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Monday, 17 May 2010 09:36

Medvedev in Ukraine

Russian President Dmitry Medvedev arrives in Ukraine today for a visit aimed at cementing ties with President Victor Yanukovych and boosting economic cooperation.

Mr Yanukovych has dismissed a proposal for Russia's state gas monopoly Gazprom to take control of Ukraine's gas pipeline network but Russia still hopes for economic integration with the Ukraine gas company and a possible joint venture over the piplines which carry Russian gas to European consumers.

Other deals, on borders, banking, a GPS-type navigation system and nuclear co-operation are due to be signed.

Last month, Ukraine approved a deal with Moscow, extending the lease for Russia's Black Sea fleet at its base on the Crimean peninsula in exchange for significantly cheaper Russian gas imports.

The deal has proved unpopular with Ukraine's opposition, which sees it as undermining Ukraine's sovereignty. Mr Yanukovych defended it as reducing the country's budget deficit. The Crimea Peninsula has a predominantly ethnic Russian population and was only ceded to Ukraine by Soviet head of state Leonid Khruschev.

Ahead of his visit, Mr Medvedev said the navy deal would benefit the security of the whole of Europe.

Analysts say Mr Yanukovych will seek to balance Russia and the EU in pursuit of Ukrainian interests.

 

(BBC)

 

Monday, 17 May 2010 08:24

Djibouti port facilities offered to Russian Task Force

DJIBOUTI - This Horn of Africa state, will provide its port for Russian Navy to fight piracy, Djibouti Navy official representative said at a May Day reception at the Russian embassy.

"We are ready to provide our port for ships of the Russian Navy, which are fighting piracy in the region," he said adding that the port has all essential infrastructures.

The Russian task force comprising the RFS Marshal Shaposhnikov, the MB-37 salvage tug and the Pechenga tanker arrived in the Gulf of Aden on March 29 to join the anti-piracy mission in the region.

Somali pirates carried out a record number of attacks and hijackings in 2009. According to the International Maritime Bureau Piracy Reporting Center, a total of 217 vessels were attacked last year, resulting in 47 hijackings.

Last week Russia had to release ten pirates captured during an operation to free its Moscow University tanker, citing a lack of proper international legal base to carry out prosecution procedures against pirates.

(RIA-Novosti)

 

Monday, 17 May 2010 08:20

Blast-hit mine slashes coal shipments

The company managing the Raspadskaya coal mine in Russia's west Siberia which was recently hit by deadly explosions has reduced coal shipping to consumers by 70%, the company CEO said.

General director Gennady Kozovoi told journalists Sunday that there is no more coal at company depots.

Two methane explosions hit the Raspadskaya mine near the town of Mezhdurechensk in the Kemerovo Region a week ago, killing at least 66 people and leaving over 100 injured.

Twenty-four people are still missing underground but high levels of methane gas in the mine have forced the suspension of rescue work for at least a week.

Analysts polled by RIA Novosti earlier said the Russian market could face a lack of coal due to the Raspadskaya accident. The Raspadskaya mine ensures some 10% of coal supplies in Russia.

Earlier reports suggested that it would take a year to restore the coal mine and that the work would cost some 6 billion rubles ($200 mln).

Kemerovo Region Governor Aman Tuleyev on Saturday blamed the fatal accident at Raspadskaya on the owners of the mine. Raspadskaya owners have become the targets of fierce criticism over the accident, and federal investigators denied on Saturday reports that the company's top executives were under house arrest.

Miners and their families protested in Mezhdurechensk on Friday, claiming that they were forced to disable safety equipment in order to meet production targets, accusations that have been rejected by mine management.

(RIA-Novosoti)

Monday, 17 May 2010 08:16

$15 bn tourism project touted for N.Caucasus

Russia's North Caucasus presidential envoy Alexander Khloponin has proposed an ambitious $15-billion project aimed at reviving the regional tourism industry that twice exceeds the Sochi-2014 Olympic games' costs, a Russian business daily said on Monday.

Kommersant daily quoted the first vice-president of Russian Olympic Committee, Akhmed Bilalov, as saying Russian President Dmitry Medvedev asked Khloponin to make a draft project on creating 5 tourist resorts in the North Caucasus.

The North Caucasus has been plagued by militant violence for years, with attacks on police, soldiers and officials a daily occurrence. It has also seen two brutal separatist wars in Chechnya.

In the nineteenth century and following the Soviet era, the North Caucasus was a major travel spot with picturesque rocks, meadows, mountain rivers, and lakes, which attracted people to the area, as well as sulfur springs and historical Medieval watch towers.

Deputy North Caucasus presidential envoy Maxim Bystrov told Kommersant that resorts are planned to be created in Matlas (Dagestan), Mamison (North Ossetia), Arkhyz (Karachay-Cherkessia Republic), Lago-Naki (The Republic of Adygea) and Elbrus (The Kabardino-Balkar Republic).

The "tourism cluster" will be created between 2011 through 2020.

The cost of the project exceeds twice that for the Sochi-2014 Winter Olympic Games. It is estimated about 451.44 billion rubles ($15 billion). Institutional investors are set to allocate half of the amount and 119.28 billion rubles may be given by private investors.

Khloponin said the government is expected to provide only 13% of the total cost of the project for the creation of the traffic infrastructure and engineering facilities.

Kommersant quoted a member of the working group, IST Cosulting Group executive director, Saaken Kanapyanov, as saying Sberbank may become an investing consultant for the project.

According to the expert, the investment proposals on the projects have already been presented to Morgan Stanley, JPMorgan, Citi, and Allianz investment banks.

Bilalov told Kommersant the payback period for the project is about ten years.

The paper quoted the sports official as saying the new project will give 160,000 workplaces for people in the district. The tourist turnover will comprise 5-10 million people annually, equal to Austria's resort turnover.

Khloponin's optimistic project faces opposition among members of the tourism business community.

"Such figures are unlikely to be reached even after the constructions of new airports," Kommersant quoted a CNP tourism company CEO, Nikolai Puzarin, as saying.

Azimut Hotels Company CEO Alexander Genedelsman told Kommersant that hotels may remain empty because of the short tourism season in Russia (4-6 months).

The authors of the project plan to spend about 175.56 billion rubles ($5.85 billion) to develop the hotel infrastructure.

Chechen President Ramzan Kadyrov said earlier in the year the republic intends to create a large ski resort in its southeastern Argun Gorge, a former militant stronghold.

Kadyrov announced his plans in early January to develop tourism in the republic. He said the Argun Gorge, one of Chechnya's most picturesque areas located on the border with Georgia, could be an ideal place for a ski resort.

(RIA Novosti)

Monday, 17 May 2010 08:15

Putin calls for further cut in inflation

Speaking before the joint session of the Finance and Economy Ministries today, Russian Prime Minister Vladimir Putin focused on the government’s plans to curb inflation.

He tracked the consumer price growth seen this year, and stressed that the 3.5 percent showing for the period from January to April was the lowest since 1991. “Yet we still need to make more ambitions plans,” the PM urged.

Meanwhile, the desirable decline in inflation must not come about as the result of lower demand. Instead, it should be achieved through higher labor efficiency, cost cutting and efficient anti-trust regulation. Furthermore, Putin stressed the importance of the government pursuing a responsible financial policy.

Putin also outlined Russia's future post-crisis development. In his opinion, the government will return to making budget reserves, since the policy has proven to be valuable.

The government will also use its best efforts to remain on track in cutting budget deficit to 3 percent in 2012, and to 0 percent in 2015. Putin noted that with such a policy in place, Russia would be secure amid fluctuations in the demand for Russia's main export commodities. Low budget deficit will also allow Russia to avoid budget cuts and perform all its obligations to its population in full.

Sunday, 16 May 2010 19:04

Russia to Build Turkey's Nuclear Plant

Although South Korea had been making gains in securing deals to build nuclear plants in the Middle East, Russia has emerged as the winner for Turkey's $20 billion nuclear power plant.


The nuclear plant, Turkey's first, will be built at Akkuyu on the country's Mediterranean coast. The awarding of the contract comes despite a Turkish court nullifying a tender last year by a Russian-led group to build four reactors at Akkuyu. 

Russia will own a controlling stake in the plant, making it the first Russian-owned plant outside of Russia. (EIN News)

Sunday, 16 May 2010 18:43

Grappling with Soviet Symbolism

By ANDREI ZOLOTOV Jr.


Five years ago, Russia Profile, the English-language, government-funded but editorially independent publication I run, came under attack from an overzealous government official for trying to analyze Victory Day — the sacred Russian holiday that marks the end of World War II in Europe — from several different standpoints.


One of our publication’s presumed sins was that, along with traditional fare such as interviews with veterans, we commissioned a Polish writer to do an article on the resentment in much of Central and Eastern Europe over the fact that liberation from Nazi occupation was followed by Soviet domination. We also analyzed how over-reliance on our World War II victory was being used as the basis for forging a modern Russian identity.

 

 


But the Kremlin’s effort to cement Russia’s status as world power by clinging as much a possible to the post-1945 era was short-sighted. It is clear today that the 60th anniversary of the World War II victory in 2005 was the peak of ideological efforts to rehabilitate Soviet symbols and consolidate the population of the Russian Federation — that nation in the making — on the basis of the Soviet, essentially Stalinist, concept of the Great Patriotic War.


Back then, our government tried to impose this perception on the rest of the world. We got a negative reaction, mainly from Poland, but also from people in the Baltic states, as well as in Ukraine. We remember well all the talk about those who refused to come to the parade in Moscow, as well as other similar developments, like the scandal in Tallinn, the Estonian capital, over efforts to move the monument to the Soviet soldier away from the city center.


Several months ago, as the build-up for the 65th anniversary began, I worried that the neo-Stalinist trend would lead to more exercises in chest-banging that would once again alienate our neighbors and reinforce the Soviet-like image of modern Russia. I was afraid it would be even worse than it was five years ago.


But I was wrong. In fact, things turned out much better than they did five years ago. It would be a simplification to say that it is all due to President Dmitri Medvedev, as opposed to his predecessor, the current prime minister, Vladimir Putin.


The remarkable Russian-Polish reconciliation, which began with the 70th anniversary of the Katyn massacre in early April, reportedly originated from Mr. Putin’s office. It was magnified by the crash of the Polish presidential plane in Smolensk and the outpouring of popular sympathy, which did much to lift the centuries-long animosity between the two nations, something no inter-government commissions could have ever achieved.


Yet Mr. Medvedev as clearly left a personal, softer mark on the ceremonies last Sunday. Having foreign military units from the United States, Britain, France, Poland and former Soviet nations march in the Red Square parade — that bulwark of selfish nationalism framed in a distinctly Soviet setting — was a definite breakthrough. There were quite a few unhappy Communists, but they had to swallow their complaints.


There was not a single aggressive statement in the president’s speech at the parade — a must in the previous years, always along the lines that some unnamed power (presumably the United States) was nurturing plans to achieve global hegemony. Instead, Mr. Medvedev emphasized that the victory was achieved together with the other Allies — although, of course, the Soviet Union played a decisive role. And it was the small details — like Beethoven’s 9th Symphony played by the international military band, or Mr. Putin shown on television chatting with Chancellor Angela Merkel, presumably in German — that created a dignified framework for this traditional show of military might. It made me feel proud of my country and not ashamed of its Soviet flavor.

Of course, the Great Patriotic War is a complicated matter. In the face of an existential threat, the historical Russia somehow re-emerged in the Soviet Union during the war — and then was eclipsed again. At the same time, there were quite a few people who saw World War II as a continuation of the Russian Civil War, who saw the Nazis as a lesser evil and collaborated with them, not because the collaborators were traitors, but because that was how they saw their patriotic duty.


But there were others, including some far from the U.S.S.R., who saw the war from the outset as a patriotic one. On the day Nazi Germany invaded the Soviet Union in June 1941, my great-grand uncle, Lt. Gen. Pyotr Makhroff, one of the highest-ranking officers of the anti-Bolshevik White Army, long an émigré in France, formally requested to be enrolled in the Red Army. For that, the Vichy Regime had him incarcerated in a prison camp in Algeria.


For many Russians, commemorating our nation’s greatest national sacrifice is a question of measure, detail and interpretation. Although it is impossible in our memories and commemorations of World War II to fully escape Soviet symbolism, Russia dealt pretty well with this latest Victory Day anniversary. It has been an important, coming-of-age experience for our old nation, and our new one.


Andrei Zolotov Jr. is the chief editor of Russia Profile. This article originally appeared in the International Herald Tribune of 14th May 2010.

Sunday, 16 May 2010 12:01

Barents Sea deal lauded by FT

The compromise deal on the delimitation of the Barents Sea struck early May by Russia and Norway will have implications on future disputes in the Arctic. It also shows new tendencies in Russian foreign policies, the Financial Times wrote in an editorial.
The delimitation of the 175,000 square meter waters in the Barents Sea will not only open up oil and gas production in a highly promising area, it will also have implications for the way future Arctic disputes are resolved and illustrates that there is no need for new international legislation in the region.

“Resolving such an old and sore quarrel in line with the UN Convention on the Law of the Sea boosts Arctic coastal states’ claim that no special treaty is needed for the newly accessible seas around the pole”, the newspaper writes.

Furthermore, the compromise also shows a Russia, which is willing to adjust its foreign policies.

“The political reward for Russia is particularly important. Showing that it can pursue its national interest within accepted legal rules makes it harder to dismiss it as a land-grabbing colonial power from the 19th century. Accepting this deal – which Norway has probably been willing to conclude for years – matches Russia’s new tendency to adopt a mellower tone in how it conducts foreign policy elsewhere”, the editorial reads.

 

Sunday, 16 May 2010 11:58

Visa Free travel on agenda at EU Russia summit

Russia and the EU might make a historic agreement on visa-free travel in their upcoming summit in Rostov-on-Don.

EU leaders are expected to take a big step towards visa-free travel with Russia at the upcoming summit due 31 May – 1 June, EUobserver.com reports.

Russia has the last years had the issue high on its agenda with the EU, and Foreign Minister Lavrov has on several occasions stressed that the Russian side would be able to introduce visa-free travel “already tomorrow” if required.

Also on the EU side, the support for a visa-free travel zone with Russia has been growing. Finnish Foreign Minister Alexander Stubb has repeatedly spoken out about the need for facilitated cross-border travelling, and had the issue as one of the main points in his meeting with Russia’s Sergey Lavrov in March this year.

Several other countries, among them Italy and Spain have been keen on a rapid introduction of visa-free travel with the Russians. The Italian Foreign Minister Franco Frattini has even maintained that his country will bring up the issue for a vote in the EU Council.

As reported by EUobserver.com, the visa issue was again on the EU agenda in a meeting between EU foreign ministers in Brussels on Monday (10 May). The meeting included preparatory talks for the summit with Russia to take place in Rostov-on-Don on May 31-June 1. Alexander Stubb told EUobserver after the meeting that he sees the visa issue as the most important point in the upcoming summit.

Also the Germans now support the introduction of visa-free movements, Stubb said.

The current visa-regulations between Russia and the EU are today significantly hampering contacts and cooperation between the sides. The Russian public is expected to be in clear favor of faciliated travelling. Studies from the Russian North show a strong public interest in visa-free travelling with Norway and Finland. A poll conducted by the Norwegian Barents Secretaritat in 2009 indicate that close to 90 percent of respondents in the border areas in Murmansk Oblast will visit the neighboring countries if the visa regulations are abolished.

The introduction of visa-free travel with Russia could open up for similar arrangements with other countries. Poland is reported to insist that also Ukraine is included in the new arrangements.

Sunday, 16 May 2010 11:55

New satellite system to monitor the Arctic

The first of four satellites in Russia’s new space monitoring system “Arktika” will be launched in three years. The system can explore oil and gas fields, monitor ships on the Northern Sea Route and secure more precise weather forecasts in the Northern Hemisphere.