Russia 111208

Basic Political Developments Israel slams Russia for 'pro-Palestinian stance' and selling arms to Assad - Israeli

Foreign Minister Avigdor Lieberman has criticized what he called Moscow’s “unilateral” pro-Palestinian stance in the Israeli-Palestinian conflict. The FM, who is visiting Russia, was referring to the admission of the Palestinian Authority to UNESCO as a sovereign state. He also warned that Russia’s  role as a supplier of modern weapons to crisis-hit Syria “can lead to very negative consequences.” Israel and Russia are divided on many aspects of Middle East policy, Interfax quoted Lieberman as saying. He added, however, that the overall balance of Russian-Israeli relations is “undoubtedly positive.”

o Israel FM touts Russia elections as ‘free and fair’ Russian, Czech presidents to hold negotiations in Prague

o Medvedev visits Pragueo Czech press survey - December 8: Will Russian President Dmitry

Medvedev feel in the Czech Republic like in the West or on a bridge between the East and the West during his ongoing two-day visit? Zbynek Petracek asks in the daily Lidove noviny (LN) today.

Medvedev to hold talks with Indian PM on Dec 16o Kudankulum N-plant: Moscow sees rivals' hand in stir - Russia's

ambassador to India Alexander M Kadakin said Russian authorities had "great suspicion" about the events at Kudankulum, where the final stage before commissioning of two power plants built with Russian cooperation has been on hold due to post-Fukushima protests. The two units are 98% complete.

The Russian Embassy in Britain criticized the Foreign Office U.S. says will continue support for peaceful protests, including in Russia Russia-NATO missile talks to continue within months – Rasmussen

o General Makarov: solutions have to be made now - "The mere idea of building a missile defense shield could worsen bilateral relations. President Medvedev, Defense Minister Anatoly Serdyukov and me, have discussed this issue with nearly all our European counterparts. Most of them referred us to the United States. But we’re talking about Europe. But they either don’t hear or just won’t hear what we have to say."

o Russia-NATO Council ministers meet in Brusselso Agt with RF on joint missile defence in Europe possible - German FM:

“In any case, I see not only the opportunity to reach an agreement, but also the need to reach an agreement,” Westerwelle said. “We can guarantee our security in Europe not against Russia, but only together with Russia,” he added.

o NATO confirms commitment to dialogue with Russiao Medvedev's missile shield remarks may be election rhetoric - NATO chief o NATO chief rebuffs Russian threats to counter missile shield

o On the same path with NATO? - The NATO-Russia Council has become a cover for NATO’s plans Evgeny Shestakov (Brussels)

Azerbaijan, Russia hold consultations to extend Gabala radar station’s lease - "The Azerbaijan and Russia defence ministries are to hold meetings to either extend the existing lease of the Gabala radar station, or sign a new contract," Deputy Foreign Minister Khalaf Khalafov told media today.

Putin says US encouraged election protests - In his first public remarks about daily demonstrations by protesters alleging Sunday's vote was fraudulent and unfair, Putin said US Secretary of State Hillary Clinton "gave a signal" to Kremlin opponents."She set the tone for some opposition activists, gave them a signal, they heard this signal and started active work," Putin said.

o Most Russians do not want color revolutions – Putin: Prime Minister Vladimir Putin has said that if during street rallies people act within the framework of the law, they must be allowed to express their views, if not, law enforcement bodies must use all legal means to demand compliance with the law.

o Putin says protest rallies are a constitutional right, calls for dialogueo Putin favors authorities' dialogue with oppositiono Putin has no imminent comment on situation around State Duma election

(Part 2) Putin names his presidential campaign chief - Russian Prime Minister Vladimir

Putin has picked filmmaker Stanislav Govorukhin to run his campaign in next year’s presidential elections.

o Putin’s election headquarters to base on All-Russian Popular Front Moscow Closes Protest Square for Maintenance, Vedomosti Says The Opposition is planning a large rally - The Opposition plans rallies in Moscow

and other cities on Saturday, December 10, in protest against the parliamentary election fraud. In the Russian capital, a rally will be held in Revolyutsiya /"Revolution"/ Square by the "Solidarity" opposition movement. Other organizations intend to participate in the action. The federal and municipal authorities are worried about the protests.

o Moscow city hall says will allow only 300 people at Saturday's rally Russian Journalist Calls On Colleagues 'To Be Professionals' - In a statement,

Stanislav Kucher of Kommersant FM radio slammed those journalists for their "keeping mum" about the events on Moscow's Triumph Square on December 6 in which thousands of people protested alleged fraud in the December 4 parliamentary elections and shouted anti-Putin slogans.

Safin elected to Russian parliament - Two-time grand slam winner Marat Safin is swapping tennis whites for business suits after being elected to the Russian federal parliament, the Duma.

GLONASS providing global coverage - "Today, the first of the three spacecraft launched on November 4, 2011, went on line; the GLONASS cluster therefore has 24 units in dedicated use, which ensures a continuous navigation signal globally," Zubakhin said.

ISS crew set for final pre-flight training at Baikonur

Attempt made in Dagestan to demolish Baku-Grozny oil pipeline - An officer at the republican Interior Ministry told Itar-Tass on Thursday, "The blast made a dent with a diameter of 10-12 centimeters in the pipeline. There was no oilspill".

Fire at Domodedovo warehouse put down Russia deny 'dirty tricks' as FBI investigates World Cup 2018 race - The Russia

2018 World Cup organising committee says it has no knowledge of the ongoing FBI investigation into alleged computer hacking and other “dirty tricks” arising from the Fifa bidding process.

Kremlin Plans to Sell Own Brands of Vodka, Beer, RBC Daily Says Russian Press at a Glance, Thursday, November 8, 2011 Hoeve Halbach: “Meeting points of conflict environments in the North and South

Caucasus are clearer” - German expert on the Caucasus from the Berlin ‘Science and Politics” Foundation, Professor Hoeve Halbach, shared his view of the ongoing processes in the South and North Caucasus with a VK correspondent. The last part of the interview is devoted to problems of the North Caucasus and connection of processes in the North and South Caucasus.

Russian protests offer unusual challenge to political order - By Will Englund and Kathy Lally

Duma vote falls into disrepute; "Russian Winter" might still snowball - Contrary to international reports, protests have not rocked Moscow. But an ongoing post-mortem into December 4's parliamentary elections sees them fall deeper into disrepute, and there is now the potential for a mini "Russian Winter" in the capital.

Russia United, For The Time Being – OpEd - By Eric Walberg Repentant militants speak with Adaptation Commission - Yulia Rybina

(Makhachkala)

National Economic Trends Putin does not rule out possibility to lower taxes - "We, of course, must and will

mull over how to reduce the tax base," he said. In so doing, Putin added that his personal opinion is that social guarantees for the people of Russia can be ensured only on the basis of economic growth.

RUSSIAN INTERNATIONAL RESERVES AT $514.1 BLN IN WEEK TO DECEMBER 2, UP FROM $510.2 BLN ON NOVEMBER 25

Unemployment shows uptick Russia May Privatize 20 Banks, Companies by 2017, Vedomosti Says

Business, Energy or Environmental regulations or discussions Russian stocks open higher ahead of EU summit RTS Futures Rise With Gazprom at 37% Discount: Russia Overnight Russian markets -- Factors to Watch on Dec 8 UPDATE 1-Russian protests block VEB's Eurobond deal-sources United Aviation, Finmeccanica May Start Venture, Kommersant Says GM plans to up sales 65%-70% in Russia in 2011 Exec: PSA Peugeot Citroen may launch another car plant in Russia Russian Billionaire Mamut Seeks Euroset Buyer, Kommersant Says Euroset revenues grow 12% to 19 bln rubles in Q3

Rostelecom's Q3 net profit rises 1.3 pct to $330 mln Wife of ex-Moscow mayor sells major real estate developer No Sberbank Haggling On Volksbanken Price VTB Quarterly Net Jumps 39% on Bank of Moscow, Investment Arm Russian bank pulls bond offer 'due to protests' VEB May Return to Eurobond Sale Next Year, Kommersant Says Deutsche Bank May Hire Troika Founder Derby, Vedomosti Reports Russians Suffer From Baltic Bank Closures BRICKS & MORTAR: Russian warehouse party - Russia's property market has

been recovering slowly from the 2008 crisis, but as Russians return to the shops and retail turnover levels pass their pre-crisis highs, a boom has taken off in the country's warehouse business.

Activity in the Oil and Gas sector (including regulatory) WPC handover ceremony from Doha to Moscow to be held Thursday Transneft expresses dismay on Bulgaria's decision to pull out from Burgas-

Alexandroupolis BASHNEFT BOOSTS 9M IFRS NET PROFIT 52.7% TO $1.039 BLN, BELOW

FORECAST; Q3 NET UP 46% TO $407 MLN, ALSO BELOW FORECAST Bashneft's net heads north in 9M BP in talks to settle with Russian partners – FT

o BP talks peace deal with Russian partners Vanco, Lukoil make Ivorian strike Novatek warns of fraud attempt Exxon Russia Chief:May Build LNG Plant In Kara Sea If Gas Found Paper

Gazprom Gazprom: Unacceptable to split gas pricing formula from oil prices India govt says Petronet to finalise Gazprom LNG deal soon Gazprom Said to Stall on RWE Talks as German Power Falters Naftogaz pays for gas supplies in roubles for the first time Gazprom eyes Israeli gas projects - Russia's gas giant Gazprom is interested in

partnering with Israel to develop the country's natural gas infrastructure and distribute its gas to third countries, Gazprom's Chairman and Deputy Prime Minister Victor Zubkov said today.

Arctic oil rig ready for last finish - Gazprom’s new “Arkticheskaya” jack-up offshore drilling rig is moored at Shipyard No. 35 in Murmansk for completion.

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Full Text Articles

Basic Political Developments

RT News line, December 8

Israel slams Russia for 'pro-Palestinian stance' and selling arms to Assadhttp://rt.com/news/line/2011-12-08/#id23209

Israeli Foreign Minister Avigdor Lieberman has criticized what he called Moscow’s “unilateral” pro-Palestinian stance in the Israeli-Palestinian conflict. The FM, who is visiting Russia, was referring to the admission of the Palestinian Authority to UNESCO as a sovereign state. He also warned that Russia’s  role as a supplier of modern weapons to crisis-hit Syria “can lead to very negative consequences.” Israel and Russia are divided on many aspects of Middle East policy, Interfax quoted Lieberman as saying. He added, however, that the overall balance of Russian-Israeli relations is “undoubtedly positive.”

Israel FM touts Russia elections as ‘free and fair’ http://english.ruvr.ru/2011/12/07/61779358.html

Dec 7, 2011 21:28 Moscow Time

Israel’s Foreign Minister and Deputy Prime Minister Avigdor Lieberman said on Wednesday that he fully shares Israeli observers’ touting Russia’s State Duma elections as free and fair.

The topic was high on the agenda of Lieberman’s talks with Russian Prime Ministr Vladimir Puitn in Moscow on Wednesday.

“Israel was keeping an eagle eye on the latest events in Russia”, Lieberman said, referring to the presence in Russia of Israeli observers who “know perfectly well how ballots are being counted.”

He quoted Israeli observers as saying that the December 4 elections in Russia were “free, fair and democratic.”

(TASS)

December 08, 2011 10:15

Russian, Czech presidents to hold negotiations in Praguehttp://www.interfax.com/newsinf.asp?id=293471

MOSCOW. Dec 8 (Interfax) - Russian President Dmitry Medvedev has arrived in the Czech Repubnlic and will hold negotiations with Czech President Vaclav Klaus in Prague on Thursday.

The Kremlin said earlier that Medvedev and Klaus would exchange opinions on the current state and prospects of the entire range of Russian-Czech relations.

"Medvedev and Klaus plan to exchange opinions on the most important issues on the international agenda, primarily problems of the world financial crisis, a dialogue between Russia and the EU, the situation in the Middle East and North Africa, and the plans to set up a NATO missile defense system in Europe," it said.

The two presidents plan to sign a "solid package of bilateral documents significantly expanding the contractual basis of mutually beneficial Russian-Czech partnership," it said.

Medvedev and Klaus intend to attach particular significance to ways to strengthen trade and economic interaction and investment cooperation, including in the hi-tech sectors.

They also plan to discuss promotion of mutually beneficial projects in the fuel and energy, transport, and research and technology fields, it said.

Russia and the Czech Republic also plan to sign a joint statement on partnership for modernization.

va

(Our editorial staff can be reached at eng.editors@interfax.ru)

Medvedev visits Praguehttp://english.ruvr.ru/2011/12/08/61803983.html

Dec 8, 2011 09:37 Moscow Time

Russian President Dmitry Medvedev is arriving in Prague on Thursday to hold talks with his Czech counterpart Václav Klaus and Prime Minister Petr Nečas.

Moscow and Prague are expected to sign a package of agreements, including one on the creation of a peaceful atom technology center.

On the sidelines of the talks, Russia`s TVEL and the Czech ALTA Invest companies are scheduled to sign a deal to set up a joint venture of peaceful use of nuclear energy.

The agenda of the talks between Mr. Medvedev and Mr. Klaus also features the eurozone debt crisis, cooperation between Russia and the EU, the situation in the Middle East and in North Africa, and the creation of a missile-defense system in Europe.

RIAN

Czech press survey - December 8http://www.ceskenoviny.cz/news/zpravy/czech-press-survey-december-8/725696

published: 08.12.2011, 00:24 | updated: 08.12.2011 06:11:53

Prague - Will Russian President Dmitry Medvedev feel in the Czech Republic like in the West or on a bridge between the East and the West during his ongoing two-day visit? Zbynek Petracek asks in the daily Lidove noviny (LN) today.

He says not much has changed in Russian-Czech relations in the past few years. Czechs still watch Russia with a suspicion.

Czechs wonder whether Moscow has already accepted the fact that its former satellites voluntarily and eagerly joined NATO and the EU ana became a part of the West, Petracek writes.

The Czech Republic, as a small country, cannot influence such stances but it can influence the feeling that Medvedev would have of Czech political representatives´ stances.

They are naturally interested in advantageous economic treaties with Russian. However, the crucial issue is the Czech stance on U.S. plans NATO's and U.S. plans to create a missile defence shield in Europe. It will significantly influence Medvedev´s impression of the visit, Petracek writes.

He recalled that the Czech government did not win majority support for the planned U.S. missile defence radar on Czech territory. When Barack Obama scrapped the plan, Czechs with relief labeled him "a traitor."

If Medvedev heard this version of the story and not the other saying missile defence is important for the Czech Republic, it would strengthen his opinion that Prague can be a useful bridge between the East and the West, Petracek concludes.

The Czech Republic may not have the final say in the tender for the completion of the Temelin nuclear power plant with regard to the disproportionate size of the bidders, Julie Hrstkova writes in Hospodarske noviny today, in view of Russian President Dmitry Medvedev´s visit to Prague.

She indicates that the real goal of Medvedev´s visit these days is not to sign a number of economic agreements but to win a contract for Temelin´s completion.

"Several hundred billions"(of crowns) is worth a trip to Prague, she adds.

However, Temelin is not only a purely economic contract since the Czech Republic´s energy independence is at stake as well as political-economic interconnection with the EU, Hrstkova writes.

The Czech-Russian consortium of Skoda JS, Gidropress and Atmostroyexport is one of the bidders. U.S. Westinghouse and French Areva are also interested in the order.

PM Petr Necas assured Washington in October that the tender for Temelin would be fair and transparent, she recalls.

"In view of a mutual disproportion in the size of those who are giving the offer, it may not be only the Czech Republic that will really make decision on the domestic nuclear power plant´s construction," Hrstkova writes in conclusion.

President Vaclav Klaus´s defence of tuition fees is a rather cheap provocation, Martin Zverina writes elsewhere in Lidove noviny.

Klaus in his lecture on Wednesday said free university studies can be called students' sponging on the rest of society as university studies enhance one´s human capital, use in society and personal life.

Zverina writes that this is a poor construct since there is also a deep gap between those with basic education and secondary school graduates in terms of pay level and opportunities in society and yet secondary schools should be free, according to Klaus.

Klaus could have promoted tuition in a more sophisticated way.

He could have, for instance, argued with the fact that unlike primary and secondary schools, people attend university as adult and fully-fledged citizens. Moreover, he may have highlighted that tuition would have a regulatory effect and motivate students, Zverina writes.

($1=18.953 crowns)

December 08, 2011 12:44

Medvedev to hold talks with Indian PM on Dec 16http://www.interfax.com/newsinf.asp?id=293553

MOSCOW. Dec 8 (Interfax) - Russian President Dmitry Medvedev will hold negotiations with Indian Prime Minister Manmohan Singh on December 16, the Kremlin press service reported on Thursday.

Singh will be on an official visit to Russia on December 15-17.

va jv

(Our editorial staff can be reached at eng.editors@interfax.ru)

Kudankulum N-plant: Moscow sees rivals' hand in stirhttp://timesofindia.indiatimes.com/india/Kudankulum-N-plant-Moscow-sees-rivals-hand-in-stir/articleshow/11026368.cms

Sachin Parashar, TNN | Dec 8, 2011, 04.00AM IST

NEW DELHI: Just ahead of Prime Minister Manmohan Singh's visit to Moscow, Russia lashed out at protests against the Kudankulam nuclear power project saying that the disruptions may have been stage managed by its rivals.

Russia's ambassador to India Alexander M Kadakin said Russian authorities had "great suspicion" about the events at Kudankulum, where the final stage before commissioning of two power plants built with Russian cooperation has been on hold due to post-Fukushima protests. The two units are 98% complete.

"We still don't know why it took six months for the protests to erupt after Fukushima and also who are the people paying for the food and shamiana used by the protesters," said Kadakin. While he didn't name any country, he did not rule out the involvement of Russia's rivals in stoking trouble.

Protesters at the site are local fisher-folks but the activities of foreign anti-nuclear activists, reportedly from US, has been spoken of while church organizations have also supported the stir.

The ambassador, however, said the trouble at Kudankulam will not impair Indo-Russian nuclear cooperation and Moscow will implement plans including units 3 and 4 at the Tamil Nadu site. Negotiations have intensified in the run up to the PM's two-day visit to Moscow next week.

The likelihood of Russia bargaining hard is evident with Kadakin suggesting Moscow

does not just want these two remaining units at Kudankulam to be covered completely by India's new civil nuclear liability law, rules for which were notified recently. Russia is expecting "same terms of liability" as Kudankulam units 1 and 2 that are not under the purview of the new law.

The new law has caused discomfort to nuclear suppliers as they are open to being legally prosecuted by operators of nuclear plants under the "right to recourse" for faulty parts or design.

This has been partially circumscribed by rules providing a time limitation and a cap on liability but foreign suppliers are worried by higher insurance costs as well as the risk of legal cases.

"I would not say we are happy or not happy with the rules. Talks are in active stage for Kudankulam 3 and 4 and we really hope that India's liability law and rules don't interfere with our grand plans for nuclear energy expansion here. We believe that if everything from our side is the same as earlier, we too must get the same terms of liability," said Kadakin.

During Russian President Dmitry Medvedev's visit to India in December last year, even as they signed an agreement for expansion of nuclear energy cooperation, the two countries did not finalize a deal for Kudankulam 3 and 4 due to concerns over the liability law and pricing issues.

On the contentious issue of NSG effectively banning any enrichment and reprocessing technology transfer to India, a non-NPT nation, the ambassador said Russia was the only country to have offered India a way out by proposing a joint reprocessing plant on Russian soil.

TOI reported on November 3 that Russia is insisting on setting up such a plant in Russia to take care of its international obligations as well as bilateral commitments in the civil nuclear deal with India.

"It is a dual approach plan and if the Indians want, they can even own shares in the unit. The plant will be in accordance with all international laws," he added. The PM has said that the nuclear deal with Russia is crucial because it goes beyond supply of reactors "to areas of research and development and a whole range of areas in nuclear energy".

GOOGLE TRANSLATIONThe Russian Embassy in Britain criticized the Foreign Officehttp://www.bbc.co.uk/russian/rolling_news/2011/12/111207_rn_britain_russian_embassy.shtml

Last updated: Thursday, December 8, 2011, 00:39 GMT 04:39 MCKThe Russian Embassy in London "regrets" remarks about Vice Foreign Minister David Lidington on Britain's parliamentary elections in Russia.The corresponding statement was published on the Embassy's website on December 7.Lidington, as said in a statement, expressed concern about the elections in the Russian Duma and called for an investigation into the breaches."Such statements can not but cause regret, especially in the context of positive changes recently in the Russian-British relations, - is emphasized in the communication of the Russian diplomatic mission in the UK. - Main [...] is that the Russian electorate spoke, and the the electoral process and its results, which coincide with those exit polls indicate health of Russian democracy. "

U.S. says will continue support for peaceful protests, including in Russiahttp://en.rian.ru/world/20111208/169471934.html

04:36 08/12/2011

WASHINGTON, December 8 (RIA Novosti)

The United States will continue to support the rights of citizens for peaceful protests everywhere in the world, including Russia, a Department of State deputy spokesperson said.

"And again, I think as we've said before, we would obviously support the rights of anyone to peaceful protest - emphasis on peaceful - anywhere in the world. And - well, Russia's no different," Deputy Spokesperson Mark Toner said.

According to official reports at least 300 people were detained when a crowd of some 5,000 rallied in central Moscow on Monday against alleged poll violations at Sunday's parliamentary elections.

"We have seen that hundreds were arrested, and there is apparently a prominent blogger who remains in detention," the deputy spokesperson said. "We've expressed our concerns about the treatment of all those being arrested who were exercising their rights to peaceful protest."

Toner said that U.S. official, including Secretary of State Hillary Clinton have already delivered their remarks on the issue.

"Secretary Clinton was very clear about raising some of the concerns with the conduct of the recent elections," the State Department deputy spokesperson said. "She said that Russian voters deserve, I think, a full investigation of electoral fraud and manipulation."

He also called on Russia to follow recommendations of international observers, including an OSCE report which is to be finalized in the coming weeks.

"We look to the Russian Government to address some of those recommendations, as we believe it's incumbent on any government to ensure a democratic, free, and transparent process for its people," the U.S. official said.

The Russian Foreign Ministry said on Tuesday comments by senior White House officials about Russian parliamentary elections were "unacceptable," including Clinton's statements that Sunday's polls in Russia were neither free nor fair.

"Comments by the U.S. Secretary of State Hillary Clinton about the Russian parliamentary elections, as well as those of other representatives of the White House and the U.S. Department of State are unacceptable," the Russian Foreign Ministry said in a statement on Tuesday.

International observers from the Council of Europe and the Organization for Security and Co-operation in Europe noted that the election preparations were technically "well-administered across a vast territory," but marked by "flagrant procedural violations," including cases of ballot-stuffing, "a convergence of the state and the governing party," limited political competition and a lack of fairness.

President Dmitry Medvedev declared Sunday's elections free and democratic but ordered an investigation into the alleged violations.

Russia-NATO missile talks to continue within months – Rasmussenhttp://english.ruvr.ru/2011/12/08/61818825.html

Dec 8, 2011 13:06 Moscow Time

Strategic ties are crucial for the Russia-NATO cooperation, and the talks on missile defense will be continue for the next several months,  NATO chief Anders Fogh Rasmussen said at meeting of the Russia-NATO Council`s foreign ministers in Brussels on Thursday.

“More than 30 countries have or about to obtain missile technology. Some missiles can already reach the territories of NATO member states. That is why the organization decided to create its own system of missile defense. And it is not targeting Russia and won`t undermine its strategic balance”, Rasmussen said.

“We are facing equal threats, so we should work hand in hand on it”, NATO Chief added. (RIAN)

General Makarov: solutions have to be made nowhttp://english.ruvr.ru/2011/12/08/61819266.html

Vesnovskaya MariaDec 8, 2011 13:23 Moscow Time

A session of the Russia-NATO Council is opening in Brussels today with the missile defense issue high on the agenda. President Medvedev expressed hope before the meeting that all hurdles concerning missile defense would be cleared. The Voice of Russia’s Maria Vesnovskaya reports.

Russia has always sought to bolster global and European security, Dmitry Medvedev said. It’s pursuing the same agenda now, so differences concerning missile defense should be resolved.

"Hopefully, Russia and NATO will be able to settle their differences and continue their partnership on the basis of mutual understanding and in the interests of global security."

However, Moscow has made it clear that its position on missile defense remains unchanged and that it will keep its promise to respond with appropriate measures to the deployment of missile defense bases. NATO deems this stance as being behind the failure of missile defense talks. NATO’s Secretary-General Anders Fogh Rasmussen said before the Council’s meeting that Medvedev’s moves to deploy weapons along the Russian border were triggered by the “wrong understanding of a missile defense system”. Alexei Arbatov of the Center for International Security says that Russia is not to blame for the absence of consensus on missile defense.

"Russia might be wrong on some aspects of the missile defense policy but NATO has been unable to understand many things too. Russia wants to know why NATO refuses to take into account Russia’s interests and provide guarantees that it will reconsider its missile defense program if the nuclear threat from Iran fails to materialize. If the missile defense program is designed as a nuclear deterrent, giving written assurances beforehand should only be logical. NATO’s position is not impeccable and inviolable, as the alliance’s chief claims it to be. Besides, NATO should not force its will on Russia or dictate to it, not if it wants to have Russia as a reliable partner."

US Ambassador to NATO Ivo Daalder underscored on the eve of the Council’s meeting that NATO would not accept Medvedev’s proposal to create a sector-based missile defense system which he put forward at NATO’s summit in Lisbon in 2010. Expert Dmitry Polikanov says that Washington tends to delay taking a decision on missile defense.

"It’s up to the US to settle the controversy because it’s mainly Washington that sets the stage for creating an American-European section of the global missile defense umbrella. The course that the Russia-NATO missile defense confrontation will follow will depend on the outcome of the presidential elections in the US which will become clear by the end of next year."

However, neither the US nor its European partners seem to be willing to change their positions. General Nikolay Makarov, Chief of the General Staff of the Russian Armed Forces, made this statement on Wednesday.

"The mere idea of building a missile defense shield could worsen bilateral relations. President Medvedev, Defense Minister Anatoly Serdyukov and me, have discussed this issue with nearly all our European counterparts. Most of them referred us to the United States. But we’re talking about Europe. But they either don’t hear or just won’t hear what we have to say."

Given that this kind of uncertainly might drag the two sides into a new arms race, solutions have to be reached now, not in 2018, when the missile defense system becomes reality, General Makarov said.

Russia-NATO Council ministers meet in Brusselshttp://english.ruvr.ru/2011/12/08/61804580.html

Dec 8, 2011 09:48 Moscow Time

A ministerial meeting of the Russia-NATO Council is opening in Brussels on Thursday to focus on the problem of missile defense, the situation in Libya and Afghanistan, as well as current issues of bilateral cooperation.

The Russian delegation at the meeting is headed by Foreign Minister Sergei Lavrov, who is expected to outline Moscow`s initiatives on the European missile defense project.

The idea is that Russia insists on legal guarantees that the U.S. and NATO missile shield in Europe is not targeting Russia.

Earlier, Presdient Dmitry Medvedev said that Moscow might have to respond adequately by deploying its Iskander missiles in its western Kaliningrad region.

(TASS)

07:05 08/12/2011ALL NEWS

Agt with RF on joint missile defence in Europe possible - German FM

http://www.itar-tass.com/en/c154/292217.html

BERLIN, December 8 (Itar-Tass) — German Foreign Minister Guido Westerwelle hopes that it is possible to reach an agreement with Russia on a joint missile defence system in Europe. The minister made this statement on Wednesday on the sidelines of a meeting of NATO foreign ministers in Brussels.

“In any case, I see not only the opportunity to reach an agreement, but also the need to reach an agreement,” Westerwelle said. “We can guarantee our security in Europe not against Russia, but only together with Russia,” he added.

“Yes, there is rhetoric bitterness, it cannot be denied,” the German foreign minister said. However, Europe has every reason to “stay in dialogue with Russia and to use the coming months in order to convince Russia that together we can strengthen our security.”

In the view of Guido Westerwelle, the European missile defence system “is not a program aimed at Russia, but a program that strongly invites Russia to participate.” According to him, NATO is also developing joint initiatives on disarmament, as the Alliance’s strategic concept gives this problem an important role. “Our motto should be as follows: to have as many weapons as necessary, but as little as possible. And it is also our proposal to Russia,” the German foreign minister stressed.

23:42 07/12/2011ALL NEWS

NATO confirms commitment to dialogue with Russia

http://www.itar-tass.com/en/c154/292090.html

BRUSSELS, December 7 (Itar-Tass) — The NATO Council has reaffirmed commitment to dialogue with Russia on missile defence, Secretary-General Anders Fogh Rasmussen said on Wednesday, December 7.

He also said a military reaction to Russia’s countermeasures announced by President Dmitry Medvedev would be premature.

Rasmussen recalled that Medvedev left the door open.

The NATO Secretary-General believes there is still time to find a compromise before the upcoming NATO summit in Chicago in May 2012.

Medvedev's missile shield remarks may be election rhetoric - NATO chiefhttp://en.rian.ru/world/20111208/169468939.html

01:39 08/12/2011

BRUSSELS, December 8 (RIA Novosti)

The NATO secretary general said the Russian president's recent remarks about Russia's countermeasures against the European missile defense system could be influenced by the parliamentary elections.

The statement is contradictory to remarks by Russian President Dmitry Medvedev, who said on December 1 that his plans to put offensive weapon systems on Russia's borders to counter a planned European missile shield were not electoral rhetoric but a forced measure.

"It's a well-known fact that in democracies you have heated debates during electoral campaigns and, of course, I can't exclude the possibility that recent statements are also influenced by the electoral mood in Russia," NATO Secretary General Anders Fogh Rasmussen told reporters after meeting with foreign ministers of NATO member states.

"But of course we have to take presidential statements seriously," Rasmussen went on. "And that's what I do by stressing that I don't think that such statements are in full accordance with what we decided a year ago in Lisbon when we clearly stated that we want to develop a true strategic partnership between NATO and Russia."

He said that he was optimistic about the future of Russia-NATO missile defense talks and the forthcoming Russia-NATO summit in Chicago due in May 2012.

"I hope that we can reach an agreement at the Chicago Summit in May," Rasmussen said earlier in the day in his doorstep statement.

"It's a shared interest to protect our populations against a real missile threat, and it would definitely be waste of valuable money if Russia started to invest heavily in counter-measures against an artificial enemy that doesn't exist," he said.

Moscow is seeking written, legally binding guarantees that the shield will not be directed against it, Washington, however, has refused to put its verbal assurances in writing.

In his address to the nation on November 23, Medvedev said that if Moscow's participation in the European missile defense project fails, Russia would deploy Iskander tactical missiles in the Kaliningrad Region and halt its disarmament and arms control efforts, including participation in the new strategic arms reduction treaty with the United States.

NATO chief rebuffs Russian threats to counter missile shieldhttp://www.washingtonpost.com/world/nato-chief-rebuffs-russian-threats-to-counter-missile-shield/2011/12/07/gIQAtyRxcO_story.html

By Karen DeYoung, Published: December 7

BRUSSELS —Russia’s threat to install countermeasures against a planned missile-defense system in Europe are reminiscent of “the confrontation of a bygone era” and reflect a “fundamental misunderstanding” of the West’s intentions, NATO Secretary General Anders Fogh Rasmussen said Wednesday.

“NATO’s position is clear,” Rasmussen said at a news conference following a meeting of NATO foreign ministers. “We need missile defense for our own security. We believe our defenses would be more effective if we cooperate . . . this is why we invited our Russian partners” to participate in the system.

A U.S. official who attended the meeting with Secretary of State Hillary Rodham Clinton said that NATO will “continue to deploy” with or without Russia’s participation.

Since NATO approved the U.S.-designed system at last year’s summit, Poland, Spain, Turkey and Romania have agreed to deploy some of its components. Negotiations with the Russians have “been slower than I expected,” Rasmussen told reporters earlier.

“People in Russia think it’s directed against them,” the U.S. official said. The Obama administration and its European allies have insisted that the system is directed toward possible long- and medium-range missiles from the Middle East. Russia, they have insisted, needs protection from the same threat.

Negotiations stalled after NATO said that Russia’s demand for a binding guarantee that the system would never be used to undermine or counter its defenses was unnecessary.

The issue is expected to be at the top of the agenda when Russian Foreign Minister Sergei Lavrov meets with NATO ministers Thursday at a session of the NATO-Russia Council.

Last month, Russian President Dmitry Medvedev threatened to withdraw from the New Strategic Arms Reduction Treaty — known as New START — on nuclear weapons reductions if NATO proceeded with the missile-defense system. He also said that Russia would prepare to deploy new ballistic missiles on its European border.

Tensions increased last week when Russia’s NATO envoy, Dmitry Rogozin, indicated that his government might cut off northern routes for U.S. and NATO supplies into Afghanistan. The route, called the Northern Distribution Network, has become increasingly vital to the Afghanistan war effort since Pakistan shut down its border crossings into Afghanistan after a U.S. air attack killed two-dozen Pakistani soldiers late last month.

A second U.S. official said that Rogozin has indicated that his remarks were taken “out of context.” A NATO official said it remains “unclear what he said.”

At his news conference, Rasmussen said that Russia’s comments about the supply network were “an empty threat . . . because it is clearly in Russia’s self-interest to contribute to success in Afghanistan.” Russia, he said, “knows from bitter experience that instability in Afghanistan has negative repercussions in Russia as well.”

More than half the supplies for NATO forces in Afghanistan now arrive from the north.

On the same path with NATO?http://rt.com/politics/press/rossijskaya-gazeta/nato-council-meeting-brussels/en/

Published: 8 December, 2011, 03:01Edited: 8 December, 2011, 03:07

The NATO-Russia Council has become a cover for NATO’s plans Evgeny Shestakov (Brussels)

On the eve of the meeting in Brussels, the French Foreign Ministry turned to the participants with an unusual request – to conduct the meeting “in a constructive and an appeasing manner.” In other words, Russia’s Foreign Minister, Sergey Lavrov, was asked to avoid angrily slamming the door and wait until NATO’s policy shifts for the better. Even so, almost no hope remains for such a positive outcome.    

The changes currently taking place in NATO seem so ambitious, and their anti-Russian orientation is so evident, that they can no longer be hidden behind the amiable smiles and appeasing speeches of NATO's leaders.

The positive agenda in relations between Moscow and the Alliance is steadily declining, and starting to represent a set of tactical and often secondary issues. Meanwhile, any dialogue on strategic issues and its results seem unsatisfactory.     

There is hope that, during Thursday’s meeting, both sides will compromise in order to come to decisions. Lavrov arrived in Brussels in order to conduct an audit of the decisions made between Russia and the NATO leadership over the last year, and the list of problems is so critical that it makes it impossible for Russia to look to NATO as a partner. When the Alliance demonstratively does not consider our country’s interests in the development of its plans, it leaves nothing to discuss. “I believe that the NATO-Russia Council, in its current form, is unsuitable for more-open cooperation,” explains Rogozin.

In the last three days, Russia’s Foreign Minister had met with US Secretary of State Hillary Clinton three times: first at the International Conference on Afghanistan in Bonn, then at the OSCE meeting in Vilnius, and now another rendezvous is taking place in Brussels for the NATO-Russia Council. In Bonn, Ms. Clinton criticized Moscow’s parliamentary elections, but did so delicately, behind the scenes. In Vilnius, her criticism was public, as if she was getting ready for an upcoming confrontation in Brussels. Her statements regarding the elections have already been called unacceptable by Russia’s Foreign Ministry.

Clearly, during Thursday’s meeting of the NATO-Russia Council, the Secretary of State will be the Alliance’s main advocate. Meeting participants will analyze the results of the Libyan campaign, where NATO troops openly acted on the side of Muammar Gaddafi’s opponents in the inter-Libyan conflict. Actions which, Moscow believes, went far beyond the concept of a defense alliance, which is how NATO leaders often refer to it. The Council will discuss the deployment of missile defense elements in Europe – a project in which Washington has once again refused to consider Russia’s position.

News agencies report on the details of a dialogue held between the US Secretary of State with Lithuanian President Dalia Grybauskaite on the sidelines of the OSCE conference in Vilnius. The topic of discussion was preparations for the upcoming NATO summit in Chicago. In particular, the head of Lithuania found it to be important that defense systems, such as missile defense, are not dependent on the systems of other countries or alliances – as there is no doubt as to what countries the US missile shield should be protected from. After such an unambiguous instruction, one could hardly expect Hillary Clinton’s “comrades” to change their views on missile defense.

US Ambassador to NATO Ivo Daalder’s statement, made several days before the ministerial meeting in Brussels, looks no less ostentatious: he explicitly said that no matter what guarantees Russia receives today, in the future, Washington will easily abandon the agreement if it impedes the implementation of American plans.

The work of the NATO-Russia Council is losing purpose, because it assumes that both sides are considering each other's interests in order to make policy changes. But NATO is not changing or planning any reforms, while the bellicose rhetoric of the Alliance members is only intensifying.

Meanwhile, Russian cooperation with NATO on certain issues – counteraction to terrorism, piracy, and natural and man-made disasters – and their successful dialogue on Afghanistan, are not helping to remove tensions between the Alliance and Moscow on some more fundamental issues. If these problems cannot be resolved “in an appeasing manner” within the framework of the Council, then perhaps it’s time to make a critical decision on how to make the format of the discussions more constructive.

Azerbaijan, Russia hold consultations to extend Gabala radar station’s lease http://en.trend.az/news/politics/1966745.html

8 December 2011, 13:44 (GMT+04:00)

Azerbaijan, Baku, Dec. 8 / Trend A. Akhundov /

Azerbaijan and Russia are to decide whether to extend the lease contract of the Gabala radar station, or to sign a new agreement.

"The Azerbaijan and Russia defence ministries are to hold meetings to either extend the existing lease of the Gabala radar station, or sign a new contract," Deputy Foreign Minister Khalaf Khalafov told media today.

The issues of changes to the cost of the lease, radar station modernisation, as well as data transfer from the station to the third countries are to be discussed, Mr Khalafov said.The Gabala radar station located in north-western Azerbaijan was built in Soviet times as one of the most important elements of a missile defence system of the USSR. After Azerbaijan gained independence the radar station become the country's property and Russia continued to use it. A 10-year agreement to lease the station was signed in 2002.

"The negotiations at governmental level have not begun yet," he said. "They will start soon."The Russian Defence Ministry will send Deputy Defence Minister Anatoly Antonov to Azerbaijan to attend the talks, a spokesperson for Russian Defence Minister, lieutenant colonel Irina Kovalchuk said earlier.

She said that Defence Minister Anatoly Serdyukov met with his Azerbaijani counterpart, Colonel General Safar Abiyev. They discussed the state and prospects of cooperation between Russia and Azerbaijan in the military area, including the issues relating to the extension of the term of the radar station, RIA Novosti reported.

"It is planned to begin inter-state negotiations to resolve these issues in the near future," she said. A decision was made to send a Russian inter-departmental delegation, headed by Deputy Defence Minister Anatoly Antonov to Baku."

Previously, the Defence Ministry reported the negotiations with Azerbaijan to extend the lease of the Gabala radar station until 2025. The term of the lease agreement and exploitation conditions of this facility expires on December 24, 2012.

Do you have any feedback? Contact our journalist at agency@trend.az

Putin says US encouraged election protests http://www.jpost.com/Headlines/Article.aspx?id=248637

By REUTERS 12/08/2011 11:23

    MOSCOW - Russian Prime Minister Vladimir Putin accused the United States of encouraging protests over Russia's parliamentary election and said hundreds of millions of dollars in foreign funds were used to influence the vote.

In his first public remarks about daily demonstrations by protesters alleging Sunday's vote was fraudulent and unfair, Putin said US Secretary of State Hillary Clinton "gave a signal" to Kremlin opponents.

"She set the tone for some opposition activists, gave them a signal, they heard this signal and started active work," Putin said.

Putin said some of the demonstrators who have protested daily over allegations of election fraud were pursuing selfish political aims and that most Russians do not want political upheaval

Most Russians do not want color revolutions – Putinhttp://english.ruvr.ru/2011/12/08/61818312.html

Dec 8, 2011 13:01 Moscow Time

Prime Minister Vladimir Putin has said that if during street rallies people act within the framework of the law, they must be allowed to express their views, if not, law enforcement bodies must use all legal means to demand compliance with the law.

He was speaking at a session of the Coordinative Council of the All-Russian People’s Front this morning, following attempts by the opposition to stage unsanctioned protests after Sunday’s parliamentary elections.

He added, however, that some protesters are pursuing their personal goals, while generally people do not want a Kyrgyz or a Ukrainian scenario in Russia.

IF

Putin says protest rallies are a constitutional right, calls for dialoguehttp://rt.com/news/line/2011-12-08/#id23209

Prime Minister Vladimir Putin has said people who oppose government policies have a constitutional right to participate in protest rallies. Speaking at a meeting of the Federal Co-ordinating Council of the Russian Popular Front on Thursday, he also called for dialogue with people of opposing views. People who take to the streets and are not breaking the law should be allowed to express their views, he said. Referring to protest rallies following the State Duma poll, the premier said some organizers were pursuing their own political goals. But the majority of people do not want the repetition of Ukrainian or Kyrgyz scenarios in Russia, Putin stressed.

December 08, 2011 12:59

Putin favors authorities' dialogue with oppositionhttp://www.interfax.com/newsinf.asp?id=293564

MOSCOW. Dec 8 (Interfax) - The authorities should hold dialogue with representatives of pro-opposition forces, Russian Prime Minister Vladimir Putin said.

"Relying on the overwhelming majority of our citizens, we ought to hold dialogue with opposition supporters and give them a chance to make themselves heard using their constitutional rights to demonstrations and to formulate their opinion," Putin said at a session of the Russian Popular Front's Coordinating Council.

tm jv

(Our editorial staff can be reached at eng.editors@interfax.ru)

December 08, 2011 12:23

Putin has no imminent comment on situation around State Duma election (Part 2)http://www.interfax.com/newsinf.asp?pg=2&id=293540

MOSCOW. Dec 8 (Interfax) - Prime Minister Vladimir Putin has abstained from immediately commenting on the situation around the State Duma election.

"I would like to say a few words about the State Duma election, very briefly. A lot of comments have been made, the problem is being dwelt upon, so I will make no comment right now," he said as he opened a meeting of the Federal Coordinating Council of the Russian Popular Front.

In his words, about 50% of the United Russia faction members are new and 25% are non-party members representing the Russian Popular Front.

te jv

(Our editorial staff can be reached at eng.editors@interfax.ru)

Putin names his presidential campaign chief http://en.rian.ru/russia/20111208/169480023.html

13:15 08/12/2011

MOSCOW, December 8 (RIA Novosti) - Russian Prime Minister Vladimir Putin has picked filmmaker Stanislav Govorukhin to run his campaign in next year’s presidential elections.

Speaking to supporters on Thursday, Putin said he wants to use an amorphous group he launched in May, the All-Russia People's Front, as the basis of his campaign.

“I would like to create my [presidential campaign headquarters] at the offices of the All-Russia People’s Front, an organization that is above parties, that unites all the people of the Russian Federation,” the prime minister said.

Govorukin, a veteran director and a one-time dissident, delivered a passionate eulogy to “Vladimir Vladimirovich” at a glitzy United Russia congress last month.

The former KGB agent appears to be trying to distance himself from his United Russia party, which won Sunday’s parliamentary election but with a much reduced majority.

Putin said he had “warm feelings” for the party which he set up in the early 2000s but added that he wanted a quarter of its fraction in the lower house to be represented by “non-party members of the All-Russia People’s Front.”

Earlier this week, the prime minister’s spokesman, Dmitry Peskov, told BBC Russia that Putin “had never been directly linked to the party.”

There have been rallies in Moscow and other cities against alleged fraud in Sunday’s parliamentary vote, most of it in favor of United Russia.

Observers from the Organization for Security and Co-operation in Europe (OSCE) had earlier said the election was “slanted in favor of United Russia.”

Nearly one thousand people have been arrested in three days of protests and the biggest rally yet is scheduled for Saturday, with tens of thousands of people signing up to Saturday's protests on social networks such as Facebook and Vkontakte.

Former Soviet leader Mikhail Gorbachev on Wednesday called for a re-run of the election.

“The country’s leaders must admit there were numerous falsifications and rigging, the results do not reflect the people’s will,” he told the Ekho Moskvy radio station.

12:15 08/12/2011ALL NEWS

Putin’s election headquarters to base on All-Russian Popular Front

http://www.itar-tass.com/en/c154/292429.html

MOSCOW, December 8 (Itar-Tass) —— Election headquarters of presidential candidate Vladimir Putin will be organised on the basis of the All-Russian Popular Front.

The prime minister offered the chairing role in the headquarters to head of the Mosfilm Concern Stanislav Govorukhin.

“During the presidential election campaign, there will be certain structures: headquarters of candidates for presidency in the Russian Federation,” Putin told a meeting of the Federal coordination council of the Front. “Until now, they have been technological,

administrative structures.”

“Thus, I would like to voice a suggestion: i would like the headquarters of your humble servant were not a technical, administrative structure, but i would like it to be of an open character,” the prime minister said.

Putin added that if the participants in the movement do not object, he would like to organise the headquarters “on the basis of the All-Russian Popular Front, on the basis of the organisation which is above parties and which unites most different people, with most different political views, but who share common basic values of development of this country.”

Russian Prime Minister Vladimir Putin has asked non-affiliated winners in the elections of the 6th State Duma on the United Russia ticket not to cede their seats to party functionaries.

“We have already seen what is happening in some regions, there where United Russia functionaries failed qualify, but Popular Front representatives succeeded. Already now these are being persuaded to cede their mandates to United Russia functionaries,” Putin said at a meeting of the federal coordinating council of the All-Russia Popular Front.

Putin said that he had a very “nice and warm” feeling towards the United Russia party.

“But I am asking you, those candidates who won, not to succumb to pressures,” Putin said. “Not to hand in any mandates.”

He added that State Duma seats must be taken by those who emerged the winners in fair struggle.

Moscow Closes Protest Square for Maintenance, Vedomosti Sayshttp://www.bloomberg.com/news/2011-12-08/moscow-closes-protest-square-for-maintenance-vedomosti-says.html

By Yuliya Fedorinova - Dec 8, 2011 8:34 AM GMT+0400

Moscow authorities closed the square where political activists plan to gather to protest the Dec. 4 parliamentary elections, Vedomosti reported, citing Mosvodokanal, operator of the capital’s water pipeline network.

As many as 20,000 people are planning to demonstrate at Revolution Square on Dec. 10, the Moscow-based newspaper reported today, citing its own estimates from data posted

on social networks. City authorities gave approval for a demonstration of no more than 300 people.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

12:57 08/12/2011RUSSIAN PRESS REVIEW

The Opposition is planning a large rally

http://www.itar-tass.com/en/c142/292500.html

MOSCOW, December 8 (Itar-Tass) — The Opposition plans rallies in Moscow and other cities on Saturday, December 10, in protest against the parliamentary election fraud. In the Russian capital, a rally will be held in Revolyutsiya /"Revolution"/ Square by the "Solidarity" opposition movement. Other organizations intend to participate in the action. The federal and municipal authorities are worried about the protests.

The number of the participants in the Revolyutsiya Square rally on December 10 may considerably exceed the declared 300, the "Vedomosti" writes, "a campaign to take part in the protest is gaining momentum in social networks, not just in the Russian capital."

The "Vedomosti" estimates some 60,000 people registered as potential participants on Facebook and VKontakte, including 20,000 in Moscow. The number of potential participants keeps increasing.

"The Federation of Russian Car Owners (FAR) stated its support.»We intend to make a car run through central Moscow with the endpoint in Revolyutsiya Square, where a rally is planned to protest the election violations. We intend to support the rally by participating in it," FAR leader Sergei Kanayev said. The activists of the movement intend to put stickers on their cars reading "For Fair Election!" and distribute such stickers for free.

However, the Mosvodkanal water supply company began digging works on Thursday, which may foil the action. The company spokesman confirmed repairs of a damaged section in Revolyutsiya Square.

The Kremlin, too, is worried about the protests in the capital. The government and Town Hall are now working on their line of conduct in the situation, said the "Vedomosti," citing sources in these bodies. The situation in Moscow was reported to the president at a meeting with the administration on Wednesday, but the decision was postponed to Thursday, a Kremlin official said. The Security Council met on Wednesday. Taking part

in the meeting were the president, the prime minister, and the senior officials of the Interior Ministry and the Federal Security Service.

The authorities overreacted with the use of force, and even celebrities began to side with the opposition, a source close to Town Hall said, "the number of discontented is only increasing."

Yabloko leader Sergei Mitrokhin stated his readiness to join the protest, the "Novye Izvestia" underlines, as did A Just Russia lawmaker Gennady Gudkov who stated in Triumfalnaya Square on December 6 that Opposition parties did not rule out new large rallies against election fraud. Communist lawmaker Valery Rashkin said the party had submitted an application to Town Hall to hold a march and a rally on December 18. Rashkin noted that the Communists might take part in other actions.

Lawmaker from the Liberal Democratic Party (LDPR) Maxim Rokhmistrov told the newspaper that the Party is planning actions of its own: "as for the consolidated rally with other political forces, no decision has been made yet. "We don't want small parties to score points at our expense. We're capable of staging a large action on our own and will invite others to join. If it turns out to be a serious political action, we’ll see and may support what they will say."

"Our core group, which will turn up for the rally, will be making its own case," the "Moskovsky  Komsomolets" quoted member of the Communist Party's Central Committee, lawmaker Sergei Obukhov as saying, "we don't want to be Nemtsov's cannon fodder." The newspaper notes that the Party had taken a two-sided position: on the one hand, it is sort of joining the protesters, but, on the other, nobody prevents the Communists' coming out to Revolyutsia Square. Until recently, an unofficial ban on joint actions with non-system opposition forces has been in effect with the Communists recently. At present, given the rapidly changing political situation, it is allowed to join any actions. A Just Russia has adopted the same stance as the Communists. Officially, the Party is not coming out to Revolyutsiya Square, but A Just Russia activists will.

The "RBK Daily" reminds that this weekend will mark the first anniversary of the protests football clubs fans and nationalist-minded youths staged in Manezhnaya Square. "We won't allow the recurrence of last year December events in Manzhenaya Square," a Moscow police source told the newspaper. Police are actively monitoring social networks for accords on nationalists' rallies to mark the first anniversary of the event. No particular activity has been reported so far. "If they dare come to Manezhnaya Square on that day, they will be stopped on the approach to it," the source said.

Moscow city hall says will allow only 300 people at Saturday's rallyhttp://en.rian.ru/russia/20111208/169471026.html

03:32 08/12/2011

MOSCOW, December 8 (RIA Novosti)

Moscow Deputy Mayor Alexander Gorbenko warned organizers of Saturday's rally against election results that the number of protestors should not surpass the previously declared 300 people.

Some 20,000 people have so far indicated on social network sites that they will attend a sanctioned protest on Saturday at central Moscow's Revolution Square.

"A total of 300 participants were declared to take part. If more people are eager to join, organizers will be held responsible. We will warn people that they attend an unsanctioned part of the rally, and are thus subject to all measures envisaged by the law," the deputy mayor said in an interview with the Ekho Moskvy radio station.

Gorbenko invited organizers to apply for another rally location if they expect more people to come.

"We will find an opportunity to choose a more suitable place together," he said, adding that it was only a matter of public security.

The deputy mayor said the organizers face a fine or an administrative arrest of up to 15 days for violating the law on public protests.

Demonstrations against alleged electoral fraud in favor of Prime Minister Vladimir Putin's United Russia party continued for a third night on Wednesday, with arrests in both Moscow and St. Petersburg, police said.

The deputy mayor also dismissed media reports that the square would be closed for "repairs" before Saturday. According to a RIA Novosti correspondent, who visited the site of the future protest, an area of 50 by 70 meters is currently closed.

December 07, 2011

Russian Journalist Calls On Colleagues 'To Be Professionals' MOSCOW -- A prominent Russian journalist has called on journalists working for the state-run media to be "professionals" after they failed to cover recent demonstrations against Prime Minister Vladimir Putin, RFE/RL's Russian Service reports.

In a statement, Stanislav Kucher of Kommersant FM radio slammed those journalists for

their "keeping mum" about the events on Moscow's Triumph Square on December 6 in which thousands of people protested alleged fraud in the December 4 parliamentary elections and shouted anti-Putin slogans.

The demonstration was not sanctioned by Moscow authorities, although thousands of supporters of the ruling United Russia party were given official permission to gather on the square. Police arrested some 600 protesters and opposition politicians Eduard Limonov, Sergei Mitrokhin, and Boris Nemtsov, among others.

State-run television and radio failed to cover the protests or the arrests.

Kucher told RFE/RL that the goal of his statement -- which was published on the Kommersant website (read in Russian here) -- is to help five, 10, or 20 colleagues working for state media outlets "to wake up and start doing their jobs professionally."

"This is not about politics or something; this is about professionalism, that is all," he said. "I personally know some colleagues working in state television companies who are capable of simply saying 'no' at the editorial meeting and start doing something different than they have been instructed to do."

Kucher said many journalists were only working for state media because they listen to their bosses and do as they are told, a condition that they accept.

But he added that now was a time for "big changes" and people could and should change their practices.

Kucher added that he had received numerous phone calls from various journalists who have made very different comments regarding his statement. But he said the majority who called said that they support his call.

Read more in Russian here

Radio Free Europe/Radio Liberty © 2011 RFE/RL, Inc. All Rights Reserved.

Safin elected to Russian parliamenthttp://www.abc.net.au/news/2011-12-08/safin-elected-to-russian-parliament/3720306/?site=newcastle

Updated December 08, 2011 13:19:56

Two-time grand slam winner Marat Safin is swapping tennis whites for business suits after being elected to the Russian federal parliament, the Duma.

The former world number one, who was elected to the 450-seat lower house of Russian parliament, said he had thought long and hard about what to do with his life after his sporting career.

"I could go and make commercials left and right and pretend like I am a celebrity, but that is not me," he said.

"This is a completely new life, a new way of thinking, new way of doing things that's nothing to do with tennis or sports at all.

"But the two things definitely have one thing in common and that is that you need to have a character."

Safin, 31, is a member of Vladimir Putin's United Russia Party and will represent the Nyzhny Novgorod region, about 500 kilometres from Moscow.

United Russia is expected to win the election with a reduced majority, but the weekend poll has been widely criticised both inside and outside Russia, with widespread allegations of voter intimidation and vote rigging.

Overnight former Soviet leader Mikhail Gorbachev called for the elections to be re-run and the opposition vowed to stage new rallies contesting the result.

Despite the cloud over United Russia's apparent victory, Safin's election win was praised by former on-court opponent and tennis great Pete Sampras.

Sampras went down to Safin in the 2000 US Open, handing the Russian his first grand slam win.

"In 20 years Marat will be the president of Russia," Sampras said.

"Marat is going to go a long way.

"He is very intelligent and articulate and he's good with people, and that's half the battle with being a politician."

AAP/ABC

09:52 08/12/2011ALL NEWS

GLONASS providing global coverage

http://www.itar-tass.com/en/c154/292289.html

MOSCOW, December 8 (Itar-Tass) — The number of units in Russia's global navigation system has been brought to 24, so GLONASS now ensures a continuous navigation signal worldwide, spokesman for the Russian Space Systems company /RKS/ Alexander Zubakhin told Itar-Tass on Thursday.

"Today, the first of the three spacecraft launched on November 4, 2011, went on line; the GLONASS cluster therefore has 24 units in dedicated use, which ensures a continuous navigation signal globally," Zubakhin said.

RT News line, December 8

ISS crew set for final pre-flight training at Baikonurhttp://rt.com/news/line/2011-12-08/#id23197

The main crew of this year’s expedition to the International Space Station – along with some backups – are preparing for a final pre-flight training at Russia’s Baikonur cosmodrome in Kazakhstan. Russian cosmonaut Oleg Kononenko, European Space Agency (ESA) astronaut Andre Kuipers and NASA astronaut Donald Pettit are to conduct two final fit-checks of the Sokol spacesuits and the third digital series Soyuz TMA-03M spaceship, which will bring them to orbit in two weeks, Itar Tass reports. Together with the main crew, their backups Yury Malenchenko, Akihiko Hoshide and Sunita Williams will conduct the final operations before the spaceflight. The launch of the Soyuz TMA-03M spaceship is scheduled for December 21, and the craft is planned to dock with the ISS on December 23.

09:06 08/12/2011ALL NEWS

Attempt made in Dagestan to demolish Baku-Grozny oil pipeline

http://www.itar-tass.com/en/c154/292256.html

MAKHACHKALA, Republic of Dagestan, December 8 (Itar-Tass) — Unidentified people in Dagestan set off an explosive device planted under the Baku-Grozny main oil pipeline on Wednesday night.

An officer at the republican Interior Ministry told Itar-Tass on Thursday, "The blast made a dent with a diameter of 10-12 centimeters in the pipeline. There was no oilspill".

The incident occurred in an area called Dagir-Kala, Karabudakhken District, three kilometers from Manas Village. Criminal proceedings have been instituted in connection with the incident. An investigation is under way.

11:12 08/12/2011ALL NEWS

Fire at Domodedovo warehouse put down

http://www.itar-tass.com/en/c154/292354.html

MOSCOW, December 8 (Itar-Tass) — The fire, which broke out at a warehouse with wooden trays in the Moscow regional town of Domodedovo, was put down, one man was killed in the fire, the press service of the Moscow regional police department told Itar-Tass on Thursday.

The fire broke out in a metallic hangar in the village of Vostryakovo in Vokzalnaya Street. The fire spread on 800 square meters.

“The fire was put down, a worker died of carbon dioxide poisoning,” the press service said, noting that six fire engines continue to pour water on the burnt warehouse building.

The death toll at a warehouse in the Moscow regional town of Domodedovo reached three people.

The fire broke out at a metallic hangar in the village of Vostryakovo in Vokzalnaya Street, the press service of the Moscow regional police department told Itar-Tass on Thursday. The fire spread over 800 square meters.

“Another two people were found dead in the cleanup of the debris. So, the fire death toll reached three people,” the press service said.

Six fire engines keep working at the fire site.

Russia deny 'dirty tricks' as FBI investigates World Cup 2018 racehttp://www.telegraph.co.uk/sport/football/teams/england/8941725/Russia-deny-dirty-tricks-as-FBI-investigates-World-Cup-2018-race.html

The Russia 2018 World Cup organising committee says it has no knowledge of the ongoing FBI investigation into alleged computer hacking and other “dirty tricks” arising from the Fifa bidding process.

By Paul Kelso, Chief Sports Reporter

6:45AM GMT 08 Dec 2011

Russia emerged victorious from the 2018 World Cup race following a Fifa vote in December last year, the circumstances of which are now the subject of inquiries by the American law enforcement agency.

Telegraph Sport revealed on Wednesday that investigators from the FBI have interviewed members of England’s failed 2018 World Cup bid as part of an investigation into alleged corruption.

It is understood that the FBI claim to have “substantial evidence” of outside organisations attempting to hack the email accounts of the USA’s bid for the 2022 tournament, and believe the English bid may have also been affected.

The interviews, conducted in the last month, are part of an inquiry into allegations arising from the World Cup bidding process a year ago, and the Fifa presidential election in June.

Investigators claim to have “really great intelligence” of malpractice and came to London last month to interview people present in Zurich at the time of the World Cup vote.

In a statement the Russia 2018 organising committee said they were unaware of any investigation and that they conducted their bid in a “transparent” way. “Russia 2018 will not comment on speculation: the LOC (local organising committee) has not been contacted regarding any investigation, nor have we been made aware that any such investigation exists,” they said.

“We at Russia 2018 are proud of the way we conducted ourselves throughout a long and highly competitive campaign; as an LOC, we are driven by exactly the same transparency, commitment to excellence and spirit of Fair Play that underpinned our successful bid.

“Right now, our focus is on ensuring the momentum behind our preparations continues to build. We are already looking forward to welcoming the global football community to a celebration of the values we all share and the game we all love in 2018.”

The FBI is understood to have asked England 2018 officials, who are not under suspicion, if they were aware of dirty tricks in the World Cup campaign.

The FBI is also understood to have interest in potential offences arising from the alleged bribery of Caribbean football officials by Mohammed bin Hammam, who stood against Sepp Blatter for the Fifa presidency.

Bin Hammam has been banned for life by Fifa after being found to have offered $40,000 (£25,000) bribes to Caribbean football officials three weeks before the election.

It is suspected that the currency offered to the officials was transported through US borders, a potential offence if it was undeclared.

Kremlin Plans to Sell Own Brands of Vodka, Beer, RBC Daily Sayshttp://www.bloomberg.com/news/2011-12-08/kremlin-plans-to-sell-own-brands-of-vodka-beer-rbc-daily-says.html

By Yuliya Fedorinova - Dec 8, 2011 10:49 AM GMT+0400

The Kremlin plans to sell alcoholic and soft drinks under its own brand to increase revenue, RBC Daily reported, citing Victor Khrekov, an official in President Dmitry Medvedev’s administration.

The Kremlin has registered six trademarks so far, including Kremlin Vodka, Kremlin Beer and Kremlin Lemonade, and plans to license the rights to make those drinks to producers and collect royalties on sales, the Moscow-based newspaper said today.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Russian Press at a Glance, Thursday, November 8, 2011http://en.rian.ru/papers/20111208/169476522.html

08:30 08/12/2011

A brief look at what is in the Russian papers today

POLITICS

Prime Minister Vladimir Putin visited the Central Elections Commission to file paperwork declaring himself a candidate for president.(The Moscow Times, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta, Moskovskie Novosti, Izvestia)

The Russian Foreign Ministry criticized foreign observers’ evaluations of the elections in Russia as “biased” and “politicized.” Meanwhile, opposition leaders and rights activists presented fresh indications of massive fraud at last Sunday's parliamentary vote, insisting that election officials fabricated 20 to 25 percent of United Russia's results.(The Moscow Times, Kommersant, Moskovskie Novosti)

About 20,000 Muscovites unhappy with the election results said they were ready to take part in Saturday’s protest. Rallies against alleged election fraud have been held in Moscow and other major cities since Monday, leading to the detention of almost 1,000 people. Meanwhile, the Presidential Council on Civil Society and Human Rights is to give its opinion about the elections (Kommersant, Nezavisimaya Gazeta, Moskovskie Novosti, Vedomosti)

Opposition leader Alla Dzhioyeva, who declared herself winner in last week’s presidential elections in South Ossetia, said she was satisfied with the talks with the Russian mediator, while President Eduard Kokoity sacked a number of unpopular officials to ease tensions in the country(Kommersant, Nezavisimaya Gazeta, Vedomosti, Izvestia)

December 8 marks the 20th anniversary of the meeting between leaders of Russia, Belarus and Ukraine in the Belovezhskaya Pushcha Natural Reserve in Belarus in 1991 and the signing of an agreement to set up the Commonwealth of Independent States (CIS). The agreement said all the members were sovereign and independent nations and, thereby, effectively abolished the Soviet Union. (Rossiiskaya Gazeta, Moskovskie Novosti, Vedomosti)

ECONOMY

A two-day European Union summit will begin in Brussels on Thursday evening. The summit is expected to result in key decisions on the future of the Eurozone with two projects being submitted for discussions(Kommersant, Nezavisimaya Gazeta, Vedomosti)

Russia’s foreign trade in January-October grew 21.8 percent year-on-year and stood at $170.1 billion (Kommersant)

The inflation rate in Russia has remained unchanged for the fourth week running and stood at 0.1 percent from November 29 to December 5. According to Russia’s state statistics service, inflation stood at 5.7 percent since the beginning of 2011 (Nezavisimaya Gazeta)

The Federal Customs Service might have to change some of its internal regulations that bog down foreign trade, following Russia's accession to the WTO.(The Moscow Times)

OIL & GAS

After several years of discussions, Bulgarian authorities decided to quit the Burgas-Alexandroupolis pipeline project by paying 6.7 billion euro in compensation to other participants of the projects (Kommersant, Vedomosti)

Talks to renew Moldova’s contract on gas supplies from Russia, which expires on December 31, are in a deadlock (Nezavisimaya Gazeta)

VEHICLES & ENGINEERING

The country's officials may be chauffeured to work in new models of domestic ZiL luxury cars, exchanging them for the Mercedes and BMWs currently in use.(The Moscow Times)

Competitive advantage of production in Russia - cheap workforce and energy - are a myth. The production of cars at the Kaluga plant of Peugeot-Citroen and Mitsubishi is 5% more expensive than in Europe and 15-20% than in China or Korea(Vedomosti)

Russia has a worse aviation safety situation than in Congo or Indonesia, according to the international agency Ascend(Vedomosti)

DEFENSE

A ministerial meeting of the Russia-NATO council will be held in Brussels on Thursday, the first high-profile event since Russian President Dmitry Medvedev’s harsh remarks about the European missile defense system. NATO Secretary General Anders Fogh Rasmussen said ahead of the meeting that progress toward a missile defense deal has been slower than expected but Russia would be wasting money by investing in counter-measures against an imaginary threat from the West. Russia’s envoy to the alliance, Dmitry Rogozin, said the Council has become a smokescreen for NATO, which makes decisions first and then simply announces them to the Russian side 

(The Moscow Times, Kommersant, Rossiiskaya Gazeta)

Weapons supplies by Russian state arms exporter Rosoboronexport will grow by $1 million this year. Further growth, however, has been hampered by the revolutions in the Middle East and North Africa (Vedomosti)

SOCIETY

In the latest in a long string of fatal accidents involving officials, a Supreme Court judge in the republic of Chuvashia fatally struck a 34-year-old woman crossing the street(The Moscow Times)

A year has passes since the team of Moscow Mayor Sergei Sobyanin started its program to improve the traffic situation in the capital. Despite over 200 billion rubles spent on solving Moscow’s notorious traffic problems, the average traveling speed in Moscow continues to fall, and traffic jams continue to grow(Kommersant)

For more details on all the news in Russia today, visit our website at www.en.rian.ru

Hoeve Halbach: “Meeting points of conflict environments in the North and South Caucasus are clearer”http://vestnikkavkaza.net/interviews/politics/20714.html

German expert on the Caucasus from the Berlin ‘Science and Politics” Foundation, Professor Hoeve Halbach, shared his view of the ongoing processes in the South and North Caucasus with a VK correspondent. The last part of the interview is devoted to problems of the North Caucasus and connection of processes in the North and South Caucasus.

- Mr. Halbach, what can you say about the situation in the North Caucasus and its influence on the South Caucasus?

- Often the connection between geopolitical processes in the North and South Caucasus is not considered. International conferences in the South Caucasus were held separately from international conferences on Chechnya and the North Caucasus in general. A fresh view is necessary here. First of all, the North Caucasus includes not only Chechnya. Chechnya is not a center of violence anymore, it has moved to Dagestan and partially to Kabardino-Balkaria and Karachay-Cherkessia. In the long term it could be Sochi, as in 2014 it will become an attractive target for militants.

On the other hand, meeting points of conflict environments in the North and South Caucasus are becoming clearer. For example, Abkhazia and South Ossetia are meeting points: the connection between South Ossetia and North Ossetia, Abkhazia is oriented towards the North Caucasian space. One more meeting point is the Pankisi Gorge at the border between Georgia and Chechnya. I think none of these points should be forgotten. The president of Georgia is developing a North Caucasus policy. Tbilisi wants to influence events in the North Caucasus.

- Can Tbilisi really influence the situation in the North Caucasus?

Georgia actively supports Circassian movement. A conference was organized in Tbilisi with the help of James Town. It was the first conference devoted to the historic past, the genocide of the Circassians. This conference was echoed in the USA. The Georgian parliament was first to name colonial policy of Russia toward Cercessian people “genocide” like parliaments of many countries recognize genocide of Armenians by Turkey in 1915. This issue is highly politicized, and it is a part of Georgian policy to Russia. Nevertheless, connection between South and North Caucasus is relevant. After 2008 Georgia is counting on regional policy. For example, it stated on confederation with Azerbaijan, visa free regime with Iran and North Caucasus republics.

- At the same time, in Russia there are some opinions improving anti-Russian attitude in the North Caucasus. I mean popular motto “Stop feeding the Caucasus!”

- The North Caucasus is a challenge for Russia itself. That’s why Georgia counts for this relevant problem of Russia, as Russia doesn’t cope with the situation in the region. On the one hand Russia wants to be the major force in the South Caucasus, and the war between Russia and Georgia confirmed it, as well as active diplomatic efforts in the sphere of the Nagorno-Karabakh conflict settlement. On the other hand, Russia loses influence in its North Caucasus republics. Even great investment doesn’t make the region calmer. That is why position of Russia in the Caucasus is ambiguous.

- You’ve mentioned that Chechnya is no longer the center of violence on the North Caucasus. Do you believe the ‘Chechen model’ is working?

- No, I don’t. I just meant that Chechnya is no longer a site of military actions, as it was a few years ago. And it is not on the top of the list as far as acts of terror and shootouts with police are concerned. But you can’t call Chechnya a peaceful place and its government – a civilized one. From the European point of view Kadyrov is not a democratic leader, he is a despotic ruler. So this ‘Chechen model’ is dubious at best. But you can’t deny that there are some positive changes there. On the other hand there is some evidence that under Kadyrov’s rule Chechnya is slipping away from Moscow’s control, and is more independent than in the times of separatist Dudayev. According to polls, the public in Russia deems the North Caucasus to be something like a separate state. And right-radical slogans ‘Enough of feeding Caucasus!” gains wide support. The nature of anti-terrorist measures on the Caucasus also raises some questions. For example, when they try to fight

terrorism with… tourism and build resorts in dangerous zones. I don’t think that anyone apart from extreme-lovers would go there.

- So how should one fight terrorism?

- It’s hard to tell. Nor the 'security group', nor Presidential Envoy Khloponin’s strategy were able to pacify the region. Police there is criminalized and terrorizes the residents at least as much as the actual terrorists. The influence of Islam has also increased. So I don’t believe that the ‘strong hand’ or Khloponin’s civilizing program will give any positive effects any time soon.

Orkhan Sattarov, exclusively to VK

Russian protests offer unusual challenge to political orderhttp://www.washingtonpost.com/world/europe/gorbachev-calls-for-nullifying-elections-as-protests-continue-in-moscow/2011/12/07/gIQAyWnMcO_story.html

By Will Englund and Kathy Lally, Published: December 7

MOSCOW — An extraordinary political refashioning is underway here as protesters galvanized by widely reported electoral fraud are demanding that their government obey the law.

What began in the minds of individual Russians is now playing out on public squares where crowds of protesters have confronted swarms of police.

Since Sunday’s elections, won by the ruling United Russia party with a reported total of just under 50 percent of the vote, a sense of disgust that had been gathering weight has found a public voice.

Unsanctioned — illegal — protests have broken out in Moscow, St. Petersburg, Rostov-on-Don and elsewhere of a size rarely seen in Vladimir Putin’s dozen years in power.

Closing public squares

On Wednesday police sealed off Triumfalnaya Square, the scene of past protests. A radical party called the Other Russia said 70 members were detained on the way to the square in the evening.

The New Times magazine reported that the city was closing Revolution Square for reconstruction; that was to be the site of a major rally Saturday, and 20,000 people have

signed up on Facebook promising to attend. The city later suggested that the work would be done by Saturday after news of the closure lit up the Twittersphere.

It could run out of steam. A few million voters turned against United Russia at the polls Sunday, and a few thousand, in a capital city of 13 million, have taken to the streets to protest an election deemed neither free nor fair. The vast majority of Russians are home in front of their big-screen TVs, seeing almost nothing of this activity because television news isn’t reporting it.

In January 2010, protests in Kaliningrad brought 12,000 to the streets to demonstrate against authoritarianism and economic policies, and government opponents hoped the discontent would fill streets across the nation. The movement slowly died.

Yet the events of this week have brought into the open a debate – on the Internet, in the newspapers and in countless apartments – that Russians hadn’t known they could have. Something has broken.

On Monday, 5,000 demonstrators took to the streets, and police detained 300. On Tuesday, United Russia brought in busloads of young supporters, with police escorts, and 600 protesters were detained.

Rising discontent

Before Sunday, Russians were voicing increasing discontent with the perceived fix in the upcoming election. And now, quite suddenly, the public protests have upended the settled political expectations of the past decade.

“You told them that you exist,” anti-corruption blogger Alexei Navalny shouted Monday night before he was arrested. The crowd cheered. “They can hear that, and they are afraid.”

This is nothing like the last days of the Soviet Union, when hundreds of thousands marched for democracy and desperate coal miners went on strike.

“They were strong because the country needed their coal,” said Dmitri Gornostayev, a 23-year-old engineer, “and they lived like beggars. So they were willing to fight, and the authorities had to listen.”

Duma vote falls into disrepute; "Russian Winter" might still snowball

http://www.bne.eu/storyf3105/Duma_vote_falls_into_disrepute_Russian_Winter_might_still_snowball

bne December 7, 2011

Contrary to international reports, protests have not rocked Moscow. But an ongoing post-mortem into December 4's parliamentary elections sees them fall deeper into disrepute, and there is now the potential for a mini "Russian Winter" in the capital.

International reports of troop-defying mass protests in Moscow are a huge exaggeration. While the day after the elections saw a largeish 5,000-strong rally in downtown Moscow protesting electoral fraud, Tuesday's protests of 500-1,000 people were disbanded by police, and overshadowed by a 2,000 strong pro-Putin rally by the youth organisation Nashi.

But an ongoing analysis of the conduct of the elections, including whistleblower accounts of vote-rigging, mean the Duma vote is sliding deeper into disrepute. With international voices raised against the vote, and Moscow's blogosphere debating a protest strategy, there is the potential for more protests as the country moves towards presidential elections in March, which are likely to see Vladimir Putin return to the presidency.

Whistle-blower

The Associated Press goes today where no pressman has gone before in running an extensive anonymous interview with a chairman of an Moscow precinct electoral commission. According to this chairman, his workers stuffed ballots all day Sunday, but it still was not enough to get the desired result for Putin's party United Russia: so he talked the problem over with his commission and the decision was reached that United Russia would be given 65% of the vote, with some compensation votes being redistributed to the Communists.

The chairman also told AP that election workers had been trained on how to stuff ballots quietly, and demonstrated how to fold a stack of 30-50 ballots in half, hide it under a jacket and slip it noiselessly into the ballot box.

According to the official, in Moscow the four main parties of United Russia, Liberal Democrats, A Just Russia and the Communist Party, negotiated how many votes each would get in district precincts: United Russia initially wanted 68 to 70%, but eventually settled for around 65%. The actual United Russia vote for Moscow was a lower 45%, but an exit poll conducted by FOM polling organisation put the United Russia vote at only 25% in Moscow.

Overall, United Russia polled 49.6%, 16 percentage points down from their result in 2007. The result surprised many with the extent of United Russia's drop in vote, despite the obvious use of electoral fraud. The result also seemed to be broadly in line with nationwide opinion polls and exit polls.

The AP report tallies with numerous anecdotal reports and also internet video clips showing instances of apparent egregious electoral fraud, especially in Moscow - demonstrating how the internet in Russia has become a force to be reckoned with.

The Putin/Medvedev administration is showing signs of nerves, with Interior Ministry troops reported moving through Moscow December 6. A small attempted pro-democracy protest was broken up by riot police yesterday, and it was the pro-Putin youth movement Nashi that had the numbers holding a rally attended by 2,000.

Following the initial protest of around 5,000 in Moscow on Monday, international voices including US Secretary of State Hilary Clinton and EU High Commissioner Catherine Ashton spoke up to criticise the Duma vote.

Deputy head of the presidential administration, Vladislav Surkov, seen as the grey cardinal of Russia's "managed democracy" system, seems to be losing his grip or sliding into self-parody. In response to the protest mood in Moscow, he suggested founding a new party for discontented city-dwellers.

The electoral rot in Russia set in big time with the Duma elections in 2007. In hindsight, there was clearly a target set for United Russia to achieve a constitutional majority of two-thirds in the Duma. The plan was to subsequently change the constitution and in 2008, the Duma duly voted to extend presidential terms of office to six years and Duma convocations to five years. This then paved the way for Vladimir Putin to return to the Kremlin as president for up to an additional 12 years in 2012, after the four-year pro-forma interim presidency of Dmitry Medvedev.

Shortly before the 2007 elections, in a shock decision long-serving and highly respected chairman of the central electoral committee Aleksandr Veshnyakov was replaced by the current bearded wonder Vladimir Churov. Churov had no prior experience of organising elections, and has shown himself to be a slave of United Russia, which has largely merged with the electoral commission. Both United Russia and the electoral commission are directed by the Kremlin’s Vladislav Surkov.

There is little doubt that Vladimir Putin still has a core support among the population of about 45%. But there is a growing disgust at the Byzantine manoeuvring and fraudulent votes perpetrated to get him back in office for 12 years in 2012. Putin may have finally ‘jumped the shark’ and lost his media-backed reputation among ordinary Russians as an honest broker and straight shooter. The blatant involvement of his entourage in the corruption and insider dealing that is so rife in Russia may also void his reputation as the man who ousted the oligarchs from the Kremlin.

In particular, the apparent sharp drop of support for United Russia in Moscow and corresponding surge in electoral fraud there may light a fuse among the capital’s politicised blogosphere. The result might be some new protest movement emerge in the capital this winter, as the country moves towards presidential elections in March.

Putin will return as president, but will it be for a further six or 12 years?

Russia United, For The Time Being – OpEdhttp://www.eurasiareview.com/08122011-russia-united-for-the-time-being-oped/

December 8, 2011By Eric Walberg

With a 60 per cent turnout, United Russia’s solid 49.5 per cent plurality in the 4 December Duma elections, giving it 238 of the 450 seats, is the envy of any Western political party. But it is nonetheless a disappointment after its 2007 sweep, where it gained over two-thirds of the seats. Very, very few parties ever approach the magic two-thirds that lets them ignore the opposition and change the constitution, and Prime Minister and president-virtually-elect Vladimir Putin even put a positive spin on the results: “This is an optimal result which reflects the real situation in the country,” Putin, 59, said coolly. “Based on this result we can guarantee stable development of our country.” (He will be recrowned president in pro forma elections 4 March.)

Post-Soviet Russian politics over the past two decades has been a rollercoaster. Until the founding of United Russia in 2001, a short decade ago, the Russian Communist Party was the largest political force in the country. By uniting the Westernisers and soft nationalists around his charismatic leadership, Putin was able to push the Communists aside and capture 1/2 the seats in 2003, UR’s debut. Within a few weeks an additional 78 MPs climbed on the bandwagon, giving UR the magic two-thirds. With this election, the Communists have now recovered, almost doubling their vote to 20 per cent, an underestimate of their real support, given who has the money and who controls media and election procedures. “The Communists are the only real party out there,” admitted one Western banker in Moscow, and are now attracting even liberals disillusioned with UR.

In his first two terms as president, Putin transformed Russia, with UR his political figleaf, restoring state power in the economy, centralizing political control, guaranteeing a piece of the pie for almost all, while hiding the many deep social and political problems – corruption, violence, gangs, mafia, drugs, despair, and on and on. Relying on Soviet-era prestige and Russia’s vast material resources, UR has been the vehicle for creating a crude but powerful national force that keeps chugging alone, even as the West descends into financial chaos and self-inflicts wounds in pursuing will-o-the-wisp imperial wars around the world.

Of course, the Duma is not much more than a prestigious sandbox, an expensive talk shop which can’t take any real initiative without a nod from above. The whole electoral process is heavily in UR’s favour, with a brutal 7 per cent popular vote necessary for initiation into the club, and persistent rumours that the also-ran Communists, Liberal Democrats and Fair Russia quietly cut deals to divvy up the seats in less than transparent proportional elections. UR is able to mobilise the vast administrative apparatus, the fortunes of oligarchs, the private and public airwaves. It is for all intents and purposes invincible. The elections, however, are still an important barometre of public mood, and the almost daily opinion polls make too blatant vote-rigging a risk, given the Russian elite’s proclaimed insistence that Russia is “democratically” governed.

The general outlines of post-Soviet Russia as shaped by UR-Putin have now become clear: Russia will not join the West as a subservient “postmodern state”, the neocon version of Kant’s world order, where nations give up their sovereignty to a “higher” organisation in the interests of world peace. (Kant envisioned a neutral United Nations, as opposed to the unipolar imperial order established with the collapse of the Soviet Union.) The early post-Soviet Yelstin crowd seemed willing to join the US-led imperial order, but there were enough savvy patriots who were not duped by US professed intentions and who raised the alarm and put the breaks on this process in time.

It will do whatever is necessary for its security and national/ federal sovereignty (Chechnya and Georgian wars, missile defence), and work with others to lessen dependency on the US order (Latin America, India, China, gas/ oil deals with Europe). To pursue this, it is developing new international structures especially in Eurasia (SCO, CSTO, the new regional customs union and proposed Eurasian Economic Community) to counterbalance US-controlled structures and prepare for the inevitable collapse of US empire.

But at the same time, the new Russian political-economic elite is still very much a part of the US-led economic order, based on the dollar and the Bretton Woods financial institutions, with billions of dollars stashed abroad, and children attending elite foreign schools both in Europe and now in the heart of capitalist Russia. But US hopes to wipe Russia as a major force off the political map were dashed, and even the most Atlantophile Russians balk at becoming the latest Latvia.

In contrast to old Soviet-era policies, this Russian strategy is manageable in the face of hostile powers. It accepts the international framework the US established after WWII and even new additions like the International Criminal Court and the Kyoto Protocols which the US rejects, and thus does not face the anticommunist reaction of Soviet years by Western liberals and conservatives. It no longer threatens the interests of the ruling elites of other countries, making Russia an attractive partner for many countries who seek to remain free from US imperial control. These polices enjoy a broad consensus inside Russia, ensuring UR-Putin’s continued domination of Russian politics for the time being.

For an objective outside observer, the Russia fashioned by Putin and UR plays a positive force in world politics and economics, though it is not above playing its own games; for

instance, in Belarus, possibly in Kyrgyzstan, using its transit route to Afghanistan as a bargaining chip with the US, regardless of the justness of the NATO occupation of Afghanistan. It let down longtime ally Gaddafi in Libya, has jilted Iran on nuclear power and weapons sales in the interests of placating the US, not done much for the Serbs, especially in Kosovo (yet). If NATO pushes hard, Russia will back down, unless its direct and vital interests are threatened. The best Russia can do for countries threatened by US empire is support their appeals to international law and wield its veto at the UN Security Council.

It should no longer be “empire vs Communism”, the zero-sum game which the US fashioned in the 20th century to counter the “Soviet threat”, though just what the game adds up to now is entirely the responsibility of the empire to determine, rather than the non-empire independents like Russia, all of whom are trying to survive in the face of pressures to accept a subservient role as “postmodern states”. Russia has forfeited claims to be the gravedigger of capitalism and by extension imperialism, and just wants a fair shake in a fairer world order. At the same time, leaders in the Kremlin are under no illusion about the reality of US empire; that, for all their smiles, its leaders see Russia (along with China) as the enemy; and that “Western policies always aim at the eventual dismemberment and demise of Russia,” writes vineyardsaker.blogspot.

“They just don’t believe that the Soviet way to oppose the US was the correct one,” the Russian-American analyst continues. Rather than being an active midwife of a new world order opposed to imperialism (Soviet policy), Russia is playing a waiting game — the age-old policy of retreat used against the Mongols, the French and the Nazis. “Americans play Monopoly, Russians chess,” quips Spengler at Asia Times. Afghanistan looms large as another Vietnam, and the US is busily adding Libya, Syria, Iran, who-knows-where next to its overfull plate of indigestible goodies. At times, it is wise to sit back and wait for the straw that breaks the ogre’s (excuse me, camel’s) back. A fool’s mate comes about when your opponent is bankrupt, and it certainly looks like this is how the current game is shaping up.

UR will no doubt continue its slide, and even Putin himself come 4 March may find himself in a runoff with some dark-horse challenger, as it is also clear that UR-Putin are unable to face down the corrupt administrative minions who keep “the party of crooks and thieves” in power. However, the cautious, patriotic policies of the 2000s as sketched above have been set for the near future. Perhaps the world financial crisis will turn Russians back to their tried and at-least-partially true socialist heritage to make sure the country survives. But its domestic and foreign policies will not be too much different from the ones UR has put its (rubber) stamp on, policies which are effectively the work of Putin as Mr UR.

- Eric Walberg writes for Al-Ahram Weekly http://weekly.ahram.org.eg/ You can reach him at http://ericwalberg.com/ His Postmodern Imperialism: Geopolitics and the Great Games is available at http://claritypress.com/Walberg.html. He contributed this article to PalestineChronicle.com.

Repentant militants speak with Adaptation Commissionhttp://rt.com/politics/press/kommersant/militants-adaptation-commission-police/en/

Published: 8 December, 2011, 07:20Edited: 8 December, 2011, 07:23

Yulia Rybina (Makhachkala)

All five suspects were part of a criminal group operating in South Dagestan. The first to appear before the Commission was 19-year-old Temirlan Amirov, who took part in the June 5 shooting of a police station in Mamedkalinsky Village. No policemen were injured. He turned to the Commission on November 11, and confessed his guilt to law enforcement officials on the same day. The young man told Commission members that he repents, and said that he went “into the woods” out of fear of prosecution: “I was approached by a person who worked in the administration… He said that a warrant for my arrest was issued by the FSB, and that I was being watched. I’ve heard a lot of stories about how Muslims get ‘lost’. Fearing this, I left.” He explained that he was carrying arms because “you simply won’t walk through the forest with just a stick,” and participated in the police station shooting under the orders of the “amir” (the criminal gang’s leader – Kommersant). Rasul Kadiev, Amirov’s lawyer, noted that his client made the decision to return to a peaceful life and cooperate with law enforcement on his own, “without the fear of public condemnation.”   

Then, Commission members heard the cases of 24-year-old Arsen Isayev and 23-year-old Telman Gadzhimustafaev. Both participated in a September 22 shooting of the District Department of Internal Affairs in Dagestanskie Ogni and the attempted assassination of a police chief in Derbent four days later (the police officer was unaffected, though his mother was injured in the attack). On November 28, Isayev, who was hiding in Moscow, turned to the Adaptation Commission and willingly reported to law enforcement. During the hearing, he publically repented and declared that he was “lured into the gang, as usual, with money.” “They said, ‘We’ll buy you a car, you drive us a couple of times, in a couple of weeks we’ll leave, and you get to keep the car.’ If I knew the things that were happening there, I would have never joined… but it was no longer possible to back out: it’s clear what would have happened to me. When we were shooting at the police station, I shot into the air. As for the fact that we were going to assassinate the police officer, that – I did not know. I was told to simply drive them; then, they started shooting out of the car.”  

The conversation with Arsen Isayev’s partner, Telman Gadzhimustafaev, was tense. He, together with the gang’s “amir” – 41-year-old Nariman Mirzamagomedov – turned himself in to the Adaptation Commission during a special operation on October 15 in Makhachkala. The Commission’s chairman and other members spent roughly a half hour trying to get a detailed explanation from Gadzhimustafaev of how he ended up “in the woods,” and assurances of repentance. However, he said that he no longer remembers how he became involved with the militants and who handed him a machine gun, saying that before getting the order to shell the police station he spent three months “simply sitting at home” with the weapon. A member of the Derbent Municipal Adaptation Commission, Sevil Novruzova, came to his defense. “These are still children. For them, the things that happened are still perhaps a military sports game of Zarnitsa;  they only now understood the seriousness of the situation,” she said, adding that Telman Gadzhimustafaev has indeed repented and told the investigators everything he could. Ms. Novruzova had presented a letter to the Commission, in which Telman addresses his father a few days before the special operation with a request to help him “get out of the woods”. But Commission members, unsatisfied with his evasive answers, suggested that it was written after the fact. The suspect “turned himself in” after hearing the words of the Minister of National Policy, Religious Affairs and External Relations, Bekmurza Bekmurzaev: “Why do you not want to share at least some truth with the people? If we are quiet, that does not mean that we don’t know anything.” Then, Telman Gadzhimustafaev admitted that he, himself, searched for a way “into the woods,” after reading some literature with the help of an “Islamic bot” in ICQ. “A while later, Nariman (Mirzamagomedov – Kommersant) called me and said: ‘Let’s go there.’ My things were already packed,” he said.    

Maksim Shevchenko, a member of Russia’s Public Chamber who participated in the hearings, complained that religious leaders are not actively engaged with young people who are attracted to religion. “Religious leaders are also part of our Commission, and we don’t have such problems,” responded head of the republican Commission, Rizvan Kurbanov. He also asked young people whether or not law enforcement officers had committed any wrongful acts against them, clearly referring to the statements made during the meeting. Specifically, he meant law enforcement agents' arbitrariness and abduction of individuals, which took place in Makhachkala on November 25 and brought together several thousand people. In response, militants confirmed that they had not been handled inappropriately.     

The appeals reviewed last were those of 33-year-old Zaur Makhmudov and 21-year-old Fakhrudin Takhmezov. Both turned themselves in to law enforcement on August 26 in Derbent, after a long negotiation process. Sevil Novruzova had presented to the Commission an appeal by their third accomplice, Gasan Kurabekov, who was then able to flee.

After a closed-door meeting (the press was asked to leave the premises), Rizvan Kurbanov announced that the Commission, “not unanimously, but by majority,” has decided to accept all five motions and ask the court to keep all five young men to serve their sentences on the territory of their home republic. The First Deputy Prime Minister

noted, however, that “if they start changing their testimonies and refuse to cooperate during the investigation,” the petition will be withdrawn.

National Economic Trends

13:11 08/12/2011ALL NEWS

Putin does not rule out possibility to lower taxes

http://www.itar-tass.com/en/c154/292517.html

MOSCOW, December 8 (Itar-Tass) — Prime Minister Vladimir Putin, speaking at a meeting of the Federal Coordinating Council of the All-Russia Popular Front here on Thursday, did not rule out possibility to lower taxes. "We, of course, must and will mull over how to reduce the tax base," he said.

In so doing, Putin added that his personal opinion is that social guarantees for the people of Russia can be ensured only on the basis of economic growth.

10:12RUSSIAN INTERNATIONAL RESERVES AT $514.1 BLN IN WEEK TO DECEMBER 2, UP FROM $510.2 BLN ON NOVEMBER 25http://www.interfax.com/news.asp

Unemployment shows uptick

http://www.rbcnews.com/free/20111208113105.shtml

      RBC, 08.12.2011, Moscow 11:31:05.The number of registered unemployed persons inched up 1% or by 12,293 persons between November 16 and 30, 2011, totaling 1.23m as of the end of November, the Healthcare and Social Development Ministry said in a statement.

      Russia's unemployment rate has been on the decline since March until mid-November, decreasing 0.8% per week on average, but the uptick registered in November is due to seasonal factors, the ministry explained.

      The unemployment rate rose in 65 out of 83 Russia's regions during the reporting period.

Russia May Privatize 20 Banks, Companies by 2017, Vedomosti Sayshttp://www.bloomberg.com/news/2011-12-08/russia-may-privatize-20-banks-companies-by-2017-vedomosti-says.html

By Yuliya Fedorinova - Dec 8, 2011 8:23 AM GMT+0400

Russia may sell 20 state-owned banks and companies by 2017, Vedomosti reported, citing the latest draft of a privatization program.

The program assumes that state-controlled oil, gas and energy companies, which already have shares trading on market, can’t be privatized at a price less that they got in the initial share sale, Vedomosti says.

OAO Rosneft, OAO Rushydro, OAO Zarubezhneft and OAO Inter RAO Ues are among the companies, the Moscow-based newspaper said.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

http://www.vedomosti.ru/finance/news/1446772/banki_vycherknut_iz_stoplista

Банки вычеркнут из приватизационного стоп-листа

Предложение вице-премьера Игоря Сечина не приватизировать акции госкомпаний дешевле цены IPO правительство готово поддержать лишь частично. Особое условие будет касаться только «Роснефти». Но оно может и не помешать приватизации компании

Максим ТовкайлоЕкатерина ДербиловаVedomosti.ru

08.12.2011

Читайте далее: http://www.vedomosti.ru/finance/news/1446772/banki_vycherknut_iz_stoplista#ixzz1fvFvvxF0

Business, Energy or Environmental regulations or discussions

Russian stocks open higher ahead of EU summithttp://en.rian.ru/business/20111208/169478010.html

11:58 08/12/2011

MOSCOW, December 8 (RIA Novosti)

Russian stocks opened higher on Thursday, paring some of their losses for the previous three days as investors expected a rate cut from the European Central Bank and concrete solutions at this week’s EU summit to defuse the eurozone debt crisis.

European leaders are meeting later on Thursday to push for deeper fiscal integration as proposed by the eurozone’s leading economies, such as Germany and France, which might require changes to the EU basic treaties to legislatively seal possible spending targets for eurozone countries in a bid to cut their debt levels and restore investor confidence.

The key proposal is to work out a mechanism for enforcing budgetary discipline with automatic penalties for eurozone countries that fail to comply with their spending targets.

Analysts also expect the European Central Bank to cut its key interest rate by 0.25 percentage points to 1 percent to stimulate lending and spur economic growth.

As of 11:43 a.m. Moscow time (07:43 GMT), the ruble-denominated MICEX index rose 0.97 percent to 1,462.48 points while the dollar-denominated RTS gained 1.05 percent to 1,483.16 points.

The ruble fell by 4 kopecks against the U.S. dollar to 31.2308 and by 4 kopecks against the euro to 41.8688. The value of the bi-currency basket comprising $0.55 and 0.45 euros edged up 1 kopeck to 36.0543.

RTS Futures Rise With Gazprom at 37% Discount: Russia Overnighthttp://www.bloomberg.com/news/2011-12-08/rts-futures-rise-with-gazprom-at-37-discount-russia-overnight.html

By Leon Lazaroff and Halia Pavliva - Dec 8, 2011 4:20 AM GMT+0400

Russian equity futures gained and OAO Gazprom’s (OGZPY) U.S.-traded shares rallied as valuations approaching their lowest level in three years outweighed concerns that protests against Dec. 4 election results may spur instability.

Futures on the dollar-denominated RTS index expiring in December rose 0.2 percent to 146,745 in U.S. trading and the Bloomberg Russia-US 14 Index of Russian companies listed in New York rebounded from its biggest decline in a month. State-run Gazprom’s American depositary receipts climbed after Energy Minister Sergei Shmatko said the Moscow-based company may receive a tax break on an Arctic region project.

Russian shares rallied in New York after the benchmark Micex index fell to a 10-day low in Moscow amid demonstrations against Prime Minister Vladimir Putin’s government. Shares in the Bloomberg Russia-US 14 Index trade at 3.2 times analysts’ earnings estimates for member companies, close to their lowest valuation since December 2008, while Gazprom ADRs trade at 3.2 times forward earnings, a 37 percent discount to the Micex. (INDEXCF)

“Gazprom is cheap as hell,” Ilya Kravets, a research analyst at brokerage ED Capital in New York, said in a phone interview yesterday. “There’s a belief now that the government is serious about controlling Gazprom’s cash flow so that they get more, and that investors get more as well.”

Gazprom’s ADRs, which plunged 8 percent on Dec. 6, recovered 1.9 percent to $11.21 yesterday to close the gap with shares in Moscow, which fell 0.9 percent to 174.57 rubles, or the equivalent of $5.59. One Gazprom ADR represents two ordinary shares.

Volatility Drops

The RTS Volatility Index, which measures expected swings in the index futures, dropped for the first time in four days, falling 1.6 percent to 51.04 points. The RTS Index slipped 1.2 percent in Moscow to 1,467.69 and the 30-stock Micex lost 0.7 percent to 1,448.39, the lowest level since Nov. 25.

The Market Vectors Russia ETF (RSX), a U.S.-traded fund that holds Russian shares, gained 0.4 percent to $29.07 while the Bank of New York Mellon Russia ADR Index lost 0.7 percent to 769.06.

Russian opposition groups are planning to stage a demonstration next to the Kremlin on Dec. 10 after holding an unsanctioned rally Dec. 6 in downtown Moscow to protest the

results of Dec. 4 parliamentary elections. Police said they detained about 300 people on Dec. 6, with a total of about 1,000 activists held after three days of rallies.

Protesters are disputing the results of the parliamentary election, which saw support for Putin’s United Russia party drop to 49.5 percent, from 64.3 percent in a 2007 vote. The party maintain a majority of seats in the Duma.

Gazprom Dividends

Gazprom, the world’s largest natural gas producer that accounts for 16 percent of the Micex, is budgeting about 200 billion rubles ($6.4 billion) a year for dividends starting in 2012 through 2014, the Moscow-based Interfax newswire reported on Dec. 1, citing an unidentified person familiar with the plan. That would make the 2012 cash dividend 6.40 rubles a share, the highest payment to shareholders since at least 2005.

Oil fell for the first time in four days in New York after the U.S. Energy Department reported that crude and fuel inventories climbed as imports surged. Crude for January delivery declined 0.8 percent to settle at $100.49 a barrel on the New York Mercantile Exchange.

Brent oil for January settlement fell 1.2 percent to $109.53 on the London-based ICE Futures Europe exchange, while Urals crude, Russia’s chief export blend, lost 1.2 percent to $109.47. Oil and natural gas contribute about 17 percent of Russia’s gross domestic product.

Rostelecom Earnings

OAO Rostelecom (ROSYY), Russia’s dominant fixed-line phone operator, declined 4.7 percent in New York to $29.30, a two-week low and the biggest decliner on the Bloomberg Russia-US 14 index.

The company will release “mediocre third quarter and January to September numbers with very limited revenue growth,” today in Moscow, Iouli Matevossov a senior analyst at Alfa Bank in Moscow, wrote in a client note e-mailed yesterday. Rostelecom will report third-quarter adjusted net income of 9.75 billion rubles, according to the average of nine analysts’ estimates compiled by Bloomberg. The company reported profit of 8.64 billion rubles in the second quarter.

Rostelecom shares in Moscow dropped 0.6 percent to 151.55 rubles yesterday, the equivalent of $4.85. One ADR equals six ordinary shares.

OAO Mechel (MTL), Russia’s largest producer of steel-making coal, fell 2.2 percent to $10.22 in U.S. trading yesterday. The Moscow-based company’s stock on the Micex fell 5 percent to 321.80 rubles, or equivalent of $10.29. Coal on the New York Mercantile Exchange was little changed at $69.05 a ton yesterday. Prices have fallen 14 percent this year.

Mine Suspensions

The company suspended work at two mine sites after complaints to the Siberian branch of Russia’s industrial safety watchdog, according to a Dec. 6 statement.

Yandex NV, operator of Russia’s most popular Internet search engine, climbed the most in more than a week after a British newspaper reported news announced by the company last month that they will collaborate with Facebook Inc. on their music service. Yandex gained 4.4 percent to $21.80 in New York, after earlier jumping as much as 6.6 percent to $22.26, the biggest intraday advance since Nov. 28.

In addition to Rostelecom, VTB Group, Russia’s second- biggest lender, OAO Severstal, the biggest steelmaker by market capitalization and OAO Bashneft, an oil producer, are expected to release third-quarter earnings in Moscow today.

Metals Fall

The European Central Bank may announce a range of measures today to stimulate bank lending, three euro-area officials with knowledge of policy makers’ deliberations told Bloomberg News. The ECB is focusing on getting banks lending again rather than increasing its government bond purchases to fight Europe’s debt crisis.

Standard & Poor’s GSCI index of 24 raw materials dropped 0.9 percent to 653.57 as copper and nickel fell for a second day. Copper futures for March delivery declined 0.5 percent to close at $3.556 a pound on the Comex in New York while nickel lost $375 to $18,050 a ton on the London Metal Exchange.

The Micex has lost 14 percent in 2011 and trades at 5 times analysts’ earnings estimates for member companies. That compares with a 15 percent slide for Brazil’s Bovespa (IBOV) index, which trades at 11 times estimated earnings, according to data compiled by Bloomberg. The Shanghai Composite Index (SHCOMP) trades at 11 times estimated earnings, and the BSE India Sensitive Index (SENSEX) has a ratio of 15.

To contact the reporters on this story: Leon Lazaroff in New York at llazaroff@bloomberg.net, or Halia Pavliva in New York at hpavliva@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Russian markets -- Factors to Watch on Dec 8http://uk.reuters.com/article/2011/12/08/russia-factors-idUKL5E7N801Z20111208

Thu Dec 8, 2011 5:46am GMT

Here are events and news stories that could move Russian markets on Thursday. You can reach us on: +7 495 775 1242 STOCKS CALL (Contributions to moscow.newsroom@reuters.com): ALOR: "Investors are likely to follow the rise on the U.S. market at theopening. But expectations of the ECB meeting outcome and proximity of the U.S.futures to resistance levels may lead to profit fixing on longs in the firsthalf of the day." NETTRADER: "External background is neutral... The focus today is on the ECBand the Bank of England decisions on rates as well as the U.S. labour marketdata." EVENTS (All times GMT): MOSCOW - Russian Interior Ministry investigators, who work on cases of theHermitage Fund head William Browder and lawyer Sergei Magnitsky, to give a pressconference. MOSCOW - Russian state-controlled telecoms company Rostelecom reports third-quarter financial results. MOSCOW - Severstal , Russia's second-largest steelmaker,to post third quarter earnings. MOSCOW - Russia's second biggest lender VTB to reportthird-quarter results, which are expected to be hit by recent market turmoil. MOSCOW - Mid-sized oil company Bashneft, owned by Sistema holding, to report third-quarter results. MOSCOW - The Russian unit of Deutsche Bank to give a briefing on2011 results with local senior management attending. IN THE PAPERS : Russia may sell some state-controlled companies' shares as a part of a widerprivatisation programme below their price set at previous initial publicoffering, despite objections from Deputy Prime Minister Igor Sechin, businessdaily Vedomosti reports. Head of ExxonMobil Russia's operations Glenn Waller told Kommersantdaily the company offered Russia's top crude producer Rosneft aparticipation in its projects in third countries. He added that agreement fromother participants in these projects are needed to allow Rosneft in. TOP STORIES IN RUSSIA AND THE CIS : TOP NEWS: NATO still hopes for Russia missile system deal Social media makes anti-Putin protests "snowball" [ID:nL5E7N62N ]

COMPANIES/MARKETS:Russian stocks off as further demos planned Russian protests block VEB's Eurobond deal-sources BP in talks to settle with Russian partners - FT Russian court to hear appeal on BP case in January Rosneft to sign increased $2 bln loan-sources ECONOMY/POLITICS:UN says Russia air firms' staff guilty of sex abuse Russian police block new anti-Putin rally Medvedev's Twitter obscenity provokes shock Putin takes formal step to regain Kremlin top job ENERGY: Ukraine, Russia agree delayed gas payments TNK-BP's Venezuela JV eyes 9 pct oil output growth COMMODITIES: Russia seen exporting at least 25 mln tonnes of grain Urals bid up slightly, China buys Libya Potash miner Uralkali sees no Q1 price hikes Bulgaria to abandon trans-Balkan oil pipeline MARKETS CLOSE/LATEST: RTS 1,471.7 +0.27 pct MSCI Russia 780.8 -0.72 pct MSCI Emerging Markets 954.7 -0.48 pct Russia 30-yr Eurobond yield: 4.371/4.294 pct EMBI+ Russia 296 basis points over Rouble/dollar 31.2999 Rouble/euro 41.8500 NYMEX crude $100.52 +$0.02 ICE Brent crude $109.64 +$0.11 For Russian bank balances see For Russian company news, double click on Treasury news Corporate debt Russian stocks Russia country guide All Russian news Scrolling stocks news Emerging markets top news Top deals European companies

(Compiled by Vladimir Soldatkin)

UPDATE 1-Russian protests block VEB's Eurobond deal-sourceshttp://in.reuters.com/article/2011/12/07/veb-eurobond-idINL5E7N722320111207

Wed, Dec 7 2011

By Oksana Kobzeva

MOSCOW, Dec 7 (Reuters) - Russian state development bank VEB has postponed a Eurobond offering due to poor market conditions fueled by fears that Russia may face political instability after parliamentary elections, two financial market sources said on Wednesday.

The deal's failure is the first sign that domestic politics may make it harder for Russian companies to raise foreign cash in markets already under pressure as European leaders seek to finalise a plan to calm the euro zone's sovereign debt crisis.

VEB had planned to tap the international debt market for a five-year dollar Eurobond, offering yield guidance at around 5.625 percent, IFR markets, a Thomson Reuters news and market analysis service had reported. �

The state lender, the government's main vehicle for major investment projects and a special cash channel to support economy during vulnerable periods, had planned to close the books on the deal on Tuesday.

"VEB could do a deal, the book was already full but investors started to call and take out the bids, hearing about massive protests," one of the sources said.

Russian stocks and the rouble have lost ground since elections on Sunday showed a drop in the ruling United Russia party's majority, prompting Prime Minister Vladimir Putin to promise "significant renewal" of the government.

Up to 5,000 protesters rallied in Moscow on Monday evening to protest against alleged electoral fraud, and 300 were arrested. Hundreds also took to the streets on Tuesday to demand an end to Putin's 12-year rule.

"Given the adverse change in Russian markets since the announcement of the transaction, VEB has elected to proceed with its dollar bond issue once markets have stabilised," one of the sources quoted a statement circulated by the deal's arrangers as saying.

Gas export monopoly Gazprom sold $1.6 billion of two-part loan participation notes last month, prompting other local borrowers, including VEB, to seek to tap eurobond markets that had been closed to them since the summer.

It is unclear whether VEB's decision will affect the plans of two other Russian borrowers -- state-owned Russian Railways and Anglo-Russian oil firm TNK-BP -- to meet investors for non-deal roadshows next week.

United Aviation, Finmeccanica May Start Venture, Kommersant Sayshttp://www.bloomberg.com/news/2011-12-08/united-aviation-finmeccanica-may-start-venture-kommersant-says.html

By Yuliya Fedorinova - Dec 8, 2011 9:47 AM GMT+0400

Russia’s United Aviation Corp. and Finmeccanica SpA (FNC) may set up a new joint venture to produce a long version of the Sukhoy Superjet plane with 130 seats that would compete with Boeing Co. (BA), Kommersant reported.

Finmeccanica may take as much as a 49 percent stake in the new alliance, the newspaper said, citing people with the knowledge of situation.

The Sukhoy Superjet is now produced by the two companies under a joint venture in which Alenia, Finmeccanica’s parent, holds a 25 percent stake.

The venture was barred from producing a longer version of the plane after Boeing, which served as a consultant on the project, banned the two partners from building one, Kommersant said.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

09:27GM plans to up sales 65%-70% in Russia in 2011

http://www.interfax.com/news.asp

Exec: PSA Peugeot Citroen may launch another car plant in Russiahttp://www.prime-tass.com/news/0/%7B45128D27-8794-4192-8827-8A82D9DD2D0E%7D.uif

MOSCOW, Dec 7 (PRIME) -- Europe’s second largest car maker PSA Peugeot Citroen–Mitsubishi Motors may launch an additional car production facility in Russia and is looking for a partner, Didier Alton, general director of PSMA Rus, a local unit of the alliance, said at a forum Wednesday.

“We are looking for possible options to cooperate with any company manufacturing cars in Russia, including Russian producers,” Alton said, adding that the alliance is not involved in talks with Russian automaker GAZ Group. “There are no agreements yet.”

Alton said that the alliance is also looking for a site to increase production capacities in Russia. “A Russian company would provide production capacities, while we manufacture new models,” Alton added.

The alliance plans to make a final decision on cooperating with a Russian company in January–March 2012, he said.

The PSA Peugeot Citroen–Mitsubishi Motors Alliance opened a 470 million euro car assembly plant in central Russian Kaluga Region in April 2010. The capacity of the plant is 125,000 vehicles per year, which can be extended to 300,000.

End

07.12.2011 18:16

Russian Billionaire Mamut Seeks Euroset Buyer, Kommersant Sayshttp://www.bloomberg.com/news/2011-12-08/russian-billionaire-mamut-seeks-euroset-buyer-kommersant-says.html

By Yuliya Fedorinova - Dec 8, 2011 8:48 AM GMT+0400

Billionaire Alexander Mamut is seeking to sell his 50.1 percent stake in Euroset, Russia’s largest mobile-phone retailer, Kommersant reported today, citing people it didn’t identify.

Mamut hired Troika Dialog to help find a buyer and is seeking $1.6 billion to $1.8 billion for the stake, the newspaper said. OAO VimpelCom, Russia’s second-biggest cellular company, owns the rest of Euroset.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

December 08, 2011 09:25

Euroset revenues grow 12% to 19 bln rubles in Q3http://www.interfax.com/newsinf.asp?id=293457

MOSCOW. Dec 8 (Interfax) - Euroset (RTS: TDEV), Russia's largest mobile phone retailer, posted revenue up 12% to 19 billion rubles in the third quarter of 2011 from 16.9 billion rubles in the same period last year.

Revenue grew 28% compared to the second quarter of 2011, according to company materials obtained by Interfax.

The growth was driven primarily by the opening of new stores, an increase in the average price of handsets sold and higher revenue from financial and payment services.

Sales of telephones generated 58% of revenue, and commissions from mobile providers accounted for 16%.

The retailer had 4,388 outlets in Russia at the end of the third quarter.

Euroset's debt shrank to 6.6 billion rubles on September 30 from 6.7 billion rubles at the beginning of the year. The net debt/EBITDA ratio, however, rose to 1.1 from 1. Debt denominated in rubles made up 64% of the total, and long-term loans accounted for 30% of the debt; the weighted average interest rate on the loan portfolio was 7.1%.

Euroset has about a 32% share of the Russian cellular retail market.

Vp of

(Our editorial staff can be reached at eng.editors@interfax.ru)

Rostelecom's Q3 net profit rises 1.3 pct to $330 mlnhttp://en.rian.ru/business/20111208/169478807.html

12:33 08/12/2011

MOSCOW, December 8 (RIA Novosti)

Russian long-distance operator Rostelecom saw its third-quarter net profit increase 1.3 percent year-on-year to 10.285 billion rubles ($330.2 million) to IFRS, the company said in a statement on Thursday.

The company's revenue grew 8 percent in July-September 2011 to 73.86 billion rubles.

"We continue to deliver growth despite the turbulent situation in the financial markets and the global economy. We continue to expand our broadband and Pay-TV subscriber base," Rostelecom President and CEO Alexander Provotorov was quoted in the company's statement as saying.

The local telephony subscriber base went up two percent to 21.616 billion rubles, while the broadband Internet subscriber base amounted to 11.429 billion rubles and the Pay TV subscriber base grew 580 percent, year-on-year, to 1.905 billion rubles.

The company's OIBDA (Operating Income before Depreciation and Amortization) rose 9 percent to 29.477 billion rubles, while the OIBDA margin went up to 39.9 percent from 39.5 percent.

The company's capital expenditure increased 10 percent to 15.361 billion rubles or 20.8 percent of revenue. The company's net debt totaled 138.068 billion rubles as of September 30, 2011, with the net debt to annualized OIBDA ratio stood at 1.3x times.

Rostelecom's net profit in the first nine months of the year stood at 29.397 billion rubles, a two-percent growth year-on-year, while its revenue in January-September 2011 rose 7 percent to 217.458 billion rubles.

Rostelecom completed a restructuring in spring to merge with seven regional telecoms companies, following which the Russian government has retained a 53.23 percent stake in the telecoms operator.

Wife of ex-Moscow mayor sells major real estate developer

http://www.rbcnews.com/free/20111208104559.shtml

      RBC, 08.12.2011, Moscow 10:45:59.Sberbank's subsidiary Sberbank Investments and businessman Mikhail Shishkhanov have closed a deal to purchase a 100% stake in

a major real estate development company Inteco from Yelena Baturina, the wife of former Moscow Mayor Yury Luzhkov, Russia's largest bank said in a statement.

      Shishkhanov acquired a 95% interest and Sberbank Investments bought the other 5%. The transaction has been cleared by the Federal Antimonopoly Service.

      Although the financial terms of the deal were not disclosed, the market value of the acquired assets is estimated at $1.2bn, experts say.

No Sberbank Haggling On Volksbanken Price 08 December 2011Combined Reports

Sberbank is not discussing lowering the purchase price for Volksbanken International, fixed at 585 million euros ($788.6 million), deputy chief Sergei Gorkov told reporters Wednesday.

"We are not talking about the price, we've already fixed it at 585 million euros," Gorkov said, adding that Sberbank will pay that amount providing VBI capital does not change.

Current VBI shareholders were able to receive dividends for January-September this year, Gorkov said. However, due to the situation in Hungary, where a decision was made for repaying mortgage loans on easy terms, the bank incurred losses in that country and no dividends were paid — money was put toward offsetting losses instead.

In September, Sberbank inked an agreement to buy VBI for an amount equal to the European bank's equity. VBI is represented in the Czech Republic, Slovakia, Hungary, Croatia, Serbia, Bosnia and Herzegovina, Slovenia, Romania and Ukraine. The Romanian subdivision was not part of the deal with Sberbank.

Sberbank has opted not to acquire Denizbank, a Turkish asset held by the French-Belgian group Dexia, Gorkov said.

Meanwhile, Sberbank plans to increase lending by 24 percent in 2012, president and chief executive German Gref said Tuesday.

"We are forecasting market growth of about 20 percent next year. But we are planning growth of about 24 percent for Sberbank," Gref told reporters, remarking that this scenario is written into the bank's business plan for next year and corresponds to a moderately optimistic forecast.

Gref said Sberbank has also mapped out projections for a negative turn of events on the market, which assumes oil prices drop to $70 per barrel and a difficult situation emerges in Europe.

Gref also said Sberbank would emphasize lending to small and medium businesses, gradually expanding its share on this market. Sberbank's portfolio of loans extended to small and medium businesses is expected to reach 1 trillion rubles ($32 billion) by 2015, he said.

The government's planned sale of a 7.6 percent stake in Sberbank will not happen this year, he added.

"We do not have any kind of deadline. There will be no [share] placement before the new year. But if markets stabilize and the price goes up, we are ready," Gref said when asked whether the bank would be ready to sell the stake in January.

The Federal Anti-Monopoly Service has approved Sberbank's purchase of Troika Dialog without attaching conditions.

Sberbank inked an agreement of intent to acquire 100 percent of the stock in Troika Dialog for $1 billion on March 14. The parties signed a legally binding agreement last May, and then Sberbank applied to the agency.

Sberbank had previously secured permission from U.S., British, Ukrainian and Cypriot regulators for the Troika buy.

Sberbank plans to close the deal before this year is out, and plans to pay the first acquisition tranche before then. The unification of Sberbank and Troika Dialog is slated for completion next February.

(Interfax, Reuters)

Read more: http://www.themoscowtimes.com/business/article/no-sberbank-haggling-on-volksbanken-price/449451.html#ixzz1fvKIGZ3j The Moscow Times

VTB Quarterly Net Jumps 39% on Bank of Moscow, Investment Armhttp://www.bloomberg.com/news/2011-12-08/vtb-quarterly-net-jumps-39-on-bank-of-moscow-investment-arm.html

By Jason Corcoran - Dec 8, 2011 11:23 AM GMT+0400

VTB Group (VTBR), Russia’s second-largest bank, said profit rose 39 percent in the third quarter as the volume of delinquent loans declined, investment banking revenue rose and it took over Bank of Moscow.

Net income reached 20.4 billion rubles ($637 Million) from 14.7 billion rubles in the same period last year, the state-run lender said in a statement today. VTB’s share of bad

loans declined to 5.9 percent of overall lending from 7.7 percent at the start of the quarter.

“We are well prepared for any stress scenario, and we are well-positioned for strong growth when the market environment stabilizes,” Chief Executive Officer Andrei Kostin said in the statement.

The acquisition of Bank of Moscow added 587 billion rubles of corporate loans and 66.4 billion rubles of consumer loans to VTB’s business in the third quarter, the company said. Russian regulators in July agreed to a 395 billion-ruble bailout for Bank of Moscow after VTB bought the city government’s 46.5 percent stake in the lender and uncovered bad debts.

Investment and corporate banking pretax profit jumped 77 percent to 69.9 billion rubles in the first nine months of the year from 39.5 billion in the same period last year, VTB said.

VTB gained 1.9 percent to 6.8 kopeks at 11:20 a.m. in Moscow, valuing the company at about $23 billion.

To contact the reporter on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

Russian bank pulls bond offer 'due to protests'http://www.google.com/hostednews/afp/article/ALeqM5hMAjXvq91L46MzE_9zeOLknuPyzQ?docId=CNG.a2ee30a019a9ce1ac362749b615d888b.5f1

(AFP) – 1 hour ago 

MOSCOW — Russia's state development bank VEB shelved a bond offering at the last minute after investors took fright over the volatility caused by the Moscow protests, according to a report.

The Kommersant daily said interest had initially been high in the $500-million (370-million-euro), five-year eurobond offer by Vnesheconombank (VEB). But investors were then spooked by a steep fall on the Moscow stock markets due to the protests.

It said this was the first time since the turbulent 1990s -- when Russia defaulted on its debt and the economy almost went into meltdown -- that a political event had forced the cancellation of a Russian eurobond offer.

The book building, indicating investor interest before the actual bids come, had been very strong, a banking source told the paper.

"The book building was basically done but then investors decided not to take part due to the disturbances in Moscow," the source said.

"Two hours before the start of taking bids for the offer, the book was already filled to a volume of $1 billion. But then after hearing about the turbulence on the markets, investors started to withdraw their bids."

The Russian stock markets, which usually closely track US trends, fell sharply on Tuesday after the first demonstrations. The MICEX index dropped almost 4 percent and the RTS almost 5 percent. They extended the losses on Wednesday.

Another source told the paper that foreign investors in particular had pulled out after hearing that US Secretary of State Hillary Clinton had vehemently criticised the conduct of the elections.

The opposition, which insists the vote was rigged, have staged daily protests in Moscow since Monday and have vowed an even bigger rally at the weekend.

VEB May Return to Eurobond Sale Next Year, Kommersant Sayshttp://www.bloomberg.com/news/2011-12-08/veb-may-return-to-eurobond-sale-next-year-kommersant-says.html

By Yuliya Fedorinova - Dec 8, 2011 8:55 AM GMT+0400

Vnesheconombank, the Russian state development bank known as VEB, may resume Eurobond sales next year, Kommersant reported today, citing people it didn’t identify.

Earlier this week it pulled a bond sale of $3 billion because of adverse market conditions and increased political instability, newspaper said.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Deutsche Bank May Hire Troika Founder Derby, Vedomosti Reportshttp://www.bloomberg.com/news/2011-12-08/deutsche-bank-may-hire-troika-founder-derby-vedomosti-reports.html

By Yuliya Fedorinova - Dec 8, 2011 8:41 AM GMT+0400

Deutsche Bank AG (DBK) may hire Peter Derby, founder of Troika Dialog, Russia’s oldest investment bank, to replace Igor Lozhevskiy as executive director for the region next year, Vedomosti reported, citing unidentified people familiar with the matter.

Alexander Pertsovsky of Renaissance Capital and former Troika executive Jacques Der Megreditchian are among the other candidates being considered for the position, the Moscow-based newspaper said today. Pertsovsky said he wasn't interested in leaving RenCap, according to Vedomosti.

Deutsche Bank declined to comment, according to a person in the lender's press department in Moscow who wouldn't give her name, citing company policy.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

Russians Suffer From Baltic Bank Closures 08 December 2011Vedomosti

Russian customers of Vladimir Antonov’s now defunct Lithuanian bank Snoras, and its Latvian subsidiary, Latvijas Krajbanka, are feeling the consequences of the case, in which regulators in the Baltic countries found gaping holes in the banks’ balance sheets.

An employee of one Russian company controlled by Oleg Deripaska’s Basic Element told Vedomosti that salary payments have been delayed as result of the bankruptcy.

“We confirm that funds of one structure of Basic Element are in accounts at Bank Snoras, but the amounts are significantly less than have been reported in the press,” a Basic Element spokesman said in a statement.

Lithuanian newspaper Lietuvos Rytas reported that 58 million euros ($77 million) belonging to Deripaska’s companies, including Norilsk Nickel, are stuck in the bank. A spokesman for Norilsk denied the claim.

Other Russian companies suffered from the Snoras bankruptcy.

There are accounts of a number of associated companies of Suleiman Kerimov’s Nafta-Moskva in Latvijas Krajbanka, a Nafta-Moskva spokesman said. The amount of money that is stuck in the Baltics is significant, but not critical, a source at one of the companies said.

The Nafta-Moskva spokesman stressed that the group’s companies never used the services of Bank Snoras, nor did it borrow funds from Latvijas Krajbanka. “Our lawyers are considering various steps to get back the funds,” he added.

Among the clients of Snoras, a source at one of the Basic Element companies said, are structures belonging to Sergei Polonsky, Gazprom and Major Auto.

A spokesman for Polonsky’s Potok Beskonechnosti, the real estate development company until recently called Nazvanie.net, and before that known as Mirax, confirmed that the company has credit from Snoras due in 2017, but he declined to specify the amount.

Gazprom has three assets in Lithuania, but is the majority owner of only one of them — the Kaunas Electric plant.

Vedomosti inquiries to Snoras, Latvijas Krajbanka and the financial regulator of Latvia went unanswered. The central bank of Lithuania said it has no data about Russian customers of Snoras.

At the end of 2010, non-resident deposits and accounts in Snoras and Latvijas Krajbanka, the majority of which were from Russia, represented about 20 percent of the total value — $507 million and $216 million, respectively, said Fitch analyst Vladimir Markelov.

The majority of those deposits probably don’t qualify for deposit insurance payments, he said.

The accounts of Russian customers were some of the largest, and they could wind up losing their money.

Snoras was nationalized on Nov. 16, and the next day operations at Latvijas Krajbanka were stopped. The central banks of Lithuania and Latvia then ordered their bankruptcy.

The regulators found $1.42 billion missing from Snoras and 210 million euros missing form Latvijas Krajbanka, and accused the owners — Russian businessman Vladimir Antonov and Lithuanian Raimondas Baranauskas — of falsifying reporting and expropriating assets. They were arrested in London and are now free on bail.

Read more: http://www.themoscowtimes.com/news/article/russians-suffer-from-baltic-

bank-closures/449450.html#ixzz1fvK84aLq The Moscow Times

BRICKS & MORTAR: Russian warehouse party

http://www.bne.eu/storyf3102/BRICKS__MORTAR_Russian_warehouse_party

Ben Aris in London December 7, 2011

Russia's property market has been recovering slowly from the 2008 crisis, but as Russians return to the shops and retail turnover levels pass their pre-crisis highs, a boom has taken off in the country's warehouse business.

“We just had our best year ever,” says Tim Millard, general director of Cushman & Wakefield’s (C&W) Moscow office. “The demand for new warehouses is at an all-time high.”

The real estate business in the West is in the doldrums as many mortgage holders remain under water. Likewise, the economic slowdown in the developed world has depressed the office market. The upshot is that attention has shifted to emerging markets. In its global investment atlas published in December, C&W praised Central and Eastern Europe as the fastest growing real estate market in the world, up 60% in terms of investment year on year. “The traditional markets are all victims of the crisis, but the emerging markets are all growing," points out Millard. "Russia is particularly attractive, as it's large and right on the doorstep of the rest of Europe. It is the logical first step and the logistics of going into Russia are simple."

Millard says that means Russia is at the top of the list for many western companies looking to expand into the emerging markets. The economic growth outlook for Russia may now be significantly lower than in pre-crisis years, but it's still three-times above the average EU rate. Building on the already strong trade ties that have developed in the last two decades, German and Italian firms are already well established, but the UK is lagging behind due to poor diplomatic relations. “In the UK the perception of Russia is different from the reality," says Millard. "Doing business in Russia is not as difficult as most assume, but the gap is closing slowly.

Ironically, the current crisis in Europe should be a boon for Russia, Millard argues. With no growth on offer in the development markets for years to come, companies in the West have been forced to look to new markets if they want to expand. “The Kremlin’s reforms are making a difference if you are selling something concrete," he claims. "The logistics of import are easier, customs and clearing has improved, and accession to the [World Trade Organization], which is now imminent, will only improve things further."

It's the effect of all these factors that has shown up in the warehousing sector, which remains badly undersupplied, says Millard. In the first nine months of the year, C&W has already seen $6.5bn worth of investment into real estate in Moscow, against the $5.8bn that was invested in all of 2008, the last boom year – and another $1bn-1.5bn of activity is set for the final quarter.

Warehouses are an attractive investment, as undersupply keeps the rents high. Prior to the crisis, vacancy rates in the industrial segment were 11%, says Millard, but today they have fallen to under 1% to push Russian warehouse rents to the second highest in the world, beaten only by the UK's Heathrow airport. At the same time, the volume of new warehousing going up remains limited by a lack of financing. “Project financing is still hard to get, but it is starting to come back," Millard says. "However, it's only the Russian banks that have started to lend again, and even then it's only senior debt for performing assets."

Activity in the Oil and Gas sector (including regulatory)

07:46 08/12/2011Top News

WPC handover ceremony from Doha to Moscow to be held Thursday

http://www.itar-tass.com/en/c32/292226.html

DOHA, December 8 (Itar-Tass) — The ceremony of “passing the baton” of the World Petroleum Congress (WPC) to Russia will be held in Doha on Thursday. Russian Energy Minister Sergei Shmatko will receive the banner of one of the world’s major and authoritative energy forums that will be hosted by Moscow in three years.

According to the Russian minister, although it is too early to look ahead, he would like Russia at the next Congress to make a convincing presentation of its concrete progress in the development of the Eastern - Asia-Pacific vector in the energy policy, as well as a program of deepening oil processing at domestic plants. “I am sure that one of the important topics on the agenda will be the development of the Arctic shelf,” he told Itar-Tass. The minister expressed hope that the European partners will come to the Moscow meeting with a changed rhetoric and will discuss specific business projects, moving away from their excessive politicisation.

The current 20th Congress has been held under the motto “Energy Solutions for All: Promoting Cooperation, Innovation and Investment.” During five days of the anniversary forum, which for the first time in its nearly 80-year history, is organised in the rich in oil Middle East, more than 5,000 delegates from around the world shared their experiences

in the field of oil and gas production, refining and transportation, ensuring security of the industry, its economic and social components for each country. World energy producers have paid considerable attention to renewable and alternative energy sources.

In addition, about 500 companies, specialised institutions and agencies presented their products and solutions at an exhibition organised on the sidelines of the forum. Among the exhibitors were also Russian companies, including Rosneft, Gazprom, LUKOIL, Tatneft, TNK-BP, Bashneft and Surgutneftegas. Experts and scientists from Russia made their presentations to the forum participants.

Rosneft is the exclusive sponsor of the closing ceremony of Qatar’s Congress. In addition, this national oil and natural gas company, the only Russian, has also become a “platinum” sponsor of the world gathering of oil industry workers, along with global energy giants such as Shell, Exxon Mobil, Total and others.

Held every three years, the World Petroleum Congress and Exhibition is the largest and most reputable oil and gas industry gathering in the world. The 20th World Petroleum Congress is hosted by Qatar Petroleum and takes place at the Qatar National Convention Centre (QNCC) in Doha, Qatar, from 4-8 December 2011. Since its establishment in 1933, this is the first time that the World Petroleum Congress is held in the Middle East, according to the event’s press release.

The triennial World Petroleum Congress is held over five days with more than 4,000 delegates, 600 media and 550 presenters participating in a programme that covers all aspects of the industry, from technological advances in upstream and downstream operations, to the role of natural gas, renewable and alternative energy, the management of the industry and its social, economic and environmental impact.

Known as the “Olympian Event of the Oil and Gas Industry”, it is attended by a global oil and gas audience and outside stakeholders such as governments, other industry sectors, NGOs and international institutions who also join in the dialogue.

The World Petroleum Exhibition, held alongside the congress, and in the same venue, features exhibits from the national committees of the World Petroleum Council, which include the most prestigious national oil and gas companies and agencies of the world. It also showcases the most important international oil and gas companies alongside key suppliers, service companies and manufacturers. This is the most significant global exhibition dedicated to the oil and gas industries.

The World Petroleum Council is an oil and gas industry forum and international organisation representing the petroleum sector worldwide. WPC has been called “the world’s premier oil & gas forum since 1933.” It is widely recognised to “include the most prestigious national oil and gas companies and agencies of the world.” The premier conference that is organised by the World Petroleum Council is called the World Petroleum Congress. Starting in 1933, the congress was held every four years until 1991, with a 14-year hiatus in between because of World War II. After 1991, it was held every

three years until the year 2000. There was a move to have it hosted every two years after the 2000 edition, with Rio de Janeiro hosting one in 2002, but the cycle returned to every three years after that. In order to host a congress, there is a bidding process by interested cities for one in a particular year.

07.12.2011

Transneft expresses dismay on Bulgaria's decision to pull out from Burgas-Alexandroupolishttp://www.oilandgaseurasia.com/news/p/0/news/13675

Russia's oil company Transneft has expressed dismay at the decision of the Bulgarian government to kill the project for the Burgas-Alexandroupolis oil pipeline, according to its representatives.

"Transneft has not been notified by the Bulgarian authorities that they are leaving the Burgas-Alexandroupolis oil pipeline project," Igor Demin, a representative of Transenft, told ITAR-TASS Wednesday, hours after Bulgaria's Finance Minister Simeon Djankov announced that the Borisov Cabinet wanted to do away with the controversial pipeline project.

Demin has reminded that in November Bulgaria's Environment Ministry technically approved the Environmental Impact Assessment submitted by Trans-Balkan Pipeline, the Bulgarian-Greek-Russian company set up to construct and run the oil pipe from the Black Sea to the Mediterranean.

The approval was granted after the Environment Ministry in Sofia returned the EIA paperwork for corrections by TBP several times.

Bulgaria's Finance Minister Djankov announced earlier that the Borisov Cabinet will send formal letters to Russia and Greece offering them to terminate by mutual consent the agreement for the construction of the oil pipeline.

Copyright 2011 Novinite Bulgaria All rights reserved

10:01BASHNEFT BOOSTS 9M IFRS NET PROFIT 52.7% TO $1.039 BLN, BELOW FORECAST; Q3 NET UP 46% TO $407 MLN, ALSO BELOW FORECASThttp://www.interfax.com/news.asp

Bashneft's net heads north in 9M

http://www.rbcnews.com/free/20111208104903.shtml

      RBC, 08.12.2011, Moscow 10:49:03.Bashneft ramped up its IFRS net profit 52.7% year-on-year to $1.31bn in January-September 2011, while Q3 net profit plunged 23.5% to $407m compared to the previous quarter, the oil major said in a statement.

      Revenue climbed 45.2% year-on-year to $12.47bn in 9M, but went down 1.4% in Q3 quarter-on-quarter to $4.46bn.

      Operating profit advanced 41.6% year-on-year to $1.9bn in the first nine months of 2011, and decreased 26.6% quarter-on-quarter to $574m in Q3, while EBITDA jumped 31.6% to $2.37bn in 9M, but came in at $720m in Q3, down 23.6% compared to the previous quarter.

BP in talks to settle with Russian partners – FThttp://www.reuters.com/article/2011/12/08/bp-tnkbp-talks-idUSL5E7N800620111208

8:41pm EST

LONDON, Dec 8 (Reuters) - BP has discussed the outline of a possible settlement with its Russian billionaire joint venture partners in TNK-BP, the Financial Times reported on Thursday.

The newspaper cited people familiar with the situation as saying the discussion is aimed at trying to resolve an acrimonious dispute between the two sides.

However, people close to the situation, cited by the FT, said BP and its partners are only involved in preliminary discussions, and no formal talks are taking place.

The talks on a settlement, which would involve the transfer of some BP assets to TNK-BP, come ahead of a critical board meeting of the venture in Brussels on Friday.

Directors will hear recommendations from two independent international law firms on whether to file suit against BP over its failed alliance with Rosneft , the Russian state oil champion.

None of the parties involved were available for immediate comment.

December 7, 2011 11:13 pm

BP talks peace deal with Russian partnersHigh quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/f7512016-20f5-11e1-8a43-00144feabdc0.html#ixzz1ful9PQnW

By Catherine Belton in Moscow and Sylvia Pfeifer in London

BP has discussed the outline of a possible settlement with its Russian billionaire joint venture partners in TNK-BP to try to resolve an acrimonious dispute between the two sides, according to people familiar with the situation.

The talks on a settlement, which would involve the transfer of some BP assets to TNK-BP, come ahead of a critical board meeting of the venture in Brussels on Friday. Directors will hear recommendations from two independent international law firms on whether to file suit against BP over its failed alliance with Rosneft, the Russian state oil champion.

There have been preliminary discussions on a peace deal in recent weeks, people close to the situation confirmed, although no formal talks are currently taking place.

Under the proposal, both sides would acknowledge their differences but make a firm commitment to the future of the venture. The proposal would also require agreement on the cessation of all outstanding legal action – including all claims from any minority shareholders in TNK-BP – and BP would agree to transfer some assets, deemed a “sensible” value.

“Such a potential settlement is possible but the parties are very far from agreeing on the nature of the settlement and no talks are being held,” said one person close to AAR.

Relations between the UK energy group and Alfa-Access-Renova (AAR), the vehicle through which the Russian partners hold their stake in the venture, have become increasingly strained since January when BP announced a proposal to team up with Rosneft to explore the Arctic. AAR claimed BP broke TNK-BP’s shareholder agreement stipulating any new ventures in Russia and Ukraine need to be offered to the joint venture first. BP has always denied the Rosneft deal was in violation of the agreement.

AAR blocked the alliance by winning an injunction from Stockholm then later rejected a $32bn buy-out offer tabled by BP and Rosneft in an effort to break the deadlock. Although the Rosneft deal has since collapsed, arbitration proceedings have continued.

Any deal is unlikely to be agreed in the short term, if at all.

The preliminary soundings come ahead of Friday’s board meeting where TNK-BP’s independent directors, including former German chancellor Gerhard Schroeder, are likely to have a decisive vote on the issue of the damages claim. BP has always insisted no grounds exist as TNK-BP was not damaged.

“The issue is coming to a head,” said a person close to TNK-BP management.

The directors will also look at a possible, separate case by BP against Viktor Vekeselberg’s Renova Group, one of the companies that makes up AAR.

AAR declined to comment. BP said it would not comment “on speculation about any commercial discussions we may have with AAR”. It added that it had not changed its position that “we have not breached the TNK-BP shareholder agreement and that TNK-BP incurred no loss as a result of the incomplete Rosneft deal”.

Vanco, Lukoil make Ivorian strikehttp://www.upstreamonline.com/live/article293109.ece

Africa-focused Vanco Exploration and its partner Lukoil said on Wednesday that they have discovered oil in Block CI-401 off Cote d’Ivoire.

Luke Johnson  07 December 2011 23:53 GMT

The Independance-1X exploration well hit a series of “good-quality” Turonian-aged sandstones containing light oil with eight metres of pay, Vanco said in a statement.

Operator Vanco will temporarily abandon the well, which was drilled to a total depth of 4132 meters in a water depths of 1689 meters about 93 kilometres south-east of Abidjan.

Independance-1X, drilled by the drillship Ocean Rig Olympia, is one of the deepest-water exploration wells ever drilled in the eastern offshore Ivorian basin, Vanco said.

It is the second such well to be drilled in Block CI-401, with drilling currently in progress on one more deepwater exploration well in the block, the Albacore-1X.

Vanco owns a 28.34% participating interest in the block with Lukoil on 56.66%.

State-owned Petroci Holding holds a 5% participating interest together with a 10% carried interest.

Published: 07 December 2011 23:53 GMT  | Last updated: 07 December 2011 23:53 GMT

Novatek warns of fraud attempthttp://www.upstreamonline.com/live/article293031.ece

Russian gas producer Novatek has cried foul over recent letters purportedly misusing its name and logo in a bid to sell hydrocarbons.

Bill Lehane  07 December 2011 15:26 GMT

The company said it was considering filing legal proceedings for attempted fraud, document forgery and trademark violation over the incident.

Letters bearing Novatek’s name and logo allegedly sought to show a company registered to an address in London was affiliated to Novatek.

The letters said that Novatek had benzine, mazut, diesel, crude oil and natural gas available for sale outside the Russian Federation.

Novatek said in a statement on Wednesday that it had no connection whatsoever to the company.

“The letters...purportedly confirming our business relations are counterfeit and made by unknown persons by compiling corporate information and elements of Novatek's corporate design copied from official documents on our corporate site”, the company said.

“If you have been offered to purchase benzine, mazut, diesel, crude oil and natural gas from sources that are located outside the territory of the Russian Federation and allegedly produced by Novatek, we recommend you contact us to avoid the risk of fraud”, the statement added.

Novatek is Russia's second largest producer of natural gas and its largest independent gas producer.

Published: 07 December 2011 15:26 GMT  | Last updated: 07 December 2011 15:26 GMT

Exxon Russia Chief:May Build LNG Plant In Kara Sea If Gas Found Paperhttp://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201112080316dowjonesdjonline000286&title=exxon-russia-chief-may-build-lng-plant-in-kara-sea-if-gas-found-paper

MOSCOW -(Dow Jones)- Exxon Mobil Corp. (XOM) may build an LNG plant in the Kara Sea if large gas reserves are found in the Vostochno-Primovosemelskiye sectors, the company's Russia chief, Glen Waller, said in an interview with the Kommersant newspaper published Thursday.

The U.S. oil major has partnered with Russian oil champion Rosneft (ROSN.RS) in the region.

"Our company produces oil and gas, and we think that the Black Sea and the Kara Sea have good potential for oil," Waller said. "If it turns out that the fields are predominantly gas, however, then it would be logical to build an LNG plant there, although much will depend on the market situation."

Rosneft and ExxonMobil may start drilling in the Kara Sea as early as 2014.

"We'll begin explorational seismology next year, and this goes well, we will start the first well in 2014. Production may start after five or six years," Waller said, adding that the tax regime will be important in determining at what pace the project is realized.

-By Ira Iosebashvili, Dow Jones Newswires; +7 495 232-9192; ira.iosebashvili@ dowjones.com

(END) Dow Jones Newswires 12-08-110316ET Copyright (c) 2011 Dow Jones & Company, Inc.

Gazprom

Gazprom: Unacceptable to split gas pricing formula from oil priceshttp://www.prime-tass.com/news/0/%7BE3FD302B-9FC1-403A-962E-E650DB2BAA90%7D.uif

MOSCOW, Dec 7 (PRIME) -- Russian natural gas export monopoly Gazprom finds it unacceptable to move away from the existing gas pricing formula that is dependent on oil prices, Sergei Komlev, head of Gazprom Export’s contracts and pricing department, said at an industry conference Wednesday.

“Any form of splitting (gas prices) from oil prices is unacceptable for producers,” Komlev said.

Gazprom has been adhering to the pricing code, under which the main part is played by long-term contracts, while spot prices are serving as compensatory factor, Komlev added.

Discussions about the necessity of changing the formula for setting the price of Russian gas have been held for several years now and consumers have been calling for Gazprom’s prices to be tied to spot ones. However, in June, Gazprom’s CEO Alexei Miller said the company planned to keep binding gas prices to oil prices.

End

07.12.2011 17:03

India govt says Petronet to finalise Gazprom LNG deal soonhttp://af.reuters.com/article/energyOilNews/idAFL3E7N74YF20111207

Wed Dec 7, 2011 2:42pm GMT

Dec 7 (Reuters) - India's Petronet LNG Ltd will soon finalise an agreement for sourcing liquefied natural gas (LNG) from Russia under a pact with energy giant Gazprom , an Indian government statement said on Wednesday.

In June, Gazprom had signed a preliminary deal with Petronet for the supply of 2.5 million tonnes of LNG annually.

India is the world's eighth-largest importer of LNG and the widening gap between demand and supply could mean imports rise as much as five-fold in the next decade.

Separately, the overseas arm of Indian state-run explorer Oil & Natural Gas Corp has showed "keen interest" in Russia's Sakhalin-3 and other fields and is in "close talks" with Gazprom to jointly develop projects to produce LNG, the same government statement said. (Reporting by Devidutta Tripathy in NEW DELHI; Editing by Aradhana Aravindan)

Gazprom Said to Stall on RWE Talks as German Power Faltershttp://www.bloomberg.com/news/2011-12-07/gazprom-said-to-stall-on-rwe-talks-as-german-power-falters.html

By Anna Shiryaevskaya - Dec 8, 2011 12:00 AM GMT+0400

OAO Gazprom, the world’s biggest natural-gas exporter, is stalling on talks to create a European power-plant venture with RWE AG because of deteriorating profits in Germany, two people familiar with the matter said.

Gazprom and RWE agreed last week to keep talks going for several more months in a second extension since July, another person said. The companies haven’t yet agreed on the assets and need more time to monitor demand and margins in Germany, the other people said, declining to be identified because the matter is confidential.

“It’s difficult to see the strategic logic for Gazprom to get involved in the German power business,” Derek Weaving, a London-based utilities analyst at Renaissance Capital, said by e-mail. “The European power sector is highly competitive, with even established national champions like EON AG reporting mediocre profitability.”

Gazprom supplies about a quarter of Europe’s gas and the company announced plans to negotiate its first generation venture in western Europe with RWE in July, including coal- and gas-fired plants in Germany, the U.K., Belgium and the Netherlands. RWE is looking at ways to mitigate the costs of Germany’s decision to close all its nuclear reactors by

2022 and has pledged to sell 11 billion euros ($15 billion) of assets. The Essen-based utility raised 2.1 billion euros in a share sale earlier this week.

Price Mismatch

Gas-fired power generation, most interesting to Gazprom because it can supply fuel, has been unprofitable for the entire year until the end of November, based on year-ahead prices for electricity, fuel and carbon emission permits. The spread turned positive for the first time on Dec. 1, according to data compiled by Bloomberg.

Annett Urbaczka, a spokeswoman at the German utility, declined to comment on “ongoing talks.” Gazprom and RWE chief executive officers, Alexey Miller and Jurgen Grossman, agreed to continue “consultations” on the creation of the joint venture, the Moscow-based company said in a statement on Nov. 30 after the two men met.

Gazprom and RWE agreed in October to extend the three-month exclusive talks to the end of the year. For RWE, an agreement with Gazprom may allow the company to negotiate a better deal on the long-term gas supply contracts that are currently losing money because their rates are linked to oil prices rather than day-to-day gas prices in Europe.

‘Creative Approach’

Gazprom Deputy Chief Executive Officer Alexander Medvedev said in September that the company may adopt a “creative” approach on gas pricing after forming the power venture. The gas pricing talks are part of the discussions on the power venture. A deal with RWE could help the Russian gas export monopoly to maintain its share in the European gas market, which slipped to 23 percent last year.

The Moscow-based gas exporter is also looking to invest in other European countries such as Bulgaria and Romania, Denis Fedorov, head of the OOO Gazprom Energoholding electricity unit, said in October.

Germany’s plans to develop renewable energy to replace nuclear generation may also be an obstacle to the deal. The German government wants to boost the share of renewable energy to 35 percent of output in 2020 from 17 percent last year.

“Companies will struggle to recover the huge costs associated with reducing greenhouse gases and increasing the proportion of renewable energy,” Weaving said. “Expanding into the German power sector may be good for Gazprom egos, but doesn’t seem to offer any upside for shareholders.”

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

11:49 08/12/2011ALL NEWS

Naftogaz pays for gas supplies in roubles for the first time

http://www.itar-tass.com/en/c154/292393.html

MOSCOW, December 8 (Itar-Tass) —— Ukraine’s national gas company Naftogaz of Ukraine has paid for the first time in roubles to Gazprom for supplied gas.

Ukraine’s company reports that for the gas imported in November Ukraine owes over 972.2 million dollars. On December 7, the company transferred to Gazprom 210 million dollars and 7.2 billion roubles /232.2 million dollars/.

“In compliance with the additional agreement of December 5, 2011 to the basic gas buy-sell contract, the company has a right to make payments for imported natural gas no later than to the 28th day of the months following the supplies,” Naftogaz reports. Earlier, the payment deadline was the seventh day. Thus, Ukraine owes to Gazprom 530 million dollars more for the supplies made in November.

The price for Russia’s natural gas supplied to Naftogaz in the fourth quarter of the current year makes about 400 dollars per a thousand cubic metres.

Gazprom eyes Israeli gas projects

http://www.rbcnews.com/free/20111208120102.shtml

      RBC, 08.12.2011, Moscow 12:01:02.Russia's gas giant Gazprom is interested in partnering with Israel to develop the country's natural gas infrastructure and distribute its gas to third countries, Gazprom's Chairman and Deputy Prime Minister Victor Zubkov said today.

      Russia and Israel could team up to tap gas fields on Israel's shelf, as well as oil deposits in Russia, Zubkov went on to say, adding that Russia could also supply power engineering equipment, including steam turbines and turbine-type generators, to Israel's power plants, and to cooperate in energy conservation and renewable energy projects.

Arctic oil rig ready for last finishhttp://www.barentsobserver.com/arctic-oil-rig-ready-for-last-finish.4996275-16178.html

2011-12-08 Gazprom’s new “Arkticheskaya” jack-up offshore drilling rig is moored at Shipyard No. 35 in Murmansk for completion.

Russian and Canadian experts have now started to install the drilling equipment on the rig, which is expected to be ready for towing to its designated place in June 2012.

It is not certain were the rig is to be placed. BarentsObserver has reported that it might be placed in the Pechora Sea, but according to Arctic-TV, it will probably be placed on the Arkticheskoye oil field, which is located in the Barents Sea, just south of the Shtokman gas field.