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Russia 100430 Basic Political Developments RFE/RL: Russian, Ukrainian Prime Ministers To Meet In Sochi - Russian Prime Minister Vladimir Putin and Ukrainian Prime Minister Mykola Azarov will attend a meeting of an intergovernmental commission on economic cooperation in the Black Sea resort of Sochi. RIA: Russian, Ukrainian premiers to discuss joint energy, aviation, space projects - Russian Prime Minister Vladimir Putin will meet with his Ukrainian counterpart Mykola Azarov in Sochi on Friday to discuss joint projects in nuclear energy, aviation industry and space, the Russian government's press service said. Itar-Tass: Putin, Azarov to discuss economic cooperation Moscow Times: Medvedev to Attend Flashy Shanghai Expo RIA: Shanghai gears up for 2010 World Expo AFP: Iran sanctions may be 'unavoidable': Lavrov MID.ru: Transcript of Minister of Foreign Affairs Sergey Lavrov’s Interview with Russian Media Members, Strasbourg, April 28, 2010 RIA: Polish investigators look into four versions of presidential plane crash RUVR: Putin, Tusk discuss April 10 plane crash Today’s Zaman: Visa-free travel in our common interest, says Seleznyov News.az: Azerbaijan to investigate statements made by Russian co-chair in Khankendi - Azerbaijani Foreign Ministry to investigate statements made by Russian co- chair in Khankendi. Washington Post: Keeping criminal Russian diplomats out the U.S. Itar-Tass: Russia’s child ombudsman convinced about adoption deal with USA Reuters: U.S., Russia agree to forge new pact on adoptions Moscow Times: Russia Wants Right to Prosecute U.S. Parents

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Page 1: Russia - WikiLeaks · Web viewCurrent Russia's stock market index is half way between its all time high set on May 19, 2008 of 2487.92 and its five year low of 492,59 set on January

Russia 100430

Basic Political Developments RFE/RL: Russian, Ukrainian Prime Ministers To Meet In Sochi - Russian Prime

Minister Vladimir Putin and Ukrainian Prime Minister Mykola Azarov will attend a meeting of an intergovernmental commission on economic cooperation in the Black Sea resort of Sochi.

RIA: Russian, Ukrainian premiers to discuss joint energy, aviation, space projects - Russian Prime Minister Vladimir Putin will meet with his Ukrainian counterpart Mykola Azarov in Sochi on Friday to discuss joint projects in nuclear energy, aviation industry and space, the Russian government's press service said.

Itar-Tass: Putin, Azarov to discuss economic cooperation Moscow Times: Medvedev to Attend Flashy Shanghai Expo RIA: Shanghai gears up for 2010 World Expo AFP: Iran sanctions may be 'unavoidable': Lavrov MID.ru: Transcript of Minister of Foreign Affairs Sergey Lavrov’s Interview with

Russian Media Members, Strasbourg, April 28, 2010 RIA: Polish investigators look into four versions of presidential plane crash RUVR: Putin, Tusk discuss April 10 plane crash Today’s Zaman: Visa-free travel in our common interest, says Seleznyov News.az: Azerbaijan to investigate statements made by Russian co-chair in

Khankendi - Azerbaijani Foreign Ministry to investigate statements made by Russian co-chair in Khankendi.

Washington Post: Keeping criminal Russian diplomats out the U.S. Itar-Tass: Russia’s child ombudsman convinced about adoption deal with USA Reuters: U.S., Russia agree to forge new pact on adoptions Moscow Times: Russia Wants Right to Prosecute U.S. Parents Sacramento Bee: Giant Russian cargo plane to land in Stockton - Officials say a

Russian-made AN-124 is scheduled to land at Stockton Metropolitan Airport around 7 a.m. Friday.

Moscow Times: New York, Miami Routes Planned by Transaero RIA: Death toll in Dagestan blast rises to three - The number of people killed in

Thursday's blast in Russia's North Caucasus republic of Dagestan has risen to three as a civilian died in hospital on Friday, the Rossiya 24 TV channel said.

RIA: Dagestan car bomb equivalent to 100kg of TNT RUVR: Killed policemen in Dagestan helped prevent still bigger act of terror Reuters: Suicide bomber kills 2 in Russia's Dagestan – police Itar-Tass: Powerful explosion occurs in North Caucasus city - A powerful

explosion occurred at 22:50 Moscow Daylight Saving Time in the courtyard of a downtown apartment block in Nalchik, the capital of the North-Caucasian region of Kabardino-Balkaria.

RUVR: Car bomb injures 2 in Nalchik Interfax: Russian space industry needs private investments – official St. Petersburg Times: No Food, No Toilet In 10-Hour Police Raid Itar-Tass: Moscow to get second eternal flame Itar-Tass: Russia to re-launch caviar production in 5-7 years

Page 2: Russia - WikiLeaks · Web viewCurrent Russia's stock market index is half way between its all time high set on May 19, 2008 of 2487.92 and its five year low of 492,59 set on January

Moscow News: T-50 flies again - The fifth-generation PAK FA T-50 fighter jet continued its test flights near Moscow on Thursday.

The fifth-generation PAK FA T-50 fighter jet continued its test flights near Moscow on Thursday.

RBC: The Army will call on students after the second year of studies RIA: Russia fails to provide 'service with a smile' – survey Russia Today: 30 April, 2010 in Russian Newspapers

o Izvestiya: Europe faces a new financial crisiso Rossiyskaya Gazeta: The indivisible atomo Nezavisimaya: A customs project for Armenia

Moscow Times: Today in Vedomostio New Method for Measuring Cell Phone Safety o 75% of Russians Want to Work Abroad o New Clarifications Surrounding Permission to Build

Russia Profile: Pressing Fears - The Terrorist Bombings on the Moscow Metro Could Mean the Russian Media Gets Further Repressed to Subdue Spurious Extremism

Premier.gov.ru: Prime Minister Vladimir Putin meets with President of VTB Bank Andrei Kostin

Premier.gov.ru: Prime Minister Vladimir Putin meets with Minister of Transport Igor Levitin

Premier.gov.ru: Prime Minister Vladimir Putin tells journalists about his trip to the Franz Josef Land archipelago

National Economic Trends Moscow Times: Government Raises its GDP Growth Estimates Russia Profile: Springtime Cheers - Don’t be Fooled by Over Optimistic

Forecasts Based on Contradictory Figures

Business, Energy or Environmental regulations or discussions Reuters: Russian markets -- Factors to Watch on April 30 Bloomberg: Rosneft, Uralkali, Rushydro, KamAZ: Russian Equity Preview Bne: Russian banks predict RTS to top 2000 by end of the year Troika: Kostin asks Putin to cut interest rate on VEBs subordinated loan Reuters: Sberbank to take controlling stake in Vester RBC: Russia's top potassium producer reports plunge in net profit Reuters: Uralkali eyes potash revival after '09 profit falls-UPDATE 1 Bloomberg: UralChem Says It Cancels IPO on ‘Current Market Conditions’ Telegraph: Uralchem 'pulls float', reports say Reuters: UPDATE 1-Russia's LSR placement priced at bottom of range Interfax: LSR Group places GDRs at $8.5 per issue in SPO, company to raise

$398 mln – source Reuters: Russian bank VTB ups Polyus Gold stake to 8.29 pct Moscow Times: Wal-Mart Rethinking Entry Strategy

Page 3: Russia - WikiLeaks · Web viewCurrent Russia's stock market index is half way between its all time high set on May 19, 2008 of 2487.92 and its five year low of 492,59 set on January

Interfax: FAS recognized the "Troika" guilty - One of the leading asset management companies - CC "Troika Dialog" puts its customers in error. This is the conclusion of FAS, recognizing "Troika" in violation of law on competition.

S&P: Russian Corporation of Nanotechnologies Outlook Revised To Stable On Strong Ongoing Support; Affirmed At 'BB+/B/ruAA+'

Portfolio.hu: Hungary Richter ups stake in Russian partner Protek via listing, IPO Environmental Expert: Russia Strategic Infrastructure Leadership Forum

Announces Project Presentations Worth $50 Billion Panarmenian: Eurasian Development Bank to allocate $90mln for reconstruction

of Pulkovo airport Telegraph: Pernod sales pick up in US and Russia RusBizNews: Italian modernization of the Urals

Activity in the Oil and Gas sector (including regulatory) Reuters: Russia's Tatneft 2009 net profit jumps sixfold Reuters: Russia's Surgut Q1 net profit slumps 88 pct y/y Portfolio.hu: Hungary Orbán set to mend bout fast between MOL and "the

Russian company with an unpronounceable name" Moscow Times: Slavneft Finishes Refinery Oil and Gas Eurasia: Sibneftemash To Work With Baker Hughes, Maip Oil Tools

and CGH RBC: Kovykta’s future almost settled - TNK-BP’s stake will be bought out with

Gazprom and Rosneft dividends

Gazprom Troika: Gazprom replaces 187% of proven gas reserves in 2009 Easy Bourse: Gazprombank Follows Horrid '08 With $1.9 Billion Profit –

Vedomosti Troika: Gazprom Energoholding CEO comments on electricity assets

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Full Text Articles

Basic Political Developments

RFE/RL: Russian, Ukrainian Prime Ministers To Meet In Sochihttp://www.rferl.org/content/Russian_Ukrainian_Prime_Ministers_To_Meet_In_Sochi/2028729.html

April 30, 2010 SOCHI, Russia -- The prime ministers of Russia and Ukraine meet today for a second time this week amid signs of a rapprochement between the two countries.

Russian Prime Minister Vladimir Putin and Ukrainian Prime Minister Mykola Azarov will attend a meeting of an intergovernmental commission on economic cooperation in the Black Sea resort of Sochi.

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The two leaders last met less than a week ago, when Putin visited Ukraine just days after the two countries agreed a deal to extend the lease of a Russian naval base in Ukraine in exchange for a 30 percent cut in the price of Russian gas.

Ukraine's pro-Western opposition has denounced the deal as selling out its national interests.

Compiled from agency reports

RIA: Russian, Ukrainian premiers to discuss joint energy, aviation, space projectshttp://en.rian.ru/exsoviet/20100430/158811165.html

04:1730/04/2010

Russian Prime Minister Vladimir Putin will meet with his Ukrainian counterpart Mykola Azarov in Sochi on Friday to discuss joint projects in nuclear energy, aviation industry and space, the Russian government's press service said.

This is the fifth meeting between Putin and Azarov in the past two months.

The sides will discuss an intergovernmental agreement under which Russia would provide almost 100% financing for the construction of two power units at the Khmelnitsky Nuclear Power Plant in Ukraine and a long-term contract to supply nuclear fuel for Ukrainian NPPs.

Ukraine has its own uranium reserves but lacks production capacities for uranium enrichment and nuclear fuel production.

Russia and Ukraine plan to boost cooperation "in extracting uranium on the Ukrainian territory, first of all, to hold a technical and economical evaluation of the Novokonstantinovsky deposit."

The talks are in line with the last week's presidential announcement that Ukraine will increase uranium output and build a factory for nuclear fuel production.

The two states also plan closer cooperation in the aviation industry, including joint production of An-140 airliners, An-148 regional jet aircraft, An-70 transport aircraft and Tu-334 short-haul passenger airliners, and resuming serial production of the An-124 heavy-lift transport aircraft.

The two premiers will also discuss naval cooperation, including joint projects in building and repairing ships and offshore structures for continental shelf works.

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Russia and Ukraine also plan to jointly "develop and modernize carrier equipment, provide launch services and develop spacecraft controls," the Russian government's press service said.

MOSCOW, April 29 (RIA Novosti)

Itar-Tass: Putin, Azarov to discuss economic cooperation

http://www.itar-tass.com/eng/level2.html?NewsID=15080833

30.04.2010, 06.38

SOCHI, April 30 (Itar-Tass) -- Russian and Ukrainian Prime Ministers Vladimir Putin and Nikolai Azarov, will meet on Friday for the fifth time in the past two months to discuss bilateral economic cooperation that is booming since President Viktor Yanukovich came to power in Ukraine.

The Russian government press service said the meeting “will be a new step to develop political dialogue and resolve economic issues on a mutually advantageous basis.”

Russian trade turnover with Ukraine nearly doubled in January-February against the same period of 2009 and comprised 4 billion 394.5 million dollars.

Russia agreed to provide a major discount on gas prices to Ukraine, while Ukraine agreed to extend the lease of its naval base in Crimea by the Russian Black Sea fleet for 25 years up to 2042.

The press service said the prime ministers will consider the Russian proposal to set up a joint holding “to integrate atomic industries and power engineering, including generation, machine building, and nuclear fuel cycle.”

The parties will also continue drafting a long-term contract on nuclear fuel supplies to Ukrainian power plants after 2010. Russia also wants to build two nuclear reactors at Khmelnitskaya NPP in Ukraine.

“It is planned to mount activities in the sphere of uranium production on the Ukrainian territory,” the press service said.

Aircraft construction is another cooperation guideline and the two countries plan to jointly produce An-140, An-148, An-70 and Tu-334 planes and resume serial production of An-124 Ruslan heavy-duty transport aircraft.

Moscow Times: Medvedev to Attend Flashy Shanghai Expo http://www.themoscowtimes.com/business/article/medvedev-to-attend-flashy-shanghai-expo/405130.html

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30 April 2010Combined Reports

President Dmitry Medvedev will join a gaggle of foreign leaders at the opening Friday of the Shanghai World Expo, the ruling Chinese Communist Party's latest extravagant use of money as it seeks to brandish its power through flashy spectacle.

The Chinese government is spending billions of dollars on the expo — local media estimate some $58 billion if infrastructure is included — to transform an area larger than Monaco into a giant exhibition site.

Determined to make a good impression of its own, Russia for the first time in 30 years constructed a pavilion for the expo instead of renting one from the host country.

Medvedev will join French President Nicolas Sarkozy, South Korean President Lee Myung-bak and others at the opening ceremony, which could rival Beijing's 2008 Olympics in terms of scale and cost.

All this for an event that has fallen off the international radar in recent years and typically has been used by less prominent cities and regions, like Spain's Zaragoza and Japan's Aichi, to boost their profile.

But for China's 1.3 billion people, powering an economy likely to soon overtake Japan as the world's second largest, the hoopla and glitz of the expo will be cast as another display of the Communist leadership's power and prestige.

"One goal the Chinese government hopes to accomplish by hosting grand spectacles such as these is to rebrand China as a thoroughly modern and strong country, dispelling any lingering image of it as the 'sick man of Asia,'" said Jeffrey Wasserstrom, professor of history at the University of California, Irvine.

"These spectacles help distract people from other concerns, while also working very much like stimulus packages, as the construction and destruction needed to get them under way keeps many people employed," he said.

Chinese President Hu Jintao, meanwhile, dropped by Russia's pavilion on Thursday, signing the guestbook and praising the theme of the pavilion — children — as important because children are the future.

"Those who visit the pavilion will see the wisdom and intelligence of the Russian people," Hu said, RIA-Novosti reported.

Russia's pavilion is sun-shaped and has 12 white-and-gold towers that symbolize the 12 months, RIA-Novosti said. The pavilion's 6,000 square meters will showcase Russia's recent scientific and economic achievements, the report said.

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The 2010 World Expo, titled "Better City — Better Life," will run from May 1 to Oct. 31 and is expected to attract 70 million visitors.

(Reuters, MT)

RIA: Shanghai gears up for 2010 World Expohttp://en.rian.ru/expo2010/20100430/158812374.html

07:5630/04/2010

The official opening ceremony of the International Expo 2010 fair will be held on Friday on the banks of the Huangpu River in China's Shanghai.

The exhibition will run until October 31 in Shanghai under the motto "Better City — Better Life," representing the common wish of the whole humankind for a better living in future urban environments. A total of 189 countries and 57 international organizations are to take part. Over 70 million visitors, including heads of states, are expected to attend.

"We are convinced that we will hold a successful, beautiful and impressive expo," the head of the organization committee, Yan Xiong, said.

The details of the opening ceremony are unknown, but it was said that it would last about two hours and include an indoor ceremony, short performances and an outdoor fireworks show.

The cost of the show was not disclosed, but it is believed to cost "much less" than the Beijing Olympics opening, estimated at $100 million.

Among the high-ranking guests at the ceremony are presidents of France and Malta, head of the European Commission Jose Manuel Barroso and other world leaders. The Russian delegation is led by Industry and Trade Minister Viktor Khristenko.

The fair will open for visitors on Saturday. The Russian Pavilion will start its work early on Saturday by hoisting a national flag.

Russia is constructing its Expo pavilion for the first time in 30 years, rather than renting one from the host country. The sun-shaped pavilion will comprise 12 white-and-gold towers symbolizing the 12 months, and occupy an area of 6,000 sq. m.

"Many believe Russia is a closed country, which keeps its secrets. We wanted to show that it is transparent, friendly and open to the whole world," the general commissioner of the Russian section, Vladimir Strashko, said.

About 30,000 visitors daily and about 7 million visitors in total are expected to visit the Russian section. The Day of Russia will be held in Shanghai on September 28.

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According to some reports, China spent $58 billion for preparing the Shanghai Expo.

SHANGHAI, April 30 (RIA Novosti)

AFP: Iran sanctions may be 'unavoidable': Lavrovhttp://www.google.com/hostednews/afp/article/ALeqM5hbPRM87oN-xoYHLfhUFeZxaYyOgA

(AFP) – 12 hours ago

STRASBOURG — Russia's Foreign Minister Sergei Lavrov admitted on Thursday that Iran was a "difficult partner" and warned targeted sanctions over its contested nuclear programme may become "unavoidable".

"Iran is a difficult partner and we are disappointed (it) has not responded constructively to the proposals reiterated" by world powers over its nuclear ambitions, Lavrov told the Council of Europe's parliamentary assembly.

"There are few examples where sanctions have produced truly positive results," said the Russian minister, whose country is considering whether to back further United Nations sanctions against Iran.

In Iran's case, however, "they may be unavoidable, and that will be up to the Security Council to decide," Lavrov said.

"In that case, the only goal must be to incite Tehran to solve all the problems surrounding its programme... and not to use sanctions to suffocate Iran, which would create a humanitarian crisis," he said.

The Russian diplomat firmly ruled out using force against Tehran, after a Swedish lawmaker at the Council raised the possibility of armed intervention.

"To say that now we have to resort to force against Iran, that to me seems absolutely unacceptable," Lavrov said.

Russian President Dmitry Medvedev this week launched one of his strongest attacks on Iran's conduct in the nuclear crisis, accusing it of behaving irresponsibly.

Medvedev has repeatedly said Russia, a veto-wielding UN Security Council permanent member, does not rule out further sanctions against Tehran but they should not hurt the wider population.

Russia is building Iran's first nuclear power station in the southern city of Bushehr and has long held relatively robust relations with the Islamic Republic.

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But Moscow has turned impatient since Tehran failed to accept a UN-brokered nuclear fuel swap deal involving Russia aimed at defusing the standoff.

The United States and other Western countries accuse Iran of seeking a nuclear weapon. Russia has never backed this claim but said Iran needs to build trust with the international community.

MID.ru: Transcript of Minister of Foreign Affairs Sergey Lavrov’s Interview with Russian Media Members, Strasbourg, April 28, 2010http://www.ln.mid.ru/brp_4.nsf/e78a48070f128a7b43256999005bcbb3/c8233cacfade7804c32577140054290c?OpenDocument

562-29-04-2010

Question: How can you comment upon the statements by Acting Moldovan President Mihai Ghimpu equating the communist regime with the fascist regime as well as claiming that Russia should pay Moldova compensation “for the years of Soviet occupation”?

Lavrov: Unlike a number of countries, Russia considers Moldova as a sovereign independent state. Not all of Chisinau’s neighbors do so, and some in the West do not even regard the Moldovans as a nation. In Mr. Ghimpu’s place I would be concerned about just that, rather than trying to use the sacred holiday to all of us, including the Moldovans thousands of whom died in the war against fascism, in order to express such insinuations.

Question: President Viktor Yanukovych of Ukraine, speaking in PACE, said that the 1930s famine had not been a genocide against the Ukrainian people. In this connection, in your view, what are the prospects for the adoption of an appropriate PACE resolution?

Lavrov: The terrible famine stemmed largely from those decisions of the USSR leadership that affected the Russians, Ukrainians, Kazakhs, Belarusians, and many other peoples in the Soviet Union. This is simply an objective historical fact. And that Ukrainian President Yanukovych has confirmed it, should not be perceived as a sensation.

One might, by a considerable stretch of imagination, regard this as a sensation, what with the anomalous stance of the previous Ukrainian leader, who treated the mid-30s famine solely as genocide against the Ukrainian people, although such was not and could not be the case. I think this is just a normal, rational, objective approach restored towards history. I believe PACE cannot fail to heed

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this objective fact. Hopefully there will be no attempts to further politicize the famine theme, instead of us all grieving for the multinational victims of that period.

Question: How will you comment on the situation with the preparation of the report of David Wilshire and Matyas Eorsi?

Lavrov: In this regard, I will note that both David Wilshire and Matyas Eorsi visited the region. They were in Georgia and in Abkhazia. Their trip to South Ossetia did not take place because the rapporteurs had planned to enter there from Georgia. In this regard, the South Ossetians, and that is their sovereign right, had invited the delegation to enter the republic from Russia via the Roki Tunnel. This is a very painful issue for them. For nearly two years now, they have been wary of attempts by representatives of international organizations to enter the country through the same road through which Georgian troops entered the republic. Such wounds bleed very long and are very difficult to heal. Many in Tskhinval still do not know anything about the fate of their loved ones, because the Georgians do not give back those missing.

We very much appreciate the fact that the rapporteur from the UK, David Wilshire, met in Moscow with the representative of South Ossetia. That the Georgians started making a fuss because of the fact that this meeting took place at the Embassy of South Ossetia in Moscow is, in my opinion, inhumane because to listen to all sides is the bounden duty of a rapporteur.

With regard to the report, as far as I know, the Hungarian and English rapporteurs presented documents which are at odds with each other. Because they had a common mission, and a common mandate, such a discrepancy did not allow PACE to adopt an agreed decision and the question was postponed until the next session. I think this is reasonable. At the same time such a turn of events will in no way affect today’s situation in the region. This topic has now been discussed for almost two years.

Of course, being a CoE member, we cannot avoid answering the questions put before us. But our stand has long been known. As you know a number of PACE members are attempting to politicize the situation and raising the issue of occupation. This is not an occupation. It is a situation where, from the standpoint of Russia and some other countries, two independent states have emerged, with which we have allied relations and whose security we will provide based on interstate agreements. I take this philosophically: I think that those wanting to figure things out have done so. If members of the European

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parliamentary diplomacy intend to continue the debate on this issue – we have something to say.

April 29, 2010

RIA: Polish investigators look into four versions of presidential plane crashhttp://en.rian.ru/world/20100430/158810784.html

03:0630/04/2010

Polish Prosecutor General's office said on its website it was looking into four preliminary versions of the recent air crash that killed President Lech Kaczynski.

Polish president Lech Kaczynski, his wife, and an official Polish delegation of senior officials died when the plane taking them to a ceremony to pay tribute to some 20,000 Polish officers murdered by Soviet secret police crashed near west Russia's Smolensk on April 10.

The Prosecutor General's office said in a communique on Thursday that "a technical failure," "a crew mistake," "poor flight management and security" and "third party's actions," such as a terrorist attack or pressure on the crew, were seen as possible causes of the crash, in which 96 people were killed.

Previous media reports ruled out a malfunction in one of the plane's systems.

One of the most popular versions is that Kaczynski ordered the pilot to land in thick fog, although air traffic controllers gave no permission to land and recommended the crew to divert to another airport.

Poland's chief prosecutor Andrzej Seremet earlier said that there was no proof that the pilot of the ill-fated plane was pressurized into performing a landing in poor weather conditions.

The communique said there was no evidence confirming pressure on the crew at the moment, but "it was too early to rule out this version."

Russian investigators, experts and Polish specialists are jointly investigating the causes of the deadly crash and Polish military prosecutors have opened their own probe.

Russian Prime Minister Vladimir Putin and his Polish counterpart Donald Tusk discussed in a phone conversation the investigation into the plane crash and expressed satisfaction about the level of cooperation between the Russian and Polish investigating bodies.

MOSCOW, April 30 (RIA Novosti)

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RUVR: Putin, Tusk discuss April 10 plane crashhttp://english.ruvr.ru/2010/04/30/7129233.htmlApr 30, 2010 07:33 Moscow TimeIn a telephone exchange on Friday Prime Minster Vladimir Putin discussed with his Polish colleague Donald Tusk the ongoing investigation of the April 10 place crash near Smolensk that killed Polish President Lech Kaczynski, his wife and 94 dignitaries and crew. The Polish delegation was on its way to memorial ceremonies in Katyn for thousand of Polish military officers executed by Stalin’s secret police in 1940.

Today’s Zaman: Visa-free travel in our common interest, says Seleznyovhttp://www.todayszaman.com/tz-web/news-208875-102-visa-free-travel-in-our-common-interest-says-seleznyov.html

Discussing a possible visa waiver agreement between Russia and Turkey, former Russian State Duma Speaker Seleznyov said: ‘It is positive for people and for businessmen. There is such a demand. Russian politicians have seen that, too,’ adding that it would boost trade as well as tourism between the two countries

Lifting visa requirements between Russia and Turkey would be in the best interest of both countries, Gennadiy Seleznyov, former speaker of the State Duma, the lower house of Russia’s parliament, has said.

In an interview with Today’s Zaman on Wednesday, Seleznyov stated that he expects visa requirements between Russia and Turkey to be lifted during Russian President Dmitry Medvedev’s visit to Turkey next month, a move he believes will be to their mutual advantage.

Seleznyov, in a visit to the Today’s Zaman headquarters in İstanbul, assessed different aspects of a possible visa waiver agreement. “It is positive for people and for businessmen. There is such a demand. Russian politicians have seen that, too,” he said, adding that it would boost trade as well as tourism between the two countries. “We always talk about tourism, but it is a significant step for the business world, too. Remember we have a large trade volume. There are products Turkey has not found yet in Russia,” he noted.

In response to a question of how the Russian view of Turkey has evolved over time, Seleznyov drew attention to the immense changes that took place before and after the Cold War era. “That Turkey was an active country in NATO was not, of course, pleasing to Russia. It started to review its policies after the dissolution of the Soviet Union. No one could have imagined that there would be a Russian representative at NATO headquarters in Brussels. Perceptions have changed in the world,” he said.

Seleznyov also spoke about how his view of Turkey has changed. He said a Turkish firm won the tender to repair the Russian White House, which had housed Russia’s parliament, in 1994 and that nobody had confidence that they could finish on time.

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However, the Turkish firm was very good at the work and its quality amazed all the disbelievers. “We had assumed Turkey was a third world country before then,” Seleznyov said.

The former politician also discussed Russian political priorities. He said they included “more democracy, more respect for human rights and successful implementation of a free market economy,” and added that in the aftermath of the global financial crisis, Russia has embarked on a strategy with an emphasis on economic and technological development.

He made predictions regarding the future of Russian politics, too. On the issue of who the next president of the federation would be, Seleznyov said he believed Medvedev would serve another term as president but would later be succeeded by Prime Minister Vladimir Putin.

‘Turkish schools take care of students’

Responding to a question on the possible contribution opening more Turkish schools in Russia would make to Turkish-Russian relations, Seleznyov praised the schools. “Education is something the entire world should value. One of the reasons I came to Turkey was the international schools Turks have established in Russia. I came and observed the system here in Turkey. The thing I liked the most was that teachers of those schools are providing their students with good manners even at universities and that they really take care of them. As far as I know, a Turkish school is now about to open in Moscow and another is on its way for St. Petersburg. I hope this project will be a good one for education in Russia,” he noted, adding that private education in his country was not as developed as it is in Turkey.

He also stated his belief that one day Russian schools would be opened in Turkey as well. “Time forces us to do that. We will see them being opened,” Seleznyov noted. He said he visited Fatih University and learned that there was a Russian language and literature department there. “That made me very happy,” he said.

30 April 2010, FridayCELIL SAĞIR  İSTANBUL

News.az: Azerbaijan to investigate statements made by Russian co-chair in Khankendihttp://www.news.az/articles/14512

Fri 30 April 2010 | 05:20 GMT

Azerbaijani Foreign Ministry to investigate statements made by Russian co-chair in Khankendi.

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Russian Co-chair of the OSCE Minsk Group Igor Popov met with leader of Nagorno Karabakh separatists in Khankendi Bako Sahakyan, reports Armenian news agencies that the diplomat said the Nagorno Karabakh Armenians should participate in the negotiations in certain stage.

Popov noted that he had discussed socio-economic issues of Nagorno Karabakh as well as construction of airport in Khankendi with Sahakyan.

Answering question on this issue, sprokesman for Azerbaijani Foreign Ministry Elkhan Polukhov stated that the statements spread on behalf of the Russia’s new co-chair would be investigated.

APA

Washington Post: Keeping criminal Russian diplomats out the U.S.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/29/AR2010042904613.html

Friday, April 30, 2010

ONE THING the Obama administration's "reset" of relations with Russia hasn't changed is Moscow's imperviousness to accountability for criminal offenses by its government at home and abroad. The regime of Vladimir Putin rivals those of Iran or Syria for murders or acts of terrorism outside its borders, including hits in London, Vienna and Dubai; it also has persecuted or confiscated companies with Western owners or shareholders. In no instance has it accepted responsibility. Russian hit men charged by foreign police and prosecutors brazenly serve in the national parliament.

That's why the State Department would do well to take up the recommendation of Sen. Benjamin Cardin (D-Md.), who this week proposed the cancellation of U.S. visas for 60 Russian officials involved in a particularly shocking series of crimes. The case concerns an American-born investor, William F. Browder, who was expelled from Russia without due process or even an official explanation. Subsequently, Russian holding companies he had set up were seized by a group of police and security officials and used to obtain $230 million in bogus tax refunds from the Russian government.

When a young Russian lawyer hired by Mr. Browder, Sergey Magnitsky, tried to expose the fraud, he was arrested by some of the same officials involved in the crime, held without trial in one of Russia's worst prisons, tortured and denied medical treatment in an attempt to force him to drop his charges. His death last November in a prison hospital created a brief uproar in Russia; President Dmitry Medvedev, who has sought to project a reformist image, pledged to get to the bottom of the matter.

In the end Mr. Medvedev did little. A few prison officials were dismissed, and a law was changed so that persons accused of tax evasion -- the charge used against Mr. Magnitsky -- cannot be imprisoned. But there have been no criminal charges, and the senior officials

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who perpetrated or abetted the theft and the subsequent abuse of Mr. Magnitsky remain untouched. According to Mr. Cardin, they include "high-ranking officials from the Russian Interior Ministry, Federal Security Service (FSB), General Prosecutor's office, Federal Tax Service, Federal Prison Service and judges in the Russian court system."

In a letter to Secretary of State Hillary Rodham Clinton, Mr. Cardin, who co-chairs the U.S. Helsinki Commission, points out that a 2004 presidential proclamation prohibits corrupt foreign officials and their family members from entering the United States and obligates the State Department to take action against them. By pulling the visas of the 60 officials and their families, the Obama administration could send a crucial message to Moscow: "Reset" doesn't mean impunity.

Itar-Tass: Russia’s child ombudsman convinced about adoption deal with USA

http://www.itar-tass.com/eng/level2.html?NewsID=15080633&PageNum=0

30.04.2010, 03.03

MOSCOW, April 30 (Itar-Tass) -- Russia’s ombudsman for children’s rights Pavel Astakhov is convinced a bilateral adoption agreement with the United States will be signed and said the document will be discussed in detail in mid-May.

The draft will be handed over to the Americans shortly. “I believe the agreement will be done,” Astakhov’s press service quoted him as saying on Thursday following talks with a U.S. delegation.

The ombudsman said the U.S. delegation “treated with understanding” the Russian call to sign the agreement.

Talks will resume on May 12 in Moscow “to discuss each provision of the agreement. Then we shall know how much time we need to sign the document and have it ratified both by Russia and the United States,” Astakhov said.

The agreement is based on the Hague convention for adoptions and envisages the creation of a single body in charge of adoption and subsequent control of adopted children. Astakhov said adoption will go only through accredited agencies except for adoption by relatives. Adopting parents will have to pass corresponding training and psychological tests.

Astakhov said the agreement will facilitate adoption as it will lift existing obstacles. “It shall be a mutually beneficial agreement,” he said.

Russia suspended the adoption process after a U.S. woman return her adopted Russian son back home all alone on a transaltlantic flight. “I refuse him,” read the note carried by the boy who was adopted six months before.

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Astakhov’s press service quoted Russian education ministry data as saying 18 Russian adopted kids died abroad, and the United States accounted for 17 deaths.

Besides, Astakhov said U.S. adoption agencies did not submit regular reports on the fate of 240 Russian children. “They simply do not provide the reports and thus violate their own legislation,” he said.

Reuters: U.S., Russia agree to forge new pact on adoptionshttp://in.reuters.com/article/marketsNewsUS/idINN2925518120100429

Fri Apr 30, 2010 1:52am IST

* State Department spokesman says meeting "fruitful"

* Adds will take time to reach a deal with Russia

By Andy Quinn

WASHINGTON, April 29 (Reuters) - The United States and Russia will seek a new deal to govern adoptions of Russian children by American families after a scandal that saw a U.S. mother return her adopted Russian son, the State Department said on Thursday.

Russia slammed the brakes on new U.S. adoptions after 7-year-old Artyom Savelyev arrived alone at a Moscow airport this month with a note from his U.S. adoptive mother disowning him, prompting an outcry in both countries. [ID:nLDE63823R]

Department spokesman P.J. Crowley said U.S. and Russian officials had a "fruitful" meeting in Moscow on Thursday with the aim of getting the adoption process back on track, but added that it would take time to reach a deal.

"We have committed to pursue an agreement that strengthens the processes of adoption of Russian children and American families," Crowley said at a news briefing.

"We hope that as we work through this issue that we can reassure the Russian government we share their aims, we want to see these adoptions continue and we share the interest in Russia in protecting these children," Crowley said.

He said further discussions were set for May 12, and that it appeared Russia's go-slow policy on new U.S. adoptions would remain in place for the time being.

Russia is the third largest source of foreign adoptions to the United States with 1,586 in 2009, according to the State Department.

But Russians were horrified by the Savelyev case, which President Dmitry Medvedev denounced as a "monstrous deed" and Foreign Minister Sergei Lavrov called "beyond immoral."

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Savelyev was adopted from an orphanage in Russia's Far East in 2009. After six months, his adoptive mother sent him back with a one-way ticket to Moscow and a note saying he was unstable and violent.

Crowley said Russian officials had assured the U.S. team that there was no blanket freeze on U.S. adoptions, but that it was clear that some were being held up.

"It is our understanding coming out of this meeting that the process is still open. But I think we clearly are conscious of the fact that that process may well slow down for a period of time," he said. (Reporting by Andrew Quinn; Editing by Xavier Briand)

Moscow Times: Russia Wants Right to Prosecute U.S. Parents http://www.themoscowtimes.com/news/article/russia-wants-right-to-prosecute-us-parents/405152.html

30 April 2010By Alexandra Odynova

Russia will demand the right to file charges against U.S. parents who abuse or neglect adopted Russian children during treaty negotiations aimed at unfreezing adoptions after a U.S. mother returned her 7-year-old adopted son to Russia.

A U.S. State Department delegation held initial talks about the treaty with Russian officials at the Foreign Ministry on Thursday, and the main negotiations are scheduled for May 12, the office of the children's ombudsman said.

It was unclear when an agreement might be reached.

Russia froze adoptions after Artyom Savelyev was sent unaccompanied on a plane to Moscow on April 8 with a note fr om his U.S. mother that said he was violent and psychologically unfit.

Children's ombudsman Pavel Astakhov said Thursday that the Russian side would make sure that the treaty better protected the rights of adopted children and allowed Russian prosecutors to bring criminal charges against U.S. parents who were abusive or negligent.

"The agreement will create a legal basis for the continuation of international adoptions and, most important, empower Russia to demand that the adoptive parents observe the legal rights and interests of the child, up to the criminal prosecution of violators," Astakhov said, Interfax reported.

Russian negotiators will also seek the creation of a single agency to handle all issues relating to the transfer of Russian children to foreign parents, including follow-up

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questions about the well-being of adopted children, Astakhov said in a statement on his office's web site.

"This agreement will take into account the rules of the Hague Convention, but it will significantly expand its borders," Astakhov said, referring to the Hague Convention on Intercountry Adoption, an international agreement between signatory countries on best adoption practices.

He said the treaty should stipulate that all adoptions are carried out through accredited agencies, except in cases wh ere the child was adopted by relatives, and that the adoptive parents receive psychological testing and training on child-rearing.

He said Russia's demands have been compiled in a draft treaty.

The head of the visiting U.S. delegation, Michael Kirby, told journalists Thursday that the delegation had not received the Russian draft treaty but stressed that both sides would strive to reach an agreement.

The negotiations were initially scheduled for April 19 and 20 but were postponed after a volcanic eruption in Iceland suspended many trans-Atlantic flights.

U.S. Secretary of State Hillary Clinton raised the issue of child adoptions during a telephone conversation with Foreign Minister Sergei Lavrov earlier this week, U.S. State Department spokesman Philip Crowley said Wednesday. He did not elaborate.

Some 3,500 Russian children are currently in the process of being adopted by about 3,000 U.S. families, according to the Joint Council on International Children’s Services, which represents many U.S. agencies engaged in international adoption.

U.S. families have adopted more than 14,000 children from Russia within five years, including 1,500 last year.

Russia has long called for the treaty on adoptions, pointing to the deaths of 17 children at the hands of their U.S. parents in recent years, but the United States only responded after the freeze on adoptions this month.

Meanwhile, Artyom Savelyev was transferred Thursday to an orphanage from the hospital wh ere he had been kept for medical tests after being returned to Russia on April 8, Astakhov's office said. The boy will stay at the orphanage for a few weeks as officials look to place him with a Russian family. The boy was adopted from an orphanage in the Far East in September.

Also on Thursday, a U.S. court was scheduled to hold a preliminary hearing into the death of Ivan Skorobogatov, 7, whose adoptive parents are accused of beating him to death Aug. 25.

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Sacramento Bee: Giant Russian cargo plane to land in Stocktonhttp://www.sacbee.com/2010/04/29/2716828/giant-russian-cargo-plane-to-land.html

The Associated Press Published: Thursday, Apr. 29, 2010 - 9:23 pm

STOCKTON, Calif. -- One of the largest airplanes in the world will be appearing in the skies above Northern California Friday.

Officials say a Russian-made AN-124 is scheduled to land at Stockton Metropolitan Airport around 7 a.m. Friday.

The giant cargo plane is stopping in Stockton as part of a training exercise. Once it's on the ground two U.S. Army Chinook tandem-rotor helicopters from the California Army National Guard will be loaded onto the plane for transport to Alaska.

National Guard officials say they believe its the first time the Russian cargo plane has landed in Stockton.

First introduced in 1986, the AN-124 has a capacity greater than the U.S. military's C-5 Galaxy.

The plane is expected to depart Stockton after a few hours on the ground.

Moscow Times: New York, Miami Routes Planned by Transaero http://www.themoscowtimes.com/business/article/new-york-miami-routes-planned-by-transaero/405147.html

30 April 2010The Moscow Times

Transaero said Thursday that it would open new routes to Miami and New York starting this fall.

The flights will depart from Domodedovo Airport, spokesman Sergei Bykhal said, declining to give further details. The company does not currently fly to the United States, although it operated a Moscow-Los Angeles flight in the late 1990s and has been planning to resume flights to the United States since 2007.

Privately owned Transaero will be only the second Russian airline, after Aeroflot, to operate U.S.-bound flights. Aeroflot currently flies to New York, Los Angeles and Washington DC.

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Transaero said earlier this week that it would purchase 14 Boeing-777s and nine Boeing-747s to use on international flights and flights to the Far East. The 747-400s are to be obtained from JAL, while the 777s had been operated by Singapore Airlines. The company will be leasing the planes, which are 10 years old, on average. They will be added to the company fleet starting next month.

Transaero, Russia's second-largest airline, has a fleet of 47 planes, all but three of which are Boeings, according to Transportation Ministry statistics. The airline saw year-on-year passenger volume growth of 74 percent over the first three months of 2010, outstripping the industry as a whole, which grew at 33.4 percent, the ministry said.

RIA: Death toll in Dagestan blast rises to threehttp://en.rian.ru/russia/20100430/158812201.html

07:3130/04/2010

The number of people killed in Thursday's blast in Russia's North Caucasus republic of Dagestan has risen to three as a civilian died in hospital on Friday, the Rossiya 24 TV channel said.

A Lada Priora car exploded near a police station killing two police officers when they stopped it to inspect driver's documents.

17 people were wounded. Six of them are police officers and 11 are civilians, including a child.

Russia has been fighting militants in the North Caucasus for almost two decades, including two brutal wars against separatists in Chechnya.

Russian President Dmitry Medvedev created the North Caucasus Federal District in January as part of efforts to improve the regional economy and remove incentives for locals to join militant groups.

MOSCOW, April 30 (RIA Novosti)

RIA: Dagestan car bomb equivalent to 100kg of TNT http://en.rian.ru/russia/20100430/158813205.html

10:0530/04/2010

The car bomb that went off near a police station in Russia's volatile North Caucasus republic of Dagestan had a force equivalent to 100 kg of TNT, a police source said on Friday.

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Three people, including two police officers, were killed when a Lada Priora car exploded near the police station in the Lenin-Aul village late on Thursday afternoon. The explosives were detonated when police stopped the car to inspect driver's documents.

Six police officers and 11 civilians, including a 5-year-old child, were injured in the explosion, which damaged 11 cars.

The police source said a criminal case had been opened into the illegal production of arms and the murder of a police officer.

Earlier, police said the explosion formed a crater 1 meter (3.3 feet) deep and more than 2 meters (7 feet) in diameter.

Russia has been fighting militants in the North Caucasus for almost two decades, including two brutal wars against separatists in Chechnya.

Russian President Dmitry Medvedev created the North Caucasus Federal District in January as part of efforts to improve the regional economy and remove incentives for locals to join militant groups.

MOSCOW, April 30(RIA Novosti) 

RUVR: Killed policemen in Dagestan helped prevent still bigger act of terrorhttp://english.ruvr.ru/2010/04/30/7132684.html

Apr 30, 2010 09:32 Moscow TimeOn Thursday in Dagestan, the North Caucasus, two traffic policemen stopped a Lada-Priora car with a terrorist inside who planned to use the vehicle for an act of terror during the forthcoming May Day manifestations. The kamikaze terrorist set off the car-bomb during the identity check-up, killing two policemen and one civilian, and wounding another 15 people. The yield of the bomb was 100 kilos of TNT. According to the republic’s Interior Ministry, the killed policemen have thus helped prevent a still bigger terrorist attack. An investigation team is now working on the scene of the crime.  

Reuters: Suicide bomber kills 2 in Russia's Dagestan – policehttp://in.reuters.com/article/worldNews/idINIndia-48110820100429

Fri Apr 30, 2010 1:57am IST

MAKHACHKALA, Russia (Reuters) - A suicide car bomb killed two police officers and injured 17 other people on Thursday in Russia's Muslim Dagestan region, a local police spokesman said.

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The spokesman said a suicide attacker set off the explosive after police stopped his car at a checkpoint about 100 km (60 miles) north of Dagestan's capital, Makhachkala.

Two traffic police officers were killed and six other police were injured, along with 11 civilians including a child, he said.

Dagestan borders Chechnya in the North Caucasus, where Russia is facing a persistent Islamist insurgency. The province is plagued by frequent attacks targeting law enforcement and government officials.

The blast came a month after twin bombings blamed on female suicide attackers from Dagestan killed 40 people on Moscow's metro on March 29, raising fears of a new wave of attacks in Russia's heartland by militants based in the Caucasus.

The Moscow bombings were followed by several deadly attacks in the North Caucasus, including two suicide blasts that killed 12 people, mostly police, in Dagestan on March 31.

The attacks have brought new Kremlin pledges to neutralise insurgents in the North Caucasus, hit by persistent violence since two devasating post-Soviet wars pitting government forces against separatist rebels in Chechnya.

(Writing by Steve Gutterman; editing by Maria Golovnina)

Itar-Tass: Powerful explosion occurs in North Caucasus city

http://www.itar-tass.com/eng/level2.html?NewsID=15080446&PageNum=0

29.04.2010, 23.51

NALCHIK, April 29 (Itar-Tass) - A powerful explosion occurred at 22:50 Moscow Daylight Saving Time in the courtyard of a downtown apartment block in Nalchik, the capital of the North-Caucasian region of Kabardino-Balkaria.

Two policemen who were sitting in a car near the site have been contused, a local law enforcement source told Itar-Tass.

Police sealed off the area of the incident and its details were being clarified at the time of reporting.

RUVR: Car bomb injures 2 in Nalchikhttp://english.ruvr.ru/2010/04/30/7127814.html

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Apr 30, 2010 00:34 Moscow TimeAt least two police officers were seriously injured when an explosives-laden car went off on Thursday evening in downtown Nalchik, the capital of the southern Russian republic of Kabardino-Balkaria.  Both were rushed to a nearby hospital. The authorities are investigating.

April 29, 2010 22:43

Interfax: Russian space industry needs private investments – officialhttp://www.interfax.com/newsinf.asp?id=162094

MOSCOW. April 29 (Interfax-AVN) - Russia's space industry needs private investments, the head of the Federal Space Agency (Roscosmos) said on Thursday.

"There exist such programs in the United States. Russia also stands for private capital investment in the space industry and space projects. But we don't, of course, have the scale of private investment that the U.S. has," Anatoly Perminov told reporters in Moscow.

The reason, Perminov said, is that Russian private investors are cautious about industries where investments take several years to start paying back.

Space systems take two to three years to develop and only after that can money that has been put into them begin to pay back, he said.

"Russian investors still have no experience of this and are often afraid to put money into sectors whether they haven't worked yet," Perminov said.

as

St. Petersburg Times: No Food, No Toilet In 10-Hour Police Raidhttp://www.times.spb.ru/index.php?action_id=2&story_id=31330

By Irina TitovaThe St. Petersburg TimesAbout a hundred OMON special task police officers stormed the offices of a major St. Petersburg translation company, barring employees from leaving or going to the toilet for at least ten hours on Thursday.

Masked officers detained about 180 employees of Ego Translating in their office, located at 2 Muchnoi Pereulok in central St. Petersburg, without offering any explanation of who they were or what the reason for the search was, Viktoria Uznanska, vice president of Ego Translating, told The St. Petersburg Times by phone on Thursday.

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“The officers, armed with crowbars and guns, isolated the staff in different rooms and refused them access to food, drink and the toilet,” Uznanska said.

“There are two pregnant women among those trapped, and they are not allowed to use the toilet either,” she said.

Uznanska, who managed to escape the building when a local television channel turned up at 3 p.m., said the police had searched the whole office, including employees’ personal belongings. They disconnected all the technical devices and computers in the office and piled them in one place, confiscated the company’s hard drives and did not permit staff to use their cell phones, she said.

Uznanska said that when she managed to reach people in her office by phone at 8 p.m., they were calling for help from the windows of the office. At the time of going to press on Thursday evening, the staff had not been allowed to leave.

Uznanska said that the only information she could obtain about the reason for the search was from local media, who reported that the operation was allegedly being carried out in connection with tax issues.

An unidentified source in the St. Petersburg police told Interfax that the raid was part of an investigation into allegations that Ego Translating had committed tax violations.

The source said that the tax inspectorate had information that gave it reason to suspect the company of tax evasion.

“At the moment they are considering opening a criminal case,” the police source told Interfax.

According to preliminary investigation, the tax evasion scheme was based on the use of fly-by-night firms, it said.

Vyacheslav Stepchenko, spokesman for the city’s police, told The St. Petersburg Times on Thursday night that he was unable to comment on the case due to a lack of information on it.

Uznanska said that the company operated legally and had paid taxes in accordance with the law.

“We work for the city administration, federal projects and a number of major companies such as Pulkovo Airport, General Motors and Toyota, as well as for the Hermitage Museum. Our interpreters have translated at the St. Petersburg Economic Forum, for many political leaders such as Barack Obama. Therefore we simply can’t allow ourselves to violate the tax rules,” Uznanska said.

Uznanska said that even if the tax inspectorate had suspicions about the company and needed to search it, they had no right to do so in such a brutal way. She said the search had caused the company’s work to grind to a complete halt, while for some projects, even a 30-minute delay could be a huge problem.

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She suggested the real reason behind the search could be either “an attack by competitors or demonstrative action to scare other, smaller, businesses.”

“In any case, their actions are extremely unpleasant and are obviously aimed at demoralizing the company’s employees,” she said.

Ego Translating was founded in 1990, and provides interpreting and translation services in many languages. It employs up to 4,000 in-house and freelance employees.

Itar-Tass: Moscow to get second eternal flame

http://www.itar-tass.com/eng/level2.html?NewsID=15080658&PageNum=0

30.04.2010, 03.33

MOSCOW, April 30 (Itar-Tass) -- Moscow will get a second eternal flame on Friday to commemorate World War Two soldiers that will be ignited by representatives of three generations at Poklonnaya Hill war memorial.

War veteran General Major Ivan Slukhai, Hero of Russia and Colonel Alexander Borisevich and young navy club activist Alexander Aniskin will ignite a torch at the eternal flame at the Kremlin wall that will be brought to Poklonnaya Hill on an armored personnel carrier accompanied by an escort of motorcycles.

The second eternal flame at Poklonnaya Hill will be ignited from the torch by war veteran Vladimir Dolgikh, Hero of Russia and Colonel Vyacheslav Sivko, and young activist Nikolai Zimagorov.

Also on Friday Moscow will re-ignite the eternal flame at Preobrazhenskoe cemetery where over 10 thousand soldiers were buried who died in Moscow hospitals. The flame initially appeared in 1956.

The main Russian eternal flame at the Kremlin wall was ignited on May 1967.

The events are devoted to the 65th VE-Day anniversary to be marked on May 9.

Itar-Tass: Russia to re-launch caviar production in 5-7 years

http://www.itar-tass.com/eng/level2.html?NewsID=15080617&PageNum=0

30.04.2010, 02.33

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ROME, April 30 (Itar-Tass) -- Russia hopes to re-start caviar production in the Caspian Sea in 5-7 years when the population of sturgeon increases to acceptable levels, according to Andrei Krainy, head of the Russian Fishing Committee.

Russia stopped caviar production several years ago in an attempt to bar massive poaching that threatened sturgeon extinction.

“Caviar will appear in 5-7 years, but it will be expensive as any rare product,” Krainy told Tass on Thursday. “We are negotiating with the Caspian littoral states,” he added.

Krainy said the fight against poaching was a difficult task, as there is big unemployment in the area and fishermen have no other job. Besides, law enforcers often cover the shady and profitable business.

“We have signed a joint action plan with the interior ministry and carry out raids against poachers,” Krainy said, adding in the past 18 months poaching dropped 10-fold.

“We shall do everything so that caviar does not disappear. We have to help the nature. I am optimistic about the future,” Krainy said.

Krainy visited Rome to sign the FAO-brokered treaty that will deny access to fishing ports to ships involved in illegal fishing when it comes into force.

29/04/2010 | Moscow News: T-50 flies againhttp://www.mn.ru/news/20100429/55437494.html

Evgeniya Chaykovskaya

The fifth-generation PAK FA T-50 fighter jet continued its test flights near Moscow on Thursday.

The plane, developed by Sukhoi, is intended to match the American F-22 Raptor, and the manufacturers say it boasts a number of unique capabilities.

It is equipped with a largely new set of avionics that integrates an "electronic pilot" function, reducing the pressure on the pilot and allows him to concentrate on tactical tasks, the company said in a press release.

The plane's on-board equipment enables it to conduct data exchange in real time both with ground control and the airborne colleagues. The use of compound materials and innovative technologies, the aerodynamic composition of the plane and measures to lower the engine signature provide a uniquely low level of radiolocation, optical and infrared visibility. All of this significantly increases the fight efficiency both on air and ground targets in any time of day and any weather, the manufacturers add.

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Thursday's test, from the Zhukovsky airfield in Moscow region, was piloted by experienced test pilot Sergei Bogdan. It marks the start of the main testing cycle, after preliminary flight tests were carried out in Komsomolsk-na-Amur in January, RIA Novosti reported.

The Russian Air Force is expected to invest in a fleet of T-50s in 2015 once testing is complete, and the new planes are expected to form the basis of its strength for the next few decades.

RBC: The Army will call on students after the second year of studies

http://spb.rbc.ru/topnews/30/04/2010/401168.shtml

Ministry of Defense is going to deal with delays from military service. First of all, the War Department intends to deal with the delay associated with receiving higher education. Among the priorities of the Defense Ministry - reducing the number of universities offering students reprieve from compulsory military service. According to Deputy Chief of General Staff of Russia, in 2010 the number of such schools can be reduced by 70%. Such proposals have been expressed by the representatives of the Russian Defense Ministry at a meeting of the Federation Council Committee on Defense and Security. According to Kommersant, Russia currently has 21 deferred from military service, while in Germany they were 6, and in Israel - 4. In addition, the Defense Ministry offers another option - mandatory military service students at the end of 2 nd year. According to Smirnov, the Ministry of Education and Science, the proposal "does not cause allergies." Among other great projects of the defense department - an increase of military age from 27 to 30 years. Note also that the Russian Defense Ministry proposes to increase the period of the spring conscription before the end of August this year. As deputy chief of General Staff Vasily Smirnov, the draft law on military duty with the relevant amendments have been discussed in the Duma Defense Committee and the presidential administration, the Mayak radio station ". Now spring call made from 1 April to 15 July. In the course of the appeal in respect of 56,5 thousand young people have already made the decision on appeal, of which 15 thousand have already been sent to places of service. The Defense Ministry was reminded that in the spring of this year for military conscription is planned to attract 270 thousand 600 citizens. Fall recruitment starts on October 1 and ends December 31, 2010. 30 April 2010.

RIA: Russia fails to provide 'service with a smile' – surveyhttp://en.rian.ru/russia/20100430/158814146.html

11:3430/04/2010

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Russian shop assistants are not known for their smiles, and with good reason according to a survey of 14 countries' service industries that ranked the country 12th, popular Russian daily Gazeta reported on Friday.

Mystery shoppers counted the smiles of the service employees in stores, restaurants, banks and tourist agencies, and found that Russian staff smiled 65% of the time. The lack of cheer was put down to the rudeness of Russian customers, boorish bosses and ingrained habits.

The smile rankings were topped by Sweden, where workers smiled in 87% of interactions, Latvia (86 %) and Estonia (84 %).

The United States came fifth with 80% of the staff smiling.

Russia was trailed only by Croatia on 59% and Pakistan, with a miserable 34% of staff smiling at customers.

Gazeta daily said citing the report's results that tourism sector personnel smiled the least in Russia.

"People who buy tours or book charter-flight tickets usually deal with staff at tiny tourist agencies, whose incomes merely cover the advertising costs and office rent," Gazeta quoted Russian Tourism Industry Union spokeswoman Irina Tyurina as saying.

She said small agencies do not have enough money to train their personnel.

The survey showed that fast-food restaurants also suffer from gloomy staff. Dmitry Levitsky of Retail Training Group told Gazeta that the fast-food sector faces 300% employee turnover annually, with workers' difficult living situations often meaning they lack the motivation to be cheerful with the customers.

"We are often asked how to teach people to smile, but you cannot teach it," Levitsky said, adding that managers have to learn to keep an eye on their staff's moods, and cheer them up if necessary.

"Managers usually know how to force, but not how to encourage," he was quoted as saying.

MOSCOW, April 30 (RIA Novosti) 

Russia Today: 30 April, 2010 in Russian Newspapershttp://rt.com/Top_News/Press/eng.html

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Izvestiya: Europe faces a new financial crisisSpain became the third European country whose credit rating fell this week. For Spain, Greece and Portugal, the reasons for the decline are the same: enormous public debt and a grim outlook for future economic growth. The situation is indeed daunting, say experts. Europe may fall into the depths of a new financial crisis.

By Pavel Arabov

For the European economy, the week began on a sour note. On Monday evening the world’s largest rating agency, Standard & Poor’s (S&P), downgraded the credit rating of Greece from the investment grade BBB+ rating to BB+, one that is only of interest to speculators. However, this move was predictable due to the fact that Greece’s national debt of €300 billion has already surpassed its GDP and its current budget deficit of 13.6% could not be envied by even the most backward countries of Africa.

Rossiyskaya Gazeta: The indivisible atomRussia and Ukraine are establishing grounds for new cooperation in the nuclear power industry

By Aleksandr Emelyanenkov

Today, detailed plans for bilateral cooperation in the nuclear power sphere will be discussed in Sochi within the framework of the Russia-Ukraine Inter-State Commission. Experts of the two countries expect to see some breakthroughs on many deferred issues.

Nezavisimaya: A customs project for ArmeniaYerevan considers having its cake and eating it too

By Yury Simonyan

Moscow and Yerevan are considering Armenia’s possible accession into the Customs Union (CU). Representatives of Armenia’s government told Nezavisimaya Gazeta (NG) that no concrete decisions have been made, for now “this is only an idea, which has already been heard several years ago.” “It was stated that if the Customs Union were to be created, then Armenia might join the organization. But, at that time, there was no organization to join,” an interlocutor told NG.

Moscow Times: Today in Vedomostihttp://www.themoscowtimes.com/vedomosti/Issue 4383. Last Updated: 04/30/2010

New Method for Measuring Cell Phone SafetyBy Valery Kodachigov

The harmful effects of cell phone radiation on the health of users in Russia are to be evaluated by a new method, which is similar to international standards.

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75% of Russians Want to Work AbroadBy Mikhail Malykhin

Three-quarters of Russians would like to work in another country, a recent survey says. The most desirable country for work was the United Kingdom, where 42 percent of respondents would be ready to work. The five most-desired countries also included the United States (41 percent), Germany (38 percent), Canada (32 percent) and Australia (28 percent).

New Clarifications Surrounding Permission to BuildBy Dmitry Kazmin

Plenary sessions of the Supreme Arbitration Court and Supreme Court ruled Thursday that the absence of a permit for construction is not in itself a reason for rejecting a claim for recognition of ownership. But these clarifications will not solve the Rechnik problem.

April 29, 2010Russia Profile: Pressing Fearshttp://www.russiaprofile.org/page.php?pageid=Politics&articleid=a1272564978

By Tom BalmforthRussia Profile

The Terrorist Bombings on the Moscow Metro Could Mean the Russian Media Gets Further Repressed to Subdue Spurious Extremism

Russia’s “extremely repressive” media environment worsened marginally last year, according to a Freedom House report released this evening, but analysts warn there are already signs that Russia’s rating will slump further in 2010. President Dmitry Medvedev has been making the right sounds about press freedoms, but the reality on the ground is somewhat different. What’s more, a bill currently being discussed in the State Duma could make journalists fair game for an upgraded version of Russia’s notoriously malleable extremism law.

Russia shared 176th place with Gambia in Freedom House’s 2010 Press Freedom Index of 196 countries released yesterday, down one place from 2008. The report found that “Russia remained among the world’s more repressive and most dangerous media environments.” Only Uzbekistan, Belarus and Turkmenistan ranked lower than Russia in its regional Central and Eastern Europe grouping of 26 countries.

“I cannot say that freedom of the press went down last year,” said Mikhail Fedotov, secretary of Russia’s Union of Journalists. “There was little freedom to start with and there still is little.”

Freedom House notes that “the space for independent media in Russia has been steadily reduced as legal protections are routinely ignored, the judicial system grows more

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subservient to the executive branch, reporters face severe repercussions for reporting on sensitive issues, most attacks on journalists go unpunished, and media ownership is brought firmly under the control of the state.”

Fedotov said that 2009 had not been remarkable in terms of state attempts to curb press freedoms but warned that they loomed large for Russia in 2010. “Last year the state didn’t do anything particularly bad or good for the freedom of the press,” said Fedotov “But this year there has been a draft bill submitted, which to me is unthinkable. It is a cause for very serious concern. This is a clear attempt – at least at the moment it is still an attempt – to curb freedom,” he said.

In the wake of the March 29 Moscow bombings the opposition predicted the authorities would tighten up the power vertical. On April 24 a bill was submitted to the State Duma which would extend the powers of the Federal Security Service (FSB), the successor to the KGB, and expand the remit of the Russia’s infamous extremism law, adopted two years ago, which can currently only be imposed on organizations. The draft gives the FSB the right to take preventative measures against individuals suspected of the malleable offense of “extremism.” The draft bill posted on the State Duma Web site also contains a specific warning to the press.

“The media, both print and electronic, are openly encouraging the formation of negative processes in the spiritual sphere, affirming a culture of individualism and violence, fomenting disbelief in the ability of the state to defend its citizens, and practically inciting the young toward extremist activity,” reads the draft.

“This has really shaken me up,” said Fedotov.  “I haven’t seen this kind of thing probably since the proceedings on the Central Committee of the Communist Party of the Soviet Union. I read such documents which were extracted from the archive of the Central Committee. Those documents were written by the KGB,” said Fedotov.

In tense post-March 29 Russia, media ethics have come under fire from Russia’s leadership. Boris Gryzlov, speaker of the State Duma, the lower house of the Russian Parliament, argued that the Vedomosti business daily was playing into the hands of the terrorists through its coverage of the double suicide bombings on the Moscow metro, and even implied a link between the paper and the terrorists. Gryzlov reasoned that the Vedomosti business daily’s coverage “gives rise to the suspicion that these publications and the actions of the terrorists are connected,” RIA Novosti reported. The broadsheet then filed a defamation suit against him. Yesterday in an “unprecedented” victory for the press over the state, Vedomosti won its case against Gryzlov, forcing the parliamentary speaker to make a public apology.

“I am so happy that they’ve won this trial because usually the media cannot win trials against high-up civil servants and officials,” said Fedotov. “This is unprecedented. But I worry that Gryzlov will get out of it.”

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Elsewhere, Fedotov said there had been tentatively positive signs for media freedom, including positive rhetoric from President Dmitry Medvedev on press freedom, and the continuing development of “technological bases for informational exchange.” The Internet, often touted as the last bastion for independent media in Russia after state moves to swallow up independent outposts in television, print, and radio, is growing as an informational resource. “The number of Internet users is increasing constantly and fairly rapidly, which is good,” said Fedotov, adding that this has “nothing to do with the state, but rather with advances in economy and technology.”

Freedom House’s 2010 report notes that there have been state incursions into Internet, however. “Russian authorities are also moving to restrict Internet freedom through manipulation of online content and legal actions against bloggers.” The blogosphere, which modernizing Medvedev in particular makes use of, has been inundated with pro-Kremlin propaganda for some years.

Aside from such hands-on measures by the authorities, one of the main problems with Russia’s media environment is an atmosphere of fear that hinders the work of journalists, said Mikhail Melnikov, an analyst for the Moscow-based Center for Journalism in Extreme Situations. The bill being discussed in the Duma only contributes to the general atmosphere of fear and journalists’ consequent self-censorship, he said.

Crimes against Russian journalists also often go unpunished. The Freedom House report notes that “continuing impunity for past cases of murder and other crimes against journalists is encouraging new attacks, significantly hampering media freedom.”

Melnikov said that at least five journalists were murdered in connection with their work last year. There was Shafik Amrakhov, the editor of a news agency in Murmansk; Anastasia Baburova the rights activist and journalist, in central Moscow; Vyacheslav Yarashchenko, chief editor of the Corruption and Crime newspaper; Natalia Estemirova, a human rights activist and journalist in Chechnya; and Abdul Malik, the editor of local paper in Dagestan. Melnikov said there were other suspicious cases that suggested a similar connection, but which had not been officially recognized as murders, including the “fantastical” circumstances surrounding the death last year of Olga Kotovskova, a journalist in Kaliningrad who officially committed suicide by jumping off the eighth floor of an apartment block.

With the exception of Baburova’s case, which itself is still not yet closed, none of the murderers have been brought to justice.

Yesterday a peppering of events characteristic of Russia’s adverse media environment came to light. The Washington-based Committee to Protect Journalists called for an investigation after Arkady Lander, the 62-year old editor of a local Sochi newspaper, was assaulted with metal bars on his way home and his skull broken. Meanwhile in the Tyumen region in Western Siberia, the state opened a case against Vladimir Yefimov, the editor of a local newspaper, for “inciting hatred” toward Russia’s embattled Interior Ministry. Yefimov will face five years in jail if he is convicted.

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Signals from the authorities about what can be written, such as latest draft bill, along with the murders and harassments of journalists that go unpunished – these all contribute to an “atmosphere of fear,” which ultimately means that all it takes to intimidate a journalist is a phone call, said Melnikov.

“If a journalist doesn’t feel protected, then he may just stop writing on a theme. And this happens all the time because most people aren’t prepared to go all the way like Anna Politkovskaya, who wasn’t perturbed by threats,” said Melnikov. 

29 April 17:08

Premier.gov.ru: Prime Minister Vladimir Putin meets with President of VTB Bank Andrei Kostin

http://premier.gov.ru/eng/events/news/10413/

The focus of the meeting was VTB Bank’s performance during the first quarter of 2010, specifically its loan portfolio and interest rates. Bank chairman Andrei Kostin told Prime Minister Vladimir Putin that the bank’s interest rates had been significantly reduced, now averaging slightly over 11%.

Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon, Mr Kostin,

The first quarter is over. What are the results?

Andrei Kostin: Good afternoon, Mr Prime Minister,

The financial performance of the bank in the first quarter shows that it has overcome the difficulties faced by the banking sector last year. The bank managed to reverse the negative trend, curb the growth of bad debt and improve its financial indicators.

During the first quarter of last year (of the Russian fiscal year), the net revenues of the three leading Russian banks in the VTB Group, namely VTB, VTB24 and VTB North-West, exceeded 21 billion roubles, which is higher than before the recession.

I'd like to emphasise that the results of the bank's performance in 2009 allowed the Supervisory Board to make the decision to charge dividends in the amount of 25% of the bank's 2009 revenues. After this decision is approved at the annual meeting of shareholders, we'll transfer the 5.2 billion roubles in dividend payment to the federal budget.

As far as the problems we're still facing, I should mention that the banks' loan portfolios barely grew during the first quarter, including at VTB. But the recent trend has been positive.

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Vladimir Putin: But you said they grew somewhat. How much? By what percentage?

Andrei Kostin: When we reported to the parliament, we said 10%. We believe we'll be able to ensure growth of between 10% to 15%, unless financial officials take steps to restrict liquidity in the banking sector.

Vladimir Putin: You mean steps to ...

Andrei Kostin: Steps to restrict liquidity, as a measure of fighting inflation.

Vladimir Putin: But no restrictions have been imposed so far?

Andrei Kostin: No.

Vladimir Putin: What are you going to do with the money you received from the government last year? We've recently discussed this issue in detail with Sberbank. You are paying 8% now, correct?

Andrei Kostin: Yes, 8%.

Vladimir Putin: How much money did you receive? Are interest payments crippling your business? What are you going to do with these funds?

Andrei Kostin: We received 200 billion roubles as a subordinated loan for 11 years. There are 10 years left now. This money was used to increase lending to industries last year. As you know, we actually built up the bank's portfolio during the recession. Of course, now that the refinancing rate has been reduced to 8%, the situation has changed somewhat, and the money has become more expensive. But we're still unable to return these funds in full, and would like to see the interest rate reduced by at least another 1.5%. We believe this would be an appropriate measure in this situation. Otherwise, we'll return the funds as we receive revenues from the market, which may take between 12 and 24 months.

Vladimir Putin: The financial authorities that you mentioned are considering this measure as one of the solutions to maintain macroeconomic stability and deal with inflation. That is if the government reclaims this money.

Andrei Kostin: We understand that this is a possibility, and we will be ready for it. But the risk is elsewhere. To repay this money on schedule, we'll need to borrow more from external markets to offset long-term resources. No restrictions should be imposed here at least, so that we could borrow on the free market...

Vladimir Putin: In this case this measure will have no macroeconomic effect, and so it would be better to reduce interest rates for you.

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Andrei Kostin: I agree. In macroeconomics, economic growth and funding for investment programmes are as important as inflationary policies.

Vladimir Putin: Mr Kostin, you'd like the government to reduce interest rates for your subordinated loans, but what interest rates does your bank offer on loans to the clients?

Andrei Kostin: We've recently reduced our interest rates considerably, and the average is now a little over 11%.

Vladimir Putin: I've just returned from Astrakhan, where I met with the heads of local companies. They told me that interest rates for shipbuilding companies are still at 17%.

Andrei Kostin: Very rarely. We reduced interest rates overall. I can give you a list of loans that were issued in April. You'll see that local governments received loans at only 8.2%. These are the actual decisions; I can show you the protocol of the lending committee. See, on the first page: local governments - 8.2%, the space industry - 8.7%, there are also 10%, and 11.75% interest rates. Then, industrial enterprises, oil companies, 9.6%, 10.8%. These are the interest rates for loans in roubles.

Vladimir Putin: I see. Let me take a look at it, please. It's 7% for currency loans?

Andrei Kostin: Yes, interest rates for currency loans are 7%...

Vladimir Putin: And there's even 4%!

Andrei Kostin: Yes, there are 4% interest rates. Currency loans are in less demand today, and there's a clear connection with the fluctuations of the Central Bank's refinancing rate. More to the point, bankers are in a close race for potential borrowers. In this situation, I believe, we'll continue reducing interest rates.

Vladimir Putin: But what's this, 14%? Look, it's for Energomash.

Andrei Kostin: Well, much depends on...

Vladimir Putin: That's the highest interest rate.

Andrei Kostin: Yes, but they have the longest payment period, five years. It's the maximum possible payment period.

Vladimir Putin: But what about Sollers? The interest is 13.5%, and the payment period is two years. I see you haven't been doing much to support manufacturers.

Andrei Kostin: Well, it is what it is, with no sugar coating. I repeat, the overall trend is... See... This was a year ago... There are no 17%, 18%, or even 15% interest rate now...

Vladimir Putin: I see. That's good.

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29 April 18:19

Premier.gov.ru: Prime Minister Vladimir Putin meets with Minister of Transport Igor Levitin

http://premier.gov.ru/eng/events/news/10416/

Prime Minister Vladimir Putin and Minister of Transport Igor Levitin discussed services that transport companies will provide to veterans during celebrations of the 65th anniversary of victory in the Great Patriotic War. Minister Levitin reported that everyone who survived the war, notably veterans and disabled veterans, will have the right to free transport with one attendant.

Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon, Mr Levitin.

What services will transport companies provide to veterans during the celebrations of the 65th anniversary of victory in the Great Patriotic War?

Igor Levitin: Mr Prime Minister, following-up your directive, we held a conference call with the governments of all Russia's regions to discuss the provision of services for all those who survived the Great Patriotic War, notably veterans and veterans with disabilities. They appealed to President Medvedev and yourself to allow them, and one person accompanying them, one free trip. This issue was raised during the conference call; we're waiting for the government's decision.

Vladimir Putin: All right, I'll sign these documents. How will this work be organised? What do people need to know to exercise this right?

Igor Levitin: Specific transport offices have been set up in all regions. The phone numbers of regional offices and the central office of the Ministry of Transport are available on the internet. We've also issued a reminder.

Vladimir Putin: What forms of transport does this right apply to?

Igor Levitin: Railway, air, sea, river and road transport.

Vladimir Putin: You mean buses?

Igor Levitin: Yes, buses.

Vladimir Putin: So, to receive a ticket for a free ride, a veteran and an attendant just need to show their documents at a ticket office?

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Igor Levitin: Exactly. We've distributed the list of documents that people need to get this ticket. Transport operators are not allowed turn down such people.

After this promotion ends, all transport operators, regardless of what form of transport they offer, will need to submit related information to us, and we'll check this data with the Pension Fund. They must do this by July 1.

Vladimir Putin: So, people need to show their ID card and passport. But this will apply to the citizens of the Russian Federation as well as...

Igor Levitin: citizens of other countries whom we invited to Russia.

Vladimir Putin: The CIS?

Igor Levitin: Yes, the CIS. The heads of government made this decision in 2008, and we're implementing it. And we've also included their carers in this list.

The transportation hubs of Moscow, St Petersburg and Volgograd will bear the main burden of this. Today I received information that some 2,000 people are expected to visit St Petersburg alone. In the Moscow metro, all veterans, regardless of their place of residence, will receive tickets for free rides.

Vladimir Putin: This applies to municipal transport?

Igor Levitin: Yes. We've also appealed to transport operators not to raise their rates over these days. All the transport operators agreed. There will be no price increase. And some companies will even reduce their prices.

Vladimir Putin: Good.

29 April 08:10

Premier.gov.ru: Prime Minister Vladimir Putin tells journalists about his trip to the Franz Josef Land archipelago

http://premier.gov.ru/eng/events/news/10410/

“The polar bear is endangered: there are only 25,000 left in the world. And of course, this is primarily related to the environment, and the shrinking ice sheet. (...)The shrinking ice cap and the melting of the ice in this part of the world render the bears’ habitat even harsher. And it is important for scientists to understand how polar bears migrate, how they reproduce and how they nurture their young. All of this is very significant.”

Question: Mr Putin, what are your impressions from your handshake with the polar bear?

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Vladimir Putin: From the pawshake. It was a heavy paw. The master of the Arctic, you can feel that straight away.

When we talk about the Arctic, we must not forget that, geopolitically, Russia's deepest interests are linked to the Arctic, because it is where Russia's security and defence capabilities are provided for. Let us not forget that these Arctic expanses are where our main naval bases are located, as are the patrol routes of our nuclear missile-carrying submarines and long-range aircraft. There are also economic interests, including mineral resources. For instance, the well-known Shtokman field, which we plan to develop, is 300 kilometres off the coast of the Barents Sea. Three hundred kilometres! This is the Arctic. There are also important transport corridors such as the Northern Sea Route. And, of course, there are issues of our cooperation with other countries and the protection of the environment and the natural world.

The polar bear, which we have just seen and which is the subject of study for scientists, is endangered. In 1973 or 1974, a resolution was adopted prohibiting the hunting of polar bears. And it should be said that in the Soviet era, this was strictly enforced. Anyway, isolated cases of poaching did not threaten the population. And then, in the early to mid 1990's, poaching became more widespread again. Now, little by little, we're restoring order here. But the polar bear, as a species, is endangered: there are only 25,000 left in the world. And of course, this is primarily related to the environment, and the shrinking ice sheet.

After all, the Latin name for the polar bear is Ursus maritimus, or sea bear. It is the only large animal that has virtually moved from living on land to living on ice floes, because that is where it finds most of its food. The shrinking ice cap and the melting of the ice in this part of the world render the bears' habitat even harsher. And it is important for scientists to understand how polar bears migrate, how they reproduce and how they nurture their young. All of this is very significant.

I have talked about the natural phenomena that make the bears' life more difficult. But, besides this, you can see behind me here that there are problems associated with human activity. The reduction in military and economic activity in the region after the fall of the Soviet Union left such stockpiles here, such a dump, which unfortunately we still see today. We need to come right out and say it. I'm sure you've heard about just how many barrels there are. According to various estimates, these contain from 40,000 to 60,000 tonnes of oil and lubricants. But they are "stored" in name only, since all of this is in fact leaking into the ground. The pollution level is six times the acceptable level.

What we need to do now is organise a wholesale cleanup in the Arctic. I think that this should be through public-private partnership. But the government must take the first steps, of course. These include determining the extent and nature of this disastrous situation and deciding how to organise the recovery of this waste and making it mandatory in the nearest future.

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The main thing is that we work within the framework of international law. We have good relations with our neighbours in the Arctic, and I hope that we will find ways to jointly resolve the very complex problems facing the Arctic. Nature is very fragile here, and, given the well-known warming processes, if the temperature were to rise by three to four degrees, the problems we have been facing in terms of protecting the environment will become much more acute. But this is our concern, it is Russia's concern.

Cooperation in the Arctic is, of course, very important, owing to the fact that there are large hydrocarbon reserves here. We still need to do a great deal to agree on how to manage these resources, how to organise for transport and how to open up the Northern Sea Route. There are many issues involved here. Under the resolution of the Russian Security Council, we must establish 10 stationary stations reporting to the Emergency Ministry and Federal Service for Hydrometeorology and Environmental Monitoring (Roshydromet) along the entire path of the Northern Sea Route. Well, I think our other agencies will also take advantage of these opportunities.

Question: Should we not organise a working Saturday to clean up the Arctic?

Vladimir Putin: As I already said, we need to organise a general clean-up of the Arctic: not only a working Saturday, a working Sunday and work on all the other days of the week.

National Economic Trends

Moscow Times: Government Raises its GDP Growth Estimates http://www.themoscowtimes.com/business/article/government-raises-its-gdp-growth-estimates/405153.html

30 April 2010Reuters

The Economic Development Ministry has raised its gross domestic product growth forecasts for this year and next, thanks to a more upbeat outlook for key export oil, Deputy Minister Andrei Klepach said Thursday.

GDP growth estimates for this year have been revised to 4 percent from 3.1 percent and, for 2011, to 3.5 percent from 3.4 percent, Klepach told reporters.

The widely expected revision brings the official forecast broadly in line with that of analysts and the International Monetary Fund, as well as with recent comments from officials.

"The global recovery will gather strength. Within [Russia] we also see fairly sturdy growth, both from investment and from consumers," Klepach said. Russia's Urals oil is

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seen averaging $76 a barrel this year and next, compared with about $84 now and a previous forecast of $65 this year and $70 for 2011, he said.

Higher oil prices have been the key driver of Russia's recovery from its deepest contraction in 15 years in 2009, but the latest data suggest that the domestic economy is also improving.

Oil has also helped fuel a rally in the ruble. Klepach also said the Economic Development Ministry sees the ruble's real effective exchange rate rising 11.9 percent this year and appreciation slowing to 4.7 percent in 2011.

"11.9 percent is a very big appreciation, we have already passed the pre-crisis level. But the pace of appreciation is nonetheless a bit lower than we expected in December," he said.

In the first quarter, the real effective exchange rate rose 7.3 percent, Central Bank data shows.

The new forecasts will be discussed by the government next month and may lead to revisions in the budget.

April 29, 2010Russia Profile: Springtime Cheershttp://www.russiaprofile.org/page.php?pageid=Business&articleid=a1272562057

By Tai AdelajaRussia Profile

Don’t be Fooled by Over Optimistic Forecasts Based on Contradictory Figures

The Economic Development Ministry seems to have tried hard to return springtime optimism to investors on Wednesday with the release of its preliminary economic report, which puts first-quarter GDP growth at 4.5 percent. But while the economy is certainly picking up again, the spike is fragile, may be short lived, and some analysts think the ministry may have been massaging its figures.

Judging by the ministry’s data, Russia’s economic engine appears to be humming again. The official estimate of first-quarter 2010 economic growth is 4.5 percent compared to the same quarter in 2009. Gross Domestic Product (GDP) grew by 4.9 percent last month compared to March 2009. That is, it inched up 0.2 percent compared to February 2010. By contrast, in the first quarter of 2009, GDP dropped 9.4 percent as the financial crisis continued to ravage the economy, forcing investors to pull out en masse. On a seasonally adjusted basis, the economy grew 0.6 percent in the first quarter when compared to the last quarter of last year. Registered quarter-on-quarter growth was 1.7 percent in the fourth quarter and 2.0 percent in the third quarter of last year.

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Adding to the streak of good economic news on Thursday, the research group ROMIR released a survey that showed positive trends in consumer activity in the last week of April. Compared to the same period of 2009, consumer demand showed positive momentum, rising 10 percent countrywide. In Moscow and St Petersburg, household consumption rose 18.1 percent and 14.4 percent respectively.

Mark Rubenstein, a senior Banking Analyst at IFC Metropol said the figures indicate the continuation of strong economic growth that started in the fourth-quarter of 2009. "The growth rate is sure to rise a bit or remain the same in the second quarter, but there is no question of the economy slowing down, though we may see an insignificant drag in the third quarter of about 3.8 percent,” Rubenstein said, adding “Figures from domestic banks indicate that banks have started both retail and corporate lending and will continue to do so in the second quarter.’ Rubenstein believes this moderate but stable macro-economic growth is reducing risk factors for banks and encouraging more lending. Factors such as low inflation rates, stable exchange rates and high interest rates would attract foreign investors eager for sustainable economic growth.

But does the good economic news signal the beginning of robust economic growth? Many economists and analysts say: “No, not yet.”

Natalya Orlova, chief economist at Alfa Bank said the Economic Development Ministry's figures are not indicative of a healthy recovery as the market already anticipated a stronger growth in the first quarter. “The economy probably accelerated in quarter one on inventory re-build, as many companies were building up stock levels depleted through the recession. This means that the productive sectors of the economy are not yet benefiting from demand. The signs of recovery in the commodity, utility and export-related sectors can be attributed mainly to the cold winter and cannot translate into higher consumption levels. "Investment is still on a five percent decline year-on-year and total trade grew by only one percent in the first quarter; furthermore, both corporate and consumer loans remain down one percent year-to-date," Orlova said. "In a way, the structure of this growth is quite poor and it cannot be interpreted as Russia delivering an acceleration of consumption growth."

One problem with the new figures, economists say, is that they fail to show that rising oil export revenues continue to be the main driver of GDP. Prices for Russia’s Urals crude export blend gained 73 percent in the first quarter compared with the same period last year, to reach $75.30 per barrel.

Chris Weafer, chief strategist at UralSib, said the economy is still very fragile and almost completely dependent on revenue from the export of commodities and Chinese demand for materials, rather than domestic investment or consumption.

“The domestic indicators such as lending growth, investment spending and consumption, are all still growing at a very modest level,” Weafer said. “The revenue from oil, gas and materials exports is not trickling down into the domestic economy at a significant rate.

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Companies are not yet spending that revenue on new projects and the state, the main beneficiary of export revenue via the tax regime, is also hesitant to increase spending.”

Some economists have even suggested that the methods used by the Economic Development Ministry to arrive at the latest optimistic figures are not conventional.

Troika Dialog economist Anton Stroutchenevski says the figures do not add up. “The Economic Development Ministry estimates GDP growth at 4.5 percent year-on-year in the first quarter of 2010, implying a seasonally adjusted increase of 0.6 percent quarter on quarter. We are very skeptical about these estimates, as the quarter-on-quarter and year-on-year statistics for industrial output and investments were inconsistent,” Stroutchenevski said. “Besides, the data on quarterly GDP dynamics in 2009 are not reliable.” A closer look at the estimates, he said, would reveal that the ministry’s figures contradict each other as well as the previously estimated GDP dynamics. “If GDP was up 4.5 percent year-on-year in the first quarter of 2010, simple arithmetic shows a 1.1 percent quarter-on-quarter decline in the seasonally adjusted figure. If seasonally adjusted GDP grew 0.6 percent quarter-on-quarter in the first quarter of 2010, then the year-on-year figure should be at 6.3 percent,” Stroutchenevski said. “The inconsistency might be the result of revisions in quarterly GDP for 2009. If so, the new data have yet to be published.”

With the cost of borrowing money and obtaining credit still high and banks still reluctant to provide corporate and consumer loans, there is a high risk that economic growth will be cyclical in nature, economists say. 

“This is not a sign of robust economic growth, this is a sign of a very volatile economy,” said Roland Nash, head of research at Renaissance Capital. “The oil price went up and the cost of risk went down and the economy took off again,” Nash said. And while the Economic Development Ministry’s figures could indicate the start of high growth in Russia, such growth is not sustainable. “I think we would actually see high growth of 4.5 percent for about two or three years, and then we’ll have another collapse,” Nash said. “Government needs to push harder to diversify the economy and create the ability to determine its own monetary policy. In other words, it should create a financial system capable of leveraging capital effectively and bringing down inflation.”

Business, Energy or Environmental regulations or discussions

2010-04-30 07:08 Reuters: Russian markets -- Factors to Watch on April 30 http://www.iii.co.uk/news/?type=afxnews&articleid=7868673&action=article

MOSCOW, April 30 (Reuters) - Here are events and news stories that could move Russian markets on Friday.

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You can reach us on: +7 495 775 1242

STOCKS CALL (Contributions to [email protected]):

OTP Bank: "The external backdrop this morning is neutral. We expect the market to open around yesterday's closing levels."

Gallion Capital: "Growth on global bourses points to a high likelihood of Russian bourses opening in the black. At the same time, on Monday our markets are shut, and not all the players will want to remain long over the weekend."

EVENTS (All times GMT):

MOSCOW - Dixy trading update

MOSCOW - Sistema-Hals 2009 results

MOSCOW - Uralkali 2009 results

MOSCOW - Integra 2009 results

MOSCOW - Razgulay EGM

SOCHI, Russia - Russia's Prime Minister Vladimir Putin and his Ukraine's counterpart Mykola Azarov to hold a meeting of Russia-Ukraine intergovernmental commission

IN THE PAPERS:

Russian car makers will get 60 180 billion roubles ($2.05-6.16 billion) of government support in the next 10 years, Vedomosti business daily reports.

TOP STORIES IN RUSSIA AND THE CIS:

TOP NEWS: C.bank cuts rates, perhaps for last time

Suicide bomber kills 2 in Russia's Dagestan

Gazprom profit beats fcast, helped by E.ON deal

COMPANIES/MARKETS:

Hungary PM-elect plans talks with Russia on MOL

KTK cuts IPO price range, volume

Acron 2009 net profit down 27 pct, sees revival

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LSR placement priced at bottom of range

ECONOMY/POLITICS:

Russian rouble gains on oil; c.bank supports Econ Min raises oil price, GDP forecast ENERGY:

Tatneft to increase '09 dividend by 48 pct

Surgut Q1 net profit slumps 88 pct y/y

COMMODITIES:

Norilsk Nickel boosts Q1 metals output

Polyus Gold '09 profit up 5-fold, misses fcast

Polymetal swings to profit, misses forecast Chelyabinsk Zinc returns to profit

MARKETS CLOSE/LATEST:

RTS 1,588.62 -0.01 pctMSCI Russia 855.02 +2.02 pctMSCI Emerging Markets 1,020.43 +0.63 pct

Russia 30-year Eurobond yield: 5.128/5.091 pct

EMBI+ Russia 174 basis points over

Rouble/dollar 29.2175

Rouble/euro 38.7100

NYMEX crude $85.43 +$0.26ICE Brent crude $87.04 +$0.14

Bloomberg: Rosneft, Uralkali, Rushydro, KamAZ: Russian Equity Previewhttp://www.businessweek.com/news/2010-04-30/rosneft-uralkali-rushydro-kamaz-russian-equity-preview.html

April 30, 2010, 12:52 AM EDT

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By Anna Shiryaevskaya

April 30 (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 advanced 1.7 percent to 1,455.14 at the close in Moscow. The dollar-denominated RTS Index increased 1.6 percent to 1,588.75.

OAO Rosneft (ROSN RX): Crude oil rose the most in a month as European economic confidence increased to the highest level in more than two years and U.S. and German unemployment claims dropped, signals that the global economy is rebounding. Crude oil for June delivery rose $1.89, or 2.3 percent, to $85.11 a barrel at 12:15 p.m. on the New York Mercantile Exchange. Russia’s biggest oil producer advanced 0.5 percent to 241.20 rubles.

OAO Uralkali (URKA RX): Russia’s largest publicly traded fertilizer maker is due to report full-year earnings. Uralkali rose 2.7 percent to 126.90 rubles.

OAO Rushydro (HYDR RX): Russia’s state-controlled hydropower utility plans to release full-year earnings. Rushydro advanced 2.9 percent to 1.662 rubles.

OAO KamAZ (KMAZ RX): Russian Technologies said its board approved the purchase of 12.12 percent of OAO KamAZ. The country’s biggest truckmaker rose 2.3 percent to 72.60 rubles.

--Editor: Glenn J. Kalinoski

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at [email protected]

To contact the editor responsible for this story: Will Kennedy at [email protected].

Bne: Russian banks predict RTS to top 2000 by end of the year http://www.businessneweurope.eu/dispatch_text11584

bneApril 30, 2010

Russia's stock market is having a rough ride at the moment as investors confidence is rocked by uncertainties over oil prices, the Goldman Sach's fraud suit and the possible impending collapse of Greece and its indebted EU peers. But when it comes to Russia's prospects they are more sanguine and several banks say the leading RTS stock market index will top 2000 by the end of this year.

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Current Russia's stock market index is half way between its all time high set on May 19, 2008 of 2487.92 and its five year low of 492,59 set on January 23 this year. As the Russian economy is clearly bouncing back relatively strongly portfolio investors have been returning to Russia, where stocks remain amongst the cheapest in the world on a price to earnings ratio basis.

Russia's Ministry of Economic Development, reported this week that GDP growth in the first quarter was 4.5% year-on-year and updated forecast for the country's economic development in 2010-2013 that envisions higher oil-price and GDP figures, Deputy Economic Development Minister Andrei Klepach told reporters on Thursday.

The forecast for GDP growth has been increased from 3.1% by the end of this year to 4% and predictions for the following two years upped slightly as well (3.5% in 2011, 3.5% in 2012, and 4.2% in 2013). The faster pace of growth is being driven by the increase in the prediction for the average oil price in the coming years: this year's budget predicts average oil prices will be $58 per barrel, but the ministry is now predicting $76 for this year and next year rising to $79 by 2013.

However, the consensus amongst analysts is even at this elevate levels the government's forecasts remain extremely conservative. Some banks are predicting growth this year (or at least in the second half of this year) could hit as much as 8% as oil prices are probably going to go even higher than the official forecasts (provided Greece et al don't blow up).

As a result several banks have upgraded their forecasts for the growth of the RTS index this year. As bne reported in its annual "2010 Outlook" for Russia published in December most bankers were predicting a RTS index level of 1800-1900 at the start of this year. But now that figure is creeping up.

Troika Dialog was the first to upgrade, predicting the RTS would pass 2000 points by the end of this year. However, due to the current turbulence in the European debt markets, they are sticking with a short-term target of 1700. The RTS was trading around 1590 this morning after passing the 1690 mark earlier this month prior to the latest problems with Greece that started earlier this week.

The Bank of Moscow has also raised its RTS target from 1850 to 2000 points in early April. It was followed by VTB Capital last week, also predicting an RTS index of 2000 by December. Forecast of Renaissance Capital for the end of the year is still 1900, while Deutsche Bank and Uralsib are predicting 1950.

Currently Russian stocks are trading at a 35% discount to their emerging market peers on a P/E ratio basis, but VTB Capital says that this gap will narrow to 20% as the year wears on.

Oil is a key factor for investors into Russian equities, but as the strong growth expected for the second quarter kicks in increasing corporate earnings will over take oil as the main driver for increasing equity valuations, say most analysts. Indeed the growing

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profits of companies as the economy comes back to life will compensate for any dip in oil prices to some extent and only catalyse prices if oil stays where it is.

In general these predictions fit with the typical pattern of a an emerging market recovering from a big crash. What happened in 1999, following the collapse of the economy in 1998, was bond markets were the first to recover and indeed the Russian bond market is on fire right now as companies tap into the large pool of liquidity using bonds as they unable to borrow in the traditional way as banks remain unwilling to lend.

The action on the bond market eventually spills over to the equity market as confidence begins to return, which has been seen in Russia in April as the index rose steadily from around 1300 to top 1600 last week. At the same time there has been a revival of IPOs and several companies have successfully come to market to sell their shares. Still, this second phase in equity price recovery will take a while to get going. In the previous crisis it took almost exactly four years from the trough of the crash for equity prices to just get back to where they were prior to the collapse in October 2003, after which the market boomed.

If this pattern is repeated this time round then the RTS will not return to its previous peak somewhere between September 2010 or January 2012, depending on if you start counting the start of the crisis as the subprime fiasco in 2007 or the RTS all time low in January 2009. Splitting the difference it seems a good guess to say the RTS will regain its all time high sometime in the autumn of 2011.

Troika: Kostin asks Putin to cut interest rate on VEBs subordinated loan http://www.businessneweurope.eu/dispatch_text11584

Troika Dialog30 April 2010

VTB CEO Andrei Kostin met with Prime Minister Vladimir Putin yesterday and asked that the interest rate on its R200 bln subordinated loan from VEB be cut by 1.5 pp. The bank has no capacity to repay the loan now, Kostin said, but it will look to pay in one or two years.

VEB lent VTB R200 bln through 2019 at 8.0% in 2008. Reducing the rate by 150 bps would save the bank R3 bln a year. In our forecasts for the bank, we do not assume that the rate will be cut, but doing so would make NIM expansion in 2010 8 bps stronger than we currently project (44 bps versus 36 bps to 4.8%).

Separately, Kostin said that VTBs loan book remained flat in 1Q10 and guided 10_15% loan growth for this year (during the last conference call, CFO Herbert Moos guided 15% total loan growth and 20% retail loan growth). The average rate on loans that the bank issues is now just above 11%, he added.

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Cutting the interest rate would clearly be positive for VTB, but it would put other banks in an unequal position, as Finance Minister Alexei Kudrin told journalists earlier that the government does not plan to reduce rates on VEB subordinated loans made to banks in late 2008 – early 2009.

Andrew Keeley

Reuters: Sberbank to take controlling stake in Vesterhttp://www.businessneweurope.eu/dispatch_text11584

Aton30 April 2010Reuters (29 Apr) quotes the board chairman of Kaliningrad-based retailer Vester as saying that Sberbank Capital is planning to take a controlling stake in the company in May, as part of its debt restructuring process. Sberbank has not confirmed the information. We view the news as neutral for Sberbanks share price, as the reorganisation involving Vester is well-known to the market, and the potential deal should therefore not be a major surprise for investors.

RBC: Russia's top potassium producer reports plunge in net profit

http://www.rbcnews.com/free/20100430105554.shtml

      RBC, 30.04.2010, Moscow 10:55:54.The net profit of Uralkali under IFRS slumped 59 percent to RUB 9.1bn (approx. USD 311m) in 2009 compared to the previous year, the world's third largest potassium producer announced in a statement today.

      Uralkali's revenue amounted to RUB 33.8bn (approx. USD 1.15bn), 46 percent less than in 2008. Similarly, net sales revenue took a 46-percent tumble to RUB 29.3bn (approx. USD 1bn). Revised EBITDA stood at RUB 16.4bn (approx. USD 559m), and revised EBITDA margin amounted to 56 percent against 76 percent in 2008.

      The company's capital expenditures equaled RUB 14.1bn (approx. USD 481m), showing a 2-percent drop from RUB 14.3bn (approx. USD 488m) a year earlier.

Reuters: Uralkali eyes potash revival after '09 profit falls-UPDATE 1http://www.forexyard.com/en/news/Uralkali-eyes-potash-revival-after-09-profit-falls-2010-04-30T071055Z-UPDATE-1

Sunday May 02, 2010 07:10:07 AM GMTURALKALI/ (UPDATE 1)

* 2009 net profit falls 59 pct to 9.1 bln roubles

* Revenues fall 46 percent, EBITDA falls 60 pct

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* Company sees increase in 2010 potash sales, prices

* Moscow-traded shares fall 0.8 percent

(Adds details, background, share price)

MOSCOW, April 30 (Reuters) - Uralkali <URKA.MM> expects a revival in potash demand to boost sales this year after lower application of the soil nutrient by farmers worldwide led the Russian miner to post a 59 percent drop in 2009 net profit.

Uralkali, controlled by billionaire Dmitry Rybolovlev, said on Friday that net profit fell to 9.1 billion roubles ($312 million) last year. Potash production fell 45 percent and revenues dropped by 46 percent, the company said in a statement.

Denis Morozov, Uralkali's president, said that 2009 was "one of the most challenging" in the history of the potash industry.

"The global economic downturn forced farmers to reduce fertiliser application, which adversely affected Uralkali's financial results," Morozov, a former chief executive of miner Norilsk Nickel <GMKN.MM>, said in the statement.

"Demand for potash started to pick up in late 2009, prompted by the recovery of the agricultural sector as well as the restoration of price certainty in the potash market," he said.

"We are confident that this upward trend will continue in 2010 and drive an increase in prices and sales volumes."

Uralkali's export agent, Belarussian Potash Company (BPC), has forecast a 50 percent rise in potash sales this year as global demand for fertilisers bounces back from a year in which cash-strapped farmers ran down inventories.

Potash prices ballooned to more than $1,000 a tonne on the spot market in 2008, making Uralkali and other top miners, such as Potash Corp of Saskatchewan <POT.TO>, the darlings of stock market investors before the financial crisis hit demand.

As demand fell, Uralkali cut potash output to 2.6 million tonnes last year from 4.8 million tonnes in 2008.

But demand has since started to pick up: BPC resumed shipments to China after a barren 2009 and in March the company agreed to sell higher volumes to India. [ID:nLDE62B1OT]

Uralkali said adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 60 percent last year to 16.4 billion roubles. Its EBITDA margin was 56 percent versus 76 percent a year earlier.

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Revenues fell to 33.8 billion roubles and net revenues, excluding freight, rail transport and trans-shipment costs, fell to 29.3 billion roubles.

In a separate statement, Uralkali said its board of directors had recommended a total dividend payout of 3.6 billion roubles for 2009. This represents a dividend of 1.7 roubles per ordinary share and 8.50 roubles per Global Depositary Receipt.

Uralkali's Moscow-traded stock fell 0.8 percent by 0645 GMT, while the wider MICEX exchange <.MCX> fell 0.5 percent. ($1=29.18 Rouble) (Reporting by Robin Paxton; Editing by Jon Loades-Carter)

Bloomberg: UralChem Says It Cancels IPO on ‘Current Market Conditions’http://www.businessweek.com/news/2010-04-30/uralchem-says-it-cancels-ipo-on-current-market-conditions-.html

April 30, 2010, 12:52 AM EDTBy Ben Martin

April 29 (Bloomberg) -- UralChem Holding Plc, Russia’s second-largest maker of nitrogen-based fertilizer, said it has postponed its planned initial public offering intended to raise as much as $642 million.

“The company’s management and its shareholder believe that in the current market conditions, the offering cannot be priced at a level which reflects a fair value of the company,” Moscow- based UralChem said in an e-mailed statement.

UralChem, which is controlled by Chairman Dmitry Mazepin, posted a net loss of $77 million last year, compared with net income of $25 million in 2008, according to its IPO prospectus. Sales fell 44 percent to $949 million in 2009, and short-term debt was $534 million as of Dec. 31.

“We decided to postpone the IPO as we were not satisfied with the valuation that could be achieved in the current market conditions,” Mazepin said in the statement. “We may consider a public offering at another time in the future.”

Uralchem was planning to use funds from the IPO to refinance debt. Borrowings increased to $1.42 billion last year, and UralChem pledged controlling stakes in three chemical plants as collateral to lenders, the company has said.

--Editors: Ben Livesey, John Simpson

To contact the reporter on this story: Ben Martin in London [email protected].

To contact the editor responsible for this story: Ben Livesey at [email protected].

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Telegraph: Uralchem 'pulls float', reports sayhttp://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7653700/Uralchem-pulls-float-reports-say.html

Uralchem, the Russian fertiliser company, has pulled its planned $600m (£400m) London listing after insufficient demand from investors, it was reported on Thursday, citing people familiar with the matter. By Rachel CooperPublished: 6:45AM BST 30 Apr 2010

The Cyprus-registered company, with operations in Russia, may make an attempt to list on the London market at a later date, according to reports on Dow Jones Newswires, citing the same source.

Order books were to close on Thursday and global depository receipts would have been priced later. Conditional dealing had been expected to start on Friday, followed by formal admission and unconditional dealing next week.

On Wednesday, The Daily Telegraph reported that the Financial Services Authority (FSA) had been asked to investigate the proposed listing.

A former minority investor had written to the regulator claiming that the debt-laden company did not adequately disclose the risks to its business it its prospectus for the initial public offering, for which Morgan Stanley is the bookrunner. The ex-investor claimed that Uralchem's prospectus "falls far short" of explaining to investors the severe environmental criticism levelled at the company in recent years and the threat of legal action from both campaigners and Russian pollution authorities.

The FSA and Morgan Stanley declined to comment at the time.

But on Wednesday Uralchem was quoted as saying: "All the information about the company's financial position is disclosed in its preliminary prospectus in the right order, based on audited financial statements...Neither the company nor its subsidiaries have had any claims or orders from state authorities regarding its solvency."

Uralchem could not be reached for comment.

Reuters: UPDATE 1-Russia's LSR placement priced at bottom of rangehttp://in.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idINLDE63T02820100430

Fri Apr 30, 2010 10:27am IST

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* Priced at $8.50/GDR

* At bottom end of downwardly revised $8.50-9.50 guidance (Adds background, details)

MOSCOW, April 30 (Reuters) - Russian real estate company LSR Group (LSRG.MM) has priced its secondary placement at the bottom of an already lowered price range, a banking source said on Friday, in a further sign of rising global risk aversion.

LSR lowered its guidance to $8.50-9.50 per global depository receipt (GDR) earlier this week from the original $10-11 [ID:nWLA2680].

The placement was finally priced at $8.50, the banking source told Reuters. LSR had planned to sell 14.6 percent of its enlarged share capital.

Russian companies have rushed to the global capital markets to replenish their coffers after the country's first recession in a decade. [ID:nRUIPOS]

But woes over euro zone finances and the legal proble into Goldman Sachs (GS.N) have fuelled global risk aversion in recent weeks, prompting investors to demand higher premiums and forcing companies to cut their prices.

Seafood firm Russkoye More (RSEA.MM) slashed the size of its IPO after pricing at the bottom of the range earlier this month [ID:nLDE63F08G], while coal miner KTK (KBTKI.RTS) reduced the size of its placement by a third this week [ID:nLDE63S0WF].

Fertiliser firm Uralchem may cancel its planned listing altogether, sources told Interfax news agency on Friday. (Reporting by Dmitry Sergeyev; Writing by Toni Vorobyova; Editing by Lincoln Feast)

April 30, 2010 10:19

Interfax: LSR Group places GDRs at $8.5 per issue in SPO, company to raise $398 mln – sourcehttp://www.interfax.com/newsinf.asp?id=162110

MOSCOW. April 30 (Interfax) - The price of OJSC LSR Group's (RTS: LSRG) placement came to $8.5 per global depository receipt (GDR) early morning on Friday, a source in banking circles told Interfax.

The placement price therefore came to $42.5 per share.

The company stands to raise $398 million from the SPO.

Ih

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Reuters: Russian bank VTB ups Polyus Gold stake to 8.29 pcthttp://in.reuters.com/article/mergersNews_DUP1/idINLDE63T04F20100430

Fri Apr 30, 2010 11:10am IST

MOSCOW, April 30 (Reuters) - Polyus Gold (PLZL.MM) (PLZLq.L):

* Says Russian bank VTB (VTBR.MM) has increased stake in the company to 8.29 pct from 4.20 pct.

Moscow Times: Wal-Mart Rethinking Entry Strategy http://www.themoscowtimes.com/business/article/wal-mart-rethinking-entry-strategy/405183.html

30 April 2010By Anatoly Medetsky

Wal-Mart, the world’s biggest retailer, may opt to build its own stores in Russia in addition to buying an existing chain, a source familiar with the situation said Thursday.

Working under the radar, Wal-Mart’s Moscow office is looking at these two strategies rather than focusing solely on an acquisition, the source said.

The option of a purchase is “only a small part of the story,” the person said, asking for anonymity because he was not authorized to discuss the matter with the press.

A Wal-Mart spokesman said only that the company still considered Russia a promising investment prospect, declining to discuss specific plans.

“We … are studying the appropriate means of entering the market,” said Konstantin Dubinin, the retailer’s Moscow-based corporate affairs director.

The company has had an office here since the fall of 2008, and it expanded its staff earlier this year. They are currently on the 19th floor of the Northern Tower in the Moskva-City business district.

If Wal-Mart chooses to go it alone, it may construct its stores in three sizes: 15,000 square meters; 8,000 square meters; and of smaller floor space, the source said.

Retailers such as France’s Auchan and St. Petersburg-headquartered Lenta already boast hypermarkets of about 15,000 square meters, while Magnit is betting on 8,000-square-meter stores. Even so, the formats are believed to have plenty of room to grow.

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Should Wal-Mart build new stores, it will likely do the work itself, targeting locations in high-density residential areas, the source said.

Wal-Mart, known for its inflexibility in standards, would have to rebuild any property if it were to buy an existing premise, and it would want to change relations with suppliers, said Sergei Vasin, an analyst at investment company Metropol.

“They would buy no more than the land and the building,” he said. “Why then pay the extra for the brand name and logistics system?”

Wal-Mart has been in no rush to enter Russia since late 2007, when it resumed talk of making the move. Its international vice president, Juan Figuereo, said at the time that the chain was looking for a local partner for assistance.

Retail chains including Lenta, Kopeika, Karusel and Mosmart have since been named as potential targets for a takeover, although a deal has yet to materailize.

After months with no visible progress, Wal-Mart’s chief in Russia, Stephen Fanderl, left the company in October. The chain’s stalled expansion was the reason, Kommersant reported, citing people close to Fanderl.

“They are incredibly slow — slower than everyone could dream of or realize,” the source told The Moscow Times.

On the other hand, French rival Carrefour in October abruptly decided to pull out of Russia after just four months here, a move attributed to lack of any growth or acquisition prospects.

“Hypermarkets are a very underdeveloped segment,” Vasin said. “I still don’t understand why Carrefour left.”

Wal-Mart’s waffling may stem from the price for an entry ticket, he said.

“Seeing demand from foreign chains, perhaps the Russian players asking for too steep prices,” Vasin said.

April 30, 2010 11:25 Interfax: FAS recognized the "Troika" guilty

http://www.interfax.ru/business/txt.asp?id=134967

GOOGLE TRANSLATIONOne of the leading asset management companies - CC "Troika Dialog" puts its customers in error. This is the conclusion of FAS, recognizing "Troika" in violation

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of law on competition.

Moscow. April 30. FINMARKET.RU - Federal Antimonopoly Service (FAS) has recognized the management company "Troika Dialog" in violation of competition law. As stated by Interfax on FAS, the decision on the amount of penalty for the Criminal Code will be decided later. Earlier it was reported that in the event that the Troika guilty she faces a warrant for the elimination of violations, administrative fines of up to 500 thousand rubles. and the officer - a fine of up to 25 thousand rubles. The case against the "Troika Dialog" Antimonopoly Service initiated back in January. With complaints about the actions of the Criminal Code in antitrust agency contacted individuals - clients of the company. Signs of violations of the antimonopoly legislation were seen in the implementation of the "Troika" of unfair competition through the dissemination of information, misleading with respect to services provided asset management.Applicants - Customers the Troika previously reported that they did not participate in decisions about the formation of an investment portfolio, as tools to handle the investment manager. In this earlier clients have received official information about what they can choose an investment strategy. In addition, customers complained about the failure to comply with Code obligations during the working day to report a decrease in the value of client assets of more than 20%. As wrote in the Friday newspaper Kommersant, the clients of the Criminal Code "Troika Dialog" in parallel with proceedings in the FAS demand compensation for damages through the courts. In court, the plaintiffs argue that the Criminal Code in violation of the rules of trust management acquired on clients' money offshore stock options Troika Russia Fund (Cayman Islands). The plaintiffs suggest that companies are affiliated.

"Troika Dialog" - one of the leading investment groups, operating in the CIS markets. Key activities of the company, founded in 1991, is trading in securities, investment banking, asset management and private equity, personal investing and finance. In addition to Moscow's Troika Dialog is represented in 24 cities of Russia, as well as in New York, London, Nicosia, Kiev and Alma-Ata.

S&P: Russian Corporation of Nanotechnologies Outlook Revised To Stable On Strong Ongoing Support; Affirmed At 'BB+/B/ruAA+' http://www.cbonds.info/all/eng/news/index.phtml/params/id/460480

MOSCOW (Standard & Poor's) April 29, 2010--Standard & Poor's Ratings Services said today that it had revised its outlook on Russian Corporation of Nanotechnologies (RusNano) to stable from negative. RusNano is a state investment institution established by the government of the Russian Federation (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2; Russia national scale 'ruAAA'). At the same time we affirmed our 'BB+' long-term and 'B' short-term issuer credit ratings and our 'ruAA+' Russia national scale rating on RusNano.

"The outlook revision reflects strong ongoing support expected from the Russian

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government at least until 2012 in the form of capital injections and guarantees until 2015," said Standard & Poor's credit analyst Boris Kopeykin.

We use our criteria for government-related entities in rating RusNano. In spite of the recent government decision to change RusNano's legal status from a state corporation to a joint-stock company (in 2010-2011), we believe there is a "high" likelihood that it would receive timely, extraordinary support from the state in case of financial distress. Our opinion is based on RusNano's:• "Important role" for the government of Russia. The government created RusNano to support state policies on promoting economic diversification into innovative sectors. The corporation is supposed to invest in projects that apply nanotechnology and promote such investments in the market. It is one of the main tools of economic diversification in high-tech industries now used by the government. RusNano selects and provides financing in the form of capital injections, loans, and guarantees to start-ups in the sector. The government has approved regular large equity injections for RusNano until 2012. The company's capital is likely to reach Russian ruble (RUB) 130 billion (almost $5 billion at that moment$)-–the equivalent of about 0.3% of Russia's GDP--by year-end 2012; and • "Very strong" link with the Russian government, its full owner. RusNano will be transformed into a joint-stock company in 2010-2011, but privatization is not expected. The government is tightly monitoring RusNano, and several Russian ministers sit on the board. The government announced its plans to guarantee RusNano's expected bond issues of RUB182 billion in 2010-2015, including RUB53 billion in 2010. Politically it is a very visible entity.

The stable outlook balances our expectations of a "high" probability of timely extraordinary support and currently strong ongoing support with the uncertainty regarding RusNano's relationship with the state in the longer term, and still further uncertainties about the viability of the applied business model.

"Confirmation of the government's strong ongoing support to the company, and of the availability of timely extraordinary support to the company in an emergency in the longer term, might result in an upgrade," said Mr. Kopeykin.

In contrast, a downgrade might result if we observe signs of weakening ongoing or lower chances of timely extraordinary support. Additional pressure might come from larger-than-expected borrowings, particularly borrowings with only up to three-year maturities, and deterioration of the liquidity position, which we don't currently expect.

Portfolio.hu: Hungary Richter ups stake in Russian partner Protek via listing, IPOhttp://www.portfolio.hu/en/cikkek.tdp?k=1&i=20012

April 29, 2010, 2:12 pm

Hungarian drugs maker Richter Gedeon has participated in the combined stock exchange listing and initial public offering (IPO) of Protek Holding, one of the

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largest pharmaceutical wholesale and retail groups in Russia and Richter’s long-standing strategic partner.

Richter has announced on Thursday that, following a decision of its Board of Directors, it has taken part in the combined stock exchange listing and IPO of Protek Holding, one of the largest pharmaceutical wholesale and retail groups in Russia and which has been for some years Richter’s strategic partner in this market.

Richter has acquired through a private offering 7,557,143 Protek shares at a price of USD 3.50 per share.

As a result of this transaction which amounts to USD 26.45 million in total value, Richter has increased its stake in Protek Group to 5% from 4%.

"This transaction is considered to be an important element in Richter’s strategic efforts to strengthen both its market position on the Russian pharmaceutical market and the longstanding strategic partnership between Richter and Protek," Richter said in a statement on the website of the Budapest Stock Exchange (BSE).

Environmental Expert: Russia Strategic Infrastructure Leadership Forum Announces Project Presentations Worth $50 Billion http://www.environmental-expert.com/resultEachPressRelease.aspx?cid=28518&codi=166004

Source: Business Wire Apr. 30, 2010

WASHINGTON--(BUSINESS WIRE)-- CG/LA Infrastructure LLC, the world leader in strategic infrastructure project identification and development, has confirmed that more than US$50 billion in total infrastructure project value will be presented at the Russia Strategic Infrastructure Leadership Forum, to be held from May 11-13 at the Marriott Grand Hotel in Moscow. President of Russian Railways (RZD OAO) Vladimir Yakunin will deliver a keynote address on May 12th entitled “The Role of Railway Transport in the Modernization of Russia’s Economy”. The Russia Leadership Forum is jointly organized by the U.S.-Russia Business Council (USRBC) and CG/LA Infrastructure.

“The projects to be presented are critical to Russia’s global competitiveness,” notes Norman F. Anderson, President & CEO of CG/LA. “They span all sectors, from highways to high speed rail, from water and waste to energy and power – and represent the potential for creating 2 million new jobs in Russia.” According to Ed Verona, President and CEO of the USRBC, “The recent closing of Russia’s first highway PPP project demonstrates the viability of that investment model for similar projects in Russia. The Russian infrastructure sector has enormous potential, and we believe that this Forum is an excellent means of learning more about specific opportunities and making contact with individuals directly responsible for them.”

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Strategic Infrastructure Projects: The RSILF showcases world-class projects across seven sectors: strategic infrastructure, water/waste, surface transport, regional development, ports and logistics, PPP and energy. Confirmed PPP projects include the CKAD Moscow Ring Road, Stage I (US$ 10.7 Bn), the Yanino Waste Treatment Plant (US$ 300M), the Pulkovo Airport Expansion (US$ 1.2Bn), the Odintsovo Bypass (US$ 700M), and the Port of Sochi (US$ 392M).

International and Multilateral Leadership: The RSILF audience consists of 200+ global infrastructure leaders from finance, policy, engineering/construction, equipment and technology. Officials driving the level of infrastructure investment in Russia that will be speaking at the Forum in addition to Mr. Yakunin include experts from World Bank-IFC, EBRD, and OPIC, as well as:

Alexander Bazhenov, Director, Center for Public Private Partnerships, VEB Nick Chism, Partner, Head of Global Infrastructure & Projects Group, KPMG Michael J. Copps, Commissioner, U.S. Federal Communications Commission

(FCC) Naum Marder, Deputy Minister, RF Ministry of Communications and Mass

Media Valery Okulov, Deputy Minister, RF Ministry of Transportation Claudi Santiago, President and CEO, GE Oil & Gas Sergei Shishkarev, Chairman, Transportation Committee, RF State Duma Lawrence E. Strickling, Assistant Secretary for Communications and Information

and Administrator, National Telecommunications and Information, U.S. Department of Commerce

Denis Travin, Director, Department for Investment Projects, RF Ministry of Regional Development

Ambassador Philip L. Verveer, United States Coordinator for International Communications & Information Policy, U.S. Department of State

“Catalyzing Russia’s Global Competitiveness”: This year’s inaugural Forum in Russia proudly recognizes 7 world-class infrastructure firms as its sponsors: RSILF Platinum SponsorsGE Oil & Gas and KPMG, and Gold SponsorsBentley Systems, Caterpillar, Dechert LLP, Transstroy, and VTB Bank.

CG/LA Infrastructure LLC, the world leader in strategic infrastructure project identification and development (www.cg-la.com), created the Leadership Forum in order to bring infrastructure projects to life for equipment sellers, technology firms, service providers, EPC firms, investors, and government officials, through rapid-fire project presentations, a series of high-level keynotes, trend-spotting panel presentations, focused workshops, and pre-scheduled private meetings with project owners / operators. CG/LA hosts Leadership Forum events around the world focused on broad and specific segments of the infrastructure marketplace.

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Panarmenian: Eurasian Development Bank to allocate $90mln for reconstruction of Pulkovo airporthttp://www.panarmenian.net/eng/economy/news/47867/Eurasian_Development_Bank_to_allocate_90mln_for_reconstruction_of_Pulkovo_airport

April 29, 2010 - 10:05 AMT 05:05 GMT

PanARMENIAN.Net - The Eurasian Development Bank (EDB) will allocate $90mln to finance a project on establishment, reconstruction and operation of units within Pulkovo airport. Relevant document was signed today by Acting Managing Director on EDB Project Activity Gennady Zhuzhlev, the press service of EDB reported.

The funds will be allocated to Air Gates of Northern Capital, LLC, consortium, the winner of a tender on the right to sign an agreement on public-private partnership with the government of Saint Petersburg. The agreement is signed for 30 years and foresees reconstruction, development and operation of Pulkovo airport.

Besides EBD, the following banks provided financing to the project: EBRD, International Finance Corporation, Nordic Investment Bank, Black Sea Trade and Development Bank, Vnesheconombank and a range of commercial banks. The total sum of the financing by these banks amounts to 716mln euros.

“This is EDB’s first participation in a project on public-private partnership in Russia. And the bank’s leadership views it as a new technology for the Russian economy’s development,” the report reads.

The project on Pulkovo airport’s reconstruction is among priority fields of financing for EDB. The project is aimed at facilitating the development of integration processes: the airport provides services to regular flights connecting the capitals of all EDB member states.

Telegraph: Pernod sales pick up in US and Russia http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7653115/Pernod-sales-pick-up-in-US-and-Russia.html

Pernod Ricard saw spirits sales recover in the US and Russia in the past three months, and raised its earnings forecast for the year.

By Amy WilsonPublished: 5:30AM BST 30 Apr 2010

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The Paris-based company has seen an improvement in consumer spending in all markets apart from Western Europe, which Pierre Pringuet, chief executive officer, called the "one dark zone".

The maker of Absolut vodka and Perrier-Jouet champagne said total sales rose 14pc to €1.54bn (£1.3bn) in the third quarter, which ended in March, and like-for-like sales rose 16pc. For the first nine months of the year, sales slipped 4pc to €5.3bn, hurt by the weakness of the dollar and the Venezuelan bolivar. Venezuela is the sixth biggest Scotch market in the world.

Pernod's US sales returned to growth in the third quarter, with like-for-like sales up 3pc, after dropping for the previous six months. In Asia Pacific, sales rose 10pc, making it Pernod's biggest region for revenue. In France, sales rose 1pc.

However in the rest of Europe, sales dropped 6pc, hurt by weak demand in the UK, Ireland and Spain. Huge budget deficits and high unemployment are holding back consumer spending in those economies. Eastern European sales improved, particularly in Russia.

Champagne sales remained depressed, with Mumm down 9pc and Perrier-Jouet off 11pc. Pernod now expects profit excluding acquisitions and disposals to climb 3pc this year, higher than it had previously forecast.

The company is disposing of brands it sees as non-essential in order to repay the debt it took on to buy vodka brand Absolut in 2008. It has already sold the bourbon brand Wild Turkey to Campari and liqueur Tia Maria to Saronno, and plans more disposals.

Rival Diageo is scheduled to report third-quarter results next week. The company, whose biggest brands include Smirnoff and Guinness, said at the end of the first half that sales had improved in emerging markets, while demand in the US and Western Europe remained sluggish.

RusBizNews: Italian modernization of the Urals financeshttp://www.rusbiznews.com/news/n793.html

30.04.2010 — Analysis

The largest Italian financial group Intesa Sanpaolo came to Russia in early seventies when their first representative office had been opened in Moscow. Today, thanks to the work of the Moscow office and Banca Intesa, the Russian subsidiary bank of the group, Intesa Sanpaolo is now represented in 25 Russian regions. Aleksey Serebryakov, the Director of the Uralsky branch of Banca Intesa, in the interview to RusBusinessNews spoke about how Italians are strengthening their positions in the Urals banking market. 

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- In 2010 Banka Intesa merged with a bank that has been working in the Urals for a long time - KMB BANK, a trend setter in terms of working with small and medium sized business. What was the goal of the deal and what results should the clients expect?

- The reorganisation has been a part of the strategic plan for the development of the presence of the group in Russia. Intesa Sanpaolo, the bank that owns the controlling interest in Banca Intesa (86.75%), is one of the largest in Europe, and serves more than 19.4 million clients in 40 countries. Prior to 2010 there were two subsidiary companies in Russia - CJSC Banca Intesa serving medium-sized and large companies and KMB BANK specialised in lending to small and medium-sized companies. The reorganisation enables us to use the experience of both of them for the establishment of one strong bank experienced in different segments of the market. Moreover, our plans include the development of new spheres of activities such as, for instance, factoring and forfeiting. There is no doubt that the reorganisation will enable us to participate more actively in implementation of important regional projects in industry and trade.

- Do the Italian branches of the bank differ from Russian?

- Yes, they do, in terms of style and layout. In Italian offices, for instance, we do not have the all too familiar blind partitions. Glass partitions give the feeling of lightness, openness and transparency, including that in the work of the Bank. Particular attention is given to the creation of the atmosphere of home and comfort which is so important for Italians; we offer comfortable soft furniture, lighting that creates the feeling of comfort and warmth, round wooden tables reminding of dinner tables gathering the whole family. State of the art designer solutions are at the foundation of the Bank office decoration concept.

Moreover, we are working according to the "one stop" principle. In Russian bank you first talk to a specialist and then go to a cashier. We have all services performed by just one member of staff, the personal manager. 

- Does the product range have any differences?

- In general Italy which is the birthplace of banking, probably has the richest banking experience in the world. This is what determines the high professionalism of the banking system as a whole. The key difference between Russian and Italian banking products is in the price of credit resources which is lower in Italy and this is determined by the macroeconomic differences between the countries. 

- The 2009 has passed under the banner of the financial crisis. How did your bank manage to survive the difficult situation? Does the Russian crisis differ from the Italian? 

- In Europe and in Russia the crisis manifested itself in different ways. Italy has been affected by the crisis much less than other countries, including Russia. The Intesa

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Sanpaolo Group is one of the most liquid financial groups in Europe. Thanks to the balanced approach to work and the professionalism of the management the Group has managed to avoid any serious shakeups. In Russia, of course, it was harder for us, we did have bad debtors, but we have always tried to understand the borrower's situation and offered debt restructuring. Arrears in the Urals Regional Centre of Banca Intesa are at the level of 5% which is much lower than the market average. At the moment we feel confident enough. I think this is not the first and not the last crisis while every crisis is an experience.

Thanks to our parent bank today we are a part of the group of most reliable Russian banks, we are 100% owned by foreign capital, our business is transparent, reliable, and stable, which is the key advantage for clients. 

- How attractive is the Urals region for the Italian bank? Are you planning to continue expanding in it?

- Banca Intesa is already assuming serious positions in the financial services market in the Urals Federal District. Russia's largest companies which constitute the real sector of the country's economy are located here. The Urals is the most important source of the budget money in Russia, it has huge raw materials reserves, here we see the state of the art technologies implemented, and the region demonstrates good economic indicators. This region is extremely interesting for Banca Intesa. 

As far as the crisis is concerned we see a positive behaviour in the Urals. I would divide the course of the crisis into several stages: the first stage in late 2008 - early 2009 was characterised by the acute lack of liquidity and, as a consequence, the decline in the solvency of clients, bankruptcies of banks etc. The second stage - March-May 2009 - was a time when private individuals were searching for optimal options for the investment of their savings and credit institutions were trying to manage bad debts. The third stage began in August 2009 when everybody has more or less adapted to the new conditions when the situation started to stabilise. Most importantly, the psychological mood had changed. Every manager had become aware that the work has to go on, just taking into account the new economic realities. Today companies are looking for new spheres of activity and development, reviving "old" projects. This is one of the key symptoms that the situation is stabilising.

As far as Banca Intesa is concerned in the Urals Federal District we have 11 operation offices and branches 4 of which were opened in 2008. For a bank with foreign capital this is a very good figure. In Ekaterinburg and Chelyabinsk, Russian industrial centres, we have one of the largest credit portfolios in the Bank. In 2010 we are not planning any increase of the number of offices in the region but in the future we are planning to increase the number of branches Banca Intesa in the Urals. 

- Are you planning to strengthen the area of working with private individuals?

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- In the conditions of the crisis Banca Intesa has not stopped its programmes for private individuals; on the contrary, we opened new spheres of work with private clients. The Bank has conducted a serious analysis of the situation in the market the results of which served as a basis for the formulation of main approaches to working with private clients. In particular, we are oriented to a client with average or high income and for this segment we have developed integrated banking programmes. Today Intesa Classic and Intesa Premium products seem to be most attractive to our clients. 

This year Banca Intesa has introduced to the market a new service for private clients - investing money into private equity plans managed by Troika Dialog, the largest managing company in Russia. 

- Do you have any unique products which Russia did not have before your bank came here?

- Yes, we developed a really unique product - Intesa UNO - which enjoys a great demand. This is a deposit of 15,000 Euro or 500,000 roubles or more on which the parent bank Intesa Sanpaolo gives guarantees of return in full of any sum of deposit and accrued interest. I would like to remind you that the Agency for Deposit Insurance only guarantees the sums of money not exceeding 700,000 roubles. Guarantees of Intesa Sanpaolo are provided without the upper limit of the deposit sum. The duration of the deposit is 365 days without the possibility of partial or full withdrawal or adding to the deposit. The interest amounts to 9% for a rouble deposit and to 2.75% for a deposit in Euro. 

Another exclusive service of Banca Intesa is the reimbursement of TAX REFUND value added tax forms. This is the service for people travelling to Italy and shopping there under the condition that they are resident outside the country of the purchase. As a result it is possible to get back from 4 to 20% of price of the purchased goods depending on the VAT rate. We are sure that this service will enjoy a great demand amongst the people of the Urals. 

- What plans do you have for the future in Russia and in the Urals Federal District?

- In 2009 our credit policy was aimed at the support of the size of the credit portfolio, now we have plans to increase it by 15-20%. As far as the strategic development is concerned, our bank is the important link in the relationship between Russia and Italy.

This is confirmed, for instance, by large credit contracts between Intesa Sanpaolo and Russian State-owned banks signed in late 2009 and early 2010. For instance in 2009 in Rome an agreement was signed with Vnesheconombank on the allocation of 100 million Euro for the support of small and medium-sized business in Russia, including the Urals. The support will be given mainly to those companies which trade with Italian companies and to Italian companies planning to come to or to strengthen their position in the Russian market. This year Banca Intesa provided credit resources for Eximbank of Russia

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in the amount of 100 million US dollars for three years for the support of export of Russian industrial products, Italy inclusive. 

- What non-financial projects are you implementing or planning to implement in Russia? 

- Most important thing that defines us as a part of Intesa Sanpaolo Group is the careful consideration of the interests of the society whose development directly depends on the degree of the social responsibility of business. Intesa Sanpaolo is doing a lot in this sphere. 

For instance the Bank has gathered one of the most interesting collections of Russian Icons in the West, unique in terms of the total number of the collected items, the breadth of the represented iconography schools (Moscow, Novgorod, Pskov, Tver, Northern) and in terms of having the rarest examples of the Ancient Russia iconography. The most part of the collection is displayed in the Gallerie di Palazzo Leoni Montanari which is situated in the historical centre of Vicenza near Venice.

Moreover, Intesa Sanpaolo is the general sponsor of the La Scala Theatre. For many years the company has been working with FC Milan.

The scale of such activities in Russia is, of course, not as big. Of recent projects worth mentioning one is the photo art exhibition Cinema and Pasta in Chelyabinsk. Photos show brilliant actors and great directors of Italian cinematography at feast tables, receptions, and, of course, cooking and tasting pasta. There are photos of Adriano Celentano, Anna Magnani, Roberto Rossellini, Sophia Loren, Marcello Mastroianni, Alberto Sordi, Claudia Cardinale, Vittorio De Sica.

There are other projects too. They are mainly aimed at helping children, at finding their talents. For instance, in December 2009 in Ekaterinburg we took part in the opening of a sports and health complex where the youth football training centre VIZ started its work. We gave the kids' football team a trade mark ball signed by FC Milan players as a symbol of international unity of football fans and the aspiration to win. 

We see as very important the cooperation with non-profit organisations specialising in the development of Russian-Italian cooperation, we actively support and participate in Russian-Italian forums helping Urals companies find Italian partners and lead their business to the international level. 

Interview prepared by Maria Truskova

Activity in the Oil and Gas sector (including regulatory)

Reuters: Russia's Tatneft 2009 net profit jumps sixfoldhttp://in.reuters.com/article/rbssEnergyNews/idINLDE63S1N520100430

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Fri Apr 30, 2010 11:42am IST

MOSCOW, April 30 (Reuters) - Net profit of Russian mid-sized oil firm Tatneft (TATN3.MM) soars to 54.37 billion roubles ($1.86 billion) in 2009 from 8.41 billion roubles in 2008, the company said on Friday.

Revenues fell to 380.65 billion roubles from 444.33 billion roubles in the previous year.

(Reporting by Vladimir Soldatkin; editing by Toni Vorobyova)

Reuters: Russia's Surgut Q1 net profit slumps 88 pct y/yhttp://in.reuters.com/article/rbssEnergyNews/idINLDE63Q08R20100430

Fri Apr 30, 2010 10:44am IST

MOSCOW, April 30 (Reuters) - Surgutneftegas (SNGS.MM), Russia's fourth-largest oil company, reported an 88 percent slump in first-quarter net profit to 8.37 billion roubles ($286 million) against 68.8 billion roubles in the year-ago period.

Compared to the fourth quarter of 2009, net profit was down 64 percent, the company said in a statement on Friday.

The results are to Russian Accounting Standards. Surgut is the only big Russian oil firm that does not report to international standards.

Portfolio.hu: Hungary Orbán set to mend bout fast between MOL and "the Russian company with an unpronounceable name"http://www.portfolio.hu/en/cikkek.tdp?k=1&i=20016

April 30, 2010, 8:51 amHungary’s incoming Prime Minister has firm plans how to settle the bout between local fuels group MOL and Russia’s Surgutneftegaz, which owns a 21% stake in the company but due to red tape was unable to vote at MOL’s second annual general meeting in a row on Thursday. Viktor Orbán said the current situation does not serve the interest of MOL, "the Russian company with an unpronounceable name or the two nations." To a question whether the state would be willing to buy out Surgut’s MOL stake he responded that the new government will also strive to protect the country’s strategically important companies. Orbán told a press conference on Thursday that MOL is of key strategic importance for Hungary, reminding that he had also stood behind the inception of 'Lex MOL’, a law created to protect MOL from being taken over by Austria's OMV. He noted that the government will continue to make efforts to protect strategically important Hungarian

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companies.

Orbán said he would like to settle the debate with the Russians within a fixed period of time, adding that he has very firm ideas how to resolve the situation that does not serve the interest of any of the parties involved, including MOL, "the Russian company with an unpronounceable name", the Hungarian state or the Russian Federation.

He said they will hold talks with the Russians "very soon after the formation of the government", adding that they "would like to achieve agreements very quickly."

Moscow Times: Slavneft Finishes Refinery http://www.themoscowtimes.com/business/article/slavneft-finishes-refinery/405181.html

30 April 2010

Slavneft said Thursday that it completed work on processing units at its biggest refinery.

Units including a crude distillation unit and catalytic cracker at the Yanos plant have returned to production, said Yelena Miakina, a spokeswoman for the producer.

(Bloomberg)

29.04.2010

Oil and Gas Eurasia: Sibneftemash To Work With Baker Hughes, Maip Oil Tools and CGHhttp://www.oilandgaseurasia.com/news/p/0/news/7188

Sibneftemash intends intensify efforts to develop cooperation with Russian and foreign oil service equipment manufacturers to increase its own sales markets, Vsluh.ru has reported. According to the news wire, Sibneftemash is actively engaged in negotiations with a number of companies and has already made contact with CGH and Maip Oil Tools. Vlush.ru also reported that it learned from a source that the company intends to cooperate with Baker Hughes in producing downwell and oil service equipment. Copyright 2010, Vsluh.ru. All rights reserved.

RBC: Kovykta’s future almost settled http://www.rbcnews.com/komment/komment.shtml

TNK-BP’s stake will be bought out with Gazprom and Rosneft dividends

The future of the Kovykta gas field is nearly decided – TNK-BP’s stake in Rusia Petroleum, which owns the license to the Kovykta field, will be sold to the state-owned Rosneftegaz. The parties are currently negotiating the price. With a number of companies bidding for the asset, TNK-BP is in a strong position to ask for a considerable sum, but at

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the moment, Rosneftegaz has no money to pay for it. A source in TNK-BP confirmed that the parties had so far been unable to agree on a price.

Notably, TNK-BP has continued talks with other prospective buyers, which enables the company to raise the price. Initially, Gazprom was the only contender for the asset. But Rosneft – whose interests are now lobbied by Deputy Prime Minister Igor Sechin - and businessman Gennady Timchenko recently stepped into the ring.

Meanwhile, Rosneftegaz is really short of cash right now. The company received roughly RUB 16.2bn (USD 550m) in dividends for 2008 from Rosneft and Gazprom, in which it controls 75.16 and 10.74 percent, respectively. Dividends for 2009 have already been declared, and they are pending corporate approvals in June. The government’s urging of the companies to pay out up to 25 percent of the companies’ respective net profits as dividend was prompted by the necessity to buy a whole range of assets, including the stake in Rusia Petroleum. With this in mind, Rosneft boosted its dividend by 20 percent to RUB 2.3 (approx. USD 0.078) a share, and Gazprom hiked its dividend up by a factor of 6.6 – to RUB 2.39 (approx. USD 0.081) a share. In the estimation of Dmitry Lyutyagin, a Veles Capital analyst, Rosneftegaz will get RUB 6bn (approx. USD 204.22m) from Gazprom, and RUB 18.3bn (approx. USD 622.87m) from Rosneft for 2009, bringing the total for the past two years up to RUB 40.5bn (approx. USD 1.38bn).

A source in TNK-BP revealed to RBC Daily that the company was hoping to agree on a price that would cover the field’s development costs and feature a premium. TNK-BP’s investment in Kovykta totaled USD 664m, and before the crisis the company’s co-owner, Viktor Vekselberg, put the asset within the range of USD 0.9bn-1.2bn. Just a month ago, however, he cited a different figure: USD 700m-900m.

Gazprom, which inked a memorandum of understanding with TNK-BP in 2007, has stayed in the background and refrained from voicing any official view. In fact, the last time the company mentioned the issue was in February 2010, when CEO Alexei Miller stated that Gazprom did not need Kovykta’s resources to export gas to Asia.

Yet, Natural Resources Minister Yury Trutnev made a surprise move to support the gas monopoly just a short time ago: he announced that the ministry was ready to reconsider revoking the Kovykta license if TNK-BP allowed Gazprom to develop the field. By all appearances, the minister remembered that if TNK-BP sold the stake to Gazprom, it would get the option to buy back 25 percent plus one share under the memorandum.

The ministry has repeatedly threatened Rusia Petroleum with license revocation, and with good reason: work on the field in violation of the license agreement was only marginal. The most recent check was held in February, but Deputy PM Sechin (who now chairs both Rosneft’s and Rosneftegaz’s board of directors) stood up for the company.

TNK-BP wants roughly USD 1bn for the assets, while the government is likely to be gravitating towards USD 500m, senior analyst at Arbat Capital Vitaly Gromadin noted. He added that the sides might meet halfway and come to an agreement at around USD

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700m. He did not rule out that the stake could eventually end up in Gazprom’s hands, since the field could provide gas for exports to China, and its development relies heavily on the outcome of ongoing gas price talks with China.

Analytical department of RIA RosBusinessConsulting

Gazprom

Troika: Gazprom replaces 187% of proven gas reserves in 2009 http://www.businessneweurope.eu/dispatch_text11584

Troika Dialog30 April 2010

Gazprom groups 2009 SPE_PRMS reserves audit by DeGolyer & MacNaughton shows a persistently strong reserves base as the company was beefed up in recent years by the purchase of Gazprom Neft and smaller assets, reserves bought at auctions and tenders, as well as large fields directly allocated to the gas monopoly by the state.

The hike in gas reserve life from 33 to 40 years and the high reserves replacement ratio of 187%, which occurred on the back of sharply reduced exploration drilling (down 37.5% y_o_y), seem to be one_off phenomena, resulting from a 16.0% slump in gas production. Anyway, Gazproms reserves remain large enough to allow for a gradual recovery in production to well above the pre_crisis level, highlighting the fact that constraints in future gas output stem more from demand than reserves.

The main source for growth in proven and probable gas reserves last year was the license to the Kruzenstern field on Yamal, with 2P reserves tallied at 1,189 bln m3, which the state allocated directly to Gazprom.

Proven liquids reserves posted a replacement ratio of 133%, which we attribute mainly to the incorporation of oil reserves held by Sibir Energy, which is now controlled by Gazprom Neft, in the total reserves score, as well as improved oil recovery.

Proven gas ABC1 reserves improved, but remain well below the 2007 level, as the companys reserves base was swollen by less explored licenses in previous years.

Gas reserves to ABC1 standards totaled 33.58 trln m3, up just 1.4% after a 11.2% increase in 2008. Exploration in Russia added 469 bln m3 of gas and 96 mln tonnes of liquids, which exceeded relevant production by 1.5% and 148.0%, respectively.

The Shtokmanovskoye field secured 41% of gas reserves added through exploration.

The main increase in oil reserves is attributed to Gazprom Nefts South Priobskoye and

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Zimnee fields. Part of oil and gas reserves additions were due to acquisitions (Sibir Energy and SeverEnergia).

Meanwhile, Gazproms exploration efforts abroad have yet to bring tangible results.

Foreign oil and gas reserves account for less than 1% of the groups total score.

However, foreign exploration financing went up from R9 bln in 2008 to R16 bln last year, while the share of foreign exploration in total exploration financing climbed from 16% in 2008 to 25% in 2009.

Easy Bourse: Gazprombank Follows Horrid '08 With $1.9 Billion Profit –Vedomostihttp://www.easybourse.com/bourse/actualite/news/825035/gazprombank-follows-horrid-08-with-1.9-billion-profit-vedomosti.html

Publié le 30 Avril 2010

- DOW JONES NEWSWIRES Gazprombank, the biggest nonstate Russian bank by assets, is now the most profitable of its country's banks, business daily Vedomosti reports Friday based on new financial results. According to a report released Thursday by OAO Gazprom (GAZP.RS), the natural gas giant that directly and indirectly controls nearly 92% of Gazprombank Group, the company had a net profit of 56.5 billion rubles ($1.93 billion) in 2009. That's a huge swing from the crisis year 2008, when unsuccessful bets on foreign-currency futures caused a RUB92 billion loss, RUB68.2 billion from banking operations alone. A healthier Russian stock market and a more favorable exchange rate for the ruble led to last year's much-improved performance, Gazprombank Deputy Chief Executive Alexander Sobol told Vedomosti. Gazprom's 2009 and fourth-quarter results for itself and Gazprombank were compiled using international financial reporting standards. Newspaper Web site: www.vedomosti.ru -Dow Jones Newswires; 212-416-2900

Troika: Gazprom Energoholding CEO comments on electricity assets http://www.businessneweurope.eu/dispatch_text11584

Troika Dialog30 April 2010

Head of Gazprom Energoholding Denis Fedorov made a few statements in an interview with Reuters yesterday.

The issue of a “single share” exists, and Gazprom will decide by year end on the possible single share consolidation of its gencos, although for now it finds this a costly process.

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Potential consolidation of OGK_2 and OGK_6 may take place no sooner than next year, but no exact deadlines have been set. The company is striving toward consolidation, but it might get along by just uniting the executive bodies.

Thus, it has yet to be finally decided that OGK_2 and OGK_6 will be converted to a single share. We believe that it would make sense from a market point of view and would be positive for the stocks.

Gazprom's gencos might adopt its parents dividend policy, which implies an annual payout of no less than 17.5% of RAS net income. This will be developed by year end, and then approved for all four gencos (OGK_2, OGK_6, TGK_1 and Mosenergo). While signs of potential dividends are positive, we would generally not expect meaningful dividends in the next couple of years due to gencos heavy capex programs.

Gazprom is in no hurry to sell its minority stakes in the non_core assets, MRSK, Federal Grid Company (FGC) and Eastern Energy Systems (EES). It is considering swaps;

selling now is not profitable. Foreign investors have shown interest, but there has been no interesting proposal so far. The gas giant owns 10.5% stakes in MRSK Holding and EES and 3.9% in FGC. It is positive for these stocks that the company is not rushing to sell.

Gazprom is mulling asset swaps with other market players. It has approved the list of assets for swaps with InterRAO UES and the ball is now in the latters court. InterRAO UES is interested in its own shares and Gazprom's stake in their future Kaliningrad TETS_2 JV.

Gazprom is also discussing asset swaps with IES, Fortum (which has proposed its Russian and foreign assets) and one more Russian genco. IES is interested in assets that are of interest to InterRAO UES, and if the latter drags on with negotiations, Gazprom might accelerate discussions with IES. As a result of these swaps, Gazprom wants to obtain a controlling stake in TGK_7, which it has been interested in for a long time.

The gas company owns around 8.3% of InterRAO UES, and the potential impact on InterRAO UES will depend on the deal terms. We treat the possible emergence of Gazprom as a controlling shareholder of TGK_7 as neutral for now (we would be cautious with expectations of a tender offer). Among the gencos, we currently prefer OGK_3, OGK_1 and OGK_6.

Alexander Kotikov