Russia 101216

Basic Political Developments START TREATY

o Senate ready to talk about renewing arms treaty with Russiao Senate Beats Back Critics to Debate Nuclear Treaty With Russia o White House criticizes Republicans over treaty delayo “This isn’t time to damage US relationship with Russia” – congresswoman: “I

am very concerned about the threat that is always directly connected with a failure to sign the START treaty, and that is Iran and the threat of the nuclear capacity of Iran,” Schakowsky told RT in an exclusive interview.

Premier Putin to hold his ninth Q & A session with Russians - Putin’s Q & A session is expected to last for approximately two hours but it’s likely to be longer as usual. Putin broke record last year. He answered 87 questions in more than four hours.

o Putin will answer questions from viewers, listeners on Dec 16 live showo Vladimir Putin to hold televised Q&A session - The question-and-answer

session will begin at noon and will be broadcast by the Rossiya 1 and Rossiya 24 TV channels. It will also be aired by the Mayak, Vesti FM and Radio Rossii radio stations .

o Putin To Field Questions From Russians - His spokesman says Putin was also likely to touch on ethnic tensions that provoked clashes with police in Moscow last week.Personnel changes at the Federal Penitentiary Service - The President signed a decree to release from office and appointment of officers of the Federal Penitentiary Service.

Police in southern Russia detain over 50 to prevent ethnic riots - Over 50 people were detained overnight in the southern Russian city of Krasnodar in a bid by police to prevent race-hate riots, a local police spokesman said on Thursday.

o Police thwart nationalist march in Udmurtia; five detainedo Medvedev praises Moscow police for professional actionso Kremlin official denounces Moscow riots - Russian deputy presidential chief

of staff Vladislav Surkov condemned the recent riots in Moscow in an interview with the Izvestia paper.

o Hoax bomb call causes evacuation of Moscow railroad terminal (Update 1) - Police received an anonymous phone call early on Thursday reporting that a bomb had been planted in the terminal. Experts and sniffer dogs searched the building, but found nothing.

o Mass riots in Russia spurred by anti-reformists - deputy chairman of the State Duma security committee and former First Deputy Attorney General Vladimir Kolesnikov told RBC today.

o Over 1,300 detained in Moscow race-hate riots o Twelve Caucasus natives detained for attacking policemen - Police have

detained 12 natives of the Caucasus near Yugo-Zapadnaya metro station in Moscow’s southwest for attacking three policemen on December 15.

o PROSECUTORS LAUNCH 22 CRIMINAL CASES OVER MASS RIOTS IN MOSCOW - PROSECUTOR GENERAL'S OFFICE

o Two criminal cases opened vs hooligans over Dec 15 crimeso Moscow unrest - thousands arrrested, barely a dozen chargedo Moscow unrest - who was behind Wednesday's disturbances?o Kommersant: The Council of Legislators enters Manezh Squareo Kyrgyz murder suspects describe themselves as 'skinheads' – sourceo Boy, 14, suspected of Moscow racist murder: official

A unique Ukrainian-Tatar partnership against Russia - Most Russians in Crimea have been or are with the Russian naval fleet in Sevastopol on the Black Sea. Many want to secede from Ukraine and join Russia. Moscow is funding them and is also reportedly handing out Russian passports (as in South Ossetia, Georgia). Caught in this dangerous game, Dzhemiliev is clear that Tatars want to remain part of Ukraine. “We want national and territorial autonomy within an independent, democratic and stable Ukraine.”

Turkey, Russia envisage more joint projects - Turkey plans to carry out more industrial and commercial projects with Russia after the two countries have pushed the button to start Turkey's first nuclear power plant project.

Geneva to host 14th meeting on tension prevention in Caucasus Tallinn mayor labeled Moscow 'agent of influence' - Estonia's security police (KaPo)

have branded Tallin mayor and opposition leader Edgar Savisaar Moscow's "agent of influence," in a letter to the country's government, the local Postimees newspaper said.

Accusations fly in EU vote on Russian travel ban - A u-turn by centre-right and centre-left MEPs on whether to seek an EU visa ban on Russian officials linked to the death of lawyer Sergey Magnitsky has prompted accusations about Russian lobbying in the EU parliament.

Banatski Dvor will be opened at beginning of 2011 - Russian Foreign Minister Sergey Lavrov announced in Moscow on Wednesday that the underground gas storage in Banatski Dvor will be opened at the beginning of 2011.

Fresh agreement on CIS free trade zone to be signed next May - Azerbaijani governmental sources say that its signing is scheduled for May 2011.

o CIS entering on final stage of talks on updated treaty on free trade area - The last round of talks on the updated agreement establishing a free trade area in the CIS will be held on December 21, Ukrainian Ambassador to Russia Volodymyr Yelchenko has said.

o Goods turnover between Kazakhstan, Russia and Belarus - $13.5 Medvedev to visit India on Dec 20-22 Russian shipbuilders ask for $100 million to complete frigates for India Sagem and Rosoboronexport to create joint venture for inertial navigation systems UPDATE 2-Trader, bank probe missing grain in Ukraine, Russia Stranded fishermen in Vietnam continue hunger strike Investigators probe into attack on Angarsk vice-mayor

o Attempted murder of Chernyshev, the vice-mayor of Angarsk Mufti killers will be punished – Medvedev

o Mufti murder suspects already identified

o Top Muslim Cleric Shot Dead In Volatile Caucasus o Unknown gunmen kill mufti of North Caucasian region

Two Wounded After Attack On Police Checkpoint In Chechnya Soyuz crew launched into space

o Launch marks decade of missions - Russia's Dmitry Kondratyev, Nasa astronaut Catherine Coleman and the European Space Agency's Paolo Nespoli of Italy rode into space on the Soyuz TMA-20, which plans to dock at the orbiting laboratory on Friday.

Ex-head of Sayano-Shushenskaya plant charged with safety violations o Sayano-Shushenskaya HPP former chief brought to justice

Russian Press at a Glance, Thursday, December 16, 2010 o Between 800 and 1,200 people were detained on Wednesday evening across

Moscow as Russian nationalists clashed with internal migrants from the North Caucasus. The operation was aimed at preventing another mass riot following the violence on Manezh Square on Saturday.(Kommersant, Vremya Novostei, Vedomosti, Moscow Times, Nezavisimaya Gazeta, Rossiiskaya Gazeta, Izvestia)

o The Foreign Ministry accused the UK of "paranoid spymania" on Wednesday and hinted that the arrest of a Russian aide to a member of parliament could set back efforts to improve relations with London.(Moscow Times)

o Russian President Dmitry Medvedev demanded that Foreign Intelligence Service (SVR) officials take heed of the WikiLeaks scandal and prevent any leak of secret Russian data.(Rossiiskaya Gazeta)

o The Finance Ministry plans to deprive small businesses of the simplified tax rules they currently enjoy in a bid to increase state finances.(Vremya Novostei)

o The Economic Development Ministry has adjusted its forecast for Russia's social and economic development for 2011-2013.(Vedomosti)

o The verdict announcement for the case against former Yukos CEO Mikhail Khodorkovsky and his business partner Platon Lebedev was postponed on Wednesday by two weeks. Judge Viktor Danilkin gave no explanation for the delay.(Vremya Novostei, Moscow Times, Vedomosti, Nezavisimaya Gazeta)

o The 2010 annals of corruption stories took a creative twist this week when the public learned that Moscow's metro chief is also a talented inventor.(Moscow Times)

o Muslim religious leader Anas Pshikhachev, the key ideological fighter against local Wahhabis, was shot dead in Kabardino-Balkaria.(Kommersant)

o The Transportation Ministry does not think road construction expenses are too high. The estimated cost of one meter of the planned Moscow-St. Petersburg toll road exceeds 1.18 million rubles ($38,400).(Nezavisimaya Gazeta)

o The Caspian Pipeline Consortium agreed on Wednesday to invest $5.4 billion to double the pipeline's annual capacity to almost 70 million tons.(Moscow Times)

o Krasnodar Governor Alexander Tkachyov fired a senior regional official on Wednesday over the gruesome murder of 12 people, including four children, in the local village of Kushchyovskaya .(Moscow Times)

o Russia's top military officials have decided to increase the number of contract servicemen in the armed forces, despite earlier plans to cut numbers.(Vedomosti)

o The United States will not oust Russia from India's armaments market, but New Delhi expects concessions from Moscow on nuclear issues.(Nezavisimaya Gazeta)

o There were more reported thefts of the Honda CR-V crossover than any other car, reports from the largest Russian insurance companies show. Mitsubishi Lancer took second place, and Mazda 3 came third.(Rossiiskaya Gazeta)

Russian man bashed for bad driving - A Russian man has been bashed by a dozen drivers after his reckless driving caused a 16 car pile-up in Moscow.

Chechen politicians visit L-A - A delegation from the Parliament of Chechnya, a republic of the Russian Federation, toured Lewiston-Auburn on Wednesday as part of their visit to learn about American-style local government.

Russian educators get tips in Oak Ridge - Visit focuses on teaching people with disabilities

Russia to retrieve control over uranium - In turn, Russia is ready to write off 97.8% of the Mongolian debt, which is $172 million, and issue a new loan of $125 million.

National Economic Trends Industrial Output Jumps - Production rose an annual 6.7 percent, compared with 6.6

percent in the previous month, the State Statistics Service said Wednesday. Russian Economy Ministry Cuts 2010 GDP Forecast (Update1) - Russia’s recovery from

last year’s 7.9 percent contraction was hindered by a record heat wave, which hobbled agricultural output, forced some manufacturers to halt production and crimped consumer demand. The economy will be able to fully overcome its "crisis contraction" by the end of next year, Klepach said.

Russia May Produce 4.5 Million Tons of Poultry, Interfax Says

Business, Energy or Environmental regulations or discussions Russian Corruption Hurting Stock Prices, Micex’s Chief Says New York, London Exchanges Seek Moscow Tie-Up, Micex Chief Says Polyus Gold, Rosneft, Sberbank: Russian Equity Market Preview Russian Stocks Snap Three Days of Gains on Crude, European Debt Floating-Rate Debt Favored as Inflation Quickens: Russia Credit Boeing May Win $5 Billion Order From Aeroflot, Vedomosti Says Aeroflot to buy 20 long-haul Boeings RUSAL sees spot aluminium at $2,400-2,500/T in 2011 Uralkali Said to Be Near Accord to Buy Potash Producer Silvinit Russia: Putin advised of potash producers' merger Norlisk Nickel: "We own the Honeymoon Well project" Trans-Siberian Gold production start pushed back DJ Eurasia Mining: Monchetundra License Extended To December 2012 Siemens is expanding in the Russian financial market - Siemens intends to acquire the

Russian leasing finance company delta of the managed by Delta Private Equity Partners, U.S. Russia Investment Fund.

Sberbank reportedly interested in bidding for Volksbanken AG's Eastern Europe unit Interview with VTB's CEO VTB hires three bankers for corporate and investment team The Moscow city government will spend 200 billion rubles ($6.5 billion) a year on

transportation infrastructure starting in 2011, will announce $6 billion of tenders for goods and services next year, and welcomes foreign investors, Mayor Sergei Sobyanin said Wednesday. (Bloomberg)

VTB Group hopes to gain control of Bank of Moscow in the first half of 2011, RIA-Novosti reported. (Bloomberg)

Tatneft said Wednesday that nine-month profit slumped 35 percent on taxes and foreign exchange losses, with net income falling to 30.4 billion rubles ($989 million) from 46.4 billion rubles, and sales rose 24 percent to 338 billion rubles. (Bloomberg)

The inflation rate will be 8.3 percent to 8.5 percent this year, compared with an earlier government forecast for a 7 percent to 8 percent pace, Deputy Economic Development Minister Andrei Klepach said Wednesday. (Bloomberg)

DRB-Hicom, a Malaysian auto and financial services group, signed an provisional agreement with KamAZ to assemble and distribute its right-hand drive trucks, the Business Times reported Wednesday. (Bloomberg)

Gazprom chief Alexei Miller said a natural gas pipeline to China might cost $14 billion to build, Interfax reported Wednesday. (Bloomberg)

Activity in the Oil and Gas sector (including regulatory) Gas transport tariffs to rise 12.5% in 2011 - The Federal Tariff Service (FTS) plans to

raise the tariff that Gazprom charges independent producers for gas transportation by 12.5%, an official told Interfax.

Rosneft, Calik agree 50/50 JV for bunkering opso Russia, Turkey could agree Samsun-Ceyhan parameters by mid-March - Sechino Turkish, Russian firms sign oil cooperation deal - Calik Holding and Rosneft,

Russia's state oil company, have agreed to establish a partnership company for oil trade in Turkey and the Mediterranean.

Rosneft President sees foreign partner by 2014-Ifax - Rosneft President Khudainatov says firm undervalued ; Needs 2-3 years before attracting strategic foreign partner

Lukoil president signs cooperation deal with Ivano-Frankivsk governor Russian-Ukrainian joint venture on gas extraction to give profit to both Russia's Sakhalin–1 Natural Gas Development Rosneft, Lukoil keen to explore oil, gas in India Caspian pipeline capacity to rise

o CPC in $5.4Bln Bid To Double Capacity o CPC to double capacity - but where will the oil go? - A signing ceremony in

Moscow on Wednesday saw the Caspian Pipeline Consortium approve a plan to double the capacity of its oil route from Kazakhstan to Novorossiisk on the Black Sea, depiste some confusion over where the extra crude will go from there, reports Platts.

Gazprom Gazprom gets 50% of Bulgarian South Stream gas pipeline JV

Gazprom reduces debt load in 2010 versus late 2009 Gazprom CEO provides capex estimates for Altai export pipeline to China

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Full Text Articles

Basic Political Developments

START TREATY

Senate ready to talk about renewing arms treaty with Russia

http://www.washingtonpost.com/wp-dyn/content/article/2010/12/15/AR2010121507471.html

By Mary Beth Sheridan and Felicia SonmezThursday, December 16, 2010

After months of wrangling over the future of the U.S. atomic-weapons complex, the Senate voted Wednesday to take up a new nuclear arms-reduction treaty with Russia, opening debate on a pact that President Obama regards as critical to his foreign-policy agenda.

The Senate decided 66 to 32 to proceed, far more than the simple majority required. But the roll call was seen as somewhat of a proxy for the final vote, when the New Strategic Arms Reduction Treaty (START) will need a supermajority of 67 votes to pass.

Treaty supporters were heartened to get the vote of Sen. John McCain (Ariz.), an influential Republican who has been courted by the White House, as well as those of eight other Republicans. New START needs at least nine Republican votes for ratification.

But it will have to survive a gantlet of proposed amendments in coming days, many of which could effectively kill the treaty. Key Republicans rebuked the Senate leadership for squeezing the debate into the waning days of the lame-duck session, with one calling it a "last-minute Christmastime stunt."

Sen. John F. Kerry (D-Mass.), chairman of the Foreign Relations Committee, said that as long as the legislative process proceeds correctly, "I believe we will get additional votes" to pass the treaty.

The White House has characterized New START as critical to U.S. national security, and it has won the support of every living secretary of state, as well as numerous current and retired military officers. Ratification would be one of Obama's main foreign-policy achievements.

The treaty would cap deployed long-range warheads at 1,550 each for the United States and Russia, a reduction of up to 30 percent. It would also reestablish a 15-year-old system in which

each country inspects the other's nuclear stockpile, which U.S. military officials consider a guarantor of stability. A similar system ended last year when the START 1 treaty expired.

Treaty opponents say they want to ensure that the Obama administration carries through on its promise to spend billions more on upgrading the aging American nuclear complex. Critics also worry about the pact's possible effect on the development of a U.S. missile-defense system. And some believe that the Russians will cheat.

Sen. Jon Kyl (Ariz.), appearing with 11 other Republican senators, told reporters that it was "not a good idea" to call up New START for debate before the Senate votes on funding the government in 2011: "There are very important ramifications [of the treaty] that need to be thoroughly considered with appropriate amendments."

Earlier, Sen. Jim DeMint (R-S.C.) had threatened to postpone consideration of the treaty by forcing it to be read in its entirety on the Senate floor. The treaty, with annexes, exceeds 300 pages.

His comment brought a barrage of criticism from Democrats and the White House. "This is a new low in putting political stunts ahead of our national security, and it is exactly the kind of Washington game-playing that the American people are sick of," White House press secretary Robert Gibbs said.

But after the Senate voted to open debate, Minority Leader Mitch McConnell (R-Ky.) said, "Our view is that it is not essential" to read the document on the floor.

Democrats rejected the argument that there wasn't enough time to consider New START, noting that similar treaties had been concluded in a few days in past decades. At a news conference, Kerry noted that votes on this treaty had been postponed several times already at Republicans' request. A Kerry aide heaved two volumes the size of Manhattan phone books onto a dais; they were the questions senators had submitted on New START.

"Nine hundred questions were filed and asked and answered by the administration," Kerry said. Putting off consideration of the treaty until next year would be "a recipe for endless delay on a matter of enormous national security significance," he said.

Democrats acknowledged, however, that it would be harder to pass the treaty next year. Because of Democratic losses in the November midterm elections, passage would require at least 14 Republican votes in the next Congress.

sheridanm@washpost.com sonmezf@washpost.com

Senate Beats Back Critics to Debate Nuclear Treaty With Russia http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=akCjlR334i3U

By Viola Gienger and Laura Litvan

Dec. 16 (Bloomberg) -- The U.S. Senate is scheduled to begin debate today on ratification of a nuclear arms reduction treaty with Russia, after turning back Republican opponents’ objections and appeals for a delay until next year.

The 66-32 vote yesterday signals how narrow a majority President Barack Obama and his Democratic Party may muster for the treaty, which requires at least 67 votes for approval. Senator Evan Bayh, an Indiana Democrat, was absent for the vote and has supported the treaty.

Senate Majority Leader Harry Reid, a Nevada Democrat, said the chamber will debate the New Strategic Arms Reduction Treaty, or New START, at the same time as it considers an omnibus spending bill, a workload most Republicans say is too ambitious. Still, Senate Republican leader Mitch McConnell of Kentucky agreed to the Democrats’ plan to start debate and said it was “not essential” to slow consideration by requiring a reading of the arms treaty on the Senate floor.

White House press secretary Robert Gibbs yesterday accused Senator Jim DeMint, a South Carolina Republican of using a “political stunt” by planning to force a reading of the entire treaty text in an attempt to delay a vote.

The treaty is central to Obama’s attempt to reset U.S. relations with Russia, and ratification would be a victory on one of his top foreign policy priorities. The administration and Senate leaders have said they have enough support to get the two-thirds majority needed to approve ratification -- 67 votes, if all 100 senators are present and voting.

Calls for Delay

A dozen treaty opponents lined up behind Arizona Senator Jon Kyl at a press conference to lambaste Reid’s decision to proceed on the treaty and the spending bill simultaneously. Most favored delaying until next year, with some calling for renegotiating elements of the treaty.

“Both of those deserve the full focus and attention of the American people,” Kyl said.

Critics say the treaty limits U.S. options for developing missile defenses, a project Russia has opposed. They also argue that the new pact’s verification standards aren’t strong enough and that Obama hasn’t made enough assurances that the existing U.S. arsenal will be adequately maintained.

The opponents are up against current and former U.S. military commanders and Cabinet secretaries, including Henry Kissinger and Colin Powell, who have urged that the Senate support ratification.

Indiana Senator Richard Lugar, the top Republican on the Foreign Relations Committee and a treaty supporter, said the Senate has had months, including a dozen open and classified hearings, to consider the agreement.

Support From Military

Military commanders and defense and nuclear officials have testified that the accord doesn’t limit missile-defense options and that it improves the ability to verify Russia’s adherence to agreed weapons thresholds. The Obama administration also has cited its planned increase in spending for modernizing the U.S. nuclear arsenal to more than $80 billion over 10 years.

“Failure of the U.S. Senate to approve the treaty would result in an expansion of arms competition with Russia,” Lugar said in a statement. “With all that we need to achieve, why would we add to our problems by separating ourselves from Russia over a treaty that our own military wants ratified?”

Questions and Answers

Foreign Relations Committee Chairman John Kerry, a Massachusetts Democrat, brought two 3-inch thick notebooks to a press conference after Kyl’s. The books contained 900 questions from lawmakers with the administration’s answers.

“We should stay here as long as it takes to get this treaty ratified,” Kerry told reporters at the briefing. “And we are prepared to do so.”

Tennessee Republican Bob Corker, a member of the Foreign Relations panel, said that even though he voted against proceeding to consideration, he plans to support ratification if there is a “full and open debate” and the resolution isn’t weakened in the process.

Democrats control 58 votes in the 100-seat Senate until next month, when Republicans will have five more seats as a result of November’s midterm elections.

Russian lawmakers are awaiting U.S. Senate action before proceeding to their own ratification vote. Obama and Russian President Dmitry Medvedev signed the accord in April.

The treaty limits each side’s strategic warheads to no more than 1,550, from 2,200 allowed previously, and sets a maximum of 800 land-, air- and sea-based launchers. Each of the last three arms-reduction treaties was ratified with more than 90 votes. The previous treaty expired in December 2009.

To contact the reporters on this story: Viola Gienger in Washington at vgienger@bloomberg.net; Laura Litvan in Washington at llitvan@bloomberg.net.

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

Last Updated: December 16, 2010 00:01 EST

White House criticizes Republicans over treaty delay

http://rt.com/news/white-house-republicans-treaty/

Published: 16 December, 2010, 07:03

The US Senate has agreed to take up the ratification of a new nuclear arms reduction treaty between Moscow and Washington.

On Wednesday the Senate voted 66-32 to begin debate on the Strategic Arms Reduction Treaty, with a possibile final vote on Thursday.

This comes after White House press secretary Robert Gibbs attacked Senate Republicans for delaying ratification of the new START nuclear disarmament treaty with Russia. Republicans have called to slow down ratification efforts so they might learn more about the treaty.

Obama has made ratification of the treaty a top priority in foreign policy. Some Republican lawmakers argue that there is not enough time to ratify the treaty before the end of the year. There are also fears that they could attempt to delay its approval by pushing it into next year.

Earlier, however, Senate Majority Leader Harry Reid assured the press that the treaty has secured the 67 votes needed for ratification and that the Senate would begin debating the treaty as soon as it finalizes the bill on tax cuts.

According to Ivan Eland from the Independent Institute based in Washington DC, the treaty has simply fallen victim to political bargaining on Capitol Hill.

“The Republicans have been dragging their feet,” he said. “What they have basically been saying, I think, is that they want to up the price of the treaty, see what they can get.”

”Of course, Obama has to give them something because he is up against the wall,” Eland added. “If the treaty gets postponed until the new session of Congress, more Republicans will take office after the election results, then, of course, he will have even more trouble ratifying it, it will be kicked way down the road. So, I think he has got to do it, now or never.”

Tom Collina from the Arms Control Association believes that the treaty needs to be passed, as it is vital to both countries’ national security.

“It is a key part of the US-Russian relationship and we are building that relationship and it is important for every national security issue facing both countries from stopping the spread of nuclear weapons to countries like Iran and also to building greater cooperation to prevent terrorist acquisition of nuclear weapons,” he said. “It is a huge part of the reset in US –Russia relations and really has to get passed this year.”

“This isn’t time to damage US relationship with Russia” - congresswoman

http://rt.com/news/start-damage-relationship-congresswoman/

Published: 16 December, 2010, 10:12

US Congresswoman Jan Schakowsky believes ratification of the START deal with Russia is necessary, given the current security challenges the US is facing.

“I am very concerned about the threat that is always directly connected with a failure to sign the START treaty, and that is Iran and the threat of the nuclear capacity of Iran,” Schakowsky told RT in an exclusive interview.

“Russia agreed with the United States and the rest of the international community that Iran is a threat, and went along with the sanctions against Iran. This is not the time for the United States to degrade our relationship with Russia over a treaty that does deal with nuclear arms and nuclear disarmament. We certainly don’t want to damage our relationship. Of course we’ve had secretaries of state of other, Democratic and Republican administrations, pointing out how incredibly important this treaty is, how we have to move together along with Russia and this nuclear disarmament agreement,” she maintains.

Congresswoman Schakowsky said she was worried about how the ongoing fight between the Republicans and the Democrats threatens the issue of START ratification.

“[Republican Senator] Mitch McConnell said that his goal was to defeat Barack Obama. My concern is that that goal, that aim is bleeding over into both domestic and foreign policy. But this is something that should transcend the issue, any of the political issues. This is so important,” Schakowsky continued.

“The world is getting smaller. The United States absolutely needs to be part of an international community that looks for areas of agreement that work hard to bring those alliances as broadly as possible together. We still have our troops around the world. Wars continue. We can’t afford to burn any bridges,” she said.

Premier Putin to hold his ninth Q & A session with Russians

http://www.itar-tass.com/eng/level2.html?NewsID=15784298&PageNum=0

16.12.2010, 03.55

MOSCOW, December 16 (Itar-Tass) - Russian Prime Minister Vladimir Putin will hold his ninth annual Q & A session with the people of Russia on Thursday, December 16.

A special program titled “A Conversation with Vladimir Putin, Continued” will go on air on the Russia 1 and Russia 24 television channels at midday on Thursday. The Mayak and the Voice of Russia radio stations will also broadcast the program live.

The main studio from which the prime minister is going to answer questions will be located in the Gostinyi Dvor building near the Kremlin.

The government press service reports that this year the Russians are showing more interest in dialogue with Vladimir Putin than in 2009.

“The interest is higher than it was in 2009, though at that time it was also high,” Putin’s press secretary Dmitry Peskov told Itar-Tass. He added that Putin had already received more than 600,000 questions and that their number kept growing.

Peskov said that the most burning issues included salaries, the living standards, housing, pensions and social benefits. “Some questions concerned inter-ethnic strife,” Peskov went on to say. According to him, questions are coming from all sorts of people. Young people usually send SMS messages while the older generation prefers putting questions by phone.

Russians also pose their questions on the www.moskva-putin.ru website. The most frequent questions concern changes of retirement age, a possibility of using the maternal capital for children’s medical treatment and employment in one-industry towns. The Russians also worry that the financing of the 2018 World Football Cup will produce a negative impact on the economic and social situation in Russia.

Peskov said that Moscow was traditionally leading by the number of questions. Quite unexpectedly, the Krasnodar territory is second, and the Rostov and Moscow regions come third. Putin goes over most questions personally.

Citizens will be able to put questions to the prime minister from the studio, by telephone and during live-ins with Russian cities and villages. This year, the residents of the village of Ivanino, the Vladimir region, will be able to talk to Vladimir Putin. Last summer, Ivanino suffered from wildfires. The Russian prime minister was the one who headed a campaign against forest fires in the hot and dry summer of 2010. Putin talked to the fire victims and personally monitored the construction of new homes for them.

One of the live-ins will be with Astrakhan, the Volga region. Putin went there in April 2010. He visited an oil platform, chaired a conference on oil industry and saw a surgery unit of the regional clinical hospital.

Putin will also be able to talk to the people of Chita where he stopped late in August when he was driving his yellow Lada Kalina Sport car on the Amur highway.

The geography of Putin’s “hot line” has always been vast. The southernmost points were Botlikh in Dagestan, Grozny and Kaspiysk; the northernmost locations were Murmansk and Vorkuta, the easternmost were Yuzhno-Sakhalinsk, Khabarvosk and Vladivostok, and the westernmost were Kaliningrad and Baltiysk.

People whom Putin met during his numerous trips across Russia will join him in the studio on Thursday. They include doctors, teachers, workers and servicemen.

“They are just ordinary people from regions whom Putin has already met,” Peskov explained.

Putin’s Q & A session is expected to last for approximately two hours but it’s likely to be longer as usual. Putin broke record last year. He answered 87 questions in more than four hours.

To ask your question, please call 8-800-200-40-40, send an SMS to number 04040 or post it on the www.moskva-putin.ru website.

December 16, 2010 09:29

Putin will answer questions from viewers, listeners on Dec 16 live showhttp://www.interfax.com/newsinf.asp?id=209573

MOSCOW. Dec 16 (Interfax) - Prime Minister Vladimir Putin will answer questions from listeners and viewers on a live show on Thursday, December 16.

"There will be a special live program 'Talking to Vladimir Putin. Continued' at 12:00 p.m. Moscow time on December 16 on the channels Rossiya, Rossiya 24, Mayak, Vesti FM and Radio Rossii," the federal TV channels announced on Sunday.

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Vladimir Putin to hold televised Q&A sessionhttp://en.rian.ru/russia/20101216/161795829.html03:41 16/12/2010

Russian Prime Minister Vladimir Putin will answer questions from the nation during his annual Q&A session on Thursday.

During his ninth live phone-in entitled A Conversation with Vladimir Putin — Continued, the premier is expected discuss xenophobia, pensions, dilapidated housing, kindergartens, gasification and the 2018 World Cup.

The question-and-answer session will begin at noon and will be broadcast by the Rossiya 1 and Rossiya 24 TV channels. It will also be aired by the Mayak, Vesti FM and Radio Rossii radio stations .

Questions may be submitted by telephone, via the Internet or by text message, and will be registered until the end of the live broadcast. The Focus of past Q&A sessions has generally been on social problems.

Last year's Q&A session was held on December 3, 2009. It took Putin slightly more than four hours to answer the more than 90 questions given to him.

MOSCOW, December 16 (RIA Novosti)

Putin To Field Questions From Russianshttp://www.rferl.org/content/putin_russia_questions/2249754.html

December 16, 2010 Prime Minister Vladimir Putin will field questions from Russians today during a TV broadcast that has become an annual event.

Putin is expected to highlight Russia's recovery from the worst economic crisis in a decade, with 3.8 percent growth in 2010.

His spokesman says Putin was also likely to touch on ethnic tensions that provoked clashes with police in Moscow last week.

His aides, however, say there is little chance Putin will signal if he will run again forpresident in 2012.

Personnel changes at the Federal Penitentiary Service

http://kremlin.ru/acts/9829

December 16, 2010, 09:00The President signed a decree to release from office and appointment of officers of the Federal Penitentiary Service.Full text of the Decree:1. To release Major General of Internal Service Viktor Alekseevich Malkov from the post of Chief of the Federal Penitentiary Service of the Republic of Mordovia.2. To appoint:lieutenant colonel of internal service Andrey Leonidovich Vinogradov - the chief of the Federal Penitentiary Service in the Vladimir region;colonel of internal service Oleg Simchenkov - head of the Federal Penitentiary Service of the

Republic of Mordovia.3. This Decree shall enter into force upon signature.

Police in southern Russia detain over 50 to prevent ethnic riotshttp://en.rian.ru/russia/20101216/161800528.html11:51 16/12/2010

Over 50 people were detained overnight in the southern Russian city of Krasnodar in a bid by police to prevent race-hate riots, a local police spokesman said on Thursday.

"More than 50 people were taken to police stations for public order offences," the spokesman said, adding that a number of weapons, including knives, axes and traumatic guns were seized.

Police were on alert on Wednesday in anticipation of a planned unsanctioned public protest against the death of football fan Yegor Sviridov, 28, in a brawl in Moscow with migrants Russia's mainly Muslim North Caucasus region last week.

Demonstrators were expected to gather at the city's Kuban stadium, where a wreath laying ceremony was planned in honor of Svirdov. Police also arrested youths who tried to convene in other parts of the city.

"Police clamped down on any attempts to destabilize the situation and provoke a conflict; they prevented fights and mass disturbances of public order," Ilya Shakalov said.

The killing of the fan provoked race-hate riots and attacks on migrants in Moscow and St. Petersburg over the weekend. In Moscow, a 5,000-strong crowd of nationalists and football hooligans clashed with police near Red Square.

Police detained over 1,300 people in the capital on Wednesday amid fears of fresh riot outbreaks.

KRASNODAR, December 16 (RIA Novosti)

12/16 12:14   Police thwart nationalist march in Udmurtia; five detained

http://www.interfax.com/

Medvedev praises Moscow police for professional actions

http://www.itar-tass.com/eng/level2.html?NewsID=15784307

16.12.2010, 04.06

MOSCOW, December 16 (Itar-Tass) - Russian President Dmitry Medvedev has praised the Moscow police for its professionalism in preventing violence in the capital on Wednesday, December 15.

“Yesterday, the Moscow police acted professionally. They need some rest. You need it too. Good night,” Medvedev wrote in his twitter in the Internet on Thursday.

Viktor Biryukov, the press service chief of the Moscow Interior Department, said the Moscow police had detained about 800 people in the Russian capital on Wednesday, December 15, in a bid to thwart unlawful actions. He said police had prevented clashes among groups of young people and that the situation in Moscow was under control.

Moscow Mayor Sergei Sobyanin said police would harshly suppress any manifestations of violence in Moscow streets. He also urged “hot heads” not to yield to provocations.

Kremlin official denounces Moscow riotshttp://en.rian.ru/russia/20101216/161797666.html08:00 16/12/2010

Russian deputy presidential chief of staff Vladislav Surkov condemned the recent riots in Moscow in an interview with the Izvestia paper.

The Russian capital saw its biggest public disturbances for almost a decade on Saturday as a 5,000-strong crowd of nationalists and football hooligans clashed with police near Red Square. Rioters also attacked people from the country's North Caucasus region in protest against the death of football fan Yegor Sviridov in a brawl with North Caucasus migrants.

"Disorders threatening Muscovites' lives and attacks on police cannot be justified in any way. Neither can the murder of Yegor. Those who killed him should be in prison," Surkov told Izvestia.

At least 800 people were arrested in central Moscow on Wednesday evening as police held a massive operation to prevent further race-hate riots. Reports had earlier said that nationalists and migrants from Russia's North Caucasus were planning to clash. Many of those detained were in possession of knives and rubber bullet guns.

The official called for interethnic harmony in Russia. "This country is a common home for all our nationalities," he said.

MOSCOW, December 16 (RIA Novosti)

Hoax bomb call causes evacuation of Moscow railroad terminal (Update 1)http://en.rian.ru/russia/20101216/161796962.html

06:20 16/12/2010

Moscow's Kievsky Rail Terminal was evacuated early on Thursday following a hoax bomb threat, police said.

Police received an anonymous phone call early on Thursday reporting that a bomb had been planted in the terminal. Experts and sniffer dogs searched the building, but found nothing.

"The anonymous [bomb] reports have not been confirmed. The train station is now operating as normal," a police spokesman said.

Police earlier told RIA Novosti that some 15 hoax bomb reports had been registered in the Russian capital on Tuesday.

At least 800 people were arrested near the Kievsky terminal on Wednesday evening as police held a massive operation to prevent new race-hate riots. Many of those detained were carrying knives and rubber bullet guns.

Some 5,000 nationalists and football hooligans clashed with police near Red Square on Saturday. Rioters also attacked dark-skinned internal migrants from the country's North Caucasus region.

President Dmitry Medvedev has called the disorder, which was triggered by the death of a football fan in a brawl with migrants, a threat to the stability of the Russian state.

MOSCOW, December 16 (RIA Novosti)

Mass riots in Russia spurred by anti-reformists

http://www.rbcnews.com/free/20101216105219.shtml

      RBC, 16.12.2010, Moscow 10:52:19.Mass riots in Moscow have been caused by the actions of both domestic and foreign forces' interest in Russia's disintegration and the weakening of the country's position on the international arena, deputy chairman of the State Duma security committee and former First Deputy Attorney General Vladimir Kolesnikov told RBC today.

      "This is a result of steps taken by forces that are neither interested in the continuation of reforms announced by the president, including in the judicial and law enforcement systems, nor in Russia's stronger role in the CIS," Kolesnikov explained. According to him, all of these

'fundamental changes' have disturbed many people, and "those people are trying to sabotage Russia by presenting it as underhanded," the legislator stated.

      He concluded by asserting that Russia must persist in its reforms.

Over 1,300 detained in Moscow race-hate riotshttp://en.rian.ru/russia/20101216/161798914.html

10:06 16/12/2010MOSCOW, December 16 (RIA Novosti) - Over 1,300 people were arrested in Moscow on Wednesday as police mounted a mass operation to prevent further race-hate riots, a police source said on Thursday.

Police were on high alert on Wednesday following rumors that nationalist groups and migrants from the southern Russian North Caucasus region were planning to clash near the Kievskaya railway terminal.

Police seized 16 traumatic guns, 208 knives and 260 other weapons, including hammers, metal bars and stun guns, the source said.

Police said about 30 people were injured as officers sealed off areas of the city around the rail terminal.

There were also arrests in St Petersburg as police prevented clashes between nationalists and migrants.

The new race-hate protests came after the Russian capital saw its biggest public disturbances for almost a decade on Saturday as a 5,000-strong crowd of nationalists and football hooligans clashed with police near Red Square. Rioters also attacked people from the country's North Caucasus region.

President Dmitry Medvedev called the disorder, which was triggered by the death of a football fan in a brawl with North Caucasus migrants, a threat to the stability of the Russian state.

Twelve Caucasus natives detained for attacking policemen

http://www.itar-tass.com/eng/level2.html?NewsID=15784964&PageNum=0

16.12.2010, 02.36

MOSCOW, December 16 (Itar-Tass) - Police have detained 12 natives of the Caucasus near Yugo-Zapadnaya metro station in Moscow’s southwest for attacking three policemen on December 15.

“A group of natives of the North Caucasus was apparently heading for the city centre when three duty police officers blocked their way. The men refused to obey the order to disperse. Instead, they attacked and beat up two policemen,” Moscow law enforcers told Itar-Tass.

Police patrols detained the 12 attackers, most of who are the natives of Dagestan, and took them to the nearest police station. The detainees may face charges in conformity with Russian laws. The two injured policemen are receiving medical aid.

12/16 12:08   PROSECUTORS LAUNCH 22 CRIMINAL CASES OVER MASS RIOTS IN MOSCOW - PROSECUTOR GENERAL'S OFFICE

http://www.interfax.com/

Two criminal cases opened vs hooligans over Dec 15 crimes

http://www.itar-tass.com/eng/level2.html?NewsID=15785319

16.12.2010, 11.48

MOSCOW, December 16 (Itar-Tass) -- Two criminal cases were instituted over the crimes, which young hooligans committed on December 15 in Moscow, spokesman for the Investigation Committee Vladimir Markin told Itar-Tass on Thursday.

The police stopped about 12 people for an identity check-up not far from the Yugo-Zapadnaya metro station at about 7 p.m. Moscow time on Wednesday, he noted. The young offenders “did not obey to the legitimate demands of the police and started beating them up with hooliganism motives.” “The policemen received various bodily injuries. Additional police forces that rushed to the incident site detained all offenders. They turned out to be residents of the North Caucasus republics,” Markin added.

A criminal case was instituted over the use of violence against a law enforcer.

Meanwhile, three Dagestani natives attacked a young man without any reasons and beat him up at about 6 p.m. Moscow time on the same day at the Park Kultury metro station. “An attacker has made a shot from a traumatic pistol in the head of the beaten young man. Thanks to urgent qualified actions of the police all the attackers were detained at the crime scene,” the spokesman said.

Moscow unrest - thousands arrrested, barely a dozen chargedhttp://themoscownews.com/local/20101216/188283920.html?referfrommn

by Andy Potts at 16/12/2010 11:23

As the fog of smokebombs disperses, a few concrete details are beginning to emerge about Wednesday night’s unrest on Moscow’s streets.

And police have confirmed that a number of criminal cases will follow after more than 1,300 people were arrested during a series of stand-offs in city squares and at metro stations.

But while the cops are preparing charges of hooliganism, attempted murder and use of violence against a government representative, few of the incidents in question relate to the epicentre of last night’s events near Kievsky Railway Station.

 

Seizing an arsenal

Vladimir Markin, spokesman for the national Investigative Committee, told RIA Novosti that police had confiscated 16 traumatic guns and more than 200 knives, hammers and baseball bats.

But the two flashpoints he highlighted happened away from the Kievskaya area, at Park Kultury and Yugo-Zapadnaya stations.

A document check on 12 people at Yugo-Zapadnaya at around 7 pm went wrong when the crowd turned on the three police officers.

“The young people did not obey the legitimate orders of the police and began to attack them,” Markin said. “As a result the officers suffered injuries of varying severity.

“As more police arrived at the scene all the attackers were detained. They were natives of the North Caucasian republics.”

 

Kultury confusion

Three people were arrested after a shooting at Park Kultury metro station – even though police spokesman Viktor Biryukov said on Wednesday night that reports of a fight there “did not correspond to reality”.

The suspects were described as three Dagestani natives who shot at a Muscovite with a traumatic weapon in the metro station, RIA Novosti reported.

Markin said the trio had attacked a 26-year-old local man and fired several shots at him and praised the “skilful actions of the police officers” who arrested all three suspects at the scene.

 

Nationalist arrests

While Markin’s account focused on the cases being brought against 15 Caucasian migrants, there were also a number of arrests among Russian nationalist groups.

And a police source told RIA Novosti that one of the ringleaders of a radical organisation was among those seized outside Kievsky station.

Members of the group were carrying traumatic weapons, knives and even an axe.

No official information was available on his case, or the 40 or so colleagues arrested at the same time.

But the source claimed police were preparing civil and criminal cases against some of the group on charges of inciting a riot.

Moscow unrest - who was behind Wednesday's disturbances?http://themoscownews.com/local/20101216/188284172.html?referfrommn

by Evgeniya Chaykovskaya, Andy Potts at 16/12/2010 11:48

Wednesday night’s disturbances in Moscow, which saw a total of 1,320 people arrested, may have been staged by the authorities to improve the police’s reputation.

After taking a battering – both literally and figuratively – in Saturday’s riots on Manezhnaya, Wednesday’s police response was widely seen as a success for the authorities.

Despite the vast number of arrests and the alarming sight of several areas of the city closed down, there was no repeat of the massed violence of the weekend.

And by 8:30 pm the centre of town was largely calm, with fewer people than usual on the metro or in the streets and no sign of the marauding gangs of nationalists and Caucasians supposedly ready for a fight.

 

Success or stage show?

The official line is that everything was well handled, with Moscow mayor Sergei Sobyanin taking time out from an ambassadors’ reception to praise the police response, Ekho Moskvy reported.

But the very fact that the mayor – who made no comment in the aftermath of Saturday’s riot – attended the event as planned leads some to suspect that he knew there was no danger of more serious trouble.

Political analyst Stanislav Belkovsky told radio station Kommersant FM that Sobyanin knew in advance what was going to happen.

“I think he understood that there was no serious unrest in the city today,” Belkovsky said on air. “Rather, it was staged, organised specially so the Moscow police and security agencies could save face and recover a reputation which was seriously ailing over their real-life efforts on Manezhnaya.

“That is why the ambassadors’ reception was not cancelled and the mayor was as confident as ever.”

 

Paid performers

Belkovsky alleged that many of the people detained on Wednesday were neither football fans angry over the death of Spartak fan Yegor Sviridov, nor nationalists pushing their anti-migrant agenda.

Instead he claimed that many were paid agitators, willing to be briefly arrested in front of the media before being quietly released soon afterwards with a few hundred roubles as a thank you.

“The authorities in general and the police in particular want to show that they are able to control the situation in Moscow, and thus make everybody forget about Dec. 11 when they were apparently impotent.”

 

Reasons to agree

Fellow political analyst Vladimir Pribylovsky, head of the Panorama centre, was not willing to fully endorse Belkovsky’s stance.

But he told The Moscow News there could be some truth in what he said – and, like Belkovsky, pointed out that members of Nashi, a notorious pro-Kremlin youth group, had been seen at both events.

“I am not ready to say 100 per cent that it is so,” he told The Moscow News. However, he agreed that “police and the Kremlin wanted to rehabilitate themselves after the full fiasco of Dec. 11.”

Pribylovsky also said that there were a lot of Nashi members in the riots, and one possible explanation was “that [Nashi founder Vasily] Yakemenko sent them to riot a little and work as extras.”

The second version, according to Pribylovsky, is that “Nashi are just Nazis deep down. They do not need to be ordered [to go to riots]. They do it for the soul.”

 

Officials see an unknown hand

The head of the presidential council on developing civil society and human rights institutions Mikhail Fedotov also thinks that the riots were orchestrated, but by some anonymous forces, RIA Novosti reported.

“Certainly and unfortunately, anonymous forces are behind the riots happening now in Moscow that the law-enforcement managed to block,” Fedotov said. “Someone is very interested in inflaming the tensions, in the atmosphere of violence in the country.”

Kommersant: The Council of Legislators enters Manezh Squarehttp://rt.com/politics/press/kommersant/council-legislators-manezh-square/en/

Published: 16 December, 2010, 07:56

The president gets a proposal to reestablish the Ministry of Nationalities Natalia Gorodetskaya

Russia’s Deputy Prosecutor General, Aleksandr Buksman, while speaking yesterday at a joint meeting of the Council of Legislators and the Federation Council’s Joint Commission for Nationalities, said that “the events in Moscow started from an ordinary fight”. The deputy prosecutor general blamed regional and municipal authorities, as well as law enforcement agencies, which “poorly prevent crime”, for the violent clashes. At the end of the discussion, the meeting’s participants decided to turn to the Russian president with a proposal to recreate the Ministry of Nationalities.

While speaking before the Federation Council yesterday, Aleksandr Buksman said that the extremist crime rates in Russia “continue to increase from one year to the next”. In 2010, it rose by 23%. According to the deputy prosecutor general, this is a result of “incompetent work of the regional and municipal authorities, as well as the law enforcement agencies”. “They are used to criminal law measures: prosecute a person and relax,” he said. “Meanwhile, their preventative measures are weak.” Other reasons for extremism, cited by the deputy prosecutor general, were social inequality, unemployment, schools, that “don’t filter” children’s access to extremist websites, and the lack of youth policies. Hence the ethnic-fueled violence, he said, and noted that the events in Moscow “started with an ordinary dispute – the young people got into an argument over a cab” (Kommersant reported on the murder of the Spartak fan, Yegor Sviridov, on December 8). To the question of the Speaker of the Federation Council, Sergey Mironov, of whether or not the prosecution had investigated how and why Yegor Sviridov’s killer, Aslan Cherkessov, was released, Mr. Buksman responded that this decision was made by the interregional investigation department (read Kommersant’s December 14 issue).      

In turn, the speaker of the Federation Council cited “the lack of action by the management and employees of the law enforcement structures”, as well as the lack of information, as the reason for the December 12 violence on Manezh Square. “Everything that happened – is a form of social protest, the result of heightened social tensions, the growing poverty rate, the lack of social safety nets,” said Mr. Mironov. “And the best cure, today, is the truth – no matter how painful it may be.” The speaker of the Federation Council believes that a special office for nationality affairs needs to be created, the legislation on counteraction to ethnic strife needs to be perfected, and a culture of inter-ethnic relations needs to be created. In particular, he proposed introducing “a mandatory class in schools on the four religions in the RF”, as well as making the rules for the sale of arms more rigid and introducing “changes to the technical specifications of traumatic weapons” in order to reduce the number of fatalities.    

The idea to form a nationality affairs office was supported by the speakers of the regional parliaments, ROC spokesman Vsevolod Chaplin and Deputy Chairman of the Russian Council of Muftis, Khariz Saubyanov. According to the speaker of the Chechen parliament, Dukvakha Abdurakhmanov, “this office must be self-sufficient, in terms of funding and staff”. He was even more direct when commenting on the weapons issue: “The sale of arms needs to be banned. Let the law enforcement agencies protect us”. According to the Chechen speaker, the prosecution ought to have said that this was an ordinary fight from the very beginning, “then we could have avoided mass violence in Moscow”.  

Head of the State Council of Tatarstan, Farid Mukhametshin, pointed to “harsh exploitation of the youth”. “During their election campaigns, parties make various proposals to the youth,” he explained. “And they are lost without being able to find guidance in the midst of the incoherent proposals.” Meanwhile, in reality, he believes that no one is concerned about the youth – United Russia, A Just Russia, the Communist Party, have all created youth wings and stopped at that. After expressing support for the idea to create an office for nationality issues, Mr. Mukhametshin noted that it should be headed by a person with the rank of deputy prime minister. In addition to that, he suggested adopting a framework law, which will outline the basic positions of the nationality policy, and a federal law on youth.   

In the end, the meeting’s participants recommended intensifying criminal liability for organization of an extremist community and crimes related with incitement of hatred and enmity, as well as tightening regulations governing the activity of non-official youth organizations. Moreover, members of the Council of Legislators and the Federation Council’s Joint Commission for Nationalities decided to turn to the president with a proposal to reestablish a ministry, responsible for the nationality policies in the country.

December 16, 2010 11:50

Kyrgyz murder suspects describe themselves as 'skinheads' – sourcehttp://www.interfax.com/newsinf.asp?id=209617

MOSCOW. Dec 16 (Interfax) - A 14-year-old suspected of killing a native of Kyrgyzstan in Moscow last Sunday has described himself as a skinhead, according to a law enforcement source.

The Kyrgyz citizen, born 1973, was killed on Sudostroitelnaya Street in southern Moscow on December 12, a day after a massive violent riot involving nationalists and football fans, who chanted "Russia for Russians," broke out close to the Kremlin.

The 14-year-old and two others have been detained on suspicion of committing the crime.

"The detained individuals claim to be Spartak Moscow football fans and supporters of the skinhead movement," the source said.

The 14-year-old teenager confessed to the murder, the source said. "The suspect is a student and said he is a Spartak fan nicknamed Scout," the source said.

The other suspect is a school student and calls himself a skinhead nicknamed Grizzly. The third detained individual is a university student who claimed to be a Spartak fan and a skinhead nicknamed Hector.

kk ap

Boy, 14, suspected of Moscow racist murder: officialhttp://www.mysinchew.com/node/49751

2010-12-16 16:41

MOSCOW, Thursday 16 December 2010 (AFP) - Three teenagers, including a boy aged just 14, are suspected of the apparently racist murder of a Kyrgyz citizen in Moscow at the weekend, Russian investigators said Thursday.

The Kyrgyz man was stabbed to death on Sunday, just a day after some 5,000 ultra-nationalists joined football fans in a racism-tinged riot in central Moscow that raised inter-ethnic tensions in the Russian capital.

"Three teenagers have been identified who are being investigated over their involvement in the crime," the investigative committee of prosecutors said in a statement.

"A 14-year-old teenager has been arrested as a suspect," it said, adding that the question over the arrest of the other two was currently being decided.

The involvement of teenage gangs in racist murders has repeatedly shocked post-Soviet Russia in the last years but it is rare that a boy so young is involved.

Saturday's rally was initially called to protest the police handling of the killing of a Spartak Moscow football fan by a man from Russia's North Caucasus region but rapidly degenerated into a racist riot.

The three youths arrested are part of a Spartak Moscow fan group and linked to a movement of far-right extremists, a security source told the Interfax news agency.

The 14-year-old suspect has already confessed to the crime, the source said. He is a college pupil but also a die-hard Spartak fan who goes by the nickname of "Scout".

Another of the suspected teens is a pupil at a Moscow school known by the name of "Grizzly" within the Moscow racist scene, while the third is a university student and Spartak fan known as "Hector".

A unique Ukrainian-Tatar partnership against Russiahttp://www.thestar.com/article/907145--a-unique-ukrainian-tatar-partnership-against-russia

Published On Thu Dec 16 2010

By Haroon Siddiqui Editorial Page

Mine was a Ukrainian neighbourhood until its gentrification, starting in the early 1990s with the arrival of middle-aged professionals toting toddlers.

Still, Bloor Street West retains its old character with family-run delis, the annual Ukrainian street festival and such institutions as the Ukrainian Canadian Credit Union, Ukrainian Canadian Social Services and — steps from the Runnymede Public Library, which stocks Ukrainian books and newspapers — the venerable Ukrainian Canadian Art Foundation. Its gallery was packed last Thursday evening with about 150 people who had come to listen to a legendary figure.

Mustafa Dzhemiliev, 66, is a survivor of the Soviet Gulag. He spent 17 years in dungeons and death camps, including in Siberia. He was released only after his name was (fifth) on the famous list of 23 dissidents that Ronald Reagan handed Mikhail Gorbachev at their 1986 summit in Reykjavik, Iceland, demanding their freedom.

Dzhemiliev — pronounced Ja-mee-li-yev — is the leader of the Crimean Tatars, one of the two indigenous peoples of Ukraine. Not to be confused with the other Tatars, they live on the Crimean peninsula on the Black Sea.

His remarkable story begins in 1944. He was 6 months old when his parents were among the 200,000 Crimean Tatars deported by Stalin to Central Asia (as were other minorities, such as the Chechens). More than a third of the Tatars died on the way.

At age 18, Dzhemiliev refused to serve in the Soviet army in protest. He was jailed for three years.

He was to be imprisoned six more times, often condemned to solitary confinement. Deprived of warm clothes, he was always cold. Never given enough to eat, he got malnourished — a condition made worse by his protest hunger strikes. The longest lasted 303 days, which he survived only because he had been force-fed.

In 1989, with the collapse of the Soviet Union, Crimean Tatars began returning to their homeland. Their old homes and lands all occupied by ethnic Russian settlers, many lived in tents.

In 1991, with Ukraine’s independence (advocated editorially by the Star, the first North American daily to do so), the Crimean Tatars had high hopes of regaining their centuries-old autonomy, lost with the Czarist annexation in 1783.

They began the national rebuilding process with 250 representatives electing a 33-member Majlis (assembly), which elected Dzhemiliev as chair. He has been re-elected thrice since.

In 1997, he was also elected to the Ukrainian parliament in Kyev, and re-elected in 2002, 2006 and 2007.

Grassroots democracy and non-violence are central to the Crimean struggle, Dzhemiliev tells me. “We are proud that not a single opponent of ours has been killed by us,” despite repeated pogroms by the Czars and then the Communists, who took turns turning Tatar mosques into churches or military barracks, and burning all their books and artifacts.

This Mahatma Gandhi of the Crimea, or a Nelson Mandela, has been bestowed many international honours, including the UN Nansen Medal (given to Canada in 1986 for our humane handling of refugees). Dzhemiliev used the $100,000 to build two cultural centres and start stipends for students.

Retaining their culture and language is a priority. But resources are limited. A third of his 280,000 people are unemployed. A minority in their own homeland, they constitute only 13 per cent of the population and have even less representation, 3 per cent, in the local government controlled by the majority Russians.

A mosque approved in 2004 for Simferopol, the capital of Crimea, is still stalled, with one official excuse after another over zoning, noise and traffic issues. In protest, Tatars have been bringing a brick each, inscribed with the names of the dear deported of 1944.

But Dzhemiliev is patient. He speaks softly, never tiring of retelling the story of his people. A short, wiry man with a leathery face, today he’s wearing a charcoal grey suit circa the 1960s — a figure from the past sitting atop a contemporary post-Soviet fault line.

Most Russians in Crimea have been or are with the Russian naval fleet in Sevastopol on the Black Sea. Many want to secede from Ukraine and join Russia. Moscow is funding them and is also reportedly handing out Russian passports (as in South Ossetia, Georgia).

Caught in this dangerous game, Dzhemiliev is clear that Tatars want to remain part of Ukraine. “We want national and territorial autonomy within an independent, democratic and stable Ukraine.”

Last year, he escaped an assassination attempt that he attributed to the Russian Federal Security Service, the successor agency to the Soviet KGB.

Yet he keeps calling for the closure of the Russian naval base, calling it “a serious threat to the security of Ukraine.” He also wants Ukraine to be admitted to NATO.

But, ironically, Ukrainians themselves have elected a pro-Russian president, Viktor Yanukovych — thanks to the sad infighting among the children of the 2004-5 Orange Revolution, Viktor Yushchenko (he of the scarred face, from a mysterious poisoning) and Yulia Tymoshenko (she of the braided hair).

Dzhemiliev says that Yanukovych is stoking anti-Tatar propaganda and funding pro-Russian groups in Crimea. He is also trying to undermine Dzhemiliev’s Majlis by naming rival Tatar representatives.

Dzhemiliev was invited to Canada by Borys Wrzesnewskyj, MP for Etobicoke Centre, whose own activism in Ukraine, Georgia and that region predates his Liberal politics.

“The post-Soviet geopolitical fault line runs through Ukraine and it lands in Crimea,” he tells me. “It is the one place in that region with 80 per cent ethnic Russian majority, and they spew hatred of Tatars, saying things like, ‘we need to finish off what Stalin didn’t.’”

When Wrzesnewskyj — pronounced Jes-nev-ski — introduced Dzhemiliev in the House of Commons, the visitor was given a standing ovation, as he was in Toronto.

Haroon Siddiqui writes Thursday and Sunday. hsiddiqui@thestar.ca

Turkey, Russia envisage more joint projects http://www.worldbulletin.net/news_detail.php?id=67453

Turkey plans to carry out more industrial and commercial projects with Russia after the two countries have pushed the button to start Turkey's first nuclear power plant project.

Thursday, 16 December 2010 10:26

Turkey plans to carry out more industrial and commercial projects with Russia after the two countries have pushed the button to start Turkey's first nuclear power plant project.

Russia's Deputy Prime Minister Igor Sechin joined Turkish Energy Minister in Istanbul on Wednesday to take part at a seminar on the project company registered Monday and will work under Turkish laws.

Speaking at the seminar, Taner Yildiz said that Turkey and Russia would continue with several more projects in other sectors.

"From Samsun-Ceyhan crude oil pipeline, which we will build together, to natural gas trade; we will have several strategic cooperation projects in industry and trade," Yildiz said.

In May, Turkey and Russia signed a deal for construction of Turkey's first nuclear power plant in Akkuyu, a small town on the Mediterranean coast, which is expected to cost about $20 billion. Russian state-owned atomic power company ROSATOM is likely to start building the Akkuyu nuclear power plant in 2013 and the first reactor is planned to generate electricity in 2018.

Turkish efforts to build a nuclear power plant have failed four times over the past 40 years, Yildiz said, adding that government's recent move would start a new industrial era for the country.

He said Turkey would see a nuclear culture after technical and paper works are completed. Yildiz added that Turkey would continue to work on nuclear projects as country's economy was growing and its need for energy resources was rising.

"Operating under Turkish state regulations"

Russia's deputy prime minister said that Turkey approved the project company of a nuclear power plant to be constructed in the southern province of Mersin.

Igor Ivanovich Sechin said Turkey approved the project company on December 13, and the company would operate under Turkish state regulations.

"We have agreed with Turkey that the sale tariff of the electricity to be generated in the nuclear power plant will be fairly high, but not as high as we have demanded," Sechin told the joint press conference.

Sechin said the power plant would be safe and secure, and the project company would be responsible for security and safety of the power plant, training of the personnel, and efficient use of the plant for 60 years.

Russia will build four 1,200 megawatt units on Akkuyu site. Turkish state-owned electricity corporation has guaranteed to buy a fixed amount of the plant's output over the first 15 years

starting from initial commercial operation at a reported price of 12.35 US cents per kWh, with the rest of the electricity to be sold on the open market by the project company.

On Samsun-Ceyhan crude oil pipeline project, Sechin said two Russian companies, namely Rostneft and Transneft, were foreseen to take part in the project as well as a Turkish and Italian company.

Sechin said the companies were negotiating share of participation among themselves, which seemed to be around 25 percent.

Samsun-Ceyhan pipeline is a planned crude oil pipeline in Turkey from the Black Sea to the Mediterranean oil terminal in Ceyhan. The aim of this project is to provide an alternative route for Russia's and Kazakhstan's oil and to ease the traffic burden in the Istanbul and Canakkale straits.

Also, Sechin said Russia was inviting all Turkish investors to cooperate in banking industry, and Russia would be pleased if Turkey was interested in purchase of shares of Russia's Vneshtorgbank.

Geneva to host 14th meeting on tension prevention in Caucasushttp://en.trend.az/news/politics/1798354.html

16.12.2010 10:16

Tallinn mayor labeled Moscow 'agent of influence'http://en.rian.ru/world/20101216/161800130.html11:11 16/12/2010

Estonia's security police (KaPo) have branded Tallin mayor and opposition leader Edgar Savisaar Moscow's "agent of influence," in a letter to the country's government, the local Postimees newspaper said.

Savisaar has been marked in counterintelligence reports as a "security threat" since June, the paper said.

The latest report suggests that the mayor received $1.5 million from Moscow to "increase Russia's influence on Estonia." The paper noted that this was the exact sum spent on the construction of a Russian Orthodox church in Tallinn's most populated Lasnamae district.

"The career of one party politician is not the only thing at stake; this also involves the image of the entire state and people's trust in it," Postimees said.

Both KaPo chief commissar Andres Kahar and Savisaar refused to comment on the information, the paper said, adding that the mayor has not yet been interrogated by police.

Savisaar's opposition Centre Party is the second largest in the Estonian parliament and enjoys the support of the country's Russian-speaking community. In December 2004, the party signed a cooperation agreement with Russia's pro-Kremlin United Russia party.

TALLINN, December 16 (RIA Novosti)

Accusations fly in EU vote on Russian travel banhttp://euobserver.com/24/31515

ANDREW RETTMAN

Today @ 09:18 CET

EUOBSERVER / BRUSSELS - A u-turn by centre-right and centre-left MEPs on whether to seek an EU visa ban on Russian officials linked to the death of lawyer Sergey Magnitsky has prompted accusations about Russian lobbying in the EU parliament.

Deputies in the foreign affairs committee in November endorsed a report on EU human rights policy containing the controversial Magnitsky clause by a crushing majority of 50 votes against nil with two abstentions.

The clause says: "[Parliament] urges the Russian judicial authorities to press ahead with the investigation of the death of Sergey Magnitsky; calls for an EU entry ban for the 60 Russian officials involved in this case and asks the EU law enforcement agencies to co-operate in freezing the bank accounts and other assets of these Russian officials in all EU member states."

But on the eve of the vote, due to take place in Strasbourg on Thursday (16 December), the centre-right EPP group and the centre-left S&D group are planning to expunge the offending lines, according to German centre-left MEP Knut Fleckenstein, who chairs the EU-Russia inter-parliamentary delegation.

Finnish green MEP Heidi Hautala, who co-introduced the amendment and who chairs the assembly's human rights sub-committee, told EUobserver that the change is due to Russian campaigning.

"Lobbying and pressuring by the Russian side has been tremendous," she said. "Failing on this amendment would indeed put seriously in question the parliament's standing in protection and promotion of human rights around the world."

Ms Hautala's camp point to the role played by a delegation of Russian MPs who arrived in Strasbourg on Monday for a long-scheduled Parliamentary Co-operation Committee. Unusually, the delegation brought along a group of industry ministry officials and Russian human rights ombudsman Vladimir Lukin, who held a number of informal meetings with MEPs on top of the official event.

The Russian mission to the EU has also been active. Russian diplomat Alexander Khlopiyanov at 1am in the morning Brussels time on Sunday sent an email to MEPs containing dire warnings from the Russian parliament's foreign affairs unit. "Should the European Parliament accept [the amendment], relations between the Russian Federation and the European Union will be seriously damaged," it said.

Mr Fleckenstein told this website that attempts to depict the EU-Russia committee visit as lobbying is "nonsense and propaganda."

He said the change of heart by EPP and S&D deputies is because some MEPs were bamboozled by the over 400 individual amendments proposed to the report back in November: "I know that some colleagues didn't realise [what they were backing] because it was a big package."

"This [the sanctions] is not the appropriate approach if you really want to change something. We have to speak, to push again and again," he added, giving as an example of more useful intervention his plan to discuss Mr Magnitsky at a private dinner with Mr Lukin on Wednesday evening.

Mr Magnitsky, a 37-year-old father-of-two, died in a Russian jail in 2009 after investigating an alleged €175 million embezzlement scam by Russian police. His employer, US firm Hermitage Capital, says he was tortured and murdered for refusing to withdraw his testimony. There has been no Russian probe into his death and some of the officials he accused of fraud have been promoted.

Human rights campaigners say the case is proof that the Kremlin has no respect for the rule of law, while paying lipservice to values in its bid for new EU trade and technology-transfer agreements.

Khodorkovsky not in Ashton's remit?

Campaigners also paint the case of fallen oil tycoon Mikhail Khodorkovsky in the same light. A Moscow court was due to rule on fraud charges against Mr Khodorkovsky on Wednesday but switched the date to 27 December without explanation.

The last-minute switch disrupted plans for an international response to the widely-expected guilty verdict in what is seen as another example of political persecution. In one effort, EU parliament President Jerzy Buzek on Tuesday in Strasbourg met with Mr Khodorkovsky's mother and published a statement of support. The impact of the meeting was blunted by the date change, however.

Khodorkovsky lawyer Vadim Klyuvgant told EUobserver that most EU and US officials will be on Christmas vacation when the verdict comes: "Of course, holidays make public activity lower."

For her part, EU foreign affairs chief Catherine Ashton at a debate in Strasbourg on Wednesday promised to create a high-level human rights unit in her External Action Service because rights "are the core of our EU identity and they go to the heart of what we do around the world."

EU officials earlier told this website that her team is unlikely to comment on the Khodorkovsky verdict because it is not in her "remit," however.

Another lawyer working for Mr Khodorkovsky, who asked not to be named, said the argument is "ridiculous" in the context of Article 21 of the Lisbon Treaty, which states: "The Union's action on the international scene shall be guided by the principles which have inspired its own creation, development and enlargement, and which it seeks to advance in the wider world: democracy, the rule of law, the universality and indivisibility of human rights and fundamental freedoms, respect for human dignity, the principles of equality and solidarity, and respect for the principles of the United Nations Charter and international law."

Banatski Dvor will be opened at beginning of 2011

http://www.seenews.com/news/latestnews/tandemfinancial-serbiandailyreport-dec15_2010-153934/

Russian Foreign Minister Sergey Lavrov announced in Moscow on Wednesday that the underground gas storage in Banatski Dvor will be opened at the beginning of 2011.At a press conference after the meeting with his Serbian counterpart Vuk Jeremic, Lavrov assessed that Russia-Serbia cooperation in the area of energy is progressing, including the South Stream project, the Russian agency Itar-Tass reported.

Fresh agreement on CIS free trade zone to be signed next Mayhttp://abc.az/eng/news_16_12_2010_50210.html

Baku, Fineko/abc.az. Although the Council of Heads of CIS States failed to make a political decision on updating of the Commonwealth’s Agreement on Free Trade Zone (FTZ), on the eve of a CIS experts’ meeting in Moscow (to open on 20 December) there appeared data on terms of new agreement signing.

Azerbaijani governmental sources say that its signing is scheduled for May 2011.

"Nevertheless, the disagreements between the CIS member states on this agreement have not been removed. In fact, today the Commonwealth countries are proposed an FTZ scheme, the apotheosis of which is the regime of the Customs Union of Belarus, Kazakhstan and Russia. The CIS countries will be able only to make some reservations in this scheme. The effectiveness of such an administrative approach and its relation with real trade practices has already caused doubt," a source said.

At the CIS Summit in Moscow on 10 December failed to make a political decision on updating the CIS agreement on the FTZ concluded in 1994. Te summit participants only noted that it was

expected before the end of this year to accord a draft of this document and pass it in the first half of next year. Earlier it was planned to sign the new agreement by April 2011.

16.12.2010 10:48

CIS entering on final stage of talks on updated treaty on free trade areahttp://www.interfax.com.ua/eng/main/56149/

The last round of talks on the updated agreement establishing a free trade area in the CIS will be held on December 21, Ukrainian Ambassador to Russia Volodymyr Yelchenko has said.

"This area formally exists, the agreement has been signed by all the countries, but this free trade zone is still virtual," Yelchenko explained during a press club meeting in Kyiv on Wednesday.

An updated agreement on free trade area in the CIS has been already finalized and the last round of talks is to take place on December 21, 2010, he said.

The diplomat added that the experts would analyze the updated agreement on the free trade area so that it could start working next year.

When asked about the prospects of Ukraine's accession to the Customs Union, Yelchenko said: "The Customs Union has not even started working, and we are already talking about the accession. One day we might find we need to join it, but surely not today."

He also added that all the Customs Union's countries are not members of the WTO, while Ukraine has joined the organization. Therefore, in the case of Ukraine's accession to the Customs Union, they need to review the conditions stipulated in the agreement with the WTO, the ambassador said.

16.12.2010

Goods turnover between Kazakhstan, Russia and Belarus - $13.5 http://www.blackseagrain.net/about-ukragroconsult/news-temp/goods-turnover-between-kazakhstan-russia-and-belarus-13.5

Goods turnover between Kazakhstan, Russia and Belarus for 10 months of 2010 has amounted to $13.5. The Minister of Economic Development and Trade of Kazakhstan, Zhanar Aytzhanova, said at a government session, the agency reports.

"Foreign trade turnover, taking into account mutual trade with Russia and Belarus, increased in October, 2010 by 43.1 % and totaled $81 billion. Export of goods has increased by 52.6 % by the corresponding period of the last year and accounted for $51.4 billion. Import has been $29.6 billion and has increased by 29.1 %," Z. Aytzhanova informed.

"The trade balance was positive and totaled $21.7 billion, having increased twice in comparison with the similar period."

"For 10 months of 2010, goods turnover between Kazakhstan and other Customs Union member countries amounted to $13.5 billion, from which more than 90 % - with Russia. In comparison with the corresponding period of the last year, goods turnover with Russia has increased by 1.3 times and with Belarus - by 1.4 times."

11:07Medvedev to visit India on Dec 20-22http://www.interfax.com/news.asp

Russian shipbuilders ask for $100 million to complete frigates for Indiahttp://en.rian.ru/russia/20101216/161799583.html

10:38 16/12/2010

Russian shipbuilding plant Yantar has asked Russia's state arms exporter, Rosoboronexport, for an additional $100 million to conclude the construction of three frigates for the Indian Navy, Russian business daily Kommersant said on Thursday.

A $1.6-billion contract on the construction of the ships was signed in summer 2006. Although the ships were scheduled for completion by 2011-2012, a lack of funds has delayed construction, the paper said.

"The lack of funding is linked to the VAT refund problem: we will only receive [the money] after the frigates have been supplied to India," Igor Orlov, the director general of the Kaliningrad-based plant, told the paper.

A source close to Rosoboronexport told Kommersant the Indian side was aware of the issue and was treating it "with understanding."

"We are not considering increasing the contract price for India," the source said. "We propose the problem be settled using domestic reserves, including those of the United Shipbuilding Corporation."

This is the second time Russia has run into difficulties with Indian contracts. The price of the Admiral Gorshkov aircraft carrier has been raised almost twice, and its supply date was put back from 2008 to late 2012.

MOSCOW, December 16 (RIA Novosti)

Sagem and Rosoboronexport to create joint venture for inertial navigation systemshttp://www.defpro.com/news/details/20631/?SID=9b4035c2666bfc2281276ce44828aab9

08:55 GMT, December 16, 2010 Moscow

Rosoboronexport and Sagem (Safran group) today signed an agreement to create a joint venture for inertial navigation systems, at the 15th session of the French-Russian intergovernmental commission on bilateral cooperation.

The agreement was signed by Ivan Goncharenko, deputy director general of Rosoboronexport and Jean-Lin Fournereaux, Chairman and CEO of Sagem, in a ceremony attended by the heads of government of the Russian Federation and France.

The new company will be based in the Russian Federation, with the Russian partner holding 51% and the French partner 49% of the capital.

Commenting on this agreement, Ivan Goncharenko said: “ I firmly believe that this new French-Russian company will not only strengthen and expand the military and technical collaboration between our two countries, but also open new and mutually profitable prospects for the development and manufacture of high-tech products, as well as exchanges of advanced technologies. ”

Jean-Lin Fournereaux added: “This new venture clearly symbolizes the favored relations that have developed between our two countries, at both the industry and government levels.” 

UPDATE 2-Trader, bank probe missing grain in Ukraine, Russiahttp://www.reuters.com/article/idUSLDE6BE1SO20101215

Wed, Dec 15 2010

* Gran Trade says grains used as collateral worth $30 mln

* Says complaints include Bureau Veritas (BVI.PA: Quote, Profile, Research, Stock Buzz) branch

* Inspectors still barred from silo in Russia

By Sybille de La Hamaide and Aleksandras Budrys

PARIS/MOSCOW, Dec 15 (Reuters) - A Swiss grain trader said on Wednesday it had asked Ukraine to probe the disappearance of $30 million worth of grain stocks, a day after a French bank said it was investigating missing grain in neighbouring Russia.

Russia and Ukraine, among the world's largest grain exporters last year, were severely hit by the worst drought in decades this year, with Russia considering large imports and Ukraine drastically limiting its exports.

Swiss-based Gran Trade said on Wednesday it had filed complaints against several Ukrainian grain suppliers and Inspectorate, the commodity inspection branch of Bureau Veritas (BVI.PA: Quote, Profile, Research, Stock Buzz), which had certified that grain was stored in warehouses while being used as collateral for loans with banks.

Trading houses buy grains, which can sometimes remain stored for months before delivery, and receive a certificate from inspecting companies that the grain has been put in storage. The certificate is used as collateral for bank loans.

"I have submitted complaints in Ukraine in September with the general prosecutor," Gran Trade director Olivier Broun told Reuters. These concerned grain certificates for some 180,000 tonnes of feed grains worth nearly $30 million, he said.

Inspectorate's Company Secretary David Lappage, who oversees compliance, insurance and claims management, confirmed the existence of a complaint about grains in Ukraine.

"There has been a complaint but no legal action being filed," he told Reuters from London.

He declined to comment on Inspectorate's response to the complaint but confirmed his company had been appointed by Gran Trade to go to 11 warehouses and asked to issue certificates.

"As a statement that is correct. Our Ukrainian company received those instructions from Gran Trade," he said. He declined to give any more information on these certificates.

On Tuesday, the Swiss branch of BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) said it was investigating the whereabouts of grain stocks in Russia that had also been used as collateral in bank loans.

Talk had circulated grain markets in recent days that several international banks, a certification company and a Russian grain firm were at the centre of an incident in which banks could have lost as much as $100 million, with BNP Paribas shouldering the bulk of it with $80 million. [ID:nLDE6BD27H]

BNP Paribas Switzerland's spokesman said it could not verify, invalidate or confirm these figures.

IMMEDIATE LOAN REPAYMENT

On Monday, Certification company Control Union International Commodity said its auditors were being denied access by one of Russia's biggest grain companies, Rosinteragroservis (RIAS), to a grain silo it had certified. [ID:nLDE6BC25I]

RIAS did not immediately respond to requests for comment but a source familiar with the attempt to verify the stocks said the inspectors were still barred from the silo on Wednesday.

Arkady Zlochevsky, president of the Russian Grain Union, the industry lobby, said he was unaware of other cases where a company working on the Russian market denied access to its silos.

"If an inspector is not admitted to a warehouse, this automatically results in a demand to repay the loan immediately," Zlochevsky added.

Kirill Podolsky, CEO of the Valars Group, a major grain trader with divisions in Russia, Ukraine and Kazakhstan, also said he did not believe the denial of access to inspectors seeking to examine grain stocks was widespread in Russia.

Krasnodar-based, privately owned RIAS, is 164th in Forbes' Russian top 200 private companies' list.

According to data from Valars Group, RIAS was Russia's No.2 grain exporter in July-December 2009 after the International Grain Co, the Russian unit of Glencore.

It shipped 1.27 million tonnes of grain in the period, or 10 percent of the total Russian grain exports.

Gran Trade said it had launched several complaints in Ukraine that did not succeed. The latest complaint, which now involves more parties, was filed in September 2010 in Kiev, Broun said. He declined to name the banks or the Ukrainian suppliers involved. (Additional reporting by Melissa Akin in Moscow, writing by Dmitry Zhdannikov, editing by Anthony Barker)

Stranded fishermen in Vietnam continue hunger strikehttp://english.ruvr.ru/2010/12/16/36945707.html

Dec 16, 2010 09:57 Moscow Time

The Russian fishermen in Vietnam continue their hunger strike for the fourth successive day, but their condition is sharply worsening. They are currently awaiting a doctor from the Russian Consulate in Ho Chi Minh.

Five fishermen are taking part in the action.

The sailors have been unpaid for a year and a half. The owner of their ship stranded in Vietnam owes the crew more than $140,000.

Investigators probe into attack on Angarsk vice-mayor

http://www.itar-tass.com/eng/level2.html?NewsID=15784953&PageNum=0

16.12.2010, 09.36

IRKUTSK, December 16 (Itar-Tass) - Angarsk Vice-Mayor Dmitry Chernyshev, who is in charge of housing and public utility affairs, has been hospitalized in a serious condition on Thursday morning following an assassination attack against him. A city administration source has told Itar-Tass that the crime was committed at the entrance-way of the building where Chernyshev lives. An assailant fired point-blank from a sawn-off rifle.

Investigators and criminalists from the Angarsk city department of the RF Investigation Committee (SKP) are pursuing all the avenues of inquiry into the assassination attempt against Vice-Mayor Dmitry Chernyshev, Vladimir Salovarov, Senior Assistant to the Director of the SKP Investigation Office, has told Itar-Tass.

Salovarov said the question of instituting criminal proceedings in connection with the "attempt at murder" is under consideration on the strength of Articles 30 and 105 of the Penal Code of the Russian Federation.

December 16, 2010 7:37Attempted murder of Chernyshev, the vice-mayor of Angarsk

http://www.interfax.ru/news.asp?id=169406

GOOGLE TRANSLATIONAngarsk. December 16. Interfax-Siberia - in Angarsk (Irkutsk Region) on Thursday morning was an attempt on the vice-mayor Dmitry Chernyshev.As reported by Interfax-Siberia "senior assistant director of the regional GC UPC Vladimir Salovarov," in the beginning of the tenth morning, local time, when an officer came out of the doorway at home, where he lives, for it opened fire. ""The vice-mayor was hospitalized. He was wounded in the leg. At the scene found just enough" - said V. Salovarov.At the scene of an accident investigation team is working. According to V. Salovarov, soon to be prosecuted for attempted murder.

16 December 2010, 11:08

Mufti killers will be punished – Medvedevhttp://www.interfax-religion.com/?act=news&div=8021

Moscow, December 16, Interfax - Russian President Dmitry Medvedev has offered his condolences to the friends and family of Anas Pshikhachev, mufti of the North Caucasus republic of Kabardino-Balkaria, who was murdered on Wednesday.

"He was an outstanding religious figure of unquestionable authority who openly opposed extremism," spokeswoman Natalya Timakova quoted the president as saying.

"It is clear that this heinous murder was committed because of his active stance," Medvedev was quoted as saying.

The president has ordered that all possible assistance be provided to the victim's family, Timakova said.

"We will continue to support Muslims in Kabardino-Balkaria, and I am certain that the murderers will be punished," Medvedev was quoted as saying.

Pshikhachev was killed in the republic's main city of Nalchik on Wednesday evening. Two unidentified men challenged him to come out of his home at about 7:30 p.m. They then fired at least four shots from 9 mm pistols at him. Pshikhachev, aged 47, died from his wounds.

A criminal case based on charges of premeditated murder and illegal arms possession has been launched.

A senior Muslim leader in the North Caucasus, Ismail Berdiyev, told Interfax-Religion that Pshikhachev had receive death threats in the past.

"Just recently at a meeting with the presidential envoy [to the North Caucasus Alexander Khloponin] he said: "They come, look me in the face brazenly and say: "We have decided to kill you. What do you think of that?"

Berdiyev said it was difficult to say who could be behind the murder but noted that the mufti had actively resisted extremism.

"Whatever it may be, there is no religion here. It's pure gangsterism," Berdiyev added.

16 December 2010, 11:10

Mufti murder suspects already identifiedhttp://www.interfax-religion.com/?act=news&div=8022

Nalchik, December 16, Interfax - Investigators have already identified those behind the Wednesday evening murder of Kabardino-Balkaria's spiritual Muslim leader Anas Pshikhachev.

"Investigators have made progress in probing this brazen crime. Preliminary reports suggest that there are already suspects," Arsen Kanokov, president of the restive North Caucasus republic, told Interfax on Thursday.

"I have no doubt that this barbaric crime will be resolved," he said.

"No one will manage to shatter the situation in the republic. The death of one of the most influential religious figures in the North Caucasus must unite the Muslims of our republic in bringing peace and stability to Kabardino-Balkaria," the republic's leader said.

Kanokov attends Pshikhachev's funeral on Thursday.

Top Muslim Cleric Shot Dead In Volatile Caucasus http://www.rferl.org/content/muslim_cleric_murder_kabardino_balkaria/2249767.html

December 16, 2010 The top Muslim cleric in Russia's volatile region of Kabardino-Balkaria has been shot dead.

A spokeswoman for the regional investigators said that Anas Pshikhachev, the region's top mufti, was attacked by two unidentified assailants just outside his home in the town of Nalchik on December 15.

He received several gunshot wounds and died of his injuries on the spot.

President Dmitry Medvedev expressed his condolences to the mufti's family.

Kabardino-Balkaria is located near the volatile regions of Chechnya, Daghestan, and Ingushetia, where the authorities are battling a Muslim insurgency and attacks on government officials are a near-daily occurrence.

compiled from agency reports

Unknown gunmen kill mufti of North Caucasian region

http://www.itar-tass.com/eng/level2.html?NewsID=15784423&PageNum=0

15.12.2010, 23.30

NALCHIK, December 15 (Itar-Tass) - Wednesday night, unknown gunmen shot and killed the mufti of the North Caucasian region of Kabardino-Balkaria, Anas Pshikhachev.

He was killed at 19:30 near his private house in the district of Alexandrovka, the regional capital Nalchik.

"Two unknown gunmen asked him to go out of the house and made no less than four shots at him from a 9 mm gun," a source at the regional Investigations Committee told Itar-Tass. "Four shells have been found at the site of the crime."

The mufti died on the spot.

A criminal case citing articles of the Criminal Code on purported murder and illegal circulation of weaponry has been instituted.

At the time of reporting, a group of operatives and investigators was working at the site.

Anas Pshikhachev was into a working class family in Nalchik October 11, 1967.

He began his career of an Islamic cleric in 1989 when he graduated from a local junior college of the construction industry.

In the 1990’s, Pshikhachev studied for four years at the International Islamic University in Tripoli, Libya, and later on at the Islamic Institute of Kabardino-Balkaria.

He authored more than fifty works on the issues of theology and religion and drafted a curriculum for the Islamic schools of higher learning in Russia, which got official authorization of the federal Ministry of Education and Science.

“This was an outstanding and doubtlessly authoritative religious personality who put up an overt opposition to extremism,” Russian President’s press secretary Marina Timakova said quoting the words of President Dmitry Medvedev.

“There’s scarcely any doubt this mean assassination was committed because of his active position,” she said, adding that Medvedev had ordered to provide all the necessary assistance and aid to the mufti’s family.

On behalf of the President, Timakova said the federal authorities will continue supporting the Moslem community of Kabardino-Balkaria.

“We’re sure revenge will reach the assassins,” she said.

December 16, 2010 14:57 PM

Two Wounded After Attack On Police Checkpoint In Chechnya

http://www.bernama.com.my/bernama/v5/newsindex.php?id=550499

GROZNY, Dec 16 (Bernama) -- Two policemen were wounded in a fire attack on a police post in Chechnya's Achkhoi-Martan district, a source at the Chechen Interior Ministry told Russian

news agency, Itar-Tass.

"Unidentified gunmen opened fire at a travelling police post from fire arms in Achkhoi-Martan village at around 21:10 Moscow time on Wednesday.

Two policemen were wounded. They were taken to hospital in Achkhoi-Martan," the source said.

The police are combing the area from were the fire attack had come.

Soyuz crew launched into spacehttp://rt.com/news/soyuz-crew-launched-space/

Published: 15 December, 2010, 22:29Edited: 16 December, 2010, 09:27

Soyuz TMA-20 with US astronaut Cady Coleman, Italian astronaut Paolo Nespoli and Russian cosmonaut Dmitry Kondratiev on board blasts off from the Russian leased Baikonur cosmodrome early morning on December 16, 2010 (AFP Photo / Dmitry Kostyukov)

A Soyuz TMA-20 spacecraft carrying a three-person crew has been launched from the Baikonur Cosmodrome in Kazakhstan.

Russian cosmonaut Dmitry Kondratyev, NASA astronaut Catherine Coleman and the European Space Agency's Paolo Nespoli of Italy will spend the next five months at the International Space Station.

Launch marks decade of missionshttp://www.google.com/hostednews/ukpress/article/ALeqM5g2cCzMe1QzkZVgAhwhLp7pda056Q?docId=N0172751292460100774A

(UKPA) – 3 hours ago

Astronauts from the US, Russia and Italy have blasted off into the darkness, casting a warm orange glow over the chilly plains of Kazakhstan with their Soyuz spacecraft as they began a mission to the International Space Station.

Russia's Dmitry Kondratyev, Nasa astronaut Catherine Coleman and the European Space Agency's Paolo Nespoli of Italy rode into space on the Soyuz TMA-20, which plans to dock at the orbiting laboratory on Friday.

Family and colleagues of the crew waited nervously before the launch, which kicked off with a piercing white flash succeeded by a roaring wall of sound.

Within seconds, the rocket seemed little more than a blur of incandescent flames fading into the distance.

Officials at the viewing platform gave status updates at 20-second intervals over loudspeakers until reaching the nine-minute mark, indicating the ship had reached the relative safety of orbit, prompting a lively round of cheers.

At that moment, a plush toy tiger that Coleman brought as the crew's mascot began floating in front of her, signalling the beginning of weightlessness as the spaceship reached an altitude of more than 125 miles above Earth, according to Nasa television footage.

The flight caps a decade of manned missions to the space station, which began in October 2000.

The departure of the Soyuz had been pushed back several days due the last-minute replacement of its re-entry module, which had been damaged during unloading earlier this year at the Baikonur cosmodrome in the Central Asian steppes.

Replacing a key module so late in the launch schedule had caused some apprehension, although Mr Kondratyev shrugged such worries off at a final press conference.

"All the procedures needed to check the integrity of the ship have been completed, and all those have shown positive results," he said.

Copyright © 2010 The Press Association. All rights reserved.

Ex-head of Sayano-Shushenskaya plant charged with safety violationshttp://en.rian.ru/russia/20101216/161798848.html

10:03 16/12/2010

The former director of the Sayano-Shushenskaya hydro-power plant in Eastern Siberia, where 75 people died in an explosion in 2009, was charged on Thursday for violating safety rules, the Russian Investigative Committee said.

Charges will be brought against another six people involved in the case in the near future.

MOSCOW, December 16 (RIA Novosti)

Sayano-Shushenskaya HPP former chief brought to justice

http://www.itar-tass.com/eng/level2.html?NewsID=15784904&PageNum=0

16.12.2010, 09.59

MOSCOW, December 16 (Itar-Tass) -- The former director of the Sayano-Shushenskaya hydropower plant was brought to justice in the August 2009 hydro disaster case, spokesman for the Investigation Committee (SK) Vladimir Markin told Itar-Tass on Thursday.

“The former director of the Sayano-Shushenskaya hydropower plant, a RusHydro subsidiary, Nikolai Nevolko, was charged with violation of the safety rules and other labour protection rules committed by an official who was to observe these rules that entailed the death of two and more people through negligence,” Markin underlined.

Russian Press at a Glance, Thursday, December 16, 2010http://en.rian.ru/papers/20101216/161798662.html09:42 16/12/2010

POLITICS

Between 800 and 1,200 people were detained on Wednesday evening across Moscow as Russian nationalists clashed with internal migrants from the North Caucasus. The operation was aimed at preventing another mass riot following the violence on Manezh Square on Saturday.

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

The Foreign Ministry accused the UK of "paranoid spymania" on Wednesday and hinted that the arrest of a Russian aide to a member of parliament could set back efforts to improve relations with London.

(Moscow Times)

Russian President Dmitry Medvedev demanded that Foreign Intelligence Service (SVR) officials take heed of the WikiLeaks scandal and prevent any leak of secret Russian data.

(Rossiiskaya Gazeta)

ECONOMY

The Finance Ministry plans to deprive small businesses of the simplified tax rules they currently enjoy in a bid to increase state finances.

(Vremya Novostei)

The Economic Development Ministry has adjusted its forecast for Russia's social and economic development for 2011-2013.

(Vedomosti)

SOCIETY

The verdict announcement for the case against former Yukos CEO Mikhail Khodorkovsky and his business partner Platon Lebedev was postponed on Wednesday by two weeks. Judge Viktor Danilkin gave no explanation for the delay.

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

The 2010 annals of corruption stories took a creative twist this week when the public learned that Moscow's metro chief is also a talented inventor.

(Moscow Times)

Muslim religious leader Anas Pshikhachev, the key ideological fighter against local Wahhabis, was shot dead in Kabardino-Balkaria.

(Kommersant)

The Transportation Ministry does not think road construction expenses are too high. The estimated cost of one meter of the planned Moscow-St. Petersburg toll road exceeds 1.18 million rubles ($38,400).

(Nezavisimaya Gazeta)

ENERGY

The Caspian Pipeline Consortium agreed on Wednesday to invest $5.4 billion to double the pipeline's annual capacity to almost 70 million tons.

(Moscow Times)

CRIME

Krasnodar Governor Alexander Tkachyov fired a senior regional official on Wednesday over the gruesome murder of 12 people, including four children, in the local village of Kushchyovskaya .

(Moscow Times)

DEFENSE

Russia's top military officials have decided to increase the number of contract servicemen in the armed forces, despite earlier plans to cut numbers.

(Vedomosti)

The United States will not oust Russia from India's armaments market, but New Delhi expects concessions from Moscow on nuclear issues.

(Nezavisimaya Gazeta)

AUTOMOBILES

There were more reported thefts of the Honda CR-V crossover than any other car, reports from the largest Russian insurance companies show. Mitsubishi Lancer took second place, and Mazda 3 came third.

(Rossiiskaya Gazeta)

Russian man bashed for bad drivinghttp://news.msn.co.nz/article/8184476/russian-man-bashed-for-bad-driving

By MSN NZThursday, December 16, 2010 6:00:00 PM

A Russian man has been bashed by a dozen drivers after his reckless driving caused a 16 car pile-up in Moscow.

Moscow resident and video operator Oleg N, 44 was driving a silver SUV down Samotechnaya Street when his vehicle rammed into the back of a parked car.

The accident took place in the Garden Ring — a circular avenue in the centre of Moscow.

The impact of the collision caused a chain reaction and saw 12 cars ahead of him smash into each other causing the air to fill with smoke.

The driver then tried to flee the scene, reversing his car and slamming it into four more cars.

He then drove forward before coming finally coming to a stop.

Despite his face being covered in blood, video footage shows the infuriated drivers jumping onto him, repeatedly swearing at and punching him.

Oleg was on his way to see his wife and son who was with his mother Svetlana Konstantinova.

Mrs Konstantinova told the Life News that she does not believe her son was such a bad driver, saying she had spoken to him just two hours before the accident.

She was quoted as saying that her son is a sober driver who rarely drinks but as a creative person may have been suffering from insomnia.

Chechen politicians visit L-Ahttp://www.sunjournal.com/city/story/957595

By Bonnie Washuk, Staff WriterPublished Dec 16, 2010 12:00 am | Last updated Dec 16, 2010 12:00 am

LEWISTON — A delegation from the Parliament of Chechnya, a republic of the Russian Federation, toured Lewiston-Auburn on Wednesday as part of their visit to learn about American-style local government.

During a reception at the University of Southern Maine's Lewiston-Auburn College, the Chechens stood in front of the room introducing themselves through an interpreter.

One is a newspaper writer and editor. Another was a police officer before being elected to Parliament. Another worked as a detective and a college professor.

Barry Rodrigue, an associate professor at LAC who has established relations with Chechen academics, said he received a call from the State Department last year. As far as they were aware, he was the only professor working in Chechnya, Rodrigue said, and was asked if he would host a visit from members of the Chechen Parliament.

“We are greatly honored to be selected for them to come,” Rodrigue said. He hopes the visit brings more ties between Maine and Chechnya, including a new partnership in which students in both regions work together on environmental and economic issues.

Rodrigue said he hoped the visit would highlight peaceful initiatives happening in Chechnya.

For years Chechnya was war-torn, with local rebels fighting government troops over Russian control, leaving the region in ruins. Eventually, a peace accord with Moscow was reached. In 2005 Chechnya held elections for its Parliament. Since then, there has been sporadic violence, but reconstruction is happening.

Several members of the delegation said the war is over, Chechnya is now safe.

“Chechnya is one of the best subjects of the Russian Federation now,” said Khusayn Yakhikhanov, a former police officer who is a member of Parliament in the United Russian political party. Cities destroyed by fighting are being restored. “You can tell life has normalized.”

Yakhikhanov said he liked Maine culture. People seemed relaxed, not too serious.

Khamzat Dadayev, who has worked as a detective, a researcher and a professor, said he wanted to learn about the United States' education system. He was impressed to learn about financial help available to college students, and was surprised to discover young students could be home-schooled with tests that show good results.

Adlan Sagaipov, an editor and senior writer at a government-run newspaper, said some of his stereotypes of Americans had disappeared since arriving in Maine on Friday.

One was that the average American lives in a big city. He's been touring Maine since Friday, visiting Portland and Brunswick and small towns. In Maine communities, people are interested in learning more about different cultures, he said.

Reflecting on Chechnya, it can be difficult to co-exist with neighboring states, he said. But “we have no choice. We have to deal with other cultures. From this point of view, I like the tolerance of people here in this multiculture.”

Reza Jalai, coordinator of Multicultural Student Affairs for USM, said most Chechens are Muslims and were sometimes persecuted in the former Soviet Union. He told them that as Muslims, they're safe here, that the religion “is not only tolerated but respected. To some of them it was news that Maine has seven mosques” — two in Lewiston, three in Portland, and one each in Orono and Augusta, he said.

They were impressed, he said, with how many Muslims live in Maine. “We think there are 8,000 to 10,000, which is amazing for the whitest state in the country.”

The exchange between Chechnya and Maine is important, Jalai said. Often Americans are defined abroad “by governments or groups that don't like us. The whole story is not being told. Anything we can do to bring people together is really important. It's citizen diplomacy. We need this.”

bwashuk@sunjournal.com

Russian educators get tips in Oak Ridge http://www.knoxnews.com/news/2010/dec/15/russian-educators-get-tips-in-oak-ridge/

Visit focuses on teaching people with disabilities

By Bob Fowler

Posted December 15, 2010 at 9:16 p.m.

OAK RIDGE - Russian educators from St. Petersburg to Siberia are learning this week how East Tennesseans educate and care for people with mental and physical disabilities.

"I can see there is something we can take back to Russia," said Irina Monkhorova, speaking through an interpreter. She's with a Siberian republic's education ministry.

Monkhorova and four other Russian educators are touring schools and special centers for children and adults with disabilities in Oak Ridge and Kingston before returning to Moscow on Saturday.

The art therapy program she saw Tuesday at Kingston's Michael Dunn Center fascinated her, Irina Polyanskaya said.

A psychologist for children in St. Petersburg orphanages, Polyanskaya said she would "definitely use that program."

The Russians' visit comes via the Open World Program supported by the U.S. Congress and the Oak Ridge Sister City Support Organization, organization secretary Dr. Ken Luckmann said.

Now in its 21st year, the Sister City group has established ties with Naki-shi in Japan and Obninsk in Russia.

Russians still commonly segregate children with disabilities, placing them in boarding schools, Monkhorova said.

While American schools have teaching assistants to help special-education teachers, Russian schools lack funding for assistants and parents often fill those roles, she said.

She said the Russian parliament is considering a law that will move children with disabilities into mainstream schools.

Before watershed legislation in 1975, children with disabilities in America "were pretty much warehoused," Oak Ridge Schools Superintendent Tom Bailey said.

Hal Jernigan, director of special education at Oak Ridge Schools, said nearly one-quarter of Oak Ridge school enrollees - 1,016 children - are identified as special-education students. One-third of them are in that group because they're deemed "intellectually gifted,'' he said.

Bob Fowler, News Sentinel Anderson County editor, may be reached at 865-481-3625.

Russia to retrieve control over uraniumhttp://english.pravda.ru/business/finance/16-12-2010/116233-russia_uranium-0/

16.12.2010

Russia and Mongolia signed an agreement establishing a joint venture for uranium mining "Dornod Uranium." The reserves of the fields are estimated at 22 thousand tons. The controlling stake in the future joint venture will be owned by the Mongolian side, and a subsidiary "Atomredmedzoloto" of Argun Mining and Chemical Association will act as the operator of the project.

The Russian government agreed on the development of joint projects with the Mongolian side last year. OAO Russian Railways (RZD) has become the managing company of the Ulan Bator railway with 50% of shares. It was a joint venture between OAO Russian Railways, and two Mongolian state companies - Erdenet IPF and MIZ - to improve rail infrastructure.

At the recent meeting of Prime Ministers of Russia and Mongolia, the parties have agreed to increase the authorized capital of Russian-Mongolian joint-stock company Ulaanbaatar Railway by $250 million in equal shares. VTB is also able to provide a loan for the purchase of Russian locomotives.

"Aeroflot has agreed with the Mongolian airline MIAT on joint operation of airlines. MIAT has suspended flights of its aircrafts on the route Moscow - Ulan Bator - Moscow, and the Russian company will increase flight frequency from three to five times a week."

Russia has been trying to get back to Mongolian uranium mines since 2007. In 2009, the country voiced its intention to establish a joint venture to develop uranium deposits launched by Soviet specialists. In particular, Russia was interested in Dornod deposit. However, the development license belonged to the Central Asian Uranium Company (TSAUK), and the company was monitored by the Canadian company Khan Resources (58% of shares).

In May, Rosatom chief Sergei Kiriyenko said that the Government of Mongolia in the near future may decide to establish a joint venture with Russia to develop a uranium deposit.

"The constituent documents of the joint venture have been already submitted to the Mongolian side. Just recently we met with the secretary of the Security Council of Mongolia. He confirmed to us that in the near future, the Government of Mongolia will make a final decision on this deposit [ ...] actually on the establishment of our joint venture," said head of Rosatom Kiriyenko.

There have been other signs of the Russian-Mongolian rapprochement. In July, President of Mongolia Tsakhiagiin Elbegdorj lowered to the bottom of Lake Baikal in bathyscaph "Mir".

Last fall the joint tactical exercises "Darkhan-3" of the units of Russian and Mongolian armies were held in Buryatia. One thousand military personnel and up to 200 units of military equipment of the armed forces of Russia and Mongolia participated in the training.

At the same time, the Russian company announced an offer to purchase the shares of Khan Resources, but the Chinese from CNNC have won the bid by offering higher price. Canadians

regarded the Russian proposal as a hostile takeover, but they were satisfied with the price offered by the Chinese.

Yet, Ulan Bator with whom the Canadians have not coordinated their actions did not want the Chinese. On these grounds, TSAUK had its license revoked, and the Mongols will be developing the uranium deposit with Russian companies. According to the assessment of Kiriyenko, at the first stage of the project the investment will amount to $300 million.

Incidentally, this year ARMZ made an agreement with another Canadian company, Uranium One, regarding the purchase of its assets in Kazakhstan, Australia and the USA. The transaction is expected to close by the end of the year.

In turn, Russia is ready to write off 97.8% of the Mongolian debt, which is $172 million, and issue a new loan of $125 million.

"We have agreed to cancel the debt at 97.8%, the remaining 3.8 million dollars will be repaid as a lump sum. This will open a new page in our credit and financial relations," RIA Novosti quoted Kudrin.

Also, Russia will give Mongolia 375 million rubles for the vaccination of livestock to increase the import of meat and milk to the Russian market, said Prime Minister Putin.

Anatoly MiranovskyPravda.Ru

National Economic Trends

Industrial Output Jumps http://www.themoscowtimes.com/business/article/industrial-output-jumps/426799.html

16 December 2010

Annual industrial production accelerated more than analysts estimated in November, led by the manufacturing of cars and tractor trailers as an economic recovery overcame a “pause.”

Production rose an annual 6.7 percent, compared with 6.6 percent in the previous month, the State Statistics Service said Wednesday.

“The pause in growth is over,” Deputy Economic Development Minister Andrei Klepach said Wednesday. “The economy in September and October demonstrated fairly good growth” and this year’s industrial output is set to exceed previous estimates.

(Bloomberg)

Russian Economy Ministry Cuts 2010 GDP Forecast (Update1) http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=au.Z.4dRte10

By Maria Levitov

Dec. 15 (Bloomberg) -- Russia’s economy will expand less than previously estimated as lower income growth slows retail sales, Deputy Economy Minister Andrei Klepach said.

Gross domestic product will probably rise 3.8 percent this year, compared with a previous forecast of 4 percent, Klepach told reporters in Moscow today. The economy will show "positive dynamics" in the fourth quarter after shrinking on a seasonally adjusted basis in the third, he said.

Russia’s recovery from last year’s 7.9 percent contraction was hindered by a record heat wave, which hobbled agricultural output, forced some manufacturers to halt production and crimped consumer demand. The economy will be able to fully overcome its "crisis contraction" by the end of next year, Klepach said.

"The pause in growth is over," he said. "The economy in September and October demonstrated fairly good growth."

Higher investment is fueling growth more than previously expected, while household consumption is weaker on slower income growth, Klepach said.

Capital investment is set to rise 5.9 percent this year, up from the previous forecast of 2.5 percent, he said. Retail sales will probably increase 4.5 percent, less than the Economy Ministry’s earlier estimate of 5.2 percent. Disposable income is set to rise 3.8 percent this year, down from the previous forecast of 4.4 percent, he said.

‘Fairly Good’

"We see fairly good income growth, but it’s a little bit weaker" than expected even though unemployment is falling, Klepach said. "It looks like companies are already getting ready for future payroll-tax increases, which may be holding them back."

Payroll taxes Russian companies contribute to the national pension and health-care systems are set to rise to 34 percent in 2011 from about 26 percent this year. Small businesses will have a two-year grace period before they have to pay the higher rate of the tax, Russian President Dmitry Medvedev said on Nov. 30.

There is a greater likelihood economic growth will beat the Economy Ministry’s 3.8 percent forecast this year rather than miss it, Klepach said.

To contact the reporter on this story: Maria Levitov in Moscow at mlevitov@bloomberg.net

To contact the editor responsible for this story: Willy Morris at wmorris@bloomberg.net

Last Updated: December 15, 2010 11:28 EST

Russia May Produce 4.5 Million Tons of Poultry, Interfax Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=adhF3wsUEeWA

By Marina Sysoyeva

Dec. 16 (Bloomberg) -- Russian poultry output may increase to 4.5 million metric tons by 2020, allowing for more exports, Interfax reported, citing Vladimir Fisinin, president of the Russian Poultry Producers Union.

Russia has potential to export poultry and eggs to the Commonwealth of Independent States and Europe, Fisinin said at a meeting in Moscow, according to Interfax. Russia exported 200,000 tons of broiler chickens this year, Interfax said, citing Fisinin.

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

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

Last Updated: December 16, 2010 02:19 EST

Business, Energy or Environmental regulations or discussions

Russian Corruption Hurting Stock Prices, Micex’s Chief Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aPgQF_FLTzBk

By Emma O’Brien

Dec. 16 (Bloomberg) -- Corruption is a “problem” for Russia that’s hurting stock prices, Micex Stock Exchange President Ruben Aganbegyan said.

“Certainly corruption is a factor in how investors think about us,” Aganbegyan said in an interview in Moscow yesterday. “It’s certainly in the price for sure of Russian assets.”

The world’s largest energy exporter is the most corrupt member of the Group of 20 nations, Transparency International said in its annual survey released in October.

While President Dmitry Medvedev has called fighting graft a priority since coming to power in 2008, recorded cases of bribery increased to 5,708 in the first half of the year from 5,633 in the same period of 2009, Prosecutor General Yuri Chaika said Oct. 13.

-- Editor: Brad Cook.

To contact the reporter on this story: Emma O’Brien in Moscow at eobrien6@bloomberg.net

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

Last Updated: December 16, 2010 03:34 EST

New York, London Exchanges Seek Moscow Tie-Up, Micex Chief Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aIg.Kn1tc0vM

By Emma O’Brien

Dec. 16 (Bloomberg) -- New York and London stock exchanges are pursuing partnerships with Moscow’s Micex that may lead to partial ownership of the Russian bourse, Micex Stock Exchange President Ruben Aganbegyan said.

“Quite a lot of people would like to cooperate with us,” Aganbegyan said in an interview in Moscow yesterday. “Deutsche Boerse is a good partner, but then there’s a few others who would love to basically work with us, like NYSE, Nasdaq, LSE.”

Frankfurt-based Deutsche Boerse AG, Europe’s largest exchange by market value, is in talks with Micex and its Moscow rival RTS on creating an alliance that may see equity swapped as part of the deal, two people involved in the talks said Dec. 3.

President Dmitry Medvedev is seeking to transform Moscow into an international financial center as part of a drive to diversify the economy away from natural resources. Uniting the Micex and RTS and allying with foreign bourses will help lure investment to the state privatization program, First Deputy Prime Minister Igor Shuvalov said in an October interview. The government expects to raise 1 trillion rubles ($32.5 billion) selling shares in state companies over the next three years.

Aganbegyan, who left Renaissance Capital, the Moscow-based investment bank half-owned by billionaire Mikhail Prokhorov, to head Russia’s largest bourse in June, said his goal is to attract foreign investment as the exchange seeks to slow the flow of overseas listings by Russian companies.

Rusal, Mail.ru

United Co. Rusal, billionaire Oleg Deripaska’s aluminum producer, raised $2.2 billion in Hong Kong in January in the biggest Russian IPO this year. Mail.ru Group Ltd., a Russian investor in

Facebook Inc., raised more than $1 billion last month on the London Stock Exchange, Europe’s oldest independent bourse. NYSE Euronext runs the New York Stock Exchange as well as markets in Paris, Lisbon, Amsterdam and Brussels, while NASDAQ OMX Group Inc. owns the Nasdaq Stock Market in New York.

Jon Edwards, an LSE spokesman, couldn’t be reached for comment when Bloomberg called before regular business hours today and voice messages left at the NYSE and Nasdaq weren’t returned immediately.

While Micex and Deutsche Boerse have no concrete plan to swap equity stakes, “any idea should be considered,” Aganbegyan said. Micex itself “is not in any negotiations to sell any shares,” he said.

Russia’s central bank is the largest Micex shareholder, with 30 percent. State-owned banks VTB Group, OAO Sberbank and VEB also hold stakes. RTS is owned by Russian and international investment banks including UBS AG, Deutsche Bank AG and Credit Suisse Group AG, according to the bourse’s website.

Micex is seeking a “friendly takeover” of RTS, central bank First Deputy Chairman Alexei Ulyukayev said Nov. 18.

Aganbegyan said the Micex and RTS tie-up will happen “as soon as possible” after RTS shareholders give “clarity” about their plans.

To contact the reporter on this story: Emma O’Brien in Moscow at eobrien6@bloomberg.net

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

Last Updated: December 16, 2010 03:23 EST

Polyus Gold, Rosneft, Sberbank: Russian Equity Market Preview http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aBzyNSY4R5Ak

By Denis Maternovsky

Dec. 16 (Bloomberg) -- The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading in Moscow.

The 30-stock Micex Index added 0.2 percent to 1,670.26. The dollar-denominated RTS Index rose 0.7 percent to 1,757.71, its highest closing level since August 2008.

OAO Polyus Gold (PLZL RX): Gold fell the most in a week, declining 1 percent to $1,390.50 on the Comex in New York, on speculation that the dollar will extend a rally, eroding demand for the precious metal as an alternative asset. Shares of Russia’s biggest gold producer fell 0.7 percent to 1,843.94 rubles.

OAO Rosneft (ROSN RX): Crude oil rose, with the January futures contract adding 0.4 percent to $88.60 a barrel after the close of trading in Moscow, following a U.S. government report showing supplies plunged the most since 2002 as imports fell and refineries bolstered fuel output. Share of Russia’s biggest oil company fell 1.1 percent to 218.79 rubles. OAO Lukoil, the country’s second-biggest crude producer, rose 0.5 percent to 1,754.08 rubles.

OAO Sberbank (SBER03 RX) may be interested in bidding for Oesterreichische Volksbanken AG’s eastern Europe unit, Der Standard newspaper reported, citing unidentified bankers familiar with the planned sale. Russia’s biggest lender gained 0.3 percent to 107.67 rubles.

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

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

Last Updated: December 15, 2010 16:00 EST

Russian Stocks Snap Three Days of Gains on Crude, European Debt http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ailMp.sn8RE4

By Jason Corcoran

Dec. 16 (Bloomberg) -- Russian stocks slid for the first time this week as oil declined amid renewed concern that Europe’s debt crisis may hamper the global economic recovery and curb demand for commodities.

OAO Lukoil, Russia’s second-biggest oil producer, dropped as much as 0.8 percent. OAO Severstal, the country’s largest steelmaker and OAO Sberbank, its biggest lender, both dropped by at least 0.4 percent, helping to push the 30-stock Micex index 0.3 percent lower to 1,665.17 by 10:55 a.m. in Moscow.

Oil, Russia’s main export earner, fell 0.5 percent to $88.16 in New York. European Union divisions widened over how to contain a debt contagion threatening the euro ahead of a summit starting today meant to find agreement on a crisis-management mechanism that takes effect in 2013.

“Concern over Spanish debt, and euro zone debt in general, has again halted the global market rally,” said Chris Weafer, chief strategist at UralSib Financial Corp. in Moscow, in an e- mailed report today.

Copper on the London Metal Exchange dropped as much as 1.2 percent. Nickel, lead and aluminum also declined on the London Metal Exchange. OAO GMK Norilsk Nickel, Russia’s biggest miner, lost 0.7 percent.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

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

Last Updated: December 16, 2010 03:07 EST

Floating-Rate Debt Favored as Inflation Quickens: Russia Credit http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a_9BRgfWXCSU

By Emma O’Brien

Dec. 16 (Bloomberg) -- Traders are stepping up bets Russia will begin lifting borrowing costs from record lows to stem inflation, spurring gains in debt linked to central bank rates and losses on fixed-rate bonds.

OAO Transneft ruble notes due in 2019 with a coupon tied to Bank Rossii’s one-year repurchase rate jumped 7.1 percent since the central bank last reviewed target borrowing costs Nov. 26. Similar-maturity debt issued by the pipeline operator paying a fixed rate dropped 1 percent, data compiled by Bloomberg show. Notes due in 2013 from IK Strategia, a Perm-based investment company, that are tied to the refinancing rate surged 31 percent in the period versus a 34 percent drop in similar maturity fixed-rate debt of food retailer OAO Magnit, the data show.

Traders are pricing in 73 basis points, or 0.73 percentage point, of rate increases in Russia over the next three months, the most in almost three weeks, forward rate agreements show. Russia’s year-on-year inflation rate rose for a fourth month in November, to 8.1 percent, the highest level since December 2009. In Brazil, the rate jumped to 5.63 percent, the highest level since February 2009.

“Anything linked to rates should be seen as a potentially good investment going into 2011 given the market is pricing in a greater likelihood of hikes,” Luis Costa, an emerging-markets credit strategist at Citigroup Inc. in London, said in a phone interview. “These kinds of bonds should have very good potential.”

After 14 cuts to key rates between April 2009 and May this year, Bank Rossii is “free” to tighten monetary policy “in case it’s necessary,” First Deputy Chairman Alexei Ulyukayev said in a Dec. 1 interview in London.

The central bank’s Chairman Sergei Ignatiev said last week that inflation is a “worry” and policymakers may control it by raising rates in the first quarter of next year.

‘Loved’ by Investors

Russia’s refinancing rate, currently at a low of 7.75 percent, will rise to 8 percent by the end of the first quarter, according to the median estimate of 19 analysts surveyed by Bloomberg before Bank Rossii’s Nov. 26 announcement. Russia doesn’t target one benchmark rate. The rate charged on overnight repurchase loans is 5 percent, while the deposit rate is 2.5 percent, both also at record lows.

Brazilian Floaters

“These bonds are loved by portfolio investors, but there’s few of them in Russia,” Dmitry Gritskevich, a fixed-income analyst at OAO Promsvyazbank, said in St. Petersburg last week. “Once our market grows more of these will develop.”

Bonds linked to official rates or consumer prices make up more than 60 percent of the Brazilian local-currency debt market, according to data from the Treasury. Fixed-rate real- denominated bonds accounted for 36.7 percent of total outstanding debt of 1.5 trillion reais, while inflation-linked bonds made up 28.4 percent and floating-rate securities with interest tied to the interbank rate, known as Selic, represented 33.3 percent.

Russia has just four bonds with so-called floating rates tied to either inflation or borrowing costs, and only a few with coupons that switch to official or money market rates after a fixed period, Bloomberg data shows.

Notes maturing 2014 of Moscow-based OAO Russian Railways tied to the one-week repurchase rate climbed to a three-week high of 103.45 on Dec. 14, while fixed-rate 2014 bonds have dropped 0.6 percent this month to 121.12 yesterday.

Question of Timing

Investors need to be convinced that interest rates are going to rise to buy bonds linked to official borrowing costs, said Dmitry Dudkin, head of fixed-income research in Moscow at UralSib Financial Corp.

“The problem is timing,” Dudkin said by e-mail Dec. 7. “For investors it’s not clear when exactly the rates go up and if they stay low for, say another 12 months, then the return on floaters will be noticeably lower than on longer-term bonds.”

The ruble was little changed at 30.66 per dollar at the end of trading yesterday. Non-deliverable forwards, or NDFs, which provide a guide to expectations of currency movements and interest rate differentials and allow companies to hedge against currency movements, showed the ruble yesterday at 30.9668 per dollar in three months.

Russia’s dollar bonds due in 2020 rose yesterday, pushing the yield 3 basis points lower to 5.04 percent. The price of the country’s ruble notes due August 2016 rose for a second day, pushing the yield down 1 basis point to 7.69 percent.

Extra Yield

The extra yield investors demand to hold Russian debt rather than U.S. Treasuries rose 3 basis points to 193 points yesterday, according to JPMorgan EMBI+ Indexes. The so-called spread compares with 125 for debt of similarly rated Mexico and 163 for Brazil, which is rated two steps lower at Baa3 by Moody’s.

The spread on Russian bonds is 33 basis points below the average for emerging markets, down from a 15-month high of 105 in February, according to JPMorgan Indexes.

The cost of protecting Russian debt against non-payment for five years using credit-default swaps was 142 basis points yesterday, down from this year’s peak of 217, according to data provider CMA. The contracts pay the buyer face value in exchange for the underlying securities or the cash equivalent should a government or company fail to adhere to its debt agreements.

Credit-default swaps for Russia, rated Baa1 by Moody’s Investors Service, its third-lowest investment grade rating, cost 13 basis points less than contracts for Turkey, which is rated four levels lower at Ba2. Russia swaps cost as much as 40 basis points less on April 20.

Developing Market

Bonds linked to inflation or interest rates will only take off once Russia moves to a real inflation-targeting regime that sets one benchmark rate, said Nikolay Podguzov, head of fixed- income strategy at VTB Capital, the Moscow-based investment banking arm of Russia’s second-largest lender.

Russia’s Finance Ministry has one federal bond, or OFZ, linked to the consumer price index. The 2018 note issued in 2004 has traded unchanged in December.

“As the central bank steadily moves towards inflation targeting and market participants gain more confidence that their monetary policy is more reliable then these bonds will become more popular,” Podguzov said by phone in Moscow on Dec. 8. “In order to successfully trade these bonds you need to have a good understanding of how to measure inflation expectations and we’re not quite there in Russia yet.”

To contact the reporter on this story: Emma O’Brien in Moscow at eobrien6@bloomberg.net

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

Last Updated: December 16, 2010 01:37 EST

Boeing May Win $5 Billion Order From Aeroflot, Vedomosti Says http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aUL.sFTY2Tcs

By Jason Corcoran

Dec. 16 (Bloomberg) -- OAO Aeroflot, Russia’s largest airline, agreed to buy as many as 20 long-range aircraft from Boeing Co. to expand its fleet before the 2014 Winter Olympics in the Black Sea resort of Sochi, Vedomosti reported.

State-run Aeroflot signed an agreement of intent this week to buy eight B777-200ER and eight B777-300ER aircraft and may seek to acquire four B787 Dreamliners, the newspaper said today, citing two unidentified people familiar with the situation.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

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

Last Updated: December 16, 2010 01:04 EST

Aeroflot to buy 20 long-haul Boeings http://www.bne.eu/dispatch_text13888

VTB CapitalDecember 16, 2010

News: According to Kommersant and Vedomosti, Aeroflot has signed a preliminary agreement with Boeing to buy 16 long-haul aircraft: eight B777- 200ERs and eight B777-300ERs. The catalogue prices of the planes are in the range of USD 232-284mn, and they are to be delivered in 2012-17. In addition, Aeroflot has the option to buy four B787s in 2013 (catalogue price of USD 741mn).

Our View: This is in line with Aeroflot's traditional strategy of using Boeings on long-haul routes. For image considerations, the company needs the B787 Dreamliners to be delivered before the 2014 Winter Olympics in Sochi. The fact that it is obtaining satisfaction on this point is further confirmation of the strengthening relationship between Aeroflot and Boeing.

We note that the planes are being bought, which is in contrast with the industry practice of leasing planes. This is suboptimal for Aeroflot as it is taking more risks onto itself, whereas we believe it could have obtained good conditions for a leasing contract. We also see this as an indication that the deal under which Rostekhnologii is to lease 50 Boeings to Aeroflot might be implemented (and we are cautious on this deal).

On the back of this, we are reiterating our Hold recommendation for the stock.

Elena Sakhnova

RUSAL sees spot aluminium at $2,400-2,500/T in 2011http://www.forexyard.com/en/news/RUSAL-sees-spot-aluminium-at-2-400-2-500/T-in-2011-2010-12-16T055120Z-US

Thursday December 16, 2010 08:51:05 PM GMTRUSAL/ (URGENT)

HONG KONG, Dec 16 (Reuters) - Russia's United Company RUSAL <0486.HK><RUAL.PA>, the world's top aluminium maker, said on Thursday that it sees next year's aluminium prices at $2,400-$2,500 per tonne and global demand for the lightweight metal to rise 8 percent.

The company said the spot market price for alumina, which is used in the production of aluminium, may reach $400 per tonne in 2011 on strong demand from China and other regions, it said in a statement.

Deputy Chief Executive Oleg Mukhamedshin told reporters in November in Hong Kong that aluminium prices in 2011 would be roughly at current levels or higher, referring to a guidance of $2,400-$2,500 per tonne for the fourth quarter. (Reporting by Alison Leung; Editing by Chris Lewis)

Uralkali Said to Be Near Accord to Buy Potash Producer Silvinit http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aioPoeh_vFoM

By Ilya Khrennikov and Ilya Arkhipov

Dec. 16 (Bloomberg) -- OAO Uralkali, Russia’s biggest fertilizer company, is nearing an agreement to buy OAO Silvinit, its largest domestic competitor with a market value of $6.9 billion, according to two people with knowledge of the matter.

Uralkali won government approval to create a national champion to compete internationally, the people said, declining to be identified because the plan is confidential. The transaction is likely to be announced this month, they said.

Russian billionaire Suleiman Kerimov and partners acquired controlling stakes in Berezniki, Ural Mountains-based Uralkali and Silvinit between June and August and have been seeking to merge the two. The combined group would account for 17 percent of the world’s potash output, making it the second-largest producer after Canada’s Potash Corp. of Saskatchewan Inc., according to Fertecon Ltd., a U.K.-based industry consultant.

Alexey Sotskov, a spokesman for Uralkali in Moscow, and Anton Subbotin, representing Silvinit, declined to comment. Dmitry Peskov, a spokesman for Prime Minister Vladimir Putin, said the premier is “informed about the ongoing merger” and declined to comment on any government approval.

The world’s eight largest potash miners, whose market control already exceeds that of oil cartel OPEC, have been seeking to tighten their grip on prices of the crop nutrient. BHP Billiton Ltd. last month scrapped a $40 billion bid for Potash Corp. following opposition from Canada’s lawmakers.

Price Gains

With the global population adding 75 million people a year, food demand is set to put further strain on crops, increasing the need for fertilizer. Consolidation among producers of potash, a form of potassium used to boost yields by helping plants withstand dry soil, has caused concern in countries such as India, the biggest importer last year, that prices will rise.

A fivefold surge in potash prices over 2007-2008 led to at least eight class-action claims in the U.S. over alleged collusion, a charge the producers denied. Potash was among the last commodities to plunge in the global recession as suppliers cut output to prop up prices. Potash Corp. used a third of its capacity last year, while none of its seven largest rivals used more than 80 percent, Fertecon and Potash Corp. data show.

Kerimov directly owns 25 percent of Uralkali through his Kaliha Finance Ltd. holding company, and together with partners controls 53 percent, Uralkali said in June.

The billionaire owns 25 percent of Silvinit, according to newspaper Vedomosti. His control expands to 69 percent when accounting for the 44 percent stake acquired by his partners in August, a person familiar with the purchase said at the time.

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

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

Last Updated: December 15, 2010 16:00 EST

Russia: Putin advised of potash producers' mergerhttp://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=117007&sn=Detail&pid=102055

Vladimir Putin's spokesman confirms PM aware of merger talks between Uralkali and Silvinit.

Author: Gleb BryanskiPosted:  Thursday , 16 Dec 2010

MOSCOW (REUTERS) - 

Russia's Prime Minister Vladimir Putin has been informed of a merger between the country's two major producers of fertiliser component potash, his spokesman Dmitry Peskov told Reuters on Wednesday.

"He is informed about the ongoing merger between Uralkali and Silvinit," Peskov said by telephone.

Peskov's comments effectively confirm long-standing speculation that the two producers may merge.

No major merger or acquisition, particularly involving natural resources, goes ahead in Russia without the knowledge of Russia's powerful prime minister.

A spokesman for Uralkali could not immediately be reached for comment.

Uralkali and Silvinit have been widely tipped as merger partners since the Russian billionaire Suleiman Kerimov and associates bought controlling stakes in both companies during the summer.

Together they produce around 11 million tonnes of potash every year -- second in the world behind Canada's Potash Corp POT.CA.

The potash industry took centre stage on global markets earlier in the year when giant Australian miner BHP Billiton (BHP.AX: Quote) launched a hostile $39 billion bid for Potash Corp -- a move eventually repelled following opposition by Canadian authorities.

Privately held Russian fertiliser minnow Phosagro has also said it is interested in a stake in Potash Corp, but a firm offer is not expected imminently.

Potash prices have soared this year due to its importance in growing food for an expanding world population.

(Reporting by Gleb Bryanski; writing by Melissa Akin and John Bowker; Editing by Mike Nesbit)

Norlisk Nickel: "We own the Honeymoon Well project"http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=117016&sn=Detail&pid=102055

Thursday , 16 Dec 2010

Moscow, December 15, 2010 - In connection with a number of publications in Russian media covering Australian projects of MMC Norilsk Nickel (the Company), we would like to state the following:

MMC Norilsk Nickel actually owns Honeymoon Well project in Australia. The project is one of the integral parts of the Company's asset development program in this country. Honeymoon Well is considered for both the independent implementation and as a potential resource base for Cawse enterprise, which the Company plans to launch after completion of the feasibility study for the project. Currently the Company is not negotiating joint development of Honeymoon Well with BHP Billiton.

Furthermore, MMC Norilsk Nickel has a joint venture with BHP Billiton - the Albion Downs project - part of the Company's exploration program in Australia. The results of the currently held exploration works will allow evaluating prospects of the future development of this deposit.

ABOUT MMC NORILSK NICKEL:

MMC Norilsk Nickel, a company incorporated under the laws of the Russian Federation, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.

The key production units of the Company's group in Russia are at the Polar and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, USA, Australia, Botswana and South Africa.

MMC Norilsk Nickel's shares are traded at MICEX and RTS. ADR's on the Company's shares are traded on the other the counter market in the US and at the London and Berlin stock exchanges.

Trans-Siberian Gold production start pushed backhttp://www.stockmarketwire.com/display/?id=4034885&sectionId=standardNews

09:21 15/12/2010

StockMarketWire.com - Russia-focused miner Trans-Siberian Gold plc warned that the start of production from its Asacha project in Kamchatka, previously expected in the first quarter of 2011, will be delayed until the middle of the year.

It blamed a delay in the manufacture and delivery of high-voltage cables and other electrical equipment, pumps for the fire station and sewage treatment; additional design works required for early commissioning of the cyanide and fuel storage facilities in accordance with regional and local regulations; and the early onset of winter snow.

The likely impact of these factors on the pace of construction meant an additional three to four months would be needed to complete the plant, said the company.

Underground mine development was continuing as scheduled. During the 11 months to end-November, mine development and preparation works, by-product extraction and exploration works amounted to more than 1,450m and more than 15,000 cubic metres. Ore mined during

mine development activities in this period totalled about 18,700 tonnes.

Work on the tailings storage facility was affected by exceptional rainfall during the summer. Construction of the technological pipelines is scheduled for the first quarter of 2011.

Shares were down 4p at 62p.

DJ Eurasia Mining: Monchetundra License Extended To December 2012http://www.tradingmarkets.com/news/stock-alert/eusmf_dj-eurasia-mining-monchetundra-license-extended-to-december-2012-1369617.html

Posted on: Wed, 15 Dec 2010 09:09:14 ESTLONDON, Dec 15, 2010 (Dow Jones Commodities News via Comtex) --

Eurasia Mining PLC (EUA.LN), a firm engaged in exploration for and development of platinum group metals, gold and other minerals in Russia, said Wednesday its exploration license at Monchetundra in the Kola Peninsula in Russia has been extended for a further two years to December 2012.

MAIN FACTS:

-Extension will enable the company to continue to progress the exploration work at the site.

-Company intends to focus on developing mine plans to allow the application for a production license to be made during the term of the extension.

-Monchetundra drilling results include intercepts up to 10.28 g/t Palladium equivalent in the West Nittis contact zone as well as discovery of a new hanging wall zone of platinum group metals, or PGM, mineralization in an intersection returning 2.66 g/t Platinum and 8.2 g/t Palladium.

-Drilling was completed on a sub-area known as "West Nittis" and targeted shallow, flat dipping, open pittable mineralization in an area where no previous drill testing had been undertaken by the Company.

-Total of 1,316 meters in 9 drill holes were completed and from this work the basal mineralized zone was confirmed in 7 holes.

-Zone consists of sulphide mineralization which contains base metals with platinum group metals.

-Additional drilling is underway to further test these hanging wall structures, as they would add significantly to any open pittable resource defined in the West Nittis sub-area.

-Shares at 1405 GMT up 0.05 pence or 4.55% at 1.20 pence.

-By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, tapan.panchal@dowjones.com

(END) Dow Jones Newswires

Leo Himmelbauer | 12.16.2010 | 08:19Siemens is expanding in the Russian financial market

http://www.wirtschaftsblatt.at/home/boerse/binternational/siemens-expandiert-im-russischen-finanzierungsmarkt-451649/index.do?_vl_pos=r.1.NT

GOOGLE TRANSLATIONSiemens intends to acquire the Russian leasing finance company delta of the managed by Delta Private Equity Partners, U.S. Russia Investment Fund. The acquisition is an important step in international growth strategy of the financial services division (SFS). They positioned SFS as a major provider of investment financing in the Russian market, said Siemens On Thursday. To purchase price, there are no details.The transaction is subject to approval by the Russian regulatory authorities and is expected to be completed in the first quarter of 2011. "With leasing delta we build our international network and strengthen our asset finance business in one of the most important growth markets, " Roland Chalons-Browne, CEO of SFS.As one of the fastest growing leasing companies in Russia is leasing delta through a nationwide network of 15 branches and 285 employees. The in-resident of Vladivostok on company has a broad market presence in Russia: Some 85 percent of the portfolio is invested outside of Moscow and St. Petersburg. For this year, expect the leasing company a new business of more than $ 200 million.

Sberbank reportedly interested in bidding for Volksbanken AG's Eastern Europe unit

http://www.bne.eu/dispatch_text13888

Renaissance CapitalDecember 16, 2010

Event: Yesterday (15 December) Der Standard reported, citing unidentified bankers familiar with the planned sale, that Sberbank may be interested in bidding for Volksbanken AG's Eastern Europe unit. According to the newspaper, Volksbanken is selling its 51% stake in Volksbank International. Germany's DZ Bank AG and France's Groupe BPCE each own 24.5%.

According to Der Standard, Volksbank International is active in nine Eastern European countries (not including Russia) and has a balance sheet of EUR14bn ($18.6bn); the sellers are reportedly aiming for a price of EUR2bn. There was no comment from Sberbank.

Action: Neutral for Sberbank, in our view.

Rationale: Expansion into Central and Eastern Europe is part of Sberbank's medium-term strategy, and Sberbank is probably looking at various potential targets in the region. In the past 12 months, there have been press reports on Sberbank potentially bidding for Poland's Zachodny Bank and Turkey's Garanti, but no deals have resulted so far.

We believe it is too early to evaluate the likelihood and impact of a potential deal wtih Volksbank, but will be watching the news flow on the issue. As with previous stories linking Sberbank to banks in the region, we believe Sberbank is on a "look-see and learn" mission, as opposed to having any real interest in acquiring the asset.

Svetlana Kovalskaya

Interview with VTB's CEO

http://www.bne.eu/dispatch_text13888

Renaissance CapitalDecember 16, 2010

Event: Yesterday (15 December) Gazeta.ru published an interview with VTB CEO Andrei Kostin, in which he makes the following statements:

• VTB's 2010E earnings will exceed RUB50bn (the previous guidance). Our current forecast is RUB54.7bn, and the consensus forecast is RUB55.4bn, so our and market expectations already reflect the more optimistic outlook.

• VTB is not considering acquiring HCCF or any other consumer finance bank. This refers to earlier speculations in the press, which have already been officially denied.

• VTB expects to buy control or 100% of Bank of Moscow in 1H11. VTB has already publicly confirmed its interest in acquiring Bank of Moscow, but Kostin's statement adds a more specific timeline (1H11). The key unknown at this stage is the price, which is crucial for evaluating a potential deal. No details on the deal's pricing have been provided yet. We understand that the price has yet to be agreed on among the parties - VTB, the City of Moscow government (46% stake) and other shareholders - whose participation will be required for VTB to gain control.

Action: Neutral for VTB, in our view.

Rationale: VTB clearly has excess capital (18% CAR as of 9M10) and is looking to utilise it for growth, including via M&A. The Bank of Moscow acquisition fits with that objective: it is a top-five bank in Russia, with total assets at 23.5% of VTB's. While VTB has consistently delivered above-average growth, RoE is more of an issue. VTB's acquisition of TransCreditBank (deal signed, to be closed early next year) looks like a decent deal to us from a price/RoE perspective:

acquiring a 25-30% RoE bank at 2.2x P/B. We will see how it works with Bank of Moscow.

Svetlana Kovalskaya

VTB hires three bankers for corporate and investment teamhttp://www.emergingmarkets.me/2010/12/vtb-hires-three-bankers-for-corporate-and-investment-team/

December 16, 2010

By Ivan Anderzhanov.

Russian state-controlled lender VTB has three bankers to supervise corporate clients in its corporate and investment business unit.

Nikolay Ustinov, a senior vice president previously at MDM Bank, will work in a department in charge of large customer relationships in such industries as metals, transport, trade and agribusiness.

Andrey Pinus, also a senior vice-president formerly at Home Credit & Finance, will supervise VTB branches and sub-offices in Moscow and the Moscow region.

Andrey Kuznetsov has also been hired from MDM as head of Moscow and the Moscow region directorate.

VTB is combining its corporate and investment banking arms in a bid to extract synergies.

For the Record http://www.themoscowtimes.com/business/article/for-the-record/426802.html

16 December 2010

The Moscow city government will spend 200 billion rubles ($6.5 billion) a year on transportation infrastructure starting in 2011, will announce $6 billion of tenders for goods and services next year, and welcomes foreign investors, Mayor Sergei Sobyanin said Wednesday. (Bloomberg)

VTB Group hopes to gain control of Bank of Moscow in the first half of 2011, RIA-Novosti reported. (Bloomberg)

Tatneft said Wednesday that nine-month profit slumped 35 percent on taxes and foreign exchange losses, with net income falling to 30.4 billion rubles ($989 million) from 46.4 billion rubles, and sales rose 24 percent to 338 billion rubles. (Bloomberg)

The inflation rate will be 8.3 percent to 8.5 percent this year, compared with an earlier government forecast for a 7 percent to 8 percent pace, Deputy Economic Development Minister Andrei Klepach said Wednesday. (Bloomberg)

DRB-Hicom, a Malaysian auto and financial services group, signed an provisional agreement with KamAZ to assemble and distribute its right-hand drive trucks, the Business Times reported Wednesday. (Bloomberg)

Gazprom chief Alexei Miller said a natural gas pipeline to China might cost $14 billion to build, Interfax reported Wednesday. (Bloomberg)

Activity in the Oil and Gas sector (including regulatory)

Gas transport tariffs to rise 12.5% in 2011 http://www.bne.eu/dispatch_text13888

Troika DialogDecember 16, 2010

The Federal Tariff Service (FTS) plans to raise the tariff that Gazprom charges independent producers for gas transportation by 12.5%, an official told Interfax. The final decision will be made on Friday. We and the Street had modeled a 15% increase, in line with the hikes in industrial domestic gas prices next year. The slower increase in transport tariffs would mean a 1.5% accretion in EBITDA for NOVATEK against what we model.

For Gazprom itself, the transport tariffs for independent producers are not a core revenue source and therefore largely irrelevant to our estimates.

Oleg Maximov

11:02Rosneft, Calik agree 50/50 JV for bunkering opshttp://www.interfax.com/news.asp10:54

Russia, Turkey could agree Samsun-Ceyhan parameters by mid-March - Sechinhttp://www.interfax.com/news.asp

Turkish, Russian firms sign oil cooperation dealhttp://www.worldbulletin.net/news_detail.php?id=67452

Calik Holding and Rosneft, Russia's state oil company, have agreed to establish a partnership company for oil trade in Turkey and the Mediterranean.

Thursday, 16 December 2010 10:10

Turkey's Calik Holding signed an agreement with Rosneft on Wednesday for cooperation in trade of oil.

The agreement was signed after extensive talks at the Ciragan Palace.

Chairman of the Executive Board of Calik Holding Ahmet Calik and President of Rosneft Eduard Khudainatov signed the agreement on behalf of their companies.

The signature ceremony was attended by Turkish Minister of Energy and Natural Resources Taner Yildiz and Russian Deputy Premier Igor Sechin.

Calik Holding and Rosneft, Russia's state oil company, have agreed to establish a partnership company for oil trade in Turkey and the Mediterranean.

The new partnership will work for oil trade in the Mediterranean and distribution of oil in Turkey.

Calik Energy and Rosneft will also work in selling oil to naval vessels.

Rosneft President sees foreign partner by 2014-Ifaxhttp://af.reuters.com/article/energyOilNews/idAFLDE6BF02R20101216Thu Dec 16, 2010 6:18am GMT

* Rosneft President Khudainatov says firm undervalued

* Needs 2-3 years before attracting strategic foreign partner

MOSCOW Dec 16 (Reuters) - Russia's largest state-owned oil producer, Rosneft , is looking to bring on a strategic foreign investor in 2014-15, Rosneft President Eduard Khudainatov told Interfax during a work visit to Istanbul.

"The management needs 2-3 years to prepare the company, because we think that today it is three times undervalued," said Khudainatov, who has rarely spoken to the press since taking the reigns at Rosneft in September.

Russia is planning to sell 15 percent of Rosneft sometime between 2012 and 2015 as part of a more than $50-billion privatisation drive intended to plug the budget deficit and spur economic growth ahead of the 2012 presidential elections.

Rosneft has a new strategic growth plan in the works that the company hopes will raise its value ahead of the 15-percent stake sale, Khudainatov said.

To read an interview with Rosneft's vice president, Peter O'Brien, on the company's preparations ahead of the asset sale see [ID:nLDE69P2BT]

Khudainatov also told Interfax that Rosneft was not in discussions with mid-size Russian oil firm Bashneft on partnering to develop the giant Trebs and Titov oilfields in Russia's Arctic Yamal Nenets region.

(Writing by Jessica Bachman; Editing by Lincoln Feast)

Lukoil president signs cooperation deal with Ivano-Frankivsk governorhttp://www.ukrainianjournal.com/index.php?w=article&id=11662

Journal Staff ReportMOSCOW, Dec. 15 – Lukoil President Vagit Alekperov and head of Ivano-Frankivsk Regional Administration Mykhailo Vyshyvaniuk have signed an agreement on cooperation.

A Lukoil report says that the agreement defines the main areas of cooperation between the sides to strengthen the industrial potential of Ivano-Frankivsk region and its social and economic development, and increase the production and sales of petrochemical products in the region and beyond.

Russian-Ukrainian joint venture on gas extraction to give profit to bothhttp://www.news.az/articles/economy/28428

Thu 16 December 2010 05:31 GMT | 6:31 Local Time“There is nothing unusual in creating a joint venture on gas extraction between Russia and Ukraine.

Russian-Ukrainian joint venture on gas extraction to give profit to both countries

The creation of the Russian-Ukrainian joint venture on gas extraction will give profit to both countries, head of the Azerbaijan Center of Oil Research Ilham Shaban said.

Earlier Russia’s Gazprom and Ukrainian Naftogaz started negotiations to create a joint venture to produce gas from the coal layers in Ukraine and for development of Palas in the Black Sea shelf.

“There is nothing unusual in creating a joint venture on gas extraction between Russia and Ukraine. In fact, the creation of the joint venture will be profitable for both parties. In this case Ukraine will get the desired volumes of supplies and Russia will get the profit it counts on”, Shaban said.

According to the expert, Ukraine does not want to subject its gas transportation system to the influence of a third country, Russia, in particular. And if we take into account that Ukraine’s current financial opportunities are limited, as a compromised solution to the issue it will prefer the variant of the accepted trilateral solution in the format European Union, Russia and Ukraine.

“I think it is absolutely clear that Russia does not want to miss the chance to regulate the Ukrainian transportation system without Europe’s participation”, he said.

Russia's Sakhalin–1 Natural Gas Developmenthttp://oilprice.com/Energy/Energy-General/Russias-Sakhalin%E2%80%931-Natural-Gas-Development.html

Written by Global Intelligence Report    Tuesday, 14 December 2010 22:58

SITUATION: In early 2009, Russia inaugurated its first liquefied natural gas (LNG) plant for East Asia at Sakhalin. After ramping up to three times its initial capacity, it will supply roughly 5% of world LNG. It is currently expected that Japan will receive two-thirds of initial exports with the rest going to South Korea and North America.

ANALYSIS:

Sakhalin is a long north-south island in Russia’s Far East close to the mainland. Its southern tip is not far from Japan’s northernmost point. Hydrocarbon deposits around it are estimated to contain 14 billion barrels of oil and 2.7 trillion cubic meters of natural gas. These are being developed by consortia including such major Western energy companies as Royal Dutch Shell and ExxonMobil. The latter operates the consortium that produces from the first of six planned stages of Sakhalin hydrocarbon development.

The Sakhalin-1 development comprises three deposits. The first is under production, the second is under development, and the third is under exploration.

Oil from the Chaivo deposit started to run through a pipeline to the De-Kastri terminal in Russia's Khabarovsk Krai in September 2006.

Drilling at the Oduptu oil and gas field began in May 2009, and commercial production began in September 2010. The product goes to the Chaivo processing facility and then to the De-Kastri for export.

The Arkutun-Dagi field is yet to be developed, but first oil is expected in 2014; it will also go to De-Kastri via Chaivo.

ExxonMobil and Gazprom disagree over export plans. Partners in Sakhalin-1 are an ExxonMobil subsidiary (30%, consortium operator), the Indian state company ONGC (30%), two affiliates of Rosneft (total 20%), and the SODECO consortium of Japanese firms (20%). ExxonMobil’s subsidiary Exxon Neftegaz is negotiating with China National Petroleum Corporation to export the gas directly to China, while Gazprom needs it to fill the Sakhalin-Khabarovsk-Vladivostok pipeline that it is constructing, because its own volumes from Sakhalin-2 and Sakhalin-3 will not be enough for that.

BOTTOM LINE: Political pressure on ExxonMobil’s Russian subsidiary Exxon Neftegaz in its dispute with Gazprom has recently increased. ExxonMobil signed a Production Sharing Agreement (PSA) for Sakhalin in 1996, and it is only one of three contracts in all of Russia that gives a stakeholder other than Gazprom the right to sell the hydrocarbon product from an energy deposit. But last month, a representative of Russia’s budget-verification committee, called the Audit Chamber, hinted that ExxonMobil’s place as project operator “may be taken up by Russian companies.” This comes barely three months after ConocoPhillips, another US company, announced that it was selling its stake in Russia in Lukoil and leaving country because it could not find any good opportunities.

BP is still being slowly and painfully squeezed out the BP-TNK joint venture, and this follows by less than a decade the state expropriation of Yukos from its chief Mikhail Khodorkovsky, who is now facing sentencing on new charges brought just as he is finishing his original jail sentence. The new threats against ExxonMobil do not bode well for foreign investors in Russia, particularly in the energy sector. This threatens in the long run to affect also Shell, which is prominent in the development of Sakhalin–2, is estimated to hold 1 billion barrels of recoverable oil and 500 billion cubic meters of gas, needed by Gazprom for the aforementioned pipeline because development of other Sakhalin blocks have lagged so badly, even if exploratory drilling on Sakhalin–3 is under way.

At Sakhalin–3, recoverable reserves of hydrocarbons are confirmed at the Veninskii block (owned by Rosneft) while the Kirinskoe block (owned by Gazprom) has commercial amounts of gas estimated at almost 25 billion cubic meters, a quarter of totally estimated reserves and probably a few hundred million barrels of associated condensate. These are among the resources upon which Gazprom is counting to satisfy demand in the Russian Far East via the projected Sakhalin-Khabarovsk-Vladivostok and also to convert at the coast to LNG for export. This has become more crucial as development may also be delayed of the Chayanda field in Yakutia, from where product is planned to feed the still-to-be-constructed Yakutia-Khabarovsk-Vladivostok pipeline, the economic and also ecological viability of which is now under question.

By. GIR Analysts

16 Dec, 2010, 04.58AM IST,ET Bureau

Rosneft, Lukoil keen to explore oil, gas in Indiahttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/Rosneft-Lukoil-keen-to-explore-oil-gas-in-India/articleshow/7109169.cms

NEW DELHI: Russian energy majors Rosneft , Lukoil and Gazprom are interested in exploring oil and gas in India, a senior oil ministry official said.

"The three companies took interest in Nelp-IX roadshow held in Moscow on Monday," minister of state for petroleum & natural gas, Jitin Prasada said. The interactive was attended by 127 delegates representing 65 companies.

India is offering 34 exploration blocks in the ninth auction round of New Exploration Licensing Policy or Nelp-IX . The last date of submitting bids is March 18. Discoveries in the Krishna-Godavari basin and Rajasthan block have attracted investors' interest in the Indian basins.

"India's refining capacity, which is set to increase from 184 million tonne per annum to about 255 million tonne per annum, will also attract investors," he said. India’s Nelp policy has already attracted investments worth $14 billion, he said. "We have invited Russian firms for active involvement in E&P (exploration & production) sector," he said.

India is already involved in Russian oil and gas sector. Staterun ONGC Videsh has a minority stake in oil producing block Sakhalin-I .

Caspian pipeline capacity to risehttp://www.ft.com/cms/s/0/adb586d6-085f-11e0-8527-00144feabdc0.html#axzz18FrmyQqu

By Isabel Gorst in Moscow

Published: December 16 2010 04:48 | Last updated: December 16 2010 04:48

Shareholders in the Caspian Pipeline Consortium have agreed to invest $5.4bn in a project to double capacity in an oil export pipeline linking Kazakhstan with the Russian Black Sea that will help unlock Caspian resources.

The CPC expansion, agreed on Wednesday, will increase the pipeline’s capacity to 1.5m barrels a day in time to meet a surge in production from Russian and Kazakh oilfields in the Caspian region.

CPC has been pumping oil from Chevron’s vast Tengiz oilfield in west Kazakhstan to an export terminal on the Russian Black Sea since 2001, providing a critical export outlet for the landlocked central Asian country.

As part of a policy to diversify its oil export routes, Kazakhstan allowed the Chinese National Petroleum Corp to build an oil pipeline to China in 2007 but the country now urgently needs additional capacity to handle its growing oil exports.

Chevron boosted oil production at Tengiz to 540,000 barrels a day last year but postponed further investment that would double the field’s output until an agreement on the CPC expansion was reached.

Foreign companies developing the even larger Kashagan field in the Caspian Sea are seeking export outlets for oil production scheduled to begin in 2013.

CPC said it would install 10 new pumping stations along the 1,500km pipeline and add storage facilities and a third offshore mooring buoy near Novorossiysk on the Russian Black Sea between 2012 and 2015.

John Watson, chief executive of Chevron, said the “important achievement was made possible by the leadership and support of the governments of Russia and Kazakhstan”.

Lukoil said it would add oil from new fields in the Russian Caspian to its Kazakh shipments through CPC once the pipeline was made bigger.

“We are very interested in the expansion of CPC. We are ready to ship 120,000 barrels a day of oil through the pipeline,” a Lukoil spokesman said.

Oil companies have been pressing Russia to allow the expansion of CPC for years. However, Russia, which owns a 24 per cent stake in the pipeline, has stalled, complaining that oil shipping tariffs were too low and interest rates on loans covering the pipeline’s initial construction costs were too high.

Alexandros Petersen, senior fellow at the Atlantic Council, said the CPC expansion would serve Kazakhstan’s goal to diversify its oil export routes and avoid over-dependence on pipelines to China.

The US has pressed Kazakhstan to ship oil across the Caspian Sea to Azerbaijan, the starting point for a pipeline linking Baku with the Turkish Mediterranean.

CPC in $5.4Bln Bid To Double Capacity http://www.themoscowtimes.com/business/article/cpc-in-54bln-bid-to-double-capacity/426778.html

16 December 2010By Howard Amos

The Caspian Pipeline Consortium agreed Wednesday on a $5.4 billion investment to double the pipeline's annual capacity to almost 70 million tons.

“The expansion is, in scale and scope, at least as big as the initial construction,” said Ian MacDonald, vice president of Chevron, which has a 15 percent stake in the venture.

The CPC's current Tengiz-Novorossiisk pipeline pumps crude oil 1,511 kilometers from the Tengiz oil field in Kazakhstan, around the northern shores of the Caspian and across Russian territory, to the Black Sea port of Novorossiisk.

In addition to Chevron, the consortium’s main shareholders are Russia’s Transneft and Kazakhstan’s KazMunaiGaz. There are eight other international participants.

The finalized project cost is more than double the $2 billion estimate made by the consortium in 2005.

Russian Energy Minister Sergei Shmatko said at the signing ceremony in Moscow that the negotiations had been “complicated” but the final agreement demonstrated “the close work of governments and companies” and a “high level of cooperation with Kazakhstan.”

Expected annual revenues after completion in 2014 are $2.3 billion. These are guaranteed by “pump or pay” agreements — in which members of the consortium must pay compensation if they fail to supply contracted volumes. A temporarily increased pipeline tariff of $38 per ton was also made permanent on Wednesday.

Lukarco, owned by LUKoil, has agreed to supply another 6 million tons of oil on top of the 4 million tons already guaranteed, fulfilling its quota of 10 million tons, Osman Sapayev, Lukarco's head, told journalists.

Finance for the project will come from the revenue it generates. Additional funds will come from a freeze on debt repayment to shareholders. The director of CPC, Nikolai Platonov, said CPC had a total debt of $5 billion, Interfax reported.

If these funds are not sufficient, foreign loans will be sought. CPC enjoys a high credit rating, MacDonald said, and it might seek up to $1.2 billion next year for the expansion project.

Half of Kazakhstan's Tengiz oil field's output is currently exported by the CPC. Once the pipeline expansion has been completed, the field's entire output could be channeled this way, MacDonald said, “de-bottlenecking Kazakhstan's export capabilities.”

This will free up infrastructure in the area for the development of other oil fields, he said.

The president of Kazakhstan's state-run KazMunaiGaz company, Kairgeldy Kabyldin, said oil production in Kazakhstan, now 80 million tons a year, is set to rise to 120 million tons by 2015.

Construction is due to begin in spring 2011 and proceed in three stages, with output reaching 67 million tons after the work is finished in by 2014.

The three largest shareholders will project manage the expansion. Construction contracts will be awarded in the first quarter of 2011, Chevron said in a statement on its web site.

CPC's pipeline opened in 2001 and discussions turned almost immediately to expansion, but negotiations dragged on until this year. Citing unidentified shareholders, Vedomosti reported Tuesday that there are serious concerns about a possible lack of demand, jeopardizing the economic viability of the expansion.

CPC to double capacity - but where will the oil go?http://www.bne.eu/dispatch_text13888

bneDecember 16, 2010

A signing ceremony in Moscow on Wednesday saw the Caspian Pipeline Consortium approve a plan to double the capacity of its oil route from Kazakhstan to Novorossiisk on the Black Sea, depiste some confusion over where the extra crude will go from there, reports Platts.

Russian energy minister Sergei Shmatko and Kazakhstan's deputy oil minister Lyazzat Kiinov were joined by representatives from Transneft and KazMunaiGaz in agreeing to expand the pipeline's capacity from 28m tonnes a year to 67m tonnes by 2014.

The cost of expansion is expected to be around $5.4 billion with work due to begin in the first quarter of 2011, CPC said in a statement. Previous estimates had put the cost of the expansion project at around $4.6 billion. MacDonald said, adding that internal cash flow would be the primary source of funds but there was the potential to finance a part of construction with loans said Ian MacDonald of Chevron, which is a stakeholder in CPC.

Under the plan, the partners will increase installed capacity to 35m tonnes in 2012, 48m tonnes in 2013, and then to 67m tonnes in 2014. "The expansion will de-bottleneck Kazakhstan's export facilities and add around 30m tonnes in export capacity to Kazakhstan," MacDonald added.

The new volumes are to come mainly from Kazakhstan's Tengiz and Karachaganak projects, where crude output has been increasing, and new projects such as Russia's Korchagin field -- launched earlier this year -- and Kazakhstan's Kashagan, which is to be commissioned in 2012.

The expansion has been approved despite delays to the Burgas-Alexandroupolis pipeline project, which Russia is developing with Bulgaria and Greece, to ship oil from Novorossiisk across the Black Sea to Burgas and into a planned 35m tonne pipeline to Alexandroupolis on the Aegean Sea. At the same time, the Turkish Straits are currently at full capacity, which has limited increases in crude deliveries in the Black Sea region.

MacDonald said the CPC would not significantly increase traffic in the Turkish Straits, as much of the crude it will transport currently reaches the Black Sea by rail, whilst claiming that the pipeline can load larger vessels than other forms of shipment to the Novorossiisk terminal.

"When completed, CPC will fill two tankers daily, or about 200,000 tonnes per day, but since the CPC loads larger tankers [than many Black Sea shipments now, the traffic increase] is not materially significant," MacDonald said.

Meanwhile, Prime Tass reports that Rosneft may still be looking to increase its stake in CPC. Quoting an unnamed source, the newswire writes that the state-controlled oil major may look to reopen talks with Lukoil over buying part of its stake, although it is not currently holding any specific talks.

Former Rosneft President Sergei Bogdanchikov said in June that the company was in talks to buy a 5.6% stake from Lukoil. Leonid Fedun, vice president of Lukoil, said in October that Rosneft had halted the talks.

Lukoil owns a 12.5% stake in CPC via LukArco. Rosneft contorls a 7.5% stake through Rosneft-Shell Caspian Ventures, a joint venture with Royal Dutch Shell in which the Russian partner holds 51%.

Gazprom

Gazprom gets 50% of Bulgarian South Stream gas pipeline JV

http://en.rian.ru/business/20101216/161800258.html

11:23 16/12/2010

Russian gas giant Gazprom has received a 50% stake in South Stream Bulgaria AD, the joint venture operating the Bulgarian sector of the South Stream pipeline project, which will pump gas to Southern and Central Europe, the company said in a statement on Thursday.

The joint venture, formed in November 2010 during Russian Prime Minister Vladimir Putin's visit to Bulgaria, is intended to prepare a feasibility study, construct and operate the Bulgarian sector of South Stream.

The South Stream pipeline designed to deliver up to 63 billion cubic meters of Central Asian and Russian gas annually along the Black Sea bed to the south of Europe, is to be put into operation in December 2015.

Intergovernmental agreements on the construction of the pipeline's onshore sections outside Russia were signed with Bulgaria, Serbia, Greece, Hungary, Slovenia, Croatia and Austria. A consolidated feasibility study is to be prepared by February 2011.

Gazprom and Italy's Eni are the founders of South Stream AG, a special purpose vehicle established in January 2008 on a parity basis to run the project. In June 2010, France's EdF reached an agreement to join the company by the end of 2010.

MOSCOW, December 16 (RIA Novosti)

Gazprom reduces debt load in 2010 versus late 2009http://www.gazprom.com/press/news/2010/december/article106726/

15.12.2010 13:40

Gazprom reduced its debt load in 2010 versus late 2009. According to the recently published Gazprom IFRS consolidated information, the Group's overall debt decreased 17 per cent from RUB 1.63 trillion to RUB 1.35 trillion over the first sixth months of 2010. We forecast that by the end of this year Gazprom Group's overall debt will remain at the same level.

Gazprom CEO provides capex estimates for Altai export pipeline to China http://www.bne.eu/dispatch_text13888

Renaissance CapitalDecember 16, 2010

Event: Yesterday (15 December), Gazprom CEO Alexei Miller confirmed earlier estimates of construction costs for the Altai export pipeline to China at around $14bn (implying about $5mn/km). He said Gazprom will be ready to begin construction work in 1Q11 and would start construction after a final agreement with China is signed. According to Miller, the pipeline will be ready in 2015 and will have a capacity of 30bcm/year.

Action: The news is marginally positive for Gazprom, in our view.

Rationale: We think Miller's comments suggest that Russia and China are moving closer to a final agreement on gas exports. The final price seems to be the only unresolved point in negotiations. According to Gazprom, shipments through Altai would not require new upstream capex, as gas would be supplied from existing fields in the Nadym-Pur-Taz region. On our estimates, a price of $230/mcm would allow Gazprom to achieve an IRR of 12% for the Altai project. However, we would not be surprised if Gazprom received significant financing from China, which would reduce its cost of capital and improve the economics of the project (similar to the ESPO project). We think a final agreement with China is likely to be signed in summer next year and could be a very important catalyst for Gazprom.

Ildar Davletshin