Russia 101221

Basic Political Developments Lavrov: Foreign political results of 2010 - Russian Foreign Minister Sergei

Lavrov has summed up foreign political results of 2010 and spoken about diplomatic tasks for 2011 in an interview with Interfax.

START TREATY o U.S. Senate Moves Toward Ratifying New START - The White House

says it is confident that the Senate will now vote to approve the accord before the chamber takes its Christmas break.

o Senate defeats bids to change START treaty - A change to the treaty would effectively kill it by forcing a renegotiation. Russian Foreign Minister Sergei Lavrov warned in an interview with Interfax on Monday that an amendment could be a deal-breaker, saying the treaty "cannot be opened up and become the subject of new negotiations."

o U.S. Senate Told Not to Tweak Pact Russia's Jews want repeal of Jackson-Vanik -  The request is in a letter handed by

executives of the Russian Jewish Congress to the American Ambassador John Beyrle at a meeting in Moscow Monday.

Report looks at source of U.S. jet fuel - The House Subcommittee on National Security and Foreign Affairs plans to release a report Tuesday, The New York Times reported. The panel looked into how the U.S. obtains fuel for its military operations, much of it coming from Russia.

o Russia Was Misled Over Fuel for U.S. Use, Report Says MEDVEDEV IN INDIA

o WRAPUP 2-Russia, India agree defence and nuclear deals - Russia-India to jointly develop 5th generation fighters; Deal to expand capacity at Kudankulam nuclear plant; Russia losing influence over India as Delhi looks West

o South India nuclear plant to launch by Q1 2011 – Rosatomo Indian PM accepts invitation to visit Russiao Russia backs India on 26/11 probe, nuclear tradeo Russia, India approve South Africa's accession to BRICo Medvedev not opposing India's participation in Afghan stabilization

quarteto Moscow, Delhi urge Iran to comply with Security Council resolutions,

cooperate with IAEAo Russia, India urge dialogue on Iran nuclear programmeo INDIA CONFIRMS READINESS TO GIVE RUSSIA THIRD SITE FOR

NUCLEAR POWER PLANT CONSTRUCTION ON ITS TERRITORY – KIRIYENKO

o India, Russia sign contract on 5G fighter jet design projecto India keen to cooperate with Customs Uniono Russia to support India's accession to SCO o Russia Backs India on Security Council

o Gov't buys into Sistema's Indian subsidiary o AFK SISTEMA, ONGS TALKING DEAL INVOLVING BASHNEFT,

RUSSNEFT, IMPERIAL ENERGY - SISTEMAo Russia, India sign defence, nuclear dealso BrahMos, Russian NPO Mashinostroyenia sign protocolo India sets $20 bn Russia trade targeto Indian capital welcomes Russian presidento Medvedev begins official visit to Indiao Russian President Begins India Visit o Medvedev to Talk Stealth Fighter in India o Medvedev, Manmohan hold talks; nuke deals on agendao Medvedev to visit Taj Mahal Wednesday o India, Russia to sign defence dealso India Says ‘Dobro Pozhalovat’ to Medvedev - By Tom Wrighto Medvedev to seek to fend off West in Indiao Kremlin to pitch fighters, nuclear deal in Indiao FACTBOX - Major India, Russia talking points

Mofaz asks Russia not to sell weapons to Israel's enemies - "Israel's comparative advantage must be maintained," Mofaz said, calling on Russia to refrain from selling S-300 missiles to the state's enemies. For his part, MP Mikhail Margelov said Iran should be allowed to achieve peaceful nuclear aims

PM Putin to unveil replacement for destroyed Georgia WWII monument o Putin to attend unveiling of new war memorial in Moscow

South Ossetia to take Georgia’s currency out of circulation Kaczynski surprises Russia - Russia has expressed skepticism about former Polish

Prime Minister Jaroslaw Kaczynski's allegations that the body sent by the Russian authorities to Poland is not that of his brother, who was killed in a plane crash near Smolensk on April 10.

Belarus parliament to ratify 17 CES agreements Lukashenko urges Moscow not to downplay Belarus' role in World War II victory Russian photo correspondent arrested in Minsk begins hunger strike

o Kremlin Says No Meddling in Belarus - President Dmitry Medvedev on Monday ignored outrage from European leaders over weekend Belarussian presidential elections by calling the vote and the ensuing violence in Minsk a "domestic affair."

Russia to bid to jointly build nuclear power plant in Egypt Go Russia Group Denied Registration Moscow Agrees to ‘Stratgey 31′ Rally After Split Baturina, Anisimov Talks Die Quickly Vnukovo detained suitcases of $20mln in cash were for terrorist group 1.4 million rubles stolen from St. Petersburg mosque Kyrgyz yardman attacked in Moscow Russia's Mission Control to readjust ISS orbit PRESS DIGEST - Russia - Dec 21

o Vimpelcom (VIP.N) shareholder Telenor (TEL.OL) opposes Vimpelcom bid for telecom assets owned by Weaher Investment, the paper says.

o 33.5 percent of viewers accross Russia watched this year's annual phone-in of Russian Prime Minister Vladimir Putin, which is 8 percent less than in the previous years, the daily writes.

o Russia will spend 46 billion roubles ($1.49 billion) in 2011-2015 in the framework of UN Convention on the rights of persons with disabilities, the daily writes.

o Moscow's government will receive a 15 billion rouble ($487.2 million) credit from the federal budget in 2011 at a low interest rate, the paper writes.

o The paper runs an interview with Anatoly Chubais, the head of state corporation Rusnano, on its reform into a public corporation.

o Russia's gas monopoly Gazprom (GAZP.MM) has abandoned its plan to build a skyscraper in St Petersburg, the daily says.

o Casinos continue to operate in all Russia's major cities despite the gambling ban introduced in 2006, the paper writes.

o Russia's Emergencies Minister Sergei Shoigu is the most popular minister; 75 percent of Russians support him, the paper writes citing a recent VTsIOM poll.

Russian Press at a Glance, Tuesday, December 21, 2010 o Belarusian President Alexander Lukashenko said that police had only

arrested "two or three" presidential candidates in Sunday's riots(Vedomosti, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta)Russian President Dmitry Medvedev ignored outrage from European leaders over Belarussian presidential elections by calling the vote and the ensuing violence in Minsk a "domestic affair"(The Moscow Times)Dmitry Medvedev and Valdis Zatlers, the presidents of Russia and Latvia, have agreed to set up a commission to guard against distortions of the two countries' shared past, following talks on Monday(Kommersant, Rossiiskaya Gazeta)Ukrainian Opposition leader Yulia Tymoshenko said the country's Prosecutor General's Office brought official charges against her for misusing government funds(Nezavisimaya Gazeta)Russia’s Ulyanovsk and Kirov regions seek unification with the republic of Tatarstan to become a unified Kazan Territory(Nezavisimaya Gazeta)Uralkali, Russia’s largest potash miner by market value, officially launched a $7.8 billion friendly takeover of domestic rival Silvinit(The Moscow Times, Vedomosti)VimpelCom's $6.6 billion bid for telecoms assets owned by Weather Investments received a major setback Monday when Norwegian shareholder Telenor said it would not back the deal(The Moscow Times)

The St. Petersburg City Court banned the construction of towering buildings in the historical center in yet another measure that makes Gazprom's Okhta Center project impossible(The Moscow Times, Kommersant)As heavy snowfalls keep pouring over Europe hundreds of Russians remain trapped in various European airports(Rossiiskaya Gazeta)Russia needs migrant workers. An interview with human rights activist Mikhail Fedotov(Rossiiskaya Gazeta)An exclusive interview with Anatoly Chubais, the head of Russia's state-owned nanotechnology corporation RusNano(Vedomosti)The Investigative Committee opened a criminal case against officials responsible for releasing suspects linked to the killing of an ethnic Russian that sparked violence in Moscow(The Moscow Times)Alexander Krasnenkov, one of Gazprom’s top managers and the president of Spartak St. Petersburg basketball club, was elected as the new head of the Russian Basketball Federation(Kommersant)City Hall dispatched thousands of snowplows and tractors to clear snow from Moscow's streets, even as drivers stood in near-record traffic jams(The Moscow Times, Kommersant, Nezavisimaya Gazeta)

Rossiyskaya Gazeta: Language leads to Moscow - FMS will teach immigrants about Russia’s realities in cultural centers Marina Gritsyuk

Russia to teach migrants good manners? - Last Saturday the world celebrated the International Migrants Day. It was established at the suggestion of the UN General Assembly in 2000. December18 was chosen because on that day in 1990 the General Assembly adopted the International Convention for the Protection of the Rights of All Migrant Workers and Members of Their Families.

Izvestiya: Sheikh Gainutdin is caught in a lie - Russia’s Islamic leaders condemn the radical statements of the Tatar mufti Dmitry Ivanov

Islamic extremism is rooted in colonial past of humanity – Orinetalist Russian Society of Authors seeks to pay royalty to literary hoax - Russian Society

of Authors is looking through its website for any contacts for Cherubina de Gabriak – a famous literary hoax of the early 20th Century.

o Russia Profile: Trust Nobody - The Soviet system allowed citizens to shirk their responsibilities in return for dependence on the state. But two decades after the collapse of the system, Russian citizens are reluctant to trust each other, readily willing to cheat each other and skeptical of everyone apart from their closest relatives.

National Economic Trends Central Bank revoked the license of Donbank and Russian-German Trade Bank News: Oil underpins strong Russian commodity exports  

Business, Energy or Environmental regulations or discussions Russian markets -- Factors to Watch on Dec 21 Norilsk Nickel, Rosneft, Polyus Gold: Russian Equity Preview Russian Stocks Advance as Oil Nears $90, Korea Tensions Ease $27 billion worth platinum deposit - Russian geologists claim to have discovered a huge

deposit of platinous ore on the Kola Peninsula. White Tiger Gold Ltd. Completes Acquisition of Russian OpCos Mosenergo narrows Q3 losses more than two thirds, boosts 9M earnings over 3-fold Finland and Russia decide on 800 MHz spectrum usage for LTE services Turkmenistan May Shut Down Russian MTS Mobile Service TeliaSonera, Altimo appeal Russia merger block-UPDATE 1 Telenor: Vimpelcom deal not good enough, for now UPDATE 1-Vimpelcom votes for Weather deal, may amend terms VimpelCom to Seek Revised Sawiris Deal After Telenor Opposition Vimpelcom vote on Weather looms after Telenor snub Russia: Daimler, GAZ to invest €100m in van venture Deripaska’s En+, S. Korea to Develop Siberia Iron Ore (Update1) Leviev's Mall of Russia to open in late January

Activity in the Oil and Gas sector (including regulatory) Russian Ministry Increases Oil Price Outlook From $75 to $81 Per Barrel Russia-China oil pipeline tested successfully Inspection Completed on Russia-China Oil Pipeline Rosneft To Build Petrochemicals Complex In Primorye Moscow Refinery Processes 865,390 Tons of Crude in November TNK-BP buys 75% minus one share in Sheremetyevo fuel depot TNK-BP Held First Meetings of Conflict Resolution Commissions for Interaction with

Contractors TNK-BP Ukrainian Refinery Plans to Raise Processing This Month Russia stakes $25bn claim on Asian oil bonanza - When the 4,070-km East Siberia-

Pacific Ocean (Espo) oil pipeline’s second stage is finished in 2013, it will be the world’s longest. At a cost of $25bn, it dwarfs all other infrastructure projects in post-Soviet Russia.

Gazprom Gazprom sees debt to EBITDA ratio at 1 by 2011 GAZPROM FORECASTS GAS PRODUCTION OF 570-580 BCM BY 2015 Gazprom cuts output forecast to 570-580 bcm by 2015 Gazprom sees output up to 570-580 bcm/yr by 2015 Yamal output growth to ease Okhta center in Yerevan? Gazprom delegation arrived in Armenia Gazprom Neft May Opt For St. Petersburg Business Center Latvia, Gazprom agree on lower price for natural gas St. Pete Court Bans Towering Buildings

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Full Text Articles

Basic Political Developments

December 20, 2010

Lavrov: Foreign political results of 2010http://www.interfax.com/interview.asp?id=210724

Russian Foreign Minister Sergei Lavrov has summed up foreign political results of 2010 and spoken about diplomatic tasks for 2011 in an interview with Interfax.

Question: Mr. Lavrov, do you think the expiring year was successful for the Russian diplomacy? What foreign political events seem most important to you?Answer: The work of the Russian diplomacy in line with President Dmitry Medvedev‘s instructions centers on achieving certain results intelligible to our citizens, assisting the country‘s comprehensive modernization and switching its economy to an innovative track. One must say that the development of international relations in the expiring year was in general favorable for the successful accomplishment of these tasks. The understanding that collective approaches to key global and regional problems, as well as the search for common answers to common challenges, have no alternative has grown stronger under the influence of the world economic and financial crisis. These trends tuning everybody to a pragmatic wave, as well as the rejection of ideological prejudices of the Cold War, reflected in the activity of many multilateral mechanisms, in particular the UN, G20, G8, BRIC, SCO and other structures.One of the most important results of 2010 is the comprehensive strengthening of integration processes in the CIS space on pragmatic basis of modernization imperatives common for our countries. The Commonwealth was and is a foreign political priority to us. Russia as CIS chairperson assisted the increase in all spheres of the Commonwealth‘s activity. Four summits, the CIS, CSTO, EurAsEC and Customs Union, that took place in Moscow in December summed up results of intense and fruitful work.The July launch of the Customs Union of Russia, Belarus and Kazakhstan that is being formed within the EurAsEC was a breakthrough. An important step was made to the next integration stage, the common economic space of the ‘troika‘ with free movement of goods, services, capital and labor which is open to other states. The December meeting of the three presidents at which a package of intestate agreements forming the legal base for the Common Economic Space contributed greatly to this work. It must come in force starting on January 1, 2012. The final declaration of the Moscow summit stresses that the launch the Common Economic Space will give an impetus to the development of a closer integration and the rapprochement of the member states‘ economies in order to accelerate socio-economic progress of the three countries and increase the welfare of their peoples. Developing the Customs Union and the Common Economic Space the countries are moving to the creation of the Eurasian economic union in order to secure balanced, complementary and mutually beneficial cooperation with other countries, international economic organizations and the European Union reaching the formation of the common economic space.

The demand for the CSTO as a key collective security structure in the CIS region was confirmed. The CSTO Collective Security Council session was marked by fruitful results. Changes to the Organization‘s basic documents that will enhance its efficiency, including in crisis situations, were made.The positive dynamics of our interaction with Ukraine assisted the strengthening of healthy trends in the CIS. The new policy of Ukraine‘s leadership towards Russia allowed to form businesslike and confidential atmosphere of mutually beneficial cooperation and reach certain weighty results.On the whole one can say the global situation has been normalizing with the processes of the emergence of a new polycentric international system becoming more intensive. These changes rest on the replacement of the international relations paradigm based on confrontation and conflict with one based on cooperation. This was vividly shown in the Euro-Atlantic space where steps towards building partnership based on the principles of indivisibility of security, mutual trust, transparency and predictability were made. President Medvedev took part in the Lisbon summit in Lisbon, as well as the OSCE summit in Astana which took place for the first time in 11 years.A considerable positive factor of developing the situation in the Euro-Atlantic zone and the world in general was an onward development of Russian-U.S. relations. The leaders of the two countries signed the Strategic Arms Reduction Treaty which is called to become a base for stable and predictable development of Russian-U.S. interaction in the strategic sphere and to make a standard for equal cooperation based on mutual benefits and the respects of each other interests.The year of 2010 was marked by active strengthening of Russia‘s interaction with states and organizations of the Asian-Pacific region. Russian-Chinese cooperation reached an unprecedented height. Cooperation with India, South Korea, Singapore, Japan, Australia, and New Zeeland which is called to assist the achievement of Russia‘s technological modernization priorities has been developing broadly as well.Naturally, we by no means want to paint a rosy picture of the international situation. Unfortunately, there is no reason for that yet. There still are quite many forces in the world who for various reasons are dissatisfied with the lower demand for conflicts and that are afraid of making a decisive step from the past to the future. We can see attempts being made both in the U.S. and in some European states to reverse global politics. Tensions continue escalating in the Middle East, the Korean peninsula and in the broader Eastern Asian region. In this context the political signal of imperativeness to form unifying and positive agenda that was carried by the festive of the 65th anniversary of victory over fascism and events dedicated to the 65th anniversary the World War II end in the Far East.Q.: What are the areas the Foreign Ministry will focus next year?A.: The main task of the Russian diplomacy will be to strengthen the positive trends in international affairs, which I talked about answering the first question. We proceed from the fact that this suits the interests of all responsible members of the international community and fully complies with Russia‘s course towards the creation of favorable external conditions for the multifaceted development of our country.Obviously, an improvement in the Euro-Atlantic policy cannot be regarded as something irreversible, the success of this process is not guaranteed. As President Medvedev said in the address to the federal Assembly, it will be crucial whether an agreement on full cooperation between Russia and NATO on European missile defense system is reached. Russia‘s initiative to conclude a European security treaty will continue playing the role of a catalyst of effort aimed at

the creation of single space of peace in the Euro-Atlantic region. We are convinced that the time for this treaty will come sooner or later.We intend to comprehensively support the strengthening of modernization partnerships aimed at assisting the acceleration of Russia‘s innovative development. It was confirmed at the Russia-EU summit in early December that there is a considerable potential to expand cooperation with the European Union, including in the framework of implementing the Partnership for Peace program. Profound and multifaceted interaction with leading European states, primarily Germany and France, is an important external source of Russian economic modernization. One of the key landmarks of our interaction with the EU today is the simplification of visa regime and prospects for its full cancelation.Russia will continue to contribute to the resolution of conflicts in various regions the escalation of which can seriously harm international security and stability. This primarily is the situation in Afghanistan, Pakistan, the Korean peninsula, the Iranian nuclear program, the restoration of peace process on the Middle East, first of all Palestinian-Israeli negotiations.We are ready to develop long-term mutually beneficial cooperation with all interested partners, including Latin America and Africa.Common search for responses to trans-border threats will be of particular importance. In particular, we will continue our effort to promote Russian president‘s initiative to create an international mechanism of preventing and cleaning-up the consequences of sea shelf disasters.We are going to improve ties with experts and civil society institutes in our work. The formation of the Gorchakov Public Diplomacy Assistance Foundation and the Russian Council for International Affairs pursues this goal in line with the president‘s instructions.Q.: How dangerous for Russian-U.S. ‘reset‘, as well as for disarmament and non-proliferation in the world in general, is it to drag on the ratification of the New START treaty?U.S. media make suggestions that if the U.S. Senate refuses to ratify the document Russia may change its position of supporting sanctions against Iran, cooperating with international forces in Afghanistan and in general revise its policy of normalizing relations with the U.S. Is it so?A.: Naturally, we closely follow the New Start in the U.S. Senate and we know about difficulties that the Obama administration has in this connection. We can also see how actively members of the administration are working in pressing for the ratification of the treaty by the American legislators. We hope that this work will be successful and that the Senators will show a responsible approach by supporting it. However, we are not in any way going to interfere in the process of considering the treaty on Capitol Hill - that is a U.S. domestic policy issue.On my part I can just emphasize that the START Treaty developed strictly on parity basis, in our view, is completely in line with the national interests of Russia and the U.S. It cannot be ‘reopened‘ and become a subject of new negotiations. Moreover, its enforcement and full-scale implementation will help promote strategic stability, international security, the nuclear weapons nonproliferation regime, and a more extensive process of multilateral nuclear disarmament. This is not just our own opinion - dozens of states, including NATO allies of the United States, have called for the ratification. In effect, we can speak of an international consensus in support of this agreementThe ratification of the START Treaty is no less important for the Russian-U.S. dialog which in this case will get a powerful impetus for the further gradual development. However, I would not say that the future of our bilateral relations is directly dependent on the outcome of New START ratification hearings. Nuclear disarmament, although being a key avenue of our cooperation with the United States, is still not the only one. Our cooperation is many-sided. This is a considerable

difference from previous years when Russian-U.S. relations ‘revolved‘ mainly around traditional arms control issues.We have done a great job over the past two years of Obama‘s presidency and managed to considerably saturate the palette of our bilateral relations thanks to the activation of economic, scientific, technical and humanitarian ties. We also managed to reach a truly partner dialog in resolving many international problems, such as the situation in Afghanistan, the Middle East, and the Iranian nuclear program. A lot has been done in the area of modern fight against terrorism and the proliferation of weapons of mass destruction.I do not want to talk about negative scenarios. We count on the completion of ratification procedures in the near future. As to the START Treaty, we will act synchronously and symmetrically with the U.S. side.The second part of your question stems from the presumption of unprincipled exchanges in international relations. Obviously, this cynicism is encouraged with the content of documents posted by WikiLeaks. The Russian diplomacy has many-century traditions of serving the Motherland, intellectual honesty and respect to partners. Moral covenants have never been a private matter for our diplomatic service. This is the meaning of the Day of Diplomat celebrated annually. I can assure you that the Russian foreign policy is based on clear, understandable and broadly shared principles of pragmatism, openness, the non-confrontational promotion of national interests and multi-vector system diplomacy. They are declared in our foreign political concept of 2008. The international situation has changed but the principles remain. They determine our approach to particular international problems.

START TREATY

U.S. Senate Moves Toward Ratifying New STARThttp://www.rferl.org/content/us_russia_start/2254395.html

December 21, 2010 Democratic Party lawmakers in the U.S. Senate have defeated efforts by minority Republicans to change the new strategic nuclear arms reduction treaty between the United States and Russia.

The White House says it is confident that the Senate will now vote to approve the accord before the chamber takes its Christmas break.

Republican senators had sought to amend the New Strategic Arms Reduction Treaty (START) to allow for more inspections and more deployed missiles, and to open negotiations with Moscow on tactical nuclear weapons.

But Democratic senators, who control the chamber, easily defeated the amendments.

Earlier, Russian Foreign Minister Sergei Lavrov warned against any changes, saying Moscow did not want the treaty opened up for new negotiations.

The treaty, signed by presidents Barack Obama and Dmitry Medvedev in April, would require

the United States and Russia to cut their deployed strategic nuclear warheads to no more than 1,550 each within seven years.

Senate leaders say the chamber could vote as early as December 21 to end debate on the treaty -- setting the stage for a vote to ratify it later this week.

The treaty needs 67 votes to be approved in the 100-member Senate. It must also be approved by the Russian State Duma lower house of parliament to come into effect.

compiled from agency reports

Senate defeats bids to change START treatyhttp://in.reuters.com/article/idINTRE6BD54220101221

6:05am IST

By David Alexander

WASHINGTON (Reuters) - The U.S. Senate defeated three amendments that could have killed a strategic nuclear arms treaty with Russia on Monday and the White House expressed confidence lawmakers would approve the accord before their Christmas break.

Republican senators sought to amend the New START treaty to allow for more inspections, more deployed missiles and to force negotiations on tactical nuclear weapons, but Democrats, who control the chamber 58-42, easily defeated the amendments, as they had two earlier attempts.

A change to the treaty would effectively kill it by forcing a renegotiation. Russian Foreign Minister Sergei Lavrov warned in an interview with Interfax on Monday that an amendment could be a deal-breaker, saying the treaty "cannot be opened up and become the subject of new negotiations."

The treaty, which would cut deployed strategic atomic weapons to 1,550 for each side within seven years, is one of President Barack Obama's top priorities for the current legislative session.

The agreement, signed by Obama and Russian President Dmitry Medvedev in April, is a centerpiece of the U.S. leader's bid to "re-set" relations with Russia, whose assistance Washington has recently sought on issues ranging from Iran's nuclear program to the war in Afghanistan.

Analysts say Senate rejection of the treaty would be a major blow to warming ties between the two countries, leading the Kremlin to question Obama's ability to deliver on major bilateral issues and giving ammunition to Russian hawks who oppose the thaw in relations with Washington.

The collapse of the pact would also inflict political damage to Medvedev, who has embraced Obama's efforts to improve relations and stepped up Russian support for U.S. efforts to rein in Iran's nuclear program.

Obama was phoning senators to try to work through their concerns about the treaty and line up support, the White House said. Secretary of State Hillary Clinton also was working the phones in an effort to persuade Republican senators to back the treaty, the State Department said.

The treaty is widely supported in military and diplomatic circles. All former Republican secretaries of state have endorsed it, as have Defense Secretary Robert Gates and the top U.S. uniformed military officer, Admiral Mike Mullen, chairman of the Joint Chiefs of Staff.

"The White House believes that before Congress leaves town the Senate will ratify the new START treaty," White House spokesman Robert Gibbs said.

Said State Department spokesman P.J. Crowley: "We're closely monitoring this. We believe the votes are there to ratify the treaty."

Senate Democrats said they were confident they would get at least nine Republican votes for the treaty, giving them the needed two-thirds majority. A final Senate vote could come as early as Tuesday or be pushed back until Thursday.

Senate Republican leader Mitch McConnell and several other senior Republican senators announced on Sunday they would vote against the treaty.

Lawmakers continued to work on the Senate resolution of ratification that accompanies the treaty, hoping that adding Republican concerns to that non-binding document would win additional support for the accord.

There has been far less public or political debate over the treaty in Russia. The Russian State Duma has yet to approve the accord and Medvedev has made clear that parliament should not ratify the treaty until U.S. Senate approval is certain.

Konstantin Kosachyov, the pro-Kremlin chairman of the international affairs committee, said Russian lawmakers would carefully examine the U.S. Senate's resolution of ratification and other declarations before proceeding with their own vote.

(Additional reporting by Steve Gutterman in Moscow and Alister Bull, Thomas Ferraro, Richard Cowan and Andrew Quinn in Washington; Editing by Vicki Allen and Philip Barbara)

U.S. Senate Told Not to Tweak Pact http://www.themoscowtimes.com/news/article/us-senate-told-not-to-tweak-pact/427389.html

21 December 2010Reuters

Foreign Minister Sergei Lavrov warned U.S. lawmakers on Monday that any changes to the New START nuclear arms reduction treaty signed by Presidents Barack Obama and Dmitry Medvedev in April could kill the pact.

Lavrov's warning came as the White House pressed for a ratification vote on New START this week before the Senate breaks for Christmas.

Some U.S. Republicans want to make changes in the treaty, which they say could limit U.S. national security options, and to the accompanying ratification resolution before voting.

Democrats, whose Senate majority was reduced in congressional elections last month, have moved to bring the treaty to a vote this week before the new chamber takes office in January. It needs 67 votes for approval in the 100-member Senate.

"I can only underscore that the Strategic Nuclear Arms Treaty, worked out on the strict basis of parity, in our view fully answers to the national interests of Russia and the United States," Lavrov said in an interview with Interfax.

"It cannot be opened up and become the subject of new negotiations," he said.

Medvedev has told the State Duma not to ratify the pact until U.S. Senate approval comes through or is certain.

The Duma could potentially sign off on it this year if the Senate approves it in time, said Konstantin Kosachyov, chairman of the Duma's International Affairs Committee.

But he said Duma deputies would closely examine the U.S. ratification resolution and any declarations or notes accompanying it to ensure no significant changes were made.

"It's just impossible to say in what form we will ratify the pact without seeing the final Senate texts," Kosachyov said.

Lavrov also played down the potential effects of failure to ratify New START, saying improved U.S.-Russian relations were not "directly dependent" on the pact.

"Nuclear disarmament is one of the key areas but far from the only area of our cooperation with the United States, which has a much more multifaceted character," he said.

But he warned that recent improvements in Moscow's ties with NATO, which hit a low with Russia's brief war against NATO aspirant Georgia in 2008, were not "irreversible."

"The success of this process is not guaranteed," he said.

Russia's Jews want repeal of Jackson-Vanikhttp://english.ruvr.ru/2010/12/21/37308656.html

Dec 21, 2010 01:41 Moscow Time

The Russian Jews ask the US Congress to repeal the 1974 Jackson-Vanik amendment, which restricts Russian trade with the US under the now preposterous pretext that this country hampers the repatriation of Jewish people to Israel.

 The request is in a letter handed by executives of the Russian Jewish Congress to the American Ambassador John Beyrle at a meeting in Moscow Monday.

The notorious amendment, adopted 36 years ago, is described as a toxic leftover from the Cold War.

Report looks at source of U.S. jet fuelhttp://www.upi.com/Top_News/US/2010/12/21/Report-looks-at-source-of-US-jet-fuel/UPI-54951292914598/

Published: Dec. 21, 2010 at 1:56 AM

WASHINGTON, Dec. 21 (UPI) -- A company based in Gibraltar used false end-user certificates while supplying jet fuel for U.S. military planes in Afghanistan, Congressional investigators say.

The House Subcommittee on National Security and Foreign Affairs plans to release a report Tuesday, The New York Times reported. The panel looked into how the U.S. obtains fuel for its military operations, much of it coming from Russia.

The subcommittee chairman, Rep. John F. Tierney, D-Mass., said the United States should be careful to avoid becoming dependent on Russia for fuel. He said he was troubled by the use of false certificates to evade Russian export restrictions.

"The fact that the Department of Defense and Department of State ignored or were unaware of the false certifications is astonishing," he said.

The fuel has been supplied by Mina Corp. and Red Star Enterprises, a business group registered in Gibraltar. The report said the subcommittee, during eight months of investigation, found no evidence of corruption between the group and officials in Kyrgyzstan.

December 20, 2010

Russia Was Misled Over Fuel for U.S. Use, Report Sayshttp://www.nytimes.com/2010/12/21/world/europe/21gazprom.html

By ANDREW E. KRAMER

MOSCOW — For a number of years ending in April, two Pentagon middleman companies misled the Russian authorities into thinking that the large quantities of jet fuel they were purchasing were for civilian use, not military, apparently with the intention of evading a tariff, a Congressional report scheduled for release on Tuesday concludes.

But the fuel was being bought by the Pentagon for shipment to the American airbase in Manas, Kyrgyzstan, and from there on to Afghanistan, the report said. Once Russian officials discovered the true identity of the recipient, they cut off supplies, creating a major logistical headache for United States military commanders.

Officials for the contractors expressed little remorse for their actions, the report shows.

“We got one over on ’em,” the report quotes one company official, Charles Squires, as telling investigators. “I’m an old cold warrior, I’m proud of it, we beat the Russians, and we did it for four or five years.”

Until, that is, the Russians objected and the system unraveled.

That breakdown forced a major redrawing of supply routes into Afghanistan for jet fuel, which is in chronically short supply in landlocked Afghanistan. It also touched off a major behind-the-scenes diplomatic effort by the Obama administration to rebuild the fuel lines.

The Pentagon contractors bought jet fuel from a subsidiary of the Russian energy giant Gazprom and furnished the Russian authorities with falsified export documents indicating that it would be used only for civil aviation, said the report by the Subcommittee on National Security and Foreign Affairs, which is led by Representative John F. Tierney, Democrat of Massachusetts.

The supply system — operated by Red Star and the Mina Corporation, two closely affiliated companies registered in Gibraltar and managed by former United States military officers — accounted for more than half of the jet fuel used in the war, the report said. Mr. Squires, a former defense attaché at the United States Embassy in Kyrgyzstan, suggested to Congressional investigators that the Russian authorities knew all along about the falsified certificates. But they did not act, he said, because Gazprom was making profits on the sales.

In any case, the Russian Federal Security Service and the Russian Parliament investigated in 2009, the report said, and the trainloads of jet fuel from Gazprom started to dry up, halting altogether on April 1.

In a deposition with Congressional investigators, Red Star and Mina Corporation officials characterized the false certificates as necessary to circumvent Russian export restrictions on jet

fuel sales to foreign militaries. In interviews, Kyrgyz officials characterized them as an effort to avoid export tariffs.

While those assertions remain in dispute, there is no question that the supply disruption caused major problems. Contractors were compelled to buy far more costly fuel that had to be shipped through the Black Sea and sent overland to Kyrgyzstan and Afghanistan. It also forced the military to rely more heavily on supply routes from Pakistan into Afghanistan on vulnerable mountain roads where trucks came under repeated attack this summer.

Since the cutoff, American diplomats have scrambled to cut new fuel deals with Kyrgyzstan and Russia. Their efforts seemed to be bearing fruit this month, when Secretary of State Hillary Rodham Clinton visited Bishkek and announced a contract with a state-owned company to provide half the fuel for Manas.

However, Kyrgyz officials, apparently backed by Gazprom, have said they want nothing to do with Red Star and Mina anymore, but Mina won a new, $315 million contract from the Pentagon on Nov. 4 to supply the Manas base. Just last week, the Kyrgyz police raided Mina offices in Bishkek, indicating continued deterioration in that company’s position, as Kyrgyz officials support their state-owned alternative.

A Gazprom spokeswoman said only that the company now sells no fuel to the United States military in either Kyrgyzstan or Afghanistan.

A lawyer representing Red Star, who spoke on the condition of anonymity in an interview before the report’s release, denied that the company had violated any laws in the countries where it operated.

MEDVEDEV IN INDIA

WRAPUP 2-Russia, India agree defence and nuclear dealshttp://in.reuters.com/article/idINSGE6BK01V20101221

1:25pm IST

(Recasts with defence, nuclear deals)

* Russia-India to jointly develop 5th generation fighters

* Deal to expand capacity at Kudankulam nuclear plant

* Russia losing influence over India as Delhi looks West

By Alexei Anishchuk and Paul de Bendern

NEW DELHI, Dec 21 (Reuters) - Russia and India agreed on Tuesday a long-awaited contract to jointly develop fifth generation fighter aircraft and signed a deal to expand capacity at an Indian nuclear power plant.

The defence and nuclear deals were signed during a two-day visit to India by Russian President Dmitry Medvedev, who was expected to lobby hard for the former Cold War ally to stay loyal to Russian-made jets and reactors, rather than those offered by the West.

A statement said the two countries would work on a design project for the fighters and had agreed to build the third and fourth generating units for a nuclear power plant in India's southern state of Tamil Nadu.

Russia has been India's close economic and political partner since Soviet days, and monopolised India's defence market for decades, but New Delhi wants to reduce its reliance on one country to reflect its growing clout on the world stage.

Leaders from Britain, the United States, France and China -- along with Russia, the permanent members of the United Nations Security Council -- have all visited India in the last six months, securing contracts worth a total of around $50 billion.

Medvedev, accompanied by a large delegation of business leaders, was holding talks with Prime Minister Manmohan Singh and ruling Congress party chief Sonia Gandhi on Tuesday in New Delhi, then visit the Taj Mahal in Agra and India's financial capital Mumbai on Wednesday.

"It is well known that we want to diversify our basket of suppliers for our strategic areas. We will always have close ties with Russia but they are no longer the only game in town," said a senior Indian government official, who declined to be named.

Russia sees India as a counterweight to China and a potential ally in Afghanistan. India's growing ties with the United States, underscored by a landmark civil nuclear deal, has made Russia ill at ease.

New Delhi is likely to seek unequivocal backing from Russia for its ambition to secure a permanent seat on an enlarged U.N. Security Council, following statements of support from Paris and Washington in recent months.

ENERGY-HUNGRY

Medvedev had been expected to secure a contract on jointly developing 250-300 fifth generation fighter aircraft over 10 years. The contract amount was unknown, but unofficially said to be around $35 billion.

Tuesday's statement said the two sides had also signed a deal for Russia to supply missiles to the Indian army. No details were given on the size of the deal.

Russia is also keen to continue supplying nuclear technology and expertise to energy-hungry India as it plans to add 63,000 MW of nuclear power by 2032 to support its economic growth.

"Energy is one area where Russia will be the most important partner for India both in terms of conventional and non conventional energy.... Russians are one of our main suppliers of nuclear power plants," said Lalit Mansingh, former Indian foreign secretary.

Behind the rhetoric of expanding ties with its fellow BRIC economy -- the term used to group emerging powers Brazil, Russia, India and China -- bilateral trade is eclipsed by Russia's booming economic ties with the European Union and China.

The Kremlin said trade with India will total $10 billion this year, while official statistics show Russia's trade with the European Union stood at $246 billion in the first 10 months of 2010, and trade with China was $47.5 billion in the same period.

India and Russia hope to boost bilateral trade to $20 billion within five years. (Additional reporting by Krittivas Mukherjee and Henry Foy; Editing by Daniel Magnowski and Alex Richardson)

South India nuclear plant to launch by Q1 2011 – Rosatomhttp://in.reuters.com/article/idINIndia-537021201012212:04pm IST

NEW DELHI (Reuters) - The first nuclear reactor of Kudankulam power plant, built by Russia's Rosatom, will be launched by the end of the first quarter of next year, the head of the Russian firm Sergei Kiriyenko said on Tuesday.

Rosatom is also planning to build 18 reactors across three sites in India, Kiriyenko said.

Russia is keen to continue supplying technology and expertise to energy-hungry India as the country plans to add 63,000 megawatts of nuclear power by 2032 to fuel its economic growth.

Russian President Dimitri Medvedev is in New Delhi on Tuesday for the start of a two-day visit to India, seeking to build on an already close relationship, push for big-ticket nuclear energy and defence deals and increase trade cooperation.

(Reporting by Alexei Anishchuk and Krittivas Mukherjee; Writing by Henry Foy)

Indian PM accepts invitation to visit Russia

http://www.itar-tass.com/eng/level2.html?NewsID=15800790

21.12.2010, 11.15

NEW DELHI, December 21 (Itar-Tass) - Russian President Dmitry Medvedev has invited Indian Prime Minister Manmohan Singh to visit Russia for a next bilateral summit.

The invitation was accepted with gratitude, said a joint statement passed after the talks of Dmitry Medvedev and Manmohan Singh on Tuesday. The Indian prime minister is expected to visit Russia next year.

The sides have agreed to continue work aimed at solving a strategic task to increase bilateral trade to 20 billion U.S. dollars by 2015, the document said.

Moscow and New Delhi intend to first of all develop scientific and technical cooperation and cooperation in high-tech sectors. A new Russian-Indian scientific and technological centre could contribute to the implementation of these programs, the statement said.

Russia backs India on 26/11 probe, nuclear tradehttp://ibnlive.in.com/news/pak-must-bring-2611-attackers-to-justice-russia/138142-3.html

CNN-IBN Updated Dec 21, 2010 at 01:11pm IST

New Delhi: Russia on Tuesday asked Pakistan to bring Mumbai attackers to justice and supported India's entry into non proliferation bodies following a high-level meeting between Prime Minister Manmohan Singh and Russian President Dmitry Medvedev in New Delhi.

The joint statement issued after the meeting Manmohan Singh and Dmitry Medvedev in New Delhi called on Pakistan to act against those responsible for the carnage in Mumbai during November 2008.

Russia also called for implementation of UN resolution 1267 on Pakistan-based terror groups referring to the UNSC ban on Lashker-e-Toiba's front organisation Jamaat-ud-Dawa and its chief Hafiz Saeed.

Russia backed India’s entry into Nuclear Suppliers Group (NSG), Missile Technology Control Regime (MTCR) and non proliferation bodies like Wassenar Arrangement. Wassenar Arrangement has been established to exercise export controls for conventional arms and dual use goods and technologies.

Backing India as full member of Shanghai Cooperation Organisation, both the countries also supported Iran's right to peaceful development of civilian nuclear energy.

India reiterated its support for the Russia-US disarmament agreement.

Earlier Medvedev and Singh held bilateral talks in New Delhi with the focus on defence agreements, nuclear and business deals.

 10:38Russia, India approve South Africa's accession to BRIChttp://www.interfax.com/news.asp 10:37Medvedev not opposing India's participation in Afghan stabilization quartethttp://www.interfax.com/news.asp

10:31Moscow, Delhi urge Iran to comply with Security Council resolutions, cooperate with IAEAhttp://www.interfax.com/news.asp

Russia, India urge dialogue on Iran nuclear programmehttp://www.reuters.com/article/idUSDEL00378920101221

2:28am EST

NEW DELHI, Dec 21 (Reuters) - Indian and Russian leaders agreed on Tuesday that the dispute over Iran's nuclear programme should be resolved through dialogue, a joint statement said.

Indian Prime Minister Manhomahn Singh and Russian President Dmitry Medvedev also agreed Iran had a right to peaceful nuclear energy. Medvedev is on a two-day visit to India. (Reporting by Alexei Anishchuk and Krittivas Mukherjee; writing by Paul de Bendern; editing by Malini Menon)

12/21 11:09   INDIA CONFIRMS READINESS TO GIVE RUSSIA THIRD SITE FOR NUCLEAR POWER PLANT CONSTRUCTION ON ITS TERRITORY – KIRIYENKOhttp://www.interfax.com/news.asp

India, Russia sign contract on 5G fighter jet design project

http://www.itar-tass.com/eng/level2.html?NewsID=15800700

21.12.2010, 10.55

NEW DELHI, December 21 (Itar-Tass) - Russia and India have signed a contract on engineering design project of a fifth generation fighter jet.

The contract was signed during Russian President Dmitry Medvedev’s visit to India by the director-general of Rosoboronexport, Anatoly Isaykin, and the president of Hindustan Aeronautics Limited, Ashok Nayak.

December 21, 2010 10:53

India keen to cooperate with Customs Unionhttp://www.interfax.com/newsinf.asp?id=210781

DELHI. Dec 21 (Interfax) - India is showing interest in signing an agreement on economic cooperation with the Customs Union of Russia, Kazakhstan and Belarus, according to a joint statement adopted after the Indian-Russian summit in Delhi on Tuesday.

The parties have agreed to explore prospects for signing the agreement on comprehensive economic cooperation following the formation of the Customs Union and after relevant consultations with all parties concerned, the statement said.

Russia and India have agreed to continue efforts to achieve the strategic goal of increasing bilateral trade to $20 billion by 2015.

Moscow and Delhi maintain dynamic cooperation in the defense, energy, high-tech space and telecommunications sectors.

kk mj

Russia to support India's accession to SCO

http://www.rbcnews.com/free/20101221104711.shtml

      RBC, 21.12.2010, Delhi 10:47:11.Russia fully supports India's intention to join the Shanghai Cooperation Organization (SCO). According to the statement signed by Russian President Dmitry Medvedev and India's Prime Minister Manmohan Singh, India's accession to the organization will significantly strengthen the SCO's political role and provide a new standard of operation for it. "Russia has agreed to take steps along with other SCO members to expedite the process of India's induction to the organization," the statement reads.

      At the moment, the SCO consists of Russia, Kazakhstan, China, Kyrgyzstan, Tajikistan, and Uzbekistan.

DECEMBER 21, 2010, 2:52 A.M. ET

Russia Backs India on Security Council http://online.wsj.com/article/SB10001424052748703581204576032861820834634.html

By TOM WRIGHT

NEW DELHI--Russia on Tuesday pledged to support India's bid for a permanent seat on the United Nations Security Council.

Moscow's longstanding support of New Delhi's bid for a greater role at the U.N. was restated in a joint agreement signed by Russian President Dmitry Medvedev and Indian Prime Minister Manmohan Singh Tuesday.

Russia's support for India to have a permanent Security Council seat was more unequivocal than that voiced by Chinese Premier Wen Jiabao during a state visit last week.

Mr. Wen said only that Beijing understands India's aspiration to play an enlarged role in the United Nations, including on the Security Council.

Russia is the fifth and final member of the Security Council to send its leader to India in 2010, a sign of New Delhi's growing geopolitical and economic clout.

Russia and India agreed to cooperate in energy, trade and climate change, according to the joint statement. India wants greater participation in Russian oil and gas fields. They also plan to jointly develop nuclear and space research, it added.

Both nations also said the standoff with Iran in the United Nations over Tehran's nuclear program should be solved via dialogue.

They also agreed that North Atlantic Treaty Organization troops in Afghanistan should work more to stop heroin production and disrupt the drug trade.

A series of commercial agreements, involving Russian and Indian companies, will be signed separately.

Write to Tom Wright at tom.wright@wsj.com

Gov't buys into Sistema's Indian subsidiary

http://www.rbcnews.com/free/20101221113820.shtml

      RBC, 21.12.2010, Moscow 11:38:20.The Russian government has made a payment for Sistema Financial Corporation's subsidiary in India - telecommunications company Systema Shyam TeleServices Limited (SSTL), which provides communication services under the MTS

brand, for a total of $600m denominated in rupees, the corporation's press office announced today.

      The final details of the deal on the government's buying into SSTL will be revealed after the additional share issue. Meanwhile, the total share of Russian investors (Sistema and the Federal State Property Management Service) in SSTL's share capital is not expected to exceed 74 percent after the additional share issue.

      SSTL will most likely use the proceeds from the issue to expedite the development of the company's activities -specifically, by promoting SSTL's leadership in the sphere of mobile broadband Internet access coverage, expanding the mono-brand retail chain in the regions where the company has offices, and launching new offices.

      In September, Sistema's President Leonid Melamed announced that the corporation had considered purchasing the government's stake in SSTL in the future.

12:15AFK SISTEMA, ONGS TALKING DEAL INVOLVING BASHNEFT, RUSSNEFT, IMPERIAL ENERGY - SISTEMAhttp://www.interfax.com/news.asp

Russia, India sign defence, nuclear dealshttp://in.reuters.com/article/idINIndia-53700220101221

12:38pm IST

NEW DELHI (Reuters) - Russia and India signed agreements on Tuesday to work on a design project for a fifth-generation fighter aircraft and expand capacity at the nuclear power plant in Kudankulam.

The two countries agreed to build the third and fourth generating units for the nuclear power plant in India's southern state of Tamil Nadu, according to a statement.

The agreements were signed during a two-day visit by Russian President Dmitry Medvedev to India.

(Reporting by Alexei Anishchuk and Krittivas Mukherjee; writing by Paul de Bendern; editing by Malini Menon)

BrahMos, Russian NPO Mashinostroyenia sign protocolhttp://www.business-standard.com/india/news/brahmos-russian-npo-mashinostroyenia-sign-protocol/119807/on

Press Trust of India / New Delhi December 21, 2010, 14:56 IST

With an aim to maintain seamless supply of cruise missiles to the Indian armed forces, BrahMos Aerospace and Russian NPO Mashinostroyenia have signed a protocol to ensure there are no price escalation issues during the duration of the contract.

"Both sides have agreed to take necessary steps to secure the unconditional execution of the contracts for deliveries to the Indian armed forces. This makes it a first of its kind in the relationship between India and Russia that there would be no price escalation issue during the duration of the contract," BrahMos officials told PTI here.

In recent times, several defence contracts with Russia have faced problems after Moscow escalated the price of defence hardware mid-way like the increase in cost of aircraft carrier Admiral Gorshkov from $974 million to over $2.3 billion.

Under the agreement, both sides pledged their readiness to work towards developing hypersonic version of the missile to maintain its leadership in cruise missiles, they said.

BrahMos is planning to develop a hypersonic version of the 290 km-range cruise missile, which would travel at speeds above 5 Mach.

The protocol has been signed by NPO Mashinostroyenia Director General and Designer General A G Leonov and BrahMos Aerospace Chief A Sivathanu Pillai during the two day visit of Russian President Dmitry Medvedev to India.

The Russian side committed full support of its specialists to Indian industries for manufacturing elements of missiles which are presently not produced in India, officials said.

BrahMos Aerospace is a joint venture between India and Russia. Premier defence research organisation DRDO represents India and NPO Mashinostroyenia represents Russia in it.

The missile has already been inducted into the Indian Army and the Navy and the work on its air launched version is on.

India sets $20 bn Russia trade targethttp://indiatoday.intoday.in/site/Story/124052/Business/india-russia-trade-deal.html

Mail Today Bureau  | New Delhi, December 21, 2010 | Updated 08:40 IST

Commerce Minister Anand Sharma on Monday set an ambitious target of $20 billion for India-Russia trade by 2015 and said it was achievable provided all stakeholders put in concerted high efforts.

"Let us work together for a renewed thrust on bilateral trade and investment," the minister said at the plenary session of the fourth India-Russia forum on trade and investments.

The India-Russia trade level of less than $5 billion in 2009-10 is considered substantially below the potential that can be attained by two the large and rapidly growing economies. Sharma said that there is a need to expand the trade basket to include value added items in areas of applied technologies, IT, telecommunications, automobile components, gems and jewellery and energy.

India and Russia also signed a protocol on trade and investment, which seeks to increase co-operation in fertiliser and chemicals as well as oil and gas. It also mentions the sourcing of rough diamonds and coking coal by Indian firms from Russia. "There are ample options for investment in the two nations and both have to exploit it," he added. The session was attended by the deputy prime minister of the Russian Federation Sergei Ivanov, minister of economic development and trade of the Russian federation Elvira Nabiullina and business leaders from both nations.

Sharma said while the political responsibility for expanding ties with other countries is the primary task of governments, business to business relations have become a critical element in the overall architecture of interaction between countries in this age of increasingly de-regulated economies, private sector dynamism and globalisation.

Indian and Russian economies have natural areas of synergy and India is ready to share its experience and expertise in setting up information technology parks. "We need to focus the possibilities of cooperation in the IT sector as the scope is immense. It is up to the business communities to seize the initiative," he added.

He also highlighted the fact that India's quest for new facilities in the infrastructure sector including power, transportation, urban development and communications has truly taken off.

Over the next seven years time India will be spending $1.7 trillion to meet these requirements. The Centre has instituted friendly policies for inviting foreign direct investment (FDI) in these sectors and has also addressed many areas to promote public private partnership as a plank of infrastructure development.

Indian capital welcomes Russian president

http://www.itar-tass.com/eng/level2.html?NewsID=15800341

21.12.2010, 09.18

NEW DELHI, December 21 (Itar-Tass) - The Indian capital welcomed the Russian President, Dmitry Medvedev, who has arrived here on an official visit.

The central streets of New Delhi with lush greenery are adorned with garlands of flowers during the days of Medvedev’s visit. This is the tradition the Indian capital welcomes the highest foreign guests. The national flags of Russia and India are wavering on the avenues and squares.

The Taj Palace Hotel, one of the best in the Indian capital, which became the seat of Dmitry Medvedev during his stay in New Delhi, has also acquired a festive look. Taj Palace is a large modern building, built in a horseshoe shape around a large outdoor swimming pool - located in the diplomatic district of the capital. The atmosphere in the hotel combines traditional hospitality with a serious and businesslike attitude. The Russian head of state will hold a series of meetings with Indian officials here.

Dmitry Medvedev has for the first timed stopped at Taj Palace during his visit to New Delhi. The hotel’s General Manager Taljinder Singh said that the best presidential de luxe suite, in the decoration of which the traditional Indian style is combined with the modern hi-tech style, has been prepared for the Russian leader. According to Singh, a festive atmosphere has been created in Taj Palace on the occasion of the arrival of the distinguished guest from Russia. “It is a major privilege for us to receive the Russian president, this event will go down in the history of our hotel,” he said.

Negotiations between the Russian and Indian delegations will traditionally be held at the Hyderabad House. A unique architectural complex, it is located in the main street of New Delhi – Rajpath. The palace is known for holding a ceremony of the transfer of the command of the Indian armed forces from the British colonial authorities to the independent India administration. At that time it belonged to the Nizam (governor) of Hyderabad. The signing of the Indo-Russian documents and the final press conference of President Medvedev and Prime Minister Manmohan Singh will be held after talks at the palace.

Medvedev begins official visit to Indiahttp://english.ruvr.ru/2010/12/21/37312279.html

Dec 21, 2010 09:21 Moscow TimeRussian President Dmitry Medvedev has begun his official visit to India by meeting Indian Foreign Minister S.M. Krishna, who welcomed the Russian leader on behalf of the government and people of India. India’s topmost diplomat said that the Soviet Union and Russia have always been India’s good friends, and India does remember this. Dmitry Medvedev is scheduled to visit New Delhi, Agra and Mumbai, to meet businessmen, visit the Bollywood film factory, and enjoy the sight of one of the world wonders, the Taj Mahal mausoleum. Today Dmitry Medvedev is due to hold the main talks with Indian leaders and sign a number of agreements on cooperation in different areas.   

Russian President Begins India Visit http://www.rferl.org/content/russia_president_begins_india_visit/2254456.html

December 21, 2010 Russian President Dmitry Medvedev has arrived in New Delhi to start an official visit to India.

Medvedev was expected to hold talks today with Prime Minister Manmohan Singh and President

Prathibha Patil, among other senior Indian officials.

Reports say the Russian side is hoping to persuade India to renew its relationship with Russian military suppliers, including sealing a new deal on Russian-made fighter jets, and also to expand cooperation in nuclear power and trade, amid intensifying competition for the Indian market from European countries and the United States.

Reports say India, for its part, will be seeking to secure Russia's backing for its bid to acquire a permanent seat on a potentially enlarged United Nations Security Council.

From New Delhi, Medvedev, who is being accompanied by a delegation of Russian government officials and business people, is expected to travel on to Agra for a tour of the Taj Mahal, and then to the city of Mumbai.

compiled from agency reports

Medvedev to Talk Stealth Fighter in India http://www.themoscowtimes.com/business/article/medvedev-to-talk-stealth-fighter-in-india/427403.html

21 December 2010The Associated Press

NEW DELHI — Russia and India are expected to sign billions of dollars worth of defense and nuclear deals during the President Dmitry Medvedev’s visit here starting Tuesday.

An expected highlight of Medvedev’s trip will be a $30 billion agreement for the design and development of a stealth fighter jet to be inducted into the Indian air force, Russian Ambassador Alexander Kadakin said. The aircraft would be the equivalent of the U.S. Air Force’s F-22 Raptor.

“There is robust defense cooperation between the two countries,” said Vishnu Prakash, a foreign ministry spokesman. “It is not a mere buyer-seller relationship, but the two sides are looking at joint research and development and joint production.”

India and Russia are also expected to sign a general framework agreement for Russia to build two more nuclear power plants in Tamil Nadu in southern India, in addition to the two it is already building there.

 India and Russia are also likely to discuss liberalizing visa regimes as part of plans to double annual trade from the current $10 billion in the next five years. Indian business leaders have long complained about the difficulty of getting multiple-entry visas to Russia.

Medvedev, accompanied by key ministers and a large business delegation, will meet with Prime Minister Manmohan Singh on Tuesday.

Medvedev, Manmohan hold talks; nuke deals on agendahttp://www.ndtv.com/article/india/medvedev-manmohan-hold-talks-nuke-deals-on-agenda-73841

NDTV Correspondent, Updated: December 21, 2010 11:56 IST

New Delhi:  Visiting Russian President Dimitry Medvedev and Prime Minister Manmohan Singh are holding talks in New Delhi where deals worth billions of dollars are expected in civil nuclear energy and defence.

Like America and France,  Moscow has also expressed concerns with the Nuclear Liability Law which also holds suppliers responsible for an accident.

The Russians are currently building two reactors in Tamil Nadu and are expected to sign a general framework agreement for two more nuclear power plants in the state.

The big defence agreement on the table is a deal for the 5th generation stealth fighter aircraft which the two countries are jointly developing. The deal is worth $30 billion. Agreements are also expected in the space sector.The Russian President arrived in India earlier today.

Medvedev to visit Taj Mahal Wednesday http://mangalorean.com/news.php?newstype=local&newsid=212841

Agra, Dec 21 (IANS) Russian President Dmitry Medvedev will arrive here Wednesday morning to visit the Taj Mahal, an official said.

"The programme is confirmed. He is coming at around 11 a.m. and will leave at 2 p.m. from Kheria airport by a special plane to Mumbai," Additional District Magistrate (Protocol) Alok Shekhar told IANS.

A Russian advance team of security personnel has been camping here for the past two days to oversee security arrangements. It has procured its own vehicles from Russia.

Team members had discussions with district authorities and inspected the route from Kheria airport to the 17th century monument of love.

Medvedev arrived in New Delhi early Tuesday morning on a two-day visit to India during which the two sides are expected to sign over a dozen agreements, including a key pact on Moscow building more nuclear reactors in India.

India, Russia to sign defence dealshttp://indiatoday.intoday.in/site/Story/124060/India/india-russia-to-sign-defence-deals.htmlDipanjan Roy Chaudhury  | New Delhi, December 21, 2010 | Updated 10:11 IST

The visit is unlikely to attract the hype associated with Barack Obama's visit to India. But Russian President Dmitry Medvedev's trip to India is set to eclipse the US President's in strategic significance, if not show.

While Obama went back without any big-ticket defence deals being signed, Medvedev - who arrives in New Delhi on Monday night - will oversee the signing of a big-ticket pact between the Cold War allies for joint production of a fifth-generation fighter aircraft.

This will be just one of a slew of agreements to be stitched up between India and Russia, paving the way for military, nuclear and space cooperation designed to meet India's strategic and energy requirements.

Medvedev's trip - which will cement Moscow's status as the number one strategic partner of Delhi despite India's growing ties with the US - will wound up visits by all Security Council leaders to India in one calendar year, the first such instance in the country's diplomatic history.

The Russian President's visit coincides with the 10th year of the establishment of a bilateral strategic partnership between the allies. The partnership is set to gain momentum when more than 15 pacts are signed on Tuesday.

Over the next one-and-a-half years, the two sides will conclude other pacts on the Fifth Generation Fighter Aircraft (FGFA) that will arm India with 250-300 advanced fighter jets at a cost of $ 35 billion.

India is also seeking state-of-the-art technology to boost its space sector. Moscow and New Delhi are planning to establish a joint venture for production of ground equipment for users of the Russia-made GLONASS space navigation system, equivalent of the US's GPS. The Su-30MKI multi-role fighters supplied by Russia to the Indian Air Force are already equipped with GPS and GLONASS receivers for navigation.

New Delhi's participation in GLONASS is strategically significant.

India's goal to be a global military power is dependent on access to satellite navigation.

Some variants of BrahMos and many future weapons will depend on satellite navigation for guidance and GLONASS is the only option for India.

Under pacts signed in December 2004 during the Indo-Russia summit in New Delhi and Prime Minister Manmohan Singh's visit to Moscow in 2006, both sides agreed to develop new-generation GLONASS-K navigation satellites and launch them from the space centre in Andhra Pradesh.

Russia is also eyeing a bigger role in India's nuclear sector.

Moscow played a key role in ending New Delhi's nuclear isolation and backs India's ambitions in the nuclear energy sector. It will further boost its presence in India's $ 150 billion nuclear market when it signs agreements for two more reactors at Tamil Nadu's Kundankulam complex.

Last week, Russian envoy to India Alexander M. Kadakin demanded that the nuclear liability law should be akin to the convention on supplementary compensation (CSC) that India singed in Vienna. "As I understand, the liability law is not similar to the CSC. International law should have precedence over domestic law," Kadakin noted but claimed the law will not be a roadblock in the path of cooperation.

Medvedev will also seek clarification on Haripur (in West Bengal) that has been allotted to Russia for another nuclear plant complex. Amid stiff local opposition, there are reports New Delhi might offer an alternative site to Moscow.

Among other key items on the agenda is the Af-Pak situation. In an interview to the Russian media here on Monday, external affairs minister S. M. Krishna indicated this. "The discussions on international issues will include the situation in the Afghanistan-Pakistan region that impacts the security of both India and Russia.

We need to understand why terrorist infrastructure in the region has continued to survive despite the best efforts of the international community," Krishna said.

India also views Russia as a hedge to China and an ally in Afghanistan once Western troops withdraw. Russia's participation in the recent East Asia summit could be interpreted as an attempt to balance China's assertiveness in in Southeast Asia.

December 21, 2010, 10:57 AM IST

India Says ‘Dobro Pozhalovat’ to Medvedevhttp://blogs.wsj.com/indiarealtime/2010/12/21/india-says-dobro-pozhalovat-to-medvedev/

By Tom Wright

During the Cold War, Russia and India were close neighbors, with New Delhi backing Moscow against China. Today, few Indians would know that “Dobro Pozhalovat” means “Welcome” in Russian.

In the last few years, Russia’s special friendship with India has been tested as New Delhi attracts a number of fresh-faced suitors, including China and the United States, who are hoping to get a piece of its fast economic growth.

Russian President Dmitry Medvedev, who arrived in New Delhi just past midnight today, is here for two days to lobby for a continuation of tight historic bonds, and, most importantly for Russia, close military ties.

Mr. Medvedev is the last leader from the five permanent members of the U.N.’s Security Council to visit India this year.

He arrives just after the departure of Chinese Premier Wen Jiabao, who was in New Delhi for three days last week.

Mr. Wen announced that China hopes to grow its trade with India to $100 billion by 2015 through the export of manufactured goods like telecoms and power-producing equipment. Russia and India have set a target of $20 billion in two-way trade by the same date.

Even to reach that smaller number, Russia is betting on large exports of military equipment and nuclear technology, two areas where it remains globally competitive.

Russia was India’s military supplier of choice during the Cold War. Russian equipment accounts for 70% of all of India’s military hardware today.

But India is looking to diversify its stock and is courting the U.S., France, U.K. and others as suppliers. The U.S. and U.K., during official visits this year, inked multi-billion-dollar deals to sell aircraft to the Indian Air Force.

Now, Mr. Medvedev will be lobbying for India to choose Russia for an $11 billion contract to supply 126 fourth-generation fighter aircraft, which New Delhi will award sometime next year.

Russia’s MiG-35 fighter jet is competing against planes made by Boeing Co., Lockheed Martin Corp, France’s Dassault Aviation and a consortium of European bidders.

To give it an edge, Russia’s military has been highlighting its long-standing military friendship with India and the fact it has always shared technology at a time when others, including the U.S., shunned New Delhi.

“Russia is ready to provide its newest weapons, which, I underline, are unmatched in the world,” a top Russian commander pledged on a visit to New Delhi in September.

Russia is helping India build two nuclear power plants in Tamil Nadu, which are slated to begin operations in 2011. India and Russia are also planning to jointly develop a fifth-generation fighter jet, which could come off the production lines by 2020, and Mr. Medvedev might sign agreements on this today.

For its part, India is likely to leverage its massive military budget ($32 billion this year, almost double five years ago) to get better access to Russia’s abundant oil and gas supplies.

India’s state-run Oil and Natural Gas Corp. wants to take part in the development of Russia’s massive Trebs and Titov oil and gas in northwest Russia. An agreement on this today would show Russia is serious about its India relationship.

Medvedev to seek to fend off West in Indiahttp://in.reuters.com/article/idINIndia-53699420101221

11:27am IST

By Alexei Anishchuk and Paul de Bendern

NEW DELHI (Reuters) - Russian President Dmitry Medvedev will lobby hard during a visit to India on Tuesday for the former Cold War ally to stay loyal to Russian-made fighter jets and nuclear reactors, rather than those offered by the West.

Russia has been India's close economic and political partner since Soviet days, and monopolised India's defence market for decades, but New Delhi wants to reduce its reliance on one country to reflect its growing clout on the world stage.

Leaders from Britain, the United States, France and China -- along with Russia, the permanent members of the United Nations Security Council -- have all visited India in the last six months, securing contracts worth a total of around $50 billion.

Medvedev, accompanied by a large delegation of business leaders, is to hold talks with Prime Minister Manmohan Singh and ruling Congress party chief Sonia Gandhi on Tuesday in New Delhi, then visit the Taj Mahal in Agra and Mumbai on Wednesday.

"It is well known that we want to diversify our basket of suppliers for our strategic areas. We will always have close ties with Russia but they are no longer the only game in town," said a senior Indian government official, who declined to be named.

Russia sees India as a counterweight to China and a potential ally in Afghanistan. India's growing ties with the United States, underscored by a landmark civil nuclear deal, has made Russia ill at ease.

New Delhi is likely to seek unequivocal backing from Russia for its ambition to secure a permanent seat on an enlarged U.N. Security Council, following statements of support from Paris and Washington in recent months.

CONTRACTS

Medvedev is likely to secure a long-awaited contract with India on jointly developing 250-300 fifth generation fighter aircraft over 10 years. The contract amount is unknown, but unofficially said to be around $35 billion.

He may have a tough task convincing India to strike more arms deals following delays to the delivery of some Russian projects, including the Admiral Gorshkov heavy aircraft carrying cruiser.

Moscow-based defence analysts Cast say Russia has nearly tripled the price, and delayed delivery of the cruiser by four years, since signing the original contract in 2004.

Up for negotiation during Medvedev's visit will be a deal for a third site for a Russian-built nuclear power plant.

"Energy is one area where Russia will be the most important partner for India both in terms of conventional and non conventional energy.... Russians are one of our main suppliers of nuclear power plants," said Lalit Mansingh, former Indian foreign secretary.

Russia is keen to continue supplying technology and expertise to energy-hungry India as it plans to add 63,000 MW of nuclear power by 2032 to support its economic growth.

Behind the rhetoric of expanding ties with its fellow BRIC economy -- the term used to group emerging powers Brazil, Russia, India and China -- bilateral trade is eclipsed by Russia's booming economic ties with the European Union and China.

The Kremlin said trade with India will total $10 billion this year, while official statistics show Russia's trade with the European Union stood at $246 billion in the first 10 months of 2010, and trade with China was $47.5 billion in the same period.

India and Russia hope to boost bilateral trade to $20 billion within five years.

(Additional reporting by Krittivas Mukherjee and Henry Foy; Editing by Daniel Magnowski)

Kremlin to pitch fighters, nuclear deal in Indiahttp://in.reuters.com/article/idINIndia-53671720101221

9:12am IST

REUTERS - Russian President Dmitry Medvedev arrived in India on Tuesday for a two-day visit, seeking to sign nuclear power and defence deals worth billions of dollars with its historically close trade and diplomatic partner.

A key agreement expected for signature is for the joint production of a fifth generation fighter aircraft with stealth capacities.

Following are details of the likely major talking points during the Russian President's visit:

AFFIRMING THE RELATIONSHIP

The core focus of Medvedev's visit, following trips from the leaders of Britain, the United States, France and China to India in recent months, will be to convince New Delhi of Moscow's importance despite closer Indian ties with other Western powers.

India's growing ties with the United States, underscored by a civil nuclear deal, has made Russia ill at ease as New Delhi seeks to reach out to other countries to modernise its military inventory of mostly ageing Russian-made arms and fighter jets.

But due to a history of close co-operation since Soviet days and as members of both the G20 and the emerging group of BRIC nations alongside China and Brazil, India and Russia have developed a close working relationship on global issues.

India has strategic and security worries over Afghanistan, but a lack of direct influence. It sees Russia as an important partner in buffering Chinese influence in the country and across the region, including its nuclear-armed neighbour Pakistan, through the three way Russia-India-China (RIC) dialogue.

While Medvedev will hope for signs that the Indo-Russian relationship is still strong, New Delhi is likely to seek unequivocal backing for its ambition to secure a permanent seat on an enlarged U.N. Security Council, following statements of support from Paris and Washington in recent months.

NUCLEAR POWER

Russia is keen to continue suppling technology and expertise to energy-hungry India as it plans to add 63,000 megawatts of nuclear power by 2032 to fuel its economic growth.

Russia, the world's largest energy producer, is competing with France and the United States to meet the rising demand.

U.S. firms are still reluctant to enter the Indian market due to what they see as restrictive liability regulations passed by lawmakers in New Delhi in August, allowing state-backed Russian and French suppliers to capitalise on a lucrative new market.

In March, during a visit by Prime Minister Vladimir Putin, Russia agreed to supply up to 16 reactors to India. Russian suppliers are likely to push for further deals during this visit, following a deal this month estimated at 7 billion euros ($9.3 billion) between New Delhi and French nuclear power group Areva for at least two reactors.

DEFENCE

As India's close economic and political partner since Soviet days, Russia monopolised India's defence market for decades, providing about 70 percent of the country's military equipment.

But India, one of the world's biggest arms importers, has in recent years sought to diversify its order book as it looks to overhaul its arsenal with an eye on China, awarding contracts to U.S., European and Israeli firms.

However, India has to award billions of dollars in maintenance contracts for the Russian planes, tanks, ships and missile systems, meaning Moscow remains a crucial defence partner. And the two sides are jointly developing fighter jets and missiles, including the recently-tested Brahmos supersonic cruise missile.

Last year, India and Russia agreed two military pacts, including a 10-year deal on weapons, aircraft and maintenance contracts potentially worth at least $5 billion.

Top of Moscow's wish list in New Delhi is an $11 billion contract for 126 fighter jets, and Medvedev is likely to lobby hard for India to select the Russian-made MiG-35 in the face of bids from French, U.S. and other European firms.

But New Delhi has complained of delays in the supply of Russian defence equipment, including a refitted aircraft carrier, resulting in huge cost overruns, affecting military planning and damaging Russia's reputation as India's first-choice supplier.

TRADE

Bilateral trade between India and Russia was close to $7.5 billion in 2010. Both sides agreed to a target of $20 billion in five years' time, dwarfed by Russia's trade with Asian rival China of $47.5 billion in the first 10 months of this year.

Trade links are likely to feature prominently during the visit, following a weekend Indian foreign ministry statement that said Indo-Russian trade relations were "yet to attain their potential".

Medvedev will be accompanied by a large delegation of business leaders, while Indian ministry officials have outlined that cooperation in the IT and pharmaceutical sectors will be specifically targeted in talks.

(Compiled by Henry Foy; Editing by Daniel Magnowski)

FACTBOX - Major India, Russia talking pointshttp://in.reuters.com/article/idINIndia-53697820101221

9:12am IST

REUTERS - Russian President Dmitry Medvedev arrived in India on Tuesday for a two-day visit, seeking to sign nuclear power and defence deals worth billions of dollars with its historically close trade and diplomatic partner.

A key agreement expected for signature is for the joint production of a fifth generation fighter aircraft with stealth capacities.

Following are details of the likely major talking points during the Russian President's visit:

AFFIRMING THE RELATIONSHIP

The core focus of Medvedev's visit, following trips from the leaders of Britain, the United States, France and China to India in recent months, will be to convince New Delhi of Moscow's importance despite closer Indian ties with other Western powers.

India's growing ties with the United States, underscored by a civil nuclear deal, has made Russia ill at ease as New Delhi seeks to reach out to other countries to modernise its military inventory of mostly ageing Russian-made arms and fighter jets.

But due to a history of close co-operation since Soviet days and as members of both the G20 and the emerging group of BRIC nations alongside China and Brazil, India and Russia have developed a close working relationship on global issues.

India has strategic and security worries over Afghanistan, but a lack of direct influence. It sees Russia as an important partner in buffering Chinese influence in the country and across the region, including its nuclear-armed neighbour Pakistan, through the three way Russia-India-China (RIC) dialogue.

While Medvedev will hope for signs that the Indo-Russian relationship is still strong, New Delhi is likely to seek unequivocal backing for its ambition to secure a permanent seat on an enlarged U.N. Security Council, following statements of support from Paris and Washington in recent months.

NUCLEAR POWER

Russia is keen to continue suppling technology and expertise to energy-hungry India as it plans to add 63,000 megawatts of nuclear power by 2032 to fuel its economic growth.

Russia, the world's largest energy producer, is competing with France and the United States to meet the rising demand.

U.S. firms are still reluctant to enter the Indian market due to what they see as restrictive liability regulations passed by lawmakers in New Delhi in August, allowing state-backed Russian and French suppliers to capitalise on a lucrative new market.

In March, during a visit by Prime Minister Vladimir Putin, Russia agreed to supply up to 16 reactors to India. Russian suppliers are likely to push for further deals during this visit, following a deal this month estimated at 7 billion euros ($9.3 billion) between New Delhi and French nuclear power group Areva for at least two reactors.

DEFENCE

As India's close economic and political partner since Soviet days, Russia monopolised India's defence market for decades, providing about 70 percent of the country's military equipment.

But India, one of the world's biggest arms importers, has in recent years sought to diversify its order book as it looks to overhaul its arsenal with an eye on China, awarding contracts to U.S., European and Israeli firms.

However, India has to award billions of dollars in maintenance contracts for the Russian planes, tanks, ships and missile systems, meaning Moscow remains a crucial defence partner. And the two sides are jointly developing fighter jets and missiles, including the recently-tested Brahmos supersonic cruise missile.

Last year, India and Russia agreed two military pacts, including a 10-year deal on weapons, aircraft and maintenance contracts potentially worth at least $5 billion.

Top of Moscow's wish list in New Delhi is an $11 billion contract for 126 fighter jets, and Medvedev is likely to lobby hard for India to select the Russian-made MiG-35 in the face of bids from French, U.S. and other European firms.

But New Delhi has complained of delays in the supply of Russian defence equipment, including a refitted aircraft carrier, resulting in huge cost overruns, affecting military planning and damaging Russia's reputation as India's first-choice supplier.

TRADE

Bilateral trade between India and Russia was close to $7.5 billion in 2010. Both sides agreed to a target of $20 billion in five years' time, dwarfed by Russia's trade with Asian rival China of $47.5 billion in the first 10 months of this year.

Trade links are likely to feature prominently during the visit, following a weekend Indian foreign ministry statement that said Indo-Russian trade relations were "yet to attain their potential".

Medvedev will be accompanied by a large delegation of business leaders, while Indian ministry officials have outlined that cooperation in the IT and pharmaceutical sectors will be specifically targeted in talks.

(Compiled by Henry Foy; Editing by Daniel Magnowski)

Mofaz asks Russia not to sell weapons to Israel's enemieshttp://www.ynetnews.com/articles/0,7340,L-4001899,00.html

Published: 12.20.10, 15:23 / Israel News

The chairman of the Knesset Foreign Affairs and Defense Committee, MK Shaul Mofaz, met with his Russian counterpart to examine options for military and high-tech cooperation.

"Israel's comparative advantage must be maintained," Mofaz said, calling on Russia to refrain from selling S-300 missiles to the state's enemies. For his part, MP Mikhail Margelov said Iran should be allowed to achieve peaceful nuclear aims. (Roni Sofer)

PM Putin to unveil replacement for destroyed Georgia WWII monumenthttp://en.rian.ru/russia/20101221/161864376.html03:43 21/12/2010

Russian Prime Minister Vladimir Putin will attend on Tuesday in Moscow the unveiling ceremony of a World War II memorial to replace a monument blown up in the Georgian city of Kutaisi last year.

The ceremony will be also attended by Moscow Mayor Sergei Sobyanin, former Georgian Prime Minister Zurab Nogaideli, former Georgian Parliament speaker Nino Burdzhanadze and Russian and Georgian WWII veterans.

The 46-meter Soviet-era memorial in Kutaisi, Georgia's second-largest city, was demolished last year on December 19 to make space for a new parliamentary building.

Russia denounced the demolition as an "act of vandalism" and accused Georgian authorities of a "symbolic attack" on the memory of Georgians who died in the war.

The new monument, to go up in Moscow's Poklonnaya Gora memorial park, will feature two Soviet soldiers, Georgian Meliton Kantaria and Russian Mikhail Yegorov, who hoisted a Soviet flag over the Reichstag during the Battle of Berlin in May 1945.

The two bronze statues, with the flag in their arms, will stand in front of a smaller replica of the Kutaisi monument.

Russia initially wanted to build a replica of the monument, but Merab Berdzenishvili, who designed the original in 1981, said the blueprints and miniatures have been lost.

MOSCOW, December 21 (RIA Novosti)

Putin to attend unveiling of new war memorial in Moscow

http://www.itar-tass.com/eng/level2.html?NewsID=15800663&PageNum=0

20.12.2010, 21.21

MOSCOW, December 20 (Itar-Tass) -- Prime Minister Vladimir Putin will attend the unveiling of a new war memorial “We were together in the struggle against fascism” at Moscow’s Poklonny Hill on Tuesday, December 21.

Moscow Mayor Sergei Sobyanin, Georgian opposition leaders Nino Burdzhanadze and Zurab Nogaideli, Russian and Georgian war veterans, scientists, cultural workers and art people will also take part in the ceremony.

The design of the monument was selected in the middle of July 2010, but Moscow’s architectural commission slightly altered the shape of its base and its rear side, increased the area in front of the monument, and added a symbol of the war memorial demolished in Kutaisi, while preserving the overall concept.

The winning project was presented by Salavat Shcherbakov and approved by the broad of trustees and the public council of the fund for the preservation and restoration of Great Patriotic War monuments.

The monument shaped as a pyramid topped by the figures of Sergeant Yegorov and Junior Sergeant Kantaria hoisting a red flag over the Reichstag. Below them are soldiers representing all of the former Soviet republics.

According to fund head Viktor Seliverstov, over 66,000 people voted for this project.

South Ossetia to take Georgia’s currency out of circulation

http://georgiandaily.com/index.php?option=com_content&task=view&id=20702&Itemid=65

December 21, 2010

By BNO News

MOSCOW, RUSSIA (BNO NEWS) -- South Ossetia, a disputed former part of the Georgian republic, on Monday announced that it will remove the Georgian currency from circulation beginning on January 10, the RIA Novosti news agency reported.

"The administration of South Ossetia's Leningorsk region has taken the decision to take the Georgian currency out of circulation," South Ossetia's information committee said.

The disputed state decided to remove the Georgian Lari and will instead rely on the Russian ruble. The transition will not result in large problems as currently the Georgian Lari and the Russian ruble are both used in South Ossetia.

South Ossetia, along with neighboring Abkhazia, consider themselves independent nations but are only recognized by Russia, Nicaragua and Venezuela. Georgia still considers the region part of its country, as most of the world's governments do.

Russia recognized South Ossetia and Abkhazia as independent states two weeks after a five-day war with Georgia in August 2008. Georgian forces had attacked South Ossetia in a failed attempt to bring it back under central control, after which Russia deployed its troops to protect the disputed area.

Hundreds of Russian, Georgian, South Ossetian and Abkhazian soldiers were killed during the violent conflict, as well as more than 160 civilians.

URL: http://wireupdate.com/

Kaczynski surprises Russiahttp://www.kyivpost.com/news/russia/detail/93275/

Today at 11:02 | Interfax-Ukraine Russia has expressed skepticism about former Polish Prime Minister Jaroslaw Kaczynski's allegations that the body sent by the Russian authorities to Poland is not that of his brother, who was killed in a plane crash near Smolensk on April 10.

"It's not true," an informed source in Moscow told Interfax on Tuesday.

"Polish officials were present at all stages of the identification," the source said.

Some Western media earlier reported that Jaroslaw Kaczynski doubts that the body buried in Krakow's Wawel Castle is that of his brother Lech Kaczynski. Jaroslaw Kaczynski told reporters he had identified his brother by a scar on his shoulder, but the body sent to Poland from Russia did not resemble that of his brother.

Jaroslaw Kaczynski has not yet decided whether he will seek for the remains to be exhumed.

The plane carrying Polish President Lech Kaczynski crashed near Smolensk on April 10, 2010. All the 96 people on broad were killed. The high-ranking Polish officials were en route to the mourning events held in Katyn, where NKVD officials killed Polish servicemen in 1940.

Read more: http://www.kyivpost.com/news/russia/detail/93275/#ixzz18jgeHcHp

Belarus parliament to ratify 17 CES agreements

http://www.itar-tass.com/eng/level2.html?NewsID=15801055

21.12.2010, 12.18

MINSK, December 21 (Itar-Tass) -- The CIS Commission on International Affairs and Ties of the Blarussian parliament on Tuesday begins considering a package of 17 agreements on the creation of a common economic space (CES). “To explain the main provisions of the agreements, representatives of the Ministries of Economy, Finances, Energy, Transport and Agriculture, as well as the National Bank and the Petrochemistry Concern were invited to the meeting of the parliamentary commission,” ITAR-TASS learnt at the Belarussian parliament.

At the same time, according to the parliament, after consideration at the profile commission the package of agreements will be submitted to the Council of the Chamber of Representatives (the lower chamber of the Belarussian parliament) which will submit the documents for ratification. With account of the fact that the autumn session of the Belarussian parliament is coming to an end on Wednesday, it is not ruled out that the package of agreements will be ratified on that day. Otherwise, as is expected, an extraordinary session of the Belarussian parliaments will be convened.

The package of CES agreements was signed by Presidents of Belarus, Russia and Kazakhstan at a meeting of the EurAsEC Interstate Council in Moscow on December 9. Minsk attaches great importance to its ratification, as it is connected with the issue of duties on supplies of Russian oil to Belarus.

Lukashenko urges Moscow not to downplay Belarus' role in World War II victoryhttp://www.kyivpost.com/news/russia/detail/93271/

Today at 10:33 | Interfax-Ukraine Belarusian President Alexander Lukashenko has urged Moscow to be more accurate in assessing the role of Belarus in the Soviet Union's victory in the Great Patriotic War.

Opinions can be heard in Russia that the role of Belarus in defeating the enemy was not as high it is perceived in Belarus, he said.

"One should be very cautious about such statements. They hurt us, we are sensitive to this," Lukashenko said.

He said that for him as the head of state, partnership relations with Russia are nevertheless a strategic priority.

"I will endure and survive any hardships so that we could be together," Lukashenko said.

Read more: http://www.kyivpost.com/news/russia/detail/93271/#ixzz18jbSaXLw

Russian photo correspondent arrested in Minsk begins hunger strikehttp://en.rian.ru/world/20101221/161866670.html10:39 21/12/2010

A photographer from a St. Petersburg newspaper sentenced to 15-day jail term in Belarus for participating in Sunday's opposition riots in Minsk has declared a hunger strike and has demanded a meeting with the Russian ambassador, Ekho Moskvy radio station said on Tuesday.

Thousands of Belarusians were brutally dispersed in clashes with police late on Sunday following the presidential elections, when opposition protestors tried to storm the parliament after preliminary results showed strongman Alexander Lukashenko had won his fourth consecutive term as president.

Alexander Astafyev, the photographer of My District newspaper told Ekho Peterburga (St. Petersburg's Echo) radio station he had not ingested anything except for tap water and snow since 4 p.m. (local time) December 19.

Astafyev has demanded to meet the Russian ambassador to Belarus.

The Ekho Moskvy radio station reported earlier some 600 people were detained by police at the opposition rally, including Russian journalists. Many of them were brutally beaten.

Russia Today TV channel's cameramen Anton Kharchenko and Viktor Filyaev were injured in the clash as well as REN TV and Russian state-run First channel's correspondent and cameraman.

The New York Times' John Hill also received several injuries during the Belarus opposition riots.

At least five presidential candidates were arrested following the protests. One of them, Vladimir Neklyaev, was severely beaten and taken to a police station directly from his hospital bed where he received treatment for a head injury.

MOSCOW, December 21 (RIA Novosti)

Kremlin Says No Meddling in Belarus http://www.themoscowtimes.com/news/article/kremlin-says-no-meddling-in-belarus/427398.html

21 December 2010By Nikolaus von Twickel

President Dmitry Medvedev on Monday ignored outrage from European leaders over weekend Belarussian presidential elections by calling the vote and the ensuing violence in Minsk a "domestic affair."

"The elections … and what is happening there definitely is an internal matter of our neighbor state," Medvedev told reporters after talks with Latvian President Valdis Zatlers.

Violence rocked the capital, Minsk, early Monday after early official results gave President Alexander Lukashenko a landslide victory of some 80 percent.

Riot police violently dispersed at least 10,000 protesters on the capital's Independence Square who claimed the vote was rigged and called for Lukashenko to step down. Seven of the nine opposition presidential candidates were taken into custody, two of them after being hospitalized with injuries.

Lukashenko said Monday that 639 people were arrested as they rallied and later attempted to break into the parliament building.

In contrast to Medvedev, EU foreign policy chief Catherine Ashton condemned the beating of protesters and demanded the immediate release of those arrested.

"Last night’s events do not reflect the relative progress we had noted so far in the pre-election period," Ashton said in a statement.

Jerzy Buzek, president of the European Parliament, called the brutal beating of one of the presidential candidates, Vladimir Neklyayev, "disgraceful" and demanded that Lukashenko immediately halt his police forces.

"This incident sheds the worst possible light on the presidential elections," he said in a statement.

Neklyayev, a front-runner of the nine opposition candidates, was severely beaten when he led a column of supporters to the protest. He was hospitalized, but aides later said plainclothes security agents carried him away from his hospital bed.

Lukashenko told reporters Monday that Neklyayev and opposition candidate Vitaly Rymashevsky, who was also injured, had been hiding from investigators in the hospital.

"They wanted to sit it out in the hospital," he said, Interfax reported.

The president also mocked the two men's beatings by police.

"They still wanted to become president. What president squeals to the world after being punched in the face? You must suffer," he was quoted as saying.

Also beaten and arrested was opposition candidate Andrei Sannikov, who became the next-highest vote getter after Lukashenko, tallying 2.5 percent, according to official figures.

Sannikov's wife, journalist Irina Khalip, was pulled out of her car and beaten while she was speaking live on Ekho Moskvy radio.

Among the other detained journalists was former Moscow Times reporter Maria Antonova. She was arrested as she tried to return to her hotel early Monday after covering the nighttime rallies for Agence France-Presse.

She was released Monday afternoon after spending the night in detention, without being given an explanation for her arrest, AFP bureau chief Stuart Williamson said in e-mailed comments.

The violence throws into doubt a feeble rapprochement between Europe and Lukashenko, who has ruled Belarus with an iron fist since 1994. The EU in 2008 suspended a travel ban on Belarussian officials, including Lukashenko, and accepted Minsk into the Eastern Partnership, a program for closer cooperation with the bloc's eastern neighbors.

Elmar Brok, a prominent member of the European Parliament for German Chancellor Angela Merkel's Christian Democrats, called for Belarus to be suspended from the program.

"We cannot allow Minsk to slow down the process," he told The Moscow Times.

But Brok said it was too early to discuss other sanctions, like a renewal of the travel ban or the freezing of officials' bank accounts.

"We have to keep the door open," he said.

His comments were echoed by Andreas Gross, a Swiss Social Democrat lawmaker and member of the Council of Europe’s Parliamentary Assembly, who said the council should not close its information bureau in Minsk.

"Our presence can encourage the opposition and enables us to monitor events," he said by telephone from Bern.

Belarus is the only European country apart from the Vatican that is not member of the council, Europe's oldest human rights organization. The Council of Europe opened a so-called Information Point in Minsk in 2009, in the wake of Belarus' improving relations with Europe.

But Minsk rejected an offer from the council to send observers for the presidential elections. "They brusquely refused," Gross said.

The vote nevertheless pitted election monitors from the Russian-led Commonwealth of Independent States, or CIS, and the broader

Organization for Security and Cooperation in Europe, or OSCE, against each other.

The CIS observers found that the vote was free and fair. "We declare the elections legitimate. Without any doubts," CIS executive secretary Sergei Lebedev told Interfax.

The OSCE observer mission's head, Geert-Hinrich Ahrens, said in a statement  on the organization's web site that a positive assessment was impossible "in light of the flawed vote count and the authorities' heavy-handed response to yesterday's demonstrations."

But Konstantin Zatulin, a senior State Duma deputy for United Russia, said the elections were "more or less normal" and blamed the opposition for the violence.

"I expect that President Medvedev will soon congratulate his colleague Lukashenko for his victory," he told The Moscow Times.

Zatulin, who is first deputy chairman of the Duma's CIS Committee, was adamant that the protests should not be linked to the elections.

"They started after the election was over," he said, adding that the opposition made a grave mistake by letting the "aggressive" protests get violent.

It is hardly acceptable to attempt storming government buildings," he said

Zatulin said he did not think that Moscow's relations with Minsk, which fell to all-time lows during Lukashenko's recent rapprochement with Europe, would remain smooth. "This does not mean that we are fully satisfied with our dialogue with Lukashenko," he said.

But Oleg Kozlovsky, a leading member of Russia's Solidarity opposition movement, which took part in the protests, said Lukashenko was losing a lot of public support.

"The fact that some 50,000 people took to the streets shows that Lukashenko does not have the popularity reflected in the official election results," he said by telephone.

Kozlovsky acknowledged that the protesters had started the violence and given police a reason to crack down. He said it was too early to say whether this happened "because of the work of agent provocateurs from the security services or because of hot-headed protesters."

Russia to bid to jointly build nuclear power plant in Egypthttp://english.ruvr.ru/2010/12/21/37308701.html

Dec 21, 2010 01:43 Moscow Time

Russia will participate in an international tender to build a nuclear power plant in Egypt, said Russian Industry and Trade Minister Victor Khristenko while on a visit to Cairo.

The Russian side voiced readiness to grant credit for the construction of the station, supervise its initial work and also to train Egyptian specialists.

The US, France, Japan, South Korea and China are also after the lucrative deal.

Go Russia Group Denied Registration http://www.themoscowtimes.com/news/article/go-russia-group-denied-registration/427365.html

21 December 2010The Moscow Times

The Justice Ministry has refused to register Go Russia, a public movement created by senior State Duma Deputy Gennady Gudkov with the stated goal of supporting President Dmitry Medvedev's modernization effort, RIA-Novosti reported Monday.

After the movement was established in September by Gudkov, a member of the Just Russia party, the ruling United Russia party almost immediately established a movement with the same name and stated goals. The move sparked a scandal between the two pro-Kremlin parties.

The Justice Ministry has registered United Russia's movement as a regional public organization, with the State Duma Speaker Boris Gryzlov being its formal head.

Both movements were named after 2009 Medvedev's article arguing for the modernization of Russia's economy.

The ministry refused to register the Just Russia's Go Russia on Dec. 6, citing irregularities in the submitted documents.

Gudkov said Monday that the documents had been checked by experienced legal specialists and the registration denial was groundless, RIA-Novosti reported.

He said he would appeal the ministry's decision in court.

Moscow Agrees to ‘Stratgey 31 ′ Rally After Split http://www.theotherrussia.org/2010/12/20/moscow-agrees-to-stratgey-31-rally-after-split/

December 20th, 2010 • Related • Filed Under

The Moscow city authorities have given permission for a group of human rights activists to hold a rally in defense of free assembly on Triumfalnaya Square on December 31, Kasparov.ru reports.

Lev Ponomarev, head of the movement For Human Rights, said on Monday that the mayor’s office had approved an application he had filed jointly with rights advocates Lyudmila

Alexeyeva, Oleg Orlov, Valery Borshchev, Roman Dobrokhotov, Khimki Forest activist Yevgenia Chirikova, and others.

For the past year and a half, opposition and rights advocates have been holding rallies in defense of free assembly on Moscow’s Triumfalnaya Square on the 31st of each month with that date under the Strategy 31 campaign. However, the last rally in October was split in two when the three original organizers – Alexeyeva, Eduard Limonov, and Konstantin Kosyakin – fell into irreconcilable disagreement.

A recent meeting between the three organizers ended in similar disagreement. In the end, Alexeyeva and the aforementioned rights advocates have chosen to hold their own rally, while Limonov and Kosyakin will hold another rally at the same time and place in conjunction with former Soviet dissident Vladimir Bukovsky.

The oppositionists’ disagreement in October arose over the number of participants that the city gave permission to attend the rally. After conferring with Alexeyeva, the Moscow mayor’s office approved a rally for 800 people – short of the 1500 usually present at Strategy 31 events, leading Limonov to defect.

It was not immediately clear how many people would be allowed to attend the December 31 rally headed by Alexeyeva and Ponomarev or whether permission would be granted to Limonov and Kosyakin for their version of the rally.

Baturina, Anisimov Talks Die Quickly http://www.themoscowtimes.com/business/article/baturina-anisimov-talks-die-quickly/427308.html

21 December 2010By Bela Lyauv and Maria Rozhkova / Vedomosti

nteko president Yelena Baturina on Saturday discussed the sale of assets to Vasily Anisimov's real estate holding Coalco, but the meeting was brief because the two billionaires could not agree on a price, sources close to both sides told Vedomosti.

Anisimov, a 20 percent shareholder in iron-ore producer Metalloinvest, was interested in purchasing assets from Inteko for his development business, but the meeting with Baturina was very brief and unsubstantial, a source close to the businessman said.

A source close to Baturina, who is also the wife of former Mayor Yury Luzhkov, said she was not satisfied with the price of about $400 million that Anisimov offered. The source close to Anisimov said their weekend meeting didn't even include talks on a price.

Inteko's press service said Friday that the company and its development projects were clearly worth more than the $400 million figure that had been previously mentioned in the media. "If it

were true that Inteko was being sold at that price, then it would simply be a case of racketeering," the company said.

The company is receiving a low valuation because of debt, said sources close to Baturina and the participants in the talks. Inteko has about $1.2 billion in debt, with 22 billion rubles ($715 million) owed to Sberbank, 12 billion rubles to Bank of Moscow and 1.5 billion rubles to VTB.

A spokesperson for Bank of Moscow was not immediately able to comment on the matter, while Sberbank could not be reached for comment. VTB, which has conducted due diligence on Inteko's property, has valued its development assets — excluding the closed joint-stock company Patriot — at 350 million euros ($460 million), a source close to Baturina said.

Inteko has 43 developments in Moscow, but only a few of them are generating serious cash flows, including the Dominion and Champion Park residential complexes.

"VTB is not interested in a purchase and is not lending to potential buyers. But as an Inteko creditor, it is concerned about the situation in the company and following it closely," a spokesperson for the lender said.

Companies linked to billionaire Suleiman Kerimov have also been named in the media as potential Inteko buyers, though his spokespeople have denied any interest.

A source close to the participants in the current round of talks said that in addition to Anisimov, other interested parties include British firm Rexam, which is one of the world's largest consumer packaging companies. In Russia, Rexam owns a factory that produces aluminum cans in the Moscow region town of Naro-Fominsk.

Spokespeople for Rexam could not be reached for comment. An Inteko spokesperson said the British company had not made an offer.

Baturina isn't ready emotionally to sell her company, a source close to the talks' participants said.

Russia's wealthiest woman is, however, unloading individual assets. She agreed to sell her stake in a Moskva-City development to Magnitogorsk Iron & Steel Works owner Viktor Rashnikov, and she has also sold 98.12 percent of Russky Zemelny Bank to six Cyprus-registered companies. As of Nov. 1, the lender had assets of 5.4 billion rubles, according to National Bank Trust.

In addition to development, Inteko owns construction assets including Moscow builder DSK-7, St. Petersburg builder DSK-3, Rostov-on-Don builder Kombinat Krupnopanelnogo Domostroyenia, and the Atakaisky and Verkhnebakansky cement factories. The firm Patriot focuses on large-scale, low-cost housing projects. Inteko also controls Alfa-Plast, a plastics maker that controls up to 30 percent of the Russian market for certain products.

Inteko, which is 99 percent owned by Baturina, had a loss of 38.15 billion rubles last year on revenue of 54.43 billion rubles, according to Interfax's SPARK database.

Vnukovo detained suitcases of $20mln in cash were for terrorist group http://www.panorama.am/en/world/2010/12/21/illegal-money/

12:01 21/12/2010

 The detained suitcases at Moscow’s Vnukovo airport holding $2 dozen million in cash belonged to three Azerbaijani and one Iranian who arrived in Moscow from Istanbul are supposed were prepared for terrorists, “Vzgliad” writes.

It’s worth reminding that the Russian frontiers arrested in Vnukovo airport 3 Azerbaijani and a citizen of Iran, who were intended to pass illegally $2 dozen million holding suitcases and to import them into Russia.

Russian officials launched a criminal case and an investigation got under way. The article of the criminal code corresponding to the case defines 5 years of imprisonment for the arrested.

“That amount of money could be transferred to bank or to a terrorist group to buy armament,” Russian “Vzgliad” writes referring to Russian Customs Service.

The passengers attempted to enter the country without declaring the $14.5 million and 4.1 million euros ($5.4 million) they carried in four suitcases and four backpacks, the Federal Customs Service said on its web site.

The bills, in $100 and 500 euro denominations, weighed 400 kilograms, said Larisa Ledovskikh, a spokeswoman for the customs service.

Customs officers said that this is a particularly large sum and said they haven’t seen anything like it.

05:09

1.4 million rubles stolen from St. Petersburg mosquehttp://rt.com/news/line/2010-12-21/#id553

Three persons wearing masks broke into the cathedral mosque in St. Petersburg on Monday and stole 1.4 million rubles, RIA Novosti news agency reports. The burglars immobilized an 81-year-old secretary with an electrical stun gun and tied up a 70-year-old cashier, after which they took the money from the mosque safe. The city police are investigating. If captured, the thieves face up to 15 years in prison.

Kyrgyz yardman attacked in Moscowhttp://www.aysor.am/en/news/2010/12/21/moscow-kirgiz/

Tuesday, December 21

A Kyrgyz yardman was attacked in Moldagulova street, Moscow. He was shot in his face from traumatic pistol and was rushed to hospital, RBK.ru reports citing Moscow police.

Foreign workers have been frequently attacked in Moscow over the past 2 weeks. On December 16, teens cruelly beat a Kyrgyz worker with metal pipes.

Attacks on Caucasus and Middle Asia natives have become more frequent after the Manezhnaya Square disturbances in Moscow.  

TODAY, 12:14

Russia's Mission Control to readjust ISS orbithttp://en.rian.ru/russia/20101221/161867414.html11:36 21/12/2010

Russia's Mission Control is preparing to adjust the orbit of the International Space Station (ISS) on Wednesday by raising it 4.2 kilometers (2.6 miles).

The readjustment is necessary to ensure the best conditions for the docking of Russia's Progress M-09M space freighter and the U.S. Discovery's final mission to the orbital station before the veteran space shuttle is removed from future service.

"The maneuver will be carried out with the help of eight thrusters of the Progress M-07M cargo spacecraft, which is currently docked with the station's Zvezda module," the Mission Control said in a statement on Tuesday.

"The station's orbit will be raised by 4.2 km to 352.9 km [219 miles]," the statement said.

Corrections to the space station's orbit are conducted periodically before launches of Russian cargo ships and U.S. shuttles to compensate for the Earth's gravity and to safeguard successful dockings.

Russia's Progress M-09M space freighter is scheduled for launch on January 28, while the Discovery shuttle is expected to depart for ISS on February 3, 2011.

MOSCOW, December 21 (RIA Novosti)

PRESS DIGEST - Russia - Dec 21http://af.reuters.com/article/energyOilNews/idAFLDE6BK0F620101221

Tue Dec 21, 2010 8:47am GMT

MOSCOW Dec 21 (Reuters) - The following are some of the leading stories in Russia's newspapers on Tuesday. Reuters has not verified these stories and does not vouch for their accuracy.

KOMMERSANT

www.kommersant.ru

- Vimpelcom (VIP.N) shareholder Telenor (TEL.OL) opposes Vimpelcom bid for telecom assets owned by Weaher Investment, the paper says.

- 33.5 percent of viewers accross Russia watched this year's annual phone-in of Russian Prime Minister Vladimir Putin, which is 8 percent less than in the previous years, the daily writes.

- Russia will spend 46 billion roubles ($1.49 billion) in 2011-2015 in the framework of UN Convention on the rights of persons with disabilities, the daily writes.

VEDOMOSTI

www.vedomosti.ru

- Moscow's government will receive a 15 billion rouble ($487.2 million) credit from the federal budget in 2011 at a low interest rate, the paper writes.

- The paper runs an interview with Anatoly Chubais, the head of state corporation Rusnano, on its reform into a public corporation.

NEZAVISIMAYA GAZETA

www.ng.ru

- Russia's gas monopoly Gazprom (GAZP.MM) has abandoned its plan to build a skyscraper in St Petersburg, the daily says.

- Casinos continue to operate in all Russia's major cities despite the gambling ban introduced in 2006, the paper writes.

IZVESTIA

www.izvestia.ru

- Russia's Emergencies Minister Sergei Shoigu is the most popular minister; 75 percent of Russians support him, the paper writes citing a recent VTsIOM poll.

Russian Press at a Glance, Tuesday, December 21, 2010http://en.rian.ru/papers/20101221/161865974.html

09:13 21/12/2010© RIA Novosti. Rybchinskiy

POLITICS

Belarusian President Alexander Lukashenko said that police had only arrested "two or three" presidential candidates in Sunday's riots(Vedomosti, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

Russian President Dmitry Medvedev ignored outrage from European leaders over Belarussian presidential elections by calling the vote and the ensuing violence in Minsk a "domestic affair"(The Moscow Times)

Dmitry Medvedev and Valdis Zatlers, the presidents of Russia and Latvia, have agreed to set up a commission to guard against distortions of the two countries' shared past, following talks on Monday(Kommersant, Rossiiskaya Gazeta)

Ukrainian Opposition leader Yulia Tymoshenko said the country's Prosecutor General's Office brought official charges against her for misusing government funds(Nezavisimaya Gazeta)

Russia’s Ulyanovsk and Kirov regions seek unification with the republic of Tatarstan to become a unified Kazan Territory(Nezavisimaya Gazeta)

ECONOMY & BUSINESS

Uralkali, Russia’s largest potash miner by market value, officially launched a $7.8 billion friendly takeover of domestic rival Silvinit(The Moscow Times, Vedomosti)

VimpelCom's $6.6 billion bid for telecoms assets owned by Weather Investments received a major setback Monday when Norwegian shareholder Telenor said it would not back the deal(The Moscow Times)

SOCIETY

The St. Petersburg City Court banned the construction of towering buildings in the historical center in yet another measure that makes Gazprom's Okhta Center project impossible(The Moscow Times, Kommersant)

As heavy snowfalls keep pouring over Europe hundreds of Russians remain trapped in various European airports(Rossiiskaya Gazeta)

Russia needs migrant workers. An interview with human rights activist Mikhail Fedotov(Rossiiskaya Gazeta)

TECHNOLOGY

An exclusive interview with Anatoly Chubais, the head of Russia's state-owned nanotechnology corporation RusNano(Vedomosti)

CRIME

The Investigative Committee opened a criminal case against officials responsible for releasing suspects linked to the killing of an ethnic Russian that sparked violence in Moscow(The Moscow Times)

SPORTS

Alexander Krasnenkov, one of Gazprom’s top managers and the president of Spartak St. Petersburg basketball club, was elected as the new head of the Russian Basketball Federation(Kommersant)

MOSCOW

City Hall dispatched thousands of snowplows and tractors to clear snow from Moscow's streets, even as drivers stood in near-record traffic jams(The Moscow Times, Kommersant, Nezavisimaya Gazeta)

Rossiyskaya Gazeta: Language leads to Moscowhttp://rt.com/politics/press/rossijskaya-gazeta/moscow-immigration-foreigners-adaptation/en/

Published: 20 December, 2010, 06:40Edited: 20 December, 2010, 06:40

FMS will teach immigrants about Russia’s realities in cultural centers Marina Gritsyuk

This announcement was made by the FMS spokesperson, Yulia Slutskaya, during a press conference, dedicated to International Immigrants Day.

“We clearly differentiate these two concepts, because the process of adaptation is necessary for immigrants, who are in the country for a limited time period, and integration is aimed at people who plan to take Russian citizenship in the future,” she explained.

Today, the Service is examining the experience of other countries, establishing contacts with social organizations, national diasporas, and religious organizations. One of the first practical steps needs to be the creation of cultural centers in Russia, where immigrants are taught the basics of the Russian language, culture, and Russian law. However, Yulia Slutskaya could not specify when these centers will be constructed and in which cities, and simply stated that this is currently being determined by the FMS.

Journalists expressed doubts, however, that the integration of foreigners will be successful, because the work with the Turks in Germany and the immigrants in France did not yield many results. However, experts and members of the Migration Service argue: Russia’s experience differs. “Just 20 years ago, we all – immigrants and the host nation – lived in one country. Today, it’s not a custom to praise the Soviet experience, but nevertheless, it continues playing a role in bringing different cultures together,” says Sergey Ryazantsev, director of the Center for Social Demography at the Institute of Social and Political Studies, RAS.

Moreover, Russia is inherently multinational – the country’s natives are people of different nationalities, faiths, and languages. Therefore, if the work is competently designed, then integration could be a success. The rate at which this work is being done needs to be accelerated, because Russia’s need in foreign labor force will continue to grow: in the coming years, the labor force deficit will amount to 10-12 million people.

According to the results of a study, conducted by the Center for Social Demography, up to eight per cent of people residing in the post-Soviet territory, are engaged in the labor migration process. For example, Tajikistan’s ratio of migrants, coming to and leaving the country in search for jobs, is 1 in 600. “This, in essence, is a world record,” says Sergey Ryazantsev. In Russia, the ratio is reversed: for every 12 people coming to the country, one emigrates. Most newcomers work in construction or in the agricultural sector. “In some regions, the share of migrant workers in the construction field reaches 40 per cent,” said the experts. Meanwhile, a way to inform the migrants has yet to be established. Most of them only have the information that they received from their relatives, neighbors, or acquaintances. And it is they who become “clients” of shadow firms, engaged in document fraud and employment – which is often illegal. The annual profit volume of such firms in Moscow alone reaches $140 million.

“Why not distribute information about opportunities to acquire a patent, about the nuances of registration and employment in Russia on airplanes and trains?” a representative of Tajikistan, who was present at the conference, asked. Yulia Slutskaya agreed with the comment and promised that the Migration Service will consider this possibility.

Russia to teach migrants good manners?http://english.pravda.ru/russia/politics/21-12-2010/116292-russia_migrants-0/

21.12.2010

Last Saturday the world celebrated the International Migrants Day. It was established at the suggestion of the UN General Assembly in 2000. December18 was chosen because on that day in 1990 the General Assembly adopted the International Convention for the Protection of the Rights of All Migrant Workers and Members of Their Families.

In Russia, however, December 18 was too hectic to celebrate the Day of Migrants. In the capital and several other Russian cities the police was catching nationalist-minded youth and people from the Caucasus.

Meanwhile, the Federal Migration Service has attended to the problem of adaptation and integration of migrants in Russia. A special unit of the FMS will be created to deal with this issue. This information was provided at a press conference on the International Day of Migrants by Julia Slutskaya, Head of the Department of External Relations of FMS.

"We clearly separate these two concepts, as the process of adaptation is necessary for migrants who are in the country for a limited amount of time, and the integration is aimed at people who are going to apply for Russian citizenship in the future," said Slutskaya. Experts predict that the demand for foreign labor force in Russia will only grow: a deficit in the labor market in the coming years will reach 10-12 million people.

Most of those who come to Russia work in construction and agriculture. In some regions, up to 40 percent of construction workers are migrant workers, said Sergey Ryazantsev, head of the Center for Social Demography at the Institute of Social and Political Studies. It is worth mentioning that the ratio of visitors to Russia who come to earn money to those leaving the country (with the same purpose) is twelve to one. In Tajikistan, the ratio is different - one enters, 600 leave.

Actually, it is no secret how many migrants are employed in construction. The same can be said of trade, especially in large cities. We are talking not so much about open markets, but of the network hypermarkets. Many foreigners who are immigrants from the former Soviet republics are employed in the public utilities sector and road construction. This means that without these people, some areas of the Russian economy are difficult to imagine. Like it or not, it is a fact.

The establishment of the special unit of FMS and integration of migrants is, of course, necessary. However, it is difficult to explain why the agency created in 2004 did not seem concerned about this issue before. Large numbers of migrant workers appeared at construction sites much earlier than in 2010.

If we talk about the experience of other countries, FMS has nothing to rely on in this case. France and Germany have not been particularly successful in the area of migrants' adaptation, although in these countries the relevant programs have existed for years.

Russia could certainly rely on the legacy of the Soviet Union, as the Federal Migration Service and the expert community believe. Of course, the experience of the country where dozens of nationalities peacefully coexisted for a long time is unique. But, by and large, this experience is becoming history. Young people in the former Soviet Caucasian and Central Asian republics do not speak the Russian language. People who come to Russia are not familiar with the realities of the country where they are going to work. As a result, their circle of communication is often limited to their compatriots who came to Russia earlier. What kind of adaptation and integration are we talking about if no one really can tell how many migrants are in Russia? Or are we only considering those who have obtained official work permits?

Of course, these questions do not mean that the problem should not be solved. The concern is that the intent will be limited to a ceremonial opening of two or three centers where visitors will be taught Russian and good manners. For if this is the case, no one will benefit from it.

Anton KulikovPravda.Ru

Izvestiya: Sheikh Gainutdin is caught in a liehttp://rt.com/politics/press/izvestiya/gainutdin-islam-tatars-reaction/en/Published: 21 December, 2010, 03:58

Edited: 21 December, 2010, 03:59

Russia’s Islamic leaders condemn the radical statements of the Tatar mufti Dmitry Ivanov

Ravil Gainutdin’s harsh statements were made during Radio Svoboda’s broadcast in Tatarstan. The chairman of the Council of Muftis’ words were quickly translated and appeared on the online news sites. The biggest backlash was caused by the controversial thesis in Gainutdin’s speech – asserting that the Kremlin is trying to “crush Islam in Russia”.

“What oppression of Muslims is there to speak of, when mosques are being built in the country, there is an open system of education, madrasas, the foundations of Islam are taught in all the mosques, and spiritual work is being done to prevent the youth form adopting radical Islam, terrorism,” Talgat Tadzhuddin, chairman of the Central Muslim Spiritual Directorate, did not hide his surprise. “There are no obstacles on behalf of the state for law-abiding Islam,” argues Tadzhuddin.

Head of the Executive Committee of the Russian Association of Islamic Harmony, Magomedali Khuzin, cites the following statistics: “In recent years 7,500 new mosques have been constructed in the state, dozens of Islamic spiritual schools and universities have opened and a fund has been

created, which provides support to 100 per cent of Islamic organizations”. He stressed: “The biggest share of the funding goes to the Council of Muftis, which is headed by Gainutdin”.

Chairman of the Russian Congress of the People of the Caucasus, Aslambek Paskachev, shares his views on the development of Islam in our country: “I often visit various corners of Russia, including the North Caucasus, and can with certainty say that there is not any government pressure on Islam in Russia to speak of. Moreover, never in the history of the USSR, or Russia, has the development of Islam progressed as dynamically as in the last 20 years”.

“Russia’s Muslims participate in all the spheres of public life. Russians, who practice Islam, are represented in all the state power agencies, the State Duma, the Federation Council, and law enforcement agencies,” adds Paskachev.

Muslim leaders are pointing to a number of details that characterize the ambiguity of the position in which Gainutdin has found himself today.

Tadzhuddin blames the chairman of the Council of Muftis in being illogical: “He, together with Luzhkov and his muftis, had stopped the construction project of the Cathedral Mosque on Luzhnetskaya Naberezhnaya – there were other projects that were stopped on his part. And now he accuses the authorities of Islamophobia? That’s absurd”.

Meanwhile, Tagir Samatov, deputy chairman of the Central Muslim Spiritual Directorate and member of the Presidium of the Interreligious Council of Russia, cites a very recent story: “The respectful Mufti Gainutdin, after signing with us an appeal of the Presidium of the Interreligious Council of Russia to the peoples of our country to strengthen peace and harmony, is, with his statements, basically creating the conditions for the formation of inter-ethnic and inter-religious strife”.

As for the reasons that led Gainutdin to make the serious but groundless accusations, the spiritual authorities cannot come to an agreement.

In particular, head of the Coordination Center of Muslims of the North Caucasus, Ismail Berdiev, suggests that the mufti’s statements could be linked to his “disgraceful jealousy, because the mufti is losing his influence on Russia’s Muslim community”. Berdiev does not exclude the possibility that the statements were made “as part of some dirty political or radical campaign”.

Magomedali Khuzin is much stricter in judgment. “Either he went mad or collected a large sum of money from the foreign sources…First, a legal assessment of these words needs to be made. Second, there needs to be a political assessment of his recent actions and statements,” argues one of the leaders of the Russian Association of Islamic Harmony.

21 December 2010, 10:02

Islamic extremism is rooted in colonial past of humanity – Orinetalisthttp://www.interfax-religion.com/?act=news&div=8036

Moscow, December 21, Interfax - Co-chairman of the tutorial council of the CIS Interreligious Council, president of the Civilizations Interaction Foundation, a staff-member of the Institute of Oriental Studies of the Russian Academy of Sciences Rakhamim Emanuilov is convinced that Islamic extremism is based on colonial past.

"I believe this extremism is rooted in colonial past of humanity... May be, someone doesn't like it, but Christian civilization is now far ahead," he said on air of the Komsomolskaya Pravda radio station.

According to him, "Islamic civilization has fallen behind," but "today Muslims have money and they want to get a worthy place in the world."

However, the Orientalist further said, "we know there was a time when everything was the contrary: future Christians wore fells while culture, science and medicine flourished in the East, in Islamic world."

"And no one is to blame for it, it's a historical process," Emanuilov said.

Russian Society of Authors seeks to pay royalty to literary hoaxhttp://rt.com/news/cherubina-russian-society-authors/

Published: 21 December, 2010, 04:10Edited: 21 December, 2010, 09:32

Russian Society of Authors is looking through its website for any contacts for Cherubina de Gabriak – a famous literary hoax of the early 20th Century.

A female poet, whose mystery agitated the minds of most prominent literary men of the Russian Silver Age, is credited in the RSA authorship for the soundtrack to the Soviet movie “House on the Embankment”. It is worth mentioning, however, that the music already has an author – the famous Soviet composer Isaac Schwarz. 

The story of the famous hoax is now included even in student literature books. A prominent poet of the epoch, Maximilian Voloshin, along with his friend Elizaveta Dmitrieva, came up with an intriguing pseudonym and a mysterious background for a new figure on the horizon of Russian poetry. 

Poems of Cherubina de Gabriak were sent to St. Petersburg, to a respectable literary magazine of the time, “Apollon”. The poems were romantic and intriguing, just as the poet herself; they touched upon Catholic Spain and the Inquisition, chivalry and crusaders, at the same time describing the incredible beauty of the poetess, her aristocratic roots and inner sufferings.

The secret of the poetess lasted for almost a year, by the end of which the entire literary society was obsessed with their new heroine. When the truth was finally revealed, it led to a large disappointment among the poets, and even gave rise to a duel.

Although the life of the mysterious hoax was quite short, it was enough for another famous poet, Marina Tsvetaeva, to describe this period as “the era of Cherubina de Gabriak”.

December 20, 2010Trust Nobody

http://www.russiaprofile.org/page.php?pageid=Culture+%26+Living&articleid=a1292865103

By Svetlana KononovaSpecial to Russia ProfileMost Russians Don’t Trust Anybody Else, but Believe They Have the Right to Deceive Others

The Soviet system allowed citizens to shirk their responsibilities in return for dependence on the state. But two decades after the collapse of the system, Russian citizens are reluctant to trust each other, readily willing to cheat each other and skeptical of everyone apart from their closest relatives.     

“She cheats and doesn’t blush. But we are honest,” claims an advertising billboard on the Moscow metro, depicting a rude and devious saleswoman. It doesn’t matter what this poster is promoting– what is much more interesting is that it appeals to customers by exploiting their deep fears and longings. A large-scale survey titled the “Post-Soviet Man and Civil Society,” conducted by the independent Levada Center, found that most Russians find it difficult to trust other people. Such surveys have been conducted every year since 1991, recording the most important changes in the Russians’ mentality since the collapse of the Soviet Union.

The results of the survey reveal some bizarre trends. The number of people who trust others has decreased significantly over the last two decades. In 1991, only 41 percent of respondents were skeptical and suspicious. Now, 70 percent say they do not trust anybody, 72 percent do not want to help anybody, and 75 percent do not want to cooperate with other people in solving problems.

The authors of the survey believe that these attitudes are rooted in the Soviet past. “A Soviet man fully belonged to the state. He was dependent on the state. He knew the state would definitely deceive him, would try to use all of his resources, leaving him only the minimum required to survive. Therefore, he believed he had the right to mess up the authorities’ orders, to make mistakes, to steal and avoid responsibility,” they noted in an accompanying statement. The limited opportunities to manage his or her own life made a typical Soviet citizen passive, anxious and envious.

Paradoxically, this mentality did not disappear when the Soviet Union collapsed, and has even strengthened. The survey found that “dubious” forms of behavior, such as distrust, fear,

aggression and willingness to commit fraud now have less negative connotations, and have become a normal part of social life.

This affects all aspects of everyday life – work, business, charity, justice and personal relationships. A poll conducted by the research center of the recruitment Web portal Superjob.ru found that one in five respondents have been ripped off by an employer at least once. The most common type of fraud is non-compliance with agreements about salaries, work responsibilities and working hours. However, in such cases victims are not willing to stand up for their rights. According to the “Post-Soviet Man” survey, in cases of labor law violation, 35 percent of respondents said they would change jobs, but only six percent would appeal to a labor union and two percent would be prepared to take part in protests.

“The most typical cases of fraud involve vacancies that do not have a full description of the job responsibilities and candidate requirements, such as personal assistant, administrator and manager,” said Alexey Zakharov, the president of Superjob.ru. “If an employer does not want to provide any specific information about the job by telephone, it might be a fraudulent position.”

Zakharov advised candidates to respond only to vacancies that are advertized via large and reputable recruitment Web sites and agencies. He also said people should research information about any potential future employer on the Internet and ask questions about the job by telephone before the interview. However, even working for large and reputable companies in Russia does not guarantee that labor law will never be violated.

The flip side of the coin is the attitude that company representatives have toward clients. Another poll conducted by Superjob.ru found that representatives of many professions in Russia are willing to deceive customers to get better results. Sixty one percent of sales representatives, 57 percent of PR managers and 56 percent of credit managers answered “yes” when asked “Are you prepared to lie to show high achievements to your employer?” Forty-nine percent of marketing experts, 44 percent of HR managers, 44 percent of state officials, 41 percent of travel agents and 40 percent of realtors have the same attitude. The most “honest” professionals in Russia are doctors, nannies, teachers and programmers. The number of potential liars in these professions is less than a quarter, the poll found.

Very few Russians believe that all conflicts can be mediated by law. This reflects general skepticism of the judicial system. “To appeal to the court just means wasting your time,” said Muscovite Elena Klimenkova. “If you do not give a bribe to the judge, then you have very little chance of winning the case.” Two thirds of the participants in the “Post-Soviet man” survey share this belief, agreeing that it is very difficult or even impossible to obtain a fair judgment. However, this mistrust applies to Russian courts only. The same respondents believe that they could defend themselves in the European Court of Human Rights.

Most Russians also do not trust NGOs and believe they are useless. According to the Levada Center survey, only five percent of adult citizens in Russia are members of a non governmental organization, including charities, political parties, woman rights’ groups and local organizations. Those polled do not believe that NGOs can have a significant impact on everyday life, they complained of a lack of free time and fatigue, and confessed to an absence of any interest in the

problems of other people, except relatives and close friends. A typical post-Soviet man does not want to support anybody but continues replying on the state.

The only area where utter distrust is less common is within a family. Most participants in the survey said that they trust close relatives and consider a close-knit family one of the most valuable things in life. Honesty and decency are the most attractive personal characteristics of both men and women when Russians look for spouses and partners.

National Economic Trends

Central Bank revoked the license of Donbank and Russian-German Trade Bankhttp://www.banki.ru/news/lenta/?id=2539917

GOOGLE TRANSLATION

21.12.2010 10:00 Bank of Russia decided to withdraw from December 21, 2010 the license for banking operations in Donbanka (Kamensk-Shakhtinsky) and the Russian-German Commercial Bank (Moscow). This is related to the Department of External and Public Relations of the Central Bank.In the central bank explained that the decision on the application of last resort - revocation of a license to conduct banking operations - was made in connection with non-banks federal laws regulating banking activities, and regulations of the Bank of Russia, establishing the facts essential unreliability of the accounting data, as well as taking into account the repeated application within one year of action by the federal law on the Central Bank of Russian Federation (Bank of Russia).In accordance with the order of the Bank of Russia in Donbanke and Russian-German Trade Bank was appointed the interim administration is valid until the date of appointment of the administrator or liquidator. The powers of the executive bodies of banks in accordance with federal laws are suspended.OJSC CB "Donbank" - participant of the system of deposit insurance. Revocation of a license to conduct banking operations is an insurance case, the federal law № 177-FZ "On Insurance of Household Deposits in Banks of the Russian Federation."Source: Banki.ru

News: Oil underpins strong Russian commodity exports   http://blog.procurementleaders.com/procurement-blog/2010/12/21/news-oil-underpins-strong-russian-commodity-exports.html

Posted on Tuesday, December 21 by Steve Hall in Global Sourcing, Procurement News

Experts report that the solid base provided by the relatively high price of oil is driving strong Russian commodity exports and making the nation’s stock market “among the top worldwide”.

Russia is, by far, the cheapest of the BRIC countries, noted John Connor, portfolio manager of the Third Millennium Russia Fund: “Despite continuing negative publicity, Russian exports to China and other South and East Asian markets remain strong - $90 oil of course forms a solid base."

He also noted that this strong export trade was pushing up the fundamentals of steel companies: Novolipetsk, Mechel, Severstal and the fertilizer company Uralkaliy.

"The Russian middle class continues to prosper, fuelling the forward momentum of retailers X5, Magnit and Dixy.”

Connor added: "2010 was a positive year for Russia as it saw no financial scandals or crises and winning the World Cup designation for 2018 portends substantial infrastructure expenditures and buoys their optimism for the future that opens opportunities for investors to benefit."

Business, Energy or Environmental regulations or discussions

Russian markets -- Factors to Watch on Dec 21http://www.reuters.com/article/idUSLDE6BK07220101221

2:12am EST MOSCOW, Dec 21 (Reuters) - Here are events and news storiesthat could move Russian markets on Tuesday. You can reach us on: +7 495 775 1242 STOCKS CALL (Contributions to moscow.newsroom@reuters.com): Troika Dialog: We are opening our prices this morning up 0.5percent. Olma: The markets are likely to rise today amid a softerexternal background. EVENTS [RU-DIA] (All times GMT): NEW DELHI- Russia's President Dmitry Medvedev to visitIndia. MOSCOW- The Russian government to discuss borrowing plans. MOSCOW- Russia's state-owned energy giant Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz)to hold a board meeting. MINSK- CIS countries to hold talks on the free trade zone

agreement. MOSCOW- Russia's Pension Fund to discuss 2010 results. MOSCOW- Russian holding company Sistema (SSAq.L: Quote, Profile, Research, Stock Buzz)(AFKC.MM: Quote, Profile, Research, Stock Buzz)holds an EGM. MOSCOW- Moscow power-generation company Mosenergo (MSNG.MM: Quote, Profile, Research, Stock Buzz)to announce Q3 2010 results. IN THE PAPERS [PRESS/RU]: Russian officials have complained to UK financial supervisorFSA over alleged unfair treatment of state-controlled bank VTB(VTBR.MM: Quote, Profile, Research, Stock Buzz) and Mikhail Fridman's Alfa-Group, business dailyVedomosti reports. Kommersant runs an interview with EON's EONG.DE Russiandirector Sergei Tazin who says the Russian market share in thegroup's business will rise and expects clarity on electricityexports from Russia within the next two years. TOP STORIES IN RUSSIA AND THE CIS [RU-NEWS]: TOP NEWS:* OSCE condemns flawed Belarus vote, crackdown [ID:nLDE6BJ0X8]* Russia may extend its grain export ban-lobby [ID:nLDE6BJ0V1] COMPANIES/MARKETS:* Russia potash miner Uralkali to buy Silvinit [ID:nLDE6BJ0CY]* Trader Trafigura buys 8 pct Norilsk stake [ID:nLDE6BJ1T9]* Vimpelcom votes for Weather deal [ID:nLDE6BK03A]* Rouble hits new 2-mth peak, rate hikes eyed [ID:nLDE6BJ1MN]* Gazprom sells 9.4 pct stake in Novatek [ID:nLDE6BJ1NZ]* En+ says Korea to invest $1 bln in mine JV [ID:nLDE6BJ1ON]* NLMK says margin to fall in Q4 [ID:nLDE6BJ0FN]* Novatek gets credit line of up to 15 bn rbls [ID:nLDE6BJ1CG] ECONOMY/POLITICS:* Meat, agri unresolved in Russia WTO bid [ID:nLDE6BJ0WZ]* Ukraine Tymoshenko charged in criminal probe [ID:nLDE6BJ1MR]* Latvia, Russia vow better ties in visit [ID:nLDE6BJ0KG]* Ukraine to raise upto $600 mln with Eurobond [ID:nLDE6BJ12T] ENERGY:* Transneft Q1 oil export to rise on China [ID:nLDE6BJ1AB]

* Yamal sees 2011 gas output growth slowing [ID:nLDE6BJ0MO] COMMODITIES:* Russia milling grain prices rise, feed flat [ID:nLDE6BJ11Y] MARKETS CLOSE/LATEST: RTS .IRTS 1,746.1 +0.37 pct MSCI Russia .MIRU00000PUS 915.3 -0.46 pct MSCI Emerging Markets .MSCIEF 1,117.4 +0.57 pct Russia 30-year EurobondRU011428878= yield: 4.918/4.872 pct EMBI+ Russia 11EMJ 202 basis points over Rouble/dollar RUBUTSTN=MCX 30.6807 Rouble/euro EURRUBTN=MCX 40.4760 NYMEX crude CLc1 $89.49 +$0.12 ICE Brent crude LCOc1 $92.76 +$0.02 For Russian company news, double click on [E-RU] Treasury news [M-RU] Corporate debt [D-RU] Russian stocks [.ME] Russia country guide RUSSIA All Russian news [RU] Scrolling stocks news [STXNEWS/EU] Emerging markets top news [TOP/EMRG] Top deals [TOP/DEALS] European companies [TOP/EQE]

Norilsk Nickel, Rosneft, Polyus Gold: Russian Equity Preview http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aftJBA0EIEiM

By Anna Shiryaevskaya

Dec. 21 (Bloomberg) -- The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading in Moscow.

The 30-stock Micex Index fell 0.2 percent to 1,663.11. The dollar-denominated RTS Index declined 0.2 percent to 1,739.67.

OAO GMK Norilsk Nickel (GMKN RX): Russia’s biggest mining company agreed to sell $3.5 billion of stock, representing an 8 percent stake, to commodities trader Trafigura Beheer BV. Shares fell 0.3 percent to 6,680.23 rubles, the third straight day of declines.

OAO Rosneft (ROSN RX): Oil rose on speculation U.S. economic growth will accelerate next year, bolstering demand in the world’s biggest oil-consuming country. Russia’s biggest oil producer added 0.6 percent to 220.09 rubles.

OAO Polyus Gold (PLZL RX): Gold futures rose for the second straight session on demand for a haven amid escalating European debt woes. Shares of Russia’s biggest gold producer rose 2.3 percent to 1,879.96 rubles.

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

Last Updated: December 20, 2010 16:00 EST

Russian Stocks Advance as Oil Nears $90, Korea Tensions Ease http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ayzG4ttxLSIU

By Anastasia Ustinova

Dec. 21 (Bloomberg) -- Russian stocks rose as oil traded near the highest in two weeks and military tensions eased on the Korean peninsula. The ruble climbed against the dollar.

OAO Novolipetsk Steel, Russian billionaire Vladimir Lisin’s steelmaker, gained 1 percent and OAO GMK Norilsk Nickel, the country’s biggest mining company, added 0.8 percent. OAO Gazprom Neft rose 0.4 percent. The Micex Index gained 0.5 percent to 1,671.44 at 10:40 a.m. in Moscow.

Russia’s currency strengthened 0.2 percent to 30.7290 per dollar. A close at that level would be the strongest since Dec. 17.

A U.S. negotiator said North Korea agreed to let inspectors visit its uranium enrichment facilities after the communist nation refrained from retaliating against South Korean military exercises in disputed waters yesterday. Crude oil traded 0.8 percent higher at $89.48 a barrel in New York.

“The underlying mood remains mostly positive on hopes of better economic performance in 2011,” Chris Weafer, chief strategist as UralSib Financial Corp., wrote in an e-mailed report today.

OAO Mosenergo, the Moscow power generator controlled by OAO Gazprom, rose 1.2 percent to 3.209 rubles. The company today reported a net loss of 839 million rubles ($27 million) compared with a 2.7 billion-ruble loss in the same period a year earlier.

To contact the reporter on this story: Anastasia Ustinova in St. Petersburg at austinova@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez in Prague jagomez@bloomberg.net

Last Updated: December 21, 2010 03:40 EST

$27 billion worth platinum deposithttp://www.barentsobserver.com/27-billion-worth-platinum-deposit.4864433-116321.html

2010-12-21 Russian geologists claim to have discovered a huge deposit of platinous ore on the Kola Peninsula.

Head of a science foundation, Vladislav Panchenko, announced the discovery at a meeting with the government commission on innovation in Moscow on Monday.

It is not said where on the Kola Peninsula the discovered deposit is located. It should, according to a report posted on The Voice of Russia, be possible to extract some 350 tons of the metal from openpit mines.

Text: Thomas Nilsen

White Tiger Gold Ltd. Completes Acquisition of Russian OpCoshttp://www.marketwire.com/press-release/White-Tiger-Gold-Ltd-Completes-Acquisition-of-Russian-OpCos-1372072.htmDec 20, 2010 21:43 ET

ROAD TOWN, TORTOLA, BRITISH VIRGIN ISLANDS--(Marketwire - Dec. 20, 2010) - White Tiger Gold Ltd. ("White Tiger Gold" or the "Company") (formerly, SL Resources Inc.) is pleased to announce that it has completed its previously announced acquisition, through its, directly and indirectly, wholly-owned Cyprus subsidiary, Diascia Investments Limited ("Diascia"), of four wholly-owned subsidiaries of LLC UK Dalsvetmet ("DZM"), being Ildikangold, Dalsvetmet, LLC Koryakming and Vostokzvetmet, as well as the entire 80% interest of DZM in a fifth subsidiary, LLZ Geozvetmet (each an, "OpCo" and collectively, the "OpCos") in exchange for the issuance of 85,000,000 common shares of the Company to DZM (the "Acquisition"). The Acquisition has been accounted for as a reverse takeover. For further information regarding the Acquisition, see the Company's press releases of November 11, 2010 and December 16, 2010, each of which is available under the Company's SEDAR profile at www.sedar.com.

December 21, 2010 11:53

Mosenergo narrows Q3 losses more than two thirds, boosts 9M earnings over 3-fold (Part 2)http://www.interfax.com/newsinf.asp?id=210813

MOSCOW. Dec 21 (Interfax) - Mosenergo narrowed net losses to International Financial Reporting Standards (IFRS) 68.8% year-on-year in Q3 2010 to 839 million rubles.

The Moscow generating company, which is controlled by gas giant Gazprom (RTS: GAZP), said in a statement that sales revenue grew 25.5% to 22.8 billion rubles in Q3.

It said net profit soared 2.1-fold year-on-year in January-September to 3.4 billion rubles from 1.096 billion rubles.

It also said figures for 2009 had been revised. "The revised standard 'Borrowing costs' came into force for annual periods beginning on or after January 1, 2009. The clarifications to the revised standard were issued in July 2009. So the Company could not apply these clarifications in respect of capitalised interest calculation for interim reporting periods. As a result restatement for the comparative period is needed," says a note to the IFRS report.

Earnings before taxes, depreciation and amortization (EBITDA) grew 17.4% year-on-year in the 9M to 11.67 billion rubles. Mosenergo in September raised its 2010 EBITDA forecast 7.5% to 17.2 billion rubles due to weather factors, including the summer heat wave. The FY2010 revenue forecast was not altered.

Revenue in 9M 2010 grew 25.24% year-on-year to 97.515 billion rubles due to higher commercial heat supplies and wholesale market electricity sales, and higher next day prices. Revenue from the sale of electricity and capacity came to 55% of total revenue (up 21.9% year-on-year) and revenue from heat sales to 40.38 billion rubles (up 31%).

Net debt fell 44.4% during the 9M to 8.95 billion rubles, with short-term debt growing 130% to 4.8 billion rubles and long-term debt falling 28.7% to 11.878 billion rubles.

Mosenergo is one of Russia's biggest generating companies, with 17 power plants and combined capacity of approximately 12 gigawatts. Gazprom controls the company and the City of Moscow owns a blocking stake.

Pr

Finland and Russia decide on 800 MHz spectrum usage for LTE serviceshttp://wirelessfederation.com/news/32148-finland-and-russia-decide-on-800-mhz-spectrum-usage-for-lte-services/

Finland and Russia have held talks on making the 800 frequency band available for mobile communications. As a result of the talks, Finland may begin the production of LTE test networks within this frequency band.

Agreement was reached in Moscow at a meeting last week of the working group on frequency management, a body operating under the Finnish-Russian Commission for Economic Cooperation.

Director-General Juhapekka Ristola, leader of the Finnish delegation, believes that the outcome of the talks is a significant step forward. The meeting was preceded by a technical meeting between frequency management experts of both countries.

In Finland, a decision had already been made at an earlier stage to allocate the 800 frequency band to new, high-speed mobile communications networks. In Russia, the same frequency band is used by air navigation systems, which is why, taking it into use in Finland requires frequency coordination.

The spectrum authorities of the two countries continue their cooperation, exchanging information on issues such as the impacts of test use.

The 800 band has excellent technical features as it enables network construction at considerably lower costs than the 1800 and 2600 MHz frequency ranges, which have also been allocated to next generation mobile communications systems.

Turkmenistan May Shut Down Russian MTS Mobile Servicehttp://www.eurasianet.org/node/62611

December 21, 2010 - 2:24am, by Catherine A. Fitzpatrick

MTS Turkmenistan, the Turkmen branch of the Russian mobile company MTS (Mobile TeleSystems), the largest cellular operator in Russia and the Commonwealth of Independent States, received a notice from the Turkmen Ministry of Communications yesterday telling them that their license was suspended effective today, regnum.ru reported.

No explanation was given.

The notice said that "communications and Internet services in Turkmenistan may be suspended for a period of one month," and express payment and pin codes would also no longer be activated.

MTS suffered some outage earlier this month where Internet connection was lost, but reported that it was due to an accident at a switching station.

In 2005, Barash Communications Technologies, Inc. (BCTI), a U.S.-owned company which was founded in Turkmenistan in 1994, and MTS signed an agreement with the Turkmen Ministry of Communications, under which the government received 20 percent of the profits. That agreement expires today.

MTS has grown rapidly and has more than 2.4 million customers in Turkmenistan, a largely desert-covered country with a population of over 5 million, controlling 85 percent of the market. The Turkmen government company Altyn Asyr has only 310,000 customers.

Why wouldn't the government of Turkmenistan make sure that this agreement was renewed so they could keep getting their healthy 20 percent cut?

It's unlikely because they want to shut off people's mobile web connection so they wouldn't see WikiLeaks cables about Turkmenistan, and more likely that Ashgabat just hasn't come to terms with the Russian company. Relations with Russia have soured this year with Gazprom slashing its gas purchases after the gas pipeline explosion controversy in April 2009 and the global recession. Yet the Turkmen leadership has very good relations with some Russian companies it likes, i.e. Itera, which gifted the president with a yacht, and with Tatarstan and other republics fulfilling large orders for ships, tractors and heavy equipment.

The independent Uzbek news site fergananews.com (formerly ferghana.ru) citing the Russian news site Vremya Novostei (going out of business under that name), reported earlier this month speculation that the Turkmen government may be trying to get MTS Turkmenistan to sell 50 percent of its stake to the Turkmen Ministry of Communications.

Apparently a condition of extending the license until 2012 was obtaining 51 percent control of MTS Turkmenistan, or else the license would be suspended and equipment seized. MTS did not confirm that any such pressure was being put on their company. In November, customs agents seized a large number of SIM cards, mobile devices and other equipment from NTS, and then a processing center in Ashgabat was flooded, says Vremya Novostei. Authorities in Dashoguz demanded that MTS turn off the fiber-optic line connecting all of Turkmenistan. MTS had to cancel its roaming service. Vremya Novostei speculated that the Turkmen government grab was caused by plunging revenues after Russia's sharp decrease of gas purchases.

At chrono-tm.org, Turkmen Initiative for Human Rights discusses various other rumors circulating about a possible takeover of MTS by the Turkmen government. There is talk that other Russian operators, Megafon and Bee-line, may be asked to take MTS' place; or that BCTI may essentially be nationalized. The equipment has been sealed by authorities and will not be able to be removed from Turkmenistan.

According to one story, the Turkmen government is planning to take over the company and hand over all its equipment and customers a firm registered in Brussels, reportedly headed by Koen Minne, a Belgian lawyer who is considered an "honorary consul" for Turkmenistan in Belgium and the European Union; he has met repeatedly with President Guranguly Berdymukhamedov. Enex has delivered electrical equipment to Turkmenistan in the past.

According to another story, a Chinese company may take over MTS Turkmenistan, but that could also involve a deal between Enex and Chinese businessmen who would form some kind of new venture.

There is no confirmation of any of these rumors, but observers believe it will follow the pattern such seizures have followed in Russia and Central Asian countries in the past -- first, the license is seized, then various infractions and fines and debts are found, then the property has to be nationalized to pay the fines, then the company is sold off to a chosen insider.

MTS has grown rapidly in recent years and has proved very popular with Turkmens, who have found in principle the Russian mobile phones give them more flexiblity with communications with the outside world than state-run Internet providers which block social-media and opposition news sites, although experience has shown over the years MTS can be blocked, too.

TeliaSonera, Altimo appeal Russia merger block-UPDATE 1http://www.forexyard.com/en/news/TeliaSonera-Altimo-appeal-Russia-merger-block-2010-12-21T092606Z-UPDATE-1

Tuesday December 21, 2010 06:26:09 AM GMT

ELIASONERA-ALTIMO/ (UPDATE 1)

* Russian courts have twice blocked merger plans

* Rival shareholder opposes deal

(Adds quotes, background)

STOCKHOLM, Dec 21 (Reuters) - Nordic telecoms group TeliaSonera and the Altimo telecoms unit of Russian businessman Mikhail Fridman have again appealed against a court ruling which blocked a telecoms business merger, Telia said on Tuesday.

TeliaSonera wants to merge its shareholding in Russian mobile phone operator MegaFon with Altimo's stake in Turkcell, Turkey's largest cellphone operator, to solve an earlier dispute.

But the plan ran into opposition from another MegaFon shareholder, billionaire Alisher Usmanov, who owns about a one third stake via his Telecominvest company.

Two Russian courts have blocked the deal, the latest in October. TeliaSonera said it and Altimo had now appealed against that latest ruling.

Telia's headaches linked to Russian and Turkish operations began in 2005, when Turkish holding company Cukurova backed away from a deal to sell shares in Turkcell to Telia, opting instead for an agreement with Alfa Group, of which Altimo is a part. (Reporting by Patrick Lannin; Editing by Dan Lalor)

Telenor: Vimpelcom deal not good enough, for nowhttp://www.reuters.com/article/idUSOSN00490120101221

3:08am EST

OSLO, Dec 21 (Reuters) - Norway's Telenor (TEL.OL: Quote, Profile, Research, Stock Buzz) said on Tuesday that Vimpelcom's (VIP.N: Quote, Profile, Research, Stock Buzz) $6.6 billion bid for mobile assets held by Weather was "not good enough" but that it was open to reconsider if the transaction's terms were improved.

Vimpelcom's board said it will seek to negotiate new terms for the deal, which gives the Russian group control of Egypt's Orascom (ORTE.CA: Quote, Profile, Research, Stock Buzz) and Italy's Wind, after shareholder Telenor voiced its opposition to the transaction. [ID:nLDE6BK03A]

"We maintain our view that it is not a good enough deal, neither financially or strategically," Telenor's spokesman Dag Melgaard told Reuters. "It's not a setback as we maintain the same view as we have signalled."

Asked if Telenor would consider new terms if Vimpelcom managed to improve them, Melgaard said: "We haven't dug any trenches and are of course willing to look at what the organisation comes up with."

(Reporting by Wojciech Moskwa)

UPDATE 1-Vimpelcom votes for Weather deal, may amend termshttp://af.reuters.com/article/egyptNews/idAFLDE6BK03A20101221

Tue Dec 21, 2010 6:31am GMT

* Supervisory board approved proposed combination

* Did not approve amended shareholder agreement

* CEO to further negotiate with Weather terms of the deal

(Releads with Vimpelcom statement, adds background)

MOSCOW, Dec 21 (Reuters) - Vimpelcom (VIP.N) will negotiate new terms for a proposed $6.6 billion bid for telecoms assets of Weather after opposition from its Norwegian shareholder Telenor (TEL.OL) prevented it from approving a shareholder agreement.

Telenor, the Russian mobile group's second-biggest shareholder, said on Monday it would not back the deal for a controlling stake in Egypt's Orascom (ORTE.CA) and Italy's Wind, despite initial support. [ID:nLDE6BJ0A8]

Vimpelcom said late on Tuesday that six of nine directors voted in favour of the transaction, with the Telenor-nominated directors voting against, but "no agreement has been reached with respect to the shareholder related agreements that were contemplated to be entered into in connection with the deal."

The initial agreement between Altimo, telecoms arm of Mikhail Fridman's Alfa Group, and Telenor was signed in 2009 as part of a high-profile peace deal between the two warring investors and needs to be amended in order to include Weather.

Amsterdam-headquartered Vimpelcom said the board had authorised its chief executive to negotiate further with Weather on the terms and conditions under which Weather "would be willing to enter into a revised transaction." (Reporting by Maria Kiselyova; Editing by David Cowell)

VimpelCom to Seek Revised Sawiris Deal After Telenor Opposition http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aSXTwDlURI8A

By Ragnhild Kjetland and Jonathan Browning

Dec. 21 (Bloomberg) -- VimpelCom Ltd., the Russian mobile- phone operator seeking to combine assets with Naguib Sawiris’s Weather Investments SpA, will pursue a new agreement after its biggest shareholder rejected an initial $6.5 billion proposal.

Telenor ASA, which owns almost 40 percent of VimpelCom, said yesterday that the transaction won’t help the business or shareholders. VimpelCom said in a later statement that its board asked Chief Executive Officer Alexander Izosimov to negotiate a revision after the three Telenor-appointed directors voted against the proposal in its current form.

Telenor’s opposition threatens the possible creation of the world’s fifth-largest mobile-phone company. VimpelCom, Russia’s No. 2 wireless operator, and Egyptian billionaire Sawiris agreed in October to merge their assets, including a 51.7 percent stake in Egypt’s Orascom Telecom Holding SAE and all of Italian mobile operator Wind Telecomunicazioni SpA.

Telenor is “paying for assets where the price isn’t spectacularly cheap and at the same time they are giving up part of their influence,” said Dalibor Vavruska, an analyst for ING Bank NV in London, in a phone interview yesterday. He said Telenor might be “playing a game” to get a “good deal.”

Telenor shares rose less than 1 percent to 92.60 kroner in Oslo trading yesterday. Orascom Telecom dropped 1.4 percent to 4.24 Egyptian pounds in Cairo. VimpelCom rose 2.6 percent to $15.23 in New York, valuing the company at $19.7 billion.

Revised Transaction

In light of Telenor’s opposition, Vimpelcom’s board authorized CEO Izosimov to negotiate “the terms and conditions under which Weather would be willing to enter into a revised transaction.” The three Telenor-appointed board members voted against the transaction, VimpelCom said in the statement.

The board didn’t approve an amended shareholder agreement for the proposed transaction, and it didn’t vote on certain other agreements, VimpelCom said in the statement.

Telenor withdrew its support for the deal because of the “information available and recent developments,” it said yesterday in a statement.

“We have made a complete evaluation of the financial and strategic terms of the deal and concluded that it doesn’t make sense,” Dag Melgaard, a spokesman at Fornebu, Norway-based Telenor, said in a phone interview. “When the deal was initially presented to the board, we said yes, with reservations.”

VimpelCom and Weather delayed the signing of a shareholder agreement while Orascom tries to resolve a dispute with the Algerian government over its local unit, Djezzy.

Algeria’s Djezzy

The Algerian government, which wants to buy Djezzy, has ordered Orascom to pay more than $800 million in back taxes and banned it from transferring money abroad, penalties that Orascom has contested. The Egyptian company has said it could be in international arbitration by the second quarter of next year unless it can resolve the dispute.

Telenor’s Melgaard said VimpelCom needs a simple majority to go ahead with the deal. Telenor has three representatives on the nine-person board, Moscow-based Altimo owns 39 percent and minority shareholders hold the remaining 21 percent.

ING Bank’s Vavruska, who has a $21.30 price target for VimpelCom shares, said it would be difficult to find banks that are willing to refinance the debt if the shareholders can’t agree on the deal. VimpelCom plans to borrow money to refinance existing debt as well as cover the cash component of the Weather combination.

VimpelCom hired six banks to provide a $4 billion loan to finance the deal, a person with knowledge of the situation said Dec. 13. Barclays Capital, BNP Paribas SA, Citigroup Inc., HSBC Holdings Plc, ING Groep NV and Royal Bank of Scotland Plc will provide the short-term financing, which will be refinanced with bonds next year, said the person, who declined to be identified because the transaction is private.

Failed Deals

Vavruska said a fairer price for the assets would be about $2 billion less than VimpelCom is currently planning to pay.

Had the companies combined in 2009, they would have had total revenue of $21.5 billion and earnings before interest, taxes, depreciation and amortization of $9.5 billion. The new company would have operations in 20 countries and net debt after the combination of as much as $24 billion, VimpelCom has said.

The deal is Sawiris’s second attempt this year to sell assets of Orascom, the largest publicly traded mobile-phone company in the Middle East. Talks with South Africa’s MTN Group Ltd. failed in June.

VimpelCom, with a listing on the New York Stock Exchange, was formed from the consolidation of Russian billionaire Mikhail Fridman’s Alfa Group and Telenor holdings in Russian and Ukrainian mobile-phone operators.

To contact the reporter on this story: Ragnhild Kjetland in Frankfurt at rkjetland@bloomberg.net; Jonathan Browning in London jbrowning9@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net.

Last Updated: December 20, 2010 21:36 EST

Vimpelcom vote on Weather looms after Telenor snubhttp://in.reuters.com/article/idINLDE6BJ1NS20101221

8:30am IST

* Supervisory board due to vote on $6.6 bln deal on Tuesday

* Telenor not supporting deal for Orascom, Wind

* Outcome hinges on votes of independent directors

MOSCOW, Dec 21 (Reuters) - Vimpelcom (VIP.N: Quote, Profile, Research) will meet on Tuesday to vote on a $6.6 billion bid for Weather, with all eyes now on three independent directors after second-biggest shareholder Telenor (TEL.OL: Quote, Profile, Research) said it would not back the deal.

Vimpelcom, Russia's No. 2 mobile operator, said in October it wanted to buy telecoms assets including Italy's Wind and a controlling stake in Egypt's Orascom (ORTE.CA: Quote, Profile, Research) -- together known as Weather -- from Egyptian tycoon Naguib Sawiris.

But Telenor, owner of 36 percent of voting rights in Vimpelcom, said on Monday it would not back the deal despite initial support. [ID:nLDE6BJ0A8]

The acquisition requires the votes of six of the nine members of the supervisory board, meaning three board members nominated by other major shareholder Altimo and the three independents must all back it for the deal to go ahead.

Altimo is the telecoms arm of Russian billionaire Mikhail Fridman's Alfa Group.

"The fact that Alfa and Sawiris are so interested in the merger means they will not allow the deal to fall apart and they will try to push Telenor to approve the ... merger," VTB Capital analyst Viktor Klimovich said.

He added there could potentially be "a change in some of the deal's conditions".

Amsterdam-headquartered Vimpelcom said in a Monday statement its supervisory board "will consider the interests of all of the company's shareholders in reaching its decision".

Whatever the outcome of the vote, the transaction also needs the amendment of a 2009 shareholder agreement between Telenor and Altimo, signed as part of a high-profile peace deal between the two warring investors.

(Reporting by Maria Kiselyova; editing by John Bowker and David Hulmes)

Russia: Daimler, GAZ to invest €100m in van venturehttp://www.automotiveworld.com/news/oems-and-markets/85203-russia-daimler-gaz-to-invest-100m-in-van-venture

Tuesday, December 21, 2010, AutomotiveWorld.com

Russian vehicle manufacturer GAZ Group, owned by billionaire Oleg Deripaska, has entered into an agreement with Daimler to assemble Mercedes-Benz Sprinter vans in Russia.

Bloomberg, citing Dmitry Levchenkov, a department head in the country's Economy Ministry, said the companies will invest a total of €100m (US$132m) in this project. The assembly line will be located at GAZ's plant in Nizhny Novgorod.

Production of the Sprinter vans is scheduled to commence at the end of 2011, the report said. According to Levchenkov, output of these vans may reach up to 60,000 units per year.

GAZ spokesperson Natalia Anisimova declined to comment, while Daimler spokesperson Uta Leitner was not available for comment, the newswire said.

GAZ has a significant share of the Russian market for light trucks and buses, but a small share (<1%) of the passenger car market. In an interview earlier this year, the company's chief executive officer Bo Andersson said the OEM is looking at contract manufacturing as the mode to boost its revenue.

The company is in talks with Volkswagen to assemble cars for the German OEM on contract, Bloomberg said, citing a Deripaska interview on 15 November.

Daimler, meanwhile, recently entered into a new agreement with Russian vehicle manufacturer KamAZ to produce axles in Russia. The JV, to be set up with an initial investment of €50m, will supply axles to KamAZ and to the Mercedes-Benz Trucks Vostok JV, and eventually to Germany as well in the future.

Published on Tuesday, December 21, 2010

Deripaska’s En+, S. Korea to Develop Siberia Iron Ore (Update1) http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aDQY.qcw1Nrs

By Ilya Khrennikov

Dec. 20 (Bloomberg) -- Russian billionaire Oleg Deripaska’s En+ Group Ltd. agreed with South Korean investors led by state- owned Korea Resources Corp. to jointly develop the Chinea iron ore field in Siberia.

The South Korean group will invest at least $1 billion, while En+ will keep a controlling stake through unit Strikeforce Mining & Resources Ltd., EN+ said today in an e-mailed statement.

“The fast-growing Asian markets have already become the global center of commodities and metals consumption,” Artem Volynets, first deputy chief executive officer at En+, said in the statement. “Our partnership with the South Korean consortium to develop the Chinea deposit is a logical step in the further expansion of En+ towards those markets.”

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

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

Last Updated: December 20, 2010 12:41 EST

Leviev's Mall of Russia to open in late Januaryhttp://www.globes.co.il/serveen/globes/docview.asp?did=1000609861&fid=1124

AFI Development has renamed its flagship Moscow mall the AFIMALL City.21 December 10 09:57, Globes' correspondent

AFI Development plc (LSE:AFID), the Russian development arm of Lev Leviev-controlled Africa-Israel Investments Ltd. (TASE:AFIL), today announced that it expects to open its flagship Mall of Russia in Moscow by the end of January. The company had previously set an early December opening date. The company has also renamed the project AFIMALL City.

The delay in the mall's opening means that it misses the Christmas shopping season. Christmas in the Russian Orthodox Church calendar falls on January 7, rather than on December 25.

Activity in the Oil and Gas sector (including regulatory)

21.12.2010

Russian Ministry Increases Oil Price Outlook From $75 to $81 Per Barrelhttp://www.oilandgaseurasia.com/news/p/0/news/10072

The Russian Economic Development Ministry has increased its outlook for the price of Urals crude in 2011 from $75 per barrel to $81 per barrel, Economic Development Minister Elvira Nabiullina said during an interview on the Russia 24 television channel.

"We have increased our outlook for next by just a bit: we now believe that the most likely price for oil could be around $81. Earlier, we forecast that it would be $75, but we still believe our outlook is rather conservative. There are also higher predictions, but we think they are less likely", she said.

Nabiullina noted that her ministry forecast a price of $75 for this year, while the true average price was $77.60 to $77.80. "We were accused of not being conservative enough, but it turned out that our forecast was fairly conservative after all", she said.

Copyright 2010, Oil and Gas Information Agency. All rights reserved.

Russia-China oil pipeline tested successfullyhttp://english.ruvr.ru/2010/12/21/37313335.html

Dec 21, 2010 09:46 Moscow TimeThe Russian-China oil pipeline has been tested successfully by pumping process oil through it, says the China National Petroleum Corporation, - the pipeline operator for China. The oil pipeline is an offshoot of Russia’s strategic oil pipeline from Eastern Siberia to the Pacific Ocean. Russia will supply an annual 15 million tons of oil to China as of next year.  

21.12.2010

Inspection Completed on Russia-China Oil Pipelinehttp://www.oilandgaseurasia.com/news/p/0/news/10071

Tests on pumping technical oil through the Russia-China oil pipeline have been completed successfully, the China National Petroleum Corporation reported on Monday. CNPC operates the pipeline on the Russian side.

Tests on the pipeline began on November 2.

Fifteen million tons of crude a year will be delivered by the pipeline which is scheduled to begin operations in 2011.

Copyright 2010, Oil and Gas Information Agency. All rights reserved.

20.12.2010

Rosneft To Build Petrochemicals Complex In Primoryehttp://www.oilandgaseurasia.com/news/p/0/news/10061

Rosneft has decided to build a petrochemicals complex in Primorye instead of a refinery, Kommersant reports. The complex will have processing capacity of 5.5 million tons.

The petrochemicals complex will have two lines – a petrochemicals line and a refining line, company head Eduard Khudaynatov said.

The petrochemicals part of the complex will process 3.5 million tons of naphtha (straight run gasoline) and liquified hydrocarbon gasses a year and 1.5 million tons of gas condensate. The refining part of the complex will process 5 million tons a year using the raw materials from the petrochemicals side.

Rosneft has been planning the project to build the plant at the end of the ESPO pipeline in Kozmino port since 2007.

Copyright 2010, Russian Economy Ministry Statistics Department. All rights reserved.

21.12.2010

Moscow Refinery Processes 865,390 Tons of Crude in Novemberhttp://www.oilandgaseurasia.com/news/p/0/news/10074

The Moscow Refinery processed 865,390 tons of crude in November 2010, or 24,860 tons more than in the same period in 2009.

Light product production accounted for 58.91 percent including gasoline (25.69 percent),

kerosine (6.44 percent) and diesel fuel (26.78 percent).

Refining depth in November was 71.83 percent.

Copyright 2010, Russian Economy Ministry Statistics Department. All rights reserved.

10:36TNK-BP buys 75% minus one share in Sheremetyevo fuel depothttp://www.interfax.com/news.asp

TNK-BP Held First Meetings of Conflict Resolution Commissions for Interaction with Contractorshttp://www.tnk-bp.com/press/news/2010/12/2347/

December 21, 2010, Tuesday

First meetings of conflict resolution commissions, established in the framework of activities of contractor relations advisory councils for interaction with suppliers and contractors of TNK-BP, were held in the Corporate Center of TNK-BP in Moscow and in the branches and representative offices of TNK-BP in Tyumen, Nizhnevartovsk, Orenburg, Saratov and Kiev.

The conflict resolution commissions received four complaints from contractors and decided to satisfy three of them. In particular, the West Siberia conflict resolution commission resolved to select a contractor again due to violations of the contractor selection procedure. One of the complaints requires additional investigation and will be discussed at the next meeting in January 2011.

Apart from that, issues related to conclusion of contracts in 2011 and improvement of the procedure of investigating contractors’ complaints and making objective decisions were also discussed at the meetings.

Conflict resolution commissions were created for settlement of controversies and disputes, consideration of grievances from suppliers and contractors related to pre-qualification and selection of contractors, and handling of complaints from contractors related to their disqualification.

“We have kept our promise given to contractors and held first meetings of conflict resolution commissions according to the schedule. The decisions made on the received complaints will undoubtedly increase contractors’ faith and confidence in this conflict settlement instrument and help develop the conflict resolution commissions as the basis for rendering impartial estimates and resolutions on issues and moot points,” said Anatoly Tyomkin, Executive Vice President, Support Services, TNK-BP.

Regional conflict resolution commissions will generally meet at least once a month and have extraordinary sessions for special cases.

The form of complaints to conflict resolution commissions and detailed information on activities of conflict resolution commissions can be found at www.tnk-bp.com/procurement/council/.

TNK-BP Ukrainian Refinery Plans to Raise Processing This Monthhttp://www.businessweek.com/news/2010-12-20/tnk-bp-ukrainian-refinery-plans-to-raise-processing-this-month.html

December 20, 2010, 8:35 AM EST

By Daryna Krasnolutska

Dec. 20 (Bloomberg) -- TNK-BP’s Linik refinery in Ukraine plans to increase its crude oil processing by about 26 percent in December from the previous month.

The plant, in the eastern city of Lysychansk, will process 432,500 metric tons of crude oil this month, compared with 341,900 tons in November, Kiev-based OOO TNK-BP Commerce said today in an e-mailed statement. The plant will produce 146,300 tons of gasoline this month, compared with 79,900 tons in November, according to the statement. TNK-BP, Russia’s third- largest oil producer, is half owned by BP Plc.

--Editors: Torrey Clark, Alex Devine

To contact the reporter on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net

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

Russia stakes $25bn claim on Asian oil bonanzahttp://www.gulf-times.com/site/topics/printArticle.asp?cu_no=2&item_no=405660&version=1&template_id=48&parent_id=28

Publish Date: Tuesday,21 December, 2010, at 02:04 AM Doha Time

Halfway down a muddy slope in the Russian taiga, a team of welders shelters in a small tent to solder two giant steel pipes, bringing Russia 24m closer to its Asian oil El Dorado.

When the 4,070-km East Siberia-Pacific Ocean (Espo) oil pipeline’s second stage is finished in 2013, it will be the world’s longest. At a cost of $25bn, it dwarfs all other infrastructure projects in post-Soviet Russia. But price is no object when it comes to ensuring that Russian oil producers, which generate 44% of federal revenues, penetrate Asian markets that Opec expects to account for 75% of world demand growth through to 2030. “This was a historic inevitability,” said Al Troner, managing director of Asia Pacific Energy Consulting. “Ultimately, Russia has to go East. Europe is a busted flush. It’s fast becoming a mature market,” Troner added. “Russia is giving companies access to a new, growing market, but under the government’s terms of course.” Russia is the world’s largest oil producer, trumping Opec member Saudi Arabia while the kingdom holds back some output. But most of its 48,000-km oil pipeline network is concentrated in West Siberia and runs toward Europe. Opec, whose members are Russia’s rivals for the eastern oil bonanza, estimates that Asian consumers will drive global oil demand up 20% over the next 20 years to 105.5mn bpd.When the 7,000 construction workers complete their muddy slog to the Pacific, Siberian oil will zigzag through Russia’s eastern woodlands, bypassing the narrow Gulf straits choked by tanker traffic carrying Middle Eastern crude to Asian refiners. Those refiners, in turn, are paying record prices for the new crude on the block, while Middle Eastern producers are struggling to claw back market share. And by guaranteeing an outlet for Siberian oil in Asia, Espo insures Russia’s public finances against a future decline in demand for Russian oil in Europe. “Budget revenues here are crucial,” said David Dusseault, a Russian energy specialist and professor at Helsinki University. “The project conceivably could pay for thousands of social development projects if rent is distributed effectively among the players involved. Success can also be interpreted in political terms.” But Russia must pay to play. State oil pipeline monopoly Transneft heavily subsidises the long journey from Western Siberia—the source of two-thirds of ESPO Blend crude sold in the Pacific—to lure the barrels east. Transneft now ships 300,000 bpd of crude along the first stage of the pipeline, which was commissioned in December 2009 and runs in a 2,757-km arch above Lake Baikal. From there the oil is transported by rail to its Pacific port of Kozmino. Espo Blend’s premium to benchmark Dubai crude has risen to $2.60-$2.80 per barrel as refiners in Japan, Korea and on the US West Coast have snapped up the grade, which has a shorter delivery time than long-haul Mideast crudes. Once phase two of Espo is completed, volumes will double to 600,000 bpd, or 30mn tonnes per year, with another 15mn tonnes flowing via a pipeline spur to Daqing, China. Yet only one-third of the barrels that make up the light, medium-sweet blend actually comes from new East Siberian fields. “To make sure (the pipeline) is filled, (Transneft) has to take the money paid by firms sending crude in other directions and use it to subsidise deliveries east. This is typical for such a large Corp,” said a government energy source. The subsidy is key as it persuades producers with “swing” deposits equidistant to Europe and Asia to send oil east.

“Russia will have to subsidise oil transportation tariffs to the East (via Espo) due to its length as long as the route exists, unless some major oil deposits appear in the eastern part of the country,” a trade source told Reuters.From Siberia’s Samotlor hub, from where oil can go west or east, transport data for December showed shippers paid 40% less per kilometre to ship a tonne of oil to the Pacific terminal at Kozmino than to Novorossiisk on the Black Sea. And while the total cost of the 3,750-km route to the Black Sea is 1,450 roubles per tonne, the journey to Kozmino, nearly twice the distance from Samotlor, costs 1,850 roubles. From the Arctic Yamal Nenets region, 500 km north of Samotlor, where all output from current and future greenfields has been earmarked for the east, it becomes even cheaper to send a tonne of crude to Kozmino. The Arctic-Eastern link will only grow longer. Most of the new oil to feed Espo will come from Russia’s Arctic oil frontier via a new line that will effectively extend the existing route by which crude is evacuated from Rosneft’s giant Vankor field. Eager to begin pumping, oil majors Lukoil, Gazprom Neft and TNK-BP, all developing deposits in the remote Arctic region, have agreed to co-fund construction of a pipeline link from Zapolyarnoye to Purpe. Most dependent on the new Arctic spur is TNK-BP, half-owned by BP, which has 18.3mn barrels of light oil in its Arctic Suzunskoe and Tagulskoe fields, and 2.25bn barrels of heavy oil in the Russkoe field, and wants to pump from 2013. For now, benefits are felt by firms already able to ship crude to Kozmino from East Siberia, namely Rosneft and TNK-BP, yet all have seen their tariffs rise. “Export to the east is a political issue,” said a trader at a Western major. “And politics is always an expensive pleasure.”

Gazprom

Gazprom sees debt to EBITDA ratio at 1 by 2011http://af.reuters.com/article/energyOilNews/idAFWLA147220101221

Tue Dec 21, 2010 9:23am GMT

MOSCOW Dec 21 (Reuters) - Russia's Gazprom (GAZP.MM), the world's largest gas producer, expects its total debt to core profit (EBITDA) ratio to fall to around 1 by the beginning of next year, it said in a Tuesday statement.

The ratio stood at 1.49 at the beginning of 2010 and 1.09 as of June 30, 2010, it added.

Gazprom, one of the country's biggest corporate borrowers, said its total debt amounted to 1.35 trillion roubles ($43.85 billion) by the end of June. (Reporting by Katya Golubkova, editing by Maria Kiselyova)

11:21GAZPROM FORECASTS GAS PRODUCTION OF 570-580 BCM BY 2015

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

Gazprom cuts output forecast to 570-580 bcm by 2015http://en.rian.ru/news/20101221/161868350.html

12:18 21/12/2010

MOSCOW, December 21 (RIA Novosti) - Russia's gas giant Gazprom has cut its gas output forecast for 2015 to 570-580 billion cubic meters per year due to worsening market conditions, the company said on Tuesday.

"As it was noted at a board of directors meeting, the development of internal and international gas markets helps forecast gas production of the Gazprom group at up to 570-580 bcm by 2015," Gazprom said in a statement.

In the pre-crisis year of 2008, when the company produced about 550 bcm of gas, Gazprom CEO Alexei Miller said that output could grow to 570 bcm in 2010 and reach 610-615 bcm in 2015.

In November 2010, Gazprom cut its forecast for this year's gas output to 515 bcm from 520 bcm.

Gazprom sees output up to 570-580 bcm/yr by 2015http://af.reuters.com/article/energyOilNews/idAFLDE6BK0DF20101221

Tue Dec 21, 2010 8:29am GMT

MOSCOW Dec 21 (Reuters) - Russia's Gazprom (GAZP.MM), world's biggest gas producer, sees its output rising to up to 570-580 billion cubic metres per year by 2015, the company said on Tuesday.

"The current assumption of internal and external gas markets prospects allows to forecast Gazprom's gas output at up to 570-580 billion cubic metres by 2015," Gazprom said.

Last year, when the weak global economy lowered industrial demand for gas, Gazprom saw its production sink to record lows of 461.4 bcm, off 16 percent from the 550 bcm it produced in 2008.

(Reporting by Katya Golubkova, editing by Toni Vorobyova)

Yamal output growth to ease http://www.upstreamonline.com/live/article239952.ece

The Yamal Nenets region, which pumps 85% of Russia's gas, will see its natural gas output growth slow slightly in 2011 after this year's 13% leap in production, the region's deputy governor said today.

News wires  20 December 2010 11:47 GMT

This may bear signs of a prolonged weakness for Gazprom, the world's top gas producer, which expects gas demand to recover to pre-crisis levels in 2012.

Last year, when the weak global economy curbed the industrial demand for gas, Gazprom saw its production sinking to record lows of 461.4 billion cubic metres, off 16% from the 550 Bcm it produced in 2008, reported Reuters.

Compounding the demand slump for Gazprom's product in Europe, is a surge in global supply of liquefied natural gas and gas produced from shale in the US.

Both factors have depressed gas prices.

Vladimir Vladimirov, first deputy head of Yamal Nenets region governor, told reporters last week that the region will see natural gas production increasing by 13% this year to 546.4 Bcm, while next year it will rise by further 3.4% to 564.8 Bcm.

According to Energy Ministry data, overall Russian natural gas production between january and November this year rose by 13% year-on-year to 586.75 Bcm.

Published: 20 December 2010 11:47 GMT  | Last updated: 20 December 2010 14:56 GMT

Okhta center in Yerevan?http://news.am/eng/news/42425.html

December 20, 2010 | 17:49

Gazprom CEO Alexei Miller has presented the details of the Okhta Centre construction project. “Our partners from Armrusgasprom proposed the construction of the business center in Yerevan,” Miller said in an interview with Itogi as he spoke of the Okhta Centre construction project near Okhta Cape, which is not to be implemented.

Miller does not object top the construction of such centers in Omsk, Vladivostok and Yerevan, as Gazprom has got propositions from the cities.

Talking to NEWS.am, a source at Armrusgasprom confirmed the information that an Okhta Center-like business center may be constructed in Yerevan. The former Armrusgasprom Chairman Karen Karapetyan (now Yerevan Mayor) and Gazprom CEO Alexey Miller reached a tentative agreement on a business center construction project. The sides also agreed on Russian investments in Yerevan.

Gazprom delegation arrived in Armeniahttp://news.am/eng/news/42413.html

December 20, 2010 | 16:48

The delegation of Gazprom JSC headed by Anatoly Podmishalsky, chief of Gazprom’s division in charge of relations with the near abroad, has arrived in Armenia. In the course of his visit, Podmishalsky met with Yerevan Mayor Karen Karapetyan and congratulated him on his appointment. Tomorrow Podmishlasky will present a new director to ArmRusGazprom administration.  

Newly elected Mayor of Yerevan Karen Karapetyan was the Chairman of “ArmRusgazprom” board. Inauguration ceremony of a new mayor took place in Yerevan City Hall today.  

As NEWS.am reported earlier, the Council of Alderman elected Karen Karapetyan the Mayor of Yerevan with 50 votes for and 1 against.

Spokeswoman for ARG Shushan Sardarian told NEWS.am that Deputy Chairman of ArmRusgasprom Board Vardan Harutyunyan was appointed Chairman of ArmRusgasprom Board.

Gazprom Neft May Opt For St. Petersburg Business Centerhttp://www.times.spb.ru/index.php?action_id=2&story_id=33318

VedomostiGazprom Neft may rent out the new Quattro Corti business center managed by Megapolis Property Management.

Gazprom Neft subsidiaries have agreed to rent premises in the A-class business center, which opened in October at 3-5 Pochtamtskaya Ulitsa, two real estate consultants told Vedomosti. A representative of Megapolis confirmed that a preliminary rental agreement had been signed by Quattro Corti and Gazprom Neft. A final agreement has not yet been signed, and the plan is for the company to rent out the entire building, he added.

Gazprom Neft reregistered in St. Petersburg in 2005. Representatives of its subsidiary, Okhta Public and Business Center, announced the state oil company’s intention to move its headquarters to St. Petersburg in 2011. Okhta changed its mind about building a controversial skyscraper for its headquarters opposite Smolny Cathedral earlier this month.

Latvia, Gazprom agree on lower price for natural gas

http://www.itar-tass.com/eng/level2.html?NewsID=15799839&PageNum=0

20.12.2010, 23.24

RIGA, December 20 (Itar-Tass) -- The Latvian gas company Latvijas Gaze signed an contract with Russia’s Gasprom for natural gas supplies in 2011, according to which the purchasing price of gas for this Baltic country will be 15 percent lower than this year.

The purchasing price for Russian natural gas is one of the factors that is taken into account when determining gas tariffs for Latvian consumers. Under the new contract, the price of gas will decrease from January 1, 2011 by 4-7 percent for Latvian households and by 5 percent for industrial consumers.

In February of last year, Latvijas Gaze and Gazprom signed a contract for natural gas supplies, under which the Russian company guaranteed a sufficient volume of gas for this Baltic country until 2030.

Latvijas Gaze said the key role in the tariffs is still retained by the purchase price, which, for its part, significantly depends on the oil price and currency rates. Currently, both of them are on a negative trend, therefore the natural gas price in the longer term is difficult to predict. It is necessary to remember that the reduced VAT rate will rise from 10 percent to 12 percent in 2011, and the basic rate will increase as well. Moreover, from July 1, 2011, the excise tax will be applied to natural gas for household and heating needs, which will result in higher end-user tariffs.

Latvijas Gaze is the only natural-gas transmission, storage, distribution, and sales operator in Latvia. The company ensures the supply of natural gas to 442,000 customers in Latvia; during heating season, the company also supplies natural gas, from the Incukalns Underground Gas Storage Facility, to Estonia, northwestern Russia, and Lithuania.

As of December 31, 2009, 34 percent of shares in the company were owned by Gazprom, 47.23 percent belonged to German E.OH Ruhrgas, 16 percent to Itera Latia, and 2.77 percent to other shareholders.

St. Pete Court Bans Towering Buildings http://www.themoscowtimes.com/news/article/st-pete-court-bans-towering-buildings/427381.html

21 December 2010By Irina Filatova

The St. Petersburg City Court on Monday ruled to ban construction of any buildings in the historical center that would be more than 40 meters high in yet another measure that makes Gazprom's Okhta Center project impossible.

In handing down the verdict, the court ruled in favor of the local branch of the Yabloko party that contested the city's permission for the plans by the company's oil arm Gazprom Neft to erect a 403-meter tower, which would dramatically alter the skyline of Russia's imperial capital.

The ruling, which may be appealed in the Supreme Court, came after St. Petersburg Governor Valentina Matviyenko said earlier this month that the city repealed its permission to construct tall buildings in the area and agreed with Gazprom to cancel the project.

Gazprom had hired Arabtec Construction, the biggest construction company in the United Arab Emirates, to do the development.

The Yabloko member in charge of the lawsuit, Maxim Reznik, said the city had changed its mind on the project before the court ruling because it might have wanted to avoid having to obey the court.

In an interview published Monday, Gazprom chief executive Alexei Miller for the first time publicly confirmed that the company had irreversibly canceled the construction of the skyscraper on a spot near the Okhta River.

“It's not a temporary retreat. There will be no Okhta Center project on the Okhta Cape,” Miller told the Itogi magazine in the interview.

He also said Gazprom might sell the site to another investor because implementing a different project on the site wouldn't be profitable.

Gazprom has received a number of proposals to build the Okhta Center elsewhere, including Omsk, where Gazprom Neft has a refinery, and Vladivostok, the terminus of a major gas pipeline that is still under construction, Miller said. The Armenian capital Yerevan has also expressed a desire to host the tower, he said.

The Leningrad region government may also allocate a site to implement the project, Deputy Governor Grigory Dvas said last week, Interfax reported.

Chief architect of the Okhta Center project, Filipp Nikandrov, said he hadn't received any proposals of other possible locations from the St. Petersburg government. Nikandrov said construction of the skyscraper on another site was theoretically possible, but that the project's design was tailored to the Okhta site.

“We have created the Okhta Center specially for this place, and I believe that it would look great at this place. It wouldn't damage the city skyline and would complete it perfectly,” he insisted in a telephone interview from St. Petersburg.

President Dmitry Medvedev urged St. Petersburg authorities earlier this year to reconsider the height of the tower.

Gazprom Neft and ODTs Okhta, which is managing the project, declined to comment on the issue Monday.

Arabtec could not be reached for comment Monday afternoon, but the scuttling of the project might have been an abrupt decision for the company. Its chief financial officer Ziad Makhzoumi said in November that complaints from “different parts of the community” had been addressed and the company was going ahead with the plan to build the skyscraper.