Russia 101103

Basic Political Developments

·  Ahmadinejad slams Russia for US 'sell out' over missiles - "They went and sold us out to our enemies by unilaterally canceling the agreement for which they have been paid," he said at a public rally in the northeastern city of Bojnourd which was broadcast live on state television.

·  Medvedev, Rasmussen to discuss Russian contribution to Afghan war

o  NATO head in Moscow for partnership talks

o  Lavrov, Rasmussen to discuss coop'n in Afghanistan, ABM

o  Anders Fogh Rasmussen: New NATO’s Strategic Concept will reaffirm alliance’s commitment to UN Charter - NATO Secretary General Anders Fogh Rasmussen has given an interview to Interfax ahead of his meeting with Russian President Dmitry Medvedev due on November 3.

·  Turkey removes Russia from threat list – Defense News: The decision was made over a meeting of the Council on October 27, where Turkey’s President Abdullah Gul chaired the discussion of the national security. Besides Russia, the decision will be effective for Greece, Iran, Syria and Iraq. The council, whose members include the president, prime minister, other top ministers and top military officials, sent the paper to the government for ratification. The top-secret document is being revised every fifth year.

·  Japan warns Russia against visits to disputed isles - "We have conveyed our position that the Northern Territories are Japanese territory. We would like them to act accordingly," Kyodo quoted Foreign Minister Seiji Maehara as telling reporters after a meeting with Tokyo's ambassador to Moscow, who returned on Wednesday in protest at President Dmitry Medvedev's visit to the islands, which Russia calls the Southern Kuriles.

o  Japanese ambassador briefs senior officials on Medvedev's visit to disputed island - Kono returned to Tokyo earlier in the day as he was recalled by the government in protest against Medvedev's trip to Kunashiri Island, one of the islands off Hokkaido, known as the Northern Territories in Japan and the Southern Kurils in Russia.

o  Japan business leader voices concern over Japan-Russia row - The ongoing cooperation in development of energy sources between Japan and Russia "has been made possible as it benefits both sides," Masamitsu Sakurai, chairman of the Japan Association of Corporate Executives known as Keizai Doyukai, said at a press conference in Tokyo. "I don't want (the current political situation) to affect it."

·  RF President, Qatari Emir to discuss coop'n, int'l issues - Dmitry Medvedev and Hamad bin Khalifa Al Thani are to discuss key aspects of cooperation in the trade-and-economic and investment fields. "It is planned to examine promising joint projects in the oil and gas sector, the sphere of high technologies, infrastructure, nuclear power engineering, and agriculture -- both in the territory of Russia and in the territory of Qatar," the Kremlin official said.

o  Putin supports Qatar’s gas summit initiative - HH the Emir Sheikh Hamad bin Khalifa al-Thani with Russian Prime Minister Vladimir Putin in Moscow yesterday. Putin welcomed the Emir’s visit, expressing hope that it would contribute to the promotion and development of bilateral co-operation. He supported Qatar’s initiative to host a summit of gas exporting countries next year.

o  Qatar, Russia eye joint gas projects - Qatar is interested in Russian independent gas producer Novatek's liquefied natural gas project (LNG) in Arctic Russia, while export monopoly Gazprom has been invited to tender for oil and gas projects in the Gulf state, the Kremlin said in a statement.

·  Russian weapons shift balance of forces in Middle East – Israel's MI chief: Israeli media quote Maj.-Gen.Amos Yadlin as saying at a closed session of the parliament's Foreign Affairs and Defense Committee that Russia was providing Syria with portable, state-of-the-art anti-aircraft systems.

·  EU energy commissioner picks ironic day for Russia meeting - Mr Oettinger met with Russia's deputy prime minister in charge of energy, Igor Sechin, in the Russian capital on Tuesday (2 November) after traveling to Moscow for a German think-tank event. Following the meeting, Mr Sechin's spokesman told Russia's main news agencies: "Oettinger proposed considerably expanding co-operation as part of the Energy Dialogue and invited Russian specialists to join the development of the European Union's long-term energy strategy."

·  Bulgarian PM Vows Massive Boost of Export to Russia - Bulgaria will press for a greater share for its export goods on the Russian market during the upcoming visit of PM Vladimir Putin, stated Bulgarian PM Boyko Borisov. During the visit scheduled November 13, the two leaders will discuss not only major energy projects like the South Stream natural gas pipeline and Belene NPP, but also the opportunities to expand trade.

·  Bahrain-Russia links hailed - A leading political economy expert yesterday welcomed the establishment of Bahraini financial bases in Russia. International Institute for Strategic Studies (IISS) senior fellow and Russia and Eurasia programme director Oksana Antonenko was speaking during the latest edition of the think-tank's Global Perspective Series.

·  Putin to chair meeting on life quality for the disabled - The government press service reports that participants in the meeting are to examine a package of measures to create conditions for an unimpeded access for the disabled to various facilities and services with a view to raising the quality of their life.

·  UPDATE 1-Former Russian PM Chernomyrdin dies – Kremlin

o  Former Russian PM Chernomyrdin dies aged 73

·  Russia implements joint projects worth 1 bln dollars in Turkmenistan - Russia was implementing over 120 joint projects and contracts worth around 1 billion U.S. dollars in Turkmenistan, Russian Deputy Prime Minister Viktor Zubkov Tuesday said on Tuesday. Zubkov, who was attending a session of the Russian-Turkmen intergovernmental commission (IGC) for economic cooperation in Turkmen capital Ashgabat, said a number of Russian companies are active in Turkmenistan.

o  Turkmenistan, Russia sign agreement on Caspian rail, ferry services - The document was undersigned at a meeting of a joint intergovernmental economic cooperation commission in Ashgabat. The parties noted that the agreement will "strengthen the equitable balance of interests and a mutually beneficial partnership on a strong pragmatic basis."

·  Dog bite strains Estonian-Russian relations - An employee at the Russian embassy in Tallinn has been bitten by a stray dog.

·  Russia allocates money to repatriate sailors stranded in Canada - The Russian government resolved to allocate 2.6 million rubles (about $83,500) from the federal budget to repatriate sailors from a Russian vessel detained in Canada over debts.

o  “Lyubov Orlova” crewmember to be urgently flown to Russia

·  Elbrus cableways commercial director killed in Kabardino-Balkaria

·  4 dead in Sakhalin helicopter crash

·  Russian World assembly to open in Moscow Wed - Over 1,000 Russian and foreign scientists, cultural figures and representatives of public organizations from 70 countries will take part in the Russian World Foundation (RWF) 4th Assembly that opens here on Wednesday.

·  Police should oversee bidding for state contracts - prosecutor: Police and FSB officers should oversee sessions of bidding committees for major state contracts as part of efforts to fight corruption, Russia's deputy prosecutor general said on Wednesday.

·  Russian police could be restricted from joining political parties -"Police serve the interests of the whole of society, regardless of the political, religious or social convictions of the citizens and the police officers themselves," Sergey Bulavin said.

·  Radical anti-drug activist released after sentence change - The sentence of Egor Bychkov, an anti-drug activist from Urals who forced substance abusers into rehabilitation, has been overruled. Court replaced his 42-month term with a 30-month suspended sentence.

·  Russian Press at a Glance, Wednesday, November 3, 2010

o  Russian President Dmitry Medvedev's visit to the disputed Kuril Islands on Monday sparked a diplomatic row with Tokyo, which may disrupt the forthcoming Asia-Pacific Economic Cooperation summit in the Japanese city of Yokohama and a Russian-Japanese business forum.(Vremya Novostei, Vedomosti, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

o  Observers say the results of the U.S. mid-term elections are unlikely to affect the recent reset in Russian - U.S. relations. The outcome of the polls could, however influence relations between Russia and NATO.(Vremya Novostei, The Moscow Times, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

o  Belarusian president Alexander Lukashenko pledged at a meeting with German and Polish foreign ministers to ensure that his country's December 19 presidential elections would be held in compliance with international standards. Poland's top diplomat said Belarus would receive a loan of 3 billion euros ($4.2 billion) "from various sources" in the next three years, if the elections are free and fair.(Vremya Novostei, Nezavisimaya Gazeta)

o  The Russian government should prepare for a drop in global oil prices, the World Bank said in its report on Russia's economy. In addition, growing food prices caused by this summer's draught and wildfires could cause some 700,000 Russians to fall below the poverty line, increasing the overall number to 19.8 million.(Vremya Novostei, Vedomosti, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

o  French automaker Renault and its Japanese partner Nissan are discussing with the Russian government the possibility of raising their stake in the Russian automaker AvtoVAZ to a controlling 50 percent.(The Moscow Times, Vremya Novostei, Vedomosti, Kommersant, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

o  Russians will spend $19.5 billion online this year, mostly to pay for plane and train tickets, cell phone services and music, according to the first major research on the issue by Google Russia and Citibank. Spending by online shoppers is forecasted to grow to 800 billion rubles ($26 billion) in 2012 from the 600 billion rubles expected this year.(The Moscow Times)

o  Russia's RTS stock exchange plans to sell shares in an initial public offering next year. The announcement comes amid discussion on the possible consolidation of the RTS and MICEX, Russia's equities exchange.(Vremya Novostei, Vedomosti, Kommersant)

o  The lower house of the Russian parliament, the State Duma, will discuss introducing a color-coded terrorist threat scale, similar to systems used in many other countries. The scale would have four levels: none, elevated (blue), high (yellow) and critical (red).(Vedomosti, Nezavisimaya Gazeta)

o  A new round of debates on pension reform has begun in Russia. Experts suspect the health and social development ministry is willing to drop the current pension scheme, which combines state pensions with personal savings.(Vremya Novostei, Rossiiskaya Gazeta)

o  Russians will receive a four-day holiday to mark National Unity Day on November 4. The holiday commemorates the liberation of Moscow from Polish-Lithuanian occupation in 1612.(Vremya Novostei, Vedomosti, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

o  Former oil tycoon Mikhail Khodorkovsky delivered his final statement before Moscow's Khamovnichesky court on Tuesday, saying he and his business partner Platon Lebedev have become "symbols of the fight against despotism," and that their acquittal would prove that Russia's courts were independent. The verdict will be delivered on December 15.(Vremya Novostei, Vedomosti, Kommersant, Nezavisimaya Gazeta)

·  Peasant Petitioners Visiting Medvedev - A Dispute Over Land Rights in the Republic of Kabardino-Balkaria Has Added Color to the Moscow Protest Scene

·  Nezavisimaya/Russia Today: The unmotivated terror attacks of the criminal underground - Terrorists are not setting forth either economic or political demands. The upcoming November holidays will be celebrated by the law enforcement agencies of the North Caucasus Federal District by being on a high counterterrorism alert. The alert has come in effect not only in the traditionally turbulent regions – Chechnya, Dagestan and Ingushetia, but also in the recently fairly stable North Ossetia and Kabardino-Balkaria.

·  Jailed oil executive says all of Russia has a stake in latest trial - The verdict is expected Dec. 15. In a concluding statement to the court Tuesday, Khodorkovsky said he foresaw the worst - for himself and his country. This time, he said, the future of all of Russia is at stake.

·  Lebedev's bank searched over Rossiisky Kapital operations – source

o  Moscow police criticised for 'circus' raid on Lebedev's bank

o  Masked police raid on media billionaire Alexander Lebedev's Moscow bank

·  Russia and the future of the CTBT - Fifteen years have passed since Russia and the United States approved the Comprehensive Test Ban Treaty (CTBT), but experts have shown little interest in the anniversary. Banning nuclear explosions is seen by analysts as a set of technical issues, beyond the reach of politics. But the CTBT is a political issue.

·  Prospects of Russian-Georgian relations: hypothetical scenarios – by Simon Kiladze

National Economic Trends

·  Russia’s Services Grow at Fastest Pace Since June, PMI Data Show

·  World Bank Reduces GDP Forecasts - Russia's gross domestic product will grow 4.2 percent this year, 4.5 percent in 2011 and 3.5 percent in 2012, the World Bank said in its latest Russian Economic Report. The World Bank raised its 2010 inflation forecast to 8 to 9 percent from 7 to 8 percent, taking a more pessimistic stance than the government and factoring in a surge in food prices seen after a severe drought killed a third of the harvest.

·  Financial regulator's assets inch up in September

Business, Energy or Environmental regulations or discussions

·  Russian stock market daily morning report (November 03, 2010, Wednesday)

·  AvtoVAZ, CTC Media, Gazprom Neft and Rosneft: Russian Preview

·  Mostotrest Raises $388 Million in Initial Public Offering

·  Aeroflot Grounds Airplanes for Lack of Pilots, Vedomosti Reports

·  Russian Billionaire Lebedev Cuts Aeroflot Holding to 13.7%

·  UC Rusal not interested in selling Norilsk Nickel's shares

·  Usmanov, Metalloinvest Partners Said to Study $4 Billion IPO

·  Metalloinvest, Iron-Ore Supplier to U.S. Steel, Sees Price Gains

·  Petropavlovsk Cuts 2010 Gold Output Estimate on Delays

·  PhosAgro Considers Rival Bid for Potash Corp., Vedomosti Says

·  UPDATE 1-Russia's Phosagro eyes bid for Potash Corp – paper

·  Pangaea Partners Says Renaissance Bought Stake in Zambian Broker

·  Wärtsilä and United Shipbuilding Corporation sign Memorandum of Understanding for co-operation

·  Russia looks to the sun with with for its first solar power station

·  UPDATE 1-Enel's Russia unit 9-month profit up 66 pct

·  Renault-Nissan could increase its stake in AvtoVAZ to controlling level in three years