Russia 101118
Basic Political Developments
· RUSSIA-NATO
o Russia, NATO agree draft documents for Lisbon summit - "We finalized the drafts of the main documents for the Russia-NATO summit late Wednesday," Rogozin wrote in his Twitter blog. "It should be a very productive summit."
o Russia, NATO discusse anti-terror efforts, Afghanistan adhead of Lisbon summit
o Rogozin Says Time Russia, NATO Became `True Partners': Audio
o Russia Says NATO Arms Accord in Reach After Summit (Update1)
o Russia not to send personnel to Afghanistan – envoy
o Czech Project Can Help Lift NATO-Russia Ties - The Russian-Czech joint modernization program to upgrade Russian-made Mi helicopters is a good example that is significant in several ways. First and foremost, the agreement demonstrates to the Russians the Western willingness to let their technologies be used in active NATO campaigns — in this case, Afghanistan. Second, the cooperation concerns a segment of the defense market that is relatively nonsensitive, thereby becoming an ideal test ground for similar projects in the future.
o Pres Komorowski: NATO-Russia relations cannot threaten regional security - On the eve of the NATO summit in Lisbon, President Bronislaw Komorowski has stated that the development of NATO-Russia relations cannot be undertaken at the cost of security interests of countries in eastern Europe.
o Moscow Expands NATO's Routes - Russia to Allow More Supplies to Flow to Afghanistan Amid Efforts on Both Sides to Improve Ties - By STEPHEN FIDLER in Brussels and GREGORY L. WHITE in Moscow
· Peres to Putin deputy: Hope we will progress to direct talks within days - President Shimon Peres told the First Deputy Prime Minister of Russia Viktor Zubkov "I hope that within days we will be able to progress to direct talks with the Palestinians".
o PM Netanyahu meets Russian First Deputy PM Zubkov and economic delegation - Prime Minister Benjamin Netanyahu this evening (Wednesday), 17 November 2010, met with Russian First Deputy Prime Minister Viktor Zubkov. The two men agreed on wide-ranging bilateral cooperation in the spheres of agriculture, economics, space research and natural gas exploration.
Russian, Iranian Presidents To Meet - The presidents were due to meet November 18 on the sidelines of a summit in the Azerbaijani capital, Baku, of leaders from littoral Caspianstates.
· Medvedev to attend Caspian states summit in Baku - "He is beginning his stay in Baku with a meeting with Azerbaijan's President Aliyev. He also plans to meet with Iranian President Mahmoud Ahmadinejad and Kazakh President Nursultan Nazarbayev.
o Caspian Sea countries have sufficient potential to guarantee security: Kremlin aide
o Medvedev, Aliyev to discuss Karabakh, energy coop'n - The Nagorno-Karabakh peace process will be, most likely, the main subject of discussion at a meeting between Presidents Dmitry Medvedev of the Russian Federation (RF) and Ilkham Aliyev of Azerbaijan. The meeting is to be held on the sidelines of the 3rd summit of the Caspian countries here on Thursday.
· First time in Russian history presidential envoy in federal district has led intergovernmental commission - A source in the government of Azerbaijan informs that Russian PM Decree #1977p from 12 November 2010 appointed Alexander Khloponin, deputy prime minister and plenipotentiary representative of the Russian President in the North Caucasus federal district, the chairman of the Commission’s Russian part. He was succeeded by energy minister Sergey Shmatko.
· 16th Indo-Russian Inter-Governmental Commission meeting begins today - External Affairs Minister S.M. Krishna will lead the Indian side in the talks, while Deputy Prime Minister Sergei Ivanov will lead the Russian side.
· Thailand PM cancels Russia trip, Bout link denied - Thailand's prime minister abruptly cancelled an imminent visit to Russia on Thursday, a government spokesman said, just days after the kingdom outraged Moscow by extraditing an alleged arms dealer.
o PM won't go to Tiger Summit in Russia
· Viktor Bout met with Russian diplomats
o Russian Diplomat Accuses U.S. Of Pressuring Bout During Extradition
o Viktor Bout claims pressure from U.S. officials (Update 1)
· Russia, Nigeria reach out for strategic partnership
o Russia plans to launch Nigerian satellites in December
· Transcript of Answers by Russian Foreign Minister Sergey Lavrov to Media Questions at Joint Press Conference Following Talks with Kenya’s Acting Foreign Minister George Saitoti, Nairobi, November 16, 2010
· Cyprus court debates freeze of $6 billion in Russian assets including Uralkali, Polyus, on Dec 14
· Russian journalist granted asylum in Finland - “RUSSIAN journalist Elena Maglevannaya, whose articles focused on human rights abuses in Chechnya, has been granted asylum in Finland.
· CORRUPTION WATCH: UK vows to battle Russian fraud - The director of the UK Serious Fraud Office (SFO), has told the Anglo-Russian business community that as he prepares to exercise new powers allowing him to prosecute corruption worldwide, his organization is particularly interested in the activities of Russian business, reports City A.M.
· U.S. court to hear arguments in criminal case against Russian pilot - A U.S. district court in New York will hold on Thursday pre-trial oral arguments in the criminal case against a Russian pilot who has been detained in Liberia and charged with drug-trafficking.
· Medvedev signs law changing rules of shaping upper house of parliament - "A federal law has been signed, which amends Article 2 of the law introducing changes in individual regulatory acts, connected with a new procedure of shaping the Federal Assembly's Federation Council," the Kremlin press service announced.
· Personnel changes in the Armed Forces - Dmitry Medvedev signed a decree on appointment, dismissal and dismissal from military service, members of the Armed Forces of the Russian Federation. "
· Communists call for banning relatives from working in govt
· Russia $4.5 Bln World Cup Bid Is Most Expensive, Kommersant Says
· 1 billion RUB misused in SMEs subsidies - Federal Service on Financial Control registered violations in subsidizing SMEs for 918 million RUB.
Russian Press at a Glance, Thursday, November 18, 2010
o NATO will adopt a new doctrine at a summit in Lisbon on November 19-20. Russian envoy to NATO Dmitry Rogozin gives a quick perspective on the future of Russia-NATO relations. (Izvestia)
o Russian-U.S. strategic arms reduction treaty will most likely not be ratified by the U.S. this year after an influential Republican senator expressed on Wednesday sharp criticism of the document. The reset of Russian-U.S. relations could be at stake. (Kommersant, Vremya Novostei)
o Russia and Slovenia agreed on Wednesday to increase bilateral trade, to continue partnership in South Stream gas project and speed up dialogue with the European Union on free travel for Russian citizens within the EU. (Izvestia)
o The Russian government has adopted an unprecedented privatization program until 2013. The state will sell its share in a number of Russian companies. Some offers could be very attractive for investors. (Izvestia, Vedomosti)
o Russia hopes to construct up to 140 million sq. meters of housing annually by 2020. (Vedomosti, Rossiiskaya Gazeta)
o Aeroflot will not move its hub from Sheremetyevo to Domodedovo airport due to high financial costs of the transfer - about $2 billion. (Vedomosti)
o Russian energy giant Gazprom could lose up to $4.5 billion in profits during 2010-2012 due to concessions to European clients. (Vedomosti)
o Russian Natural Resources Minister Yury Trutnev unexpectedly supported ecology activists by saying that the Baikal Pulp and Paper Mill should be closed because its operation destroys the environment around Lake Baikal (Vremya Novostei)
o A rare pink diamond has been sold at Sotheby’s in Geneva for a record $46.2 million. (Izvestia)
o Ukraine has stopped financing of a contract with Russia on joint development and production of the An-70 transport plane. (Nezavisimaya Gazeta)
o Russian prosecutors suffered a painful defeat on Wednesday when a jury panel acquitted all defendants in Russia’s mobile phone retail Euroset trial. (Kommersant)
o Russian journalist Oleg Kashin, who remains in hospital after being severely beaten by unidentified assailants, gave a thorough description of one of the attackers in his first evidence account to investigators on Wednesday.(Rossiiskaya Gazeta)
o FIFA said on Wednesday that Russia pledged to spend $4.5 billion on preparing and hosting the World Soccer Cup in 2018. Russia promises to build 13 new stadiums and improve the infrastructure in 12 cities in its bid. (Kommersant)
o Uninspired attack and faulty defense put Russia behind Belgium 0-2 in a football friendly on Wednesday. (Vremya Novostei)
· Moscow jury frees nine retail executives - The acquittal comes amid heightened speculation in the Russian media and online that Rashid Nurgaliev, the interior minister, may be forced to resign as President Dmitry Medvedev responds to claims of police corruption.
· Russia oks draft bill on church property restitution - Russia on Wednesday adopted a draft bill allowing the Russian Orthodox Church to reclaim up to 17,000 buildings and churches nationalised after the 1917 Bolshevik revolution.
· Patriarch Kirill asks Slovenia to promote Slav culture in Europe
· Baturina's Inteco to sell stake in Moscow luxury project - The Russian construction company Inteco, owned by Yelena Baturina, the billionaire wife of Moscow ex-mayor Yury Luzhkov, will sell its 50 percent stake in a wedding registry office in the capital's sky-high City Palace complex by the end of November, company spokesman Gennady Terebkov said.
o Magnitogorsk Owner to Buy Inteco Moscow Project, Vedomosti Says
o Pressure mounting on Inteco - Moscow-based developer Inteco, owned by Yelena Baturina, the billionaire wife of former Moscow mayor Yury Luzhkov, could be put up for sale, Vedomosti reports… Two sources close to Kerimov's investment company, Nafta-Moskva, confirmed the plan, although VTB said it was not conducting any due diligence work on Inteco's assets, and Nafta-Moskva declined to comment.
· Muscovites to pay for new mayor's mistakes - A major scandal is brewing in Moscow, where people are very unhappy with the policy of the new mayor. The ban on parking on Tverskaya Street, the major street in downtown Moscow, was only the beginning of the collapse. Now the residents will start having problems with food since prices for its transportation are to increase by 70% (due to the limitation on entry of trucks into the city).
· The Hate Triangle - The Scandal Around Khimki Could Lead to a Standoff Between the Kremlin and Russian Nationalists
National Economic Trends
· Russia's budget deficit not to exceed 5 pct of GDP this year
· RUSSIAN INFLATION COULD BE JUST OVER PLANNED 7%-8% IN 2010 - DEPUTY FINANCE MINISTER
· RUSSIAN BUDGET DEFICIT NOT TO EXCEED 5% OF GDP IN 2010 - DEPUTY FINANCE MINISTER
· Central bank moves currency corridor boundaries 5 kopecks up
· Bank Rossii Probes Speculative Ruble Trading, Kommersant Reports
· Russia to Keep Debt Strategy After OFZ Premium, Pankin Says
· Moscow approves $32bn sale of state assets
· Privatization Plan Agreed For 3 Years, 10 Firms
· Privatisation plan gets green light despite rumours
· FACTBOX-Russia's $32 billion state asset sale
· EBRD: further modernization efforts needed to wean Russia off oil
Business, Energy or Environmental regulations or discussions
· State to sell controlling stake in Transcontainer
· Government introduces 10% export duty on copper
· Record Russia Earnings Making World’s Cheapest Stocks Cheaper
· Tycoon Prokhorov buys Kingash ore mining plant from Norilsk Nickel
· Serbia To Sell Furniture in Russia Customs-Free, Tanjug Reports
· Rostelecom 4G Bid Rejected by Defense Ministry, Kommersant Says
· Putin Pressed to Reverse Potash Ruling
· Acron Eyes Domestic Merger Amid $2Bln Investment Plan
· From Russia with love and money - Until now, the founders of such elite enterprises have struggled to resist the wishes of venture funds, but the deals pioneered by Mr Milner – and already mimicked by Elevation Partners in a recent financing of Yelp – give them greater power. They can keep employees happy while retaining control.
· Nokia agrees to open research centre in Russia - Finnish vendor signs MoU with president of Skolkovo Fund.
· Economic Zone agreement signed - Yesterday, the agreement on creation of special economic zone was signed between Russian Economic Ministry, municipal and regional administration of Murmansk, and Kola district authorities.
· Bashneft’s bid documents for the Trebs and Titov oil fields meet the tender commission’s criteria, Interfax reported, citing Anatoly Ledovskikh, head of the Federal Subsoil Resource Use Agency. (Bloomberg)
· MICEX is in contact with Euroclear Bank about the possibility of establishing a link that would enable Euroclear clients to trade Russian bonds without a local account, Yekaterina Demushkina, head of the MICEX national depositary, said Wednesday.(Bloomberg)
· PhosAgro chief executive Maxim Volkov said Wednesday that he wasn’t aware of any approach by Canada’s Indigenous Potash Group to get funds to buy a minority stake in Potash Corporation of Saskatchewan, and that he is “ready to cooperate with any interested parties.” (Bloomberg)
· The 2011 budget would balance with an average oil price of $109 per barrel, while the actual budget is based on $75 oil, Deputy Finance Minister Alexei Savatyugin said Wednesday. (Bloomberg)
· Sberbank may hire PIK Group founder Yury Zhukov to run its new property unit, which it is forming to manage real estate acquired from delinquent lenders during the global credit squeeze, Kommersant reported Wednesday, citing unidentified people familiar with the plan. (Bloomberg)
Activity in the Oil and Gas sector (including regulatory)
· China, Russia still divided on pipeline gas price - "With regards to the pricing negotiation, the two sides have made efforts. We are still largely divided on pricing. The difference in the pricing between the two sides is $100 per 1,000 cubic metres," said Gu Jun, deputy director general of the National Energy Administration.
· Armenia trying to persuade Russia to leave its gas price for Armenia unchanged - “Negotiations began by the end of each year for setting gas prices for the next year,” he said answering the question about Russian Gazprom’s intention to raise exported gas prices to European levels. “This year we started negotiating as well. We presented our arguments.”
· Surgut cannot register MOL stake - Russian Surgutneftegas cannot register the stake it bought last year in Hungarian oil and gas group MOL's , an appeals court has ruled.