Russia

Russia 091111Basic Political Developments

Reuters: PRESS DIGEST - Russia - Nov 11

RIA: APEC foreign ministers start discussions in Singapore

Reuters: APEC pledges to phase out fuel subsidies draft

Prime-Tass: Nov 12: Russian President Dmitry Medvedev to make annual address to parliament

The Moscow Times: EBRD Cautions on Modernization Plan

Alibaba.com: EBRD head urges Russia to increase WTO efforts

Prime-Tass: INTERVIEW: Russian economy may recover from crisis in 34 years - Interview with European Bank for Reconstruction and Development President Thomas Mirow

Reuters: Medvedev backs reform of Russian state companies

The Moscow Times: Investigators Slam State Corporations

The Moscow Times: Cutting-Edge Incompetence

RIA: U.S. delays nuclear summit until May - Speaking at the George Washington University, Under Secretary of State for Arms Control and International Security Ellen Tauscher said the summit was delayed due to Easter holidays.

Russia Today: Hillary Clinton impressed with Medvedev

Itar-Tass: Russia FAS coop agts with US govt bodies important step official

Bloomberg: Putin to Discuss Renault Role in AvtoVAZ During Trip to Paris

Prime-Tass: Nov 14: Russian Prime Minister Vladimir Putin to meet Slovenian Prime Minister Borut Pahor in Russia

RIA: Putin to discuss Europe's energy security with Austrian chancellor

RIA: Russian emergencies minister arrives in Havana - Russia's emergencies minister, Sergei Shoigu, arrived in the Cuban capital Havana late on Tuesday to discuss cooperation with his Cuban colleagues. The Russian delegation will fly to Venezuela from Cuba on Friday.

Itar-Tass: Nicaragua, Russia sign agt on coop against natural calamities

Thaindian News: Russia supports Indias proposal on terrorism, offers access to Glonass Satellite for civilian use

Businessneweurope: Russia earmarks less than the $9bn needed to build Belarus' nuke power plant

Barentsobserver: Nuclear lighthouse projects moves from Barents to Baltic

Cambodia: Russia refuses to cancel debt

Bloomberg: Russia Warns of Gas Crisis as Ukraine Faces Financial Turmoil - There will be a great danger of another crisis should Ukraine miss a single monthly payment to energy producer OAO Gazprom, Dmitry Peskov, the spokesman for Prime Minister Vladimir Putin, told reporters late yesterday.

BSANNA News: Ukraine, Russia to moot oil transit increase

MIGnews.com.ua: Ukraine and Russia have begun new gas talks

News.az: CIS ministers approve defence cooperation concept - The defence ministers of the Commonwealth of Independent States have approved a defence cooperation concept until 2015 and an action plan until 2010 at their meeting in Dushanbe.

24.kg: CIS Defense Ministers endorse military cooperation concept until 2015

Aysor.am: Security in Caucasus to be discussed in Geneva

RIA: Russia, S.Ossetia to report in Geneva on possible Georgian attack

AFP: Detentions set to dominate Russia, Georgia talks

The Jamestown Foundation: Moscow Offers Helicopter Cooperation to ISAF

Tactical Report: Kuwait: Interest in KA-28 anti-submarine helicopter

Itar-Tass: US Court issues charges in absentia to hackers from Estonia, Moldova, Russia.

RIA: Hackers from ex-Soviet states charged in U.S. card fraud case

BBC: Russia admits police corruption - The Russian government has admitted that parts of the police have been turned into what the interior minister has described as criminal businesses.

RIA: Engine failure could be responsible for Tu-142 crash

Barentsobserver: Anti-submarine planes grounded

The Moscow Times: Airline Unhappy With Tupolevs - Moscow-based airline Red Wings, a major operator of Tupolevs Tu-204 jets, grumbled Tuesday about the low quality of the planes and the losses that it incurred because of several emergency landings this year.

RIA: Two police officers, civilian injured in S.Russia militant attack

Incident involving one of Yamadayevs brothers was not simple road accident - relative of former GRU battalion member

RIA: Russian woman files $1.5-million suit over son's death in Chechnya

The Jamestown Foundation: Rights Activists; Chechen Authorities Passing Off Slain Young People as Rebels

Reuters: Ingush leader sees no quick victory over rebels

NY Times blog: News of Hockey, 11/10/09: A K.H.L. Town Worse Off Than Detroit - But after the auto companys sales dropped, thousands were laid off. Things have gotten so bad in Togliatti that last month there was a proposal that AvtoVaz workers turn to manufacturing toys.

The Moscow Times: Sverdlovsk Governor Dismissed

Reuters: Russia's Medvedev replaces Yeltsin-era governor

Itar-Tass: Russia's Duma to prolong validity of frgn travel passports to 10 yrs

The Christian Science Monitor: Is Russia playing both sides on Iran nukes?

ISRIA: Russia - MFA - Speech by Russian Deputy Minister of Foreign Affairs/State Secretary Grigory Karasin at the European Russian Forum (ERF), Brussels, European Parliament, November 9, 2009

Kyiv Post: Russian public health official: No dangerous mutations of A(H1N1) virus recorded

RIA: Two new swine flu deaths confirmed in Russia

RFERL: Workers Fined In Russian Far East For Not Wearing Masks

Russia Profile: Masked Danger - People in facemasks are now a pedestrian sight in Moscow, but is the Russian government doing all it can to minimize the damage the new virus can do?

Georgian Daily: Tensions between Russia and Ukraine Reflect Different Attitudes to History, State and Individual

Pravda.ru: Ukraine Made Terrible Mistake When It Decided to Ruin Relations with Russia

Guardian.co.uk: Russia gets misty-eyed about Stalin

Poll: Russians happy, but not as happy as last year

National Economic Trends

Itar-Tass: Russia's Duma slashing fed budget expenditure for 2010 by 148 bln rbls

The Moscow Times: World Bank Wants Diversification

The Moscow Times: Central Bank Focusing on the Wrong Rate by Martin Gilman

FT.com: Russia aims to cool rouble passion - By Peter Garnham

Business, Energy or Environmental regulations or discussions

Bloomberg: Gazprom, Severstal, Rosneft, Polyus Gold: Russia Stocks Preview

Bloomberg: Russia, Poland Credit Growth May Drive Equity Returns, ING Says

Reuters: Russia sees '09 ferrous metal output down 7 pct-Ifax

Steel Guru: ESTAR files for bankruptcy at Moscow arbitration court

Construction Portal for Russia: Cement plant to appear in Dagestan Republic

Bloomberg: Usmanov in Negotiations to Swap Megafon Stake, Vedomosti Says

Reuters: Usmanov may swap 31.1 pct in Megafon for Rostelecom stake

Reuters: UPDATE 1-Russia Sberbank likely to pay 2009 dividend-CEO

VTB Capital: Vedomosti runs interview with Sberbank Capital CEO

Drinks Business Review: Coca-Cola HBC Eurasia To Set Up New Soft Drinks Plant In Russia

Itar-Tass: Investments in Russias car industry may reach EUR 40 bln in next 10 years

Reuters: UPDATE 3-Russia invites Renault to up stake in AvtoVAZ

Bloomberg: Magnit Upgraded to Buy at Citigroup on Outlook for New Stores

Interfax: Magnit boosts revenue 30% in 10 mths to 136.11 bln rubles (Part 2)

Reuters: Russia's Profmedia offers buy out Rambler minorities

Activity in the Oil and Gas sector (including regulatory)

Prime-Tass: Russias oil export duty may rise to $271273/tonne from Dec 1

The Moscow Times: Putin Says Oil Firms Face Heavy Fines

Steel Guru: 3 countries interested in Nord Stream - Mr Urmas Paet

RenCap: Rosneft wins licence to develop Labagansky block in Nenets Autonomous Region

Reuters: Fridman says to step down as TNK-BP acting CEO soon

Rigzone: TNK-BP Accelerates Development of Uvat Project RBC: Lukoil's board of directors to mull development program

Steel Guru: Lukoil to expand Asia oil products trade in H1 of 2010

Barentsnova.com: Exploration of the Arctic Shelf Is a Global Task - Recently St. Petersburg hosted the9th International Conference andExhibition focused ondeveloping Russias Arctic projects andthe shelf ofRussia andCIS RAOCIS Offshore 2009.

Gazprom

RenCap: Gazprom calls for quicker consolidation of oblgazes - RBC Daily reported today (11 Nov) that Gazprom CEO Alexei Miller sent a letter to Russian President Dmitry Medvedev calling for a speeding up of the asset swap deal involving regional gas distribution companies (oblgazes) and potentially slightly changing the terms of the deal.

Upstreamonline: Gazprom sees increase in gas demand

The Moscow Times: Serbia, Gazprom in South Stream Venture

UPI: Siemens, Gazprom discuss energy ties

Reuters: UPDATE 1-Gazprom to start building Namibia gas plant in Jan

Oil and Gas Eurasia: Gazproms Strategic Goal Is to Gain the Lead In Global Energy Industry

Blogs.WSJ.com: Stepping on the Gas: Why Gazprom Should Fear a Gas Glut

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Full Text ArticlesBasic Political DevelopmentsReuters: PRESS DIGEST - Russia - Nov 11

http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSLB10203320091111

Wed Nov 11, 2009 3:09am EST

MOSCOW, Nov 11 (Reuters) - The following are some of the leading stories in Russia's newspapers on Wednesday. Reuters has not verified these stories and does not vouch for their accuracy.

KOMMERSANT

www.kommersant.ru

- Russia's Prime Minister Vladimir Putin supports the reorganisation of state telecoms holding company Svyazinvest, the paper writes.

- Russia's Transport Ministry may ban Austrian Airlines from flying to Russia. Austrian Chancellor Werner Faymann has discussed the situation with the Russian President Dmitry Medvedev, the paper says.

VEDOMOSTI

www.vedomosti.ru

- Russian billionaire Alisher Usmanov may swap his 31.1 percent stake in Russia's No.3 mobile operator Megafon for a share in long-distance telecom operator Rostelecom (RTKM.MM: Quote, Profile, Research, Stock Buzz), the paper reports.

- Military police in Russia's armed forces will be created in 2010, the daily says.

- Russia's economy is recovering from recession, the paper writes, quoting the World Bank's report.

NEZAVISISMAYA GAZETA

www.ng.ru

- About 60,000 Russian families can't pay off mortgage loans, and 55 percent of such borrowers are in hiding from creditors, the paper says.

TRUD

www.trud.ru

- More than 16,000 suggestions by Russians were sent to the Kremlin in the two months after President Dmitry Medvedev urged a national discussion on Russia's development, with the paper publishing some of the most interesting proposals.

RIA: APEC foreign ministers start discussions in Singapore

http://en.rian.ru/world/20091111/156792270.html

10:4511/11/2009

SINGAPORE, November 11 (RIA Novosti) - Foreign ministers from Pacific Rim countries met in Singapore on Wednesday morning ahead of an APEC summit, for informal discussions focusing on economic security.

Leaders of the 21 Asia-Pacific Economic Cooperation forum countries, which include the U.S., China, Japan and Russia, will meet in the southeast Asian state on the weekend.

Singapore Foreign Minister George Yeo said after hosting an informal breakfast with his counterparts that the sides agreed on the need to improve economic safeguards to prevent a further economic slump.

He also called for free trade and warned against protectionism.

"There is creeping protectionism now; that is very dangerous. It is a slippery slope, and if we're not careful, before we know it, all of us will be in a much more dire situation," he told reporters.

The discussions also addressed means of ensuring balanced economic growth among APEC countries, which account for almost 60% of world trade, as well as countering terrorism enforcing food safety standards.

Valery Sorokin, the Russian Foreign Ministry's special representative, said Russia voiced its support for measures to reduce economic protectionism in the region, and for structural reforms.

The ministers will release a joint statement on Thursday.

Reuters: APEC pledges to phase out fuel subsidies draft

http://in.reuters.com/article/economicNews/idINIndia-43856420091111

Wed Nov 11, 2009 1:08pm IST

SINGAPORE (Reuters) - Members of the Asia Pacific Economic Cooperation forum will pledge to phase out fossil fuel subsides over the medium term, according to a draft statement from their finance ministers.

The statement obtained by Reuters on Wednesday and dated Nov. 10 also said the 21-member grouping will publish timely oil output, consumption, refining and stock data from January 2010 to increase energy market transparency and stability.

"We committed to rationalise and phase out over the medium term inefficient fossible fuel subsidies that encourage wasteful consumption," the statement said, adding that people in need of essential energy services can be given "targeted cash transfers".

The APEC group includes top oil consumers such as the United States, China and Japan, plus energy producers such as Russia, Indonesia and Malaysia.

(Reporting by Bill Tarrant and Manny Mogato; Editing by Neil Chatterjee)

http://www.prime-tass.com/news/show.asp?topicid=0&id=467690

Prime-Tass: Nov 12: Russian President Dmitry Medvedev to make annual address to parliament

The Moscow Times: EBRD Cautions on Modernization Plan

http://www.themoscowtimes.com/business/article/ebrd-cautions-on-modernization-plan/389212.html

10 November 2009

By Alex Anishyuk

The European Bank for Reconstruction and Development on Tuesday warned that over-reliance on natural resources was leaving the Russian economy underdeveloped and outdated and that the government should not try to centralize the country's modernization.

"You should be cautious with the centralized approach, telling regional authorities to do this or that it just won't work," he said. "It is important to encourage people in the regions to think of their strengths and weaknesses and try to determine what the industries of the future will be."

The comments came as a federal commission was announcing its plans for modernizing Russia's ailing auto industry and two days before President Dmitry Medvedev's second state-of-the-nation address, which is widely expected to focus on economic and political modernization.

The crisis revealed a number of "weaknesses and vulnerabilities" that should be properly addressed, EBRD president Thomas Mirow said, stressing several priorities of Medvedev and his government.

"The economic downturn and fall in global commodity prices have emphasized the importance of diversification of output and exports for sustainable long-term economic development," he said. "Furthermore, the crisis has underlined the need to bolster the competitiveness of the Russian industry through market-based restructuring and improved production efficiency, in particular energy efficiency."

The EBRD, founded in 1991 to support the former communist countries develop market economies, plans to invest a total of $4 billion in the Russian economy this year.

"Yesterday, I signed an important loan to TGK-8, a subsidiary of LUKoil, which lifted our investments in Russia to more than $3 billion this year," he said during a briefing organized by the Association of European Businesses. "The $300 million loan will be used to refurbish the Krasnodar central heating plant with state-of-the-art equipment, which will dramatically improve the environmental and operational efficiency of the plant."

Among other investments, he noted a $500 million loan in July to Russian Railways to modernize transport infrastructure, a $180 million loan to technology conglomerate Sistema, also in July, and a $75 million to Bank St. Petersburg in June.

Russia was hit hard this year by the "steepest recession since the early years of transition," but the bank has a more optimistic pullout forecast for Russia than the government, he said.

"This year our economists forecast a fall in output by 8.5 percent," he said. "What we are seeing at the moment is the bottoming out of the crisis, and for the next year our economists predict a return to growth in Russia with an expansion of the economy by up to 3 percent."

The Economic Development Ministry forecast in September that the economy would grow 1.6 percent next year, after a fall of 8.5 percent in 2009.

Later, responding to questions, Mirow said investing in nanotechnologies was a good option for Russia. State corporation Rusnano is set to receive 318 billion rubles ($11 billion) in state funding through 2015 to invest in nanotechnology ventures.

"We are currently in talks with Rusnano on whether we could take joint efforts and find appropriate mechanisms to attract midsize investors from Germany to this sector," he said. "It's still early to talk on specifics, but it looks quite serious."

Building strong cooperation between scientists and entrepreneurs is a key to boosting high-tech production and modernizing the economy, he said.

"One key element is creating a culture of links between academics and investors, and currently the United States is leading in this effort," he said. "This basically starts with state-funded research so that small and midsize companies could break even in five to eight years."

Rusnano was not immediately available for comment.

Alibaba.com: EBRD head urges Russia to increase WTO efforts

http://news.alibaba.com/article/detail/trade/100198223-1-ebrd-head-urges-russia-increase.html

Published: 10 Nov 2009 17:39:07 PST

* WTO membership to help reduce imposed import tariffs

* WTO membership would promote Russia's competitiveness

* Putin urges official to expedite work on customs union

* Accession date difficult to estimate

MOSCOW, Nov 10 - Accession to the World Trade Organisation would allow Russia to trim import tariffs while remaining competitive, the president of the European Bank for Reconstruction and Development said on Tuesday.

Thomas Mirow called on Russia, the largest country outside the WTO, to increase efforts to join the WTO at a time when Moscow is pursuing a customs union with ex-Soviet neighbours Belarus and Kazakhstan as a precursor to accession. "(WTO membership) would help reduce the recent import tariffs across various sectors that Russia introduced in response to the financial crisis," said Mirow, who is on a trip to Russia.

"Advancing its membership in the World Trade Organisation is an important anchor to promote the competitiveness of domestic industry and services."

Russia's 16-year trail of WTO talks has often stalled on various disputes. Accession talks resumed recently after a pause following Prime Minister Vladimir Putin's assertion in June that Russia would join only as part of the customs union -- an unprecedented move in the history of the WTO. [ID:nL91040501]

That announcement "probably did not accelerate the talks", Mirow said.

Putin urged officials on Tuesday to expedite work on launching the customs union. Addressing his government's "border committee", he said Russia, Kazakhstan and Belarus should launch a common trade mechanism and prepare a customs code between January and June 2010.

"There are many threats to the creation of such a union. But I think you all understand perfectly that, if we complete this work, it will be a real example of integration on post-Soviet space," Putin said, without commenting on WTO accession.

The customs union will come into force on Jan. 1, 2010, creating common external tariffs for the three former Soviet republics and a single market for 165 million people.

TARIFFS STILL AN ISSUE

Before joining the WTO -- through the customs union or on its own -- Russia must resolve several trade and tariff issues.

For example, should it join the organisation, the country would have to cut the upper level of its raw sugar import tariff to $250 per tonne from $270 [ID:nLT474391].

Russia has stiffened restrictions on a series of imports, including a 30 percent duty on new foreign cars, to protect domestic industries during a recession that wiped out a tenth of the country's economy in the first half of the year.

Russia is not alone in taking protective action -- many others rushed to aid their domestic producers as well, resulting in rising anti-dumping investigations in the past year [ID:nLA559589] -- but WTO economies have been restrained by the organisation's rules on import restrictions.

President Dmitry Medvedev said last month he was confident his country would join the body [ID:nLL77933]. Mirow said it was difficult to estimate how much longer it would take for Russia to become a WTO member.

"I cannot but encourage Russia to undertake further necessary efforts and I would not see major powers that would have any interest in Russia not joining the WTO," he said.

"The would have a very strong interest in seeing this country join." Recent data from Russia's Federal Customs Service showed trade with the European Union amounted to 50.4 percent of the country's overall trade in the first nine months of the year.

Prime-Tass: INTERVIEW: Russian economy may recover from crisis in 34 years

http://www.prime-tass.com/news/show.asp?topicid=0&id=467721

Interview with European Bank for Reconstruction and Development President Thomas Mirow

MOSCOW, Nov 11 (PRIME-TASS) -- The Russian economy could require three or four years to recover from the severe contraction that it had this year, European Bank for Reconstruction and Development (EBRD) President Thomas Mirow said in an interview with PRIME-TASS.

The recovery of the Russian economy will very much depend on the evolution of the world economy because the world economy will drive the demand for Russias natural resources. And, of course, the shrinking of the Russian economy this year has been very severe, so it will certainly take 3 or 4 years to recover from this, Mirow said.

Russian Deputy Prime Minister and Finance Minister Alexei Kudrin said in September that the recovery stage of the Russian economy would be completed by the end of 2012.

When asked about inflation in Russia and whether it could become an obstacle to the recovery from the crisis, Mirow said that inflation targeting was very important for Russia.

Of course, the most important element in this is to increase the competitiveness of the Russian corporate sector so that there can be a rise in productivity. This is the most important element to reduce the inherent inflationary tendencies that we have seen in the Russian economy up to now, he said.

Consumer price inflation in Russia amounted to 8.1% from January 1 through November 2, according to latest data from Russias Federal State Statistics Service. Russias Economic Development Ministry currently expects inflation to be marginally over 8% in 2009. The Central Bank of Russia projects inflation to be below 10% in 2009. Last year, inflation in Russia was at 13.3%.

Speaking about the EBRDs activities, Mirow said that the bank was requesting more capital from the governments that own the bank in order to further increase its activities, including in Russia. A final decision on a capital increase is expected to be made in May 2010 at the EBRDs annual meeting in Zagreb, he added.

We hope for the best, but we are of course aware that other financial institutions also have similar requests, Mirow said.

Mirow also pledged comprehensive programs to sustain the early recovery stage, in which the global economy will probably enter in 2010. The EBRD intends to address the risks of the early recovery stage by further stabilizing banks and providing loans to small- and medium-sized companies in the banks countries of operation, he said.

Reuters: Medvedev backs reform of Russian state companies

http://www.forexpros.com/news/general-news/medvedev-backs-reform-of-russian-state-companies-100699

2009-11-10 21:06:30 GMT (Reuters)

* Probe finds 'inappropriate' use of state resources

* Advisor says some should become joint stock companies

* Rise of state champions associated with PM Putin

MOSCOW, Nov 10 (Reuters) - President Dmitry Medvedev on Tuesday gave provisional backing to an overhaul of Russia's powerful state corporations after the prosecutor general accused them of "inappropriate and ineffective" use of state resources.

Under former President Vladimir Putin, now prime minister, several state corporations were built up into conglomerates with vast sway over whole sectors, strengthening the Kremlin's grip over the economy.

Medvedev earlier this month ordered an inquiry into the companies and questioned whether they were even needed.

"Examples were found of inappropriate and ineffective use of by state corporations of financial and material resources provided by the state," Prosecutor General Yuri Chaika told Medvedev in a televised Kremlin meeting on Tuesday.

Chaika also accused state corporations of violations in tenders and outsourcing, and questioned some bonuses paid to employees.

Presidential advisor Konstantin Chuichenko at the same meeting suggested turning some of the state corporations into joint stock companies.

Others, in noncompetitive industries, should be given more specific targets and subject to probes to test their efficiency.

Medvedev described the proposals as "very sensible," and said he would look at them again.

Chaika cited problems in state bank Vneshekonombank and Olympstroi, which is developing the city of Sochi for the 2014 Olympics as well as Rosnano, tasked with developing nanotechnology.

It also named Russian Technologies, which controls the state arms exporter Rosoboronexport, the world's biggest titanium producer VSMPO-Avisma and a quarter of car maker AvtoVAZ.

The rise of the state corporations is associated with the presidency of former President Vladimir Putin, who championed them as the driver of economic growth.

Analysts have interpreted Medvedev's probe as an attempt to claw back state money as Russia faces its first budget deficit in a decade, rather than evidence of a rift between Medvedev and his patron Putin. (Writing by Conor Humphries; Editing by Tim Dobbym)

The Moscow Times: Investigators Slam State Corporations

http://www.themoscowtimes.com/business/article/investigators-slam-state-corporations/389234.html

11 November 2009

By Peter France

Prosecutor General Yury Chaika presented the results of his inspection of state corporations Tuesday and revealed that 22 criminal cases had been opened in connection with the activities of state corporations.

Facts have come to light indicating inappropriate and ineffective spending of state funds and material resources on the part of state corporations, Chaika told President Dmitry Medvedev.

In connection with the wrongful disposal of property, first and foremost by enterprises under the jurisdiction of Russian Technologies 22 criminal cases have been opened, he said in comments posted on the Kremlin web site. Russian Technologies received controlling stakes in more than 400 companies in 2008 under a decree signed by Medvedev.

Rusnano, the states nanotechnology investment firm, also came under direct fire. Of the 130 billion rubles that Rusnano received from the state two years ago, only 10 billion rubles ($348,280) has been used. Of that, 5 billion rubles went to fulfilling its day-to-day operations.

Since its creation, [Rusnanos] supervisory council has approved 36 nanotechnology projects out of more than 1,200 applications, and it is currently financing only eight, Chaika said.

In September, Rusnano said it had invested a cumulative 52.4 billion rubles in 36 projects.

In August, Medvedev ordered the Prosecutor Generals Office and the Kremlins oversight department, headed by Konstantin Chuichenko, to investigate the activities of the seven state corporations, which include Rosatom, Russian Technologies, Rusnano, Vneshekonombank, Olimpstroi, the Mortgage Lending Agency and the Housing and Utilities Reform Fund.

State corporations have come under fire from influential quarters since they were created in 2007. Presidential aide Arkady Dvorkovich and Finance Minister Alexei Kudrin have spoken out against state corporations, saying they hamper growth.

Medvedev said in October that many state corporations must either change their legal status or be shut down.

In addition to the criminal cases opened, the prosecutors office uncovered a host of other problems, including unsanctioned outsourcing, excessive bonuses and absent supervisors.

Because of a lack of qualified employees, state corporations have outsourced much of the work that they should be doing themselves, the report found. Specifically, Russian Technologies paid Troika Dialog 130 million rubles for doing work that the corporation itself should have done, Chaika said.

Also, the investigation found that members of the supervisory council were ignoring council meetings and shirking their duty to oversee corporate activities. Eight of the 15 members on Rusnanos supervisory council didnt take part in two-thirds of the council meetings held in the last two years, he said.

Further, the absence of a law regulating pay for employees of state corporations has led to unjustifiably high bonuses. The federal law on state corporations doesnt deal with basic salary questions or the legal status of workers, he said, adding that the report found excessive bonuses and salaries at Rusnano, the Housing and Utilities Reform Fund, Olimpstroi and VEB.

Chuichenko, who was also present at the meeting, said since the corporations carry out state objectives, the status of their employees should be brought in line with that of civil servants.

The Moscow Times: Cutting-Edge Incompetence

http://www.themoscowtimes.com/opinion/article/cutting-edge-incompetence/389218.html

11 November 2009

By Yulia Latynina

In October, Prime Minister Vladimir Putin and Rusnano head Anatoly Chubais visited the Mikron factory in Zelenograd, located 37 kilometers outside Moscow, where the newest Russian 180-nanometer microchips are being produced. An agreement was signed there stipulating that if the state invests another 16 billion rubles ($556 million), the plant can begin producing cutting-edge 90-nanometer chips.

Over the last decade, microchip circuit spans have halved every two years. On Sept. 15, two weeks before Putins visit to the company, Intel Corporation announced a new 32-nanometer chip. Almost all major companies currently use 45-nanometer chips. That means that by the time Mikron begins producing 90-nanometer chips in four years, Intel will probably be working with chip circuits as small as 5 to 10 nanometers.

That would be like if the fellows at high-tech firm Sitronics showed Putin a newly developed fighter bomber with a top speed of only 160 kilometers per hour and promised that they could double the speed if the state pumped another $200 million into the program. The guys at Sitronics were not fired on the spot.

In early June, Interfax reported this stunning bit of news: After a two-year delay, the Russian president took delivery of a new radio relay aircraft that is capable of remaining in communication during flight. On Monday, two Tu-214SR aircraft arrived at Vnukovo Airport. The report went on to describe the radio relay communication system as being the most reliable in the world.

In other words, in this age of satellite communications, when a U.S. army sergeant can view a real-time picture of the battlefield transmitted by a drone aircraft, the Russian president was presented with two antique flying cell phones with a combined price of 2.6 billion rubles ($90.4 million). Apparently, Russia will soon begin using the cutting-edge system of smoke signals to transit information.

For some reason, the creators of this miraculous flying phone were not fired on the spot.

Last week, Deputy Economic Development Minister Andrei Klepach announced that his ministry was proposing amendments that would allow officials to designate roads as toll roads even if there were no alternative free roads, as is done in Germany and China.

Ive got news for Klepach: There are no toll roads in Germany. Whats more, Russia already has a toll road law, and it defines an alternative road as a free road that is at least three times longer than the parallel toll road.

But Klepach was not shot or fired for incompetence.

Being a philologist, I cant even guess what Russian scientists are thinking when they read about cutting-edge 180-nanometer chip technology. Are they crying or cursing over the current state of affairs?

But thank goodness that in his search for new technologies and new solutions, President Dmitry Medvedev has taken some definite steps. He ordered the head of his administration to seriously study blogger Maxim Kalashnikovs proposal that Russia create a bioagroecopolis a prototypical city of the future filled with the latest technological innovations.

Could it really be that our leaders care nothing about the country and worry only about their private villas and other assets overseas?

Yulia Latynina hosts a political talk show on Ekho Moskvy radio.

RIA: U.S. delays nuclear summit until May

http://en.rian.ru/world/20091111/156789993.html

04:2511/11/2009

WASHINGTON, November 11 (RIA Novosti) - A summit on nuclear security, to involve Russia and the U.S., has been postponed until May 2010, a top U.S. State Department official said on Wednesday.

Speaking at the George Washington University, Under Secretary of State for Arms Control and International Security Ellen Tauscher said the summit was delayed due to Easter holidays.

The event was initially scheduled for April.

President Dmitry Medvedev said at a news conference following the G20 summit in Pittsburgh that Russia and the U.S. have agreed to jointly prepare for the summit on the nuclear security to be held in Washington, D.C., in 2010.

Russia Today: Hillary Clinton impressed with Medvedev

http://www.russiatoday.com/Politics/2009-11-10/clinton-medvedev-opinion.html/print

10 November, 2009, 18:31

In an interview to NBC TV channel, US Secretary of State Hillary Clinton is impressed by the performance of Russian President Dmitry Medvedev.

Well, I kind of like President Medvedev myself, she said. I am very impressed with him and what hes trying to do.

Clinton added that although she does not pretend to understand how the balance of power in Russia actually works, she thinks that Dmitry Medvedev is a modern man with a clear and compelling understanding of what he wants to see his country achieve.

The US Secretary of State added that the United States and Russia have important projects of common interests, working on nuclear disarmament and many other issues.

I think that [Russians] fully appreciate that we are not always going to agree, but that at least the Obama administration, and certainly the president and myself, are showing them the respect that they deserve to have and are looking for ways that we can work together, she concluded.

Itar-Tass: Russia FAS coop agts with US govt bodies important step official

http://www.itar-tass.com/eng/level2.html?NewsID=14518294&PageNum=0

11.11.2009,08.37

WASHINGTON, November 11 (Itar-Tass) - Russian Federal Antimonopoly Services (FAS) agreement on cooperation with the US government agencies is an important step for the development of bilateral relations, FAS head Igor Artemyev told Itar-Tass on Tuesday.

During his visit to Washington he held talks with head of the Antitrust Division of the US Justice Department Christine Varney and Chairman of the Federal Trade Commission Jon Leibowitz. The sides signed a memorandum of understanding on the results of the talks.

It is the first such agreement between our countries, said Artemyev. It is aimed at building closer interaction between the Federal Antimonopoly Service of Russia from one side, and the US Department of Justice and Federal Trade Commission on the other, he added.

According to the FAS head, the memorandum of understanding envisages, in particular, information exchange, preparation of legislation, consultations on law enforcement, interaction of international organisations and traineeship. It is an important step in the development of our relations with the United States, the FAS chief stressed.

The two countries antimonopoly agencies are also to take under control issues related to the possible making claims against American or Russian companies by the US and Russian federal bodies. Of course, nobody will allow either America or Russia to interfere in the investigations, Artemyev said. The transfer to each other of confidential information is also impossible for this it is necessary to sign agreements at the presidents level and ratify them by the parliaments, he noted. However, Artemyev said, the signed memorandum envisages mutual informing and complementarity and respect to each other.

According to a FAS press release, the Heads of the Russian and the US Competition Authorities signed Memorandum on Understanding (MoU). This MoU is the first document on interagency cooperation signed between the Russian and the US Competition Authorities that defines goals, tasks and basic forms of cooperation of Competition Authorities of Russia and USA.

During his visit to the USA the Head of the FAS Russia Mr. Igor Artemyev and Stats-Secretary Deputy Head of the FAS Russia Mr. Andrei Tsarikovsky held negotiation with the Assistant Attorney General for Antitrust Division of the US Department of Justice Ms. Christine A. Varney and the Chairman of the US Federal Trade Commission Mr. Jon Leibowitz on development of cooperation in the sphere of competition policy.

The Parties informed each other on basic activities of the Russian and US Competition Authorities, exchanged their views on options for development of bilateral cooperation in the sphere of competition policy and enforcement. The Parties also exchanged working materials on issues subject to their competence.

Moreover, the Parties agreed taking into consideration confidentiality rules to exchange information on changes to the national competition legislation, enforcement practice, conducted investigations with regard to violation of competition legislation, as well as court examination.

Furthermore, the Parties discussed possibilities to hold joint investigations on violations of competition legislation, exchange of non-confidential information to conduct such sort of investigations, as well as cooperation to bring international cartelists, Russian or American, to liability, according to the release. Apart from that, taking into consideration the growing role of mutually beneficial bilateral cooperation and increase of the role of competition policy, the Parties decided to interact more intensively and to exchange an experience in the sphere of international competition legislation and enforcement practice within the OECD, UNCTAD, ICN, APEC and other international organisations.

The Parties underlined importance of this negotiation and focused on necessity and willingness to further develop interaction in the sphere of competition policy aimed at creation of benign trade and economic conditions for the economic entities of both countries, according to FAS.

The Heads of Competition Authorities of Russia and USA reached an understanding that bilateral cooperation in this sphere has great perspectives and agreed to enhance cooperation between the agencies thus stimulating the US-Russian cooperation in the sphere of competition policy and enforcement.

Bloomberg: Putin to Discuss Renault Role in AvtoVAZ During Trip to Paris

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=acok9OYMUf7s

By Lyubov Pronina

Nov. 11 (Bloomberg) -- Russian Prime Minister Vladimir Putin will discuss French automaker Renault SAs role as a shareholder in OAO AvtoVAZ during a trip to Paris this month, said Dmitry Peskov, spokesman for Putin.

Russias government is taking measures to save the struggling Russian carmaker and it would be unfair if Renault didnt help, Peskov told reporters in Moscow late yesterday. We cant insist on money or technologies, though we expect Renault to do something, Peskov said.

Renault agreed in December 2007 to buy 25 percent of AvtoVAZ for about $1 billion, when the stock was trading at about 50 rubles. AvtoVAZ closed at 15.99 rubles in Moscow yesterday, valuing the company at about $770 million.

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

Last Updated: November 11, 2009 02:00 EST

http://www.prime-tass.com/news/show.asp?topicid=0&id=467690

Prime-Tass: Nov 14: Russian Prime Minister Vladimir Putin to meet Slovenian Prime Minister Borut Pahor in Russia

RIA: Putin to discuss Europe's energy security with Austrian chancellor

http://en.rian.ru/russia/20091111/156789261.html

02:2811/11/2009

MOSCOW, November 11 (RIA Novosti) - Russian Prime Minister Vladimir Putin will meet with Austrian Chancellor Werner Faymann on Wednesday to discuss Russian gas supplies to Europe, the Russian government's press service has said.

The issue was raised at Faymann's meeting with Russian President Dmitry Medvedev on Tuesday. Russia supplies up to 90% of natural gas consumed in Austria.

The two heads of governments are set to discuss the draft Russian-Austrian intergovernmental agreement on the construction of the Austrian section of the South Stream pipeline.

The South Stream gas project, scheduled to be completed by 2015, is part of Russia's efforts to cut dependence on transit nations. It is a rival project to the EU-backed Nabucco, which would bypass Russia.

The 25 billion-euro ($36.5 billion) project is designed to annually pump 31 billion cubic meters of Central Asian and Russian gas to the Balkans and on to other European countries, bypassing Ukraine, which has frequent disputes with Russia over gas supplies and transits. The pipeline's capacity is expected to be eventually increased to 63 billion cubic meters.

On May 15 Russian energy giant Gazprom signed a package of project-related documents with Bulgaria, Greece and Serbia. Similar agreements are now being coordinated with Slovenia and Austria.

The two officials are also expected to discuss measures to increase and diversify bilateral trade, which totaled $5.4 billion in 2008.

RIA: Russian emergencies minister arrives in Havana

http://en.rian.ru/world/20091111/156790796.html

06:4311/11/2009

HAVANA, November 11 (RIA Novosti) - Russia's emergencies minister, Sergei Shoigu, arrived in the Cuban capital Havana late on Tuesday to discuss cooperation with his Cuban colleagues.

The Russian minister said he was expected to sign a cooperation plan, which would include "information exchange and training" for Cuban specialists.

"We would draft new projects and implement them," he told journalists.

Shoigu arrived to the Cuban capital from Nicaragua, where he launched a mine-clearing project.

"The Russian government has resolved to allocate a substantial sum to buy equipment and to train Nicaragua specialists to remove mines," Shoigu said, adding that, according to the program, Nicaraguan specialists would complete clearing the country's territory by 2010.

About 179,000 mines were laid in northern and central provinces in Nicaragua in 1980s, only 175,000 of them have so far been cleared.

The Russian delegation will fly to Venezuela from Cuba on Friday.

Itar-Tass: Nicaragua, Russia sign agt on coop against natural calamities

http://www.itar-tass.com/eng/level2.html?NewsID=14517975&PageNum=0

11.11.2009,10.57

GUATEMALA, November 11 (Itar-Tass) - Russian Emergency Situations Minister Sergei Shoigu and Commander in Chief of the Nicaraguan Armed Forces Omar Halleslevens have concluded an agreement on cooperation in the sphere of coping with the aftermath of natural calamities. The agreement that expires next year was concluded on Tuesday within the framework of the Russian delegations visit to the Nicaraguan capital.

In accordance with the concluded agreement, Russia will provide assistance to Nicaragua in order to help it raise efficiency of response efforts to natural cataclysms. It envisages, in particular, the exchange of scientific and technical information, as well as sharing with the Nicaraguan side the Russian experience in taking preventive measures against natural calamities and coping with them.

Speaking at the signing ceremony Shoigu noted that the population and infrastructure of Nicaragua often suffer from earthquakes, hurricanes, floods and volcano eruptions. The signed document will become a basis for the modernisation of structures of the national emergency response system, he noted.

Halleslevens for his part noted, in accordance with the agreement the Nicaraguan army will in a short period of time receive from Russia equipment, special machinery and assistance in the training of personnel for liquidating the natural disasters aftermath. The Russian Federation will simultaneously offer help to Nicaragua in the liquidation of minefields remaining in the countrys territory since the times of the internal armed conflict.

According to experts, a total of over 179 thousand anti-personnel mines were planted in the territory of Nicaragua in the 1980s. Almost 175 mines have been rendered harmless since 1989 when the mine clearing operation started.

Thaindian News: Russia supports Indias proposal on terrorism, offers access to Glonass Satellite for civilian use

http://www.thaindian.com/newsportal/india-news/russia-supports-indias-proposal-on-terrorism-offers-access-to-glonass-satellite-for-civilian-use_100272906.html

November 10th, 2009 - 10:19 pm ICT by ANI

By Naveen Kapoor

New Delhi, Nov.10 (ANI): Russia stands with India in combating terrorism and backs Indias

proposal of Comprehensive Convention on International Terrorism (CCIT), said Deputy Chairman of the Government of the Russian Federation S.S. Sobyanin here on Tuesday.

Convention on International Terrorism or, the CCIT is an Indian document, which outlines the definition of terrorism and proposal of anti-terror law submitted to United Nations in the late 90s, which is under discussion for many years.

In 2001, India in fact submitted its revised version and has been pitching for its implementation.

Sobyanin also said that Russia and India would work together against terrorism through its joint working group on terrorism.

In what can be a major boon for India after cooperation in Sakhalin, Russia has expressed its readiness to offer India an exploration block in Yamal.

Russia is ready to offer India another exploration block at its site in Yamal in cooperation with gasprom, Sobyanin informed mediapersons and added: Russia is willing to give India access to Russian satellite Glonass for civilian purpose.

Expressing happiness over lifting of sanctions on India for doing nuclear trade, S.S. Sobyanin who co- chairs the Russian-Indian Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation said: Russia would follow a new approach in

conducting nuclear trade with India, which will be more competitive. For this purpose, more cooperation will be sought from the Russian State Nuclear Energy Corporation, Rosatom.

Russia is assisting in building Light Water Reactors in Kudankulam 1 and 2 and has recently been allotted two more sites in Kudankulam in Tamil Nadu and Haripur in West Bengal to build nuclear reactors.

Russia is in direct competition with the United States and France, which are bidding for Indias nuclear pie, expected to touch 150 billion dollars in the next 20 years, and includes supply fuel and technology.

Glonass or, the Global Navigation Satellite System is a radio-based satellite navigation system. It has been developed by the former Soviet Union and now operated for the Russian government by the Russian Space Forces.

It is an alternative and complementary to the United States Global Positioning System (GPS), the Chinese Compass navigation system, and the planned Galileo positioning system of the European Union (EU).

Glonass was developed to provide real-time position and velocity determination, initially for use by the Soviet military for navigation and ballistic missile targeting. (ANI)

Businessneweurope: Russia earmarks less than the $9bn needed to build Belarus' nuke power plant

http://www.businessneweurope.eu/dispatch_text10463

bneNovember 11, 2009

Russia has sold a nuclear power plant to Belarus and promised to provide the financing for the $9bn power station, but the Kremlin has put aside less than this amount for the work in the 2010-2012 budget, reports Prime Tass.

Alexander Glukhov, the first vice president of Russian engineering company Atomstroyexport, said: "The sum is significantly lower than the $9bn requested by the Belarusian government, but is sufficient for the three-year period."

The Belarusian government asked for a $9bn loan from the Russia government in May to build the plant.

Atomstroyexport is expected to become the general contractor for a 2,400-megawatt nuclear power plant. The first unit is due to come online in 2016, and the second unit in 2018.

Russia is also planning to build its own new 2,300MW plant called the Baltiyskaya in the Kaliningrad Region.

The Lithuanians are also supposed to be building another in the region.

None of these plants will compete say all the parties.

Barentsobserver: Nuclear lighthouse projects moves from Barents to Baltic

http://www.barentsobserver.com/nuclear-lighthouse-projects-moves-from-barents-to-baltic.4652079-116320.html

2009-11-11

Norway pays eight times more than Finland in a project to remove Russia's nuclear lighthouses located in the area around the Gulf of Finland.

The Norwegian-Russian joint project to remove the radioactive sources in the lighthouses around the Barents Sea coast will be duplicated in the Baltic.

Finland signed an agreement with Norway on Tuesday to fund a project to remove the strontium-batteries from Russias nuclear lighthouses around the Gulf of Finland in the Baltic Sea, reports the Norwegian Foreign Ministry.

The lighthouses are in the Finish neighbouring waters, but it is Norway that put in most of the funding, about 11 million. Finlands share in the joint agreement is about 1,5 million. The agreement to remove 71 of the 87 lighthouses around the Baltic Sea was signed by Norways Foreign Minister Jonas Gahr Stre and Finlands Foreign Minister Alexander Stubb. The last 16 lighthouses with radioactive strontium batteries will be removed with funding from Russia and France.

The strontium source in the lighthouses, or the radioisotope thermoelectric generator (RTG), is highly radioactive. It is the heat from the radioactive source that is used to generate power to the lamp in the lighthouse.

In a statement, the Finnish government said the project would improve maritime safety and prevent terrorists from acquiring radioactive materials, reports The Helsinki Times.

From the Norwegian side, the project leader will be Per-Einar Fiskebeck from the Finnmark County Governors environmental department.

In a comprehensive background article, BarentsObserver reported earlier this autumn that the last of 180 radioactive sources used to provide power to lighthouses in the Barents Region was removed from the Vaigach Island.

After removal the radioactive sources from the RTGs are sent to the Mayak plant in the South Urals for long-term storage.

Cambodia: Russia refuses to cancel debt

http://www.phnompenhpost.com/index.php/2009111129451/National-news/russia-refuses-to-cancel-debt.html

Wednesday, 11 November 2009 15:04 Khouth Sophakchakrya

THE Russian Federation has refused to wipe out over a billion dollars of Cold War-era debt, despite National Assembly President Heng Samrins appeals to senior Russian officials during his recent six-day visit to the country.

Cheam Yeap, a senior lawmaker for the ruling Cambodian Peoples Party who accompanied Heng Samrin on the trip, said Tuesday that Russian officials have not yet accepted the governments bid to cancel the debt, which totals around US$1.5 billion. The money was borrowed from the Soviet Union in the 1980s for the purchase of military equipment during Cambodias decade-long civil war.

Cambodia requested debt cancellation from Russia in 2006 and 2008, but was unsuccessful both times.

We made an effort to convince them by saying that China cancelled $300 million of a $5 billion debt and the IMF canceled a debt of $82 million. But they said nothing, he said.

The delegation travelled to Moscow and St Petersburg, where they met with Sergey Mironov, chairman of the Russian Federation Councils Federal Assembly and other government representatives to discuss a potential air route linking Moscow with Phnom Penh and Siem Reap.

He added that Russias deputy prime minister and investors from the country will visit Cambodia on November 15 to investigate a possible dam project.

They will look into investing in a hydropower project in Stung Treng that will be able to produce 980 megawatts of electricity, he said.

Bloomberg: Russia Warns of Gas Crisis as Ukraine Faces Financial Turmoil

http://www.bloomberg.com/apps/news?pid=20601085&sid=ayxIA3Fxbq6A

By Lyubov Pronina and Lucian Kim

Nov. 11 (Bloomberg) -- The Russian government warned of an interruption of natural-gas exports as Ukraines financial and political turmoil threaten its ability to meet payments.

There will be a great danger of another crisis should Ukraine miss a single monthly payment to energy producer OAO Gazprom, Dmitry Peskov, the spokesman for Prime Minister Vladimir Putin, told reporters late yesterday.

Ukraine, which transits about 80 percent of Russian gas exports to Europe, may have to postpone payments for the fuel if it doesnt get an International Monetary Fund tranche on time, Deputy Prime Minister Hryhoriy Nemyria said yesterday. The country is relying on international lenders to stay afloat as it prepares for Jan. 17 presidential elections.

Ukraine authorities yesterday failed to reach an agreement with the IMF on how to meet fiscal austerity demands and unlock a $3.4 billion installment of the $16.4 billion bailout, presidential aide Oleksandr Shlapak said. He declined to comment on when an accord might be reached.

Gazprom has repeatedly cut deliveries to Ukraine since 2006 because of disagreements over pricing and payments. Ukrainian Prime Minister Yulia Timoshenko, a presidential candidate, negotiated a new contract with Putin in January after a Gazprom cut that caused disruptions in 20 European countries.

The rhetoric on the Russian side is not very relaxing, said Steven Dashevsky, an independent investor in Moscow and former head of equities at UniCredit SpA. They want to keep the Ukrainians under pressure until they get their desired result: Timoshenko in the presidency.

Still Paying

Putin has questioned Ukraines ability to pay for gas, calling on the European Union to lend the country at least $1 billion to ensure secure fuel transit. Under the contract signed in January, Ukraine agreed to make monthly payments by the seventh day of each month.

Ukraine is paying in due time all the outstanding amounts and what we are looking for is that they will continue to do so, Gazprom Deputy Chief Executive Alexander Medvedev said in an interview with Bloomberg Television yesterday. We would hope that political ambitions will not allow such things to repeat.

Gazprom said on Nov. 9 it received full payment from NAK Naftogaz Ukrainy for October gas supplies to Ukraine.

Ukraine, which suffered a 17.8 percent economic contraction in the second quarter, is due to hold further talks with the IMF at the beginning of next week, Nemyria said.

President Viktor Yushchenko last month signed an opposition bill approving higher social spending and ignoring IMF calls for budget cuts. The IMF had urged Yushchenko to veto the bill, which undermines the countrys efforts to comply with budget goals.

Editors: Tasneem Brogger, Chris Kirkham.

To contact the reporters on this story: Lyubov Pronina in Moscow at lpronina@bloomberg.net; Lucian Kim in Moscow at lkim3@bloomberg.net

Last Updated: November 11, 2009 03:48 EST

BSANNA News: Ukraine, Russia to moot oil transit increase

http://bsanna-news.ukrinform.ua/newsitem.php?id=11016&lang=en

KYIV, November 11. /UKRINFORM/. Ukraine and Russia have agreed to hold consultations on a rise in oil transit. A relevant decision was taken at a meeting of the Commission for Fuel and Energy Cooperation of the Committee on Economic Cooperation of the Ukraine-Russia Interstate Commission, the Fuel and Energy Ministry reported on Tuesday.

In order to ensure a trouble-free delivery of Russian oil and rise in the delivery volumes to the Ukrainian oil refineries and oil transit via Ukraine, the parties have therefore agreed to hold consultations to elaborate the terms of cooperation in that direction, including the possibility of making amendments or signing a new agreement between the oil transport system operators Ukrtransnafta and Transneft, a statement reads.

In addition, the parties focused on relationship in gas and oil sectors.

It was also decided to hold consultations within the first half of 2010 in order to prepare a coordinated draft intergovernment agreement of cooperation in gas sector with taking into account the work done by the parties on revising the current agreements, as well as agreements reached during consultations and bilateral talks.

As reported, in January-October 2009, oil and gas transit through Ukraine reduced against the like period of 2008 by 9.9% and 23.5% accordingly.

In 2008, oil transit via Ukraine made 32,842 million tons, and gas transit was 119,600 billion cubic meters.

// 11.11.2009 // 10:20 //

MIGnews.com.ua: Ukraine and Russia have begun new gas talks

http://mignews.com.ua/en/articles/378325.html

MIGnews.com.ua

Ukraine and Russia have exchanged drafts of a new intergovernmental Agreement on cooperation in gas sphere. Kyiv needs an agreement to revise the long-term contract between Gazprom and national stock company Naftogaz of Ukraine, because Ukraine will buy 24 bn cu m of gas instead of 40 bn cu m of gas according to the contract. Russia is ready to sign anything, just not to change the contract, the newspaper Kommersant Ukraine reports.

Yesterday, November 10 Fuel and Energy Ministry reported that during the fifth meeting of the subcommittee on the fuel and energy complex of Ukrainian-Russian International Committee on November 9 projects of "a new international agreement on cooperation in gas sphere" were discussed. "We conveyed our project to Russia's side. It has basic principles without specific volume, - the head of Fuel and Energy Ministry Yuri Prodan claimed. - Russia's side has not considered the draft agreement."

A high-ranking source in the Fuel and Energy Ministry said that Ukraine is insisting on the inclusion in the agreement a possibility to purchase gas in really necessary volumes with monthly adjustments which was previously agreed by Prime Ministers of two countries: "But in Russia's version of the treaty there are no proposals similar to ours, - said the source of the newspaper. -- I think it will be difficult to break them. In response to our demand for parity Russia's side made claims about the shortage of gas this year. "

During the meeting of Ukrainian-Russian International Committee Ukraine and Russia agreed to increase the supply of Russia's oil to Ukrainian refineries and its transit to Europe. That is why a new agreement is planned to sign between Ukrtransnafta and Transneft. In addition, the parties decided to hold consultations to settle the conflict around the company Ukrtatnafta.

News.az: CIS ministers approve defence cooperation concept

http://www.news.az/articles/2122

Wed 11 November 2009 | 04:59 GMT

The defence ministers of the Commonwealth of Independent States have approved a defence cooperation concept until 2015 and an action plan until 2010 at their meeting in Dushanbe.

The defence cooperation concept covers a broad range of issues.

"The concept encompasses all aspects of strengthening security in the military sphere and in all areas related to security in the post-Soviet space," the secretary of the CIS Council of Defence Ministers, Aleksandr Sinaysky, told a press conference on Tuesday.

The council also discussed the development of the CIS United Air Defence System. "The United Air Defence System is being developed in line with the Commonwealth development concept for the next five years, which was finalized by the heads of state," Sinaysky said.

The council meeting discussed funding for the system. "Of course, everyone would like the funds to be greater, but with the global financial crisis the funds allocated are being used as efficiently as possible," Sinaysky said.

He said that the other members of the Council of Defence Ministers are ready to support the United Air Defence System in Tajikistan and Kyrgyzstan.

The meeting also discussed plans for celebrations to mark the 65th anniversary of the end of World War II.

Tajik President Emomali Rahmon received the defence ministers and stressed the need for stronger military cooperation to ensure better security of CIS member states.

Officials from Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Ukraine, Uzbekistan, Russia and Tajikistan attended the meeting.

24.kg: CIS Defense Ministers endorse military cooperation concept until 2015

http://eng.24.kg/cis/2009/11/11/9608.html

11/11-2009 09:12, Bishkek News Agency 24.kg, By Daniyar KARIMOV

Defense Ministers of the Commonwealth of Independent States has approved military cooperation concept until 2015, Russian mass media reported.

Meeting of CIS Defense Ministers was held in Dushanbe on November 10. It was the 57th session of Defense Ministers Council, attended by delegations from Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan and Ukraine.

The participants have endorsed the main directions of the Unified Air Defense Systems development until 2015. The ministers have also discussed celebration of 65th anniversary of the Victory in the Great Patriotic War. In general, the delegates have considered over 20 issues on multilateral cooperation.

The next session of the council is scheduled for April 2010.

Aysor.am: Security in Caucasus to be discussed in Geneva

http://www.aysor.am/en/news/2009/11/11/geneva-consultations/

The Geneva discussions are now entering an eight phase whose purpose is to focus on issue of security in Caucasus. The talks involve details of agreements on nonuse of force between Tbilisi and Tskhinvali and between Tbilisi and Sukhumi. It is expected that Georgian delegation will voice item of release of four Georgian teenagers detained in South Osetia. The detained teens are Aleko Sabadze, Victor Buchukuri, George Romelashvili and Levan Khmiadashvili, who on November 4 stepped out of the Georgian-controlled territories and were detained in Tskhinvali. Officials of South Osetia said that teens had got 4 grenades as well as explosives.

The Geneva discussions are held in the framework of the Sarkozy-Medvedev Plan signed on October 12 2008 that had ended the five-day war in Georgia. During a previous round of consultations the parties have not reached consensus on some issues.

Meanwhile todays consultations mark new format of participants involving representatives of Georgia, Abkhazia, South Osetia, Russia, EU, UN, OSCE, and U.S. At the same time, these talks are held immediately after released report of international experts and analysts who were studying last years armed conflict.

TODAY, 11:12

RIA: Russia, S.Ossetia to report in Geneva on possible Georgian attack

http://en.rian.ru/world/20091111/156789715.html

03:4111/11/2009

MOSCOW, November 11 (RIA Novosti) - Russia and the South Ossetia are set to raise the issue of a possible Georgian attack on its former territories during the Geneva talks on situation in the Caucasus to begin on Wednesday.

The Geneva talks are backed by the UN, the EU and the OSCE and involve Georgia, Russia, South Ossetia and Abkhazia. The previous, seventh round of talks took place in September.

Russian Deputy Foreign Minister Grigory Karasin said Russia had "alarming facts" that show that Tbilisi was still counting on using force to regain control over its former republics of Abkhazia and South Ossetia.

He also said that Russia would again raise the question of concluding treaties on the non-use of force between Georgia and its former republics.

South Ossetia said it would also present "conclusive evidence" that a new Georgian aggression against the former republic is being prepared.

The Georgian delegation plans to raise the issue of four Georgian teenagers, detained in South Ossetia reportedly while in possession of grenades and explosive substances. In a similar move, South Ossetia will urge the release of three of its nationals apparently abducted from its territory by Georgian special services on October 13, 2008.

Russia recognized the independence of the former Georgian republics of Abkhazia and South Ossetia last August after a five-day war with Georgia over the latter, which was attacked by Tbilisi in an attempt to bring it back under central control.

AFP: Detentions set to dominate Russia, Georgia talks

http://www.google.com/hostednews/afp/article/ALeqM5iMHUk7fa58JmSg2A85_2kRLVjDLg

(AFP) 4 hours ago

GENEVA Russia and Georgia embark on fresh talks in Geneva Wednesday set to be dominated by the arrest of Georgians in South Ossetia, the breakaway Georgian region at the centre of the war between the two countries.

Delegations from the two sides, as well as from South Ossetia and the second breakaway Georgian region Abkhazia, will meet at the United Nations in the Swiss city for talks dedicated to security and displaced people.

It will be the eighth round of the discussions which started after the five-day war between Russia and Georgia in August 2008. The negotiations are resuming after a pause of almost two months.

The talks are backed by the European Union, the UN and the Organization for Security and Cooperation in Europe.

High on the agenda will be "repeated detentions", notably by South Ossetia, a European diplomatic source told AFP.

Questions will be raised about the fate of four Georgian teenagers held in South Ossetia since November 4, said head of the Georgian delegation Giga Bokeria ahead of the discussions.

The four youths, aged 14 to 17, were arrested in South Ossetia's main city Tskhinvali allegedly armed with grenades and other explosives, according to the separatist region's administration.

The four have been charged with carrying explosives and crossing the border illegally.

Georgia has accused the separatist administration of "kidnapping" the boys from a village near the de facto border with South Ossetia.

European Union ceasefire monitors also expressed "profound concerns" over the arrest of the youths.

Bokeria said the detention of the boys was "alarming and tragic" and added: "This is part of the security issues we are dealing with".

"The existing security architecture provides no possibility for protecting human rights," he said.

Two similar incidents occurred at the end of October. In the separate incidents, Russian border guards arrested 21 Georgians who had allegedly crossed into South Ossetian-controlled territory.

They were eventually released after talks with Georgian and European officials.

Tensions remain high between Georgia and Russia around 15 months on from the August 2008 war, with accusations regularly flying between Moscow and Tbilisi.

On Tuesday, as both sides prepared to meet for the latest round of talks, Russia's top military commander accused Georgia of rearming.

Nikolai Makarov, chief of the Russian armed forces' general staff, was quoted by news agencies as saying arms sales to Georgia meant the country's military was better armed now than during the August 2008 war.

The Jamestown Foundation: Moscow Offers Helicopter Cooperation to ISAF

http://www.jamestown.org/single/?no_cache=1&tx_ttnews[tt_news]=35715&tx_ttnews[backPid]=7&cHash=3367a7c8b7

Publication: Eurasia Daily Monitor Volume: 6 Issue: 207

November 10, 2009 01:36 PM Age: 10 hrs

By: Roger McDermott

Moscow plans to sell helicopters on a commercial basis to NATO in support of International Security Assistance Force (ISAF) operations in Afghanistan. Sources within the Russian aviation industry indicated that the Alliance is interested in procuring civil transport helicopters to enhance prompt and safe troop and cargo movements in theater. Mikhail Dmitriyev, the Director of the Federal Service for Military-Technical Cooperation (FSVTS), confirmed that NATO representatives have shown interest in the supply of Russian helicopters to Alliance forces in Afghanistan, although this appears to be in its initial phases. Dmitriyev noted that consultations are likely to continue early next year, after which he hoped that following preliminary agreements talks will begin with specific Russian companies (Interfax, October 29).

On November 3 Vyacheslav Dzirkaln the Deputy Director of FSVTS said that large-scale delivery of Russian built transport helicopters could soon commence. He explained that this might also involve contracts with NATO member states on a bilateral basis to upgrade platforms to NATO standards. This boost to NATO-Russia cooperation over Afghanistan is rooted in reported shortages and operational challenges in relation to helicopters. There is some evidence that European and American helicopters are not so well suited to operating in such difficult climate conditions, he explained. A number of NATO members and the Afghan National Army (ANA) use Russian manufactured aircraft in the country, while they have reportedly demonstrated high quality in terms of reliability and endurance combined with the ease of maintenance in mountainous terrain or severe weather conditions. Dzirkaln, referring to the sanctions imposed on Rosoboroneksport by the U.S. State Department during the presidency of George W. Bush, said that although current negotiations do not include military transport helicopters, if these sanctions were lifted it might stimulate such cooperation (Interfax, November 3).

On October 28, Dmitriy Shugayev the Deputy Director of the Rostekhnologiy (Russian Technologies) corporation attended a conference in Brussels for the heads of rear services in NATO countries. During his presentation Shugayev highlighted the difficulties facing the Alliance in supplying helicopters in Afghanistan and that according to the European Defense Agency nine Eastern European ISAF members have about 400 Russian made helicopters in service, and many will be used in Afghanistan. As well as confirming the potential to cooperate in this key area, he suggested that Moscow might also offer to train crews in Russian service centers (RIA Novosti, October 28).

Although this support might be restricted to civil aircraft, Moscow is clearly considering possible military transport helicopters as another mechanism to deepen its cooperation with NATO in Afghanistan. Indeed, such cooperation will dominate the forthcoming NATO-Russia Council in Brussels on December 15-17. Last month, the Russian Ambassador to NATO Dmitry Rogozin told NATO Secretary-General Anders Fogh Rasmussen that Moscow is keen to learn the aims of the new U.S. strategy in Afghanistan and that the Alliance should make practical proposals on future cooperation. Ragozin noted that Russia currently assists NATO in the transit of non-military cargoes for ISAF through the northern distribution network (NDN), participates in joint efforts to train anti-drug personnel, and is ready to assist ISAF, especially in the fields where they experience a severe shortage of military-technical support, such as air transportation and helicopters (ITAR-TASS, October 28).

Dzirkaln explained that cooperation between Russia and NATO has entered a new phase, involving Moscow moving beyond bilateral cooperation with individual members and entering directly into concrete interaction with the structural subdivisions of NATO. Specifically, this relates to upgrading Russian built platforms among NATOs East European members. He added that a common NATO program for adapting Soviet and Russian weapons and equipment to Alliance standards might expand (ITAR-TASS, October 28).

In exchange, Dzirkaln singled out France among the NATO countries with which Russia is successfully developing military-technical cooperation. In particular, we purchase thermal vision devices for some types of weapons and military hardware from French companies. Thus, we buy from France onboard equipment for the Su-30 fighters supplied to India and Malaysia, Dzirkaln recalled. He highlighted French interest in the Krasnopol guided high-precision munitions systems developed at the Tula Instrument-Making Design Bureau, and clearly the ongoing talks on the possible Russian procurement of the Mistral class helicopter carrier is an example of growing naval cooperation. Over the past five years, work was conducted on a bilateral basis with France and Germany in the development and construction of a Mi-26 (Halo) transport helicopter, which included demonstration flights by French pilots. However, this only resulted in Paris and Berlin submitting reports to the relevant NATO committee. Moscow recognizes that such decisions are required at NATO level (Interfax, November 3).

Equally, domestic factors are also at play. On November 2, the Russian Deputy Prime Minister Sergey Ivanov told a meeting of the military-industrial commission in Moscow that the lack of domestic serial production of helicopter engines represented a major problem: The majority of Russian helicopters are equipped with engines made in Ukraine... about 250 engines per year, Ivanov said. Despite this being raised three years ago, Ivanov complained that a solution had been delayed unjustifiably (RIA Novosti, November 2).

Ivanov also identified that another important task is eliminating the technology lag in onboard electronic instruments and precision weapons, which hinders the all-weather and 24-hour capabilities of Russian-made helicopters. He said that the existing pool of helicopters and state aviation is morally and physically obsolete to a considerable degree. In army aviation, modern helicopter systems account for less than 10 percent. Surprisingly, he also revealed that the same situation exists in the aviation of the Federal Security Service (FSB), interior and emergencies ministries. He told the commission, however, that helicopter production had doubled in the past three years, reaching around 200 helicopters in 2009 (ITAR-TASS, RIA Novosti, November 2).

Since ISAF supplies are now intertwined with Russian air and overland access through the NDN, such military-technical cooperation appears realistic. It suits Moscows interests, accessing NATO countries and Alliance level programs to expand its export market and gain vital quid pro quo advanced western technologies urgently needed for its own airpower modernization. Moreover, by offering helicopter-based assistance, Moscow is not only plugging a niche in NATO operations in Afghanistan, but inadvertently recognizing that the Alliance will be there for the long haul and its success is also in Russias national security interest.

Tactical Report: Kuwait: Interest in KA-28 anti-submarine helicopter http://tacticalreport.com/view_news/Kuwait:_Interest_in_KA-28_anti-submarine_helicopter/884Posted on: Tue, Nov 03, 2009

The Kuwaiti Defence Ministry is said to be showing interest in the Kamov KA-28 anti-submarine helicopter. The following 342-word report sheds light on the subject and tells whether there are contacts already between the Kuwaitis and the Russian arms export agency Rosoboronexport on it or not. It also tells whether the Kuwaitis are showing interest in another type of anti-submarine helicopters or not.

Itar-Tass: US Court issues charges in absentia to hackers from Estonia, Moldova, Russia.

http://www.itar-tass.com/eng/level2.html?NewsID=14517703&PageNum=0

11.11.2009,06.59

NEW YORK, November 11 (Itar-Tass) - Federal Circuit Court in Atlanta, GA, has issued charges in absentia to eight computer hackers from Estonia, Moldova and Russia who, according to U.S. investigators, proved able to steal more than $ 9 million with the aid of bankcards over a period of just twelve hours.

Sally Quillian Yates, the United States Acting Attorney for northern Georgia said the hackers stole information on payroll cards issued by the Atlanta branch of the Royal Bank of Scotland, one of the largest British banking institutions.

With aid of the data, the hackers produced 44 fake bankcards, with the aid of which they took away in cash millions of dollars from automatic telling machines in 280 cities of the world.

An investigation of activities of the group broke up the backbone of one of the worlds most sophisticated organizations of hackers, Yates said.

According to the Attorneys Office, five of the malefactors are Estonians, one is a Russian and one, a Moldovan. The nationality of one more member of the group has not been disclosed.

Estonian police have already detained four suspects and the U.S. authorities have started seeking extradition of a certain Sergei Tsurikov, a resident of Estonias capital Tallinn.

RIA: Hackers from ex-Soviet states charged in U.S. card fraud case

http://en.rian.ru/world/20091111/156791778.html

09:2811/11/2009

MOSCOW, November 11 (RIA Novosti) - Eight computer hackers from Estonia, Moldova and Russia have been charged in the U.S. over a mass case of credit card fraud, in which they allegedly stole over $9 million, the U.S. Justice Department said.

The group is accused of taking the cash from ATMs in 280 cities around the world during a period of less than 12 hours on November 8, 2008. The ringleader is being held in an Estonian prison and awaiting extradition to the U.S.

The group reportedly obtained the codes of debit cards used by companies to pay their employees. They then reverse-engineered the PINs of the accounts via encrypted data on the network of the Atlanta-based card processor RBS WorldPay, and produced dozens of fake duplicate cards, which were sent to accomplices in various countries who withdrew the cash.

Acting U.S. Attorney Sally Quillian Yates of the Northern District of Georgia said in a statement: "Last November, in just one day, an American credit card processor was hacked in perhaps the most sophisticated and organized computer fraud attack ever conducted. Today, almost exactly one year later, the leaders of this attack have been charged. This investigation has broken the back of one of the most sophisticated computer hacking rings in the world."

Sergei Tsurikov, 25, from Estonia, Viktor Pleshchuk, 28, from Russia, and Oleg Covelin, 28, from Moldova, along with an unnamed hacker have been indicted in Atlanta on various charges including wire fraud and identity theft.

Four other Estonians - Igor Grudijev, 31, Ronald Tsoi, 31, Evelin Tsoi, 20, and Mihhail Jevgenov, 33 - have been indicted on charges of access device fraud.

BBC: Russia admits police corruption

http://news.bbc.co.uk/2/hi/europe/8353810.stm

Page last updated at 22:21 GMT, Tuesday, 10 November 2009

By Richard Galpin BBC News, Moscow

The Russian government has admitted that parts of the police have been turned into what the interior minister has described as criminal businesses.

It is the most frank admission so far of corruption and other crimes being committed by members of the police.

It came after a senior policeman in southern Russia posted a video on the internet in which he appealed to the prime minister to tackle the problem.

It is the latest in a series of highly embarrassing revelations about police.

Earlier this year a senior police officer went on a shooting spree in a Moscow supermarket, killing three people.

The incident was recorded on security cameras and the video was widely broadcast on Russian TV and on the internet.

Now a serving police officer, Major Alexei Dymovsky, has spoken out in a video, also posted on the internet which has registered more than 700,000 hits in just a few days.

The officer from southern Russia accuses his superiors of forcing policemen to arrest innocent people to ensure monthly quotas are met.

And he says they are paid so little they have no choice but to accept bribes.

Interior ministry pledge

It is very unusual for a policeman to speak out so openly.

And he has clearly had a major impact - holding a packed news conference in Moscow on Tuesday.

He said he wanted to meet the Prime Minister Vladimir Putin to ensure there was a proper investigation to restore the honour and dignity of the police force.

The interior minister has announced that any policeman accused of committing serious crimes will face prosecution.

RIA: Engine failure could be responsible for Tu-142 crash

http://en.rian.ru/crime/20091111/156791003.html

07:1511/11/2009

MOSCOW, November 11 (RIA Novosti) - Engine failure could have caused Friday's crash of a Russian military Tu-142 plane in the Tatar Strait, the chief of the Russian General Staff said on Wednesday.

"The commission will complete the probe and find out," Gen. Nikolai Makarov said.

The exact cause of the crash could be established only after black boxes from the plane are found.

Eleven people were on board the Pacific Fleet plane that went down during a combat training flight on Friday some 20 kilometers (12 miles) off the Tatar Strait, which separates mainland Russia from the Far East island of Sakhalin.

The remains of the plane were located on Saturday morning by several ships and planes at a depth of about 44 meters (144 feet). Fragments of human bodies have also been discovered. They will undergo a forensic medical examination.

Barentsobserver: Anti-submarine planes grounded

http://www.barentsobserver.com/anti-submarine-planes-grounded.4651686-116320.html

2009-11-10

After a Russian military Tu-142 plane crashed on the Far East on Saturday, killing all the eleven crew members on board, Russian navy has temporarily grounded all planes of this type.

The accident happened right before landing at an air base in the far Eastern part of Russia, Izvestia reports. The aircraft crashed into the sea, and all aboard were probably killed immediately. Until the cause of the accident has been explained, all flights with the Tu-142 aircraft have been abolished.

The Tu-142 (NATO name Bear-F) is a maritime reconnaissance and anti-submarine warfare turboprop aircraft that has been in use in the Northern and Pacific fleets since 1975. Only two accidents are known to have happened to this type of air craft earlier, one in 1976 and one in 1984, according to Wikipedia.

- This aircraft is one of our most reliable, says Commander of the Northern Fleet air squadron Aleksander Bukeyev. I have no idea what could have caused the accident. The fact that the weather conditions were good and that the plane was newer than ours, makes it even more incomprehensible.

The Northern Fleets squadron of Tu-142 aircrafts is based in Fedotovo, Vologda Oblast, to the south of Arkhangelsk Oblast.

The Moscow Times: Airline Unhappy With Tupolevs

http://www.themoscowtimes.com/business/article/airline-unhappy-with-tupolevs/389233.html

11 November 2009

The Moscow Times

Moscow-based airline Red Wings, a major operator of Tupolevs Tu-204 jets, grumbled Tuesday about the low quality of the planes and the losses that it incurred because of several emergency landings this year.

We have serious claims about the engines, which were demonstrated by the recent incidents with Red Wings planes, CEO Konstantin Teterin said at a government meeting on air transportation safety. The company incurred losses of 370 million rubles ($12.9 million) during the spring and summer season because of a number of engine failures.

He said the airline, owned by billionaire Alexander Lebedev, wants compensation from the planes manufacturer. Red Wings also had delays of up to 11 months to get spare parts from Tupolev, including windscreens that should be replaced every three months, Teterin said.

If Tupolev is the kind of organization that designs and produces planes just for the sake of [making] planes, they are doing their job, he said. If the planes are produced for air companies, Tupolev should listen to them.

The engines are produced by the Perm Engine Plant, while Tupolev is 90.8 percent owned by the states United Aircraft Corporation.

Tupolev could not be reached for comment Tuesday.

Tu-204 planes operated by Red Wings made emergency landings three times last summer, Gennady Kurzenkov, head of the Federal Air Transportation Agency, wrote in a letter to Tupolev management in September. He threatened to ground the 212-passenger, mid-range jets unless the problems are solved.

The model was developed to replace the Tu-154 and has been produced since 1995.

At the time, Tupolev president Alexei Fyodorov acknowledged that there were problems with the model, and particularly the engines. He said his company was cooperating with Red Wings and Vladivostok-Avia the main operators of the Tu-204 to improve the service.

RIA: Two police officers, civilian injured in S.Russia militant attack

http://en.rian.ru/russia/20091111/156791941.html

09:5011/11/2009

MOSCOW, November 11 (RIA Novosti) - Gunmen have attacked traffic police in the Russian republic of Karachai-Circassia, injuring two officers and a passerby, local police said on Wednesday.

The shooting occurred in the city of Karachayevsk late on Tuesday, police said.

Russia's North Caucasus has seen a surge in militant violence in recent months, with skirmishes and attacks on police and other officials being reported almost daily.

However, the commander of Russia's interior troops said on Wednesday military presence in the region, including in Chechnya, which saw two separatist wars in the late 1990s - early 200s, would not be increased.

Gen. Nikolai Rogozhkin acknowledged the difficult situation, but said it has been "manageable." "All problems have been tackled, bandits have received a proper response," he said.

Incident involving one of Yamadayevs brothers was not simple road accident - relative of former GRU battalion member

http://www.axisglobe.com/article.asp?article=1944

10.11.2009The road accident on November 1, in Moscow suburbs involving one of the survived brothers Yamadayevs, Isa, has been arranged with the purpose of his murder, close relative of the Yamadayevs considers. The members of Yamadauevs family are convinced that attempts to kill Isa, the former member of the Russian military intelligence Chechen battalion Vostok, will continue, online paper Kavkaz uzel reports. One of the relatives believes that Isa Yamadayev escaped from dea