polyus is down from yesterday’s close after core shareholders sold $100 million of stock overnight,” John Heisel, a sales trader at Citigroup, wrote in e-mailed comments Friday.

(Bloomberg)

Nash to Leave Renaissance and Join Verno Capital, FT Reports http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ahY_VQYBPuZY

By Blanche Gatt

Dec. 13 (Bloomberg) -- Roland Nash, managing director and chief strategist of Renaissance Capital Ltd., is leaving the Moscow-based investment bank to join Verno Capital, a recently set-up investment fund, the Financial Times reported, citing Nash and Renaissance Capital.

Nash, who will own almost 40 percent of Verno Capital, said the move is a “major opportunity,” according to the newspaper.

To contact the reporter responsible for this story: Blanche Gatt in London at bgatt@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

Last Updated: December 12, 2010 21:11 EST

FUNDS: Roland Nash quits Rencap to join Verno Capital http://www.bne.eu/storyf2448/FUNDS_Roland_Nash_quits_Rencap_to_join_Verno_Capital

bne December 13, 2010

A doyen of the Russian market and chief strategist at Renaissance Capital, Roland Nash has quit his job and joined a fund that raised the first-ever investment by Abu Dhabi in Russia.

Nash will join Chief Investment Officer Dmitri Kryulov, one of three founders of Verno Capital, as co-partner. Verno has been going for about a year and has $30m under management, though it announced at the end of November a $100m commitment from Mubadala Development Company, a state-owned investment vehicle.

Nash, who has been the public face of Renaissance Capital, will become the chief investment strategist at Verno, which the partners hope to build into the leading specialist fund for the Commonwealth of Independent States. "Everyone recognises the need to invest into emerging markets but they still remain nervous," said Nash over the weekend. "There are other funds out there investing into this part of the world, but no one has the CIS focus Verno has. Mubadala is very conservative and has never invested into this region before, so their commitment is a testament to the strength of the story and the focus of the fund."

Before establishing Verno, Kryukov and his senior team were at Kazimir Partners, which delivered annualized returns to investors of 30% from inception in 2002 to 2008.

Nash has spent his entire career at Rencap, joining the bank as an associate shortly after completing his PhD in economics when the bank was founded in 1996. He rose quickly through

the ranks, eventually replacing Dirk Damrau, Rencap's first head of research.

Damrau joined the original Rencap team under Boris Jordan and is responsible for setting the sassy style of Rencap research that Nash turned into a fine art. Nash's string of penetrating (and funny) research notes about the relationship between his beaten-up Lada Zhiguli and the Russian economy in transformation are classics of the informal but informative research genre. An oft-cited commentator, Nash's opinion is not only sought out by international investors, but also by the Kremlin, which has regularly called him in for his input on the reform process.

Nash arrived in Russia while still working on his economic PhD at the London School of Economics to join the Russian-European Centre for Economic Policy (RECEP), an EU-funded Tacis project that provided the Russian government with economic and policy advice in the early 1990s. RECEP produced Russia Economic Trends, a monthly publication that The Economist dubbed at the time, "the Bible of economics in Russia."

RECEP was highly influential and Russia Economic Trends was mandatory reading for anyone covering or working in Russia at the time. Most of its members - foreign PhD students from Harvard and LSE, as well as the brightest young Russian economists - have gone on to populate many of the leading investment banks working in Russia. Al Breach was a contemporary and became head of research for Russia at Goldman Sachs, famously persuading the bank to mark all Russian equities to "buy" in 1999 in a legendary call. Rory MacFarquhar, another contemporary, also went on to work at Goldman Sachs, but more recently joined the US Treasury as a senior advisor.

Only last week, Rencap teamed up with the New Economic School to start producing Rencap-NES Macro Monitor, a monthly publication that will in effect recreate Russia Economic Trends. Nash is on the board of directors in the joint venture, a position he will keep as the Rencap representative, despite leaving the bank. "The RenCap-NES Russian Macro Monitor provides a fresh look at economic issues related to the budget, trade, inflation, gross domestic product, industrial production, investment, monetary policy and reforms," the two bodies said in a press release.

Nash was joined at the RenCap-NES press conference by Sergei Guriev, the rector of NES, who (no surprise here) cut his teeth at RECEP. The rational for the publication is that while there is plenty of macroeconomic research produced by the investment banks and the likes of the World Bank, there is a dearth of deep analysis from a truly independent source. Everyone was so badly caught out by Russia's 7% economic contraction at the end of 2008 after five years of 6%-plus growth, the upshot is that everyone wants to see better quality macroeconomic research. "We wanted to give a more optimistic forecast for next year's growth," Nash said at the press conference," but NES were more conservative. So we discussed it and they persuaded me they were right."

The first predictions out of Rencap-NES are more cautious about Russia's prospects for 2011 than those from the government and many international financial organisations, arguing that everything depends on the government's success in carrying out reforms. "Economic growth in Russia will continue to disappoint in 2011. The research team anticipates that economic growth

in 2011 will be 3.5%, more or less unchanged from growth in 2010. With the oil price approaching $90/barrel and much of the rest of the emerging world enjoying strong recovery, economic growth at below 4% for Russia should be considered disappointing. Sustainable medium-term growth in Russia can rise from the current 3-4% to 6% with the right structural reforms," the Rencap-NES team said in their inaugural report.

Nash's departure was amicable and relations between him and Rencap's founder and CEO, Steven Jennings, remain good, with Nash remaining on the boards of several companies he supervised while vice president at Renaissance. He will continue to appear as a speaker at Rencap events and Verno Capital will remain a client of Rencap.

DISCLAIMER: Roland Nash is a minority shareholder in bne.

Dec 13, 2010 02:40 ET

Bombardier Transportation Signs Agreement With Russian Railwayshttp://www.marketwire.com/press-release/Bombardier-Transportation-Signs-Agreement-With-Russian-Railways-TSX-BBD.A-1367577.htm

Bombardier announces new partnership in Russia with purchase of a stake in signalling equipment manufacturer EltezaBERLIN, GERMANY--(Marketwire - Dec. 13, 2010) - BT Signaling B.V. has signed an agreement to purchase a stake in the signalling equipment manufacturer United Electrical Engineering Plants, known as Elteza. Elteza is a subsidiary of Russian Railways (RZD). Initially, BT Signaling B.V. will purchase a 25 per cent stake in Elteza. Following further approval, BT Signaling B.V. will increase its stake to nearly 50 per cent. RZD will remain the majority shareholder. The agreement was signed at a ceremony in Moscow on December 13, attended by Pierre Beaudoin, President and CEO of Bombardier Inc. and Vladimir Yakunin, President of Russian Railways.

Elteza is Russia's largest signalling equipment producer with more than 3,000 employees across seven manufacturing sites. The company focuses on the design, development and production of rail signalling equipment and automatic and remote train control systems which have been delivered in Russia, the Commonwealth of Independent States (CIS) and the Baltic states. The new partnership will be one of the first successful examples of the privatisation of a Russian Railways' subsidiary and part of the modernization strategy of RZD.

Already strong partners in the signalling sector, Bombardier and RZD have a well established engineering joint venture, Bombardier Transportation (Signal) Ltd., in operation in Moscow since 1996. This partnership has worked in close cooperation with Elteza to equip over 90 Russian stations with BOMBARDIER EBI Lock 950 computer-

based interlocking (CBI) technology. This new agreement will lead to the creation of an Elteza department dedicated to new technologies and focusing on the manufacture of products including EBI Lock 950 as well as the latest generation of wayside products.

Commenting on the announcement, André Navarri, President and COO of Bombardier Transportation, said: "This agreement is a landmark for Bombardier Transportation, increasing our already strong presence in the rail control sector in the region and expanding our signalling technology interests." He added: "We value this opportunity to further develop our presence in Russia but also in CIS and Baltic States."

Sergey Ermolaev, Chief Country Representative Russia and CIS of Bombardier Transportation, stated: "We have had a strong relationship with RZD for many years and this new agreement further confirms the strong reputation of our technology and our organisation. We are very pleased to be working together on this exciting venture and look forward to continuing to develop our operations in Russia."

Completion of this transaction is subject to the approval of all required governmental authorities and to other consents and other usual conditions. The transaction is expected to be completed during the first quarter of 2011.

Bombardier Transportation's Rail Control Solutions portfolio covers the complete range of BOMBARDIER CITYFLO mass transit solutions, from manual to fully automatic systems, as well as communication-based systems. It also provides BOMBARDIER INTERFLO mainline solutions, from conventional systems to ERTMS level 2 systems. Bombardier solutions encompass a broad portfolio of wayside and onboard products.

DJ Amur Minerals Corp Awaits Kun-Manie Mining Licence Approvalhttp://www.tradingmarkets.com/news/stock-alert/ammcf_dj-amur-minerals-corp-awaits-kun-manie-mining-licence-approval-1363158.html

Posted on: Mon, 13 Dec 2010 03:03:15 ESTLONDON, Dec 13, 2010 (Dow Jones Commodities News via Comtex) --

Amur Minerals Corporation (AMC.LN), an exploration and development company focused on Far East Russia, Monday announced that Rosnedra, the Russian State regulator, completed its initial review of the Kun-Manie Mining Licence Application and forwarded the documentation to the four Russian agencies that participate in the approval of the mining application, adding that three of the four external agencies included in the process have approved the application.

MAIN FACTS:

-Company anticipates that the fourth agency, the Ministry of Economic Development, will provide its affirmative input and approval in due course.

-A resolution from the Federal Anti-monopoly Services has been completed and provided to Rosnedra regarding approval of the licence.

-Rosnedra is currently awaiting input and information from the Ministry of Economic Development which is responsible for establishing the projected average market price of nickel-copper concentrate to be used in setting the expected payments and fees related to the mining licence.

-Following the Ministry of Economic Development's input, Rosnedra will then draft the mining licence and its terms in accordance with the regulations of the Russian Federation.

-Shares closed Friday at 5.13 pence valuing the company at GBP12.83 million.

-By Jana Weigand, Dow Jones Newswires; 44-20-7842-9314; jana.weigand@dowjones.com

(END) Dow Jones Newswires

KamAZ May Buy Stake in Belarus Truckmaker MAZ, Kommersant Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=avHmoFG6J2mo

By Ilya Khrennikov

Dec. 13 (Bloomberg) -- OAO KamAZ, Russia’s largest truckmaker, which is part-owned by Daimler AG, may acquire a stake in Belarussian truckmaker MAZ, Kommersant reported, citing MAZ Chief Executive Officer Alexander Borovsky.

The controlling stake maybe acquired by Russian Technologies Corp., which controls KamAZ, Sergei Kogoghin, chief executive officer of the Russian automaker, told Kommersant.

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: December 13, 2010 01:52 EST

Kamaz in talks to buy Belarus' MAZhttp://www.bne.eu/dispatch_text13869

bneDecember 13, 2010

Russian truck maker is in talks to buy its Belarusian counterpart, MAZ, maker of monster trucks used in open pit mines around the world, Reuters reports, citing Kamaz CEO.

The intialtive was started by the state-owned Russian Technologies, which has a majority stake in Kamaz.

"We are always interested in either a controlling stake or the 100 percent," Sergei Kogogin told reporters adding the company currently "had no money" to finance the takeover reports the newswire.

MAZ is Belarus' largest company making trucks and buses. The government says it is looking for a strategic investor and will hire an assessor to value the asset MAZ's CEO Alexander Borovsky told reporters on December 10.

Venezuela is also in talks over taking a slice of the Minsk Automobile Plant, according to reports, but Russia's Kamaz and Italy's Iveco are also in the frame. Sergei Kogogin, head of Kamaz, told reporters the same day: "We are always interested in either a controlling stake or 100 percent," adding that the company currently "had no money" to finance the takeover, Reuters reported.

Chevrolet Europe needs success in Russia to fulfil its goalshttp://www.detnews.com/article/20101213/OPINION03/12130302/1148/auto01/Chevrolet-Europe-needs-success-in-Russia-to-fulfil-its-goals

Valencia, Spain- Chevrolet Europe has weathered the economic storm better than most of its competitors, benefitting hugely from government cash-for-clunkers incentives, but if its ambitious long-term plan is going to be successful, it all depends on Russia.

That might not sound a very attractive proposition, with recent Wikileaks revelations accusing Russia of being a corrupt, mafia state, not to mention the fact parent company GM found itself on the wrong side of Russian Premier Putin last year. But Russia has the potential to be the biggest market in Europe. Russia took probably the biggest hit in Europe last year, when sales dived 50 percent to 1.45 million. Thanks to a government subsidy scheme to encourage owners of old clunkers to buy new cars, sales have been recovering this year, and might hit 1.9 million for all of 2010, according to the Association of European Business.

Wayne Brannon, President and Managing Director of Chevrolet Europe, said the plan is still for Chevrolet to double its sales in five years.

Analysts say that is probably unattainable and way too ambitious, although they agree that the company has done surprisingly well since reinventing itself. Chevrolet Europe emerged from the old Daewoo company in South Korea. GM took over Daewoo in 2002 and now owns about 70 percent of the company. Most of its products in Europe — the Spark, Aveo (soon to be the Sonic), Cruze and Captiva — are made in Korea. The new Orlando minivan, unveiled here last week, is also made there. Chevrolet doesn't sell many, but the iconic sports cars the Corvette and Camaro add luster to many dealerships across Europe. Next year the Volt, with its high-technology extended range electric vehicle system, will attract traffic into showrooms, who may then settle for something a little more modest.

Overly ambitious

"Any car manufacturer that claims to able to double the business in five years is guilty of wishful thinking and Chevrolet is definitely being too ambitious," said Walt Madeira, Europe sales forecasts analyst at IHS Automotive.

"But Chevrolet is doing a good job though. And they weathered the economic storm well, largely because of scrappage incentives which benefitted smaller vehicles. They have a good portfolio of small vehicles and they benefitted," Madeira said.

Chevrolet is very popular in Russia, Madeira said.

That might not be enough.

"To double sales, that is very, very ambitious and the market place is so crowded at the moment. If Chevrolet achieved 600,000 in five years, or 650,000 that would be very positive," he said.

Professor Stefan Bratzel of the Center of Automotive Management in Bergisch Gladbach, Germany, agrees that Russia is the key.

"To double sales in five years, that's very ambitious and Chevrolet is dependent on that. It is very hard to say if the Russian market will come back again and have a good growth rate. At the moment the Russian government is trying to support car sales again, but the Russian market is the one in Europe that has the potential for growth possibilities, but it's really hard to project what will happen," Bratzel said.

Differentiate the products

Chevrolet, in its declared ambitions for Europe, says it is careful to differentiate itself from the other GM presence, Opel-Vauxhall. GM Europe's Opel-Vauxhall is in big trouble. In the first nine months of 2010 GM Europe lost more than $1.2 billion. GM Europe CEO Nick Reilly has said he hopes net profit will reach 4 percent to 5 percent of sales in 2012, but said this might take until 2013 to attain. Break-even is all that can be

hoped for in 2011, although Reilly said recently there is now a chance to make money in 2011, although he didn't say how much. GM Europe has said it plans to spend $4.6 billion restructuring, which involves cutting 8,300 jobs from the 48,000 workforce. Chevy's Brannon, speaking at the launch at this northern Spanish city, pointed out that Chevrolet Europe is in the black, and has made money every year since 2007. Brannon gave no details though.

Chevrolet says it has positioned itself below Opel-Vauxhall in the market place, but it is difficult to see how this works. Opel, mainly German orientated, and Vauxhall of Britain are mainstream mass car manufacturers like Ford Europe, Renault and Peugeot-Citroen of France and Italy's Fiat. They all compete against each other on price, being perceived as much of a muchness in terms of quality and desirability.

Too much alike

Only Germany's Volkswagen can really claim to be perceived as something a bit special. Chevrolet, although born of budget manufacturer Daewoo, has now become more or less mainstream, so to base a marketing policy on a big difference between it and Opel-Vauxhall stretches credulity. This is complicated by the fact the Hyundai and Kia, also of Korea and formerly downmarket budget brands, are now perceived to be at least the equal of big European brands like Ford.

It seems inevitable that, despite Chevrolet protestations, it will steal sales from Opel-Vauxhall.

"It's a great challenge; how to position the different makes so that both of them can sell in one market. Opel and Chevrolet are much too close to allow both to operate on some markets. But I don't see there is enough differentiation if you look at the products at the moment," says Bratzel.

Carol Thomas, Eastern European analyst for J.D.Power, says cannibalization is on the menu.

"Certainly there is overlap between Chevy and Opel ranges and there could be some degree of cannibalization, such as the Orlando/Zafira - though Opel and Chevrolet are of course differentiating their products where possible. Not surprisingly Opel enjoys a stronger brand image in Russia than Chevrolet, where their cars are generally based upon older products with older technology (than Opel)," said Thomas.

J.D.Power sees Russian sales rising to 3.88 million by 2017 from 1.87 million in 2010.

Combining the lines?

So, if Chevrolet is making money in Europe, Opel-Vauxhall is losing money and looking to shed production, and both companies are almost sharing the same brand space, why

not combine them into one operation that would slash costs and produce one super healthy performer?

That wouldn't work, says IHS Automotive's Madeira.

"In realistic terms, no. On paper it might look promising, but to integrate the two brands as one is highly unlikely. There would be fewer sales points and that would cost them a lot," Madeira said.

But Opel might want to use Chevy's Korean facilities to make its small cars, while more upmarket cars like the Orlando could be made profitably in Europe.

The importance of Russia to Chevrolet's plans might be undermined if you remember the controversial negotiations last year when GM pulled out of a deal to sell GM Europe's Opel-Vauxhall to a consortium backed by Magna of Canada and the Russian bank Sberbank. This annoyed Russian Prime Minister Vladimir Putin, who called GM's conduct "scornful," a remark which doesn't sound very precise, but does seem ominous.

Russia key

If Chevrolet is to fulfill its goals though, it must look to Russia, says Professor Bratzel.

"It's really hard to project what will happen (in Russia), but if its market comes back, then the plan, though ambitious, is possible," said Bratzel.

Neil Winton, European columnist for Autos Insider, is based in Sussex, England. E-mail him at neil.winton@btinternet.com

Live from Moscow: TechCrunch Moscowhttp://eu.techcrunch.com/2010/12/13/live-from-moscow-techcrunch-moscow/

by Mike Butcher on December 13, 2010

Today TechCrunch Europe is coming to Moscow, Russia, for our first ever TechCrunch Moscow (to be held in English).

The Live video stream is here.

TechCrunch Moscow is at the first Russian private tech incubator, the Digital October Center, located in a historical manufacturing building Krasny Oktyabr (or “Red October” / Красный Октябрь in Russian). The event is sold out but all attendees will enjoy a full day packed with speeches by the leaders of the industry, networking opportunities and a chance to preview promising Russian tech startups.

Co-organised by TechCrunch Europe together with Kite Ventures and Telemarker, our partners have also put together a dedicated event web site and a dedicated Twitter feed. We’ll be using the hashtag #TCMoscow.

The conference will focus on the key issues regarding tech entrepreneurship in Russia. TechCrunch Moscow is about supporting the startup and venture capital eco-system in Moscow and Russia. It’s also about uncovering the trends and the hottest companies and startups in the market right now.

Speakers include Arkady Dvorkovich, assistant to the President of Russia; Arkady Volozh, CEO of Yandex, Russia’s leading search engine; Annelies van Den Belt, CEO of SUP/Livejournal; Semyon Voinov, founder of Zeptolab and creator of “Cut the Rope”; Demyan Kudriavtsev, CEO of Kommersant; Oskar Hartmann, founder and CEO of KupiVip, and many others.

Tele2 adds 207,000 phone users in Russia in Novhttp://www.reuters.com/article/idUSWEA703620101213

2:08am EST

STOCKHOLM, Dec 13 (Reuters) - TELE2 (TEL2b.ST: Quote, Profile, Research, Stock Buzz):

* Says Russian operations added 207,000 new customers of which 142,000 customers in new regions in November 2010.

Russian consumer in starring role as film-going hits new heights http://www.bne.eu/storyf2444/Russian_consumer_in_starring_role_as_filmgoing_hits_new_heights

Tim Gosling in Moscow December 13, 2010

Russia's film distribution market grew by up to 40% in 2010 to finally breach the $1bn revenue threshold, becoming the fifth biggest in the world, according to the website Kinobusiness.com. The news is yet another sign of the healthy growth in Russian consumer spending.

Analysts are still calculating the final figures for the year - the Russia and CIS box office year runs from December 1 to November 30 – but the website said at the end of November that it's expected to total around $1.05bn. Russian distributors dominate the Commonwealth of Independent States space, whilst Russian revenue accounts for around 97% of the total. The

numbers do not include Ukraine, which is not a member of the CIS.

The data represent a strong recovery from last year, when receipts retreated to $736m from $831m in 2008. That said, the rouble's rapid fall that year played a significant role, and according to analysts at Nevafilm, local currency box office revenues still grew 13%.

The news offers another illustration of the strength of the Russian consumer, both through the crisis and as the recovery builds momentum. Whilst the global economic crisis softened consumer spending, the damage was far from critical. For the most part, it was the corporations that bore the brunt, whilst average Russians merely tightened their belts a little.

Since the start of 2010, they've been loosening them once more – a factor that investors are increasingly recognising. Russian consumer names such as supermarket chain X5 have remained confident, which finally closed a $1.7bn acquisition of the Kopeika grocery chain in December. The generous premium that PepsiCo paid for its $5.4bn acquisition of Wimm-Bill-Dann also in December, and the extremely strong IPO performance from mail.ru in November, prove that foreign heads are also being turned at last.

Little wonder, say analysts, as these firms are being forced to hunt for growth abroad in the face of stagnation in their home markets. Goldman Sachs' Jim O'Neill in December called the consumer in the Bric nations, "the key investment of our lifetime."

On the back of that, the Russian consumer is spending more on entertainment. PricewaterhouseCoopers forecasts in its report, "Global Entertainment & Media Outlook 2010-2014", that the Russian entertainment and media (E&M) market will expand at a compound annual growth rate of 9.3%.

Paying for quality

Perhaps the key point in the box office numbers is that the Russian consumer appears increasingly willing to pay more for better quality facilities. By far the biggest factor in the film market's growth was higher ticket prices. Through the year, cinema audience numbers only actually increased by 14.9%.

This trend should help PwC's forecast that the Russian box office will continue to grow at a similar rate to the overall E&M rate, to the point where it will account for 63% of the total receipt growth in all CEE countries, and peak at $1.78bn by 2014.

The spanner in the works, however, is the devastating effects of the crisis on real estate development, which looks likely to slow growth.

Modern multiplexes are the biggest driver of the move to quality and consequent rise in ticket prices, with more than half of Russia's modern screens now housed in retail and entertainment developments. These modern screens have benefited as Hollywood blockbusters such as Avatar and Shrek Forever After demanded 3D presentation.

According to Nevafil, the share of multiplexes in the total number of modern screens in Russia was until recently increasing at a rate of at least 30% per year, but by mid-2010 this figure fell for the first time to 23.8%. However, the worst effects of the crisis on development aren't expected until the second half of 2011.

Looking at the longer term, that seems likely to prove little more than a temporary irritation, with developers already trying to get new projects off the ground to take advantage of the coming supply shortfall. Given the momentum in box office revenues, multiplexes appear bound to remain keen anchor tenants for malls.

For the Record http://www.themoscowtimes.com/business/article/for-the-record/426123.html

13 December 2010

The reserve fund will be used to finance the deficit next year, spending 300 billion rubles to 400 billion rubles ($10 billion to $13 billion) from one of the country’s two sovereign wealth funds, Deputy Finance Minister Dmitry Pankin said Friday. (Bloomberg)

Magnitogorsk Iron and Steel saw third-quarter net income attributable to shareholders fall to $48 million in the period, from $76 million a year earlier, the company said Friday, but it plans to increase output of steel products by 29 percent next year on rising demand domestically and from Turkey. (Bloomberg)

Billionaire Alexander Lebedev agreed to sell 44 million shares in Aeroflot, for about $2.50 apiece, Interfax reported Friday, while the stock closed down 3.9 percent at the end of trading. (Bloomberg)

Metalloinvest Holding, the country’s biggest iron ore producer, cut its debt by $1.2 billion this year by repaying some of the loans early, the company said Friday. It repaid 7.6 billion rubles ($246 million) of loans ahead of schedule in November, and its total debt portfolio stood at $4.2 billion as of Dec. 1. (Bloomberg)

Activity in the Oil and Gas sector (including regulatory)

13.12.2010

Kazakhstan to Ask Russia, Belarus to Ban Export of Distillateshttp://www.oilandgaseurasia.com/news/p/0/news/9944

Kazakhstan will ask Russia and Belarus to ban the export of light distillates, gasoline and gas oil beyond the three countries' customs union for a period of six months. The request was published on the customs union commission's website.

According to the note, the Kazakhstan side has informed Russia and Belarus that it has ceased exporting light distillate (with the expectation of certain gasolines and furnace oil), jet fuel and gasoil for six months and is asking Moscow and Minsk to do the same.

In May, Astana introduced a ban on lubricants on its domestic market in order to stabilize it markets. The original ban was introduced from May 29 to July 1 and subsequently prolonged to November 1.

Copyright 2010, Kazmunaigaz. All rights reserved.

Oil Export Tax Expected To Increase Next Month http://www.themoscowtimes.com/business/article/oil-export-tax-expected-to-increase-next-month/426142.html

13 December 2010Reuters

The government may raise its oil export duty in January to $317 to $318 per ton, which will be a new two-year high, following an increase in oil prices, according to Finance Ministry figures and Reuters calculations.

But the government has yet to decide on refined products export fees. Currently, it levies an export duty for light oil products equal to 72 percent of crude oil export fees. The taxation of heavy oil totals 39 percent of the crude oil export duty.

Government sources say next year, export duties on light oil products will be lowered to 67 percent of the crude oil export duty, while fees on heavy oil products could rise to 46.7 percent to stimulate more production of higher grade oil products.

The crude oil duty — a major factor in the financial results of Russia’s oil companies — stands at $303.8 per ton in December.

The final oil export duty for January will be based on the seaborne Urals price from Nov. 15 to Dec. 14 inclusive.

U.S. crude for January CLc1 hit a 26-month high of $90.76 on Tuesday.

Finance Ministry official, Alexander Sakovich, told Reuters on Friday that the price so far, from Nov. 15 to Dec. 9, was $85.34 per barrel, up from $82.89 per barrel in the previous period.

“If the oil price stays in the $87-$90 range in the remaining days [of the monitoring period], the final price could total $85.57 to $85.98 per barrel,” he said by phone.

Reuters calculations, based on customs tariff regulations and the average oil price estimate, show that the January export duty is therefore likely to be set at $317 to $319 per ton.

Rosneft to pay bonuses

http://www.rbcnews.com/free/20101213111402.shtml

      RBC, 13.12.2010, Moscow 11:14:02.Rosneft's board of directors has passed a decision to pay bonuses to the company's top managers for 2009, the oil company's press office reported. Bonuses will be paid in the form of Rosneft shares with the right to sell them no sooner than in half a year.

ONGC Videsh Offers Russian Sokol Crude Oil for February Loading http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ajMUtuK6xFsk

By Ann Koh

Dec. 13 (Bloomberg) -- ONGC Videsh Ltd., the overseas unit of India’s biggest explorer, is offering to sell Russia’s Sokol crude for loading in February, according to a document sent to potential buyers.

-----------------------------------------------------------Crude oil: SokolQuantity: 700,000 barrelsLoading: Feb. 25 to Feb. 28Port: DeKastri, Sakhalin-1Bids close: Dec. 15Bid validity: Dec. 16, 6:30 p.m. India time-----------------------------------------------------------

ONGC Videsh, a wholly owned unit of Oil & Natural Gas Corp., is entitled to a share of Sokol output from the Sakhalin- 1 project because it’s one of the investors. The other partners are Exxon Neftegas Ltd., Japan’s Sakhalin Oil & Gas Development Ltd. and two affiliates of Russia’s OAO Rosneft.

To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net

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

Last Updated: December 12, 2010 20:18 EST

December 13, 2010 16:49 PM

Russian-Vietnamese O&G Joint Venture To Cooperate For Additional 20 Years

http://www.bernama.com/bernama/v5/newsworld.php?id=549635

VUNG TAU, Vietnam, Dec 13 (Bernama) -- The Russian-Vietnamese oil and gas joint venture Vietsovpetro had agreed to extend its cooperation for an additional 20 years, Vietnam News Agency (VNA) reported.

Vietsovpetro's general director Nguyen Huu Tuyen said that the joint-venture council has completed the paperwork to extend the partnership through 2030 during the 38th meeting of the joint venture held on Dec 10 in Vung Tau, the southern coastal province of Ba Ria-Vung Tau.

Under the agreement, Vietnam will contribute 51 per cent, and Russia, 49 percent, in charter capital.

Tuyen said that this is an important step for the Vietnam National Oil and Gas Group and Russian state-controlled oil company Zarubejneft.

The joint venture plans to achieve an annual yield of crude oil of six million tonnes, 1.4 billion cubic metres of natural gas and 270,000 tonnes of condensate during the 2011 - 15 period.

With the global crude oil price at US$75 a barrel, Vietsovpetro leaders expect to earn US$19.16 billion during the next five years.

According to Vietsovpetro, it will intensify its explorations in the deep water areas and further in offshore areas.

Tuyen said the joint-venture council has approved a project to invest in several mines along Vietnam's continental shelf and explore and exploit several mines in Russia, Myanmar and Tunisia.

It also plans to explore oil at potential offshore areas and increase yield in the areas to 5.0 million tonnes.

Between 2013 and 2014, the joint venture will operate the Thien Ung, the first deep-

water mine in Vietnam, 300km from Vung Tau, at a depth of 110 metres.

This year, the joint venture's production exceeds 6.4 million tonnes with a revenue of US$4 billion.

Of that amount, US$2.3 billion went to the State budget.

Next year, the joint venture plans to yield more than 6.0 million tonnes. At least 13 million tonnes of oil will be exploited, with revenue expected at US$3.65 billion.

During the past 29 years, the JV has met all of its targets and become the leading company in Vietnam's oil and gas sector.

Over those years, Vietsovpetro exploited 190 million tonnes of crude oil, earning US$51 billion and contributing US$33 billion to the State budget.

Tuyen said with experienced local and international engineers, VSP will soon exploit crude oil in foreign countries in the next five years.

-- BERNAMA

Gazprom11:39Agreed Gazprom gas prices in 2011 to be up not more than 10%http://www.interfax.com/news.asp

Oil India asks Gazprom to help develop two gas fieldshttp://www.reuters.com/article/idUSLDE6BC0HS20101213

3:59am EST

MOSCOW, Dec 13 (Reuters) - India's state-run explorer Oil India Ltd. has invited Russia's state-owned energy giant Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz) to develop two gas fields in India, the head of Gazprom's India office said in Moscow on Monday.

"They have invited us to be co-operator on two gas projects, one on-shore, one offshore. We are evaluating the offer," said Alexander Nikiforov, who spoke to journalists on the sidelines of a meeting between Indian and Russian energy officials in Moscow.

(Reporting by Vladimir Soldatkin; Writing by Jessica Bachman, Editing by John Bowker)

Japan to sign LNG feasibility study with Gazpromhttp://af.reuters.com/article/energyOilNews/idAFTOE6BC02Z20101213Mon Dec 13, 2010 3:43am GMT

TOKYO Dec 13 (Reuters) - Japan is set sign an agreement with Russian gas giant Gazprom (GAZP.MM) to study the business prospects of building a liquefied natural gas plant in Vladivostok, a trade ministry official said on Monday.

"We are preparing to sign a document to agree on a feasibility study, with which we can gauge the business potential and economic viability of building a plant to produce LNG," the official told Reuters.

Japan and Gazprom have held regular meetings on a possible LNG facility after informally agreeing in July to conduct a feasibility study, the official said.

"It's been a while since July's agreement so we are hoping to sign as early as possible," the official continued.

In preliminary research, one estimate for the potential capacity of the plant was around 5 million tonnes of LNG annually, although all that would not necessarily be shipped to Japan, the official said.

Japan is stepping up efforts to curb fossil fuel use to help reduce CO2 emissions. Completion of the LNG plant in Vladivostok, in the far east of Russia, would also help Japan diversify its sources of LNG imports. (Reporting by Chikako Mogi; Editing by Joseph Radford)

13.12.2010

Japan, Russia Set to Tie Up on Gas Planthttp://www.oilandgaseurasia.com/news/p/0/news/9941

Japan and Russia are close to signing an agreement on building a joint liquefied natural gas plant in Vladivostok on the Japan Sea, The Yomiuri Shimbun has learned.

The plant would begin operation in 2017, and produce more than 5 million tons of liquefied natural gas (LNG) a year, informed sources said Friday. The Vladivostok project will allow Japan to procure a significant amount of LNG from Russia's eastern Siberia region, thereby helping stabilize Japan's energy supply, the sources said.

Indications are that the Japanese side, which includes the Economy, Trade and Industry Ministry and major trading house Itochu Corp., would sign a construction feasibility survey contract with Russia's state-run gas company Gazprom by the end of the month, according to the sources, who spoke on condition of anonymity.

Russia has been interested in Japan's cutting-edge gas plant technology to enhance its Far East oil and gas development infrastructure. Japan, for its part, wants to diversify its LNG suppliers, many of which are currently in Southeast Asia, they said.

In the deal, both sides also would study the possibility of building a chemical plant and other facilities along with the LNG plant, they said.

The planned facility will have an annual output capacity of more than 5 million tons of LNG, and require several hundreds of billions of yen in investment, the sources said. The Vladivostok plant will be linked by a pipeline with the Chayanda gas field in East Siberia via Khabarovsk. After being liquefied at the plant, the gas will be shipped to Japan.

Completion of the Vladivostok project would ensure Japan can procure from Russia more than 10 percent of the nation's overall LNG imports, when combined with supplies from the Sakhalin-2 oil and gas project, which produces more than 6 million tons of LNG a year, the sources said.

Gazprom, the world's largest gas producer, has been building the pipeline connecting Khabarovsk and Vladivostok, and is scheduled to complete it next year, as well as one between Khabarovsk and Suifenhe, a city in Heilongjiang Province, northeastern China.

The Khabarovsk-Vladivostok pipeline will be linked with a completed line between the Sakhalin-1 and Sakhalin-2 facilities and Khabarovsk, the sources said.

The planned Vladivostok plant would be Russia's second largest LNG facility after the Sakhalin-2 project, they said.

Copyright 2010, Yomiuri Shimbun. All rights reserved.

Japan and Gazprom eye LNG planhttp://www.upstreamonline.com/live/article239358.ece

Japan is set sign an agreement with Russian giant Gazprom to study the business prospects of building a liquefied natural gas plant in Vladivostok, a trade ministry official said today.

News wires  13 December 2010 04:59 GMT

"We are preparing to sign a document to agree on a feasibility study, with which we can gauge the business potential and economic viability of building a plant to produce LNG," the unnamed official told Reuters.

Japan and Gazprom have held regular meetings on a possible LNG facility after informally agreeing in July to conduct a feasibility study, the official said.

"It's been a while since July's agreement so we are hoping to sign as early as possible," the official continued.

In preliminary research, one estimate for the potential capacity of the plant was around 5 million tonnes of LNG annually, although all that would not necessarily be shipped to Japan, the official said.

Japan is stepping up efforts to curb fossil fuel use to help reduce carbon emissions. Completion of the LNG plant in Vladivostok, in the far east of Russia, would also help Japan diversify its sources of LNG imports.

Published: 13 December 2010 04:59 GMT  | Last updated: 13 December 2010 05:54 GMT

Gazprom reaches out to Belgian gas markethttp://www.neurope.eu/articles/Gazprom-reaches-out-to-Belgian-gas-market/103844.php

12 December 2010 - Issue : 915Russian gas monopoly CEO Alexander Medvedev said his company is reaching out to partners in Belgium to help usher in a new era in bilateral gas relations. Medvedev signed a memorandum of understanding for underground natural gas storage between his company and Belgium’s Fluxys in Brussels, ITAR-Tass reported.

Both sides, Medvedev said, were pursuing projects to use liquefied and compressed natural gas as a source of motor fuel. Medvedev said the measure could find a place on a list of priorities for the European Commission. The potentially capacity for the alternative forms of natural gas could pass 1.4 trillion cubic feet of gas per year, he said. “We are passing from the words to the deeds when we will not only control the supply but will also control the demand,” he added.