Russia 110624

Basic Political Developments ITAR-TASS news digest of June 24: 1.

o MOSCOW - - Russian President Dmitry Medvedev said Thursday he might take up the role of a leader in a political party, the name of which he declined to specify.

o MINSK - - The Belarussian health ministry lifted restrictions on the transit of fresh vegetables from EU countries to Russia halted earlier this month because of a deadly E.coli outbreak in Europe, the official BELTA news agency reported on Thursday.

o BAKU - - Azerbaijani President Ilkham Aliyev said he was “rather optimistic” about the results of the three-party summit talks on Nagorno-Karabakh settlement in Russia’s Kazan on Friday adding the mediation of President Dmitry Medvedev can help reach an agreement.

o MOSCOW - - Russia wants to finalize the guidelines for Nagorno-Karabakh settlement at the three-party summit on Friday, which will be the ninth meeting of Russian President Dmitry Medvedev with his Azerbaijani and Armenian counterparts, Ilkham Aliyev and Serzh Sargsyan, since 2009.

o KIEV - - Former Ukrainian Prime Minister and now opposition leader Yulia Timoshenko will go on trial Friday which shesaid was masterminded by President Viktor Yanukovich in an attempt “to eliminate a political rival.”

o ROME - - Russian Deputy Prime Minister and Finance Minister Alexei Kudrin will discuss economic cooperation with Italian Foreign Minister Franco Frattini on Friday in the framework of the 12th session of the bilateral council on economic, industrial, and financial cooperation.

o MOSCOW - - President Dmitry Medvedev believes Russian labor laws should get a mechanism of preventive fight against corruption although he realizes it may be used by employers to settle accounts with subordinates.

o MOSCOW - - President Dmitry Medvedev admitted on Thursday he had discussed with billionaire Mikhail Prokhorov his intention to head the Right Cause Party, but denied claims it was a Kremlin initiative.

o KAZAN - - Horse races for the prize of the president of the Russian Federation will take place in the international racing complex "Kazan" this Friday.

o MOSCOW - - The problems of a missile defence system in Europe and the struggle against international terrorism will be high on the agenda of a visiting session of the Russia-NATO Council in Sochi in July, Russian Permanent Representative in NATO Dmitry Rogozin said.

o TOKYO - - Japan’s Mazda Motor Corp. plans to launch production of its cars in Russia’s Far East from 2012, local media reported on Friday citing an agreement to the effect with the Russian ministry of economic development.

o KRASNOYARSK - - The forest fires have spread on another 873 hectares in Siberia. Though the rescuers succeeded to put out 66 fires on 7,704 hectares, 110 fires keep raging on 6,738 hectares of the taiga. Some 44 fires were localized on 2,609 hectares.

o KIEV - - Preliminary hearings on the criminal case of ex-Prime Minister Yulia Timoshenko began in the Pechersky District Court of Kiev on Friday. Timoshenko is being accused of the abuse of office during the signing of gas contracts with Russia in 2009. The Fifth TV Channel is doing live broadcasting from the court room.

o MOSCOW - - Russian Defence Minister Anatoly Serdyukov offered President Dmitry Medvedev to fire several high-ranking military officials, including a general, for the blasts at an ammunition depot in Udmurtia. Other military officials blamed for the ammunition blasts, including Deputy Defence Minister Dmitry Bulgakov, were offered to be reprimanded.

o ZHUKOVSKY, Moscow region - - Russia’s Emergencies Ministry has finished a humanitarian mission in Cote d’ Ivoire. The ministry’s Ilyushin-76 plane returned from that country and landed at the Ramenskoye airport outside Moscow on Friday.

o MOSCOW - - The Russian president’s commission on modernization and technological development will consider measures to encourage the development of environment-friendly technologies at its next session on Monday, June 27, presidential aide Arkady Dvorkovich said on Friday.

Gaddafi in talks with Libya's rebels: Envoy - Muammar Gaddafi's regime is in direct talks with Libya's rebels, a Russian envoy was told on Thursday as the strongman's son said the way out of a months-long conflict is the staging of elections. Russia, China block report on Iran’s UN breaches

Russia-NATO Council meeting to focus on ABM in Europe. - The problems of a missile defence system in Europe and the struggle against international terrorism will be high on the agenda of a visiting session of the Russia-NATO Council in Sochi in July, Russian Permanent Representative in NATO Dmitry Rogozin said.

Diplomats trying to agree on ministerial meeting of Middle East quartet - Special envoys of the Foreign Ministries of member-nations of the Middle East quartet at their June 24 meeting in Brussels will discuss the time of a ministerial meeting of the quartet that comprises Russia, the United States, the EU and the United Nations.

Foreign Minister Receives Letter from his Russian Counterpart - Foreign Affairs Minister Shaikh Khalid bin Ahmed bin Mohammed Al Khalifa received here today Russian Foreign Ministry's Middle East and North Africa Director General Sergei Vershinin who delivered to him a letter from his Russian counterpart Sergei Lavrov on bilateral relations.

Kim Jong-il 'to Meet Medvedev' - North Korean leader Kim Jong-il and Russian President Dmitry Medvedev may meet next week in Vladivostok, PrimaMedia, a news agency for Russia's Far East, said Thursday.

Asean-Russia Senior Officials Meeting Held In Myanmar Capital- Co-chaired by visiting Deputy Foreign Minister of the Russian Federation Alexei N. Borodavkin and Director-General of Asean Affairs Department of the Myanmar Foreign Ministry U Tint Swai, the meeting on Thursday discussed development of Asean-Russia cooperation and exchanged views on regional and international issue, said the New Light of Myanmar.

KARABAKH CONFLICT - 9TH TRIPARTITE PRESIDENTIAL MEETING KAZAN

o Big powers press for progress on Karabakh conflicto Russian city of Kazan will host 9th tripartite presidential meeting todayo Armenia, Azerbaijan should adopt principles of Karabakh conflict

settlement – Sarkozyo French President’s message to President Serzh Sargsyan o Russia hosts trilateral summit on Nagorny Karabakh o Russia wants to finalize Nagorno-Karabakh settlement guidelines. o Obama Calls Armenian, Azerbaijani Leaders Ahead Of Summit o Armenian opposition party warn Sargsyan against Karabakh concessions o Armenian President’s interview to Euronews: “Azerbaijan is prepared to

train weapons on us” o Azerbaijani president in Tatarstano Nagorno-Karabakh is a historic land of Azerbaijan - Ilham Aliyevo Stakes High as Medvedev Seeks to Tackle Karabakh Quandary - By

Nikolaus von Twickel Russia’s Kudrin to discuss cooperation with Italy. - Russian Deputy Prime

Minister and Finance Minister Alexei Kudrin will discuss economic cooperation with Italian Foreign Minister Franco Frattini on Friday in the framework of the 12th session of the bilateral council on economic, industrial, and financial cooperation.

Deputy Minister of Foreign Affairs/State Secretary Grigory Karasin Makes a Working Visit to Belarus

Deputy Foreign Minister Gennady Gatilov Meets with Pakistani Ambassador to Moscow Mohammad Khalid Khattak

Kharotabad killings: Envoy says slain foreigners were from Dagestan Russia to strengthen ties with country - AMBASSADOR Nikolay Kudashev of

the Russian Federation committed to strengthen the trade ties of Russia and the Philippines, saying the country is the ideal destination for Russian investments.

Russian delegation tours wastewater treatment plant, landfill - The six members of the delegation are the guests of the Portsmouth-Severodvinsk Connection, which for 15 years has been sending people from both cities on cultural exchanges.

Russian sailors deaths in Indonesia supposedly caused by methyl alc. Russian Air Force, Navy to be reformed in 2011 - General Staff Meeting with permanent members of the Security Council - The meeting

discussed various domestic and foreign policy issues, including military education reform.

Alleged Chechen terrorist detained in Berlin

Five law enforcers killed, 13 injured in Dagestan. Police major killed in armed clash in Kabardino-Balkaria. Transport ministry recommends grounding Tu-134 fleet after crash Fighter jet crash kills two in southeastern Russia - A Russian MiG-29 fighter jet

crashed in the Astrakhan region of southeastern Russia on Thursday, killing two pilots on board, according to the Russian Defense Ministry.

o MiG-29 flights suspended after fighter jet crash An-2 with passengers makes emergency landing in forest, none hurt. Two more cases of pilots blinded by lasers reported in Russia's south President Medvedev defends registration denial to Russian party

o Medvedev admits talk with Prokhorov on Right Cause. o Medvedev eyes preventive anti-corruption fight. o Medvedev to fire sport minister if Russia fails at London Olympics.

OSCE still uncertain about format of Russian election observer mission Senator Ralif Safin recall not included in Altai Rep parl agenda. Lebedev will serve sentence in Velsk colony – source

o Lawyers file parole request for Lebedev's release Suspected killer of Magadan editor detained. Presidential prize horse races to take place in Kazan. Forest fires spread on 873 hectares in Siberia. One given 2 yrs on probation, other acquitted over Khimki adm attck. RIA Russian Press at a Glance, Friday, June 24, 2011 ITAR-TASS Russian press review. A distorted portrait of Russia - Mr. Kagan’s casual disregard for our economic

growth, foreign investment and democratic reforms raises a larger question about his objectivity on Russia. By Dmitry Peskov, Moscow

Red tape blamed for drop in European visitors to Russia Taking Liberties - A Liberal Party with Little Political Clout Was Banned for

Political Reasons Medvedev is ready to start the budget address - The president has announced that

his speech before Parliament would sound “great” – if delivered in the rap musical style By Syuzanna Farizova

Tbilisi Creating Black List for Soviet Political Elite, KGB Collaborators - By Giorgi Lomsadze

National Economic Trends Russia may introduce export duties on grain - Deputy Prime Minister Viktor

Zubkov has said the government is considering introducing grain export duties in the event that wheat prices rise above a particular benchmark, in this case RUB6,500/t.

The Russian Paradox - Runaway Inflation Widens the Gap Between Russia’s Rich and Poor

Business, Energy or Environmental regulations or discussions Inter RAO, Magnitogorsk, Novatek May Move: Russia Stock Preview UPDATE 1-MMK Q1 net profit beats expectations

Rusal to borrow $4.75bn o Rusal restructures debt

CORRECTED-Russia's Global Ports to offer $534 mln for London IPO Russian social network VKontakte considers U.S IPO-report Blackstone Considers Opening Office in Moscow, Kommersant Says Alfa May Buy 45% of Ukraine’s Astelit, Kommersant Reports Binbank’s Shishkhanov to Buy 49% in Hotel Moskva, Vedomosti Says Japan’s Mazda Motor Corp to launch production in Russian Far East. Russia: the Big Mac of fast food - Wendy’s/Arby’s franchiser said on Thursday

that it would now open 192 restaurants in Russia over the next 10 years, or 12 more than originally planned.

Activity in the Oil and Gas sector (including regulatory) Gov't keeps gasoline export duty high

o Russia extends gasoline export duty increase Russian Oil - MinEnergo proposing to tweak product excise taxes further Russian Oil - 60/66 could happen in Q3 Russia's Surgut to raise capex by 15 pct in 2011-Ifax Norway and Russia cross the line - Norway and Russia have signed an intentional

pact for dialogue on joint management of oil and gas resources in their recently delineated area of the Barents Sea.

First Licenses In Barents Sea May Be Issued 2013-2014 Novatek Builds Giant Arctic LNG Tanker Novatek Undecided on El Arish Exploration Russia's Novatek to get 4 gas licencies on Yamal-Ifax Rosneft to present plan for Yurubcheno-Tokhomskoye in Q4 Bulgarian Deputy Minister Pulls Out of Lukoil Board Shale Could Help Ukraine Meet Energy Needs By 2020 - TNK-BP A Russia-China gas deal? Don't hold your breath Rosneft Vice President O'Brien steps down Final nail in the BP-Rosneft coffin? - They're talking tough in Russia.

Gazprom Shtokman: Board of directors reaffirmed progress in preparation for final

investment decision Gazprom and Verbundnetz Gas commission ejector unit at Bernburg UGS facility Russian Gas - Wood Mackenzie: Gas oversupply dissipating as soon as 2012 -

With gas supply tightening, export growth will soon reappear for Gazprom Gazprombank latest Russian bank to seek loan over $1bn

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Full Text Articles

Basic Political Developments

11:54 24/06/2011ALL NEWS

ITAR-TASS news digest of June 24: 1.

http://www.itar-tass.com/en/c154/172464.html

24/6 Tass 125

MOSCOW - - Russian President Dmitry Medvedev said Thursday he might take up the role of a leader in a political party, the name of which he declined to specify.

“I think a president is capable of taking the reins of any party purely thanks to the experience he acquires,” he said Thursday in an interview with The Moscow News weekly.

MINSK - - The Belarussian health ministry lifted restrictions on the transit of fresh vegetables from EU countries to Russia halted earlier this month because of a deadly E.coli outbreak in Europe, the official BELTA news agency reported on Thursday.

The ministry said E.coli situation in the country remained normal and no cases of the disease were registered.

BAKU - - Azerbaijani President Ilkham Aliyev said he was “rather optimistic” about the results of the three-party summit talks on Nagorno-Karabakh settlement in Russia’s Kazan on Friday adding the mediation of President Dmitry Medvedev can help reach an agreement.

“Personal participation of Russian President Dmitry Medvedev allows the parties to reach an agreement,” he told Euronews TV channel on Thursday.

“If the Armenian side displays a constructive approach and political will to make an important step forward the conflict can be resolved pretty soon,” Aliyev said.

MOSCOW - - Russia wants to finalize the guidelines for Nagorno-Karabakh settlement at the three-party summit on Friday, which will be the ninth meeting of Russian President Dmitry Medvedev with his Azerbaijani and Armenian counterparts, Ilkham Aliyev and Serzh Sargsyan, since 2009.

KIEV - - Former Ukrainian Prime Minister and now opposition leader Yulia Timoshenko will go on trial Friday which shesaid was masterminded by President Viktor Yanukovich in an attempt “to eliminate a political rival.”

Timoshenko is accused of office abuse while signing gas agreements with Russia in 2009 which current authorities say were detrimental for Ukraine as the price was excessively high.

ROME - - Russian Deputy Prime Minister and Finance Minister Alexei Kudrin will discuss economic cooperation with Italian Foreign Minister Franco Frattini on Friday in the framework of the 12th session of the bilateral council on economic, industrial, and financial cooperation.

MOSCOW - - President Dmitry Medvedev believes Russian labor laws should get a mechanism of preventive fight against corruption although he realizes it may be used by employers to settle accounts with subordinates.

MOSCOW - - President Dmitry Medvedev admitted on Thursday he had discussed with billionaire Mikhail Prokhorov his intention to head the Right Cause Party, but denied claims it was a Kremlin initiative.

KAZAN - - Horse races for the prize of the president of the Russian Federation will take place in the international racing complex "Kazan" this Friday.

Sixteen highest-rated thoroughbred horses four years old and older are admitted by the commission to the competitions.

MOSCOW - - The problems of a missile defence system in Europe and the struggle against international terrorism will be high on the agenda of a visiting session of the Russia-NATO Council in Sochi in July, Russian Permanent Representative in NATO Dmitry Rogozin said.

TOKYO - - Japan’s Mazda Motor Corp. plans to launch production of its cars in Russia’s Far East from 2012, local media reported on Friday citing an agreement to the effect with the Russian ministry of economic development.

KRASNOYARSK - - The forest fires have spread on another 873 hectares in Siberia. Though the rescuers succeeded to put out 66 fires on 7,704 hectares, 110 fires keep raging on 6,738 hectares of the taiga. Some 44 fires were localized on 2,609 hectares.

KIEV - - Preliminary hearings on the criminal case of ex-Prime Minister Yulia Timoshenko began in the Pechersky District Court of Kiev on Friday. Timoshenko is being accused of the abuse of office during the signing of gas contracts with Russia in 2009. The Fifth TV Channel is doing live broadcasting from the court room.

Thousands of Timoshenko’s supporters gathered outside the court building, in the Kreshchatik Street. The main street of the Ukrainian capital was actually turned into the venue of a political meeting held by Alexander Turchinov, the closest associate of Timoshenko.

The demonstrators are chanting Timoshenko’s name “Yulia” and are singing Ukrainian folk songs. Their attempts to block automobile traffic by the Kreshchatik Street were stopped by the special task force.

MOSCOW - - Russian Defence Minister Anatoly Serdyukov offered President Dmitry Medvedev to fire several high-ranking military officials, including a general, for the blasts at an ammunition depot in Udmurtia. Other military officials blamed for the ammunition blasts, including Deputy Defence Minister Dmitry Bulgakov, were offered to be reprimanded.

The minister proposed to the Russian Supreme Commander-in-Chief to bring several high-ranking military officials to disciplinary responsibility over the blast case at the 102nd ammunition depot in the Central Military District.

ZHUKOVSKY, Moscow region - - Russia’s Emergencies Ministry has finished a humanitarian mission in Cote d’ Ivoire. The ministry’s Ilyushin-76 plane returned from that country and landed at the Ramenskoye airport outside Moscow on Friday.

The plane delivered 36 tons of humanitarian aid to Abidjan. The humanitarian consignment included 22 tons of rice, seven tons of tanned meat, 1,500 blankets and 43 tents. The goods were provided by the Russian federal state reserves agency.

MOSCOW - - The Russian president’s commission on modernization and technological development will consider measures to encourage the development of environment-friendly technologies at its next session on Monday, June 27, presidential aide Arkady Dvorkovich said on Friday.

“On Monday, the commission will consider technological aspects of environment-improving measures,” he said. “It will look at promising technologies that might be used to bring down pollutant emissions and to boost energy efficiency.”

Among such technologies he listed solar batteries, membrane water treatment and associated gas processing technologies.

Gaddafi in talks with Libya's rebels: Envoyhttp://zeenews.india.com/news/world/gaddafi-in-talks-with-libya-s-rebels-envoy_714913.html

Friday, June 24, 2011, 13:23

Tripoli: Muammar Gaddafi's regime is in direct talks with Libya's rebels, a Russian envoy was told on Thursday as the strongman's son said the way out of a months-long conflict is the staging of elections.

Russia's Mikhail Margelov, in Tripoli for one day after visiting the rebels in their Benghazi stronghold last week, made the remarks following a meeting Libyan Prime Minister Baghdadi al-Mahmudi.

"I was assured at today's negotiations that direct contacts between Benghazi and Tripoli are already underway," Margelov said, quoted by Russia's ITAR-TASS news agency.

"The Libyan Prime Minister told me that a round of such contacts concluded yesterday in Paris," he said, adding French President Nicolas "Sarkozy has been informed of the outcome of these contacts”.

He did not disclose the nature of the talks, which could not be confirmed by the rebels' National Transitional Council.

Mahmudi said Gaddafi's departure from power was a "red line" that cannot be crossed, despite growing international calls for him to quit and the armed insurrection against his 41-year rule.

"Of utmost concern to us in any dialogue is the unity of Libya," Mahmudi told a news conference in Tripoli.

His remarks came after Gaddafi's son Seif al-Islam said the only way to break the deadlock was to hold elections in coming months.

"Elections, immediately and with international supervision. It's the only painless way to break out of the impasse in Libya," the son told Italian newspaper Corriere della Sera.

Asked about Seif's statement, Mahmudi said: "Gaddafi is the leader of this country and its symbol. He has nothing to do with any election or referendum."

Margelov, the Africa envoy of Russian President Dmitry Medvedev, was not scheduled to meet Gaddafi himself.

But he reiterated Moscow's call for Gaddafi to go and stressed "nobody wants him dead... he can remain living in Libya in private and security can be ensured by the tribes from which he came."

NATO warplanes early Thursday destroyed an apparently empty hotel, the Wenzrik, in central Tripoli near administrative buildings and Libya's state broadcaster, a report said.

The authorities took reporters to the site of the dawn raid, which left only sections of wall standing. They said the attack caused no casualties.

Libyan Deputy Foreign Minister Khaled Kaaim later denounced what he called a "barbaric and premeditated raid by NATO on civilians”.

Kaaim refrained from commenting about Margelov's visit, but when pressed about

possible negotiations about Gaddafi's departure, he said that "nobody can make such decisions”.

"It is for the Libyan people to decide whether the leader should leave or not," he said.

At least five anti-Gaddafi rebels were killed and 30 wounded when they came under sniper fire in three villages they seized on Wednesday in western Libya, hospital sources said on Thursday.

The attacks took place in the villages of Zawit Bagoul, Lawania and Ghanymma, the sources said in the western town of Zintan.

The rebels overran the villages as they sought control of a key junction connecting the towns of Yafran and Zintan.

Rebels were seen patrolling the streets of Zawit Bagoul, 20 kilometres (12.5 miles) from Zintan. Pro-Gaddafi positions on the village outskirts were deserted and loyalists left behind clothes, shoes and ammunition.

The correspondent said the rebels later also moved into Lawania, about seven kilometres away, and then Ghanymma, less than 10 kilometres from Yafran, as NATO aircraft were heard overhead.

NATO, which has carried out 10 weeks of air strikes against Gaddafi's forces, can see out its mission without ground troops, its operations commander said in a briefing.

Lieutenant General Charles Bouchard also said the military situation in western Libya, where there has been an upsurge in fighting, was developing "very positively”.

Senior military officials from Britain and France, key players in the NATO campaign, have expressed concerns about how to maintain the NATO operation, which has been extended for a second three-month period from June 27.

But French Foreign Minister Alain Juppe said in Algeria that "a very large majority of the international community" wanted Gaddafi to depart, even though this was not an aim of the UN resolution authorising NATO strikes on Libya.

Meanwhile, Spain said it was expelling Libyan Ambassador Ageli Abdussalam Ali Breni over the Gaddafi regime's repression of civilians and expelling three embassy officials for unspecified activities.

In Tunisia, about 60 Libyans including many government soldiers landed at El Ketef port after the arrival of around 40 of Gaddafi's troops earlier in the week, among them some officers, the official TAP news agency reported.

Bureau Report

Russia, China block report on Iran’s UN breaches http://english.ruvr.ru/2011/06/24/52328302.html

Jun 24, 2011 11:22 Moscow TimeRussia and China have prevented an attempt by the United States to make public a report by independent experts on Iran’s alleged violations of the UN sanctions for lack of trustworthy information. The report’s authors accuse Tehran of violating the UN embargo on arms deliveries to Syria, as well as of developing nuclear weapons under the guise of a programme for nuclear power production for peaceful purposes. Tehran has rejected all accusations, insisting that its nuclear programme only seeks to meet the need of Iranians for electric power. In June 2010, the UN Security Council adopted another resolution providing for toughening sanctions against Iran.

10:17 24/06/2011ALL NEWS

Russia-NATO Council meeting to focus on ABM in Europe.

http://www.itar-tass.com/en/c154/172371.html

24/6 Tass 64

MOSCOW, June 24 (Itar-Tass) —— The problems of a missile defence system in Europe and the struggle against international terrorism will be high on the agenda of a visiting session of the Russia-NATO Council in Sochi in July, Russian Permanent Representative in NATO Dmitry Rogozin said.

He noted that during the council meeting “a Russian exposition for the struggle against terrorism at transport facilities will be staged.” “Russia and NATO are developing jointly a device for a distant explosive detection on the body of so-called live bombs – the project Standex,” Rogozin said in an interview with the Izvestia. “Two St. Petersburg private companies, which operate under the aegis of the Russian nuclear power corporation Rosatom, are involved in the project,” he said.

Commenting on a plan to withdraw the troops from Afghanistan that US President Barack Obama made public, Rogozin stated that for NATO allies the withdrawal of US troops from this country “will give an impetus to cut their contingents.” “But this will not result in the immediate withdrawal of all NATO forces,” the Russian permanent representative said. “It should be noteworthy that the United States will never quit Afghanistan completely. We are monitoring this process in Brussels, Kabul and do not expect any surprises,” Rogozin noted.

Rogozin also commented on the recent misdirected bombing of a residential house in Tripoli that killed nine people. “This will most likely not entail any legal consequences. Meanwhile, the daughter of Libyan leader Muammar Gaddafi filed a lawsuit in the Brussels court over the killing of her brother and cousins in the NATO bombing. The

jurists are studying closely the lawsuit. The lawsuit will be probably accepted for hearings,” he pointed out.

In reply to Latvia’s statement that if Russian helicopter carriers Mistral are deployed in the Baltic Sea the country will demand a compensation from NATO, Rogozin stated, “The Baltic states and those who support them actively will take the deployment of any Russian weapons in the Baltic Sea region as a direct threat to the country’s security.” “They have been speculating in this way for a long time. In fact, this is a propagandistic campaign that is seeking to bring the US and NATO infrastructure closer to our western borders,” Rogozin said.

The Russia-NATO Council will have a meeting in Sochi from July 3 to 4, Rogozin said earlier. NATO Secretary General Anders Fogh Rasmussen, Russian Deputy Prime Minister Dmitry Kozak, Russian Foreign Minister Sergei Lavrov and probably Defence Minister Anatoly Serdyukov are expected to attend the council meeting.

June 24, 2011 09:00

Diplomats trying to agree on ministerial meeting of Middle East quartethttp://www.interfax.com/newsinf.asp?id=254281

MOSCOW. June 24 (Interfax) - Special envoys of the Foreign Ministries of member-nations of the Middle East quartet at their June 24 meeting in Brussels will discuss the time of a ministerial meeting of the quartet that comprises Russia, the United States, the EU and the United Nations.

"I can tell you that we are meeting in Brussels on the 24th and will discuss this issue, the meeting of ministers," special representative of the Russian Foreign Minister in the Middle East Sergei Yakovlev told Interfax on Monday.

Tentatively, the date of the ministerial meeting had been discussed by representatives of mediators, "but it has not been approved yet," he said.

It will be the third attempt to hold a ministerial meeting of the quartet. Initially it was slated for March 15 but was later put off to April 15. However, the meeting did not take place on April 15 at the request of the U.S. side.

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(Our editorial staff can be reached at eng.editors@interfax.ru)

Foreign Minister Receives Letter from his Russian Counterparthttp://www.bna.bh/portal/en/news/462178

Manama, June 23. (BNA) – Foreign Affairs Minister Shaikh Khalid bin Ahmed bin Mohammed Al Khalifa received here today Russian Foreign Ministry's Middle East and North Africa Director General Sergei Vershinin who delivered to him a letter from his Russian counterpart Sergei Lavrov on bilateral relations.During the meeting, Shaikh Khalid discussed with the Russian Foreign Minister's special envoy ways of bolstering Bahraini-Russian friendship and cooperation ties, especially in economic and investment fields for the joint interests of both countries. He also reviewed with the Russian official the latest regional developments, praising Russia's balanced stances in this regard. He also hailed the efforts exerted by the Russian Foreign Minister Sergei Lavrov for the sake of promoting peace and stability in the region. On his part, Sergei Vershinin reiterated his country's support for the National Consensus Dialogue due to start soon in the kingdom, adding that Russia is proud of its advanced relations with the kingdom. WHQ

Kim Jong-il 'to Meet Medvedev' http://english.chosun.com/site/data/html_dir/2011/06/24/2011062400532.html

North Korean leader Kim Jong-il and Russian President Dmitry Medvedev may meet next week in Vladivostok, PrimaMedia, a news agency for Russia's Far East, said Thursday.

Medvedev "will visit Vladivostok between June 29 and July 1 to inspect preparations for the APEC Summit there next year and there is the possibility of a summit with North Korean leader Kim during the visit," PrimaMedia reported. "This has been confirmed by several sources."

If the summit takes place, it would be the first meeting between the leaders of the two countries in nine years. Kim and Putin also met in Pyongyang in July of 2000, in Moscow in August 2001 and in Vladivostok in August of 2002 to discuss economic cooperation.

englishnews@chosun.com / Jun. 24, 2011 09:25 KST

June 24, 2011 14:57 PM

Asean-Russia Senior Officials Meeting Held In Myanmar Capital

http://www.bernama.com/bernama/v5/newsworld.php?id=596456

YANGON, June 24 (Bernama) -- The 8th Asean-Russia Senior Officials Meeting (SOM) has been held in Myanmar's capital of Nay Pyi Taw, attended by representatives and senior officials from member states of the Association of Southeast Asian Nations (Asean) and the Russian Federation, Xinhua news agency reported, citing official media report Friday.

Co-chaired by visiting Deputy Foreign Minister of the Russian Federation Alexei N. Borodavkin and Director-General of Asean Affairs Department of the Myanmar Foreign Ministry U Tint Swai, the meeting on Thursday discussed development of Asean-Russia cooperation and exchanged views on regional and international issue, said the New Light of Myanmar.

The meeting reviewed Asean-Russia dialogue relations and discussed issues concerning future direction including implementation of Asean-Russia energy cooperation work plan, cooperation in countering terrorism, working on emergency management, implementation of comprehensive programme of action plan 2005-2015 to promote cooperation between Asean and Russia Federation, road map of trade and economic cooperation and interaction in field of science and technology, the report added.

The meeting agreed to hold the next Asean-Russia SOM in Russia in 2012.

Myanmar has been serving as the country coordinator of Asean-Russia dialogue relations for three years since 2009.

Myanmar hosted the 8th Asean-Russia Joint Coordination Committee Meeting, the 7th Asean-Russia Joint Planning and Management Committee Meeting, the 2nd Asean-Russia Working Group Meeting for 2nd ASEAN-Russia Summit in November 2009.

Meanwhile, foreign ministries of Myanmar and Russia held consultations on Wednesday on promotion of bilateral relations and enhancement of cooperation in regional and international organisations with the two delegations represented by Deputy Union Foreign Minister U Maung Myint and his Russian counterpart Borodavkin respectively.

The two deputy foreign ministers exchanged views on current international issues.

Borodavkin arrived in Nay Pyi Taw earlier on Wednesday for the 5th regular consultations between the two foreign ministries.

On the same day, Myanmar Vice President U Tin Aung Myint Oo and speaker of the House of Representatives U Shwe Mann met with Borodavkin.

-- BERNAMA

KARABAKH CONFLICT - 9TH TRIPARTITE PRESIDENTIAL MEETING KAZAN

Big powers press for progress on Karabakh conflicthttp://in.reuters.com/article/2011/06/24/azerbaijan-armenia-karabakh-idINLDE75M0GG20110624

5:47am IST

* Medvedev hosts Azeri, Armenian leaders at crucial meeting

* United States, Russia, France hope for breakthrough

By Steve Gutterman

MOSCOW, June 24 - Bitter neighbours Armenia and Azerbaijan are under pressure from global powers for a breakthrough on Friday in their long and bloody dispute over the mountainous territory of Nagorno-Karabakh.

Azeri President Ilham Aliyev and Armenia's Serzh Sarksyan hold talks in Russia on Nagorno-Karabakh, which Armenian-backed forces wrested from Azeri control in the deadliest war to break out as the Soviet Union splintered apart two decades ago.

A 1994 ceasefire halted the conflict with 30,000 dead and as many as one million driven from their homes.

But gunfire and landmines frequently kill soldiers on both sides of the frontline and the threat of a return to war looms over an energy transit corridor sandwiched between Russia and Iran.

After years struggling to shepherd the ex-Soviet rivals toward a resolution, the United States, Russia and France -- leaders of international mediation efforts -- are pushing for a serious step forward.

At a G8 summit on May 26, Presidents Barack Obama, Dmitry Medvedev and Nicolas Sarkozy said they were "convinced that it is time for the sides in the conflict over Nagorno-Karabakh to take a decisive step towards a peaceful resolution."

They hope the meeting hosted by Medvedev in Kazan, 720 km (450 miles) east of Moscow, will bring final agreement on a 14-point framework document -- known as the Basic Principles -- that would set the stage for talks on a peace settlement.

Obama, Medvedev and Sarkozy "believe the current version that's on the table is a just and balanced document," said Ambassador Robert Bradtke, who leads U.S. mediation efforts.

"Now the question is, do the parties have the political will to make the decision, to accept the principles, and then move on to the next stage, which is to transform those principles into the details of a final peace settlement," he said.

The 14-point framework document would set guidelines for the future determination of the final status of Nagorno-Karabakh, which has run its own affairs with Armenia's support since the war, as well as the return of territories surrounding the enclave to Azeri control, with a corridor linking it to Armenia.

Other principles are the right of return of refugees on both sides, an interim status providing security and self-governance for Nagorno-Karabakh as well as international security guarantees to keep the fragile deal from falling apart.

But it was unclear whether Friday's meeting would produce agreement on the Basic Principles.

Each side has accused the other of hampering progress over years of diplomatic nudging, closed-door talks and public recriminations.

With its legacy of death and displacement, Nagorno-Karabakh is an issue close to the hearts of Azeris angry over losing control of a chunk of territory and Armenians bitter over isolation by Azerbaijan and its ally Turkey.

So far, the international push for a resolution has been overmatched by domestic pressure to avoid concessions.

A breakthrough would be a boon for Medvedev, Obama and Sarkozy, all three of whom may run for re-election next year.

For Medvedev, who has huddled with Aliyev and Sarksyan eight times since taking office in 2008, the absence of agreement would be a "personal failure", said Tom de Waal, senior associate at the Carnegie Endowment for International Peace.

It would leave a shrinking window for agreement as elections approach in Russia, France, the United States and Armenia, he said.

"It becomes more difficult in 2012 to make a deal."

Diplomats say that agreement on a blueprint could melt away if subsequent talks on a peace treaty get stuck.

The dispute scuttled a historic rapprochement between Armenia and Turkey last year and Azerbaijan has said it could reclaim Nagorno-Karabakh by force if the status quo persists.

"If there is no agreement, then certainly we are entering a slow slide towards war," said de Waal. (Additional reporting by Margarita Antidze in Tbilisi; Editing by Angus MacSwan)

11:51 24/06/2011 » Politics

Russian city of Kazan will host 9th tripartite presidential meeting todayhttp://www.panorama.am/en/politics/2011/06/24/kazan/

 Today, on 24th of June by the initiative of Russian President Dmitry Medvedev Russian city of Kazan will host tripartite presidential meeting of presidents of Armenia, Azerbaijan and Russia. This is the ninth tripartite meeting – in 2008-2011 tripartite presidential meetings took place in Saint Petersburg thrice, in Moscow twice and in Sochi, and another one in Astrakhan. Three documents have been adopted during those meetings – Mindorf declaration in 2008, statement of Astrakhan in 2010 and state of Sochi in 2011.

Prior to the meeting heads of the OSCE Minsk Group co-chairing states Dmitry Medvedev, Barack Obama and Nicolas Sarkozy issued a statement calling on the parties to demonstrate their political will by finalizing the Basic Principles during their upcoming summit in June.

Earlier in Strasbourg while delivering address to PACE President Serzh Sargsyan stated Kazan meeting would record a breakthrough if Azerbaijan doesn’t appear with new proposals.

June 24, 2011 11:52

Armenia, Azerbaijan should adopt principles of Karabakh conflict settlement – Sarkozyhttp://www.interfax.com/newsinf.asp?id=254339

YEREVAN. June 24 (Interfax) - French President Nicholas Sarkozy has sent a letter to Armenian President Serzh Sargsyan before his meeting in Kazan with his Azeri counterpart Ilham Aliyev, which is expected to address the settlement of the Nagorno-Karabakh conflict.

"President Sarkozy said he wants to become confident in the wake of the statement made by the presidents of Russia, the U.S. and France in Deauville that the time has come to

reach agreements on the principles on the basis of which the negotiations can continue in the future," Sargsyan's press service told Interfax on Friday.

"There are moments in history when heads of state should show to their peoples a way of bravery, wisdom and peace," Sarkozy said.

The countries co-chairing the OSCE Minsk Group (Russia, the U.S. and France) on the Nagorno-Karabakh settlement earlier expressed hopes that the work on the main settlement principles, which will become a foundation for a peace treaty, will be completed in the upcoming meeting in Kazan.

"The efforts of the co-chairmen at all levels are now focused on convincing all the parties to complete the work on this document at the upcoming summit in Kazan," a source in the Kremlin told Interfax.

av eb

(Our editorial staff can be reached at eng.editors@interfax.ru)

French President’s message to President Serzh Sargsyan http://www.aysor.am/en/news/2011/06/24/sarkozy-sargsyan/

French President Nicolas Sarkozy has issued a message to President Serzh Sargsyan ahead of the tripartite presidential meeting in Kazan, RA President’s press office said.

President Sarkozy noted that as a continuation of the statement issued by the Presidents of U.S., Russia and France in Deauville in late May, he asserts that it is time to fix the principles which will be bases for further settlement negotiations. According to the French President, at certain moments in history, heads of states must point out to the path of bravery, wisdom and peace to their peoples. Now it’s the time, according to Nicolas Sarkozy.

“In any case, being a friend to you, and supported by France, Armenia’s sister country, I sincerely wish you success in this decisive meeting. My country will spare no effort to support you in this process,” the message said. 

TODAY, 12:16

Aysor.am

Russia hosts trilateral summit on Nagorny Karabakhhttp://en.rian.ru/world/20110624/164809088.html

04:56 24/06/2011

MOSCOW, June 24 (RIA Novosti)

Presidents of Russia, Armenia and Azerbaijan will meet on Friday in the Volga city of Kazan in an attempt to move closer to a settlement of the two-decade conflict between Baku and Yerevan over Nagorny Karabakh.

Nagorny Karabakh, a breakaway region on Azerbaijani territory with a predominantly ethnic Armenian population, has remained in Armenian control since the late 1980s, when the region claimed independence from Azerbaijan to join Armenia. The conflict is estimated to have left more than 30,000 people dead on both sides between 1988 and 1994.

U.S., France, and Russia presented a preliminary version of the Basic Principles for the Nagorny Karabakh settlement to Armenia and Azerbaijan in November 2007 in Madrid. The version was updated in 2009.

The Basic Principles include the return of the territories surrounding Nagorny Karabakh to Azerbaijani control, an interim status for Nagorny Karabakh providing guarantees for security and self-governance, and the right of all internally displaced persons and refugees to return to their former places of residence.

The OSCE Minsk Group, comprising Russia, France and the United States, has mediated the conflict for many years without much progress.

Shootouts frequently occur on the border between Azerbaijan and Nagorny Karabakh, with Baku and Yerevan continuing to accuse each other of violating the ceasefire agreed in 1994.

U.S. President Barack Obama said in phone calls on Thursday to Armenia's Serzh Sargsyan and Ilham Aliyev of Azerbaijan that "the moment has come for all the sides to the Nagorno-Karabakh conflict to take a decisive step towards a peaceful settlement."

04:02 24/06/2011ALL NEWS

Russia wants to finalize Nagorno-Karabakh settlement guidelines.

http://www.itar-tass.com/en/c154/172217.html

24/6 Tass 2

MOSCOW, June 24 (Itar-Tass) —— Russia wants to finalize the guidelines for Nagorno-Karabakh settlement at the three-party summit on Friday, which will be the ninth meeting of Russian President Dmitry Medvedev with his Azerbaijani and Armenian counterparts, Ilkham Aliyev and Serzh Sargsyan, since 2009.

“At present the efforts of co-chair countries (Russia, the USA, and France) at all levels are aimed at convincing the parties to finalize the document at the upcoming summit in Kazan. Such a signal was sent to the leaderships of Azerbaijan and Armenia in a joint statement by Dmitry Medvedev, Barack Obama, and Nicolas Sarkozy adopted on the sidelines of the G8 summit in Deauville on May 26,” the Kremlin press service said.

It said increased ceasefire violations and casualties among the military and civilians, as well as militant rhetoric of both parties cannot but cause concern. “In this context non-use of force or threat of force comprises an integral part of the negotiations. Russia consistently convinces the parties of the conflict to enhance trust”, it said and recalled the three presidents had agreed in March to resolve all disputes by peaceful means.

Foreign ministers of Russia, Azerbaijan, and Armenia met in Moscow before the summit and succeeded to bring positions closer regarding settlement guidelines. “The presidents will consider their proposals and make corresponding decisions. The Russian side hopes further progress will be more active,” foreign ministry spokesman Alexander Lukashevich said.

Obama Calls Armenian, Azerbaijani Leaders Ahead Of Summit http://www.rferl.org/content/obama_calls_armenian_azerbaijani_leaders_ahead_of_summit/24245028.html

U.S. President Barack Obama

June 24, 2011 The White House says U.S. President Barack Obama has telephoned the presidents of Armenia and Azerbaijan to urge progress in talks to end the conflict over Nagorno-Karabakh, the Armenian-majority enclave located within Azerbaijani borders. The phone calls came ahead of the June 24 summit between Armenian President Serzh Sarkisian and Azerbaijani President Ilham Aliyev. The summit is being held in Kazan, Russia, and hosted by Russian President Dmitry Medvedev. The White House said Obama urged the Armenian and Azerbaijani leaders to sign a "basic principles" agreement aimed at moving toward a resolution of the dispute. Last month, the U.S., Russian, and French presidents jointly called on the Armenian and

Azerbaijani sides to take a decisive step toward a peaceful settlement without "further delay." The "basic principles" set out guidelines for determining the final status of Nagorno-Karabakh. It envisages an Armenian withdrawal from territories in Azerbaijan that surround Karabakh, the return of refugees, and international security guarantees. Ethnic Armenian forces backed by Armenia won control of Nagorno-Karabakh in a war that ended with a cease-fire in 1994. compiled from agency reports

Karabakh | 24.06.11 | 10:01

Armenian opposition party warn Sargsyan against Karabakh concessions http://armenianow.com/karabakh/30599/karabakh_armenia_opposition_heritage_dashnaktsutyun_kazan

A parliamentary opposition party in Armenia has warned President Serzh Sargsyan against making concessions in the settlement of a long-standing conflict in Nagorno-Karabakh.

On the eve of a crucial summit in the Russian city of Kazan between the leaders of Armenia, Azerbaijan and Russia, the Heritage Party also reaffirmed its position that any solution must be primarily approved by Karabakh’s authorities.

“We reject the efforts to present as negotiations the Armenia-Azerbaijan format of meetings, which are held in the absence of the legitimate authorities of the Mountainous Karabagh Republic (MKR), or Artsakh, as well as the attempts to impose solutions as their result. In addition, and while highly evaluating the mediators’ efforts, we consider the adopted path to be not solely at an impasse, but also a process which poses new perils and leads to destabilization…,” the Heritage Party, in particular, said in a statement on June 23.

“…We regard the prospect of Armenia’s endorsement of a document which is designed under force or duress by Azerbaijan, and in MKR’s absence, as a criminal plot that is condemned to fail against MKR, which has lawfully self-determined, decolonized, and established itself and thus is worthy of international recognition.”

The party also warned that Sargsyan’s “formal participation in this conspiracy will entail his effective self-resignation from the homeland and his official duty and, in the event of such unacceptable developments, he must be prepared to legalize such resignation through the conduct of pre-term presidential elections.”

Vahan Hovhannisyan, a senior representative of the Armenian Revolutionary Federation (Dashnaktsutyun), the other parliamentary opposition party, also voiced a critical attitude towards the Madrid principles that underlie the current talks.

“The Madrid principles carry a much greater danger of war than even the preservation of the status quo,” said Hovhannisyan as quoted by RFE/RL’s Armenian Service. He would not say whether his party, which was represented in President Sargsyan’s government until 2009, was also ready to stage antigovernment demonstrations.

Hrayr Karapetyan, another senior Dashnaktsutyun figure who heads the Armenian National Assembly’s standing committee on defense and security, said: “I think it would be naive to talk about surrendering territories, because life shows that the Azerbaijani side uses every opportunity to broaden possibilities of bellicose statements and especially hostilities… We want a peaceful settlement. But not at the expense of our people and our future.”

Meanwhile, Dashnaktsutyun’s Karabakh Central Committee issued a statement commending the efforts of the OSCE Minsk group co-chairs, Armenia’s role in the negotiation process and welcoming the three lead principles of international law put forth for the negotiations, namely nonuse or threat of use of force, right to self-determination and territorial integrity, and that “decisions have not been taken on the said principles without the inclusion of the Nagorno-Karabakh Republic in the negotiation process. It also commended.”

But the Committee, in particular, said that it finds “unacceptable” the deployment of international peacekeeping forces in the conflict zone and considers that as direct interference in the internal affairs of a sovereign independent state.

The Committee is also “convinced that without the full participation of the Nagorno-Karabakh Republic as a party to the conflict in the Karabakh-Azerbaijan conflict resolution process it will be impossible to register advances, and the already breached negotiation process cannot present a complete and lasting solution.”

Armenian President’s interview to Euronews: “Azerbaijan is prepared to train weapons on us” http://times.am/2011/06/24/armenian-president%E2%80%99s-interview-to-euronews-%E2%80%9Cazerbaijan-is-prepared-to-train-weapons-on-us%E2%80%9D/

By Times.am at 24 June, 2011, 10:48 am

Armenian President Serzh Sargsyan had interview with Euronews TV channel on the eve of Kazan meeting. Times.am presents the interview completely.

Euronews-President Sargsyan, there appears to be a sense of optimism about the possible outcome of the meeting to be held in Kazan in Russia. Does this suggest that you are prepared to make concessions, despite the difficulties, as you said in a speech at the Council of Europe?Mr. Sargsyan – Optimism is a good thing, but I would rather be constructive and I must say my expectations are not that great. You mention concessions, but we are against unilateral concessions. We are for bilateral concessions. Must we make concessions with a state that is prepared to train weapons on us.As I said to the Council of Europe that the European Committee against Racism and Intolerance noted in a recent report on Azerbaijan, that there is intolerance and anti-Armenian sentiment. This is not the case in Armenia. We must end this anti-Armenian sentiment and build a future on mutual trust.”

Euronews: “You said it is not possible to negotiate a peace agreement without the right to self-determination for Nagorno Karabakh. But it is a condition Azerbaijan rejects. So how do you intend to break the deadlock?”Mr. Sargsyan: “If Azerbaijan does not accept the principles, then how can they say that the principals of the treaty of Madrid are the foundations on which we continue the negotiations and find a solution to the problem. We know there are three principals.The non use of force and threat of force.Territorial integrity and the right to self-determination.Not only our principals were written into the Treaty of Madrid. It seems a bit strange that for years Azerbaijan has negotiated on a document, when it does not even accept one of the basic principals.”Euronews: “For you the self-determination for Nagorno Karabakh is a prerequisite to negotiate a deal and if Azerbaijan has already rejected this condition, then perhaps we can say there will be no agreement and no progress in Kazan.”

Mr. Sargsyan: “Azerbaijan declares that it is against one or two of the foundations of the treaty.Therefore is the international community saying it does not recognize the right to self-determination?The second scenario will mean the progress of recent decades will be lost. Because if the right to self-determination is not feasible, how was it possible to create ten new states from other states. Just look at the example of Kosovo.I also recall that there was another region of Azerbaijan populated by Armenians, the autonomous Republic of Nakhichevan, but there are no longer any Armenians living there.”

Euronews: “During the last G8 meeting in Deauville the presidents of the United States, France and Russia said the situation was no longer acceptable and an agreement must be reached without delay. Do you think that international mediators are getting a little tired of the deadlock? The Minsk Group (US,France, Russia) said Kazan is the “last chance to

agree.”Mr. Sargsyan: “No. I don’t think the international community is tired. The international community has called on Armenia, Karabakh and Azerbaijan to give a definitive answer on whether or not we are ready to move towards a solution based on these principals. We have been told to answer “yes” or “no” without delay. This is the question we have to answer in Kazan.”

/Times.am/

Azerbaijani president in Tatarstanhttp://news.az/articles/politics/39097

Fri 24 June 2011 05:11 GMT | 7:11 Local Time

Ilham Aliyev began a visit to the Russian Republic of Tatarstan on 23 June.

He was met at Kazan international airport by the president of Tatarstan, Rustam Minnikhanov, and other officials, AzerTAj reported.

On 24 June he will attend Russia's most prestigious horse race for the prize of the Russian president in Kazan.

On 25 June, Ilham Aliyev will attend a summit in the Tatar capital with his Armenian opposite number, Serzh Sargsyan, mediated by Russian President Dmitriy Medvedev, to discuss a settlement to the Nagorno-Karabakh conflict.

News.Az

Nagorno-Karabakh is a historic land of Azerbaijan - Ilham Aliyevhttp://news.az/articles/politics/39110

Fri 24 June 2011 04:47 GMT | 6:47 Local Time

News.Az reprints from Euronews an interview with President of Azerbaijan Ilham Aliyev.

The personal involvement of Russian president Medvedev helps us come closer to a settlement. Therefore, our expectations are optimistic and we think that if the Armenian side will show a constructive approach and will find the political will to make important steps forward, the conflict can be resolved very soon.

 What should the Armenian side do in order to be constructive as you said?

As far as the negotiation process is concerned, the basic principles which were offered by mediators to both sides are in line with internationally recognised principles, which are territorial integrity of the countries and self-governance of the people. These two principles are not conflicting, they are both important, and both of them can be provided in the peace agreement.

What is Azerbaijan prepared to give in the case of withdrawal of Armenian forces from Nagorno-Karabakh? Is Azerbaijan offering something in return?

Actually we do not have to give anything back for something that belonged to us in the first place. Nagorno-Karabakh is a historic land of Azerbaijan and internationally recognised territory of Azerbaijan.

Yes, but the Armenians will only withdraw their troops under some perculiar conditions like, for instance, the self-determination or the strong autonomy of the region I suppose?

For many years our position was very clear and several times I personally, publicly declared that we are ready to grant the highest possible autonomy existing in the world to people who live in Nagorno-Karabakh and who will return to Nagorno-Karabakh.

How should this autonomy work according to you?

That will be the subject for future negotiations and in our minds it could be a meaningful autonomy. The positive example of autonomy existing in Europe, I think, could be very attractive because it would be difficult for us to invent something new. We have positive examples in European countries.

For instance?

For instance in Italy, and Tyrol in Austria, and other places where central government pays a lot of attention, maybe much more attention, to autonomy, and financial support is much broader in order to provide decent living conditions for the people. We can do the same. Azerbaijan is a country with vast financial resources and for us it will not be a big problem to implement serious social and economic development programmes for Nagorno-Karabakh.

What is your impression of the current Armenian political leadership’s approach to this problem? Do you think that they are more open-minded than in the past?

Up until a certain point in time, there was a mood in Armenia that they would keep the status quo as long as they could, and they would succeed in doing that. But important developments in recent months shows that the international community and the co-chairs

of the Minsk Group – the United States, Russia and France, and their leaders - made a very straightforward statement saying that the status quo is not acceptable.

These are the events of recent months. There is a very clear understanding in the world that the Nagorno-Karabakh conflict is not a frozen one. It is not. And the ceasefire is very fragile. The permanent violation of the ceasefire and the line of contact is of serious concern, I think, to all of us – to Azerbaijan, to Armenia, to the international community. Another important factor is that the balance of power between Armenia and Azerbaijan changed dramatically during the last several years. Today, for instance, Azerbaijan’s budget spending is ten times more than Armenia. The whole military budget for Azerbaijan is more than the total budget for Armenia and this is a reality. The more time passes, the gap between the two countries will be even bigger.

News.Az

Stakes High as Medvedev Seeks to Tackle Karabakh Quandary http://www.themoscowtimes.com/news/article/stakes-high-as-medvedev-seeks-to-tackle-karabakh-quandary/439409.html

24 June 2011By Nikolaus von Twickel

The stakes are higher than ever before when President Dmitry Medvedev hosts talks about the Nagorno-Karabakh conflict with the presidents of Azerbaijan and Armenia in Kazan on Friday.

Judging from a recent war of words in the South Caucasus, the risk that a smoldering dispute over the Armenian enclave on Azeri territory will erupt into open hostilities has risen to new heights.

Peace talks mediated by the Organization for Security and Cooperation in Europe, led by Russia, France and the United States in the so-called Minsk Group, have met little success since 1994, when Armenian separatists secured much of Nagorno-Karabakh and some surrounding territory. The conflict killed more than 30,000 people and displaced more than 1 million.

The Foreign Ministry said Thursday that it hoped the Kazan talks would provide a breakthrough. "This meeting will play a landmark role in the Nagorno-Karabakh conflict," the ministry said in a statement.

Clashes have worsened since 2008 around the mountainous enclave, and Baku, buoyed by surging oil profits — much of which has spent modernizing its armed forces — has recently stepped up its rhetoric.

Deputy Azeri Prime Minister Ali Gasanov warned earlier this week that if "Armenia continues to play games, Azerbaijan will free its territories by force," the news site Trend.az reported.

Baku is planning to hold a military parade on Sunday to "show the whole world the might of its army," Gasanov said.

Azeri officials have also threatened to shoot down any planes that try to land at the newly reconstructed airport in Nagorno-Karabakh's capital, Stepanakert. The airport had been closed since 1992.

A growing number of people in Baku believe that the permanent loss of Nagorno-Karabakh can only be averted by retaking the region through military force, analysts said.

"While each side's fundamental positions have not changed, the balance of strength has. Azerbaijan has become stronger, while Armenia is lagging behind," said Svante Cornell, director of the Central Asia-Caucasus Institute in Stockholm.

Despite the difficult circumstances, Medvedev has committed himself to getting Presidents Serzh Sargsyan of Armenia and Ilham Aliyev of Azerbaijan to sign a "basic principles" agreement.

The agreement, forged by Russia, France and the United States in discussions over the past four years, stipulates that Nagorno-Karabakh's status will be determined in a referendum, that people who fled during the early 1990s hostilities will be allowed to return and that an international peacekeeping force will be deployed.

Both sides have not moved an inch in the past, with Azerbaijan insisting that Nagorno-Karabakh remain part of its territory, albeit with broad autonomy, while Armenia says the area must never return to Baku's control.

To make the atmosphere for Friday's talks as rewarding as possible, the Kremlin has moved its annual presidential horserace from Moscow to Kazan. If all goes well, the three leaders will join Tatarstan President Rustam Minnikhanov at the Kazan hippodrome on Friday night to watch a total of nine races, according to the hippodrome's web site.

President Aliyev thanked the European Union for its support of the OSCE Minsk Group during a visit to Brussels on Thursday.

"We want a solution to the conflict to be found as soon as possible that will allow hundreds of thousands of Azeris to return home after our lands are liberated from occupation," he said at a news conference alongside EU President Herman van Rompuy, Azerbaijan's APA news agency reported.

President Sargsyan also was shoring up EU support this week, telling the Council of Europe on Wednesday: "I am going to Kazan in high spirits and in anticipation of a constructive dialogue," Armenian news reports said.

Analysts said the reality is that no side wants to let the situation get out of hand.

"Nobody is interested in a war, not Moscow, not the West, not Armenia nor Azerbaijan," said Alexander Krylov, a Caucasus expert at the Institute of the World Economy and International Relations.

Krylov said that while Azerbaijan has built up its military forces, it faces an incalculable risk in deploying them because Russia would almost certainly support Armenia. Moscow and Yerevan are allied in the Collective Security Treaty Organization, a post-Soviet security alliance, and Russia has a large military base in the Armenian town of Gyumri.

Azerbaijan also could not expect any foreign support, not even from Turkey, which has been the country's closest ally in the past and sided with Baku during the Nagorno-Karabakh hostilities in 1993.

Turkey wants stability in the region, and this is also Russia's interest, Krylov said, pointing out that Moscow faces enough trouble in its restive North Caucasus.

The United States and Europe also have vested economic interests in the energy-rich region. Washington, Brussels and Ankara have recently stepped up support for the Nabucco pipeline, which is supposed to pump Caspian gas, mainly from Azerbaijan, to Europe by 2017 by bypassing Russia.

The biggest hindrance for progress might be that Baku and Yerevan both expect Russia to exert pressure on the other side, Krylov said.

But paradoxically, a breakthrough at Friday's talks might just as well pose new dangers because any rapprochement is likely to be highly unpopular in both countries.

"Peace talks can be destabilizing because they are being opposed all across the political spectrum," Cornell said.

Under these circumstances, some are pinning their hopes on a completely new force in this long-standing conflict — music.

Despite the angry rhetoric emitting from Baku, anyone harboring any plans for war has been forced to postpone them after Azerbaijan won the Eurovision Song Contest in May, said Zurab Kananchev, an Azerbaijan expert at the Academy of Sciences' Oriental Institute. Baku will now host the pan-European television fest next year, and this could well influence the talks in Kazan, he said.

"The victory is a huge collateral for peace," Kananchev said. "500 million TV viewers and tens of thousands of visiting fans — basically all of Europe — will be coming to Baku."

Some Armenians are not so convinced.

"Maybe this event has some significance for the domestic situation in Azerbaijan, but it would be naive to think that it will make them stop the blackmail over Karabakh," Manvel Sargsyan, research director of the Armenian Center for National and International Studies in Yerevan, said in e-mailed comments.

05:05 24/06/2011ALL NEWS

Russia’s Kudrin to discuss cooperation with Italy.

http://www.itar-tass.com/en/c154/172227.html

24/6 Tass 3

ROME, June 24 (Itar-Tass) —— Russian Deputy Prime Minister and Finance Minister Alexei Kudrin will discuss economic cooperation with Italian Foreign Minister Franco Frattini on Friday in the framework of the 12th session of the bilateral council on economic, industrial, and financial cooperation.

Italian foreign ministry spokesman Maurizio Massari said “Russia is our strategic partner which occupies the fourth place by trade turnover. Our strategic partnership is based on common interests and market interdependence.”

Kudrin and Frattini will hold a joint press conference after the talks.

Over four thousand Italian companies operate in Russia, including such giants as ENI which implements the South Stream pipeline project with Gazprom, Finmeccanica which creates the Superjet-100 passenger aircraft with Sukhoi, Unicredit Bank, FIAT, and household appliance producers which have their own facilities in Russia.

Russia invests in Italy through such groups as Severstal, Gazprom, LUKOIL, and others.

PRESS RELEASE

Deputy Minister of Foreign Affairs/State Secretary Grigory Karasin Makes a Working Visit to Belarus

http://www.ln.mid.ru/bdomp/brp_4.nsf/e78a48070f128a7b43256999005bcbb3/953d02ce9da147b8c32578b900206816!OpenDocument

928-23-06-2011

Grigory Karasin, State Secretary and Deputy Minister of Foreign Affairs of the Russian Federation, made a working visit to the Republic of Belarus on June 22-23.

Karasin took part in the solemn events commemorating the 70th anniversary of the start of the Great Patriotic War and the heroic feat of the defenders of Brest Fortress.

The Deputy Minister of Foreign Affairs/State Secretary also spoke at a Union State Border Committee collegium meeting.

June 23, 2011

PRESS RELEASE

Deputy Foreign Minister Gennady Gatilov Meets with Pakistani Ambassador to Moscow Mohammad Khalid Khattak

http://www.ln.mid.ru/bdomp/brp_4.nsf/e78a48070f128a7b43256999005bcbb3/455b66c9a0c5c2ddc32578b90022d449!OpenDocument

924-23-06-2011

Deputy Minister of Foreign Affairs of the Russian Federation Gennady Gatilov received Mohammad Khalid Khattak, the Ambassador of the Islamic Republic of Pakistan to Moscow, on June 23.

During their conversation they discussed, in particular, matters relating to cooperation between Russia and Pakistan in the United Nations and also had an exchange of views on pressing issues of the international agenda.

June 23, 2011

Kharotabad killings: Envoy says slain foreigners were from Dagestan http://tribune.com.pk/story/195213/kharotabad-killings-envoy-says-slain-foreigners-were-from-dagestan/

By Shehzad BalochPublished: June 24, 2011QUETTA: 

A Russian diplomat on Thursday identified two women and a man who were among five foreigners shot dead in Kharotabad on May 17 as residents of Dagestan, a semi-autonomous Muslim region in the Russian Federation.

“The deceased belonged to Dagestan. We could not locate their relatives,” Russian Consul General Andrey V Damidov told reporters. “The victims had no affiliation with any religious organisation”.

The deceased were identified as K H A Magova, A D Sharapudinova and A A Magomedov.

He further said that he had complete faith and confidence in the judicial tribunal formed to investigate the incident.

Earlier he visited the morgue of the Bolan Medical Complex and identified the three bodies, which were almost decomposed.

The Russian consul general had granted permission to Al-Khidmat Foundation for the burial after the Russian government was unable to trace the relatives of the three victims.

Hundreds of people attended the funeral prayers of the three foreigners.

Five foreigners, including three women, were gunned down by paramilitary troops and police personnel in Kharotabad, a suburb of Quetta.

The police had alleged that they were suicide bombers. However, the bomb disposal squad and post-mortem reports revealed that the suspects were neither wearing suicide jackets, nor did they possess explosive material at the time of the attack.

The remaining three bodies were buried in the Jabal-i-Noor al Quran graveyard in Quetta. The funeral prayers were led by the provincial chief of Jamaat-i-Islami (JI), Akhundzada Abdul Matin.

Earlier, the bodies of Olga, a Russian national, and her Tajik husband Nauman were buried at the same graveyard in Quetta.

Published in The Express Tribune, June 24th, 2011.

Russia to strengthen ties with countryhttp://www.sunstar.com.ph/cebu/business/2011/06/23/russia-strengthen-ties-country-162862

By Katlene O. Cacho

Thursday, June 23, 2011

AMBASSADOR Nikolay Kudashev of the Russian Federation committed to strengthen the trade ties of Russia and the Philippines, saying the country is the ideal destination for Russian investments.

Kudashev said the Philippines has investment potential in technology and business process outsourcing (BPO). He said they are interested in public-private partnership (PPP) in the spheres of energy, transportation, communications, infrastructure development, military exchanges, and military technical cooperation.

As for BPOs, Kudashev praised the country’s growing outsourcing industry. He said BPO skills are one of the treasures of the country, where countries like Russia would be willing to invest.

In a recent report, the Philippines and Russia agreed to enhance economic relations, with plans to craft a new comprehensive bilateral agreement.

Both countries pledged to enhance trade linkages. Filipino exporters were also encouraged to view Russia as a potential market for their products, diverging from the traditional export markets.

Russia is currently the country’s 27th largest trading partner. Diplomatic relations were established in 1976.

A photo exhibit depicting milestones of Philippines-Russia relations, in celebration of its 35th year anniversary, was launched on Tuesday at the Waterfront Cebu City Hotel and Casino. The photo exhibit will run until June 28.

Kudashev said Cebu, which he described as a “jewel” in the bilateral agreement, is a good partner to improve trade relations with. He cited tourism as one of those sectors that they want to grow.

Honorary Consul of the Russian Federation to the Philippines Armi Lopez-Garcia said tourism and culture are the entry points of trade and investment.

Russian tourist arrivals last year was recorded at 50,000 all over the country, a growth of 200 percent.

“A lot of Russians come here because of the warm hospitality of Filipinos, the good weather and beautiful beaches,” she said.

With the influx of Russian tourists in Cebu, Garcia announced that a short-term course for Russian language will be opened in August at the University of San Carlos. She said it is open to anyone interested to learn the language.

She said the short term course would also enable hotels and hotel and restaurant management (HRM) students to broaden their knowledge and skills in Russian.

“This is one evident partnership with Cebu and the Russian Federation as Russia will be providing materials and professors for the Russian language,” Garcia said.

To increase Russian arrivals in the country, Kudashev said they will also be pushing for more direct flights from Russia to the Philippines next year, with Cebu as a possible destination.

He said the country’s pocket open skies policy will enhance the tourism sectors of both countries. Kudashev said this would further increase the number of Russians visiting the country for vacation.

Currently, Russians fly on their second largest airline TransAero, which launched chartered flights on a Boeing 747 to Cebu from Moscow in November 2010.

“Cebu would be a potential gateway considering the congestion problems at the Ninoy Aquino International Airport,” he said.

Published in the Sun.Star Cebu newspaper on June 24, 2011.

Russian delegation tours wastewater treatment plant, landfillhttp://www.seacoastonline.com/apps/pbcs.dll/article?AID=/20110624/NEWS/106240387/-1/NEWSMAP

Objective is to take home ideas for their own upgradesBy Deborah Mcdermottdmcdermott@seacoastonline.comJune 24, 2011 2:00 AM

PORTSMOUTH — In Severodvinsk, Russia, recycling is pretty much nonexistent and landfills have no impervious plastic liners, so the garbage literally seeps into the ground.

That's just one of the challenges facing the shipbuilding city of 240,000 on the White Sea, and one of many reasons a delegation of environmentalists visited the Seacoast this week. The six members of the delegation are the guests of the Portsmouth-Severodvinsk Connection, which for 15 years has been sending people from both cities on cultural exchanges.

The group visited various places this week, including Waste Management's Turnkey Landfill in Rochester on Thursday. Speaking with the Herald on Wednesday after a tour of Portsmouth's wastewater treatment facility on Peirce Island, they said they were looking forward to seeing the landfill.

"We do have a landfill similar to yours, but it was established in 1967 and there's been no new technology since," said Lyena Kharitonova, a specialist in utilities, through an interpreter. "We're hoping to establish a new landfill that will comply with environmental regulations."

The group also visited Portsmouth's solid waste and recycling center on Wednesday. Along with the visit to Rochester, it will be the high point for Kharitonova, Anastasia Mityukova, vice director of Ecology Nord, LLC, a recycling business, and Nadezhdah Gargarina, an attorney for Severodvinsk environmental businesses. Recycling, they said, is a huge problem in Severodvinsk.

"At this point, the waste is not being divided. Very little is being recycled," Kharitonova said. "It's a big problem in general. We're just at the beginning stage."

Several in the delegation mentioned how impressed they were with the University of New Hampshire's co-generation plant. In agreement with Waste Management, methane gas from the landfill is piped to Durham and converted into energy that powers much of the campus.

For Vidas Kriauchiunas, a research assistant in radiology at the Arctic Institute for Ecological Problems, going to UNH was like going home.

"I was able to speak with other professors in my own circle," he said. "I didn't want to leave the university."

Portsmouth City Engineer Peter Rice gave the group a tour of the Peirce Island treatment plant and spoke of the federal mandate that the city upgrade it to a secondary treatment facility. He told how neither the federal or state government has money to help the city build it, nor do they have funds to conduct studies on outflow into the Piscataqua River.

"As the responsible party, we have to look at the science the government is generating and say, 'Does it make sense?' We're responsible to regulators, but also to taxpayers and ratepayers," he said.

The public is invited to the city library at 10 a.m. today, when WCSA's Tim Stone will tape his environmental show with the delegation and local and state environmental groups. The group will remain in the area until Sunday.

08:27 24/06/2011ALL NEWS

Russian sailors deaths in Indonesia supposedly caused by methyl alc.

http://www.itar-tass.com/en/c154/172282.html

24/6 Tass 44

VLADIVOSTOK, June 24 (Itar-Tass) —— The fatal poisoning of Russian sailors, ship crewmembers, in the Indonesian port of Banjarmasin was supposedly caused by methyl alcohol. A can with such alcohol was found in the room of one of the sailors who was the first to die aboard the ship.

Seven of the crewmembers were poisoned. Four of them have died, and three have been taken to a local hospital. The hospitalized sailors are in "encouraging" condition, the captain reported to the Vladivostok-based Asian Shipping Holding, the ship operator.

The poisoning incident occurred on Thursday. The crew of the ship Captain Kurbatsky numbered 25 people, all employed in Vladivostok. The ship from the port of Vanino, the Khabarovsk territory, arrived in Banjarmasin from Greece.

According to the information from Indonesia, an investigation into the incident was launched in the port.

June 24, 2011 10:32

Russian Air Force, Navy to be reformed in 2011 - General Staffhttp://www.interfax.com/newsinf.asp?id=254306

MOSCOW. June 24 (Interfax-AVN) - The reform of the Russian Air Force and Navy will be completed before the end of this year, Nikolai Makarov, the head of the Russian General Staff, said at the graduation ceremony at the Air Force General Staff Military Academy on Friday.

Air Force and Navy units will become permanent readiness units, he said.

av eb

(Our editorial staff can be reached at eng.editors@interfax.ru)

Meeting with permanent members of the Security Councilhttp://eng.kremlin.ru/transcripts/2453

June 23, 2011, 16:00 The Kremlin, Moscow

The meeting discussed various domestic and foreign policy issues, including military education reform.

Taking part in the meeting were State Duma Speaker Boris Gryzlov, Chief of Staff of the Presidential Executive Office Sergei Naryshkin, Secretary of the Security Council Nikolai Patrushev, Foreign Minister Sergei Lavrov, Defence Minister Anatoly Serdyukov, Director of the Federal Security Service Alexander Bortnikov, and Director of the Foreign Intelligence Service Mikhail Fradkov.

* * *

PRESIDENT OF RUSSIA DMITRY MEDVEDEV: Today, one of the issues on our agenda is reforming the military education system. This topic is extremely important for the Defence Ministry and for a large number of people who have made the decision to serve in the Armed Forces. We must finalize certain military education parameters both for the present and for the future.

Until recently, this system was very cumbersome, having been passed on to us from Soviet times. Although the size of our Armed Forces and the challenges before us have changed, head count optimisation has had only a partial effect on higher military

education, so a whole set of organisational decisions was made. Let me remind you that compared to 1991, the need for officer training has fallen seven-fold, while the number of military academies and their affiliates has only been decreased 3.5-fold, or even a slightly less.

As a result, graduates from university-level military academies are on the brink of cutbacks just as they complete their studies. This is a threat to their career advancement. We will need to discuss this in order to correct officer training at military academies and civilian universities affiliated with subsequent service in the Armed Forces. At the same time, this must go hand-in-hand with organisational decisions and social decisions for people working in the military education system, along the lines of our common approaches to military establishment reform.

I would like to hear Defence Minister’s [Anatoly Serdyukov’s] report on the progress of military education system reform and possible suggestions to improve the situation within this system. What’s most important is increasing the quality of training for the graduates, the officers who are studying in the universities. They must be modern, well-trained, physical, and capable of solving the very difficult problems facing Russia’s Armed Forces today.

RT News line, June 24

Alleged Chechen terrorist detained in Berlinhttp://rt.com/news/line/2011-06-24/#id12883

05:23

An alleged courier for a Chechen terrorist group was arrested Thursday in Berlin. The 35-year-old Russian national is suspected of carrying forged documents between Germany and the Czech Republic from 2008 to 2010 on behalf of Jamaat Shariat, an Islamist rebel group fighting against Russian rule in the Caucasian republic of Chechnya. Prosecutors said the forgeries were used as travel papers by terrorists crossing borders and to obtain money for the purchase of weapons. An alleged accomplice was also arrested in Berlin on June 3. Germany intends to send both men to the Czech Republic, which was the principal location where the forgery offences occurred.

10:36 24/06/2011ALL NEWS

Five law enforcers killed, 13 injured in Dagestan.

http://www.itar-tass.com/en/c154/172386.html

24/6 Tass 104

MAKHACHKALA, June 24 (Itar-Tass) —— Five law enforcers were killed and another 13 were injured in a special operation in the Kizlyar district of Dagestan, the press service of the Dagestani interior ministry told Itar-Tass on Friday.

“For three days of combat actions five law enforcers were killed, including two FSB commandoes and three servicemen of the Interior Troops, 13 law enforcers were injured, including five of them were already passed to outpatient treatment,” the press service said.

The ministry denied the reports about seven killed law enforcers and 16 injured law enforcers.

The search through the terrain continues in the special operation zone on Friday. Two gunmen were found dead in the forest, where mortar and missile strikes were delivered. A tent camp of three tents placed by the bandits was also found in the forest. Two explosive devices, grenades, cartridges, a Makarov pistol, sleeping bags and uniforms were also found at the camp.

The special operation to bust up to ten gunmen was launched on Tuesday morning near the settlements of Bolshakovka and Kuznetsovka. The gunmen were attempting to break through the circle of surrounding.

09:14 24/06/2011ALL NEWS

Police major killed in armed clash in Kabardino-Balkaria.

http://www.itar-tass.com/en/c154/172326.html

24/6 Tass 73

NALCHIK, June 24 (Itar-Tass) —— A police major was killed in an armed clash in Kabardino-Balkaria. As ITAR-TASS learnt at the Russian Investigation Committee for the republic, the shooting began in the area of Kamuk of the city of Tyrnyauza at about 02.00 on Friday. Police Major of the Interior Department of the Perm Territory A.Tunev was killed in it.

The details of the incident are being specified. No information on the continuation of the clash is available at present, the source said.

Criminal proceedings were instituted.

Transport ministry recommends grounding Tu-134 fleet after crashhttp://en.rian.ru/russia/20110624/164813761.html

11:08 24/06/2011

MOSCOW, June 24 (RIA Novosti)

Russia’s Transport Ministry and the Tupolev aircraft design bureau have recommended grounding the nation’s fleet of Tupolev Tu-134 airliners to the Trade and Industry Ministry, following a crash on Monday night that killed 45 people.

The decision to recommend grounding Tu-134s was taken on Thursday following a meeting held by Transport Minister Igor Levitin, following an instruction by President Dmitry Medvedev earlier that day that the Tu-134 should not be retained in service for airline use.

“The Transport Ministry, together with Rosaviatsia (Russia’s aviation regulator) has composed a schedule for the withdrawal of the Tu-134 from use on regular flights,” the ministry said in a statement.

The decision comes despite a statement earlier this week by the Interstate Aviation Committee, Russia’s air accident investigatory body, that the Tu-134 which crashed was fully serviceable until the moment of impact.

The accident was also initially blamed on pilot error by Deputy Prime Minister Sergei Ivanov on Tuesday.

Tu-134 pilots generally have a favorable opinion of the aircraft, and most have been withdrawn from service because of non-compliance with international noise regulations and low fuel economy rather than for safety reasons.

The Tu-134 entered service in 1967 and production ceased in 1980.

The Transport Ministry says that of the 852 Tu-134s built, 179 remain, of which 90 are still flying. Of those, 28 belong to UTair Express, one of Russia’s largest airlines.

A RusAir Tu-134 crashed while landing at Petrozavodsk airport in northwest Russia on Monday, just before midnight, killing 44 people. Another died in later in the hospital.-0-

Fighter jet crash kills two in southeastern Russia http://english.peopledaily.com.cn/90001/90777/90853/7419855.html

13:55, June 24, 2011 A Russian MiG-29 fighter jet crashed in the Astrakhan region of southeastern Russia on Thursday, killing two pilots on board, according to the Russian Defense Ministry.

The spokesman of the ministry, Igor Konashenkov, said the MiG- 29 fighter of the Russian Air Force crashed at 16:43 Moscow time ( 1243 GMT) some 40 kilometers away from the Akhtubinsk airdrome in the Astrakhan Region.

"The crash occurred during a test flight. Both pilots died. There were no casualties or destruction on the ground," Konashenkov told local media.

According to the spokesman, the two killed were senior officers and highly qualified pilots.

Citing a source close to the investigators on the crash, the Interfax news agency said technical problems or human factors might be the cause of the accident.

After the crash, the Russian Defense Ministry announced it has grounded all MiG-29 fighters over safety concerns.

"The Air Force commander has ordered a suspension of all planes of this type," Konashenkov said.

However, the spokesman didn't reveal when the flight ban will be lifted.

Source: Xinhua

MiG-29 flights suspended after fighter jet crashhttp://en.rian.ru/russia/20110623/164802919.html

20:52 23/06/2011

MOSCOW, June 23 (RIA Novosti)

The Russian Air Force has suspended the flights of MiG-29 fighter jets following a crash in Astrakhan region that killed two pilots, a Defense Ministry spokesman said on Thursday.

A Russian Air Force MiG-29 fighter jet crashed 43 kilometers (27 miles) away from the town of Akhtubinsk in the Astrakhan region earlier on Thursday.

"Following the crash of the MiG-29 fighter in Astrakhan region, all flights of this kind of jets have been suspended by the Russian Air Force Chief Committee," Colonel Igor Konashenkov said, adding that the freeze in the flights would last until the cause of the crash is established, as is standard practice.

Konashenkov said that both pilots were high class specialists.

Akhtubinsk is home to the Russian Air Force's test and tactical evaluation center, but it is not yet known if the aircraft came from that base.

09:19 24/06/2011ALL NEWS

An-2 with passengers makes emergency landing in forest, none hurt.

http://www.itar-tass.com/en/c154/172331.html

24/6 Tass 91

KHABAROVSK, June 24 (Itar-Tass) —— An An-2 plane with 11 passengers aboard made an emergency landing in the taiga in the Amur region on Friday. The pilots managed to land the plane on a clearing in the forest.

According to the preliminary information, none of the eleven passengers and the crew was hurt, an Amur regional government source told Itar-Tass.

The emergency landing was made because of engine malfunction. The plane belongs to the Amur forest guard air base.

A commission is formed to investigate the causes and circumstances of the incident. The commission has left by a helicopter for the site, regional government press service head Anton Ivlev told Itar-Tass.

Two more cases of pilots blinded by lasers reported in Russia's southhttp://en.rian.ru/russia/20110624/164813439.html

10:57 24/06/2011

OSTOV-ON-DON, June 24 (RIA Novosti)

Unidentified individuals blinded the pilots of two passenger planes as they were landing at an airport in Russia's southern city of Rostov-on-Don, the chairman of the local air traffic controllers union, Yury Batagov, said on Friday.

Batagov said both incidents took place on Thursday night an hour apart from each other. The blinded pilots of both aircraft en route from Moscow managed to land safely.

There has been a rise in cases with blinding pilots with laser beams in Rostov-on-Don. On June 3, a crew member of a passenger aircraft was blinded and on June 7, the captain of another passenger plane was also blinded upon landing. Last week someone blinded the pilots of a police helicopter as it hovered for landing.

On the whole, some 30 similar incidents occurred since early this year in Russia, mostly at Moscow airports. In June, aviation authorities expressed concern over the increasing number of laser-related attempts targeting aircraft.

On Thursday, someone tried to blind the pilots of a passenger aircraft en route from St. Petersburg to Moscow as it was landing at Domodedovo International Airport.

President Medvedev defends registration denial to Russian partyhttp://en.rian.ru/russia/20110624/164806995.html

00:52 24/06/2011

MOSCOW, June 24 (RIA Novosti)

Russian President Dmitry Medvedev said there was no political motivation behind the Justice Ministry's refusal to register the opposition Party of People's Freedom.

The Justice Ministry denied registration to the party on Wednesday on the grounds that some of its members were dead before the constituent congress on December 13, 2010, or were underage or could not be found at the addresses indicated in the application documents.

"They should not have attempted to register the party knowing that there were some violations [in registration procedures]," Medvedev told reporters with the Moskovskiye Novosti newspaper during a visit to RIA Novosti on Thursday.

"I believe that the existing registration procedures will be gradually simplified, but any party should follow them while they still exist," the president said.

Russian opposition leaders Boris Nemtsov, Vladimir Milov, Vladimir Ryzhkov and Mikhail Kasyanov founded the Party of People's Freedom in 2010 and said it would put forward its presidential candidate in the summer of 2011.

Nemtsov said on Wednesday the denial of registration was a "political" decision that had no basis in law.

Russia will hold parliamentary elections in December and presidential elections next March.

07:34 24/06/2011ALL NEWS

Medvedev admits talk with Prokhorov on Right Cause.

http://www.itar-tass.com/en/c154/172258.html

24/6 Tass 36

MOSCOW, June 24 (Itar-Tass) —— President Dmitry Medvedev admitted on Thursday he had discussed with billionaire Mikhail Prokhorov his intention to head the Right Cause Party, but denied claims it was a Kremlin initiative.

“We talked with him after he formulated the idea for himself. I do not doubt Prokhorov’s abilities as he heads a major company, earned a lot of money, and really wants to deal with the party,” the president said at a meeting with journalists of the Moscow News daily adding: “So far it is hard to say how Prokhorov will succeed. As a leader he has both strong and weak sides.”

Russian media suggested it was a Kremlin idea to revive the moderate liberal party by sending one of the richest business tycoons to head it.

The president responded “there will always be people who would claim that Medvedev or (Prime Minister Vladimir) Putin invented the idea. There are always people who hate the existing political system, but there is a minority of them. But there are people who are dissatisfied and who dislike the (ruling party) United Russia or Just Russia and who believe the political situation is stagnating. It is hard to say whether Prokhorov will be close to such people,” Medvedev said.

“He believes he has a potential,” Medvedev said about Prokhorov, but added: “Everyone thinks of himself to be capable of achieving a lot.”

06:03 24/06/2011ALL NEWS

Medvedev eyes preventive anti-corruption fight.

http://www.itar-tass.com/en/c154/172235.html

24/6 Tass 31

MOSCOW, June 24 (Itar-Tass) —— President Dmitry Medvedev believes Russian labor laws should get a mechanism of preventive fight against corruption although he realizes it may be used by employers to settle accounts with subordinates.

“Today most dismissals are a result of disciplinary or administrative offenses which have to be proved. But there are situations when the employer should have the right to fire an employee in case of loss of trust or a feeling the employee improperly fulfills his duties. The problem is to dock the ‘loss of trust’ with legislation,” he said at a meeting with journalists of the Moscow News newspaper on Thursday.

He recalled the president can fire a governor for the loss of trust like he did with Moscow Mayor Yuri Luzhkov. “But it is impossible to fire an ordinary official (suspected of corruption). Such a situation with state servants should be changed,” Medvedev said.

He admitted “there is always a risk the legislative norm can be used to settle accounts. But you will agree a superior will always find a way to dismiss an employee he dislikes,” Medvedev said.

05:34 24/06/2011ALL NEWS

Medvedev to fire sport minister if Russia fails at London Olympics.

http://www.itar-tass.com/en/c154/172231.html

24/6 Tass 33

MOSCOW, June 24 (Itar-Tass) —— Russian President Dmitry Medvedev said he would fire Sport Minister Vitaly Mutko if the Russian national team poorly performs at the 2012 Olympic Games in London.

“In case of a failure there will be no alternative to dismissing Mutko,” he said at a meeting with Moscow News daily journalists on Thursday.

There were calls to fire Mutko after Russia poorly performed at the Winter Games in Vancouver in 2010, but Medvedev made it clear he gave the minister another chance.

“On the one hand, I was displeased after the latest Olympics. But on the other hand, how can a president be indignant, ask who is to blame and fire him?”

Medvedev said it was a rule in the Soviet Union to immediately fire officials for sport failures. “It is hard to imagine they would sack ministers in England or the United States for poor sport performance.”

However he admitted there is a limit. “We all live in a certain space and I definitely follow the rules of the game.”

OSCE still uncertain about format of Russian election observer missionhttp://rt.com/politics/osce-format-observer-mission/

Published: 23 June, 2011, 10:20

The OSCE Office for Democratic Institutions and Human Rights is not ready to announce the format and timeframe for its observer mission during Russia’s parliamentary election this December without a prior assessment of the situation in Russia.

On its official website, Russia’s Central Election Commission (CEC) published a letter from the organization’s director Janez Lenarсiс, who says that they might need to send a group of experts to Russia to update earlier recommendations drafted eight years ago. ODIHR observers last visited Russia during the 2003 parliamentary election. Back then, they advised that a standard OSCE mission should start work six weeks before the election and comprise 60 long-term and 400 short-term observers.

In 2007 OSCE representatives refused to monitor the parliamentary election. The organization failed to agree with Moscow on the format of the mission. Russia was ready to accept 70 observers several days before the election, which took place on December 2. The ODIHR, though, insisted on a larger number for a longer term. As a result of the protracted talks, Russia’s CEC was only being able to send an invitation to ODIHR in late October. The organization turned the offer down, saying they did not have sufficient time to apply for their visas.   

This time, Russia’s CEC preferred not to put the invitation on the back burner. Its head Vladimir Churov asked Janez Lenarсiс to send him proposals “on the format and estimated number of observers”. The ODIHR is not currently prepared to respond to his query.   

Lenarсiс asked Russia to accept a small group of ODIHR and PACE experts by mid-August, which would hold a series of meeting with CEC officials, party representatives, members of the public and the media.

“Following expert consultations, I would be pleased to discuss possible observation activities in more detail with you personally, hopefully during my visit to Moscow in September,” Janez Lenarсiс wrote in a letter to CEC chairman Vladimir Churov.

Earlier in an interview to Kommersant daily, Churov noted that they have “exceptionally

friendly relations” with the ODIHR, but that one of their main concerns regarding the European mission is “the use of double standards”.

08:59 24/06/2011ALL NEWS

Senator Ralif Safin recall not included in Altai Rep parl agenda.

http://www.itar-tass.com/en/c154/172315.html

24/6 Tass 72

BARNAUL, June 24 (Itar-Tass) —— The Altai Republic's State Assembly on Friday did not consider the recall of senator Ralif Safin from the Russian parliament’s upper house Federation Council.

Four of the 14 deputies who insisted on the recall of Safin withdrew their signatures from the appeal to the State Assembly's leaders. Finally, the issue was not included in the session agenda, the El Kurultai (parliament) press service said.

However, Speaker Ivan Belkov noted that since the matter had a wide public reaction, "we will still exchange views."

About a week ago, a group of 14 deputies asked the parliament to consider the recall of Safin during the session. They did not say what were the motives of their request. Safin has been a senator from the Altai Republic's State Assembly since 2002.

It is not the first such attempt, deputy head of the assembly office Yevgeny Karpov noted.

Among the 14 legislators calling for Safin's removal from the Federation Council are independent deputies and communists, Karpov added. He did not say whether there were members of the United Russia Party, with whose support Safin was endorsed as a senator in 2010.

June 24, 2011 11:05

Lebedev will serve sentence in Velsk colony – sourcehttp://www.interfax.com/newsinf.asp?id=254318

ARKHANGELSK. June 24 (Interfax) - Former Menatep CEO Platon Lebedev said he will serve his sentence in a penal colony in the city of Velsk, Arkhangelsk region, a source familiar with the situation told Interfax on Friday.

Interfax does not have official confirmation of this information.

Lebedev was expected to take part in the Moscow City Court presidium hearing of his appeal contesting the extension of his arrest in an Arkhangelsk detention facility on Friday.

av eb

(Our editorial staff can be reached at eng.editors@interfax.ru)

Lawyers file parole request for Lebedev's releasehttp://en.rian.ru/russia/20110624/164815842.html

12:12 24/06/2011

MOSCOW, June 24 (RIA Novosti)

The lawyers of Mikhail Khodorkovsky's business partner Platon Lebedev submitted on Friday a parole request with a court in the Arkhangelsk Region, the press center of the former Yukos oil company officials said on its website.

"Today, lawyer Yelena Liptser submitted a request with the Velsk District Court to release Platon Lebedev on parole," the press center said in a statement.

Lebedev was transferred to the pre-trial detention center from Penal Colony 14 in the Arkhangelsk Region's city of Velsk in northwestern Russia.

Khodorkovsky and Lebedev's lawyers already requested paroles for their clients but the Preobrazhensky Court in Moscow denied both requests.

Lebedev is serving a 13-year sentence for oil embezzlement and money laundering.

Khodorkovsky, the former head of Yukos oil company convicted of embezzlement and tax fraud, appealed against his sentence and a second trial in Moscow. He was sentenced to an additional six years on top of his initial eight year sentence by a Moscow court in December 2010, later reduced by one year. He is now due for release in 2016.

The two men have denied all charges against them, saying that they were revenge for Khodorkovsky's funding of opposition parties during the presidency of Vladimir Putin, something the Russian authorities categorically deny.

04:23 24/06/2011ALL NEWS

Suspected killer of Magadan editor detained.

http://www.itar-tass.com/en/c154/172221.html

24/6 Tass 43

MOSCOW, June 24 (Itar-Tass) —— Investigators said they detained a suspected killer of editor-in-chief of Kolyma+ TV channel Anatoly Bitkov in Magadan only two days after the crime.

The regional branch of the Russian Investigative Committee said on Friday the 22-year old suspect was a resident of Magadan with a criminal record.

It said there was a conflict between him and the journalist in Bitkov’s apartment on the night of June 22. The man stabbed the editor several times and killed him.

Earlier police said several reasons were investigated, including that related to Bitkov’s professional activities, but domestic crime was considered as the main one.

Bitkov, 38, was a popular journalist in Magadan and the editor-in-chief of the Kolyma+ channel for several years.

10:17 24/06/2011ALL NEWS

Presidential prize horse races to take place in Kazan.

http://www.itar-tass.com/en/c154/172370.html

24/6 Tass 66

KAZAN, June 24 (Itar-Tass) —— Horse races for the prize of the president of the Russian Federation will take place in the international racing complex "Kazan" this Friday.

Sixteen highest-rated thoroughbred horses four years old and older are admitted by the commission to the competitions.

It is expected to be an impressive event. The prize is 10 million rbls. The strongest horses and most-skilled jockeys will participate in the races that demonstrate how the horse breeding is developed in the country. "We are ahead of many countries for the state of the sector," said First Vice-Premier Viktor Zubkov, who inspected the racetrack on June 15.

Seven of the horses are brought from Kabardino-Balkaria. There is also an application for handsome Argentinean Alfa, said chief trainer Aslangali Alokov. Alfa was bought last autumn.

All the participants are confident in the win of their horses.

Last year’s prize winner from Chechnya does not participate in the competition. The horse has a limp.

The races are held on the eve of Tatarstan’s national holiday Sabantui.

Nine races are in the programme. Aside from the competition for the presidential prize, there will be races for the "National Property", "Towards the Universiade", "Races of Friendship" prizes as well as the awards of Kazan, Tatarstan and the Volga Federal District, a total sum of 28,5 million roubles.

It will be a festive event with fireworks. Up to 6,000 guests are expected to attend it, chief racetrack specialist Natalia Tsyganova said.

10:58 24/06/2011ALL NEWS

Forest fires spread on 873 hectares in Siberia.

http://www.itar-tass.com/en/c154/172404.html

24/6 Tass 51

KRASNOYARSK, June 24 (Itar-Tass) —— The forest fires have spread on another 873 hectares in Siberia. Though the rescuers succeeded to put out 66 fires on 7,704 hectares, 110 fires keep raging on 6,738 hectares of the taiga. Some 44 fires were localized on 2,609 hectares.

Two major fires, which have not been localized yet, are burning on 1,639 hectares in the Zhigalovo district of the Irkutsk Region and the Kurumkan district of Buryatia, a source in the regional EMERCOM center told Itar-Tass on Friday. “No fire threat exists for the settlements,” the source said.

The main reasons for forest fires remain dry thunderstorms and careless handling with fire. The forest fire inspectors, forest rangers have made 426 raids in the search for the

violators of the fire safety rules over the past day. Administrative offence protocols have been made up for the violators of the fire safety rules.

Some 2,390 rescuers from the Federal Forestry Service, the Ministry of Emergency Situations, volunteers and 539 units of machinery are involved in the firefighting efforts. Four helicopters Mi-8 airlifted the paratroopers and put down the wildfires in the Krasnoyarsk and Baikal territories. The helicopters have made 20 flights, shipped 66 paratroopers and dropped 60 tonnes of water.

Some 43 minor forest fires and smouldering fires keep burning in Siberia. Some 717 people and118 units of machinery are involved in the firefighting efforts.

The Service of Hydrometeorology and Environmental Monitoring warned that highly dangerous forest fires may break out in 27 districts in three Siberian territories for the next 24 hours. Moderately dangerous fires are expected in 26 districts in six federal constituents. The rescuers have already made detailed forecasts in the most fire hazardous districts and specified the line-up of the forces involved in the firefighting efforts.

11:22 24/06/2011ALL NEWS

One given 2 yrs on probation, other acquitted over Khimki adm attck.

(adds)

http://www.itar-tass.com/en/c154/172429.html

24/6 Tass 116

MOSCOW, June 24 (Itar-Tass) — The Khimki municipal court on Friday sentenced Maxim Solopov to two years on probation for the participation in the attack on the local administration in July 2010. He was found guilty of hooliganism. Other defendant Alexei Gaskarov is acquitted due to insufficient evidence.

The prosecutor had urged to give them two years on probation. The attorneys asked to acquit Gaskarov and Solopov, who have pleaded not guilty.

Khimki administration official Anzhela Dumova said at the trial that the accused persons were "guides of instability in the country". The court must restore the principle of certainty of punishment, she stressed. Gaskarov and Solopov failed to realize their scenario dangerous for Russia, she added.

According to Dumova, the two intentionally came to Khimki and "organizedly and grossly violated public order". It is a small group of anarchists and anti-social elements set for public disorders in Khimki, she said.

The attack on the Khimki administration building was committed on July 28, last year. According to the prosecution, Solopov and Gaskarov in a group of 150 people staged an action in front of the administration -- fired traumatic arms and threw stones, bottles and fires at the building and left inscriptions on the walls. As a result, damage they did to the building was estimated at almost 400,000 roubles.

First deputy head of the city administration Alexei Valov said after the incident that the participants had gathered at the railway station of Petrovsko-Razumovskaya in Moscow before the action. According to him, the radicals planned to prevent a highway construction supporting meeting organized by the United Russia Party's Young Guard, for which about 300 people came to a park in the city. But the meeting, fortunately, was in time to disperse, and in that case, the extremists attacked the administration, Valov said.

For the construction of the new highway across the Khimki forest, trees will be cut down to clear 144 hectares of about 1,000 hectares of the forest area. The contractor company is obliged to compensate for the cut green area with mass planting of trees on empty places around the park.

Russian Press at a Glance, Friday, June 24, 2011http://en.rian.ru/papers/20110624/164810943.html

08:44 24/06/2011

POLITICS

The presidents of Russia, Armenia and Azerbaijan will meet on Friday in the Volga city of Kazan in an attempt to move closer to a settlement of the two-decade conflict between Baku and Yerevan over Nagorny Karabakh. The summit could bring a long-awaited breakthrough as Russian President Dmitry Medvedev is expected to present a “road map” for the settlement. (Kommersant)

Vladimir Zhirinovsky, the controversial leader of Russia's ultra-nationalist Liberal Democratic Party, said his party could win about 30 percent of votes in December parliamentary elections focusing on the so-called Russian issue. (Kommersant)

Lawyers for jailed tycoon Mikhail Khodorkovsky visited him for the first time in Penal Colony 7 near the town of Segezha in Russia's northwestern Karelia region where he was transferred after a second trial last month. The former Yukos CEO is still held in a “quarantine” block until the colony administration decides who is going to be his cellmate and what activities he should be involved in. (Kommersant)

All-Russia People's Front has received strong support of 38 million Russian farmers when the Russian Agrarian Movement officially joined Prime Minister Vladimir Putin’s brainchild on Thursday. (Kommersant, Rossiiskaya Gazeta, Izvestia)

ECONOMY & BUSINESS

Moscow authorities have agreed to sell 24.5 percent of the stake in one of Russia’s largest construction holdings, Mospromstroy, for over 3 billion rubles (about $100 million). (Kommersant)

One of the world’s largest private investment companies, the Blackstone Group, is planning to enter the Russian market in the near future. (Kommersant)

Russian authorities could order domestic airlines to remove Tu-134 passenger planes from their fleets following a crash landing in Petrozavodsk this week that killed 45 people. Experts say the tragedy was caused by pilot error and this reliable plane may still be operated for a while. (Kommersant, Vedomosti, Izvestia) 

The release of 60 million barrels of crude by the International Energy Agency will lower oil prices but not enough to cause concern among Russian officials. The price of oil rose to nearly $114 per barrel at the end of April due to the global deficit caused by the Libyan conflict. (Vedomosti)

WORLD

Washington is seeking an agreement with Kabul to allow the deployment of 25,000 U.S. soldiers on the border between Afghanistan and Pakistan for an indefinite period after the U.S. withdraws the bulk of its current military contingent from the Central Asian state. The U.S. “border force” is expected to prevent the infiltration of terrorist groups from Pakistan to Afghanistan. (Kommersant)

SOCIETY

Russian Education Minister Andrei Fursenko comments on the failure of the unified state examination in an interview with Rossiiskaya Gazeta.

Moscow authorities have launched a new campaign to attract tourists to the Russian capital. The campaign is worth $278 mln rubles (almost $10 mln) and includes a regular TV program about tourist attractions in Moscow, new street signs and a tourist call-center. (Kommersant)

Merrill Lynch and Capgemini said in a report that the number of millionaires (in dollar equivalent) in Russia rose by 14 percent last year to 134,000. (Izvestia)

Russian tycoon Viktor Vekselberg is in a court conflict with former SUAL head Brian Gilbertson over the Faberge brand name. (Vedomosti)

11:10 24/06/2011ALL NEWS

Russian press review.

http://www.itar-tass.com/en/c154/172417.html

24/6 Tass 83

MOSCOW, June 24 (Itar-Tass) ——

President suggests unregistered PARNAS Party remove obstacles for registration

The unregistered Popular Freedom Party (PARNAS) will not follow the advice of President Dmitry Medvedev, who said it should remove violations, in order to achieve registration. The President believes the Party should prepare the registration documents more accurately. Mikhail Kasyanov, one of the co-chairpersons of the Party, described Medvedev’s suggestion as “indecent.” Some experts are not optimistic about the PARNAS prospects.

Medvedev said in an interview with the Moscow News, published on Friday, that he did not see any political motives in the refusal of the Ministry of Justice to register PARNAS. “They should remove ‘dead souls’ from their lists, and after that they will be registered,” he said. “I believe we should work to create a system, under which a political party will only notify the authorities about their creation. The present procedure of the registration of political parties will be gradually upgraded. Meanwhile, however, since the present procedure is currently in effect, any party should observe it.”

Despite their previous statements, the PARNAS leaders do not see any reason today in appealing against the decision of the Ministry of Justice, Moskovsky Komsomolets writes. Milov, Ryzhkov, Kasyanov and Nemtsov held a press conference on Thursday, the first one after they were denied registration. They reported that they would hardly appeal against the decision of the Ministry, although previously, forecasting the development of the situation, they said they would.

The newspaper reminds that the Ministry of Justice refused to register the PARNAS Party on Wednesday. “Dead souls’ (forged signatures of non-existent persons) were found on its lists, which was one of the reasons for the denial. Vladimir Milov said, however, that their number was so insignificant (the Ministry mentioned 13 signatures in its report) that it cannot change radically the overall number of its members.

The PARNAS co-chairpersons placed a joint statement on its site, in which they denounced the refusal of the Ministry to register the Party, Kommersant writes. The PARNAS leaders wrote that the present authorities, headed by Vladimir Putin and Dmitry Medvedev, as well as their political allies, would be totally responsible for the

political crisis, which may come as a result of the refusal, and for its historic consequences.

Speaking at the press conference on Thursday, the PARNAS co-chairpersons told journalists about plans of their further actions. They described the Ministry’s refusal as illegal and said that PARNAS would continue its work. The thing is, however, that each of them has his own opinion of what they should do. Milov believes PARNAS should concentrate its attention on participation in the presidential campaign. Kasyanov is of the opinion that it is too early to consider participation in presidential elections. Boris Nemtsov regards as senseless the participation of PARNAS in the elections, while Vladimir Ryzhkov did not set forth his opinion on the problem at the press conference, although on June 22 he also urged PARNAS to boycott the elections.

Kommersant experts believe that differences in PARNAS are evidence of the weakness of the Democrats. Evgeny Suchkov, director of the Institute of the Election Technologies, is of the opinion that discord between the co-chairpersons of PARNAS is evidence of the weakness and the lack of unity in the Democratic movement of Russia. “They all seem to be serious people with common views, but each one has interests of his own,” he believes. In his opinion, PARNAS has been and continues to be a “salon party.”

PARNAS is the result of the fusion of Transparency International, the Helsinki Group and The New Times journal. It would be natural for PARNAS to defend interests of individuals, to give consultations on legal problems and to educate people, but not to engage in politics, Nezavisimaya Gazeta writes. In fact, PARNAS really intends to do all those things, but the ambitions of some of its leaders do not allow them to recognize the fact that their project has entered a new dimension. PARNAS reports it is going to “take to the streets,” the newspaper continues. A street policy could only be effective, if factories, mines, trains and the metro come to a standstill. Does PARNAS have enough strength and resources for that? No, it does not. All the movements ‘from below”, capable of influencing the conduct of the authorities in any way, for instance the struggle for the Khimki forest, or rallies in Kaliningrad, achieved success without the help of leaders of the non-system opposition.

X x x

Meeting of the Azerbaijani and Armenian presidents with the assistance of the Russian President may become a breakthrough in the Nagorno-Karabakh settlement

A meeting of the leaders of Azerbaijan and Armenia – Ilkham Aliyev and Serge Sargsyan, due to be held in Kazan on Friday under the patronage of President Dmitry Medvedev, may become a breakthrough in the settlement of the Nagorno-Karabakh problem.

A document has been prepared for signing with a “road map” for the settlement of the problem, which seemed to be impossible to be settled for 20 years, Kommersant writes. It will be based on the principles, agreed upon at the OSCE conference in Madrid in 2007,

which were later rejected both by Baku and Yerevan. The breakthrough, it if takes place, will be one of the key foreign political accomplishments of President Medvedev, the newspaper believes. It may be disrupted only by an armed provocation in Nagorno-Karabakh.

“We have never been as close to success as today,” a diplomat, who took part in the preparation of the meeting, told Kommersant. The Russian Foreign Ministry issued a statement on Thursday, which said that “the meeting is to play a crucial part in the Nagorno-Karabakh settlement.”

The content of the document, due to be signed in Kazan, is kept secret by the negotiating parties. A Western diplomat, who took part in the drafting of the document, told The Kommersant, however, that its central idea is the acceptance by Armenia and Azerbaijan of the so-called Madrid principles. The principles are recorded in the document, which was adopted by co-chairpersons of the Minsk Group on Nagorno-Karabakh (it includes Russia, the United States and France) in December 2007 at the OSCE summit in Madrid. According to the information of the Western diplomat, until recently Baku and Yerevan accepted only some of those principles, and each party chose its own principles to accept. Now they have been persuaded to accept the principles as a whole.

The principles, agreed upon in Madrid, provide for a stage-by-stage advance towards the settlement of the conflict – a sort of a “road map.” To begin with, the main principles of the settlement will be signed, after which Armenia and Azerbaijan will start drafting a peace treaty with the mediation of Russia, the United States and France. Yerevan will have to return to Azerbaijan the Azerbaijani territory around Nagorno-Karabakh, which was captured during the war. An international peacekeeping contingent will maintain security on that territory. A corridor will be made in the Lachi District, which will connect Armenia and Nagorno-Karabakh. A legal status of Nagorno-Karabakh will be established within a few years at a referendum, which will be held on condition that refugees will return home. The most important thing is that Baku and Yerevan will refuse to settle arguments with the help of armed force, which will be done in a legally binding form.

If Ilkham Aliyev and Serge Sargsyan sign the principles, a real breakthrough will take place in Kazan. For the first time ever Azerbaijan and Armenia will have a “road map” for the settlement of one of the oldest conflicts on the territory of the former USSR.

X x x

Punishment for manifestations of racism at stadiums will be toughened

The bureau of the executive committee of the Russian Football Union discussed at its meeting on Thursday the scandalous incident, which took place at a football match between Wings of the Soviets and Anzhi, Makhachkala: a banana was thrown from the stand at Robert Carlos from Brazil, captain of the Makhachkala team. The meeting

adopted a resolution on the toughening of punishment for manifestations of racism at stadiums.

Changes will be made in Article 121 of the disciplinary regulations of the Russian Football Union, which deals with discrimination, racism and a public demonstration of Nazi emblems, Kommersant reports. The second part on the Article, which deals with sanctions “for the insult by spectators of a person because of his race, colour of the skin, language, religion or origin,” will be expanded. Previously a club could be punished for such actions with a fine amounting to 100,000 roubles, or the removal of three points, or both. Now the club, accused of those offences, faces the prospect of playing up to three home matches without public. Besides, the bureau of the executive committee introduced a new sanction for the manifestation of racism and the demonstration of Nazi emblems: now the club, whose fans were found guilty of those violations, may play one of the matches on a neutral field in another city.

The football management body decided to appeal to the law-enforcement agencies to institute criminal proceedings against the football fan, who threw a banana at Roberto Carlos, on the fact of “hooliganism and a gross violation of public order, together with the manifestation of open disrespect for the public, made because of racial hatred.”

Letter to the Editor

A distorted portrait of Russiahttp://www.washingtonpost.com/opinions/a-distorted-portrait-of-russia/2011/06/22/AGnvz3hH_story.html

Friday, June 24, 1:50 AM

It is unfortunate that a paper of The Post’s stature provides an outlet for politically oriented hyperbole masquerading as a substantive policy critique. In his June 19 op-ed column, “Loosening Putin’s grip,” Robert Kagan continued a history of being wrong on a number of issues involving Russia.

Mr. Kagan’s column suggested that foreign investors won’t flock to Russia. That must be surprising news to the many multinational companies, such as Ford, PepsiCo, Alcoa and Boeing, that have made major investments in the Russian market within the past year. Had Mr. Kagan attended last week’s St. Petersburg International Economic Forum, he would have seen firsthand the successes that the government’s initiatives in various fields have begun to produce.

Mr. Kagan’s casual disregard for our economic growth, foreign investment and democratic reforms raises a larger question about his objectivity on Russia.

Dmitry Peskov, Moscow

The writer is deputy chief of staff and press secretary to Russian Prime Minister Vladimir Putin.

Red tape blamed for drop in European visitors to Russiahttp://www.independent.co.uk/travel/news-and-advice/red-tape-blamed-for-drop-in-european-visitors-to-russia-2302158.html

AFP

Friday, 24 June 2011

The number of visitors to Russia from European countries fell by up to 24 percent in the first quarter as tour operators blamed visa costs and red tape, an industry union said Thursday.

"The number of visitors to Russia from countries that have traditionally sent the most tourists has fallen noticeably," the Russian Tourism Industry Union said in a statement.

The number of tourists from neighbouring Finland - recently linked to Saint Petersburg by high-speed train - fell by 24 percent in the first quarter, year on year, the union said, citing official statistics.

The numbers of German visitors fell by 10 percent in the same period and French and Spanish by 14 percent.

However the total number of tourists to Russia, which includes large groups such as the Chinese, rose by five percent.

The tour operators' union said almost all the international tour operators it questioned blamed falling European visitor numbers on "the high cost of tourist visas and the complexity of the visa process for foreigners."

In Spain, the introduction of visa centres to process applications has seen the cost of a tourist visa rise by 30 percent and the time taken from a maximum of 10 days to 21 days, it said.

People wishing to travel to Russia have to acquire an invitation from a hotel, an organisation or a personal friend. Once in Russia, they are required to register with local police.

Russia has insistently called on the European Union to lift visa restrictions on its citizens and President Dmitry Medvedev recently hailed preliminary concessions at a Russia-EU summit.

While Russians can obtain long-term multi-entry tourist visas to Europe, Russia offers only single or double entry tourist visas that cannot stretch beyond booked travel dates.

Citing statistics that any simplification of visa rules increases tourism by up to 30 percent, the tourism union deputy president Yury Barzykin called for the Russian government to ensure its strategy was a "two-way street."

Taking Libertieshttp://russiaprofile.org/politics/39437.html

A Liberal Party with Little Political Clout Was Banned for Political Reasons

By Andrew Roth Russia Profile 06/23/2011

The Russian Ministry of Justice yesterday announced that the liberal People’s Freedom Party (PARNAS) has been denied registration for this December’s parliamentary elections. The party’s leaders have responded with claims that the ministry’s decision was “an unjust, illegal decision that was politically motivated,” and have said that they are prepared to dispute the decision in the courts and on the streets. While tight political control has long been kept over the country’s fringe and opposition political parties, some believe that this may be an attempt to give an extra boost to the Kremlin’s pocket opposition Right Cause Party, headed by oligarch Mikhail Prokhorov, which has set its sights on a second place finish in the upcoming Duma elections.

A spokesperson from the ministry’s press service said the rejection of the People’s Freedom Party’s application was based on multiple grounds. Firstly, the list of party members submitted contained names of individuals who had already died, along with underage members and those not living at their registered places of residence. Secondly, the party’s charter failed to mandate that party leadership be rotated, in violation of electoral law.

The leader of the group’s Moscow branch, Ilya Yashin, said that the ministry's decision to reject the group's registration was a clear legal pretext to achieve a political goal: banning the party from the upcoming elections. Yashin cited as evidence the fact that complaints against the group’s membership list had been made on only 79 of the group’s more than 46,000 files submitted to the election board. “We’re even fighting many of those 79, since we think that mistakes were made [by the ministry]. This was an unjust, illegal decision that was politically motivated,” Yashin said.

PARNAS, a union of several opposition parties, came into existence last December, when its formation was announced by leading opposition politicians Boris Nemtsov, Vladimir Ryzhkov, Vladimir Milov and Mikhail Kasyanov. The party had expected difficulties passing the registration process from the moment of its foundation, said Yashin. “The Ministry of Justice was merely fulfilling the will of Vladimir Putin, who last December publicly named the leaders of PARNAS, said that these people wanted to return to the government, and that he would not allow this to happen. And he didn’t let it happen,” said Yashin.

Pavel Salin, an analyst from the Center for Political Assessments, thinks that the decision didn’t have a “purely political character,” as there was likely merit to accusations that there were some minor infractions of electoral law. Yet the fact that those infractions were sought out, he said, when any other political party’s application could likely be rejected on the same bases, shows that there was a concerted attempt to ban the party.

With parties like PARNAS that have so little clout in Russia, the question is commonly raised: why, if the party is unlikely even to make it into the Parliament, is it important to ban them from elections and risk bad press for clamping down on the opposition? The party’s banning, which will likely have no effect on the election outcomes, has already attracted international attention, with U.S. Secretary of State Hillary Clinton saying: “It is hard to understand how this decision today by the Ministry of Justice is consistent with Russia’s international commitments and recent statements by Russia’s own leaders.” 

Speculation has arisen that the group’s entrance into the elections was blocked because of its similar platform, liberal and pro-business, to the pro-Kremlin Just Cause party. The party’s new leader, oligarch Mikhail Prokhorov, has promised to capture second place in the upcoming parliamentary elections, catapulting it ahead of the oppositionist Communist Party but leaving it behind United Russia. Despite the relatively weak role that the Parliament plays in Russia in contrast to the executive, considerable political capital has already been expended on attempts to eliminate competition for pro-Kremlin parties in the upcoming parliamentary elections, as in the recent ouster of Just Russia Head Sergei Mironov from the Federation Council.

Yet it remains unclear whether those in power have targeted the group for such a narrow political agenda, or whether they are simply putting pressure on the country’s fringe opposition as a time-tested strategy. Salin argued that the need to restrict the group’s access to elections has more to do with limiting the party’s access to sponsors and its clout with journalists, rather than its potential to sabotage Prokhorov’s Just Cause in the upcoming elections. “If they aren’t coming from that platform [of a party], then what more are they than just former politicians? How are they any different from any other citizen? But if their party is legalized, it justifies their status and gives them greater access to sponsors and journalists.”

Yashin, too, said that any idea of competition between PARNAS and Just Cause for the same votes in the election is far-fetched, as the basic divide on the political spectrum in

Russia is pro or anti-Kremlin, rather than political platforms. “I don’t see any space for competition with Just Cause – we’ve been banned from the elections and I’ve never seen them come out on the streets [to protest]. Just Cause is a pro-Putin party. We’re an anti-Putin party. That’s the difference.”

Medvedev is ready to start the budget addresshttp://rt.com/politics/press/izvestiya/medvedev-address-president-management/en/print/

Published: 24 June, 2011, 04:08Edited: 24 June, 2011, 04:11

The president has announced that his speech before Parliament would sound “great” – if delivered in the rap musical style By Syuzanna Farizova

The management of RIA Novosti decided to surprise the president with new technologies. First, Medvedev was asked to take part in a short editorial briefing in which participants discussed the messages worthy to appear in the agency’s newsreel. It turns out that, so far, all attention remains focused on the airplane crash in Karelia.  

Then, the president was shown the latest multimedia complex, where the RIA press center and editorial staff have been situated. The newsroom has capacity for 400 people. The assembled journalists did not miss the opportunity to boast about the advances in the field of photography. Knowing that the president is an avid amateur photographer, they told him about 3-D photography. And staff members who promote the agency on social networking sites cited examples of links to RIA on Facebook, Twitter and Live Journal. The agency itself often uses these sites to obtain eyewitness reports.       

Medvedev was impressed by the multimedia capabilities. However, he was even more interested in RIA’s new project: Rap Info. Within the framework of the project, musicians “recite” news in the rap musical style. Some recent stories include a report about a “flasher” on producer Nikita Mikhalkov’s car and the trial of former Yukos head Mikhail Khodorkovsky. And while the president laughed out loud to the rap about Mikhalkov, the “recital” about Khodorkovsky (in which authors included Medvedev’s words from the press conference in Skolkovo, during which he said that the ex-head of Yukos “is not a threat” to society) only brought a simple smile.    

“That’s a good idea,” noted Medvedev, after hearing the entire production. “We need to hold press conferences in the rap style. I’ll think about what can be recorded in this format.” 

“Perhaps the budget address?”, suggested one of the agency’s staff members, referring to the president’s scheduled address next week.

“Yes, that would be great!”, agreed Medvedev. “The most boring topic you could imagine.”

The president switched from one subculture to another. Medvedev announced that soon he will present his proposals for the management of copyrights on the internet. The last time he discussed the subject was with his colleagues at the G8 summit in Deauville. They did not understand him, the Russian leader admitted.  

“By far not all of my colleagues – leaders of various states – are ready to have a serious discussion about the management of copyrights and the question of intellectual property,” acknowledged Medvedev. “Many say: ‘Let’s keep everything that has been done to this point as is, and not touch any of it.’ And that is a way to a dead end!”

Medvedev said he does not understand his foreign colleagues’ desire to stop the development of the internet. That is why he is prepared to personally take part in the development of relevant legislation.  

“Considering the fact that I follow this, I think that this would be quite interesting for me. Perhaps I will tackle this,” said Medvedev.

Tbilisi Creating Black List for Soviet Political Elite, KGB Collaboratorshttp://georgiandaily.com/index.php?option=com_content&task=view&id=21608&Itemid=133

June 24, 2011

By Giorgi Lomsadze

Georgia has become the first post-Soviet country outside of the Baltics to ban former KGB operatives and senior Communist Party and Komsomol officials from holding public office. While many Georgians welcome the move, some critics worry that the measure could easily lead to civil rights abuses.

Under the so-called Freedom Charter, approved by parliament on May 31, ex-officials and operatives will have six months to report themselves to a committee within the Georgian Ministry of Internal Affairs. The law differs from many of its European equivalents, however, by also targeting current collaborators of foreign intelligence services – largely interpreted as meaning Russia’s military intelligence and foreign intelligence agencies.

Georgia’s political establishment makes little distinction between the former Soviet Union and today’s Russia; even less so after Tbilisi’s 2008 war with Russia [6]. Some observers believe that the charter targets the past as a way to contend with the security challenges of the present.

There seems to be plenty of ambiguity built into the legislation. One representative from each of parliament’s four factions (plus, any faction formed by its 10 independent deputies), along with an unspecified number of Interior Ministry officials, will sit on the committee that determines the fate of former apparatchiks. The number of votes needed to put a person on the ministry’s black list has not been finalized. Civil society representatives and constitutional law specialists will have no role in the process. Nor will the public at large be allowed to look at individuals’ KGB files, now stored in the Ministry of Internal Affairs’ archives.

No precise timeframe has been specified for the purge of Georgia’s political and government ranks, also called “lustration.” Conceivably, the committee would be most active during an election campaign season. Under the law, the Central Election Commission will submit all candidate applications to the committee for review; those found to have had undesirable past connections will be blocked from running for office.

Evidentiary standards also have not been established for proving active collaboration with the KGB, or for determining participation in Communist Party or Komsomol (Communist Youth) policymaking. Soon after the Soviet Union imploded in 1991, fire destroyed a large part of Tbilisi’s KGB archives. Another part was evacuated to Russia. The ability of the 100,000 or so documents still in the Interior Ministry’s hands to shed sufficient light on the past activities of Georgians may prove limited.

Some critics contend that the program will create more problems than it will solve. “It is a huge hodgepodge of laws that pull in various directions,” said historian Lasha Bakradze, director of Tbilisi’s Literature Museum. Portions of the law essentially have been copied from similar Eastern European and German documents, he noted. The Freedom Charter, for instance, also bans the public display of Nazi symbols, which, apart from the rare piece of street graffiti, do not exist in Georgia.

Some analysts fear that the Freedom Charter could be manipulated for political purposes. Parties that enjoy representation in parliament, including the governing United National Movement, could, for example, use it to suppress parties that do not have seats in the legislature, and which, therefore, do not have representatives on the commission.

“It is very good that all parliamentary factions will be in this commission, but the law does not specify what would be the decision-making mechanism, and whose voices will carry more weight -- those of the parliamentarians or the Interior Ministry officials,” said Eka Gigauri, executive director of the Georgia office of anti-corruption watchdog Transparency International.

Those individuals banned from public office would be able to appeal their cases in court, but Georgian courts do not have a strong track record [7] of ruling against the government.

In its review of the Freedom Charter, the Georgian Young Lawyers Association, which supports the lustration provisions, charged that the judiciary system effectively has been shut out of the process. Court cases may be filed only after an individual has been banned from public office. It also questioned why the charter targeted current espionage for foreign states, an activity already addressed by Georgia’s criminal code and constitution.

“[The] Freedom Charter attempts to place itself above the limits of the criminal code and the Constitution, and restrict[s] beyond these limits the rights of Georgian citizens to take any public office,” GYLA wrote.

Other civil rights could also be at risk. Under the law, extra-judiciary powers have been granted to police to monitor the financial remittances made to and by individuals under review. The charter also empowers police to keep a video eye on “strategic facilities” without a court order. The definitions of such facilities are unclear -- bakeries are listed as such; water supplies and roads, however, are not.

The law’s sponsor, opposition MP Gia Tortladze, could not be reached for comment. Representatives of the governing United National Movement, which voted in favor of the Freedom Charter, deferred all questions to Tortladze.

Not only does the charter seek to purge anyone with a tainted Soviet past, in a continuation of the campaign that toppled Gori’s Stalin statue [8] last year, all Soviet-era symbols are slotted for removal. The prospect does not sit well with some architects and historical preservation activists. Hammers and sickles are woven into Tbilisi bridge railings; a red star still sits atop the city’s Soviet-era Academy of Sciences. Parliament may have lost its worker and peasant statues long ago, but the official emblem of Soviet Georgia, now nearly faded into oblivion, still adorns its pediment.

Some government sources maintain that they do not envision any large-scale demolition campaign -- only a select few buildings would be targeted, they claim -- but here, too, the law faces criticism that Georgian society itself has been shut out of the process.

“I am all for unveiling the Soviet past and the workings of the Soviet system, but this should be public knowledge, not something available to small groups of politicians,” historian Bakradze said. “Any attempt at monopolization of knowledge is fraught with risks of abusing this knowledge.”

Editor's note: Giorgi Lomsadze is a freelance reporter based in Tbilisi.

URL: http://www.eurasianet.org/node/63718

2010 © Eurasianet

National Economic Trends

Russia may introduce export duties on grainhttp://www.bne.eu/dispatch_text15984

Alfa BankJune 24, 2011

Deputy Prime Minister Viktor Zubkov has said the government is considering introducing grain export duties in the event that wheat prices rise above a particular benchmark, in this case RUB6,500/t.

Given good harvest expectations, domestic price growth has slowed. Local wheat prices are currently around RUB5,800/t.

We expect Russian grain price dynamics will depend on harvest data and international grain prices, which have been declining in recent weeks but remain higher than domestic prices.

Alexandra Melnikova

The Russian Paradoxhttp://russiaprofile.org/culture_living/39397.html

Runaway Inflation Widens the Gap Between Russia’s Rich and Poor

By Tai Adelaja Russia Profile 06/23/2011

Russia’s economy is showing signs of strength, but most Russians who have been earning more are getting poorer. Average monthly nominal wages in the country rose 12.5 percent to 22,520 rubles ($803) year-on-year in May, but Russia's stubbornly high inflation eroded most of the gains in people's purchasing power, the Federal State Statistics Service (Rosstat) reported on Wednesday.

Personal disposable income went up 3.2 percent to 18,183 rubles ($648) in May, compared to the same period in 2010, even as average incomes fell 9.1 percent compared

to the previous month, the agency said in its latest report on the socio-economic situation in Russia. Despite a healthier increase in take-home pay, real disposable income (after taking inflation into account) actually fell 3.7 percent between January and May, Rosstat said.

While Russia still ranks world's number five in the number of its super-rich families, experts say public sector employees and pensioners continue to bear the brunt of the cost of living pressures. A recent opinion poll taken by the Bashkirov and Partners sociological group found that Russia's low-income consumers remained highly price-sensitive and are always seeking out the cheapest deals. Russian consumers are also reducing their consumption of more expensive food, such as dairy products and fish, and are opting instead for cheaper meal components, the survey revealed.

Around 40 percent of respondents said they have cut back on purchases on non-essential items like home appliances, and 35 percent said they have stopped buying new clothes. About 32 percent said they have cut back on groceries as a way to better absorb the shock of rising prices. According to the latest Rosstat figures, while the price of household appliances went up just 0.7 percent and of clothing – by 3.1 percent, food prices have been rising relentlessly.

The price of wheat – the main ingredient in bread, which is a staple food in Russia – was up four percent in May alone, according to Rosstat. The agency also recorded price increases in a number of food products and beverages including buckwheat, oatmeal, bagels, coffee, ice cream, beer and soft drinks. The consumer price index (CPI), which measures changes in the price level of consumer goods and services purchased by households, went up 6.6 percent from the beginning of the year to reach 9,200 rubles ($328) in May, or twice the government-mandated national minimum wage. Russia's highly-symbolic cost of consumer basket – the recommended minimum set of food products – rose 6.9 percent from the beginning of the year to 2,807 rubles ($100) in May.

In Moscow, where the average salary is twice the national average, the average salary shot up 12.4 percent in the first four months of this year to reach 39,700 rubles ($1,414), Marina Ogloblina, the head of the city Economic Policy Department, told journalists on Wednesday. But even resilient Muscovites are reeling from high prices, as inflation eats deep into their monthly take-home. Real inflation-adjusted disposable incomes for Muscovites were down by 12.2 percent between January and April, compared to the same period in 2010, Ogloblina said. Consumer prices inched up from 4.2 percent last year to 4.8 percent since January, as annualized headline inflation hit nine percent.

However, consumer spending in Russia started the year with significant momentum, suggesting that many Russians continue to spend no matter what. Retail trade turnover was up 5.2 percent between January and May, but most of the spending was on durable goods and basic food items, Rosstat reported. And it is not just that more and more Russians are finding it hard to change their grocery spending habits. Rosstat figures also indicate that Russia is falling in love with consumer credit all over again. Retail trade turnover between January and May rose 5.2 percent to 7.182 trillion rubles ($256 billion),

compared to the same period last year, Rosstat reported.

Economists are attributing the present upswing in consumption to a sharp and unexpected spike in consumer credit. Russians, long known as high-spending hedonists, are not ready to shed their old habits yet, they said. And as the banking system comes through the financial crisis and the economic downturn, the consumer lending boom, which came to an abrupt end in late 2008, is again gaining momentum. Russian consumers are borrowing and spending more while saving less – a development that can boost economic growth but also fuel inflation, the Central Bank said in May. Credit growth, the bank said, is a “new monetary risk to inflation.” 

Russia's annual inflation reached an 18-month high of 9.7 percent as of May 23, figures from the Central Bank show. Consumer prices will rise 9.05 percent in 2011, according to the median estimate of 16 economists surveyed by Bloomberg. "Inflation remains the nation's biggest scourge and it has continued to plague consumer confidence," said Svetlana Romanenko, the head of sociological research at Bashkirov and Partners. "People were telling us that their spending plans have crumbled as inflation shot up."

The rising inflation figures, expert say, also put Prime Minister Vladimir Putin government’s dilemma in stark terms. While the government remains under pressure to enforce fiscal discipline even as global crude prices go up, increased government spending before parliamentary elections at the end of the year and a presidential vote in early 2012 is expected to boost inflation. The cabinet easily approved about 420 billion rubles ($15 billion) of additional spending late April, most of which will be spent on social programs such as raising old-age pensions, baby bonuses and family incentive programs, as well as raising salaries for government employees by 6.5 percent in October. While some of the spending is expected to overhaul some of the country's most neglected sectors, experts say the prime minister is also aiming to win public support ahead of crucial national elections.

Business, Energy or Environmental regulations or discussions

Inter RAO, Magnitogorsk, Novatek May Move: Russia Stock Previewhttp://www.bloomberg.com/news/2011-06-23/inter-rao-magnitogorsk-novatek-may-move-russia-stock-preview.html

By Henry Meyer - Jun 23, 2011 10:01 PM GMT+0200

The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close in Moscow.

The 30-stock Micex Index (INDEXCF) declined 2 percent to 1,607.91, the sharpest drop since May 4.

OAO Inter RAO UES (IUES RX): The state-run power utility will hold its annual general meeting, it said on its website. The shares fell 3.7 percent to 0.036292 rubles.

OAO Magnitogorsk Iron & Steel (MAGN RX): Russian billionaire Victor Rashnikov’s steelmaker is scheduled to report its first-quarter financial results. Magnitogorsk fell 3.9 percent to 25.28 rubles.

OAO Novatek (NOTK RX): Russia’s second-largest gas producer agreed to pay 6.7 billion rubles ($237 million) for four licenses in the Yamal region. Shares declined 2.8 percent to 331.35 rubles.

To contact the reporter on this story: Henry Meyer in Moscow at hmeyer4@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

UPDATE 1-MMK Q1 net profit beats expectationshttp://af.reuters.com/article/energyOilNews/idAFLDE75M0D020110624

Fri Jun 24, 2011 6:47am GMT

* Q1 net profit $134 mln, Reuters poll forecast $113 mln

* Q1 EBITDA $403 mln, vs forecast $420 mln

* Q1 revenue $2.22 bln, vs forecast $2.30 bln

(Adds detail)

MOSCOW, June 24 (Reuters) - Magnitogorsk Iron & Steel Works , Russia's third-largest steelmaker, beat market expectations as first-quarter net profit rose 42.5 percent, thanks to higher output and prices.

Net profit for the period was $134 million, compared with the $113 million forecast in a Reuters poll.

MMK said on Friday it expected steel product output to increase 10-15 percent this year. "MMK's production growth will primarily come from the ramp-up of operations in Turkey and increased capacity utilization in Russia."

Steelmakers in Russia, the world's fourth largest producer, have recovered from the crisis to post strong profits thanks to their position as leading low cost producers.

Rivals Severstal and Novolipetsk Steel have already posted sharply higher first-quarter results.

MMK also said earnings before interest, taxation, depreciation and amortisation (EBITDA) reached $403 million, up from $374 million and compared with a $420 million forecast.

Revenue rose to $2.22 billion, up from $1.65 billion. (Reporting by Alfred Kueppers; Editing by Jessica Bachman and Editing by Dan Lalor)

Rusal to borrow $4.75bn

http://www.rbcnews.com/free/20110624104032.shtml

      RBC, 24.06.2011, Moscow 10:40:32.The shareholders of United Company Rusal have approved taking out a loan worth up to $4.75bn to refinance the company's debt at their annual general meeting in Hong Kong today, the aluminum giant said in a statement.

      The funds will be tapped from a consortium of international banks and used to fully repay the company's debt to international banks under a restructuring agreement dated December 7, 2009 as well as a shareholder debt payable to Onexim Group.

      The 60-month loan is repayable in equal quarterly installments starting from the 15th month. The interest rate for the loan is a 3-month Libor plus a margin subject to quarterly revision.

      "The refinancing as part of the debt restructuring agreement with international lenders enables the company to remove current restrictions including those on operating and investments activities and expedite dividend payouts. We remain committed to reducing the cost of debt servicing and improving equity structure," Rusal Financial Markets Director Oleg Mukhameshin said.

Rusal restructures debthttp://www.bne.eu/dispatch_text15984

AtonJune 24, 2011

Rusal announced today (24 June) that its board of directors has approved the main terms of a new five-year pre-export finance facility of up to $4.75bn from a syndicate of

international lenders. The money will be earmarked to refinance debts to international banks and Onexim; some loans from Russian lenders will be refinanced, as well.

The annual interest rate will depend on Rusal's net debt/EBITDA ratio, scaling down from LIBOR+2.85% (for ratios above 4x) to LIBOR+1.75% (for ratios of 2.5x and below). The facility is still subject to credit approval by the lending banks. Provided all goes as planned, this could become a major positive for Rusal in our view, as it would reduce its funding costs and remove current restrictions on its operational and investment activities. It could also accelerate Rusal's dividend pay-outs - we note that it is expected to announce a new dividend policy in 3Q11.

CORRECTED-Russia's Global Ports to offer $534 mln for London IPOhttp://in.reuters.com/article/2011/06/24/russia-globalports-idINWLB655720110624

11:52am IST

(Corrects headline and first paragraph to say million not billion)

MOSCOW, June 24 (Reuters) - Russian port operator Global Ports said on Friday that the total offer size for its initial public offering in London is $534 million with $15 per global depository receipt.

"The total offering size is $534 million and may increase up to $588 million if the over-allotment option is fully exercised," it said in a statement, adding that the offer price implies a market capitalisation of $2.35 billion. (Reporting by Jessica Bachman; editing by Aleksandras Budrys)

Russian social network VKontakte considers U.S IPO-reporthttp://in.reuters.com/article/2011/06/23/vkontakte-ipo-idINL3E7HN3D420110623

5:12am IST

June 23 (Reuters) - VKontakte, the largest Russian social networking website, is in early discussions with investment banks about a potential initial public offering, Bloomberg reported, citing people with knowledge of the talks.

The company has discussed selling shares in New York as early as next year, the report said, adding that no final decision has been made on whether to press ahead with an offering or on a valuation.

VKontakte's current shareholders include Russian Internet company Mail.ru Group Ltd (MAILRq.L: Quote, Profile, Research), which also owns a stake in Facebook, according to the report.

Spokespersons for VKontakte and Mail.ru couldn't immediately be reached for comment. (Reporting by Tenzin Dekeva in Bangalore; editing by Carol Bishopric)

Blackstone Considers Opening Office in Moscow, Kommersant Sayshttp://www.bloomberg.com/news/2011-06-24/blackstone-considers-opening-office-in-moscow-kommersant-says.html

By Marina Sysoyeva - Jun 24, 2011 6:13 AM GMT+0200

Blackstone Group LP (BX) may open an office in Moscow and is considering appointing its Russia adviser, Dmitry Kushaev, to head it, Kommersant said, citing an unidentified investment banking official.

Kushaev is a former Managing Director of Russia’s Troika Dialog investment company, Kommersant said.

To contact the reporter on this story: Marina Sysoyeva in Moscow msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Alfa May Buy 45% of Ukraine’s Astelit, Kommersant Reportshttp://www.bloomberg.com/news/2011-06-24/alfa-may-buy-45-of-ukraine-s-astelit-kommersant-reports.html

By Marina Sysoyeva - Jun 24, 2011 6:08 AM GMT+0200

Alfa Group may buy 45 percent of Astelit, Ukraine’s third largest mobile phone operator from billionaire Rinat Akhmetov, Kommersant said, citing three people familiar with the talks.

To contact the reporter on this story: Marina Sysoyeva in Moscow msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Binbank’s Shishkhanov to Buy 49% in Hotel Moskva, Vedomosti Sayshttp://www.bloomberg.com/news/2011-06-24/binbank-s-shishkhanov-to-buy-49-in-hotel-moskva-vedomosti-says.html

By Marina Sysoyeva - Jun 24, 2011 6:00 AM GMT+0200

Binbank’s President Mikhail Shishkhanov may buy 49 percent in the Hotel Moskva with more than $150 million of own funds, Vedomosti reported today, three people familiar with the matter.

Other partners in the hotel, which faces Moscow’s Red Square, are billionaire Suleiman Kerimov and businessman Arkady Rotenberg, Vedomosti said.

To contact the reporter on this story: Marina Sysoyeva in Moscow msysoyeva@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

10:58 24/06/2011ALL NEWS

Japan’s Mazda Motor Corp to launch production in Russian Far East.

http://www.itar-tass.com/en/c154/172403.html

24/6 Tass 63

TOKYO, June 24 (Itar-Tass) —— Japan’s Mazda Motor Corp. plans to launch production of its cars in Russia’s Far East from 2012, local media reported on Friday citing an agreement to the effect with the Russian ministry of economic development.

The agreement reportedly provides from the assembly of Mazda Atenza cars from components delivered from Japan. Although, some 30 percent of car components will be manufactured inside Russia, as was requested by the Russian authorities. Mazda’s initial investments into the project are expected to stand at 80 million U.S. dollars. The would-be plant in the Russian Far East will manufacture from 25,000 to 50,000 Atenza cars a year, and may make other car models in future.

Mazda Motor Corp., following the lead of other Japanese-based car manufacturers, is eyeing expansion of its production facilities in the countries of the BRICS group (Brazil, Russia, India, China, and South Africa). Thus, it plans to sell up to two million cars a year in Brazil, Russia and India by 2015, or up by 30 percent on the current figure.

Russia: the Big Mac of fast foodhttp://blogs.ft.com/beyond-brics/2011/06/24/russia-the-big-mac-of-fast-food/

June 24, 2011 7:48 am by Courtney Weaver

By Courtney Weaver and Barney Jopson

When McDonald’s opened its first Russian restaurant in Moscow’s Pushkin Square in 1990, you would have thought they were giving out the hamburgers for free. Despite frigid  February temperatures, Muscovites happily waited in line 10 hours to get a taste of their first Big Mac.

Now, 20 years, later a new crop of fast food chains are trying to replicate McDonald’s longterm success in Russia. (Its Pushkin location regularly ranks as the busiest McDonald’s in the world.) So will companies such as Wendy’s/Arby’s and Burger King be able to enjoy equal success?

Wendy’s/Arby’s franchiser said on Thursday that it would now open 192 restaurants in Russia over the next 10 years, or 12 more than originally planned.

On Thursday the company’s opened its new flagship location on Moscow’s Old Arbat street, home to other American exports such as Starbucks and Hard Rock Cafe. Andy Skehan, Wendy’s/Arby’s senior vice president, told reporters that despite its late arrival, the company was planning to focus its attention on Russia as a key market going forward.

“I consider Russia probably the best and most important market for us to enter. It’s a vibrant country with a growing economy and…people who like to eat meat,” he said, Reuters reported.

Russia will be the first Bric country for Wendy’s/Arby’s to enter, but openings in Brazil and China could be close behind, Skehan said.

The company’s rational for entering Russia is easy to see. According to Skehan, within five years, the company should be ringing in sales of $1.5m to $1.6m a year at each Russian restaurant, compared with just $1.2m at its average location in the US.

The boss of a different US fast food chain agrees. “Russia is a bit of a hidden gem when it comes to fast food,” he tells beyondbrics. Not only do Russian tend to have higher incomes than other emerging market consumers, but US fast food chains face few domestic competitors. There is “a complete lack of competition,” the CEO says.

Russia has only a few homegrown brands, most of which operate in kiosks, not storefronts. In Moscow, for instance, foreign brands have just three real competitors: Teremok, a blini pancake station; Kroshka Kartoshka (Baby Potato), a potato bar; and Stardog, a hot dog stand that specialises in frankfurters covered in bacon, or wrapped in a mashed potato-filled burrito.

In comparison China has myriad mom and pop shops catering to consumers’ every need, the US CEO says.

He and other chief executives acknowledge that Russia can be a difficult market to crack. McDonalds, for instance, spent 14 years trying to open its first store. And operating costs also tend to be higher. Yet the CEO says these and other concerns are offset by the strength of Russian demand for fast food.

“Because the top line is so good, that covers a lot of evils,” he says.

Activity in the Oil and Gas sector (including regulatory)

Gov't keeps gasoline export duty high

http://www.rbcnews.com/free/20110624104511.shtml

      RBC, 24.06.2011, Moscow 10:45:11.The government has approved the duty on gasoline exports at $400.50 per ton effective July 1, according to a resolution published in the government's newspaper Rossiiskaya Gazeta today. The duty has stood at $415.80 in June.

      The duty on crude oil exports will fall from $462.10 per ton to $445.10 in July. The reduced rate will go down from $217.50 to $205.80.

Russia extends gasoline export duty increasehttp://en.rian.ru/russia/20110624/164814119.html

11:21 24/06/2011

MOSCOW, June 24 (RIA Novosti)

The Russian government has decided to extend the gasoline export duty increase introduced in sping to protect the domestic fuel market and overcome gasoline shortages, a government resolution published in the newspaper Rossiiskaya Gazeta said on Friday.

The government boosted the gasoline export tariff to a nearly prohibitive 44 percent from May 1 to fight local shortages which started in April in some regions.  Russian oil companies prefer to sell gasoline abroad where prices are higher than in Russia, where the state has capped prices.

The  Federal Antimonopoly Service, the government's competition watchdog, has accused large oil firms of operating a cartel.

The government believes that the introduction of an exchange trade in oil products will help regulate the market and has ordered companies to sell 15 percent of their products via exchanges.

Gasoline price rises were reported across the country at between 2 and 20 percent several weeks ago. A large number independent filling stations not belonging to major oil companies ceased trading because of a lack of fuel in the Altai region in southern Siberia.

The deficit later spread further, to the Siberian cities of Tomsk, Irkutsk and Novosibirsk, where filling stations are either closed or sell limited amounts of gasoline. Shortages were also felt in Murmansk in the northwest of Russia.

Russian Oil - MinEnergo proposing to tweak product excise taxes further

http://www.bne.eu/dispatch_text15984

CitiJune 23, 2011

According to Interfax, MinFin is preparing to tweak its planned increases in refined product excise taxes for 2012 and 2013. In general, excise taxes on lower-quality fuels will be raised substantially, while taxes on Euro-4 and Euro-5 quality products will be dropped modestly.

For example, gasoline of Euro-2 and lower quality will see rise 62% next year to RUB9,725/ton ($350) rather than the 29% increase to RUB9,725/ton previously planned, while Euro-4/5 gasoline excise taxes will rise only 22% to RUB6,300 rather than 33% to RUB6,822/ton. Percentage increases in 2013 will be around 29% y-o-y (depending upon quality) rather than the previously planned c.25%, but off a larger base, and preserving the incentive to upgrade refineries. Even if all refined products sold in Russia were to be Euro-4 or better in 2013, excise taxes would still be twice as high as they were in 2010, so in addition to encouraging refinery upgrades, the higher excise taxes will also serve to

raise more government revenues, maybe in the range of an extra $4-5bn annually.

With time, the net impact on oil company revenues should be modest, as we expect them to be able to pass the majority of these taxes to be passed on to final consumers (the excise increase on Euro-3 gasoline would require an approximate 7% increase in Moscow pump prices). In the near term, however, we think the companies may have to absorb some part of them. Companies that are upgrading aggressively (LUKoil, Rosneft, and TNK-BP) will gain an advantage of any refiners upgrading more slowly. We expect a neutral stock price impact from this news on the major refiners.

Russian Oil - 60/66 could happen in Q3http://www.bne.eu/dispatch_text15984

CitiJune 23, 2011

Russia's Ministry of Energy is hoping to approve the 60/66 tax reform on 1 July, with implementation to begin in 3Q2011, according to Interfax. This is an acceleration from the last target we had seen of 1 January 2012.

Our take: This is modestly positive news, as the program will improve the investment incentives in the upstream by transferring some of its tax burden to the refining business. However, the overall package is specifically designed to be revenue neutral for the government. Companies such as LUKoil and Rosneft, which have refining cover of around 50% of domestic production - in line with the country average - will see no material change to profitability, but will see a modest improvement in the economics of marginal fields. As we have assumed this would happen from next January, neither our recommendations nor our target prices are affected.

Russia's Surgut to raise capex by 15 pct in 2011-Ifaxhttp://www.reuters.com/article/2011/06/24/russia-surgutneftegas-idUSLDE75N02J20110624

1:38am EDT

MOSCOW, June 24 (Reuters) - Russia's No. 4 oil producer, Sugutneftegas (SNGS.MM: Quote, Profile, Research, Stock Buzz) will raise capex on production by 15 percent in 2011, Interfax reported on Friday citing the company's General Director Vladimir Bogdanov.

The company said last month that its first-quarter net profit almost doubled to 15.3 billion roubles ($540.6 million) from the first quarter in 2010 when its profit stood at 8.4 billion roubles.

(Reporting by Jessica Bachman; editing by Alfred Kueppers )

Norway and Russia cross the linehttp://www.upstreamonline.com/live/article263433.ece

Norway and Russia have signed an intentional pact for dialogue on joint management of oil and gas resources in their recently delineated area of the Barents Sea.

Steve Marshall and News reports  23 June 2011 14:39 GMT

The new memorandum of understanding paves the way for co-operation between the two countries on future field developments in the Arctic frontier region following final ratification of their maritime border treaty earlier this month.

They also agreed that the award of licences to develop offshore deposits in the Barents Sea and Arctic Ocean could begin as early as 2013-2014, according to a statement on the website of Russia’s Natural Resources Ministry, cited by the Barents Observer.

Norwegian Oil & Energy Minister Ola Borten Moe said after signing the MoU yesterday with his Russian counterpart Jurij Trutnev that such a co-operation was important to ensure “sustainable development” in the north that is in line with strict environmental and safety standards.

Moe said the delimitation treaty has raised his optimism for future prospects in the formerly disputed region in the southern Barents.

“The right conditions are now in place for us to establish a co-operation at all levels, not least between Norwegian and Russian companies,” he said.

“Looking ahead, I can envisage joint projects on both the Norwegian and Russian sides between oil companies and the supplier industry. Petroleum activity here can play a significant role in local and regional employment,” he added.

Both countries have great expectations for the hydrocarbon potential in the maritime border area, where Norway intends to start shooting seismic shortly as part of an impact assessment study before opening up for exploration licensing.

Meanwhile, Russian oil company Zarubezhneft reportedly is looking to develop the massive Fedinsky High structure, which is thought to hold massive hydrocarbon deposits.

A number of prospective structures in the region straddle the new median line and will therefore require joint development by the two countries.

Published: 23 June 2011 14:39 GMT  | Last updated: 23 June 2011 14:43 GMT

24.06.2011

First Licenses In Barents Sea May Be Issued 2013-2014http://www.oilandgaseurasia.com/news/p/0/news/11752

Norway and Russia have agreed that issue of licenses for shelf developments in the recently delineated area in the Barents Sea can begin in 2013-2014. Norway’s Minister of Petroleum and Energy Ola Borten Moe and Russia’s Minister of Natural Resources and Ecology Yury Trutnev met in Moscow to discuss how the delineation agreement of September 15 2010 can be put into practice.

Both sides expressed great expectations to the potential that the delineated area represents and emphasized the opportunities for the oil and gas industry in the northern regions.

"I am optimistic about the perspectives for the northern regions after we reached an agreement on the delineation of the Barents Sea", Ola Borten Moe said after the meeting, the ministry’s web site reads. "Everything is set for cooperation on all levels, also between Norwegian and Russian companies".

The two ministers signed a Memorandum of Understanding stating that the countries will continue the dialogue on management of oil and gas resources, ecology and investments.

The two countries, represented by Deputy Minister of Natural Resources and Ecology Sergey Donskoy and Statoil’s Senior Vice President Pål Haremo, agreed that licenses to develop offshore deposits in the Barents Sea and the Arctic Ocean can be issued from 2013-2014, the Russian ministry’s web site reads.

Norway and Russia plan to set up consortiums to develop promising offshore deposits taking into account the harsh environmental conditions of the North, lack of infrastructure and technological problems.

Copyright 2011, Barents Observer. All rights reserved.

24.06.2011

Novatek Builds Giant Arctic LNG Tankerhttp://www.oilandgaseurasia.com/news/p/0/news/11751

Russian gas producer Novatek plans to build a new type of LNG tanker, designed for big-scale year-round shipping in the Arctic.

A big number of technology experts and scientists have been included in the process of

designing the LNG tanker adjusted to harsh Arctic shipping, Novatek CEO Leonid Mikhelson told journalists.

"This kind of tanker does not yet exist", he said, Oilru.com reports. –Our task is to construct the tanker hulls in a way which secures economically beneficial use, with a deadweight of maximum size and at the same an acceptable speed capacity, he said.

The tanker will be specially designed for Novatek’s Yamal LNG project, the project which is based on the resources from the South Tambey field. As BarentsObserver previously reported, Novatek recently granted Total a 20 percent stake in the project. However, more foreign companies are likely to follow. Mikhelson confirms that talks are held with companies from both India and Qatar, as well as several other countries, and that the new partners will be announced in the course of the year. Novatek has previously confirmed that up to 49 percent of the project shares might be sold to foreign partners.

It is expected that parts of the LNG produced in the Yamal project will be exported along the Northern Sea Route.

According to Mikhelson, the Yamal LNG project is estimated to cost between 15-20 billion USD. This estimate does not include the construction of the LNG tankers.

Copyright 2011, Barents Observer. All rights reserved.

23.06.2011

Novatek Undecided on El Arish Explorationhttp://www.oilandgaseurasia.com/news/p/0/news/11749

Russian gas producer OAO Novatek’s CFO Mark Gyetvay told reporters in London that the company is contemplating its next move in Egypt. Gyetvay said that Novatek will decide if further exploration is in order on its El Arish oil development in September after writing off some wells; the company did not elaborate on how many wells were written off.

Novatek entered the El Arish concession in September 2007 when it purchased a 50% stake from Tharwa Petroleum.

Copyright 2011, Petroleum Africa. All rights reserved.

Russia's Novatek to get 4 gas licencies on Yamal-Ifaxhttp://af.reuters.com/article/energyOilNews/idAFLDE75M0N420110623

Thu Jun 23, 2011 9:43am GMT

MOSCOW, June 23 (Reuters) - Russia's subsoil agency has asked the government to grant four gas licences on Yamal peninsula to Novatek (NOTK.MM), the watchdog's head told Interfax news agency on Thursday.

"The commission had examined its (Novatek) application...it fully complies with the tender conditions," Anatoly Ledovskikh said.

Novatek, Russia's largest independend gas producer, declined to comment on report.

(Reporting by Katya Golubkova; Editing by Alfred Kueppers)

Rosneft to present plan for Yurubcheno-Tokhomskoye in Q4http://www.bne.eu/dispatch_text15984

CitiJune 23, 2011

According to Interfax, Rosneft will present the development plan for the giant Yurubcheno-Tokhomskoye (YT) field in East Siberia in 4Q2011. Approval, if granted, would presumably lead to a confirmation of the tax breaks needed to make field development profitable. Production is expected to peak at 200kbd, with first production now expected in 2014. Rosneft plans to drill 4 exploration wells in 2012, but we expect more intense development to be postponed until the tax breaks are ensured.

Our take: Rosneft's superior growth profile is held up by its access to large, new projects which will effectively earn regulated returns. We fully expect the needed tax breaks for the YT field to be granted in the medium term. Should that be granted inside the next 12 months, we would expect it to act as a catalyst for the stock. We reiterate our $11.3/share target price for Rosneft's stock and our Buy (1M) rating.

Bulgarian Deputy Minister Pulls Out of Lukoil Boardhttp://www.novinite.com/view_news.php?id=129583

Energy | June 23, 2011, Thursday

The Bulgarian Deputy Transport Minister, Kamen Kichev, has decided to no longer represent the State in the Lukoil Neftohim Burgas company.

The information was reported Thursday by the Bulgarian daily Dnevnik.

Kichev is calling it quits only a year after taking the post. The Transport Ministry is quoted saying that the reason is his many other duties and large workload.

The nominee to replace him is Rositsa Kosacheva, who is a senior dealer at the Corporate Clients Department at the ING Bank. She has declined comments for Dnevnik, saying "nothing is certain yet.

The nomination belongs to the Bulgarian Ministry of Economy, Energy and Tourism, which owns shares in Lukoil Neftohim (Refinery).

If selected for the post, Kosacheva, who has graduated from the University of National and World Economy in Sofia, must leave her job with ING.

Dnevnik writes that an addition to this job, Kosacheva owns a business for spiritual seminars – "Insight Seminars."

Shale Could Help Ukraine Meet Energy Needs By 2020 - TNK- BP http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201106231334dowjonesdjonline000516&title=shale-could-help-ukraine-meet-energy-needs-by-2020-tnk-bp

LONDON -(Dow Jones)- Ukraine's potentially vast supplies of unconventional natural gas could close the strategically located country's energy supply gap by 2020, though this will only be achieved if authorities speed up and rationalize the regulatory process to allow development and production work to begin, the chief executive of TNK-BP Ltd.'s (TNBP.RS) Ukraine division said Thursday.

"It is possible to close the gap between production today and supply in the future by 2020, 2023. But we need to follow through on going in and drilling the wells, going into production," said Didier Casimiro, adding that "time is of the essence" if the goal is to be achieved.

Ukraine's eastern Donetsk region may hold considerable shale deposits, an unconventional source of natural gas produced by a method known as hydraulic fracturing.

TNK-BP, a joint venture between U.K. supermajor BP PLC (BP, BP.LN) and a group of Russian billionaire investors, has said it is targeting licenses in the country and that it may spend $50 million on exploration in Ukraine over the next few years.

However, Casimiro said Thursday that the company was still waiting for issues around the licensing process to be resolved.

"As soon as there could be an auction licenses, we will certainly participate, " he said.

"We used to have a time frame, but that time frame has moved a number of times," Casimiro said, adding that the company had hoped to drill its first well this year.

Shale has shaken up the U.S. gas market in the past two years and caught the interest of major players on the European market. U.S. giant Exxon Mobil Corp. (XOM) signed a memorandum of understanding with Ukraine's state-owned firm, Naftogaz, to explore for shale deposits in February, while Royal Dutch Shell PLC (RDSA, RDSB, RDSA.LN, RDSB.LN) and Chevron Corp. (CVX) have also expressed their interest in the region's gas potential.

-By Alexis Flynn, Dow Jones Newswires, +44 207 8429471, alexis.flynn@ dowjones.com

(END) Dow Jones Newswires 06-23-111334ET Copyright (c) 2011 Dow Jones & Company, Inc.

A Russia-China gas deal? Don't hold your breath http://www.bne.eu/storyf2749/A_RussiaChina_gas_deal_Dont_hold_your_breath

bneChart June 24, 2011

While Russian and Chinese officials spent early June insisting that they'd finally manage to thrash out a gas deal in time for the summit between Hu Jintao and Dmitry Medvedev, few expected the pair to manage to agree a price, as bne reported here.

In fact, the two sides have been trying to agree on a price since 2005, while general talks on starting gas trading have been ongoing for over a decade. Since the latest failure, Russian officials have been busy telling anyone that will listen that they're not worried and a deal will be sealed by the end of the year. However, the chart below showing the International Energy Agency's forecast for China's gas needs through to 2020 suggests any agreement could still be years away.

While bne predicted that the latest attempt to come to a consensus would fail because Gazprom's confidence has been boosted by the effects of Japan and the Arab Spring on the global gas markets, this chart illustrates that China's gas import needs over the next decade should fall far below the 68bn cubic metres a year (cm/y) supply terms under discussion. "Even by 2020, the incremental import requirement is less than the proposed 30bn cm/y capacity of the Altai pipeline gas supply from Russia," points out Colin Smith

from VTB Capital. And this "demonstrates why we expect China to remain highly sensitive over the price it is willing to pay for Russian gas."

June 23, 2011, 11:21 a.m. EDT

Rosneft Vice President O'Brien steps downhttp://www.marketwatch.com/story/rosneft-vice-president-obrien-steps-down-2011-06-23

By Jacob Gronholt-Pedersen

(Adds O'Brien stepping down as contract ends)

MOSCOW (MarketWatch) -- Russian state oil champion OAO Rosneft said Thursday its Vice President Peter O'Brien, a former senior Morgan Stanley banker, who oversaw the company's record initial public offering in 2006, has stepped down ending a five year contract.

O'Brien joined Rosneft in 2006 as vice president responsible for strategy and was one of few foreigners to take a senior position in a Russian government-controlled company.

His arrival at Rosneft was a big step toward financial openness for the state-owned company. Two years earlier, Rosneft had seized the main asset of Russia's biggest private oil company Yukos--a takeover seen by foreign investors as undermining the foundations of Russia's market economy.

Later in 2006, O'Brien's international experience helped Rosneft launch a successful international IPO, raising a record $10.6 billion.

"Peter O'Brien's experience and authority in investment community played an important role in the development and success of Rosneft's IPO," the company said in a statement.

O'Brien helped Rosneft meet international standards for governance, treatment of shareholders and financial reporting under U.S. GAAP standards. He stepped down following the expiration of his five-year contract at the company.

Last year, Rosneft promoted Pavel Fedorov--a Russian citizen and also former Morgan Stanley investment banker--to first vice president responsible for finance and economics.

Final nail in the BP-Rosneft coffin?http://www.telegraph.co.uk/finance/comment/richardfletcher/8595702/Final-nail-in-the-BP-Rosneft-coffin.html

They're talking tough in Russia.

By Richard Fletcher, Daily Telegraph City Editor

5:50AM BST 24 Jun 2011

Back in May when BP's proposed joint venture with Rosneft collapsed (scuppered by the oil giant's existing Russian partners) the hope was that the deal would be revived in weeks – if not days.

"We still think there is a high probability that a deal is struck," predicted one analyst.

In private, at least, executives at BP and the company's advisers were just as bullish about the prospects of chief executive Bob Dudley rescuing a deal he hoped would put the business back on track following the Gulf of Mexico disaster.

Unfortunately no one seems to have told Igor Sechin, deputy prime minister and one of the original architects of the Rosneft/BP tie-up.

In an interview published in yesterday's Wall Street Journal the Russian power broker appeared to discount entirely the chances of reviving the BP deal.

The focus now is on striking an even better deal with one of BP's rivals.

Russia it seems has moved on. Even if BP has not.

Gazprom

Shtokman: Board of directors reaffirmed progress in preparation for final investment decisionhttp://www.russia-media.ru/mainmore.php?tpl=Shtokman+News&iditem=124

[24.06.11]

A regular meeting of the Board of Directors of Shtokman Development AG (SDAG) was held in Luzern (Switzerland) on June 23, 2011. The Board of Directors made note of the good progress in activities on offshore and onshore facilities in preparation for the final investment decision planned by the end of 2011.

According to the press release from Shtokman Development AG, the Board of Directors has confirmed the necessity to continue the dialogue with the Russian Federation state authorities at all levels so as to obtain a favorable economic environment for the Project, including taxation issues, and expressed support to the efforts made by shareholders and SDAG in this field. State support of the Project is one of the prerequisites for its successful implementation.“Today we can state that the Project preparation phase is at the final stage. The Shareholders appraised past year activity of SDAG, and are confident that the Company is capable of achieving its objectives remaining prior to the adoption of the final investment decision”, - underlined Alexei Miller, President of the SDAG Board of Directors, Chairman of the Management Committee of Gazprom.

The press release does not inform about concrete decisions. (Source: Press Release Shtokman Development AG)

Gazprom and Verbundnetz Gas commission ejector unit at Bernburg UGS facilityhttp://www.istockanalyst.com/business/news/5250314/gazprom-and-verbundnetz-gas-commission-ejector-unit-at-bernburg-ugs-facility

Thursday, June 23, 2011 10:47 AM(Source: Datamonitor)Gazprom, a Russia-based company engaged in oil production, refining activities, electric and heat energy generation, and Verbundnetz Gas , a supplier of natural gas, have commissioned ejector unit at Bernburg UGS facility.

Participating in the meeting were Vlada Rusakova, Member of the Gazprom Management Committee, Head of the Strategic Development Department and Uwe Barthel, Member of the Verbundnetz Gas Executive Board.

The ejector unit was created as part of sci-tech cooperation between the companies and designed for utilization together with the compressor equipment allowing to reduce the energy demand during gas injection into the UGS facility.

A service of YellowBrix, Inc.

Russian Gas - Wood Mackenzie: Gas oversupply dissipating as soon as 2012http://www.bne.eu/dispatch_text15984

CitiJune 23, 2011

Wood Mackenzie, the oil & gas consultant, published an opinion yesterday that the global LNG glut will disappate 2-3 years faster than it previously forecast, as soon as 2012. With Europe again competing with Asia for LNG, European spot gas prices could again rise above contract prices when that oversupply is extinguished.

This largely coincides with our analysis, which shows LNG oversupply disappearing in 2013-14, and which shows that there is already precious little flexible LNG available on the market. This, along with a shortage of LNG shipping capacity, has let to Asian spot prices of c$14/mcf, 40% higher than the $9.2/mcf seen recently in Europe. European winter gas futures are running around $11-12/mcf, indicating that the commodity market is also anticipating increasing tightness in the European gas market.

Our take: Data continues to mount that Gazprom's European export business is rapidly on its way back to robust health. Export volumes this year are set to return to pre-crisis levels. With gas supply tightening, export growth will soon reappear for Gazprom, we think, driven in part by the entry of the Nord Stream pipeline into operation in Q4, which will allow the company to take advantage of tighter LNG supply. We reiterate our $11/share target price and Buy (1M) rating on the stock.

Ron Smith

Gazprombank latest Russian bank to seek loan over $1bn http://www.euroweek.com/Article/2853654/Channel/2021/Gazprombank-latest-Russian-bank-to-seek-loan-over-1bn.html

Issue: 1210 - 24 June 2011

Russia’s Gazprombank has sent a request for proposals for a loan of over $1bn, according to bankers close to the borrower. ..