Russia 101101

Basic Political Developments

· Russians to enjoy 3-day work-week Nov 1-3 – Rostrud: The first work-week of November will be a short one in Russia, as November 4 marks the holiday People's Unity Day and Friday will also be a day-off, deputy chief of Russia's Federal Labor and Employment Service (Rostrud) Ivan Shklovets said.

· Azarov is optimistic about prospects for joint venture between Gazprom and Naftogaz Ukraine - Prime Minister of Ukraine Mykola Azarov is optimistic about the prospects for a joint venture of JSC Gazprom and Naftogaz Ukraine, according to the Department of Information and Communications of the Secretariat of the CMU. Prime Minister of Ukraine Mykola Azarov stated that in the ”Exam for authority” at the First National Channel.

o Gazprom/Naftogaz JV: slow but steady - Talks on establishing a JV between Naftogaz and Gazprom are going slowly but surely said Ukrainian Prime Minister Mykola Azarov on Sunday, reports Interfax.

o Ukraine and Russia to create working group to review gas contracts - ”The President of the Russian Government agreed to establish a working group, and this working group will be created. We talked with him what specifically in the contract does not suit us. I said that it is unequal. That is why we should review it” - Mykola Azarov said.

· Qatari emir to pay official visit to Moscow - Qatari Emir Sheikh Hamad bin Khalifa Al Thani will pay an official visit to Russia on November 2-4 at the Russian President Dmitry Medvedev's invitation, the Kremlin said.

· German foreign minister Westerwelle in Moscow for talks - Moscow - German Foreign Minister Guido Westerwelle arrived Monday in Moscow for a one-day visit and talks with the Kremlin at the start of a three-nation tour of the region.

o Germany seeks to develop scientific, cultural ties with Russia: FM - According to him, at the present moment relations between the two countries develop as those of “strategic partnership”. “Such partnership on the one hand means that we meet regularly to constructively exchange opinions on pressing issues,” he said, adding that this is what he would do in Moscow.

o Germany supports Schengen visa-free regime with Russia in future - “The decision taken jointly with our European partners to outline “the joint steps” on the way to a visa-free regime was an important step forward,” Westerwelle said with confidence. “Now we should do the necessary detailed work,” he added.

· Lavrov to take part in Northern Dimension ministerial meeting - Russia’s Foreign Minister Sergei Lavrov begins his two-day visit to Oslo on Monday to take part in the Northern Dimension ministerial meeting on November 2.

· “Belene”, “South Stream” important to Bulgaria – Boyko Borisov: He said that he is engaged in a “good dialogue” with his Russian opposite number Vladimir Putin. Borisov says he is certain that the projects in question will be effectively carried out.

· Medvedev's trip to disputed island 'Russia's domestic affair' - ambassador to Japan

o Russia can't understand Japan's reaction to Medvedev's visit to Kurils - diplomatic source: Russia's Foreign Ministry did not understand the reaction of Japan to the visit of the Russian president Dmitry Medvedev to the South Kuril Islands. A source told Interfax in Smolensk Square.

o Japan protests to RF ambassador over Medvedev’s trip to Kuriles - Japanese Foreign Minister Seiji Maehara summoned Russian Ambassador in Tokyo Mikhail Beloy and expressed the protest over Russian President Dmitry Medvedev’s trip to the South Kuriles, a source in the Japanese Foreign Ministry told Itar-Tass on Monday.

o Medvedev vows to improve living conditions on Kuril Islands

o RF to create same life conditions on Kuriles as in central RF

o Medvedev pledges to solve red caviar supply problems to mainland

o Small-scale power generation development promising on Kuriles

o Pacific storm: Russia-Japan tension rises over Medvedev’s visit to Kuril Islands - Under international law, the Kuril Islands unequivocally belong to Russia, but due to geographic and economic reasons its residents are far more frequent guests to Japan than to the mainland. While Russia may be in their hearts, Japan is still vying for their minds.

o Japan PM regrets strongly over Medvedev’s visit to South Kuriles -“Four northern islands are the territory of our country, and we stick consistently to this position. The trip of the Russian president there causes a strong regret,” the prime minister said.

o Medvedev visit to Kuril Islands stokes Japan row

o All the Rage in Japan: Territorial Disputes - By Yoree Koh

o Russian leader visits disputed isle, Japan upset

o Medvedev Visits Islands at Center of Japan Dispute (Update3)

o Russian president visits islands over Japanese objections

o Isle visit sparks Russia-Japan spat

o Russian president visits Kuril Islands

o Russian president's visit to disputed isle "hurts Japanese public sentiment": Japanese FM

o Kuril Islands: factfile - Russian President Dmitry Medvedev's visit to the disputed Kuril Islands rubs salt in an old wound which has prevented a peace treaty being signed with Tokyo to formally end World War II hostilities.

o Factbox: Japan and Russia's territorial spat

o Japan protests against Medvedev's island visit - Maehara told Bely that the president's visit "contravenes Japan's position in principle and hurts Japanese public sentiment." He also said the trip is "extremely regrettable," according to the Japanese Foreign Ministry.

o Medvedev's visit to Kunashiri Island suggests tougher line on Northern Territories

· In poultry war, Russia has a leg up on U.S. - Sumner acknowledges that U.S. exporters compensated during the Russian ban by finding other markets for chicken leg quarters. But now that they're back in Russia, they want to stay there - especially because China, which has been the other big U.S. export customer, just instituted its own ban.

· Putin to inspect construction of houses in wildfire-affected village - Russian Prime Minister Vladimir Putin will on Monday visit the village of Verkhnyaya Vereya destroyed, by this summer's wildfires, to inspect the construction of houses.

· Russia's miracle jet close to taking flight again - An Alrosa-operated Tu-154, which enjoyed a spectacular escape from disaster when sharp-eyed pilots spotted a disused airfield and brought it in to land after a total electrical failure, is now set to fly again.

· Interior Ministry Forces officer killed in Kabardino-Balkaria

· Militant killed in Chechnya, ten police injured

· Russia Profile Weekly Experts Panel: Is Moscow Losing the War on Terror in the Caucasus? - Last week three armed terrorists stormed the Chechen Republic’s Parliament in Grozny and blew themselves up, just as members of Parliament were gathering for a regular legislative session. Three people died in the attack, which, ironically, coincided with a visit to Grozny by Russia’s Interior Minister Rashid Nurgaliyev, who described the Chechen capital as a safe city. Is the insurgency growing and spreading? What drives the insurgency? Is it radical Islam or nationalist separatism?
There are over 150 radical neo-Nazi groups in Russia - According to Interior Ministry, in the first half of 2010 the number of such crimes reached 370, up by 39 percent comparing to 2009. Sova (think tank) reports that in 2007 there were 356 such crimes, 2008 - 460, 2009 - 548.

· Medical council meets to decide on surgery for Gen. Shamanov

o Shamanov Injured in Car Crash - Paratroopers commander Vladimir Shamanov was rushed to the hospital with serious injuries sustained in a car crash that killed one and injured two other military officials near Tula on Saturday morning.

· Sobyanin intends to accelerate Moscow metro construction

· Moscow City Hall employees to start work one hour earlier - Moscow City Hall employees will have to arrive at work one hour earlier on Monday- at 8 a.m. The change is one of new mayor Sergei Sobyanin's drive to fight the Russian capital's notorious traffic jams.

· Duma to consider Yegiazaryan immunity status Nov 3 – Gryzlov

· Moscow, St. Petersburg Rallies End, Arrests Made

o Russian Activists See Change in a Humble Protest - For a year and a half, these activists have engaged in a standoff with Russian authorities as they have asserted their right to free assembly — demonstrating, essentially, for the right to demonstrate. Nine times the riot police have dispersed them and herded them onto buses.

· Thousand people joined meeting in Moscow to support traditional family values - Active participants and supporters of Orthodox non-profit organizations held a rally at Bolotnaya Square in Moscow to support the traditional moral values.

· Russian Press at a Glance, Monday, November 1, 2010

o Moscow mayor Sergei Sobyanin proposed demolishing roadside trade kiosks, building additional parking lots and making officials arrive at work one hour earlier.(Vedomosti, Rossiiskaya Gazeta)

o Russian state-run nuclear corporation Rosatom signed an agreement to build the first nuclear power plant in Vietnam as President Dmitry Medvedev wrapped up a two-day visit to the country.(Moscow Times, Vremya Novostei, Kommersant, Rossiiskaya Gazeta)

o Russian counternarcotics agents participated in a NATO-led drug raid that netted $56 million worth of heroin and morphine, but Afghanistan's president complained that he had not been informed in advance of the Russian involvement, and his administration demanded a formal apology.(Kommersant, Moscow Times, Nezavisimaya Gazeta)

o Russian Prime Minister Vladimir Putin's former fellow student and businessman Roman Abramovich's girlfriend own large stakes in state-run Channel One.(Vedomosti)

o The presidential administration's control department inspected the system of state purchases and discovered that 20% of the allocated funds had been stolen.(Vedomosti, Rossiiskaya Gazeta)

o No major disruptions marked the first authorized opposition rally at central Moscow's Triumfalnaya Ploshchad on Sunday evening. The rally was attended by at least 800 protesters. Opposition activists who disagreed with the conditions set by the authorities held a separate rally.(Vremya Novostei, Moscow Times)

o New Moscow mayor Sergei Sobyanin showed his style of governing the city. He fired two of Moscow's district authorities on Saturday.(Vremya Novostei, Rossiiskaya Gazeta)

o Russian antidrug activist Yegor Bychkov, sentenced to 3.5 years for kidnapping a drug addict, gave an interview to a Russian government daily.(Rossiiskaya Gazeta)

o The long-awaited signing of Russian-Polish gas agreements on Friday could turn into a new row.(Vremya Novostei, Kommersant, Rossiiskaya Gazeta)

o Airborne Troops commander Vladimir Shamanov was rushed to a hospital with serious injuries sustained in a car crash that killed one and injured two other military officials near Tula on Saturday morning.(Moscow Times, Vremya Novostei, Rossiiskaya Gazeta)

· Design for Russian Orthodox center in Paris to be chosen from intl bids

· Russia embraces the Eastern economic powers - Russian President Dmitry Medvedev met in Hanoi this weekend with leaders of the Association of Southeast Asian Nations (ASEAN) member states: Brunei, Vietnam, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand and the Philippines.

· Russia-ASEAN summit focuses on partnership and nuclear security

· Russia, Vietnam to cooperate in nuke, power, investment spheres - Russia signed a turnkey agreement to build a Vietnamese nuclear power plant, which is to include two power units with a capacity of 1,200 megawatts (MW) each. Russian nuclear power engineering company Atomstroyexport, a representative office of which was opened in Vietnam on October 30, is expected to build the plant, Sergei Kiriyenko, head of Russian nuclear power corporation Rosatom, said. The agreement also envisages the creation of a scientific and technical center in the country to develop and implement nuclear technologies.

· “Who will need Russia and its oil in 15 years?” - “Raw materials will undoubtedly remain one of Russia’s main sources of income for a long time yet. I think we should openly admit that the current economic modernization in Russia would have been impossible without raw materials, because this sector pays. It earns the funds which state and private business invests in modernization projects and innovative economic development,”… said Igor Agamirzyan, CEO of Russian Venture Company and a member of the Russian president’s Commission for Modernization and Technological Development

· Russia hits back over World Cup corruption claims - Alexei Sorokin, CEO of the Russian bid, pointed out to the newspaper that all bidding nations are likely to have made proposals to members of FIFA’s executive committee and it is unfair to single out Russia for criticism.

National Economic Trends

· Corruption costs Russia 3% of GDP yearly - Corruption costs Russia the equivalent of 2.9% of its GDP every year, a presidential aide has said, the Kommersant daily reported on Monday.

Business, Energy or Environmental regulations or discussions

· VTB, RusHydro, Polymetal, Lukoil: Russia Equity Market Preview

· Watchdog Aims to Eliminate Restrictions on Foreign IPOs

· Rosnano has 93 projects worth 300 bln roubles – Ivanov

· Rostelecom in talks to buy 51.8 pct in National Telecommunications

· Chicago Mercantile Plans Moscow Wheat-Futures Market, Times Says

· Russia's OGK-2 says Q3 profit more than double Q2

· Mosenergo posts 2.2 bln rubles Q1-Q3 net profits, down 57% yoy (Part 2)

· Berkeley Resources Gains After Approach From Severstal (Update1)

· Severstal Bids for Uranium Miner - Severstal has approached Berkeley about a possible takeover of the uranium exploration company worth about 304 million Australian dollars ($295 million), sending Berkeley shares sharply higher in London.

· NLMK May Buy Control of 7 Mills From Duferco

· Sberbank eyeing $2bn syndicated loan

· UPDATE 1-Russia's VTB, Vietnam bank to set up $500 mln fund

· VTB launches investment fund in Vietnam

· Evraz to Resume Czech Unit’s Crude Steel Production

· ArcelorMittal, Evraz Agree Supply Deal In Czech Republic

· First freight line heading eastwards from Monogolia unveiled - Russian Railways has opened a new line to carry rail freight eastwards from Mongolia to Russia's Far Eastern ports, and then onwards to customers in the Asia-Pacific region, reports Oreanda.
Novorossiysk Commercial Sea Port BoD announces EGM to vote on acquisition of Primorsk Oil Terminal, setting the record date for November 8

· Russia Plans to Upgrade its Ports Infrastructure - The ‘Russian factor’ means strengths and weaknesses for the region’s ports, says Stevie Knight. Many ports in the Baltic region are picking up: notably those in Estonia and Latvia, and that hardy lot in Poland. But analyse the region’s main strengths and weaknesses, and you might find that both are called Russia.

· Rule Lifted for Private Pilots - A small but devoted army of amateur pilots will be able to take to the sky with an hour's notice starting Monday instead of waiting 24 hours to get permission from federal authorities.