Russia 100603
Basic Political Developments
· Itar-Tass: Lavrov begins visit to China to synchronize watches on Iran, NKorea
· VOR: Lavrov leaves for China for talks on Iran, Korea
· VOR: Polish Minister says Poland should trust Russia's investigation of Kaczynski plane crash
· Itar-Tass: Cabinet to discuss economic development scenario for 2011-2013 - “The budget for 2011 will be drafted proceeding from the oil price of $75 per barrel,” a source in the government said on Wednesday. At the same time the growth of inflation and industrial production will be a bit lower that the Economic Development Ministry forecast earlier.
· Itar-Tass: Medvedev legalises amendments to Customs Code treaty
· RIA: Russia ratifies Customs Code - Russian President Dmitry Medvedev has signed a federal law ratifying the Customs Code, which paves the way for the creation of a Customs Union with Belarus and Kazakhstan, the Kremlin said on its website.
· RIA: Russia hosts international anti-terrorism forum - Russia will host on June 3-5 an international forum on the ways to counter terrorist propaganda among the public.
· RIA: World to face growing terrorist threats - Russia security chief - Bortnikov said the most deadly terrorism attack threats are aimed at the United States, Russia, Great Britain, Spain, Israel, Afghanistan, Iraq and many other countries.
· Interfax: Terrorists plan to foil 2014 Sochi Olympics – FSB (Part 2)
· Itar-Tass: Some 23 terror acts averted in RF 2010 - Bortnikov
· RIA: Russian missile cruiser ready to visit San Francisco - A task force from the Russian Pacific Fleet led by the missile cruiser Varyag will set sail on June 4 on a friendly visit to the United States, the fleet's spokesman said on Thursday.
· RIA: Russia-Vietnam submarine deal worth record $3.2 bln — magazine - "The construction cost is $2.1 billion, but the building of all necessary coastal infrastructure and the delivery of armaments and other equipment may bring the total to $3.2 bln, which makes this deal the largest in the history of Russian exports of naval equipment," the Export of Arms magazine says in an editorial published in its June issue.
· RIA: Russia to give Nicaragua $10 million in aid - Russia will provide Nicaragua with $10 million to help the Central American country tackle its budget deficit, Russian Deputy Foreign Minister Sergei Ryabkov said on Thursday.
· Itar-Tass: Russia to extend $10 mln to Nicaragua
· Itar-Tass: Nicaragua presents ratified agreement on visa-free travel to Russia
· VOR: Russians will travel to Nicaragua visa-free
· RIA: Abkhazia, S. Ossetia may soon open embassies in Nicaragua
· Am.gov.lv: Fourth session of Latvian-Russian Inter-Governmental Commission to be held in Pskov - On 4 June, the fourth session of the Latvian-Russian Inter-Governmental Commission on economic, scientific, technological, humanitarian and cultural co-operation is to be held in Pskov.
· AP: Russia plans 25 percent cut to US poultry imports
· Detroit News: U.S., Russia partner to cut global road deaths - At an event at the Russian Embassy in Washington on Wednesday night, both U.S. and Russian officials pledged to work to improve worldwide auto safety. That pledge follows a conference on auto safety in Moscow last November.
· Georgian Daily: Beijing ‘Renting’ Russian Border Area for Chinese Farmers - Beijing has rented 426,600 hectares of Russian territory in the Jewish Autonomous Oblast and Khabarovsk Kray for agricultural use by Chinese farmers, the Xinhua News Agency Reports, a 42 percent increase in the size of such Chinese holdings inside Russia and one likely to infuriate many Russian nationalists.
· Itar-Tass: Medvedev to receive credentials of eight new ambassadors - Envoys of Mauritania, Panama, South Korea, Egypt, Thailand, Sudan, Uzbekistan and Germany will present their credentials to the head of state.
· Itar-Tass: Medvedev nominates incumbent Tambov governor for new term
· Itar-Tass: Medvedev nominates incumbent Kaluga governor for new term
· RFE/RL: KBR Supreme Court Again Calls For Abolition Of Balkar NGO
· Itar-Tass: Court convicts attempted killer of Isa Yamadayev
· Iinterfax: Militants, killed in Makhachkala, belonged to criminal armed group, led by Vagabov, a suspected organizer of Moscow metro bombings – Dagestan Security Dpt.
· Interfax: Militant arsenal found near scene of clash with militants in Dagestan
· Moscow Times: Bortnikov Reports on Dagestan Operations
· Moscow Times: Special Forces Are Now 'Homeless' - The Interior Ministry is expected to reduce the number of staff in its central apparatus by withdrawing the Operative and Search Bureau, special forces and other police structures directly involved in the fight against crime.
· Jamestown: Russian Military Prepares for Vostok 2010 - Preparations are intensifying ahead of the Russian operational-strategic military exercise, Vostok 2010, scheduled for June 29 to July 8 in the Siberian and Far East military districts involving more than 10,000 servicemen under the command of Army-General, Nikolai Makarov, the Chief of the General Staff.
· Vremya Novostei/Russia Today: The core of domestic navigation - The first competitive chip set GLONASS/GPS will be manufactured in Japan
· Georgian Daily: Has Moscow Decided to Turn to a Businessman to Save Sochi Olympics? - According to Aleksey Polukhin, the economics editor of “Novaya gazeta,” the Russian government will soon name Vladimir Potanin head of the Olympic Construction agency, Olimpstroy, in the hopes that he will solve the problems bedeviling a program in which Moscow has invested so much money and prestige
· Georgian Daily: Reported Levels of Popular Support for Russian Leaders Don’t Mean what Most Commentators Think
· Georgian Daily: Moscow City to Fight Appearance of Ethnic Neighborhoods
· Bloomberg: PineBridge’s Philipps Hired by Kremlin’s M&A Adviser Xenon - Charlotte Philipps, the chief executive of Hong Kong billionaire Richard Li’s private equity business in Moscow, was hired by an investment firm that advises the Russian state on mergers and acquisitions in the energy sector.
· BBC: Struggle for Central Asian energy riches - A year ago, the Kremlin issued a stark warning: that growing competition for control of global energy resources could spark wars on Russia's borders, including those in Central Asia.
National Economic Trends
· VOR: Russia taps Reserve Fund to cover budget deficit
· Reuters: UPDATE 1-E.Siberian oil tax back from July 1-Russia's Kudrin
· Moscow Times: Government May Use Higher Oil Price Estimate for 2011
· Moscow Times: Government Looks to 3.4% GDP Growth in 2011
· Prime-Tass: PMI shows Russian service sector recovery slows in May
· Bloomberg: Russian Service Industries Grew for 10th Month in May, VTB Says
· Bloomberg: Russia Fights for World Wheat Dominance, Undercuts U.S. Grain
· Bne: COMMENT: Russia must modernise or die - Unlike its Bric peers of China, India and Brazil, Russia had a terrible crisis. After five years of ballistic growth, the Russian economy contracted by 7.9% in 2009. Analysts believe the economy will bounce back strongly in the second half of this year thanks to higher-than-expected oil prices and a gradual recovery in consumption, but the respite will only be temporary. Two papers released in May warn that after good years in 2011 and 2012, the economy could slump again, contracting by about 1.4% in 2013, unless the modernisation campaign launched by Medvedev this spring bears fruit.
Business, Energy or Environmental regulations or discussions
· Reuters: Russian markets -- Factors to Watch on June 3
· Bloomberg: Rosneft, Gazprom Neft, Norilsk: Russian Stock Market Preview
· Reuters: Ex-Goldman exec Gupta quits Sberbank's board
· DJ: Sberbank Reveals Shake-Up Among Shareholders –Vedomosti
· Bloomberg: Aeroflot Airlines Says 2009 Net Income Tripled to $86 Million
· Reuters: Aeroflot profit triples but misses target-UPDATE 1
· RBC: MegaFon about to purchase Synterra
· CIOL: Sistema Shyam to invest $1 bn in India
· Nanowerk: RUSNANO invests in a major preclinical studies center near Moscow
· UralSib: RusHydro looking to acquire additional hydro assets
Activity in the Oil and Gas sector (including regulatory)
· Prime-Tass: Kudrin: Russia to abolish zero oil duty for East Siberia Jul 1
· Oil and Gas Eurasia: Unified Scale for Russian Crude Export Duties To Come July 1
· TNK-BP: RUSIA Petroleum Filed a Bankruptcy Petition after TNK-BP Served Early Repayment Notice
· Dow Jones: TNK-BP: Kovykta Field Operator Files For Bankruptcy
· Reuters: Russia TNK-BP’s Kovykta licence holder files bankruptcy
· Interfax: Kovykta license holder RUSIA Petroleum files for bankruptcy
· Bloomberg: TNK-BP Unit Seeks Bankruptcy Amid Gazprom Feud Over Gas Field
· Moscow Times: Slavneft to Sell Service Units
Gazprom
· Steel Guru: Government lowers forecast for Gazprom exports
· Upstreamonline: Kirinsky takes on Shtokman newbuilds
· Reuters: RLPC-Gazprom Neft's $1 bln loan pays LIB+240 bps margin-bankers
· PRweek: Russian oil producer Gazprom Neft appoints Hudson Sandler for PR boost
· Aviationweek: Thales Alenia Gets Green Light For Yamal 400
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Basic Political Developments
Itar-Tass: Lavrov begins visit to China to synchronize watches on Iran, NKorea
http://www.itar-tass.com/eng/level2.html?NewsID=15190978&PageNum=0
03.06.2010,01.57
MOSCOW, June 3 (Itar-Tass) - Russian Foreign Minister Sergei Lavrov begins his official visit to China on Thursday.
In Beijing he will meet with China’s President Hu Jintao, State Councilor Dai Bingguo and Foreign Minister Yang Jiechi.
High on the agenda of the talks in the Chinese capital will be the most pressing problems in international relations. In particular, the Russian diplomat will synchronize watches with Chinese counterparts on the whole range of issues on Iran’s nuclear program. Russia and China are members of the six-party group of international mediators on Iran. In contrast to the European Troika – the UK, Germany, France, and the United States that actively promote tougher sanctions against Tehran, Moscow and Beijing adhere to a more balanced and restrained position. They consider that the dialogue and diplomatic efforts are the most effective way to ease concerns of the West and to bring Iran back to productive cooperation with the world community and the International Atomic Energy Agency (IAEA).
Lavrov will also coordinate positions in relation to possible settlement of the crisis on the Korean Peninsula that broke out after the sinking of South Korea’s warship Cheonan in the Yellow Sea. Russia and China closely coordinate their approaches on the issue as two Permanent Members of the UN Security Council, where Seoul seeks to raise the issue of North Korea’s responsibility for the warship’s accident and to impose additional sanctions against Pyongyang.
VOR: Lavrov leaves for China for talks on Iran, Korea
http://english.ruvr.ru/2010/06/03/8984824.html
Jun 3, 2010 10:29 Moscow TimeRussia’s Foreign Minister Sergei Lavrov is leaving for Beijing to coordinate positions on Iran and Korea. He will meet President Hu Jintao, Foreign Minister Yang Jiechi and other Chinese officials. Russia and China are among the six international mediators for Iran, but unlike the United States and its allies, they stick to a weighed approach, calling for dialogue as the most effective way of handling the issue. Tensions have been mounting between North and South Korea following the sinking of the South Korean Cheonan corvette in the Yellow Sea. Seoul claims the ship was hit by a North Korean torpedo.
VOR: Polish Minister says Poland should trust Russia's investigation of Kaczynski plane crash
Jun 3, 2010 10:44 Moscow TimePolish people should trust Russia's investigation of the plane crash that killed Polish president Lech Kaczynski, Polish interior minister Jerzy Miller said in a TV interview. He noted that Russia has handed over the copies of cockpit recordings to Poland. Handing over the copies will help Poland with its own investigation and analysis of the crash, he said. Earlier Kaczynski's twin brother Jaroslaw expressed his distrust to the Russian investigators. The investigation shows that it was the mistake of Polish pilots which led to the tragedy but someone could influence their decision to land the plane in poor visibility conditions.
Itar-Tass: Cabinet to discuss economic development scenario for 2011-2013
http://www.itar-tass.com/eng/level2.html?NewsID=15190241&PageNum=0
03.06.2010,00.40
MOSCOW, June 3 (Itar-Tass) - Russia’s Cabinet on Thursday will discuss the economic development scenario and the marginal growth of prices on services of natural monopolies in 2011-2013.
“The budget for 2011 will be drafted proceeding from the oil price of $75 per barrel,” a source in the government said on Wednesday. At the same time the growth of inflation and industrial production will be a bit lower that the Economic Development Ministry forecast earlier.
“A moderately optimistic forecast will be taken as a basis of the budget,” the official said.
He supposed that “in 2011 the country’s GDP will grow by 3.4 percent, in 2012 – by 3.5 percent and in 2013 – by 4.2 percent.”
“Next year the industrial production will increase by 3.2 percent (according to the earlier forecast the growth should have reached 3.3 percent), in 2012 – by 3.1 percent and in 2013 – by 4.2 percent,” he said.
The growth of consumer prices will be by 0.5-1 percent lower than previously forecast.
“The forecast for inflation was decreased – in 2011 it will reach 5-6 percent (the previous forecast was 6-7 percent), in 2012 – 5-6 percent (as against 5.5-6.5 percent) and in 2013 – 4.5-5.5 percent (as against 5-6 percent),” the official said.
The forecast for the growth of investments in fixed capital remained unchanged. Thus, next year an increase of investments will reach 8.8 percent, in 2012 – 6.3 percent and in 2013 – 8.1 percent.
“In compliance with the proposed variant of the forecast the oil price will approximately comprise $78-79 per barrel in 2012-2013 and $75 per barrel – in 2011,” he said.
In the upcoming three years the national currency will slightly strengthen against the U.S. dollar. The Economic Development Ministry forecasts that in 2011 one dollar will be equal to 29.3 roubles, in 2012 – 28.4 roubles and in 2013 – 27.9 roubles.
The governmental official noted that the economic development scenario and parameters of the macroeconomic forecast have been repeatedly discussed at the Cabinet’s meetings, including those with participation of Prime Minister Vladimir Putin.
The official believes that at Thursday’s meeting of the Cabinet the parameters that will create the basis for a new three-year budget will be approved.
Itar-Tass: Medvedev legalises amendments to Customs Code treaty
http://www.itar-tass.com/eng/level2.html?NewsID=15190614&PageNum=0