Russia 080607

Basic Political Developments

·  Medvedev inaugurated as Russia's third president

·  Medvedev Sworn in as Russia's Third President, Succeeding Putin

·  Medvedev promises prosperity

·  Cabinet tenders resignation as new president takes office

·  LDPR faction to support Vladimir Putin's candidacy for the post of prime minister

·  Yastrzhembsky to Step Down

·  I’ve kept my promise: Putin

·  Putin successor Medvedev to visit Berlin next month

·  Canceled March Draws Big Crowd

·  Uzbek couple murdered in Moscow

·  Russia border with China not to be closed because of enterovirus threat - Gennady Onishchenko

·  50,000 British Fans Coming to Town

·  Japan tries to win favor of Sakhalin locals

·  Export-oriented equipment to be displayed in Victory Day parade

·  Trutnev's Trouble Officials

National Economic Trends

·  Russia looks to boost economic zones

·  Ulyukayev Says Russia May Let Ruble Gain, Kommersant Reports

Business, Energy or Environmental regulations or discussions

·  Russian top managers leave Volkswagen

·  Raspadskaya May List in London as Russian Coal Swells (Update1)

·  Baltika, Gazprom, Evraz May Move: Russian Equity Market Preview

·  SUEK Borrows $800M

·  OGK-5's Full-Year Results

·  X5 Investors Snap Up Stock

·  Alcohol and Cigarette Taxes

·  Novolipetsk Steel, or NLMK, secured European anti-monopoly approval to buy two steel trading companies for 77 million euros ($119 million) to expand exports.

Activity in the Oil and Gas sector (including regulatory)

·  Oil producers suffer from inflation hikes

·  Russneft may go same way as Yukos

·  YUKOS fate looming over RussNeft

·  Tatneft says reserves climb

·  Transneft to lift dividends

Gazprom

·  Gazprom prodded toward hiring Norwegian contractors

·  Gazprom lines up rig in Venezuela

·  Serbia's parliament may ratify a deal giving control of the its national oil company to Gazprom just ahead of a general election,

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Basic Political Developments

Medvedev inaugurated as Russia's third president

http://en.rian.ru/russia/20080507/106775306.html

MOSCOW, May 7 (RIA Novosti) - Dmitry Medvedev was inaugurated as Russia's third president on Wednesday in a glittering ceremony at the Grand Kremlin Palace in front of some 2,400 guests as Vladimir Putin stepped down after eight years as head of state.

The inauguration ceremony began at 11:45 a.m. Moscow time (07:45 GMT) and after the outgoing Putin had made a short speech, Medvedev swore an oath on a copy of the Russian Constitution. He then addressed the assembled dignitaries as Russia's new president. The entire ceremony was shown live on national television and the Internet.

Medvedev swore to "respect and protect human and civil rights," as well as to "observe and defend the Constitution of the Russian Federation, its sovereignty and independence, security and integrity."

He said the development of civil and economic freedoms in Russia would be a priority during his presidency.

"They [rights and freedoms] are of the highest value and define the essence of state activities. The most important task is to further develop civil and economic freedoms and to create new civil opportunities," Medvedev said after being sworn in as president of Russia.

The current Russian government is now due to resign and Putin is to become the country's new premier on May 8. He is also set to become the head of the ruling United Russia party.

Forty-two-year-old Medvedev was nominated as a presidential candidate by United Russia and three other smaller pro-Kremlin parties in December. Putin later said on national television: "I have known Dmitry Medvedev well for over 17 years, and I completely and fully support his candidature."

Medvedev, a trained lawyer, worked under Putin in St. Petersburg in the early 1990s, when the man who would become Russia's second president was the city's first deputy mayor. In 1999, in Moscow, Medvedev was appointed acting deputy chief of the presidential staff.

He also headed Putin's campaign headquarters in the run-up to the 2000 elections. In 2003, he became chief of the presidential administration and retained the post until November 2005, when he was appointed first deputy prime minister and put in charge of an ambitious multi-billion dollar "national project" to improve living standards.

The endorsement of the popular Putin ensured Medvedev a landslide victory in the March 2 elections, but has also left question marks over the nature of the president-elect's position, with many analysts predicting that Putin will remain the real leader of the world's largest country.

However, Putin has dismissed rumors of plans to give extra powers to the premier, saying in March that, "There is no need to change anything regarding this. The prime minister has sufficient powers."

Medvedev also said after being elected that he had no intention of redistributing powers between the president and the prime minister upon taking over at the Kremlin.

Speaking to the Financial Times in an interview last March, he said he was convinced his partnership with Putin would prove effective, and would not lead to a power struggle.

Despite all the reassurances that the Putin-Medvedev 'tandem' will be able not only to co-exist, but also work together, many Russian and foreign political commentators are at a loss as to explain exactly how this 'power-sharing' will work in practice.

However, ordinary Russians seem sure that ultimate power will remain with Putin, with more than two thirds of respondents stating in a poll carried out by the Levada Center in April that they believed the former KGB officer would "control" his hand-picked successor.

Putin's second term has seen a rise in tensions with the West, as a resurgent Russia, awash with oil dollars, looks to reestablish itself as a global power. Moscow has strongly stated its opposition to NATO expansion and U.S. plans for a missile defense shield in central Europe.

However, unlike Putin, Medvedev has no links to Russia's 'siloviki,' representatives of the country's security and defense agencies.

Despite this, Putin has already said that the West will find Medvedev, seen as a pro-business moderate, no 'easier' to deal with.

"He is no less, in the best sense of the word, a Russian nationalist than I am. I don't think that our partners will find things easier with him," Putin said, adding that, "He is a real patriot, and will actively uphold Russia's interests on the global stage."

Many foreign political analysts also predicted that Medvedev would stay faithful to Putin's foreign policies, in the early days of his presidency at least.

"In my opinion, Medvedev will continue Putin's policy for the first year," Aleksander Kvasniewski, the former president of Poland told RIA Novosti, adding that, "But the following year I think that Medvedev will become more independent."

An attempt by the Other Russia opposition coalition movement to hold a protest rally on the eve of Medvedev's inauguration was prevented by police in Moscow on Tuesday. The opposition has called the March elections that brought Medvedev to power "a farce."

Seven thousand police officers are on duty on Wednesday in the capital to ensure law and order on the streets before, during, and after the inauguration ceremony.

Political change in Russia rarely comes easily, and as a light snow fell over Moscow on Wednesday morning after days of glorious sunshine, the cold snap only served to remind that in Russia it is not only the weather that remains unpredictable.

Medvedev Sworn in as Russia's Third President, Succeeding Putin

http://www.bloomberg.com/apps/news?pid=20601087&sid=aFFIXhobZb80&refer=home

By Sebastian Alison and Henry Meyer

May 7 (Bloomberg) -- Dmitry Medvedev was sworn in as Russia's third president, succeeding Vladimir Putin, with promises to fight corruption and inflation in partnership with a predecessor who may try to overshadow him.

Medvedev took the oath of office, administered by Constitutional Court Chairman Valery Zorkin, in a Kremlin ceremony attended by 2,500 government officials and ambassadors today. Putin plans to become his prime minister, possibly setting up a battle for leadership of the world's largest country.

``I will work with all my strength as president and as a man for whom Russia is his native home and his native land,'' Medvedev said in a speech broadcast live on state television.

Medvedev, 42, a longtime Putin ally, rose to the rank of first deputy prime minister under his predecessor and remains chairman of OAO Gazprom, Russia's natural-gas export monopoly, a post he has held for more than six years.

He assumes control of a country in its 10th straight year of energy-fueled economic growth. Russia, the world's biggest energy exporter, has benefited from record oil and gas prices, with the economy growing at an average 7 percent a year. That growth has pushed up wages, the ruble and inflation, making Russia less competitive. Medvedev has vowed to curb inflation, without presenting a specific program for doing so.

`Inflation Problem'

``Economically we have a big inflation problem,'' Michael Ganske, head of emerging market research at Commerzbank AG, said in a Bloomberg Television interview. ``This is the problem Medvedev needs to solve to broaden his political base and gain the support of the public.''

On corruption, Medvedev has said Russia's problem pervades government on ``an enormous scale.''

Berlin-based watchdog Transparency International last year said businesspeople and analysts perceive Russia as being among the most corrupt countries of 180 it studied, with a ranking of 143. In November 2006, Deputy Prosecutor General Alexander Buksman estimated that corrupt Russian officials take about $240 billion in bribes a year.

The State Duma, or lower house of parliament, will convene tomorrow to vote on Putin's nomination as prime minister. The government of Prime Minister Viktor Zubkov is set to resign immediately after the inauguration, clearing the way for Medvedev to confirm Putin's Cabinet.

Power Struggle

Putin has repeatedly said he won't change the constitution in order to increase his powers as prime minister at the expense of the president.

Kremlin spokesman Dmitry Peskov declined to comment on a May 5 Gazeta newspaper report that Putin plans to push through a constitutional amendment to bolster his influence.

Gazeta reported that Putin will more than double the number of deputy prime ministers and shift control of the Foreign Ministry, Defense Ministry and security services from the Kremlin to the prime minister's office.

``Before any such decisions are officially made, these reports are rumors, and we don't comment on rumors,'' Peskov said.

Putin strengthened his grip on power last month when he became head of United Russia, the dominant party in parliament. The party has little in the way of ideology beyond backing Putin and making sure the country remains a global power. It's designed to keep the same elite in control for decades, much like Soviet Union's Communist Party and Mexico's Institutional Revolutionary Party.

``We are now moving into phase two of the neo-authoritarian project in Russia,'' said Robin Shepherd, senior fellow at Chatham House, a London research organization. ``It is quite possible that United Russia will emerge as the key medium through which Putin and his clique acquire an enduring stranglehold over the Russian political system.''

Medvedev promises prosperity

http://www.russiatoday.ru/news/news/24434

In his first words as Russia’s new president, Dmitry Medvedev has pledged to promote the success and prosperity of all Russians. The 42-year-old was sworn in as modern Russia’s third president during a ceremony in the Kremlin. During his acceptance speech, Medvedev said he’d support innovative approaches to lift living standards.

After placing his right hand on Russia’s Constitution, Medvedev took an oath, and was then declared President by the Chairman of the Constitutional Court.
“I will be working to my fullest capacity as a President and as a man, for whom Russia is a native land and home. It is my duty to serve every day and every hour to do everything in my power to improve the life of our people,” Medvedev said.

The ceremony has been attended by 2400 guests.
Dmitry Medvedev has become only the third president in Russia’s modern history.

Medvedev’s personality
Medvedev has been Putin’s right-hand man since becoming the Russian Government’s Deputy Chief of Staff in 1999. But now the world’s eyes are on Medvedev – so what is Russia’s new president really like?
He has a great sense of humour, according to Political Analyst Aleksey Mukhin.
“But at the same time he's a cold, level-headed lawyer. And it makes him a very good administrator,” he says.
“He doesn't make friends very easily, but once he does - he values them. And he's a very flexible man, too. The fact he's a liberal - that's a myth. He is using that to his advantage. He's not a leftist or rightist, he's not 'red' or 'green' - he's a pragmatic but not cynical leader, with great abilities and a quick legal mind,” he added.
Medvedev’s ambition was evident from an early age.
“Boys usually want to be pilots or drivers. He said from the very start that he wanted to be a lawyer, because he wanted to know everything,” one of his school teachers recalls.
Medvedev’s steady rise
He graduated from Leningrad University with a PhD in Law and he worked at the Leningrad City Council from 1990.
In 1994, Medvedev worked for a St. Petersburg-based timber company as legal affairs director and became an advisor to the mayor's office. That’s where he met Deputy Mayor Vladimir Putin.
In 1999, Putin became the country's Prime Minister and with him he brought a number of trusted colleagues. Medvedev was appointed Russia's government Deputy Chief of Staff.
After he ran Putin's successful election campaign of 2000, he was elected chairman of Russia's energy giant Gazprom.
Under Medvedev Russia's gas giant secured deals with former Soviet republics and became Europe's chief supplier of energy resources.
In 2005, Medvedev became Russia's First Deputy Prime Minister and was entrusted with overseeing the Council for National Projects.
The programme was aimed at developing social welfare in the country by pumping money into four selected areas - education, public health, housing and agriculture.
Medvedev comes to the job with perhaps the best reference possible – from arguably Russia’s most popular leader ever.
“I have known Dmitry Medvedev for a long time, and I am sure that all his personal qualities, and his experience will guarantee his success as the country's top man. He is an honest, progressive, open-minded young man. And I trust him,” Vladimir Putin said