Russia 101111

Basic Political Developments Constructive relations with RF pay dividends to US - State Dpt - The creation of

more constructive relations with Russia has already begun to yield significant dividends to the United States and Europe, US Assistant Secretary of State for European and Eurasian Affairs Philip H. Gordon said in London on Thursday.

G-20 Summit in Seoul o Chinese, Russian presidents meet in Seoul on cooperationo Extending Kyoto Protocol won't help tackle global warming - Russian

G20 delegateo G20 Seoul summit to approve plan to help poor nations – sourceo Russia calls for risk management system based on IMF o Russia backs gradual removal of credit ratings from regulation instruments o Russia against U.S. current account limits proposal o RF concerned some states seeking weaker currency exchange rateo Russia to voice concern over unilateral economic decisions at G20 -

sourceo UPDATE 1-Russia frets global economy "unstable"-G20 sourceo Russia Asks G-20 to Cut Investment Barriers to Offset Hot Money o Economy and currency wars on G20 table - "Russia’s position is that we

need a more coordinated approach; we don’t want surprises from our partners,” says Russian presidential aide Arkady Dvorkovich. “We want a more intensive policy dialog between Central Banks, Finance Ministries. This can lead to a greater stability on the markets."

o G20 countries should promote small businesses - Medvedev o G20 should consider state purchase from small businesses – Medvedev

Medvedev to wind up visit to Seoul, to attend G20 Summit - During the final event of the official visit, the authorities of the South Korean city of Incheon (Chemulpo) will hand over the Varyag cruiser’ s flag to the Russian delegation.

o South Korea returns the Varyag`s flag to Russiao Varyag cruiser flag transfer symbol of RF-SKorea good relations - “The

transfer of the jack from the Varyag cruiser is of special symbolic importance for us, because it is the memory of the unprecedented feat of navy men of the Varyag cruiser, on the one hand, and on the other – it is a symbol of new very good relations that bind Russia and the Republic Korea,” said Medvedev.

o SKorea HHI to build electrical eqt plant near Vladivostok - The South Korean Hyundai Heavy Industries (HHI) Company will build a plant for the manufacture of electrical engineering equipment near Vladivostok.

APEC not to take new protectionist measures until the end of 2013 - The ministerial meeting of the leading Pacific Rim countries, including Russia, declared Thursday in favour of avoiding fresh protectionist measures to uphold their economies until the end of 2013, said a joint statement adopted by the

Foreign and Economics ministers of the Asia-Pacific Economic Cooperation (APEC) forum at the meeting that came to a close here earlier in the day.

Aust signs off on Russia nuclear deal - Prime Minister Julia Gillard and Russian President Dimitry Medvedev have signed off on an agreement to resume uranium sales to Russia.

o Australia Agrees To Supply Uranium To Russian Power Industry - "This brings Australia's bilateral nuclear relationship with Russia into line with the agreements we have in place with other countries, including the U.S., China, Japan and the Republic of Korea."

Cameron to visit Russia next year as sign of thaw -"I'm very pleased to take up the invitation of a visit to Russia next year," Cameron told reporters after a meeting with Russian President Dmitry Medvedev at the G20 summit in South Korea.Russia, UK's positions 'similar in many respects,' Medvedev says

Russian double agent 'helped crack' US spy ringo Russia-U.S. spy scandal caused by intelligence officer betrayal -

newspaper Putin Brings along New Moscow Mayor to Sofia - Bulgaria's cabinet approved a

decision to sign the South Stream project. Yesterday, Bulgaria's PM Borissov and his Russian counterpart once again had a phone talk to specify details of PM Putin's visit to Sofia on Saturday

Russian Cultural Days to be held in three major cities - Russian Cultural Days will be held in Hanoi, Ho Chi Minh City and Da Nang from November 14-22, announced by the Ministry of Culture, Sports and Tourism.

Russian military base in Armenia part of southern military district - Specifically, the Southern military district comprises the North Caucasian military districts, Black Sea and Caspian fleets, as well as the military bases in Armenia, Abkhazia and South Ossetia.

CIS Institutions of Higher Education sign Memorandum in Baku Putin to visit children’s haematology, oncology, immunology centre - The

German company Transumed GmbH Medizintechnik started building the centre in August 2008. The main purpose of Putin’s visit to the centre is to check the status of the project ahead of its commissioning scheduled for June 1, 2011 -- Child Protection Day.

Governors should not remain in office longer than three terms – Medvedev: The governors of the Russian regions should not hold their positions for longer than three terms, stated President Dmitry Medvedev at a meeting with the staff of the newspaper Rossiyskaya Gazeta.

o Medvedev says no plans to raise retirement age in Russia in near futurе - “We have no plans to raise the retirement age in the years to come not because there are no objective reasons for that, but because such decisions require serious discussion and public consensus,” Medvedev said at a meeting with Rossiiskaya Gazeta staff.

o Russia needs fewer universities - Medvedev : "Higher education has been devalued. We have a huge number of higher educational establishments some of which are worth nothing," Medvedev said at a meeting with

employees of government daily Rossiiskaya Gazeta on its 20th anniversary.

Russian govt to consider draft education programme for 2011-2015 Sobyanin appoints Kalina as Moscow government minister - Moscow Mayor

Sergei Sobyanin appointed Isaak Kalina as a Moscow government minister and the head of the Moscow education department, a source in the Moscow Mayor’s Office said on Thursday.

Satellites to make e-govt available across Russia – Rostelecom: Two K-2 satellites will be used to bring Internet and e-government services to remote Russian regions where laying fibre optic cables would be loss-making, Rostelecom Voce President Andrei Nashchekin said.

Up to 100,000 domains can be registered in RF zone by yearend Over 11 mln Muscovites take part in national population census - A total of 95

percent of Moscow’s population, or 11.7 million people, took part in the national population census held on October 14-25, 2010.

Russia joins executive board of UN Women ICJU head calls for journalist congress after attack on Russian reporter Investigators to renew journalist attack case ‘Mandela Moment’ Awaits Russia in Yukos Trial: Julian Rimmer - The jury is

out, or at least it would be if there was one. Fascinated or appalled, Russia and the world await the verdict in the latest trial of Mikhail Khodorkovsky, the former owner of Yukos Oil Co. His fate now lies in the hands of Judge Viktor Danilkin.

Russia’s legal mire - All that makes the lack of progress on legal reforms – in spite of the pledges of both Mr Medvedev and, earlier, Mr Putin (who promised a “dictatorship of laws”) – perplexing. The likely conviction of former Yukos chief Mikhail Khodorkovsky next month on new embezzlement charges, described even by former senior officials as absurd, is proof of that. Yet the rule of law is not an abstract value. Until Russians – not just journalists but all citizens – start feeling a bit safer, investors will never feel entirely safe either.

Blood money rejected in 'golden gun' assassination - The family of the murdered Chechen warlord Sulim Yamadayev will not seek blood money or take any legal action against the two men convicted of involvement in the assassination, a court was told yesterday.

Russian Press at a Glance, Thursday, November 11, 2010 o This summer's Russian-U.S. spy scandal was the result of betrayal by a

Russian intelligence officer. Investigative reporting.(Kommersant)o President Dmitry Medvedev will hold an Internet conference with

Russians.(Nezavisimaya Gazeta)o Right Cause, which styles itself as a liberal opposition party, has become

the first party to officially support President Dmitry Medvedev's candidacy for a second term in 2012. Party co-founder Georgy Bovt said Wednesday that the decision reflects the country's political reality.(Moscow Times)

o The Republican Party that won last week's midterm elections to the U.S. Congress will block any initiatives from President Barack Obama. This

could not only freeze the healthcare reform but also fold Obama's policy of "resetting" relations with Russia.(Kommersant)

o Russian phone retailer Euroset is preparing for an IPO in London, three investment bankers and one company manager said. The IPO could be held at the London Stock Exchange in 2011 and involve some 30% of the company's stock. The final decision will be made by November 20.(Vedomosti)

o British lighting equipment producer Abacus has announced plans to build a plant in St. Petersburg next year. Abacus is "looking at how we can support the Winter Olympics in Sochi," said Andrew Morris Richardson, chairman of the board of Abacus Russia and a board member of British Abacus.(Moscow Times)

o English could become the only language for communication between traffic controllers and pilots for non-military Russian flights, said Alexander Neradko, head of the Federal Air Transportation Agency. Currently, both Russian and English are used for radio communication at the country's international airports, while the rest only use Russian.(Moscow Times)

o Russia hopes to join the World Trade Organization next year, presidential aide Arkady Dvorkovich said.(Vedomosti, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

o The European Union plans to spend €1 trillion ($1.4 trillion) on diversification of energy supplies by 2020. The EU's energy strategy could strip Russia of part of its sales market but experts say the EU has little chance of implementing it.(Vedomosti)

o City Hall's website crashed Wednesday after Mayor Sergei Sobyanin published his long-awaited plan to fight Moscow's notorious traffic jams. The plan in particular proposes barring trucks from the city during daylight hours. Experts say this will only result in shortages of goods and price hikes.(Moscow Times, Vremya Novostei, Vedomosti)

o The Investigative Committee's top department was assigned on Wednesday to handle the case of the attack on Kommersant reporter Oleg Kashin, who remains in a drug-induced coma, as suspects singled out by the media denied involvement.(Vedomosti, Kommersant, Moscow Times, Nezavisimaya Gazeta)

o Russian Prime Minister Vladimir Putin has banned parents from paying for efforts to repair and equip schools because there is a special federal target program to deal with the issue.(Kommersant)

o Bulgaria's Cabinet on Wednesday approved a proposed joint venture with Russian energy giant Gazprom to run the Bulgarian section of the planned South Stream pipeline that will run across the Black Sea. The agreement envisions a 50-50 partnership between Gazprom and Bulgarian Energy Holding and is to be signed during Prime Minister Vladimir Putin's visit to Sofia on Saturday.(Vremya Novostei, Moscow Times)

o Gazprom's sales to South Korea should pull even with supplies to major European buyers like France by 2017 as the Russian gas export monopoly

turns its attention toward burgeoning Asian markets, Gazprom chief Alexei Miller said Wednesday.(Moscow Times, Vremya Novostei)

o Registration of ordinary users in the Cyrillic Internet domain (.рф) will start at midday Thursday.(Rossiiskaya Gazeta)

Third man suspected of role in Krasnodar mass murder detained – source Spy Sandal Version 2.0 - For Countries of Georgia’s Size with Enemies the Size

of Russia, Soft Power Swipes Like a Well-Timed Spy Bust Are a Useful Weapon EU to have another stab at forming untied energy front - …despite many tough

words, Russia has picked off targets at its leisure, with several individual EU members signed up to help build more infrastructure linking Europe to Russian energy suppliers, despite the bloc having an official strategy to reduce its dependence on Moscow.

Winner takes all? - For now, Moscow is trying to gain the upper hand by fast-tracking construction of the Kaliningrad facility, the Baltic Nuclear Power Plant. ..The facility will probably become another carrot that Moscow can dangle before Minsk as the two countries quarrel over everything from oil prices to a customs union.

National Economic Trends Euroclear Link May Generate Ruble Demand ‘Wave,’ Citigroup Says Russia to cut budget deficit to 2.9 pct of GDP in 2013 Merill Lynch subsidiary to organize sale of VTB's shares Trade Surplus Widens September Trade Balance: a Short Respite, Yet No Clue to RUB Weekly CPI accelerates to 0.2% w/w in November Duma committee approves oil and gas tax hikes Ministry of Finance proposes consumer finance draft law New law on express loans to be less profitable for banks, more secure for

consumers

Business, Energy or Environmental regulations or discussions Kuzbassrazrezugol, Polyus Gold, Rosneft: Russian Equity Preview MICEX share-trading opens on upswing as oil prices rise UPDATE 1-Russia's Transneft shares soar on MSCI Russia entry Russia's FSK says half year net profit up 60 percent EuroSibEnergo to raise $1.5 bln in Asian IPO EuroSibEnergo to IPO in bid to fund Norilsk war? Evroset mobile phone retailer may sell 30 pct of shares in IPO on LSE in 2011 Russian Technologies Corporation Eyes State's Stake in Apatit RUSNANO and Plastic Logic Announce Agreement to Establish New Plastic

Electronics Production in Russia ABC opening Moscow office in major push   Russia enters Formula 1 as company takes ‘significant stake’ in Virgin team Russian carmaker to take over F1 team Fiat's Magneti Marelli expands in Russia VTB Capital takes ECM title from Renaissance Capital

RusAl is in talks with investors on a joint bid for Vladimir Potanin’s stake in Norilsk Nickel, RIA-Novosti reported Wednesday, citing a source familiar with RusAl’s plans. (Bloomberg)

Magneti Marelli, the auto-parts division of Fiat, aims to expand in Russia where it wants to become “a leading player,” chief Eugenio Razelli said Wednesday, during the opening of a lighting plant in Ryazan. (Bloomberg)

Yekaterinburg-based Urals Nickel, owned by Dmitry Baskov, plans to hold an initial public offering and list its shares on MICEX, the company said Wednesday. (Bloomberg)

Raspadskaya will resume output at its main mine by the end of the year, chief Gennady Kozovoi said Wednesday, according to the Kemerovo regional administration. (Bloomberg)

Mitsubishi Heavy Industries, Sojitz and China National Chemical plan to build a $1.06 billion chemical plant in Russia, Nikkei English News said Wednesday. (Bloomberg)

Activity in the Oil and Gas sector (including regulatory)

Gazprom

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Full Text Articles

Basic Political Developments

Constructive relations with RF pay dividends to US - State Dpt

http://www.itar-tass.com/eng/level2.html?NewsID=15670318

11.11.2010, 11.06

WASHINGTON, November 11 (Itar-Tass) - The creation of more constructive relations with Russia has already begun to yield significant dividends to the United States and Europe, US Assistant Secretary of State for European and Eurasian Affairs Philip H. Gordon said in London on Thursday.

The United States for its part has made important progress in bilateral relations in terms of pragmatic cooperation, he said speaking at the Royal Institute of International Affairs (Chatham House). The text of his remarks was released by the US State Department in Washington.

He said, in particular, that “we have sought with our European allies to build a more constructive relationship with Russia – a common goal that has started to pay significant

dividends for both Europe and the United States. For our part, the United States has made important progress in setting our bilateral relationship on a path of pragmatic cooperation. Most significantly, we have concluded a New START Treaty. The agreement is the most comprehensive arms control agreement in nearly two decades and significantly reduces the number of nuclear weapons and launchers deployed by the United States and Russia while also putting in place a strong verification regime.” According to him, “This is an achievement that has made Europe and the world safer. We have also achieved important cooperation with Russia in advancing our common goals in Afghanistan and in addressing the Iranian nuclear program. And we have done all of this without compromising our principles – in particular our steadfast commitments to human rights and to the defence, sovereignty and territorial integrity of all of the nations of Europe.”

G-20 Summit in Seoul

Chinese, Russian presidents meet in Seoul on cooperationhttp://news.xinhuanet.com/english2010/china/2010-11/11/c_13602308.htm

2010-11-11 16:49:45

SEOUL, Nov. 11 (Xinhua) -- Chinese President Hu Jintao and his Russian counterpart Dmitry Medvedev met here Thursday to discuss the development of the China-Russia strategic partnership of coordination.

The two presidents are also expected to exchange views on major world and regional issues of common concern.

They met on the sidelines of the fifth Group of 20 (G20) summit slated for Thursday and Friday.

11/11 11:28   Extending Kyoto Protocol won't help tackle global warming - Russian G20 delegatehttp://www.interfax.com/

11/11 11:34   G20 Seoul summit to approve plan to help poor nations – sourcehttp://www.interfax.com/newsinf.asp?id=201110

Russia calls for risk management system based on IMF

http://www.rbcnews.com/free/20101111112507.shtml

      RBC, 11.11.2010, Seoul 11:25:07.Russia has proposed the creation of a risk management system on the basis of the International Monetary Fund (IMF), in which governments or market participants may act as insurers. The announcement was made in documents prepared by the Russian delegation for the G20 summit in Seoul. According to Russian negotiators, the system could serve as an alternative to South Korea's proposed financial security network aimed at ensuring immediate access to financial resources in case of a crisis or potential impending crisis. Specifically, Seoul has proposed schemes for opening credit lines to countries without posing requirements for economic policy.

      "In general, we support South Korea's initiative, but believe that we must come up with alternatives to the global financial security network. We can return to the idea of "a last resort creditor," whose functions the IMF does not yet perform. Another option is to create a system for risk management on the basis of the IMF," the Russian delegation's documents read. Apart from that, Russia suggests using regional credit mechanisms more widely, including reserve and anti-crisis funds.

Russia backs gradual removal of credit ratings from regulation instrumentshttp://en.rian.ru/russia/20101111/161288912.html

12:25 11/11/2010

SEOUL, November 11 (RIA Novosti) - Russia supports the gradually exclusion of credit ratings from financial and economic regulation and believes that their use should be balanced with other economic analysis tools, a source in the Russian G20 Group delegation in Seoul said on Thursday.

In particular, credit ratings could be replaced by other assessment mechanisms in many areas of financial regulation, the source said.

However, Russia understands that a large-scale effort to restrict the use of ratings could create some problems and cause investors' distrust for ratings and rating agencies and hinder investment decisions.

Moreover, the introduction of alternative assessment mechanisms will require time in some areas and therefore credit rating actions cannot be replaced in the near future, the source said.

Russia favors a system of state control over rating agencies and their enhanced responsibility for the quality of their rating actions through regulative norms, the source said.

Russia against U.S. current account limits proposalhttp://en.rian.ru/business/20101111/161288826.html

12:17 11/11/2010

Russia will not support a U.S. initiative to limit current account balances to four percent of gross domestic product (GDP), a Russian delegation source at the G20 summit said on Thursday.

"As part of our work to reduce global imbalances, Russia does not support the U.S. proposal to impose curbs of four percent of GDP on current account deficits or surpluses in a short or medium term," he said.

Last month the U.S. put forward the idea of current account limits as a method of measuring when imbalances can cause problems in the global trading system and become unsustainable.

The proposal was supported by most G20 countries, but was strongly opposed by emerging market states.

"We need a more flexible approach than that proposed by the U.S., as there are countries where surplus is an equilibrium phenomenon and is caused by, for example, a demographic structure or a high share of natural resources exports. The IMF should to take into account features and economic conditions of each country, when developing specific recommendations," the source said.

SEOUL, November 11 (RIA Novosti) 

RF concerned some states seeking weaker currency exchange rate

http://www.itar-tass.com/eng/level2.html?NewsID=15670230&PageNum=0

11.11.2010, 10.48

SEOUL, November 11 (Itar-Tass) -- Russia is concerned over some countries seeking to weaken their currency exchange rates in order to boost their economies without coordination with other partners, a source in the Russian delegation at the G20 summit told Itar-Tass on Thursday.

“We are particularly concerned over the attempts of some countries to take unilateral decisions to weaken their currency exchange rates in order to boost their economic growth without coordination with other partners. We believe that such steps make the participants in the market more nervous and the exchange rates of the leading currencies

more volatile inciting fears about the launch of ‘the currency wars’ on the international scene,” the source noted.

Russia to voice concern over unilateral economic decisions at G20 - sourcehttp://en.rian.ru/business/20101111/161288348.html

11:49 11/11/2010

Russia will voice its concern over some countries' decisions to weaken their currencies without consultations with partners as it makes markets jittery and raises fears of the start of currency wars, a source in the Russian delegation to the G20 summit said on Thursday.

"We are not only talking of direct interventions on the foreign exchange market, but also of indirect exchange rate weakening through pumping liquidity into the economy. The creation of excessive liquidity by leading developed countries is also a serious problem for emerging states as this generates a considerable speculative capital inflow to their markets," he said.

Earlier in November, presidential aide Arkady Dvorkovich said that Russia wanted G20 states to coordinate their important financial decisions with other group participants following the U.S. Federal Reserve System's decision to increase monetary supply by 30%, which many analysts say will cause speculative bubbles on global markets.

The source said that the Russian delegation believes that supporting stability of the main reserve currencies, effective management of public finances, and a stable monetary policy in developed countries were an indispensable condition for further growth.

"This is why coordinated measures taken under the auspice of the IMF and other international organizations are a necessary condition for stable, sustainable and balanced economic growth and the achievement of a mutually profitable development of the global economy," he said.

"The utmost attention should be paid to structural changes in the economies of developed and emerging states."

He also said that global economy was in a "vicious circle, where governments of leading developed countries are obliged to allocate considerable resources to save banking institutes, which result in poorer budget indices and the necessity to cut other state expenses."

An aging population in the developed countries also puts severe strain on state debt and budget deficits, he said.

SEOUL, November 11 (RIA Novosti) 

UPDATE 1-Russia frets global economy "unstable"-G20 sourcehttp://in.reuters.com/article/idINTOE6AA07K20101111

12:37pm IST

SEOUL, Nov 11 (Reuters) - Russia is concerned that the global economy is "unstable and unbalanced" and some countries are weakening their currencies to stimulate growth, a source with the country's delegation to the G20 Summit said on Thursday.

"We are especially worried by attempts by a number of countries to take unilateral decisions to weaken their currencies in order to stimulate growth without agreement with other partners," the source said.

"We believe that such steps lead to nervousness among market players and volatility of main currencies, prompting fears of global 'currency wars'."

World leaders gathered in Seoul for a two-day summit hoping to move beyond broad promises of economic cooperation, but days of rancorous debate appear to have undone much of the G20 unity forged in the throes of a global crisis two years ago.

U.S.President Barack Obama has urged his peers to put aside differences and follow through on previous agreements to even out imbalances between cash-rich exporting nations and debt-burdened importers.

But an idea floated by the United States earlier for numerical targets to be set for trade imbalances appears to have been taken off the table after drawing little support.

"Russia does not support the U.S. proposal to introduce limits on the current account's deficit or surplus of 4 percent of GDP in the short or medium term," the Russia source said.

"There is risk that lack of clear, solid and all-encompassing plans of fiscal consolidation by the countries issuing reserve currencies can contribute to uncertainty and weaken confidence in financial markets." (Reporting by Gleb Bryanski; Editing by Alex Richardson)

Russia Asks G-20 to Cut Investment Barriers to Offset Hot Money http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ahIkAliC3CLM

By Paul Abelsky

Nov. 11 (Bloomberg) -- Russia will urge Group of 20 policy makers to remove barriers to long-term investment in developed countries to help emerging economies counter capital inflows as the U.S. pumps $600 billion into its economy.

The proposal would offset the money flooding into emerging markets by creating an “oncoming flow” of capital to industrialized nations, said Arkady Dvorkovich, senior economic adviser to President Dmitry Medvedev, at a Moscow briefing before the G-20 summit, which begins today in Seoul.

“Large-scale, cross-border investments can serve exactly to stabilize the situation,” Dvorkovich said. “They will, in effect, replace investments into sovereign securities of the developed countries and help regulate the imbalances that appear as a result of high deficits and surpluses.”

Russia is trying to forge an alternative to devaluations and capital controls by developing nations seeking to prevent hot money from creating asset bubbles, said Yaroslav Lissovolik, chief economist at Deutsche Bank AG in Moscow. Interest rates close to zero in advanced economies have spurred demand for higher-yielding assets in countries from Brazil to Thailand.

The U.S. Federal Reserve fueled concern in emerging economies last week when it announced plans to buy $600 billion of long-term government bonds to reduce borrowing costs and spur growth in a second round of so-called quantitative easing.

‘Protectionist Barriers’

China took steps this week to stem inflows that threaten to drive up stock and property prices. South Korea may revive a 14 percent tax on domestic treasury and central bank bonds held by foreigners to curb foreign-exchange volatility, a ruling party lawmaker said yesterday.

“From the point of view of coping with the problem of global imbalances, too much emphasis has been placed on currency rates,” Lissovolik said. “Structural measures, including those aimed at lowering protectionist barriers, are more appropriate in helping find a lasting solution.”

Capital flows into emerging markets are running at $575 billion a year, 20 percent higher than before the world financial crisis, Goldman Sachs Group Inc. said in September.

Meanwhile, foreign direct investment in the U.S. shrank to 0.9 percent of gross domestic product in 2009 from 2.3 percent a year earlier, data compiled by Bloomberg show. That compares with 3 percent in Russia and 2.6 percent in India.

Gazprom, Cnooc

The U.K. government warned in 2006 that any bid from OAO Gazprom, Russia’s gas export monopoly, for Centrica Plc, Britain’s biggest energy supplier, would face rigorous tests about its affect on energy security. Cnooc Ltd., the Hong Kong- listed unit of China’s largest offshore oil and gas explorer, abandoned an $18.5 billion bid for El Segundo, California-based Unocal Corp. in 2005 because of opposition from U.S. lawmakers.

Canada last week blocked Melbourne-based BHP Billiton Ltd.’s $40 billion hostile bid for Potash Corp. of Saskatchewan Inc., saying it didn’t provide a “net benefit” to the country.

The G-20 has to counter “trade protectionism,” according to a statement issued yesterday by South Korean President Lee Myung-bak’s office after he met with Medvedev. G-20 leaders pledged to resist protectionism in June when they met in Canada.

The Russian proposal fails to address global imbalances that result from insufficient demand in emerging markets, said Neil Shearing, a senior emerging-market analyst at Capital Economics in London.

“Inflows of FDI would tend to increase the supply potential of the developed world rather than boost demand” in emerging economies, he said. “There is already an overhang of supply in the West. Why the need for further investment?”

Russian Barriers

While Russia is campaigning to open markets in North America and western Europe, it has the most protectionist trade policies in the G-20, according to a June 20 report compiled by the Washington-based Peterson Institute for International Economics and released by the International Chamber of Commerce.

The U.S. was second, followed by India, Argentina, Brazil and China. Countries took steps to shield industries from international competition as job losses rose and the European sovereign-debt crisis damped growth, according to the report.

Russia has imposed tariffs on imported cars and limited poultry imports from the U.S. by reducing permissible chlorine levels. Wood-export duties opposed by paper companies such as Helsinki-based Stora Enso Oyj are the main remaining “sticking point” in Russia’s talks to join the World Trade Organization, European Trade Commissioner Karel De Gucht said Nov. 9.

While Russian officials have said they aren’t considering capital controls and won’t seek to weaken the ruble, they sided with other BRIC countries last month in opposing U.S. efforts to weaken mechanisms to control currency fluctuations.

The Russian government is trying to “score political points” with its emerging-market peers in a G-20 dominated by the U.S., China, Japan and the EU, said Fyodor Lukyanov, editor of the Moscow-based journal Russia in Global Affairs.

“Russia is trying to find a niche in which it’s useful for someone,” Lukyanov said. “It’s looking to strike a balance between the interests of different member countries.”

To contact the reporter on this story: Paul Abelsky in Moscow at pabelsky@bloomberg.net.

To contact the editor responsible for this story: Willy Morris at wmorris@bloomberg.net.

Last Updated: November 11, 2010 01:25 EST

Economy and currency wars on G20 tablehttp://russiatoday.com/news/g20-economy-currency-war/

Published: 11 November, 2010, 10:04

G20 leaders are gathering in South Korea, and the one thing on their minds is money. Those ruling the world's major economies are confronted with preventing a recurrence of the financial nightmare of 2008.

The summit kicked off with a business forum and Russian President Dmitry Medvedev urged the G20 to create a favorable environment for medium and small businesses, which he believes would help global recovery.

Medvedev has already had a bilateral meeting with British Prime Minister David Cameron, both saying they see eye-to-eye on many of the top priorities of the G20.

Dmitry Medvedev will also be holding talks with China’s President Hu Jintao which are expected to focus on US financial policy, which right now the world is less than happy with.

For the South Korean capital, Seoul, the gathering underlines its economic awakening. But there are major spats to iron out – as countries circle their financial wagons, while others try to call the shots.

This year’s G20 is being billed as a financial coming-out event for South Korea – proof of just how far the country has come in the nearly 60 years since the end of the Korean War.

Once poorer than its northern neighbor, South Korea now boasts the 13th largest economy in the world. North Korea may lie just four kilometers beyond the FreedomBridge and Demilitarized Zone, but economically the two are worlds apart.

The threat from the Democratic People’s Republic looms particularly large, and Seoul isn’t taking any chances: security forces are on high alert.

But there is another conflict on the G20 leaders’ minds – the outbreak of the so-called Currency War.

The US leads the charge, accusing China of cheating world trade by artificially weakening its currency. It wants the yuan to be bolstered.

"The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson, Financial Times contributor. “Well, you can imagine what the Chinese are saying. They’re laughing! They’re thinking, are you guys joking?”

And yet Washington stands accused of allowing its own dollar to dwindle, roiling emerging markets whose own currencies are rising strongly and damaging their export competitiveness.

Complaints intensified after the Federal Reserve announced a second print-run of $US 600 billion – the “quantitative easing” designed to get cash flowing. However, other economies worry it will flood their markets.

Russian President Dmitry Medvedev wants the summit to agree that when countries like the US take big steps to save themselves, they should consider the ripples it causes and get permission from the G20 first.

"Russia’s position is that we need a more coordinated approach; we don’t want surprises from our partners,” says Russian presidential aide Arkady Dvorkovich. “We want a more intensive policy dialog between Central Banks, Finance Ministries. This can lead to a greater stability on the markets."

Among other leading critics is Germany, the world’s fourth-largest economy, with its Finance Minister calling the US “helpless”.

Monument Securities chief economist Stephen Lewis said, “I don’t think the US is making its case any stronger through the measures that it’s taking, through printing dollars to weaken its own currency, because that looks far too much like a competitive devaluation… I think the European countries see it as a dangerous move because what it could do is increase the capital controls around the world.”

That is not what Barack Obama wants to hear. The US President’s call for Germany – along with China and Japan – to rely less on their dominant export markets and spend more at home is falling on deaf ears.

The truth is that no one is happy with today’s international monetary system, especially the dominance of the dollar as a reserve currency and America’s management of it.

And what business leaders want the G20 to realize, is that each nation will have to fight their natural urge to try and protect their trade, and also the need to boost foreign investment.

G20 countries should promote small businesses - Medvedevhttp://en.rian.ru/business/20101111/161285675.html

07:18 11/11/2010

Russian President Dmitry Medvedev on Thursday urged the governments of the G20 countries to promote small businesses.

"Today it is necessary not to try to restore the previous conditions for operation of small and midsized enterprises, but to form a more favorable environment for them," Medvedev said at a business summit in Seoul.

The business summit is held ahead of the meeting of G20 leaders, due Thursday evening in the South Korean capital.

"One of the key tasks today is to ensure unhindered access to national and international capital markets for small and midsized businesses," the Russian leader said.

He also said Russia will develop microfinance, or the practice of providing small loans to individual borrowers lacking access to credit, as an efficient anti-crisis measure.

"Microfinance has become an important element of Russia's financial system," Medvedev said.

SEOUL, November 11 (RIA Novosti)

G20 should consider state purchase from small businesses – Medvedev

http://www.itar-tass.com/eng/level2.html?NewsID=15669896&PageNum=0

11.11.2010, 08.53

SEOUL, November 11 (Itar-Tass) - Russian President Dmitry Medvedev has urged the Group of Twenty countries to consider a more active use of government procurement mechanism with the involvement of small businesses.

“Another issue is the importance of state orders placed not only with large companies, but also small ones,” he said at a round table discussion of the forum “The role of business in ensuring sustainable and balanced demand.” “It is not always easy for the government to make arrangements with small businesses on supplies, because, as a rule, the supply volumes are small,” the president admitted. “But the states should pay attention to these possible purchases,” he added.

Medvedev said another important aspect of the work is stimulating banks to work more actively with small businesses. “We in Russia have passed this,” he said noting that several special programmes have been developed in this sphere. “It is clear that without additional incentives it is often impossible to turn them to more active cooperation with small businesses,” said Medvedev.

Medvedev to wind up visit to Seoul, to attend G20 Summit

http://www.itar-tass.com/eng/level2.html?NewsID=15669445&PageNum=0

11.11.2010, 01.31

SEOUL, November 11 (Itar-Tass) -- Russian President Dmitry Medvedev will wind up the official visit to the Republic of Korea on Thursday and attend the G20 Summit on November 11-12.

During the final event of the official visit, the authorities of the South Korean city of Incheon (Chemulpo) will hand over the Varyag cruiser’ s flag to the Russian delegation.

Along with another 13 objects from the cruiser, the flag was seized by the Japanese after the Battle of Chemulpo, but ended up in South Korea after Japan’s defeat in Worlds War II.

Under Korean laws, objects of cultural heritage cannot be handed over to other countries. So the flag from the Varyag will be returned to Russia for permanent storage on condition that it should be put up on display in South Korea from time to time.

South Korea returns the Varyag`s flag to Russiahttp://english.ruvr.ru/2010/11/11/33236872.html

Nov 11, 2010 09:29 Moscow Time

South Korea has handed over the flag of the legendary Varyag cruiser to Russia during a ceremony at the Russian embassy in Seoul on Thursday morning.

The ceremony was attended by the Russian leader Dmitry Medvedev, who described the event as ‘historical’ and marking a fresh start in bilateral relations.

 The flag has been kept in the South Korean town of Incheon for over 100 years. It was near that sea port that the Russian cruiser entered a battle with a squadron of Japanese ships in 1904.

Varyag cruiser flag transfer symbol of RF-SKorea good relations

http://www.itar-tass.com/eng/level2.html?NewsID=15670120&PageNum=0

11.11.2010, 10.03

SEOUL, November 11 (Itar-Tass) - The ceremony of handover to the Russian side of the jack-flag (naval ensign) of the legendary cruiser Varyag (Varangian) was held in the RF embassy in Seoul in the presence of Russian President Dmitry Medvedev. The authorities of the South Korean city of Incheon handed over the flag to the Russian side.

The Russian head of state said that it is a significant event both in Russian history and history of Russian-Korean relations.

“The transfer of the jack from the Varyag cruiser is of special symbolic importance for us, because it is the memory of the unprecedented feat of navy men of the Varyag cruiser, on the one hand, and on the other – it is a symbol of new very good relations that bind Russia and the Republic Korea,” said Medvedev.

He expressed gratitude to the Mayor of Incheon for the decision, noting that the fact that it happens during the visit of the Russian president makes the transfer of the flag especially symbolic.

“Accepting today the jack from the Varyag cruiser we pay tribute to the heroism of our sailors and, on the other hand, try to show that there is a place of heroism in every life, and we hope that the appropriate deposit, which will be with us, will allow young generations of Russians to also be oriented towards what has been done by their ancestors many years ago,” Medvedev said.

SKorea HHI to build electrical eqt plant near Vladivostok

http://www.itar-tass.com/eng/level2.html?NewsID=15669769&PageNum=0

11.11.2010, 08.13

VLADIVOSTOK, November 11 (Itar-Tass) - The South Korean Hyundai Heavy Industries (HHI) Company will build a plant for the manufacture of electrical engineering equipment near Vladivostok.

A document to this effect has been signed in Seoul by Sergei Darkin, Governor of the Primorsky (maritime) Territory (PT), Oleg Budargin, Chairman of the Board of the OAO FSK UES Federal power network company, and HHI CEO Keo Sik-ming, an official at the press center of the PT administration told Itar-Tass on Thursday.

Eighteen months are assigned for the implementation of the project. The plant will be turning out factory-assembled switch gear of the 500-kilovolt class at the first stage and transformers subsequently. The HHI will act as the main investor.

APEC not to take new protectionist measures until the end of 2013

http://www.itar-tass.com/eng/level2.html?NewsID=15669895&PageNum=0

11.11.2010, 09.12

YOKOHAMA, November 11 (Itar-Tass) - The ministerial meeting of the leading Pacific Rim countries, including Russia, declared Thursday in favour of avoiding fresh protectionist measures to uphold their economies until the end of 2013, said a joint statement adopted by the Foreign and Economics ministers of the Asia-Pacific Economic Cooperation (APEC) forum at the meeting that came to a close here earlier in the day.

The statement said the Ministers had agreed to recommend the leaders of Pacific Rim countries to extend until the end of 2013 the suspension of measures aimed at putting new barriers in the cause of investments and trade in goods and services, as well as at imposing new export restrictions or taking other measures incompatible with the rules of the World Trade Organization, in all fields, including the stimulation of export.

The Ministers also declared in favour of pushing ahead with measures aimed at establishing a Free Trade Area of the Asia-Pacific. APEC comprises 21 Pacific Rim countries and territories, among them Russia, the United States, China, Japan, Australia, Mexico, and Southeast Asian nations.

Aust signs off on Russia nuclear dealhttp://news.ninemsn.com.au/world/8126571/aust-signs-off-on-russia-nuclear-deal

18:26 AEST Thu Nov 11 2010

Prime Minister Julia Gillard and Russian President Dimitry Medvedev have signed off on an agreement to resume uranium sales to Russia.

Ms Gillard and Mr Medvedev met on the sidelines of the G20 leaders meeting in Seoul on Thursday and exchanged an agreement on co-operation in the use of nuclear energy for peaceful purposes.

The deal will mean Australian miners will be able to supply uranium to Russia for use in the civil nuclear power industry.

It updates a 1990 deal that enabled Australia to sell uranium to be processed in Russia on behalf of third countries.

NOVEMBER 11, 2010, 3:16 A.M. ET

Australia Agrees To Supply Uranium To Russian Power Industry http://online.wsj.com/article/BT-CO-20101111-704362.html

SYDNEY (Dow Jones)--Australia's Prime Minister Julia Gillard said Thursday the country has entered an agreement to supply uranium to Russia's power industry.

Gillard and Russian President Dmitry Medvedev witnessed the official agreement in Seoul, where they are attending the Group of 20 industrial and developing nations summit.

"The agreement allows for the supply of Australian uranium to Russia for use in its civil nuclear power industry, updating the existing nuclear agreement between our countries. That agreement, concluded in 1990, permitted Australian uranium to be processed in Russia on behalf of third countries but did not allow it to be used for power generation within Russia," Gillard said in a statement.

"This brings Australia's bilateral nuclear relationship with Russia into line with the agreements we have in place with other countries, including the U.S., China, Japan and the Republic of Korea."

-By Graham Morgan, Dow Jones Newswires; 61-2-8272-4682; graham.morgan@dowjones.com

Cameron to visit Russia next year as sign of thawhttp://www.kyivpost.com/news/russia/detail/89540/

Today at 08:46 | Reuters SEOUL, Nov 11 (Reuters) - British Prime Minister David Cameron said on Thursday he would visit Russia next year, signalling an improvement in ties after a freeze caused by the murder of a Kremlin critic in London in 2006.

"I'm very pleased to take up the invitation of a visit to Russia next year," Cameron told reporters after a meeting with Russian President Dmitry Medvedev at the G20 summit in South Korea.

Diplomatic ties between the two countries fell to a post-Cold War low after Moscow refused to extradite the man Britain wants to put on trial for the 2006 murder of former Russian agent Alexander Litvinenko using the highly toxic polonium-210 isotope.

The killing was not mentioned by Medvedev and Cameron who said they focused on G20, North Korea, Iran, the upcoming NATO summit and economic cooperation.

"It has been a very positive meeting. I think we will have many more like this as we see a strengthening of the British-Russian relationship which I am keen to see," Cameron said in a statement.

Cameron took office in May at the head of a Conservative-Liberal Democrat coalition government. His Foreign Secretary William Hague visited Moscow last month as part of efforts to rebuild relations and met Medvedev.

"We have recently managed to advance on a number of issues, cooperating very closely," Medvedev said.

Read more: http://www.kyivpost.com/news/russia/detail/89540/#ixzz14xQKgYV3

Russia, UK's positions 'similar in many respects,' Medvedev says

http://www.rbcnews.com/free/20101111105105.shtml

      RBC, 11.11.2010, Seoul 10:51:05.Russia and the UK are "ready for cooperation, and our positions are similar in many respects," Russian President Dmitry Medvedev stated today after a meeting with British Prime Minister David Cameron. The Russian leader indicated that the two countries had been actively and efficiently cooperating on all unresolved issues, and Moscow and London had made significant progress in bilateral relations in 2010. "We agreed to continue shifting towards the expansion of high-level contacts," Medvedev said. He also noted, "Russian companies are happy to float shares on the London Stock Exchange, and this trend should certainly be encouraged."

      According to Medvedev, he and Cameron discussed international security, specifically Iran's nuclear program, and agreed to "coordinate efforts." The president also announced that he invited Cameron to visit Russia in 2011. The British PM, in turn, expressed hope that he would able to make the trip.

Russian double agent 'helped crack' US spy ringhttp://www.alternet.org/rss/breaking_news/327370/russian_double_agent__%27helped_crack%27_us_spy_ring/

A Russian spy ring broken by the United States this summer was detected with the help of a Russian intelligence agent whose daughter lives in the United States, the Kommersant daily reported Thursday.

The respected business daily identified the Russian accomplice as Shcherbakov, a colonel with the Russian foreign intelligence service.

It said Shcherbakov fled Russia for the United States three days prior to Russian President Dmitry Medvedev's June visit to Washington.

The paper cited sources as saying that Shcherbakov's son also quit his post with the Russian drug control agency and fled to the United States shortly before Washington revealed the spy ring that month.

His daughter has long lived in the United States, the paper said, without providing further details.

"It seems odd that no one bothered to check why a person of that rank has a daughter living in the United States," Kommersant quoted an unnamed intelligence source as saying.

Shcherbakov himself turned down an important promotion last year, suggesting that he had already been working with Washington, the paper said.

The group of 10 spies, many of whom had been working for years undercover in the United States as sleeper agents, returned to Russia in a July spy swap that saw Moscow send four Russian convicts to the West.

Prime Minister Vladimir Putin, who served as a Soviet foreign intelligence agent in East Germany, this summer denounced the then-unnamed Russian collaborator as someone whose life will end "with boozing or drugs," Kommersant said.

The Russian foreign intelligence agency was not immediately available for comment.

Russia-U.S. spy scandal caused by intelligence officer betrayal - newspaperhttp://en.rian.ru/russia/20101111/161286321.html

This past summer's spy row between Russia and the United States was the result of a betrayal by a Russian intelligence officer, a leading business daily reported on Thursday.

The scandal broke out in late June when 10 people were arrested in the United States. The spies were freed in a swap deal between Russia and the U.S.

Kommersant journalists carried out an investigation and discovered that a certain Col. Shcherbakov, who had long worked for Russia's Foreign Intelligence Service (SVR), was to blame for the exposure of Russians who were working under cover.

The newspaper reported that Shcherbakov's daughter has long been living in the United States but that the SVR was not too concerned about this.

"It's strange that no one questioned why a person on that level has relatives abroad," an intelligence source told Kommersant. "Such things are strictly monitored even in less secret organizations."

The intelligence service failed to take notice when Shcherbakov refused to accept a career promotion a year before the spy scandal - a procedure that would require him to undergo a lie detector test. This could mean that he actively cooperated with U.S. secret services at the time.

Finally, no one paid attention to the fact that Shcherbakov's son, who had worked for Russia's drug watchdog Gosnarkokontrol, hastily left Russia for the United States shortly before the Russian agents were exposed.

The traitor himself, said a Kommersant source in Russian state power bodies, fled the country three days prior to President Dmitry Medvedev's visit to the United States in June.

The reset of Russian-U.S. relations was threatened following the espionage scandal. However, the two countries pledged the espionage row would not affect bilateral ties.

Kommersant quoted a high-level Kremlin administration official as saying that Shcherbakov's fate "cannot be envied."

"He will carry this with him all his life and will fear retribution every day," the paper quoted him as saying.

MOSCOW, November 11 (RIA Novosti) 

Putin Brings along New Moscow Mayor to Sofiahttp://paper.standartnews.com/en/article.php?d=2010-11-11&article=34667

Bulgaria’s government greenlighted the South Stream after a phone talk between Putin and Borissov

THURSDAY, 11 November 2010

Bulgaria's cabinet approved a decision to sign the South Stream project. Yesterday, Bulgaria's PM Borissov and his Russian counterpart once again had a phone talk to specify details of PM Putin's visit to Sofia on Saturday

During his visit to Sofia, Russian PM Vladimir Putin will be heading a delegation of forty politicians and businessmen, including new Moscow Mayor Sergey Sobyanin, the Standart has learnt. The names of Putin’s delegates have not been officially announced, yet, and there may be some last-minute surprises. Saturday’s working visit of the Russian Prime Minister to Sofia is expected to last only a few hours. Borissov and Putin will discuss the realization of the joint energy projects.  Yesterday, Bulgaria’s and Russia’s PMs once again had a phone talk to specify the details of the forthcoming working visit of PM Putin to Sofia and the implementation of the South Stream project and Belene NPP. Earlier in the day, Bulgaria’s cabinet gave green light to the realization of the Bulgarian sector of the gas pipeline. Bulgaria’s Council of Ministers issued a permission for the establishment of a joint company between Bulgarian Energy Holding (BEH) and Gazprom. The joint company will work on the implementation of the South Stream project. The company will be registered in Bulgaria as its capital will be equally divided between Gazprom and BEH. Kristian Kosturkov

Updated : 10:55 AM, 11/11/2010

Russian Cultural Days to be held in three major cities

http://english.vovnews.vn/Home/Russian-Cultural-Days-to-be-held-in-three-major-cities/201011/121300.vov

Russian Cultural Days will be held in Hanoi, Ho Chi Minh City and Da Nang from November 14-22, announced by the Ministry of Culture, Sports and Tourism.

The event’s opening ceremony will take place at Hanoi Opera House on November 15.

This is the second time Cultural Days are organised in Vietnam, with the aim of strengthening Vietnamese-Russian traditional cultural cooperative exchanges, and carry out the agreement between Vietnam’s Ministry of Culture, Sports and Tourism and Russia’s Ministry of Culture.

It is expected to attract 75 Russian artists of three arts troupes. Also, under the framework of Russian Cultural Days in Vietnam, there will be Russian film week in the National

Cinema Centre in Hanoi, Thang Long Cinema in Ho Chi Minh City and Le Do Cinema in Da Nang. An exchange between Russia’s famous artists and teachers and students in HCM City Conservatoire will take place.

Besides, an exhibition on Moscow will open on 29 Hang Bai street, bringing Vietnamese people and international friends to see more about unforgettable historical days 65 years ago.

Russian military base in Armenia part of southern military districthttp://news.am/eng/news/37744.html

November 11, 2010 | 08:06

Russian Minister of Defense Anatoly Serdyukov announced successful completion of reforms of Russia’s military administrative division.

RF President Dmitry Medvedev signed a relevant decree. Four military districts have been formed instead of the previous six districts.

Specifically, the Southern military district comprises the North Caucasian military districts, Black Sea and Caspian fleets, as well as the military bases in Armenia, Abkhazia and South Ossetia.

CIS Institutions of Higher Education sign Memorandum in Bakuhttp://news.az/articles/society/26348

Thu 11 November 2010 05:10 GMT | 6:10 Local Time

Education of CIS member states signed a Memorandum on further development of cooperation between CIS member states.

The Sixth International Forum on theme “Dialogue of cultures and languages in CIS member states and Shanghai Cooperation Organization (SCO) in the 21st century” wrapped up in Baku.

The forum was organized by the Moscow State Linguistic University and the Baku Slavic University under the support of the CIS Intergovernmental Humanitarian Cooperation Fund.

The conference brought together members of the Russian State Duma (Parliament of RF), rectors, teachers and students from Azerbaijan, Russia, Belorussia, Tajikistan, Ukraine, Kazakhstan, Kirgyzstan and Moldova.

Workshops, scientific and methodological seminars and lectures were conducted as part of the forum. Also several Institutions of Higher Education of CIS member states signed a Memorandum on further development of cooperation between CIS member states.

The Baku Slavic University signed a treaty on cooperation with Kyiv National Linguistic University, Minsk State Linguistic University and Russian-Tajik (Slavic) University. One of the advantages of this treaty is the establishment of the Center of Azeri language and culture in these universities.

APA

Putin to visit children’s haematology, oncology, immunology centre

http://www.itar-tass.com/eng/level2.html?NewsID=15669495&PageNum=0

11.11.2010, 02.33

MOSCOW, November 11 (Itar-Tass) -- Prime Minister Vladimir Putin will visit the Federal Scientific and Clinical Centre of Children’s Haematology, Oncology and Immunology in Moscow on Thursday, November 11.

The history of the centre dates back to 2005 when Putin received a letter from Dima Rogachev who had invited the prime minister to eat pancakes with him. Putin visited the 10-year-old boy in August 2005 at the Russian Children’s Clinical Hospital where he was undergoing treatment for leucosis. It was after that meeting that Putin ordered the construction of a specialised oncology centre for children.

Dima died on September 20, 2007 at an Israeli clinic at the age of 12.

The German company Transumed GmbH Medizintechnik started building the centre in August 2008. The prime minister visited the construction site and oversaw the project personally. At a meeting with the organisers of the charitable party “Little Prince” on May 29, 2010 in St. Petersburg, he suggested naming the new centre after Dima Rogachev.

The main purpose of Putin’s visit to the centre is to check the status of the project ahead of its commissioning scheduled for June 1, 2011 -- Child Protection Day. The prime minister will join the children who have been cured from oncology diseases, the centre’s employees and members of the charitable foundation “Give a Life” in planting flowers and trees on the centre’s premises.

Governors should not remain in office longer than three terms – Medvedevhttp://english.ruvr.ru/2010/11/11/33230247.html

Nov 11, 2010 04:13 Moscow Time

The governors of the Russian regions should not hold their positions for longer than three terms, stated President Dmitry Medvedev at a meeting with the staff of the newspaper Rossiyskaya Gazeta.

"Two terms, maximum  three, they do not need more in order to prove their worth or to realize their plans." RIA Novosti reports the Russian leader as having said.

"Our governors have worked long, hard and successfully, but this does not mean that it should be a lifetime job. And especially the governor's chair should not be a sinecure (a job which requires little or no effort)." President Medvedev added. According to the president, "There should be continual fresh blood or something that we know well will begin, something that we came to know very well during the period of the 70s and 80s, and that is stagnation." The "top floor" in the decision-making process is the President. If someone appears to have their own view of what it means to hold public office, then this individual has to leave, even if he or she has made a lot of useful contributions." summed up the head of state.

Medvedev says no plans to raise retirement age in Russia in near futurе

http://www.itar-tass.com/eng/level2.html?NewsID=15669759&PageNum=0

11.11.2010, 08.03

MOSCOW, November 11 (Itar-Tass) -- President Dmitry Medvedev said there are no plans to raise the retirement age in Russia in the years to come.

“We have no plans to raise the retirement age in the years to come not because there are no objective reasons for that, but because such decisions require serious discussion and public consensus,” Medvedev said at a meeting with Rossiiskaya Gazeta staff.

The full text of the discussion on November 8 is printed in Thursday’s edition of the newspaper.

He believes that “hasty decisions in this field can cause public discontent and create socio-political problems we have seen in some European countries.”

The president said that the Russian pension system would remain stable for several years as “there is no enough money to pay pensions.”

“But if we look into the future, we have to think whether our economy will be able to system such expenditures,” he added.

He admitted that Russia has “one of the lowest retirement ages” but also “early mortality”.

“In a society where people live up to 90 years, retirement at the age of 70 appears to be normal. In such a society people are confident that with the high level of health care and proper attention to their own health after retirement they have many years to rest, travel around the world and spend time with grandchildren,” the president said.

“It’s not so simple here. And this is why we cannot just copy Western pension systems. Our life standards are different. And the average life expectancy is different too,” he added.

Russian presidential aide Arkady Dvorkovich said the country might increase the retirement age in several years.

“It is impossible to increase the retirement age as long as the lifespan is unchanged. It is premature to discuss the possible time of enlargement of the retirement age. Such decisions cannot be made unless they gain support of the majority of citizens,” he said.

The share of working pensioners is essential for the enlargement of the retirement age, Dvorkovich said. “We can do that if the majority of pensioners continue to work,” he said, noting that only a third of pensioners had been working before the crisis.

He does not think that the Pension Fund deficit will have to be covered with larger taxes. “Probably, pensions will grow more slowly than they do now, but we do not expect a further rise of the Pension Fund deficit. I think it will stabilise,” he said.

However, Pension Fund head Anton Drozdov said it would be inexpedient to increase the retirement age in Russia.

That would save 70 billion roubles in budget funds from 2012 but the effect would be the opposite starting from 2020, he said.

Central Bank First Deputy Chairman Alexei Ulyukayev said the fundamental basis for that situation was the global aging of the population that provokes constant growth of budget expenditures and commitments for the pension and healthcare systems.

“Obviously, the retirement age and the [wage] replacement rate should be brought in line with the new reality. However this is very hard to do politically. The EU considered raising the retirement age, and a wave of strikes followed immediately. The financial system is a hostage of politics. Harsh actions don't work,” he said.

Russia needs fewer universities - Medvedevhttp://en.rian.ru/russia/20101111/161284949.html

04:51 11/11/2010

The quality of education in Russia has deteriorated, and the country needs to cut the number of universities and colleges, President Dmitry Medvedev said.

"Higher education has been devalued. We have a huge number of higher educational establishments some of which are worth nothing," Medvedev said at a meeting with employees of government daily Rossiiskaya Gazeta on its 20th anniversary.

"The optimum number of universities should be substantially fewer than now," he said.

The Russian leader said he is not calling for inferior universities to be completely shut down. "They need to either be strengthened or merged with others," Medvedev said.

"When I studied at the university, we, as far as I remember, had two educational establishments in Leningrad [now St. Petersburg] that trained legal experts," the Russian president, who had received a legal education in the 1980s, said.

"But when I was leaving St. Petersburg in 1999, there were already 50 of them," he said.

MOSCOW, November 11 (RIA Novosti)

Russian govt to consider draft education programme for 2011-2015

http://www.itar-tass.com/eng/level2.html?NewsID=15669662&PageNum=0

11.11.2010, 06.36

MOSCOW, November 11 (Itar-Tass) -- The presidium of the Russian government will meet on Thursday, November 11, to consider a draft federal target programme on the development of education in 2011-2015.

At a meeting with members of the governing council of Moscow’s School No. 1060 on Wednesday, November 10, Prime Minister Vladimir Putin said of the 157 billion roubles

to be disbursed for the programme, 53 billion roubles would be provided by the federal budget and 10.5 billion roubles would go to secondary schools.

He stressed that the programme should become the main tool for implementing the presidential initiative “Our New School”.

The programme calls for creating 100 retraining centres for teachers at big schools. They should enable 80,000 teachers to undergo retraining and advanced training. In addition, each federal district will set up permanent retraining centres at pedagogical institutes.

Sobyanin appoints Kalina as Moscow government minister

http://www.itar-tass.com/eng/level2.html?NewsID=15670057&PageNum=0

11.11.2010, 10.05

MOSCOW, November 11 (Itar-Tass) -- Moscow Mayor Sergei Sobyanin appointed Isaak Kalina as a Moscow government minister and the head of the Moscow education department, a source in the Moscow Mayor’s Office said on Thursday.

Alongside, Igor Sinitsyn was appointed as the first deputy chief of the department of land resources. Svetlana Kiryushina was appointed as a Moscow mayor’s aide from the Russian government staff.

Sobyanin decided to dismiss Pyotr Saprykin from the post of the head of the department of housing policy and the housing fund and to dismiss Igor Yeleferenko from the post of the deputy chairman of the Moscow public relations department. The first deputy chief of the press service of the Moscow mayor and the government, Alexander Khokhlov, filed his resignation.

Satellites to make e-govt available across Russia – Rostelecom

http://www.itar-tass.com/eng/level2.html?NewsID=15669636&PageNum=0

11.11.2010, 06.02

PYATIGORSK, November 11 (Itar-Tass) -- Two K-2 satellites will be used to bring Internet and e-government services to remote Russian regions where laying fibre optic cables would be loss-making, Rostelecom Voce President Andrei Nashchekin said.

“Around two million people living in remote places with a low density of the population will get access to the Internet for 300-400 roubles a month via satellites,” he said on Wednesday, November 10.

He believes that in other regions communication channels should be built using public-private partnership. “Currently only 30 percent of the country are covered by the broadband Internet connection,” he said.

Up to 100,000 domains can be registered in RF zone by yearend

http://www.itar-tass.com/eng/level2.html?NewsID=15669535&PageNum=0

11.11.2010, 03.03

MOSCOW, November 11 (Itar-Tass) -- As many as 100,000 domains can be registered in the “.RF” zone by the end of the year, the director of the Coordination Centre for TLD .RU, Andrei Kolesnikov, said ahead of public registration of new domain names to begin on Thursday, November 11.

He believes that “several dozen thousand sites can be registered on the first day.”

“The average cost of registration for an .RF website is 500-600 roubles, the same as for the .RU zone,” he said on Wednesday, November 10.

He recalled that only Russian citizens and legal entities registered in Russia would have access to public registration. Eighteen Russian registrars will receive the applications.

The administrator of a domain cannot be changed for a year after registration. But “these restrictions will be temporary and will be lifted in the future,” Kolesnikov added.

He confirmed that “the Coordination Centre has decided to draw up a stop list for the .RF zone” to ban the use of obscene words in the domain names.

“There is already a list of 4,500-5,000 words and word combinations that cannot be used in the names of websites,” he said.

Initially it was planned to hold the so-called Dutch auction and gradually reduce the domain price within a month. But the Centre’s Coordination Council rejected this proposal on September 2.

According to Internet Technical Director Deputy Director Maria Nikerova, three options were considered for public registration. The simplest of them was to open the register to everyone.

“The main key to this option is total transparency. The minus is that we expect a tremendous influx of applications,” she said, adding that this could lead to technical failures and mass purchases of domain names for subsequent resale for profit.

The second option was public registration at an increased price of around 5,000 roubles. “This may prevent mass purchases of domain names, but the main problem – high price – will remain,” Nikerova said.

The third option was public registration with a limited number of domain names that can be registered by one administrator. “This will make it harder to buy domain names amass, but there is a high risk that fraudsters will bypass this rule,” she said.

“One should not forget that the ‘.RF’ is a non-commercial national domain and this imposes certain obligations on our citizens,” Nikerova said.

Priority registration that started in November 2009 ended in the middle of September 2010. During this period, governmental bodies, the owners of trademarks, mass media and some non-commercial organisations could register their domain names. More than 18,000 domain names were registered during that time.

The registration of websites of mass media and non-commercial organisations in the Cyrillic “.rf” domain zone resumed on July 26 after a ten-day pause.

The reception of applications for registration in the rf zone was suspended on July 15 following the introduction of tighter rules for mass media.

“During the first 20 minutes, more than a thousand domain names were registered, including about 300 for mass media,” Andrei Vorobyov, public relations director of RU-Centre, Russia’s biggest registrar of domain names, said.

The Coordination Centre for TLD .RU said only mass media registered before May 12, 2010 could get an address in the “.rf” domain zone. The decision was made after the Federal Service for Supervision in Mass Communications and Information Technologies had registered a considerable increase in the number of applications for registration of electronic mass media with names containing the “.rf” element. The service decided it was cybersquatting.

“The registration price is expected to decrease to the standard level of 600 roubles by the end of the year,” RU-Centre said.

Priority reservation of websites in the “.rf” domain zone began on November 15, 2009. Preference was given to holders of rights and government agencies in order to protect them from Internet fraud. The first websites for government needs appeared in the Russian-language section of the Internet on May 13.

Commercial companies’ websites started operating in the “.rf” domain zone from May 25.

The Coordination Centre said the delegation of the domain names had become possible after the start of the operation of the “.RF” domain zone itself. New domain names in the “.RF” zone will be delegated to those commercial companies that have gone through the process of priority reservation and trademark verification.

“Delegation is a technical process that can take some time. After its completion, a domain can start operating in the Cyrillic ‘.RF’ zone,” the Coordination Centre said.

Minister of Mass Communications Igor Shchegolev said earlier that priority reservation of domain names had been extended for commercial companies till autumn.

“A number of problems arose during the reservation of names for commercial companies. In particular, it turned out that some write the names using both Cyrillic and Latin characters. This complicated the work of registrars considerably, and priority reservation rules had to be changed several times,” the minister said.

Another problem impeding the introduction of Cyrillic domain names is search engines. “Search engines do not recognise Cyrillic characters. Something has to be done about that. We are working on this problem now,” he said.

Russia is the first country to have received a country code top-level domain on the Internet.

Over 11 mln Muscovites take part in national population census in

http://www.itar-tass.com/eng/level2.html?NewsID=15669574&PageNum=0

11.11.2010, 04.31

MOSCOW, November 11 (Itar-Tass) -- A total of 95 percent of Moscow’s population, or 11.7 million people, took part in the national population census held on October 14-25, 2010.

“The final figure will be known in April 2011,” Moscow Deputy Mayor Valery Vinogradov said on Wednesday, November 10.

Vinogradov said Muscovites had been more active this time than during the previous census in 2002. “The activity of people increased. Almost 20 percent of people came to the census stations in Moscow, while in the rest of the country this figure is 4-5 percent,” he said.

“We are thankful to the census personnel of more than 47,000 people, including policemen, social sector workers, police support volunteers, and others who helped us with this challenging work,” Vinogradov said.

The main phase of the census was held on October 14-25. “The census was conducted in strict compliance with the schedule,” Rosstat deputy head Irina Zbarskaya told Itar-Tass earlier.

In some remote areas, the census started on March 1 and will continue till December. The census was also extended for several days in two districts of the Krasnodar Territory because of a devastating flood.

Population census will be extended up to December in several Russian regions having territories that are hardly reachable due to climatic conditions, remoteness, and the lack of transport infrastructure. These include the Far North, mountainous, steppe and taiga territories in the republics of Altai, Buryatia, Dagestan, Karelia, Komi, Yakutia, and Tyva, in the Baikal, Kamchatka, Krasnoyarsk and Khabarovsk territories, in the Amur, Arkhangelsk, Irkutsk, Kemerovo, Magadan, Murmansk, Sverdlovsk, Tyumen, and Yaroslavl region, in the Jeweish Autonomous Region, the Nenets, Khanty-Mansi, and Chukotka Autonomous Areas.

Rosstat is confident that the census has justified its motto: “Everyone is Important for Russia!” This is borne out by interim data announced by Rosstat officials in the middle of the campaign. As for October 19, around 70 million people had been registered, which is about half of the country's population.

This is the second census in the history of modern Russia. The previous one was held in 2002. According to that census, the population of the country was 147 million. Rosstat says now there are 141.9 million people in the country.

The first information on Russia's population will be summarised in April 2011, the final results will be available in the fourth quarter of 2012 and published by the end of 2013. For the first time Rosstat will post the data on its official website for free access.

The overall budget of the census is around 17 billion roubles.

Russia joins executive board of UN Womenhttp://english.ruvr.ru/2010/11/11/33229219.html

Nov 11, 2010 00:38 Moscow TimeRussia has joined the executive board of the new United Nations structure on gender equality and the empowerment of women, the new structure is called "UN Women". During the voting, Russia was supported by 46 out of 54 states. All in all, the board includes 41 countries, including Ukraine, Kazakhstan, Estonia and Hungary. 

The new structure is headed by the former Chilean President Michelle Bachelet, reports ITAR-TASS. The UN General Assembly made the decision to establish it on July 2nd. It will be in charge of women's issues and gender equality issues.

ICJU head calls for journalist congress after attack on Russian reporterhttp://english.ruvr.ru/2010/11/11/33250430.html

Nov 11, 2010 10:20 Moscow Time

Secretary General of the International Confederation of Journalists’ Unions, Russia, Ashot Dzhazoyan has called for an emergency congress of the journalist community following the attack on the Russian reporter Oleg Kashin.

 “Government and law enforcement officials should be invited to the congress,” Dzhazoyan said in an interview.

He welcomed a proposal to tighten punishment for attacks on journalists but complained that in most cases the attackers go unpunished.

Investigators to renew journalist attack casehttp://en.rian.ru/russia/20101111/161287059.html

10:17 11/11/2010

Russian Investigative Committee head Alexander Bastrykin ordered a new probe into a 2008 attack on a Russian journalist, a committee spokesman said on Thursday.

In November 2008, Mikhail Beketov, the editor-in-chief of the Khimkinskaya Pravda newspaper, was severely beaten by unidentified attackers. He is now severely brain damaged and confined to a wheelchair.

The case was frozen in mid-September because investigators were unable to identify and charge any suspects.

MOSCOW, November 11 (RIA Novosti) 

‘Mandela Moment’ Awaits Russia in Yukos Trial: Julian Rimmer http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aSwMofSAWQow

Commentary by Julian Rimmer

Nov. 11 (Bloomberg) -- The jury is out, or at least it would be if there was one. Fascinated or appalled, Russia and the world await the verdict in the latest trial of Mikhail Khodorkovsky, the former owner of Yukos Oil Co. His fate now lies in the hands of Judge Viktor Danilkin.

Few doubt the court’s independence of thought will be compromised by the Kremlin and how it decides to handle this cause celebre. Khodorkovsky, who was sentenced in 2005 to nine years in a Siberian labor camp for fraud and had his prison time reduced by one year on appeal, has become a focal point for liberal dissent in Russia and critical opposition abroad.

Government officials are desperate to be rid of the former oligarch, whose vast wealth and increasing political influence led to his arrest in 2003 after a falling-out with then President Vladimir Putin. Whatever course of action they take, he won’t go away quietly. The judge is scheduled to begin handing down his verdict on Dec. 15.

Should they free Khodorkovsky, it’s unlikely he would maintain airwave silence. If, as Khodorkovsky predicted in his closing statement to the court, he is sentenced to an additional six years on embezzlement and money laundering charges, he will symbolize something deeply troubling about modern Russia.

President Dmitry Medvedev doesn’t need his legal background to be aware that the judicial process throughout the “Affair Khodorkovsky” has been less than satisfactory. He also should know that Russia may be facing a “Mandela moment” of sorts.

Fight for Freedom

The analogy to Nelson Mandela, who was imprisoned for 27 years under South Africa’s apartheid regime, may seem like a stretch. There are no similarities in the path they trod to incarceration, and the causes they championed were diametrically opposed. Mandela was fighting for freedom from a racist government. Khodorkovsky was mostly concerned with personal enrichment and is hardly viewed as a flower of liberty.

But the two cases illustrate defining moments for two nations that struggled to adopt democracy and the rule of law.

At this stage, Khodorkovsky poses a nuisance to Putin, as is evident from the prime minister’s reaction every time he is asked about the case. Yet if prosecutors succeed in imprisoning Khodorkovsky and his co-defendant, Platon Lebedev, for another term, their profile will undoubtedly be raised.

Martyr Status

Supporters of the defendants have been courting the Western media and ensuring Khodorkovsky receives mostly sympathetic press. These days, Russian leaders no longer have the option of eliminating someone in Siberia, and they will be wary of conferring martyr status on the former oil tycoon. They must also consider the prospect that they may have to go through the whole travesty again when his next parole is due. Khodorkovsky can’t be gagged indefinitely.

His case also serves as a political barometer to investors in Russia. At this juncture, the government can’t afford to alienate international capital through another public-relations disaster. At a price/earnings ratio of less than 10, Russian stocks trade at a hefty discount, compared with 12.5 for Turkey and 14 for Brazil. The nation aims to plug its budget deficit with the help of an ambitious $50 billion privatization process that will require the support of global fund managers.

Unusually for currencies considered viable for the carry trade that has characterized emerging-market investment, the ruble has fallen 2 percent against the U.S. dollar this year, and Russia’s economic recovery has been more sluggish than its trading partners. Russia also fell eight places in Transparency International’s 2010 Corruption Perceptions Index to rank 156th (alongside Tajikistan and Kenya). This is hardly the direction President Medvedev meant to take his country.

Back to Gulag

Russia must tackle these issues, and dispatching Khodorkovsky back to the gulag will only intensify international criticism, jeopardizing Russia’s modernization program. Sending him on a long walk to freedom may be galling for Putin, but compromise may be unavoidable.

The furor over another conviction would surely cast a cloud over the presidential election campaign for 2012 and overshadow Medvedev’s efforts to project a better image for Russia. He has taken up the cause of modernizing Russia, just like Peter the Great did; has shaken hands with world leaders; posted messages on Twitter; and lifted weights with California Governor Arnold Schwarzenegger. He also launched the high-tech research hub of Skolkovo, near the capital, and sacked Moscow Mayor Yury Luzhkov, often viewed as the embodiment of Russian cronyism.

Soccer Bid

Mindful of the fillip given to Brazil’s economy when that country won the right to host the 2014 soccer World Cup and the 2016 Olympic Games, Medvedev and Putin have enthusiastically endorsed Russia’s bid to host the 2018 World Cup. The event would provide a boost to national self-esteem, but it’s hard to see this happening with the backdrop of renewed hostilities with the Western media over Russia’s most notorious prisoner.

There are signs of late that the kopek has dropped and that the Russian leadership has grasped the importance of international public relations. The stage management of Khodorkovsky’s second prosecution has been as clumsy as his first one. It is doubtful if Khodorkovsky will ever be proven unequivocally guilty of anything, except perhaps hubris.

The South African regime once viewed Mandela as a terrorist. Now they think of him as a savior. It’s too much to think the same could ever be thought of Khodorkovsky but a politically savvy display of leniency might be the catalyst for a softer, hopey-changey feel to government in Russia.

For the most high-profile casualty of Putin’s refusal to brook dissent it may be a long walk to freedom or a long walk back to Siberia. It’s a long walk somewhere.

(Julian Rimmer is a trader at CF Global Trading in London. The opinions expressed are his own. His firm or clients may own or trade securities discussed in this column.)

To contact the writer of this column: Julian Rimmer at jrimmer1@bloomberg.net

To contact the editor responsible for this column: James Greiff at jgreiff@bloomberg.net

Last Updated: November 10, 2010 19:00 EST

Russia’s legal mirehttp://www.ft.com/cms/s/0/3ef2e918-ed03-11df-9912-00144feab49a.html#axzz14xaZ183V

Published: November 10 2010 20:52 | Last updated: November 10 2010 20:52

Supporters of Russia’s ruling “tandem” of Vladimir Putin and Dmitry Medvedev often complain that the west is unfair in criticising its democratic record. Quietly, some suggest Russia is not yet ready for full democracy. Free elections might return liberals who would take the country back to 1990s-style disorder, or nasty nationalists. Russians must be protected from themselves.

Yet perhaps the most pernicious failing of Russia’s current system is that while many Russians may feel better off than a few years ago, they cannot feel protected. Last weekend’s vicious beating of the journalist Oleg Kashin, his skull, jaw, leg, and fingers smashed with an iron bar, is the latest of many distressing illustrations.

A corrosive combination of what Mr Medvedev has termed “legal nihilism” and corruption means Russians cannot feel safe that law enforcement authorities will protect them from harm. Or, if they do suffer harm, that the legal system will enable them to

secure justice or redress. Journalists cannot feel safe doing their jobs. Tycoons cannot feel safe from possible state expropriation, smaller business owners from corporate raiding – often by the police. Expectant mothers cannot feel safe that they will be able to give birth without demands for a bribe if they want an anaesthetic.

Senior Russians point out that similar problems, sadly, are found in many other countries, including its fellow Brics. But Russia’s nominal per capita income is more than twice that of China, eight times that of India. Its lack of legal protections is arguably the biggest factor separating it from the more prosperous nations whose ranks it aspires to join. It may also harm Russia’s prospects of making that transition. It is surely at least one of the factors why Russia’s stock market trades on a hefty discount to other big emerging markets. It may be a reason why foreign direct investment is not picking up, post-crisis, as quickly as the government would like.

All that makes the lack of progress on legal reforms – in spite of the pledges of both Mr Medvedev and, earlier, Mr Putin (who promised a “dictatorship of laws”) – perplexing. The likely conviction of former Yukos chief Mikhail Khodorkovsky next month on new embezzlement charges, described even by former senior officials as absurd, is proof of that. Yet the rule of law is not an abstract value. Until Russians – not just journalists but all citizens – start feeling a bit safer, investors will never feel entirely safe either.

Blood money rejected in 'golden gun' assassinationhttp://www.thenational.ae/news/uae-news/courts/blood-money-rejected-in-golden-gun-assassination

Awad Mustafa

Last Updated: Nov 11, 2010

DUBAI // The family of the murdered Chechen warlord Sulim Yamadayev will not seek blood money or take any legal action against the two men convicted of involvement in the assassination, a court was told yesterday.

MH, 37, an Iranian groomsman for the Chechen president Ramzan Kadyrov, and MJ, 32, a Tajik national, were sentenced to life in prison in April for aiding and abetting the murder and possessing the gold-plated 9mm Stechkin APS pistol believed to be the murder weapon.

On appeal, the public prosecution asked the court to implement Al Qasas, the capital retributive punishment under UAE law. Al Qasas, however, also gives the victim's family the right to pardon the perpetrators and reduce the sentence imposed by the court. 

Lawyers for the convicted men presented a declaration to Dubai Court of Appeals yesterday, signed by the Yamadayev family executor, the dead man's brother Isa Yamadayev.

The declaration said the family relinquished their right to retributive punishment in any criminal or civil claim related to the case, and are not pursuing any financial compensation or blood money from anyone involved, including suspects still sought by Interpol.

The document will be translated from Russian to Arabic and added to the case file in court at the next hearing on December 8.

Sulim Yamadayev was a former Chechen rebel commander who changed sides with his four brothers in 1999 and joined pro-Moscow militias. Two of his brothers were murdered in 2003 and 2008, and Sulim was shot dead in the basement car park of his home at Jumeirah Beach Residence on March 28 last year.

Dubai police have accused Adam Delimkhanov, a prominent Russian MP and cousin of President Kadyrov, of ordering the killing. Interpol has issued arrest warrants for seven Russians, including Delimkhanov.

amustafa@thenational.ae

Russian Press at a Glance, Thursday, November 11, 2010http://en.rian.ru/papers/20101111/161286104.html

08:10 11/11/2010

POLITICS

This summer's Russian-U.S. spy scandal was the result of betrayal by a Russian intelligence officer. Investigative reporting.

(Kommersant)

President Dmitry Medvedev will hold an Internet conference with Russians.

(Nezavisimaya Gazeta)

Right Cause, which styles itself as a liberal opposition party, has become the first party to officially support President Dmitry Medvedev's candidacy for a second term in 2012. Party co-founder Georgy Bovt said Wednesday that the decision reflects the country's political reality.

(Moscow Times)

The Republican Party that won last week's midterm elections to the U.S. Congress will block any initiatives from President Barack Obama. This could not only freeze the healthcare reform but also fold Obama's policy of "resetting" relations with Russia.

(Kommersant)

BUSINESS

Russian phone retailer Euroset is preparing for an IPO in London, three investment bankers and one company manager said. The IPO could be held at the London Stock Exchange in 2011 and involve some 30% of the company's stock. The final decision will be made by November 20.

(Vedomosti)

British lighting equipment producer Abacus has announced plans to build a plant in St. Petersburg next year. Abacus is "looking at how we can support the Winter Olympics in Sochi," said Andrew Morris Richardson, chairman of the board of Abacus Russia and a board member of British Abacus.

(Moscow Times)

English could become the only language for communication between traffic controllers and pilots for non-military Russian flights, said Alexander Neradko, head of the Federal Air Transportation Agency. Currently, both Russian and English are used for radio communication at the country's international airports, while the rest only use Russian.

(Moscow Times)

Russia hopes to join the World Trade Organization next year, presidential aide Arkady Dvorkovich said.

(Vedomosti, Nezavisimaya Gazeta, Rossiiskaya Gazeta)

The European Union plans to spend €1 trillion ($1.4 trillion) on diversification of energy supplies by 2020. The EU's energy strategy could strip Russia of part of its sales market but experts say the EU has little chance of implementing it.

(Vedomosti)

SOCIETY

City Hall's website crashed Wednesday after Mayor Sergei Sobyanin published his long-awaited plan to fight Moscow's notorious traffic jams. The plan in particular proposes

barring trucks from the city during daylight hours. Experts say this will only result in shortages of goods and price hikes.

(Moscow Times, Vremya Novostei, Vedomosti)

The Investigative Committee's top department was assigned on Wednesday to handle the case of the attack on Kommersant reporter Oleg Kashin, who remains in a drug-induced coma, as suspects singled out by the media denied involvement.

(Vedomosti, Kommersant, Moscow Times, Nezavisimaya Gazeta)

Russian Prime Minister Vladimir Putin has banned parents from paying for efforts to repair and equip schools because there is a special federal target program to deal with the issue.

(Kommersant)

OIL & GAS

Bulgaria's Cabinet on Wednesday approved a proposed joint venture with Russian energy giant Gazprom to run the Bulgarian section of the planned South Stream pipeline that will run across the Black Sea. The agreement envisions a 50-50 partnership between Gazprom and Bulgarian Energy Holding and is to be signed during Prime Minister Vladimir Putin's visit to Sofia on Saturday.

(Vremya Novostei, Moscow Times)

Gazprom's sales to South Korea should pull even with supplies to major European buyers like France by 2017 as the Russian gas export monopoly turns its attention toward burgeoning Asian markets, Gazprom chief Alexei Miller said Wednesday.

(Moscow Times, Vremya Novostei)

IT

Registration of ordinary users in the Cyrillic Internet domain (.рф) will start at midday Thursday.

(Rossiiskaya Gazeta)

November 11, 2010 09:50

Third man suspected of role in Krasnodar mass murder detained – sourcehttp://www.interfax.com/newsinf.asp?id=201094

MOSCOW. Nov 11 (Interfax) - Police have detained the third man suspected of involvement in killing 12 people in the village of Kushchyovskaya, the Krasnodar territory, last weekend, a law enforcement source told Interfax.

"One more local has been detained under an investigation into the criminal case dealing with the mass murder in Kushchyovskaya," he said.

Two of the detainees were earlier convicted for committing serious crimes, he said.

Interfax has yet to immediately obtain official confirmation of this information.

Va

November 10, 2010Spy Sandal Version 2.0

http://www.russiaprofile.org/page.php?pageid=International&articleid=a1289408649

By Tom BalmforthRussia Profile

For Countries of Georgia’s Size with Enemies the Size of Russia, Soft Power Swipes Like a Well-Timed Spy Bust Are a Useful Weapon The recent bumper crop of Russian spy busts reaped a fresh harvest on Friday with the arrest in Georgia of a 13-man spy ring, accused of passing military intelligence to the Russians. Moscow dismisses the charges as political theater, which Tbilisi has no reputation for shying away from. Total fabrication does seem far-fetched, but whatever the truth, the bust could squeeze an old pressure point in U.S.-Russian relations ahead of two key world summits and in the wake of the crossroad U.S. congressional elections.  Thirteen spies, including four Russian citizens and a number of Georgian air force pilots, were arrested after the ring was infiltrated by a Soviet-trained spy, and are being detained in Tbilisi for leaking military intelligence to Russia for years, the Georgian Interior Ministry said Friday.  Russian Foreign Minister Sergei Lavrov dismissed the arrests as a “provocation.” In a statement on November 5, the Foreign Ministry accused Georgian President Mikheil Saakashvili’s regime of “chronic anti-Russian spy-mania,” saying that the bust was made to stoke anti-Russian hysteria at home and was especially timed to derail the upcoming

OSCE Summit in December. While not denying Saakashvili’s predilection for political theater, analysts could not agree that the spies were simply fabricated. “It looks awfully serious,” said one Western expert on the region based in Tbilisi who requested anonymity. “They name people and most of them are Georgian citizens. And they happen to be air force pilots. I don’t think it looks tremendously flattering for the Georgian government to have to arrest seven of its own air force pilots.”  Alexander Rondeli, the president for the Tbilisi-based Georgian Foundation for Strategic and International Studies, agreed. “You cannot invent something about this many people. And there are still more to come: I think there is another installment of this serial yet. They were all recruited when the Russian army was still in Batumi. These are not today’s people – they are the old cadre. Why invent something if it exists?” he asked. The New York Times cited an estimate from the Georgian Interior Ministry that there were 20,000 active KGB agents in Georgia when the Soviet Union collapsed, and they have been difficult to weed out.  In various gleeful interviews since Friday, Saakashvili has praised the strength of his counterintelligence forces and emphasized the waning power of Russia’s foreign intelligence services. Russia’s print press is touting a possible spy swap with Georgia similar to the one that took place between America and Russia after the espionage saga with Anna Chapman et al. Moskovsky Komsomolets today named three possible Georgian spies who are serving time in Russia for alleged espionage in the North Caucasus. 

But meanwhile, predictably bellicose rhetoric has ensued from Russia. “This is a very serious situation, and those who have undertaken this last provocation in Georgia should recall very clearly that Russia does not abandon its citizens when they are in trouble,” Russian lawmaker Konstantin Kosachev told Interfax, referring unambiguously to the pretext on which Russia went to war with Georgia just over two years ago. Moscow stubbornly refuses to admit that those detained are its spies, and is demanding (unsuccessfully so far) consular access to them. But Russia really flew off the handle because of the timing of the bust, ahead of the key OSCE Summit in Astana on December 1, which is expected to focus on the South Caucasus peace resolution process in Nagorno-Karabakh. Russia evidently suffers a blow to its credibility as it goes into the summit bearing allegations of spying on its South Caucasus neighbor. To that extent Georgia has landed another soft-power blow to Russia only weeks after it infuriated Moscow by offering a visa-waiver to Russia’s North Caucasians.  “A small country is only able to use soft power, to use diplomatic channels. It’s diplomacy. We are practically at war with Russia because Russia did not fulfill its obligations of the post-war plan,” said Rondeli, referring to the ceasefire terms negotiated by French President Nicolas Sarkozy in the wake of the August war. “Then on Georgian

territory we had this operation, so I think the Georgian government is just making use of it to attract attention to show that we are still under pressure,” he added.  The bust also comes at a key time for Russia’s transatlantic relations. In the recent congressional elections, the Republican Party won a small victory over the Barack Obama administration, which has championed improved relations with Russia. Writing today, Kommersant cites analysts who see Saakashvili’s move as trying to capitalize on the Republican comeback in the United States to “toughen the U.S. stance on Russia” and bring Georgia back into the foreground of U.S. foreign policy, as it was under Republican ex-president George Bush.  But most significantly, perhaps, Russia is due at the landmark NATO Summit in Lisbon in less than two weeks, where NATO Secretary General Anders Fogh Rasmussen will unveil the new strategic concept for the alliance. With Medvedev earnestly pushing for a new European security architecture, Moscow could do without spy briefings landing on the desks of western politicians, especially in relation to countries seeking, however improbably, membership in the alliance.  But it isn’t clear if this story will make waves internationally, if that indeed is what Tbilisi is strategizing on. Meanwhile in Georgia, Rondeli said, the local reaction was not one of surprise. “The people who got this news about the spy scandal are very calm. No one is surprised – it’s just normal. It would be strange if there wasn’t this kind of operation on our territory from the enemy. Enemy is a bad word, but that’s what it is,” said Rondeli.

EU to have another stab at forming untied energy front

http://www.businessneweurope.eu/dispatch_text13579

bneNovember 11, 2010

The European Commission unveiled its new vision for energy strategy over the next decade on November 10. The plan intends to implement a shared gas and electricity supply network, which it hopes would help countries coordinate energy policy, particularly in relation with key partners.

The plan evidently has its relations with Russia at the forefront of its mind in compiling the vision. To the delight of Moscow, over the last decade the EU has utterly failed to pull itself together sufficiently to present a united front in energy policy. Apparently referring to the physical hardwiring of energy infrastructure - although it could just as well be speaking of politics and economics - a European Commission statement read: "By 2015, no member state should be isolated."

Instead, despite many tough words, Russia has picked off targets at its leisure, with several individual EU members signed up to help build more infrastructure linking Europe to Russian energy suppliers, despite the bloc having an official strategy to reduce its dependence on Moscow.

Unveiling "Energy 2020", EU Energy Commissioner Guenther Oettinger called for investment of EUR 1tn over the next decade to "Europeanise energy policy," reports the BBC, with the cash coming from both public and private sources.

Correspondents note that the plan for a shared network is not new, but claim that it's significant that it is endorsed by Germany's Oettinger. The country has previously lobbied hard to weaken legislation, and has one of the closest relationships with Moscow amongst EU members.

Winner takes all?http://www.europeanvoice.com/article/imported/winner-takes-all-/69399.aspx

By Gary Peach11.11.2010 / 04:44 CET Lithuania, Belarus and Russia are competing to be the Baltic's energy power.

Over the past year, a high-stakes nuclear race has begun in the Baltic region, with the winner of the three-way competition – between Russia, Lithuania and Belarus – likely to emerge as the region's energy power.

All three know that a costly power surplus would result if three power plants were eventually built in the region. And so each understands that the quicker their project gets under way, the likelier they are to succeed.

Geographically, Russia and Belarus are pulling a flanking manoeuvre around Lithuania. Russia is building its plant in the Kaliningrad exclave, just 15 kilometres from Lithuania's western border, while Belarus has broken ground roughly the same distance from Lithuania's eastern border. Understandably, Lithuanians, who lament the EU-enforced closure of their Chernobyl-type reactor at Ignalina last December, are nervous, and they are demanding more environmental impact studies from both sides.

More importantly, the Lithuanians are balking at any attempts to court them. So when Vladimir Putin, Russia's prime minister, and Alyaksandr Lukashenka, Belarus's president, invited Lithuania to join their respective projects, Andrius Kubilius, Lithuania's prime minister, was adamant: his country, together with Estonia, Latvia and possibly Poland, will build its own plant in Visaginas, on the same site as the old Ignalina facility. Vilnius hopes to select a strategic investor by the end of this year. Construction could begin in 2012.

In the meantime, Russia is hoping to woo a Western partner – and thereby to discourage interest in Lithuania's plant. For Russia's state-controlled nuclear industry, this is an unprecedented privatisation. Rosatom, the country's integrated nuclear corporation, claims there is immense interest in the 49% stake available in the Kaliningrad plant; officials from Italy's Enel (probably prodded by Putin's friend in Rome, Silvio Berlusconi) have already visited the site.

Still, it will be a tough sell for the Russians. They are promoting the plant's export potential to an energy-deficit region, but Kaliningrad is isolated and Moscow has no guarantees that it will be able to export output via Lithuania or Poland. Other proposed routes – undersea cables to countries such as Germany and Sweden – are long shots. Therein lies the irony of Russia's project: to be successful, Moscow will have to woo the very country it is trying to marginalise.

Kubilius is well aware of this. He and Putin discussed their projects in March. “I asked him [Putin] ‘Where is the market for the electricity that will be produced in Kaliningrad?' He didn't answer,” Kubilius told European Voice in July. “I said that we're building our station for our market and our needs. Then I asked him again about his market, and [he] decided to switch the topic.”

Russia, of course, could shrug off Lithuania and cut a deal with Poland, which is looking to build its first reactor by 2022 as the country weans itself off coal. But this presents its own problems. No grid links the Russian exclave to Poland, so infrastructure outlays would be daunting. “My general conclusion on the other projects is very simple: if we are successful with our project, I don't know if those other ones will be implemented,” Kubilius said.

On a fast track in Kaliningrad

For now, Moscow is trying to gain the upper hand by fast-tracking construction of the Kaliningrad facility, the Baltic Nuclear Power Plant. And the pace is indeed unprecedented. The dual-reactor facility was announced in April 2008 and work began in February. That is less than two years from declaration to construction, far less than the worldwide norm of about five years.

To do that, Rosatom has all but ignored the residents of Kaliningrad, who are broadly against the idea of an atomic plant in their largely unspoiled, albeit underdeveloped, province. The company wants to meet a 2016 deadline for the first of the plant's two 1,150 megawatt reactors to be up and running, and apparently nothing will stop it.

Lithuania does not have the luxury of circumventing formalities as it seeks to regain its lost nuclear might. (Prior to Ignalina's shutdown, the only country in the world more dependent on nuclear energy was France.) All EU norms and regulations will have to be observed, particularly since Lithuania, which is still isolated from the European grid, is asking the EU to fund a grid connection with Poland and an underwater power cable to Sweden. Together with Estonia and Latvia, and with support from a majority of

Lithuanians, who are decidedly pro-nuclear, Vilnius is assured that its plant will have its market. If it finds an investor, it will aim for a 2018 deadline.

Belarus is the odd one out in the race. Since Russia will build the plant, and finance it, Moscow can always find a reason to delay completion. This is already taking place. The two sides have argued over price, infrastructure and sales of electricity, and Minsk has had little choice but to give in to Russia's demands. And since relations between the two countries are at an all-time low, after trenchant criticism of Lukashenka by Dmitry Medvedev, Russia's president, there is no certainty that Belarus's 2,000 megawatt facility will ever be built.

Rosatom, of course, would be happy to build the plant, which has a tentative 2016 launch date, if it has assurances that investments will be returned. The ultimate decision, however, will be political. The facility will probably become another carrot that Moscow can dangle before Minsk as the two countries quarrel over everything from oil prices to a customs union.

Gary Peach is a journalist based in Latvia.

National Economic Trends

Euroclear Link May Generate Ruble Demand ‘Wave,’ Citigroup Sayshttp://www.businessweek.com/news/2010-11-11/euroclear-link-may-generate-ruble-demand-wave-citigroup-says.html

November 11, 2010, 3:24 AM EST

By Emma O’Brien

Nov. 11 (Bloomberg) -- Russian federal debt being traded on international platforms such as Euroclear would spur a “wave of demand” for the ruble as foreign investors gain access to the bonds, Citigroup Inc. said.

Euroclear Bank SA, which runs the world’s largest system for settling bonds, will begin a study on establishing a link with the Russian market in the next few weeks that could allow investors to buy and sell domestic notes without the need for a local trading account, according to Bart Wauters, the Brussels- based company’s Russia director. Foreigners would then be able to more easily buy the government ruble-denominated debt known as OFZs, Wauters said in a Nov. 2 interview.

“Penetration of real money accounts in the Russian OFZ markets is still tiny,” Luis Costa, an emerging-markets credit strategist for Citigroup in London said by e-mail today. “The

currency spillover can be huge in the ruble as it creates a new wave of demand for the currency.”

Opening access to the ruble debt of Russian companies currently not settled by Euroclear or Clearstream International SA, which together process the bulk of the world’s Eurobonds, would also bolster the currency, Costa said.

“One has to be long ruble,” he said, referring to positions traders place on a security when they expect it to strengthen.

The ruble climbed to a 2 1/2-week high against the dollar today, adding as much as 0.6 percent to 30.4675 in Moscow trading. It also strengthened versus the euro, gaining as much as 0.5 percent to 42.0550, the strongest since Oct. 13. OFZs due 2016 fell, pushing the yield up 3 basis points to 7.22 percent.

--Editors: Linda Shen, Peter Branton.

To contact the reporter on this story: Emma O’Brien in Moscow at eobrien6@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net.

Russia to cut budget deficit to 2.9 pct of GDP in 2013http://en.rian.ru/russia/20101111/161288298.html

11:45 11/11/2010

SEOUL, November 11 (RIA Novosti) - Russia is going to halve its budget deficit to 2.9 percent of GDP by 2013 in line with agreements reached at the G20 Group summit in South Korea, a Russian delegation source said on Thursday.

"The federal budget deficit is expected to stay within 3.6 percent of GDP in 2011, 3.1 percent of GDP in 2012 and 2.9 percent of GDP in 2013," the source told RIA Novosti.

The deficit could be partly cut through the government's exit from stimulus measures, the source said.

"At the same time, some stimulus measures will be continued, for example, state support on the labor market, interest rate subsidizing and measures to support the automobile industry, aerospace and other sectors," he said.

The government's program to raise the efficiency of budget spending until 2012 could also help reduce the budget deficit, the source said.

Merill Lynch subsidiary to organize sale of VTB's shares

http://www.rbcnews.com/free/20101111115527.shtml

      RBC, 11.11.2010, Moscow 11:55:27.The Federal Agency for State Property Management and Merrill Lynch Securities, Merrill Lynch's subsidiary, have signed an agency agreement on the organization of the sale of a 10- percent stake in VTB, the agency reported to RBC today.

      Merrill Lynch Securities must provide an assessment of the company's market price of shares (by hiring an independent appraiser) in the near future and provide the regulator with suggestions regarding buyers, the price for shares and other terms of the share purchase agreement.

      As reported earlier, Russian Prime Minister Vladimir Putin signed a government decree on November 2 appointing Merrill Lynch Securities as an agent for the sale of 10 percent of VTB's shares as part of the lending institution's privatization.

Trade Surplus Widens http://www.themoscowtimes.com/business/article/trade-surplus-widens/422208.html

11 November 2010

The country’s trade surplus widened to $10.4 billion in September from a revised $8 billion a month earlier as imports fell for the first time this year, the Central Bank said Wednesday.

Imports declined to $23.55 billion from $23.82 billion in August, the regulator said on its web site. Exports rose to $33.96 billion from $31.78 billion.

(Bloomberg)

September Trade Balance: a Short Respite, Yet No Clue to RUB

http://www.businessneweurope.eu/dispatch_text13579

VTB CapitalNovember 11, 2010

According to the CBR, Russia's monthly external trade balance rebounded to USD 10.4bn in October from USD 8.3bn in September.

Monthly exports jumped 6% MoM to USD 34bn and their annual growth even slightly accelerated to 18.1% YoY from 17.5% YoY. This was the first rebound in exports growth rate since it started falling from the hefty 64.4% YoY in February.

Monthly imports edged lower to USD 23.6 (1% MoM down) in September. Annual growth rate for imports dropped to 33.7% YoY from August's exceptional 53.2% YoY. At the same time, if we exclude the one-off effect of regulatory changes in the pharmaceutical sector, which pushed imports higher in August, September's data would reveal the acceleration in imports growth.

The September trade balance data does not help to explain the rouble's performance that month. With the USD 10.4bn trade balance, the current account surplus should have stood around USD 4-5bn, only marginally lower than it was in May-July. Hence, the rouble's weakness could have been only due to a large capital outflow, which prompted the CBR to sell USD 1.4bn to curb the rouble's depreciation.

With higher oil prices in October we think the trade balance that month was similar to the September figure even if imports continued rising. However, the capital outflow was likely even bigger as it prompted the CBR to sell USD 3.8bn to support the currency.

We expect this two-month capital outflow to shrink (either due to portfolio inflows in response to the new round of QE or on more active external borrowings by Russian banks) and reiterate our 29.30 USD/RUB forecast for the end of the year.

Aleksandra Evtifyeva

Weekly CPI accelerates to 0.2% w/w in November

http://www.businessneweurope.eu/dispatch_text13579

Alfa BankNovember 11, 2010

According to Rosstat, the first week of November saw CPI accelerate to 0.2% w/w after four weeks at 0.1% w/w. YTD consumer inflation is now 7.0%, in line with our FY10 forecast of 8.6%.

Although we noticed a slight acceleration in prices for dairy and bread a week ago, it was not strong enough then to increase overall weekly price growth. Now, however, this growth has intensified and affects a wider range of products, including sugar, vegetables and poultry. It looks as though consumer prices are being affected by the ruble exchange rate depreciation to the basket of 5% since September driven primarily by the 9% weakening to the euro, the key currency for Russia's imports. We expect CPI will grow

0.8% m/m in November followed by price growth of 0.9%-1.0% in December, which will bring the annual figure to 8.6% y/y in 2010.

Natalia Orlova

Duma committee approves oil and gas tax hikes

http://www.businessneweurope.eu/dispatch_text13579

VTB CapitalNovember 11, 2010

News: The Budget Committee of the State Duma yesterday recommended that the earlier government proposal to increase MET for oil and gas be approved at the first reading. According to the initiative, the base rate for oil MET is due to be increased 6.4% in 2012 and 5.4% in 2013. Meanwhile, the government intends to increase gas MET 61% in 2011, 5.9% in 2012 and 5.5% in 2013.

Our View: The decision is not final yet, but we believe the proposed reform is most likely to be approved, considering we have not heard any major arguments against the increase from the parties involved. Meanwhile, the proposed changes reflect only part of the reform which could also involve a partial reduction in export duties and the introduction of excess profit tax, as was proposed in October. The resulting effect would be largely neutral, although the final layout of the reform would only become clear in 2011. The increase in oil MET in 2012 would hit the profitability of the Russian oil majors by some $0.9/bbl (8%).

Meanwhile, as we estimated recently (see our Energy Watch: New Taxation at a Glance, of 3 November), approximately the same margin would be accrued as a result of introducing the proposed export duty cuts and profit-based taxation. This supports our general vision that the government is aiming to diversify taxation, rather than shift the effective tax rate for the oil industry. The gas taxation story is a bit different. The proposed change would increase the tax burden on the gas industry by some USD 1.8bn, with an effect on Gazprom's EBITDA of around 3%, and NOVATEK's of around 6%. As we wrote earlier, the tax sector is potentially more threatened by the taxation reform, since gas margins in Russia would be getting unjustifiably rich along with domestic price liberalisation. However, the currently proposed hike is still marginal, and largely expected, in our view.

Lev Snykov

Ministry of Finance proposes consumer finance draft law

http://www.businessneweurope.eu/dispatch_text13579

VTB CapitalNovember 11, 2010

News: Kommersant reported today that the Russian Ministry of Finance had proposed a draft law regulating consumer finance. According to the paper, the key changes will include the following:

- Within a week after a loan becomes overdue, the bank will have to notify the borrower by a registered letter.

- Bank will not be allowed to distribute banking cards by mail unless they cannot verify that the customer has personally or through his/her representative received the card.

- It will be prohibited to include additional services (such as insurance) into the credit agreement.

Our View: The draft law, if approved, will have a negative effect on the consumer finance sector, both increasing its costs and decreasing income by removing some fees and commissions. However, we note that state officials have been talking about the law since 2004. The timing of the draft law approval is uncertain. Moreover, we believe the draft law will be amended before approval, and the final provisions will have a significantly lesser effect on consumer banks.

Roman Luchkovsky

New law on express loans to be less profitable for banks, more secure for consumershttp://en.rian.ru/business/20101111/161288978.html

12:28 11/11/2010

MOSCOW, November 11 (RIA Novosti) - The Russian Finance Ministry has developed a draft law introducing new regulations for express loans making the procedure less profitable for banks and more secure for consumers, a Russian respected business daily said.

The ministry published on its website a draft law it has been developing since 2004, Kommersant said. "The existing legislation and procedure for consumer credit... did not take into account the internationally accepted specific rights of the borrower," the ministry said.

If the law is adopted, banks will have to meet a list of new requirements in procedures to issue loans, including notifying borrowers of overdue debts no later than one week after its occurrence and strictly through a registered letter.

"One letter with a notification costs some 30 rubles ($1), and if a market average delay is 10%, while a bank has some 5 million customers, costs of mail would be $ 500,000 per month, this is an incredible amount," a member of Renaissance Credit bank management Sergei Korolyov said.

However, the head of the International Confederation of Consumer Societies, Dmitry Yanin said some banks are intentionally not notifying borrowers for a long time so the size of the debt plus penalties and interest continue to grow.

Text notifications by phone or e-mail are not an option as the bank cannot prove that notice in court.

The draft bill also bans sending credit cards if it cannot be "unequivocally established that it [the card] was received by the borrower personally or by his legal representative."

"And this seems logical since one cannot determine whether the borrower received his card or not, some banks are starting to charge a fee for this, and an outstanding debt occurs without the knowledge of the potential beneficiary," a deputy chairman of Absolut Bank Emil Yusupov said.

Another restriction stipulated by the bill concerns insurance. Banks working with unsecured loans are required to exclude insurance from its agreements. "With mortgage and auto loans, insurance contracts are issued as separate documents, and with consumer loans, usually, this condition is included in the consumer credit contract, but in fact this is a fake insurance as the payment for insurance cases for such loans tends to be zero, so fees for insurance are an additional income source for banks," Yusupov said.

The level of rates and risks in the consumer finance sector will be largely determined by the degree of elaborating the legislation, which for several years proved controversial, leading to the delay in adopting the bill for more than six years.

Business, Energy or Environmental regulations or discussions

Kuzbassrazrezugol, Polyus Gold, Rosneft: Russian Equity Preview http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aHG4BNuzUJkE

By Jason Corcoran

Nov. 11 (Bloomberg) -- The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading in Moscow.

The 30-stock Micex Index slid 1.3 percent to 1,574.63 at the close in Moscow. The dollar-denominated RTS Index fell 1.3 percent to 1,637.50.

OAO Kuzbassrazrezugol (KZRU RU): Russia’s second-largest coal producer, plans to boost exports to Asia, Chairman Andrei Bokarev said in an interview in Seoul yesterday. Its shares added 0.3 percent to 35.6 kopeks on the RTS Stock Exchange.

OAO Polyus Gold (PLZL RX): Gold futures fell the most in three weeks, losing 1.6 percent to $1,388.10 per ounce as the dollar strengthened to the highest level in a month against the euro, eroding the metal’s appeal as an alternative asset. Polyus, the country’s biggest gold producer, lost 1.8 percent to 1,612.15 rubles on the Micex Stock Exchange.

OAO Rosneft (ROSN RX): Crude oil rose to a two-year high, adding as much as 1.4 percent to $87.89 per barrel after a report showed an unexpected decrease in inventories as imports declined and refineries bolstered fuel production. Rosneft, Russia’s largest oil producer, retreated 1 percent to 221.25 rubles on the Micex Stock Exchange.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Last Updated: November 10, 2010 22:00 EST

November 11, 2010 10:53

MICEX share-trading opens on upswing as oil prices risehttp://www.interfax.com/newsinf.asp?id=201110

MOSCOW. Nov 11 (Interfax) - Russia's MICEX Stock Exchange opened on Thursday with the MICEX index gaining 0.6% to 1584 points in early trading as oil prices worldwide continued to climb, and RTS-listed Russian oil pipeline company Transneft's (RTS: TRNF) prefs leading the growth pack.

By 10:31 a.m. Moscow time, the RTS index was also up - 1.12% to 1655.3 points - and most benchmark shares had posted early gains of within 1%.

VTB (RTS: VTBR) was up 0.9% on the MICEX, Gazprom (RTS: GAZP) had risen 0.6%, Gazprom Neft (RTS: SIBN) 0.7%, Norilsk Nickel (RTS: GMKN) 0.7% as well, Lukoil (RTS: LKOH) 0.5%, Polyus Gold (RTS: PLZL) 0.9%, Rosneft (RTS: ROSN)

0.7%, Rostelecom (RTS: RTKM) 0.4%, Sberbank of Russia (RTS: SBER) 0.7%, Surgutneftegas (RTS: SNGS) 0.2%,and Tatneft (RTS: TATN) 0.7%.

Transneft prefs were up 9.6% at 39,282 rubles per by 10:37 a.m. on Thursday, following their inclusion on the MSCI Russia Standard weighted 0.81%.

Stock in IDGC Holding, despite its unexpected non-inclusion on the MSCI Russia, was down 4.2%.

The MSCI Russia IMI includes shares in OJSC OGK-2 (RTS: OGKB) (weight 0.35%), Mosenergosbyt (RTS: MSSB) (0.05%), and Pharmacy Chain 36.6 (RTS: APTK) (0.07%). These shares were up from 1% to 2% on the MICEX Thursday morning.

The bank Vozrozhdenie's (RTS: VZRZ) shares bucked the trend, however, dropping 0.6%.

Cf

UPDATE 1-Russia's Transneft shares soar on MSCI Russia entry

http://af.reuters.com/article/energyOilNews/idAFLDE6AA0JV20101111

Thu Nov 11, 2010 9:21am GMT

* Oil pipeline monopoly surges 8 pct on surprise inclusion

* Power group MRSK left out once again, shares drop

(Adds analyst comment, detail, updates shares)

MOSCOW, Nov 11 (Reuters) - Preference shares in Russian oil pipeline monopoly Transneft (TRNF_p.MM) surged more than 8 percent on Thursday after the stock was surprisingly added to the influential MSCI Russia share index.

The company, responsible for transporting Russia's vast reserves of oil to the rest of the world, was the only change to the index following a biannual review.

The MSCI Russia index is used as a benchmark by emerging market investors worldwide.

The move came as a shock to the market, which had tipped regional power group MRSK (MRKH.MM) as the most likely candidate for inclusion due to increased liquidity. [ID:nLDE6A9233]

"MRSK, our first choice (for inclusion), was overlooked this time, probably as it was unable to meet the 50 percent relative liquidity requirement," analysts at Renaissance Capital said in a note.

MRSK had also been tipped for inclusion, again without success, ahead of the last two reviews.

Its shares were down nearly 4 percent at 0853 GMT.

Transneft, nearly 80 percent owned by the government, caused a flurry of excitement in the investment community earlier this year when it was included on an early draft of companies to be privatised by the state.

The company's management was against the sale of a stake however, and the plan was later dropped after it emerged that bond covenants prevented a change in the shareholder structure. [ID:nLDE69K0N2] (Reporting by John Bowker; editing by Maria Kiselyova and Hans Peters )

Russia's FSK says half year net profit up 60 percenthttp://in.reuters.com/article/idINLDE6AA09N20101111

MOSCOW | Thu Nov 11, 2010 12:57pm IST

MOSCOW Nov 11 (Reuters) - Russian power grid operator FSK (FEES.MM) said on Wednesday its half year net profit jumped nearly 60 percent to 12.6 billion roubles ($411.2 million), up from just under 8 billion in the same period last year.

The company is one of the headline names on a list Russia is seeking to privatise as part of a $60 billion fund-raising plan.

(Writing by John Bowker, Editing by Maria Kiselyova)

EuroSibEnergo to raise $1.5 bln in Asian IPOhttp://en.rian.ru/business/20101111/161287751.html

11:16 11/11/2010

MOSCOW, November 11 (RIA Novosti) - Russia's largest private energy company EuroSibEnergo plans to hold an Initial Public Offering (IPO) on the Hong Kong stock exchange to raise $1.5 billion, a source close to the placement told RIA Novosti on Thursday.

"The company intends to sell 25 percent of its shares. Next week the IPO lead managing banks will already start meetings with investors, but without the company's representatives," the source said, adding the company planned to increase its value to $6 billion after the IPO.

EuroSibEnergo refused to comment.

EuroSibEnergo to IPO in bid to fund Norilsk war?

http://www.businessneweurope.eu/dispatch_text13579

bne November 11, 2010

EuroSibEnergo, the power utility owned by Oleg Deripaska, plans to seek $1.5bn in an initial public offering in Hong Kong by the end of the year, Bloomberg reports. The plan is the latest attempt by Deripaska to raise much-needed money on Hong Kong's bourse, which offered huge support to the Rusal float at the start of the year in hope that it would

open the floodgates to Russian listings.

EuroSibEnergo plans to sell a 25% stake, a person familiar with the matter said, declining to be identified because the information hasn't been made public. The company will start meeting with potential investors next week, the source said.

Deripaska is still seeking cash to help with the huge debt burden accumulated during the financial crisis, and offer him ammunition in the fight over Norilsk Nickel. Just last week, Deripaska's En+ Group said that it had secured a $900m loan from state-controlled investment bank VTB Capital to complete the refinancing of debt, which allowed the group to regain control of a 25% stake in EuroSibEnergo that had been held by banks as collateral.

Selling EuroSibEnergo would raise money for Deripaska's cash-strapped En+ Group, but it remains unclear whether investors will have much appetite for the offering. Deripaska tried in May to list his small molybdenum miner, Strikeforce Mining and Resources (SMR), but investors rejected the share pricing, and the application to list was withdrawn without a prospectus for the heavily indebted mining company ever appearing in public, according to Deripaska basher John Helmer on his website 'Dances with bears'.

"This valuation looks a little bit expensive compared with its emerging-markets hydro-generator peers," said Alexander Seleznev, an analyst at UralSib. "An IPO would improve transparency because it would show the detailed accounts of both its main assets, IrkutskEnergo and Krasnoyarsk Hydro Power Plant."

The sale would be the second by a company controlled by Deripaska in Hong Kong this year. United Company RusAl, the world's largest aluminum producer, raised about $2.2 billion in January in the first IPO in China by a Russian company. It continues to trade below its IPO price.

With that poor performance added to the struggles of Russian floats which are not exposed to consumer spend so far this year, the chances of EuroSibEnergo's bid to list going the same way as SMR appear viable. However, Deripaska could be tempted to push it through at a lower price as he is currently trying to put together a bid to buy out rival shareholder Interros from Norilsk.

EuroSibEnergo sells more than half its electricity to RusAl and is Russia's second-largest hydropower producer after RusHydro. Deripaska owns EuroSibEnergo via the same EN+ Group holding company that holds his 48% stake in RusAl. EuroSibEnergo's profits could be crimped by Deripaska's need to ensure cheap electricity for his aluminium production line.

Evroset mobile phone retailer may sell 30 pct of shares in IPO on LSE in 2011http://en.rian.ru/business/20101111/161287591.html

10:57 11/11/2010

MOSCOW, November 11 (RIA Novosti) - Russia' largest mobile phone and small electronics retailer, Evroset, is preparing an Initial Public Offering (IPO) to place 30 percent of its shares on the London Stock Exchange (LSE) in 2011, Vedomosti business daily reported on Thursday.

The company will make a final decision on the IPO on November 20, the paper said.

Sources close to Evroset told Vedomosti that investment banks had preliminary valued the company at $2.5-3 billion while Artyom Sitnikov, partner of Financial Consulting Group, put it at $0.85-1.2 billion according to the number of the company's selling outlets and financial results. However, investors could give a premium for the company's shares during the IPO as Evroset will be the first Russian mobile phone retailer quoted on the LSE, the paper said.

Proceeding from the lowest estimate of $0.85 billion and net of the company's debt, the share package of Evroset co-owner Alexander Mamut, who holds 50.1% in the company, could cost $260 million, the paper said.

A representative of VimpelCom, another Evroset shareholder with a 49.9% stake and one of the country's top three mobile operators, told Vedomosti that the shareholders were still discussing the IPO issue.

Vedomosti quoted its sources as saying that Mamut could sell part of his stake on the stock exchange to make his holdings more liquid, while Mamut declined to comment.

Russian Technologies Corporation Eyes State's Stake in Apatit http://www.businessneweurope.eu/dispatch_text13579

AtonNovember 11, 2010

State_owned Russian Technologies (RT) is interested in the government's stake in Russian phosphate rock producer Apatit, Vedomosti reports today (11 Nov).

Russian Technologies first voiced its interest in the fertiliser industry last summer when it approached Deputy Prime Minister Igor Sechin and suggested creating a fertiliser champion based on Silvinit, Sibur and TolyattiAzot.

We remind readers that the state is considering a number of options with respect to its 25% stake in Apatit's common shares - the stake is already included in its privatisation plans for 2011_13. In addition, PhosAgro, which directly and through subsidiaries controls 49% of Apatit's voting shares, wants the state's blocking stake. If successful, PhosAgro would thus avoid the danger of finding a blocking shareholder in its core asset.

Bottom line We view the news as neutral for Apatit. On the one hand, RT does not have sufficient expertise in the fertiliser industry. On the other, we believe RT's attempt to gain a blocking stake in Apatit might push PhosAgro into offering the state a favourable valuation for Apatit to persuade the government to convert its holding into PhosAgro shares. This may be followed by a single share swap for Apatit's minority shareholders into PhosAgro. We note that if PhosAgro finds itself unable to exercise full control over Apatit, the company's position as Russia's largest phosphate_based fertiliser producer would be endangered.

RUSNANO and Plastic Logic Announce Agreement to Establish New Plastic Electronics Production in Russiahttp://www.businessneweurope.eu/dispatch_text13579

Press releaseNovember 10, 2010

Russian Corporation of Nanotechnologies and Plastic Logic Inc. today announced they have entered into an agreement to create Plastic Logic's second volume production facility for its next-generation plastic electronic displays and establish a plastic electronics industry in Russia. Under the terms of agreement RUSNANO intends to make a significant investment in the company, which is the global leader in the emerging field of plastic electronics, as part of a large-scale investment project.

"RUSNANO's investment will enable us to dramatically expand operations in support of volume production of our next-generation products, and to continue to advance our technology platform to deliver on our broader long-term vision"Plastic Logic said it will continue to house its core R&D facility in Cambridge, England, as well as maintain its commercial factory in Dresden, Germany and corporate headquarters in Mountain View, California.

Plastic Logic has developed broad and deep intellectual property in plastic electronics. Plastic electronics technology has many economic, manufacturing, form factor and environmental benefits, and will ultimately replace traditional silicon semiconductor glass-based display products in a variety of devices in the future. Plastic Logic's first application of the technology makes possible an amazingly thin, lightweight, robust and flexible active matrix display that is unmatched in the marketplace. The display is at the core of Plastic Logic's first commercial consumer electronics product, a next-generation electronic reader for business that is currently under development.

"The production facility for the next generation of plastic displays will become the first step to establish the new branch of a electronics industry in Russia. By the time of the launch, the Russian facility will be the world's most advanced fabrication plant in the plastic electronics industry," said RUSNANO Managing Director Georgy Kolpachev.

Founded in 2000 by researchers from the Cambridge University Cavendish Laboratory in the UK, Plastic Logic opened its first high-volume, state-of-the-art manufacturing facility in Dresden, Germany in 2008, where it will continue with production of the company's first commercial product.

"RUSNANO's investment will enable us to dramatically expand operations in support of volume production of our next-generation products, and to continue to advance our technology platform to deliver on our broader long-term vision," said Plastic Logic CEO Richard Archuleta.

"As a global company, we evaluated multiple countries for our expansion efforts and ultimately Russia offered the best strategic partnership opportunity," added Plastic Logic's CFO Rik Thorbecke. "Russia provides access to an enormous talent pool of scientists and engineers, and proximity to our European centers in Cambridge and Dresden. We have been very impressed with the caliber of the RUSNANO organization and, most importantly, its commitment to undertake the significant investment required to build a world-class volume production center capable of producing hundreds of thousands of units a month."

ABC opening Moscow office in major push   http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=291358

  Posted on » Thursday, November 11, 2010

MANAMA: Arab Banking Corporation (ABC) is opening a Moscow office on November 25, making it the first Arab bank to have a presence in Russia.

The Moscow office is run by ABC International Bank, the UK-based subsidiary of the Bahrain-based ABC Group.

The office aims to identify exporters and importers based in Russia, Ukraine and Belarus trading with the Middle East and North Africa (Mena) region and increase the group's share of trade and other business flows with the Mena.

"ABC believes that Russia offers considerable opportunities as a result of its dynamic economic development and historical relations with the Arab world," said ABC president and chief executive Hassan Juma.

"We believe that this is the right time for our group to have a presence in Russia," he added.

"Our new Moscow office is a great addition to our international network and a major step in deepening our understanding of the Russian market and to assist local banks and companies in doing business with the Mena," ABC International Bank chief executive Nofal Barbar said.

The bank yesterday announced a net profit of $1.6 million for the nine months ending September 30.

Net profit for the third quarter was $200,000 compared to a loss of $400,000 in the second quarter.

Operating expenses of $1.5m were slightly lower than the previous quarter of $1.6m.

Operating profit before impairment provisions improved 5pc to reach $2.6m.

Impairment provision in the third quarter was $2.4m, compared to $2.9m in the previous quarter.

Total operating income for the third quarter remained at the same level as the second quarter of $4.1m.

Shareholders' equity stood at $181m, compared to $171.5m at the half year.

The bank's capital base remains very strong with a capital adequacy ratio of 23.3pc, predominantly Tier 1, which totaled 23.1pc.

The bank's total assets declined to $1.24 billion from $1.29bn at June 30 mainly due to a decline in Murabaha receivables and Ijara assets.

"Despite a further de-risking of the balance sheet, ABC Islamic Bank reported an improvement in its operating profitability," said managing director Naveed Khan.

"The operating performance of the bank continues to show improvement from the previous quarter despite higher provisioning required for an old collateral linked exposure," he said.

"The capital base of the bank also remains strong with a Capital Adequacy Ratio greater than 23 per cent," he added.

Russia enters Formula 1 as company takes ‘significant stake’ in Virgin teamhttp://en.rian.ru/russia/20101111/161281966.html

03:05 11/11/2010

Russian sports car manufacturer Marussia Motors has acquired a "significant stake" in UK-based Virgin Racing to create a Russian Formula 1 team, Marussia's President Nikolai Fomenko said in an interview with RIA Novosti on Thursday.

“Now we can state with full certainty that we have our team in Formula 1,” said Nikolai Fomenko, one of four co-owners of Marussia Motors. “Of course, it was not an easy

decision for us. I’m not entitled to disclose the contract value, but it’s big money, believe me.”

The contract between Marussia Motors and Virgin Racing was signed in London on November 6.

The deal is the second attempt to create a Russian national team in Formula 1. In 2005, Midland group owned by Russian-born businessman Alex Shnaider attempted to create an F1 team, but after the unsuccessful debut in 2006, Shnaider sold the team to Dutch car manufacturer Spyker Cars NV.

The new team, which will be called Marussia Virgin Racing starting from 2011, will honor all existing contracts of Virgin Racing, including those with drivers Timo Glock and Lucas di Grassi, as well as with engine producer Cosworth.

The Russian company aims to make the team competitive in the coming years, after it earned no points during this season.

“This will prove that Russian high technologies are not only in the military and space industries, but also in the car making sector. And this will benefit the entire country,” Fomenko said.

The official presentation of the next season’s race car, which is currently being built at Virgin’s base in Britain, will be held in late January-early February in London. The car will also be presented in Moscow.

“We are actively participating in the creation of a Marussia Virgin race car for the next season and we have everything we need for that,” he said.

Fomenko also invited leading Russian companies to sign sponsorship contracts with the Russian team.

“So far, the company has made no steps towards [potential] sponsors and has not sought any help, though this may come in handy,” Fomenko said.

The announcement is the latest in a series of news, which demonstrates that the Russian leadership is taking a growing interest in Formula 1, which along with FIFA World Cup and the Olympic Games is in the top three of the world’s most popular sporting events.

Last month, Russia signed a multimillion dollar agreement with F1 to stage a Grand Prix near the Black Sea resort city of Sochi between 2014 and 2020. On Sunday, Russian Prime Minister Vladimir Putin tested his skill as a Formula 1 pilot, driving a race car for several hours at a speed of 240 km/ h (150 miles per hour) on a special track in the Leningrad Region in Russia's northwest.

This spring Russia’s first Formula 1 driver Vitaly Petrov made his debut competing for the Renault F1 team.

Fomenko said that he would like to see Petrov, who is unlikely to have his contract with Renault extended for the next season, as a Marussia Virgin Racing driver, but added that it was too early to speak about that.

“Today I am unable to provide him with a competitive car. And he needs to continue his career in a fast car. Just wait for one more season. Then everything will be clear,” he said.

MOSCOW, November 11 (RIA Novosti)

Russian carmaker to take over F1 teamhttp://www.ft.com/cms/s/0/00122716-ed00-11df-9912-00144feab49a.html?ftcamp=rss#axzz14xaoENVI

By Roger Blitz in London

Published: November 11 2010 00:02 | Last updated: November 11 2010 00:02

Virgin Racing, the Formula One team backed by UK entrepreneur Sir Richard Branson, is being taken over by a Russian sports car manufacturer, in a move highlighting the country’s interest in the global reach of the sport.

Marussia, set up by former racing driver Nikolai Fomenko, is buying up most of the stake bought less than a year ago by LDC, the private equity arm of Lloyds Banking Group.

Virgin remains part-investor in the team. Virgin Racing is one of three new outfits in this year’s F1 season and operates on a £40m ($64.4m) budget, which is one of the lowest of the 13 teams on the grid. Marussia said it is becoming the majority shareholder of Virgin Racing but declined to reveal the size of the stake or the amount it is paying.

The takeover comes a month after Russian prime minister Vladimir Putin signed a seven-year deal with Bernie Ecclestone, F1’s commercial director, under which the Black Sea resort of Sochi will join the Grand Prix circuit from 2014.

Andrey Cheglakov, a co-investor in Marussia, said: “We are showing to the world that we are ready to participate in such a highly regarded event as F1.”

He added that Marussia would seek permission to combine its brand with Virgin in the team name. “Virgin is a strong name worldwide and can get the attention of millions of people, but by combining the brands we can expect to gain better recognition for the team itself,” he said.

In a statement to be released on Thursday in Abu Dhabi, which on Sunday hosts the final grand prix of the season, Sir Richard will say the deal “cements our place on the F1 grid”.

Virgin Racing was formed last December by Yorkshire-based Manor Grand Prix, Virgin and Nick Wirth, an F1 technician. LDC is thought to have invested £10m in the team at the time.

Announcing its investment last year, LDC said “the prospects of healthy profits and return on investment are excellent”.

The three new teams – Virgin Racing, Hispania and Lotus – have struggled in their first F1 season, failing to pick up a single point. Mr Ecclestone said last week that the performances of the new teams were an embarrassment to the sport. LDC is retaining a “significant shareholding” in Virgin Racing.

Marussia, set up by Mr Fomenko in 2007, became an official sponsor of Virgin Racing in December. Mr Fomenko, who anchors Russian Top Gear, the TV programme, said F1 would be “a powerful marketing stage for our new company. We want want it to be a symbol of pride, self-belief and inspiration for the people of Russia”.

Mr Cheglakov said that Marussia would compete with Ferrari, Aston Martin and Porsche in the European sports car market and planned to sell 2,000 cars a year from 2013 or 2014, up to a fifth of which will be sold in Russia.

Additional reporting by Martin Arnold and James Allen in London

Fiat's Magneti Marelli expands in Russiahttp://www.businessweek.com/ap/financialnews/D9JDA9O81.htm

MILAN

Fiat's auto parts supplier and subsidiary Magneti Marelli says it has opened a new plant in Russia with the goal of becoming one of the region's major players.

The plant near the city of Ryazan, 200 kilometers (124 miles) southeast of Moscow, will make car rearlights and headlights, reaching a capacity of 2 million pieces annually for automakers in Russia, including Autovaz, Gaz and Sollers as well as Renault, Volkswagen and Ford.

It joins another Magneti Marelli lighting plant built nearby in 1995.

"Our goal is to become a leading player in the sector of automotive components in

Russia, the only market that is currently showing an upward trend in Europe and one of the most important ones at the global level," CEO Eugenio Razelli said in a statement Wednesday.

VTB Capital takes ECM title from Renaissance Capitalhttp://www.emergingmarkets.me/2010/11/vtb-capital-takes-ecm-title-from-renaissance-capital/

November 11, 2010

By Ivan Anderzhanov

VTB Capital was named the leading equity bookrunner in November for Russia and the CIS, outscoring Renaissance Capital,  acccording to data providers Dealogic and Thomson Reuters.

VTB took part in a total of 7 transactions so far this year, attracting an aggregate  amount of nearly $4.7bn for the clients, said Dealogic. The VTB Capital market share according to Dealogic is 14.63% while Thomson Reuters put its at 18.5%.

This year, VTB Capital has participated in key ECM deals, including IPOs for Mail.ru, О’Key, Russian Sea, Rusal, and second offerings for Synergia, LSR Group, rights issue for Deutsche Bank and TMK convertible bond issue placement.

Moscow rival Renaissance Capital has traditionally been the leading underwriter for equities in Russia and the CIS. VTB Capital, which is the leading underwriter for local debt and Russian eurobonds, now holds the crowns for both DCM and ECM.

For the Record http://www.themoscowtimes.com/business/article/for-the-record/422211.html

11 November 2010

RusAl is in talks with investors on a joint bid for Vladimir Potanin’s stake in Norilsk Nickel, RIA-Novosti reported Wednesday, citing a source familiar with RusAl’s plans. (Bloomberg)

Magneti Marelli, the auto-parts division of Fiat, aims to expand in Russia where it wants to become “a leading player,” chief Eugenio Razelli said Wednesday, during the opening of a lighting plant in Ryazan. (Bloomberg)

Yekaterinburg-based Urals Nickel, owned by Dmitry Baskov, plans to hold an initial

public offering and list its shares on MICEX, the company said Wednesday. (Bloomberg)

Raspadskaya will resume output at its main mine by the end of the year, chief Gennady Kozovoi said Wednesday, according to the Kemerovo regional administration. (Bloomberg)

Mitsubishi Heavy Industries, Sojitz and China National Chemical plan to build a $1.06 billion chemical plant in Russia, Nikkei English News said Wednesday. (Bloomberg)

Activity in the Oil and Gas sector (including regulatory)

Gazprom