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RUSSIA , one of the RUSSIA , one of the “BRICS”: past, “BRICS”: past, present, future present, future Eric Van Cauwenberge Former lecturer KATHO-HANTAL March – 10 – 2014

Russia one of the BRIC's: past, present, future for int classroomv17

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Russia one of the bricks in several aspects: recent history, structure of the federation and the institutions, government, economics, geo politics

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Page 1: Russia one of the BRIC's: past, present, future for int classroomv17

RUSSIA , one of the “BRICS”: past, RUSSIA , one of the “BRICS”: past, present, futurepresent, future

Eric Van CauwenbergeFormer lecturer KATHO-HANTAL

March – 10 – 2014

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WelcomeWelcome

Goede morgen - WelkomBonjour - BienvenueGood morning - WelcomeGuten Morgen – WillkommenJó reggelt – Isten hozottDzień Dobri – WitamLabas Rytas – Sveiki atvykęBuenos días – Bienvenidosκαλήμέρα - καλωσορίσατε στο Βέλγιο

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WelcomeWelcome

Dobro Jutro – DobrodošliBună dimineaţa – Si bine ati venitдоброe утро – Добре дошлиBuon giorno e benvenuti ai tuttiDobrý den - Vítejte Dobrý deò - Vitame vás Labdien - Laipni lüdzam Günaydin – HoşgeldinizBom dia - Boa vinda Hyvää huomenta – Tervetuloaдоброе утро - Добро пожаловать

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Welcome - TopicsWelcome - Topics

Background – some history (2)Introduction – name (1)Maps (6)The Russian Federation (4)People (3) Government Profile (20)The president and his wife (12)The Presidential Executive Staff (2)FSB (2)Economic Profile (15)

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Welcome - TopicsWelcome - Topics

Gazprom (11)Transneft (2)LUKoil (4)Rosneft (1)Pipelines (6)Russia and the EU (11)Corruption (11)Other slides (8)Sources (6)

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Background - some historyBackground - some history

Defeat of the Russian army in World War I led to the overthrow in 1917 of the 300-year old Romanov Dynasty

The Communists under Vladimir Lenin seized power soon after and formed the USSR

Josef Stalin (1928-53) strengthened Russian dominance of the Soviet Union at a cost of tens of millions of lives. The Soviet economy and society stagnated in the following decades.

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Background – some history (1)Background – some history (1)

General Secretary Mikhail Gorbachev (1985-91) introduced glasnost (openness) and perestroika (restructuring) in an attempt to modernize Communism, but his initiatives inadvertently released forces that by December 1991 splintered the USSR into 15 independent republics – the Soviet flag above the Kremlin was lowered for the last time (dec 25th)

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The Russian FederationThe Russian Federation

Boris Yeltsin won the first democratic presidential elections in June 91. Re-elected in July 1996

Repeated confrontations with the legislature culminated in the dissolution of parliament (Sept 93) and a violent showdown the following month

The powers of the executive were greatly increased by a new constitution (1993)

Election in Dec 93 produced a new parliament dominated by anti-reformists

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The Russian Federation (1)The Russian Federation (1)

Its conservative cast was strengthened by the election (Dec 95)

Parliamentary elections in 99 and 2003 increased the influence of pro-government forces, easing the passage of reform legislation – 2007 the Putin party takes a huge majority (2/3)

V Putin was elected in March 2000 and re-elected in March 2004

A loyal ally, D Medvedev, won the presidential election in March 2008

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The Russian Federation (4)The Russian Federation (4)

Dec 2011 new parliamentary elections: United Russia won the elections (49.32% of the vote), 238 seats (52.88% of the Duma seats) – majority much smaller

Later there was a lot of protest against this resultsV Putin was elected as president (March 4-’12) – 63,60%

of the votes - now for 6 years – again protestsThe most funny ‘independent‘ candidate: Mikhail

Prokhorov - a Russian billionaire, owner of the American basketball team the Brooklyn Nets

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Introduction - NameIntroduction - Name

Conventional long form: Russian Federation Conventional short form: Russia

Local long form: Rossiyskaya Federatsiya: Росс йская Федер ция и́ а́Local short form: Rossiya - Росс яи́

Former Russian EmpireRussian Soviet Federative Socialist Republic

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Map – general mapMap – general map12

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Map – general mapMap – general map13

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Map – surrounding countriesMap – surrounding countries14

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Map in perspectiveMap in perspective15

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The Russian Federation (5)The Russian Federation (5)

17.09.242 square kilometres - 9 time zones , making it the world’s largest country in terms of territory.

Population of 142.500.482 (July 2013 est.) Capital: Moscow (10 million) largest city in Russia1.8 times the size of the USA10th in the ranking of the population number

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People People

Median agetotal: 38.8 years male: 35.8 years female: 41.8 years (2013 est.)

Population growth rate - 0.02 % (2013 est.) - ranking 199thThe population is shrinking by 700.000 people a year –

death rate is double the average for developed countries

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People (1)People (1)

Life expectancy at birthtotal population: 69.85 yearsmale: 64.04 years - female: 76.02 years (2013 est.)

country comparison to the world: 152Total fertility rate

1.61 children born/woman (2013 est.) country comparison to the world: 178Death rate 13.97 deaths/1.000 population (July 2013 est.) country comparison to the world: 10

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People (2)People (2)

Infant mortality rate total: 7.19 deaths/1.000 live births country comparison to the world: 161HIV/people living with HIV/aids 980.000 (2009 est.) - country comparison to the world: 11Etnic groups Russian 77.7%, Tatar 3.7%, Ukrainian 1.4%,

Bashkir-Chuvash-Chechen 1%, other 10.2%, (2010 est.)Literacy (definition: age 15 and over can read and write) total population: 99.7% male: 99.6% - female: 99.6%

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People (3) – the problem of RussiaPeople (3) – the problem of Russia

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Government ProfileGovernment Profile

Government typefederation

CapitalMoscow

Administrative divisions46 oblasts, 21 republics, 4 autonomous okrugs,

9 krays, 2 federal cities

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Government Profile (1)Government Profile (1)

46 Oblasts to compare with a province 4 autonomous okrougs = districts - governor21 autonomous republics - a president,

parliament - a representative in the Duma9 autonomous krays = territories2 federal citiesEach 2 representatives in the federation council

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Government Profile (2)Government Profile (2)

Federal Districts: federalnyje okroega (8)

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Government Profile (2bis)Government Profile (2bis)

1. Central Federal District (Moskou)2. Southern Federal District 3. North-West Federal District 4. Far East Federal District 5. Siberian Federal District 6. Urals Federal District 7. Wolga Federal District 8. North Caucasian Federal District

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Government Profile (3)Government Profile (3)

Federal districts: federalnyje okroega All federal units are grouped under 8 districtsHeaded by the governor-generalNominated by the president - presidential decreeSince May 13 2000 created by Putin to have

more power on internal affairs (terrorism)To reassert federal authority

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Government Government Profile (4)Profile (4)

Independence24 August 1991 (from Soviet Union)

National holidayRussia Day, 12 June (1990)

Constitutionadopted 12 December 1993

Now 20 years

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Government Profile (5)Government Profile (5)

Legal systembased on civil law system

Suffrage18 years of age – universal

Flag descriptionthree equal horizontal bands of white (top), blue, and red

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Branches of power (6)Branches of power (6)29

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Government Profile (7)Government Profile (7)

Executive branchChief of state:

President Vladimir Vladimirovich Putin

Elected on March 4, 2012 (63.6 %)Elected for six years by the citizens on the basis of a

general, equal and direct vote by secret ballot

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Executive branchPrime minister: D Medvedev (former president)

First deputy prime minister: Igor Shuvalov (since May 2008)

GovernmentGovernment

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2012 - They changed of job2012 - They changed of job32

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Government (1)Government (1)

• Executive branchForeign affairs minister: Sergey Lavrov Finance minister: A SiluanovDefence minister: S ShoyguChief of the Government Staff: S Prikhodko

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Government (2)Government (2)

Ensures a financial, credit and monetary policy, a policy in the area of culture, science, education, health, social welfare, ecology, and other spheres of social life.

Is headed by the Prime Minister. It includes the deputy prime ministers and federal ministers. The Government includes federal structures and federal agencies

The Presidential Executive Office: a special body to facilitate the President’s constitutional role

Head S Ivanov

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S Ivanov: chief of staff – old friend of Putin – siloviki connetion of Putin – former FSB

V Volodin: former deputy prime minister – important for the party United Russia

Alexey A Gromov : first deputy chief of staff - former diplomat – former press attache of Putin

The Presidential Executive Office The Presidential Executive Office

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The Presidential Executive Office (1) The Presidential Executive Office (1)

Most of them are from St Petersburg, all served in intelligence or counter-intelligence

They have ties in the ministries (economy, transport, natural resources) the army, the tax police

The political clout is backed by state compagnies with enormous financial resources

Several KGB veterans occupy senior management posts in Gazprom and in Gazprombank

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The Security Council (8)The Security Council (8)

A very broad term: the security of the individual, society and the state in the face of both internal and external threats

Involves priority areas: state security, public safety, socio-economic security and security in the spheres of defence, information, the military and international affairs

Secretary: Nikolai Patrushev (former head FSB)

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The State Council (9)The State Council (9)

Secretary: YuriyTrutnevThe current State Council was established by the

President on September 1, 2000. The council is an advisory body to the Head of State, which deals with issues of the highest importance to the state as a whole

The Council is made up of the leaders (governors and presidents) of Russia’s constituent territories. Other persons may be appointed to the Council at the President’s discretion

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Government Profile (10)Government Profile (10)

Legislative branch Bi-cameral Federal Assembly or Federalnoye Sobraniye:

The Federation Council or Sovjet Federatsii Duma or Gosudarstvennaya Duma

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Government Profile (11)Government Profile (11)

Legislative branch: Federation Council166 seats - two deputies from each subject of the Russian Federation - two from each of Russia’s 83 republics and regions chosen by regional governors and legislative bodies - Chairman: Valentina Matviyenko

Task: "to strengthen federative model of the legal state self-determination of Russia, the unity of its political, social-economic and cultural space”

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Government Profile (12)Government Profile (12)

Legislative branch State DumaSpeaker Sergey Naryshkin

450 seats - elected from party lists in a single nationwide constituency on proportional basis (7 % of the vote) – members elected for 4 yearsElections - last held 4 December 2011 Is mainly a legislative body

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Government Profile - Duma (13)Government Profile - Duma (13)

Party % of votes SeatsUnited Russia 49.6 238Communist Party 19.2 92A Just Russia 13.2 64Liberal Democratic Party 11,7 56

Total 450High turnout of 60%

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Government Profile - Duma (13)Government Profile - Duma (13)44

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Constitutional court meetingConstitutional court meeting

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Putin 60 years old - ProtestPutin 60 years old - Protest

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Protest, one year, after the electionsProtest, one year, after the elections

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The PresidentThe President

The presidency: created in December 1993, when Boris Yeltsin's draft constitution won endorsement in a national referendum.

Yeltsin was the first Russian president in the Russian Soviet Federative Socialist Republic (RSFSR), one of the Soviet Union’s fifteen republics.

V Putin is now presidenthttp://eng.letters.kremlin.ru/send

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The President (1)The President (1)

The position of the president is defined in Chapter 4 of the Constitution of the Russian Federation.

He is the head of state.He is the guarantor of the constitution, civil and human

rights and freedoms.He should protect Russia's sovereignty, independence

and territorial integrity.

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The President (2)The President (2)

He is able to issue decrees.He is commander-in-chief of the armed forces.He conducts the negotiations and signing of inter-national

treaties to ensure Russia’s sovereignty.He is responsible for the national security agenciesHe represents Russia in international relations, conducts

negotiations and signs international treaties and agreements.

He is responsible for the annual budget.

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The President (3)The President (3)

He may veto legislation after it has been passed by the federal legislature.

He determines the composition of the government He is the chairman of the Security Council.His basic state policy guidelines is laid out in a key

document, the annual address to the Federal Assembly.

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The President (4)The President (4)

Born: October 7, 1952 in a workers familyGraduated from Leningrad State University Law School

(1975)1996 Ph D in Economics – Dissertation: “Strategic

Planning of Regional Raw Material Operations in a Market Economy.”

1975 joined the KBG in charge of intelligence abroad

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The President (5)The President (5)

Worked in Germany (Dresden)90-91: advisor of the Leningrad City Council91-96: chairman of the Committee for External

Relations, St. Petersburg Mayor’s office97-98: deputy head of Presidential Administration

(protected by Chubais)

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The President (6)The President (6)

98-99: director of Federal Security Service (FSB)99 (August): secretary of security council99-2000: prime minister99 (December)-2000 (May) acting president2000 (March) elected president2004 (March) re-elected (70%)2007 Named Time magazine's person of the year2012 Re-elected for another 6 years

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The President (recent pictures)The President (recent pictures)56

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The President (recent pictures)The President (recent pictures)

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Always the same facesAlways the same faces

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The Putin familyThe Putin family59

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The Putin familyThe Putin family60

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Putin and the churchPutin and the church

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FSB – managementFSB – management

Federal Security Service (FSB)Federalnaya Sluzhba Bezopasnosti

Director – Alexander BortnikovSpent most of his life / career in St. PetersburgCloser to Medvedev than the Kremlin silovikiNative of Perm (1951) joined KBG in 1975Married, has one son. Army General sine 2006Graduated from the Leningrad Institute for Engineers of

Railroad Transport

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Economic ProfileEconomic Profile

Economy – overviewRussia's adopted a new oil-price-based fiscal rule in 2012More flexible exchange rate policyImproved ability to deal with external shocks, including volatile oil pricesJoined the World Trade Organization (2012)Sought to cement economic ties with countries in the former Soviet space through a Customs Union with Belarus, Kazakhstan and now Ukraine

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Economic ProfileEconomic Profile

Economy – overviewSlowly declining oil prices and difficult attracting foreign direct investment have contributed to a noticeable slowdown in GDP growth ratesLate 2013, the Russian Economic Development Ministry reduced its growth forecast through 2030 to an average of only 2.5% per year, down from its previous forecast of 4.0 to 4.2%.New Russia-led economic bloc called the Eurasian Economic Union

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Economic Profile (1)Economic Profile (1)

GDP – 2319,517 billion euro’sGDP - real growth rate: - 2011: 4,3% – 2012: 3,4% -

2013: 1,3%GDP - per capita

13.140 Euro's - 2013 – rank 77thGDP - composition by sector

Ranking: 7th economy of the world

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GDP pro capita (US dollar)GDP pro capita (US dollar)

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Economic Profile (2)Economic Profile (2)

Population below poverty line:2.7% (2011) USA: 15.1% (2010 est.)

Inflation rate: 6,8% (2013 est.) 149th rankedLabor force - by occupation:

agriculture 7,9%, industry 27,8%, services 62,5% (2012)Unemployment rate: 5,8% (2013 est.) Average Salary: 19.433 rubles - € 525Russia is building pipelines to Europe but much of its

own country has no gas or even plumbing

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Economic Profile (3)Economic Profile (3)

Oil - production 10.44 million bbl/day (2012 est.) 3th

Refined petroleum products - consumption 3.196 million bbl/day (2012 est.) 5th

Oil - proved reserves 80 billion bbl (2013 est.) 8th

Crude Oil exports 4.72 million bbl/day (2012 est.) 2th

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Economic Profile (4)Economic Profile (4)

Natural gas - production 669.7 billion cu m (2012 est.) 2th

Natural gas - exports 196.9 billion cu m (2012 est.) 2th

Natural gas - proved reserves47.8 trillion cu m (2013 est.) 1th

Diamonds35 million carats - worth $1.7 billion (2006)

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Economy Profile (5)Economy Profile (5)

Exports336,17 billion euro (2013 est.) – 9th

Exports – commodities petroleum and petroleum products, natural gas, metals,

wood and wood products, chemicals, and a wide variety of civilian and military manufactures

Exports – partners Netherlands 12.6%, China 6.8%, Germany 6.8%, Italy

6.2%, Turkey and Ukraine (2012)

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Economy Profile (6)Economy Profile (6)

Imports 245,68 billion euro (2013 est.) – 17thImports - commodities machinery, vehicles, pharmaceutical products, plastic,

semi-finished metal products, meat, fruits and nuts, optical and medical instruments, iron, steel

Imports - partnersChina 15.6%, Germany 12.2%, Ukraine and Japan 5.7% (2012)

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Russian GDP evolution (7)Russian GDP evolution (7)72

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Net Government debt (% of GDP)Net Government debt (% of GDP)

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Inflation % change from previous yearInflation % change from previous year

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Unenployment rate (% of labor force)Unenployment rate (% of labor force)

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Russia - the other brics – grow GDPRussia - the other brics – grow GDP

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Economy Profile (8)Economy Profile (8)

CurrencyRussian ruble (RUR)

Exchange ratesRussian rubles per US dollar – 31.8 (2013) – 30.84

(2012) – 30.37 (2010) - 31.74 (2009) - 24.85 (2008) - 25.581 (2007) - 27.191 (2006) - 28.284 (2005), 28.814 (2004), 30.692 (2003)

Governor Elvira NabiullinaRussian rubles per EURO – 50.47

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Some Russian banknotes (9)Some Russian banknotes (9)78

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Russian gas reserves (10)Russian gas reserves (10)79

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Gazprom Gazprom Viktor Zubkov +Alexy MillerViktor Zubkov +Alexy Miller

Biggest employer of Russia (431.000)The world's largest company in terms of natural gas

reserves487 billion m3 sold in 2012Supplies around 1/3 of Western Europe’s gas importsRussian state owns 50 % of the stocksChain of pipelines: Blue Stream, European

stream, North European gas pipeline

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Gas sales (volume bcm)Gas sales (volume bcm)

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Gas production (million tons)Gas production (million tons)

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Gas sales (million tons)Gas sales (million tons)

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Gas sales volumes Europe (bm³)Gas sales volumes Europe (bm³)

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Gas sales volumes Europe (bm³)Gas sales volumes Europe (bm³)

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Gas sales volumes abroad (bm³)Gas sales volumes abroad (bm³)

FSU: Former Sovjet Union countries

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Dependency of Gazprom gas importDependency of Gazprom gas import

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Gazprom and partners (3)Gazprom and partners (3)

Partners: E.ON, BASF, Wintershall Holding, Verbundnetz Gas and Siemens (Germany), GDF SUEZ, EDF and Total (France), Eni (Italy), Botas (Turkey), Fortum (Finland), Gasunie and GasTerra (the Netherlands), DONG Energy (Denmark), Statoil (Norway), OMV (Austria), CNPC and PetroChina (China), GAIL (India), MOL (Hungary), PGNiG (Poland), SPP (Slovakia), Srbijagas (Serbia), Bulgarian Energy Holding (Bulgaria), Kogas (Korea), Mitsui, Mitsubishi Corporation (Japan) and transnational Shell.

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Gazprom – meeting shareholders (4)Gazprom – meeting shareholders (4)89

Viktor Zukov Chairman of the Board of Directors, former First Deputy Prime Minister

Alexy Miller:Chairman of Gazprom's Management Committee

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A new headquarter in BrusselsA new headquarter in Brussels

A Yanovsky, V Chizhov, A Medvedev, Al Romanov , A Kuznetsov, Director of Gazprom’s representative office in Kingdom of Belgium

2012 results - Belgium consumed 16.9 billion m³ of imported natural gas.

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Proven oil reserves (bln ton)Proven oil reserves (bln ton)

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Oil producton Russa (million ton)Oil producton Russa (million ton)

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Winter Games 2014Sochi will host the major quadrennial winter competitions. Several thousand sportsmen, coaches, journalists and over one million spectators from different parts of the world will come in winter 2014Gazprom 2014 program envisaging construction and operation of sports, infrastructure and power facilities in SochiA Miller took the torch

Sochi winter games ‘14Sochi winter games ‘14

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Impressions of SochiImpressions of Sochi

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Nabucco PipelineNabucco PipelineGábor Bercsi Managing Director

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Nabucco West in Hungary (1)Nabucco West in Hungary (1)

Is cancelled!

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South Stream Pipeline – GazpromSouth Stream Pipeline – Gazprom

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South Stream – different optionsSouth Stream – different options98

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North Stream Pipeline - readyNorth Stream Pipeline - ready99

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Pipeline through PolandPipeline through Poland

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TransneftTransneft

Transneft operates one of the largest networks of oil pipelines in the world

The company moves crude oil through more than 70.000 km of pipeline

Transneft operates a transportation network stretching across Eastern Europe and Asia.

About 500 pump stations, and 934 tankersCapable of storing more than 20 million cu. meters of

petroleum product. The company transports about 93% of the oil produced in Russia

President Tokarev Petrovich

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Transneft – pipelines (1)Transneft – pipelines (1)103

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LUKoil LUKoil

One of the world's biggest companies - production of crude oil & gas and refining into petroleum products and petrochemicals. Leader on Russian and international markets in its core business - Employs 150.000 people

Second largest public company in terms of proven oil and gas reserves - 2011-13.4 billion barrels of oil reserve

Founded 1991 – V AlekperovMerger of three former oil companies

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LUKOIL is one of the world's biggest companies for production of crude oil & gas - refining into petroleum products and petrochemicals - 0.8% of global oil reserves - 2.1% of global oil production -reserves 17.3 billion barrels of oil (2012)

Leader on Russian and international markets in its core business - 16.3% of Russian oil production - 16.7% of Russian oil refining

The 2nd largest non-state publicly traded oil company worldwide by proven reserves of hydrocarbons

LUKoilLUKoil

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Every day millions of people in 30 countries of the world buy our products, and use those products to improve the quality of their lives

150,000 people workforceProved The first Russian company to receive full listing on

the London Stock ExchangeLeader among Russian oil companies for openness and

transparencyMerger of 3 compagnies

LUKoilLUKoil

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LUKoil LUKoil

V Alekperov - President of "LUKOIL"Russia, Azerbaijan, Belarus, Belgium, Bulgaria, Croatia,

Cyprus, Czech Republic, Estonia, Finland, Georgia, Hungary, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Turkey, Ukraine, USA (filling stations)

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The leader of Russia’s petroleum industry - ranks among the world’s top publicly traded oil and gas companies

The Company is primarily engaged in exploration and production of hydrocarbons, production of petroleum products and petrochemicals, and marketing of outputs

The state holds 75.16% in the Company - 15% of shares are in free-float - Retail network covers 41 regions of the Russian Federation - Owns 50% of Ruhr Oel GmbH (refineries in Germany)

RosneftRosneftI Sechin (Chairman of Management Board)

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A gas exporting forumA gas exporting forum109

Meeting with the participants in the seventh ministerial meeting of the Gas Exporting Countries’ Forum.

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Eurasian Economic CommunityEurasian Economic Community

Vladimir Putin's Big, Soviet Dream

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Russia the Asiatic gasmarket (1)Russia the Asiatic gasmarket (1)111

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The EU and Russia have a strong trade relationship - Bilateral trade and investments continue to grow rapidly

The EU has been a strong supporter of Russia's WTO membership since the very start of the process to the end of it

Russia joined the World Trade Organisation (WTO) on 22 August 2012 - This accession is important for the EU

Membership will give a major boost to further development of the economic relationship between the EU and Russia

Russia and the EURussia and the EU

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For the first time both entities will be bound by international standards for their mutual trade

Russia 3th trading partner of the EUEU the 1st trading partner of Russia.EU exports to Russia - 2012: €122.5 billionEU imports from Russia - 2012: €196.8 billionTotal trade in goods - 2012: €358 billionEU largest foreign investor in Russia – investments €120

billion - Russian investments in the EU €42 billion (2010)

Russia and the EURussia and the EU

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Russia and the EU - goodsRussia and the EU - goods

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Russia and the EU - servicesRussia and the EU - services

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EU trade relations with RussiaEU trade relations with Russia

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EU countries and investments - RussiaEU countries and investments - Russia

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EU import from RussiaEU import from Russia

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EU export to RussiaEU export to Russia

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EU Trade flows and balance, annual data EU Trade flows and balance, annual data 2003 - 20122003 - 2012

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Trade partners of RussiaTrade partners of Russia

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Trade with Russia (milion euro)Trade with Russia (milion euro)

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Bribery + corruption have become endemicBribery + corruption have become endemic

According to economist Alexandra Kalinina, despite the improved score, corruption in Russia remains “not a problem, but a business.”

Ordinary Russians describe the level has “high” or “very high” - Bribe of survival (Yukos)

Independent experts maintain that corruption consumes as much of 25 percent of Russia’s GD - A World Bank report puts this figure at 48 percent

Corruption has penetrated all levels of government and most other aspects of life in Russia

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Bribery + corruption have become endemicBribery + corruption have become endemic

the 2012 rankings of the other three BRIC countries are much better: Brazil (73rd place), China (80th place) and India (94th place). A notable worsening of this ranking for Russia – from 90th place to 126th – occurred at the beginning of Vladimir Putin’s second term as president -a drop of 36 places in only one year.

Among the crimes referred to as corruption practices are abuse of office, forgery by an official, illegal engagement in business activities, bribery etc.

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Bribery + corruption have become endemicBribery + corruption have become endemic

15% of Russians reported to have paid a bribe in the past 12 months

The average bribe amounted to 9.000 Rubles in 2008: 23.000 Rubles in 2009: 61.000 Rubles in 2010: and 236.000 Rubles in 2011. In other words, the average bribe in 2011 was 26 times greater than the average bribe in 2008, many times the inflation rate for the same period (the Interior Ministry’s Department for Combating Economic Crimes)

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Bribery + corruption have become endemicBribery + corruption have become endemic

The most corrupt spheres in Russia (in terms of household corruption) are healthcare, education, housing and communal services (Sergei Ivanov, the Kremlin chief of staff)

In comparison, independent experts from RBC magazine name law-enforcement agencies (including the State Traffic Safety Inspectorate) as the most corrupt sphere in Russia, followed by healthcare, education, housing and communal services, and social security

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Corruption Perceptions ranking - Corruption Perceptions ranking - Transparency International 2013Transparency International 2013

Rank 127/177Index 36/100

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Over the past 2 years how has the level of Over the past 2 years how has the level of corruption changed?corruption changed?To what extent corrupiton is a problem?To what extent corrupiton is a problem?

1. 9% it decreased - 39% it stayed the same – 37% it increased a lot 2. 79% it’s a serious problem – 13% it’s a problem – 7% it’s a slight problem

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To what extent is the govenment run by a few big To what extent is the govenment run by a few big entities acting in their own interest?entities acting in their own interest?How effective are the fights against corruption?How effective are the fights against corruption?

3. 36% say entirely – 49% say large extent – 12% say somewhat4. 30% say very ineffective - 47% say ineffective – 18% neutral

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77% of the residents felt the political parties were corrupt83% of the residents felt the parlement is corrupt70% of the residents felt the army is corrupt45% of the residents felt the NGO’s are corrupt59% of the residents felt the media are corrupt40% of the residents felt the church institutions are corrupt57% of the residents felt the business is corrupt72% of the residents felt the education system is corrupt84% of the residents felt the judicary is corrupt

What does the public think about What does the public think about corruption?corruption?

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75% of the residents felt the medical and health services are corrupt

89% of the residents felt the police is corrupt92% of the residents felt that the public officials and civil

servants are corruptTo what extent do you agree that ordinary people can

make a difference in the fight against corruption?37% disagree – 19% strongly disagree – 7% strongly agree

- 38% agree

What does the public think about What does the public think about corruption?corruption?

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Like the courts, the mass media are highly dependent on the government. The editorial policies of the Russia’s main TV channels (Channel One, VGTRK, NTV, etc.) as well as radio stations and newspapers are controlled by the Kremlin

Even Russian Public Television, theoretically an autonomous institution, is dependent on the state, since the president appoints its general manager and board of directors

Why corruption can florish in Russia?Why corruption can florish in Russia?

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Mikhail Lesin, Putin’s former information minister, as the new head of Gazprom-Media, Russia’s largest—and de facto state-run—media group, which incorporates several broadcast, print, and online outlets. Lesin’s return to a senior position is no less symbolic than that of Surkov—and says a lot about the Kremlin’s plans for Russia’s few remaining uncensored media

Putin and the mediaPutin and the media

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Putin cartoonPutin cartoon134

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Russia and the financial crisisRussia and the financial crisis07/04/23

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Some cartoonsSome cartoons136

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Blog of Alaksy NavalnyBlog of Alaksy Navalny

Sometimes in prison and releasedA blog is difficult to stop – anti-corruption site: RospilUnited Russia “the party of thieves and crooks” is one of

his sayingsCalled to “protest” against the fraude in the electionsMaybe is able to unite the oppositonJevgenija Tsjirikova enviromental activist is an ally

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Alaksy NavalnyAlaksy Navalny

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OligarchsOligarchs

Oligarch is a synonym of “business magnate” – tycoon = a person who controls a large position of a particular industry

Financed the re-election of Yeltsin in 1996 and get of lot of power

Since July 2008, (financial news agency Bloomberg), Russia's wealthiest 25 individuals have collectively lost $230bn (€ 181bn)

Closely linked to the meltdown in Russia's stock market (RTS index - 71% value), due to the capital flight after Russia invaded Georgia

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Siloviki – powerSiloviki – power

Traditionally an informal name for the heads of “power” ministries i.e. Ministry of Defence,Interior Affairs

Name refers to a clan of former (KGB) and present members of security (FSB) or military services - They came to power during the Yeltsin years

Significant increase in influence during Putin time (the inner circle – Putin’s informal politburo)

They neutralised alternative sources of influence: oligarchs, regional governors, the media, parliament, opposition parties and non-governmental organisations

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The biggest annoyance of the RussiansThe biggest annoyance of the Russians141

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Young Guard (Molodaya gvardiyaYoung Guard (Molodaya gvardiya) ) & & Nashi Nashi

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Frozen Conflicts: Transnistria-Moldova, South-Ossetia, and the Russian-Georgian dispute"- Abkhazia - Nagorno-Karabakh

Now Ukraine –The Krim – referendum – Armed forces - May be independence?

Human rigths in South Caucasus area –Cechnia-DagestanShould we be afraid of Russia?Why is the EU so weak in international politics?What will the USA do?Who is next? What with recognized borders?

Geo-politics of RussiaGeo-politics of Russia

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SourcesSources

The CIA Factbookwww.indexmundi.comwww.russiaprofile.orghttp://news.bbc.co.uk/www.nvcreports.com/

developmentofrussianeconomysincethecollapseofthesovietunioncontrastedwiththeuseconomy.html

http://vladimirputin.4u.ru/www.economist.comhttp://en.wikipedia.org/wiki/Corruption_Perceptions_Indexhttp://stat.wto.org/CountryProfile/

WSDBCountryPFView.aspx?Language=E&Country=RU

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SourcesSources

www.ceriseonline.bewww.fas.org/irp/world/russia/fsbwww.mosnews.com/mn-files - http://en.wikipedia.org/wikiwww.waytorussia.nethttp://ec.europa.eu/education/lifelong-learning-

programme/erasmus_en.htmhttp://www.rferl.org/content/key-players-in-russias-new-

government/24588318.html?s=1http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-

GI-11-001/EN/KS-GI-11-001-EN.PDF

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SourcesSources

Different Belgian newpapers, magazineshttp://www.russiatoday.ru/en/politics/state/www.infoplease.com/ipahttp://www.englishpen.org/writersintranslationhttp://www.newtimes.ru/eng/persons.asp?http://www.tvradioworld.com/region3/rus/http://www.electionworld.org/russia.htmhttp://www.theotherrussia.org/http://ec.europa.eu/trade/creating-opportunities/bilateral-

relations/countries/russia/

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SourcesSources

http://en.wikipedia.org/wiki/Vladimir_Putinhttp://www.kremlin.ru/eng/articles/L_Putina_eng.shtmlhttp://mosnews.com/images/g/billioners.shtmlhttp://en.wikipedia.org/wiki/

Category:Political_parties_in_Russiahttp://government.ru/eng/power/Le Monde Diplomatiquehttp://www.imf.org/external/pubs/ft/scr/2013/cr13310.pdfwww.axisglobe.comRIA Novosty photo archiveshttp://www.imf.org/external/pubs/ft/scr/2013/cr13310.pdf

147

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http://eng.da-medvedev.ru/http://eng.da-medvedev.ru/svetlana-medvedevahttp://eng.special.kremlin.ru/state/administrationhttp://www.council.gov.ru/eng/about/status/http://en.wikipedia.org/wiki/Vladimir_Putinhttp://www.poetinblog.nl/2012/07/kremlin-dit-is-poetin.htmlhttp://www.transparency.org/country#RUShttp://www.transparency.org/cpi2012/resultshttp://russiapedia.rt.com/prominent-russians/politics-and-

society/aleksey-navalny/

SourcesSources

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http://eng.state.kremlin.ru/presidenthttp://eng.kremlin.ru/newshttp://eeas.europa.eu/delegations/russia/documents/

eu_russia/econ_stat_en.pdfhttp://en.rian.ru/photolents/20120521/173587132_2.htmlhttp://www.gazprom.com/f/posts/00/463337/gazprom-

reference-figures-2008-2012-eng.pdfhttp://www.transparency.org/gcb2013/country//?

country=russiahttp://imrussia.org/society/376

SourcesSources