Russia 110719

Basic Political Developments Itar-Tass news outlook for Tuesday, July 19.

o MOSCOW - The operation to lift the Bulgaria boat that sank in the Volga River continues. The dredging operation along the left side of the Bulgaria has been completed, a total of about 400 tonnes of soil have been removed. The operation was conducted by the KPL-16 crane throughout the night in bad weather conditions.

o HANNOVER - Russian President Dmitry Medvedev together with German Federal Chancellor Angela Merkel will take part in the 13th round of Russian-German interstate consultations. The parties will sign a number of documents on their results. The two leaders will also attend a meeting of the Petersburg Dialogue Forum.

o MOSCOW - Russian Prime Minister Vladimir Putin will meet with the heads of Russia’s traditional religions, as well as leaders of a number of non-governmental public organisations and national-cultural autonomies.

o MOSCOW - The Ad Hoc Working Group on the Caspian Sea at the level of deputy foreign ministers of the Caspian littoral states will discuss preparations for the Fourth Caspian Summit.

o MOSCOW - Chief of the General Staff of the Russian Armed Forces Nikolai Makarov will hold talks with his British counterpart David Richards, who arrived in Moscow on a working visit.

o PRETORIA - British Prime Minister David Cameron within the framework of his African tour will continue talks in Pretoria (South Africa) and then will travel to Nigeria.

o LONDON - The media mogul Rupert Murdoch will appear before a committee of the House of Commons of the British Parliament in connection with the News Of The World phone hacking scandal.

o NEW YORK - Space Shuttle Atlantis will undock from the International Space Station (ISS) and start the last flight to Earth. The shuttle’s flight back to Earth will take two days. Atlantis remained docked to the ISS for eight days. At a traditional farewell ceremony on Monday before being separated by closed hatches, Atlantis commander Chris Ferguson thanked the commander of Expedition 28, Andrei Borisenko, for Russian hospitality.

o ARKHANGELSK - The Mikhail Somov research-expedition vessel of the Northern Territorial Administration for Hydrometeorological and Environmental Monitoring (Sevgidromet) on Tuesday departed from Arkhangelsk embarking on a thru voyage on the Northern Sea Route for shipping supplies to polar stations in the Arctic. The three-month Arctic expedition will take place on the route Arkhangelsk - Franz Josef Land - Wrangel Island - Tiksi - Arkhangelsk. The ship will deliver goods to the stations of the Yakutia and Northern hydrometeorological administrations.

o IRKUTSK - The First International Youth Industrial Forum “Engineers of the Future – 2011” on Lake Baikal.

o SOCHI - Sochi will observe Admiral Fyodor Ushakov Day to commemorate the Russian naval commander of the 18th century. The first divine service will be held in the Saint Admiral Fyodor Ushakov Church that is currently being built.

Itar-Tass news digest for, Tuesday, July 19. o HANOVER — A major package of a dozen of documents is prepared for

the signing at the 13th round of Russian-German interstate consultations with participation of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian president’s aide Sergei Prikhodko told Tass. According to him, the signing of a package of documents will be “a tangible result of a large-scale preparatory work for the interstate consultations in Hanover.”

o MOSCOW — About 400 tonnes of soil have been removed alongside the Bulgaria ship that sank in the Volga River; in the next few hours it is planned to complete the ship’s straightening operation, spokesman for the operational headquarters for the vessel’s lifting Timur Khikmatov told Itar-Tass. “The dredging operation along the left side of the Bulgaria has been completed, a total of about 400 tonnes of soil have been removed,” he said, explaining that the work was done to simplify the process of levelling the ship.

o MOSCOW — A total of 170 fishing nets illegally planted by poachers around the area of the Bulgaria ship wreck has been seized, a spokesman for the local emergencies administration told Itar-Tass on Tuesday. According to the spokesman, specialists will continue searching through such net in a bid to find the bodies of people missing after the ship wreck.

o MOSCOW — Russian President Dmitry Medvedev signed the federal law “On housing subsidies to citizens who move from the closing settlements in the Far North regions and equivalent areas.” The document was adopted by the State Duma lower house of parliament on July 5, 2011 and approved by the Federation Council upper house on July 13, 2011.

o KHABAROVSK — Heat wave in Russia’s Far East has aggravated the situation with wildfires. Their area has increased by more than 3,700 hectares over the past 24 hours reaching 18,875 hectares by Tuesday morning, sources from the forestry department of the Far Eastern Federal District told Tass. “The situation in Yakutia remains the most difficult,” the sources said. Fires there have engulfed over 13,900 hectares of woodland and almost 4,600 hectares of non-forest areas. Yakutia accounts for 24 of 35 wildfires fixed in the east of the country.

o ARKHANGELSK — The Mikhail Somov research-expedition vessel of the Northern Territorial Administration for Hydrometeorological and Environmental Monitoring (Sevgidromet) on Tuesday departed from Arkhangelsk embarking on a thru voyage on the Northern Sea Route for shipping supplies to polar stations in the Arctic.

o YEKATERINBURG — The Sverdlovsk Region will build kindergartens with swimming-pools, under the regional programme for developing pre-school establishments. Incidentally, the cost of one place is to remain intact, Tass learnt at the governor’s public relations service. The project for pre-school establishments centres this year on a return of kindergartens, handed over to other organisations, and construction of new ones.

o KHABAROVSK — Governor of the Khabarovsk Territory Vyacheslav Shport has signed an order on the payment of compensations to all former owners of land on the Big Ussuri Island who lost their plots during the demarcation of the Russian-Chinese border in 2005, the government of the territory told Itar-Tass on Tuesday. “According to estimates, 42.8 million roubles will be paid to the citizens - former owners of 58 plots of land on the island. Another 10.4 million roubles will be paid to the Zarya agricultural enterprise for lost acres, as part of its lands passed into the possession of the Chinese side after the demarcation of the border,” the territorial government noted.

o MOSCOW — One person was killed in an emergency landing of a Mi-8 helicopter in Russia’s Sverdlovsk region, a spokesman for the regional emergencies administration told Itar-Tass on Tuesday. “At 09:23 a.m. Moscow time on Tuesday, a Mi-8 helicopter owned by the Uktus air carrier made an emergency landing 90 kilometers west of the city of Yekaterinburg,” the spokesman said. There were four persons onboard, one was killed.

o YEKATERINBURG — Two persons were hurt in an explosion at a chemical plant in the town of Rezh, Sverdlovsk region, a spokesman for the regional emergencies administration told Itar-Tass on Tuesday. “The accident was reported at 21:57 local time (19:57 Moscow time) on July 18. An explosion of colloxylin that was used for production purposes occurred after the plant’s guard officers moved pipes,” the spokesman said.

o SYKTYVKAR — Rescuers have found the bead bodies of two coalminers, who were blocked by caved-in rock inside the Severnaya coalmine of the Vorkutaugol Company in the Komi republic on Saturday. According to preliminary data, the two men, Dmitry Gurzhiya ans Svyatoslav Vorozhtsov, died instantly at the moment of the accident, a spokesman for Vorkutaugol told Itar-Tass on Tuesday.

o SYKTYVKAR — Criminal proceedings have been initiated over the death of two coalminers in an accident at the Severnaya coalmine operated by the Vorkutaugol Company in Russia’s republic of Komi, a source in the republican prosecutor’s office told Itar-Tass. According to Natalia Spiridonova, a senior aide to the republic’s prosecutor, the criminal case was opened on charges of violating safety rules while performining mining works. The investigation was taken under personal control of the republic’s prosecutor, Vladimir Ponevezhsky.

o YEKATERINBURG — An A-320 jet en route from Bulgaria’s resort city of Burgas made a distress landing at Yekaterinburg’s Koltsovo airport, a spokesman for the Urals Airlines told Itar-Tass on Tuesday. No one was hurt. “At 23:34 Moscow time on July 18, the jet was about to land at the Koltsovo airport, when the pilot reported a failure of one of the plane’s three hydraulic systems. The airports emergencies services were put on alert. The plane landed safely, neither of its 119 passengers were hurt,” the spokesman said.

Russia proposes sectoral ABM system - Russian NATO Ambassador Dmitry Rogozin told this to the media before flying for talks in Washington on Thursday. He is the Kremlin’s envoy for missile defence issues.

o Russian delegation to clarify positions on AMD during visit to U.S. - Rogozin

o Moscow's "sectoral" missile defense proposal fully matches Russia's, NATO's logic - Rogozin

Russian foreign minister to receive his Libyan counterpart on Wednesday. - “Sergei Lavrov will receive Secretary of the General People's Committee for Foreign Liaison and International Cooperation Abdul Ati al-Obeidi at the request of the Libyan side,” the spokesman said. “The meeting will be held as part of Russia’s assistance to the efforts of the African Union and the United Nations to put an end to the bloodshed in Libya and reach a political settlement there.”

RUSSIA-GERMANYo Medvedev, Merkel attend working breakfast. - Among participants there

were the two countries’ economics ministers and Russian president’s aides Arkady Dvorkovich and Sergei Prikhodko, as well as more than ten CEO of Russia’s and Germany’s biggest companies.

o Merkel meets Medvedev in Germany for talks - Merkel's spokesman Steffen Seibert said the two had an informal dinner together Monday evening and were starting the day Tuesday with a breakfast that included industry representatives from both countries.

o Russia's Medvedev, Germany's Merkel discuss economic cooperation o Medvedev, Merkel to discuss Russia-EU ties, Mideast, North Africa. o DW: Merkel and Medvedev meet for tough talks, warm words - Economic

issues and human rights are likely to be among the main topics at this year's intergovernmental conference between Germany and Russia. Despite the serious nature of the talks, a relaxed tone can be expected.

o Kommersant: Russia may freeze South Stream at the expense of Nord Stream

o Medvedev To Suggest Enlarging Nord Streamo Russian gas eyeing European expansion - Additional pipeline capacity is

hardly justified as, even without South Stream, as Gazprom's spare export capacity will be over 30% after the launch of Nord Stream.

o Medvedev, Merkel in Gas Talks - "Germany's decision to close its nuclear industry by 2022 opens up new [energy] partnership opportunities … including increasing Russian gas deliveries using the capacity of the Nord

Stream pipeline," the Kremlin said in a briefing paper ahead of the meeting.

o Major package of documents to be signed at RF-German consultations. - A major package of a dozen of documents is prepared for the signing at the 13th round of Russian-German interstate consultations with participation of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian president’s aide Sergei Prikhodko told Tass.

o Medvedev looks for synergy in Germany - Germany assumed presidency of the UN Security Council at the start of this month. With that in mind, Russia hopes that Germany can help bring NATO round to the view that there should be a joint missile-defense system for the whole of Europe, as there are concerns in Moscow that the NATO-only missile-defense system could be turned against Russia.

o Russian-German interstate consultations due in Hanover. - The government source said “a dozen of German-Russian agreements will be signed” at the consultations. According to the source, these will be economic agreements, environmental protection agreements, as well as agreements concerning inter-ministerial contacts.

o Germany As A Role Model For Russia, Not Vice Versa – OpEd by Robert Amsterdam

Russia allows Polish vegetable imports - Russia will permit the resumption of vegetable imports from Poland from Wednesday, the Interfax news agency cited the head of Russia's consumer protection agency as saying on Tuesday.

Caspian working group to discuss preparations for Caspian summit. o Iran urges Caspian Sea unanimous treaty

'Iran has not received Russia N-offer' - Iran's Foreign Ministry Spokesman Ramin Mehmanparast says Tehran will study Russia's “step-by-step” approach proposed over the country's nuclear program upon receiving it.

Russian, British chiefs of general staff to discuss military ties. Iran to Attend MAKS 2011 Air Show in Russia More Russian Engines for China’s J-10 Fighter Nalbandian: Armenian President’s response to Medvedev's recommendations will

be soon released Baku lays claims to Moscow - “Official Baku is concerned over the presence of

Russian servicemen in Armenia,”Personal Representative of Azerbaijani President on Nagorno-Karabakh conflict, Deputy Foreign Minister Araz Azimov said in an interview with Ekho Moskvy.

o Azerbaijani official:Russia must change its role in the region o Azerbaijani official: Abkhazia and South Ossetia excluded from Moscow-

Baku tradeo Azerbaijani official: Russia to shift from militaristic to economic presence

in South Caucasus Ukraine counts on Russia's role in gas network upgrade – premier: "Russia's

position will now start to change in light of our practical steps. At least we are counting on it," Azarov told journalists in the Bohuslav district of the Kyiv

region, which hosted a ceremony on Tuesday that launched the modernization of the Urengoy-Pomary-Uzhgorod gas pipeline.

Russians interested in acquisition of Ukraine Energy Company Saakashvili sent letter to Medvedev - Saakashvili informs Medvedev "about the

problems of terrorist attacks on Georgian territory". PM to discuss ways to consolidate Russian society. Medvedev signs law on housing subsidies to Far North residents. Russian Navy to get new air defence system ‘Pantsyr-M’ Russia holds air combat manoeuvres in North Caucasus The President of Dagestan has a number of working meetings in Moscow -

Dagestani Head met with the Russian Deputy Prime Minister Igor Sechin. Questions of state support of the real sector of the economy of the republic were discussed.

Shuttle Atlantis undocks from ISS for last time Area of wildfires in Far East grows to almost 19,000 hectares. Fire localized at gas pipeline near Yaroslavl oil refinery Passenger aircraft makes emergency landing in Russia's Urals

o A-320 jet makes distress landing at Yekaterinburg airport, no one hurt. One killed in Mi-8 emergency landing in Sverdlovsk region. Ten people killed in blast rocked Russia’s Ural region

o 10 persons hurt in compressor pant explosion on Russia’ s Yamal. Two hurt in explosion at chemical plant in Sverdlovsk region. Bodies of 2 miners recovered from Russian coal mine Reuters PRESS DIGEST - Russia - July 19

o Russian President Dmitry Medvedev and German Chancellor Angela Merkel will most likely discuss ways of launching of a third link of the Nord Stream gas pipeline under the Baltic Sea, the daily says.

o Russia's state-run oil company Rosneft (ROSN.MM: Quote, Profile, Research) and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) have no plans to exchange shares and will cooperate in development of Arctic offshore zones and possibly in some international projects, Shell CEO Peter Vozer says in an interview.

o Russian billionaire and aluminium giant UC RUSAL (0486.HK: Quote, Profile, Research) main shareholder Oleg Deripaska's power group EuroSibEnergo wants to acquire MRSK Siberia (MRKS.MM: Quote, Profile, Research) from power grid company MRSK Holding (MRKH.MM: Quote, Profile, Research), the daily says.

o The daily runs an interview with Google Inc (GOOG.O: Quote, Profile, Research) Chairman Eric Schmidt, who says he invests his own money in Russian start-ups.

o Deaths from drug overdoses have doubled in Moscow and the number of official drug addicts in the capital has grown by 4 percent to 25,000 people, compared to the last year, according to officials.

o Russian security forces have detained a group of four people from the North Caucasus who were allegedly preparing an attack on transport or

public sites in Moscow, according to FSB chief Alexander Bortnikov's report to President Medvedev.

o Russia's lawmakers could allow the state to buy out credit debts from almost 20,000 borrowers unable to make payments on their home loans.

o Russia will introduce a 25 percent tax duty from 2012 for equipment with GPS navigation systems, including mobile phones, according to Deputy Prime Minister Sergei Ivanov.

o Russia's prosecutors have decided to charge prison doctors with negligence in the death of Sergei Magnitsky, the Hermitage Fund lawyer.

o The daily is running an interview with Deputy Defence Minister Anatoly Antonov who is in charge of military and technical cooperation with foreign states.

o United Russia has launched a project to unite young female activists into a virtual organisation called "Putin's army" to express support for Vladimir Putin as Russia's next president.

RIA Russian Press at a Glance, Tuesday, July 19, 2011 Award for Putin Was 'Dilettantish and Politically Insensitive' - German

commentators agree with critics: Putin has little in common with previous winners.

Billionaire banker Lebedev to run in Popular Front’s primaries – paper United Russia's Primaries - . The ruling party’s list of candidates for State Duma

elections in December will be based on the results of this initial stage of voting. The list of candidates for the primaries was developed at the local level, but the front’s federal coordinating council, headed by Deputy Prime Minister Vyacheslav Volodin and his staff, will formulate the final lists.

The subscriber you are trying to reach is publicly available - MegaFon users’ SMS text messages were found on Yandex Aleksandr Malakhov, Anna Balashova

How may I e-serve you? - The Interior Ministry suggests the idea of accepting applications in electronic format Mikhail Falaleyev

National Economic Trends Russian domestic sovereign bonds (OFZ) stronger before auction Will Minfin help stronger ruble in 3Q? Russian Farmers Harvested 14.6 Million Metric Tons of Grains

Business, Energy or Environmental regulations or discussions CIS steel market besieged with fear of European debt crisis Rosneft, TNK-BP and Polymetal: Russian Equities Preview New amendments may introduce ban on leasing agreements with non-Russian

companies EuroSibEnergo Seeks MRSK Siberian Unit, Vedomosti Reports

o Eurosibenergo offered to buy MRSK Siberia VTB Capital buys into En+ Group Russia's Credit Bank of Moscow mulls Eurobond-source Irkutskenergo to sink $53m into innovations in 2011 Watchdog slams Seventh Continent grocer as 'unreliable' over food safety

Activity in the Oil and Gas sector (including regulatory) Nord Stream gains Danish assent - The Danish Energy Agency (DEA) has given

the Nord Stream group permission to operate the first of twin pipelines in the Baltic Sea that will transport gas from Russia to mainland Europe.

Rosneft greenlights petroleum product reserves deal - The board of directors of state-controlled oil major Rosneft has approved a transaction with its major shareholder state-owned Rosneftegaz to form petroleum product reserves, Rosneft said in a statement today.

Shell, Rosneft Talk on Arctic, Not Share Swap, Kommersant Says New oil field discovered in Yamal Nenets Autonomous District Total Could Open Stations - France's Total is looking into opening several filling

stations in Moscow under its own brand, Total exploration and production head Yves-Louis Darricarrere told Les Echos on Monday.

Gazprom Gazprom declines private involvement in $40 bln gas deal - Russia’s state-owned

energy giant Gazprom has turned down involvement by Turkish private companies in a $40 billion gas deal, Turkish Pipeline Corporation (BOTAŞ) officials told Today’s Zaman.  

Gazprom vows to work safer offshore - Russian energy company Gazprom said environmental safety assurances were a requirement for all of its contractors working offshore.

Moldova, Gazprom hammer out 5-year gas transit contract - Russian natural gas giant Gazprom has agreed to sign before the end of this year a 5-year gas transit contract with Moldova, Russian-Moldovan joint venture Moldovagaz said late Monday.

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Full Text Articles

Basic Political Developments

10:51 19/07/2011ALL NEWS

Itar-Tass news outlook for Tuesday, July 19.

http://www.itar-tass.com/en/c154/188277.html

19/7 Tass 93

Telephone: 8 (499) 791-00-25

Fax: 8 (499) 791-00-26

BULGARIA SHIP LIFTING OPERATION

MOSCOW - The operation to lift the Bulgaria boat that sank in the Volga River continues. The dredging operation along the left side of the Bulgaria has been completed, a total of about 400 tonnes of soil have been removed. The operation was conducted by the KPL-16 crane throughout the night in bad weather conditions.

MEDVEDEV’S VISIT TO GERMANY

HANNOVER - Russian President Dmitry Medvedev together with German Federal Chancellor Angela Merkel will take part in the 13th round of Russian-German interstate consultations. The parties will sign a number of documents on their results. The two leaders will also attend a meeting of the Petersburg Dialogue Forum.

PUTIN TO MEET WITH HEADS OF RELIGIONS

MOSCOW - Russian Prime Minister Vladimir Putin will meet with the heads of Russia’s traditional religions, as well as leaders of a number of non-governmental public organisations and national-cultural autonomies.

PREPARATIONS FOR THE CASPIAN SUMMIT

MOSCOW - The Ad Hoc Working Group on the Caspian Sea at the level of deputy foreign ministers of the Caspian littoral states will discuss preparations for the Fourth Caspian Summit.

TALKS OF CHIEFS OF GENERAL STAFF

MOSCOW - Chief of the General Staff of the Russian Armed Forces Nikolai Makarov will hold talks with his British counterpart David Richards, who arrived in Moscow on a working visit.

BRITISH PRIME MINISTER’S VISIT TO AFRICA

PRETORIA - British Prime Minister David Cameron within the framework of his African tour will continue talks in Pretoria (South Africa) and then will travel to Nigeria.

SCANDAL WITH MEDIA MOGUL

LONDON - The media mogul Rupert Murdoch will appear before a committee of the House of Commons of the British Parliament in connection with the News Of The World phone hacking scandal.

SPACE

NEW YORK - Space Shuttle Atlantis will undock from the International Space Station (ISS) and start the last flight to Earth. The shuttle’s flight back to Earth will take two days. Atlantis remained docked to the ISS for eight days. At a traditional farewell ceremony on Monday before being separated by closed hatches, Atlantis commander Chris Ferguson thanked the commander of Expedition 28, Andrei Borisenko, for Russian hospitality.

RUSSIAN REGIONS

ARKHANGELSK - The Mikhail Somov research-expedition vessel of the Northern Territorial Administration for Hydrometeorological and Environmental Monitoring (Sevgidromet) on Tuesday departed from Arkhangelsk embarking on a thru voyage on the Northern Sea Route for shipping supplies to polar stations in the Arctic. The three-month Arctic expedition will take place on the route Arkhangelsk - Franz Josef Land - Wrangel Island - Tiksi - Arkhangelsk. The ship will deliver goods to the stations of the Yakutia and Northern hydrometeorological administrations.

IRKUTSK - The First International Youth Industrial Forum “Engineers of the Future – 2011” on Lake Baikal.

SOCHI - Sochi will observe Admiral Fyodor Ushakov Day to commemorate the Russian naval commander of the 18th century. The first divine service will be held in the Saint Admiral Fyodor Ushakov Church that is currently being built.

11:34 19/07/2011ALL NEWS

Itar-Tass news digest for, Tuesday, July 19.

http://www.itar-tass.com/en/c154/188311.html

19/7 Tass 132

HANOVER — A major package of a dozen of documents is prepared for the signing at the 13th round of Russian-German interstate consultations with participation of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian president’s aide Sergei Prikhodko told Tass. According to him, the signing of a package of documents will be “a tangible result of a large-scale preparatory work for the interstate consultations in Hanover.”

MOSCOW — About 400 tonnes of soil have been removed alongside the Bulgaria ship that sank in the Volga River; in the next few hours it is planned to complete the ship’s straightening operation, spokesman for the operational headquarters for the vessel’s lifting Timur Khikmatov told Itar-Tass. “The dredging operation along the left side of the

Bulgaria has been completed, a total of about 400 tonnes of soil have been removed,” he said, explaining that the work was done to simplify the process of levelling the ship.

MOSCOW — A total of 170 fishing nets illegally planted by poachers around the area of the Bulgaria ship wreck has been seized, a spokesman for the local emergencies administration told Itar-Tass on Tuesday. According to the spokesman, specialists will continue searching through such net in a bid to find the bodies of people missing after the ship wreck.

MOSCOW — Russian President Dmitry Medvedev signed the federal law “On housing subsidies to citizens who move from the closing settlements in the Far North regions and equivalent areas.” The document was adopted by the State Duma lower house of parliament on July 5, 2011 and approved by the Federation Council upper house on July 13, 2011.

KHABAROVSK — Heat wave in Russia’s Far East has aggravated the situation with wildfires. Their area has increased by more than 3,700 hectares over the past 24 hours reaching 18,875 hectares by Tuesday morning, sources from the forestry department of the Far Eastern Federal District told Tass. “The situation in Yakutia remains the most difficult,” the sources said. Fires there have engulfed over 13,900 hectares of woodland and almost 4,600 hectares of non-forest areas. Yakutia accounts for 24 of 35 wildfires fixed in the east of the country.

ARKHANGELSK — The Mikhail Somov research-expedition vessel of the Northern Territorial Administration for Hydrometeorological and Environmental Monitoring (Sevgidromet) on Tuesday departed from Arkhangelsk embarking on a thru voyage on the Northern Sea Route for shipping supplies to polar stations in the Arctic.

YEKATERINBURG — The Sverdlovsk Region will build kindergartens with swimming-pools, under the regional programme for developing pre-school establishments. Incidentally, the cost of one place is to remain intact, Tass learnt at the governor’s public relations service. The project for pre-school establishments centres this year on a return of kindergartens, handed over to other organisations, and construction of new ones.

KHABAROVSK — Governor of the Khabarovsk Territory Vyacheslav Shport has signed an order on the payment of compensations to all former owners of land on the Big Ussuri Island who lost their plots during the demarcation of the Russian-Chinese border in 2005, the government of the territory told Itar-Tass on Tuesday. “According to estimates, 42.8 million roubles will be paid to the citizens - former owners of 58 plots of land on the island. Another 10.4 million roubles will be paid to the Zarya agricultural enterprise for lost acres, as part of its lands passed into the possession of the Chinese side after the demarcation of the border,” the territorial government noted.

MOSCOW — One person was killed in an emergency landing of a Mi-8 helicopter in Russia’s Sverdlovsk region, a spokesman for the regional emergencies administration

told Itar-Tass on Tuesday. “At 09:23 a.m. Moscow time on Tuesday, a Mi-8 helicopter owned by the Uktus air carrier made an emergency landing 90 kilometers west of the city of Yekaterinburg,” the spokesman said. There were four persons onboard, one was killed.

YEKATERINBURG — Two persons were hurt in an explosion at a chemical plant in the town of Rezh, Sverdlovsk region, a spokesman for the regional emergencies administration told Itar-Tass on Tuesday. “The accident was reported at 21:57 local time (19:57 Moscow time) on July 18. An explosion of colloxylin that was used for production purposes occurred after the plant’s guard officers moved pipes,” the spokesman said.

SYKTYVKAR — Rescuers have found the bead bodies of two coalminers, who were blocked by caved-in rock inside the Severnaya coalmine of the Vorkutaugol Company in the Komi republic on Saturday. According to preliminary data, the two men, Dmitry Gurzhiya ans Svyatoslav Vorozhtsov, died instantly at the moment of the accident, a spokesman for Vorkutaugol told Itar-Tass on Tuesday.

SYKTYVKAR — Criminal proceedings have been initiated over the death of two coalminers in an accident at the Severnaya coalmine operated by the Vorkutaugol Company in Russia’s republic of Komi, a source in the republican prosecutor’s office told Itar-Tass. According to Natalia Spiridonova, a senior aide to the republic’s prosecutor, the criminal case was opened on charges of violating safety rules while performining mining works. The investigation was taken under personal control of the republic’s prosecutor, Vladimir Ponevezhsky.

YEKATERINBURG — An A-320 jet en route from Bulgaria’s resort city of Burgas made a distress landing at Yekaterinburg’s Koltsovo airport, a spokesman for the Urals Airlines told Itar-Tass on Tuesday. No one was hurt. “At 23:34 Moscow time on July 18, the jet was about to land at the Koltsovo airport, when the pilot reported a failure of one of the plane’s three hydraulic systems. The airports emergencies services were put on alert. The plane landed safely, neither of its 119 passengers were hurt,” the spokesman said.

Russia proposes sectoral ABM systemhttp://english.ruvr.ru/2011/07/18/53398688.html

Jul 18, 2011 21:23 Moscow Time

Russia continues to push an initiative for a geographic distribution of responsibility for intercepting Europe-bound missiles. A clear answer from the Americans is yet to come.  Speculation that they reject the initiative is premature.

Russian NATO Ambassador Dmitry Rogozin told this to the media before flying for talks in Washington on Thursday. He is the Kremlin’s envoy for missile defence issues.

News of 19.07.11

Russian delegation to clarify positions on AMD during visit to U.S. - Rogozin

http://www.militarynews.ru/EMAIN.ASP

Moscow's "sectoral" missile defense proposal fully matches Russia's, NATO's logic - Rogozin

http://www.militarynews.ru/EMAIN.ASP

11:51 19/07/2011ALL NEWS

Russian foreign minister to receive his Libyan counterpart on Wednesday.

http://www.itar-tass.com/en/c154/188325.html

19/7 Tass 143

MOSCOW, July 19 (Itar-Tass) — Russian Foreign Minister Sergei Lavrov will meet with his Libyan counterpart Abdul Ati al-Obeidi in Moscow on Wednesday, July 20, to discuss the situation in and around Libya, a Russian foreign ministry spokesman told Itar-Tass on Tuesday.

“Sergei Lavrov will receive Secretary of the General People's Committee for Foreign Liaison and International Cooperation Abdul Ati al-Obeidi at the request of the Libyan side,” the spokesman said. “The meeting will be held as part of Russia’s assistance to the efforts of the African Union and the United Nations to put an end to the bloodshed in Libya and reach a political settlement there.”

11:45 19/07/2011ALL NEWS

Medvedev, Merkel attend working breakfast.

http://www.itar-tass.com/en/c154/188324.html

19/7 Tass 139

HANNOVER, July 19 (Itar-Tass) — Russian President Dmitry Medvedev and German Chancellor Angela Merkel on Tuesday had a working breakfast that was also attended by Russian and German businessmen.

The breakfast was held behind closed doors but a source in the Russian delegation told Itar-Tass participants discussed issues of economic cooperation, including some of the current and prospective projects.

Among participants there were the two countries’ economics ministers and Russian president’s aides Arkady Dvorkovich and Sergei Prikhodko, as well as more than ten CEO of Russia’s and Germany’s biggest companies.

Associated Press

Merkel meets Medvedev in Germany for talkshttp://www.forbes.com/feeds/ap/2011/07/19/general-multiutilities-eu-germany-russia_8572017.html

Associated Press, 07.19.11, 03:24 AM EDT

HANNOVER, Germany -- German Chancellor Angela Merkel is meeting in Hannover with Russian President Dmitry Medvedev for wide-ranging talks on current issues and business ties between the two countries.

Merkel's spokesman Steffen Seibert said the two had an informal dinner together Monday evening and were starting the day Tuesday with a breakfast that included industry representatives from both countries.

Seibert says the two leaders are expected to talk about the Libya conflict, recent developments in the eurozone, in addition to business ties.

The meetings come after German utility RWE AG and Russia's state-controlled natural gas giant Gazprom announced last week they were in discussions to forge a joint venture for building and operating new power plants across Europe.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Russia's Medvedev, Germany's Merkel discuss economic cooperationhttp://en.rian.ru/world/20110719/165273207.html

03:34 19/07/2011

HANNOVER, July 19 (RIA Novosti)

Russian President Dmitry Medvedev and German Chancellor Angela Merkel held an unofficial dinner on Monday night in Germany and then discussed issues of economic cooperation, Medvedev's spokeswoman said on Tuesday.

"The leaders discussed Russian and German economic cooperation in the context of bilateral agreements and documents planned to be signed as a result of official bilateral talks on Tuesday," presidential spokeswoman Natalia Timakova said.

She said Medvedev and Merkel discussed the current economic situation in the European Union, adding that "the leaders particularly exchanged their opinions on the economic situation in Germany and Russia."

"The president and the chancellor also discussed international issues, first of all, the situation in Libya," Timakova said.

Libya has been rocked by fighting between pro- and anti-government forces since mid-February. An international military operation began on March 19 following a UN resolution and has been extended until September.

04:46 19/07/2011ALL NEWS

Medvedev, Merkel to discuss Russia-EU ties, Mideast, North Africa.

http://www.itar-tass.com/en/c154/188136.html

19/7 Tass 5

HANOVER, July 19 (Itar-Tass) — Russian President Dmitry Medvedev and German Chancellor Angela Merkel will discuss at summit talks on Tuesday relations between Russia and the European Union, as well as the situation in the Middle East and in North Africa.

“The Hannover summit will focus on European security, including the creation of a missile defence shield in Europe, the Russia-NATO Council, the problems in the development of Russian-EU relations among a broader scope of international issues, which are debated regularly at Russian-German political negotiations,” Russian president’s aide Sergei Prikhodko said on Monday.

Focusing on European problems, Prikhodko noted that “Dmitry Medvedev will ask Angela Merkel about her position on the financial situation in several EU countries.”

Besides, the leaders will discuss “the development of the situation in countries of North Africa and the Middle East and several other regional problems, including the Middle East peace process and the Iranian nuclear program.” “Germany’s presidency in the UN Security Council this July makes the negotiations particularly topical,” he elaborated.

The leaders of the countries will also discuss the preparatory work to next summits of the G-8 and the G-20, in which Russia and Germany are member countries.

International Relations | 19.07.2011

Merkel and Medvedev meet for tough talks, warm words http://www.dw-world.de/dw/article/0,,15249653,00.html

Economic issues and human rights are likely to be among the main topics at this year's intergovernmental conference between Germany and Russia. Despite the serious nature of the talks, a relaxed tone can be expected.

If it were up to Chancellor Angela Merkel to decide who would be Russian President from 2012, it has been suggested that Prime Minister Vladimir Putin would have little chance.

Merkel has a strong preference for Dmitry Medvedev and, according to former German Foreign Office Minister of State Gernot Erler, she prefer him to remain president ahead of Putin.

The chancellor's dealings with Putin have often been strained, maintains Erler. This is not only because of the former president's past in the Russian secret service, but also her difficulties in dealing with a political system dominated by him.

His system of "guided democracy" and his centralized power structure does not sit comfortably with Merkel, who herself lived under Communist rule in the former East Germany.

President Medvedev, on the other hand, has shown a support for greater democracy and rule of law that has been welcomed enthusiastically in Berlin. Intergovernmental consultations between Germany and Russia are hardly any more meaningful as a result, but they are warmer.

There is also a certain chemistry between Merkel and Medvedev, at least according to sources close to the chancellor. In Yekaterinburg, where a previous summit took place in 2010, the chancellor and president talked after dinner until late into the night. "Dear Dmitry" and "Dear Angela," as the pair referred to each other at a summit press conference, were able to communicate largely without a translator. Medvedev spoke to Merkel in English, while Merkel spoke Russian to Medvedev. This year's negotiations in Hanover might be just as relaxed.

Powerful economic factors

Domestic issues have been the major concern in recent times in both Berlin and Moscow, according to Professor Hans-Henning Schröder of the German Institute for International and Security Affairs. The expert on Russian affairs believes that economic issues will play a central role in the discussions. More than 6,000 German businesses are active in Russia.

The value of German exports rose in the first quarter of 2011 to 7.4 billion euros ($10.45 billion) - an increase of 42 percent. Imports from Russia climbed to 9.5 billion euros. And the two countries are set to make new records, according to Eckhard Cordes, chairman of the Eastern Committee of German business.

Several top business managers are expected to join Merkel and Medvedev on Tuesday morning for an "economic breakfast," with Volkswagen chairman Martin Winterkorn among them.

And it's no accident that the summit is taking place in Hanover, where the company has its base. In the first half of the year, Volkswagen sold some 45,000 cars in Russia. The brand has succeeded in doubling its sales and Winterkorn is keen to make the most of the Russian market.

The firm's existing plant in Kaluga, southwest of Moscow, will not be able to cover the Russian demand for the cars. In the future, Volkswagen is also set to have cars built at a factory belonging to the Russian car builder GAZ. 

Gazprom's push west

The significance of Russia as a supplier of energy is set to grow as a result of Germany's move away from nuclear power, according to Christian Democrat politician Philipp Missfelder. The mutual advantages of this must be clear to the Kremlin, the lawmaker has claimed.

Russian gas giant Gazprom has seized an opportune moment to expand in Germany and has already agreed on a strategic partnership with the German power supplier RWE. The firms are set to work together, for example, in building coal and gas power stations.

Medvedev, who directed Gazprom under Putin for several years, would be particularly pleased with such deals. The high dependency on Russian energy exports may be a source of concern to Germany, but in comparison to certain suppliers - such as Libya - Russia is relatively unproblematic.

It is believed that Merkel is also keen to further promote reforms in Russia, with a view to strengthening liberal values. But previous enthusiasm for the reforming agenda of Medvedev appears to have dwindled - with values such as human rights and press freedom remaining an issue under Medvedev. Former head of the power firm Yukos Mikhail Khodorkovsky remains in jail despite his conviction being condemned abroad. And the murders of several journalists have gone unresolved.

Social issues and that critical question

The failure of the president to follow up on previous promises of reform has not gone unnoticed. The chancellor makes meetings with human rights activists a part of her agenda on almost all of her trips to Russia. The Petersburg Dialogue, a forum to address such social issues between the countries, will take place alongside the visit. 

"It is quite clear that the chancellor has a good understanding with Medvedev," reiterates Erler. But that does not mean that thorny issues such as human rights will not be discussed.

But one question on everybody's mind - whether Medvedev will run for the presidency - is not likely to be answered. At least not for the time being. 

Author: Viacheslav Yurin / rcEditor: Ben Knight

Kommersant: Russia may freeze South Stream at the expense of Nord Stream http://www.focus-fen.net/index.php?id=n255006

19 July 2011 | 08:36 | FOCUS News AgencyHome / WorldHanover. During the talks with German Chancellor Angela Merkel in Hanover Russian President Dmitry Medvedev will raise the issue about the construction of the section of the Nord Stream pipeline from Russia to Germany through the Baltic Sea. This is connected to the possibility for Moscow to decide to freeze the realisation of the South

Stream gas pipeline because of the problems in the talks with Turkey. With Germany’s support the deliveries could be shifted through Bord Stream, Kommersant daily comments.

19.07.2011

Medvedev To Suggest Enlarging Nord Streamhttp://www.oilandgaseurasia.com/news/p/0/news/12143

Russian President Dmitriy Medevedev and German Chancellor Angela Merkel will meet today in Hannover for consultations. Kommersant reports that one of the main topics of the talks will be the idea of building a third line on the Nord Stream pipeline from Russia to Germany along the bed of the Baltic Sea.

Moscow wants to take advantage of Germany's decision to reject nuclear fuel  in Europe to increase its deliveries of gas to the country.  Russia seeks to enlarge Nord Stream to compensate for delays in launching South Stream.

Copyright 2011, Kommersant. All rights reserved.

Russian gas eyeing European expansion

http://www.bne.eu/dispatch_text16172

Alfa BankJuly 19, 2011

President Dmitry Medvedev may propose to expand Nord Stream pipeline capacity by building a third line on the pipeline. The additional line would allow Russian gas producers to capture additional demand arising from the phase-out of nuclear power in Germany as well as from organic demand growth. However, no decisions have yet been made. We believe one reason why the third line is being proposed as a sort of compensation for slow progress on South Stream, although we hardly see any point in constructing a third line at present. Additional pipeline capacity is hardly justified as, even without South Stream, as Gazprom's spare export capacity will be over 30% after the launch of Nord Stream. We believe the announcement will have little effect on the

market and consider it NEUTRAL.

Novatek may be engaging EnBW in negotiations around a deal that may be worth as much as EUR800m and involve either a JV creation or Novatek buying directly into EnBW's utility business in Europe. In the event Novatek buys directly into the utility business, the move would give Novatek access to the European electricity market, as well as direct access to customers, which may be of use in the future when Novatek commences LNG exports. A move into LNG remains questionable, however, not only due to timing, but also from the financial standpoint. At the same time, Vedomosti reports that its sources in the company have denied any negotiations taking place. We see the new as NEUTRAL at present. However, we note that Novatek may indeed be setting its eyes on Europe, which may become the next market for the company's growth.

Pavel Sorokin

Medvedev, Merkel in Gas Talks http://www.themoscowtimes.com/business/article/medvedev-merkel-in-gas-talks/440738.html

18 July 2011Combined Reports

President Dmitry Medvedev goes to Germany to meet Chancellor Angela Merkel with a stronger hand than ever to win a long-held aim: closer access to consumers in the biggest market for Russian gas.

The host nation is Russia's third-largest trading partner and the biggest buyer of Russian gas, but the relationship has intensified since Germany announced the phase-out of nuclear power by 2022, increasing its need for alternatives.

The Russian delegation will include Energy Minister Sergei Shmatko and Gazprom deputy chief executive Alexander Medvedev.

Gazprom earlier this month announced exclusive talks with Germany's RWE for a joint venture in power generation, with an implied promise of fatter margins on its German sales.

Medvedev was set to meet Merkel in Hannover on Tuesday to discuss stronger energy ties, with hardware in hand to meet a potential increase in German demand for Russian gas.

"Germany's decision to close its nuclear industry by 2022 opens up new [energy] partnership opportunities … including increasing Russian gas deliveries using the capacity of the Nord Stream pipeline," the Kremlin said in a briefing paper ahead of the meeting.

The Gazprom-led, 7.4 billion euro ($10.5 billion) Nord Stream, which runs under the Baltic Sea to Germany, will transport 63 billion cubic meters of gas per year to Europe, around transit countries Belarus and Ukraine, where pricing conflicts have posed a threat to European supplies.

The first line of Nord Stream, which will carry 27.3 bcm — 70 percent of the volume Germany imported from Russia in 2010 — will be launched in October and the second one next year.

"There may be yet another line [added to] North Stream," Prime Minister Vladimir Putin said Friday.

Gazprom, fighting pricing pressure from spot markets and weak sales in Europe's economic downturn, has strutted its resurgent position in Europe since the Fukushima nuclear crisis in Japan, saying consumers would be happy to accept new 20-year take-or-pay deals.

Europeans have been more receptive to Gazprom's overtures, which have in the past been read in European capitals as an effort by Russia to gain political clout through increasing the continent's reliance on Russian gas.

Medvedev will also meet business leaders during the visit. Companies may sign several deals, including on electricity grids and a tire plant. The president "will ask for Merkel's view of the current financial situation in a number of European Union countries, Greece, Italy and others," his foreign policy aide Sergei Prikhodko told reporters in Moscow on July 15.

The European Union is Russia's biggest trade partner, having bought 48.9 percent of the country's exports in the first five months of this year, figures from the Federal Customs Service show. Investor concern that the euro area's credit crisis would engulf Italy, the region's third-largest economy, sent the ruble tumbling the most in seven weeks on July 11.

Medvedev and Merkel will oversee the signing of a dozen accords including for a Continental Reifen Deutschland tire plant in the Kaluga region, Prikhodko said. MRSK Holding, which manages Russia's interregional power distributors, and Siemens will sign an agreement to modernize electricity grids in Russia.

"We always said we are happy about each Russian investor who secures jobs in Germany and creates new ones. Russians are just as welcome here as American and French," said

Eckhard Cordes, chairman of German-East European international trade association Ost-Ausschuss and chairman of Metro.

"This is also true for participations in the energy sector," he added.

(Reuters, Bloomberg)

WOLFSBURG, Germany — Russia is offering Germany closer cooperation on rare earths as well as gas and oil supplies, a Russian official said Monday ahead of an annual bilateral summit in Germany, Reuters reported.

Berlin has been trying to improve German industry's access to the prized metals, which are used to manufacture a range of high-tech products and whose supply has been hit by export curbs by dominant producer China, among other factors.

"There are very many rare earth deposits on the Kola Peninsula," said Valery Yasev, president of the Russian Gas Society and deputy head of Russia's parliament, adding that the two countries could increase cooperation in the area.

Germany's electronics industry has said the market for the 17 minerals with magnetic, luminescent and other properties has become critical due to reported restrictions on exports from China, which produces 97 percent of the world's supply.

04:58 19/07/2011ALL NEWS

Major package of documents to be signed at RF-German consultations.

http://www.itar-tass.com/en/c154/188137.html

19/7 Tass 4

HANOVER, July 19 (Itar-Tass) — A major package of a dozen of documents is prepared for the signing at the 13th round of Russian-German interstate consultations with participation of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian president’s aide Sergei Prikhodko told Tass.

According to him, the signing of a package of documents will be “a tangible result of a large-scale preparatory work for the interstate consultations in Hanover.”

“A joint statement to hold the Russia-Germany Cross Year in 2012-2013 is among the agreements to be signed,” he noted. “Our partners and we believe that its agenda will be complex, and not only the cultural part of the agenda will be prioritized, but also the

presentations of achievements and potentials of the countries in economy, science and technologies, innovations, public and political and youth cooperation,” Prikhodko said.

A joint statement on broader cooperation in law within the framework of Partnership for Modernization and an intergovernmental protocol for the procedure to enforce the Russian-EU readmission agreement of May 25, 2006 are among other documents to be signed.

Besides, the two countries have coordinated a joint statement of the foreign ministries to establish a German House of Science and Innovations in Moscow, a joint statement of the finance ministries on cooperation in developing Russian-German financial cooperation.

The countries agreed to sign an agreement on cooperation in creating a joint fund to support high-technological, innovation and energy-efficient projects of small and medium business, the memoranda on mutual understanding between the transport ministries and between the Kaluga Region and German partners for the intentions to build a car tire producing plant in the region.

Medvedev looks for synergy in Germanyhttp://rt.com/news/medvedev-merkel-visit-germany/

Published: 19 July, 2011, 01:10Edited: 19 July, 2011, 01:30

Boosting trade and reaffirming ties are among the top priorities as Dmitry Medvedev meets Angela Merkel in Germany. The Russian president is also focusing on the growth of small business, as he is set to meet entrepreneurs from both countries.

Medvedev started his working visit to Germany with a dinner with Chancellor Angela Merkel at a forest lake in Hanover.

The main events are scheduled for Tuesday, July 19. Medvedev will meet with members of the Russian and German business communities and then members of the youth parliament.

Medvedev and Merkel will also attend the 13th round of Russian-German interstate consultations in Hanover at the 11th meeting of the Forum of Russian and German Civil Societies "St. Petersburg Dialogue".

Germany and Russia already have strong ties as trading partners, and the announcement by Germany that it plans to shut all its nuclear power stations in the light of the Fukushima accident in Japan gives Russia’s Gazprom an opportunity to expand in Germany. The company is hoping to tie up some deals in Hanover.

Gazprom sees Germany as a stepping stone to the whole EU market. Germany really hopes to expand on the relationship with Russia tapping into Dmitry Medvedev’s vast modernization program for the country.

Germany also hopes to snap up some deals in Russia – especially now that Angela Merkel faces criticism for potentially agreeing to bail out the failing economies of Portugal and Greece, and the news that the economic crisis could be spreading to Italy and Spain becomes of even greater concern to Germans.

Germany assumed presidency of the UN Security Council at the start of this month. With that in mind, Russia hopes that Germany can help bring NATO round to the view that there should be a joint missile-defense system for the whole of Europe, as there are concerns in Moscow that the NATO-only missile-defense system could be turned against Russia.

Russia and Germany are also the countries which abstained on the UN vote authorizing NATO action in Libya and they both want to stop further escalation of the violence there.

During Dmitry Medvedev’s visit to Germany both countries will be looking to strengthen their already strong relationship in a range of issues on which they share a common position.

03:50 19/07/2011ALL NEWS

Russian-German interstate consultations due in Hanover.

http://www.itar-tass.com/en/c154/188123.html

19/7 Tass 8

HANOVER (Germany), July 19 (Itar-Tass) — A wide range of issues relating to domestic policy and international issues will be discussed at Russian-German interstate consultations in Hanover on Tuesday with participation of visiting Russian President Dmitry Medvedev and German Chancellor Angela Merkel, a German government source reports.

Nine members of the German Cabinet of Ministers, including the foreign minister, the minister of economic affairs and the finance minister will take part in talks from the German side.

The government source said “a dozen of German-Russian agreements will be signed” at the consultations. According to the source, these will be economic agreements,

environmental protection agreements, as well as agreements concerning inter-ministerial contacts.

Particular attention will be paid to domestic policy issues, he continued, mentioning the upcoming elections to the Russian State Duma lower house of parliament and the presidential election.

The holding of the Russia-Germany cross-cultural years in 2012-2013 will be also in the focus of attention.

Saying that a meeting of the Forum of Russian and German Civil Societies “St. Petersburg Dialogue” will be held on the sidelines of the consultations, the source said that Angela Merkel considers this organisation important, “contributing to the development of a dialogue between the civil societies”.

The long-term aim is “to separate a dialogue of the civil societies from government agencies so that it could stand on its own legs,” the source said.

The implementation of the Partnership for Modernisation program will be also considered, as it is of mutual interest. It is also expected that President Dmitry Medvedev, for his part, will speak about Russia’s economic development. Russia’s prospects to join the World Trade Organisations are not likely to be discussed at consultations, the German side believes.

As for international problems, the sides are expected to discuss the situation in North Africa, Syria, Middle East and Iran taking into account its nuclear program and possible new sanctions to “encourage Tehran to a diplomatic settlement of that problem,” the source said.

On Tuesday, Dmitry Medvedev and Angela Merkel will meet with participants in the 11th meeting of the Forum of Russian and German Civil Societies “St. Petersburg Dialogue” and the Russian-German youth parliament, who will report on the work done.

Following the Russian-German interstate consultations, Medvedev and Merkel will sum up their results at a joint news conference.

Germany As A Role Model For Russia, Not Vice Versa – OpEdhttp://www.eurasiareview.com/germany-as-a-role-model-for-russia-not-vice-versa-oped-19072011/

Written by: Robert Amsterdam

July 19, 2011

It is to be welcomed that German Netzwerk Quadriga withdrew the award of the Quadriga prize to Russian Prime Minister Putin at the very last minute.  The strong public reactions to the plans to give this award to Putin, and the continued justification by some members of the jury of such decision, raises the question how the future dialogue between Russia and Germany should be shaped.

Awarding of prizes to leading political figures usually involves a degree of exaggeration as well as selective omissions of history.  Even by these standards, the recent decision by the jury to present Putin with its prestigious annual award would have been horribly misjudged.

The Quadriga Award is associated with values, model behaviour and innovative ideas focused on the future that Germany admires.   Does Germany really see Putin’s Russia as an inspiration and a model for the future?  Putin’s growing crisis of legitimacy at home certainly suggests that a majority of Russian citizens do not.

The award would still have been problematic even if we were to put aside the most obvious human rights violations under Putin’s rule over the past eleven years, ranging from the bloody counter-insurgency in the North Caucasus, to the brutal treatment of opponents, and the destruction of the judicial system symbolised by the murder of lawyer Sergei Magnitsky and show trials of former Yukos employees.

Only in an exercise of wilful collective amnesia can we erase from our memory the profound, systemic corruption of Russia under Putin, the squeezing of the media and civil society that has led to Russia being ranked at the level of a struggling African country in terms of the transparency of its business environment.  The recent pleasure boat tragedy on the Volga is yet another reminder that the Russian state has become dysfunctional and unable to protect its citizens.

The liberal political commentator Dmitry Oreshkin in an interview on the Russia radio station “Ekho Moskviy” on 12 July gave a succinct account of Putin’s achievements since he came to power: “In his first presidential address in June 2000 Vladimir Putin quite correctly pointed out that three things were slowing down economic growth: high taxes, corruption, and the tyranny and criminality of bureaucrats. “In order to overcome these troubles, it is necessary to strengthen the state”, Putin said. Well, the state was strengthened, and the number of bureaucrats doubled and the amount of bribes multiplied by ten or more, and the siloviki have merged criminal elements and security forces into one. Now it’s time to ask: What is the benefit of this vertical model, which we so carefully set up? And why is the man who created this model sitting at the top not accountable for any of it?”

For many years we have observed a race to the bottom in Europe to establish preferential relations with Moscow, and given Germany’s significant investments and perceived dependence on Russian energy resources, it should not be surprising that people like former Chancellor Gerhard Schröder and key German industrial leaders should attempt to transform the Bundestag into a lobbying resource for Gazprom.

In Germany’s diverse political environment there are nevertheless many who have resisted the idea that good relations with Russia must be accompanied by a sacrifice of rules, values, and tolerated violations of international law.  However the “new Ostpolitik” of the opportunists continues to creep forward.  This “pragmatic” view of Russia is even described in all seriousness as Russlandverständis as if the view to the contrary represents a misunderstanding of the country.  Russlandverständnis in fact reflects a poor understanding of the negative impact that acquiescence in Russia’s mafia-like governance has on German institutions, businesses and political culture.

This opportunism is led by a group of German businesspeople and political associates who argue that supporting Putin’s narrative secures investments and jobs.  This is not the Germany of values that we have come to admire.   In an attempt to find a comfortable and profitable modus vivendi with Russia the opportunists believe that uncritical acceptance and engagement with Putin may in the long run soften his rule and increase German leverage to improve the strength of Germany’s voice in favour of Rechststaatlichkeit and core human values.

Our view is that this approach defies Russia’s history and ignores the cost to Germany’s credibility, most particularly with those groups in Russian society that contain the seeds of the country’s renewal and spiritual re-birth.  If Germany owes a debt to Russia, and we believe it does, it should be repaid not with opportunism but with honesty, not with eyes firmly shut but with mouths wide open.

Opportunism is not Ostpolitik when gross violations of human rights and rule of law are routinely admitted by Russia’s leaders in words but denied in acts. It was Anna Politkovskaya who said that to understand Putin’s rule is not to accept that Russian DNA differs from our own but rather to understand that the atrocities of Chechnya trained a generation of Russian law enforcement officers in torture and bending of rules that was exported throughout the Russian Federation.

Germany must not make the mistake of accepting the Kremlin’s narrative for the world to remain endlessly patient for its “reform from within,” “modernisation,” and the embryonic growth of democratic society through the creation of hollow state-approved opposition parties.

A version of this article was published in the German news magazine Stern.

Russia allows Polish vegetable importsToday at 09:25 | Reuters MOSCOW, July 19 (Reuters) - Russia will permit the resumption of vegetable imports from Poland from Wednesday, the Interfax news agency cited the head of Russia's consumer protection agency as saying on Tuesday.

Russia banned imports of raw vegetables from the European Union on June 2 due to a deadly E.coli outbreak. Moscow later agreed to drop the ban provided it received safety guarantees, and several countries have resumed exports to Russia.

Read more: http://www.kyivpost.com/news/russia/detail/108912/#ixzz1SX2pfHrn

00:41 19/07/2011ALL NEWS

Caspian working group to discuss preparations for Caspian summit.

http://www.itar-tass.com/en/c154/188095.html

19/7 Tass 9

MOSCOW, July 19 (Itar-Tass) — Participants in the 29th session of the Caspian working group at the level of deputy foreign ministers of the Caspian states will discuss in Moscow on Tuesday preparations for the fourth Caspian summit.

“Delegations from Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan will take part in the meeting,” sources from the Russian Foreign Ministry said. “Further talks on a draft convention on the legal status of the Caspian as well as preparations for the fourth Caspian summit which will be convened in Moscow are on the agenda,” they said.

Uncertainty of Caspian Sea status remains one of the main problems in relations of the Caspian states (Russia, Iran, Kazakhstan, Azerbaijan and Turkmenistan). The sides agree that it is necessary to sign the convention on the legal state of the Caspian Sea, as the lack of understanding in that issue impedes the implementation of energy projects as well as creates conditions for reorientation of energy exports.

Experts note that the results of the third summit of the Caspian states in November 2010 became a kind of a breakthrough in that issue. In particular, the five states came to the conclusion that it is necessary to speed up the process of negotiations on the legal status of the sea and prepare the convention for the signing at the next summit that will be held in Russia.

Iran urges Caspian Sea unanimous treatyhttp://www.presstv.com/detail/189733.html

Tue Jul 19, 2011 6:50AM

Any convention on the legal regime of the Caspian Sea must be determined through consensus of all the five littoral states, an Iranian lawmaker says.

“A draft convention on the legal status of the Caspian Sea must be codified based on a consensus among all the five littoral sates and without political meddling of foreign countries,” Mehdi Mehdizadeh, a member of Iran's Majlis (parliament) Committee on National Security and Foreign Policy told ICANA on Tuesday.

The lawmaker further explained that the Caspian Sea region is of strategic importance due to its rich fish and oil deposits, and therefore the sea resources must be divided on justice and consensus between the five littoral states -- Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan.

He pointed out that Iran's share of the resources must be at least 20 percent, reiterating that Tehran must not agree to a new convention if its share is supposed to be less than 20 percent.

Representatives from the five littoral states are in Moscow, Russia, to discuss a draft convention on the legal status of the sea.

Mohammad Mehdi Akhoundzadeh, Iranian presidential advisor for Caspian Sea affairs, heads the Iranian delegation to the 29th session of the special working group scheduled for July 19-20.

The Caspian Sea is the largest enclosed body of water on earth by area, and is variously classed as the world's largest lake or a full-fledged sea.

Despite extensive negotiations, the legal status of the Caspian Sea has been unclear since the break-up of the Soviet Union in 1991.

Currently, the Caspian Sea's legal regime is based on two agreements signed between Iran and the Soviet Union in 1921 and 1940.

Azerbaijan, Kazakhstan and Turkmenistan -- the three new littoral states, established after the collapse of Soviet Russia -- do not recognize the prior treaties, triggering a debate on the future status of the sea.

The littoral states have yet to come up with a final convention on the Caspian Sea, which will determine the territorial rights of littoral states as well as other matters related to the sea.

AR/HRF

'Iran has not received Russia N-offer'

http://www.presstv.ir/detail/189736.html

Tue Jul 19, 2011 7:20AM

Iran's Foreign Ministry Spokesman Ramin Mehmanparast says Tehran will study Russia's “step-by-step” approach proposed over the country's nuclear program upon receiving it.

In his weekly press conference on Tuesday, Mehmanparast said Iran has not received Russia's proposal yet, adding that any plan must observe the rights of the Iranian nation.

On July 14, Russia's Foreign Minister Sergei Lavrov laid out a new “step-by-step” approach that would enable Iran to take steps to address questions raised by the International Atomic Energy Agency (IAEA) regarding Tehran's nuclear program.

According to the plan, Iran can revive negotiations to alleviate individual concerns of the IAEA about its nuclear activities and be rewarded along the way by partial removal of sanctions.

The approach would start out with the easiest questions and move onto more complicated ones that would require a longer time to respond to, according to the Russian official.

"The response to each specific step of Iran would be followed by some reciprocal steps, like freezing some sanctions and shortening the volume of sanctions," Lavrov further explained.

MYA/MMA/HRF

01:10 19/07/2011ALL NEWS

Russian, British chiefs of general staff to discuss military ties.

http://www.itar-tass.com/en/c154/188104.html

19/7 Tass 10

MOSCOW, July 19 (Itar-Tass) — Chief of the Russian General Staff, Army General Nikolai Makarov, and General David Richards, Chief of the Defence Staff, United Kingdom, meet on Tuesday in Moscow to discuss military cooperation, sources from the information department of the Russian Defence Ministry report.

General David Richards arrived in Moscow on July 17 for a working visit.

The two top military officials “plan to discuss the present state and prospects for military cooperation between the defence agencies of the two countries,” the sources said.

Besides, General Richards and accompanying him persons will visit the Fifth Separate Motor Rifle brigade of the Western Military District, stationed in the settlement of Alabino (Moscow region), the sources added.

On July 20, the British military delegation will leave for St. Petersburg, where General Richards will meet with the leadership of the Western Military District. The visit will end on July 21.

Iran to Attend MAKS 2011 Air Show in Russia http://english.cri.cn/6966/2011/07/18/197s649155.htm

    2011-07-18 23:11:38     Xinhua       Web Editor: Liangtao A senior Iranian aviation official said Monday that the Islamic Republic plans to take part in the International Aviation and Space salon (MAKS) air show in Russia, the local satellite Press TV reported.

Managing director of Iran's Aviation and Aerospace Industries Company Amin Salari said that Iranian aerospace companies will participate in the MAKS 2011 aviation show which will provide Iranian participants with the opportunity to show their capabilities and advances in aeronautics, said the report.

MAKS 2011, an international air show, will be held in the small science town of Zhukovskiy, 25 miles southeast of Moscow from Aug. 16-21, 2011.

Meanwhile, Deputy Commander of Iran's Air Force Brigadier General Aziz Nasirzadeh said Monday the country's air force will hold a major military maneuver in the near future, the official IRNA news agency reported.

The maneuver aims at defending and exercise purposes, Nasirzadeh was quoted as saying.

More Russian Engines for China’s J-10 Fighterhttp://www.ainonline.com/news/single-news-page/article/more-russian-engines-for-chinas-j-10-fighter-30551/

By: David Donald

July 18, 2011Military Aircraft, Military Engines

The AL-31FN is based on the standard Su-27 engine but is reconfigured to suit it to single-engine applications. (Photo: NPO Saturn)

China has signed a fifth contract with Russia’s Rosoboronexport for the supply of Saturn AL-31FN military turbofan engines from the MMPP Salyut factory to power the Chengdu J-10 multi-role fighter, according to reports from Moscow.

The reports say the $500 million contract covers 123 engines for delivery by 2013, with the first 13 expected before the end of this year. This would take known Chinese procurement of the AL31FN to 399, plus an unspecified number provided in an initial batch for prototypes and pre-production aircraft. Such numbers are in line with analysis concerning expected Chinese procurement of the J-10.

Based on the standard AL-31F used to power versions of the Su-27 Flanker, the FN was redesigned by MMPP Salyut with its gearbox and accessories relocated to underneath the engine. Salyut has offered a number of more powerful versions to China, although it appears that the engines supplied to China so far have been to a common standard.

This new order for the AL-31FN has inevitably raised speculation concerning China’s indigenous Shenyang Liming WS-10A Taihang engine developed by the 606 Institute. That engine was originally intended for installation in the J-10 at some point. It has been suggested that the WS-10A, while it has been flying for some time in the Shenyang J-11B and J-15 unlicensed Flanker derivatives, might not be deemed reliable enough for a single-engine application.

It is also plausible that the Shenyang Aero Engine Works does not have the capacity to satisfy the demands of the J-10 line, which is in full-rate production, or simply that the Chinese are content with the Russian powerplant and have no desire to change.

10:30 19/07/2011 » Politics

Nalbandian: Armenian President’s response to Medvedev's recommendations will be soon releasedhttp://www.panorama.am/en/politics/2011/07/19/nalbandyan/

 Armenian Foreign Minister Edward Nalbandian had a phone conversation with his Russian counterpart Sergey Lavrov. During the conversation the diplomats have focused on the running phase of the Nagorno-Karabakh conflict.

MFA press service informs Edward Nalbandian and Sergey Lavrov have discussed further steps to create friendly atmosphere in the negotiations.

The Ministers have also highlighted the implementation of agreements made among Serzh Sargsyan of Armenia, Dmitry Medvedev of Russia and Ilham Aliyev of Azerbaijan in Astrakhan summit 2010 and in Sochi summit 2011.

Armenian FM said Armenian President's response to Dmitry Medvedev's recommendations would be soon released.

Baku lays claims to Moscow

http://news.am/eng/news/68392.html

July 19, 2011 | 11:05

YEREVAN.  Baku “remembered” Russia’s military presence in the South Caucasus and spoke out loud.

“Official Baku is concerned over the presence of Russian servicemen in Armenia,”Personal Representative of Azerbaijani President on Nagorno-Karabakh conflict, Deputy Foreign Minister Araz Azimov said in an interview with Ekho Moskvy.

According to him, Russia should shift from militaristic concept to economic one in the South Caucasus, 1news.az reports.

“Unfortunately, Russia finds it necessary to keep its armed forces in the territory of Armenia. We see less and less reason for such a militaristic concept in the South Caucasus. It is time to change tanks by the tanker, that is to replace military presence by the economic one,” he said. Later Azimov “explained” the goal of his previous statements, saying “it is in Russia’s interest to persuade Armenia to accept constructive proposals, presented during the talks.

As reported earlier, Russia’s 102nd military base is deployed in the territory of Armenia. Besides, protection of Armenia’s state borders is carried out by Russian border guards.

In addition to interfering in Armenia’s domestic affairs, Azimov’s statement apparently aims to blackmail Moscow and reduce its role as a mediator in the Karabakh conflict resolution. 

Azerbaijani official:Russia must change its role in the region http://times.am/2011/07/19/azerbaijani-officialrussia-must-change-its-role-in-the-region/

By Times.am at 19 July, 2011, 12:00 pm

Azerbaijan is troubled with the presence of Russian troops in Armenian territory. Araz Azimov, personal representative of Ilham Aliyev on NK issue, Azerbaijani Deputy Minister for Affairs has announced about this during the interview with radio station “Echo of Moscow”. According to him, Russian must change its role in the region from military to economical.

”Russia considers it is necessary to keep military forces in Armenia. Weare sure Russia has few reasons to keep military forces in the South Caucasus. The military presence must be replaced with the economical” Azimov said.

/Times.am/

Azerbaijani official: Abkhazia and South Ossetia excluded from Moscow-Baku tradehttp://en.trend.az/news/karabakh/1907211.html

[19.07.2011 11:55]

Azerbaijan, Baku, July 19 / Trend /

Abkhazia and South Ossetia have never been the subject of a trade between Russia and Azerbaijan under the Nagorno-Karabakh conflict resolution, Azerbaijani Deputy Foreign Minister Araz Azimov said in an interview with the Echo Moskvy radio station.

He assured that Russian representatives have never hinted at the possibility of such an exchange.

Azimov said Azerbaijan does not intend to recognize the independence of Abkhazia and South Ossetia.

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

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

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

Military actions were launched in the unrecognized republic of South Ossetia in August 2008. Georgian troops entered Tskhinvali, the capital of South Ossetia, and later Russian troops occupied the city and drove the Georgian military back to Georgia. Russia recognized the independence of Abkhazia and South Ossetia on Aug. 26 and established diplomatic relations with these regions on Sept. 9, 2008.

Do you have any feedback? Contact our journalist at trend@trend.az

Azerbaijani official: Russia to shift from militaristic to economic presence in South Caucasushttp://en.trend.az/news/politics/1907132.html

[19.07.2011 10:55]

Azerbaijan, Baku, July 19 /Trend/

Azerbaijani Deputy Foreign Minister Araz Azimov believes that it’s time for Russia to move from a militaristic to an economic stance in the South Caucasus.

Azerbaijan is concerned by the presence of Russian troops in Armenia, Azimov said in an interview with the Echo Moskvy radio station.

"Unfortunately, Russia finds it necessary to keep armed forces in Armenia. We see less and less reason for such a militaristic presence in the South Caucasus - it's time to change from tanks to tankers; that is, from a militaristic presence to an economic one", he added.Persuading Armenia to accept constructive suggestions in negotiations over the Karabakh settlement is in Russia’s best interest, Azimov said.

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

Azerbaijan and Armenia signed a ceasefire agreement in 1994. The co-chairs of the OSCE Minsk Group - Russia, France, and the U.S. - are currently holding the peace negotiations.Armenia has not yet implemented the U.N. Security Council's four resolutions on the liberation of the Nagorno-Karabakh and the surrounding regions.

Do you have any feedback? Contact our journalist at trend@trend.az

July 19, 2011 11:50

Ukraine counts on Russia's role in gas network upgrade – premierhttp://www.interfax.com/newsinf.asp?id=260129

BOHUSLAV. July 19 (Interfax) - Kyiv is interested in Moscow's contribution to efforts aimed at modernizing the Ukrainian gas transportation system, Ukraine's Prime Minister Mykola Azarov said.

"Russia's position will now start to change in light of our practical steps. At least we are counting on it," Azarov told journalists in the Bohuslav district of the Kyiv region, which hosted a ceremony on Tuesday that launched the modernization of the Urengoy-Pomary-Uzhgorod gas pipeline.

Ukraine has repeatedly asked Russia to take part in this process, but Kyiv itself refused to invest anything it in, the premier said.

Azarov said he hoped that Russia would change its position when it saw Ukraine's work done together with European partners.

It was reported earlier that Ukraine had launched the first stage as part of an overhaul of the Urengoy-Pomary-Uzhgorod gas pipeline.

tm jv

(Our editorial staff can be reached at eng.editors@interfax.ru)

Russians interested in acquisition of Ukraine Energy Companyhttp://www.steelguru.com/russian_news/Russians_interested_in_acquisition_of_Ukraine_Energy_Company/215261.html

Tuesday, 19 Jul 2011Ukrainian Journal cited Mr Ildar Hazizullin an expert of the International Centre for Policy Studies as saying that apart from Ukrainian financial and industrial groups who own minority stakes in heat generation and regional electricity supply companies, Russian companies are also interested in the acquisition of Ukrainian energy companies.

He said that the privatization of heat generation would attract the required investment, as Ukrainian thermal power plants have some of the lowest technical and economic indicators in Europe.

(Sourced from Ukrainian Journal)

Saakashvili sent letter to Medvedevhttp://www.news.az/articles/georgia/40733

Tue 19 July 2011 06:20 GMT | 8:20 Local Time

Saakashvili informs Medvedev "about the problems of terrorist attacks on Georgian territory".

According to the "GHN", the head of the Security Council of Georgia Giorgi Bokeria said that President Mikhail Saakashvili had sent a letter to the Russian leader Dmitry Medvedev.

In his letter Saakashvili has informed the president of Russia "about the problems of terrorist attacks on Georgian territory".

"We thought if these attacks were the initiative of private groups in the security services? - Said Bokeria. - Might the Russian president not to know about it?"

Recall, according to Moscow, Tbilisi is trying to escape from the real problems in relations with its neighbors when accusing Russia of preparing terrorist attacks.

"It seems that the Georgian side is continuing its irresponsible policy of exaggeration spy mania, suspicion, not only to Russia but also in relation to the local situation in Georgia" - said in an interview with Russian media Russian Deputy Foreign Minister Grigory Karasin.

Georgia Times

03:09 19/07/2011ALL NEWS

PM to discuss ways to consolidate Russian society.

http://www.itar-tass.com/en/c154/188117.html

19/7 Tass 7

MOSCOW, July 19 (Itar-Tass) — Russian Prime Minister Vladimir Putin meets on Tuesday with leaders of the main traditional for Russia religious confessions as well as with the leadership of some public organisations and national-cultural autonomies, the government press service reports.

According to the press service, participants in the meeting “will discuss ways to consolidate the Russian society, as well as its harmonious development on the basis of ethnic and cultural diversity, fight against manifestations of extremism and xenophobia, and cooperation with that aim of government authorities and public organisations, including within the framework of the All-Russia People’s Front”.

“Relations of representatives of different ethnic groups and religions are very topical for Russia, which historically is a multinational and multi-confessional country,” press service’s report said.

10:05 19/07/2011ALL NEWS

Medvedev signs law on housing subsidies to Far North residents.

http://www.itar-tass.com/en/c154/188237.html

19/7 Tass 92

MOSCOW, July 19 (Itar-Tass) — Russian President Dmitry Medvedev signed the federal law “On housing subsidies to citizens who move from the closing settlements in the Far North regions and equivalent areas.”

The document was adopted by the State Duma lower house of parliament on July 5, 2011 and approved by the Federation Council upper house on July 13, 2011.

Russian Navy to get new air defence system ‘Pantsyr-M’http://www.brahmand.com/news/Russian-Navy-to-get-new-air-defence-system-%E2%80%98Pantsyr-M%E2%80%99/7549/3/13.html

Posted On: Jul 19, 2011 MOSCOW (BNS): KBP Instrument Design Bureau has announced to soon deliver a new ship-based gun/missile air defence system Pantsyr-M, to Russian Navy, a media report said.

"Pantsyr-M will replace the Kortik air defence systems and will be installed on all new classes of Russian combat ships, from corvettes to cruisers," RIA Novosti quoted Alexander Zhukov, a senior KBP official as saying.

Pantsyr-M as the data on the system for the Russian Navy is still classified, he added.

The new missile is based upon land-based Pantsyr-S1 (SA-22 Greyhound).

Russia holds air combat manoeuvres in North CaucasusYesterday at 21:19 | Reuters MOSCOW, July 18 (Reuters) - Russia began large-scale air force training manoeuvres in the North Caucasus on Monday in a step towards boosting security against an Islamic insurgency raging in the region, a newspaper reported.

The exercise is the largest of its kind in the predominantly Muslim region of Kabardino-Balkaria in 15 years and will involve fighter jets and combat helicopters, the Nezavisimaya Gazeta daily quoted air force spokesman Vladimir Drik as saying.

The manoeuvres are aimed at strengthening military capabilities in a region where Moscow has promised to beef up security to protect the 2014 Winter Olympics from threatened Islamist rebel attacks.

The war games, which will continue until August 10, are being carried out also with an eye to Russia's southern neighbour Georgia, with which Moscow fought a brief war in 2008.

"Tactics and methods of deploying air forces for combat in the mountains, including army aviation... will be worked out here," a military source who declined to be named was quoted by the paper as saying. An air force spokesman reached by Reuters declined comment on the report.

A decade after federal forces toppled a separatist government in Chechnya in the second of two wars since 1994, Moscow is struggling to contain an insurgency aimed at carving out an independent Islamic state in the North Caucasus.

The training comes weeks after a new 7,000 strong group of law-enforcement officers was created in the nearby region of Dagestan, where violence has exploded, making it the deadliest region along Russia's insurgency-stricken southern flank.

"There was war in this region not long ago, and since it is one of the tensest regions in the country, there is new military equipment being sent to outfit the troops there," said Anton Lavrov, an anaylst at Moscow-based military think-tank CAST.

"It's a question not only of militants, but of possible renewed tensions with Georgia," he said, adding that the military conducts similar training every year in the North Caucasus, but on a smaller scale.

Russia fought and easily won a five-day war with Georgia over rebel South Ossetia in August 2008. Moscow has accused Georgia of trying to stir ethnic tensions ahead of the Sochi Games, a charge Tbilisi denies.

Alexander Bortnikov, the head of Russia's Federal Security Services, the domestic successor of the Soviet KGB, told President Dmitry Medvedev on Monday that the agency was devoting "serious attention" to the North Caucasus, where suicide bombings and targeted killings occur daily.

On Monday, two police officers were killed in southern Chechnya in a land mine explosion, state news agency RIA cited a local law-enforcement official as saying.

Russia aims to undercut support for the insurgency by increasing tourism in the mountainous region, where it is trying to draw investment for a $15 billion cluster of ski resorts.

Russia is due to host the Winter Olympics in the nearby region of Krasnodar in three years' time.

Insurgent violence has spread in recent months to the region of Kabardino-Balkaria, where militants gunned down three Moscow tourists en route to ski at Mount Elbrus, a popular local resort and the tallest peak in Europe. Security forces have responded to the

spike in violence by increasingly using air support in the mountainous area in its operations against insurgents.

Read more: http://www.kyivpost.com/news/russia/detail/108893/#ixzz1SX34hc1H

The President of Dagestan has a number of working meetings in Moscow http://www.riadagestan.com/news/2011/07/19/6958/

19.07.2011 , 10:20

Moscow, July 19, 2011. On July 18, the President of the Republic of Dagestan Magomedsalam Magomedov had several meetings with members of the Government of the Russian Federation and with the management of OAO “Rosselkhozbank”.

Dagestani Head met with the Russian Deputy Prime Minister Igor Sechin. Questions of state support of the real sector of the economy of the republic were discussed.

On the same day Magomedsalam Magomedov met with Minister of Natural Resources and the Environment of the Russian Federation Yuri Trutnev. The work of organizations and institutions under the Ministry of Russia in Dagestan was discussed. During the meeting, questions of flood control, shore protection and the organization of work of the nature reserve "Dagestansky" were considered.

The President RD also met with the Chairman of the Managing Board of OAO "Rosselkhozbank" Dmitry Patrushev. They discussed the question of increasing of additional offices of "Rosselkhozbank" in the republic. M. Magomedov thanked D. Patrushev for the development of agriculture of Dagestan and invited the Chairman of the Managing Board of "Rosselkhozbank" to visit the region.

Shuttle Atlantis undocks from ISS for last timehttp://en.rian.ru/society/20110719/165277465.html

10:45 19/07/2011

MOSCOW, July 19 (RIA Novosti)

The U.S. shuttle Atlantis undocked from the International Space Station for the last time on Tuesday, NASA said.

The undocking of the spacecraft from the station's module Harmony took place at 10:28 a.m. Moscow time (6:28 GMT) and the shuttle is expected to land in Florida at 1:28 p.m. Moscow time (9:28 GMT) on July 21.

Once the U.S. shuttle fleet is retired after the end of the current Atlantis mission to the orbital station, Russia's Soyuz and Progress spacecraft will take the bulk of crew rotation and cargo missions to the ISS until at least the middle of the decade.

Russia has signed a number of contracts with NASA on the delivery of U.S. astronauts to the ISS until 2016, which take into consideration annual inflation rates and rising cost of materials in Russia.

NASA is paying Roscosmos more than $1 billion for crew transport services over the next four years.

05:45 19/07/2011ALL NEWS

Area of wildfires in Far East grows to almost 19,000 hectares.

http://www.itar-tass.com/en/c154/188145.html

19/7 Tass 45

KHABAROVSK, July 19 (Itar-Tass) — Heat wave in Russia’s Far East has aggravated the situation with wildfires. Their area has increased by more than 3,700 hectares over the past 24 hours reaching 18,875 hectares by Tuesday morning, sources from the forestry department of the Far Eastern Federal District told Tass.

“The situation in Yakutia remains the most difficult,” the sources said. Fires there have engulfed over 13,900 hectares of woodland and almost 4,600 hectares of non-forest areas. Yakutia accounts for 24 of 35 wildfires fixed in the east of the country.

Fires are also registered in the Amur and Khabarovsk regions, as well as in Chukotka, but the situation in those regions is not alarming.

Over 1,330 people have been mobilized to fight wildfires. Il-76, Be-200 planes as well as Mi-26 and Mi-8 helicopters are used in efforts to put out wildfires. They have been dispatched in the region by the Russian Ministry for Emergency Situations.

An emergency situation regime has been announced in 19 municipalities of Yakutia in connection with a difficult fire situation.

July 19, 2011 11:16

Fire localized at gas pipeline near Yaroslavl oil refineryhttp://www.interfax.com/newsinf.asp?id=260119

MOSCOW. July 19 (Interfax) - A fire that broke out on a gas pipeline in the Yaroslavl region has been localized and is no longer a threat to an oil refinery near the pipeline, the regional emergency situations center informed Interfax.

"No fatalities have been reported. One man was injured. Part of the construction equipment has been destroyed," an emergencies spokesman said.

"The fire broke out at an idle stretch of the gas pipeline. Gas that remained in the pipeline caught fire, but poses no threat to nearby facilities," the spokesman said.

Sd jv

Passenger aircraft makes emergency landing in Russia's Uralshttp://en.rian.ru/russia/20110719/165272644.html

02:47 19/07/2011

YEKATERINBURG, July 19 (RIA Novosti)

An Airbus A-320 passenger aircraft en route from Bulgaria to Russia made an emergency landing at Russia's Koltsovo airport in the Urals, a spokeswoman for the airport said on Tuesday.

"Everything is all right with everyone," she said but did not specify the number of people on board the aircraft.

Sergei Antonov, a spokesman for the Urals Airlines that the aircraft belongs to, has confirmed the plane's emergency landing but revealed neither the cause of the incident nor any details.

The Airbus A-320 en route from the Bulgarian resort city of Bourgas to Russia's Yekaterinburg performed the emergency landing at the Koltsovo airport at 0:20 Moscow time on Tuesday (20:20 GMT on Monday).

11:27 19/07/2011ALL NEWS

A-320 jet makes distress landing at Yekaterinburg airport, no one hurt.

http://www.itar-tass.com/en/c154/188307.html

19/7 Tass 125

YEKATERINBURG, July 19 (Itar-Tass) — An A-320 jet en route from Bulgaria’s resort city of Burgas made a distress landing at Yekaterinburg’s Koltsovo airport, a spokesman for the Urals Airlines told Itar-Tass on Tuesday. No one was hurt.

“At 23:34 Moscow time on July 18, the jet was about to land at the Koltsovo airport, when the pilot reported a failure of one of the plane’s three hydraulic systems. The airports emergencies services were put on alert. The plane landed safely, neither of its 119 passengers were hurt,” the spokesman said.

An investigation is underway.

10:26 19/07/2011ALL NEWS

One killed in Mi-8 emergency landing in Sverdlovsk region.

http://www.itar-tass.com/en/c154/188257.html

(adds)

19/7 Tass 107

MOSCOW, July 19 (Itar-Tass) — One person was killed in an emergency landing of a Mi-8 helicopter in Russia’s Sverdlovsk region, a spokesman for the regional emergencies administration told Itar-Tass on Tuesday.

“At 09:23 a.m. Moscow time on Tuesday, a Mi-8 helicopter owned by the Uktus air carrier made an emergency landing 90 kilometers west of the city of Yekaterinburg,” the spokesman said. There were four persons onboard, one was killed.

Another Mi-8 with rescuers onboard will soon reach the scene of the accident.

RT News line, July 19

Ten people killed in blast rocked Russia’s Ural regionhttp://rt.com/news/line/2011-07-19/#id14637

11:59

Ten people have been killed in an explosion at Baidarakskaya gas-compressor station in the Yamalo-Nenets Autonomous area in Russia’s Ural region, RIA Novosti quotes the regional Emergencies Ministry as saying on Tuesday. The blast occurred while tests were being conducted.

11:55 19/07/2011ALL NEWS

10 persons hurt in compressor pant explosion on Russia’ s Yamal.

http://www.itar-tass.com/en/c154/188330.html

19/7 Tass 1

MOSCOW, July 19 (Itar-Tass) —— Ten persons were hurt in an explosion at the Baidarskaya compressor plant on Russia’ s Yamal peninsula, northwestern Siberia, a spokesman for the local emergencies administration told Itar-Tass on Tuesday.

10:25 19/07/2011ALL NEWS

Two hurt in explosion at chemical plant in Sverdlovsk region.

http://www.itar-tass.com/en/c154/188255.html

19/7 Tass 84

YEKATERINBURG, July 19 (Itar-Tass) — Two persons were hurt in an explosion at a chemical plant in the town of Rezh, Sverdlovsk region, a spokesman for the regional emergencies administration told Itar-Tass on Tuesday.

“The accident was reported at 21:57 local time (19:57 Moscow time) on July 18. An explosion of colloxylin that was used for production purposes occurred after the plant’s guard officers moved pipes,” the spokesman said.

Two persons were hospitalized with burns. One is said to be in critical condition.

An investigation is underway.

Bodies of 2 miners recovered from Russian coal minehttp://en.rian.ru/russia/20110719/165277446.html

10:44 19/07/2011

MOSCOW, July 19 (RIA Novosti)

Rescuers on Tuesday found the bodies of two miners who have been trapped underground in the crippled Severnaya mine in Russia's Komi Republic since Saturday, the Emergencies Ministry said.

The miners remained underground after a collapse destroyed the mineshaft. "It was established that the miners died during the collapse," the ministry said in a statement.

They are the unlucky ones, of the 79 miners initially trapped in the mine, 76 were immediately lifted to safety.

Initial Emergencies Ministry reports said that the three trapped miners were alive. However, only one more miner was found and brought to the surface alive. He is presently in the hospital.

According to the local emergencies services, the collapse occurred as a result of a rock fall. The ventilation shaft at the mine was not damaged, the statement said.

The Severnaya mine is operated by Vorkutaugol, one of the largest mining companies operating in the Pechorsky Coal Basin, Russia's second largest after Kuzbass. The company is owned by Severstal, one of the biggest steel holdings in Russia, through its subsidiary Severstal-Resurs.

PRESS DIGEST - Russia - July 19http://in.reuters.com/article/2011/07/19/press-digest-russia-july-idINLDE76I0BI20110719

12:55pm IST

MOSCOW, July 19 (Reuters) - The following are some of the leading stories in Russia's newspapers on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

KOMMERSANT

www.kommersant.ru

- Russian President Dmitry Medvedev and German Chancellor Angela Merkel will most likely discuss ways of launching of a third link of the Nord Stream gas pipeline under the Baltic Sea, the daily says.

- Russia's state-run oil company Rosneft (ROSN.MM: Quote, Profile, Research) and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) have no plans to exchange shares and will cooperate in development of Arctic offshore zones and possibly in some international projects, Shell CEO Peter Vozer says in an interview.

VEDOMOSTI

www.vedomosti.ru

- Russian billionaire and aluminium giant UC RUSAL (0486.HK: Quote, Profile, Research) main shareholder Oleg Deripaska's power group EuroSibEnergo wants to acquire MRSK Siberia (MRKS.MM: Quote, Profile, Research) from power grid company MRSK Holding (MRKH.MM: Quote, Profile, Research), the daily says.

- The daily runs an interview with Google Inc (GOOG.O: Quote, Profile, Research) Chairman Eric Schmidt, who says he invests his own money in Russian start-ups.

ROSSIISKAYA GAZETA

www.rg.ru

- Deaths from drug overdoses have doubled in Moscow and the number of official drug addicts in the capital has grown by 4 percent to 25,000 people, compared to the last year, according to officials.

- Russian security forces have detained a group of four people from the North Caucasus who were allegedly preparing an attack on transport or public sites in Moscow, according to FSB chief Alexander Bortnikov's report to President Medvedev.

RBK DAILY

www.rbcdaily.ru

- Russia's lawmakers could allow the state to buy out credit debts from almost 20,000 borrowers unable to make payments on their home loans.

- Russia will introduce a 25 percent tax duty from 2012 for equipment with GPS navigation systems, including mobile phones, according to Deputy Prime Minister Sergei Ivanov.

IZVESTIA

www.izvestia.ru

- Russia's prosecutors have decided to charge prison doctors with negligence in the death of Sergei Magnitsky, the Hermitage Fund lawyer.

NEZAVISIMAYA GAZETA

www.ng.ru

- The daily is running an interview with Deputy Defence Minister Anatoly Antonov who is in charge of military and technical cooperation with foreign states.

- United Russia has launched a project to unite young female activists into a virtual organisation called "Putin's army" to express support for Vladimir Putin as Russia's next president.

Russian Press at a Glance, Tuesday, July 19, 2011http://en.rian.ru/papers/20110719/165276666.html

09:24 19/07/2011

POLITICS

Russian President Dmitry Medvedev and German Chancellor Angela Merkel are holding intergovernmental talks on Tuesday with the issue of the Nord Stream gas pipeline construction expected to be in the focus of the talks(Kommersant, Rossiiskaya Gazeta, Nezavisimaya Gazeta, The Moscow Times)

Russian Foreign Minister Sergei Lavrov says Russia will not host Libyan leader Muammar Gaddafi should he choose to step down(Kommersant)

ECONOMY & BUSINESS

Russia's VTB group, which includes the country's second largest VTB bank, saw first quarter net profits jump 70.6 percent year-on-year to 26.1 billion rubles ($932 million) to IFRS(Vedomosti)

Russian-British joint venture TNK-BP has signed an agreement with Brazil's Petro Energia to purchase 45 percent in an oil and gas project in the country's Solimoes region(Kommersant)

There probably aren't many things that Sberbank president German Gref tries not to think about. But a U.S. default, which will take place if warring political parties in Washington cannot agree on a deficit reduction plan, is one of them(The Moscow Times)

OIL & GAS

All attempts of the Russian government to restrain increasing fuel prices give no results so far as wholesale prices increased by 1.7 percent over the last week(Vedomosti)

Moscow's Basmanny District Court found guilty in absentia Antonio Valdes-Garcia, the former head of Yukos trading company Fargoil, on charges of embezzling oil and laundering the proceeds(Rossiiskaya Gazeta)

TRADE

Russia and the United States during World Trade Organization (WTO) talks could not reach an agreement on meat imports, Russian Economic Development Minister Elvira Nabiullina said(Nezavisimaya Gazeta)

IT

About 8,000 text messages - complete with telephone numbers - were detected by popular search engine Yandex after being sent from Megafon's website, one of Russia's top mobile operators(Vedomosti, Kommersant)

CRIME

Two policemen were killed, two more policemen and a passer-by were wounded in a blast in Kaspiisk, a city in the Russian North Caucasus republic of Dagestan

(Kommersant)

Russia’s security service, the FSB, has arrested four suspected terrorists from the North Caucasus who were preparing a bomb attack on public transportation in Moscow, FSB head Alexander Bortnikov told President Dmitry Medvedev(Kommersant)

WORLD

Metropolitan Police Assistant Commissioner John Yates resigned on Monday, a day after his boss stepped down over a phone hacking scandal(Rossiiskaya Gazeta)

SOCIETY

Moscow police promised to look into a complaint that a traffic police officer threatened a pregnant woman with a gun for failing to yield to an unidentified government official's car. A police spokesman said “disciplinary actions” would be sought against the officer should his guilt be proven in an inquiry(The Moscow Times)

SPORTS

On Sunday, July 17, Sochi hosted an auto sports festival during preparations for the 2014 Russian Grand Prix. The event involved Formula One racing teams(Rossiiskaya Gazeta)

07/18/2011 

The World from Berlin

Award for Putin Was 'Dilettantish and Politically Insensitive'http://www.spiegel.de/international/europe/0,1518,775103,00.html

A week after it emerged that Russian Prime Minister Vladimir Putin would receive a prestigious German prize meant to honor "role models," the sponsoring organization has pulled the plug on this year's entire award ceremony. German commentators agree with critics: Putin has little in common with previous winners.

Russian Prime Minister Vladimir Putin's award closet must be crammed. It holds his judo trophies, Time magazine's "Person of the Year" award, the Grand Croix of France's Legion of Honor and the highest civilian honors of Saudi Arabia and the United Arab Emirates. And, from Germany, he already has the "Order of Saxon Gratitude," which the eastern city of Dresden awarded him in 2009 for reportedly promoting cultural relations between Russia and Germany.

But just a week after news emerged that he might have to make room for another German award, the deal is off.

Some two weeks ago Germany's Süddeutsche Zeitung revealed that Werkstatt Deutschland, a Berlin-based nonprofit organization, was planning to present Putin with its Quadriga Prize on Oct. 3, the day on which Germany's celebrates its reunification. Since 2003, the private organization has used the prestigious award to annually honor a handful of "role models who are committed to enlightenment, commitment and welfare," according to its website. The prize is in the shape of a chariot drawn by four horses -- or a "quadriga" -- like the statue on top of Berlin's Brandenburg Gate.

On Saturday, the sponsoring organization responded to a storm of criticism from the media and politicians by not only canceling Putin's award, but also "regrettably" calling off this year's entire award ceremony. In a statement on its website, the organization said that it was "concerned by the massive criticism" and made the decision under "increasingly unbearable pressure."

By then, a number of members of the prize board had stepped down, and Danish-Icelandic artist Olafur Eliasson had returned his award. But what really seems to have tipped the scales is when former Czech President Vaclav Havel threatened to return his 2009 award if Putin received this year's honor. Other former award winners include political leaders such as Shimon Peres, Mikhail Gorbachev, and Hamid Karzai, plus a number of notable actors, authors, architects, activists, scientists and filmmakers.

Downplayed by the Government

Officials in Berlin have kept mostly mum on the issue, perhaps trying to avoid any controversy as German Chancellor Angela Merkel and other senior government officials meet with Russian President Dmitry Medvedev in Hanover and Wolfsburg on Monday and Tuesday for the annual Petersburg Dialogue talks on Russian-German relations.

Still, Merkel spokesman Steffen Seibert told journalists on Monday that the government did not view the prize cancellation as an affront, adding that Merkel would begin the German-Russian consultations "with confidence."

But Russia's ambassador to Germany, Vladimir Grinin, was displeased. While the situation was unlikely to overshadow the talks, it was still "highly disagreeable and rude," he told German public broadcaster ARD on Monday.

"I regret it very much," he added.

Marieluise Beck, an expert on Russian and Eastern European affairs for the Green Party's parliamentary group, said she was relieved Putin would not receive the prize.

"It's only regrettable that it ever got so far that the organization considered Putin prize-worthy at all," Beck told daily Berliner Zeitung, adding that it should have considered President Medvedev instead. "Medvedev is always saying that democracy and modernization belong together in Russia," she told the paper.

In Monday's newspapers, German commentators weigh in on the scandal:

The center-left Süddeutsche Zeitung writes:

"(The members of the board of the Quadriga Prize) stubbornly believe it was right to choose Putin for the award; they just couldn't bear the pressure anymore. … The small-minded people behind it blatantly disregarded all the warnings. They didn't care that the man they chose to honor has his political opponents locked up. It's all the same to them that Putin has perfected the police state. They also showed no sympathy for those whose rights … were trampled by their hero."

"The Petersburg Dialogue meetings are currently being held again, and -- as happens every year -- they are being advertised as a meeting of civil societies. The German side in this will mostly buy into the Russian definition of civil society, which holds that the state determines who is a part of civil society. Behind this definition is a way of thinking not unlike that held by the Quadriga (prize) organizers. According to this mind-set, whatever pleases those in power in Moscow is helpful for German-Russian relations."

"People who criticize this stance are dismissed as naïve. They are admonished that it isn't Germany's job to democratize Russia. That's correct. But it's even less its job to wrap an authoritarian system in a democratic mantle."

The center-right Frankfurter Allegemeine Zeitung writes:

"By selecting Putin, (the award's) curious board … did not show itself as being particularly sensitive to human rights issues. … The fact that some of its members have now stepped down and that (this year's) award ceremony has been cancelled altogether … is proof that they failed to see how this could turn into a massive embarrassment. Moscow speaks of 'chaos within the jury,' but one that will have no effect on Russian-German relations. The would-be role-model scouts would be well-advised to completely dissolve this self-important society."

The Financial Times Deutschland writes:

"In reality, such awards for politicians already known around the world are superfluous and should be done away with. There is no connection between the growing number of

such prizes and their actual meaning. The prizes only serve as self-gratification for the organizations behind them, a way to confirm their own sense of importance …"

"Above all, prizes should be used to highlight the merits of less-known individuals, as was the case with the latest winner of the Nobel Peace Prize, Chinese dissident Liu Xiaobo. With their decision, the (Nobel) committee … made far more of a difference that any Quadriga Prize … could, or would even want to, do."

Conservative daily Die Welt writes:

"Only a press release that blamed the media was released, while none of the board members … had the guts to speak openly about the Quadriga debacle. Under these circumstances, no one should grieve if the organization doesn't survive this conflict over Putin. A 'Werkstatt Deutschland' needs a face, ideally a number of interesting faces who don't hide themselves. Berlin doesn't need every prize -- and certainly not one so dilettantish and politically insensitive."

"Talks between the German and Russian governments begin in Hanover today. There, the topics will be economic ties, international conflicts and human rights. Even if Putin isn't there, Merkel still has some explaining to do."

The left-leaning Berliner Zeitung writes:

"Putin is not getting the Quadriga award. Of course, it's extremely embarrassing to first say 'Giddy up!' and then say 'Whoa, Nelly!' But it would have been a whole lot more embarrassing if Putin had received the little piece of gilded plastic on Oct. 3."

"All of those who are talking about scandal and offense should give a little thought to how insulting it would have been for Vaclav Havel or Mikhail Gorbachev to find themselves sharing the same honor with Putin. Despite all his missteps and mistakes, and even if he did so somewhat unwittingly, Gorbachev still opened the doors to Russia's democratization. Putin slammed these doors shut again, reverting to the political culture inherited from the Soviet Union and a feigned democracy. How deaf does one have to be to ignore this and to award this man a prize for democracy?"

-- Kristen Allen and Josh Ward

RT News line, July 19

Billionaire banker Lebedev to run in Popular Front’s primaries – paperhttp://rt.com/politics/news-line/2011-07-19/#id14633

11:33

The billionaire banker Aleksandr Lebedev, who owns the National Reserve Bank, is going to run in the primaries organized by United Russia’s Popular Front, Vedomosti daily writes. He is going to be one of the candidates bidding for a seat in the State Duma in the Kirov region, a region where he is well known. In May, Lebedev said he would retire from business and apply for membership in the Popular Front.

United Russia's Primaries http://www.themoscowtimes.com/opinion/article/united-russias-primaries/440745.html

19 July 2011By Nikolai Petrov

Russia’s primaries in the regions will start this week, with Prime Minister Vladimir Putin’s All-Russia People’s Front dominating the political landscape. The ruling party’s list of candidates for State Duma elections in December will be based on the results of this initial stage of voting. The list of candidates for the primaries was developed at the local level, but the front’s federal coordinating council, headed by Deputy Prime Minister Vyacheslav Volodin and his staff, will formulate the final lists.

It would be an exaggeration to call these actual primaries. The process more closely resembles a series of opinion polls, with United Russia using the results to create its party lists for elections to the Duma, where the front’s candidates should receive one-fourth of the seats.

In reality, there is no obligation at all to base the final candidate lists on the results of the primaries. The front’s regional coordinating council will give final approval to a special list of authorized individuals from United Russia and nongovernmental organizations who will participate in the primaries.

After the primaries end on Aug. 11, the results will be sent to Moscow for fine-tuning, with regional United Russia conferences then choosing delegates to the party’s national congress and submitting their proposals for the list of candidates. At that point, Putin will make his changes to the list before submitting it to a United Russia national congress on Sept. 3-4 for confirmation.

But it is already apparent that many United Russia politicians will be culled from the lists. As far back as early May, it was known that incumbent deputies would only make it onto the lists if they had not outworn their popularity by serving three or more terms in the Duma, if they had not been involved in any public scandals, or if they had contributed

to the advancement of the party in some way and had not simply used United Russia for personal gain.

Major personnel shifts have already taken place since the last elections, most notably among the corps of governors. The result is that a host of Duma deputies whose political fortunes were linked to former Mayor Yury Luzhkov and former Bashkortostan President Murtaza Rakhimov will also be absent from the upcoming elections. In Moscow, 10 of the 16 incumbent deputies will not participate in the primaries, and the same fate awaits about one-fourth of all incumbent United Russia deputies. Putin is determined to get rid of the party’s deadweight.

In the most troubled regions, United Russia is employing the tactic of heading party lists with deputy prime ministers or Putin-appointed ministers on whose coattails other candidates can ride and whose names elicit the least negative reaction among voters. At the same time, the number of regional leaders heading party lists in their own regions has dropped substantially.

Even in this Russian version of primaries in which Moscow remains the ultimate arbiter, it is possible to discern a certain growth of intra-party democracy and political competition. The problem is that however well these tactics might enable the ruling party to hold onto its Duma majority, they will not solve the problem of its declining legitimacy — an issue that will come to the fore after the new government is formed in 2012.

Nikolai Petrov is a scholar in residence at the Carnegie Moscow Center.

The subscriber you are trying to reach is publicly availablehttp://rt.com/politics/press/kommersant/available-sms-text-information/en/

Published: 19 July, 2011, 06:37Edited: 19 July, 2011, 06:43

MegaFon users’ SMS text messages were found on Yandex Aleksandr Malakhov, Anna Balashova

About 8,000 SMS text messages that had been sent from the MegaFon site became available to the public yesterday on the Yandex search engine. Russia’s Investigation Committee and the Federal Supervision Agency for Information Technologies and Communication (Roskomnadzor) are already making inquiries into the unprecedented

leakage of information. Lawyers predict the subscribers will file a class action lawsuit against the service provider. MegaFon says the reason for the incident was a technical glitch, but experts are not excluding the possibility that the flaw in the provider’s system could have existed almost since its launch. Due to a similar reason, the data of EMS recipients of Pochta Rossii (Russian Post) could have also surfaced on the Internet.

The fact that nearly 8,000 SMS text messages became available to the public yesterday was reported by Lenta.ru and Nomobile.ru at around 2:00pm. One could read the messages by using the search engine’s cache tool. In addition to the text, the recipients’ phone numbers were available without their personal information. The sender’s number was not indicated. 

By 3:00pm, Yandex had cleaned its cache. The SMS texts became inaccessible on the search engine’s website, but by that time copies of cached SMS were already available to the public.

MegaFon’s press secretary, Yulia Dorokhina, explains that “a technical glitch had occurred on the provider’s website, which was related to the external site administrator.” According to her, the glitch had affected a fairly small number of SMS that had been sent from the provider’s website but it had no effect on the clients’ SMS text messages that were sent by phone and other mobile devices. Yulia Dorokhina did not specify what the glitch actually was and who the administrator of MegaFon’s website is. 

Yandex’s spokesman, Ochir Mandzhikov, says that “the search engine indexes only the public portion of the Internet, the pages that are accessible when moving from one link to another without logging in.” Meanwhile, Yandex does not index pages, indexation of which is prohibited by the site’s administrator in the robots.txt file, even if they are in the open portion of the Internet. “For some reason, at the time of indexation when the SMS were sent form MegaFon’s website, the robots.txt file was missing,” explained Mandzhikov.  

By 5:00pm it became known that the head of Russia’s Investigation Committee, Aleksandr Bastrykin, had issued an order to investigate the incident. Based on the results, a criminal case may be filed.  Roskomnadzor, in turn, sent a request to the service provider, asking for an explanation as to how SMS correspondence had become available to the public. Roskomnadzor’s spokesman, Mikhail Vorobyev, told Interfax that, according to the supervisory agency, the incident could have signs of violation of the Law on Communication and the Law on Personal Information. However, the subscribers’ personal information (such as passport data, last names) was not made public, though some SMS reviewed by Kommersant did indicate people’s passport data.   

A class action lawsuit may be filed against MegaFon, the Consumers’ Union of Russia announced yesterday. The head of the International Confederation of Consumer Societies (which includes the Consumers’ Union of the RF), Dmitry Yanin, is confident that if a lawsuit is filed and won, then consumers who turn to the court will not need to prove the

provider’s guilt, they will simply have to decide on the amount of compensation. “For every person who is able to prove the existence liability, the court will establish a sum on an individual basis,” argues Dmitry Yanin.      

Attorney Pavel Lambrov believes that under Article 138 of the Criminal Code of Russia (“Violation of secrecy of correspondence, mail, telegraph, or any other messages”), filing a criminal case will be difficult, because “in this case, there was no intent.” “Most likely we are talking about the simple negligence of ordinary employees who might have disciplinary responsibility for the incident and not much else,” says Lambrov. According to him, victims could seek compensation from MegaFon through the court, but they will need to prove pain and suffering.  

“If I have to travel anywhere then, of course, I won’t file any claims, because I have an infant. But if I simply need to sign something, I will,” one of the victims told Kommersant. Another subscriber, who had received an SMS notification of being denied for a loan, said that he does not plan going to court, because he “does not want to waste time”. 

Blogger Anton Nosik believes that a flaw in MegaFon’s system has existed for a long time, but was only recently discovered. “The idea is that when you send a completed form, a webpage is generated with the entered data. But it is not saved anywhere, it ceases to exist, but can leave traces in the cache,” explains Nosik. He was surprised by the fact that the website’s administrators did not check what data their website provides to the search engine. “But I would like to stress that these types of problems will continue to reappear. Today a similar flaw was found on prm.ru, a website for sending SMS text messages. Moreover, Pochta Rossii’s express mail service EMS is, for some reason, providing Yandex with information about parcels and indicating the recipients’ last names and addresses,” says Anton Nosik. Pochta Rossii’s EMS press service announced yesterday that the company “is making the maximum effort to resolve the current situation. The causes will be identified and eliminated in the immediate future.”

Vimpelcom’s press secretary, Anna Aibasheva, argues that the service provider’s subscribers are protected from similar situations, because the SMS text messages that they send through the site are not published on the webpage with a direct link after they are sent. “When sending messages through the MTS website, all information is immediately transferred to the SMS-center, and not stored on the service provider’s site. It is impossible for a third party to read the message after it is sent,” says MTS spokesperson, Valeria Kuzmenko. 

Anton Pogribensky, an analyst with ACM-Consulting, believes it is unlikely clients will be lost or that MegaFon will suffer any other business losses due to the “leakage” of SMS text messages. Service providers, including mobile firms, have had much wider scale cases of information leakage, when information about subscribers, including their phone numbers and registration data, were sold on the market. Cellphone users’ personal information has been openly sold a number of times, in particular, at specialized markets. Specifically, in 2002, a disc containing MTS service subscribers’ personal data appeared

at a on Moscow market. A year later, the same thing happened to MegaFon’s database in St. Petersburg, and in 2004, to Vimpelcom (in both cities). “Telecom companies suffer grave losses due to serious interruptions in network operations,” says Pogrebinsky. Subscribers’ personal information has been openly sold many times, particularly at specialized markets.”

How may I e-serve you?http://rt.com/politics/press/rossijskaya-gazeta/interior-ministry-electronic-revolution/en/

Published: 19 July, 2011, 06:31Edited: 19 July, 2011, 06:33

The Interior Ministry suggests the idea of accepting applications in electronic format Mikhail Falaleyev

Russia’s Interior Ministry is ready to conduct a real technological revolution. In fact, this revolution has already begun with the creation of the Department of Information Technology, Communication and Information Protection.

By the following year, says head of the department Mikhail Tyurkin, Russia’s Interior Ministry will be able to provide 48 types of services in  electronic format.

This mainly applies to the mass number of notification and registration actions, which not a single bureaucratic procedure can do without. And the Ministry of Interior plans to simplify these actions and procedures considerably.  

For example, already today the ministry offers several types of online services, enabling people to apply for a technical inspection, take qualifying exams and receive a driver’s license, report and register an incident, and receive a notice about a violation of traffic regulations.  

Due to the ministry’s switch to an inter-departmental electronic system of interaction, citizens will not need to collect numerous documents from various levels of jurisdiction. In essence, the creation of this department is the ministry’s big step toward the needs of the people, and not the protection of some abstract government interests. 

Naturally, police operations will be significantly expedited and simplified. Today the Interior Ministry is creating a unified system of information exchange between staff members. All subscribers are connected to the same network in order to obtain the necessary information, input the information into data bases, and use it.  

The police structure includes more than 5,000 sub-units. Moreover, it is necessary to establish intercommunication with other structures, including federal agencies, with which rapid exchange of information is imperative. According to Mikhail Tyurkin, all of these often isolated electronic systems will need to be united. In other words, the creation of a single telecommunications system between the departments of the Interior Ministry, the Internal Troops, and perhaps the Federal Migration Service remains to be completed.     

This will simplify the work of any staff member of the Interior Ministry’s departments, whether a local police officer or a field investigator. This is also important due to the fact that the number of personnel is currently being reduced. Meanwhile, only technology can replace a worker. The Ministry of Interior representatives promise that the “technological revolution” will be felt not only from the simplification of the bureaucratic schemes, but also from the level of personal safety.

The new department is responsible for further development of such automated systems as "Bezopasny Gorod" (Safe City). It is a system of video surveillance, communication, information sharing, and management of the police patrol cars with the help of the GLONASS satellite systems. Moreover, introduction of electronic fingerprint systems, genome registration of citizens, and electronic data storage will be developed.

One of the department’s main goals is the protection of all of this information from outside interference, and especially criminal “curiosity”. Hopefully, the police will also be able to stop the illegal trade of various databases at markets, such as at the Gorbushka shopping center in the capital and on the Internet.

Mikhail Tyurkin expects the final version of the system to become available before the end of 2014.  Incidentally, it was under Mikhail Tyurkin’s leadership that the Federal Migration Service was fully computerized, the technological base was improved, the Internet portal was reconstructed, and an effective inter-departmental information exchange was established. He also managed the development of the new biometric passports with electronic media.

National Economic Trends

Russian domestic sovereign bonds (OFZ) stronger before auctionhttp://www.bne.eu/dispatch_text16172

VTB CapitalJuly 19, 2011

Trading flow was fairly thin yesterday in the OFZ market. The price action was concentrated on the longer end and the belly of the curve. Hence, we noted a persisting bid for the duration as OFZ-26204 (YTM 7.64%) and OFZ-26203 (YTM 7.20%) closed firmer, while 3-year OFZ-25068 (YTM 6.28%) lost near 10-20bp in price at the end of the session.

Will Minfin help stronger ruble in 3Q?http://www.bne.eu/dispatch_text16172

CitiJuly 18, 2011

The fiscal balance is likely to remain in surplus over the next few months, and banking sector liquidity will decrease in 3Q, in our view. We expect the fiscal surplus to stay at around RUB250bn in July-September. In addition, the Ministry of Finance (Minfin) plans to borrow about net RUB260bn in 3Q and get about RUB250bn from deposits maturing in July-September. We assume the rollover ratio on Minfin deposits will be slightly above 100% in 3Q. However, the net effect of fiscal operations on banking sector liquidity is likely to still be negative - withdrawal of about RUB700-850bn in 3Q compared to banks' OBR holdings and deposits in CBR of RUB680bn and current accounts of RUB660bn as of 15 July. The bailout of the Bank of Moscow, which may cost RUB295bn, received in the form of rescue loan to buy OFZ bonds, according to the Finance Minister Alexei Kudrin (RIA Novosti, 12 July 2011), probably will have a limited effect on the short-run liquidity levels, provided there is a special OFZ issue in addition to the current annual debt limit and the money is not spent immediately.

Meanwhile, the CBR has absorbed about RUB300bn due to higher required reserves and the level of excess liquidity fell significantly compared to 2010. Required reserves grew by RUB140bn and the average monthly level of correspondent accounts grew by about the same amount in 1H 11 as CBR increased required reserve ratios by 1.5-3 pp depending on the liability type. At the same time a liquidity injection through CBR FX decreased, and the level of excess banking liquidity fell 2 times to around RUB600bn in July 2011 from about RUB1.3tr on average in 3Q 2010.

As a result, we think the ruble will be under mild appreciating pressure in the near term. We look for a slight strengthening of the basket in the short run. However, the currency should come under pressure later this year due to falling current account surpluses, higher budget spending and potential capital outflows, although the ruble's downside should be limited by central bank intervention, especially as we get closer to the elections. A further sharp fall in oil prices and private capital flight in view of the forthcoming elections represent downside risks to the RUB in our forecasts.

Russian Farmers Harvested 14.6 Million Metric Tons of Grainshttp://www.bloomberg.com/news/2011-07-18/russian-farmers-harvested-14-6-million-metric-tons-of-grains-1-.html

QBy Marina Sysoyeva - Jul 18, 2011 3:26 PM GMT+0200

Russian farmers harvested 14.6 million metric tons of grain as of today, the country’s Agriculture Ministry said.

More than 3.9 million hectares (9.6 million acres) were harvested, the ministry said in a statement on its website today. It didn’t provide a year-earlier comparison.

The wheat crop reached 8.4 million tons, with yields averaging 3.71 tons a hectare, the ministry said. The barley harvest was 1.7 million tons, at 4.01 tons a hectare, according to the statement. The numbers are in so-called bunker weight, measured before the grain is dried and cleaned.

As of July 20 last year, 7.5 million hectares of grain plantings were reaped and 21 million tons of grain had been harvested. The yield averaged 2.81 tons a hectare last year, according to the ministry.

The ministry targeted a 2011 grain harvest of 85 million tons. The crop may reach 90 million tons this year, First Deputy Prime Minister Viktor Zubkov said last week.

To contact the reporter on this story: Marina Sysoyeva in Moscow at msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Business, Energy or Environmental regulations or discussions

CIS steel market besieged with fear of European debt crisishttp://www.steelguru.com/russian_news/CIS_steel_market_besieged_with_fear_of_European_debt_crisis/215253.html

Tuesday, 19 Jul 2011European debt crisis is radiating panic amongst all its trading partners. The Ukrainian and Russian steel market are stupefied with the looming impact of the crisis which refuses to fitter away. Proximity of these markets makes them quintessentially vulnerable to the economic turbulence.

It has been a breath taking summer for Russian domestic market where the demand for steel has been relatively lackluster. Moreover with the domestic mills not able churn out adequate volumes evident in the production figures of the steel majors, Evraz Holding and MMK. The crude steel production in Russia and Ukraine slumped by 5 % and 12% respectively in Q2 from Q1.

The consumption pattern has been fluctuating from basic to value added products depending on the demand from respective segments.

Construction sector has witnessed some activity with a growth of 5-10% in housing and reality sector. The growth in luxury segment has outclassed the budget housing. In PPGI market there has been a distinct slump in demand for roof profiles and fencing but for indoor panel and windows has been relatively stable. However buying is expected to rear in July and August. The market has gone in huddle with the European debt crisis looming overhead. Buyers are reticent for the time being restricting to skeletal buying lest they land up over committing. This has in turn led to conservationist approach in transactions.

Concurrently the demand of basic products viz., HR and CR is healthy with the key segments like automobile and white good evincing growth. More European brands opting for indigenization in automobile manufacturing there has been spike in consumption of flat products. The automobile sale has grown by nearly 1.5% in June y o y. Likewise the white good production moving on the same lines demand has been equally succulent.

Modernization and expansion of public utility services viz., water and gas supply has been the priority for the government leading to generation of demand for pipes.

The domestic mills are claiming to be booked till August and not evincing much interest in scampering for export orders at the cost of domestic demand and price reduction. At the same time state policies favoring assuaging of domestic demand over exports by deploying tax rebates has made the inland business lucrative.

With the EU making fervent attempts to dispel the clouds of economic crisis and the market in Europe and Middle East slated to open after a month post Ramadan and Summer Holidays end of Q3 is expectant about revival which might be short lived.

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Rosneft, TNK-BP and Polymetal: Russian Equities Previewhttp://www.bloomberg.com/news/2011-07-18/rosneft-tnk-bp-and-polymetal-russian-equities-preview.html

QBy Stephen Bierman - Jul 18, 2011 10:00 PM GMT+0200

The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading.

The 30-stock Micex Index fell 1.6 percent to 1,687.63. The dollar-denominated RTS Index dropped 1.8 percent to 1,904.29.

OAO Rosneft (ROSN RX): Oil futures dropped as much as 2.3 percent on speculation that European leaders won’t agree on a way to contain the region’s debt crisis at a summit this week. Russia’s largest oil producer fell 2.2 percent to 228.99 rubles. Russia’s second-largest oil producer OAO Lukoil (LKOH RX) fell 1.6 percent to 1,812.20 rubles.

TNK-BP (TNBP RU): BP’s Russian venture with a group of billionaires agreed to buy into a Brazilian oil venture. Operator HRT Participacoes em Petroleo SA said it expects to increase reserves at the fields it plans to develop with TNK-BP. The Moscow-based company fell 4.9 percent to $3.09 on the RTS.

OAO Polymetal (PMTL RX): Gold rose to a record $1,607.90 an ounce heading for its longest rally in 31 years on debt concerns in the U.S. and Europe. The Russian silver and gold producer rose 5.1 percent to 596.30 rubles in Moscow.

To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.

New amendments may introduce ban on leasing agreements with non-Russian companieshttp://www.bne.eu/dispatch_text16172

Alfa BankJuly 19, 2011

New amendments to the law on financial leasing drafted by Duma deputies Yuri Kogan and Yuri Napso may ban leasing agreements with international leasing companies for buying foreign airplanes, according to Kommersant. This is seen as a measure to support Russian leasing companies.

The potential impact could be an increase in interest rates on leasing available for Russian airlines, as international leasing companies generally serve in the interest of airplane producers, promoting their products. Around 80% of all new leasing agreements are reportedly made with international companies. However, the interest rate will be 90% subsidized by the government, according to the article, so the efficient interest rate is likely to remain low, with the entire burden going to the state budget and not to airlines.

The main concern relates to the capacity of Russian leasing companies to provide enough money to fund all the purchases, which amounted to $4bn last year, and receive the same preferential terms from producers. Nevertheless, we view the news as NEUTRAL, as the amendments will likely be revised.

Iouli Matevossov

EuroSibEnergo Seeks MRSK Siberian Unit, Vedomosti Reportshttp://www.bloomberg.com/news/2011-07-19/eurosibenergo-seeks-mrsk-siberian-unit-vedomosti-reports.html

QBy Lyubov Pronina - Jul 19, 2011 6:19 AM GMT+0200

EuroSibEnergo, the Russian utility controlled by billionaire Oleg Deripaska, wants to buy a Siberian unit of OAO MRSK Holding, Vedomosti reported today.

EuroSibEnergo Chief Executive Officer Yevgeny Fyodorov wrote a letter with the purchase proposal to Nikolai Shvets, chief executive officer of MRSK Holding, which manages Russia’s interregional power distributors, the Moscow-based newspaper reported, citing the letter.

To contact the reporter on this story: Lyubov Pronina in Moscow at lpronina@bloomberg.net

To contact the editor responsible for this story: Brad Cook at bcook7@bloomberg.net

Eurosibenergo offered to buy MRSK Siberia

http://www.bne.eu/dispatch_text16172

MetropolJuly 19, 2011

According to press reports, Eurosibenergo CEO Yevgeny Fedorov has made an offer to MRSK Holding CEO Nikolai Shvec to buy MRSK Siberia, in which MRSK Holding has a controlling stake. Irkutsk Grid Company, a Eurosibenergo subsidiary, may be the buyer.

Previously Shvec and Lev Kuznetsov, governor of the Krasnoyarsk region, had asked Deripaska to encourage Rusal's Krasnoyarsk aluminum smelter to sign a contract for electricity distribution with MRSK Siberia. Krasnoyarsk later terminated the contract with MRSK Siberia and switched to Federal Grid Company in order to cut costs. As a result, MRSK Siberia lost about RUB 8.1bn in revenue over 2010-2011. MRSK Siberia is unable to recoup the losses from other customers in the region given that the Russian government is capping electricity tariffs.

If MRSK Siberia is bought by Eurosibenergo, it could be positive for the company as Eurosibenergo sees an opportunity to significantly improve operating and financial efficiency. However, we do not expect the deal to be finalized quickly. A possible near-term solution could be to transfer management of MRSK Siberia to Eurosibenergo, with the company granted an option to buy MRSK Holding's stake after achieving specified KPIs. We expect a short-term positive reaction to the news, but more sustained impact on MRSK Siberia's stock price is likely only after additional information on the deal is forthcoming.

Konstantin Reyli

VTB Capital buys into En+ Group

http://www.rbcnews.com/free/20110719113608.shtml

      RBC, 19.07.2011, Moscow 11:36:08.VTB Capital has purchased a 4.35% interest in energy, metals and mining group En+ Group from Russian diversified investment company Basic Element for $500m, the companies said in a joint statement today.

      Basic Element's equity position in En+ Group fell from 25% to 20.65% after this transaction.

Russia's Credit Bank of Moscow mulls Eurobond-sourcehttp://in.reuters.com/article/2011/07/19/russia-cbm-eurobond-idINLDE76H17H20110719

12:03pm IST

MOSCOW, July 19 (Reuters) - Russian mid-sized lender Credit Bank of Moscow has mandated Raiffeisen Bank International to arrange a series of meetings ahead of a possible Eurobond issue, a banking source told Reuters.

Privately-owned Credit Bank of Moscow, ranked among Russia's top-30 lenders by assets, plans to start meetings in Europe on Wednesday, the source said.

Russian borrowers have raised more than $19 billion via Eurobond issues since the start of the year, more than half the amount raised in 2010 as a whole.

Last week, Russia's largest iron ore and steel producer Metalloinvest raised $750 million via a five-year Eurobond but Russia state development bank VEB and steel company Severstal (CHMFq.L: Quote, Profile, Research) have postponed issues because of poor market conditions. (Reporting by Katya Golubkova. Editing by Douglas Busvine and Jane Merriman)

Irkutskenergo to sink $53m into innovations in 2011

http://www.rbcnews.com/free/20110719105737.shtml

      RBC, 19.07.2011, Irkutsk 10:57:37.Irkutskenergo expects to spend RUB 1.5bn (approx. USD 53m) on its innovative development program in 2011, the electric power company said in a statement today.

      The statement came after a meeting of the board of directors that approved an innovative development and upgrade program until 2017. The program provides for enhancing the energy efficiency and environmental friendliness of the company's generating facilities, adoption of cutting-edge technologies, cooperation with scientific organizations and higher education establishments. Irkutskenergo intends to build a lead-bismuth fast-neutron reactor and commercialize this technology.

Watchdog slams Seventh Continent grocer as 'unreliable' over food safetyhttp://en.rian.ru/business/20110719/165278384.html

11:45 19/07/2011

MOSCOW, July 19 (RIA Novosti)

Russia's consumer rights watchdog Rospotrebnadzor criticized Russian grocery chain Seventh Continent on Tuesday for failure to eliminate food hygiene violations.

"Seventh Continent is not taking effective measures to remedy the situation, even though the violations that have been exposed are obvious, which gives grounds for presuming that this trade chain is unreliable," Rospotrebnadzor said in a statement.

Rospotrebnadzor received 184 complaints from customers about breaches of sanitary rules and consumer rights in Seventh Continent stores in Moscow in 2010. Unscheduled checks held by the watchdog confirmed that the customers' complaints were legitimate. Inspections held early this year exposed similar violations, the watchdog said.

"In each instance, Rospotrebnadzor exposed breaches related to the sale of food products failing to comply with the obligatory requirements of quality and safety, misinformation of customers about the price and the weight of these products, and also violation of the rules on selling particular types of goods," the watchdog added.

Seventh Continent told RIA Novosti it was complying with the watchdog’s instructions.

"The statement does not specify the violations which the company has failed to eliminate and therefore we are not ready to answer promptly. The company is complying with the regulations and as soon as we receive additional information from the watchdog, we'll additionally check our stores for compliance," Seventh Continent said in a statement.

Activity in the Oil and Gas sector (including regulatory)

Nord Stream gains Danish assenthttp://www.offshore-mag.com/index/article-display/1354114724/articles/offshore/pipeline-transportation/russia/2011/july/nord-stream_gains.html

Published: Jul 18, 2011

Offshore staff

ZUG, Switzerland – The Danish Energy Agency (DEA) has given the Nord Stream group permission to operate the first of twin pipelines in the Baltic Sea that will transport gas from Russia to mainland Europe.

Nord Stream has met and fulfilled all requirements and commitments outlined in the construction permit. It has also initiated a comprehensive environmental monitoring program, designed to ensure that the pipeline has no impact on the Baltic Sea ecosystem.

DEA states that Nord Stream is responsible for emergency response planning and communicating with the responsible authorities. It must also maintain an organization with sufficient resources and competencies to secure the safe operation of the pipeline, and continuously submit reports on the status of operations.

Each of the two pipelines is constructed in three sections. Prior to underwater welding, these sections were gauged and pressure-tested. Each was pressurized to demonstrate that it could withstand its full operating pressure.

Delivery of gas through Line 1 will start during the fall.

07/18/2011

Rosneft greenlights petroleum product reserves deal

http://www.rbcnews.com/free/20110719112210.shtml

      RBC, 19.07.2011, Moscow 11:22:10.The board of directors of state-controlled oil major Rosneft has approved a transaction with its major shareholder state-owned Rosneftegaz to form petroleum product reserves, Rosneft said in a statement today.

      Rosneft's board also approved a transaction with Rosneftegaz whereby Rosneft will arrange storage of the petroleum products supplied for the reserves.

      The reserves will be formed following an instruction issued by Prime Minister Vladimir Putin for the Energy Ministry to elaborate this proposal. Rosneftegaz will be purchasing petroleum products for the reserves from oil companies at market prices using in-house or borrowed funds, Energy Minister Sergey Shmatko explained earlier.

Shell, Rosneft Talk on Arctic, Not Share Swap, Kommersant Sayshttp://www.bloomberg.com/news/2011-07-19/shell-rosneft-talk-on-arctic-not-share-swap-kommersant-says.html

QBy Lyubov Pronina - Jul 19, 2011 6:14 AM GMT+0200

Royal Dutch Shell Plc (RDSA) is in talks with OAO Rosneft to pursue joint projects, including some in the Arctic, Kommersant reported today, citing company Chief Executive Officer Peter Voser.

The two companies can cooperate in projects on the Russian territory and beyond, Voser said in an interview with the Moscow-based newspaper. He said there is no talk of a share swap between the two companies, Kommersant reported.

To contact the reporter on this story: Lyubov Pronina in Moscow at lpronina@bloomberg.net

To contact the editor responsible for this story: Brad Cook at bcook7@bloomberg.net

New oil field discovered in Yamal Nenets Autonomous Districthttp://www.steelguru.com/russian_news/New_oil_field_discovered_in_Yamal_Nenets_Autonomous_District/215264.html

Tuesday, 19 Jul 2011Interfax reported that A new oil field has been discovered following geological exploration in 2011 in the Nadymsky district of the Yamal-Nenets Autonomous District.

The Lutseyakhskoye field was discovered through testing on Achimovsky layers in the Severo Karasevskoye licensed section. Tests yield a daily oil flow of 2.88 cubic meters.

The district department for natural resource regulation, forestry and oil/gas development told Interfax that the new field will be placed on the subsoil balance this year. LLC NGP Severo-Karasevskoye owns the license for the same named section. If the company formalizes a certification for the Lutseyakhskoye field discovery and it might be licensed for its development.

The governor office also said that exploration operations and drilling went up by 3%YoY to 66,893 linear meters of rock in January to May 2011.

Geological exploration was implemented by 31 enterprises in 71 licensed sections in Yamal-Nenets

(Sourced from Interfax)

Total Could Open Stations http://www.themoscowtimes.com/business/article/total-could-open-stations/440760.html

19 July 2011

France's Total is looking into opening several filling stations in Moscow under its own brand, Total exploration and production head Yves-Louis Darricarrere told Les Echos on Monday.

Sources in the company told the publication that this might concern "three stations, at the most."

BP and Shell already have filling station chains in Moscow. In addition, Agip operates one station in Moscow. Shell expanded its chain in Moscow from six to 10 outlets in May and June.

(Interfax)

Gazprom

Gazprom declines private involvement in $40 bln gas deal http://www.todayszaman.com/news-250880-gazprom-declines-private-involvement-in-40-bln-gas-deal.html

18 July 2011, Monday / İSMAİL ALTUNSOY , ANKARARussia’s state-owned energy giant Gazprom has turned down involvement by Turkish private companies in a $40 billion gas deal, Turkish Pipeline Corporation (BOTAŞ) officials told Today’s Zaman.  

According to the officials, who wish to remain anonymous because they are not authorized to speak to the media, Gazprom had said the South Stream gas purchase deal is an intergovernmental agreement and cannot be expanded to include private buyers. BOTAŞ had previously announced that 6 billion of the 16 billion cubic meters of Russian gas mentioned in the agreement would be transferred to private Turkish companies, but said the willing firms needed to first receive what is known as the Seller’s Consent Protocol (SCP) from Gazprom. Believing that Gazprom would not obstruct private purchases of its gas, BOTAŞ had also announced that it would hold a tender for the contract transfer. That tender, however, no longer seems likely, BOTAŞ officials said,

since it is now understood that Gazprom will not give Turkish companies an SCP for such a purchase.

If Gazprom had not ruled out private involvement of Turkey, Turkey would have spent $40 billion less on gas imports up until 2026, when the agreement would have expired. The South Stream agreement oversees the purchase of 16 billion cubic meters of Russian gas by BOTAŞ. Today’s Zaman sources said the reason for Gazprom’s decision was not the nature of the agreement, but the uncertainty the Russian company has about getting paid on time for the amount of gas private companies in Turkey would have bought.

Gazprom vows to work safer offshorehttp://www.upi.com/Business_News/Energy-Resources/2011/07/18/Gazprom-vows-to-work-safer-offshore/UPI-97161310994732/?spt=hs&or=er

Published: July 18, 2011 at 9:12 AM

MOSCOW, July 18 (UPI) -- Russian energy company Gazprom said environmental safety assurances were a requirement for all of its contractors working offshore.

Gazprom Deputy Chairman Alexander Ananenkov was the host for a meeting in Moscow for a committee tasked with examining environmental protection and energy efficiency.

"The meeting paid special attention to environmentally friendly technologies of drilling wastes disposal and recycling," Gazprom said in a statement. "Specialized structural units were tasked to continue streamlining of said technologies."

Gazprom noted that all of its contractors working in offshore oil and natural gas deposits were required to meet production and environmental safety rules.

The Russian energy companies notes that it is exploring offshore resources in India, Vietnam, Libya, Algeria and Venezuela.

Gazprom Neft, the oil arm of the company, said it was determined to produce as much as 100 million tons of oil per year by 2020.

Read more: http://www.upi.com/Business_News/Energy-Resources/2011/07/18/Gazprom-vows-to-work-safer-offshore/UPI-97161310994732/#ixzz1SWl8sudk

Moldova, Gazprom hammer out 5-year gas transit contract

http://www.rbcnews.com/free/20110719105349.shtml

      RBC, 19.07.2011, Moscow 10:53:49.Russian natural gas giant Gazprom has agreed to sign before the end of this year a 5-year gas transit contract with Moldova, Russian-Moldovan joint venture Moldovagaz said late Monday.

      This agreement was reached at a meeting between a Moldovan delegation led by Deputy Economy Minister Illarion Popa and Gazprom Deputy CEO Alexander Medvedev. They agreed to make the new gas transit contract coincide with the new gas supply contract for 2012-2016. The parties will continue negotiations on the terms of gas transit.

      The tariff for Russian gas transit via Moldova was increased to $3.00 per 1,000 cubic meters per 100 kilometers on January 1, 2011, up from $2.50, which has been in effect for 14 years. Moldova insists on further tariff hikes, arguing that the current payment does not cover its transit costs.