Russia 090811

Basic Political Developments

·  Halonen to Meet with Russian President Medvedev Tuesday - President Tarja Halonen is expected to once again bring up the sticky issues of wood tariffs and the Baltic natural gas pipeline when she meets with Russian President Dmitri Medvedev today. European security policy is also believed to be high on the list of discussion topics.

·  Finnish President to Russia

·  President Dmitry Medvedev, Prime Minister Vladimir Putin continue working visit to Sochi, until Aug 15

·  Medvedev blasts 'anti-Russian' Ukraine - President Dmitry Medvedev on Tuesday furiously attacked Ukrainian counterpart Viktor Yushchenko, saying his administration was anti-Russian and had caused the worst crisis in ties since the Soviet collapse.

·  Medvedev delays arrival of new RF ambassador to Ukraine

·  Russia says Ukraine putting gas to Europe at risk - Russian President Dmitry Medvedev accused Ukraine on Tuesday of seeking to disrupt economic ties with Russia and putting at risk the safety of gas supplies to Europe.

·  Medvedv: 'Kiev risks Europe's gas supply'

·  “No new Russian ambassador to be sent to Ukraine” – Medvedev: President Dmitry Medvedev reveals the reasons behind refraining from sending the new Russian ambassador to Ukraine just yet, as well as the roots of strain in Russia-Ukraine relations in his new video blog message.

·  No hope for normalizing relations with Russia under current leadership - Party of Regions leader Viktor Yanukovych said that there is no hope today for an improvement in the Ukrainian-Russian relations.

·  NATO's secretary-general, Russia's envoy to discuss improving ties: Dmitry Rogozin will be received by Anders Fogh Rasmussen, the former Danish premier, who replaced his Dutch predecessor Jaap de Hoop Scheffer on August 1 as NATO's 12th secretary-general.

·  Vladimir Putin to visit Poland, but only for a few hours

·  Coveted Russian Market Becomes Battleground In GM-Opel Talks: GM fears a deal with Magna International Inc. (MGA), the German government's favored suitor, would essentially hand over advanced engine and transmission technology to Russia and stymie the auto maker's ability to compete there down the road.

·  Russian Proton-M carrier rocket set to orbit Chinese satellite - A Proton-M rocket with a Chinese telecommunications satellite will be launched on Tuesday from the Baikonur space center in Kazakhstan, the Russian Federal Space Agency said.

·  Bangladeshi N-power team to visit Russia in Oct: official - A government delegation is awaiting the final nod from the prime minister's office to visit a Russian nuclear power plant, an official of the science ministry told bdnews24.com on Monday.

·  Russia, Belarus sign off on nuclear power station draft agreement - The governments of Russia and Belarus signed off on a draft agreement that would see Russia build a the first nuclear power station in Belarus, reports Interfax.

·  Turkey: Nuclear plant tender to be finalized in September - A joint venture composed of AtomStroyExport -- which has constructed nuclear energy power plants in Russia for Rosatom -- Inter Rao UES JSC and the Ciner Group's Park Teknik was the sole bidder in a tender held in September 2008 for the construction and operation of the nuclear plant for 15 years.

·  Russia on Pace to Meet Chemical Disarmament Deadline, General Says - "We will meet all deadlines," said Gen. Nikolai Abroskin, head of the Russian Federal Special Purpose Construction Agency. "There will be no delays in the implementation of the international convention. Today, the state authorities regard the federal program 'Destruction of Chemical Weapons Stockpiles in the Russian Federation' as one of the most successful programs in the country."

·  Secret cargo aboard missing ship? - The “Arctic Sea” ship which disappeared in the Atlantic was carrying a cargo of timber worth nearly $2 MLN and, perhaps, a “secret” cargo says Mikhail Voytenko, editor-in-chief of the Russian maritime bulletin Sovfrakht.

·  Thai court rejects US request to extradite Russian - Tuesday's ruling marks a setback for the United States, which used an elaborate scheme to lure Viktor Bout to Bangkok in March 2008.

·  Thai court refuses to extradite "Merchant of Death" to U.S. - The United States wanted to try Bout, dubbed the "Merchant of Death," for conspiracy to sell millions of dollars of weapons to rebels from the Revolutionary Armed Forces of Colombia (FARC), which it said could be used to kill Americans.

·  Thai court has ruled against extraditing Bout to the US

·  Russian FSB services helped Hizbullah bust spy ring – report

·  Two workers of non-gvnmtl organization found dead in Grozny

·  Humanitarian group leader, husband found killed in Chechnya - The bodies of the head of a humanitarian organization and her husband were found in Grozny early on Tuesday, a spokesman for Chechen investigators said.

·  Charity head found dead in Chechnya -- report

·  Memorial: kidnapped Chechen activist found dead

·  Human rights activist abducted in Chechnya: activists - "Today, towards two o'clock, unidentified armed men got into the offices of Let's Save the Generation and abducted its leader, Zarema Sadulayeva, and her husband," said Alexander Cherkasov of Memorial, the Interfax news agency and Moscow Echo Radio reported on Monday.

·  Human rights activist murdered in Caucasus region - Sadulayeva and her husband were both found dead, relatives told the German Press Agency dpa from the Chechen capital Grozny. The couple was abducted by gunmen on Monday.

·  Hospital Releases Recovering Yevkurov - Ingush President Yunus-Bek Yevkurov, who was badly injured in a suicide bombing in June, was released from a Moscow hospital on Monday and said he might be back to work in a week.

·  Recovering Ingush leader targets return to work in month - "I would like to return to work right away, but it looks as though I will have to wait for about a month. But I hope to return home in a week. Upon arrival in the republic, I will gather an extended session of the government and hear reports on who worked how," Yunus-Bek Yevkurov told government daily Rossiiskaya Gazeta.

·  Kudrin: Russian economy will need 4-5 years to recover -"I think it could take four to five years to return to the previous level of GDP in real terms and for the economy to recover from the decline of about 8.5% to be seen this year. Growth of 1% is already planned for 2010. This means that we will have less revenue in real terms over these four to five years. This means that we should calculate our programs for a period of four to five years and not for one year," Kudrin said.

·  Regional Leaders Criticized for Overspending - Prime Minister Vladimir Putin on Monday scolded regional leaders for spending too much and urged them to borrow carefully as the federal government faces its first budget deficit in a decade.

·  Medvedev Submits Troops Bill - President Dmitry Medvedev sent a bill Monday to the State Duma that would allow for the deployment of the Russian military virtually anywhere abroad, although a senior lawmaker brushed off the announcement as a gimmick to intimidate Georgia.

·  Hate crimes rate in Moscow down somewhat – prosecutor

·  City of Moscow to borrow 241.1 bln roubles in 2010-report

·  Russian Hunger Strikers Demand Overdue Salaries, Severance - Workers at RegionAvtoTrans-Kurgan in the Russian city of Kurgan have resumed a hunger strike after the transport company's management reportedly failed to make good on a pledge to catch up on overdue payments, RFE/RL's Russian Service reports.
What People of the Russian Far East Looked for in July - Top Yandex Searches

·  MT: Putin’s Team Relies on Familiar Faces - Many officials appointed by Putin “occupy their posts exclusively by Putin’s grace and often to the detriment of professionalism,” said Alexei Mukhin, an analyst with the Center for Political Technologies.

National Economic Trends

·  Russian economy shrinks 10.9%

·  Russia Output Shrank Record 10.9% Last Quarter as Slump Deepens

·  Ruble Gains Versus Dollar First Time in Week Before GDP Report

·  Russian government to decide on bond issue in September

·  Russian Harvest Reached 45.3 Million Tons of Grain on Aug. 10

Business, Energy or Environmental regulations or discussions

·  MDM and URSA: Post-merger comments and rating actions

·  Government announces new rules for 'guaranteed investment projects' - A Ministry of Energy press statement issued on Friday (7 Aug) announced the adoption of new rules governing so-called 'guaranteed investments' in new electricity generation capacity.

·  Electricity Council latest figures show 10% contraction in demand

·  TGK-13 to raise $75m loan from EBRD

·  Rusal may IPO to raise money for debts

·  RusAl Deal Broker Available - Vladimir Strzhalkovsky, chief executive officer of Norilsk Nickel, offered to find buyers for the 25 percent stake in his company held by United Company RusAl if it opts to dispose of the shares.

·  Severstal eying purchase of Holding Gonvarri Russia

·  Alfa to take control of Estar Donetsk steel mill – Report

·  Raspadskaya raises domestic coal prices and increases supply to China

·  Mechel signs memorandum of cooperation with Mitsui

·  Sistema to start placing 20 bln rubles in second series bonds Aug 18,guidance 14.95%

·  Uralkali to Boost Supplies to Fertilizer Firms - Uralkali agreed to sell more to three domestic fertilizer makers to bolster supply from Silvinit, Uralkali said Monday.

·  CTC Media set to expand - Kommersant reports that the commercial broadcaster, which is backed by Modern Times Group (MTG), is hoping to enter into a joint venture with the Belarusian cable operator BelMuzTV.

·  Isuzu's Russia venture with Sollers halts production

·  VEB to Help Finance Aeroflot Jet Purchase - Aeroflot, Sukhoi Civil Aircraft and VEB will sign an agreement next week under which the bank will finance the delivery of Superjet aircraft to Aeroflot, Industry and Trade Minister Viktor Khristenko said Monday.

·  Magnit Russian Sales Advanced 30% in July to 14.6 Billion Rubles

Activity in the Oil and Gas sector (including regulatory)

·  Russia could hike oil export duty to $237-$241 a tonne on Sept 1 –official

·  Source: Lukoil Takes Out $1.2 Bln 3-Yr Club Loan - Prime-Tass

·  GE Oil & Gas Develops Unique –60ºC Gas Turbine Generators For Rosneft Power Station At Vankor Oil Field

Gazprom

·  MOL, Gazprom to Set Up Gas Storage Company, Vilaggazdasag Says - Mol Nyrt., Hungary’s largest oil refiner, will set up a joint venture with Russia’s state-run OAO Gazprom this year to build a natural-gas storage facility in Hungary, Vilaggazdasag reported, without citing anyone.

·  NIS appoints independent auditor - Serbian Oil Industry (NIS) management approved Monday the appointment of Ernst & Young company as special auditor of its 2008 accounts. The auditor should establish whether NIS last year had a profit of RSD 2.3bn as the previous leadership of the firm had claimed when it was a public company, or whether it had a loss of around RSD 8bn, as shown in the report by the KPMG auditor engaged by Russia's Gazprom, the new majority owner of NIS.

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Basic Political Developments

Halonen to Meet with Russian President Medvedev Tuesday

http://www.yle.fi/uutiset/news/2009/08/halonen_to_meet_with_russian_president_medvedev_tuesday_919513.html

publishedtoday 06:38 AM

President Tarja Halonen is expected to once again bring up the sticky issues of wood tariffs and the Baltic natural gas pipeline when she meets with Russian President Dmitri Medvedev today. European security policy is also believed to be high on the list of discussion topics.

Both presidents' offices are reticent to reveal their official agenda for the talks. Halonen's office released a statement saying they will discuss "current international issues", while Medvedev's office has refused to discuss the agenda.

Finland is concerned about tariffs that Russia has threatened to impose on wood exports that are the lifeblood for Finnish sawmills. So far, the worst of the tariffs have been postponed, but Finnish industry is desperate to see Russian give up the idea entirely.

Halonen will no doubt also bring up the feasibility and environmental impact of a massive Baltic pipeline that Russia wants to build to connect their natural gas reserves to eager customers in Europe.

But European security will likely be what the Russians want to emphasize most at the talks. Medvedev has called for the creation of a new European security policy which would include Russia as a major part of the plan. The overture was made without a lot of detail, but the message from the Kremlin is clear: Russia is unhappy about being left in the wake of NATO and EU-led security policies.

The two presidents are meeting in the Russian resort city of Sochi. This is their second meeting in a relatively short time, having met in Helsinki in April.

Finnish President to Russia

http://www.barentsobserver.com/finnish-president-to-russia.4617609-16174.html

2009-08-11

Finnish President Tarja Halonen today meets with Russia’s Dmitry Medvedev in Sochi for bilateral talks

“Timely international issues” are on the agenda, a press release from the Finnish President’s office reads. It is less than four months since the two presidents last time met. That was in Helsinki and then energy and security issues were high on the agenda.
The talks take place in one of Russia’s biggest construction sites, the place for the 2014 Olympic Winter Games.

http://www.prime-tass.com/news/show.asp?topicid=0&id=462065

President Dmitry Medvedev, Prime Minister Vladimir Putin continue working visit to Sochi, until Aug 15

Medvedev blasts 'anti-Russian' Ukraine

http://www.google.com/hostednews/afp/article/ALeqM5imxu3qSzRG2R__BnryMjSBF9ogLg

By Stuart Williams (AFP) – 1 hour ago

MOSCOW — President Dmitry Medvedev on Tuesday furiously attacked Ukrainian counterpart Viktor Yushchenko, saying his administration was anti-Russian and had caused the worst crisis in ties since the Soviet collapse.

Medvedev said that Moscow would not be sending a new ambassador to Kiev due to the policies of Yushchenko, who was ignoring "principles of friendship and partnership with Russia".

Yushchenko took power in the wake of the 2004 Orange Revolution that ousted the old pro-Moscow elite in Ukraine and set his country on a course towards membership of NATO and the European Union that irked Russia.