Business Watch
John Bonar
bmi head of sales says Russia is a key market
By Sayan Guha
British Midland International (BMI) airline, the second largest airline operator in London Heathrow – where it holds 10 per cent of all the take-off and landing slots, operates its services in the UK, Europe, Central Asia, Middle East and Africa, has confirmed the importance of its Moscow operations and the Russian market to its business .
BMI has traditionally focused on short-haul services, catering to the domestic market, right since its inception in 1949, though it started mid-haul operations in the 70s. Since it was absorbed in 2009 by German carrier Lufthansa, becoming part of the Lufthansa family; BMI clearly got an advantage over competitors operating mid and long-haul services. The other leading European members of the Lufthansa family are Austrian Airlines – Austria’s national carrier, Brussels Airlines – Lufthansa owns 45 per cent of the Belgian carrier, and Swiss Airlines – the wholly owned subsidiary of Lufthansa.
Russia’s finance minister deliberately engineered exit from government
By John Bonar
Alexei Kudrin, Russia’s powerful finance minister and deputy Prime Minister for the last 11 years deliberately engineered his dramatic exit from the government yesterday by picking a public fight with President Dmitry Medvedev. Political observers and opposition politicians see a Kudrin power play in process.
Medvedev proposed Putin run for President in the March 2012 elections in a choreographed spectacle at the Luzhniki stadium in Moscow last Saturday. Putin accepted the role, almost guaranteeing he will be the next President of Russia and hinted at Medvedev becoming Prime Minister at the head of a new young government. A day later Kudrin said he had not been offered a job in a Medvedev cabinet and if he was offered he would refuse.
Ukraine, Russia impasse in Zavidova
By John Bonar
Saturday's talks between Ukrainian President Viktor Yanukovych and Russia’s two leaders President Dmitry Medvedev and Prime Minister Vladimir Putin have failed to yield a much hoped-for agreement on the price Ukraine pays for gas and the Russian proposal that Ukraine joins the Customs Union with Russia, Belarus and Kazakhstan. The lack of substantive agreement is disappointing not only for Ukrainian tax payers and gas consumers but also for European customers of Gazprom who fear another escalating dispute leading to the third cut off of gas supplies in six years.
Russia, Ukraine impasse in Zavidovo
By John Bonar
Saturday's talks between Ukrainian President Viktor Yanukovych and Russia’s two leaders President Dmitry Medvedev and Prime Minister Vladimir Putin have failed to yield a much hoped-for agreement on the price Ukraine pays for gas and the Russian proposal that Ukraine joins the Customs Union with Russia, Belarus and Kazakhstan. The lack of substantive agreement is disappointing not only for Ukrainian tax payers and gas consumers but also for European customers of Gazprom who fear another escalating dispute leading to the third cut off of gas supplies in six years.
The myths that Yanukovych will have to give up
By Konstantin Simonov exclusively for RIA Novosti
On Saturday, September 24 President Dmitry Medvedev and Prime Minister Vladimir Putin will meet with President of Ukraine Viktor Yanukovych in Moscow to discuss a number of pressing issues, above all, Russian gas supplies and Ukraine’s membership in the Customs Union that unites Russia, Kazakhstan and Belarus.
Russian-Ukrainian gas relations have reached a boiling point. Throughout the entire summer, Ukraine has been openly blackmailing Moscow in all directions. Kiev threatened to sever the gas transit contract of January 19, 2009 in the hope that a potential disruption of the transit of gas to the European Union (EU) would compel Russia to provide Ukraine with the discount that they have long been waiting for.
Putin focusses on economic policy in pre-electoral speech
Addressing the annual congress of the ruling United Russia party on Saturday, Putin and incumbent President Dmitry Medvedev agreed to switch roles. Prime Minister Vladimir Putin has made a wide-ranging pre-electoral speech to loyalists after accepting a proposal to stand for president next year.
With his return to the Kremlin now all but guaranteed, Putin outlined his economic policies ahead of the presidential elections next March.
Ukraine looking at international gas contracts with majors
Ukraine may sign gas production contracts worth a total of $1 billion with international energy companies including ExxonMobil, Eni and Total this month, Kommersant Ukraina business daily said on Friday.
ExxonMobil wants to produce shale gas, while Eni and Total are interested in deposits which are hard to explore, a Ukrainian Energy and Coal Production Ministry source told the paper. This month the Ukrainian authorities signed an $800 million contract with Royal Dutch Shell for geological exploration and production of shale gas in the east of the country.
Medvedev proposes Putin to run for president
Russian President Dmitry Medvedev has proposed Prime Minister Vladimir Putin to run for Russian president in next year's election, bringing an end to speculation over which man would run for the post.
Speaking at the annual congress of the ruling United Russia party on Saturday, Medvedev said he was ready to make way for Putin and do "practical work in the government." That means Putin could still be running Russia in 2024.
Putin proposes Medvedev to head United Russia's election list
Eurozone Crisis Clouds Recovery In Emerging Europe And Central Asia
Economic recovery is underway in the Emerging Europe and Central Asia (ECA) region, but at a slow pace and is at risk from the troubled Eurozone, according to the World Bank at a press briefing during the World Bank/IMF Annual Meetings 2011.
“Most countries in Emerging Europe and Central Asia have recovered from the global economic crisis, but growth has returned at lower rates than pre-crisis trends in most of the region. The region is expected to record a real growth rate of 4.3 percent in 2011, which is one of the lowest of any developing region,” said Philippe Le Houérou, World Bank Vice President for the Europe and Central Asia Region. “The slow recovery in the region may be establishing a ‘new normal’ of lower economic growth rates in many of the region’s countries.”