Russian Analytical Digest No 72
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Russia Intelligence
N°70 - January 31 2008 Published every two weeks / International Edition CONTENTS SPOTLIGHT P. 1-3 Politics & Government c Medvedev’s Last Battle Before Kremlin Debut SPOTLIGHT c Medvedev’s Last Battle The arrest of Semyon Mogilevich in Moscow on Jan. 23 is a considerable development on Russia’s cur- Before Kremlin Debut rent political landscape. His profile is altogether singular: linked to a crime gang known as “solntsevo” and PRESIDENTIAL ELECTIONS sought in the United States for money-laundering and fraud, Mogilevich lived an apparently peaceful exis- c Final Stretch for tence in Moscow in the renowned Rublyovka road residential neighborhood in which government figures « Operation Succession » and businessmen rub shoulders. In truth, however, he was involved in at least two types of business. One c Kirillov, Shestakov, was the sale of perfume and cosmetic goods through the firm Arbat Prestige, whose manager and leading Potekhin: the New St. “official” shareholder is Vladimir Nekrasov who was arrested at the same time as Mogilevich as the two left Petersburg Crew in Moscow a restaurant at which they had lunched. The charge that led to their incarceration was evading taxes worth DIPLOMACY around 1.5 million euros and involving companies linked to Arbat Prestige. c Balkans : Putin’s Gets His Revenge The other business to which Mogilevich’s name has been linked since at least 2003 concerns trading in P. 4-7 Business & Networks gas. As Russia Intelligence regularly reported in previous issues, Mogilevich was reportedly the driving force behind the creation of two commercial entities that played a leading role in gas relations between Russia, BEHIND THE SCENE Turkmenistan and Ukraine: EuralTransGaz first and then RosUkrEnergo later. -
The Politics of Memory in Russia
Thomas Sherlock Confronting the Stalinist Past: The Politics of Memory in Russia Attempting to reverse the decline of the Russian state, economy, and society, President Dmitry Medvedev and Prime Minister Vladimir Putin have paid increasing attention over the past two years to the modernization of Russia’s socioeconomic system. Aware of the importance of cultural and ideological supports for reform, both leaders are developing a ‘‘useable’’ past that promotes anti-Stalinism, challenging the anti-liberal historical narratives of Putin’s presidency from 2000—2008. This important political development was abrupt and unexpected in Russia and the West. In mid—2009, a respected journal noted in its introduction to a special issue on Russian history and politics: ‘‘turning a blind eye to the crimes of the communist regime, Russia’s political leadership is restoring, if only in part, the legacy of Soviet totalitarianism....’’1 In December 2009, Time magazine ran a story entitled ‘‘Rehabilitating Joseph Stalin.’’2 Although the conflicting interests of the regime and the opposition of conservatives are powerful obstacles to a sustained examination of Russia’s controversial Soviet past, the Kremlin has now reined in its recent efforts to burnish the historical image of Josef Stalin, one of the most brutal dictators in history. For now, Medvedev and Putin are bringing the Kremlin more in line with dominant Western assessments of Stalinism. If this initiative continues, it could help liberalize Russia’s official political culture and perhaps its political system. Yet Thomas Sherlock is Professor of Political Science at the United States Military Academy at West Point and the author of Historical Narratives in the Soviet Union and Post-Soviet Russia (Palgrave Macmillan, 2007). -
Report on the Mission to Golden Mountains of Altai (Russian
REPORT ON THE MISSION TO GOLDEN MOUNTAINS OF ALTAI WORLD HERITAGE SITE RUSSIAN FEDERATION Kishore Rao, UNESCO/WHC Jens Brüggemann, IUCN 3 TO 8 SEPTEMBER 2007 TABLE OF CONTENTS Acknowledgements………………………………………………………………………..3 Executive Summary and List of Recommendations…………………………….……..4 1. Background to the Mission……………………………………………………….……5 2. National Policy for the World Heritage property……………………………………..6 3. Identification and Assessment of Issues……………………………………………..6 Achievements………………………………….………………………………………6 Plans for the construction of the gas pipeline………………………………………7 Management issues….…………………………………………………………….…9 Dialogue with NGOs………………………………………………………………….12 4. Assessment of the State of Conservation of the property………………...……….12 5. Conclusions and Recommendations…………………………………………….…..13 6. List of Annexes…………………………………………………………………………15 Annex A – Decision of the World Heritage Committee………….………………..16 Annex B – Itinerary and programme………………………………………………..17 Annex C – Description of the Altai project………………………………………….19 Annex D – Maps………………………………………………………………………23 Annex E – Statement of NGOs……………………………………………………...26 Annex F – List of participants of round-table meeting….…………….…………...27 Annex G – Photographs……………………………………………………………...28 2/29 ACKNOWLEDGEMENTS The mission team would like to thank the Governments of the Russian Federation and the Republic of Altai for their kind invitation, hospitality and assistance throughout the duration of the mission. The UNESCO-IUCN team was accompanied on the mission from Moscow by Gregory Ordjonikidze, Secretary General of the Russian National Commission for UNESCO and his staff Aysur Belekova, as well as by Alexey Troetsky of the Russian Ministry of Natural Resources and Yuri Badenkov of the Russian Academy of Sciences. Two representatives of Green Peace Russia – Andrey Petrov and Mikhail Kreyndlin also travelled from Moscow to Altai Republic and met the mission team on several occasions. The mission team is extremely grateful to each one of them for their kindness and support. -
CORRUPTION PIPELINE: the Threat of Nord Stream 2 to EU Security and Democracy
CORRUPTION PIPELINE: the threat of Nord Stream 2 to EU Security and Democracy Ilya Zaslavskiy Ilya Zaslavskiy | Corruption Pipeline: The Threat of Nord Stream 2 to EU Security and Democracy | Free Russia Foundation, 2017 1 CONTENTS INTRODUCTION 3 NS2 AS A TOOL OF KREMLIN’S POLITICAL INFLUENCE AGAINST NEIGHBORS AND CORRUPTION 4 ACTUAL RESULTS OF NORD STREAM 1 7 ROOTS OF GAZPROM’S APPEASEMENT IN EUROPE 10 IMPLICATIONS OF NS2 FOR WESTERN POLICY-MAKERS 16 Corruption Pipeline: The Threat of Nord Stream 2 CONTENTS to EU Security and Democracy I. INTRODUCTION his paper is a continuation of publications on security architecture. This Moscow-led pipeline Tthe Kremlin’s subversive activity in Europe seemingly being served as a free and lucrative prepared by Free Russia Foundation. The first gift to European energy corporations in reality paper, The Kremlin’s Gas Games in Europe, comes at the expense of taxpayers and the published jointly with the Atlantic Council, reasonable long-term development of gas looked at Gazprom’s overall current tactics in resources in Russia. Nord Stream 1 and 2 have Europe, including its pipeline plans, energy already started bringing the Kremlin’s business propaganda, and other policies.1 However, after practices and political cooptation to Europe, and our presentations in the US and Europe earlier they will further undermine EU aspirations for this year,2 we realized that a separate paper better governance, democratic institutions and specifically focused on certain aspects of Nord security. Stream 2 was required. To understand why this development is accepted Gazprom and its Western partners that are slated in Germany, and meets with weak and confused to benefit from Nord Stream 2 are aggressively resistance in the EU, it is important to look at advancing the pipeline as a purely commercial the roots of the friendship between big Western project that will only bring benefits to Europe. -
Follow-Up Press Conference to Annual General Shareholders Meeting of Gazprom June 26, 2015 Participants: — Viktor Zubkov
Follow-up Press Conference to annual General Shareholders Meeting of Gazprom June 26, 2015 Participants: — Viktor Zubkov, Chairman of the Gazprom Board of Directors; — Alexey Miller, Chairman of the Gazprom Management Committee. MODERATOR: Good afternoon, dear colleagues. The first meeting of the newly elected Board of Directors has taken place. The Board of Directors elected Viktor Zubkov as its Chairman and Alexey Miller as Deputy Chairman. QUESTION: Maria Tatevosova, TASS agency. Mr. Zubkov, I’d like to congratulate you on your appointment and clarify something: there were rumors that Alexander Novak, Russian Energy Minister, would be elected Chairman of the Board of Directors. Could you possibly comment on those rumors? VIKTOR ZUBKOV: Firstly, thank you. All I can say is that everything’s fine at Gazprom; everything is going smoothly. It is borne out by today’s speech made by Alexey Miller, Chairman of the Gazprom Management Committee, and by the General Shareholders Meeting as well. The shareholders, particularly the Government, which is our main shareholder, support the Company’s strategy of sustainable growth and believe that we are on the right track. That’s why the Government decided that no changes were needed in the Board of Directors, including its membership structure. As for Alexander Novak, he’s a highly qualified professional; I’ve known him for a long time since my service in the Russian Government. Today he joined the Gazprom Board of Directors as a Member. That’s all I can say. MODERATOR: Esteemed colleagues, Mr. Novak is actually here right now, so, if you don’t mind, we’ll let him and Mr. -
Russian State-Owned Energy Companies’ ABSTRACT I CEU Etd Collection Advice Andsupport
Russian State-owned Energy Companies through Principal-Agent Model By Svetlana Ivanova Submitted to Central European University Department of Public Policy In partial fulfillment of the requirements for the degree of Master of Arts in Public Policy Supervisor: Andreas Goldthau CEU eTD Collection Budapest, Hungary 2012 ABSTRACT The objective of this work is to understand if Russian state-owned energy companies’ relationship with the Russian government can be characterized as a Principal-Agent relationship. The main criteria of the Principal-Agent Problem were drawn from the Principal- Agent Model and the Gazprom case was examined according to these criteria, assuming, as the theory suggests, that the Principal is the Government and Gazprom is the Agent. In the analyses primary sources were used. The result of the analysis shows that there is a Principal- Agent relationship between the Russian government and Gazprom, with a solved Agency conflict. Gazprom behaves in the interests of the government: the information asymmetry between the actors is limited and the government implemented the controlling systems effectively. However, interviews show that the Principal is not the government, but a group of decision-makers. The Principal-Agent Model should be complemented for the Russian case: the Principal is the group of decision-makers and both government and Gazprom are the Agents. CEU eTD Collection i ACKNOWLEDGEMENTS I would like to extend my heartfelt gratitude to my thesis supervisor Andreas Goldthau from the Department of Public Policy -
Max Freidzon V. OAO LUKOIL, LUKOIL NORTH AMERICA, LLC, OAO GAZPROM, JSC GASPROM NEFT, and GASPROMNEFT- AERO Soon to Be Amended to Become V
Max Freidzon v. OAO LUKOIL, LUKOIL NORTH AMERICA, LLC, OAO GAZPROM, JSC GASPROM NEFT, and GASPROMNEFT- AERO soon to be amended to become v. ALEXEY BORISOVICH MILLER. ALEXANDER VALERYEVICH DYUKOV, GRAHAM SMITH, ALI IZMAILOVICH BEGLOV, OAO LUKOIL, LUKOIL NORTH AMERICA, LLC, OAO GAZPROM, JSC GASPROM NEFT, and GASPROMNEFT-AERO Case Number: 1:2014cv05445 Filed 07/18/14 Office Foley Square Office Court New York Southern District Court Presiding Judge Analisa Torres Nature of Suit: RICO - Racketeer Influenced and Corrupt Organizations Justia Dockets Link: http://dockets.justia.com/docket/new-york/nysdce/1:2014cv05445/429816 Overall Presentation of the case: Document 1: Who is Max Freidzon? 1 page Document 2: Background Information “Putin's original RICO model: Setting up fuel distribution in Northwestern Russia (Saint Petersburg)”, 3 pages Document 3: Case: Max Freidzon vs. LUKOIL, Gazprom, Miller, Dyukov, et al. Executive Summary 2 pages "MATERIAL FACTS, LOSS & CLAIMS", 11 pages Document 4: A separate file of Appendixes, 85 pages; upon request Disclaimer: Do not publish, print, or use information in this essay in any kind of publication, interview, or other forms of media without first obtaining written permission from Max Freidzon. Precautionary Comment: The following documents represent Max Freidzon's interpretation of events to the best of his knowledge. Max actively participated in most of the events of 1993-95 but he was an interested observer thereafter. Feel free to contact Mr. Max Freidzon at tel: (408 771 4450) email: [email protected] for any follow up questions. 1 Case Executive Summary Max Freidzon is a religious Jew, he lives in Jerusalem and specializes in developing high tech projects. -
Kazakhstan's Gas: Export Markets and Export Routes, by Shamil Yenikeyeff
Kazakhstan’s Gas: Export Markets and Export Routes Shamil Midkhatovich Yenikeyeff November 2008 NG 25 i The contents of this paper are the author’s sole responsibility. They do not necessarily represent the views of the Oxford Institute for Energy Studies or any of its members. Copyright © 2008 Oxford Institute for Energy Studies (Registered Charity, No. 286084) This publication may be reproduced in part for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgment of the source is made. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the Oxford Institute for Energy Studies. ISBN 978-1-901795-79-0 ii Preface There has been an upsurge of interest in Central Asian oil and gas in the post-Soviet era, but it remains a difficult region for researchers. Data is incomplete and conflicting, projects are technically complex and subject to delays and cost increases, and the impact of internal and external economic and political pressures on these projects continues to be unpredictable. Kazakhstan is already a major oil exporter, but the country also has a substantial gas industry and very considerable resource potential. Because of the lack of clarity surrounding this potential, I asked Shamil Yenikeyeff to write this study focussing on Kazakh gas export potential, also encompassing more general political and energy issues. Currently all Central Asian gas exports (outside that region) are purchased by Gazprom for onward sale to (mainly) CIS countries. But with a pipeline connection to China planned for completion by the end of 2009, and a number of proposals to bring Central Asian gas to European markets by pipeline, competition is becoming more intense. -
Russia Intelligence N∞18 P
RIA63 11/10/07 10:59 Page 1 N°63 - October 11 2007 Published every two weeks / International Edition CONTENTS KREMLIN c P. 1-4 Politics & Government Hunting scenes in Moscow KREMLIN It is Moscow as it’s never been seen before : a senior officer of a power centre, Viktor Cherkesov, 56, c Hunting scenes the boss of the anti-narcotics service, a co-disciple of Vladimir Putin at the university of Leningrad in in Moscow FOCUS 1973, who entered the KGB in 1975, the point man in the hunt for dissidents in the northern capital un- c Vladimir Putin, the til 1984, Putin’s deputy at the direction of the FSB in 1998 and anxious enough about his security to pub- improbable "Chancellor of licly denounce in an open letter in the daily Kommersant «the fratricidal struggle within the secret serv- Russia" ices» that could «weaken the government and undermine the stability of the state»...Just as we have FOCUS never ceased to write, the process of Vladimir Putin’s succession is leading to chain reactions in his in- c Who will take Gazprom? ner circle which is developing into mass formation battles between two clans. Igor Sechin (presidential ALERTS administration), Nicolay Patrushev (FSB), Rashid Nurgaliev (Interior) have decided to clash with the c Gazprom in line for the opposite clan, whose principal leaders are Dimitri Medvedev, Alisher Usmanov, Alexey Kudrin, Vladimir Ankara distribution network Kozhin, Viktor Cherkesov, Viktor Zolotov, Yevgeny Murov (read details page 4). It’s likely that the ar- c Suez is preparing rest of Vladimir Barsukov, alias Kumarin, reputed head of the Tambov gang in Saint Petersburg (Rus- its entry on the Russian sia Intelligence n 61 of September 3 and n 62 September 27) was the first shot of the war whose most electricity market ∞ ∞ recent episode was the arrest by the Sechin clan of Cherkesov’s closest associate, the latter obviously be- ALERTS ing in the grasp of Sechin and Patrushev. -
REPORT Vladimir Putin's Big Government and the “Politburo 2.0”
REPORT Vladimir Putin’s Big Government and the “Politburo 2.0” Minchenko Consulting Communication Group presents the report “Vladimir Putin’s Big Government and the Politburo 2.0”, which is based on the results of an expert survey of more than 60 participants (representatives of the country’s political and business elites). Due to the specific nature of the survey, subject participation was strictly anonymous. The purpose of the survey was to build a consistent model of the informal decision-making system formed following the electoral cycle of 2011-2012, and of making staff decisions concerning the appointment of the new line-up in the Russian Government and the Presidential Executive Office. The report is intended for regional elites, Russian business and foreign investors. The formation of a new executive structure (including the government, the Presidential Executive Office, rotation in the governors’ offices) demonstrated us a new staffing style of Vladimir Putin. The traditional scheme of the “checks and balances” elite system was sophisticated: - A “control unit” that is in fact a back-up structure to the government was created within the Presidential Executive Office; it is represented by assistants to the President and specific administrations controlled by them. It should be noted that thanks to their staff these administrations can compete with ministries and governmental departments on the speed of bureaucratic procedures. There also exist recruitment centers alternative to the Presidential Executive Office [hereinafter – the PEO]. For example, Vladislav Surkov’s team that moved into the government; for now it is forced away from managing the domestic policy but, when necessary, it is ready to resume performing this function; - The President set up a number of new commissions (specifically, commissions for energy and for monitoring the execution of the President’s pre-election promises), which comprise of both ministers and representatives of the PEO. -
Russia Intelligence N°70 of January 30), on the Russian Side, and Dmitry Firtash + PDF + Archives Acess) on the Ukrainian Side
N°71 - February 14 2008 Published every two weeks / International Edition CONTENTS KREMLIN P. 1-3 Politics & Government c Medvedev vs Sechin : the Khodorkovsky test KREMLIN c Medvedev vs Sechin : The Khodorkovsky affair, returned again to the forefront of the legal news during the first week of the Khodorkovsky test February, could become a sort of test of the freedom of movement that the future Russian President BEHIND THE SCENE Dmitry Medvedev could benefit from concerning supervision of the «organs of power «. This, in any case, c Kurile islands: progress is what a certain number of sound experts of the Khodorkovsky brief and its most recent developments in sight ? believe. It is known that the former attorney and legal director of Yukos, Vassily Aleksanyan, 36, suf- FOCUS fering fom AIDS, finally obtained the right to be treated and transferred to a private clinic after Mikhail c Medvedev : is another Khodorkovsky undertook a hunger and thirst strike in support of his former collaborator. At the same foreign policy possible? tilme, in Chita, Khodorkovsky has been subjected to new judicial actions seeking to attack him perso- ECONOMY nally on charges of money laundering. He could therefore run the risk of a new prison sentence on top c Russian elites over come with anxiety of the nine year term he was condemned to May 31 2005. ALERTS c Badri Patarkatsishvili Dmitry Medvedev, even if he has hardly expressed himself publicly on this matter, has, however, on several occasions placed emphasis on his desire to combat the «judicial nihilism» that currently reigns P. 4-7 Business & Networks in Russia. -
Sino-Russian Energy Relations
The Northeast Asian Economic Review Vol. 1, No. 2, December 2013 13 Sino–Russian Energy Relations: Heading for a new era? Keun-Wook Paik ,* with Miyeon Oh1 Abstract Sino-Russian energy relations have witnessed a series of drastic changes during the last ten years, but are set to experience a huge expansion in terms of both scope and degree in the coming ten years. Sino–Russian energy cooperation is being driven by China’s necessity of taking the maximum crude supply from Russia, while the continuously delayed Sino–Russian gas price-deal became the main stumbling block for Sino–Russian energy cooperation. The scale of the bilateral energy cooperation will expand hugely once a compromise on the long- delayed gas price-deal is made. This price-deal breakthrough will usher in a new era of Sino– Russian energy cooperation. On top of this, Sino–Russian coal and electricity cooperation is gaining momentum, and the scope of Sino–Russian energy relations will likely broaden rapidly and its contribution to the trading volume of both countries will be significant. One thing certain is that the current boundaries of Sino–Russian energy cooperation will expand substantially in the coming years and the implications towards regional and global politics and energy trading will not be small. Keywords: Russia; China; oil, gas and energy cooperation 1. Review of Sino–Russian Oil and Gas Cooperation during the 1990s and 2000s2 1.1. Oil Cooperation Sino–Russian energy relations during the last two decades have witnessed many ups and downs. The preparation process that during the 1990s started to build the groundwork for bilateral energy cooperation continued until the first half of the 2000s, but Sino–Russian oil and gas cooperation during those periods produced very few concrete results.